Business Times - 17 Nov 2009
CPF interest rate stays at 2.5% in Q1 next year
CENTRAL Provident Fund members will continue to receive 2.5 per cent a year interest on savings in their Ordinary Account for the first three months of next year.
The CPF board said yesterday the interest rate as derived from those of the major local banks from August to October this year worked out to 0.42 per cent a year. But interest of 2.5 per cent will be paid, as this is the minimum rate provided for under the CPF Act.
With the Housing & Development Board, the CPF Board also said the concessionary interest rate for HDB mortgage loans will remain at 2.6 per cent a year from January to March next year.
For the Medisave, Special and Retirement accounts, the interest rate will be announced in December, after the 12-month average yield of the 10-year Singapore Government Security has been computed.
The CPF interest rate for the Special, Medisave and Retirement Accounts is pegged at one per cent above the yield rate. The current rate of 4 per cent for the October-December period will be kept as the floor until Dec 31 next year, to 'help members adjust to this floating rate'. In addition, an extra one per cent interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the Ordinary Account.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Tuesday, November 17, 2009
HSR to list on SGX via reverse takeover
Business Times - 17 Nov 2009
HSR to list on SGX via reverse takeover
The property firm's owners will sell their entire stakeholding to Catalist-listed Wepco for $40m
By UMA SHANKARI
PROPERTY agency HSR International Realtors said yesterday it plans to list on Singapore Exchange (SGX) through a reverse takeover (RTO).
Husband-and-wife team Patrick Liew and Kellie Lim, who own 100 per cent of HSR, will sell their entire stakeholding to Catalist-listed Wepco Ltd for $40 million.
Wepco now provides electroplating services to the electronics, automotive, aerospace and medical industries. But once the RTO is completed, it will focus on real estate.
The company is likely to be renamed and re-branded. It will also apply for a transfer from the Catalist board to the mainboard.
Established in 1981, HSR is one of the largest homegrown real estate agencies in Singapore, with more than 7,000 agents listed.
Last year, it had a 32 per cent share of the HDB resale market and 40 per cent of the private residential market, said chief executive Mr Liew, who will head the enlarged Wepco.
HSR reported a drop in 2008 net profit to $1.4 million, from $4.9 million in 2007.
The weaker property market caused revenue to fall to $55.2 million from $80.6 million.
Mr Liew intends to use HSR's listed status to grow the company.
'We see tremendous opportunities for growth in Singapore as well as regionally and globally,' he said.
In particular, HSR is looking to partner other real estate firms in South-east Asia to break into more markets.
It has marketed property in Australia, New Zealand, Malaysia, Canada and the United States, but currently operates mainly in Singapore.
Being a listed company will boost HSR's brand equity and give it more ways to tap the capital markets for growth, Mr Liew said.
Wepco will pay the $40 million to Mr Liew and Ms Lim by issuing 80 million new shares at 50 cents each.
The issue price represents a premium of about 117 per cent over Wepco's closing price of 23 cents last Friday.
Upon completion of the acquisition, Mr Liew and Ms Lim will own 83 per cent of Wepco's enlarged share capital.
Wepco said that in the past few years many of key customers have shifted their operations overseas, resulting in a substantial loss of revenue.
This, plus increased raw material prices and other operating costs, has had a substantial negative impact on profitability, Wepco said. 'While the company continues to strive for high growth in its current business, the directors are of the opinion that in view of the challenging business climate in which the group operates, there is a need to look for other business opportunities to increase shareholders' value,' it said.
Wepco's stock gained 10 cents to close at 33 cents yesterday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
HSR to list on SGX via reverse takeover
The property firm's owners will sell their entire stakeholding to Catalist-listed Wepco for $40m
By UMA SHANKARI
PROPERTY agency HSR International Realtors said yesterday it plans to list on Singapore Exchange (SGX) through a reverse takeover (RTO).
Husband-and-wife team Patrick Liew and Kellie Lim, who own 100 per cent of HSR, will sell their entire stakeholding to Catalist-listed Wepco Ltd for $40 million.
Wepco now provides electroplating services to the electronics, automotive, aerospace and medical industries. But once the RTO is completed, it will focus on real estate.
The company is likely to be renamed and re-branded. It will also apply for a transfer from the Catalist board to the mainboard.
Established in 1981, HSR is one of the largest homegrown real estate agencies in Singapore, with more than 7,000 agents listed.
Last year, it had a 32 per cent share of the HDB resale market and 40 per cent of the private residential market, said chief executive Mr Liew, who will head the enlarged Wepco.
HSR reported a drop in 2008 net profit to $1.4 million, from $4.9 million in 2007.
The weaker property market caused revenue to fall to $55.2 million from $80.6 million.
Mr Liew intends to use HSR's listed status to grow the company.
'We see tremendous opportunities for growth in Singapore as well as regionally and globally,' he said.
In particular, HSR is looking to partner other real estate firms in South-east Asia to break into more markets.
It has marketed property in Australia, New Zealand, Malaysia, Canada and the United States, but currently operates mainly in Singapore.
Being a listed company will boost HSR's brand equity and give it more ways to tap the capital markets for growth, Mr Liew said.
Wepco will pay the $40 million to Mr Liew and Ms Lim by issuing 80 million new shares at 50 cents each.
The issue price represents a premium of about 117 per cent over Wepco's closing price of 23 cents last Friday.
Upon completion of the acquisition, Mr Liew and Ms Lim will own 83 per cent of Wepco's enlarged share capital.
Wepco said that in the past few years many of key customers have shifted their operations overseas, resulting in a substantial loss of revenue.
This, plus increased raw material prices and other operating costs, has had a substantial negative impact on profitability, Wepco said. 'While the company continues to strive for high growth in its current business, the directors are of the opinion that in view of the challenging business climate in which the group operates, there is a need to look for other business opportunities to increase shareholders' value,' it said.
Wepco's stock gained 10 cents to close at 33 cents yesterday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Oct home sales dip, but prime area defies mood of caution
Business Times - 17 Nov 2009
Oct home sales dip, but prime area defies mood of caution
By KALPANA RASHIWALA
(SINGAPORE) The number of private homes that developers launched and sold in October slowed to their lowest levels since housing sales began their revival in February, according to latest official figures. While the outcome was expected, the big question is how long it will take for home sales to rev up again.
Buyers, especially in the price-sensitive mass-market segment, had begun to be fatigued by price increases in the third quarter - even before the government acted on Sept 14 to cool the market. Developers are also running out of mass-market projects which are launch-ready.
'Everybody's more cautious now,' said Knight Frank chairman Tan Tiong Cheng, summing up the current mood among buyers and developers.
DTZ executive director (consulting) Ong Choon Fah said: 'Buying is likely to continue to be slow for the rest of the year. There's not much to launch; and people are away. Activity will probably return after Chinese New Year.'
While developers of a few projects are expected to proceed with launches soon - including Marina Bay Suites and City Developments's new condo on Thomson Road - others have decided to postpone their launches until Q1 next year or even later, when they hope there will be clearer signs confirming the recovery in the Singapore economy that will see buyers emerging from the sidelines again.
Data released by Urban Redevelopment Authority yesterday showed that developers sold 811 private homes in October, down 29 per cent from September's sales of 1,143 homes. This is the third consecutive monthly decline after home sales peaked at 2,772 units in July.
In the first 10 months of this year, developers have sold 13,639 units. Views in the market are mixed whether developers will manage to sell another 1,172 units in the final two months of 2009 to match the record of 14,811 units in 2007.
The 566 units developers launched in October was 60 per cent lower than in the previous month.
The Core Central Region (CCR) - where higher-priced homes are located - fared relatively better in October than the Rest of Central Region (RCR) and Outside Central Region (OCR).
CCR saw a doubling in sales from 152 units in September to 311 units in October; the number of private homes launched in the region also increased 67 per cent over the same period.
In contrast, the number of units launched as well as sold by developers fell in the other two regions. For instance, the number of homes sold in OCR fell 55.2 per cent month on month to 251 units in October. And the number of homes launched in RCR declined to just 40 units in October from 631 in September.
Last month, a total of 250 units were sold in the $1,500 psf to $2,000 psf range, accounting for 31 per cent of total sales in October and representing a big jump from the 92 units sold in this price range in September, Colliers International research director Tay Huey Ying noted. 'This shows that as of October, filtering-up of demand from the mass-market to the high-end has not been derailed by the September cooling measures,' she added.
CB Richard Ellis executive director Li Hiaw Ho noted that interest in luxury projects continued in October despite the slowdown felt in the rest of the market. ' A unit at Boulevard Vue sold at $4,150 psf; a unit of Seven Palms fetched $3,429 psf in October after six units were sold in September at $3,091 to $3,353 psf. Over at Nassim Park Residences, five units were sold last month at a median price of $3,089 psf following the sales of nine units in Q3 at $2,800 to $3,450 psf,' he added.
Jones Lang LaSalle's head of SE Asia research Chua Yang Liang said the impact of the September announcement was felt most in OCR and RCR as these markets were driven mostly by HDB upgraders who are more sentiment driven.
October's top-selling project was Far East Organization's Cyan at Bukit Timah (81 units transacted at a median price of $1,821). Other chart toppers in CCR last month included Trilight (58 units) and Lincoln Suites (53 units) - both in the Newton area.
In RCR, the top sellers included Suites @ Guillemard (66 units) and City Loft (40 units). Both projects featured shoebox units. In OCR, sales were contributed mainly by Hundred Trees in West Coast (52 units) and Mi Casa in Choa Chu Kang (43 units), noted Savills Singapore.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Oct home sales dip, but prime area defies mood of caution
By KALPANA RASHIWALA
(SINGAPORE) The number of private homes that developers launched and sold in October slowed to their lowest levels since housing sales began their revival in February, according to latest official figures. While the outcome was expected, the big question is how long it will take for home sales to rev up again.
Buyers, especially in the price-sensitive mass-market segment, had begun to be fatigued by price increases in the third quarter - even before the government acted on Sept 14 to cool the market. Developers are also running out of mass-market projects which are launch-ready.
'Everybody's more cautious now,' said Knight Frank chairman Tan Tiong Cheng, summing up the current mood among buyers and developers.
DTZ executive director (consulting) Ong Choon Fah said: 'Buying is likely to continue to be slow for the rest of the year. There's not much to launch; and people are away. Activity will probably return after Chinese New Year.'
While developers of a few projects are expected to proceed with launches soon - including Marina Bay Suites and City Developments's new condo on Thomson Road - others have decided to postpone their launches until Q1 next year or even later, when they hope there will be clearer signs confirming the recovery in the Singapore economy that will see buyers emerging from the sidelines again.
