Business Times - 19 Nov 2009
Property tax rebate for HDB owner-occupiers
Set at 50% of tax payable, it is capped at $120; zero tax for one and 2-room HDB owners
THE government will grant a new property tax rebate to all HDB owner-occupiers next year to help them adjust to the increase in annual values (AVs).
The Inland Revenue Authority of Singapore (Iras), which reviews the AVs of all properties, did not revise AVs for HDB flats on Jan 1 this year, given the uncertainty in market rental trends due to the recession.
HDB rentals have since stabilised after a moderate decline and have begun to rise. As a result, current values of HDB rentals, as well as HDB resale prices, are significantly higher than 2007 levels. Iras will therefore revise the AVs of all HDB flat types from Jan 1, 2010. The last AV revision for HDB flats was done last year, based on rental values in 2007.
The new rebate granted to HDB owner-occupiers will apply to property tax payable next year after deducting the 1994 GST Rebate, which is available to all residential property owner-occupiers.
The new rebate is set at 50 per cent of the payable property tax and is capped at $120. To provide additional help to owner-occupiers of smaller HDB flats, the rebate will be the lower of $50 or the actual property tax amount.
With the new property tax rebate for HDB owner-occupiers and the ongoing 1994 GST Rebate, all one and two-room HDB owner-occupiers will continue to pay zero property tax next year.
For average three-room HDB owner-occupiers, the increase in property tax next year, after deducting the special rebates, will be $72 for the year. For four-room HDB owner-occupiers, the average tax increase will be $97 for the year and for five-room HDB owner-occupiers, the average tax increase will be $107 for the year as a whole. For executive HDB owner-occupiers, it will be $103.
Owners of HDB flats will receive their valuation notices and property tax bills by Jan 1 next year. Property tax for 2010 is payable by Jan 31 next year.
Iras encourages HDB flat owners to use the Giro payment scheme to enjoy up to 12 interest-free monthly instalments. Application forms can be downloaded from www.iras.gov.sg.
Thursday, November 19, 2009
ST : Laguna Park not for sale - at least for now
Nov 19, 2009
Laguna Park not for sale - at least for now
By Robin Chan & Jessica Cheam
THE Laguna Park sales committee has voted to call off the faltering collective sale of their Marine Parade condo, after an initial bid failed.
The on-off sale would have been one of the largest here, with an asking price of around $1 billion. But lukewarm response from developers and a fast-approaching deadline for a sale to be completed sealed its fate - for now.
Mr Karamjit Singh, managing director of Credo Real Estate, told The Straits Times that the Laguna Park sales committee decided to let the collective sales agreement (CSA) expire next month: 'To get the 80 per cent takes time, and because it's a very big development, there was not the luxury of time.'
Last month, owners in the East Coast estate failed to sell the property en bloc for $1.2 billion through a tender process. They were considering a lower price of between $950 million and $1 billion, below the $1.2 billion reserve price which would require them to get an 80 per cent vote of approval from owners.
The impending expiry of the CSA left them with little time to get the required signatures. The committee thus decided that instead of pursuing the more than 400 signatures needed, it would be better to start afresh with a new CSA next year, giving them a full 12 months to pursue another sale, Mr Singh said.
Though there had been talks with a potential buyer, nothing came of them, given the sales committee's decision not to pursue the signatures.
It is still too early to say when a new sales committee will be nominated, but Mr Singh says it will be next year.
Owners had not been officially informed of the development when The Straits Times called yesterday, but one who was against the sale and declined to be named was relieved: 'It's a wise move because of the present market situation. One year later, the property market might be picking up again and we would be more justified to sell.'
The Laguna Park sale has been surrounded by drama from the word go. The development obtained the 80 per cent approval from the 500 or so owners late last year, but the $1.2 billion price was decided late 2007.
There was still a vocal minority strongly opposed to a sale, and incidents of vandalism occurred at the condo protesting the deal.
Laguna is a former HUDC estate with a land area of about 677,493 sq ft and a gross plot ratio of 2.8.
If the sale of the 528-unit leasehold project had come off, it would have only been the second en bloc deal this year. The first was the smaller Dragon Mansion in Spottiswoode Park Road, which eventually sold for $100.8 million last month despite asking for $120 million.
Laguna Park not for sale - at least for now
By Robin Chan & Jessica Cheam
THE Laguna Park sales committee has voted to call off the faltering collective sale of their Marine Parade condo, after an initial bid failed.
The on-off sale would have been one of the largest here, with an asking price of around $1 billion. But lukewarm response from developers and a fast-approaching deadline for a sale to be completed sealed its fate - for now.
Mr Karamjit Singh, managing director of Credo Real Estate, told The Straits Times that the Laguna Park sales committee decided to let the collective sales agreement (CSA) expire next month: 'To get the 80 per cent takes time, and because it's a very big development, there was not the luxury of time.'
Last month, owners in the East Coast estate failed to sell the property en bloc for $1.2 billion through a tender process. They were considering a lower price of between $950 million and $1 billion, below the $1.2 billion reserve price which would require them to get an 80 per cent vote of approval from owners.
The impending expiry of the CSA left them with little time to get the required signatures. The committee thus decided that instead of pursuing the more than 400 signatures needed, it would be better to start afresh with a new CSA next year, giving them a full 12 months to pursue another sale, Mr Singh said.
Though there had been talks with a potential buyer, nothing came of them, given the sales committee's decision not to pursue the signatures.
It is still too early to say when a new sales committee will be nominated, but Mr Singh says it will be next year.
Owners had not been officially informed of the development when The Straits Times called yesterday, but one who was against the sale and declined to be named was relieved: 'It's a wise move because of the present market situation. One year later, the property market might be picking up again and we would be more justified to sell.'
The Laguna Park sale has been surrounded by drama from the word go. The development obtained the 80 per cent approval from the 500 or so owners late last year, but the $1.2 billion price was decided late 2007.
There was still a vocal minority strongly opposed to a sale, and incidents of vandalism occurred at the condo protesting the deal.
Laguna is a former HUDC estate with a land area of about 677,493 sq ft and a gross plot ratio of 2.8.
If the sale of the 528-unit leasehold project had come off, it would have only been the second en bloc deal this year. The first was the smaller Dragon Mansion in Spottiswoode Park Road, which eventually sold for $100.8 million last month despite asking for $120 million.
ST : Industrial site in Balestier up for sale
Nov 19, 2009
Industrial site in Balestier up for sale
A PIECE of industrial land in Balestier, which can be converted into a residential project, has been put up for sale.
The freehold 27,838 sq ft plot can be turned into a development comprising some 100 apartments with an average size of 780 sq ft each, said marketing agent Credo Real Estate.
The four owners of the four three-storey terrace factory units at 6 Jalan Ampas are hoping for $27 million to $30 million.
But the buyer of the land will also have to pay a development charge of about $18.7 million for the rezoning of the site.
The indicative price range after factoring in the development charge works out to $586 to $625 per sq ft per plot ratio. At this price, the developer's breakeven point is $950 to $1,000 psf, said Credo's deputy managing director, Mr Tan Hong Boon.
The site is near the Shaw Plaza mall and recently-launched Prestige Heights, where some units were sold in October at a median price of $1,322 psf.
Mr Tan said the four owners could be the first industrial owners in the area to initiate a sale, after the Urban Redevelopment Authority's review of the area's 15 industrial buildings in July last year.
The URA said it was prepared to consider proposals to change the use of the site from industrial to residential purposes at a gross plot ratio of 2.8.
But Mr Tan said the hefty development charge may mean it will be a while before the owners of the area's 14 other industrial buildings find a collective sale worthwhile.
Meanwhile, the collective sale of The Meyer Place condo off Meyer Road has yet to be wrapped up. The tender closed on Oct 28 with no firm bids. There is apparently an offer that is $6 million below the owners' reserve price of $65 million.
Industrial site in Balestier up for sale
A PIECE of industrial land in Balestier, which can be converted into a residential project, has been put up for sale.
The freehold 27,838 sq ft plot can be turned into a development comprising some 100 apartments with an average size of 780 sq ft each, said marketing agent Credo Real Estate.
The four owners of the four three-storey terrace factory units at 6 Jalan Ampas are hoping for $27 million to $30 million.
But the buyer of the land will also have to pay a development charge of about $18.7 million for the rezoning of the site.
The indicative price range after factoring in the development charge works out to $586 to $625 per sq ft per plot ratio. At this price, the developer's breakeven point is $950 to $1,000 psf, said Credo's deputy managing director, Mr Tan Hong Boon.
The site is near the Shaw Plaza mall and recently-launched Prestige Heights, where some units were sold in October at a median price of $1,322 psf.
Mr Tan said the four owners could be the first industrial owners in the area to initiate a sale, after the Urban Redevelopment Authority's review of the area's 15 industrial buildings in July last year.
The URA said it was prepared to consider proposals to change the use of the site from industrial to residential purposes at a gross plot ratio of 2.8.
But Mr Tan said the hefty development charge may mean it will be a while before the owners of the area's 14 other industrial buildings find a collective sale worthwhile.
Meanwhile, the collective sale of The Meyer Place condo off Meyer Road has yet to be wrapped up. The tender closed on Oct 28 with no firm bids. There is apparently an offer that is $6 million below the owners' reserve price of $65 million.
ST : Property tax on HDB flats going up
Nov 19, 2009
Property tax on HDB flats going up
One-off rebate to cushion rise; one- and two-room owners will pay nothing
By Jessica Cheam
HOMEOWNERS: be prepared to pay higher property taxes next year.
In line with the rally in home prices, the taxman is revising upwards the value of Housing Board (HDB) homes.
The Inland Revenue Authority of Singapore (Iras) announced yesterday that the annual values (AV) of all types of HDB flats will be raised with effect from Jan 1.
This will mean a hike in property taxes for 2010.
The property tax rate in Singapore is currently set at 10 per cent of a property's AV, although owner- occupied residential properties enjoy a concessionary 4 per cent tax rate.
To soften the impact, a one-off rebate is being introduced to help HDB homeowners adjust to the increase.
With this new rebate and ongoing GST rebates, low-income households who live in one-room or two- room flats will not have to pay any tax for 2010, Iras said.
Industry analysts yesterday said that Iras's latest move was 'not totally unexpected'. HDB resale prices have risen a hefty 31.2 per cent in the past two years, and a further 3.8 per cent in the first nine months of the year.
'As HDB resale flat prices have exceeded the property peak of 2007, this was inevitable,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
What was more surprising, however, was the timing of the announcement.
'There are households who are still reeling from the recession, and unemployment is still high. It could have come a bit later when the job market has recovered,' said Mr Mak.
Iras last revised AVs on Jan 1, 2008.
It said yesterday that it reviews all property AVs annually, including HDB flats, to 'ensure that they reflect prevailing market rental values for the purpose of determining property tax'.
AVs of HDB flats were not revised last year, despite HDB rentals increasing by between 31 per cent and 37 per cent in 2008 relative to 2007, it said.
This adjustment was deferred in view of the uncertainty in market rental trends caused by the economic recession. Iras added that there was evidence of rental value declines due to the negative economic outlook at the time.
However, market sentiment has since changed dramatically. Iras noted that HDB rentals stabilised after a moderate decline from late 2008 to the middle of this year, and have since begun to rise.
As a result, current values of HDB rentals, as well as resale prices, are still significantly higher than levels seen in 2007.
'The AVs of HDB flats will, therefore, have to be adjusted beyond the last revision in January 2008,' said Iras.
But to help HDB homeowners adjust to the rise, the Government is granting a new property tax rebate to all HDB owner-occupiers for property tax payable in 2010 - set at 50 per cent of the property tax payable and capped at $120. Low-income households will be assisted because flats with a property tax of $50 and below will not need to pay property tax next year.
