Business Times - 25 Nov 2009
CapitaLand raises $2.8b from CapitaMalls Asia IPO
By UMA SHANKARI
(SINGAPORE) Property group CapitaLand said that it raised $2.8 billion by selling 34.5 per cent of its retail arm CapitaMalls Asia (CMA) in its initial public offering (IPO).
Both the placement and retail shares were oversubscribed, and the company also released all over-allotment shares. In total, 1.34 billion shares were sold at $2.12 apiece.
The listing of CMA - which has a $20.3 billion portfolio of 86 malls in Singapore, China, Malaysia, Japan and India - is Singapore's biggest IPO since Singapore Telecommunications raised more than $4 billion in 1993.
Analysts expect CMA shares to gain today on their debut, fuelled by demand from institutional investors keen to gain exposure to China's fast-growing consumer market. More than half of CMA's malls are in China.
In a note, DMG & Partners analysts Brandon Lee and Jonathan Ng gave a valuation range of $2.42- $3.01 for CMA's shares. This is between 14 and 42 per cent above the IPO price of $2.12.
CapitaLand had earlier set an indicative range of $1.98 to $2.39 for the IPO, but later decided to price it below the mid-point of the range - a move that analysts said was to ensure that the stock trades well after it debuts.
CapitaLand yesterday reported demand of about 2.5 times for the placement tranche of 1.059 billion shares. An additional 174.8 million shares were over-allotted due to strong demand from investors.
Also, the public offer (excluding reserved shares) of 95 million shares was 4.9 times subscribed. In addition, all of the 11.7 million shares reserved for the directors, management, employees and business associates of the group were also taken up.
'Upon completion of the IPO and assuming the full exercise of the over-allotment option, CapitaLand's shareholding interest in CapitaMalls Asia will be reduced from 100 per cent to 65.5 per cent, and the IPO would have raised approximately $2.8 billion,' CapitaLand said.
CMA chief executive Lim Beng Chee said that the company is well-positioned to ride on strong consumerism trends in Asia and will continue to grow its business in the region, with an initial focus on China and Singapore.
CMA marks the sixth entity within the CapitaLand group to be listed on the Singapore Exchange. CapitaLand has previously said that it could record a one-time gain of $883 million from this 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 units. In particular, CapitaLand is looking at Singapore, China, Australia and Vietnam for growth for the overall group.
CapitaLand's shares lost four cents to close at $4.11 yesterday.
Wednesday, November 25, 2009
Tuesday, November 24, 2009
ST : 274 precincts upgraded from 1993 to 2006
Nov 24, 2009
274 precincts upgraded from 1993 to 2006
A DETAILED list of HDB precincts whose estates were improved with such features as covered linkways, barbecue pits and community gardens was given in Parliament yesterday.
National Development Minister Mah Bow Tan gave them in a written reply to opposition MP Low Thia Khiang (Hougang) who had asked, among other things, for the precincts that were upgraded.
Between 1993 and 2001, a total of 190 precincts were selected for the Interim Upgrading Programme (IUP).
It cost the Government $4,000 per flat.
In 2002, the IUP for flats built between 1981 and 1986 was replaced by a combination of the IUP and the Lift Upgrading Programme (LUP).
Known as IUP Plus, the budget was $2,400 per flat, excluding the cost for lift upgrading.
In all, 84 precincts were picked for IUP Plus from 2002 to 2006.
However, in 2007, the IUP Plus was replaced by the Neighbourhood Renewal Programme, which groups a few precincts together for upgrading.
Targeted at blocks built in 1989 or earlier, the renewal programme, with its bigger budget, makes it possible to consider such features as tennis courts and skating parks.
No opposition precincts were selected for these upgrading programmes.
However, in July this year, the two opposition wards of Hougang and Potong Pasir were told the LUP would be offered to them.
Last month, one precinct of roughly 10 blocks in each of the two wards was selected for the LUP, which puts a lift landing on every floor.
It was a shift in position by the Government, which had said after the 2006 General Election that opposition wards would be placed 'at the end of the queue' for the LUP.
274 precincts upgraded from 1993 to 2006
A DETAILED list of HDB precincts whose estates were improved with such features as covered linkways, barbecue pits and community gardens was given in Parliament yesterday.
National Development Minister Mah Bow Tan gave them in a written reply to opposition MP Low Thia Khiang (Hougang) who had asked, among other things, for the precincts that were upgraded.
Between 1993 and 2001, a total of 190 precincts were selected for the Interim Upgrading Programme (IUP).
It cost the Government $4,000 per flat.
In 2002, the IUP for flats built between 1981 and 1986 was replaced by a combination of the IUP and the Lift Upgrading Programme (LUP).
Known as IUP Plus, the budget was $2,400 per flat, excluding the cost for lift upgrading.
In all, 84 precincts were picked for IUP Plus from 2002 to 2006.
However, in 2007, the IUP Plus was replaced by the Neighbourhood Renewal Programme, which groups a few precincts together for upgrading.
Targeted at blocks built in 1989 or earlier, the renewal programme, with its bigger budget, makes it possible to consider such features as tennis courts and skating parks.
No opposition precincts were selected for these upgrading programmes.
However, in July this year, the two opposition wards of Hougang and Potong Pasir were told the LUP would be offered to them.
Last month, one precinct of roughly 10 blocks in each of the two wards was selected for the LUP, which puts a lift landing on every floor.
It was a shift in position by the Government, which had said after the 2006 General Election that opposition wards would be placed 'at the end of the queue' for the LUP.
ST : Be realistic, Mah tells home buyers
Nov 24, 2009
Be realistic, Mah tells home buyers
HDB cannot build flats only in mature estates, or only on high floors
By Jessica Cheam
ST PHOTO: MALCOLM MCLEOD
THE Housing Board (HDB) cannot meet all expectations of home buyers even though the standard of housing has increased over the years, said National Development Minister Mah Bow Tan.
Addressing Parliament yesterday, he said some buyers seemed to have unrealistic expectations.
Mr Mah, who is 61, recalled his childhood days living in Kim Keat Avenue.
His then three-room HDB flat 'was like a palace' - even though there was just one toilet and bathroom in a flat with eight people.
'It was basic but it was like a palace to us because I had just come from a one-room (flat) with 10 people in Chinatown. So I think that reflects our expectations at that time and how things have changed,' he said.
Although new HDB flats are 'going to be even nicer over time... certain expectations, we cannot meet', he said.
HDB cannot build flats only in mature estates, or flats that are only on high floors, he pointed out.
'I need to have flats on the second floor and third floor as well. And who is going to live on these floors?
'So I think our commitment is that we will build and make available flats to young couples at affordable prices.'
The minister was responding to Nominated MP Viswa Sadasivan, who had wondered why - despite the measures for adequate and affordable housing - 'there appears to be a groundswell of discontent that first-time buyers are not able to buy the flats'.
Replying, Mr Mah shrugged off the suggestion that there is a groundswell of discontent.
However, feedback from the ground has shown that home buyers 'would like HDB to provide ready-made flats in good locations at cheaper prices, faster, better... and this is the reason why I think we have to better communicate our policies', said Mr Mah.
'But I dare say that there is also a mismatch of expectations, that there is an element of unrealistic expectations.'
He urged young Singaporeans to be realistic in their expectations. Even flats on the second floor will grow in value, he said. 'These flats will increase in value over time. The non-mature estates today will become the mature estates of tomorrow.'
Be realistic, Mah tells home buyers
HDB cannot build flats only in mature estates, or only on high floors
By Jessica Cheam
ST PHOTO: MALCOLM MCLEOD
THE Housing Board (HDB) cannot meet all expectations of home buyers even though the standard of housing has increased over the years, said National Development Minister Mah Bow Tan.
Addressing Parliament yesterday, he said some buyers seemed to have unrealistic expectations.
Mr Mah, who is 61, recalled his childhood days living in Kim Keat Avenue.
His then three-room HDB flat 'was like a palace' - even though there was just one toilet and bathroom in a flat with eight people.
'It was basic but it was like a palace to us because I had just come from a one-room (flat) with 10 people in Chinatown. So I think that reflects our expectations at that time and how things have changed,' he said.
Although new HDB flats are 'going to be even nicer over time... certain expectations, we cannot meet', he said.
HDB cannot build flats only in mature estates, or flats that are only on high floors, he pointed out.
'I need to have flats on the second floor and third floor as well. And who is going to live on these floors?
'So I think our commitment is that we will build and make available flats to young couples at affordable prices.'
The minister was responding to Nominated MP Viswa Sadasivan, who had wondered why - despite the measures for adequate and affordable housing - 'there appears to be a groundswell of discontent that first-time buyers are not able to buy the flats'.
Replying, Mr Mah shrugged off the suggestion that there is a groundswell of discontent.
However, feedback from the ground has shown that home buyers 'would like HDB to provide ready-made flats in good locations at cheaper prices, faster, better... and this is the reason why I think we have to better communicate our policies', said Mr Mah.
'But I dare say that there is also a mismatch of expectations, that there is an element of unrealistic expectations.'
He urged young Singaporeans to be realistic in their expectations. Even flats on the second floor will grow in value, he said. 'These flats will increase in value over time. The non-mature estates today will become the mature estates of tomorrow.'