Data released by Urban Redevelopment Authority yesterday showed that developers sold 811 private homes in October, down 29 per cent from September's sales of 1,143 homes. This is the third consecutive monthly decline after home sales peaked at 2,772 units in July.
In the first 10 months of this year, developers have sold 13,639 units. Views in the market are mixed whether developers will manage to sell another 1,172 units in the final two months of 2009 to match the record of 14,811 units in 2007.
The 566 units developers launched in October was 60 per cent lower than in the previous month.
The Core Central Region (CCR) - where higher-priced homes are located - fared relatively better in October than the Rest of Central Region (RCR) and Outside Central Region (OCR).
CCR saw a doubling in sales from 152 units in September to 311 units in October; the number of private homes launched in the region also increased 67 per cent over the same period.
In contrast, the number of units launched as well as sold by developers fell in the other two regions. For instance, the number of homes sold in OCR fell 55.2 per cent month on month to 251 units in October. And the number of homes launched in RCR declined to just 40 units in October from 631 in September.
Last month, a total of 250 units were sold in the $1,500 psf to $2,000 psf range, accounting for 31 per cent of total sales in October and representing a big jump from the 92 units sold in this price range in September, Colliers International research director Tay Huey Ying noted. 'This shows that as of October, filtering-up of demand from the mass-market to the high-end has not been derailed by the September cooling measures,' she added.
CB Richard Ellis executive director Li Hiaw Ho noted that interest in luxury projects continued in October despite the slowdown felt in the rest of the market. ' A unit at Boulevard Vue sold at $4,150 psf; a unit of Seven Palms fetched $3,429 psf in October after six units were sold in September at $3,091 to $3,353 psf. Over at Nassim Park Residences, five units were sold last month at a median price of $3,089 psf following the sales of nine units in Q3 at $2,800 to $3,450 psf,' he added.
Jones Lang LaSalle's head of SE Asia research Chua Yang Liang said the impact of the September announcement was felt most in OCR and RCR as these markets were driven mostly by HDB upgraders who are more sentiment driven.
October's top-selling project was Far East Organization's Cyan at Bukit Timah (81 units transacted at a median price of $1,821). Other chart toppers in CCR last month included Trilight (58 units) and Lincoln Suites (53 units) - both in the Newton area.
In RCR, the top sellers included Suites @ Guillemard (66 units) and City Loft (40 units). Both projects featured shoebox units. In OCR, sales were contributed mainly by Hundred Trees in West Coast (52 units) and Mi Casa in Choa Chu Kang (43 units), noted Savills Singapore.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Monday, November 16, 2009
Housing sales help boost UOL profits by 44%
(Abstract from Straits Times 16th Nov, 2009)
UNITED Overseas Land (UOL) reported that profits for the third quarter ended Sept 30 rose 44 per cent to $105.6 million due to the strong take-up for new residential launches - Meadows@Peirce and Double Bay Residences.
These two projects have sold a combined 937 units to date, the group said last week.
The bottom line was helped by a higher contribution from associated companies, including United Industrial Corporation in which UOL has raised its stake to 32 per cent.
Revenue jumped 21 per cent to $323.9 million with revenue being progressively recognised
from development properties. In addition to Meadows@Peirce and Double Bay Residences, other properties included Duchess Residences, Southbank and The Regency at Tiong Bahru.
Revenue from property development contributed about two-thirds of total revenue. Other sources of revenue included hotel operations and property investments.
UOL group chief executive Gwee Lian Kheng said: 'We are pleased with our third-quarter results. Our development profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs. Moving forward, we can also expect a more stable growth in the Singapore residential market with the reinstatement of the confirmed list of Government Land Sales Programme.'
He added: 'In spite of the challenging office and retail markets in Singapore, we managed to maintain higher occupancy and rental rates for most of our investment properties.
'As the economy recovers, the worst may be over in general for the hospitality industry and we are hopeful of seeing an improvement in the medium term.'
Earnings per share for the quarter rose from 9.24 cents last year to 13.32 cents.
Net tangible asset per share rose to $5.11 as of Sept 30, up from $4.22 as of Dec 31, while gearing improved to 0.39.
UOL shares ended unchanged at $3.29 last Friday, with one million shares changing hands.
UOL's revenue rose 21 per cent, helped by strong take-up for new residential launches such as Meadows@Peirce (above) and Double Bay Residences. -- ST FILE PHOTO
UNITED Overseas Land (UOL) reported that profits for the third quarter ended Sept 30 rose 44 per cent to $105.6 million due to the strong take-up for new residential launches - Meadows@Peirce and Double Bay Residences.
These two projects have sold a combined 937 units to date, the group said last week.
The bottom line was helped by a higher contribution from associated companies, including United Industrial Corporation in which UOL has raised its stake to 32 per cent.
Revenue jumped 21 per cent to $323.9 million with revenue being progressively recognised
from development properties. In addition to Meadows@Peirce and Double Bay Residences, other properties included Duchess Residences, Southbank and The Regency at Tiong Bahru.
Revenue from property development contributed about two-thirds of total revenue. Other sources of revenue included hotel operations and property investments.
UOL group chief executive Gwee Lian Kheng said: 'We are pleased with our third-quarter results. Our development profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs. Moving forward, we can also expect a more stable growth in the Singapore residential market with the reinstatement of the confirmed list of Government Land Sales Programme.'
He added: 'In spite of the challenging office and retail markets in Singapore, we managed to maintain higher occupancy and rental rates for most of our investment properties.
'As the economy recovers, the worst may be over in general for the hospitality industry and we are hopeful of seeing an improvement in the medium term.'
Earnings per share for the quarter rose from 9.24 cents last year to 13.32 cents.
Net tangible asset per share rose to $5.11 as of Sept 30, up from $4.22 as of Dec 31, while gearing improved to 0.39.
UOL shares ended unchanged at $3.29 last Friday, with one million shares changing hands.
UOL's revenue rose 21 per cent, helped by strong take-up for new residential launches such as Meadows@Peirce (above) and Double Bay Residences. -- ST FILE PHOTO
Effects of cooling measures felt
Nomura remains bearish on property sector in Singap0re
(Abstract from TodayOnline 16th Nov, 2009 by Tan Hui Leng)
SINGAPORE - Recent cooling measures, coupled with a continued decline in rents, are likely to weigh on property stocks.
Japan-based investment banking and brokerage group Nomura said in a research note released last Friday that it has maintained a "bearish" stance on the property sector here.
Recently, the Government put in a series of measures to curb speculation in the over-heating property market. This includes the removal of interest absorption schemes. This will likely prompt "a reassessment of asset price expectations as yields fall", said analysts Tony Darwell and Sai Min Chow.
"With pre-sale take-up likely to slip, risks remain for a rebuild in unsold inventory and a resultant correction in asset prices," the Nomura analysts said.
Property prices rose about 16 per cent on-quarter in the third quarter but rents fell as much as by 12 per cent on-quarter. This has resulted in a 50 to 35 basis points on-quarter contraction in property yields. One basis point is equal to 0.01 per cent.
"Higher vacancy amid weak leasing demand (evident in recent rental trends) is likely to place further pressure on yields, potentially compromising the sustainability of current asset price," said the analysts.
Despite the signs, Singapore developers "continue to price in over-optimistic expectations for the physical market".
The analysts noted that unsold pre-sale inventory has rebounded to 9,215 at the end of the third quarter this year - up from 8,637 at end of the second quarter.
"With increased stock availability, we believe price expectations will be reassessed, leading to a slowdown in pre-sale take-up rates, evident in recent new launches," said Nomura.
"With developer stocks' price performance highly correlated to volumes, the listed developers look exposed."
Nomura projects a "W-shaped" recovery in the residential property sector and it projects asset prices to correct by 10 to 15 per cent.
However, CIMB analyst Donald Chua is less bearish on the sector despite the Monetary Authority of Singapore raising caution over potential risks of exuberance in the sector in its latest Financial Stability Review.
But he said the "euphoria" in the property market has already abated following the announcement of sentiment-cooling measures two months ago.
CIMB is also comforted by positive trends in the strong household balance sheets and outstanding housing loans by loan-to-value. It maintains an Overweight rating in the sector as it sees the next phase of re-rating for property shares coming from a recovery in the real economy.
The October data on private residential developer sales is expected to be released by the Urban Redevelopment Authority today.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
(Abstract from TodayOnline 16th Nov, 2009 by Tan Hui Leng)
SINGAPORE - Recent cooling measures, coupled with a continued decline in rents, are likely to weigh on property stocks.
Japan-based investment banking and brokerage group Nomura said in a research note released last Friday that it has maintained a "bearish" stance on the property sector here.
Recently, the Government put in a series of measures to curb speculation in the over-heating property market. This includes the removal of interest absorption schemes. This will likely prompt "a reassessment of asset price expectations as yields fall", said analysts Tony Darwell and Sai Min Chow.
"With pre-sale take-up likely to slip, risks remain for a rebuild in unsold inventory and a resultant correction in asset prices," the Nomura analysts said.
Property prices rose about 16 per cent on-quarter in the third quarter but rents fell as much as by 12 per cent on-quarter. This has resulted in a 50 to 35 basis points on-quarter contraction in property yields. One basis point is equal to 0.01 per cent.
"Higher vacancy amid weak leasing demand (evident in recent rental trends) is likely to place further pressure on yields, potentially compromising the sustainability of current asset price," said the analysts.
Despite the signs, Singapore developers "continue to price in over-optimistic expectations for the physical market".
The analysts noted that unsold pre-sale inventory has rebounded to 9,215 at the end of the third quarter this year - up from 8,637 at end of the second quarter.
"With increased stock availability, we believe price expectations will be reassessed, leading to a slowdown in pre-sale take-up rates, evident in recent new launches," said Nomura.
"With developer stocks' price performance highly correlated to volumes, the listed developers look exposed."
Nomura projects a "W-shaped" recovery in the residential property sector and it projects asset prices to correct by 10 to 15 per cent.
However, CIMB analyst Donald Chua is less bearish on the sector despite the Monetary Authority of Singapore raising caution over potential risks of exuberance in the sector in its latest Financial Stability Review.
But he said the "euphoria" in the property market has already abated following the announcement of sentiment-cooling measures two months ago.
CIMB is also comforted by positive trends in the strong household balance sheets and outstanding housing loans by loan-to-value. It maintains an Overweight rating in the sector as it sees the next phase of re-rating for property shares coming from a recovery in the real economy.
The October data on private residential developer sales is expected to be released by the Urban Redevelopment Authority today.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
Foreign buyer's Sentosa Cove deal falls short
(Abstract from Business Times 16th Nov, 2009 by Uma Shankari)
One of his two adjoining plots was resold at same price, other up for grabs
A FOREIGN investor who bought two adjoining bungalow plots on Sentosa Cove in 2008 did not complete the transactions, it has emerged.
