Feb 18, 2010
Malaysians are top foreign buyers of private homes
They accounted for 27% of deals by non-S'poreans
By Harsha Jethnani
MALAYSIANS are snapping up more private homes in Singapore than any other nationality, according to a new report.
DTZ Debenham Tie Leung found that last year, they accounted for 27 per cent of total transactions by non-Singaporeans, who include foreigners and Singapore permanent residents (PRs).
This is the second year in a row that Malaysians have emerged as the most active non-Singaporean purchasers in this type of study, which is based on Urban Redevelopment Authority data and uses caveats lodged as a proxy for sales transactions.
Indonesians were behind 19 per cent of transactions last year, the lowest proportion since 1995, when caveat data became available.
In all four quarters of last year, Malaysian buyers came out tops - a turnaround from the period between 2004 and 2007 when this position was held by Indonesians. And in the final three months of last year, Malaysians were responsible for 25 per cent of transactions by non-Singaporeans, significantly higher than the 17 per cent that went to Indonesians. The two groups of buyers were on an equal footing during the same quarter in 2008.
Mr Joseph Tan, executive director for residential at CB Richard Ellis, said geographical proximity and cultural similarities were key reasons for the interest shown in Singapore by its nearest neighbours.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the legal system and language make it more comfortable for Malaysians to deal with Singaporeans.
Malaysians look at a wider spectrum of property compared to Indonesians, who are more likely to focus on upper-middle tier to high-end homes, noted Mr Tan.
Indonesians made up one-third of total transactions worth more than $1.5 million during the second quarter of last year, according to a previous DTZ study on private residential demand during the period.
In contrast, Malaysians were well represented among the transactions below the $1.5 million mark - particularly in the under $500,000 and the $500,000 to $1 million segments.
Up to 75 per cent of the transactions by Malaysians were made by Singapore PRs, the same report noted.
These PRs - especially those living in Singapore for more than 10 years - have adopted buying patterns similar to Singaporeans', Mr Mak said. He credited the strong continuing demand from the mainly PR Malaysian buyers to their tendency to buy properties to live in, mainly in the mass-market segment, rather than as investments.
harshamj@sph.com.sg
Monday, February 22, 2010
BT : Jan home sales jump on pricier platform
Business Times - 18 Feb 2010
Jan home sales jump on pricier platform
Big turnaround after blip of last year's Q4; choice locations feel the buzz too
By KALPANA RASHIWALA
(SINGAPORE) The private housing market has entered the year on a firm footing, with developers' home sales in January rising to 1,476 units - three times as high as the previous month. They also hit their highest level since August last year.
Of the units launched in January as well as units sold in the same month, about half were in the Core Central Region, reflecting a revival in activity in the choicest housing locations in Singapore. Another interesting statistic gleaned from the latest monthly data released by the Urban Redevelopment Authority (URA) yesterday is that 76 per cent of the total units sold in January were priced at at least $1,000 per square foot (psf). Such a high proportion has not been seen since URA began releasing such data in June 2007, observes property agency PropNex CEO Mohamed Ismail.
Industry players expect this trend to continue for the rest of 2010, pointing to high land prices achieved at state tenders late last year, which would translate into higher target selling prices by developers.
As a developer put it: 'Increasingly, people will accept that $1,000 psf is not a shocking price for mass-market private homes anymore.' He acknowledged, however, that further price increases in this segment will be checked by what HDB upgraders can afford.
Also, many expect sales volumes and price gains this year to shift to the mid and higher price segments, hence supporting a bigger proportion of higher-priced transactions.
It was not price reduction but more launch activity that helped raise developers' January sales volume, notes real estate lecturer Nicholas Mak. 'Average prices in many recently launched projects either increased marginally or remained unchanged,' he added.
A brighter economic outlook and pent-up demand after low sales in Q4 last year also gave January numbers a push, felt CB Richard Ellis (CBRE) executive director Li Hiaw Ho. 'The 1,476 units sold in Jan 2010 alone is about 80 per cent of the 1,860 new homes sold in the entire fourth quarter of 2009,' he said.
House-hunters also moved after noting that the government's property-cooling measures last September did not translate into price reductions, noted Knight Frank chairman Tan Tiong Cheng.
CBRE's Mr Li said the stronger sales volume in January was also partly driven by anticipation of a possible price hike in the mid and high-end segments this year.
The 1,476 private homes (excluding executive condos) developers sold last month was triple the 481 units sold in December last year. The latest January number is nearly 14 times the 108 units sold in January last year.
Developers launched 1,424 private homes last month, almost double the December figure of 734 units, according to URA.
Industry observers also say private home-buying activity is being driven mostly by investment demand rather than owner occupation. 'We're getting a lot of interest from mainland Chinese buyers because luxury home prices in Singapore have not recovered to the extent seen in gateway Chinese cities and Hong Kong,' says DTZ executive director Ong Choon Fah.
CBRE predicts URA's overall private home price index could appreciate 8 to 10 per cent in 2010 after last year's 1.8 per cent rise.
Developers are expected to rev up launches in the coming weeks. 'Some developers who were supposed to have released projects before Chinese New Year held back their launches, for greater clarity on the price of land when the first few state land tenders this year close,' said a senior executive with a major developer. Assuming land costs remain firm, that will give developers greater confidence in pricing their end units, he added.
Low interest rates and improving sentiment will support buying interest from Singapore residents as well as foreigners this year, he argues.
January's top-selling projects in the primary market were Cube 8 at Thomson Road (167 units), The Shore Residences in the Katong area (144 units), RV Edge along River Valley Road (91 units), Urban Suites in the Cairnhill area (88 units) and Parvis at Holland Hill (73 units).
The lowest psf price for a developer sale last month was for a unit sold at $544 psf at Oasis @ Elias; the highest price, $3,243 psf, was for an Orchard View unit.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Jan home sales jump on pricier platform
Big turnaround after blip of last year's Q4; choice locations feel the buzz too
By KALPANA RASHIWALA
(SINGAPORE) The private housing market has entered the year on a firm footing, with developers' home sales in January rising to 1,476 units - three times as high as the previous month. They also hit their highest level since August last year.
Of the units launched in January as well as units sold in the same month, about half were in the Core Central Region, reflecting a revival in activity in the choicest housing locations in Singapore. Another interesting statistic gleaned from the latest monthly data released by the Urban Redevelopment Authority (URA) yesterday is that 76 per cent of the total units sold in January were priced at at least $1,000 per square foot (psf). Such a high proportion has not been seen since URA began releasing such data in June 2007, observes property agency PropNex CEO Mohamed Ismail.
Industry players expect this trend to continue for the rest of 2010, pointing to high land prices achieved at state tenders late last year, which would translate into higher target selling prices by developers.
As a developer put it: 'Increasingly, people will accept that $1,000 psf is not a shocking price for mass-market private homes anymore.' He acknowledged, however, that further price increases in this segment will be checked by what HDB upgraders can afford.
Also, many expect sales volumes and price gains this year to shift to the mid and higher price segments, hence supporting a bigger proportion of higher-priced transactions.
It was not price reduction but more launch activity that helped raise developers' January sales volume, notes real estate lecturer Nicholas Mak. 'Average prices in many recently launched projects either increased marginally or remained unchanged,' he added.
A brighter economic outlook and pent-up demand after low sales in Q4 last year also gave January numbers a push, felt CB Richard Ellis (CBRE) executive director Li Hiaw Ho. 'The 1,476 units sold in Jan 2010 alone is about 80 per cent of the 1,860 new homes sold in the entire fourth quarter of 2009,' he said.
House-hunters also moved after noting that the government's property-cooling measures last September did not translate into price reductions, noted Knight Frank chairman Tan Tiong Cheng.
CBRE's Mr Li said the stronger sales volume in January was also partly driven by anticipation of a possible price hike in the mid and high-end segments this year.
The 1,476 private homes (excluding executive condos) developers sold last month was triple the 481 units sold in December last year. The latest January number is nearly 14 times the 108 units sold in January last year.
Developers launched 1,424 private homes last month, almost double the December figure of 734 units, according to URA.
Industry observers also say private home-buying activity is being driven mostly by investment demand rather than owner occupation. 'We're getting a lot of interest from mainland Chinese buyers because luxury home prices in Singapore have not recovered to the extent seen in gateway Chinese cities and Hong Kong,' says DTZ executive director Ong Choon Fah.
CBRE predicts URA's overall private home price index could appreciate 8 to 10 per cent in 2010 after last year's 1.8 per cent rise.
Developers are expected to rev up launches in the coming weeks. 'Some developers who were supposed to have released projects before Chinese New Year held back their launches, for greater clarity on the price of land when the first few state land tenders this year close,' said a senior executive with a major developer. Assuming land costs remain firm, that will give developers greater confidence in pricing their end units, he added.
Low interest rates and improving sentiment will support buying interest from Singapore residents as well as foreigners this year, he argues.
January's top-selling projects in the primary market were Cube 8 at Thomson Road (167 units), The Shore Residences in the Katong area (144 units), RV Edge along River Valley Road (91 units), Urban Suites in the Cairnhill area (88 units) and Parvis at Holland Hill (73 units).
The lowest psf price for a developer sale last month was for a unit sold at $544 psf at Oasis @ Elias; the highest price, $3,243 psf, was for an Orchard View unit.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : S'poreans take bigger bite of private homes
Business Times - 18 Feb 2010
S'poreans take bigger bite of private homes
They account for 76% of home deals last year, highest since 2005: DTZ
By EMILYN YAP
(SINGAPORE) Singaporeans had a better shot at owning a private home in 2009 as property prices fell in the early part of the year and mass-market launches were the order of the day.
Analysing caveats lodged, real estate consultancy DTZ found that Singaporeans' share of private residential transactions reached 76 per cent last year. This exceeded the 73 per cent in 2008 and was the highest level since 2005.
Permanent residents accounted for 13 per cent of the deals - unchanged from the previous year.
In contrast, foreigners' share shrank to 9 per cent from 11 per cent in 2008. But some market watchers believe this group of buyers could become more active this year, with more high-end projects in the market.
HDB upgraders spurred the revival in the property market last year when they snapped up suburban homes, taking advantage of lower prices at the height of the financial crisis. Encouraged by sentiment in this sector, developers focused on rolling out more mass-market projects.
DTZ pointed out that last year, those with HDB addresses made up 41 per cent of all private home buyers - almost double the 22 per cent in 2007.
Real Estate Developers Association of Singapore CEO Steven Choo said: 'Typically, upgraders and mass-market buyers are locals, many of whom buy for owner-occupation'. This would be a key reason why Singaporeans accounted for a greater proportion of private home transactions last year.
Mr Choo said the same trend had played out in 1999 after the Asian Financial Crisis.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that on the other hand, foreigners who buy property as an investment still prefer prime districts. But high-end or luxury launches were few and far between until the later part of last year.
In 2007, when prime projects were making headlines in an exuberant property market, Singaporeans accounted for just 67 per cent of private residential deals, whereas foreigners accounted for 13 per cent. PRs and companies together accounted for the other 20 per cent.
Industry watchers expect to see foreigners' share of transactions edge up this year compared with 2009. 'That's nothing out of the ordinary, quite consistent with the (historical) pattern,' said Mr Choo, explaining that this could happen as property prices rise and the pace of purchases by HDB upgraders slows.
He said it is too early to say whether foreigners' share of deals will return to the level in 2007 - there is still uncertainty in the markets, and there is a need to see how the global economy pans out in the second half of the year.
DTZ's data does show HDB upgraders being increasingly sidelined as property prices rise. In Q4 2009, those with HDB addresses made up 34 per cent of all private home buyers, down from 56 per cent in Q1.
Prices of mass-market homes increased to $610 per sq ft in Q4 - 6.6 per cent up from Q2 and 'back to almost the peak price level in Q4 2007'.
Going by sales reports from developers, foreign buyers are returning. There is also talk in the market that some buyers from China made their way here to view showflats over the Chinese New Year holiday.
According to DTZ, Malaysians were most active among non-Singaporeans in the property market last year, accounting for 27 per cent of transactions by foreigners and PRs. Indonesians followed with a 19 per cent share - the lowest since 1995 when caveats were available for analysis.
The Chinese were in third place, accounting for 15 per cent of the deals. Indians ranked fourth with a 12 per cent share.
DTZ noted that in the second half of 2009 there were more foreign buyers from other countries, particularly the UK, Korea and Australia.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
S'poreans take bigger bite of private homes
They account for 76% of home deals last year, highest since 2005: DTZ
By EMILYN YAP
(SINGAPORE) Singaporeans had a better shot at owning a private home in 2009 as property prices fell in the early part of the year and mass-market launches were the order of the day.
Analysing caveats lodged, real estate consultancy DTZ found that Singaporeans' share of private residential transactions reached 76 per cent last year. This exceeded the 73 per cent in 2008 and was the highest level since 2005.
Permanent residents accounted for 13 per cent of the deals - unchanged from the previous year.
In contrast, foreigners' share shrank to 9 per cent from 11 per cent in 2008. But some market watchers believe this group of buyers could become more active this year, with more high-end projects in the market.
HDB upgraders spurred the revival in the property market last year when they snapped up suburban homes, taking advantage of lower prices at the height of the financial crisis. Encouraged by sentiment in this sector, developers focused on rolling out more mass-market projects.
DTZ pointed out that last year, those with HDB addresses made up 41 per cent of all private home buyers - almost double the 22 per cent in 2007.
Real Estate Developers Association of Singapore CEO Steven Choo said: 'Typically, upgraders and mass-market buyers are locals, many of whom buy for owner-occupation'. This would be a key reason why Singaporeans accounted for a greater proportion of private home transactions last year.
Mr Choo said the same trend had played out in 1999 after the Asian Financial Crisis.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that on the other hand, foreigners who buy property as an investment still prefer prime districts. But high-end or luxury launches were few and far between until the later part of last year.
In 2007, when prime projects were making headlines in an exuberant property market, Singaporeans accounted for just 67 per cent of private residential deals, whereas foreigners accounted for 13 per cent. PRs and companies together accounted for the other 20 per cent.
Industry watchers expect to see foreigners' share of transactions edge up this year compared with 2009. 'That's nothing out of the ordinary, quite consistent with the (historical) pattern,' said Mr Choo, explaining that this could happen as property prices rise and the pace of purchases by HDB upgraders slows.
He said it is too early to say whether foreigners' share of deals will return to the level in 2007 - there is still uncertainty in the markets, and there is a need to see how the global economy pans out in the second half of the year.