The average three- room HDB owner-occupier will face an increase, after rebates, of $72 for the year.
The rise will be about $97 for four-roomers, $107 for five-roomers and $103 for executive HDB flat owners.
PropNex chief executive Mohamed Ismail said the rebates will help cushion the blow. He pointed out that HDB owners have enjoyed higher rentals and resale values over the past two years, so the increase in taxes was 'to be expected'.
HDB homeowner Lim Chye Boon, 48, said he had expected the tax increase to come 'at some point' so was not too bothered.
But for Mr Kenny Koh, 27, who has just bought his five-room flat in Sengkang, it was not welcome news.
'I just spent so much money buying my new home and now have to pay more again,' he said. 'But at least, the rebate helps a bit.'
Property tax on HDB flats going up
One-off rebate to cushion rise; one- and two-room owners will pay nothing
By Jessica Cheam
HOMEOWNERS: be prepared to pay higher property taxes next year.
In line with the rally in home prices, the taxman is revising upwards the value of Housing Board (HDB) homes.
The Inland Revenue Authority of Singapore (Iras) announced yesterday that the annual values (AV) of all types of HDB flats will be raised with effect from Jan 1.
This will mean a hike in property taxes for 2010.
The property tax rate in Singapore is currently set at 10 per cent of a property's AV, although owner- occupied residential properties enjoy a concessionary 4 per cent tax rate.
To soften the impact, a one-off rebate is being introduced to help HDB homeowners adjust to the increase.
With this new rebate and ongoing GST rebates, low-income households who live in one-room or two- room flats will not have to pay any tax for 2010, Iras said.
Industry analysts yesterday said that Iras's latest move was 'not totally unexpected'. HDB resale prices have risen a hefty 31.2 per cent in the past two years, and a further 3.8 per cent in the first nine months of the year.
'As HDB resale flat prices have exceeded the property peak of 2007, this was inevitable,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
What was more surprising, however, was the timing of the announcement.
'There are households who are still reeling from the recession, and unemployment is still high. It could have come a bit later when the job market has recovered,' said Mr Mak.
Iras last revised AVs on Jan 1, 2008.
It said yesterday that it reviews all property AVs annually, including HDB flats, to 'ensure that they reflect prevailing market rental values for the purpose of determining property tax'.
AVs of HDB flats were not revised last year, despite HDB rentals increasing by between 31 per cent and 37 per cent in 2008 relative to 2007, it said.
This adjustment was deferred in view of the uncertainty in market rental trends caused by the economic recession. Iras added that there was evidence of rental value declines due to the negative economic outlook at the time.
However, market sentiment has since changed dramatically. Iras noted that HDB rentals stabilised after a moderate decline from late 2008 to the middle of this year, and have since begun to rise.
As a result, current values of HDB rentals, as well as resale prices, are still significantly higher than levels seen in 2007.
'The AVs of HDB flats will, therefore, have to be adjusted beyond the last revision in January 2008,' said Iras.
But to help HDB homeowners adjust to the rise, the Government is granting a new property tax rebate to all HDB owner-occupiers for property tax payable in 2010 - set at 50 per cent of the property tax payable and capped at $120. Low-income households will be assisted because flats with a property tax of $50 and below will not need to pay property tax next year.
The average three- room HDB owner-occupier will face an increase, after rebates, of $72 for the year.
The rise will be about $97 for four-roomers, $107 for five-roomers and $103 for executive HDB flat owners.
PropNex chief executive Mohamed Ismail said the rebates will help cushion the blow. He pointed out that HDB owners have enjoyed higher rentals and resale values over the past two years, so the increase in taxes was 'to be expected'.
HDB homeowner Lim Chye Boon, 48, said he had expected the tax increase to come 'at some point' so was not too bothered.
But for Mr Kenny Koh, 27, who has just bought his five-room flat in Sengkang, it was not welcome news.
'I just spent so much money buying my new home and now have to pay more again,' he said. 'But at least, the rebate helps a bit.'
ST : Clementi Mall a potential shopping hub
Nov 18, 2009
Clementi Mall a potential shopping hub
Bullish bid attributed to its ability to generate recurring income: SPH
By Jessica Cheam
CLEMENTI Mall's potential as a busy shopping hub and its ability to generate recurring income were key reasons for the bullish bid from Singapore Press Holdings (SPH) and its joint venture partners.
SPH chief executive Alan Chan told a briefing yesterday that the team behind the winning $541.9 million tender based its bid on rents the mall could achieve beyond the first rental cycle.
Mr Chan said the bidding team was confident of achieving rents of top suburban malls and that the mall will enjoy capital appreciation similar to other retail properties in land-scarce Singapore.
'Due to scarcity of land and growing population, prospect for capital appreciation is positive,' he added.
Times Properties owns 60 per cent of the joint venture CM Domain; NTUC Income and NTUC FairPrice hold 20 per cent stakes. The Housing Board awarded the shopping centre site to it yesterday.
Some analysts were taken aback when bids for the tender of the 99-year leasehold mall at the junction of Commonwealth Avenue West and Clementi Avenue 3 were revealed last week.
CM Domain's bullish offer was nearly 42 per cent above the second-highest bid of $382 million from a joint venture between Keppel Land's Alpha Investment Partners and Guthrie.
SPH shares reacted by sliding 3.9 per cent the next day, but have since regained some ground. The company noted that the value of its Paragon investment in Orchard Road had increased at a compounded annual growth rate of 8 per cent since it was acquired in 1997. Some market watchers at the time had thought that the price paid for the shopping mall in Orchard Road was on the high side.
Mr Chan said that Clementi Mall has 'a unique opportunity to be the anchor attraction' in the area, adding that already '300 interested tenants have registered their interest'. SPH was also on the lookout for recurrent revenue streams and felt this was a great opportunity. The company is confident of achieving similar yields as those achieved by the top suburban malls and aims to open the mall by the first half of 2011.
Mr Chan clarified that the total cost of the mall would come under $3,000 psf of retail net floor area - less than analyst estimates - as the fit-out will be less than $40 million, subject to final negotiations with contractors. CM Domain needs to fit out the mall as the HDB is building only the shell structure. HDB will hand over the structure by next August.
An SPH statement also released yesterday said the offer price was 'arrived at after considering the economic potential of the property based on stabilised operations after rental renewal cycle and enhancing yield over time'. It said that factors such as the expected net lettable area, rental rates and property yields, market positioning and trade and tenant mix were taken into account.
Chesterton Suntec International's research and consultancy director Colin Tan said yesterday the bids by other players in the market show that they were perhaps not as optimistic.
The joint venture's cash-rich partners also likely had allowed it to bid so bullishly, he added.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that it was usual for bidders to bid on a property's potential. 'If someone sees a gem stone in the rough, they could bid bullishly for it as they see the potential,' he said. 'If the mall can achieve 5 to 6 per cent net yield, it's pretty decent.'
He pointed out that the mall does not have immediate competition and will have a large catchment of shoppers from the Holland, Bukit Timah and West Coast areas. The site, which has direct links to the Clementi MRT station, is part of a larger HDB project comprising two 40-storey blocks of flats, a carpark, roof garden and a bus interchange. The mall will occupy basement one, the third and fourth levels and part of the fifth floor. Total gross floor area is about 25,000 sq m while the net floor area is up to 18,000 sq m.
Mr Chan said the mall will be driven by a strong retail team from SPH, NTUC FairPrice and Income - all with a proven track record in suburban malls.
The purchase will be financed through internal funds with gearing for yield enhancement, and will not have an impact on dividends, he said.
SPH shares closed two cents down at $3.77 yesterday.
jcheam@sph.com.sg
Clementi Mall a potential shopping hub
Bullish bid attributed to its ability to generate recurring income: SPH
By Jessica Cheam
CLEMENTI Mall's potential as a busy shopping hub and its ability to generate recurring income were key reasons for the bullish bid from Singapore Press Holdings (SPH) and its joint venture partners.
SPH chief executive Alan Chan told a briefing yesterday that the team behind the winning $541.9 million tender based its bid on rents the mall could achieve beyond the first rental cycle.
Mr Chan said the bidding team was confident of achieving rents of top suburban malls and that the mall will enjoy capital appreciation similar to other retail properties in land-scarce Singapore.
'Due to scarcity of land and growing population, prospect for capital appreciation is positive,' he added.
Times Properties owns 60 per cent of the joint venture CM Domain; NTUC Income and NTUC FairPrice hold 20 per cent stakes. The Housing Board awarded the shopping centre site to it yesterday.
Some analysts were taken aback when bids for the tender of the 99-year leasehold mall at the junction of Commonwealth Avenue West and Clementi Avenue 3 were revealed last week.
CM Domain's bullish offer was nearly 42 per cent above the second-highest bid of $382 million from a joint venture between Keppel Land's Alpha Investment Partners and Guthrie.
SPH shares reacted by sliding 3.9 per cent the next day, but have since regained some ground. The company noted that the value of its Paragon investment in Orchard Road had increased at a compounded annual growth rate of 8 per cent since it was acquired in 1997. Some market watchers at the time had thought that the price paid for the shopping mall in Orchard Road was on the high side.
Mr Chan said that Clementi Mall has 'a unique opportunity to be the anchor attraction' in the area, adding that already '300 interested tenants have registered their interest'. SPH was also on the lookout for recurrent revenue streams and felt this was a great opportunity. The company is confident of achieving similar yields as those achieved by the top suburban malls and aims to open the mall by the first half of 2011.
Mr Chan clarified that the total cost of the mall would come under $3,000 psf of retail net floor area - less than analyst estimates - as the fit-out will be less than $40 million, subject to final negotiations with contractors. CM Domain needs to fit out the mall as the HDB is building only the shell structure. HDB will hand over the structure by next August.
An SPH statement also released yesterday said the offer price was 'arrived at after considering the economic potential of the property based on stabilised operations after rental renewal cycle and enhancing yield over time'. It said that factors such as the expected net lettable area, rental rates and property yields, market positioning and trade and tenant mix were taken into account.
Chesterton Suntec International's research and consultancy director Colin Tan said yesterday the bids by other players in the market show that they were perhaps not as optimistic.
The joint venture's cash-rich partners also likely had allowed it to bid so bullishly, he added.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that it was usual for bidders to bid on a property's potential. 'If someone sees a gem stone in the rough, they could bid bullishly for it as they see the potential,' he said. 'If the mall can achieve 5 to 6 per cent net yield, it's pretty decent.'
He pointed out that the mall does not have immediate competition and will have a large catchment of shoppers from the Holland, Bukit Timah and West Coast areas. The site, which has direct links to the Clementi MRT station, is part of a larger HDB project comprising two 40-storey blocks of flats, a carpark, roof garden and a bus interchange. The mall will occupy basement one, the third and fourth levels and part of the fifth floor. Total gross floor area is about 25,000 sq m while the net floor area is up to 18,000 sq m.
Mr Chan said the mall will be driven by a strong retail team from SPH, NTUC FairPrice and Income - all with a proven track record in suburban malls.
The purchase will be financed through internal funds with gearing for yield enhancement, and will not have an impact on dividends, he said.
SPH shares closed two cents down at $3.77 yesterday.
jcheam@sph.com.sg
TODAY Online : Higher property taxes in 2010
Higher property taxes in 2010
To cushion the rise, Govt to give a one-off rebate of 50%
by Esther Ng 05:55 AM Nov 19, 2009
SINGAPORE - Expect to pay higher property taxes next year, but the rise will come with some cushioning. The Inland Revenue Authority of Singapore (Iras) has announced that it is raising the Annual Value (AV) of Housing Development Board (HDB) flats.