Sentosa Cove has since re-sold one of the plots to a local buyer at the same price that the foreign investor had offered for it - $1,688 per square foot (psf) of land. But the other land parcel is still up for sale.
The plot that was re-sold has a land area of about 9,700 sq ft, which means that the total amount paid for the site is about $16.4 million.
The land parcel was first put on the market in March 2008, and sold at the end of that year through a private treaty. But after the foreign investor, who is understood to be a Chinese national, did not make payment according to schedule, the plot was put on the market again. It was sold to the local buyer about two months ago.
Sentosa Cove's general manager Jason Yeo said that the fact that the plot was re-sold for the same price as in 2008 shows that the fundamentals of the residential enclave on Sentosa island are intact.
His firm, which handles State land sales at Sentosa Cove, received offers to buy the property at lower prices. But he held on to it until someone offered the right price.
However, the second plot, which is slightly bigger, has not yet received an offer deemed to be acceptable. The parcel, which is around 12,000 sq ft, was sold for about $1,650 psf to the foreign investor. The total quantum works out to around $19.8 million.
'There has been interest from the market for the site, but they are not able to meet our reserve price,' said Mr Yeo. Sentosa Cove is not aggressively marketing the site, he said.
The land parcel is the only one to remain unsold in the entire Sentosa Cove residential precinct, which will have 8,000 residents by the time all homes there are completed by 2014.
Mr Yeo said that all earlier land transactions - including condominium sites sold to developers as well as landed plots sold to individuals and investors - have been completed. Work on the island is progressing well and some 3,000 residents will be living on the island by the end of this year, he added.
Sentosa Cove has also found takers for some of the commercial space on the island. Two tenants - 7-Eleven, which will open a convenience store with a new-to-Singapore concept, and a launderette - have taken up about 30 per cent of the commercial space available at the arrival area of the Sentosa Cove residential enclave. The arrival plaza has a total lettable area of about 10,000 sq ft.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
One of his two adjoining plots was resold at same price, other up for grabs
A FOREIGN investor who bought two adjoining bungalow plots on Sentosa Cove in 2008 did not complete the transactions, it has emerged.
Sentosa Cove has since re-sold one of the plots to a local buyer at the same price that the foreign investor had offered for it - $1,688 per square foot (psf) of land. But the other land parcel is still up for sale.
The plot that was re-sold has a land area of about 9,700 sq ft, which means that the total amount paid for the site is about $16.4 million.
The land parcel was first put on the market in March 2008, and sold at the end of that year through a private treaty. But after the foreign investor, who is understood to be a Chinese national, did not make payment according to schedule, the plot was put on the market again. It was sold to the local buyer about two months ago.
Sentosa Cove's general manager Jason Yeo said that the fact that the plot was re-sold for the same price as in 2008 shows that the fundamentals of the residential enclave on Sentosa island are intact.
His firm, which handles State land sales at Sentosa Cove, received offers to buy the property at lower prices. But he held on to it until someone offered the right price.
However, the second plot, which is slightly bigger, has not yet received an offer deemed to be acceptable. The parcel, which is around 12,000 sq ft, was sold for about $1,650 psf to the foreign investor. The total quantum works out to around $19.8 million.
'There has been interest from the market for the site, but they are not able to meet our reserve price,' said Mr Yeo. Sentosa Cove is not aggressively marketing the site, he said.
The land parcel is the only one to remain unsold in the entire Sentosa Cove residential precinct, which will have 8,000 residents by the time all homes there are completed by 2014.
Mr Yeo said that all earlier land transactions - including condominium sites sold to developers as well as landed plots sold to individuals and investors - have been completed. Work on the island is progressing well and some 3,000 residents will be living on the island by the end of this year, he added.
Sentosa Cove has also found takers for some of the commercial space on the island. Two tenants - 7-Eleven, which will open a convenience store with a new-to-Singapore concept, and a launderette - have taken up about 30 per cent of the commercial space available at the arrival area of the Sentosa Cove residential enclave. The arrival plaza has a total lettable area of about 10,000 sq ft.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Developer sales down 29% m/m in Oct
(Abstract from Business Times 16th Nov,2009 by Kalpana Rashiwala)
SINGAPORE - Developers sold 811 private homes in October this year, down 29 per cent from the 1,143 units they sold in the preceding month.
The latest October number was the lowest figure since the rebound in home sales started in February this year.
Latest figures released by Urban Redevelopment Authority also showed that developers launched a total 566 private homes in October, a nearly 60 per cent contraction from the preceding month.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
SINGAPORE - Developers sold 811 private homes in October this year, down 29 per cent from the 1,143 units they sold in the preceding month.
The latest October number was the lowest figure since the rebound in home sales started in February this year.
Latest figures released by Urban Redevelopment Authority also showed that developers launched a total 566 private homes in October, a nearly 60 per cent contraction from the preceding month.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Better value for older homes
Nov 16, 2009 - PropertyGuru.com.sg
While the local property market plunged in late 2008 along with the global economy, home values have since bounced back to its normal level. Since the second quarter of this year, a larger number of interested home buyers have lined up outside the showrooms of new condominium launches.
Property developers have responded quickly by pushing their launches to attract potential home buyers despite the high-prices. Houses in the heartlands are being sold higher than those in prime districts 9, 10 and 11. The 99-year leasehold Centro Residences at Ang Mo Kio was sold quickly at a starting price of $1,150 per square foot (psf).
“We have been seeing a bottom-up recovery in Singapore’s property market since February. Buying was initially driven by HDB upgraders who benefited from resilient HDB prices and price-cutting by developers. Subsequently, buying spilled over to the mid-end segment, with local and foreign investors returning to the market,” said Foo Sze Ming, an investment analyst from OCBC Investment Research.
The improvement in the property market was fuelled by the increased demand from home buyers who postponed their purchases last year, the recovery of the economy, high consumer liquidity, low interest rates and the possible en-bloc sellers who cashed out two years ago.
While the fast recovery of the property market must be applauded, home prices have driven up too quickly to a level that experts agree is unsustainable. CB Richard Ellis’ analysis showed that the price quantum of non-landed homes between Q1 and Q2 this year have increased by 28 percent. Between Q2 and Q3, prices escalated 11 percent from $825,000 to $916,000 for apartments ranging from 400 square feet to 700 square feet.
“In the first quarter, most of the new freehold homes sold were shoebox-sized units in mid- to high-end projects like Alexis, Newton Edge, Parc Sophia, RV Suites and The Mercury at a median price of $1,000 psf to $1,200 psf. In the second quarter, a significant proportion were larger family-sized suburban projects like I Residences, The Arte and Versilia On Haig, which reflected a median price of $830 psf to $925 psf,” explained Joseph Tan, executive director of CB Richard Ellis.
The buying pattern for the property market shows that recession fears are over. The latest figures from the Urban Redevelopment Authority (URA) indicates a total of 2,767 sold private houses in July, showing a 52 percent jump from 1,826 units in June.
By the end of September, Viva sold 203 units at $1,537psf, Volari @ Balmoral sold 82 units at $2,059 psf and Sophia Residences sold 210 units at $1,590 psf. As developers push their prices, the resistance from home buyers sets in. “There appears to be a small upward trend. While the number of transactions declined, those that went through achieved slightly higher prices,” said Colin Tan, the international director for research consultancy firm Chesterton Suntec.
While the local property market plunged in late 2008 along with the global economy, home values have since bounced back to its normal level. Since the second quarter of this year, a larger number of interested home buyers have lined up outside the showrooms of new condominium launches.
Property developers have responded quickly by pushing their launches to attract potential home buyers despite the high-prices. Houses in the heartlands are being sold higher than those in prime districts 9, 10 and 11. The 99-year leasehold Centro Residences at Ang Mo Kio was sold quickly at a starting price of $1,150 per square foot (psf).
“We have been seeing a bottom-up recovery in Singapore’s property market since February. Buying was initially driven by HDB upgraders who benefited from resilient HDB prices and price-cutting by developers. Subsequently, buying spilled over to the mid-end segment, with local and foreign investors returning to the market,” said Foo Sze Ming, an investment analyst from OCBC Investment Research.
The improvement in the property market was fuelled by the increased demand from home buyers who postponed their purchases last year, the recovery of the economy, high consumer liquidity, low interest rates and the possible en-bloc sellers who cashed out two years ago.
While the fast recovery of the property market must be applauded, home prices have driven up too quickly to a level that experts agree is unsustainable. CB Richard Ellis’ analysis showed that the price quantum of non-landed homes between Q1 and Q2 this year have increased by 28 percent. Between Q2 and Q3, prices escalated 11 percent from $825,000 to $916,000 for apartments ranging from 400 square feet to 700 square feet.
“In the first quarter, most of the new freehold homes sold were shoebox-sized units in mid- to high-end projects like Alexis, Newton Edge, Parc Sophia, RV Suites and The Mercury at a median price of $1,000 psf to $1,200 psf. In the second quarter, a significant proportion were larger family-sized suburban projects like I Residences, The Arte and Versilia On Haig, which reflected a median price of $830 psf to $925 psf,” explained Joseph Tan, executive director of CB Richard Ellis.
The buying pattern for the property market shows that recession fears are over. The latest figures from the Urban Redevelopment Authority (URA) indicates a total of 2,767 sold private houses in July, showing a 52 percent jump from 1,826 units in June.
By the end of September, Viva sold 203 units at $1,537psf, Volari @ Balmoral sold 82 units at $2,059 psf and Sophia Residences sold 210 units at $1,590 psf. As developers push their prices, the resistance from home buyers sets in. “There appears to be a small upward trend. While the number of transactions declined, those that went through achieved slightly higher prices,” said Colin Tan, the international director for research consultancy firm Chesterton Suntec.
Sentosa Cove deal not completed
Nov 16, 2009
A foreign investor who purchased two adjoining bungalow sites located at the Sentosa Cove in 2008 did not complete the transactions.
One of the plots has been re-sold by Sentosa Cove to a local buyer at $1,688 per sq ft (psf) of land – the same price that the foreign investor proposed. However, the other parcel of land is still available for sale.
The re-sold plot has about 9,700 sq ft of land area, which means the total amount paid for the site was $16.4 million.
The parcel of land was initially put on the market in March 2008, and it was sold through a private treaty by the end of that year. However, after the Chinese investor failed to meet the payment obligation on schedule, the plot was again put on the market. About two months ago, it was sold to a local buyer.
"Having the plot sold again at a similar price as in 2008 means that the fundamentals of the residential enclave on the island of Sentosa still remain intact," said Jason Yeo, general manager of Sentosa Cove.
His firm, which manages State land sales at Sentosa Cove received offers to purchase the site at lower prices. However, he held on to the price until a buyer proposed the right price.