ST : 'Ease rental rules' for divorced mums
Nov 24, 2009
'Ease rental rules' for divorced mums
By Cai Haoxiang
THE Housing Board needs to be more flexible when renting flats to divorced women with children, said Madam Halimah Yacob (Jurong GRC) yesterday.
She was speaking to The Straits Times after statistics released yesterday showed the HDB waived the eligibility criteria for renting flats for only a handful of divorced women with children last year.
In all, 649 had registered for homes but only 28 among them had the eligibility criteria waived.
Eventually, 200 were allocated rental flats, said National Development Minister Mah Bow Tan in a written reply to Parliament.
However, owing to the limited supply of rental flats, not all of them are due for allocation yet, said Mr Mah.
He gave the response to Madam Halimah who had asked earlier, among other things, how many of these women had applied to rent flats and were successful.
Her beef is with an existing rule which states that rental flat-seekers must not have sold an HDB flat or private property in the last 30 months.
However, in a divorce, the jointly owned flat is usually sold when the man and woman go their separate ways, a move that disqualifies them from applying for a rental home.
At the same time, these women often cannot afford to buy another flat. They can stay with family members, like a married brother or sister, but living in crowded conditions often causes conflict.
'One told me that she and her three children live in the living room of her brother's flat,' said Madam Halimah.
Also, most people do not rent flats to women with children, she added.
'Many of them are very desperate because they have young children to look after,' she said, adding that she had received about 30 requests for help from these women in the last few months.
In a separate written reply, the Minister for Community Development, Youth and Sports Vivian Balakrishnan said 57 per cent of the 6,328 civil divorce suits filed last year involved children younger than 21.
Detailed statistics on their ages and which parent had custody are unavailable, he added.
For Muslim divorces, 66 per cent of the 1,696 divorce suits involved children under the age of 21.
And in 62 per cent or 703 of the cases, the women get custody. For the rest, custody either went to the father or to both parents.
On average, the cases involve two children and the average age of each child is 11 years.
'Ease rental rules' for divorced mums
By Cai Haoxiang
THE Housing Board needs to be more flexible when renting flats to divorced women with children, said Madam Halimah Yacob (Jurong GRC) yesterday.
She was speaking to The Straits Times after statistics released yesterday showed the HDB waived the eligibility criteria for renting flats for only a handful of divorced women with children last year.
In all, 649 had registered for homes but only 28 among them had the eligibility criteria waived.
Eventually, 200 were allocated rental flats, said National Development Minister Mah Bow Tan in a written reply to Parliament.
However, owing to the limited supply of rental flats, not all of them are due for allocation yet, said Mr Mah.
He gave the response to Madam Halimah who had asked earlier, among other things, how many of these women had applied to rent flats and were successful.
Her beef is with an existing rule which states that rental flat-seekers must not have sold an HDB flat or private property in the last 30 months.
However, in a divorce, the jointly owned flat is usually sold when the man and woman go their separate ways, a move that disqualifies them from applying for a rental home.
At the same time, these women often cannot afford to buy another flat. They can stay with family members, like a married brother or sister, but living in crowded conditions often causes conflict.
'One told me that she and her three children live in the living room of her brother's flat,' said Madam Halimah.
Also, most people do not rent flats to women with children, she added.
'Many of them are very desperate because they have young children to look after,' she said, adding that she had received about 30 requests for help from these women in the last few months.
In a separate written reply, the Minister for Community Development, Youth and Sports Vivian Balakrishnan said 57 per cent of the 6,328 civil divorce suits filed last year involved children younger than 21.
Detailed statistics on their ages and which parent had custody are unavailable, he added.
For Muslim divorces, 66 per cent of the 1,696 divorce suits involved children under the age of 21.
And in 62 per cent or 703 of the cases, the women get custody. For the rest, custody either went to the father or to both parents.
On average, the cases involve two children and the average age of each child is 11 years.
ST Online Forum : Implement two systems of property taxation
Nov 24, 2009
Implement two systems of property taxation
I APPLAUD the Government for using the property tax system to regulate tax collection from homes in accordance with economic conditions.
For example, the upward revision of annual values (AVs) of HDB flats was delayed from Jan 1 this year. According to a press statement on its website, the Inland Revenue Authority of Singapore (Iras) reviews annually the AVs of all properties, including HDB flats, to ensure they reflect prevailing market rental values for the purpose of determining property tax.
The current reaction to the HDB rent increases was delayed and now the Government will give a one-off rebate to cushion the impact of the taxman's actions.
However, the announcement is silent on AVs of other properties. I suggest Iras segregate the imposition of property tax according to property type since it tackles a specific group at any one time, even after it has reviewed all properties.
Let me explain. Iras uses an assessment system to determine the property tax payable by homes which are mostly owner-occupied (that is, no rental evidence) and even grants a 4 per cent owner-occupier concession to residential homes.
However, such an assessment system is not efficient for properties that are rented out. Rented-out properties should be taxed on their actual income rather than reply on an assessment which can be prone to error of judgment.
I therefore urge the authorities to have two systems of property taxation - one based on assessment of the property if it is owner-occupied and another based on actual rent if it is leased out.
Patrick Sio
Implement two systems of property taxation
I APPLAUD the Government for using the property tax system to regulate tax collection from homes in accordance with economic conditions.
For example, the upward revision of annual values (AVs) of HDB flats was delayed from Jan 1 this year. According to a press statement on its website, the Inland Revenue Authority of Singapore (Iras) reviews annually the AVs of all properties, including HDB flats, to ensure they reflect prevailing market rental values for the purpose of determining property tax.
The current reaction to the HDB rent increases was delayed and now the Government will give a one-off rebate to cushion the impact of the taxman's actions.
However, the announcement is silent on AVs of other properties. I suggest Iras segregate the imposition of property tax according to property type since it tackles a specific group at any one time, even after it has reviewed all properties.
Let me explain. Iras uses an assessment system to determine the property tax payable by homes which are mostly owner-occupied (that is, no rental evidence) and even grants a 4 per cent owner-occupier concession to residential homes.
However, such an assessment system is not efficient for properties that are rented out. Rented-out properties should be taxed on their actual income rather than reply on an assessment which can be prone to error of judgment.
I therefore urge the authorities to have two systems of property taxation - one based on assessment of the property if it is owner-occupied and another based on actual rent if it is leased out.
Patrick Sio
BT : All set for the future
Business Times - 24 Nov 2009
INDUSTRIAL SPACE
All set for the future
Despite the downturn, JTC is forging ahead with its new blueprint for an innovative industrial landscape
THE economic downturn curbed many organisation's appetite for growth and risk in the past year. But taking a step back was not an option for JTC Corporation, the agency responsible for spearheading Singapore's industrial development.
JTC is forging ahead with its blueprint for the future - and has a new chief executive to lead.
'For most, staying resilient in the wake of an economic crisis would mean taking measures to reduce costs and holding out until the storm blows over,' JTC said in its fifth Periscope magazine for 2009.
'JTC has done that and beyond. We charted new business territories targeted as future growth industries, while maintaining focus on investing in land infrastructure so Singapore will be ready to ride the next wave when the upturn comes.'
The agency's new chief executive Manohar Khiatani took the helm on Oct 1 - and is ready to take JTC to the next level. Mr Khiatani, who was previously deputy managing director at the Economic Development Board, has more than 20 years' experience in industrial development.
One of his priorities at JTC is to ensure the organisation stays close to its customers and understands their needs, he says in the foreword to Periscope. JTC is now better-positioned for this, having gone through an internal reorganisation recently.
Its business units used to be grouped according to development types, such as industrial parks and specialised parks. But since April, they have been arranged around key clusters such as electronics, info-communication, media, aerospace, marine, clean technology, bio-medicine, chemicals, engineering and logistics.
The reorganisation came after a strategic review, which began last year, to position JTC for the future. The review identified three strategic thrusts, one of which is to focus on economic clusters.
'This allows us to better support you through targeted planning and infrastructural solutions customised for the individual clusters,' Mr Khiatani said, addressing JTC's customers. 'You will have a single point of contact for all your needs and JTC officers will be in a better position to appreciate cluster trends and customer requirements.'
Besides internal restructuring, JTC continued to develop various large-scale cutting-edge projects. The strategic review also highlighted the need for the agency to continue investing in innovation and to optimise long-term land resources.
Projects include Seletar Aero+sPace (SAP), a 300 hectare centre for aerospace maintenance, repair and overhaul services; aircraft systems and components design and production; business and general aviation activity; and aviation research and education. Several aerospace players have signed up for space at SAP, which is expected to create more than 10,000 jobs when it is completed in 2018.
Catering to the budding digital media industry, JTC is also involved in developing the 19 ha Mediapolis at one-north. Collaborating with the Media Development Authority, Infocomm Development Authority and EDB, JTC will help build a centre with interactive digital media research labs, sound stages, media schools and other facilities.
Work on the Jurong Rock Cavern is also progressing. The underground cavern, measuring 27 metres high, 20 metres wide and 300 metres long, will provide secure storage for liquid hydrocarbons such as crude oil and naphtha when it is ready. The first phase will create 1.47 million cubic metres of storage when completed in 2014, and the planned second phase could generate another 1.32 million cubic metres of space.
