BT : Luxury projects to dominate this year

Business Times - 14 Jan 2010

Luxury projects to dominate this year

CBRE data shows over 40% of homes will be launched in core central region

By UMA SHANKARI

DEVELOPERS are expected to push out a slew of high-end and luxury projects in 2010 as buying momentum starts returning to these segments of the property market.

Data from CB Richard Ellis (CBRE) shows that of the 7,975 landed and non-landed homes that are likely to be launched in 2010, more than 40 per cent of them are in Singapore's core central region (CCR), which includes the prime Districts 9 and 10, the financial district and Sentosa Cove.

A total of 3,469 homes will be in the CCR. Another 3,071 units are in the outside central region, which is a proxy for suburban mass-market locations. The remaining 1,435 homes are in the mid-tier rest of central region.

In contrast, most private home launches in 2009 were in the mass market.

'The first half of 2010 will see a wider spread of project launches from mass market, to city fringe and to prime locations,' said Joseph Tan, CBRE's executive director of residential.

'A lot of developers did not launch or re-launch their high-end and luxury projects last year as prices were down,' said Cushman & Wakefield Singapore managing director Donald Han.

'They were holding onto their projects because they could afford to. Now, with prices beginning to climb, we can expect more launches in these segments.'

According to Goldman Sachs, luxury homes prices here are still some 19 per cent below their 2007 peak, while prime and mass market home prices are 8 per cent and 4 per cent lower than their previous peaks respectively.

However, it is unclear if the take-up for luxury homes will be as strong as that seen during the 2007 boom. Back then, sales were fuelled by international buyers. But now, most developers and analysts agreed that foreign demand has not returned as strongly as hoped to the high-end and luxury market.

But sellers are still hopeful that the openings of the integrated resorts will once again kick-start more interest from international investors into Singapore.

The fact that luxury prices are still far from their peaks means that investing in Singapore will once again prove to be attractive to international buyers, Mr Han added.

Said UOB Kay Hian analyst Vikrant Pandey: 'The growing acceptance of Singapore as a choice destination to live and work will fuel prices further because property prices in Singapore are still significantly lower than those of key gateway cites of Monaco, London, New York, Hong Kong, Tokyo and Moscow.'

There is also a lot of speculation on the ground about how developers will replenish their landbanks once they start selling luxury and high-end homes once again. In 2006 and 2007, a scramble for prime residential sites led to a booming collective sales market.

'All developers we spoke to are looking to participate in the government land sales for 2010, as land banks have been run down in the strong buying momentum in 2009,' said Macquarie analysts Elaine Cheong and Soong Tuck Yin in a Jan 6 note.

'A few have lost out in 2009 tenders due to intense competition. We see overpaying for land as a key risk for developers in 2010.'

Some analysts believe that collective sales, which witnessed a slump in 2008 and 2009, with only one transaction compared to 116 in 2007, could stage a comeback in 2010 if the strong buying sentiment in the property market continues well into the year.

'We expect en bloc sales to make a comeback on the back of: rapidly falling inventory levels among developers; the H1 2010 government land sales programme (which) mainly targets the mass-market segment; a recent surge in high-end transactions; moderation in price expectations by collective sale home owners; and the transformation of Singapore into a top global city with the opening of the integrated resorts,' said UOB Kay Hian's Mr Pandey.

But Goldman Sachs said that the en bloc fever is not likely to return anytime soon.

'Developers' demand concerns still trump the need to replenish land banks, suggesting a new wave of en-bloc sales is not yet in sight,' said analysts Paul Lian and Rishab Bengani yesterday.

'As a group, developers made $2.5 billion in land purchases in 2009, flat over 2008, and some 75 per cent below 2006 peak levels, despite record take-up in 2009.'



Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved

BT : Lag effect may see construction easing as contracts fell last year

Business Times - 14 Jan 2010

Lag effect may see construction easing as contracts fell last year

But slew of public sector projects may keep builders busy in the days to come

By KALPANA RASHIWALA

(SINGAPORE) The value of construction demand, as measured by contracts awarded in Singapore, fell 41 per cent last year to $21 billion on the back of the economic slowdown and global financial slump. However, the 'exceptionally strong construction demand' in 2007 and 2008 buoyed on-site construction activity to a record level of about $30 billion in 2009.