The move comes on the back of rising resale prices and rents.
The tax authority noted that while rents for HDB flats have stabilised after a moderate decline between the end of last year and the middle of this year, rentals have begun to rise since.
"As a result, current values of HDB rentals, as well as HDB resale prices, are still significantly higher than levels observed in 2007. The AVs of HDB flats will therefore have to be adjusted," said Iras.
The last time there was a revision in the AV for HDB flats was in January last year.
Even though HDB rental increased by up to 37 per cent last year relative to 2007, Iras deferred adjusting the AV for the start of this year because of the "uncertainty in market rental trends" in a recession.
To help HDB flat owners cope with the increase in January, the Government will give a one-off property tax rebate of 50 per cent of the tax payable, capped at $120. This applies to all those who live in the flats they own.
To help those in smaller flats, Iras will offset the total tax amount for households which have to pay property tax of $50 or less. This would mean that two-roomers will not need to pay property tax.
"It will help soften the blow," said real estate consultant Nicholas Mak.
He added that owner-occupiers of HDB flats will not be affected that much as "property tax on HDB is lower than (that of) private property".
On average, the increase will in property tax will be $72 for three-room flats, $97 for four-room flats, $107 for five-room flats and $103 for those in executive flats.
For those renting out their HDB flats and who will not receive the rebate, Mr Mak said that with demand still buoyant from the immigrant population, the "increase in rentals could offset the increase in AV". As of March this year, HDB has approved 22,754 applications by owners to rent out their units.
The Government will have other help measures for the "down-and-out", added Member of Parliament Ho Geok Choo, a Government Parliamentary Committee member for national development.
A higher AV may also have implications for inflation, although economists were mixed about the expectations of the impact
"It will be benign because underlying inflation is low," said DBS economist Irvin Seah.
While others expect headline inflation to go up, unlike in Jan 2008 - when the government last raised the AV of public flats - it will not hit the heights of 6.6 per cent then.
"The housing component is a large contributor to the CPI basket and inflation might reach 2 to 4 per cent by the first quarter," said CIMB-GK economist Song Seng Wun, who added, though, that higher food, utility and COE prices could present greater upside pressure.
To cushion the rise, Govt to give a one-off rebate of 50%
by Esther Ng 05:55 AM Nov 19, 2009
SINGAPORE - Expect to pay higher property taxes next year, but the rise will come with some cushioning. The Inland Revenue Authority of Singapore (Iras) has announced that it is raising the Annual Value (AV) of Housing Development Board (HDB) flats.
The move comes on the back of rising resale prices and rents.
The tax authority noted that while rents for HDB flats have stabilised after a moderate decline between the end of last year and the middle of this year, rentals have begun to rise since.
"As a result, current values of HDB rentals, as well as HDB resale prices, are still significantly higher than levels observed in 2007. The AVs of HDB flats will therefore have to be adjusted," said Iras.
The last time there was a revision in the AV for HDB flats was in January last year.
Even though HDB rental increased by up to 37 per cent last year relative to 2007, Iras deferred adjusting the AV for the start of this year because of the "uncertainty in market rental trends" in a recession.
To help HDB flat owners cope with the increase in January, the Government will give a one-off property tax rebate of 50 per cent of the tax payable, capped at $120. This applies to all those who live in the flats they own.
To help those in smaller flats, Iras will offset the total tax amount for households which have to pay property tax of $50 or less. This would mean that two-roomers will not need to pay property tax.
"It will help soften the blow," said real estate consultant Nicholas Mak.
He added that owner-occupiers of HDB flats will not be affected that much as "property tax on HDB is lower than (that of) private property".
On average, the increase will in property tax will be $72 for three-room flats, $97 for four-room flats, $107 for five-room flats and $103 for those in executive flats.
For those renting out their HDB flats and who will not receive the rebate, Mr Mak said that with demand still buoyant from the immigrant population, the "increase in rentals could offset the increase in AV". As of March this year, HDB has approved 22,754 applications by owners to rent out their units.
The Government will have other help measures for the "down-and-out", added Member of Parliament Ho Geok Choo, a Government Parliamentary Committee member for national development.
A higher AV may also have implications for inflation, although economists were mixed about the expectations of the impact
"It will be benign because underlying inflation is low," said DBS economist Irvin Seah.
While others expect headline inflation to go up, unlike in Jan 2008 - when the government last raised the AV of public flats - it will not hit the heights of 6.6 per cent then.
"The housing component is a large contributor to the CPI basket and inflation might reach 2 to 4 per cent by the first quarter," said CIMB-GK economist Song Seng Wun, who added, though, that higher food, utility and COE prices could present greater upside pressure.
TODAY Online : As loans from moneylenders hit $188m, greater safeguards are needed
As loans from moneylenders hit $188m, greater safeguards are needed
by Leong Wee Keat 05:55 AM Nov 19, 2009
SINGAPORE - Earlier this month, Mr Henry Lim chanced upon classified advertisements promising "easy approval" and "low interest rates". He then approached a licensed moneylender for a $10,000 loan to pay his credit card bills.
The moneylender responded hours later with a "$500 loan" - a cash loan of $400 but Mr Lim would have to pay back $500 over five weeks. The interest of the loan worked out to be 25 per cent. "I rejected it. It was worse than borrowing from loan-sharks," said Mr Lim, 50.
While he has yet to lodge a complaint, others have done so.
The Registry of Moneylenders, the Government watchdog, has received 10 complaints against licensed moneylenders so far this year, on par with 2007 and up from the seven complaints last year.
Meanwhile, the total value of the loans are rising sharply: Last year, the industry granted $188.5 million in loans, almost double the $98 million in 2007.
The Registry declined to reveal the nature of the complaints, citing confidential information provided by the complainants. But it said that warnings have been issued against moneylenders who contravened the Moneylenders Act or Rules.
"Errant moneylenders were required to rectify the breaches," assistant registrar Ms Wong Lai Yin told MediaCorp, adding that "in some cases, the licences ... have not been renewed".
Since longstanding restrictions on the industry - including curbs on interest rates and advertising - were lifted in March, there had been a growth in licensed moneylenders - from 169 at the end of 2007 to 197 as of the end of last month, Moneylender's Association of Singapore president David Poh pointed out. As a result, he was not surprised by illegal tactics by "bad hats" within the industry.
"I'm concerned that licenses are given out too easily. We don't know whether if it is a real moneylender or an illegal syndicate posing as one," said Mr Poh, who noted the exorbitant interest rates charged by some licensed moneylenders, which could be as high as 5 per cent per month.
Membership to the association - which has 60 members - is voluntary. While it can rebuke errant members, it cannot take non-members to task.
Licensed, but ...
Since the easing of the Moneylenders Act, some disputes involving licensed moneylenders and borrowers have surfaced in the courts. For instance, in July, Unlimited Finance filed a suit against a couple who had allegedly defaulted on a $40,000 loan.
But the couple countered that the principal loan amount was only $30,000 as Unlimited Finance purportedly took a $10,000 interest payment when the uncrossed cheque was encashed. A hearing has been set for January.
Scarred by his experience, Mr Lim suggested that the authorities conduct "phantom checks" on licensed moneylenders to ensure compliance with the advertisements they put out.
On its part, the Registry of Moneylenders told MediaCorp that it would investigate complaints regarding false or materially misleading advertisement issued or published by a moneylender.
Under the Moneylenders Act, it is an offence if a moneylender does not inform his borrower of the terms and conditions of a loan before granting the loan.
Storeman Eric Lim, who was at a licensed moneylender to borrow $15,000 for home renovation, suggested that such firms provide information in other languages for those who do not have a good grasp of English.
"I only have primary school education and relied on the staff to explain the terms," said the 49-year-old in Mandarin.
But Ms Wong reiterated that moneylenders must convey the information to the borrower in a language or dialect the borrower understands if he did not understand English.
She added that the registry will explore introducing translations of the "notes to borrowers", which are posted on the website of the Insolvency and Public Trustee's Office and the moneylenders' premises.
To raise public awareness, the Moneylender's Association is also planning to conduct seminars and revamp its website with more advice for borrowers.
But the onus remains on those seeking loans to understand what they are getting themselves into.
"If the terms are unfavourable, they have the right to reject the loan and approach another moneylender who offers better terms," said Ms Wong.
by Leong Wee Keat 05:55 AM Nov 19, 2009
SINGAPORE - Earlier this month, Mr Henry Lim chanced upon classified advertisements promising "easy approval" and "low interest rates". He then approached a licensed moneylender for a $10,000 loan to pay his credit card bills.
The moneylender responded hours later with a "$500 loan" - a cash loan of $400 but Mr Lim would have to pay back $500 over five weeks. The interest of the loan worked out to be 25 per cent. "I rejected it. It was worse than borrowing from loan-sharks," said Mr Lim, 50.
While he has yet to lodge a complaint, others have done so.
The Registry of Moneylenders, the Government watchdog, has received 10 complaints against licensed moneylenders so far this year, on par with 2007 and up from the seven complaints last year.
Meanwhile, the total value of the loans are rising sharply: Last year, the industry granted $188.5 million in loans, almost double the $98 million in 2007.
The Registry declined to reveal the nature of the complaints, citing confidential information provided by the complainants. But it said that warnings have been issued against moneylenders who contravened the Moneylenders Act or Rules.
"Errant moneylenders were required to rectify the breaches," assistant registrar Ms Wong Lai Yin told MediaCorp, adding that "in some cases, the licences ... have not been renewed".
Since longstanding restrictions on the industry - including curbs on interest rates and advertising - were lifted in March, there had been a growth in licensed moneylenders - from 169 at the end of 2007 to 197 as of the end of last month, Moneylender's Association of Singapore president David Poh pointed out. As a result, he was not surprised by illegal tactics by "bad hats" within the industry.
"I'm concerned that licenses are given out too easily. We don't know whether if it is a real moneylender or an illegal syndicate posing as one," said Mr Poh, who noted the exorbitant interest rates charged by some licensed moneylenders, which could be as high as 5 per cent per month.
Membership to the association - which has 60 members - is voluntary. While it can rebuke errant members, it cannot take non-members to task.
Licensed, but ...
Since the easing of the Moneylenders Act, some disputes involving licensed moneylenders and borrowers have surfaced in the courts. For instance, in July, Unlimited Finance filed a suit against a couple who had allegedly defaulted on a $40,000 loan.
But the couple countered that the principal loan amount was only $30,000 as Unlimited Finance purportedly took a $10,000 interest payment when the uncrossed cheque was encashed. A hearing has been set for January.
Scarred by his experience, Mr Lim suggested that the authorities conduct "phantom checks" on licensed moneylenders to ensure compliance with the advertisements they put out.
On its part, the Registry of Moneylenders told MediaCorp that it would investigate complaints regarding false or materially misleading advertisement issued or published by a moneylender.
Under the Moneylenders Act, it is an offence if a moneylender does not inform his borrower of the terms and conditions of a loan before granting the loan.
Storeman Eric Lim, who was at a licensed moneylender to borrow $15,000 for home renovation, suggested that such firms provide information in other languages for those who do not have a good grasp of English.
"I only have primary school education and relied on the staff to explain the terms," said the 49-year-old in Mandarin.
But Ms Wong reiterated that moneylenders must convey the information to the borrower in a language or dialect the borrower understands if he did not understand English.
She added that the registry will explore introducing translations of the "notes to borrowers", which are posted on the website of the Insolvency and Public Trustee's Office and the moneylenders' premises.
To raise public awareness, the Moneylender's Association is also planning to conduct seminars and revamp its website with more advice for borrowers.