Underground caverns are particularly functional in land-scarce Singapore - and JTC is coming up with more uses for them. It is exploring the possibility of building an underground science city at Kent Ridge and an underground warehouse-cum-logistics facility at Tanjong Kling.
Out at sea even, JTC is studying the creation of Very Large Floating Structures to provide storage capacity offshore.
'We are looking at creating solutions that will not only help us optimise land use, but also create a unique and differentiating advantage for industry clusters in Singapore,' Mr Khiatani told JTC's customers. 'We look forward to closely working with you to jointly generate and develop new ideas which will ensure that we are 'future-ready'.'
Mr Khiatani added that JTC is working on creating a 'borderless culture' internally and with other government agencies. 'This will enable us better understand and provide seamless solutions for you,' he said.
With its blueprint for the future laid out, JTC is all set for better performance ahead. 'With a strong foundation, we are confident of accelerated growth once global demand builds up again,' it said.
Cluster approach: Catering to the budding digital media industry, JTC is involved in developing the 19 ha Mediapolis (above) at one-north
Out at sea, it is studying the creation of Very Large Floating Structures to provide storage capacity offshore
On strong foundation: One of Mr Khiatani's priorities at JTC is to ensure the organisation stays close to its customers and understands their needs
Artist's impression of the component manufacturing & MRO facility at Seletar Aero+sPace
Underground caverns are particularly functional in land-scarce Singapore - and JTC is coming up with more uses for them
INDUSTRIAL SPACE
All set for the future
Despite the downturn, JTC is forging ahead with its new blueprint for an innovative industrial landscape
THE economic downturn curbed many organisation's appetite for growth and risk in the past year. But taking a step back was not an option for JTC Corporation, the agency responsible for spearheading Singapore's industrial development.
JTC is forging ahead with its blueprint for the future - and has a new chief executive to lead.
'For most, staying resilient in the wake of an economic crisis would mean taking measures to reduce costs and holding out until the storm blows over,' JTC said in its fifth Periscope magazine for 2009.
'JTC has done that and beyond. We charted new business territories targeted as future growth industries, while maintaining focus on investing in land infrastructure so Singapore will be ready to ride the next wave when the upturn comes.'
The agency's new chief executive Manohar Khiatani took the helm on Oct 1 - and is ready to take JTC to the next level. Mr Khiatani, who was previously deputy managing director at the Economic Development Board, has more than 20 years' experience in industrial development.
One of his priorities at JTC is to ensure the organisation stays close to its customers and understands their needs, he says in the foreword to Periscope. JTC is now better-positioned for this, having gone through an internal reorganisation recently.
Its business units used to be grouped according to development types, such as industrial parks and specialised parks. But since April, they have been arranged around key clusters such as electronics, info-communication, media, aerospace, marine, clean technology, bio-medicine, chemicals, engineering and logistics.
The reorganisation came after a strategic review, which began last year, to position JTC for the future. The review identified three strategic thrusts, one of which is to focus on economic clusters.
'This allows us to better support you through targeted planning and infrastructural solutions customised for the individual clusters,' Mr Khiatani said, addressing JTC's customers. 'You will have a single point of contact for all your needs and JTC officers will be in a better position to appreciate cluster trends and customer requirements.'
Besides internal restructuring, JTC continued to develop various large-scale cutting-edge projects. The strategic review also highlighted the need for the agency to continue investing in innovation and to optimise long-term land resources.
Projects include Seletar Aero+sPace (SAP), a 300 hectare centre for aerospace maintenance, repair and overhaul services; aircraft systems and components design and production; business and general aviation activity; and aviation research and education. Several aerospace players have signed up for space at SAP, which is expected to create more than 10,000 jobs when it is completed in 2018.
Catering to the budding digital media industry, JTC is also involved in developing the 19 ha Mediapolis at one-north. Collaborating with the Media Development Authority, Infocomm Development Authority and EDB, JTC will help build a centre with interactive digital media research labs, sound stages, media schools and other facilities.
Work on the Jurong Rock Cavern is also progressing. The underground cavern, measuring 27 metres high, 20 metres wide and 300 metres long, will provide secure storage for liquid hydrocarbons such as crude oil and naphtha when it is ready. The first phase will create 1.47 million cubic metres of storage when completed in 2014, and the planned second phase could generate another 1.32 million cubic metres of space.
Underground caverns are particularly functional in land-scarce Singapore - and JTC is coming up with more uses for them. It is exploring the possibility of building an underground science city at Kent Ridge and an underground warehouse-cum-logistics facility at Tanjong Kling.
Out at sea even, JTC is studying the creation of Very Large Floating Structures to provide storage capacity offshore.
'We are looking at creating solutions that will not only help us optimise land use, but also create a unique and differentiating advantage for industry clusters in Singapore,' Mr Khiatani told JTC's customers. 'We look forward to closely working with you to jointly generate and develop new ideas which will ensure that we are 'future-ready'.'
Mr Khiatani added that JTC is working on creating a 'borderless culture' internally and with other government agencies. 'This will enable us better understand and provide seamless solutions for you,' he said.
With its blueprint for the future laid out, JTC is all set for better performance ahead. 'With a strong foundation, we are confident of accelerated growth once global demand builds up again,' it said.
Cluster approach: Catering to the budding digital media industry, JTC is involved in developing the 19 ha Mediapolis (above) at one-north
Out at sea, it is studying the creation of Very Large Floating Structures to provide storage capacity offshore
On strong foundation: One of Mr Khiatani's priorities at JTC is to ensure the organisation stays close to its customers and understands their needs
Artist's impression of the component manufacturing & MRO facility at Seletar Aero+sPace
Underground caverns are particularly functional in land-scarce Singapore - and JTC is coming up with more uses for them
BT : Upgraders sidelined as home prices soar: DTZ
Business Times - 24 Nov 2009
Upgraders sidelined as home prices soar: DTZ
But private home dwellers enjoyed the party in Q3, buying more and paying more
By EMILYN YAP
(SINGAPORE) HDB upgraders account for a shrinking share of private home transactions as property prices rise and mass-market launches taper off.
In contrast, private housing dwellers are buying more property as economic sentiment improves, keeping the real estate market afloat.
According to property consultancy DTZ, buyers with HDB addresses picked up 4,065 private homes in the third quarter. This was 73 units or 1.8 per cent more than in the preceding quarter.
Though still rising in number, these deals are making up a smaller proportion of all sales. They accounted for 37 per cent of private home transactions in Q3, down from 44 per cent in Q2 and the recent peak of 56 per cent in Q1.
This reflects 'the diminishing buying power of HDB upgraders' as property prices rise, DTZ says. It notes that prices of private resale homes have climbed 9-22 per cent from their lows in Q1.
ERA Asia-Pacific associate director Eugene Lim points out that there were fewer mass-market launches in Q3. Encouraged by rising resale flat prices, HDB upgraders had gone for these more affordable projects in the early part of the year, reviving the property market.
But in October, the pricier Core Central Region (CCR) trumped other parts of the island in terms of the number of new private homes launched and sold. Developers pushed out 339 units in CCR, surpassing 40 in the Rest of Central Region (RCR) and 187 in the Outside Central Region (OCR).
Developers also sold 311 units in CCR, compared with 249 in RCR and 251 in OCR.
The buying mood may be wearing thin among HDB upgraders, but it is still strong among private housing dwellers. DTZ found that buyers with private addresses picked up 6,837 units in Q3 - 1,846 units or 37 per cent up from the previous quarter.
These deals accounted for 63 per cent of all transactions in Q3, rising from 56 per cent in Q2 and 44 per cent in Q1.
Buyers with private addresses 'are more excited now', says Jones Lang LaSalle's (JLL) head of South-east Asia research, Chua Yang Liang. This is the result of improving liquidity, buoyant stock markets and rosier economic sentiment, he says.
Not only are private housing dwellers buying more units, they are also paying more. According to DTZ, 66 per cent of them bought units that cost more than $1 million in Q3.
On the other hand, HDB upgraders had smaller budgets. The bulk of them - or 30 per cent - went for homes that cost between $600,001 and $800,000. Just 33 per cent of them paid more than $1 million.
Some 90 per cent of transactions involving buyers with HDB addresses were for homes outside Districts 9, 10 and 11. Many of them were attracted to The Gale in the Upper Changi area, Trevista in Toa Payoh, and Parc Imperial in Pasir Panjang.
Separately, analysing transactions in Q3 according to buyers' nationalities, DTZ found more foreigners were acquiring nests here.
There were 1,069 private home transactions involving foreigners, up 52 per cent from 703 in Q2 and more than six times 174 in Q1.
These deals accounted for 10 per cent of all transactions in Q3, up from 8 per cent in Q2. During the 2007 boom, this figure hit 13 per cent.
Singapore permanent residents (PRs) also became more active in the property market in Q3.
They accounted for 1,404 private home transactions, 27 per cent more than the 1,104 in Q2.
