Jan 12, 2010
INCOME CEILING FOR HDB FLATS
It limits price hikes
MS YVON Lim's unhappiness in her letter last Wednesday ('How realistic is $8,000 income ceiling for flats?') probably echoes the sentiment of many first-time home buyers who feel priced out because of the rapid and relentless price spike of HDB resale flats.
But the issue is one of affordability. So suggesting that the $8,000 income ceiling be raised, so that one can avoid the 5 per cent cash down payment and be able to afford the exorbitant cash-over-valuation (COV) amount that sellers demand, is naive.
The only outcome of removing the income ceiling will be ever higher resale prices and even heftier COV demands.
In any exuberant market, the combination of fear and greed will always push prices higher, regardless of the rate or quantum of increase over earlier prices.
The two major factors that might reverse such situations tend to be successful regulation by the authorities to prevent further price appreciation, or if prices have exceeded the ability of the general population to afford the flats.
In view of this, potential buyers should be glad that the somewhat irrelevant income ceiling is still in place, limiting the rate of price escalation; the 5 per cent down payment and COV are pricing out more buyers like Ms Lim and, in the process, slowing down and preventing even higher resale prices.
If I were a buyer, I would keep my fingers crossed, and hope the Government will impose drastic measures to rein in market exuberance.
Thursday, January 14, 2010
ST : Land plans cater to growing population
Jan 12, 2010
Land plans cater to growing population
By Jessica Cheam
SINGAPORE'S system of land use planning ensures that the infrastructure and amenities are adequate to meet the needs of a growing population, said the Senior Minister of State for National Development, Ms Grace Fu, yesterday.
She told Parliament that enough land is provided for supporting facilities and infrastructure such as parks.
'Additional infrastructure is set aside when we release (land) parcels... In our planning system, we've taken into consideration the planned residential area.
'So when new parcels of land are being released, that will ensure that there's sufficient infrastructure, including roads, as well as recreational needs (that) are already provided for in the area. That goes for new estates as well as mature estates,' she said.
Ms Fu was responding to questions by MPs Jessica Tan (East Coast GRC) and Muhammad Faishal Ibrahim (Marine Parade GRC) on whether existing infrastructure can meet growing population needs and whether reviews are being conducted to assess the impact of this growth.
The questions come amid growing concern that a larger population, boosted mainly by immigrants, will strain facilities and infrastructure.
Ms Fu said that as part of the Concept Plan 2011 Review, which the ministry began last July, the public will be consulted for feedback on how to optimise land use.
The Concept Plan 2011 is a major review of Singapore's long-term land use strategies to cater to the changing needs of a growing economy and population.
Ms Fu said the Government will also create an additional 900ha of parkland and triple park connectors by 2020. Major improvements will be made to the transport network.
'We will plan for higher density housing and commercial uses around these transport nodes to provide greater connectivity to our population,' she said.
Still, she noted that there will be cases where 'short-term demand may not be easily met'.
'It's very hard to predict demand accurately, especially when you look at supply of commercial as well as residential buildings, there's always a lead time involved. So we will do our best to try to reduce the volatility in the market,' she said.
'But it is not possible to predict demand accurately because we can never foresee conditions that may affect Singapore, such as the dip in demand in the last 18 months. So that's really what we plan to do in our planning horizon.'
On a query by Dr Muhammad about bringing forward the rejuvenation of heartland housing estates, Ms Fu said this was something 'that we have been doing all the time'. For example, lift upgrading is a focus as many elderly residents have been asking for lift access.
'But we have been undertaking home improvement programmes as well as neighbourhood renewal programmes. That's to continuously remake, rejuvenate our housing estates to make them more suitable for our current population,' she added.
Land plans cater to growing population
By Jessica Cheam
SINGAPORE'S system of land use planning ensures that the infrastructure and amenities are adequate to meet the needs of a growing population, said the Senior Minister of State for National Development, Ms Grace Fu, yesterday.
She told Parliament that enough land is provided for supporting facilities and infrastructure such as parks.
'Additional infrastructure is set aside when we release (land) parcels... In our planning system, we've taken into consideration the planned residential area.
'So when new parcels of land are being released, that will ensure that there's sufficient infrastructure, including roads, as well as recreational needs (that) are already provided for in the area. That goes for new estates as well as mature estates,' she said.
Ms Fu was responding to questions by MPs Jessica Tan (East Coast GRC) and Muhammad Faishal Ibrahim (Marine Parade GRC) on whether existing infrastructure can meet growing population needs and whether reviews are being conducted to assess the impact of this growth.
The questions come amid growing concern that a larger population, boosted mainly by immigrants, will strain facilities and infrastructure.
Ms Fu said that as part of the Concept Plan 2011 Review, which the ministry began last July, the public will be consulted for feedback on how to optimise land use.
The Concept Plan 2011 is a major review of Singapore's long-term land use strategies to cater to the changing needs of a growing economy and population.
Ms Fu said the Government will also create an additional 900ha of parkland and triple park connectors by 2020. Major improvements will be made to the transport network.
'We will plan for higher density housing and commercial uses around these transport nodes to provide greater connectivity to our population,' she said.
Still, she noted that there will be cases where 'short-term demand may not be easily met'.
'It's very hard to predict demand accurately, especially when you look at supply of commercial as well as residential buildings, there's always a lead time involved. So we will do our best to try to reduce the volatility in the market,' she said.
'But it is not possible to predict demand accurately because we can never foresee conditions that may affect Singapore, such as the dip in demand in the last 18 months. So that's really what we plan to do in our planning horizon.'
On a query by Dr Muhammad about bringing forward the rejuvenation of heartland housing estates, Ms Fu said this was something 'that we have been doing all the time'. For example, lift upgrading is a focus as many elderly residents have been asking for lift access.
'But we have been undertaking home improvement programmes as well as neighbourhood renewal programmes. That's to continuously remake, rejuvenate our housing estates to make them more suitable for our current population,' she added.
Monday, January 11, 2010
ASIA ONE : Sell flat for $300,000 profit? No way
Sell flat for $300,000 profit? No way
Out of 60 residents polled, 58 say they are staying put in popular HDB estate.
Mon, Jan 11, 2010
The New Paper
By Desmond Ng with additional reporting by Aretha Loh, Lim Wei Li, Nurul Asyikin Nasir, Samuel Wee and Woo Sian Boon
RETIREE Wang Mei Ling is sitting on a potential profit of about $300,000 for her HDB flat in a prime location. But she's far from happy.
Every day, she contends with a letter box stuffed with brochures and flyers from property firms. Flyers are also often stuck into the front grille of the flats there.
Residents like Madam Wang, 53, are also plagued by cold calls from agents every day, bugging them to sell their homes. Sometimes they even get accosted by agents at lift landings.
This is the flip side to the HDB property boom. Residents say they are constantly hounded despite their insistence that they don't want to sell.
Madam Wang lives in one of the most premium HDB estates - Kim Tian Road at Bukit Merah - where prices are among the highest of the 25 public housing estates.
Highest price
The highest transacted price for a five-room flat there was $668,000 last November, based on resale transactions on HDB's website. Part of the attraction is the proximity to Raffles Place, a five-minutes bus ride away.
An agent who sells a five-room flat here for $650,000 can pocket about $13,000 (if paid 2 per cent commission). These flats were built under the Selective En-bloc Redevelopment Scheme (Sers) in the late 1990s.
The New Paper spoke to 60 residents living in the four blocks there and almost all were unhappy with the hounding and the flyers.
Madam Wang, who lives with her husband and two sons, said the cold calls and flyers began during the property boom in 2007. She bought her four-room flat from HDB for $250,000 in 2000 under the Sers programme.
Said Madam Wang in Mandarin: "There are so many flyers daily that I have no use for except to pick up my dog's poo."
Another resident, who only wanted to be known as Mrs Loh, said she's annoyed by the unsolicited calls from agents. The designer said: "In December, I received two such calls. When I asked them how they got my number, they just said that they have their ways."
A 69-year-old retiree, Mr Tham F L, who receives two to three flyers every day, said: "I just chuck them in the bin without reading. What for when we don't intend to sell?"
Top dollar
PropNex's chief executive, Mr Mohamed Ismail, said this estate gets more attention from agents because there is strong demand from potential buyers willing to pay top dollar.
He said: "These are considered lucrative properties. The commission from a successful deal can be quite high. Hence there is a lot of door-knocking and telemarketing done in that area."
Though they stand to make a sizeable profit, 58 of the 60 residents interviewed said they are not interested in selling.
Forty-one of the 60 had bought directly from HDB.
Most would have paid between $300,000 and $400,000 for their new five-room flats in 2000, depending on which floor they are on. Today, the units would fetch at least $600,000.
HDB resale prices rose 8 per cent last year, despite the economic slowdown. Administrator Peter See, 51, said he'll only sell his five-room flat if some "joker offers me at least $800,000". He paid $385,000 for it nine years ago.
Mr See said: "Even if I manage to sell my place at the market price today, I would have to buy high too, unless I downgrade to a smaller unit or move away from this area." Mr See lives with his wife and daughter in a 1,237-sq ft unit. He likes the convenience of having Tiong Bahru MRT station only a five-minute stroll away.