Senior Minister of State for National Development and Education Grace Fu reavealed this yesterday in her opening addresss at the BCA-Redas Construction & Property Prospects 2010 Seminar yesterday.

On-site construction activity or construction output is measured by certified progress payments. Building & Construction Authority (BCA) forecasts that construction output will ease to $27-29 billion this year and soften further in 2011-2012. This will be in view of a moderation in construction demand since last year. For this year, the authority predicts that some $21-27 billion of contracts could be awarded, with the figure easing to $18-25 billion per year in 2011-2012.

Last year's $30.4 billion record construction output reflects a 16 per cent rise from $26.2 billion in the preceding year. It also marks the third consecutive year of double-digit growth.

The drop in construction demand in 2009 was much more pronounced for private sector contracts, which tumbled from $20.2 billion in 2008 to $7.5 billion last year. BCA attributed this to the effects of the global financial crisis, particularly in first-half 2009.

Public sector construction contracts fell at a much slower clip, from $15.5 billion in 2008 to $13.5 billion last year, making up 64 per cent of total construction demand in 2009. Civil engineering works made up the lion's share of public sector demand, hitting a record $8 billion last year, fuelled by major contracts awarded for the MRT Downtown Line Stage 2, Marina Coastal Expressway (Marina Wharf) and first phase of the Jurong Rock Cavern, among others.

In the private sector, residential construction demand plummeted by slightly more than half to $2.9 billion last year as developers became cautious amid looming uncertainty especially in the early part of 2009. Commercial construction demand in the private sector also shrank from a high of $8.3 billion in 2008 to $1.2 billion last year on the back of the battered office market as well the high statistical base in 2008, when major construction jobs were awarded for the development of the two integrated resorts and the Marina Bay Financial Centre.

Ms Fu said that economic growth this year will translate to a gradual pick-up in private sector construction demand.

She also emphasised that Government will continue to invest in infrastructure works. Key public sector works include the MRT Downtown Line Stage 3, construction of new HDB flats and upgrading and development of new educational and healthcare facilities. Koh Brothers group CEO and managing director Francis Koh was heartened by the list of government construction jobs over next few years revealed by Ms Fu.

Singapore Contractors Association executive director Simon Lee told BT: 'We are are hoping that the value of construction work can be more steady; big fluctuations of work load make it difficult for contractors to optimise resources and maintain competencies'. He also suggests more holistic public and private sector partnership for Singapore contractors to export their services overseas, for instance, in green building technology, mass rapid transit systems and affordable housing.

At yesterday's seminar at Orchard Hotel, Ms Fu witnessed the signing of an MOU involving BCA Academy, UniSIM and Singapore Polytechnic to develop a Bachelor degree programme in integrated events and sustainable facilities management, which focuses on green systems maintenance and management.

Separately, BCA will collaborate with University College of London to conduct a Master of Science programme in Facility and Environment Management in Singapore. 'Such internationally recognised certifications will allow our green professionals to meet the needs of the industry and the region,' Ms Fu said.

She also highlighted efforts to grow the pool of engineers in Singapore. The Professional Engineers Board (PEB)recently expanded the list of recognised qualifications for registration as professional engineers. BCA and PEB are also working on promoting engineering as a 'rewarding lifelong career'.

Mr Koh acknowledged that getting local engineers is a major challenge for the construction industry.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

BT : Property sales pick up again at Sentosa Cove in 2009

Business Times - 14 Jan 2010

Property sales pick up again at Sentosa Cove in 2009

Foreigners again look to buy homes on the island as the economy improves

By UMA SHANKARI

AFTER a muted 2008, property sales at Sentosa Cove picked up again in 2009 as buyer interest returned to the high-end and luxury segments of Singapore's property market.

According to data compiled by Savills Singapore, 125 non-landed and 33 landed homes were sold on the island in 2009, up from 67 non-landed units and just five landed homes in 2008.

And more homes worth more than $10 million apiece were also sold on the island last year. Savills' data shows that 30 homes worth $10 million and more were sold at Sentosa Cove in 2009, compared to just one such property in 2008 and 15 during the height of the property boom in 2007.

Developers and analysts say that with the global economy picking up, foreigners are once again looking to buy properties on the island.