Among foreigners and PRs, Malaysians bought the most homes, accounting for 26 per cent of transactions. Indonesians took second place with a 19 per cent share, followed by mainland Chinese and Indians, with 14 and 12 per cent shares respectively.
Companies are also ramping up property purchases.
DTZ says the number of corporate transactions jumped more than four times to 225 in Q3.
Upgraders sidelined as home prices soar: DTZ
But private home dwellers enjoyed the party in Q3, buying more and paying more
By EMILYN YAP
(SINGAPORE) HDB upgraders account for a shrinking share of private home transactions as property prices rise and mass-market launches taper off.
In contrast, private housing dwellers are buying more property as economic sentiment improves, keeping the real estate market afloat.
According to property consultancy DTZ, buyers with HDB addresses picked up 4,065 private homes in the third quarter. This was 73 units or 1.8 per cent more than in the preceding quarter.
Though still rising in number, these deals are making up a smaller proportion of all sales. They accounted for 37 per cent of private home transactions in Q3, down from 44 per cent in Q2 and the recent peak of 56 per cent in Q1.
This reflects 'the diminishing buying power of HDB upgraders' as property prices rise, DTZ says. It notes that prices of private resale homes have climbed 9-22 per cent from their lows in Q1.
ERA Asia-Pacific associate director Eugene Lim points out that there were fewer mass-market launches in Q3. Encouraged by rising resale flat prices, HDB upgraders had gone for these more affordable projects in the early part of the year, reviving the property market.
But in October, the pricier Core Central Region (CCR) trumped other parts of the island in terms of the number of new private homes launched and sold. Developers pushed out 339 units in CCR, surpassing 40 in the Rest of Central Region (RCR) and 187 in the Outside Central Region (OCR).
Developers also sold 311 units in CCR, compared with 249 in RCR and 251 in OCR.
The buying mood may be wearing thin among HDB upgraders, but it is still strong among private housing dwellers. DTZ found that buyers with private addresses picked up 6,837 units in Q3 - 1,846 units or 37 per cent up from the previous quarter.
These deals accounted for 63 per cent of all transactions in Q3, rising from 56 per cent in Q2 and 44 per cent in Q1.
Buyers with private addresses 'are more excited now', says Jones Lang LaSalle's (JLL) head of South-east Asia research, Chua Yang Liang. This is the result of improving liquidity, buoyant stock markets and rosier economic sentiment, he says.
Not only are private housing dwellers buying more units, they are also paying more. According to DTZ, 66 per cent of them bought units that cost more than $1 million in Q3.
On the other hand, HDB upgraders had smaller budgets. The bulk of them - or 30 per cent - went for homes that cost between $600,001 and $800,000. Just 33 per cent of them paid more than $1 million.
Some 90 per cent of transactions involving buyers with HDB addresses were for homes outside Districts 9, 10 and 11. Many of them were attracted to The Gale in the Upper Changi area, Trevista in Toa Payoh, and Parc Imperial in Pasir Panjang.
Separately, analysing transactions in Q3 according to buyers' nationalities, DTZ found more foreigners were acquiring nests here.
There were 1,069 private home transactions involving foreigners, up 52 per cent from 703 in Q2 and more than six times 174 in Q1.
These deals accounted for 10 per cent of all transactions in Q3, up from 8 per cent in Q2. During the 2007 boom, this figure hit 13 per cent.
Singapore permanent residents (PRs) also became more active in the property market in Q3.
They accounted for 1,404 private home transactions, 27 per cent more than the 1,104 in Q2.
Among foreigners and PRs, Malaysians bought the most homes, accounting for 26 per cent of transactions. Indonesians took second place with a 19 per cent share, followed by mainland Chinese and Indians, with 14 and 12 per cent shares respectively.
Companies are also ramping up property purchases.
DTZ says the number of corporate transactions jumped more than four times to 225 in Q3.
BT : Median resale prices for exec condos soar 63%
Business Times - 24 Nov 2009
Median resale prices for exec condos soar 63%
Caveats lodged for ECs in October 2009 show prices at $519 psf, says CBRE
By UMA SHANKARI
(SINGAPORE) THE median resale prices of executive condominiums (ECs) have increased 63 per cent in the past two years, riding on the bull run in the private residential market, a report says.
Caveats lodged for ECs in the resale market in October 2009 showed prices at $519 per sq ft (psf), says CB Richard Ellis (CBRE). This is 63 per cent higher than at the bottom of the market in Q3 2006, when resale ECs were sold at $319 psf.
CBRE's analysis of caveats lodged between 2004 and early 2007 shows median EC prices in the resale market fluctuated within the $300-400 psf band, bottoming out at $319 psf in Q3 2006.
ECs are a hybrid of private and public housing. They are similar to private condominiums in terms of facilities and amenities, but eligibility requirements are almost similar to those for new HDB flats.
The EC was first introduced in 1996 when the property bull run caused new private condo prices to soar to above $600 psf.
The last EC launched was La Casa in May 2005. It was completed in early 2008. Since then no new EC projects have been launched. Since the second half of 2007, when the private residential market was peaking again, the government has placed up to four EC sites on the reserve list, but there have been no takers.
But in the recently announced government land sales programme for the first half of 2010, the government placed two EC sites on the confirmed list and three others on the reserve list, which is 'a clear signal that the government wants to provide the EC as an alternative housing choice for homebuyers from next year', says CBRE.
Currently, a 14 per cent price gap exists between the median prices of ECs and mass-market non-landed projects in the resale market, CBRE says.
'Our analysis shows that buyers who bought new ECs at various periods from 1996 when EC prices hovered at around $400 psf should benefit from the price appreciation in the past two years,' said Li Hiaw Ho, executive director of CBRE Research. 'The residential market run-up of 2007 lifted new EC prices to above the $500 psf mark.'
Going forward, CBRE says that if the price gap between the next new EC project and a new private non-landed leasehold project in the same location is attractive enough, buyer demand for EC developments will surely return. The firms expects the tender bids for the two EC sites to be offered in January 2010 on the confirmed list - Buangkok Drive/ Compassvale Bow and Yishun Avenue 11 - will be a function of developers' confidence in the EC market and their pricing strategy.
Median resale prices for exec condos soar 63%
Caveats lodged for ECs in October 2009 show prices at $519 psf, says CBRE
By UMA SHANKARI
(SINGAPORE) THE median resale prices of executive condominiums (ECs) have increased 63 per cent in the past two years, riding on the bull run in the private residential market, a report says.
Caveats lodged for ECs in the resale market in October 2009 showed prices at $519 per sq ft (psf), says CB Richard Ellis (CBRE). This is 63 per cent higher than at the bottom of the market in Q3 2006, when resale ECs were sold at $319 psf.
CBRE's analysis of caveats lodged between 2004 and early 2007 shows median EC prices in the resale market fluctuated within the $300-400 psf band, bottoming out at $319 psf in Q3 2006.
ECs are a hybrid of private and public housing. They are similar to private condominiums in terms of facilities and amenities, but eligibility requirements are almost similar to those for new HDB flats.
The EC was first introduced in 1996 when the property bull run caused new private condo prices to soar to above $600 psf.
The last EC launched was La Casa in May 2005. It was completed in early 2008. Since then no new EC projects have been launched. Since the second half of 2007, when the private residential market was peaking again, the government has placed up to four EC sites on the reserve list, but there have been no takers.
But in the recently announced government land sales programme for the first half of 2010, the government placed two EC sites on the confirmed list and three others on the reserve list, which is 'a clear signal that the government wants to provide the EC as an alternative housing choice for homebuyers from next year', says CBRE.
Currently, a 14 per cent price gap exists between the median prices of ECs and mass-market non-landed projects in the resale market, CBRE says.
'Our analysis shows that buyers who bought new ECs at various periods from 1996 when EC prices hovered at around $400 psf should benefit from the price appreciation in the past two years,' said Li Hiaw Ho, executive director of CBRE Research. 'The residential market run-up of 2007 lifted new EC prices to above the $500 psf mark.'
Going forward, CBRE says that if the price gap between the next new EC project and a new private non-landed leasehold project in the same location is attractive enough, buyer demand for EC developments will surely return. The firms expects the tender bids for the two EC sites to be offered in January 2010 on the confirmed list - Buangkok Drive/ Compassvale Bow and Yishun Avenue 11 - will be a function of developers' confidence in the EC market and their pricing strategy.
Monday, November 23, 2009
ST : Why raise property tax
Nov 22, 2009
Why raise property tax
By Sue-Ann Chia SENIOR POLITICAL CORRESPONDENT
Mr Lui pointed out that the Government is taking steps to soften the impact of the tax rise early next year. -- ST PHOTO: CHEW SENG KIM
THE property tax of HDB flats is being raised next year partly to avoid having to introduce a bigger increase later should home prices continue to rise, said Acting Minister for Information, Communications and the Arts Lui Tuck Yew.
He gave the reason on Sunday when he was asked, at a dialogue with Aljunied-Hougang residents, whether the Government could have delayed it since the recession has just started to ease.
Noting that the adjustment had been delayed once, in 2008, Rear-Admiral (NS) Lui said: 'The problem is the longer you defer it, the larger the increase will be in the property taxes if HDB prices continues to go up.'