On the other hand, the second plot, which is larger in size, has not yet received an acceptable offer. The land parcel, with about 12,000 sq ft of land area, was sold to the foreign investor for about $1,650 psf. The total quantum works out to be approximately $19.8 million.
“There has been interest from the market for the site, but the parties are not able to meet our reserve price,” Mr. Yeo said.
The land is the only remaining unsold site in the entire residential precinct of Sentosa Cove, which will have 8,000 residents when all the homes in the area are finished by 2014.
According to Mr. Yeo, all earlier land deals, which includes the landed plots sold to investors and individuals as well as condominium sites sold to developers, have been completed. He added that work on Sentosa Cove is progressing well and around 3,000 residents will be residing on the island by the end of 2009.
A foreign investor who purchased two adjoining bungalow sites located at the Sentosa Cove in 2008 did not complete the transactions.
One of the plots has been re-sold by Sentosa Cove to a local buyer at $1,688 per sq ft (psf) of land – the same price that the foreign investor proposed. However, the other parcel of land is still available for sale.
The re-sold plot has about 9,700 sq ft of land area, which means the total amount paid for the site was $16.4 million.
The parcel of land was initially put on the market in March 2008, and it was sold through a private treaty by the end of that year. However, after the Chinese investor failed to meet the payment obligation on schedule, the plot was again put on the market. About two months ago, it was sold to a local buyer.
"Having the plot sold again at a similar price as in 2008 means that the fundamentals of the residential enclave on the island of Sentosa still remain intact," said Jason Yeo, general manager of Sentosa Cove.
His firm, which manages State land sales at Sentosa Cove received offers to purchase the site at lower prices. However, he held on to the price until a buyer proposed the right price.
On the other hand, the second plot, which is larger in size, has not yet received an acceptable offer. The land parcel, with about 12,000 sq ft of land area, was sold to the foreign investor for about $1,650 psf. The total quantum works out to be approximately $19.8 million.
“There has been interest from the market for the site, but the parties are not able to meet our reserve price,” Mr. Yeo said.
The land is the only remaining unsold site in the entire residential precinct of Sentosa Cove, which will have 8,000 residents when all the homes in the area are finished by 2014.
According to Mr. Yeo, all earlier land deals, which includes the landed plots sold to investors and individuals as well as condominium sites sold to developers, have been completed. He added that work on Sentosa Cove is progressing well and around 3,000 residents will be residing on the island by the end of 2009.
ST : Private home sales slow
Nov 16, 2009
Private home sales slow
PROPERTY developers sold just 811 units of new, private homes in October.
This is down from 1,143 units in September and 1,805 units in August, according to figures released by the Urban Redevelopment Authority on Monday.
One of the best sellers was the 278-unit Cyan in Bukit Timah Road. It launched 90 units, of which 81 were sold at a median price of $1,821 per sq ft.
In October, developers launched only 566 units,a far cry from the 1,413 units launched a month earlier.
Private home sales slow
PROPERTY developers sold just 811 units of new, private homes in October.
This is down from 1,143 units in September and 1,805 units in August, according to figures released by the Urban Redevelopment Authority on Monday.
One of the best sellers was the 278-unit Cyan in Bukit Timah Road. It launched 90 units, of which 81 were sold at a median price of $1,821 per sq ft.
In October, developers launched only 566 units,a far cry from the 1,413 units launched a month earlier.
ST : 2 Punggol BTO projects
Nov 16, 2009
2 Punggol BTO projects
THE Housing Board has launched two new Build-To-Order (BTO) projects in Punggol Town - Punggol Sails and Punggol Ripples, which will offer a total of 1,078 standard flats.
The supply comprises 130 units of studio Apartments, 436 units of three-room, 403 four-room units and 109 five-room flats. Applications for the new flats can be submitted online from Nov 16 to 30.
With effect from this BTO exercise, 95 per cent of the supply of two to five -room flats will be set aside for first timers. This will give greater priority to first timers, who generally have more urgent housing needs than second timers, said HDB in a statement on Monday.
To ensure that public housing is affordable for first-time homebuyers, HDB said the flats are priced below their equivalent market prices, taking into account the prices of resale flats in the area, adjusted for factors such as location, flat attributes, project design and prevailing market conditions, as determined by professional valuers.
The selling prices for the flats range from $65,000 to $92,000 for a studio apartment; $158,000 to $185,000 for a three-room flat; $249,000 to $305,000 for a four-room flat; and $332,000 to $377,000 for a five-room unit.
Conveniently located along Punggol Field, both projects will be well served by the Punggol MRT, LRT stations, bus interchange, and the future Punggol Town Centre. There are also primary and secondary schools in the area. The Tampines Expressway is a short drive away, offering good connectivity to the rest of Singapore.
Including this exercise, HDB has offered about 10,800 flats under BTO and other sales exercises this year. Flat buyers can look forward to four more BTO projects in Bukit Panjang, Sembawang and Dawson with 2,700 flats in December.
Punggol Ripples. -- PHOTO: HDB
2 Punggol BTO projects
THE Housing Board has launched two new Build-To-Order (BTO) projects in Punggol Town - Punggol Sails and Punggol Ripples, which will offer a total of 1,078 standard flats.
The supply comprises 130 units of studio Apartments, 436 units of three-room, 403 four-room units and 109 five-room flats. Applications for the new flats can be submitted online from Nov 16 to 30.
With effect from this BTO exercise, 95 per cent of the supply of two to five -room flats will be set aside for first timers. This will give greater priority to first timers, who generally have more urgent housing needs than second timers, said HDB in a statement on Monday.
To ensure that public housing is affordable for first-time homebuyers, HDB said the flats are priced below their equivalent market prices, taking into account the prices of resale flats in the area, adjusted for factors such as location, flat attributes, project design and prevailing market conditions, as determined by professional valuers.
The selling prices for the flats range from $65,000 to $92,000 for a studio apartment; $158,000 to $185,000 for a three-room flat; $249,000 to $305,000 for a four-room flat; and $332,000 to $377,000 for a five-room unit.
Conveniently located along Punggol Field, both projects will be well served by the Punggol MRT, LRT stations, bus interchange, and the future Punggol Town Centre. There are also primary and secondary schools in the area. The Tampines Expressway is a short drive away, offering good connectivity to the rest of Singapore.
Including this exercise, HDB has offered about 10,800 flats under BTO and other sales exercises this year. Flat buyers can look forward to four more BTO projects in Bukit Panjang, Sembawang and Dawson with 2,700 flats in December.
Punggol Ripples. -- PHOTO: HDB
Foreign buyers venture out
Nov 15, 2009
Foreign buyers venture out
By Joyce Teo
FOREIGN property investors are spreading their wings and venturing out of the traditional prime areas to snap up homes in other parts of the island.
A new study has found overseas buyers have become keen on districts 11, 22 and most surprising of all, 12, which is the Balestier area.
A Savills Singapore study found that districts 9, 10 and 15 have remained the top spots for foreign buyers over the past three years.
District 9 includes the Orchard and River Valley areas; 15 covers Katong, Joo Chiat and Amber Road and 10 includes the posh Ardmore area, Bukit Timah, Holland Road and Tanglin neighbourhoods. Districts 11 and 22 have become more popular thanks to the higher number of launches there, Savills said.
In the past three years, there have been at least 30 major launches in district 11 alone, including Viva, Park Infinia at Wee Nam and Miro at Lincoln Road. District 22 - it is centered on Jurong - has hosted launches of The Centris, Caspian and The Lakeshore.
Savills said district 12 - which includes the Balestier, Serangoon and Toa Payoh areas - has emerged as one of the top new choices among foreigners this year. Its new projects include The Arte, Trevista, Vista Residences, Nova 48, Nova 88 and Domus.
Savills said district 12 - which includes the Balestier (pictured), Serangoon and Toa Payoh areas - has emerged as one of the top new choices among foreigners this year. -- ST PHOTO
Foreign buyers venture out
By Joyce Teo
FOREIGN property investors are spreading their wings and venturing out of the traditional prime areas to snap up homes in other parts of the island.
A new study has found overseas buyers have become keen on districts 11, 22 and most surprising of all, 12, which is the Balestier area.
A Savills Singapore study found that districts 9, 10 and 15 have remained the top spots for foreign buyers over the past three years.
District 9 includes the Orchard and River Valley areas; 15 covers Katong, Joo Chiat and Amber Road and 10 includes the posh Ardmore area, Bukit Timah, Holland Road and Tanglin neighbourhoods. Districts 11 and 22 have become more popular thanks to the higher number of launches there, Savills said.
In the past three years, there have been at least 30 major launches in district 11 alone, including Viva, Park Infinia at Wee Nam and Miro at Lincoln Road. District 22 - it is centered on Jurong - has hosted launches of The Centris, Caspian and The Lakeshore.
Savills said district 12 - which includes the Balestier, Serangoon and Toa Payoh areas - has emerged as one of the top new choices among foreigners this year. Its new projects include The Arte, Trevista, Vista Residences, Nova 48, Nova 88 and Domus.
Savills said district 12 - which includes the Balestier (pictured), Serangoon and Toa Payoh areas - has emerged as one of the top new choices among foreigners this year. -- ST PHOTO
Sunday, November 15, 2009
ST : Impact of new sites won't be felt yet
Nov 15, 2009
Impact of new sites won't be felt yet
Sites for tender will yield 2,925 units but they won't be ready for at least 11/2 years
By Joyce Teo
The Government came out about a week ago to say that there is no shortage of residential supply and thus no need for buyers to rush. That was when it announced its decision to tender out eight residential sites for sale in the first half of next year.
The eight sites are in non-city areas such as Choa Chu Kang, Simei and Tampines.
It also has a long reserve list of residential sites that are available for sale, if developers are to show interest by committing to a minimum bid the Government finds acceptable.
This potential supply comes from the twice-yearly government land sales programme and means buyers will have more choices while property owners may benefit.
HDB upgraders in particular will be glad to know that the latest sales programme - for the first half of next year - will see a slew of suburban residential sites.
Property owners who live near the eight sites can expect to see a new project in their neighbourhood in the next few years.
If the economy improves steadily, they can even look forward to a rise in their home values when the new project is released for sale.
'Generally, when a new project is launched, it will have a bearing on the developments in the vicinity,' said Colliers International's research and advisory director, Ms Tay Huey Ying.
'If a project is launched at bullish price levels, it could push up the prices of surrounding developments, though a lot can depend on project attributes.'
Ngee Ann Polytechnic lecturer Nicholas Mak said: 'In a buoyant market, developers would launch at a higher price on a per sq ft basis than surrounding projects. In a less buoyant market, the premium would be smaller.
'The launch price does give some support to the asking prices of individual sellers in the area.'