Sentosa Cove is the only place in Singapore where foreigners can own landed property without special permission.

'Sentosa Cove with its unique lifestyle offerings has already attracted a strong following of high net-worth individuals from around the globe,' said DTZ managing director Margaret Thean.

She noted that the recent sales of Malaysia-based YTL Corporation's Kasara project at Sentosa Cove demonstrates the optimism of market sentiment and confidence in Singapore's luxury property market, which is expected to be further strengthened with the completion of the developments around the Marina Bay Financial Centre and the two upcoming integrated resorts.

YTL said last week that it has sold six of the 13 villas at Kasara at prices ranging from $14 million to $22 million. This works out to about $1,600 per square foot on average. Buyers included foreigners from Asia-Pacific and Europe.

The improved sentiment means that potential buyers can expect project launches on the island soon. City Developments is expected to launch its 228-unit luxury project The Quayside Collection soon.

The property group last year announced that it will delay launching the project due to the subdued property market and global economic uncertainty but will proceed with construction.

And Ho Bee Investment could also launch its two remaining Sentosa Cove projects later this year. The group has the 151-unit Seascape as well as Pinnacle Collection, which has some 280 apartments in all, left in its portfolio.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



Unique lifestyle: YTL says it has sold six of the 13 villas at Kasara




City Developments is expected to launch its 228-unit luxury project The Quayside Collection soon

BT : 2010: The year of luxury homes

Business Times - 14 Jan 2010

2010: The year of luxury homes

5-10% rise seen in high-end residential prices; slight drop expected in the number of GCB transactions

By UMA SHANKARI

PRICES of luxury and high-end homes in Singapore started inching up in 2009, but analysts and developers here are confident that there is room for further growth.

Developers here are unanimous in agreeing that mid to high-end residential prices will climb in 2010. And among property consultants, the expectation of price growth ranges from 5 to 10 per cent for the most part, although some are predicting increases of as high as 30 per cent.

Data from Savills Singapore shows that the prices of high-end homes on the mainland in Districts 1, 9, 10 and 11 (which include Shenton Way, Orchard, Holland, Newton and Bukit Timah) have been climbing since Q2 2009.

The average unit price of high-end homes fell from $1,621 per square foot (psf) in Q2 2008 to $1,174 in Q1 2009, the property firm said. But prices have since rebounded and the average unit price of high-end homes was $1,543 psf in Q4 2009.

And they still have some way to go.

'We are very positive on the luxury sector,' said Savills Singapore managing director Michael Ng. 'The segment is still a laggard (in terms of prices) compared to the mass and mid-range markets.'

Echoed OCBC Investment Research analyst Foo Sze Ming: 'We reiterate our positive view on the high-end property segment as it is likely to benefit most from the opening of the two integrated resorts this year.'

However, estimates for how much prices in this segment are expected to climb vary greatly, with predictions ranging from 5 per cent to 30 per cent.

Over the last year, prices of mass and mid-range private homes have caught up with and even surpassed that seen during the previous peak. But for the high-end/luxury segment, prices are still some 25-30 per cent off their peaks, Savills' Mr Ng said.

'We are confident that (high-end/ luxury) prices will move as much as 30 per cent over the next 12-24 months,' he added. 'We have already seen this happen in the mass market, over just the last nine months.'

Other estimates are more modest. Goldman Sachs yesterday raised its forecasts for high-end property prices, and now expects high-end prices to rise 10-15 per cent. The bank's research shows that by segments, luxury home prices are 19 per cent below their 2007 peak, while prime and mass-market home prices are respectively 8 per cent and 4 per cent lower than their previous peaks.

'We expect the high-end to lead for the better part of 2010; there is still positive carry in rental yields, as rents hold steady even as consensus braces for a 10 per cent decline,' said analysts Paul Lian and Rishab Bengani. And as the volume of total home sales falls, the high-end and luxury markets are expected to make up a larger piece of the pie.

On a yearly basis, 2009 saw the second highest number of new private home sold. Developers sold around 14,500 new homes last year - second only to the record take-up of 14,811 units in 2007.

But in spite of the high volume of new sales last year, caveats lodged show that the total value of the homes sold is only around 60 per cent of that in 2007. The lower quantum was attributed to the dominance of mass-market and mid-tier homes that were sold in 2009, compared to 2007 when high-end homes stole the limelight.