He also pointed out that the Government is taking steps to soften the impact of the tax rise early next year.
It is giving HDB homeowners a one-off rebate, set at 50 per cent of the property tax payable and capped at $120. This means low-income families with homes whose property tax is $50 and less will not have to pay any such tax next year.
Singapore homeowners pay a tax set at 10 per cent of the property's value, which has been rising as HDB flat prices continue to climb despite the downturn.
Why raise property tax
By Sue-Ann Chia SENIOR POLITICAL CORRESPONDENT
Mr Lui pointed out that the Government is taking steps to soften the impact of the tax rise early next year. -- ST PHOTO: CHEW SENG KIM
THE property tax of HDB flats is being raised next year partly to avoid having to introduce a bigger increase later should home prices continue to rise, said Acting Minister for Information, Communications and the Arts Lui Tuck Yew.
He gave the reason on Sunday when he was asked, at a dialogue with Aljunied-Hougang residents, whether the Government could have delayed it since the recession has just started to ease.
Noting that the adjustment had been delayed once, in 2008, Rear-Admiral (NS) Lui said: 'The problem is the longer you defer it, the larger the increase will be in the property taxes if HDB prices continues to go up.'
He also pointed out that the Government is taking steps to soften the impact of the tax rise early next year.
It is giving HDB homeowners a one-off rebate, set at 50 per cent of the property tax payable and capped at $120. This means low-income families with homes whose property tax is $50 and less will not have to pay any such tax next year.
Singapore homeowners pay a tax set at 10 per cent of the property's value, which has been rising as HDB flat prices continue to climb despite the downturn.
ST : Offset for corporate tax fall
Nov 23, 2009
Offset for corporate tax fall
By Alvin Foo
A PROJECTED fall in government revenue from a corporate tax cut here will be more than offset by steps taken in recent years to raise revenue from other sources, said Second Minister for Finance and Transport Lim Hwee Hua on Monday.
Her comments coincided with the passing of the Income Tax (Amendment) Bill on Monday, which gave effect to pro-business tax measures announced during the Budget speech in January.
Among other things, the new law exempts companies from paying tax on foreign-sourced income for one year, and allows businesses to claim losses against three previous years of income instead of just one.
It also cuts the corporate tax rate from 18 per cent to 17 per cent, bringing Singapore's rate closer to that of key rival economy Hong Kong, where the rate is 16.5 per cent.
Mrs Lim, who is also Minister in the Prime Minister's Office, said this reduction will cost the Government between $400 million and $500 million a year.
But she assured members of the House that earlier steps - including the raising of the goods and services tax (GST) from 5 per cent to 7 per cent in 2007 - will more than make up for this fall.
Offset for corporate tax fall
By Alvin Foo
A PROJECTED fall in government revenue from a corporate tax cut here will be more than offset by steps taken in recent years to raise revenue from other sources, said Second Minister for Finance and Transport Lim Hwee Hua on Monday.
Her comments coincided with the passing of the Income Tax (Amendment) Bill on Monday, which gave effect to pro-business tax measures announced during the Budget speech in January.
Among other things, the new law exempts companies from paying tax on foreign-sourced income for one year, and allows businesses to claim losses against three previous years of income instead of just one.
It also cuts the corporate tax rate from 18 per cent to 17 per cent, bringing Singapore's rate closer to that of key rival economy Hong Kong, where the rate is 16.5 per cent.
Mrs Lim, who is also Minister in the Prime Minister's Office, said this reduction will cost the Government between $400 million and $500 million a year.
But she assured members of the House that earlier steps - including the raising of the goods and services tax (GST) from 5 per cent to 7 per cent in 2007 - will more than make up for this fall.
ST : PRs own under 5% of flats
Nov 23, 2009
PRs own under 5% of flats
By Jeremy Au Yong
Mr Mah said PRs were already subjected to the same rules as Singaporeans, and that includes the Ethnic Integration Policy (EIP). -- PHOTO: ZAOBAO
PERMANENT residents occupy less than 5 per cent of all Housing Board flats, and are living in estates across the island.
Nevertheless, the Government will keep an eye on the situation to ensure that no PR and foreigner enclaves develop.
National Development Minister Mah Bow Tan said this when responding to Dr Lim Wee Kiak (Sembawang GRC). Dr Lim wanted to know the distribution of PRs across Housing Board estates, as well as whether the Government would consider expanding the current ethnic quota scheme to include PRs.
Mr Mah said PRs were already subjected to the same rules as Singaporeans, and that includes the Ethnic Integration Policy (EIP).
'The EIP was introduced to achieve a healthy racial mix in HDB estates and prevent the formation of ethnic enclaves, regardless of whether they are citizens or PRs,' he said. As of June 30 this year, PRs owned 42,800 flats - or just 4.9 per cent of the nearly 900,000 HDB flats islandwide.
While public housing policies are for the benefit of Singaporeans, Mr Mah stressed that PRs also needed a place to live: 'PR families are not eligible for housing subsidies that Singaporeans enjoy. They are not allowed to buy a new flat from HDB or enjoy any housing grant. However, PRs need to have a home in Singapore. Therefore, they are allowed to buy properties from the open market, including HDB resale flats.'
PRs own under 5% of flats
By Jeremy Au Yong
Mr Mah said PRs were already subjected to the same rules as Singaporeans, and that includes the Ethnic Integration Policy (EIP). -- PHOTO: ZAOBAO
PERMANENT residents occupy less than 5 per cent of all Housing Board flats, and are living in estates across the island.
Nevertheless, the Government will keep an eye on the situation to ensure that no PR and foreigner enclaves develop.
National Development Minister Mah Bow Tan said this when responding to Dr Lim Wee Kiak (Sembawang GRC). Dr Lim wanted to know the distribution of PRs across Housing Board estates, as well as whether the Government would consider expanding the current ethnic quota scheme to include PRs.
Mr Mah said PRs were already subjected to the same rules as Singaporeans, and that includes the Ethnic Integration Policy (EIP).
'The EIP was introduced to achieve a healthy racial mix in HDB estates and prevent the formation of ethnic enclaves, regardless of whether they are citizens or PRs,' he said. As of June 30 this year, PRs owned 42,800 flats - or just 4.9 per cent of the nearly 900,000 HDB flats islandwide.
While public housing policies are for the benefit of Singaporeans, Mr Mah stressed that PRs also needed a place to live: 'PR families are not eligible for housing subsidies that Singaporeans enjoy. They are not allowed to buy a new flat from HDB or enjoy any housing grant. However, PRs need to have a home in Singapore. Therefore, they are allowed to buy properties from the open market, including HDB resale flats.'
ST : 12,000 homes over 5 years
Nov 23, 2009
12,000 homes over 5 years
By Jessica Cheam
Mr Mah noted that HDB had responded quickly to the spike in demand for flats this year by upping its planned flat supply of 6,000 for the year initially, to offering 13,500 flats in total for 2009. -- PHOTO: BT
THE Housing Board (HDB) will offer an estimated 10,000 to 12,000 flats yearly for the next five years to meet growing demand and ensure sufficient housing, said National Development Minister Mah Bow Tan on Monday.
But this number is a projection, he emphasised. 'What actually happens a few years down the road is unknown. Also, demand is not constant; it varies from year to year, depending on economic and other factors,' he said.
This medium-term projection serves as a guide for HDB's build-to-order (BTO) scheme, which is flexible, transparent and responsive to actual demand, said Mr Mah.
Mr Mah was addressing a range of housing issues in Parliament on Monday.
He noted that HDB had responded quickly to the spike in demand for flats this year by upping its planned flat supply of 6,000 for the year initially, to offering 13,500 flats in total for 2009.
For the first time, Mr Mah also revealed on Monday that although HDB's policy is not to deliberately have a buffer of ready flats for home buyers, it does have a stock of ready flats making up about 10 per cent of flat supply.
12,000 homes over 5 years
By Jessica Cheam
Mr Mah noted that HDB had responded quickly to the spike in demand for flats this year by upping its planned flat supply of 6,000 for the year initially, to offering 13,500 flats in total for 2009. -- PHOTO: BT
THE Housing Board (HDB) will offer an estimated 10,000 to 12,000 flats yearly for the next five years to meet growing demand and ensure sufficient housing, said National Development Minister Mah Bow Tan on Monday.
But this number is a projection, he emphasised. 'What actually happens a few years down the road is unknown. Also, demand is not constant; it varies from year to year, depending on economic and other factors,' he said.
This medium-term projection serves as a guide for HDB's build-to-order (BTO) scheme, which is flexible, transparent and responsive to actual demand, said Mr Mah.
Mr Mah was addressing a range of housing issues in Parliament on Monday.
He noted that HDB had responded quickly to the spike in demand for flats this year by upping its planned flat supply of 6,000 for the year initially, to offering 13,500 flats in total for 2009.
For the first time, Mr Mah also revealed on Monday that although HDB's policy is not to deliberately have a buffer of ready flats for home buyers, it does have a stock of ready flats making up about 10 per cent of flat supply.