Retiree Fong Shao Chuan, 71, did sell his four-room flat for $540,000 in June last year. He paid HDB $270,000 for it nine years ago. He said he did it to help finance his daughter's $600,000 purchase of a new five-room flat in Pinnacle@Duxton.
Said Mr Fong in Mandarin: "I wouldn't have sold my flat if I didn't have to help my daughter. I am going to move in with her to take care of my grandchildren."
PropNex's Mr Ismail said flats in this estate command a premium due to its proximity to town. They are also newer than other flats in that area.
He said: "If these home-owners want to continue a certain lifestyle - the convenience of living near town - they'll have to pay a high price for a replacement unit in that estate.
"For those who are still working and can afford the monthly instalments, there's no urgency to sell."
And there's the possibility of their units fetching even higher prices in the future, he added.
Out of 60 residents polled, 58 say they are staying put in popular HDB estate.
Mon, Jan 11, 2010
The New Paper
By Desmond Ng with additional reporting by Aretha Loh, Lim Wei Li, Nurul Asyikin Nasir, Samuel Wee and Woo Sian Boon
RETIREE Wang Mei Ling is sitting on a potential profit of about $300,000 for her HDB flat in a prime location. But she's far from happy.
Every day, she contends with a letter box stuffed with brochures and flyers from property firms. Flyers are also often stuck into the front grille of the flats there.
Residents like Madam Wang, 53, are also plagued by cold calls from agents every day, bugging them to sell their homes. Sometimes they even get accosted by agents at lift landings.
This is the flip side to the HDB property boom. Residents say they are constantly hounded despite their insistence that they don't want to sell.
Madam Wang lives in one of the most premium HDB estates - Kim Tian Road at Bukit Merah - where prices are among the highest of the 25 public housing estates.
Highest price
The highest transacted price for a five-room flat there was $668,000 last November, based on resale transactions on HDB's website. Part of the attraction is the proximity to Raffles Place, a five-minutes bus ride away.
An agent who sells a five-room flat here for $650,000 can pocket about $13,000 (if paid 2 per cent commission). These flats were built under the Selective En-bloc Redevelopment Scheme (Sers) in the late 1990s.
The New Paper spoke to 60 residents living in the four blocks there and almost all were unhappy with the hounding and the flyers.
Madam Wang, who lives with her husband and two sons, said the cold calls and flyers began during the property boom in 2007. She bought her four-room flat from HDB for $250,000 in 2000 under the Sers programme.
Said Madam Wang in Mandarin: "There are so many flyers daily that I have no use for except to pick up my dog's poo."
Another resident, who only wanted to be known as Mrs Loh, said she's annoyed by the unsolicited calls from agents. The designer said: "In December, I received two such calls. When I asked them how they got my number, they just said that they have their ways."
A 69-year-old retiree, Mr Tham F L, who receives two to three flyers every day, said: "I just chuck them in the bin without reading. What for when we don't intend to sell?"
Top dollar
PropNex's chief executive, Mr Mohamed Ismail, said this estate gets more attention from agents because there is strong demand from potential buyers willing to pay top dollar.
He said: "These are considered lucrative properties. The commission from a successful deal can be quite high. Hence there is a lot of door-knocking and telemarketing done in that area."
Though they stand to make a sizeable profit, 58 of the 60 residents interviewed said they are not interested in selling.
Forty-one of the 60 had bought directly from HDB.
Most would have paid between $300,000 and $400,000 for their new five-room flats in 2000, depending on which floor they are on. Today, the units would fetch at least $600,000.
HDB resale prices rose 8 per cent last year, despite the economic slowdown. Administrator Peter See, 51, said he'll only sell his five-room flat if some "joker offers me at least $800,000". He paid $385,000 for it nine years ago.
Mr See said: "Even if I manage to sell my place at the market price today, I would have to buy high too, unless I downgrade to a smaller unit or move away from this area." Mr See lives with his wife and daughter in a 1,237-sq ft unit. He likes the convenience of having Tiong Bahru MRT station only a five-minute stroll away.
Retiree Fong Shao Chuan, 71, did sell his four-room flat for $540,000 in June last year. He paid HDB $270,000 for it nine years ago. He said he did it to help finance his daughter's $600,000 purchase of a new five-room flat in Pinnacle@Duxton.
Said Mr Fong in Mandarin: "I wouldn't have sold my flat if I didn't have to help my daughter. I am going to move in with her to take care of my grandchildren."
PropNex's Mr Ismail said flats in this estate command a premium due to its proximity to town. They are also newer than other flats in that area.
He said: "If these home-owners want to continue a certain lifestyle - the convenience of living near town - they'll have to pay a high price for a replacement unit in that estate.
"For those who are still working and can afford the monthly instalments, there's no urgency to sell."
And there's the possibility of their units fetching even higher prices in the future, he added.
ST : More Singaporeans have weekend homes in Iskandar, Johor
Jan 11, 2010
More Singaporeans have weekend homes in Iskandar, Johor
Four in 10 residents in south Johor special zone are Singaporean
By Kimberly Spykerman & Teh Joo Lin
AFTER a leisurely lunch on his patio, Mr Zulkifli Mansor can walk out to a putting green and practise a few strokes of golf - and he doesn't even have to leave his home.
From his balcony, Mr Tio Hong Tjoen sometimes casts a reel into the stream winding around his home. The Singapore permanent resident has caught fish weighing up to 3kg.
Mr Zulkifli, a 47-year-old civil servant, and Mr Tio, 53, who is in the furniture business, are among an increasing number of Singaporeans and permanent residents buying high-end homes across the Causeway, mainly as weekend residences.
From his doorstep, Mr Zulkifli can point out eight other properties belonging to Singaporeans in a neighbourhood of about 170 homes.
'In fact, the first group to welcome us to the neighbourhood was Singaporean,' he told The Straits Times. He bought his home about three months ago as a holiday retreat for his wife and son. His mother-in-law and sister-in-law live there permanently.
His two-storey house is in a gated estate fronted by burly security guards - a far cry from the days when Singaporean-owned homes in Johor Baru made headlines as prime targets for burglaries.
And with relatively few restrictions on home ownership in Malaysia - the houses have to be at least two-storeys high and until recently had to cost a minimum of just RM250,000 (S$103,000)- Singaporeans are finding it a breeze across the border. The minimum cost has just doubled to RM500,000.
Mr Zulkifli's roomy 2,140 sq ft house sits in a lush garden and cost him RM298,000 - much less than what he would have had to fork out for a three-room HDB flat here.
'Every month I pay a $630 instalment on the house which is less than the $800 I pay for my car - and I can't live in my car!' he quips.
Mr Zulkifli's house is on an estate known as Nusa Idaman, one of at least four sprawling housing estates within South Johor's Iskandar Malaysia project, which is being touted as a high-class resort area.
The Iskandar Regional Development Authority, which oversees the development of the 2,217 sq km area, says Singaporeans occupy about four in 10 homes there. Another three in 10 are occupied by other foreigners, mainly expatriates working in Singapore, with the remainder owned by Malaysians.
Iskandar Malaysia was designated as a special economic zone in Johor in 2006. Besides upmarket housing, plans are in the pipeline to build universities, top-notch medical facilities and theme parks.
The residential estates are none too shabby either, and home owners say the construction quality is good.
Homes in the luxurious Horizon Hills are set against a private golf course. Residents in the nearby Leisure Farm Resort have horse-riding facilities, and at Nusa Idaman, there is a kindergarten on the estate.
The fear of being a target of burglars has by and large been put paid to as well, with developers cottoning on to the concerns and touting high-levels security features to reel Singaporeans in.
Back in 2006, 37 Singaporeans launched a petition to the Malaysian High Commission for Singapore, asking for help following a spate of burglaries in a condominium in Bandar Seri Alam in Johor. Their units were completely ransacked and stripped of electrical wiring and light fixtures.
Mr Tio, who bought a weekend home in Leisure Farm Resort, says: 'It's very safe. Security is one of the reasons I bought a unit here.'
The neighbourhoods are fenced in and have several levels of security, such as CCTV monitoring and former Nepalese army guards on 24-hour patrol.
Developers Mulpha International even paid for a manned police station to be built just outside the main entrance of the the Leisure Farm estate.
'We have had a few attempted break-ins in the past 12 years but with no harm, casualties or monetary loss. We are trying our level best to keep our record low and as close to zero as possble,' a spokesman added.
With the promise of better security and property prices soaring at home in the last few years, Singaporeans have been looking northwards, charmed by the prospect of open space and quiet.
Developers say that interest has grown stronger in the past two to three years with the 'aggressive promotion of Iskandar Malaysia'.
There are advertisements in local newspapers, roadshows in hotels and even charter buses to take interested Singaporeans to South Johor - a 15 minute drive from the Second Link - to view the developments.
Mr Zulkifli makes the hour-long drive from his home - a flat in Jurong East - whenever he is on leave and his son is on vacation from school.
Sometimes he goes to the nearby kampung, a 15 minute drive away, for a walk to unwind.
Mr Tio, an Indonesian who is now a Singapore permanent resident, said: 'I come here with friends to eat and drink. In Singapore, where can you unwind?' He lives in a bungalow in the MacPherson area with his two daughters.
But there are drawbacks to living life far from the bustling city. The nearest supermarket is a 10 minute drive away. Many Singaporeans say that they prefer to live and work in Singapore,and have a weekend home to escape to.