DTZ's data does show HDB upgraders being increasingly sidelined as property prices rise. In Q4 2009, those with HDB addresses made up 34 per cent of all private home buyers, down from 56 per cent in Q1.
Prices of mass-market homes increased to $610 per sq ft in Q4 - 6.6 per cent up from Q2 and 'back to almost the peak price level in Q4 2007'.
Going by sales reports from developers, foreign buyers are returning. There is also talk in the market that some buyers from China made their way here to view showflats over the Chinese New Year holiday.
According to DTZ, Malaysians were most active among non-Singaporeans in the property market last year, accounting for 27 per cent of transactions by foreigners and PRs. Indonesians followed with a 19 per cent share - the lowest since 1995 when caveats were available for analysis.
The Chinese were in third place, accounting for 15 per cent of the deals. Indians ranked fourth with a 12 per cent share.
DTZ noted that in the second half of 2009 there were more foreign buyers from other countries, particularly the UK, Korea and Australia.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CNA : Limited land area means more underground and underwater cities: experts
Limited land area means more underground and underwater cities: experts
By Claire Huang, 938LIVE | Posted: 17 February 2010 2159 hrs
SINGAPORE: Experts said they won't be surprised if the government introduces changes to land zoning policies as well as measures in the upcoming Budget that will enable the use of subterranean space.
Earlier this month, the Economic Strategies Committee recommended that Singapore explore the option of building underground cities.
With a rapidly growing population, Singapore's 700 square kilometre land area isn't enough.
So experts said digging down, like the underground networks in Japan and Canada is the way to go.
Associate Professor Chu Jian, School of Civil & Environmental Engineering, Nanyang Technological University, said: "At the moment, we're only using the top shallow depths. In fact we can go deeper. How much deeper? Well, it'll depends on the geological formation. Sometimes it can be just a few metres, sometimes it can be up to 100 metres."
In fact, Singaporeans can even look forward to underwater cities if Dr Chu's research pans out.
Associate Professor Chu Jian added: "Approach number one is we use concrete structures to build underwater infrastructures like underwater shopping centres, underwater factories or underwater storage space and at the same time, we create land on top, without using much materials. This method is recommended for reclamation in deep water.
"Using concrete structures to build very strong seawalls, to block the water and then to create space behind. In fact, this idea is not new. An underwater city in Bulgaria has been created."
And underground cities are not expensive, if done on a large scale.
Associate Professor Chu Jian explained: "If we go to a larger extent to develop underground space, then the overall cost will be cheaper. Same goes for land reclamation in the past. So if you have a larger scale constructions and more international construction firms are willing to bring in more advanced machines and technologies because it's more cost effective, then it will further reduce construction costs."
Currently, Singapore has three such underground networks at Raffles Place, CityLink Mall and linkways at Orchard Road.
The government is also in the process of implementing the Jurong Rock Cavern for oil and gas storage at Jurong Island.
But such measures can get tricky.
Associate Professor Chu Jian added: "For shallow construction, it's actually controlled by the buildings above the ground. For example, you already have Raffles City above the ground.
“If you want to do deep excavation below, it may not be feasible. For deep excavations, in terms of creation of caverns, it is controlled by geological formation. So you will need good quality rocks for you to do that."
The Economic Strategies Committee also released recommendations to transform the existing Keppel and Pulau Brani area into the Tanjong Pagar Waterfront city, once its lease expires in 2027.
And experts said because of years of container work there, the foundation is strong for such a change to take place. - 938LIVE/vm
By Claire Huang, 938LIVE | Posted: 17 February 2010 2159 hrs
SINGAPORE: Experts said they won't be surprised if the government introduces changes to land zoning policies as well as measures in the upcoming Budget that will enable the use of subterranean space.
Earlier this month, the Economic Strategies Committee recommended that Singapore explore the option of building underground cities.
With a rapidly growing population, Singapore's 700 square kilometre land area isn't enough.
So experts said digging down, like the underground networks in Japan and Canada is the way to go.
Associate Professor Chu Jian, School of Civil & Environmental Engineering, Nanyang Technological University, said: "At the moment, we're only using the top shallow depths. In fact we can go deeper. How much deeper? Well, it'll depends on the geological formation. Sometimes it can be just a few metres, sometimes it can be up to 100 metres."
In fact, Singaporeans can even look forward to underwater cities if Dr Chu's research pans out.
Associate Professor Chu Jian added: "Approach number one is we use concrete structures to build underwater infrastructures like underwater shopping centres, underwater factories or underwater storage space and at the same time, we create land on top, without using much materials. This method is recommended for reclamation in deep water.
"Using concrete structures to build very strong seawalls, to block the water and then to create space behind. In fact, this idea is not new. An underwater city in Bulgaria has been created."
And underground cities are not expensive, if done on a large scale.
Associate Professor Chu Jian explained: "If we go to a larger extent to develop underground space, then the overall cost will be cheaper. Same goes for land reclamation in the past. So if you have a larger scale constructions and more international construction firms are willing to bring in more advanced machines and technologies because it's more cost effective, then it will further reduce construction costs."
Currently, Singapore has three such underground networks at Raffles Place, CityLink Mall and linkways at Orchard Road.
The government is also in the process of implementing the Jurong Rock Cavern for oil and gas storage at Jurong Island.
But such measures can get tricky.
Associate Professor Chu Jian added: "For shallow construction, it's actually controlled by the buildings above the ground. For example, you already have Raffles City above the ground.
“If you want to do deep excavation below, it may not be feasible. For deep excavations, in terms of creation of caverns, it is controlled by geological formation. So you will need good quality rocks for you to do that."
The Economic Strategies Committee also released recommendations to transform the existing Keppel and Pulau Brani area into the Tanjong Pagar Waterfront city, once its lease expires in 2027.
And experts said because of years of container work there, the foundation is strong for such a change to take place. - 938LIVE/vm
CNA : Singapore's private property market rebounds in January
Singapore's private property market rebounds in January
By Channel NewsAsia | Posted: 17 February 2010 1423 hrs
SINGAPORE: Data released Wednesday by the Urban Redevelopment Authority (URA) showed that 1,476 units were sold in the first month of the year, about triple the 481 units sold in the previous month.
The rise in the number of private homes sold also breaks a five-month streak of declines.
As was the trend in previous months, higher-end projects were more popular.
Cube 8, a City Developments project located at Thomson Road, was the most popular, with 167 units sold last month at a media price of S$1,286 per square foot.
Coming in second place was The Shore Residences at Amber Road by Dover Rise and Whitewater Properties, which sold 144 units at a median price of S$1,200 per square foot.
The most expensive unit sold last month was Orchard View at Angullia Park, which went for S$3,243 per square foot.
- CNA/yb
By Channel NewsAsia | Posted: 17 February 2010 1423 hrs
SINGAPORE: Data released Wednesday by the Urban Redevelopment Authority (URA) showed that 1,476 units were sold in the first month of the year, about triple the 481 units sold in the previous month.
The rise in the number of private homes sold also breaks a five-month streak of declines.
As was the trend in previous months, higher-end projects were more popular.
Cube 8, a City Developments project located at Thomson Road, was the most popular, with 167 units sold last month at a media price of S$1,286 per square foot.
Coming in second place was The Shore Residences at Amber Road by Dover Rise and Whitewater Properties, which sold 144 units at a median price of S$1,200 per square foot.
The most expensive unit sold last month was Orchard View at Angullia Park, which went for S$3,243 per square foot.
- CNA/yb
ST : Property launches heat up after CNY
Feb 17, 2010
Property launches heat up after CNY
Developers are already preparing to launch at least six projects
By Fiona Chan
NOW that the holidays are out of the way, property developers are ready to lay out a spread of new offerings for home-seekers.
At least six projects are being prepared for launch, while others have started preview sales or will have new phases released.
At the higher end of the market, Wing Tai is preparing to sell its 147-unit L'Viv in Newton Road at an average price believed to be about $2,000 per sq ft (psf).
The units at the freehold 32-storey development will be fairly small. About half are one-bedroom apartments between 600 sq ft and 700 sq ft, while the rest are two-bedders about 1,000 sq ft in size.
There are also three penthouses of more than 2,000 sq ft, according to Wing Tai. It is offering the deferred payment scheme for a limited period for the project, which is expected to be completed in 2014.
Elsewhere, Far East Organization has started selling units at Altez, a 62-storey project along Enggor Street at Tanjong Pagar, located near its Icon condominium.
Altez is set to be the tallest residential development in Singapore when completed in 2015, according to Far East.
A hundred units have already been sold, at prices ranging from $1,600 psf to $2,000 psf, said the developer in a release yesterday. Sales at the 99-year leasehold condo reportedly started last Wednesday.
The units sold were one- and two-bedroom apartments on the 10th to 22nd floors. Far East will release another batch of two-bedroom apartments on the 23rd level and higher tomorrow.
So far, 60 per cent of the buyers have been foreigners, said Far East's chief operating officer for property sales, Mr Chia Boon Kuah.
The project has 280 units, ranging from one-bedders of 527 sq ft to a 4,058 sq ft penthouse.
Popular Holdings is also preparing to start sales of its boutique development, 18 Shelford Road, this weekend. The freehold project in Bukit Timah will have 19 units, but Popular declined to disclose prices. Recent transactions at nearby developments have been done from about $1,000 psf for older projects such as Nineteen Shelford, to about $1,400 psf for new launches like Shelford Suites, which is still being built.
House hunters can also look forward to more units being released at The Interlace in Alexandra Road, on the former Gillman Heights site. Developer CapitaLand said last week it would launch new phases after the Chinese New Year.
It may also start selling the 55-unit The Nassim, in Nassim Hill on the former ANA Hotel site, closer to the middle of the year. Analysts expect prices to exceed $3,000 psf.
Last week, CB Richard Ellis said it sold about 20 units of Centennia Suites, developed by Indonesia's Lippo Group and located on the former Kim Seng Plaza site.
Units at the freehold project, which has 97 flats, were sold at $2,000 psf to $2,100 psf, it said.
In the mass market segment, agents are gearing up to market The Vision at West Coast, on West Coast Highway, and next to Waseda Shibuya Senior High School.
The 99-year leasehold development will have 295 units in total: 281 apartments and 14 strata houses, said agents.
Sizes start at about 800 sq ft for a two-bedroom unit and go up to 2,700 sq ft for a penthouse and about 5,000 sq ft for the strata houses.
In the East, Frasers Centrepoint is laying plans for its new project on the former Flamingo Valley site at Siglap, which it may launch after the first quarter. The five-storey development will have 393 units, including one-bedroom to four-bedroom apartments, duplexes and penthouses, agents said.
Prices have not been released, but the nearby Siglap V, located across the road from Siglap Centre, has reportedly sold units at between $1,100 psf and $1,500 psf.
Developer MCL Land is also said to be gearing up to launch The Estuary at Yishun, which will have 608 units.
The freehold project will have one-bedroom to four-bedroom apartments, from under 700 sq ft to over 1,500 sq ft. Indicative prices are said to be about $850 psf, according to property agents.
fiochan@sph.com.sg
Property launches heat up after CNY
Developers are already preparing to launch at least six projects
By Fiona Chan
NOW that the holidays are out of the way, property developers are ready to lay out a spread of new offerings for home-seekers.
At least six projects are being prepared for launch, while others have started preview sales or will have new phases released.
At the higher end of the market, Wing Tai is preparing to sell its 147-unit L'Viv in Newton Road at an average price believed to be about $2,000 per sq ft (psf).
The units at the freehold 32-storey development will be fairly small. About half are one-bedroom apartments between 600 sq ft and 700 sq ft, while the rest are two-bedders about 1,000 sq ft in size.
There are also three penthouses of more than 2,000 sq ft, according to Wing Tai. It is offering the deferred payment scheme for a limited period for the project, which is expected to be completed in 2014.
Elsewhere, Far East Organization has started selling units at Altez, a 62-storey project along Enggor Street at Tanjong Pagar, located near its Icon condominium.
Altez is set to be the tallest residential development in Singapore when completed in 2015, according to Far East.
A hundred units have already been sold, at prices ranging from $1,600 psf to $2,000 psf, said the developer in a release yesterday. Sales at the 99-year leasehold condo reportedly started last Wednesday.
The units sold were one- and two-bedroom apartments on the 10th to 22nd floors. Far East will release another batch of two-bedroom apartments on the 23rd level and higher tomorrow.
So far, 60 per cent of the buyers have been foreigners, said Far East's chief operating officer for property sales, Mr Chia Boon Kuah.
The project has 280 units, ranging from one-bedders of 527 sq ft to a 4,058 sq ft penthouse.
Popular Holdings is also preparing to start sales of its boutique development, 18 Shelford Road, this weekend. The freehold project in Bukit Timah will have 19 units, but Popular declined to disclose prices. Recent transactions at nearby developments have been done from about $1,000 psf for older projects such as Nineteen Shelford, to about $1,400 psf for new launches like Shelford Suites, which is still being built.
House hunters can also look forward to more units being released at The Interlace in Alexandra Road, on the former Gillman Heights site. Developer CapitaLand said last week it would launch new phases after the Chinese New Year.
It may also start selling the 55-unit The Nassim, in Nassim Hill on the former ANA Hotel site, closer to the middle of the year. Analysts expect prices to exceed $3,000 psf.
Last week, CB Richard Ellis said it sold about 20 units of Centennia Suites, developed by Indonesia's Lippo Group and located on the former Kim Seng Plaza site.
Units at the freehold project, which has 97 flats, were sold at $2,000 psf to $2,100 psf, it said.
In the mass market segment, agents are gearing up to market The Vision at West Coast, on West Coast Highway, and next to Waseda Shibuya Senior High School.
The 99-year leasehold development will have 295 units in total: 281 apartments and 14 strata houses, said agents.
Sizes start at about 800 sq ft for a two-bedroom unit and go up to 2,700 sq ft for a penthouse and about 5,000 sq ft for the strata houses.
In the East, Frasers Centrepoint is laying plans for its new project on the former Flamingo Valley site at Siglap, which it may launch after the first quarter. The five-storey development will have 393 units, including one-bedroom to four-bedroom apartments, duplexes and penthouses, agents said.
Prices have not been released, but the nearby Siglap V, located across the road from Siglap Centre, has reportedly sold units at between $1,100 psf and $1,500 psf.
Developer MCL Land is also said to be gearing up to launch The Estuary at Yishun, which will have 608 units.