ST : Cool, not crash property market
Nov 23, 2009
Cool, not crash property market
By Jessica Cheam
Such schemes included the Interest Absorption Scheme and the Interest-Only Loans, which allowed home buyers to defer the bulk of the payment on their home purchase. -- ST PHOTO: DESMOND FOO
MEASURES to cool the property market appear to have had some effect in tempering market exuberance for private homes, said National Development Minister Mah Bow Tan on Monday.
But the government's intention is to 'cool the market, not crash it', said Mr Mah, who did not rule out restoring some of the disallowed schemes in the future.
Such schemes included the Interest Absorption Scheme and the Interest-Only Loans, which allowed home buyers to defer the bulk of the payment on their home purchase.
These schemes were banned with immediate effect in September, when the Government also announced the resumption of the Government Land Sales (GLS) programme to put supply on the market.
Mr Mah noted in Parliament on Monday that latest figures from the Urban Redevelopment Authority (URA) show that sales of private homes by developers fell month-on-month by 37 per cent in September, and a further 29 per cent in October.
'The Government will continue to monitor the property market closely and assess the market's response to the measures introduced before deciding whether further measures are necessary to promote a stable and sustainable property market,' he said.
Cool, not crash property market
By Jessica Cheam
Such schemes included the Interest Absorption Scheme and the Interest-Only Loans, which allowed home buyers to defer the bulk of the payment on their home purchase. -- ST PHOTO: DESMOND FOO
MEASURES to cool the property market appear to have had some effect in tempering market exuberance for private homes, said National Development Minister Mah Bow Tan on Monday.
But the government's intention is to 'cool the market, not crash it', said Mr Mah, who did not rule out restoring some of the disallowed schemes in the future.
Such schemes included the Interest Absorption Scheme and the Interest-Only Loans, which allowed home buyers to defer the bulk of the payment on their home purchase.
These schemes were banned with immediate effect in September, when the Government also announced the resumption of the Government Land Sales (GLS) programme to put supply on the market.
Mr Mah noted in Parliament on Monday that latest figures from the Urban Redevelopment Authority (URA) show that sales of private homes by developers fell month-on-month by 37 per cent in September, and a further 29 per cent in October.
'The Government will continue to monitor the property market closely and assess the market's response to the measures introduced before deciding whether further measures are necessary to promote a stable and sustainable property market,' he said.
ST l Interest rates to stay low
Nov 23, 2009
Interest rates to stay low
Annual average savings rate this year likely to fall below last year's 0.22%
By Francis Chan
The rates of savings accounts are unlikely to rise - at least in the next six months, experts say. -- ST PHOTO: KUA CHEE SIONG
SAVINGS accounts have seen miserly interest rates of below 1 per cent per annum since 2001 - and people hoping for better yields ahead will be disappointed.
The rates are unlikely to rise - at least in the next six months, experts say.
Monthly average savings rates have been on a downward trend from January to last month. This means the annual average rate for this year is likely to dip below last year's already paltry 0.22 per cent.
Rubbing salt into savers' wounds - inflation is likely to rise next year.
Based on figures from 10 banks and financial institutions compiled by the Monetary Authority of Singapore (MAS), savings accounts earned an average of 0.22 per cent a year in January, before holding at just 0.16 per cent from July to last month.
This is a far cry from the 1.28 per cent savers used to get in 2000, which was the last time interest rates exceeded 1 per cent.
Interest rates to stay low
Annual average savings rate this year likely to fall below last year's 0.22%
By Francis Chan
The rates of savings accounts are unlikely to rise - at least in the next six months, experts say. -- ST PHOTO: KUA CHEE SIONG
SAVINGS accounts have seen miserly interest rates of below 1 per cent per annum since 2001 - and people hoping for better yields ahead will be disappointed.
The rates are unlikely to rise - at least in the next six months, experts say.
Monthly average savings rates have been on a downward trend from January to last month. This means the annual average rate for this year is likely to dip below last year's already paltry 0.22 per cent.
Rubbing salt into savers' wounds - inflation is likely to rise next year.
Based on figures from 10 banks and financial institutions compiled by the Monetary Authority of Singapore (MAS), savings accounts earned an average of 0.22 per cent a year in January, before holding at just 0.16 per cent from July to last month.
This is a far cry from the 1.28 per cent savers used to get in 2000, which was the last time interest rates exceeded 1 per cent.
ST : Early boost to Sentosa IR
Nov 23, 2009
Early boost to Sentosa IR
The biggest event, the 11th World Chinese Entrepreneurs Convention, will see 4,000 business leaders gather at the Sentosa integrated resort. -- PHOTO: RESORTS WORLD SENTOSA
IN AN early boost ahead of its opening, Resorts World at Sentosa (RWS) has secured 30 bookings for events to be hosted at the integrated resort starting next year.
The biggest event, the 11th World Chinese Entrepreneurs Convention, will see 4,000 business leaders gather at the Sentosa integrated resort for a corporate pow-wow from Oct 5 to 7.
Securing such business events, known in the industry as meetings, incentives, conventions and exhibitions (Mice), are important as business travellers are bigger spenders and a target group that Singapore Tourism Board wishes to grow.
RWS director of Mice Elena Arabadjieva, said: "As the world's economy recovers, we are getting strong interest from organisers for events from 2010 to as far ahead as 2014 and that gives us great confidence in Singapore's meetings and incentive travel sector in the mid to long term."
Events secured by RWS include the Asia Pacific Retailers Convention in 2011 and the 10th Asia Pacific Congress of Endoscopic Surgery in 2011. Besides inking the 30 contracts, the IR is also in talks with another 150 organisers for events up to 2015.
Marina Bay Sands, too, has been signing up Mice events. The events being lined include the 3rd Sea Asia Conference and Exhibition in 2011, the Industrial Fabrics Association International Expo Asia in 2011 and the 77th UFI Congress by the Global Association of the Exhibition Industry next year.
Early boost to Sentosa IR
The biggest event, the 11th World Chinese Entrepreneurs Convention, will see 4,000 business leaders gather at the Sentosa integrated resort. -- PHOTO: RESORTS WORLD SENTOSA
IN AN early boost ahead of its opening, Resorts World at Sentosa (RWS) has secured 30 bookings for events to be hosted at the integrated resort starting next year.
The biggest event, the 11th World Chinese Entrepreneurs Convention, will see 4,000 business leaders gather at the Sentosa integrated resort for a corporate pow-wow from Oct 5 to 7.
Securing such business events, known in the industry as meetings, incentives, conventions and exhibitions (Mice), are important as business travellers are bigger spenders and a target group that Singapore Tourism Board wishes to grow.
RWS director of Mice Elena Arabadjieva, said: "As the world's economy recovers, we are getting strong interest from organisers for events from 2010 to as far ahead as 2014 and that gives us great confidence in Singapore's meetings and incentive travel sector in the mid to long term."
Events secured by RWS include the Asia Pacific Retailers Convention in 2011 and the 10th Asia Pacific Congress of Endoscopic Surgery in 2011. Besides inking the 30 contracts, the IR is also in talks with another 150 organisers for events up to 2015.
Marina Bay Sands, too, has been signing up Mice events. The events being lined include the 3rd Sea Asia Conference and Exhibition in 2011, the Industrial Fabrics Association International Expo Asia in 2011 and the 77th UFI Congress by the Global Association of the Exhibition Industry next year.
BT : Curbs on property speculation 'have had some effect': Mah Bow Tan
Business Times - 23 Nov 2009
Curbs on property speculation 'have had some effect': Mah Bow Tan
By EMILYN YAP
The anti-speculative measures implemented by the government in September to cool the property market have worked, said National Development Minister Mah Bow Tan in Parliament on Monday.
'These measures appear to have had some effect in tempering the exuberance in the private housing market,' he noted.
The government on September 14 announced a package of measures to prevent a property bubble from forming. One of these measures was the removal of the Interest Absorption Scheme and the Interest-Only Loans (IOL).
Another was the resumption of land sales on the Confirmed List for the first half of 2010.
Curbs on property speculation 'have had some effect': Mah Bow Tan
By EMILYN YAP
The anti-speculative measures implemented by the government in September to cool the property market have worked, said National Development Minister Mah Bow Tan in Parliament on Monday.
'These measures appear to have had some effect in tempering the exuberance in the private housing market,' he noted.
The government on September 14 announced a package of measures to prevent a property bubble from forming. One of these measures was the removal of the Interest Absorption Scheme and the Interest-Only Loans (IOL).
Another was the resumption of land sales on the Confirmed List for the first half of 2010.
BT : HDB does not price flats on cost plus profit basis: Mah Bow Tan
Business Times - 23 Nov 2009
HDB does not price flats on cost plus profit basis: Mah Bow Tan
By EMILYN YAP
The Housing and Development Board (HDB) does not price its flats on a cost-plus-profit basis, but on 'market price less a generous discount', said National Development Minister Mah Bow Tan in Parliament on Monday.
He shared that the total cost of building flats varies depending on when, where and what HDB builds. The cost includes the cost of land as well as the constuction costs of flats and ancillary services. The total cost can vary from $230,000 for a 3-room flat in Punggol to $530,000 for a 5-room flat in Tiong Bahru.
'Together with the Additional Housing Grant which varies from $5,000 -$40,000... on average the subsidies amount to about 20 per cent of the market price for 4-room flats. It will be even more for smaller flats. This is the subsidy given to all first-time buyers, to keep the flats affordable.'