Mr Zulkifli's wife, part-time wedding caterer Madam Amidah Ahmad, 47, said: 'Back in Singapore, I step out of my house and there is an NTUC there already.'
And home repairs are not always undertaken speedily.
Said 68-year-old remiser Tan Hui Nam: ' 'The system here is different, the work ethic and culture are different. You have to learn to be more patient.'
Also, while the estates are not far from the Second Link, the cost of driving back and forth can add up, with the tolls on both sides of the Causeway. A round trip can cost almost $20.
'I cannot live here on a full time basis because it's just too expensive to be driving in and out of Malaysia every day!' added Mr Tan.
Singaporean Arif Tan, 62, is shopping around for contractors to have a bungalow built to his specifications in Johor.
The owner of a transport company has made trips up to various showflats in the region and says he hopes to make the move with his wife and three grown children within three to five years.
It is part of his retirement plan, he says, adding: 'The cost of living in Singapore is just too high.'
Property experts say that buyers of property in the Iskandar Malaysia project should see their purchases as long-term investments, as the area is still in its developmental stages and not expected to realise its potential within the next five to 10 years. These properties are better off as holiday homes, they add.
Said PropNex chief executive Mohamed Ismail: 'There will be a continuous supply of more land and property, so new buyers will have a choice between resale homes and new properties. It will take some time for the development to attain maturity and for the resale market to become buoyant.'
More Singaporeans have weekend homes in Iskandar, Johor
Four in 10 residents in south Johor special zone are Singaporean
By Kimberly Spykerman & Teh Joo Lin
AFTER a leisurely lunch on his patio, Mr Zulkifli Mansor can walk out to a putting green and practise a few strokes of golf - and he doesn't even have to leave his home.
From his balcony, Mr Tio Hong Tjoen sometimes casts a reel into the stream winding around his home. The Singapore permanent resident has caught fish weighing up to 3kg.
Mr Zulkifli, a 47-year-old civil servant, and Mr Tio, 53, who is in the furniture business, are among an increasing number of Singaporeans and permanent residents buying high-end homes across the Causeway, mainly as weekend residences.
From his doorstep, Mr Zulkifli can point out eight other properties belonging to Singaporeans in a neighbourhood of about 170 homes.
'In fact, the first group to welcome us to the neighbourhood was Singaporean,' he told The Straits Times. He bought his home about three months ago as a holiday retreat for his wife and son. His mother-in-law and sister-in-law live there permanently.
His two-storey house is in a gated estate fronted by burly security guards - a far cry from the days when Singaporean-owned homes in Johor Baru made headlines as prime targets for burglaries.
And with relatively few restrictions on home ownership in Malaysia - the houses have to be at least two-storeys high and until recently had to cost a minimum of just RM250,000 (S$103,000)- Singaporeans are finding it a breeze across the border. The minimum cost has just doubled to RM500,000.
Mr Zulkifli's roomy 2,140 sq ft house sits in a lush garden and cost him RM298,000 - much less than what he would have had to fork out for a three-room HDB flat here.
'Every month I pay a $630 instalment on the house which is less than the $800 I pay for my car - and I can't live in my car!' he quips.
Mr Zulkifli's house is on an estate known as Nusa Idaman, one of at least four sprawling housing estates within South Johor's Iskandar Malaysia project, which is being touted as a high-class resort area.
The Iskandar Regional Development Authority, which oversees the development of the 2,217 sq km area, says Singaporeans occupy about four in 10 homes there. Another three in 10 are occupied by other foreigners, mainly expatriates working in Singapore, with the remainder owned by Malaysians.
Iskandar Malaysia was designated as a special economic zone in Johor in 2006. Besides upmarket housing, plans are in the pipeline to build universities, top-notch medical facilities and theme parks.
The residential estates are none too shabby either, and home owners say the construction quality is good.
Homes in the luxurious Horizon Hills are set against a private golf course. Residents in the nearby Leisure Farm Resort have horse-riding facilities, and at Nusa Idaman, there is a kindergarten on the estate.
The fear of being a target of burglars has by and large been put paid to as well, with developers cottoning on to the concerns and touting high-levels security features to reel Singaporeans in.
Back in 2006, 37 Singaporeans launched a petition to the Malaysian High Commission for Singapore, asking for help following a spate of burglaries in a condominium in Bandar Seri Alam in Johor. Their units were completely ransacked and stripped of electrical wiring and light fixtures.
Mr Tio, who bought a weekend home in Leisure Farm Resort, says: 'It's very safe. Security is one of the reasons I bought a unit here.'
The neighbourhoods are fenced in and have several levels of security, such as CCTV monitoring and former Nepalese army guards on 24-hour patrol.
Developers Mulpha International even paid for a manned police station to be built just outside the main entrance of the the Leisure Farm estate.
'We have had a few attempted break-ins in the past 12 years but with no harm, casualties or monetary loss. We are trying our level best to keep our record low and as close to zero as possble,' a spokesman added.
With the promise of better security and property prices soaring at home in the last few years, Singaporeans have been looking northwards, charmed by the prospect of open space and quiet.
Developers say that interest has grown stronger in the past two to three years with the 'aggressive promotion of Iskandar Malaysia'.
There are advertisements in local newspapers, roadshows in hotels and even charter buses to take interested Singaporeans to South Johor - a 15 minute drive from the Second Link - to view the developments.
Mr Zulkifli makes the hour-long drive from his home - a flat in Jurong East - whenever he is on leave and his son is on vacation from school.
Sometimes he goes to the nearby kampung, a 15 minute drive away, for a walk to unwind.
Mr Tio, an Indonesian who is now a Singapore permanent resident, said: 'I come here with friends to eat and drink. In Singapore, where can you unwind?' He lives in a bungalow in the MacPherson area with his two daughters.
But there are drawbacks to living life far from the bustling city. The nearest supermarket is a 10 minute drive away. Many Singaporeans say that they prefer to live and work in Singapore,and have a weekend home to escape to.
Mr Zulkifli's wife, part-time wedding caterer Madam Amidah Ahmad, 47, said: 'Back in Singapore, I step out of my house and there is an NTUC there already.'
And home repairs are not always undertaken speedily.
Said 68-year-old remiser Tan Hui Nam: ' 'The system here is different, the work ethic and culture are different. You have to learn to be more patient.'
Also, while the estates are not far from the Second Link, the cost of driving back and forth can add up, with the tolls on both sides of the Causeway. A round trip can cost almost $20.
'I cannot live here on a full time basis because it's just too expensive to be driving in and out of Malaysia every day!' added Mr Tan.
Singaporean Arif Tan, 62, is shopping around for contractors to have a bungalow built to his specifications in Johor.
The owner of a transport company has made trips up to various showflats in the region and says he hopes to make the move with his wife and three grown children within three to five years.
It is part of his retirement plan, he says, adding: 'The cost of living in Singapore is just too high.'
Property experts say that buyers of property in the Iskandar Malaysia project should see their purchases as long-term investments, as the area is still in its developmental stages and not expected to realise its potential within the next five to 10 years. These properties are better off as holiday homes, they add.
Said PropNex chief executive Mohamed Ismail: 'There will be a continuous supply of more land and property, so new buyers will have a choice between resale homes and new properties. It will take some time for the development to attain maturity and for the resale market to become buoyant.'
ST : Estate to get recycling bin at each block
Jan 11, 2010
Estate to get recycling bin at each block
Admiralty Drive pilot project part of efforts to achieve 60% national recycling rate by 2012
RESIDENTS in Admiralty Drive will have a recycling bin at every HDB block as part of a pilot project to get more people to recycle.
The six-month-long project by the National Environment Agency (NEA), recycling company SembWaste and Canberra constituency will involve 14 HDB blocks.
The current arrangement for such bins in HDB estates is for five blocks to share one bin, which is emptied by waste collectors every week.
MP for Sembawang GRC Lim Wee Kiak said at the launch of the programme yesterday: 'Some residents complain that it's now too far away for them to walk, so we hope having one bin under every block will solve that.'
He asked the National Development Ministry to consider including recycling chutes when building new flats, and making it a building requirement in the future.
The pilot project in his constituency, said Dr Lim, would be a small step towards helping to achieve the goal of a national recycling rate of 60 per cent by 2012. The current rate is 56 per cent.
Residents at Admiralty also had the option of keeping their recyclable items in their homes for two weeks before collectors came around fortnightly. This option will be suspended during the pilot scheme period to better assess how many residents prefer recycling bins.
Admiralty Drive resident Bernadette Sayson prefers making the trip downstairs to deposit her recycling instead of keeping it at home for two weeks.
Said the industrial engineer: 'Sometimes we have so many things we want to recycle. It gets too much such that we can't wait for them to come and collect it, so we just throw it out as garbage.'
The 29-year-old added: 'Having a bin downstairs would be much more convenient than having to walk a few blocks away.'
The extra recycling bins should also solve the problem of overflowing bins, said Dr Lim. SembWaste estimates that increasing the number of recycling bins will raise its costs by 10 to 15 per cent, but believes the extra recyclable material collected will make up the difference.
If the project proves to be a success, it could be rolled out to other neighbourhoods islandwide, said Dr Lim.
Estate to get recycling bin at each block
Admiralty Drive pilot project part of efforts to achieve 60% national recycling rate by 2012
RESIDENTS in Admiralty Drive will have a recycling bin at every HDB block as part of a pilot project to get more people to recycle.