But the onus remains on those seeking loans to understand what they are getting themselves into.
"If the terms are unfavourable, they have the right to reject the loan and approach another moneylender who offers better terms," said Ms Wong.
Today : Admission prices unveiled
05:55 AM Nov 19, 2009
SINGAPORE - She has been to Disneyland in Hong Kong as well as theme parks in Orlando and Hollywood, and when ticket prices at Singapore's Universal Studios theme park were announced yesterday, Ms Janice Tan could not complain.
"The prices are quite competitive and the rides and attractions sound unique," said the 29-year-old air stewardess.
Resorts World at Sentosa will charge adults a one-time weekday fee of $66 to enjoy the park's 24 attractions and rides. Children under the age of 13 pay $48 while senior citizens pay $32.
On weekends, public holidays and peak periods, a day-pass will cost adults $6 more; and $4 more for children and seniors.
Those who want to skip the queues can pay above and beyond these admission charges to get an express pass - which costs $30 on weekdays; $48 on weekdays during school holidays; and $68 on weekends. A limited number of express passes will be sold each day.
The rates are similar to Hong Kong's Disneyland and about 25 per cent cheaper than Tokyo's Universal Studios theme park.
Some, however, feel that Singaporeans should enjoy lower rates.
Bank analyst Bernard Tay, 26, said: "I'll go and take a look because it's a first in Singapore, but RWS should encourage repeat visits by locals by charging Singaporeans less."
The $6.59 billion integrated resort also unveiled its starting rates for three of the four hotels slated for the first phase of its opening in the next quarter.
Rack rates for the deluxe rooms at Festive Hotel, Hard Rock Hotel and Hotel Michael go for $400, $450, and $500 respectively. A fourth, the all-suite boutique Crockfords Hotel (the former Maxims Tower), will only accept by-invitation guests.
Tour agencies usually charge tourists between 20 and 30 per cent lower than rack rates.
CTC Holidays senior vice-president (marketing and public relations) Alicia Seah told MediaCorp it had received "a lot" of booking enquiries from corporations and groups for RWS since last month.
"There's excitement and we're optimistic it will be an additional attractive offering for visitors coming to Singapore," she said.
Asked if the extra 1,200 hotel rooms opening at the IR would draw guests away from hotels in the city, an industry player, who declined to be named, said: "It's a different target market and, in any case, having more hotel rooms in Singapore is always a good thing."
SINGAPORE - She has been to Disneyland in Hong Kong as well as theme parks in Orlando and Hollywood, and when ticket prices at Singapore's Universal Studios theme park were announced yesterday, Ms Janice Tan could not complain.
"The prices are quite competitive and the rides and attractions sound unique," said the 29-year-old air stewardess.
Resorts World at Sentosa will charge adults a one-time weekday fee of $66 to enjoy the park's 24 attractions and rides. Children under the age of 13 pay $48 while senior citizens pay $32.
On weekends, public holidays and peak periods, a day-pass will cost adults $6 more; and $4 more for children and seniors.
Those who want to skip the queues can pay above and beyond these admission charges to get an express pass - which costs $30 on weekdays; $48 on weekdays during school holidays; and $68 on weekends. A limited number of express passes will be sold each day.
The rates are similar to Hong Kong's Disneyland and about 25 per cent cheaper than Tokyo's Universal Studios theme park.
Some, however, feel that Singaporeans should enjoy lower rates.
Bank analyst Bernard Tay, 26, said: "I'll go and take a look because it's a first in Singapore, but RWS should encourage repeat visits by locals by charging Singaporeans less."
The $6.59 billion integrated resort also unveiled its starting rates for three of the four hotels slated for the first phase of its opening in the next quarter.
Rack rates for the deluxe rooms at Festive Hotel, Hard Rock Hotel and Hotel Michael go for $400, $450, and $500 respectively. A fourth, the all-suite boutique Crockfords Hotel (the former Maxims Tower), will only accept by-invitation guests.
Tour agencies usually charge tourists between 20 and 30 per cent lower than rack rates.
CTC Holidays senior vice-president (marketing and public relations) Alicia Seah told MediaCorp it had received "a lot" of booking enquiries from corporations and groups for RWS since last month.
"There's excitement and we're optimistic it will be an additional attractive offering for visitors coming to Singapore," she said.
Asked if the extra 1,200 hotel rooms opening at the IR would draw guests away from hotels in the city, an industry player, who declined to be named, said: "It's a different target market and, in any case, having more hotel rooms in Singapore is always a good thing."
Today : Now a higher fine
05:55 AM Nov 19, 2009
SINGAPORE - A man who had scoffed at a fine imposed on him by a district court avoided a possible jail term at an appeal hearing yesterday after a judge took into account his health problems and age. The fine was, however, quadrupled.
Lee Kok Leong, the former management committee chairman of the Laguna Park condominium, was hauled to court in January after he was caught pouring glue on the padlocks of two neighbours amid a row between residents in Laguna Park over whether the estate should go en bloc.
Following a hearing in April, Lee, the general manager of a logistics firm, allegedly told reporters that he was not remorseful despite pleading guilty to mischief.
He allegedly said that he could afford the $1,200 fine since he spent $4,000 a night at a karaoke lounge.
Prosecutors, incensed by the remarks, appealed against the fine.
In court yesterday, Deputy Public Prosecutor Lee Jwee Nguan - short of specifically asking Justice Chao Hick Tin to send Lee to prison - asked the court to impose a sentence of "sufficient deterrence to send a message that mocking the court in such a fashion and perpetuating such fraud on the judiciary will not be tolerated".
But Lee's lawyer, Mr Ramesh Tiwary, questioned the necessity of a jail term.
"Everything said and done, does he really deserve to go to prison because he told some reporters 'I can afford it'?" said Mr Tiwary. "On hindsight, he should have just kept quiet."
Mr Tiwary said Lee suffers from depression and a sleeping disorder which requires him to have a machine at bedside to keep his airway open when he sleeps.
Agreeing with the prosecutor that Lee had mocked the court, Justice Chao told Lee: "The statement you gave to the journalists after the sentence at the court below was wholly deplorable because you scoffed at the court."
However, Justice Chao noted Lee's medical condition and the fact that he is a grandfather.
"We are supposed to act more responsibly," said the judge, who ordered Lee to pay a $4,800 fine. "I hope you are truly sorry this time and not leaving this court and muttering something else after I pass the sentence."
A solemn looking Lee told the court he was "truly sorry".
After the hearing, Mr Tiwary stopped Lee from speaking to the media. This time, Lee kept silent.
SINGAPORE - A man who had scoffed at a fine imposed on him by a district court avoided a possible jail term at an appeal hearing yesterday after a judge took into account his health problems and age. The fine was, however, quadrupled.
Lee Kok Leong, the former management committee chairman of the Laguna Park condominium, was hauled to court in January after he was caught pouring glue on the padlocks of two neighbours amid a row between residents in Laguna Park over whether the estate should go en bloc.
Following a hearing in April, Lee, the general manager of a logistics firm, allegedly told reporters that he was not remorseful despite pleading guilty to mischief.
He allegedly said that he could afford the $1,200 fine since he spent $4,000 a night at a karaoke lounge.
Prosecutors, incensed by the remarks, appealed against the fine.
In court yesterday, Deputy Public Prosecutor Lee Jwee Nguan - short of specifically asking Justice Chao Hick Tin to send Lee to prison - asked the court to impose a sentence of "sufficient deterrence to send a message that mocking the court in such a fashion and perpetuating such fraud on the judiciary will not be tolerated".
But Lee's lawyer, Mr Ramesh Tiwary, questioned the necessity of a jail term.
"Everything said and done, does he really deserve to go to prison because he told some reporters 'I can afford it'?" said Mr Tiwary. "On hindsight, he should have just kept quiet."
Mr Tiwary said Lee suffers from depression and a sleeping disorder which requires him to have a machine at bedside to keep his airway open when he sleeps.
Agreeing with the prosecutor that Lee had mocked the court, Justice Chao told Lee: "The statement you gave to the journalists after the sentence at the court below was wholly deplorable because you scoffed at the court."
However, Justice Chao noted Lee's medical condition and the fact that he is a grandfather.
"We are supposed to act more responsibly," said the judge, who ordered Lee to pay a $4,800 fine. "I hope you are truly sorry this time and not leaving this court and muttering something else after I pass the sentence."
A solemn looking Lee told the court he was "truly sorry".
After the hearing, Mr Tiwary stopped Lee from speaking to the media. This time, Lee kept silent.
Wednesday, November 18, 2009
Stiffer rules for green buildings
Nov 18, 2009
Stiffer rules for green buildings
New standards aim to improve indoor air quality and increase energy efficiency
THE building industry has been set more stringent standards for indoor air quality and ventilation which will hopefully reduce health problems among occupants and also increase energy efficiency.
Senior Parliamentary Secretary (Environment and Water Resources) Amy Khor announced two new standards yesterday at a conference on energy and sustainable-development benchmarks, which is part of the Singapore International Energy Week.
One of the new standards, called SS 554, is a benchmark for indoor air quality - for instance, how humid a building should be as well as how much dust and soot should be in the indoor air.
The maximum allowable humidity level is now 65 per cent, down from the previous 70 per cent, to reduce the growth of bacteria and mould.
And the new limit on the allowable concentration of particulate matter is 50 parts per billion (ppb), down from 150 ppb in previous rules.
A second set of guidelines, SS 553, was also laid down for energy efficiency in ventilation and air-conditioning systems, which, according to Spring Singapore, account for more than 60 per cent of a building's energy consumption.
With the new energy standard, businesses will be cutting their energy consumption by 10 per cent to 30 per cent, said a Spring spokesman.
The new standards kick in immediately and are part of the Building and Construction Authority's Green Mark sustainable-building scheme, which aims to make more buildings here environmentally friendly. The authority's goal is to mark 80 per cent of all buildings as green by 2030.
Developer City Developments welcomed the new standards. 'As a green developer and responsible landlord, CDL is committed to providing quality indoor environmental and service standards in an eco-friendly way for our tenants,' its spokesman said. CDL is a Green Mark Champion, chalking up 11 Green Mark awards this year.
The energy-efficiency and environmental standards are part of Singapore's sustainable development blueprint, the Government's plan released in April on how to build and grow the city in an environmentally friendly way.
Spring, the national standards and accreditation body, also announced yesterday that it would be developing energy-efficiency requirements for how electric vehicles are recharged, how data centres with their banks of computer servers are run, and other energy-related industries.
Spring and the Energy Market Authority (EMA) are coming up with standards for some types of solar-power systems, said EMA's deputy chief executive David Tan at the same conference.
These standards are expected to be ready by next year, Mr Tan said, and would ensure the systems are installed and operated safely.
EMA has also put out a handbook on installing solar photovoltaic systems, targeted at contractors, electricians, property owners and other laymen.
Solar energy is the most promising renewable-energy source in Singapore, Mr Tan added, with 1MW of solar photovoltaic capacity already installed and another 4MW in the pipeline.
Stiffer rules for green buildings
New standards aim to improve indoor air quality and increase energy efficiency
THE building industry has been set more stringent standards for indoor air quality and ventilation which will hopefully reduce health problems among occupants and also increase energy efficiency.
Senior Parliamentary Secretary (Environment and Water Resources) Amy Khor announced two new standards yesterday at a conference on energy and sustainable-development benchmarks, which is part of the Singapore International Energy Week.
One of the new standards, called SS 554, is a benchmark for indoor air quality - for instance, how humid a building should be as well as how much dust and soot should be in the indoor air.
The maximum allowable humidity level is now 65 per cent, down from the previous 70 per cent, to reduce the growth of bacteria and mould.