The freehold project will have one-bedroom to four-bedroom apartments, from under 700 sq ft to over 1,500 sq ft. Indicative prices are said to be about $850 psf, according to property agents.
fiochan@sph.com.sg
BT : 100 units sold at latest Far East project Altez
Business Times - 17 Feb 2010
100 units sold at latest Far East project Altez
By UMA SHANKARI
FAR East Organization said yesterday it has sold 100 units in its latest residential project, the 280-unit Altez in Enggor Street.
The developer said that during a preview for priority customers last week, 100 of the 104 units released were sold. Prices ranged from $1,600 to $2,000 per sq ft (psf).
The units sold comprised one and two-bedroom apartments from levels 10 to 22 of the 62-storey development.
Far East said that Altez, at 250 metres high, will be Singapore's tallest residential development. It is next to Tanjong Pagar MRT station.
About 60 per cent of the buyers at Altez are foreigners, said Chia Boon Kuah, Far East's chief operating officer for property sales.
'The robust response to Altez demonstrates demand for well-conceived products of value in an excellent location in the city centre,' Mr Chia said.
'With the wide array of amenities and F&B outlets in this area, an MRT station at its doorstep, the upcoming New Downtown nearby and the possible future transformation of Tanjong Pagar into a waterfront city, buyers of Altez are assured of the positive prospects of this area.'
Far East will release more two-bedroom apartments tomorrow. Market watchers say these are expected to be priced higher on a psf basis than those sold already.
Among other amenities, Altez offers five floors of sky gardens and another two storeys of facilities.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
__._,_.___
100 units sold at latest Far East project Altez
By UMA SHANKARI
FAR East Organization said yesterday it has sold 100 units in its latest residential project, the 280-unit Altez in Enggor Street.
The developer said that during a preview for priority customers last week, 100 of the 104 units released were sold. Prices ranged from $1,600 to $2,000 per sq ft (psf).
The units sold comprised one and two-bedroom apartments from levels 10 to 22 of the 62-storey development.
Far East said that Altez, at 250 metres high, will be Singapore's tallest residential development. It is next to Tanjong Pagar MRT station.
About 60 per cent of the buyers at Altez are foreigners, said Chia Boon Kuah, Far East's chief operating officer for property sales.
'The robust response to Altez demonstrates demand for well-conceived products of value in an excellent location in the city centre,' Mr Chia said.
'With the wide array of amenities and F&B outlets in this area, an MRT station at its doorstep, the upcoming New Downtown nearby and the possible future transformation of Tanjong Pagar into a waterfront city, buyers of Altez are assured of the positive prospects of this area.'
Far East will release more two-bedroom apartments tomorrow. Market watchers say these are expected to be priced higher on a psf basis than those sold already.
Among other amenities, Altez offers five floors of sky gardens and another two storeys of facilities.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
__._,_.___
ST : Blocked view is residents' main gripe
Feb 14, 2010
Blocked view is residents' main gripe
By Shuli Sudderuddin and Debby Kwong
It is a room with a view, but not for long, fears housewife Ho Sock Lian, 60.
Not when a block of rental flats comes up on a vacant plot of land across from her block, obscuring her view of the sky and trees.
HDB announced last month it was building blocks of rental flats in Tampines and Pasir Ris. This is part of a move to build 8,000 more rental flats in the next three years.
'I'm very unhappy because the view will be blocked if the rental block is so high and I think this
will affect the price,' said Madam Ho of the ninth-floor, four-room flat for which she was once offered $400,000.
Madam Ho's views echo most of the gripes of residents spread across the Tampines block and those in blocks 475 and 476 in Pasir Ris Drive 6.
Residents in the three blocks found out recently that rental flats were being built near their homes and met Members of Parliament and HDB officials with complaints about privacy and safety.
Many were also upset that they had not been consulted or informed earlier.
However, most of the more than 30 residents who spoke to The Sunday Times said their main objection was over the loss of an unblocked view and breeze, not their fear of possible social problems their new neighbours may bring.
Said a 50-year-old self-employed Tampines resident who wanted to be known only as Mr Lee: 'It's unfair to say we are kicking up a fuss that the people in rental flats will cause problems. We're not discriminating against them, we're not very well off either. The main issue is that the new flats will block my view.'
The rental block in Tampines is slated to be 14 storeys high. HDB has not said how high the Pasir Ris rental flats will go.
Residents were also worried about congestion, saying it was already hard to find parking and new blocks would create overcrowding.
Many were concerned about losing the value of their flats too.
Residents in both Tampines and Pasir Ris said their three- and four-room flats were currently worth about $330,000 or more. They expect the value to drop below $300,000.
But a few residents admitted they are afraid their rental flat neighbours will make the area unsafe and even seedy.
Said machine operator Rosman Sairi, 44, who lives in Pasir Ris Block 476: 'It's been very peaceful in the nine years I've been living here and I don't know what kind of people will be living in the rental block. What if they commit crimes?'
Property agents said the residents' fears about their flats' value taking a nosedive were unfounded.
Mr Mohamed Ismail, chief executive of estate agency PropNex, said there has been no trend of falling property prices near rental flat areas, nor are buyers more reluctant to buy them.
'For buyers, it's more important that the flats are near amenities and facilities. As for blocked views, any empty plot of land won't stay vacant for long. Buyers have to be prepared for that,' he said.
He cited the case of The Bayshore condominium in East Coast, where buyers shelled out big bucks for the sea view, only to be blocked by Costa Del Sol condominium, nine years later.
Mr Chris Koh, director of Dennis Wee Properties, said the stigma surrounding rental block residents is unfair.
'Many are young people and young families who are just starting out. If they are aiming to buy the rental flats later on, they would be more likely to look after the flat and the neighbourhood,' he said.
Only a handful of residents interviewed did not mind the rental flats coming up.
Said housewife Noraffnah Hanapi, 33: 'I'm not intending to sell this place, so its value doesn't affect me. I'm not worried about my safety either.'
But many were still riled.
Said Mr Swee Huat Beng, 31, unemployed: 'I just moved in two months ago. If I knew that my view was going to be blocked, I wouldn't have bought this place.'
Blocked view is residents' main gripe
By Shuli Sudderuddin and Debby Kwong
It is a room with a view, but not for long, fears housewife Ho Sock Lian, 60.
Not when a block of rental flats comes up on a vacant plot of land across from her block, obscuring her view of the sky and trees.
HDB announced last month it was building blocks of rental flats in Tampines and Pasir Ris. This is part of a move to build 8,000 more rental flats in the next three years.
'I'm very unhappy because the view will be blocked if the rental block is so high and I think this
will affect the price,' said Madam Ho of the ninth-floor, four-room flat for which she was once offered $400,000.
Madam Ho's views echo most of the gripes of residents spread across the Tampines block and those in blocks 475 and 476 in Pasir Ris Drive 6.
Residents in the three blocks found out recently that rental flats were being built near their homes and met Members of Parliament and HDB officials with complaints about privacy and safety.
Many were also upset that they had not been consulted or informed earlier.
However, most of the more than 30 residents who spoke to The Sunday Times said their main objection was over the loss of an unblocked view and breeze, not their fear of possible social problems their new neighbours may bring.
Said a 50-year-old self-employed Tampines resident who wanted to be known only as Mr Lee: 'It's unfair to say we are kicking up a fuss that the people in rental flats will cause problems. We're not discriminating against them, we're not very well off either. The main issue is that the new flats will block my view.'
The rental block in Tampines is slated to be 14 storeys high. HDB has not said how high the Pasir Ris rental flats will go.
Residents were also worried about congestion, saying it was already hard to find parking and new blocks would create overcrowding.
Many were concerned about losing the value of their flats too.
Residents in both Tampines and Pasir Ris said their three- and four-room flats were currently worth about $330,000 or more. They expect the value to drop below $300,000.
But a few residents admitted they are afraid their rental flat neighbours will make the area unsafe and even seedy.
Said machine operator Rosman Sairi, 44, who lives in Pasir Ris Block 476: 'It's been very peaceful in the nine years I've been living here and I don't know what kind of people will be living in the rental block. What if they commit crimes?'
Property agents said the residents' fears about their flats' value taking a nosedive were unfounded.
Mr Mohamed Ismail, chief executive of estate agency PropNex, said there has been no trend of falling property prices near rental flat areas, nor are buyers more reluctant to buy them.
'For buyers, it's more important that the flats are near amenities and facilities. As for blocked views, any empty plot of land won't stay vacant for long. Buyers have to be prepared for that,' he said.
He cited the case of The Bayshore condominium in East Coast, where buyers shelled out big bucks for the sea view, only to be blocked by Costa Del Sol condominium, nine years later.
Mr Chris Koh, director of Dennis Wee Properties, said the stigma surrounding rental block residents is unfair.
'Many are young people and young families who are just starting out. If they are aiming to buy the rental flats later on, they would be more likely to look after the flat and the neighbourhood,' he said.
Only a handful of residents interviewed did not mind the rental flats coming up.
Said housewife Noraffnah Hanapi, 33: 'I'm not intending to sell this place, so its value doesn't affect me. I'm not worried about my safety either.'
But many were still riled.
Said Mr Swee Huat Beng, 31, unemployed: 'I just moved in two months ago. If I knew that my view was going to be blocked, I wouldn't have bought this place.'
ST : 'No right to make demands on HDB'
Feb 14, 2010
special report: rental flat neighbors
'No right to make demands on HDB'
No link between presence of rental flats and crime rate, say MPs, experts
By Irene Tham and Shuli Sudderuddin
On another plot of land. Eight storeys instead of 14. Build a condominium instead.
Some Singaporeans are dishing out such orders to the HDB about how and where rental flats ought to be built and their common refrain is, as far from my flat as possible.
While they may be customers of the Housing and Development Board (HDB), do these HDB home owners have the right to make such demands? And at whose expense should their demands be met?
Political observers say residents do not have such rights.
'Their rights are limited to their own units and do not extend to common property,' said former Nominated MP Siew Kum Hong, a corporate counsel.
MP for Tanjong Pagar GRC Indranee Rajah echoes that view. 'It is HDB's call,' she said.
But the recent clamour in Tampines and Pasir Ris is the result of the Government getting what it is asking for, said Mr Siew. That is, to make Singaporeans 'stakeholders' in society.
'Naturally, they would want to have a say in matters that could potentially impact them and their immediate environment - this is not a bad development,' he added.
Mr Hawazi Daipi, Senior Parliamentary Secretary for Health and Manpower, said 'it is not an issue of rights, but consultation'.
'There is a need to inform and consult, and assure residents that potential problems can be managed,' he said.
Even then, said some, allowing the majority of Singaporeans to feel a sense of ownership cannot come at the expense of the low-income group.
'They need a roof over their heads,' said Jurong GRC MP Halimah Yacob.
Ms Indranee concurs. 'It is wrong to say 'not in my backyard'. Where are we going to house the poor who cannot afford to buy an HDB flat?'
She also questioned the safety issues raised by home owners, and said this suggests that those living in rental homes are 'lesser-value human beings'.
'What is the correlation between rental flat stayers and safety?' Ms Indranee asked.
Sociologists say there is no evidence that disproportionately more crimes are committed by those living in rental flats.
The prejudices that people may have against the poor are 'almost always exaggerated', said Professor Chua Beng Huat of the National University of Singapore's (NUS) department of sociology.
'Saying that crime will increase because there are rental flats in the neighbourhood is a prejudice of those who have a vested interest in property values rather than social security,' he added.
Most fears spring from prejudices towards and stereotypes of the poor rather than actual negative encounters, said Associate Professor Tan Ern Ser of NUS' department of sociology.
As for whether rental flats lower the prices of property in the surrounding area, most of the housing agents The Sunday Times spoke to said this was not the case.
'Most people buy a property for access to amenities and parents. Closeness to rental flats has not been a deterrent,' said Mr Alex Foo, an ERA housing agent.
Popular property districts include Ang Mo Kio, Toa Payoh, Bedok and Bukit Merah, and these areas have a large number of rental flats, agents said.
Some one-room-one-hall rental flats have such good locations that even they are being snapped up in the resale market, he said.
There are units going for $200,000, even higher than prices of some three-room flats.
Launched in 2000, the HDB's Special Housing Assistance Programme allows existing tenants to buy over their rental flats that have been upgraded at a $15,000 discount.
itham@sph.com.sg
shulis@sph.com.sg
special report: rental flat neighbors
'No right to make demands on HDB'
No link between presence of rental flats and crime rate, say MPs, experts
By Irene Tham and Shuli Sudderuddin
On another plot of land. Eight storeys instead of 14. Build a condominium instead.
Some Singaporeans are dishing out such orders to the HDB about how and where rental flats ought to be built and their common refrain is, as far from my flat as possible.
While they may be customers of the Housing and Development Board (HDB), do these HDB home owners have the right to make such demands? And at whose expense should their demands be met?
Political observers say residents do not have such rights.
'Their rights are limited to their own units and do not extend to common property,' said former Nominated MP Siew Kum Hong, a corporate counsel.
MP for Tanjong Pagar GRC Indranee Rajah echoes that view. 'It is HDB's call,' she said.
But the recent clamour in Tampines and Pasir Ris is the result of the Government getting what it is asking for, said Mr Siew. That is, to make Singaporeans 'stakeholders' in society.
'Naturally, they would want to have a say in matters that could potentially impact them and their immediate environment - this is not a bad development,' he added.
Mr Hawazi Daipi, Senior Parliamentary Secretary for Health and Manpower, said 'it is not an issue of rights, but consultation'.
'There is a need to inform and consult, and assure residents that potential problems can be managed,' he said.
Even then, said some, allowing the majority of Singaporeans to feel a sense of ownership cannot come at the expense of the low-income group.
'They need a roof over their heads,' said Jurong GRC MP Halimah Yacob.
Ms Indranee concurs. 'It is wrong to say 'not in my backyard'. Where are we going to house the poor who cannot afford to buy an HDB flat?'
She also questioned the safety issues raised by home owners, and said this suggests that those living in rental homes are 'lesser-value human beings'.
'What is the correlation between rental flat stayers and safety?' Ms Indranee asked.
Sociologists say there is no evidence that disproportionately more crimes are committed by those living in rental flats.
The prejudices that people may have against the poor are 'almost always exaggerated', said Professor Chua Beng Huat of the National University of Singapore's (NUS) department of sociology.
'Saying that crime will increase because there are rental flats in the neighbourhood is a prejudice of those who have a vested interest in property values rather than social security,' he added.
Most fears spring from prejudices towards and stereotypes of the poor rather than actual negative encounters, said Associate Professor Tan Ern Ser of NUS' department of sociology.
As for whether rental flats lower the prices of property in the surrounding area, most of the housing agents The Sunday Times spoke to said this was not the case.