The six-month-long project by the National Environment Agency (NEA), recycling company SembWaste and Canberra constituency will involve 14 HDB blocks.
The current arrangement for such bins in HDB estates is for five blocks to share one bin, which is emptied by waste collectors every week.
MP for Sembawang GRC Lim Wee Kiak said at the launch of the programme yesterday: 'Some residents complain that it's now too far away for them to walk, so we hope having one bin under every block will solve that.'
He asked the National Development Ministry to consider including recycling chutes when building new flats, and making it a building requirement in the future.
The pilot project in his constituency, said Dr Lim, would be a small step towards helping to achieve the goal of a national recycling rate of 60 per cent by 2012. The current rate is 56 per cent.
Residents at Admiralty also had the option of keeping their recyclable items in their homes for two weeks before collectors came around fortnightly. This option will be suspended during the pilot scheme period to better assess how many residents prefer recycling bins.
Admiralty Drive resident Bernadette Sayson prefers making the trip downstairs to deposit her recycling instead of keeping it at home for two weeks.
Said the industrial engineer: 'Sometimes we have so many things we want to recycle. It gets too much such that we can't wait for them to come and collect it, so we just throw it out as garbage.'
The 29-year-old added: 'Having a bin downstairs would be much more convenient than having to walk a few blocks away.'
The extra recycling bins should also solve the problem of overflowing bins, said Dr Lim. SembWaste estimates that increasing the number of recycling bins will raise its costs by 10 to 15 per cent, but believes the extra recyclable material collected will make up the difference.
If the project proves to be a success, it could be rolled out to other neighbourhoods islandwide, said Dr Lim.
ST : Landlord, agent sued over 'lost gold bars'
Jan 11, 2010
Landlord, agent sued over 'lost gold bars'
Tenant's mum claims $100,000 loss after being locked out of unit
By Mavis Toh
A 56-YEAR-OLD woman locked out of her daughter's rented Orchard Road apartment was let in only a week later and alleged that she then found her 20 gold bars missing.
Madam Lim Bee Lian, who lived in the Mount Elizabeth apartment with her husband and daughter Belle Lin, is now taking the landlord, Mr Lee Huay Kok, and his property agent, Mr Lee Wee Hong, to court for her alleged loss, estimated to be $100,000.
Last Oct 2, after having gone to the market, she returned to the unit to see the agent and a locksmith outside it.
In her statement of claim filed by lawyer Chia Boon Teck, she said the agent told her he had a court order to evict the family, and that she should let him in so that the locks could be changed.
He added that the family was to vacate the unit immediately.
Afraid of breaching the law, Madam Lim opened the door for the two men, but refused to leave the unit.
After the locks were changed, the agent threatened to lock her in if she refused to leave.
She contacted her daughter, who was stuck in a meeting but phoned her brother and the police.
Upon his arrival, Madam Lim's son found that the 'court order' was in fact only an unsigned draft letter from the landlord's solicitors.
He then left to attend to other urgent matters.
During this time, Madam Lim tried to retrieve her valuables from the apartment but was unable to reach the top cabinet in the master bedroom.
When Ms Lin finally got to the apartment, her mother, who has hypertension and diabetes, needed to be taken to the hospital for shortness of breath and cold sweat.
Mother and daughter lodged a police report that night and also tried - unsuccessfully - to reach the agent by phone and e-mail.
They were let in only on Oct 8, which was when they found the rectangular gold bars gone, they alleged.
A gold bracelet with diamonds was also missing, they claimed.
Problems with the tenancy started three months into the lease signed in July last year.
Ms Lin said she signed a tenancy agreement on behalf of her employer, the trading firm LVMH Couture International, to rent a place to accommodate its overseas guests and their families.
This was made known to the landlord.
In September, the landlord sent her and LVMH a warning letter, saying the rental agreement had been violated because people other than Ms Lin had been staying there.
Later that month, the property management stopped LVMH's guests from entering the property.
Embarrassed and angered by the incident, Ms Lin moved into the apartment with her parents, and put LVMH's guests in another apartment she rented.
Now, Madam Lim has charged that the landlord and agent have breached the contract and trespassed on the property, resulting in her suffering the alleged loss.
She is also seeking aggravated damages for the fear she felt and injury to her dignity.
The defendants are expected to file their defence by Jan 20.
Landlord, agent sued over 'lost gold bars'
Tenant's mum claims $100,000 loss after being locked out of unit
By Mavis Toh
A 56-YEAR-OLD woman locked out of her daughter's rented Orchard Road apartment was let in only a week later and alleged that she then found her 20 gold bars missing.
Madam Lim Bee Lian, who lived in the Mount Elizabeth apartment with her husband and daughter Belle Lin, is now taking the landlord, Mr Lee Huay Kok, and his property agent, Mr Lee Wee Hong, to court for her alleged loss, estimated to be $100,000.
Last Oct 2, after having gone to the market, she returned to the unit to see the agent and a locksmith outside it.
In her statement of claim filed by lawyer Chia Boon Teck, she said the agent told her he had a court order to evict the family, and that she should let him in so that the locks could be changed.
He added that the family was to vacate the unit immediately.
Afraid of breaching the law, Madam Lim opened the door for the two men, but refused to leave the unit.
After the locks were changed, the agent threatened to lock her in if she refused to leave.
She contacted her daughter, who was stuck in a meeting but phoned her brother and the police.
Upon his arrival, Madam Lim's son found that the 'court order' was in fact only an unsigned draft letter from the landlord's solicitors.
He then left to attend to other urgent matters.
During this time, Madam Lim tried to retrieve her valuables from the apartment but was unable to reach the top cabinet in the master bedroom.
When Ms Lin finally got to the apartment, her mother, who has hypertension and diabetes, needed to be taken to the hospital for shortness of breath and cold sweat.
Mother and daughter lodged a police report that night and also tried - unsuccessfully - to reach the agent by phone and e-mail.
They were let in only on Oct 8, which was when they found the rectangular gold bars gone, they alleged.
A gold bracelet with diamonds was also missing, they claimed.
Problems with the tenancy started three months into the lease signed in July last year.
Ms Lin said she signed a tenancy agreement on behalf of her employer, the trading firm LVMH Couture International, to rent a place to accommodate its overseas guests and their families.
This was made known to the landlord.
In September, the landlord sent her and LVMH a warning letter, saying the rental agreement had been violated because people other than Ms Lin had been staying there.
Later that month, the property management stopped LVMH's guests from entering the property.
Embarrassed and angered by the incident, Ms Lin moved into the apartment with her parents, and put LVMH's guests in another apartment she rented.
Now, Madam Lim has charged that the landlord and agent have breached the contract and trespassed on the property, resulting in her suffering the alleged loss.
She is also seeking aggravated damages for the fear she felt and injury to her dignity.
The defendants are expected to file their defence by Jan 20.
ST : Moneylenders target HDB sellers
Jan 11, 2010
Moneylenders target HDB sellers
By Melissa Sim
LICENSED moneylenders are changing tack, targeting HDB sellers in need of immediate cash.
Rather than advertise the availability of personal loans to all and sundry, some specify that only those intending to sell their homes need apply.
The reason: HDB owners will have cash after the sale of their flats, so repayment is almost guaranteed.
Mr David Poh, president of the Moneylenders' Association of Singapore, explained: 'If they take a personal loan which is based on their income, they may lose their job at any time, so it's not so secure for us.'
There were 187 licensed money lenders in Singapore as of July last year.
The moneylenders who spoke to The Straits Times said these HDB sellers are usually in need of quick cash, to pay credit card bills, medical bills, gambling debts, or renovation bills.
And even though they can liquidate their homes for cash, a sale can take up to five months.
Within this time, a seller will collect only up to $5,000 from the buyer, according to HDB rules, so some turn to money lenders referred through housing agents, or who advertise in the newspapers.
Some recent advertisements have been targeted at 'HDB Sellers Only', and promise cash of up to $100,000 at monthly interest rates that start from 1.5 per cent.
Usually, agents are also involved in the process. They introduce desperate sellers to money lenders, and may get a fee for the referral, usually about $500 a customer.
Mr Mohamad Ismail, chief executive of Propnex, said he is aware that this has been happening since late last year, and has warned agents in his company against the practice.
'Agents should not bring sellers to licensed money lenders for a referral fee. This is not within the ambit of their job,' he said.
But with HDB prices rising by 3.8 per cent in the last quarter and hitting new highs, moneylenders say they are more willing to lend large amounts of up to 80 per cent of the profits of the sale of each flat.
Mr James Lee, founder of James Lee Credit said his company now has about 25 HDB sellers asking for loans each month. This is about a fifth more than this time last year.
Moneylenders are willing to lend as sellers are likely to have 'positive sales proceeds' even after repaying their CPF, he added.
This does not always mean the loan will be repaid, however. Out of 10 loans, Mr Lee said one or two will not be honoured.
Moneylenders, however, have found ways to ensure that loans are repaid with interest of up to 10 per cent a month, depending on the borrower's income, guarantor, and loan amount.
For high-risk cases, moneylenders will usually lodge a caveat on the HDB flat. The seller's lawyer will then have to contact them about releasing the caveat so that the sale can continue.
Moneylenders can then lay claim to what they are owed, and make sure lawyers direct the money to them when the sale is completed.