This is expected to change in 2010. Analysts reckon that the take-up in 2010 will moderate to 8,000-10,000 units. But the activity is expected to move into the high-end and luxury segments. Mr Ng estimates that the volume of high-end and luxury home sales could climb by 50 per cent.

The year began well last week, with property giant CapitaLand reporting that it has sold 60 apartments in the 165-unit Urban Suites condominium in the Cairnhill area, at prices ranging from $2,400 to $2,700 psf.

In line with the rising interest in luxury homes, sales of good class bungalows (GCBs) also picked up in 2009.

According to CB Richard Ellis, the average price on a psf basis reached a high of $826 last year, up from $820 in 2008 and $681 in 2007.

And transaction volumes have also started picking up.

Data from Savills Singapore shows that 74 GCBs worth a total of $1.3 billion changed hands in 2009. This was a up from 43 GCBs and $745.7 million in 2008.

Most of the transactions last year took place in the second half of the year - 35 GCBs were sold in Q3 and another 15 were sold in Q4 2009.

'A lot of people jumped into the GCB bandwagon from April last year,' said Savills Singapore's director of investment sales and prestige homes Steven Ming. 'People sidelined themselves from the GCB market in 2008 in anticipation of a further slowdown in the economy. So there was a backlog of demand.'

Sales were also boosted by a low interest rate environment.

For 2010, Mr Ming expects a slight drop in the number of GCB transactions, and estimates that 60-80 bungalows will be sold: 'We are expecting volumes to slow in 2010 because those investors who wanted to buy in the last two years would have bought last year.'

As for prices, no big surges are expected either, with Mr Ming predicting at most a 5-10 per cent climb for the GCB market in 2010.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



The year began well last week, with CapitaLand reporting it has sold 60 apartments in the 165-unit Urban Suites condominium (artist's impression above) in the Cairnhill area, at prices ranging from $2,400-$2,700 psf.

BT : Green Lodge tender receives 'a few' bids

Business Times - 14 Jan 2010

Green Lodge tender receives 'a few' bids

THE tender for the collective sale of Green Lodge at Toh Tuck Road closed yesterday afternoon but it is not clear if a winner for the site has emerged.

BT understands that there were 'a few' bids for the freehold parcel, but marketing agent Newman & Goh was tight-lipped over the results of the tender. It is conducting due diligence and has imposed a blackout period in the meantime.

The 80-unit Green Lodge, spanning 151,075 sq ft with a plot ratio of 1.4, was put up for sale at end-December last year. The asking price stood at $135 million, and including a development charge of around $9.5 million, the price worked out to $683 per sq ft per plot ratio.

The winning developer would be able to launch a project with around 211 units measuring an average 1,000 sq ft.

A consultant estimated that the units could be sold at around $1,000-$1,100 psf, while Newman & Goh projected an average selling price of at least $1,250 psf.

In a report issued yesterday, analysts from Goldman Sachs expressed reservations over the return of collective sales activity for now. 'Even though developers are financially stronger, we think they will choose to stay on the sidelines in the en bloc market until demand returns more visibly in 2H 2010,' they said.

'A good indication of potential trigger points for en blocs is the widening of primary over secondary market prices.'

BT : Tender prices for building works ease 15% last year

Business Times - 14 Jan 2010

Tender prices for building works ease 15% last year

By KALPANA RASHIWALA

(SINGAPORE) Building & Construction Authority's official tender price index for building works eased about 15 per cent last year.

Quantity surveyor Davis Langdon & Seah's overall tender price index declined by 20 per cent last year and it predicts a possible increase of 3-5 per cent this year, likely in the second half.

The firm's director Seah Choo Meng says: 'Construction material prices are generally stable (for example granite and sand); the exceptions are copper and aluminium prices, which have escalated. Oil prices remain a question mark. Prices of building materials may escalate moderately. However, no major upheaval in material price and construction costs is anticipated in 2010.'

This is because overall construction demand from the private sector is expected to increase only modestly this year, and that too from a very low level last year; hence competitive and realistic pricing in tenders is expected, he added.