'Most people buy a property for access to amenities and parents. Closeness to rental flats has not been a deterrent,' said Mr Alex Foo, an ERA housing agent.
Popular property districts include Ang Mo Kio, Toa Payoh, Bedok and Bukit Merah, and these areas have a large number of rental flats, agents said.
Some one-room-one-hall rental flats have such good locations that even they are being snapped up in the resale market, he said.
There are units going for $200,000, even higher than prices of some three-room flats.
Launched in 2000, the HDB's Special Housing Assistance Programme allows existing tenants to buy over their rental flats that have been upgraded at a $15,000 discount.
itham@sph.com.sg
shulis@sph.com.sg
ST : Are rental flats that bad?
Feb 14, 2010
special report: rental flat neighbors
Are rental flats that bad?
The Sunday Times speaks to residents of such flats and their neighbours to get a clearer picture
By Irene Tham
A group of men and women playing cards in the void deck of Block 9, Teck Whye Lane, on Thursday. It is not known if they live in that rental block. -- ST PHOTO: ALPHONSUS CHERN
First, you are knocked over by the smell of urine. The stench of faeces follows.
This is not a public toilet, but it has certainly been used as one.
'There is shit all over. I pity the cleaners,' said security guard B. Krishnair, who moved into Block 5, Marsiling Road last year after her family bought a three-room unit there.
She was describing the void decks of Blocks 3 and 4, which house one-room rental units, just metres away from her block.
When The Sunday Times visited the estate last Wednesday, the pungent smell hit us when we walked to the two rental blocks, although the common areas were free from mess.
The lifts reeked of stale cigarette smoke. The common corridors were quiet and flanked by rows of closed doors.
We saw a man in his 60s clasping a bottle of beer and sitting on the stairs on the 12th storey of Block 3. He appeared to be drunk.
Madam Krishnair, 41, said she had seen men urinating in the void deck of Block 3, and recounted being stared at in the chest by a 'loitering uncle'.
'He just walked up to me and looked at my breasts. It is unsafe living so close to the rental flats,' she said.
Rental blocks made the news last week when some residents in Pasir Ris and Tampines raised a stink upon finding out that the Housing Board (HDB) was going to build such blocks near their homes.
They feared for their privacy and safety if the flats were to be illegally sublet to foreigners. They were also upset about the loss of an otherwise unobstructed view, which might lower the value of their property, they said.
They were also worried about 'smokers and drinkers' in the void decks leading their children astray.
There are currently 42,000 rental units across the island. They are occupied by those with low income, mostly families, the elderly and singles. Monthly rent ranges from $26 to $205 for one-room flats and $44 to $275 for two-room units.
The Sunday Times visited six housing areas with these flats - Sembawang, Yishun, Choa Chu Kang, Marsiling, Marine Parade and Punggol - and spoke to about 50 residents from the rental flats as well as those in owner-occupied flats.
More than half of the 40 or so non-rental flat residents interviewed maintained they have no problems with rental flats nearby. The rest expressed some concern, and related negative personal brushes with their neighbours.
Madam Krishnair, for one, has already crossed swords several times with them. Her grievances: unrestrained spitting, urinating and defecating in the void decks of the rental blocks.
'I told the uncles they would be fined for spitting, but their responses were 'fine, fine lah'.'
Another resident in Block 12, Marsiling Road, located two blocks from the rental flats, said she did not dare wander around her neighbourhood after dark.
The 40-year-old clinic assistant, who declined to be named, frequently hears shouting, presumably from the two rental blocks. 'I do not know who they are and do not want to know them,' she said.
In Choa Chu Kang, a resident who wanted to be known only as Madam Ng, said she has seen men unzipping their trousers during the day at the void deck of Block 9, a rental block along Teck Whye Lane.
She has been living in the adjacent Block 11 for 25 years. 'I avoid walking past the block after dark,' said the 58-year-old housewife.
She said her son, now 21, was molested 11 years ago by a man in the lift in Block 9 after visiting a friend there.
There was nothing amiss when The Sunday Times visited the void deck of Block 9, but we spotted 10 men and women in their 40s to 60s playing cards there.
Some residents from Block 11 described them as 'the gamblers of Block 9'. But we were unable to verify where they live as they did not want to be interviewed.
Like Marsiling's rental blocks, Teck Whye Lane's Block 9 had cigarette burn marks on the floors of lifts and spray-painted graffiti at the lift lobbies. Its stairways and common corridors had litter.
Mr Ang Mong Seng, an MP for Hong Kah GRC, said that rental blocks, just like regular blocks, are cleaned once a day in the morning.
'But we also need residents' cooperation. Sometimes after the morning cleaning, the block gets dirtied in the afternoon,' he said.
On the hygiene problems at Marsiling's rental flats, Mr Hawazi Daipi, an MP for Sembawang GRC, said he has not received any complaints.
In the last 12 years, some residents had given feedback on cleanliness and safety, but the feedback did not portray the precinct 'as one that is crime-ridden and unliveable', he said.
'The precinct is far from that,' he said, adding that the police patrol the area regularly.
A different world, however, exists in Yishun, Sembawang and Marine Parade.
There, flat owners and tenants of rental flats seem to get along better. In fact, most of the residents in Yishun and Sembawang interviewed were not even aware that the new flats that popped up last year were rental units.
Mr Kamis Abdul Rahman, 55, who has been living in Block 439 in Yishun for 21 years, did not know that Blocks 436 and 438 were rental flats. The part-time library assistant said he is on good terms with his neighbours. 'If they don't bother me, I won't bother them.'
Another resident, Mr Selan, 30, who did not want to give his full name, said he bought a flat in Yishun even though he knew it was near a rental block.
The Sunday Times understands that over 20 families - mostly in their 20s and 30s - have moved into the two rental blocks in Yishun.
Over at Marine Parade, a 31-year-old executive in a charity organisation said she bought a unit in Marine Terrace Block 18 about six years ago to be near her in-laws.
This was more important than the fact that there are five rental blocks in her estate. 'I do not mind living next to them. They need a roof over their heads just like any one of us,' she said.
Most of the 10 rental flat residents interviewed said they did not feel any discrimination as they kept mainly to themselves.
Retiree Tan Teck Seng, 56, who lives in Block 3 at Marsiling Road, said he had good relationships with his rental flat neighbours. He has not had a chance to befriend those living in other blocks.
A cook who gave her name as Rose, 43, and who rents a unit in Block 9, Teck Whye Lane, said she was too tired to socialise after work.
itham@sph.com.sg
Additional reporting by Sumita Sreedharan
Would you mind if a rental block was built next to your home? Send your comments to suntimes@sph.com.sg
--------------------------------------------------------------------------------
No getting away?
Mrs Chia looking at the new blocks of rental flats within view from her home in Punggol Central. -- ST PHOTO: ALPHONSUS CHERN
Housewife Jenny Chia moved out of her old neighbourhood to get away from the rental flats there, only to find out that she will be living next to them again.
In 2003, she moved out of her flat in Boon Keng, which was next to a rental block.
There were 'gangsters, gambling and drug problems' there, she said. While she did not see people taking drugs, she saw trails of syringes.
'It was not a healthy environment.'
She and her husband paid $410,000 for a five-room flat on the 17th storey of Block 192 in Punggol Central.
She later found out that the two blocks of flats that were recently built opposite her home would house rental units.
Shocked, she said: 'No one informed me. I have the right to know as a resident.'
The two blocks, which are behind a church and across a road junction from where she lives, look well-designed and clean.
The blocks, which appear unoccupied, are also not high enough to obstruct her view.
Mrs Chia, who has a son aged 23, and a daughter aged 10, said she is not as bothered by the appearance of the blocks as by the residents who will move in there.
She is worried that the problems of Boon Keng would be back to vex her.
'My investments have amounted to nothing,' she said. But she will not complain to the HDB.
'It is too late now. The flats have already been built.'
Irene Tham
--------------------------------------------------------------------------------
She treats them to snacks
Madam Chin (right) sings and chats with the mostly elderly residents of rental flats over tea. -- ST PHOTO: CHEW SENG KIM
While some flat owners may keep a distance from their rental flat neighbours, Madam Chin Sui Yau is the opposite.
Every Wednesday afternoon, she welcomes more than 10 residents of the rental flats at Blocks 3 and 4 in Marsiling Road to the void deck of her home in Block 5.
She chats and sings songs with the residents, who are mostly elderly and widowed, over tea.
She and her friends from a nearby church treat them to simple snacks - cakes, bananas or red bean soup.
They have been doing this since 2006.
'They are very pathetic. Some old folk have come from estranged families and have emotional problems,' said Madam Chin, 56, in Cantonese.
Her eyes were opened to the needs of her neighbours four years ago when she was told about a lice-infested old woman who was living in one of the rental units.
Together with some friends, she decided to bathe the old woman - whose name she still does not know - and cook for her.
'Her nails were encrusted with faeces and she was eating mouldy bread,' recalled Madam Chin, a widow with four children.
A few months later, the old woman died. The episode inspired her to make a difference in the lives of others in the rental blocks.
'I went to Block 3 and started to make friends. This is what we ought to do as neighbours.'
Irene Tham
special report: rental flat neighbors
Are rental flats that bad?
The Sunday Times speaks to residents of such flats and their neighbours to get a clearer picture
By Irene Tham
A group of men and women playing cards in the void deck of Block 9, Teck Whye Lane, on Thursday. It is not known if they live in that rental block. -- ST PHOTO: ALPHONSUS CHERN
First, you are knocked over by the smell of urine. The stench of faeces follows.
This is not a public toilet, but it has certainly been used as one.
'There is shit all over. I pity the cleaners,' said security guard B. Krishnair, who moved into Block 5, Marsiling Road last year after her family bought a three-room unit there.
She was describing the void decks of Blocks 3 and 4, which house one-room rental units, just metres away from her block.
When The Sunday Times visited the estate last Wednesday, the pungent smell hit us when we walked to the two rental blocks, although the common areas were free from mess.
The lifts reeked of stale cigarette smoke. The common corridors were quiet and flanked by rows of closed doors.
We saw a man in his 60s clasping a bottle of beer and sitting on the stairs on the 12th storey of Block 3. He appeared to be drunk.
Madam Krishnair, 41, said she had seen men urinating in the void deck of Block 3, and recounted being stared at in the chest by a 'loitering uncle'.
'He just walked up to me and looked at my breasts. It is unsafe living so close to the rental flats,' she said.
Rental blocks made the news last week when some residents in Pasir Ris and Tampines raised a stink upon finding out that the Housing Board (HDB) was going to build such blocks near their homes.
They feared for their privacy and safety if the flats were to be illegally sublet to foreigners. They were also upset about the loss of an otherwise unobstructed view, which might lower the value of their property, they said.
They were also worried about 'smokers and drinkers' in the void decks leading their children astray.
There are currently 42,000 rental units across the island. They are occupied by those with low income, mostly families, the elderly and singles. Monthly rent ranges from $26 to $205 for one-room flats and $44 to $275 for two-room units.
The Sunday Times visited six housing areas with these flats - Sembawang, Yishun, Choa Chu Kang, Marsiling, Marine Parade and Punggol - and spoke to about 50 residents from the rental flats as well as those in owner-occupied flats.
More than half of the 40 or so non-rental flat residents interviewed maintained they have no problems with rental flats nearby. The rest expressed some concern, and related negative personal brushes with their neighbours.
Madam Krishnair, for one, has already crossed swords several times with them. Her grievances: unrestrained spitting, urinating and defecating in the void decks of the rental blocks.
'I told the uncles they would be fined for spitting, but their responses were 'fine, fine lah'.'
Another resident in Block 12, Marsiling Road, located two blocks from the rental flats, said she did not dare wander around her neighbourhood after dark.
The 40-year-old clinic assistant, who declined to be named, frequently hears shouting, presumably from the two rental blocks. 'I do not know who they are and do not want to know them,' she said.
In Choa Chu Kang, a resident who wanted to be known only as Madam Ng, said she has seen men unzipping their trousers during the day at the void deck of Block 9, a rental block along Teck Whye Lane.
She has been living in the adjacent Block 11 for 25 years. 'I avoid walking past the block after dark,' said the 58-year-old housewife.
She said her son, now 21, was molested 11 years ago by a man in the lift in Block 9 after visiting a friend there.
There was nothing amiss when The Sunday Times visited the void deck of Block 9, but we spotted 10 men and women in their 40s to 60s playing cards there.
Some residents from Block 11 described them as 'the gamblers of Block 9'. But we were unable to verify where they live as they did not want to be interviewed.
Like Marsiling's rental blocks, Teck Whye Lane's Block 9 had cigarette burn marks on the floors of lifts and spray-painted graffiti at the lift lobbies. Its stairways and common corridors had litter.
Mr Ang Mong Seng, an MP for Hong Kah GRC, said that rental blocks, just like regular blocks, are cleaned once a day in the morning.
'But we also need residents' cooperation. Sometimes after the morning cleaning, the block gets dirtied in the afternoon,' he said.
On the hygiene problems at Marsiling's rental flats, Mr Hawazi Daipi, an MP for Sembawang GRC, said he has not received any complaints.
In the last 12 years, some residents had given feedback on cleanliness and safety, but the feedback did not portray the precinct 'as one that is crime-ridden and unliveable', he said.
'The precinct is far from that,' he said, adding that the police patrol the area regularly.
A different world, however, exists in Yishun, Sembawang and Marine Parade.
There, flat owners and tenants of rental flats seem to get along better. In fact, most of the residents in Yishun and Sembawang interviewed were not even aware that the new flats that popped up last year were rental units.
Mr Kamis Abdul Rahman, 55, who has been living in Block 439 in Yishun for 21 years, did not know that Blocks 436 and 438 were rental flats. The part-time library assistant said he is on good terms with his neighbours. 'If they don't bother me, I won't bother them.'
Another resident, Mr Selan, 30, who did not want to give his full name, said he bought a flat in Yishun even though he knew it was near a rental block.
The Sunday Times understands that over 20 families - mostly in their 20s and 30s - have moved into the two rental blocks in Yishun.
Over at Marine Parade, a 31-year-old executive in a charity organisation said she bought a unit in Marine Terrace Block 18 about six years ago to be near her in-laws.
This was more important than the fact that there are five rental blocks in her estate. 'I do not mind living next to them. They need a roof over their heads just like any one of us,' she said.
Most of the 10 rental flat residents interviewed said they did not feel any discrimination as they kept mainly to themselves.
Retiree Tan Teck Seng, 56, who lives in Block 3 at Marsiling Road, said he had good relationships with his rental flat neighbours. He has not had a chance to befriend those living in other blocks.