In January, three sites will be put up for sale, including two executive condominium (EC) sites.
The first EC site in Buangkok Drive, near The Quartz condo and Buangkok MRT station, can accommodate an estimated 520 units while the second in Yishun Avenue 11, next to the Lilydale EC, can take 385 units.
The EC scheme was launched in 1996 to help Singaporeans who could afford more than new HDB flats yet found the prices of private housing too high.
The biggest of the eight sites is at the junction of Tampines Avenue 1 and Avenue 10, next to The Tropica condo and Bedok Reservoir. It can take 605 units.
The site in Choa Chu Kang Road, suitable for 200 units, sits above the Bukit Panjang LRT Depot and Ten Mile Junction, and is near the future Bukit Panjang MRT station.
The Sembawang Road site is near Sembawang Shopping Centre and can take about 290 units.
In the west, the Boon Lay Way site for 525 units is next to the sold-out The Caspian and near Lakeside MRT station.
Property consultants also singled out the site at Simei Street 3 and the one at the junction of Upper Serangoon Road and Pheng Geck Avenue as choice ones because of their proximity to the Simei and Potong Pasir MRT stations respectively.
'As Singapore becomes more populated, characterised by a relatively fast-paced lifestyle, accessibility and proximity to mass transit stations will be a key consideration for future home buyers,' said CBRE Research director Leonard Tay.
On the reserve list, there are also sites near MRT stations: The Bartley Road site, which can take about 500 units, faces Bartley MRT station and the Stirling Road site, which can have 405 units, is near Queenstown MRT station.
Both sites are seen as highly attractive and thus likely to be triggered for sale next year. Even if they are not, the eight sites to be tendered out next year will yield 2,925 units, which is nearly as high as the 3,000 units put out in the se-cond half of 2007.
In addition to the reserve list sites, the Government is making available 10,550 private residential units - the largest supply since the second half of 2001.
Still, the impact of this will not be felt immediately.
It will take at least 11/2 years before a project on the eight sites can be launched, said Mr Mak.
And depending on how the market pans out, developers may choose to launch their projects later, he said.
Impact of new sites won't be felt yet
Sites for tender will yield 2,925 units but they won't be ready for at least 11/2 years
By Joyce Teo
The Government came out about a week ago to say that there is no shortage of residential supply and thus no need for buyers to rush. That was when it announced its decision to tender out eight residential sites for sale in the first half of next year.
The eight sites are in non-city areas such as Choa Chu Kang, Simei and Tampines.
It also has a long reserve list of residential sites that are available for sale, if developers are to show interest by committing to a minimum bid the Government finds acceptable.
This potential supply comes from the twice-yearly government land sales programme and means buyers will have more choices while property owners may benefit.
HDB upgraders in particular will be glad to know that the latest sales programme - for the first half of next year - will see a slew of suburban residential sites.
Property owners who live near the eight sites can expect to see a new project in their neighbourhood in the next few years.
If the economy improves steadily, they can even look forward to a rise in their home values when the new project is released for sale.
'Generally, when a new project is launched, it will have a bearing on the developments in the vicinity,' said Colliers International's research and advisory director, Ms Tay Huey Ying.
'If a project is launched at bullish price levels, it could push up the prices of surrounding developments, though a lot can depend on project attributes.'
Ngee Ann Polytechnic lecturer Nicholas Mak said: 'In a buoyant market, developers would launch at a higher price on a per sq ft basis than surrounding projects. In a less buoyant market, the premium would be smaller.
'The launch price does give some support to the asking prices of individual sellers in the area.'
In January, three sites will be put up for sale, including two executive condominium (EC) sites.
The first EC site in Buangkok Drive, near The Quartz condo and Buangkok MRT station, can accommodate an estimated 520 units while the second in Yishun Avenue 11, next to the Lilydale EC, can take 385 units.
The EC scheme was launched in 1996 to help Singaporeans who could afford more than new HDB flats yet found the prices of private housing too high.
The biggest of the eight sites is at the junction of Tampines Avenue 1 and Avenue 10, next to The Tropica condo and Bedok Reservoir. It can take 605 units.
The site in Choa Chu Kang Road, suitable for 200 units, sits above the Bukit Panjang LRT Depot and Ten Mile Junction, and is near the future Bukit Panjang MRT station.
The Sembawang Road site is near Sembawang Shopping Centre and can take about 290 units.
In the west, the Boon Lay Way site for 525 units is next to the sold-out The Caspian and near Lakeside MRT station.
Property consultants also singled out the site at Simei Street 3 and the one at the junction of Upper Serangoon Road and Pheng Geck Avenue as choice ones because of their proximity to the Simei and Potong Pasir MRT stations respectively.
'As Singapore becomes more populated, characterised by a relatively fast-paced lifestyle, accessibility and proximity to mass transit stations will be a key consideration for future home buyers,' said CBRE Research director Leonard Tay.
On the reserve list, there are also sites near MRT stations: The Bartley Road site, which can take about 500 units, faces Bartley MRT station and the Stirling Road site, which can have 405 units, is near Queenstown MRT station.
Both sites are seen as highly attractive and thus likely to be triggered for sale next year. Even if they are not, the eight sites to be tendered out next year will yield 2,925 units, which is nearly as high as the 3,000 units put out in the se-cond half of 2007.
In addition to the reserve list sites, the Government is making available 10,550 private residential units - the largest supply since the second half of 2001.
Still, the impact of this will not be felt immediately.
It will take at least 11/2 years before a project on the eight sites can be launched, said Mr Mak.
And depending on how the market pans out, developers may choose to launch their projects later, he said.
ST : Why singles opt for shoebox apartments
Nov 15, 2009
YOUR LETTERS
Why singles opt for shoebox apartments
I refer to last Sunday's editorial, 'Tiny flats a good buy?'
The main reason such private shoebox units have taken off is that many singles who want to live on their own are unable to afford resale HDB flats because of the high cash over valuation (COV) amounts which sellers demand.
Singles who generally have savings of between $20,000 and $30,000 will thus opt for a private shoebox apartment because that sum can cover around 5per cent of the purchase price.
Going for a resale three-room HDB flat, for instance, would require one to set aside some $30,000 to $50,000 for renovations.
Buying a new private unit would mean less hassle with, and expense on, renovations as almost all fixtures are provided.
One may just need to spend on some simple electrical works or decor for a new 'mickey mouse' studio.
Single Singaporeans also compete with permanent residents for resale HDB flats. The demand for such flats outstrips their supply, thus pushing up their prices even more.
I live with my parents in the Bedok Reservoir area. Finding a resale HDB flat that is within my means is not a problem, but those available would likely be located much farther away - such as in Jurong West or Woodlands.
Considering the heavy first-time cash outlay for a resale HDB flat and an undesirable location, I would rather get a private shoebox apartment, where I would be at least near my parents and have my own space as well.
YOUR LETTERS
Why singles opt for shoebox apartments
I refer to last Sunday's editorial, 'Tiny flats a good buy?'
The main reason such private shoebox units have taken off is that many singles who want to live on their own are unable to afford resale HDB flats because of the high cash over valuation (COV) amounts which sellers demand.
Singles who generally have savings of between $20,000 and $30,000 will thus opt for a private shoebox apartment because that sum can cover around 5per cent of the purchase price.
Going for a resale three-room HDB flat, for instance, would require one to set aside some $30,000 to $50,000 for renovations.
Buying a new private unit would mean less hassle with, and expense on, renovations as almost all fixtures are provided.
One may just need to spend on some simple electrical works or decor for a new 'mickey mouse' studio.
Single Singaporeans also compete with permanent residents for resale HDB flats. The demand for such flats outstrips their supply, thus pushing up their prices even more.
I live with my parents in the Bedok Reservoir area. Finding a resale HDB flat that is within my means is not a problem, but those available would likely be located much farther away - such as in Jurong West or Woodlands.
Considering the heavy first-time cash outlay for a resale HDB flat and an undesirable location, I would rather get a private shoebox apartment, where I would be at least near my parents and have my own space as well.
ST : What's up at the bay
Nov 15, 2009
What's up at the bay
Marina Bay, Singapore's crown jewel, is slowly but surely taking shape
By Tan Dawn Wei
In 1992, there were plans for a landmark twin tower - Singapore's tallest office buildings - just at the water's edge in Marina Bay, soaring to as high as 80 storeys.
A model of the towers was even on exhibition in 1996 when plans were unveiled for the area.
Those monumental structures never quite materialised on the fringe of the waterfront. And it was probably a good thing: Imagine how people in the other buildings behind the two mammoth structures would have felt.
The new plan by Singapore's urban planners was much more equitable: Let everyone have a piece of the bay views.
It was a rethinking that meant throwing out the original blueprint of densely developed buildings along the waterfront, and creating districts rather than block after block of commercial buildings.
And so it was mandated that waterfront developments should not rise above 50m in height, while buildings will step up gradually, much like how seats are arranged in a theatre.
When the Urban Redevelopment Authority (URA) was tasked with the job of planning for Singapore's future land needs, it was not just about dumping soil into the sea to create more land.
The bigger challenge was sculpting the skyline, making sure it looks picture perfect on every postcard and tourist snapshot.
Meticulous planning
Marina Bay is, undoubtedly, Singapore's crown jewel - arguably the most ambitious and longest-in- planning development the Government has ever undertaken.
An enormous amount of contemplation, engineering and investments has been poured into this prime plot, which the public had a glimpse of when Prime Minister Lee Hsien Loong shared a fly-by video of it at his National Day Rally speech this year. In his rally speech in 2005, he gave a preview of the new Marina Bay, which was still at the drawing stage.
The Government has already pumped in $7.5 billion in infrastructure cost to make the land ready for investors, while total private investments tally up to $20.2 billion to date.
Around 24ha of land within Marina Bay has already been sold for development, including sites for One Raffles Quay, the Marina Bay Financial Centre and Marina Bay Sands.
It is where everyone will congregate and where everything will happen: the annual night-time Formula One race, New Year's Eve countdown, National Day Parade, big-scale conventions, an upcoming casino, the new financial centre and the city's highest luxury residential blocks.
With the bay's most iconic development - integrated resort Marina Bay Sands - about to open for business in the first quarter of next year, anticipation and excitement are at an all-time high.
But it has taken more than 30 years to get to this point. At the beginning, there was nothing - not even land.
Land reclamation exercises from 1969 to 1992 produced about 370ha in the bay area and 80ha in Marina Centre, in anticipation of the nation's economic growth and, with it, the extension of the Central Business District (CBD).
Unlike, say, Canary Wharf in East London, which was developed as a huge office and shopping precinct that is separate from the city's traditional financial centre in The Square Mile, Marina Bay's advantage is in its integration with the current financial district.