Construction costs are now levelling off following last year's decline, and they will be stable for the first two quarters of this year. 'But when public and private sector construction jobs, which are now in the pipeline, go up for tender towards the second half, most of us anticipate a 3-5 per cent cost increase in tender prices,' he added.

'Following the Dubai fiasco, some contractors are also returning from the Middle East to Asia including Singapore, looking for work,' Mr Seah said.

Davis Langdon & Seah's forecast of a 3-5 per cent hike in its tender price index is in line with figures that Mr Seah cited from two other quantity surveying firms at the BCA-Redas Construction and Property Prospects 2010 Seminar yesterday.

Rider Levett Bucknall has forecast a tender price escalation of about 3 per cent for full year while KPK Quantity Surveyors envisages an average rise in tender prices of 2-5 per cent this year.

The Building & Construction Authority noted that last year's decline in tender prices in the aftermath of the global finanical crisis was largely contributed by the declines in prices of major construction materials, including concrete, reinforcement bars, structural steel as well as mechanical and electrical components. However, the decline in construction costs moderated towards the second half of 2009 as the prices for concrete and reinforcement bar stabilised.

Lim Yew Soon, project director at Evan Lim & Co, reckons that construction material prices may go up this year because of higher oil prices and that would neutralise any decline in labour costs arising from weaker demand last year.

ST : Integrating the elderly in HDB living

Jan 13, 2010

Integrating the elderly in HDB living

By Rachel Chang

A RANGE of HDB housing options is available for the elderly, from studio apartments for those who prefer to live alone, to paired-unit flats that let them live separately but next door to their children and grandchildren.

At the same time, HDB estates are designed to be barrier-free and with social spaces for different generations to interact.

The overriding aim of these efforts is to allow the elderly to live an active and independent lifestyle while not isolating them, said Senior Minister of State for National Development Grace Fu.

Ms Fu was replying to Nominated MP Paulin Straughan, who had asked about the multi-generation living scheme at SkyTerrace@Dawson.

The scheme - which pairs a studio flat with an adjacent four- or five-room flat - has been oversubscribed, with 408 applications for 65 paired units.

Ms Fu said the HDB will study the response and consider public feedback to decide if the scheme should be extended to future projects.

She noted that it complements HDB's existing policies that encourage young couples to live near their parents.

Currently, those intending to live with or near their parents have double the chances in balloting for a new flat. And those buying a resale flat can apply for a higher Central Provident Fund grant of $40,000. The grant is otherwise $30,000.

SkyTerrace@Dawson will have facilities catering to both the young and the elderly, such as a children's playground, an elderly fitness corner and a taiji court.

However, some elderly folk prefer to live alone or in a town they are familiar with, noted Ms Fu. 'So even though the children may have grown (up) and moved away, they are not prepared to move to a new flat.'

So, both stand-alone studio apartments and studio apartments paired with flats have been built.

Associate Professor Straughan said she had heard 'from the ground' that young Singaporeans did not want to live in estates where studio apartments for the elderly predominated.

She did not elaborate on the reason, but past reports have suggested that such estates are sometimes targeted by thieves and con men.

Replying, Ms Fu said it was 'part and parcel' of living in an HDB estate to have neighbours from a wide range of backgrounds.

'We would not want to see an enclave of elderly,' she said.

'That, in a way, is the value of HDB estates - that we see this real integration of different segments of Singaporeans, whether age- or income-wise. I think Singaporeans have come to accept this as part of HDB estate living.'

TODAY Online : 'Singaporeans don't mind living near old folk

'Singaporeans don't mind living near old folk'

05:55 AM Jan 13, 2010

by Alicia Wong

SINGAPORE - Is it true that younger Singaporeans do not want to live in estates where studio apartments for seniors predominate, asked Nominated Member of Parliament Paulin Straughan in Parliament yesterday.

In response, Senior Minister of State for the Ministry of National Development (MND) Grace Fu said that Singaporeans have "come to accept" the integration of different segments of Singaporeans in HDB estates.

"We would not want to see an enclave of elderly and elderly only, so I think it will be part and parcel of every Singapore resident staying in HDB estates to see various income segments, age group, as well as family or career background staying together."