A cook who gave her name as Rose, 43, and who rents a unit in Block 9, Teck Whye Lane, said she was too tired to socialise after work.
itham@sph.com.sg
Additional reporting by Sumita Sreedharan
Would you mind if a rental block was built next to your home? Send your comments to suntimes@sph.com.sg
--------------------------------------------------------------------------------
No getting away?
Mrs Chia looking at the new blocks of rental flats within view from her home in Punggol Central. -- ST PHOTO: ALPHONSUS CHERN
Housewife Jenny Chia moved out of her old neighbourhood to get away from the rental flats there, only to find out that she will be living next to them again.
In 2003, she moved out of her flat in Boon Keng, which was next to a rental block.
There were 'gangsters, gambling and drug problems' there, she said. While she did not see people taking drugs, she saw trails of syringes.
'It was not a healthy environment.'
She and her husband paid $410,000 for a five-room flat on the 17th storey of Block 192 in Punggol Central.
She later found out that the two blocks of flats that were recently built opposite her home would house rental units.
Shocked, she said: 'No one informed me. I have the right to know as a resident.'
The two blocks, which are behind a church and across a road junction from where she lives, look well-designed and clean.
The blocks, which appear unoccupied, are also not high enough to obstruct her view.
Mrs Chia, who has a son aged 23, and a daughter aged 10, said she is not as bothered by the appearance of the blocks as by the residents who will move in there.
She is worried that the problems of Boon Keng would be back to vex her.
'My investments have amounted to nothing,' she said. But she will not complain to the HDB.
'It is too late now. The flats have already been built.'
Irene Tham
--------------------------------------------------------------------------------
She treats them to snacks
Madam Chin (right) sings and chats with the mostly elderly residents of rental flats over tea. -- ST PHOTO: CHEW SENG KIM
While some flat owners may keep a distance from their rental flat neighbours, Madam Chin Sui Yau is the opposite.
Every Wednesday afternoon, she welcomes more than 10 residents of the rental flats at Blocks 3 and 4 in Marsiling Road to the void deck of her home in Block 5.
She chats and sings songs with the residents, who are mostly elderly and widowed, over tea.
She and her friends from a nearby church treat them to simple snacks - cakes, bananas or red bean soup.
They have been doing this since 2006.
'They are very pathetic. Some old folk have come from estranged families and have emotional problems,' said Madam Chin, 56, in Cantonese.
Her eyes were opened to the needs of her neighbours four years ago when she was told about a lice-infested old woman who was living in one of the rental units.
Together with some friends, she decided to bathe the old woman - whose name she still does not know - and cook for her.
'Her nails were encrusted with faeces and she was eating mouldy bread,' recalled Madam Chin, a widow with four children.
A few months later, the old woman died. The episode inspired her to make a difference in the lives of others in the rental blocks.
'I went to Block 3 and started to make friends. This is what we ought to do as neighbours.'
Irene Tham
ST : 'Software' areas hurt S'pore ranking in global city poll
Feb 13, 2010
HIGH SCORES IN INFRASTRUCTURE
LOW SCORES IN CULTURE
'Software' areas hurt S'pore ranking in global city poll
High scores for stability, infrastructure, but low on culture, environment
By Jessica Lim
SINGAPORE UP SLIGHTLY IN LIVEABILITY RANKING
HIGH SCORES IN INFRASTRUCTURE
Singapore scored full marks in the EIU survey's infrastructure category. The Republic also did well in the area of stability - scoring 95 out of a maximum 100 points. --ST FILE PHOTOS
SINGAPORE scores highly in areas like infrastructure and stability, but does poorly when it comes to culture and living environment. That, at least, is the conclusion of a recent study by the Economist Intelligence Unit (EIU), which ranked Singapore 53rd on a list of 140 cities worldwide for liveability.
The Republic scored better than culture capitals New York and London - which lost out because of crumbling infrastructure - but lower than Asian cities such as Hong Kong, Tokyo and Osaka.
The survey examined 30 factors in five categories: Stability, health care, culture and environment, education and infrastructure. Singapore's overall score was 88.5 out of a maximum of 100.
Hong Kong and Seoul did better, scoring 92 and 85.9 overall, respectively.
The top-ranked city, Vancouver, scored 98, while Osaka, the top Asian city in the poll, scored 95.2. Harare in Zimbabwe was ranked the lowest.
The Republic excelled in categories such as infrastructure and stability - scoring 100 and 95, respectively - but was dragged down by its score of 75.7 in the culture and environment category, which measures everything from the variety of quality concerts in the city to social restrictions such as censorship.
The annual survey, which combines research from resident experts and The Economist's analysts around the globe, is conducted by the magazine's research arm. The results of the EIU survey mirror those of another annual study done recently, which ranked Singapore the 70th most-liveable country out of 194.
That survey, conducted by the American magazine International Living, gave Singapore a failing grade in three out of nine categories: Climate, environment and freedom. The country excelled in the other areas, like infrastructure, which looks at factors including the length of railways and cellphones per capita.
On a score of 0-100, International Living's survey, which has been widely reported in US newspapers and elsewhere, gave Singapore a score of 39 for its climate and living environment - which includes factors such as average temperature and greenhouse emissions per capita - and 42 on the freedom scale, which measures areas such as civil liberties.
International Living's survey is compiled using government statistics, data from the World Health Organisation and the views of its editors around the globe.
France topped the survey, while Singapore's position put it alongside countries like Grenada (69) and Antigua and Barbuda (71).
News of the surveys comes on the back of the high-powered Economic Strategies Committee's suggestions last week that Singapore do more to develop 'software', such as its art and cultural scene, to match its top-notch 'hardware' in order to become a top-notch global city. Some of its suggestions include better assistance for arts and creative businesses in places like Gillman Village, and encouraging greater sponsorship of the arts.
Sociology experts and others were not surprised by the results, despite Singapore's extensive efforts to focus on culture and lifestyle over the last few years.
Said CIMB-GK Research's regional economist Song Seng Wun: 'Over the past 10 years, with infrastructure more or less in place, the Government has shifted its focus to the soft side like culture and freedom.
'But these things take time. In the medium term, we will probably continue to score low in these areas... hopefully we will evolve.'
Dr Mika Toyota, an assistant professor of sociology at the National University of Singapore, said: 'On the one hand, I think Singapore is interesting for foreigners to live in. There are great places to eat and cultural diversity, but at the same time, it is still developing in other ways, like the amount of space available for political discourse.
'A good quality of life means satisfaction not just due to efficiency, but an enriching lifestyle as whole,' she added.
Some Singaporeans, however, simply shrugged when asked about areas like the environment.
'We want a good transport system, iconic buildings, a beautiful skyline and places to relax and enjoy a drink,' said insurance consultant Lim Sock Wee, 50.
'Things like environmental issues are not a priority, and I won't put emphasis on them.'
Air stewardess Tan Xiu Mei, 27, said she is more concerned about bread-and-butter issues, like food prices. Asked about freedoms, she said: 'I don't really have much to voice anyway.'
Others, like mother of three Annie Jee, who is in her 40s, said such ambivalence frustrates her.
Noting that Singapore does not even have a battery recycling plant, she said: 'We are a First World country, and we need to advance beyond just physical infrastructure.'
limjess@sph.com.sg
HIGH SCORES IN INFRASTRUCTURE
LOW SCORES IN CULTURE
'Software' areas hurt S'pore ranking in global city poll
High scores for stability, infrastructure, but low on culture, environment
By Jessica Lim
SINGAPORE UP SLIGHTLY IN LIVEABILITY RANKING
HIGH SCORES IN INFRASTRUCTURE
Singapore scored full marks in the EIU survey's infrastructure category. The Republic also did well in the area of stability - scoring 95 out of a maximum 100 points. --ST FILE PHOTOS
SINGAPORE scores highly in areas like infrastructure and stability, but does poorly when it comes to culture and living environment. That, at least, is the conclusion of a recent study by the Economist Intelligence Unit (EIU), which ranked Singapore 53rd on a list of 140 cities worldwide for liveability.
The Republic scored better than culture capitals New York and London - which lost out because of crumbling infrastructure - but lower than Asian cities such as Hong Kong, Tokyo and Osaka.
The survey examined 30 factors in five categories: Stability, health care, culture and environment, education and infrastructure. Singapore's overall score was 88.5 out of a maximum of 100.
Hong Kong and Seoul did better, scoring 92 and 85.9 overall, respectively.
The top-ranked city, Vancouver, scored 98, while Osaka, the top Asian city in the poll, scored 95.2. Harare in Zimbabwe was ranked the lowest.
The Republic excelled in categories such as infrastructure and stability - scoring 100 and 95, respectively - but was dragged down by its score of 75.7 in the culture and environment category, which measures everything from the variety of quality concerts in the city to social restrictions such as censorship.
The annual survey, which combines research from resident experts and The Economist's analysts around the globe, is conducted by the magazine's research arm. The results of the EIU survey mirror those of another annual study done recently, which ranked Singapore the 70th most-liveable country out of 194.
That survey, conducted by the American magazine International Living, gave Singapore a failing grade in three out of nine categories: Climate, environment and freedom. The country excelled in the other areas, like infrastructure, which looks at factors including the length of railways and cellphones per capita.
On a score of 0-100, International Living's survey, which has been widely reported in US newspapers and elsewhere, gave Singapore a score of 39 for its climate and living environment - which includes factors such as average temperature and greenhouse emissions per capita - and 42 on the freedom scale, which measures areas such as civil liberties.
International Living's survey is compiled using government statistics, data from the World Health Organisation and the views of its editors around the globe.
France topped the survey, while Singapore's position put it alongside countries like Grenada (69) and Antigua and Barbuda (71).
News of the surveys comes on the back of the high-powered Economic Strategies Committee's suggestions last week that Singapore do more to develop 'software', such as its art and cultural scene, to match its top-notch 'hardware' in order to become a top-notch global city. Some of its suggestions include better assistance for arts and creative businesses in places like Gillman Village, and encouraging greater sponsorship of the arts.
Sociology experts and others were not surprised by the results, despite Singapore's extensive efforts to focus on culture and lifestyle over the last few years.
Said CIMB-GK Research's regional economist Song Seng Wun: 'Over the past 10 years, with infrastructure more or less in place, the Government has shifted its focus to the soft side like culture and freedom.
'But these things take time. In the medium term, we will probably continue to score low in these areas... hopefully we will evolve.'
Dr Mika Toyota, an assistant professor of sociology at the National University of Singapore, said: 'On the one hand, I think Singapore is interesting for foreigners to live in. There are great places to eat and cultural diversity, but at the same time, it is still developing in other ways, like the amount of space available for political discourse.
'A good quality of life means satisfaction not just due to efficiency, but an enriching lifestyle as whole,' she added.
Some Singaporeans, however, simply shrugged when asked about areas like the environment.
'We want a good transport system, iconic buildings, a beautiful skyline and places to relax and enjoy a drink,' said insurance consultant Lim Sock Wee, 50.
'Things like environmental issues are not a priority, and I won't put emphasis on them.'
Air stewardess Tan Xiu Mei, 27, said she is more concerned about bread-and-butter issues, like food prices. Asked about freedoms, she said: 'I don't really have much to voice anyway.'
Others, like mother of three Annie Jee, who is in her 40s, said such ambivalence frustrates her.
Noting that Singapore does not even have a battery recycling plant, she said: 'We are a First World country, and we need to advance beyond just physical infrastructure.'
limjess@sph.com.sg
ST : Reaching the end of the road
Feb 13, 2010
home & garden
Reaching the end of the road
The lease of these private homes in Upper Boon Keng expires in 10 years, but residents are not in a hurry to move
By tay suan chiang
With only 10 years left on their lease, these terrace homes in Upper Boon Keng cost only about $170,000 to $180,000 - much cheaper than a resale four-room HDB flat in most places. -- ST PHOTO: DESMOND LIM
In a day and age where home owners move house whenever possible for a variety of reasons - to be near schools and grandparents, to make their money work for them - retiree Yang Zheng Cai is a rarity.
He may just outlive the house he has lived in for 50 years. At 73, he is hale and hearty, looking in better shape than the two-storey terrace house in Upper Boon Keng Road, where the lease will expire in about 10 years' time.
His home is one of about 250 terrace houses in what is believed to be one of Singapore's cheapest private housing estate because the land, which had an original lease of 60 years, will return to the Government in 2020.
The area, on which the decades clearly have taken its toll, has been zoned for residential use under the Urban Redevelopment Authority's Master Plan 2008.
Mr Eric Cheng, chief executive of ECG Property, says these homes with built-up areas of about 1,300 sq ft, cost only about $170,000 to $180,000 each.
That amount cannot buy even a resale four-room HDB flat in many places.
Should the area be turned into condominium homes, he says homes there can fetch from $900 to $1,050 per square foot because it is close to town and the Boon Keng MRT station. For units on higher floors, residents can enjoy unblocked views of the city. This estimate is based on the price of nearby condominiums such as The Waterina.
Other residential areas with less than 40 years left on their leasehold include a stretch of homes near Rail Mall in Upper Bukit Timah, Jalan Chempaka Kuning in Bedok and in the Rifle Range Road area.
A spokesman for the Singapore Land Authority says: 'The Government's policy is to allow leases to expire without extension. In land-scarce Singapore, we need to recover land upon lease expiry to re-allocate it to meet fast-changing socio-economic needs.'
Is there any value at all in property in these places? Yes, says Mr Cheng.
'Those with cash for investment can consider getting a unit in Upper Boon Keng as the rental yield is high,' he says. Given the short lease, banks are not likely to grant loans.
Owners can rent out the units for about $3,000 a month, so they could make up to $360,000 in the remaining time before the lease expires.
At its peak in 2007, a unit sold for $200,000.
Mr Yang did not consider selling his house, even when it could have fetched such prices - not least because of his emotional attachment to it.
The home owner, the fourth of six children, inherited the intermediate terrace property from his late father. He has two sisters living along the same street.
Now he lives with his wife, a housewife who wants to be known only as Madam Chen, and their three grandchildren aged 13 to 21. Madam Chen, 72, moved in 50 years ago when the couple got married. They have three children.
The area used to be a kampung and MrYang's family then lived in an attap house which his father rented.
After a fire destroyed the kampung, the Government in 1960 built homes for the kampung residents and Mr Yang's family bought one for about $5,000 - a high price then but his businessman father could afford it when he made a tidy sum.
Mr Yang, who used to own a timber company, recalls playing with his friends after school and catching crabs nearby.