'It is not the old downtown and the new downtown. Marina Bay is planned as a seamless extension of the existing CBD,' said Mr Andrew Fassam, deputy director of URA's urban planning department.
All new roads branch off from existing road networks at Raffles Place and Shenton Way.
Singapore's urban planners also made a conscious decision to frame the bay, and ensure that the area would have a mix of uses where there would be life after dark - 24/7, in fact.
Another design principle was that it had to be a place for everyone and 'not just the affluent', said Mr Fassam.
So the Government decided to put in public-pleasing facilities: A 3.4km promenade linking the major public attractions like the Merlion, Esplanade - Theatres on the Bay and the upcoming ArtScience Museum; underground links lined with shops; and 100ha of land set aside for three waterfront gardens.
But it also decided to zone the area as a 'white site', which means that developers have the flexibility to build according to their vision.
When property tycoon Kwek Leng Beng bid for a plum piece of land fronting the bay, he had initially wanted the project to be half-commercial.
He later changed his mind and developed The Sail instead, two residential blocks towering at 63 and 70 storeys which saw no lack of takers, even though property analysts were initially sceptical and felt only that an office building would work on that site.
The URA also allotted larger parcels in the area so developers could build bigger buildings based on the needs of financial institutions, such as trading floors.
An upcoming development, Asia Square, is hoping to plug the gap for Grade A office space in town, especially those that have column-free floor plates.
When completed, the two towers will add 2 million sq ft of office space to the mix.
'What clinched the deal for us was the availability of a huge parcel of land that could be developed into premium grade A+ office space, sitting in a prime location that is well-connected to the business hub,' said project director Jeremy Choy.
The development's parent company, Macquarie Global Property Advisors, bid more than $2 billion for the land.
The integrated development also houses a 280-room five-star hotel, and has space for retail and food and beverage, in addition to office space.
Mr Choy added that one of the critical deciding factors was the long-term plan for the area.
That the area was supported by the latest advances in infrastructure, like access to a district cooling system, also helped seal the deal.
Buildings in the area are served by common services tunnels which carry sewerage, water and telecommunication pipes typically buried under the road. These tunnels can be accessed without digging up the roads.
This is the first such network in South-east Asia.
The district also has its own cooling system, which makes for better economies of scale. In the pipeline is a centralised pneumatic refuse collection system that sucks all rubbish to one central location and saves the garbage truck from having to go door to door.
Even the greening of the area has been planned to a T. Planting plans include green, pink and yellow themes for different districts within the area. Coupled with this is a night lighting plan, which was originally designed for the Civic District but has since been extended to the CBD and Marina Bay.
Under the plan, buildings are required to be lit as part of the sale conditions, while the Government gives a cash grant to existing buildings around the bay to light up.
'We can put good hardware in place, but that doesn't mean that the place will be successful. The right software is important to make it come alive,' acknowledged Mr Fassam.
So it went and wooed private investors by going to overseas fairs, some of which have translated into successful land sales.
Good long-term prospects
Likewise, the clincher for Marina Bay Sands has been the long-term prospects of the area and the growing exhibition and convention business, said its chief executive officer and president Thomas Arasi.
'The company's investment and commitment were based on the fact that Singapore has breadth and depth across all the major travel segments to make the integrated resort thrive. Few global gateways offer everything that Singapore can offer tourists from around the region and around the world,' he said.
Over the years, the plan has been constantly refined - from when it first appeared as a concept plan in the 1970s, to 2000, when the first site was launched - which has since been developed into what is now One Raffles Quay.
At one point, Marina South was thrown up as a possible site for the Singapore Management University campus, but it was decided that the university should go back to where the schools traditionally were, in the Bras Basah area.
Marina South's interim tenants have since all gone, and infrastructure works are taking place there now. That land had been sold on short-term leases of between 21 and 24 years after it was reclaimed. Those leases expired last year.
But the fervent development of Marina Bay as the new financial hub has also thrown up some concerns, among which is whether there will be an oversupply of office space, especially since the economy has been hit so badly.
The authorities do not seem worried.
Some office leasing agents have reportedly seen an increased number of leasing enquiries over the last quarter as rental rates became more competitive, and lease packages offered by landlords became more attractive, said URA.
And this could spur demand and help absorb some of the office space that is coming on stream.
Some developers have also continued to delay the completion of their projects, while a few others are considering converting existing office buildings in the CBD to residential use.
This would help regulate the supply of office space, they reason.
There has been quite a bit of international interest, said Mr Fassam, with investors asking when the next parcel will be released for sale.
But the authorities are in no hurry to open the floodgates and let buildings sprout.
After all, it has taken three decades for Marina Bay's transformation, and it could well take another three decades to fill up the rest of the land.
dawntan@sph.com.sg
1977: An expanse of white sand marks the Marina Bay site (in the background) after a land reclamation exercise. -- PHOTO: URBAN REDEVELOPMENT AUTHORITY
What's up at the bay
Marina Bay, Singapore's crown jewel, is slowly but surely taking shape
By Tan Dawn Wei
In 1992, there were plans for a landmark twin tower - Singapore's tallest office buildings - just at the water's edge in Marina Bay, soaring to as high as 80 storeys.
A model of the towers was even on exhibition in 1996 when plans were unveiled for the area.
Those monumental structures never quite materialised on the fringe of the waterfront. And it was probably a good thing: Imagine how people in the other buildings behind the two mammoth structures would have felt.
The new plan by Singapore's urban planners was much more equitable: Let everyone have a piece of the bay views.
It was a rethinking that meant throwing out the original blueprint of densely developed buildings along the waterfront, and creating districts rather than block after block of commercial buildings.
And so it was mandated that waterfront developments should not rise above 50m in height, while buildings will step up gradually, much like how seats are arranged in a theatre.
When the Urban Redevelopment Authority (URA) was tasked with the job of planning for Singapore's future land needs, it was not just about dumping soil into the sea to create more land.
The bigger challenge was sculpting the skyline, making sure it looks picture perfect on every postcard and tourist snapshot.
Meticulous planning
Marina Bay is, undoubtedly, Singapore's crown jewel - arguably the most ambitious and longest-in- planning development the Government has ever undertaken.
An enormous amount of contemplation, engineering and investments has been poured into this prime plot, which the public had a glimpse of when Prime Minister Lee Hsien Loong shared a fly-by video of it at his National Day Rally speech this year. In his rally speech in 2005, he gave a preview of the new Marina Bay, which was still at the drawing stage.
The Government has already pumped in $7.5 billion in infrastructure cost to make the land ready for investors, while total private investments tally up to $20.2 billion to date.
Around 24ha of land within Marina Bay has already been sold for development, including sites for One Raffles Quay, the Marina Bay Financial Centre and Marina Bay Sands.
It is where everyone will congregate and where everything will happen: the annual night-time Formula One race, New Year's Eve countdown, National Day Parade, big-scale conventions, an upcoming casino, the new financial centre and the city's highest luxury residential blocks.
With the bay's most iconic development - integrated resort Marina Bay Sands - about to open for business in the first quarter of next year, anticipation and excitement are at an all-time high.
But it has taken more than 30 years to get to this point. At the beginning, there was nothing - not even land.
Land reclamation exercises from 1969 to 1992 produced about 370ha in the bay area and 80ha in Marina Centre, in anticipation of the nation's economic growth and, with it, the extension of the Central Business District (CBD).
Unlike, say, Canary Wharf in East London, which was developed as a huge office and shopping precinct that is separate from the city's traditional financial centre in The Square Mile, Marina Bay's advantage is in its integration with the current financial district.
'It is not the old downtown and the new downtown. Marina Bay is planned as a seamless extension of the existing CBD,' said Mr Andrew Fassam, deputy director of URA's urban planning department.
All new roads branch off from existing road networks at Raffles Place and Shenton Way.
Singapore's urban planners also made a conscious decision to frame the bay, and ensure that the area would have a mix of uses where there would be life after dark - 24/7, in fact.
Another design principle was that it had to be a place for everyone and 'not just the affluent', said Mr Fassam.
So the Government decided to put in public-pleasing facilities: A 3.4km promenade linking the major public attractions like the Merlion, Esplanade - Theatres on the Bay and the upcoming ArtScience Museum; underground links lined with shops; and 100ha of land set aside for three waterfront gardens.
But it also decided to zone the area as a 'white site', which means that developers have the flexibility to build according to their vision.
When property tycoon Kwek Leng Beng bid for a plum piece of land fronting the bay, he had initially wanted the project to be half-commercial.
He later changed his mind and developed The Sail instead, two residential blocks towering at 63 and 70 storeys which saw no lack of takers, even though property analysts were initially sceptical and felt only that an office building would work on that site.
The URA also allotted larger parcels in the area so developers could build bigger buildings based on the needs of financial institutions, such as trading floors.
An upcoming development, Asia Square, is hoping to plug the gap for Grade A office space in town, especially those that have column-free floor plates.
When completed, the two towers will add 2 million sq ft of office space to the mix.
'What clinched the deal for us was the availability of a huge parcel of land that could be developed into premium grade A+ office space, sitting in a prime location that is well-connected to the business hub,' said project director Jeremy Choy.
The development's parent company, Macquarie Global Property Advisors, bid more than $2 billion for the land.
The integrated development also houses a 280-room five-star hotel, and has space for retail and food and beverage, in addition to office space.
Mr Choy added that one of the critical deciding factors was the long-term plan for the area.
That the area was supported by the latest advances in infrastructure, like access to a district cooling system, also helped seal the deal.
Buildings in the area are served by common services tunnels which carry sewerage, water and telecommunication pipes typically buried under the road. These tunnels can be accessed without digging up the roads.
This is the first such network in South-east Asia.
The district also has its own cooling system, which makes for better economies of scale. In the pipeline is a centralised pneumatic refuse collection system that sucks all rubbish to one central location and saves the garbage truck from having to go door to door.
Even the greening of the area has been planned to a T. Planting plans include green, pink and yellow themes for different districts within the area. Coupled with this is a night lighting plan, which was originally designed for the Civic District but has since been extended to the CBD and Marina Bay.
Under the plan, buildings are required to be lit as part of the sale conditions, while the Government gives a cash grant to existing buildings around the bay to light up.
'We can put good hardware in place, but that doesn't mean that the place will be successful. The right software is important to make it come alive,' acknowledged Mr Fassam.
So it went and wooed private investors by going to overseas fairs, some of which have translated into successful land sales.
Good long-term prospects
Likewise, the clincher for Marina Bay Sands has been the long-term prospects of the area and the growing exhibition and convention business, said its chief executive officer and president Thomas Arasi.
'The company's investment and commitment were based on the fact that Singapore has breadth and depth across all the major travel segments to make the integrated resort thrive. Few global gateways offer everything that Singapore can offer tourists from around the region and around the world,' he said.