Giving an update on the Multi-Generational Living Scheme (MGLS) in HDB's SkyTerrace@Dawson - which pairs studio apartments with four- and five-room flats so extended families can live together in adjacent units - Ms Fu said the scheme closed with 408 applications for the 65 paired units on Dec 28. The MND will study the scheme to decide if it should be extended to future projects.

Currently, the HDB encourages young couples to live near their parents, by doubling their chances when they ballot for a new flat. Those buying a resale flat can apply for a higher CPF housing grant of $40,000.

Associate Professor Straughan, who noted that inter-generational living in separate but adjacent households seems "to be the ideal living arrangement", asked if the MND has further initiatives to promote this option, and what the response from older Singaporeans is.

Ms Fu said the Government provides standalone studio apartments and studio apartments adjacent to regular flats to give Singaporeans "choices".

The MND's survey shows some elderly prefer to live on their own, a "big proportion" prefer to stay with their children, while others prefer living in a familiar area.

The "common theme that cuts across these options", Ms Fu added, "is that we do not want to see isolation of the elderly." She also clarified the scope and responsibility of different stakeholders over common issues such as estate maintenance and killer litter, in response to questions from MP Denise Phua (Jalan Besar).

While HDB will rectify defects in new flats during the one-year defects liability period, the town councils are responsible for their estate's cleanliness, maintenance and upkeep. Government agencies will step in when necessary, for instance "when nation-wide consistency is critical or where the consequences of non-compliance with rules are severe", she said.

ST : HDB flat owners required to register tenants' details

Jan 13, 2010

HDB flat owners required to register tenants' details

HDB flat owners who sub-let rooms in their flats will, from next month, have to register with the Housing Board within seven days of doing so.

They are also required to notify the HDB when they renew or terminate the sub-letting of rooms, and when there are changes to their sub-tenants' particulars.

While there has been no need to seek prior approval for sub-letting of rooms, the latest move supports ongoing efforts by the Home Affairs Ministry to eradicate loan-sharking activities, and comes amid changes made to the law to better deal with the problem.

The HDB noted in a statement yesterday that some people used their old addresses to borrow from loan sharks while they rented a room in another HDB flat.

This resulted in the new occupiers of the flat being harassed by loan sharks instead, while the borrowers were untraceable as they moved without updating their addresses.

'Through this new rule, HDB will be able to capture the particulars of those who rent rooms in HDB flats. With information on the addresses of owners and subtenants, the Ministry of Home Affairs will be able to trace the movements of borrowers,' the statement said.

In Parliament yesterday, Associate Professor Ho Peng Kee, who is Senior Minister of State for Law and Home Affairs, said the move will make it harder for borrowers to remain untraceable when they rent a room in an HDB flat.

In tandem with the HDB's move, the National Registration Act and Immigration Act will also be amended to empower the Immigration and Checkpoints Authority to obtain information from the HDB to administer and enforce the new requirements more effectively.

AsiaOne : Two-room flat costs more than a four-room

Two-room flat costs more than a four-room

A two-room flat in Chinatown was sold for the record price of $245,000. -AsiaOne

Wed, Jan 13, 2010
AsiaOne



[Photo: Mr Adrian Wee (28, left) of OrangeTee was the agent who handled the transaction for the former home owner, Mr Tan (43, right).]

A two-room flat in Chinatown was sold for $245,000 recently, creating a new record for the re-sale price of HDB two-room flats.

Located at Jalan Kukoh, the flat is on a higher floor of block 10, and is about 40 years old.




Photo: Courtesy of Mr Adrian Wee


Home owner Mr Tan, a 43-year-old advertising executive, bought the unit with his wife two years ago at about $145,000. They decided to sell as they want to move to a larger flat.

"We bought this unit because we wanted to live in Tiong Bahru, but could not afford a four-room flat in this area. Now, we want to upgrade to a larger flat. We also find it too noisy as it is near the highway," he told Shin Min Daily.

According to OrangeTee property agent Mr Adrian Wee, 28, the new flat owners are a young couple with one child. Besides the central location, the flat is also near to where their parents stay. As they also like the simple, open layout of the flat, they did not object to the noise from nearby traffic.

The flat's floor area of 53 square metres includes a living room and one bedroom; an additional storeroom was added by the former home owners. The price of $245,000 is about $45,000 above valuation.