And the new limit on the allowable concentration of particulate matter is 50 parts per billion (ppb), down from 150 ppb in previous rules.
A second set of guidelines, SS 553, was also laid down for energy efficiency in ventilation and air-conditioning systems, which, according to Spring Singapore, account for more than 60 per cent of a building's energy consumption.
With the new energy standard, businesses will be cutting their energy consumption by 10 per cent to 30 per cent, said a Spring spokesman.
The new standards kick in immediately and are part of the Building and Construction Authority's Green Mark sustainable-building scheme, which aims to make more buildings here environmentally friendly. The authority's goal is to mark 80 per cent of all buildings as green by 2030.
Developer City Developments welcomed the new standards. 'As a green developer and responsible landlord, CDL is committed to providing quality indoor environmental and service standards in an eco-friendly way for our tenants,' its spokesman said. CDL is a Green Mark Champion, chalking up 11 Green Mark awards this year.
The energy-efficiency and environmental standards are part of Singapore's sustainable development blueprint, the Government's plan released in April on how to build and grow the city in an environmentally friendly way.
Spring, the national standards and accreditation body, also announced yesterday that it would be developing energy-efficiency requirements for how electric vehicles are recharged, how data centres with their banks of computer servers are run, and other energy-related industries.
Spring and the Energy Market Authority (EMA) are coming up with standards for some types of solar-power systems, said EMA's deputy chief executive David Tan at the same conference.
These standards are expected to be ready by next year, Mr Tan said, and would ensure the systems are installed and operated safely.
EMA has also put out a handbook on installing solar photovoltaic systems, targeted at contractors, electricians, property owners and other laymen.
Solar energy is the most promising renewable-energy source in Singapore, Mr Tan added, with 1MW of solar photovoltaic capacity already installed and another 4MW in the pipeline.
S'pore offices 3rd most expensive in Asia
Business Times - 18 Nov 2009
S'pore offices 3rd most expensive in Asia
Slowdown in fall in rents in Q3 attributed to confidence in economic recovery
By TEH SHI NING
OFFICE space in Singapore was the third most expensive in the region in the third quarter, as the fall in rents slowed significantly, a Colliers International survey has found.
'Among all Asia-Pacific cities, Singapore registered the most distinct deceleration in office rental declines,' said the firm's director of research and advisory, Tay Huey Ying.
She attributed this to growing confidence in economic recovery, which 'lifted the gloom that had been pervading the office property market since Q4 2008'.
The Colliers survey, which covers 25 Asia-Pacific cities quarterly, found Singapore's office rents to be the region's third most expensive in Q3, after Tokyo and Hong Kong.
The average monthly Grade A rent in the Central Business District (CBD) dipped 6.4 per cent quarter-on-quarter in Q3, after a steep 26.1 per cent slide in Q2. The average gross office rental in the CBD in Q3 was $6.31 per square foot.
Enquiries about new space rose in Q3 as some occupiers began searching for larger and better premises.
One of those that has already upgraded is insurer AIG, which relocated from the CBD fringe to 78 Shenton South Tower. And at Mapletree Anson, more than 100,000 sq ft of space has been leased to companies such as AON, QBE and Sumitomo Corporation, which are relocating from Singapore Land Tower, OCBC Centre and Equity Plaza respectively. Elsewhere, Servcorp has committed to one floor at Marina Bay Financial Centre in the CBD for seven years.
The average occupancy rate of prime office space in the CBD fell 2.1 percentage points from a quarter ago to 92.2 per cent in Q3 as several new buildings, including Mapletree Anson and 71 Robinson, were completed.
But there could be further downward pressure on rents as demand for Grade A office space here is unlikely to grow in the short term, while supply is set to rise with the completion of major projects such as Twenty Anson and the Straits Trading Building.
Ms Tay said that she expects office rents to fall as much as 5 per cent in Q4, taking the full-year contraction to 48 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
S'pore offices 3rd most expensive in Asia
Slowdown in fall in rents in Q3 attributed to confidence in economic recovery
By TEH SHI NING
OFFICE space in Singapore was the third most expensive in the region in the third quarter, as the fall in rents slowed significantly, a Colliers International survey has found.
'Among all Asia-Pacific cities, Singapore registered the most distinct deceleration in office rental declines,' said the firm's director of research and advisory, Tay Huey Ying.
She attributed this to growing confidence in economic recovery, which 'lifted the gloom that had been pervading the office property market since Q4 2008'.
The Colliers survey, which covers 25 Asia-Pacific cities quarterly, found Singapore's office rents to be the region's third most expensive in Q3, after Tokyo and Hong Kong.
The average monthly Grade A rent in the Central Business District (CBD) dipped 6.4 per cent quarter-on-quarter in Q3, after a steep 26.1 per cent slide in Q2. The average gross office rental in the CBD in Q3 was $6.31 per square foot.
Enquiries about new space rose in Q3 as some occupiers began searching for larger and better premises.
One of those that has already upgraded is insurer AIG, which relocated from the CBD fringe to 78 Shenton South Tower. And at Mapletree Anson, more than 100,000 sq ft of space has been leased to companies such as AON, QBE and Sumitomo Corporation, which are relocating from Singapore Land Tower, OCBC Centre and Equity Plaza respectively. Elsewhere, Servcorp has committed to one floor at Marina Bay Financial Centre in the CBD for seven years.
The average occupancy rate of prime office space in the CBD fell 2.1 percentage points from a quarter ago to 92.2 per cent in Q3 as several new buildings, including Mapletree Anson and 71 Robinson, were completed.
But there could be further downward pressure on rents as demand for Grade A office space here is unlikely to grow in the short term, while supply is set to rise with the completion of major projects such as Twenty Anson and the Straits Trading Building.
Ms Tay said that she expects office rents to fall as much as 5 per cent in Q4, taking the full-year contraction to 48 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CapitaMalls Asia IPO priced at $2.12 per share
Business Times - 18 Nov 2009
CapitaMalls Asia IPO priced at $2.12 per share
Conservative pricing aimed at ensuring it trades well after market debut
By UMA SHANKARI
CAPITALAND will raise up to $2.8 billion from selling 34.5 per cent of its retail arm CapitaMalls Asia (CMA), which has a portfolio of 86 malls in Singapore, China, Malaysia, Japan and India.
The property group said that it will sell up to about 1.34 billion shares - including 174.78 million over-allotment shares - in CMA at $2.12 apiece in an initial public offering (IPO). This is below the mid-point of an indicative range of $1.98 and $2.39 stated in an e-mail sent to potential investors earlier this month.
The conservative pricing is aimed at ensuring that the IPO trades well after it debuts on the stock market on Nov 25, analysts said.
'We have to leave some value for shareholders who subscribe to CMA,' said CapitaLand chief executive Liew Mun Leong.
The IPO will be Singapore's second biggest since Singapore Telecommunications raised more than $4 billion in 1993.
The $2.12 offer price values CMA, which has a net asset value of $5.3 billion, at about $8.2 billion - or at a price-to-book value of 1.55 times. The offer comprises a placement tranche of 1.059 billion shares, a public offer of 106.7 million shares and an over-allotment option of up to 174.78 million shares.
CapitaLand, on its part, could record a one-time gain of $883 million from the IPO. Part of the proceeds will be paid out as a special dividend to the group's shareholders.
The company will also use some of its proceeds to invest in its residential and service residence business unit. Mr Liew said that he is looking at Singapore, China, Australia and Vietnam for growth for the overall group.
Mr Liew, who will also be the chairman of CMA, said that the company has received strong demand from institutional investors, particularly from the United States and Europe, for the IPO.
'Investors understand that investing in CapitaMalls Asia allows them to participate in the significant growth of the shopping mall sector and the strong Asia consumer trends,' he said.
Analysts agreed. Brandon Lee, an analyst at DMG & Partners Securities, said that CMA should do well because it is a China consumer story, which is attractive to investors. More than half of all malls are in China, which is expected to provide the engine of growth for CMA.
CMA, in particular, is expected to benefit from the low interest rate environment as it gears up to expand and/or make acquisitions after listing. Assuming a net debt-to-equity ratio of 0.3-0.5 times, the new company has the potential to take on debt of about $1.6 billion to $2.6 billion after it is listed, its chief executive Lim Beng Chee said.
CapitaLand also said yesterday that it has injected the remaining $800 million of the net proceeds from its $1.84 billion rights issue into CMA. Following this injection, all the net proceeds of the rights issue from early this year have been fully disbursed, the company said.
CapitaLand lost 10 cents, or 2.4 per cent, to close at $4.13 yesterday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CapitaMalls Asia IPO priced at $2.12 per share
Conservative pricing aimed at ensuring it trades well after market debut
By UMA SHANKARI
CAPITALAND will raise up to $2.8 billion from selling 34.5 per cent of its retail arm CapitaMalls Asia (CMA), which has a portfolio of 86 malls in Singapore, China, Malaysia, Japan and India.
The property group said that it will sell up to about 1.34 billion shares - including 174.78 million over-allotment shares - in CMA at $2.12 apiece in an initial public offering (IPO). This is below the mid-point of an indicative range of $1.98 and $2.39 stated in an e-mail sent to potential investors earlier this month.
The conservative pricing is aimed at ensuring that the IPO trades well after it debuts on the stock market on Nov 25, analysts said.
'We have to leave some value for shareholders who subscribe to CMA,' said CapitaLand chief executive Liew Mun Leong.
The IPO will be Singapore's second biggest since Singapore Telecommunications raised more than $4 billion in 1993.
The $2.12 offer price values CMA, which has a net asset value of $5.3 billion, at about $8.2 billion - or at a price-to-book value of 1.55 times. The offer comprises a placement tranche of 1.059 billion shares, a public offer of 106.7 million shares and an over-allotment option of up to 174.78 million shares.
CapitaLand, on its part, could record a one-time gain of $883 million from the IPO. Part of the proceeds will be paid out as a special dividend to the group's shareholders.
The company will also use some of its proceeds to invest in its residential and service residence business unit. Mr Liew said that he is looking at Singapore, China, Australia and Vietnam for growth for the overall group.
Mr Liew, who will also be the chairman of CMA, said that the company has received strong demand from institutional investors, particularly from the United States and Europe, for the IPO.
'Investors understand that investing in CapitaMalls Asia allows them to participate in the significant growth of the shopping mall sector and the strong Asia consumer trends,' he said.
Analysts agreed. Brandon Lee, an analyst at DMG & Partners Securities, said that CMA should do well because it is a China consumer story, which is attractive to investors. More than half of all malls are in China, which is expected to provide the engine of growth for CMA.
CMA, in particular, is expected to benefit from the low interest rate environment as it gears up to expand and/or make acquisitions after listing. Assuming a net debt-to-equity ratio of 0.3-0.5 times, the new company has the potential to take on debt of about $1.6 billion to $2.6 billion after it is listed, its chief executive Lim Beng Chee said.
CapitaLand also said yesterday that it has injected the remaining $800 million of the net proceeds from its $1.84 billion rights issue into CMA. Following this injection, all the net proceeds of the rights issue from early this year have been fully disbursed, the company said.
CapitaLand lost 10 cents, or 2.4 per cent, to close at $4.13 yesterday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
SPH explains thinking behind mall bid
Business Times - 18 Nov 2009
SPH explains thinking behind mall bid
Winning bidders looking ahead at rentals upon lease renewal
(SINGAPORE) Even as the Housing & Development Board yesterday awarded Clementi Mall to a Singapore Press Holdings-led consortium, members of SPH's top management sought to explain the rationale for the bid price, which stockbroking analysts and market watchers have said was too high.