Over the years, the plan has been constantly refined - from when it first appeared as a concept plan in the 1970s, to 2000, when the first site was launched - which has since been developed into what is now One Raffles Quay.
At one point, Marina South was thrown up as a possible site for the Singapore Management University campus, but it was decided that the university should go back to where the schools traditionally were, in the Bras Basah area.
Marina South's interim tenants have since all gone, and infrastructure works are taking place there now. That land had been sold on short-term leases of between 21 and 24 years after it was reclaimed. Those leases expired last year.
But the fervent development of Marina Bay as the new financial hub has also thrown up some concerns, among which is whether there will be an oversupply of office space, especially since the economy has been hit so badly.
The authorities do not seem worried.
Some office leasing agents have reportedly seen an increased number of leasing enquiries over the last quarter as rental rates became more competitive, and lease packages offered by landlords became more attractive, said URA.
And this could spur demand and help absorb some of the office space that is coming on stream.
Some developers have also continued to delay the completion of their projects, while a few others are considering converting existing office buildings in the CBD to residential use.
This would help regulate the supply of office space, they reason.
There has been quite a bit of international interest, said Mr Fassam, with investors asking when the next parcel will be released for sale.
But the authorities are in no hurry to open the floodgates and let buildings sprout.
After all, it has taken three decades for Marina Bay's transformation, and it could well take another three decades to fill up the rest of the land.
dawntan@sph.com.sg
1977: An expanse of white sand marks the Marina Bay site (in the background) after a land reclamation exercise. -- PHOTO: URBAN REDEVELOPMENT AUTHORITY
Saturday, November 14, 2009
Live the high life on Holland Hill
(Abstract from TodayOnline 14th Nov, 2009 by Tan Hui Leng)
MCL Land and Ho Bee will launch the 12-storey freehold Parvis condo over the weekend. Located at Holland Hill, Parvis is a 248-unit development located near the Farrer and Holland MRT stations along the Circle Line. There are two-, three- and four-bedroom apartments, as well as penthouses with sizes ranging from 990 to 3,229 square feet. The average price is $1,480 per sq ft.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
Parvis at Holland Hill
MCL Land and Ho Bee will launch the 12-storey freehold Parvis condo over the weekend. Located at Holland Hill, Parvis is a 248-unit development located near the Farrer and Holland MRT stations along the Circle Line. There are two-, three- and four-bedroom apartments, as well as penthouses with sizes ranging from 990 to 3,229 square feet. The average price is $1,480 per sq ft.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
Parvis at Holland Hill
Smooth out all cycles... and not just the commercial ones
(Abstract from TodayOnline 14th Nov, 2009 by Colin Tan)
Asset inflation and property cycles hogged the news again this week. On Tuesday, Finance Minister Tharman Shanmugaratnam spoke about the need to manage the property cycle while the Finance, Trade and Industry GPC stated that businesses want predictability to minimise volatility and to remain cost-competitive. It felt there is room for the Government, particularly in the industrial and commercial arenas, to manage externalities and reduce waste.
Today, the problem of economic waste cannot be over- emphasised. Recent third-quarter data show that the office vacancy rate has risen to 12.2 per cent. As at the end of September, there are an estimated 9 million sq feet of empty office space. This translates to about four years' worth of annual supply.
At the same time, those tenants who have signed new leases 18 months ago or earlier are packed like sardines to cope with the then-high rents. Imagine how much more efficient these firms could have been with more space?
But managing cycles in the residential arena is just as important, if not more so, as it concerns every Singaporean from the very top to the bottom.
Should we have "managed" the sharp rise in prices in the upper-end of the private housing market in 2007 ? Or as one columnist in a business paper suggested: Having high luxury-home prices is good. Besides bringing big-spending wealthy investors, it helps generate real-estate-related jobs.
On hindsight, we should have. This is because the economic rent earned by developers in the upper segment lead to the re-assignment of resources from the mid- and mass-segment to the upper-end. It was thus no surprise that supply at the lower end in 2007 was thin. This eventually led to rising prices this year.
But another negative impact of price volatility is that it encourages anyone wishing to enter the market to "time" their purchases. This is because if you got your timing right, you could potentially "save" or "earn" a lot. So, we have a situation where buying is based not on need but on sentiment. Households who should be buying are not, while those who should not are doing so.
Some will delay their purchase in the hope that prices will correct later. Others will buy ahead of their needs because they are afraid prices may rise beyond their reach.
Yet others will speculate. The higher the volatility, the greater the opportunities for speculation. Housing demand then becomes very distorted and difficult to understand or predict. It is no wonder then the relevant policy-makers took such a long time to decide what to do.
And when potential buyers get their timing wrong, as many probably did, they were "forced" into the cheaper HDB resale market. By adopting a market-based approach to pricing new flats, the HDB was also caught out by the market distortion in the private market which had spilled over into the public segment.
For months, it insisted that applicants were very fussy even though demand for new flats remained low even after it introduced new rules to weed out frivolous applicants. Marketers will tell you that if you reduce the price of an unpopular unit enough, there will be takers. That's what private developers do with their remaining units.
Property is also about location. Even though prices are the cheapest in the outlying areas, it does not mean that the less well-off will automatically buy them. Although priced higher, resale flats may offer better value overall in terms of amenities, social networks, travelling time and fewer ERP gantries. ¢
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
Asset inflation and property cycles hogged the news again this week. On Tuesday, Finance Minister Tharman Shanmugaratnam spoke about the need to manage the property cycle while the Finance, Trade and Industry GPC stated that businesses want predictability to minimise volatility and to remain cost-competitive. It felt there is room for the Government, particularly in the industrial and commercial arenas, to manage externalities and reduce waste.
Today, the problem of economic waste cannot be over- emphasised. Recent third-quarter data show that the office vacancy rate has risen to 12.2 per cent. As at the end of September, there are an estimated 9 million sq feet of empty office space. This translates to about four years' worth of annual supply.
At the same time, those tenants who have signed new leases 18 months ago or earlier are packed like sardines to cope with the then-high rents. Imagine how much more efficient these firms could have been with more space?
But managing cycles in the residential arena is just as important, if not more so, as it concerns every Singaporean from the very top to the bottom.
Should we have "managed" the sharp rise in prices in the upper-end of the private housing market in 2007 ? Or as one columnist in a business paper suggested: Having high luxury-home prices is good. Besides bringing big-spending wealthy investors, it helps generate real-estate-related jobs.
On hindsight, we should have. This is because the economic rent earned by developers in the upper segment lead to the re-assignment of resources from the mid- and mass-segment to the upper-end. It was thus no surprise that supply at the lower end in 2007 was thin. This eventually led to rising prices this year.
But another negative impact of price volatility is that it encourages anyone wishing to enter the market to "time" their purchases. This is because if you got your timing right, you could potentially "save" or "earn" a lot. So, we have a situation where buying is based not on need but on sentiment. Households who should be buying are not, while those who should not are doing so.
Some will delay their purchase in the hope that prices will correct later. Others will buy ahead of their needs because they are afraid prices may rise beyond their reach.
Yet others will speculate. The higher the volatility, the greater the opportunities for speculation. Housing demand then becomes very distorted and difficult to understand or predict. It is no wonder then the relevant policy-makers took such a long time to decide what to do.
And when potential buyers get their timing wrong, as many probably did, they were "forced" into the cheaper HDB resale market. By adopting a market-based approach to pricing new flats, the HDB was also caught out by the market distortion in the private market which had spilled over into the public segment.
For months, it insisted that applicants were very fussy even though demand for new flats remained low even after it introduced new rules to weed out frivolous applicants. Marketers will tell you that if you reduce the price of an unpopular unit enough, there will be takers. That's what private developers do with their remaining units.
Property is also about location. Even though prices are the cheapest in the outlying areas, it does not mean that the less well-off will automatically buy them. Although priced higher, resale flats may offer better value overall in terms of amenities, social networks, travelling time and fewer ERP gantries. ¢
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
UOL Q3 profit up 44 per cent
(Abstract from Business Times 14th Nov, 2009 by Kalpana Rashiwala)
Increase due to gains from Nassim Park Residences, associate UIC
UOL Group's third-quarter net profit has risen 44 per cent year on year to $105.6 million. Revenue increased 21 per cent to $323.9 million, thanks to progressive recognition of revenue from development properties.
UOL's bottom line received a fillip from a tripling in share of profits of associated companies to $48.2 million from $15.1 million for Q3 2008.
This was on the back of higher contributions from the progressive completion of Nassim Park Residences (in which UOL has a half share) and UOL's 31.9 per cent share of the profit of United Industrial Corporation, which became an associated company this year.
Revenue from property development rose 49 per cent to $203.5 million, accounting for nearly two-thirds of total group revenue. Among the projects that contributed to UOL's Q3 report card were two new launches this year - Double Bay Residences and Meadows@Peirce, which have sold a total of 937 units to date.
Rental income from investment properties rose 9 per cent on the back of higher occupancy and rental reversions for most of the group's investment properties. However, revenue from hotel operations fell 13 per cent amid the decline in tourism markets.
UOL group chief executive Gwee Lian Kheng said: 'Our development profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs.'
In the first nine months of 2009, UOL's net profit rose 60 per cent to $417.2 million. Revenue increased 15 per cent to $734.3 million. Shareholder funds rose 19 per cent to $4.04 billion as at Sept 30, 2009 - on the back of fair-value gains on available-for-sale financial assets, the group's operating profits for the first nine months of this year, and recognition of negative goodwill and capital reserves arising from the acquisition of additional interest in UIC. Consequently, net tangible asset backing per share rose to $5.11, from $4.22 at end-2008. UOL's gearing ratio improved to 0.39 from 0.42 over the same period.
UOL's hotel arm, Pan Pacific Hotels Group (formerly known as Hotel Plaza), posted a 25 per cent year-on-year drop in Q3 net earnings to $10.1 million on a 6 per cent dip in revenue to $72.8 million.
Nine-month net profit slid 39 per cent to almost $27 million. Revenue fell 12 per cent to $205.1 million. Pan Pacific said that it expects the business climate to remain challenging.
In the stock market yesterday, UOL closed unchanged at $3.29 yesterday while Pan Pacific Hotels ended one cent higher at $1.35.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Increase due to gains from Nassim Park Residences, associate UIC
UOL Group's third-quarter net profit has risen 44 per cent year on year to $105.6 million. Revenue increased 21 per cent to $323.9 million, thanks to progressive recognition of revenue from development properties.
UOL's bottom line received a fillip from a tripling in share of profits of associated companies to $48.2 million from $15.1 million for Q3 2008.