Mr Lee said: 'It's a legal process that's all in black and white.'
But lawyer Derrick Wong said this is possible only if there is no prior mortgagee or if the prior mortgagee does not object.
Ms Tan Huey Min, assistant director of Credit Counselling Singapore, a non-profit group that advises people on debt repayment, warned HDB sellers to do their sums before borrowing.
'If there is a valid reason like an operation, then it may be okay,' she said.
'But if it's not urgent, they should not do it because the interest rates are high, and there is a high chance they may be digging a bigger hole and get into bigger debt.'
Moneylenders target HDB sellers
By Melissa Sim
LICENSED moneylenders are changing tack, targeting HDB sellers in need of immediate cash.
Rather than advertise the availability of personal loans to all and sundry, some specify that only those intending to sell their homes need apply.
The reason: HDB owners will have cash after the sale of their flats, so repayment is almost guaranteed.
Mr David Poh, president of the Moneylenders' Association of Singapore, explained: 'If they take a personal loan which is based on their income, they may lose their job at any time, so it's not so secure for us.'
There were 187 licensed money lenders in Singapore as of July last year.
The moneylenders who spoke to The Straits Times said these HDB sellers are usually in need of quick cash, to pay credit card bills, medical bills, gambling debts, or renovation bills.
And even though they can liquidate their homes for cash, a sale can take up to five months.
Within this time, a seller will collect only up to $5,000 from the buyer, according to HDB rules, so some turn to money lenders referred through housing agents, or who advertise in the newspapers.
Some recent advertisements have been targeted at 'HDB Sellers Only', and promise cash of up to $100,000 at monthly interest rates that start from 1.5 per cent.
Usually, agents are also involved in the process. They introduce desperate sellers to money lenders, and may get a fee for the referral, usually about $500 a customer.
Mr Mohamad Ismail, chief executive of Propnex, said he is aware that this has been happening since late last year, and has warned agents in his company against the practice.
'Agents should not bring sellers to licensed money lenders for a referral fee. This is not within the ambit of their job,' he said.
But with HDB prices rising by 3.8 per cent in the last quarter and hitting new highs, moneylenders say they are more willing to lend large amounts of up to 80 per cent of the profits of the sale of each flat.
Mr James Lee, founder of James Lee Credit said his company now has about 25 HDB sellers asking for loans each month. This is about a fifth more than this time last year.
Moneylenders are willing to lend as sellers are likely to have 'positive sales proceeds' even after repaying their CPF, he added.
This does not always mean the loan will be repaid, however. Out of 10 loans, Mr Lee said one or two will not be honoured.
Moneylenders, however, have found ways to ensure that loans are repaid with interest of up to 10 per cent a month, depending on the borrower's income, guarantor, and loan amount.
For high-risk cases, moneylenders will usually lodge a caveat on the HDB flat. The seller's lawyer will then have to contact them about releasing the caveat so that the sale can continue.
Moneylenders can then lay claim to what they are owed, and make sure lawyers direct the money to them when the sale is completed.
Mr Lee said: 'It's a legal process that's all in black and white.'
But lawyer Derrick Wong said this is possible only if there is no prior mortgagee or if the prior mortgagee does not object.
Ms Tan Huey Min, assistant director of Credit Counselling Singapore, a non-profit group that advises people on debt repayment, warned HDB sellers to do their sums before borrowing.
'If there is a valid reason like an operation, then it may be okay,' she said.
'But if it's not urgent, they should not do it because the interest rates are high, and there is a high chance they may be digging a bigger hole and get into bigger debt.'
First privatised wet market-cum-food court opens its doors at Sengkang
First privatised wet market-cum-food court opens its doors at Sengkang
By Hetty Musfirah, Channel NewsAsia | Posted: 10 January 2010 2005 hrs
Kopitiam Square in Sengkang
SINGAPORE: Sengkang finally has a wet market. Located opposite Sengkang MRT station, "Kopitiam Square" is the first wet market and food centre to be built and run by a private operator.
It has some 60 cooked food stalls - half of which will open 24 hours - and another 60 stalls in its wet market area.
With a seating capacity of 1,200, Kopitiam says the market and food centre can cater to up to 20,000 people daily.
This is the first time Kopitiam is operating a wet market alongside a food centre.
Its cashless payment system can be used in both sections.
But those who prefer to use cash to pay for their food will still need a Kopitiam card if they plan to park at the complex, as the usual cashcards are not accepted.
The idea to set up the centre comes after a public consultation in August 2007, which sought ideas to promote community bonding and strengthen local identity.
By Hetty Musfirah, Channel NewsAsia | Posted: 10 January 2010 2005 hrs
Kopitiam Square in Sengkang
SINGAPORE: Sengkang finally has a wet market. Located opposite Sengkang MRT station, "Kopitiam Square" is the first wet market and food centre to be built and run by a private operator.
It has some 60 cooked food stalls - half of which will open 24 hours - and another 60 stalls in its wet market area.
With a seating capacity of 1,200, Kopitiam says the market and food centre can cater to up to 20,000 people daily.
This is the first time Kopitiam is operating a wet market alongside a food centre.
Its cashless payment system can be used in both sections.
But those who prefer to use cash to pay for their food will still need a Kopitiam card if they plan to park at the complex, as the usual cashcards are not accepted.
The idea to set up the centre comes after a public consultation in August 2007, which sought ideas to promote community bonding and strengthen local identity.
Tuesday, January 5, 2010
800,000 HDB households to receive $106m utility rebates
800,000 HDB households to receive $106m utility rebates
Jan 4, 2010 - PropertyGuru.com.sg
Around 800,000 HDB households will receive utilities U-Save rebates worth $106 million in 2010. The $60 million initial payout will be made in January, with the next payout expected in July.
Based on the schedule that the Ministry of Finance (MOF) released yesterday, households with one and two rooms will receive rebates amounting to $200 this year. Executive flats will receive $55; $160 for three-room flats; $150 for four-room flats; and $90 for five-room flats.
The U-Save rebates are aimed only at flats owned by Singaporeans. However, over the last few years, there has been a rise in Singapore-owned HDB flats being completely sublet, even involving non-citizen tenants.
The scheme has been revised from January this year onwards, with HDB flats fully sublet to non-citizens being ineligible for rebates.
HDB flats owned by Singaporeans, which are owner-occupied or sublet to at least one citizen tenant, will continue to receive rebates.
“U-Save rebates are used to offset utility charges directly. The amount of rebates in the forthcoming payout will be reflected in the utility bills for January 2010 of all eligible households,” said the MOF.
Intended to help Singaporeans cope with earlier two-percentage point increases in goods and services tax (GST), these rebates are part of the GST Offset Package in Budget 2007. The government will have to spend for the scheme around $620 million for a period of five years from 2007 to 2011.
Jan 4, 2010 - PropertyGuru.com.sg
Around 800,000 HDB households will receive utilities U-Save rebates worth $106 million in 2010. The $60 million initial payout will be made in January, with the next payout expected in July.
Based on the schedule that the Ministry of Finance (MOF) released yesterday, households with one and two rooms will receive rebates amounting to $200 this year. Executive flats will receive $55; $160 for three-room flats; $150 for four-room flats; and $90 for five-room flats.
The U-Save rebates are aimed only at flats owned by Singaporeans. However, over the last few years, there has been a rise in Singapore-owned HDB flats being completely sublet, even involving non-citizen tenants.
The scheme has been revised from January this year onwards, with HDB flats fully sublet to non-citizens being ineligible for rebates.
HDB flats owned by Singaporeans, which are owner-occupied or sublet to at least one citizen tenant, will continue to receive rebates.
“U-Save rebates are used to offset utility charges directly. The amount of rebates in the forthcoming payout will be reflected in the utility bills for January 2010 of all eligible households,” said the MOF.
Intended to help Singaporeans cope with earlier two-percentage point increases in goods and services tax (GST), these rebates are part of the GST Offset Package in Budget 2007. The government will have to spend for the scheme around $620 million for a period of five years from 2007 to 2011.
2009 was an easy year for investors; and now comes 2010
2009 was an easy year for investors; and now comes 2010
Jan 4, 2010 - PropertyGuru.com.sg
Investing in 2009 was very easy for some people – just invest in oversold riskier assets and wait for them to rise. However, 2010 could be a difficult time, requiring selection and market timing to get the best results.
Many investors felt that the financial system would not collapse into a new Great Depression era, and as a result, many riskier assets like high-yielding bonds and stocks were sold off.
The gain last year came mostly from across-the-board buying, about 30 percent from world stocks year-to-date.
The more sold-off an asset had accounted, the higher it increased as investors almost indiscriminately charged out in what, by then, become virtually zero-yielding cash funds in favour of any yield they could find.
It was triggered by the authorities saying they would not let another major bank go under.
Entering 2010, however, a lot have changed. Large price increments are eaten up by what were seen as historic opportunities and central banks are preparing to improve the liquidity. Some 2009 correlations are now falling apart, leaving investors to work harder.
"2010 is going to be a year of discrimination with a very long bias towards quality," said Bob Parker, vice-chairman of the asset management arm for Credit Suisse.
The need of selective thinking also comes from the global economy, which is both fragile and uneven. Investors become more cautious about investment backdrop and as a result, caution intensified by debt problem in Greece, Spain and Dubai.