The consortium members are taking a long-term position on the investment and looking at forward rentals at the next lease renewal cycle - instead of just immediate returns when the mall begins operating in the first half of 2011, SPH's management said at media and analyst briefings yesterday.
It also revealed that more than 300 interested parties have registered interest to potentially rent space at the mall.
And the projected fit-out cost will be under $40 million - lower than the $40-50 million that some analysts had assumed.
HDB is building only the mall's core structure and facade, which it is scheduled to hand over in August next year to the joint venture, which will then finish the project and have naming rights for the property.
NTUC FairPrice, which has a 20 per cent stake in the venture, will lease 20,000-25,000 square feet for a supermarket at basement one of the mall. It may also take up additional space for a convenience store.
NTUC Income, which also has a 20 per cent stake, and SPH, the majority shareholder with 60 per cent, may also take up space in the property. The latter is likely to be for a kiosk selling newspapers and magazines.
Clementi Mall - the working name for the 99-year leasehold property - will have an air-conditioned bus interchange on the first level. The mall's third level will be linked to Clementi MRT Station.
SPH's management yesterday explained that the venture's bid valuation was based on stabilised operations after the mall's rental renewal cycle, and enhancing yield over time.
'In other words, when we do our calculations, we are not using the rentals when we start operations. We are actually using after rental renewal cycle, whether it is after three years or six years,' said SPH chief executive officer Alan Chan.
Had SPH used the typical strategy of real estate investment trusts (Reits), which assume say a 5-6 per cent return based on rents when the mall starts operating, it would have led to bids in the $300 million range - where four of the six bids came in for the mall at the close of HDB's tender last Tuesday.
'When you are a Reit, you have to ensure immediate returns. Whereas we are long-term players and we are prepared to place our bets based on forward rentals at the next cycle,' Mr Chan said.
'This is the challenge the bidder is always confronted with: Do you use standard metrics or do you think out of the box?'
The venture hopes to achieve the rentals that are obtained by the best suburban malls in Singapore.
Its winning bid of $541.898 million was the highest of six offers that HDB received for the mall. The winning bid is nearly 42 per cent more than the next highest offer of $382 million.
Earlier, analysts had forecast a valuation for the property - comprising the bid price as well as assuming fit-out costs of $40-50 million - of about $3,000 per square foot of net floor area of retail space.
But SPH management yesterday said that the projected fit-out costs would be under $40 million and hence the valuation would be 'somewhere south of $3,000 psf'.
Along prime Orchard Road, ION Orchard was valued at $3,747 psf of net lettable area as at June 30 this year.
SPH said that it also worked in prospects for potential capital appreciation in the bid price, pointing to its successful track record with Paragon along Orchard Road.
Its valuation has increased from just under $800 million in 1997 to almost $2 billion today. Based on the current market price,
Paragon's yield is well above 4 per cent. The return on equity is above 10 per cent - a result that was achieved over the years, not overnight.
Mr Chan also sought to allay concerns in some quarters that SPH's investment in Clementi Mall could clip dividend payouts to shareholders.
Firstly, SPH's stake in the venture is only 60 per cent - and for which it has enough internal funds to pay, with the rest to be funded through borrowings.
'Secondly, our dividend track record is always a function of recurring earnings. So this investment is not going to affect the dividend track record.'
And when stabilised rental income starts streaming in from Clementi Mall, SPH's recurring earnings will increase, he added.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
SPH explains thinking behind mall bid
Winning bidders looking ahead at rentals upon lease renewal
(SINGAPORE) Even as the Housing & Development Board yesterday awarded Clementi Mall to a Singapore Press Holdings-led consortium, members of SPH's top management sought to explain the rationale for the bid price, which stockbroking analysts and market watchers have said was too high.
The consortium members are taking a long-term position on the investment and looking at forward rentals at the next lease renewal cycle - instead of just immediate returns when the mall begins operating in the first half of 2011, SPH's management said at media and analyst briefings yesterday.
It also revealed that more than 300 interested parties have registered interest to potentially rent space at the mall.
And the projected fit-out cost will be under $40 million - lower than the $40-50 million that some analysts had assumed.
HDB is building only the mall's core structure and facade, which it is scheduled to hand over in August next year to the joint venture, which will then finish the project and have naming rights for the property.
NTUC FairPrice, which has a 20 per cent stake in the venture, will lease 20,000-25,000 square feet for a supermarket at basement one of the mall. It may also take up additional space for a convenience store.
NTUC Income, which also has a 20 per cent stake, and SPH, the majority shareholder with 60 per cent, may also take up space in the property. The latter is likely to be for a kiosk selling newspapers and magazines.
Clementi Mall - the working name for the 99-year leasehold property - will have an air-conditioned bus interchange on the first level. The mall's third level will be linked to Clementi MRT Station.
SPH's management yesterday explained that the venture's bid valuation was based on stabilised operations after the mall's rental renewal cycle, and enhancing yield over time.
'In other words, when we do our calculations, we are not using the rentals when we start operations. We are actually using after rental renewal cycle, whether it is after three years or six years,' said SPH chief executive officer Alan Chan.
Had SPH used the typical strategy of real estate investment trusts (Reits), which assume say a 5-6 per cent return based on rents when the mall starts operating, it would have led to bids in the $300 million range - where four of the six bids came in for the mall at the close of HDB's tender last Tuesday.
'When you are a Reit, you have to ensure immediate returns. Whereas we are long-term players and we are prepared to place our bets based on forward rentals at the next cycle,' Mr Chan said.
'This is the challenge the bidder is always confronted with: Do you use standard metrics or do you think out of the box?'
The venture hopes to achieve the rentals that are obtained by the best suburban malls in Singapore.
Its winning bid of $541.898 million was the highest of six offers that HDB received for the mall. The winning bid is nearly 42 per cent more than the next highest offer of $382 million.
Earlier, analysts had forecast a valuation for the property - comprising the bid price as well as assuming fit-out costs of $40-50 million - of about $3,000 per square foot of net floor area of retail space.
But SPH management yesterday said that the projected fit-out costs would be under $40 million and hence the valuation would be 'somewhere south of $3,000 psf'.
Along prime Orchard Road, ION Orchard was valued at $3,747 psf of net lettable area as at June 30 this year.
SPH said that it also worked in prospects for potential capital appreciation in the bid price, pointing to its successful track record with Paragon along Orchard Road.
Its valuation has increased from just under $800 million in 1997 to almost $2 billion today. Based on the current market price,
Paragon's yield is well above 4 per cent. The return on equity is above 10 per cent - a result that was achieved over the years, not overnight.
Mr Chan also sought to allay concerns in some quarters that SPH's investment in Clementi Mall could clip dividend payouts to shareholders.
Firstly, SPH's stake in the venture is only 60 per cent - and for which it has enough internal funds to pay, with the rest to be funded through borrowings.
'Secondly, our dividend track record is always a function of recurring earnings. So this investment is not going to affect the dividend track record.'
And when stabilised rental income starts streaming in from Clementi Mall, SPH's recurring earnings will increase, he added.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
New sites will ensure sufficient housing
Nov 17, 2009 - PropertyGuru.com.sg
The Singapore government assured last week that there is sufficient residential supply in the country, so home buyers need not rush. Following this announcement was the government’s decision to sell eight residential sites in the first half of 2010.
The eight sites are located in non-city areas such as Tampines, Simei and Choa Chu Kang.
The government has several reserve lists for residential sites available for sale, but only if property developers commit to a minimum bid acceptable by the government.
The supply comes from the government’s twice-yearly land sales programme, giving home buyers more choices.
HDB upgraders for instance, will be happy to learn that the latest sales programme in the first-half of 2010 will see a slow progress on suburban residential sites.
Home owners living in the vicinity of the eight sites can look forward to new projects in the next few years and if the economy continues to improve, they can also expect an increase in the value of their homes when new projects are launched for sale.
“Generally, when a new project is launched, it will have a bearing on the developments in the vicinity,” said Ms Tay Huey Ying, research and advisory director for Colliers International.
“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,” she added.
Nicholas Mak, a Ngee Ann Polytechnic lecturer explained, “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.”
He added, “The launch price does give some support to the asking prices of individual sellers in the area.”
The largest site is located in Tampines, which can hold a total of 605 units.
The 200-unit residential site in Choa Chu Kang Road is situated above the Ten Mile Junction and Bukit Panjang LRT Depot, near the upcoming Bukit Panjang MRT station.
The residential site near the Sembawang Shopping Centre can also hold 290 units.
“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 Leonard Tay, director of CBRE Research.
On the reserve list, the Bartley Road site, near the Bartley MRT station, will have 500 residential units while the Stirling Road site, near the Queenstown MRT station, will have 405 units.
In addition, the Singapore government is ensuring the availability of 10,550 private residential units—the largest residential supply since 2001.
However, the effect of these sites will not be felt immediately as it would take 1 ½ years before the eight projects can be launched, Mr. Mak said.
The Singapore government assured last week that there is sufficient residential supply in the country, so home buyers need not rush. Following this announcement was the government’s decision to sell eight residential sites in the first half of 2010.
The eight sites are located in non-city areas such as Tampines, Simei and Choa Chu Kang.
The government has several reserve lists for residential sites available for sale, but only if property developers commit to a minimum bid acceptable by the government.
The supply comes from the government’s twice-yearly land sales programme, giving home buyers more choices.
HDB upgraders for instance, will be happy to learn that the latest sales programme in the first-half of 2010 will see a slow progress on suburban residential sites.
Home owners living in the vicinity of the eight sites can look forward to new projects in the next few years and if the economy continues to improve, they can also expect an increase in the value of their homes when new projects are launched for sale.
“Generally, when a new project is launched, it will have a bearing on the developments in the vicinity,” said Ms Tay Huey Ying, research and advisory director for Colliers International.
“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,” she added.
Nicholas Mak, a Ngee Ann Polytechnic lecturer explained, “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.”
He added, “The launch price does give some support to the asking prices of individual sellers in the area.”
The largest site is located in Tampines, which can hold a total of 605 units.
The 200-unit residential site in Choa Chu Kang Road is situated above the Ten Mile Junction and Bukit Panjang LRT Depot, near the upcoming Bukit Panjang MRT station.
The residential site near the Sembawang Shopping Centre can also hold 290 units.
“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 Leonard Tay, director of CBRE Research.
On the reserve list, the Bartley Road site, near the Bartley MRT station, will have 500 residential units while the Stirling Road site, near the Queenstown MRT station, will have 405 units.
In addition, the Singapore government is ensuring the availability of 10,550 private residential units—the largest residential supply since 2001.
However, the effect of these sites will not be felt immediately as it would take 1 ½ years before the eight projects can be launched, Mr. Mak said.
TODAYS : IRs not a threat
'IRs not a threat'
by Neo Chai Chin 05:55 AM Nov 18, 2009
Whether or not the integrated resorts will pose a serious threat to them, Orchard Road retailers are not "awfully worried". So said Ms Lau Chuen Wei, executive director of the Singapore Retailers Association.
That some of them - from luxury labels to local brands - will open outlets at the Marina Bay Sands (MBS) is a sign that "there is space in the retail landscape", she told MediaCorp.
Also, Orchard Road and MBS cater to different crowds - the former for Singaporeans looking for a hangout, and the latter to a "captive audience" already at the resort, she said.
Resorts World at Sentosa (RWS) has been reported as saying it will offer a "niche yet refreshing retail experience" with offerings like Universal Studios Singapore theme park merchandise.
But Ms Lau said the upcoming pedestrian walkway linking Sentosa with Vivocity Promenade indicates that RWS "are quite happy for their visitors to go across the waters to Vivocity
by Neo Chai Chin 05:55 AM Nov 18, 2009
Whether or not the integrated resorts will pose a serious threat to them, Orchard Road retailers are not "awfully worried". So said Ms Lau Chuen Wei, executive director of the Singapore Retailers Association.