Mr Tan says that although he made a tidy profit from the sale, the price over valuation of his new four-room flat is also quite substantial, so it is just enough to cover his costs of buying a new home.

According to HDB figures, the average price of a two-room flat in Tiong Bahru was about $190,000 to $220,000.

ECG Property CEO Mr Eric Cheng says that the price is high, but still reasonable for the prime location.

"Some couples prefer flats in mature estates as they are near the city and they can save time and transport costs," he told Shin Min.

PropNex CEO Mr Mohd Ismail said that many of the home owners are elderly, and most of them have no intention of selling their flats, so it can be hard to find one on the market.

"For this price, a young couple can get a new four-room flat in Punggol," he said.

BT : Home price rise reflects demand, not a bubble: DBS

Business Times - 13 Jan 2010

Home price rise reflects demand, not a bubble: DBS

By CONRAD TAN

THE recent sharp rise in private home prices here is not yet indicative of a bubble and prices could increase further, DBS Group research head Timothy Wong said yesterday.

'In the mass market, what you are seeing is real end-user demand that is catching up,' he told reporters at a briefing to present the group's economic outlook and investment strategy for the year.

'If you look at affordability levels, the average cost to service a mortgage taken against the median wage is about 30 per cent, which is fairly stable. When it moves up to 50 per cent, you know you have a bubble forming.

'So we're not really at a bubble stage yet. I think the last time we had a major bubble was probably in 1995-96, when queues were forming outside showflats and people were buying three or four properties at one go.

'This time, it's more circumspect - there are some speculators out there, but by and large people are genuinely buying homes to upgrade and move into,' Mr Wong said.

'Rental yields have come down, because they were exceptionally high at about 4-5 per cent, now they're about 3-3.5 per cent. If they got down to one per cent, I would say that represents a bubble.'

The group's research team expects high-end private home prices here to rise a further 10-15 per cent this year, while mid-tier home prices are expected to rise 5-10 per cent. It expects any increase in the price of mass-market private homes and public housing to be relatively muted.

AsiaOne : Flat owners to register subletting of rooms with HDB

Flat owners to register subletting of rooms with HDB

Tue, Jan 12, 2010
AsiaOne

From February 1 this year, flat owners who sub-let rooms in their HDB flats will have to register with the Housing & Development Board (HBD) within seven days.

They will also be required to notify HDB when they renew or terminate the sub-letting of rooms, as well as any changes to their sub-tenants' particulars. However, there is no need to seek prior approval for sub-letting of rooms.

HDB said that the new rule will support the Ministry of Home Affairs (MHA)'s on-going efforts to eradicate loan-sharking activities, and will better protect DB residents. Through this, HDB will be able to capture the particulars of those who rent rooms in HDB flats.


The requirement will apply to both new and existing cases of room sublets.

For tenancies that commenced before February 1, owners will be given a six-month grace period from that date to register. Meanwhile, for sublets from February 1, owners will have to register with HDB within 7 days from the start date of subletting.

According to a statement from the HDB, the following information must be provided:

Sub-letting commencement date
Sub-letting expiry date
No. of rooms sublet
Rental per month
Name of sub-tenants
Househould structure of sub-tenant
UIN/FIN of sub-tenant
Nationality of sub-tenant
Citizenship of sub-tenant
Ethnicity of sub-tenant
Work pass of sub-tenant (e.g. work permit, employment pass)
Sector which sub-tenant works in
Reasons for subletting
Registration may be done either online, or at the Branch Office, where staff will be able to guide them on the registration process.

Flat owners who flout the rule will face a penalty of up to $3,000. Those who repeatedly fail to comply with the requirement may find their flat compulsorily acquired by HDB.

Apart from this new rule, the other terms and conditions for sub-letting of rooms are unchanged.

TODAY Online : Marry, so I can get a flat?

Marry, so I can get a flat?

10:30 PM Jan 11, 2010

Letter from Cheang Kai Wai

I refer to "Asset that keeps growing" (Dec 30) and "Allow young adults to buy HDB flats".

I echo Mr Gurmit Singh Kullar's sentiment that single Singaporeans over the age of 35 with a roof over their heads would have the urge to settle down more readily.

Provided that the right soul-mate would comes along, of course.

However until that day comes, a small group of us are deprived of an opportunity to get a flat due to the Housing and Development Board's (HDB) red tapes governing the 'Eligibility for Loan' policies.