HDB does not price flats on cost plus profit basis: Mah Bow Tan
By EMILYN YAP
The Housing and Development Board (HDB) does not price its flats on a cost-plus-profit basis, but on 'market price less a generous discount', said National Development Minister Mah Bow Tan in Parliament on Monday.
He shared that the total cost of building flats varies depending on when, where and what HDB builds. The cost includes the cost of land as well as the constuction costs of flats and ancillary services. The total cost can vary from $230,000 for a 3-room flat in Punggol to $530,000 for a 5-room flat in Tiong Bahru.
'Together with the Additional Housing Grant which varies from $5,000 -$40,000... on average the subsidies amount to about 20 per cent of the market price for 4-room flats. It will be even more for smaller flats. This is the subsidy given to all first-time buyers, to keep the flats affordable.'
ST : Bugis office block sold to private school
Nov 23, 2009
Bugis office block sold to private school
By Joyce Teo
An artist's impression of the ERC campus in North Bridge Road, which will house state-of-the-art classrooms, a library and cafes. -- PHOTO: ERC INSTITUTE
A DULL-LOOKING office block just behind Bugis Junction has been sold and will be renovated for use as a campus for private school ERC Institute.
ERC Holdings, which owns the school, bought nearly all of the 999-year leasehold building in North Bridge Road for
$46 million earlier this month from City Developments. With 60 units, or 38,534 sq ft, ERC now owns 91.3 per cent of the strata-titled development.
It plans to spend between $3.5 million and $5 million to renovate the six-storey block, said ERC Holdings chief executive Andy Ong.
The price, which works out to about $1,194 per sq ft based on strata area, is considered fair as such space is hard to find in the city, said Mr Shaun Poh of DTZ, who sealed the deal. Mr Ong said he took 15 months to find the space.
Currently, ERC Institute, which has 2,000 students, operates out of two sites: a campus in River Valley Road and an office unit in Robinson Centre. Its most popular programme covers entrepreneurship.
Come September next year, when its long-term lease at Robinson Centre ends, ERC Holdings will give up that space and move to the Bugis building, tentatively named ERC Complex.
'By 2012, we hope to get 6,000 to 8,000 students, of which 3,000 to 4,000 will be in Singapore,' said Mr Ong.
ERC has started operations elsewhere in the region, including in Indonesia.
After the renovation, the new building will offer better facilities than the existing campuses, said Mr Ong.
It will have at least two cafes serving a variety of cuisines, a library, a student rest area and a recreation area.
About 30 to 40 state-of-the-art classrooms will be spread over three levels.
One floor will be reserved for the corporate office of ERC Holdings.
The ground floor has retail space, currently taken by a hair salon and a noodle shop. This Fashion has just moved out.
Nearby, another small office block, Premier Centre, could also be transformed. Budget hotel operator Fragrance Group bought it in July for $18 million, or $1,076 per sq ft, from a Hong Leong Group unit, and might turn it into a hotel.
Bugis office block sold to private school
By Joyce Teo
An artist's impression of the ERC campus in North Bridge Road, which will house state-of-the-art classrooms, a library and cafes. -- PHOTO: ERC INSTITUTE
A DULL-LOOKING office block just behind Bugis Junction has been sold and will be renovated for use as a campus for private school ERC Institute.
ERC Holdings, which owns the school, bought nearly all of the 999-year leasehold building in North Bridge Road for
$46 million earlier this month from City Developments. With 60 units, or 38,534 sq ft, ERC now owns 91.3 per cent of the strata-titled development.
It plans to spend between $3.5 million and $5 million to renovate the six-storey block, said ERC Holdings chief executive Andy Ong.
The price, which works out to about $1,194 per sq ft based on strata area, is considered fair as such space is hard to find in the city, said Mr Shaun Poh of DTZ, who sealed the deal. Mr Ong said he took 15 months to find the space.
Currently, ERC Institute, which has 2,000 students, operates out of two sites: a campus in River Valley Road and an office unit in Robinson Centre. Its most popular programme covers entrepreneurship.
Come September next year, when its long-term lease at Robinson Centre ends, ERC Holdings will give up that space and move to the Bugis building, tentatively named ERC Complex.
'By 2012, we hope to get 6,000 to 8,000 students, of which 3,000 to 4,000 will be in Singapore,' said Mr Ong.
ERC has started operations elsewhere in the region, including in Indonesia.
After the renovation, the new building will offer better facilities than the existing campuses, said Mr Ong.
It will have at least two cafes serving a variety of cuisines, a library, a student rest area and a recreation area.
About 30 to 40 state-of-the-art classrooms will be spread over three levels.
One floor will be reserved for the corporate office of ERC Holdings.
The ground floor has retail space, currently taken by a hair salon and a noodle shop. This Fashion has just moved out.
Nearby, another small office block, Premier Centre, could also be transformed. Budget hotel operator Fragrance Group bought it in July for $18 million, or $1,076 per sq ft, from a Hong Leong Group unit, and might turn it into a hotel.
ST : Timing of HDB tax hike 'avoids bigger increases later'
Nov 23, 2009
Timing of HDB tax hike 'avoids bigger increases later'
By Sue-Ann Chia, Senior Political Correspondent
THE property tax of HDB flats is being raised next year partly to avoid having to introduce a bigger increase later should home prices continue to rise, said Acting Minister for Information, Communications and the Arts Lui Tuck Yew.
He gave the reason yesterday, after being asked at a dialogue with Aljunied-Hougang residents whether the Government could delay it, as the recession has just started to ease.
Noting that the adjustment had been delayed once, Rear-Admiral (NS) Lui said: 'The problem is, the longer you defer it, the larger the increase will be...if HDB prices continue to go up.'
He also pointed out that the Government is taking steps to soften the impact of the tax rise early next year. It is giving HDB homeowners a one-off rebate, set at 50per cent of the property tax payable and capped at $120. This means low-income families with homes whose property tax is $50 and less will not have to pay any such tax next year.
The property tax rate is 10 per cent of a property's annual value, although homes that are owner-occupied enjoy a concessionary 4 per cent tax rate. The annual value has increased with rising property prices.
HDB resale prices have risen a hefty 31.2per cent in the past two years, and a further 3.8per cent in the first nine months of this year.
Hence, the Government has decided to raise the property tax 'to reflect the prevailing movement of HDB prices and also to give rebates', said Rear-Adm Lui.
He also addressed residents' concerns about the affordability of HDB flats.
Noting that existing owners gain from their asset's increasing value, he said: 'If they eventually need to sell...(it) releases more money for their old age.'
But the anxieties of those planning to buy a flat are not lost on him. He assured them that an HDB flat would not be beyond their means, saying that the Ministry of National Development has matched the prices of different flat types against the salaries of different groups of people in the population. 'It tries to make sure that for every group, there is a flat type that meets their needs,' he said.
In doing so, it aims for homeowners to pay no more than 30per cent of their salary every month towards their home loan.
More than 75per cent of HDB dwellers use only the contributions to their CPF savings to make their monthly loan payments, he said, urging residents to buy what is affordable.
Timing of HDB tax hike 'avoids bigger increases later'
By Sue-Ann Chia, Senior Political Correspondent
THE property tax of HDB flats is being raised next year partly to avoid having to introduce a bigger increase later should home prices continue to rise, said Acting Minister for Information, Communications and the Arts Lui Tuck Yew.
He gave the reason yesterday, after being asked at a dialogue with Aljunied-Hougang residents whether the Government could delay it, as the recession has just started to ease.
Noting that the adjustment had been delayed once, Rear-Admiral (NS) Lui said: 'The problem is, the longer you defer it, the larger the increase will be...if HDB prices continue to go up.'
He also pointed out that the Government is taking steps to soften the impact of the tax rise early next year. It is giving HDB homeowners a one-off rebate, set at 50per cent of the property tax payable and capped at $120. This means low-income families with homes whose property tax is $50 and less will not have to pay any such tax next year.
The property tax rate is 10 per cent of a property's annual value, although homes that are owner-occupied enjoy a concessionary 4 per cent tax rate. The annual value has increased with rising property prices.
HDB resale prices have risen a hefty 31.2per cent in the past two years, and a further 3.8per cent in the first nine months of this year.
Hence, the Government has decided to raise the property tax 'to reflect the prevailing movement of HDB prices and also to give rebates', said Rear-Adm Lui.
He also addressed residents' concerns about the affordability of HDB flats.
Noting that existing owners gain from their asset's increasing value, he said: 'If they eventually need to sell...(it) releases more money for their old age.'
But the anxieties of those planning to buy a flat are not lost on him. He assured them that an HDB flat would not be beyond their means, saying that the Ministry of National Development has matched the prices of different flat types against the salaries of different groups of people in the population. 'It tries to make sure that for every group, there is a flat type that meets their needs,' he said.
In doing so, it aims for homeowners to pay no more than 30per cent of their salary every month towards their home loan.
More than 75per cent of HDB dwellers use only the contributions to their CPF savings to make their monthly loan payments, he said, urging residents to buy what is affordable.