In the early days, most of the residents in the area were Chinese and they often looked out for one another. Front gates and doors were often left unlocked as the area was so safe.
Today, most houses have been converted into temples or rented out to contractors to use as dormitories for foreign workers. High-rise HDB flats and flatted factories have also popped up.
Only about 10 per cent of the homes are occupied by home owners, who are mostly retirees.
To anyone walking through the estate, it is clear that most of the homes have seen better days, although owners have renovated them through the years, turning their backyards into bigger kitchens and front yards into porches.
Mr Yang says it has been 20 years since he last renovated his home, and he cannot remember how much he spent and exactly what he did.
The predominance of foreign workers in the area does not bother him. 'I have no problems with them living next door as they leave for work early and come back late. We do not get any disturbances and the area is peaceful and very safe.'
Mr Cheong Hiong Yau, 92, a former coffee-shop owner, is another long-time resident in the estate.
He has been living here for the past 75 years, currently with his wife, Mrs Cheong Siao Ngor, 83, and their maid in their double-storey terrace house.
He says he likes living here because of its convenient location. The Upper Boon Keng wet market is a five-minute walk away and there is a supermarket nearby too. He often takes his dog for walks around the quiet neighbourhood.
In previous years, he says there would be lion dances in the neighbourhood during Chinese New Year. 'There still are now, but not as many troupes come by.'
Although he does not like heights, he will 'move in to live with one of my sons in his apartment in Jalan Besar' when the lease on his current home ends.
Mr Yang's plans are similar, insofar as he has made any at all. He takes comfort in knowing that his son is living in an HDB flat a three-minute walk away. 'Perhaps I will move in with him so it feels as if I have not left this place,' he says.
taysc@sph.com.sg
--------------------------------------------------------------------------------
Quiet and convenient
The residential estate surrounding the popular Bedok Shopping Complex is another area with a short lease left on the homes.
There are about 110 homes, a mix of semi-detached and terrace houses in Bedok Road, Jalan Chempaka Kuning and Jalan Chempaka Puteh that have 26 years remaining on the lease of the land.
The land belonged to the late Koh Sek Lim, a property owner, after whom a road off Upper Changi is named.
It was reported that he sold a 70- year lease for the land in the 1960s to developers who built and marketed houses. He reportedly made HSBC bank the trustee of the land before his death.
The home owners here are a mix of middle-aged families and retirees. Among them is Mr Jesson Ong, 51, who owns a renovation company and counts the residents as his clients.
He has been living in a two-storey semi-detached home in Bedok Road for the last 20 years with his wife and their three school-going children.
It did not bother him then that when he bought the house, it had only 47 years left on its lease.
'The area is peaceful with good neighbours. It was a good deal, I would not be able to own such a home elsewhere,' he says, declining to reveal how much he paid for the home which sits on 4,000 sq ft of land.
Among other things, he appreciates being within walking distance of Bedok Shopping Complex, where his office is located. There is also a food centre and a supermarket nearby.
Another resident, a 70-year-old retiree who wants to be known only as Mr Loh, moved into his semi-detached home about eight years ago, paying about $280,000 for it.
The low price made up for the limited leasehold. Moreover, he likes the area for its convenience, with the expressways, such as Pan Island Expressway and East Coast Parkway nearby. It is also just a 10-minute walk to the Tanah Merah MRT station.
Mr Loh, who lives with his home- maker wife, says he was recently offered $600,000 for his home.
But he rejected the offer and has no plans to move. 'Where would we move to?' he asks.
Property experts say such homes, with about 26 years lease left on them, can fetch about $370,000 each.
Other residents that Life! spoke to say they have not made plans for when the lease expires.
One resident, who declined to be named, would say only that he 'hopes for the best'. Another is adopting a 'wait-and-see' approach.
Mr Ong says he likes the neighbourhood and will live there till the lease expires. He says: 'Only the bank will know what will happen to the land when the lease expires. The fate of the property and land is in the good hands of the beneficiary.'
Tay Suan Chiang
--------------------------------------------------------------------------------
-- ST PHOTO: DESMOND LIM
'The area is peaceful with good neighbours. It was a good deal, I would not be able to own such a home elsewhere'
Mr Jesson Ong, who has been living with his family in a two-storey semi-detached home in Bedok Road for the last 20 years
home & garden
Reaching the end of the road
The lease of these private homes in Upper Boon Keng expires in 10 years, but residents are not in a hurry to move
By tay suan chiang
With only 10 years left on their lease, these terrace homes in Upper Boon Keng cost only about $170,000 to $180,000 - much cheaper than a resale four-room HDB flat in most places. -- ST PHOTO: DESMOND LIM
In a day and age where home owners move house whenever possible for a variety of reasons - to be near schools and grandparents, to make their money work for them - retiree Yang Zheng Cai is a rarity.
He may just outlive the house he has lived in for 50 years. At 73, he is hale and hearty, looking in better shape than the two-storey terrace house in Upper Boon Keng Road, where the lease will expire in about 10 years' time.
His home is one of about 250 terrace houses in what is believed to be one of Singapore's cheapest private housing estate because the land, which had an original lease of 60 years, will return to the Government in 2020.
The area, on which the decades clearly have taken its toll, has been zoned for residential use under the Urban Redevelopment Authority's Master Plan 2008.
Mr Eric Cheng, chief executive of ECG Property, says these homes with built-up areas of about 1,300 sq ft, cost only about $170,000 to $180,000 each.
That amount cannot buy even a resale four-room HDB flat in many places.
Should the area be turned into condominium homes, he says homes there can fetch from $900 to $1,050 per square foot because it is close to town and the Boon Keng MRT station. For units on higher floors, residents can enjoy unblocked views of the city. This estimate is based on the price of nearby condominiums such as The Waterina.
Other residential areas with less than 40 years left on their leasehold include a stretch of homes near Rail Mall in Upper Bukit Timah, Jalan Chempaka Kuning in Bedok and in the Rifle Range Road area.
A spokesman for the Singapore Land Authority says: 'The Government's policy is to allow leases to expire without extension. In land-scarce Singapore, we need to recover land upon lease expiry to re-allocate it to meet fast-changing socio-economic needs.'
Is there any value at all in property in these places? Yes, says Mr Cheng.
'Those with cash for investment can consider getting a unit in Upper Boon Keng as the rental yield is high,' he says. Given the short lease, banks are not likely to grant loans.
Owners can rent out the units for about $3,000 a month, so they could make up to $360,000 in the remaining time before the lease expires.
At its peak in 2007, a unit sold for $200,000.
Mr Yang did not consider selling his house, even when it could have fetched such prices - not least because of his emotional attachment to it.
The home owner, the fourth of six children, inherited the intermediate terrace property from his late father. He has two sisters living along the same street.
Now he lives with his wife, a housewife who wants to be known only as Madam Chen, and their three grandchildren aged 13 to 21. Madam Chen, 72, moved in 50 years ago when the couple got married. They have three children.
The area used to be a kampung and MrYang's family then lived in an attap house which his father rented.
After a fire destroyed the kampung, the Government in 1960 built homes for the kampung residents and Mr Yang's family bought one for about $5,000 - a high price then but his businessman father could afford it when he made a tidy sum.
Mr Yang, who used to own a timber company, recalls playing with his friends after school and catching crabs nearby.
In the early days, most of the residents in the area were Chinese and they often looked out for one another. Front gates and doors were often left unlocked as the area was so safe.
Today, most houses have been converted into temples or rented out to contractors to use as dormitories for foreign workers. High-rise HDB flats and flatted factories have also popped up.
Only about 10 per cent of the homes are occupied by home owners, who are mostly retirees.
To anyone walking through the estate, it is clear that most of the homes have seen better days, although owners have renovated them through the years, turning their backyards into bigger kitchens and front yards into porches.
Mr Yang says it has been 20 years since he last renovated his home, and he cannot remember how much he spent and exactly what he did.
The predominance of foreign workers in the area does not bother him. 'I have no problems with them living next door as they leave for work early and come back late. We do not get any disturbances and the area is peaceful and very safe.'
Mr Cheong Hiong Yau, 92, a former coffee-shop owner, is another long-time resident in the estate.
He has been living here for the past 75 years, currently with his wife, Mrs Cheong Siao Ngor, 83, and their maid in their double-storey terrace house.
He says he likes living here because of its convenient location. The Upper Boon Keng wet market is a five-minute walk away and there is a supermarket nearby too. He often takes his dog for walks around the quiet neighbourhood.
In previous years, he says there would be lion dances in the neighbourhood during Chinese New Year. 'There still are now, but not as many troupes come by.'
Although he does not like heights, he will 'move in to live with one of my sons in his apartment in Jalan Besar' when the lease on his current home ends.
Mr Yang's plans are similar, insofar as he has made any at all. He takes comfort in knowing that his son is living in an HDB flat a three-minute walk away. 'Perhaps I will move in with him so it feels as if I have not left this place,' he says.
taysc@sph.com.sg
--------------------------------------------------------------------------------
Quiet and convenient
The residential estate surrounding the popular Bedok Shopping Complex is another area with a short lease left on the homes.
There are about 110 homes, a mix of semi-detached and terrace houses in Bedok Road, Jalan Chempaka Kuning and Jalan Chempaka Puteh that have 26 years remaining on the lease of the land.
The land belonged to the late Koh Sek Lim, a property owner, after whom a road off Upper Changi is named.
It was reported that he sold a 70- year lease for the land in the 1960s to developers who built and marketed houses. He reportedly made HSBC bank the trustee of the land before his death.
The home owners here are a mix of middle-aged families and retirees. Among them is Mr Jesson Ong, 51, who owns a renovation company and counts the residents as his clients.
He has been living in a two-storey semi-detached home in Bedok Road for the last 20 years with his wife and their three school-going children.
It did not bother him then that when he bought the house, it had only 47 years left on its lease.
'The area is peaceful with good neighbours. It was a good deal, I would not be able to own such a home elsewhere,' he says, declining to reveal how much he paid for the home which sits on 4,000 sq ft of land.
Among other things, he appreciates being within walking distance of Bedok Shopping Complex, where his office is located. There is also a food centre and a supermarket nearby.
Another resident, a 70-year-old retiree who wants to be known only as Mr Loh, moved into his semi-detached home about eight years ago, paying about $280,000 for it.
The low price made up for the limited leasehold. Moreover, he likes the area for its convenience, with the expressways, such as Pan Island Expressway and East Coast Parkway nearby. It is also just a 10-minute walk to the Tanah Merah MRT station.
Mr Loh, who lives with his home- maker wife, says he was recently offered $600,000 for his home.
But he rejected the offer and has no plans to move. 'Where would we move to?' he asks.
Property experts say such homes, with about 26 years lease left on them, can fetch about $370,000 each.
Other residents that Life! spoke to say they have not made plans for when the lease expires.
One resident, who declined to be named, would say only that he 'hopes for the best'. Another is adopting a 'wait-and-see' approach.
Mr Ong says he likes the neighbourhood and will live there till the lease expires. He says: 'Only the bank will know what will happen to the land when the lease expires. The fate of the property and land is in the good hands of the beneficiary.'
Tay Suan Chiang
--------------------------------------------------------------------------------
-- ST PHOTO: DESMOND LIM
'The area is peaceful with good neighbours. It was a good deal, I would not be able to own such a home elsewhere'
Mr Jesson Ong, who has been living with his family in a two-storey semi-detached home in Bedok Road for the last 20 years
BT : Banks roll out more attractive home loans
Business Times - 13 Feb 2010
Banks roll out more attractive home loans
Homebuyers benefit as rivals scramble to match lower rates of market leader DBS
By SIOW LI SEN
(Singapore)
HOMEBUYERS should rejoice as it looks like a home loan war is afoot.
DBS Bank has been lowering its home loan rates, forcing rivals to scramble to match its offerings in order to prevent the mortgage giant from gobbling their market share. The bank said that, last month alone, it enjoyed a more than 50 per cent increase in mortgage applications.
BT understands that HSBC, for one, is countering that with what some call 'guerilla tactics'. Next week it will launch a special home loan package, but the offer may be valid only for a short time - to get customers to commit before the competition can react.
DBS has cut its rates several times in the last two months - a fact that has not gone unnoticed by analysts who say that DBS's recent aggressive moves to sell loans under its new chief executive is a headache for other banks.
'DBS has always been the market spoiler, dating back to the late 1990s,' said Morgan Stanley analyst Matthew Wilson.
A recent Credit Suisse report noted that chief executive Piyush Gupta said the bank has the lowest cost of deposits, after all. 'We have already seen the best home loan package coming from DBS recently,' said Credit Suisse.
For the fourth quarter of 2009, DBS grew its housing loans 7 per cent, and 12 per cent over 2008.
DBS's most aggressive package brings the spread it is charging borrowers back to pre-crisis levels and is less than half of what it was some 24 months ago.
For its 3-month Sibor (Singapore interbank offered rate ) plus package, it is charging a spread of 0.5 per cent and 0.75 per cent for the first and second years, respectively.
Citibank said that, as of Feb 10, it is charging a spread ranging from 0.8 to 1.25 per cent. It also offers the widest selection of Sibor tenors in the market, from one month to three years.
This means clients can take advantage of the low one-month Sibor now and then change to a 12-month Sibor later when they feel that interest rates are likely to rise, thereby fixing the rate on their instalments for that period.
Conversely, a client who has chosen a 6-month Sibor initially can switch to a one-month Sibor if he believes that interest rates could ease in the coming months, Citibank said.
DBS said its popular 3-year fixed-rate package charges from 1.99 to 2.19 per cent.
'The fact is, DBS offers the widest suite and most competitive home loan packages in town,' said Jeremy Soo, DBS managing director, consumer banking group, Singapore.
'Our fixed-rate packages remain very popular, with more than 60 per cent of our customers opting for them,' he said.
'The response is not surprising as they were designed specifically to give homeowners both the certainty in repayments (over the three years) and still enjoy the flexibility to make partial repayments. This flexibility is usually not found in fixed-rate packages,' he added.
'Our momentum has been very good. Month-on-month, in January alone, we saw a more than 50 per cent increase in applications,' Mr Soo said.
Asked about its coming promotion, an HSBC spokesman said the bank is very happy with the growth of its mortgage business for 2009 and the market share it achieved.
'For 2010, we are continuing with this approach, which we are confident will help us to build on the momentum we achieved to attract and win more customers to our proposition. Watch this space.'
Vibha Coburn, Citibank Singapore business director for secured finance, said that while having competitive rates is important, 'we strongly believe that providing innovative value-added products and good after-sales service is just as important'.