That some of them - from luxury labels to local brands - will open outlets at the Marina Bay Sands (MBS) is a sign that "there is space in the retail landscape", she told MediaCorp.
Also, Orchard Road and MBS cater to different crowds - the former for Singaporeans looking for a hangout, and the latter to a "captive audience" already at the resort, she said.
Resorts World at Sentosa (RWS) has been reported as saying it will offer a "niche yet refreshing retail experience" with offerings like Universal Studios Singapore theme park merchandise.
But Ms Lau said the upcoming pedestrian walkway linking Sentosa with Vivocity Promenade indicates that RWS "are quite happy for their visitors to go across the waters to Vivocity
ST : Capitaland to raise $2.4b
Nov 17, 2009
Capitaland to raise $2.4b
By Joyce Teo PROPERTY CORRESPONDENT
PROPERTY giant Capitaland is spinning off 30 per cent of its stake in CapitaMalls Asia (CMA) to raise about $2.4 billion in one of the biggest listings ever staged in Singapore.
The initial public offering of the huge Asian mall owner, developer and manager opens on Wednesday.
Retail investors will be able to buy into the IPO with shares priced at $2.12 each. The offer closes at noon on Nov 23 with trading expected to start around Nov 25.
The price - below the midpoint of an indicative range of $1.98-$2.39 a share - translates to an implied price-to-book value of 1.55 times.
It is 'rich enough to give CapitaLand a big windfall but yet a fair price to investors', said CapitaLand chief financial officer Olivier Lim.
CapitaLand could reap up to $883 million in pre-tax earnings after the offering, assuming its overallotment is exercised in full. It may recommend a special dividend after the CMA listing, which will still trails the SingTel float in 1993, which raised more than $4 billion.
Capitaland to raise $2.4b
By Joyce Teo PROPERTY CORRESPONDENT
PROPERTY giant Capitaland is spinning off 30 per cent of its stake in CapitaMalls Asia (CMA) to raise about $2.4 billion in one of the biggest listings ever staged in Singapore.
The initial public offering of the huge Asian mall owner, developer and manager opens on Wednesday.
Retail investors will be able to buy into the IPO with shares priced at $2.12 each. The offer closes at noon on Nov 23 with trading expected to start around Nov 25.
The price - below the midpoint of an indicative range of $1.98-$2.39 a share - translates to an implied price-to-book value of 1.55 times.
It is 'rich enough to give CapitaLand a big windfall but yet a fair price to investors', said CapitaLand chief financial officer Olivier Lim.
CapitaLand could reap up to $883 million in pre-tax earnings after the offering, assuming its overallotment is exercised in full. It may recommend a special dividend after the CMA listing, which will still trails the SingTel float in 1993, which raised more than $4 billion.
Tuesday, November 17, 2009
Higher, 95% of flats reserved for first-timers
Nov 17, 2009
Higher, 95% of flats reserved for first-timers
HDB increases their chances of getting a home
By Jessica Cheam
THE Housing Board (HDB) has moved to address mounting concern about inadequate flat supply by upping the first-timer's success rate for getting a flat and by launching more than 1,000 homes for sale in Punggol.
With immediate effect, the Board has increased the number of flats reserved for first-timers at its sales launches from the current level of 90per cent to 95 per cent.
This applies to both its build-to-order (BTO) scheme - which provides the bulk of HDB flats and where units are built when a certain demand is reached - and the sale of balance flat (SBF) exercise, which typically offers ready flats across the island.
Flats offered in the latter exercise are highly popular given that buyers do not have to wait for homes to be built and are given access to a wide variety of locations.
HDB said yesterday its move was designed to 'give greater priority to first-timers, who generally have more urgent housing needs than second-timers'.
'HDB will monitor the demand situation closely and make adjustments where necessary,' it added.
The Board first introduced this scheme for first-timers in August 2007 to prevent them from being crowded out of the then-booming market.
Prior to that, there was no quota and first-timers were balloted along with everyone else.
The scheme also gave a leg-up to applicants who had tried and failed in four or more ballots by favouring them in BTO project ballots. (see below)
Yesterday's move by the HDB is a response to those first-time home buyers who fear missing out on the chance to buy a property because of historically high resale flat prices - they rose 3.8per cent in the first nine months of the year - and a perceived supply shortage.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak, an industry observer, believes the HDB is likely responding to feedback that young couples cannot afford resale flat prices.
'In this case, they are reserving so many flats for first-timers so they can ensure affordability,' said Mr Mak, who added that the HDB's decision might help shift some demand away from the resale market to demand for new flats directly from HDB.
PropNex chief executive Mohamed Ismail does not see the HDB's five-point increase having a major impact on the market, but said it clearly demonstrated that first-timers and not upgraders were being given priority for new flats.
'It is a clear signal that the current concern is to provide a roof for all young couples,' he said.
The HDB yesterday unveiled 1,078 new standard flats for sale at Punggol Sails and Punggol Ripples. The units range from studio apartments to five-room flats and prices range from $65,000 to $377,000.
Punggol Sails offers 279 three-room, 218 four-room and 109 five-room flats, while Punggol Ripples has 130 studio apartments, 157 three-roomers and 185 four-roomers for sale.
Both projects are located along Punggol field, are served by the Punggol MRT and LRT stations, and are near the future Punggol Town Centre.
PropNex's Mr Ismail noted that the typical selling price of the new flats was 10 to 20per cent cheaper than those of comparative resale units in the area.
With the vision for Punggol as Singapore's waterfront town starting to become a reality, flats in the area will become increasingly popular, said Mr Ismail, who expects the projects to be five times over-subscribed.
Home buyers need to submit their applications before the closing date of Nov30.
Including yesterday's sale, HDB has offered 10,800 flats for sale this year. It said that 2,700 more flats will be offered next month in Bukit Panjang, Sembawang and Dawson.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
A leg-up for young couples
YOUNG couples now have a greater chance of securing a flat, with the Housing Board setting aside 95per cent of all its sales exercise - BTO and sales of balance flats - for first-timers.
The HDB's priority scheme was first introduced in August 2007 and, prior to that, no quota existed so first-timers were balloted along with everyone else.
The revised scheme additionally gives a leg-up to applicants who have tried and failed in four or more ballots.
On their fifth attempt they will be accorded one extra chance, with their name being entered for the ballot one more time.
For their sixth try, they get entered two more times, and so on. However, this only applies to BTO projects in non-mature areas.
Couples already receive a helping hand under the Married Child Priority Scheme, which gives them double the chance during the balloting.
The vision for Punggol as Singapore's waterfront town is becoming a reality and flats will become increasingly popular, it is said. -- ARTIST'S IMPRESSION: HDB
Higher, 95% of flats reserved for first-timers
HDB increases their chances of getting a home
By Jessica Cheam
THE Housing Board (HDB) has moved to address mounting concern about inadequate flat supply by upping the first-timer's success rate for getting a flat and by launching more than 1,000 homes for sale in Punggol.
With immediate effect, the Board has increased the number of flats reserved for first-timers at its sales launches from the current level of 90per cent to 95 per cent.
This applies to both its build-to-order (BTO) scheme - which provides the bulk of HDB flats and where units are built when a certain demand is reached - and the sale of balance flat (SBF) exercise, which typically offers ready flats across the island.
Flats offered in the latter exercise are highly popular given that buyers do not have to wait for homes to be built and are given access to a wide variety of locations.
HDB said yesterday its move was designed to 'give greater priority to first-timers, who generally have more urgent housing needs than second-timers'.
'HDB will monitor the demand situation closely and make adjustments where necessary,' it added.
The Board first introduced this scheme for first-timers in August 2007 to prevent them from being crowded out of the then-booming market.
Prior to that, there was no quota and first-timers were balloted along with everyone else.
The scheme also gave a leg-up to applicants who had tried and failed in four or more ballots by favouring them in BTO project ballots. (see below)
Yesterday's move by the HDB is a response to those first-time home buyers who fear missing out on the chance to buy a property because of historically high resale flat prices - they rose 3.8per cent in the first nine months of the year - and a perceived supply shortage.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak, an industry observer, believes the HDB is likely responding to feedback that young couples cannot afford resale flat prices.
'In this case, they are reserving so many flats for first-timers so they can ensure affordability,' said Mr Mak, who added that the HDB's decision might help shift some demand away from the resale market to demand for new flats directly from HDB.
PropNex chief executive Mohamed Ismail does not see the HDB's five-point increase having a major impact on the market, but said it clearly demonstrated that first-timers and not upgraders were being given priority for new flats.
'It is a clear signal that the current concern is to provide a roof for all young couples,' he said.
The HDB yesterday unveiled 1,078 new standard flats for sale at Punggol Sails and Punggol Ripples. The units range from studio apartments to five-room flats and prices range from $65,000 to $377,000.
Punggol Sails offers 279 three-room, 218 four-room and 109 five-room flats, while Punggol Ripples has 130 studio apartments, 157 three-roomers and 185 four-roomers for sale.
Both projects are located along Punggol field, are served by the Punggol MRT and LRT stations, and are near the future Punggol Town Centre.
PropNex's Mr Ismail noted that the typical selling price of the new flats was 10 to 20per cent cheaper than those of comparative resale units in the area.
With the vision for Punggol as Singapore's waterfront town starting to become a reality, flats in the area will become increasingly popular, said Mr Ismail, who expects the projects to be five times over-subscribed.
Home buyers need to submit their applications before the closing date of Nov30.
Including yesterday's sale, HDB has offered 10,800 flats for sale this year. It said that 2,700 more flats will be offered next month in Bukit Panjang, Sembawang and Dawson.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
A leg-up for young couples
YOUNG couples now have a greater chance of securing a flat, with the Housing Board setting aside 95per cent of all its sales exercise - BTO and sales of balance flats - for first-timers.
The HDB's priority scheme was first introduced in August 2007 and, prior to that, no quota existed so first-timers were balloted along with everyone else.
The revised scheme additionally gives a leg-up to applicants who have tried and failed in four or more ballots.
On their fifth attempt they will be accorded one extra chance, with their name being entered for the ballot one more time.
For their sixth try, they get entered two more times, and so on. However, this only applies to BTO projects in non-mature areas.
Couples already receive a helping hand under the Married Child Priority Scheme, which gives them double the chance during the balloting.
The vision for Punggol as Singapore's waterfront town is becoming a reality and flats will become increasingly popular, it is said. -- ARTIST'S IMPRESSION: HDB
Sales of new private homes down again
Nov 17, 2009
Sales of new private homes down again
Number of units launched, sold in Oct lowest since Jan; Govt's cooling measures taking effect
By Joyce Teo
SALES of new private homes plunged last month to just 811 units - well down on September's numbers and a clear sign that the Government's cooling measures have taken hold.
The decline also marks the third straight monthly contraction since August.
October's sales were down from the 1,143 units sold in September and 1,805 in August, although they were still about six times the sales done in the same month last year, according to the Urban Redevelopment Authority yesterday.
'Although the number of units launched and sold in October was the lowest since January, it should not be treated with alarm as it reflects that the property market is subsiding into a more sustainable level of activity,' said DTZ's head of Southeast Asia research Chua Chor Hoon.
October's sales came close to the average monthly take-up of 845 units since June 2007, she said.
Property experts were already expecting the slump as sales at launches started to slow down not long after the Government introduced measures to calm the market in mid-September.
Price resistance has also set in, particularly for mass market homes, they say.
Developers launched only 566 units last month, a far cry from the 1,413 launched in September.