"Cyclical tailwinds and structural headwinds" is how William De Vijlder, the global chief investment officer of Fortis Investments, described the current investment situation.
While emerging markets remain the favourite options for many investors this year, the focus is mainly on fiscally good countries in Asia like China, rather than on Eastern Europe.
"(There will be) more differentiation rather than just buying an asset class or region," said Wayne Bowers, chief executive officer for Northern Trust Global Investments' international division.
Jan 4, 2010 - PropertyGuru.com.sg
Investing in 2009 was very easy for some people – just invest in oversold riskier assets and wait for them to rise. However, 2010 could be a difficult time, requiring selection and market timing to get the best results.
Many investors felt that the financial system would not collapse into a new Great Depression era, and as a result, many riskier assets like high-yielding bonds and stocks were sold off.
The gain last year came mostly from across-the-board buying, about 30 percent from world stocks year-to-date.
The more sold-off an asset had accounted, the higher it increased as investors almost indiscriminately charged out in what, by then, become virtually zero-yielding cash funds in favour of any yield they could find.
It was triggered by the authorities saying they would not let another major bank go under.
Entering 2010, however, a lot have changed. Large price increments are eaten up by what were seen as historic opportunities and central banks are preparing to improve the liquidity. Some 2009 correlations are now falling apart, leaving investors to work harder.
"2010 is going to be a year of discrimination with a very long bias towards quality," said Bob Parker, vice-chairman of the asset management arm for Credit Suisse.
The need of selective thinking also comes from the global economy, which is both fragile and uneven. Investors become more cautious about investment backdrop and as a result, caution intensified by debt problem in Greece, Spain and Dubai.
"Cyclical tailwinds and structural headwinds" is how William De Vijlder, the global chief investment officer of Fortis Investments, described the current investment situation.
While emerging markets remain the favourite options for many investors this year, the focus is mainly on fiscally good countries in Asia like China, rather than on Eastern Europe.
"(There will be) more differentiation rather than just buying an asset class or region," said Wayne Bowers, chief executive officer for Northern Trust Global Investments' international division.
Main market themes for 2010
Main market themes for 2010
Jan 4, 2010 - PropertyGuru.com.sg
It is interesting to ponder what the main market themes for 2010 may be, as the second-liners and window-dressing of blue chips had been completed for 2009.
Property brokers have been busy over the past month with their market outlook reports, which all leans towards the positive. However, what is shocking is that most brokers only have modest upside targets, suggesting caution has gradually crept into the market.
UBS Investment Research was one of the first with a Dec 2, 2009 report that said domestic sectors’ earnings revisions must support an upbeat market in 2010, mainly in the first half. However, volatility could increase later due to potential US interest rate hikes.
Below is the list of market outlooks that are stated in the report:
The job market could strongly bounce back in the first half of 2010. Ongoing hiring intentions have increased sharply, particularly in banking and finance.
The upward domestic demand, followed by a structural revival in tourism, must portend well for domestic services stocks.
The government is expected to stay vigilant on a possible asset bubble forming in residential property, without let-up in negative policy risk.
Volatility in the market typically increases sharply at various points in Fed funds policy.
The end-2010 target of UBS for the Straits Times Index is 3,200, which translates to a 16.5 forward price-earnings ratio, -17.5 percent earnings per share growth in 2009, and +27 percent in 2010.
The end-2010 STI target of Credit Suisse is not far away from that of UBS at 3,180. Based on the Dec 1, 2009 report, there are three themes to consider: the launching of the two casinos, which are expected to boost tourism; consensus earnings upgrades; and cash-rich firms returning money to shareholders through special dividends.
“Rolling forward to a projected 2011 return on equity of 12 per cent and maintaining a five-year average price/book of 1.88x, we arrive at our new 2010 MSCI Index target of 388 for Singapore,” Credit Suisse said, adding that this works out to an STI of 3,180. It said it is underweight on capital goods and telecoms, but overweight on banks, transport and property.
Based on the economics-markets strategy of DBS for 2010, the local economy will grow at a more restrained pace. It said that there are cooling signs, as the economy shifts to a flatter growth trajectory, now expecting the taking over of the services sector as major growth pillar. DBS also stressed its preference for the Singapore market.
In the Dec 16, 2009 global equity strategy, Morgan Stanley said that it still likes equities, but expects increasing risks. “We think 2010 will start strong but that markets will have overshot fair value,” it said. “We expect only single-digit returns for global equities for the full year but the risks are slanted to a worse outcome.”
Jan 4, 2010 - PropertyGuru.com.sg
It is interesting to ponder what the main market themes for 2010 may be, as the second-liners and window-dressing of blue chips had been completed for 2009.
Property brokers have been busy over the past month with their market outlook reports, which all leans towards the positive. However, what is shocking is that most brokers only have modest upside targets, suggesting caution has gradually crept into the market.
UBS Investment Research was one of the first with a Dec 2, 2009 report that said domestic sectors’ earnings revisions must support an upbeat market in 2010, mainly in the first half. However, volatility could increase later due to potential US interest rate hikes.
Below is the list of market outlooks that are stated in the report:
The job market could strongly bounce back in the first half of 2010. Ongoing hiring intentions have increased sharply, particularly in banking and finance.
The upward domestic demand, followed by a structural revival in tourism, must portend well for domestic services stocks.
The government is expected to stay vigilant on a possible asset bubble forming in residential property, without let-up in negative policy risk.
Volatility in the market typically increases sharply at various points in Fed funds policy.
The end-2010 target of UBS for the Straits Times Index is 3,200, which translates to a 16.5 forward price-earnings ratio, -17.5 percent earnings per share growth in 2009, and +27 percent in 2010.
The end-2010 STI target of Credit Suisse is not far away from that of UBS at 3,180. Based on the Dec 1, 2009 report, there are three themes to consider: the launching of the two casinos, which are expected to boost tourism; consensus earnings upgrades; and cash-rich firms returning money to shareholders through special dividends.
“Rolling forward to a projected 2011 return on equity of 12 per cent and maintaining a five-year average price/book of 1.88x, we arrive at our new 2010 MSCI Index target of 388 for Singapore,” Credit Suisse said, adding that this works out to an STI of 3,180. It said it is underweight on capital goods and telecoms, but overweight on banks, transport and property.
Based on the economics-markets strategy of DBS for 2010, the local economy will grow at a more restrained pace. It said that there are cooling signs, as the economy shifts to a flatter growth trajectory, now expecting the taking over of the services sector as major growth pillar. DBS also stressed its preference for the Singapore market.
In the Dec 16, 2009 global equity strategy, Morgan Stanley said that it still likes equities, but expects increasing risks. “We think 2010 will start strong but that markets will have overshot fair value,” it said. “We expect only single-digit returns for global equities for the full year but the risks are slanted to a worse outcome.”
Construction on Menara YNH to begin in six months
Construction on Menara YNH to begin in six months
Jan 4, 2010 - PropertyGuru.com.sg
YNH Property Bhd is expecting to start work of its proposed Menara YNH project in the next six months.
Although Kuwait Finance House Bhd (KFH) cancelled the plan to purchase one of the two office blocks at Menara YNH two weeks ago, YNH said it would still carry on with the development of the project.
Early last year, KFH offered to acquire a 50 percent interest of the office blocks of Menara YNH from YNH Land Sdn Bhd, which is a wholly-owned subsidiary of YNH Property.
Daniel Chan, head of corporate strategy for YNH, said it was currently making some adjustments to the project design to improve the tenant space by 10 to 15 percent.
The project, which is according to the specifications of the Green Building Index, will have a total net space of 1.5 million square feet.
“We will be resubmitting the amended project plan for approval. The development order was obtained last December,” said Mr. Chan.
He said the project was among YNH’s target and expected to be completed within five years.
It will have two 45-storey office blocks; each will have a net space of 600,000 square feet to be constructed at the top of a three-storey retail podium. Additionally, its gross development value (GDV) is expected to be around RM 2 billion, or RM 1,500 psf.
Mr. Chan said the construction of the retail podium will be prioritised and it is expected to be completed in three years.
Several foreign and local investors signed early last year the RM300 million sale and purchase agreement for the 300,000 sq ft retail space.
On whether the YNH is looking for another buyer for the other parts of the project, Mr. Chan said: “We are not in any hurry to sell unless a good offer turns up. So far, we are talking to a few interested parties. With the strategic location of the property, we are confident of good interest and sealing a good deal.”
He added that the company is keeping its option open and that several parties offered a joint-venture partnership for the project or purchase over the property.
“We are optimistic of the project as its value has appreciated. When the project was first mulled three to four years ago, its GDV was only RM1bil but, today, its value has doubled.”
Jan 4, 2010 - PropertyGuru.com.sg
YNH Property Bhd is expecting to start work of its proposed Menara YNH project in the next six months.
Although Kuwait Finance House Bhd (KFH) cancelled the plan to purchase one of the two office blocks at Menara YNH two weeks ago, YNH said it would still carry on with the development of the project.
Early last year, KFH offered to acquire a 50 percent interest of the office blocks of Menara YNH from YNH Land Sdn Bhd, which is a wholly-owned subsidiary of YNH Property.
Daniel Chan, head of corporate strategy for YNH, said it was currently making some adjustments to the project design to improve the tenant space by 10 to 15 percent.