I share my experience:

I am currently over 35 and hold a stable job. However, due to my past spending habits, I am currently in a situation where I am repaying outstanding debts to commercial banks. Therefore over the course of six months, I failed to secure any available commercial bank loan due to my bad credit ratings.

I approached HDB for aid in granting me a 'Eligibility for Loan' approval so that I can purchase my own flat.

However despite several attempts, I was rejected again and again because I had failed to satisfy the one condition stipulating the 'maximum income cap ceiling' .

HDB's only reason for rejecting me is that my salary exceeds this income ceiling. Thus, I am placed in a situation when a hardworking Singaporean who tries his best to earn his keep is being penalised for earning too much. Despite justifying my situation, I am deemed to be not deserving of any aid. These attempts also failed even with the assistance from my Member of Parliament.

I can only conclude that if a Singaporean - who has tried all other means to secure a roof over his head - cannot depend on the HDB, then who else can we depend on?

Apparently in my situation, I am left to fend for myself.

Maybe our other alternative is to just find someone - anyhow, anywhere - to get married to just to be eligible to get a flat.

We would get divorced later when we realise that the foundation of this marriage is based on the wrong needs - the need for a HDB flat.

No wonder divorce cases are arising very year.

BT : CDL said to have sold office block for $13m

Business Times - 12 Jan 2010


CDL said to have sold office block for $13m

Price for six-storey Jalan Besar building comes to $940psf of net lettable area

By KALPANA RASHIWALA

CITY Developments Ltd (CDL) is said to have sold another smallish office block, this time at the corner of Jalan Besar and Kitchener Road.

The Office Chamber is believed to have been sold for slightly over $13 million. This works out to around $940 per square foot of net lettable area on the six-storey freehold property's estimated net lettable area (NLA).

However, the buyer, believed to be a local investment company, is expected to refurbish the property extensively and this could see the NLA increase.

The Office Chamber's gross floor area is more than 22,000 sq ft.

In November last year, CDL sold nearly all of a 999-year leasehold office block at North Bridge Road for $46 million or about $1,194 psf of strata area.

Buyer ERC Holdings plans to spend $3.5 million to $5 million to renovate the six-storey block for use as a campus for private school ERC Institute.

DTZ, which brokered the sale of the North Bridge Road property, is understood to have handled the sale of The Office Chamber as well.

Hong Leong Finance used to be a tenant in The Office Chamber. The property is close to CDL's eco-themed City Square Mall, which opened late last year.

Supermarket chain NTUC FairPrice operates Singapore's first green supermarket at the mall.

Office rents on the island are expected to dip further this year, although at a much slower pace than over the past 15 months.

An unexpected flurry of leasing activity over the past few months has led some office industry watchers to predict a bottoming-out of office rents as early as the middle of this year.

Property consultants are predicting a return to positive office demand to the tune of more than one million sq ft this year on the back of economic growth.

But with over 2.7 million sq ft of new space slated for completion in 2010, vacancies will continue to rise and rents dip, albeit at a slower clip than last year.

Older buildings suffering a flight of tenants to new projects will still face a challenging time this year.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

ST Forum : Buyer's appeal

Jan 12, 2010

Buyer's appeal

'Ensure that Singaporeans can continue to buy resale flats at affordable prices.'

MR GLENN NG: 'I agree with Ms Yvon Lim's letter last Wednesday ('How realistic is $8,000 income ceiling for flats?'). While the combined salary of my wife and me exceeds the ceiling, I wonder if the Government is aware of the heavy financial burden couples like us must bear. Our parents are not working, which means we must set aside monthly expenses to support both sets of parents. We do not live with our parents and must also pay for the homes they live in, including bills. With the present price of resale flats hitting new highs, how can we afford one? We have been married for almost two years and yearn to have a child, but it is financially not feasible. The Government encourages young couples like us to have children but, ironically, obstacles like the income ceiling work against its aim. The influx of foreign talent has directly caused the price of resale flats to spike. While I am all for it, I must also ask what the HDB is doing to ensure that Singaporeans can continue to buy resale flats at affordable prices.'

ST : INCOME CEILING FOR HDB FLATS

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.

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.

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.

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.'

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.