United Overseas Bank (UOB) said it will continue to be prominent in the home loan scene. 'We will compete, but not on pricing alone,' said Eddie Khoo, the bank's head of personal financial services.
A UOB spokeswoman added that the bank reviews its product offerings on an ongoing basis to meet the changing needs of homebuyers.
'As everyone's situation is different, customers are encouraged to visit any UOB branch or speak to any UOB mobile banker for a package customised to their needs.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Banks roll out more attractive home loans
Homebuyers benefit as rivals scramble to match lower rates of market leader DBS
By SIOW LI SEN
(Singapore)
HOMEBUYERS should rejoice as it looks like a home loan war is afoot.
DBS Bank has been lowering its home loan rates, forcing rivals to scramble to match its offerings in order to prevent the mortgage giant from gobbling their market share. The bank said that, last month alone, it enjoyed a more than 50 per cent increase in mortgage applications.
BT understands that HSBC, for one, is countering that with what some call 'guerilla tactics'. Next week it will launch a special home loan package, but the offer may be valid only for a short time - to get customers to commit before the competition can react.
DBS has cut its rates several times in the last two months - a fact that has not gone unnoticed by analysts who say that DBS's recent aggressive moves to sell loans under its new chief executive is a headache for other banks.
'DBS has always been the market spoiler, dating back to the late 1990s,' said Morgan Stanley analyst Matthew Wilson.
A recent Credit Suisse report noted that chief executive Piyush Gupta said the bank has the lowest cost of deposits, after all. 'We have already seen the best home loan package coming from DBS recently,' said Credit Suisse.
For the fourth quarter of 2009, DBS grew its housing loans 7 per cent, and 12 per cent over 2008.
DBS's most aggressive package brings the spread it is charging borrowers back to pre-crisis levels and is less than half of what it was some 24 months ago.
For its 3-month Sibor (Singapore interbank offered rate ) plus package, it is charging a spread of 0.5 per cent and 0.75 per cent for the first and second years, respectively.
Citibank said that, as of Feb 10, it is charging a spread ranging from 0.8 to 1.25 per cent. It also offers the widest selection of Sibor tenors in the market, from one month to three years.
This means clients can take advantage of the low one-month Sibor now and then change to a 12-month Sibor later when they feel that interest rates are likely to rise, thereby fixing the rate on their instalments for that period.
Conversely, a client who has chosen a 6-month Sibor initially can switch to a one-month Sibor if he believes that interest rates could ease in the coming months, Citibank said.
DBS said its popular 3-year fixed-rate package charges from 1.99 to 2.19 per cent.
'The fact is, DBS offers the widest suite and most competitive home loan packages in town,' said Jeremy Soo, DBS managing director, consumer banking group, Singapore.
'Our fixed-rate packages remain very popular, with more than 60 per cent of our customers opting for them,' he said.
'The response is not surprising as they were designed specifically to give homeowners both the certainty in repayments (over the three years) and still enjoy the flexibility to make partial repayments. This flexibility is usually not found in fixed-rate packages,' he added.
'Our momentum has been very good. Month-on-month, in January alone, we saw a more than 50 per cent increase in applications,' Mr Soo said.
Asked about its coming promotion, an HSBC spokesman said the bank is very happy with the growth of its mortgage business for 2009 and the market share it achieved.
'For 2010, we are continuing with this approach, which we are confident will help us to build on the momentum we achieved to attract and win more customers to our proposition. Watch this space.'
Vibha Coburn, Citibank Singapore business director for secured finance, said that while having competitive rates is important, 'we strongly believe that providing innovative value-added products and good after-sales service is just as important'.
United Overseas Bank (UOB) said it will continue to be prominent in the home loan scene. 'We will compete, but not on pricing alone,' said Eddie Khoo, the bank's head of personal financial services.
A UOB spokeswoman added that the bank reviews its product offerings on an ongoing basis to meet the changing needs of homebuyers.
'As everyone's situation is different, customers are encouraged to visit any UOB branch or speak to any UOB mobile banker for a package customised to their needs.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Collective sales set to take off again
Business Times - 12 Feb 2010
Collective sales set to take off again
As many as 50 of them may be launched this year but deals may take longer under revised rules and rising price expectations
By KALPANA RASHIWALA
(SINGAPORE) As many as 50 collective sales may be launched this year, though less than half of these could translate into actual deals before year-end, say property agents polled by BT.
A study by property consultant Credo Real Estate has listed a total of 34 possible properties that could be tendered for collective sale in 2010.
Eighteen of the 34 developments are either in District 10 or 15. 'These are among the larger high-density private residential districts that enjoy healthy demand for new homes and hence land for residential development,' says Credo's managing director Karamjit Singh.
Collective sales committees have been appointed for all the 34 developments in the list. Most have also appointed property consultants and lawyers. Some have begun signing a Collective Sale Agreement (CSA); however, a tender launch could well flow into next year, especially for larger estates.
Two of the 34 sites - Goodwill Mansion in Balestier and Holland Hill Lodge - have already been launched this year. Meanwhile, nearly half the developments on the list comprise fewer than 50 existing units each.
Agents say larger estates will take more time to be launch-ready as it takes longer to secure the minimum 80 per cent consent level from owners. It also requires several (usually three or four) extraordinary general meetings (EOGMs) before a site can be launched for sale under revised en bloc rules that kicked in from October 2007.
Mr Singh points out that even for an estate of say just 30 units, it could take about six months between the time owners requisition for their first EOGM and inking the sale to a developer. This used to take just three to four months before rules were amended.
Jones Lang LaSalle's head of investment sales Stella Hoh says: 'Small and mid-sized sites will form the bulk of new launches and actual deals up to, say, the third quarter of this year. Next year onwards, if the private residential market continues to be stable and sales volume picks up further, that will create more confidence for bigger en bloc sale sites to be launched.'
Colliers International executive director (investment sales) Ho Eng Joo reckons that projects in city fringe locations like Balestier, as well as East Coast and Changi areas, are more likely to succeed in en bloc sale efforts than those in the prime districts. 'Prices of end units (homes) in prime districts have not recovered to their 2007 peak, so it's harder for developers to cough up 2007 land prices that many owners expect.' In fringe locations, the price gap compared to 2007 has been much less.
Mr Singh suggests that it may be tough selling 99-year leasehold en bloc sites this year as developers can buy comparable plots under the Government Land Sales Programme. 'Likewise, prime sites very close to Orchard Road may also see a slow start as developers still have prime sites in their books, many of which were bought in 2006/2007.
'Where we expect to see greater levels of success would be (sites) in mass market and mid-prime locations which are realistically priced and offering unique selling points like being near to Sentosa, MRT stations, shopping centres and good schools,' he added.
Credo reckons about 30-50 sites could be launched this year, of which around 20 could be sold by end-2010. Knight Frank executive director Nicholas Wong forecasts 40-50 launches and 15-20 sales this year. JLL's Ms Hoh predicts that only 15-20 sites could be launched, of which 10 may be sold.
During the peak year of 2007, a total of 87 collective sale deals were sealed at a total of $11.6 billion. This fell to eight deals for a total $346.5 million in 2008 and just one deal at $100.8 million last year.
Owners looking to match or exceed 2007 prices could stand in the way of en bloc sales.
Savills Singapore's director of investment sales and prestige homes Steven Ming says that owners may expect higher premiums before they sign the CSA as prices could rise while they wait to collect their sales proceeds. 'It can easily take one and a half years from the point of obtaining the first signature to the time when owners receive full sales proceeds,' he said.
'Sellers, when they consider signing the CSA, look at how much premium they will get for their unit in an en bloc sale than if they were to sell it on an individual basis in the current market; as well as the future replacement cost for the property. Sellers seek a higher premium for fear of being priced out later if prices rise steeply.'
However, developers in their bids would be more mindful of changes in property cycles while they wait for Strata Title Board and possibly other court approvals before they can take possession of the site. 'The sudden market correction in late 2008 is still fresh on developers' minds,' Mr Ming notes.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Collective sales set to take off again
As many as 50 of them may be launched this year but deals may take longer under revised rules and rising price expectations
By KALPANA RASHIWALA
(SINGAPORE) As many as 50 collective sales may be launched this year, though less than half of these could translate into actual deals before year-end, say property agents polled by BT.
A study by property consultant Credo Real Estate has listed a total of 34 possible properties that could be tendered for collective sale in 2010.
Eighteen of the 34 developments are either in District 10 or 15. 'These are among the larger high-density private residential districts that enjoy healthy demand for new homes and hence land for residential development,' says Credo's managing director Karamjit Singh.
Collective sales committees have been appointed for all the 34 developments in the list. Most have also appointed property consultants and lawyers. Some have begun signing a Collective Sale Agreement (CSA); however, a tender launch could well flow into next year, especially for larger estates.
Two of the 34 sites - Goodwill Mansion in Balestier and Holland Hill Lodge - have already been launched this year. Meanwhile, nearly half the developments on the list comprise fewer than 50 existing units each.
Agents say larger estates will take more time to be launch-ready as it takes longer to secure the minimum 80 per cent consent level from owners. It also requires several (usually three or four) extraordinary general meetings (EOGMs) before a site can be launched for sale under revised en bloc rules that kicked in from October 2007.
Mr Singh points out that even for an estate of say just 30 units, it could take about six months between the time owners requisition for their first EOGM and inking the sale to a developer. This used to take just three to four months before rules were amended.
Jones Lang LaSalle's head of investment sales Stella Hoh says: 'Small and mid-sized sites will form the bulk of new launches and actual deals up to, say, the third quarter of this year. Next year onwards, if the private residential market continues to be stable and sales volume picks up further, that will create more confidence for bigger en bloc sale sites to be launched.'
Colliers International executive director (investment sales) Ho Eng Joo reckons that projects in city fringe locations like Balestier, as well as East Coast and Changi areas, are more likely to succeed in en bloc sale efforts than those in the prime districts. 'Prices of end units (homes) in prime districts have not recovered to their 2007 peak, so it's harder for developers to cough up 2007 land prices that many owners expect.' In fringe locations, the price gap compared to 2007 has been much less.
Mr Singh suggests that it may be tough selling 99-year leasehold en bloc sites this year as developers can buy comparable plots under the Government Land Sales Programme. 'Likewise, prime sites very close to Orchard Road may also see a slow start as developers still have prime sites in their books, many of which were bought in 2006/2007.
'Where we expect to see greater levels of success would be (sites) in mass market and mid-prime locations which are realistically priced and offering unique selling points like being near to Sentosa, MRT stations, shopping centres and good schools,' he added.
Credo reckons about 30-50 sites could be launched this year, of which around 20 could be sold by end-2010. Knight Frank executive director Nicholas Wong forecasts 40-50 launches and 15-20 sales this year. JLL's Ms Hoh predicts that only 15-20 sites could be launched, of which 10 may be sold.
During the peak year of 2007, a total of 87 collective sale deals were sealed at a total of $11.6 billion. This fell to eight deals for a total $346.5 million in 2008 and just one deal at $100.8 million last year.
Owners looking to match or exceed 2007 prices could stand in the way of en bloc sales.
Savills Singapore's director of investment sales and prestige homes Steven Ming says that owners may expect higher premiums before they sign the CSA as prices could rise while they wait to collect their sales proceeds. 'It can easily take one and a half years from the point of obtaining the first signature to the time when owners receive full sales proceeds,' he said.
'Sellers, when they consider signing the CSA, look at how much premium they will get for their unit in an en bloc sale than if they were to sell it on an individual basis in the current market; as well as the future replacement cost for the property. Sellers seek a higher premium for fear of being priced out later if prices rise steeply.'
However, developers in their bids would be more mindful of changes in property cycles while they wait for Strata Title Board and possibly other court approvals before they can take possession of the site. 'The sudden market correction in late 2008 is still fresh on developers' minds,' Mr Ming notes.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : HDB launches 1,534 new BTO flats
Feb 12, 2010
HDB launches 1,534 new BTO flats
On offer: 750 units in Punggol, 784 in Woodlands at 'below market prices'
THE Housing Board has released 1,534 flats at two new projects, in the latest move to allay widespread fear of a public housing shortage.
Yesterday, it launched 750 build-to-order (BTO) units in Punggol and 784 in Woodlands. A further 1,000 BTO flats in Sengkang and Sembawang are slated for launch next month.
The launches are in line with the HDB's plan to offer an islandwide spread of 7,000 BTO flats - in areas such as Punggol, Yishun and Jurong West - during the first half of the year.
Last month, the HDB freed 1,291 flats for sale in Choa Chu Kang and Hougang.
The projects released yesterday - Punggol Crest at Punggol Place and Treegrove@Woodlands at Woodlands
Avenue 7 - have been described by the HDB as being priced below 'equivalent market prices'.
Punggol Crest, which is close to the future Punggol Town Centre, is served by the Punggol MRT station and the surrounding LRT stations and bus interchange.
Sited next to the Tampines Expressway, it offers 240 two-room, 240 three-room and 270 four-room flats.
Prices range from $90,000 for a two-room flat with a 46 sq m floor area, to $301,000 for a four-room unit with a 92 sq m floor area.
Treegrove@Woodlands, which is next to 888 Plaza, offers 192 studio apartments, 220 three-room flats and 372 four-room units.
Residents will be served by the Woodlands and Admiralty MRT stations, a bus interchange and the Seletar and Bukit Timah expressways.
Prices begin at $64,000 for a 36 sq m studio apartment, and rise to $288,000 for a 95 sq m four-room flat.
The HDB is setting aside 95 per cent of the two-, three- and four-room flats for first-time home buyers.
Mr Mohamed Ismail, chief executive of real estate agency PropNex, expects the flats to be oversubscribed by at least six times because of continued demand for public housing.
Applications for the new units are now open and will close on Feb 24. Those eligible can apply for a housing grant of up to $40,000.
DICKSON LI
HDB launches 1,534 new BTO flats
On offer: 750 units in Punggol, 784 in Woodlands at 'below market prices'
THE Housing Board has released 1,534 flats at two new projects, in the latest move to allay widespread fear of a public housing shortage.
Yesterday, it launched 750 build-to-order (BTO) units in Punggol and 784 in Woodlands. A further 1,000 BTO flats in Sengkang and Sembawang are slated for launch next month.
The launches are in line with the HDB's plan to offer an islandwide spread of 7,000 BTO flats - in areas such as Punggol, Yishun and Jurong West - during the first half of the year.
Last month, the HDB freed 1,291 flats for sale in Choa Chu Kang and Hougang.