The project, which is according to the specifications of the Green Building Index, will have a total net space of 1.5 million square feet.
“We will be resubmitting the amended project plan for approval. The development order was obtained last December,” said Mr. Chan.
He said the project was among YNH’s target and expected to be completed within five years.
It will have two 45-storey office blocks; each will have a net space of 600,000 square feet to be constructed at the top of a three-storey retail podium. Additionally, its gross development value (GDV) is expected to be around RM 2 billion, or RM 1,500 psf.
Mr. Chan said the construction of the retail podium will be prioritised and it is expected to be completed in three years.
Several foreign and local investors signed early last year the RM300 million sale and purchase agreement for the 300,000 sq ft retail space.
On whether the YNH is looking for another buyer for the other parts of the project, Mr. Chan said: “We are not in any hurry to sell unless a good offer turns up. So far, we are talking to a few interested parties. With the strategic location of the property, we are confident of good interest and sealing a good deal.”
He added that the company is keeping its option open and that several parties offered a joint-venture partnership for the project or purchase over the property.
“We are optimistic of the project as its value has appreciated. When the project was first mulled three to four years ago, its GDV was only RM1bil but, today, its value has doubled.”
Property speculators now target the APAC region
Property speculators now target the APAC region
Jan 4, 2010 - PropertyGuru.com.sg
The meltdown of US property prices did not affect the enthusiasm of many home buyers in other countries, especially in Asia.
Home prices in most parts of Asia-Pacific continue to surge. But solid demand for apartments, houses and villas, coupled with a stimulus package and low interest rates, fuelled the major price increase in late 2008 and early 2009.
Singapore home prices soared 15.75 percent in Q3 2008, prompting the government to denounce property speculation and warn about a market bubble forming.
In Australia, home prices have solidified and started to rise again, despite being described by others as “unaffordable prices”. On the other side of the country, home buyers in Perth are also facing price increases as the state and city enjoys a buoyant economy due to a resources boom happening in the northwest of the state.
In China, particularly in Shanghai and Beijing, increasing demand pushed the prices to a high level, with many people now calling the property boom a "bubble". The Chinese government already implemented measures to limit price increases and is considering further measures.
Chinese Premier Wen Jiabao last week told Xinhua news agency, “property prices have risen too quickly,” and pledged to control any speculations.
Jan 4, 2010 - PropertyGuru.com.sg
The meltdown of US property prices did not affect the enthusiasm of many home buyers in other countries, especially in Asia.
Home prices in most parts of Asia-Pacific continue to surge. But solid demand for apartments, houses and villas, coupled with a stimulus package and low interest rates, fuelled the major price increase in late 2008 and early 2009.
Singapore home prices soared 15.75 percent in Q3 2008, prompting the government to denounce property speculation and warn about a market bubble forming.
In Australia, home prices have solidified and started to rise again, despite being described by others as “unaffordable prices”. On the other side of the country, home buyers in Perth are also facing price increases as the state and city enjoys a buoyant economy due to a resources boom happening in the northwest of the state.
In China, particularly in Shanghai and Beijing, increasing demand pushed the prices to a high level, with many people now calling the property boom a "bubble". The Chinese government already implemented measures to limit price increases and is considering further measures.
Chinese Premier Wen Jiabao last week told Xinhua news agency, “property prices have risen too quickly,” and pledged to control any speculations.
Singapore residential market expected to recover this year
Singapore residential market expected to recover this year
Jan 4, 2010 - PropertyGuru.com.sg
2010 will see a recovery of the residential market in Singapore, said Chief Executive Lim Ee Seng of Frasers Centrepoint.
“We expected 2009 to be a very bad year for us but it turned out to be a good year,” said Managing Director Lim Yew Soon of EL Development.
Dr. Chua Yang Liang, Jones Lang LaSalle's head of South-east Asia research, agreed: “It's been a remarkable year - with transaction and pricing outperforming expectations, driven by latent demand, low interest rates and primed by lower pricing.”
Prices and sales of new private homes picked up significantly from April. It was a turnaround from Q1, when sellers were cutting prices just to offload their homes.
At the start of the year, as the private homes market swung hastily from hopelessness to 'unwarranted enthusiasm' by mid-2009, this year turned out to be a 'record-breaking' one, said Chua Chor Hoon, DTZ head of research for South-east Asia.
Record monthly and quarterly highs were achieved from sales and launches of new private homes, while some new launches outside the city area sold at record prices, Ms. Chua said.
Landed home resale located in prime districts also reach record prices, while home prices in resale mass market rebounded within two quarters to hit the 2007 peak levels, added Ms. Chua.
Jan 4, 2010 - PropertyGuru.com.sg
2010 will see a recovery of the residential market in Singapore, said Chief Executive Lim Ee Seng of Frasers Centrepoint.
“We expected 2009 to be a very bad year for us but it turned out to be a good year,” said Managing Director Lim Yew Soon of EL Development.
Dr. Chua Yang Liang, Jones Lang LaSalle's head of South-east Asia research, agreed: “It's been a remarkable year - with transaction and pricing outperforming expectations, driven by latent demand, low interest rates and primed by lower pricing.”
Prices and sales of new private homes picked up significantly from April. It was a turnaround from Q1, when sellers were cutting prices just to offload their homes.
At the start of the year, as the private homes market swung hastily from hopelessness to 'unwarranted enthusiasm' by mid-2009, this year turned out to be a 'record-breaking' one, said Chua Chor Hoon, DTZ head of research for South-east Asia.
Record monthly and quarterly highs were achieved from sales and launches of new private homes, while some new launches outside the city area sold at record prices, Ms. Chua said.
Landed home resale located in prime districts also reach record prices, while home prices in resale mass market rebounded within two quarters to hit the 2007 peak levels, added Ms. Chua.
Strong demand for The Shore Residences
Strong demand for The Shore Residences
Dec 31, 2009
Property developer Far East Organization said its newest project, The Shore Residences, saw strong demand since the start of its preview two weeks ago.
The 408-unit The Shore Residences is located in the Katong area.
The property developer said more than 70 units were sold and interested buyers have also registered for the units, which will have its official launch on January 21 next year.
Among the units, the one- and two-room units were the most popular.
Far East said that almost all of the 84 one-room units, with a price of $658,000 each, were sold out.
The two-room units, which make up the majority of the residential units, are about $1.1 million each.
The Shore Residences is expected to be fully launched in 2015.
Dec 31, 2009
Property developer Far East Organization said its newest project, The Shore Residences, saw strong demand since the start of its preview two weeks ago.
The 408-unit The Shore Residences is located in the Katong area.
The property developer said more than 70 units were sold and interested buyers have also registered for the units, which will have its official launch on January 21 next year.
Among the units, the one- and two-room units were the most popular.
Far East said that almost all of the 84 one-room units, with a price of $658,000 each, were sold out.
The two-room units, which make up the majority of the residential units, are about $1.1 million each.
The Shore Residences is expected to be fully launched in 2015.
Report reveals the UK's most expensive places to purchase property
Report reveals the UK's most expensive places to purchase property
Dec 31, 2009 - PropertyGuru.com.sg
Chelsea and Kensington in London are the most expensive places in the UK to purchase real estate, with half of the most expensive residential area in the borough.
The average price for a real estate property in the Wycombe Square is about £5.4 million.
Overall, five out of the nine regions of Wales and England have an average home cost of over £1 million, according to the new report by Halifax.
Moles Hill in Leatherhead is the most expensive street outside the capital, with an average real estate property costing about £2.6 million. This is followed by Leys Road, also located in Leatherhead, and Woodlands Road West in Virginia Water, both offering £2.5 million for an average property.
Park Lane in Altrincham and Withinlee Road in Macclesfield are the most costly streets outside of southern England, with each property costing around £1.2 million.
Druidstone Road in Cardiff, on the other hand, has the most expensive residential street within Wales, at £621,000 per property.
Halifax’s housing economist, Nitesh Patel, said that it is not a surprise that most of the highly expensive residential streets are located in the Royal Borough of Chelsea and Kensington, with over half of the 30 highly expensive London streets in the borough.
“Kensington and Chelsea has long had a global appeal but the fall in the value of sterling has helped to attract foreign buyers over the past year despite the worldwide economic recession,” Patel said. “Across most regions, the survey shows that the most expensive streets are tightly clustered within the same area.”
In Edinburgh, the most expensive street is the Warriston Crescent, a row of luxury townhouses next to the Water of Leith, with each property costing about £960,671, according to the separate report of the Bank of Scotland.
Edinburg has six of the ten most expensive streets in Scotland.
The Drumsheugh Gardens is the second in the list, with housing prices fetching to £883,254, followed by Merchiston Gardens, where property prices reaching £672,856.
Additionally, the most expensive street outside Edinburgh is the Morningfield Road, which is located in the west end of Aberdeen, with average property reaching £592,297.
Glasgow’s most expensive street is the Royal Gardens, at £571,500 per average property while Victoria Park Gardens South in Broomhill, has an average property price of £523,429.
Dec 31, 2009 - PropertyGuru.com.sg
Chelsea and Kensington in London are the most expensive places in the UK to purchase real estate, with half of the most expensive residential area in the borough.
The average price for a real estate property in the Wycombe Square is about £5.4 million.
Overall, five out of the nine regions of Wales and England have an average home cost of over £1 million, according to the new report by Halifax.