BT : Subsales in past 2 quarters among highest since 1995
Business Times - 23 Nov 2009
Subsales in past 2 quarters among highest since 1995
Completion of large condo projects near MRT stations helps to boost demand
By KALPANA RASHIWALA
(SINGAPORE) The number of subsales in the second and third quarters of this year were among the six highest quarterly figures since 1995 - reflecting the build-up in subsale activity that led to the government announcing measures on Sept 14 to cool property prices.
The completion of several condos this year - many of them large projects, close to MRT stations or near new projects launched this year - helped to boost their demand in the subsale market.
As well, the rise in private home prices this year has given sellers an incentive to let go units bought earlier.
Savills Singapore's analysis of caveats captured by URA's Realis system as at Nov 17 showed that 1,249 caveats were lodged for subsales of private apartments and condos in Q3 this year, a tad below the 1,300 caveats in Q2.
Since 1995 (when the Realis caveats database was first set up), there had been four other quarters when subsales of condos/apart- ments exceeded the 1,000 mark - during the 1996 and 2007 property market highs.
In Q2 and Q3 2007, subsales hit 1,857 and 1,534 respectively; in Q1 and Q2 1996, subsales were 1,238 and 1,650.
Projects that topped the subsales charts in Q2 and Q3 this year had generally been launched a few years ago and many of them were completed this year. Examples include Rivergate in the Robertson Quay area, Casa Merah near Tanah Merah MRT Station, City Square Residences along Kitchener Road, The Metropolitan Condo in the Alexandra Road area, The Centris in Jurong and Botannia in West Coast.
Projects that have been recently completed or which are nearing completion offer added appeal to potential buyers keen to move in or rent them out soon.
Giving a seller's perspective, Knight Frank chairman Tan Tiong Cheng said: 'If they bought their properties with the intention of leasing them out and if they find today's rental market challenging, it may make sense to simply cash out, especially if they can make a profit.'
Savills' lists of the most popular projects in the subsale market in Q2 and Q3 2009 did not include developments launched this year, with the exception of The Quartz, which was relaunched this year.
'Those who bought projects launched this year would find it harder to flip because their entry price may already be very high,' says Lee Hon Kiun, owner of Landmark Property Advisers.
Subsales refer to secondary market transactions in projects that have yet to receive Certificate of Statutory Completion. This can take place three to 12 months after Temporary Occupation Permit (TOP).
While subsales are often tracked as a gauge of speculative activity, Mr Lee hesitates to equate the increase in subsales in Q2 and Q3 this year with speculation. 'Those who bought two to three years ago and sold this year... in the Singapore context, that's a very long time,' he chuckled. 'Speculation is when people buy a property and flip it within six months to make a profit,' he added.
Savills senior manager (research and consultancy) Christine Sun said new property launches by developers also fuelled subsale interest for nearby projects released a few years ago. For example, the release of Alexis, Ascentia Sky and Interlace in the Alexandra Road area could have helped subsales at The Metropolitan Condo nearby, which was completed this year.
Agreeing, Landmark's Mr Lee said buyers can pick up more attractive buys in the subsale market for earlier launched projects than at new launches in the same area.
A developer said: 'Personally, I advise friends to buy in subsale projects as prices are discounted to new launches.'
HDB upgraders bought 39 per cent of the 1,300 private apartments/condos transacted in the subsale market in Q2 this year, although the figure has slipped to 36.6 per cent in Q3 and 33.7 per cent in October. Nonetheless, these figures are higher than HDB residents' 20.8 and 23.1 per cent share of subsale purchases during the property bull market in Q2 and Q3 2007.
Analysts say the jump in HDB resale flat prices has narrowed the price gap with private housing and made it easier for HDB dwellers to upgrade to a private home; and the subsale market offers a ready supply of recently completed homes that are ready for occupation.
Secondly, existing HDB flat dwellers looking for a bigger home may be deterred from picking one up from the HDB resale market because of high prevailing cash over valuation premiums. 'If they fork out a little more cash, they could foot the downpayment for a private condo in the subsale market instead,' said the developer.
Savills also provided monthly subsales data for non-landed private homes, which showed that for this year, the figure peaked at 596 in June.
It has since declined to 483 in July, 441 in August, 325 in Sept and just 184 in October - as at Nov 17 when Savills extracted the Realis data. It also observed an increase in the number of foreigners (including permanent residents) snapping up condos and apartments in the subsale market. Their share of purchases in the subsale market rose to about 31 per cent in Q3 this year and 33 per cent in October - from 21 per cent in Q1 2009.
Between 2007 and the first 10 months of 2009, Indonesians were the top buyers in the subsale market, followed by Malaysians, mainland Chinese, Indians and UK nationals.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Subsales in past 2 quarters among highest since 1995
Completion of large condo projects near MRT stations helps to boost demand
By KALPANA RASHIWALA
(SINGAPORE) The number of subsales in the second and third quarters of this year were among the six highest quarterly figures since 1995 - reflecting the build-up in subsale activity that led to the government announcing measures on Sept 14 to cool property prices.
The completion of several condos this year - many of them large projects, close to MRT stations or near new projects launched this year - helped to boost their demand in the subsale market.
As well, the rise in private home prices this year has given sellers an incentive to let go units bought earlier.
Savills Singapore's analysis of caveats captured by URA's Realis system as at Nov 17 showed that 1,249 caveats were lodged for subsales of private apartments and condos in Q3 this year, a tad below the 1,300 caveats in Q2.
Since 1995 (when the Realis caveats database was first set up), there had been four other quarters when subsales of condos/apart- ments exceeded the 1,000 mark - during the 1996 and 2007 property market highs.
In Q2 and Q3 2007, subsales hit 1,857 and 1,534 respectively; in Q1 and Q2 1996, subsales were 1,238 and 1,650.
Projects that topped the subsales charts in Q2 and Q3 this year had generally been launched a few years ago and many of them were completed this year. Examples include Rivergate in the Robertson Quay area, Casa Merah near Tanah Merah MRT Station, City Square Residences along Kitchener Road, The Metropolitan Condo in the Alexandra Road area, The Centris in Jurong and Botannia in West Coast.
Projects that have been recently completed or which are nearing completion offer added appeal to potential buyers keen to move in or rent them out soon.
Giving a seller's perspective, Knight Frank chairman Tan Tiong Cheng said: 'If they bought their properties with the intention of leasing them out and if they find today's rental market challenging, it may make sense to simply cash out, especially if they can make a profit.'
Savills' lists of the most popular projects in the subsale market in Q2 and Q3 2009 did not include developments launched this year, with the exception of The Quartz, which was relaunched this year.
'Those who bought projects launched this year would find it harder to flip because their entry price may already be very high,' says Lee Hon Kiun, owner of Landmark Property Advisers.
Subsales refer to secondary market transactions in projects that have yet to receive Certificate of Statutory Completion. This can take place three to 12 months after Temporary Occupation Permit (TOP).
While subsales are often tracked as a gauge of speculative activity, Mr Lee hesitates to equate the increase in subsales in Q2 and Q3 this year with speculation. 'Those who bought two to three years ago and sold this year... in the Singapore context, that's a very long time,' he chuckled. 'Speculation is when people buy a property and flip it within six months to make a profit,' he added.
Savills senior manager (research and consultancy) Christine Sun said new property launches by developers also fuelled subsale interest for nearby projects released a few years ago. For example, the release of Alexis, Ascentia Sky and Interlace in the Alexandra Road area could have helped subsales at The Metropolitan Condo nearby, which was completed this year.
Agreeing, Landmark's Mr Lee said buyers can pick up more attractive buys in the subsale market for earlier launched projects than at new launches in the same area.
A developer said: 'Personally, I advise friends to buy in subsale projects as prices are discounted to new launches.'
HDB upgraders bought 39 per cent of the 1,300 private apartments/condos transacted in the subsale market in Q2 this year, although the figure has slipped to 36.6 per cent in Q3 and 33.7 per cent in October. Nonetheless, these figures are higher than HDB residents' 20.8 and 23.1 per cent share of subsale purchases during the property bull market in Q2 and Q3 2007.
Analysts say the jump in HDB resale flat prices has narrowed the price gap with private housing and made it easier for HDB dwellers to upgrade to a private home; and the subsale market offers a ready supply of recently completed homes that are ready for occupation.
Secondly, existing HDB flat dwellers looking for a bigger home may be deterred from picking one up from the HDB resale market because of high prevailing cash over valuation premiums. 'If they fork out a little more cash, they could foot the downpayment for a private condo in the subsale market instead,' said the developer.
Savills also provided monthly subsales data for non-landed private homes, which showed that for this year, the figure peaked at 596 in June.
It has since declined to 483 in July, 441 in August, 325 in Sept and just 184 in October - as at Nov 17 when Savills extracted the Realis data. It also observed an increase in the number of foreigners (including permanent residents) snapping up condos and apartments in the subsale market. Their share of purchases in the subsale market rose to about 31 per cent in Q3 this year and 33 per cent in October - from 21 per cent in Q1 2009.
Between 2007 and the first 10 months of 2009, Indonesians were the top buyers in the subsale market, followed by Malaysians, mainland Chinese, Indians and UK nationals.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
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