About 60 per cent of the launches were prime projects, which accounted for slightly more than one-third of the sales. There were no new major mass market launches.
PropNex chief executive Mohamed Ismail believes the pent-up demand that accumulated during the financial crisis has largely been met. He noted that 66 per cent of the units sold last month were mid-range homes that went for between $1,000 psf and $1,999 psf - a result of developers selling smaller units at higher prices per square foot.
One of last month's best sellers was Far East Organization's 278-unit Cyan in Bukit Timah Road. It launched 90 units and sold 81 at a median price of $1,821 per sq ft.
Last month's figure brings sales so far this year to 13,639 units, just 8 per cent short of the record 14,811 units sold in 2007. Total sales of new homes will likely surpass the 2007 total, experts say.
Jones Lang LaSalle said the Government's measures to curb speculative behaviour seem to have taken effect, going by sub-sales, which fell to 7.9 per cent of total sales last month from the 12 per cent recorded in September.
Still, the low level of new launches last month suggests that developers were more affected by the measures than buyers, say experts.
'While one would expect developers to capitalise on the buying trend, they were surprisingly more cautious and anticipated a bigger demand pull-back,' said Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang.
It suggests the market could be 'closing in on its peak as developers are no longer as confident of the sustainability of the current market movement', he said.
New home sales are expected to slow this month and next to between 600 and 700 units. Dr Chua expects sales of non- landed homes to contract by a further 10 per cent to 20 per cent.
But if the rise in house prices continues to surge ahead of economic fundamentals, tougher anti-speculative measures could be introduced. These could include a capital gains tax, perhaps for those who flip within a two-year period of the first purchase, added Dr Chua. Ngee Ann Polytechnic lecturer Nicholas Mak believes the next wave of buying may come when the two integrated resorts open next year.
Home prices, said CBRE Research executive director Li Hiaw Ho, are likely to 'hold firm at current levels', though the imminent launch of Marina Bay Suites will give a good indication of how the prime and high-end segment will perform.
joyceteo@sph.com.sg
An artist's impression of Lincoln Suites in Khiang Guan Avenue in the Newton area.
Sales of new private homes down again
Number of units launched, sold in Oct lowest since Jan; Govt's cooling measures taking effect
By Joyce Teo
SALES of new private homes plunged last month to just 811 units - well down on September's numbers and a clear sign that the Government's cooling measures have taken hold.
The decline also marks the third straight monthly contraction since August.
October's sales were down from the 1,143 units sold in September and 1,805 in August, although they were still about six times the sales done in the same month last year, according to the Urban Redevelopment Authority yesterday.
'Although the number of units launched and sold in October was the lowest since January, it should not be treated with alarm as it reflects that the property market is subsiding into a more sustainable level of activity,' said DTZ's head of Southeast Asia research Chua Chor Hoon.
October's sales came close to the average monthly take-up of 845 units since June 2007, she said.
Property experts were already expecting the slump as sales at launches started to slow down not long after the Government introduced measures to calm the market in mid-September.
Price resistance has also set in, particularly for mass market homes, they say.
Developers launched only 566 units last month, a far cry from the 1,413 launched in September.
About 60 per cent of the launches were prime projects, which accounted for slightly more than one-third of the sales. There were no new major mass market launches.
PropNex chief executive Mohamed Ismail believes the pent-up demand that accumulated during the financial crisis has largely been met. He noted that 66 per cent of the units sold last month were mid-range homes that went for between $1,000 psf and $1,999 psf - a result of developers selling smaller units at higher prices per square foot.
One of last month's best sellers was Far East Organization's 278-unit Cyan in Bukit Timah Road. It launched 90 units and sold 81 at a median price of $1,821 per sq ft.
Last month's figure brings sales so far this year to 13,639 units, just 8 per cent short of the record 14,811 units sold in 2007. Total sales of new homes will likely surpass the 2007 total, experts say.
Jones Lang LaSalle said the Government's measures to curb speculative behaviour seem to have taken effect, going by sub-sales, which fell to 7.9 per cent of total sales last month from the 12 per cent recorded in September.
Still, the low level of new launches last month suggests that developers were more affected by the measures than buyers, say experts.
'While one would expect developers to capitalise on the buying trend, they were surprisingly more cautious and anticipated a bigger demand pull-back,' said Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang.
It suggests the market could be 'closing in on its peak as developers are no longer as confident of the sustainability of the current market movement', he said.
New home sales are expected to slow this month and next to between 600 and 700 units. Dr Chua expects sales of non- landed homes to contract by a further 10 per cent to 20 per cent.
But if the rise in house prices continues to surge ahead of economic fundamentals, tougher anti-speculative measures could be introduced. These could include a capital gains tax, perhaps for those who flip within a two-year period of the first purchase, added Dr Chua. Ngee Ann Polytechnic lecturer Nicholas Mak believes the next wave of buying may come when the two integrated resorts open next year.
Home prices, said CBRE Research executive director Li Hiaw Ho, are likely to 'hold firm at current levels', though the imminent launch of Marina Bay Suites will give a good indication of how the prime and high-end segment will perform.
joyceteo@sph.com.sg
An artist's impression of Lincoln Suites in Khiang Guan Avenue in the Newton area.
Property agent jailed for acting as fall guy
Nov 17, 2009
Property agent jailed for acting as fall guy
A PROPERTY agent who took the rap for an unlicensed driver's offence of running a red light was jailed for three months yesterday.
Leung Man Kwan, 34, accepted $1,000 to take the fall for Ms Evangeline Tay Su Ann, 21, who took a Bulgarian business manager's car out for a spin without his consent while he was abroad in January last year.
Leung is appealing against her sentence.
Ms Tay, who had been staying in the house belonging to the owner of the car, skipped the lights in Lornie Road. She knew she had been caught as she saw the camera flash go off.
Worried because she was driving without a licence and without the permission of the car's owner, she turned to friends for help.
One of them, former police officer Kelvin Choo Yew Beng, 38, secured Leung's complicity for $1,000.
When the car's owner received a summons asking for the driver's particulars, he asked Ms Tay about the offence. She gave him Leung's particulars.
Deputy Public Prosecutor Andrew Tan said one reason Leung agreed to take the fall was her own driving record: At the time, she had pending drink driving-related charges, so the extra demerit point for running a red light would have been of little consequence to her.
In November last year, she was jailed for two months, fined $4,800 and banned from driving for 18 months for hurting a public servant, drink driving, failing to give a breath specimen and disorderly behaviour.
Neither Ms Tay nor Mr Choo have been charged over their roles in the bribery.
It is not known whether Ms Tay has been charged over her traffic offences.
Leung could have been jailed for up to seven years and fined for subverting the course of justice.
Property agent jailed for acting as fall guy
A PROPERTY agent who took the rap for an unlicensed driver's offence of running a red light was jailed for three months yesterday.
Leung Man Kwan, 34, accepted $1,000 to take the fall for Ms Evangeline Tay Su Ann, 21, who took a Bulgarian business manager's car out for a spin without his consent while he was abroad in January last year.
Leung is appealing against her sentence.
Ms Tay, who had been staying in the house belonging to the owner of the car, skipped the lights in Lornie Road. She knew she had been caught as she saw the camera flash go off.
Worried because she was driving without a licence and without the permission of the car's owner, she turned to friends for help.
One of them, former police officer Kelvin Choo Yew Beng, 38, secured Leung's complicity for $1,000.
When the car's owner received a summons asking for the driver's particulars, he asked Ms Tay about the offence. She gave him Leung's particulars.
Deputy Public Prosecutor Andrew Tan said one reason Leung agreed to take the fall was her own driving record: At the time, she had pending drink driving-related charges, so the extra demerit point for running a red light would have been of little consequence to her.
In November last year, she was jailed for two months, fined $4,800 and banned from driving for 18 months for hurting a public servant, drink driving, failing to give a breath specimen and disorderly behaviour.
Neither Ms Tay nor Mr Choo have been charged over their roles in the bribery.
It is not known whether Ms Tay has been charged over her traffic offences.
Leung could have been jailed for up to seven years and fined for subverting the course of justice.
More HDB flats in Punggol with two new BTO projects
Business Times - 17 Nov 2009
More HDB flats in Punggol with two new BTO projects
Punggol Sails and Punggol Ripples will have a total of 1,078 new flats
By UMA SHANKARI
THE Housing & Development Board (HDB) yesterday launched new build-to- order (BTO) projects at Punggol with a total of 1,078 flats.
And four more BTO projects - with 2,700 flats in all - can be expected next month in Bukit Panjang, Sembawang and Dawson.
Including the two latest Punggol projects - Punggol Sails and Punggol Ripples - HDB has offered about 10,800 flats under BTO and other exercises so far this year. Last month HDB announced plans to ramp up the supply of new flats to meet increased demand for public housing.
HDB also said that with effect from this BTO exercise, 95 per cent of the supply of two, three, four and 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,' it said.
Punggol Sails and Punggol Ripples will have 130 studio apartments and 436 three-room, 403 four-room and 109 five-room flats.
Studio apartments will be priced from $65,000 to $92,000; three-room flats will sell for $158,000 to $185,000; four-room flats for $249,000 to $305,000; and five-room flats for $332,000 to $377,000.
PropNex chief executive Mohamed Ismail expects strong interest in the new projects.
'Plans are already underway to construct the 4.9km Punggol Promenade linking the estate's two activity clusters,' he said. 'As part of the Punggol 21 Master Plan, this will enliven the area and increase the value of homes there.'
He expects the two BTO projects to be at least five times subscribed on the back of the increasing HDB resale price index.
BTO projects are typically cheaper than resale flats. The typical selling prices of new units are 10-20 per cent cheaper than those of comparable resale units in the area, Mr Ismail said.
HDB expects first-time flat buyers will need to use 23-27 per cent of their monthly household income to meet their monthly loan commitments for these two projects.
The agency says this is well below the 30 per cent international benchmark for affordable housing.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
More HDB flats in Punggol with two new BTO projects
Punggol Sails and Punggol Ripples will have a total of 1,078 new flats
By UMA SHANKARI
THE Housing & Development Board (HDB) yesterday launched new build-to- order (BTO) projects at Punggol with a total of 1,078 flats.
And four more BTO projects - with 2,700 flats in all - can be expected next month in Bukit Panjang, Sembawang and Dawson.
Including the two latest Punggol projects - Punggol Sails and Punggol Ripples - HDB has offered about 10,800 flats under BTO and other exercises so far this year. Last month HDB announced plans to ramp up the supply of new flats to meet increased demand for public housing.
HDB also said that with effect from this BTO exercise, 95 per cent of the supply of two, three, four and 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,' it said.
Punggol Sails and Punggol Ripples will have 130 studio apartments and 436 three-room, 403 four-room and 109 five-room flats.
Studio apartments will be priced from $65,000 to $92,000; three-room flats will sell for $158,000 to $185,000; four-room flats for $249,000 to $305,000; and five-room flats for $332,000 to $377,000.
PropNex chief executive Mohamed Ismail expects strong interest in the new projects.
'Plans are already underway to construct the 4.9km Punggol Promenade linking the estate's two activity clusters,' he said. 'As part of the Punggol 21 Master Plan, this will enliven the area and increase the value of homes there.'
He expects the two BTO projects to be at least five times subscribed on the back of the increasing HDB resale price index.
BTO projects are typically cheaper than resale flats. The typical selling prices of new units are 10-20 per cent cheaper than those of comparable resale units in the area, Mr Ismail said.
HDB expects first-time flat buyers will need to use 23-27 per cent of their monthly household income to meet their monthly loan commitments for these two projects.
The agency says this is well below the 30 per cent international benchmark for affordable housing.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
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