Moles Hill in Leatherhead is the most expensive street outside the capital, with an average real estate property costing about £2.6 million. This is followed by Leys Road, also located in Leatherhead, and Woodlands Road West in Virginia Water, both offering £2.5 million for an average property.
Park Lane in Altrincham and Withinlee Road in Macclesfield are the most costly streets outside of southern England, with each property costing around £1.2 million.
Druidstone Road in Cardiff, on the other hand, has the most expensive residential street within Wales, at £621,000 per property.
Halifax’s housing economist, Nitesh Patel, said that it is not a surprise that most of the highly expensive residential streets are located in the Royal Borough of Chelsea and Kensington, with over half of the 30 highly expensive London streets in the borough.
“Kensington and Chelsea has long had a global appeal but the fall in the value of sterling has helped to attract foreign buyers over the past year despite the worldwide economic recession,” Patel said. “Across most regions, the survey shows that the most expensive streets are tightly clustered within the same area.”
In Edinburgh, the most expensive street is the Warriston Crescent, a row of luxury townhouses next to the Water of Leith, with each property costing about £960,671, according to the separate report of the Bank of Scotland.
Edinburg has six of the ten most expensive streets in Scotland.
The Drumsheugh Gardens is the second in the list, with housing prices fetching to £883,254, followed by Merchiston Gardens, where property prices reaching £672,856.
Additionally, the most expensive street outside Edinburgh is the Morningfield Road, which is located in the west end of Aberdeen, with average property reaching £592,297.
Glasgow’s most expensive street is the Royal Gardens, at £571,500 per average property while Victoria Park Gardens South in Broomhill, has an average property price of £523,429.
Japan Land appoints new managing director
Japan Land appoints new managing director
Dec 31, 2009 - PropertyGuru.com.sg
Japan Land, a Mainboard-listed property investment company, said last Wednesday that it has appointed Leow Tet Sin as the new managing director and member of the company’s nominating committee, effective from December 23.
The recent appointment settles a conflict of interest issue that has overwhelmed the company since November, when Sin Boon Ann, a member of parliament for Tampines and Japan Land's independent director and lawyer, resigned from the board.
Mr. Sin vacated the board of directors, claiming that he is not satisfied that the company has enough control of Japan Asia Land Limited, its operating subsidiary.
The spotlight was also directed on a possible conflict of interest as Mitsutoshi Ono, one of the former managing directors of Japan Land, was at the same time the president of Japan Asia Land, the firm's subsidiary.
Mr. Ono has resigned as managing director and presently does not sit on the company's board of directors.
With Mr. Leow’s appointment, the company affirmed that there are no changes to the composition of the other Board Committees.
Dec 31, 2009 - PropertyGuru.com.sg
Japan Land, a Mainboard-listed property investment company, said last Wednesday that it has appointed Leow Tet Sin as the new managing director and member of the company’s nominating committee, effective from December 23.
The recent appointment settles a conflict of interest issue that has overwhelmed the company since November, when Sin Boon Ann, a member of parliament for Tampines and Japan Land's independent director and lawyer, resigned from the board.
Mr. Sin vacated the board of directors, claiming that he is not satisfied that the company has enough control of Japan Asia Land Limited, its operating subsidiary.
The spotlight was also directed on a possible conflict of interest as Mitsutoshi Ono, one of the former managing directors of Japan Land, was at the same time the president of Japan Asia Land, the firm's subsidiary.
Mr. Ono has resigned as managing director and presently does not sit on the company's board of directors.
With Mr. Leow’s appointment, the company affirmed that there are no changes to the composition of the other Board Committees.
Greenlodge Condo up for en bloc sale, with $135m asking price
Greenlodge Condo up for en bloc sale, with $135m asking price
Dec 31, 2009 - PropertyGuru.com.sg
Owners at Greenlodge Condominium in Toh Tuck Road launched its freehold estate for en bloc sale. This was prompted by the improving property market.
They are asking for $135 million for the site, which translates to $683 per square foot per plot ratio (psf ppr), including the development charge.
The 14,000-sq-ft freehold land currently comprises 80 units.
Newman & Goh, the marketing agent of Greenlodge Condo, believes that the site can be potentially redeveloped to 211 units of boutique apartments at an average size of 1,000 sq ft.
Newman & Goh expects to fetch no less than $1250 per sq ft for this new development project.
The collective tender for the site will close on January 13, 2010.
Dec 31, 2009 - PropertyGuru.com.sg
Owners at Greenlodge Condominium in Toh Tuck Road launched its freehold estate for en bloc sale. This was prompted by the improving property market.
They are asking for $135 million for the site, which translates to $683 per square foot per plot ratio (psf ppr), including the development charge.
The 14,000-sq-ft freehold land currently comprises 80 units.
Newman & Goh, the marketing agent of Greenlodge Condo, believes that the site can be potentially redeveloped to 211 units of boutique apartments at an average size of 1,000 sq ft.
Newman & Goh expects to fetch no less than $1250 per sq ft for this new development project.
The collective tender for the site will close on January 13, 2010.
Government to launch 10 sites for tender in H1 2010
Government to launch 10 sites for tender in H1 2010
Dec 31, 2009 - PropertyGuru.com.sg
The government announced that its industrial land sales programme will put 10 sites, including two on the confirmed list, up for tender in the first half of 2010.
Sites on the confirmed list will be launched for tender regardless of developers' interest.
The two sites on the confirmed list include a new site at Ubi Road 1 and a site at Tampines Industrial Avenue 4, which was formerly on the government’s reserve list.
The two confirmed sites have a total of 8.39 hectares site area.
The remaining sites are on the reserve list.
These sites will be launched for sale only after a developer commits to bid at or above the minimum price.
Only the Pioneer Road North site is new to the list.
The rest of the seven sites will be carried over from the reserve list in 2009. These include the Yishun Ave 6, Woodlands Ave 12, Toh Tuck Ave. and Serangoon North Ave 4.
Eight sites included on the reserve list have a total of 13.46 hectares site area.
Due to the uncertain market outlook in October 2008, the confirmed list was suspended then.
However, with the stronger demand seen this year, National Development Minister Mah Bow Tan announced in September 2009 that the confirmed list will be reinstated in the Government Land Sales (GLS) Programme for H1 2010.
Dec 31, 2009 - PropertyGuru.com.sg
The government announced that its industrial land sales programme will put 10 sites, including two on the confirmed list, up for tender in the first half of 2010.
Sites on the confirmed list will be launched for tender regardless of developers' interest.
The two sites on the confirmed list include a new site at Ubi Road 1 and a site at Tampines Industrial Avenue 4, which was formerly on the government’s reserve list.
The two confirmed sites have a total of 8.39 hectares site area.
The remaining sites are on the reserve list.
These sites will be launched for sale only after a developer commits to bid at or above the minimum price.
Only the Pioneer Road North site is new to the list.
The rest of the seven sites will be carried over from the reserve list in 2009. These include the Yishun Ave 6, Woodlands Ave 12, Toh Tuck Ave. and Serangoon North Ave 4.
Eight sites included on the reserve list have a total of 13.46 hectares site area.
Due to the uncertain market outlook in October 2008, the confirmed list was suspended then.
However, with the stronger demand seen this year, National Development Minister Mah Bow Tan announced in September 2009 that the confirmed list will be reinstated in the Government Land Sales (GLS) Programme for H1 2010.
ST : HDB prices hit new high
Jan 4, 2010
HDB prices hit new high
By Jessica Cheam
HDB resale flat prices rose about 8 per cent for 2009. -- ST PHOTO: STEPAHNIE YEOW
PRICES of Housing Board resale flats continued its relentless climb, rising 3.8 per cent in the fourth quarter of last year to hit a fresh record.
The Resale Price Index (RPI) hit 150.7 in the fourth quarter, up from 145.2 in the third quarter, according to flash estimate released by the HDB on Monday.
This means HDB resale flat prices rose about 8 per cent for 2009. Analysts say this is due to the nascent economic recovery and strong demand for resale flats.
HDB said on Monday it will continue to launch more build-to-order flats in 2010 'if there is sustained demand for new flats',.
It will ensure that there is an adequate supply of flats to meet prevailing housing needs, it said.
About 1,300 new flats will be launched for sale tomorrow in Choa Chu Kang and Hougang.
Full public housing data for the fourth quarter will be released on Jan 22.
HDB prices hit new high
By Jessica Cheam
HDB resale flat prices rose about 8 per cent for 2009. -- ST PHOTO: STEPAHNIE YEOW
PRICES of Housing Board resale flats continued its relentless climb, rising 3.8 per cent in the fourth quarter of last year to hit a fresh record.
The Resale Price Index (RPI) hit 150.7 in the fourth quarter, up from 145.2 in the third quarter, according to flash estimate released by the HDB on Monday.
This means HDB resale flat prices rose about 8 per cent for 2009. Analysts say this is due to the nascent economic recovery and strong demand for resale flats.
HDB said on Monday it will continue to launch more build-to-order flats in 2010 'if there is sustained demand for new flats',.
It will ensure that there is an adequate supply of flats to meet prevailing housing needs, it said.
About 1,300 new flats will be launched for sale tomorrow in Choa Chu Kang and Hougang.
Full public housing data for the fourth quarter will be released on Jan 22.
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