This was on the back of higher contributions from the progressive completion of Nassim Park Residences (in which UOL has a half share) and UOL's 31.9 per cent share of the profit of United Industrial Corporation, which became an associated company this year.
Revenue from property development rose 49 per cent to $203.5 million, accounting for nearly two-thirds of total group revenue. Among the projects that contributed to UOL's Q3 report card were two new launches this year - Double Bay Residences and Meadows@Peirce, which have sold a total of 937 units to date.
Rental income from investment properties rose 9 per cent on the back of higher occupancy and rental reversions for most of the group's investment properties. However, revenue from hotel operations fell 13 per cent amid the decline in tourism markets.
UOL group chief executive Gwee Lian Kheng said: 'Our development profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs.'
In the first nine months of 2009, UOL's net profit rose 60 per cent to $417.2 million. Revenue increased 15 per cent to $734.3 million. Shareholder funds rose 19 per cent to $4.04 billion as at Sept 30, 2009 - on the back of fair-value gains on available-for-sale financial assets, the group's operating profits for the first nine months of this year, and recognition of negative goodwill and capital reserves arising from the acquisition of additional interest in UIC. Consequently, net tangible asset backing per share rose to $5.11, from $4.22 at end-2008. UOL's gearing ratio improved to 0.39 from 0.42 over the same period.
UOL's hotel arm, Pan Pacific Hotels Group (formerly known as Hotel Plaza), posted a 25 per cent year-on-year drop in Q3 net earnings to $10.1 million on a 6 per cent dip in revenue to $72.8 million.
Nine-month net profit slid 39 per cent to almost $27 million. Revenue fell 12 per cent to $205.1 million. Pan Pacific said that it expects the business climate to remain challenging.
In the stock market yesterday, UOL closed unchanged at $3.29 yesterday while Pan Pacific Hotels ended one cent higher at $1.35.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Occupancy at ready-built JTC facilities dip
(Abstract from Business Times 14th Nov,2009 by Uma Shankari)
Net allocation remains in negative territory in Q3 2009 at negative 10,300 sq m against Q2's negative 7,800 sq m
JTC Corp yesterday reported that the occupancy level at its ready-built facilities (RBF) fell slightly in Q3, by 0.3 percentage points to 97.1 per cent. In Q2, the occupancy level was stable at 97.4 per cent.
The industrial landlord also said in its quarterly facilities report that net allocation of its RBF remained in negative territory in Q3 2009 at negative 10,300 square metres, which was weaker than the negative 7,800 sq m recorded in the previous quarter.
On a year-on-year basis, the negative net allocation of RBF saw a steeper fall, from the negative 500 sq m recorded in Q3 2008. The decrease in net allocation came as termination rose by 3 per cent to 26,200 sq m from 25,600 sq m in Q2 2009. However, this is a slowdown from the 30 per cent rise in termination seen in Q2 over Q1.
The top three industry segments that contributed to the RBF termination in Q3 2009 were electronics (which accounted for 34 per cent of termination), chemicals (21 per cent) and precision engineering (21 per cent). A large proportion (some 33 per cent) of companies that terminated said that 'consolidation of operations' was their primary reason. But for JTC's prepared industrial land (PIL), the net allocation bounced back into positive territory, achieving 14.7 hectares in Q3 2009 from negative 32.8 ha in the previous quarter.
JTC said that the swing into positive territory was caused mainly by a manufacturing-related company that took up 12 ha of land during the quarter.
Gross allocation in Q3 climbed to 25.7 ha, compared to 5.4 ha in Q2 2009. Termination registered a 71 per cent fall from the previous quarter to 11 ha in the third quarter. However, on a year-on-year basis, net allocation declined by 66 per cent from 43.5 ha in Q3 2008.
During the quarter, a larger proportion (83 per cent) of the gross allocation of PIL went to manufacturing related and supporting sector. The main segment contributing to the PIL termination was the construction industry, which accounted for 65 per cent of termination.
JTC also said that Fusionopolis phase 2A is currently under construction and is expected to be completed by 2014. The project will have a gross floor area of 103,630 sq m.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Net allocation remains in negative territory in Q3 2009 at negative 10,300 sq m against Q2's negative 7,800 sq m
JTC Corp yesterday reported that the occupancy level at its ready-built facilities (RBF) fell slightly in Q3, by 0.3 percentage points to 97.1 per cent. In Q2, the occupancy level was stable at 97.4 per cent.
The industrial landlord also said in its quarterly facilities report that net allocation of its RBF remained in negative territory in Q3 2009 at negative 10,300 square metres, which was weaker than the negative 7,800 sq m recorded in the previous quarter.
On a year-on-year basis, the negative net allocation of RBF saw a steeper fall, from the negative 500 sq m recorded in Q3 2008. The decrease in net allocation came as termination rose by 3 per cent to 26,200 sq m from 25,600 sq m in Q2 2009. However, this is a slowdown from the 30 per cent rise in termination seen in Q2 over Q1.
The top three industry segments that contributed to the RBF termination in Q3 2009 were electronics (which accounted for 34 per cent of termination), chemicals (21 per cent) and precision engineering (21 per cent). A large proportion (some 33 per cent) of companies that terminated said that 'consolidation of operations' was their primary reason. But for JTC's prepared industrial land (PIL), the net allocation bounced back into positive territory, achieving 14.7 hectares in Q3 2009 from negative 32.8 ha in the previous quarter.
JTC said that the swing into positive territory was caused mainly by a manufacturing-related company that took up 12 ha of land during the quarter.
Gross allocation in Q3 climbed to 25.7 ha, compared to 5.4 ha in Q2 2009. Termination registered a 71 per cent fall from the previous quarter to 11 ha in the third quarter. However, on a year-on-year basis, net allocation declined by 66 per cent from 43.5 ha in Q3 2008.
During the quarter, a larger proportion (83 per cent) of the gross allocation of PIL went to manufacturing related and supporting sector. The main segment contributing to the PIL termination was the construction industry, which accounted for 65 per cent of termination.
JTC also said that Fusionopolis phase 2A is currently under construction and is expected to be completed by 2014. The project will have a gross floor area of 103,630 sq m.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Wheelock reports 59.1% fall in Q3 earnings
(Abstract from Business Times 14th Nov, 2009 by Kalpana Rashiwala)
WHEELOCK Properties (Singapore) posted a 59.1 per cent year-on-year fall in third-quarter net earnings to $54.26 million. Revenue slipped 42 per cent to $133.1 million for the quarter ended Sept 30, 2009.
For the first nine months, net earnings decreased 43.6 per cent from 9M 2008 to almost $93 million. Revenue was 22.4 per cent lower at $296.5 million.
The group attributed lower revenue for Q3 and 9M 2009 chiefly to lower revenue recognition from Scotts Square based on the progress of construction works.
As well, the completion of The Sea View and The Cosmopolitan condos in Q2 and Q3 last year resulted in lower revenue in the latest period.
However, this was partly offset by higher revenue booked from Ardmore II based on the progress of construction works and revenue recognised from Orchard View, on which profit recognition began in Q3.
Wheelock had $337.4 million of investments in its balance sheet at Sept 30, 2009, an increase of $195 million from the figure at Dec 31, 2008.
The increase was due chiefly to a rise in market value of the group's investments in listed Hotel Properties Ltd (HPL) and SC Global Developments.
An impairment loss of $23 million was charged to the income statement in the first quarter ended March 31, 2009. And a subsequent increase in market value of $218 million from April 1 to Sept 30, 2009, was credited to the fair-value reserve under Financial Reporting Standard 39. As a result, shareholders' equity rose to $2.3 billion at end-September 2009, from $2.1 billion at end-2008.
The group's borrowings fell from $392 million at end-2008 to $232 million at end-September 2009 - largely due to repayment of an unsecured loan and part pre-payment of a secured loan from sales proceeds in the current financial period. The debt- to-equity ratio decreased from 19.1 per cent to 10.1 per cent over the same period.
Wheelock said return on shareholders' equity for 9M 2009 was 4.1 per cent, down from 7.5 per cent a year back.
Cash and cash equivalents fell from $756.7 million at end-2008 to $732.98 million at end-September 2009 - due to repayment of loans and dividend payouts. However, the group said it expects to strengthen its cash position with the completion of Ardmore II, which is fully sold, in the first half of 2010. 'We are in good stead to confidently pursue all good investments and development opportunities,' it said.
Wheelock's net asset value per share rose from $1.72 at end-2008 to $1.92 at end-September 2009. On the stock market yesterday, the counter closed a cent higher at $1.74.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved
WHEELOCK Properties (Singapore) posted a 59.1 per cent year-on-year fall in third-quarter net earnings to $54.26 million. Revenue slipped 42 per cent to $133.1 million for the quarter ended Sept 30, 2009.
For the first nine months, net earnings decreased 43.6 per cent from 9M 2008 to almost $93 million. Revenue was 22.4 per cent lower at $296.5 million.
The group attributed lower revenue for Q3 and 9M 2009 chiefly to lower revenue recognition from Scotts Square based on the progress of construction works.
As well, the completion of The Sea View and The Cosmopolitan condos in Q2 and Q3 last year resulted in lower revenue in the latest period.
However, this was partly offset by higher revenue booked from Ardmore II based on the progress of construction works and revenue recognised from Orchard View, on which profit recognition began in Q3.
Wheelock had $337.4 million of investments in its balance sheet at Sept 30, 2009, an increase of $195 million from the figure at Dec 31, 2008.
The increase was due chiefly to a rise in market value of the group's investments in listed Hotel Properties Ltd (HPL) and SC Global Developments.
An impairment loss of $23 million was charged to the income statement in the first quarter ended March 31, 2009. And a subsequent increase in market value of $218 million from April 1 to Sept 30, 2009, was credited to the fair-value reserve under Financial Reporting Standard 39. As a result, shareholders' equity rose to $2.3 billion at end-September 2009, from $2.1 billion at end-2008.
The group's borrowings fell from $392 million at end-2008 to $232 million at end-September 2009 - largely due to repayment of an unsecured loan and part pre-payment of a secured loan from sales proceeds in the current financial period. The debt- to-equity ratio decreased from 19.1 per cent to 10.1 per cent over the same period.
Wheelock said return on shareholders' equity for 9M 2009 was 4.1 per cent, down from 7.5 per cent a year back.
Cash and cash equivalents fell from $756.7 million at end-2008 to $732.98 million at end-September 2009 - due to repayment of loans and dividend payouts. However, the group said it expects to strengthen its cash position with the completion of Ardmore II, which is fully sold, in the first half of 2010. 'We are in good stead to confidently pursue all good investments and development opportunities,' it said.
Wheelock's net asset value per share rose from $1.72 at end-2008 to $1.92 at end-September 2009. On the stock market yesterday, the counter closed a cent higher at $1.74.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved
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