The projects released yesterday - Punggol Crest at Punggol Place and Treegrove@Woodlands at Woodlands
Avenue 7 - have been described by the HDB as being priced below 'equivalent market prices'.
Punggol Crest, which is close to the future Punggol Town Centre, is served by the Punggol MRT station and the surrounding LRT stations and bus interchange.
Sited next to the Tampines Expressway, it offers 240 two-room, 240 three-room and 270 four-room flats.
Prices range from $90,000 for a two-room flat with a 46 sq m floor area, to $301,000 for a four-room unit with a 92 sq m floor area.
Treegrove@Woodlands, which is next to 888 Plaza, offers 192 studio apartments, 220 three-room flats and 372 four-room units.
Residents will be served by the Woodlands and Admiralty MRT stations, a bus interchange and the Seletar and Bukit Timah expressways.
Prices begin at $64,000 for a 36 sq m studio apartment, and rise to $288,000 for a 95 sq m four-room flat.
The HDB is setting aside 95 per cent of the two-, three- and four-room flats for first-time home buyers.
Mr Mohamed Ismail, chief executive of real estate agency PropNex, expects the flats to be oversubscribed by at least six times because of continued demand for public housing.
Applications for the new units are now open and will close on Feb 24. Those eligible can apply for a housing grant of up to $40,000.
DICKSON LI
ST : HDB resale prices: Don't just find a scapegoat
Feb 11, 2010
HDB resale prices: Don't just find a scapegoat
It is not an issue of us-versus-them, but one of a rise in demand
By Chua Mui Hoong, Senior Writer
THE Housing Board is reviewing rules on flat ownership, to see if any encourages speculation in HDB resale flats. The review will be completed in a few months' time, according to National Development Minister Mah Bow Tan.
The background: Resale flat prices rose by 3.9 per cent in the last quarter of last year, or by 8.2 per cent in the year. From 2007 to 2009, prices have gone up nearly 40 per cent.
Young couples complain that prices are rising beyond their reach. All manner of folk are being blamed for the rise in prices: foreigners, permanent residents, rich private-property owners who buy HDB flats for rental income, or people who 'flip' HDB resale flats within a year. The HDB will have its work cut out coming to grips with this issue.
But actually, what exactly is the issue? Are rising HDB resale prices an issue?
Surely not to the majority of 880,000 or so households who already own an HDB flat, to whom rising flat prices means rising asset values.
Rising prices are an issue to new households and those with no roofs over their heads. Who are they? The 25,000 couples who marry each year. Also, over 7,000 couples in a year file for divorce, which means some 7,000 ex-spouses may be searching for a new home. In 2008, nearly 80,000 people were granted PRs and another 20,000 were conferred citizenship. Presumably, many among them will want to buy a home.
All in, that's about 132,000 people a year who may be looking for a home. Of these, about 10,000 may get a subsidised new HDB flat. About 20 per cent may go for private property. That still leaves about 95,600 people who may be eyeing an HDB resale flat.
But only a fraction of them will actually buy a resale flat, since some would already own homes, or may decide to rent or live with others. The total number of resale transactions last year was 37,205, an increase of 31 per cent over 2008.
The overall picture suggests rising demand for HDB resale flats spurred in part by immigration. PRs own less than 5 per cent of HDB flats, but last year 20 per cent of resale transactions involved them.
But if one looked at the issue rationally, high resale prices is not a Singaporeans versus non-citizens issue. In fact, old citizens should cheer PRs for boosting demand, and other PRs and new citizens should rue them for the same reason.
Is it speculation that is driving HDB resale flat prices up? HDB rules now allow a buyer of a resale flat to sell it after one year, if he did not take advantage of any government grant in buying it. The flat can be rented out after three years.
The public discussion on the 'speculative' element in resale flats throws up two possibilities: one, some people are buying and selling HDB flats for profit, or 'flipping' as it is called; or that some people are buying HDB flats with the sole purpose of renting them out.
Is there evidence of 'flipping'? Property agents have said there is hardly any. In its review, HDB should track and make public the number of people who churn resale flats for a profit from say, above 12 months to 18 months. If there is evidence of such a trend, and there are grounds to think such transactions are causing a bubble in resale flat prices, then HDB should indeed tighten the rules to weed out such short-term profit-driven demand.
(Declaration: I own an HDB resale flat I hope to sell one day at a price higher than what I paid for it - like the other 879,999 HDB flat owners.)
What of the charge that some people are buying HDB flats for rental income?
Actually, this is patently the case - and rightly so. HDB's 2008/09 annual report states there were 22,754 flats that were sublet. No one knows how many more flats are being sublet illegally. A number of HDB flat owners will also be renting out some bedrooms for income.
HDB flats may be built for owner-occupation - hence, the eligibility criteria on citizenship, formation of family, income limits, and the five-year time bar before they can be sold.
But HDB flats after five years are bought and sold like any other commodity, with buyers concerned about investment value, resale potential, potential rental income and financing costs.
The HDB resale market has been gradually freed up over the years. Right now, an HDB flat makes for a decent investment. A four-room flat in Clementi has a median price now of $415,000 and can fetch $2,000 a month in rent - a gross yield of 5.78 per cent, much higher than bank deposits.
Rather than frown on such returns, we should acknowledge that good rental yields speak well of the health of the resale market. An HDB resale flat buyer who does not get a government grant or take up a subsidised HDB loan, gets no subsidy for his purchase. If he is prepared to abide by HDB rules and lives in the flat for three years before letting it out, there is little justification to deny him the income.
The way I see it, rising resale flat prices reflect genuine pent-up demand spurred by high levels of immigration. They do not seem to be driven by speculative frenzy. Those priced out of the market may find it emotionally satisfying to finger PRs or speculators as scapegoats than to acknowledge that the market is moving faster than one's income and savings can keep up with.
It is important for HDB to respond appropriately to what appears to be a short-term spike in demand, which should resolve itself, since the flow of foreigners will slow. It should not over-react by tightening the rules.
Spooking the HDB resale market will dampen the private property market and cause a fall in asset values of HDB households, affecting their sense of wealth and their sense of retirement security.
muihoong@sph.com.sg
HDB resale prices: Don't just find a scapegoat
It is not an issue of us-versus-them, but one of a rise in demand
By Chua Mui Hoong, Senior Writer
THE Housing Board is reviewing rules on flat ownership, to see if any encourages speculation in HDB resale flats. The review will be completed in a few months' time, according to National Development Minister Mah Bow Tan.
The background: Resale flat prices rose by 3.9 per cent in the last quarter of last year, or by 8.2 per cent in the year. From 2007 to 2009, prices have gone up nearly 40 per cent.
Young couples complain that prices are rising beyond their reach. All manner of folk are being blamed for the rise in prices: foreigners, permanent residents, rich private-property owners who buy HDB flats for rental income, or people who 'flip' HDB resale flats within a year. The HDB will have its work cut out coming to grips with this issue.
But actually, what exactly is the issue? Are rising HDB resale prices an issue?
Surely not to the majority of 880,000 or so households who already own an HDB flat, to whom rising flat prices means rising asset values.
Rising prices are an issue to new households and those with no roofs over their heads. Who are they? The 25,000 couples who marry each year. Also, over 7,000 couples in a year file for divorce, which means some 7,000 ex-spouses may be searching for a new home. In 2008, nearly 80,000 people were granted PRs and another 20,000 were conferred citizenship. Presumably, many among them will want to buy a home.
All in, that's about 132,000 people a year who may be looking for a home. Of these, about 10,000 may get a subsidised new HDB flat. About 20 per cent may go for private property. That still leaves about 95,600 people who may be eyeing an HDB resale flat.
But only a fraction of them will actually buy a resale flat, since some would already own homes, or may decide to rent or live with others. The total number of resale transactions last year was 37,205, an increase of 31 per cent over 2008.
The overall picture suggests rising demand for HDB resale flats spurred in part by immigration. PRs own less than 5 per cent of HDB flats, but last year 20 per cent of resale transactions involved them.
But if one looked at the issue rationally, high resale prices is not a Singaporeans versus non-citizens issue. In fact, old citizens should cheer PRs for boosting demand, and other PRs and new citizens should rue them for the same reason.
Is it speculation that is driving HDB resale flat prices up? HDB rules now allow a buyer of a resale flat to sell it after one year, if he did not take advantage of any government grant in buying it. The flat can be rented out after three years.
The public discussion on the 'speculative' element in resale flats throws up two possibilities: one, some people are buying and selling HDB flats for profit, or 'flipping' as it is called; or that some people are buying HDB flats with the sole purpose of renting them out.
Is there evidence of 'flipping'? Property agents have said there is hardly any. In its review, HDB should track and make public the number of people who churn resale flats for a profit from say, above 12 months to 18 months. If there is evidence of such a trend, and there are grounds to think such transactions are causing a bubble in resale flat prices, then HDB should indeed tighten the rules to weed out such short-term profit-driven demand.
(Declaration: I own an HDB resale flat I hope to sell one day at a price higher than what I paid for it - like the other 879,999 HDB flat owners.)
What of the charge that some people are buying HDB flats for rental income?
Actually, this is patently the case - and rightly so. HDB's 2008/09 annual report states there were 22,754 flats that were sublet. No one knows how many more flats are being sublet illegally. A number of HDB flat owners will also be renting out some bedrooms for income.
HDB flats may be built for owner-occupation - hence, the eligibility criteria on citizenship, formation of family, income limits, and the five-year time bar before they can be sold.
But HDB flats after five years are bought and sold like any other commodity, with buyers concerned about investment value, resale potential, potential rental income and financing costs.
The HDB resale market has been gradually freed up over the years. Right now, an HDB flat makes for a decent investment. A four-room flat in Clementi has a median price now of $415,000 and can fetch $2,000 a month in rent - a gross yield of 5.78 per cent, much higher than bank deposits.
Rather than frown on such returns, we should acknowledge that good rental yields speak well of the health of the resale market. An HDB resale flat buyer who does not get a government grant or take up a subsidised HDB loan, gets no subsidy for his purchase. If he is prepared to abide by HDB rules and lives in the flat for three years before letting it out, there is little justification to deny him the income.
The way I see it, rising resale flat prices reflect genuine pent-up demand spurred by high levels of immigration. They do not seem to be driven by speculative frenzy. Those priced out of the market may find it emotionally satisfying to finger PRs or speculators as scapegoats than to acknowledge that the market is moving faster than one's income and savings can keep up with.
It is important for HDB to respond appropriately to what appears to be a short-term spike in demand, which should resolve itself, since the flow of foreigners will slow. It should not over-react by tightening the rules.
Spooking the HDB resale market will dampen the private property market and cause a fall in asset values of HDB households, affecting their sense of wealth and their sense of retirement security.
muihoong@sph.com.sg
BT : S'pore office rents down 46.2% in Q4 '09
Business Times - 11 Feb 2010
S'pore office rents down 46.2% in Q4 '09
It's biggest fall in Asia-Pac, widening S'pore's rental gap with HK, Tokyo
By UMA SHANKARI
TOKYO, Hong Kong and Singapore remained the three most expensive office locations in the Asia-Pacific in the fourth quarter of 2009, according to a report from Colliers International.
But Grade A office rents in Singapore suffered the biggest fall in 2009 across all Asia-Pacific markets tracked. Rents here slid 46.2 per cent from Q4 2008, Colliers says in its latest Asia-Pacific office market overview.
Rents fell 24.2 per cent year on year in Hong Kong and 19.5 per cent in Tokyo.
'Because of the steeper fall in Singapore, the gap in rents between Singapore and Tokyo and Hong Kong widened to 88.5 per cent and 46.7 per cent respectively in Q4 2009,' said Colliers' director of research and advisory Tay Huey Ying.
In Q4 2008, rents in Singapore were 32.1 per cent lower than those in Tokyo and just 7 per cent shy of Hong Kong.
On the other hand, the cost of occupying Grade A office space in Singapore versus cities such as Sydney, Ho Chi Minh City, Perth, Mumbai and Delhi has narrowed. Occupancy costs in Singapore were 30.3 to 115.1 per cent higher than those in these cities in Q4 2008, but the difference has fallen to 3.1 to 29.1 per cent in the past year.
'This has greatly increased the competitiveness of Singapore vis-a-vis the rest of the region,' said Ms Tay. 'With the Asia-Pacific leading the world out of recession, the competitive office rents in Singapore are now a compelling reason to invest or locate operations here.'
In general, office leasing markets across Asia-Pacific are bottoming out. The pace of rental decline narrowed to less than one per cent quarter on quarter in Q4 2009.
Colliers attributed this to strong rents in cities such as Hong Kong and Chengdu, where the supply of new space remained tight and demand increased.
In Singapore, office leasing activity increased in Q4 2009 as businesses started to prepare for the upturn. Rents declined just 0.4 per cent from Q3.
Looking ahead, average office rents in the region are expected to grow again towards the end of 2010, Colliers said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
S'pore office rents down 46.2% in Q4 '09
It's biggest fall in Asia-Pac, widening S'pore's rental gap with HK, Tokyo
By UMA SHANKARI
TOKYO, Hong Kong and Singapore remained the three most expensive office locations in the Asia-Pacific in the fourth quarter of 2009, according to a report from Colliers International.
But Grade A office rents in Singapore suffered the biggest fall in 2009 across all Asia-Pacific markets tracked. Rents here slid 46.2 per cent from Q4 2008, Colliers says in its latest Asia-Pacific office market overview.
Rents fell 24.2 per cent year on year in Hong Kong and 19.5 per cent in Tokyo.
'Because of the steeper fall in Singapore, the gap in rents between Singapore and Tokyo and Hong Kong widened to 88.5 per cent and 46.7 per cent respectively in Q4 2009,' said Colliers' director of research and advisory Tay Huey Ying.
In Q4 2008, rents in Singapore were 32.1 per cent lower than those in Tokyo and just 7 per cent shy of Hong Kong.
On the other hand, the cost of occupying Grade A office space in Singapore versus cities such as Sydney, Ho Chi Minh City, Perth, Mumbai and Delhi has narrowed. Occupancy costs in Singapore were 30.3 to 115.1 per cent higher than those in these cities in Q4 2008, but the difference has fallen to 3.1 to 29.1 per cent in the past year.
'This has greatly increased the competitiveness of Singapore vis-a-vis the rest of the region,' said Ms Tay. 'With the Asia-Pacific leading the world out of recession, the competitive office rents in Singapore are now a compelling reason to invest or locate operations here.'
In general, office leasing markets across Asia-Pacific are bottoming out. The pace of rental decline narrowed to less than one per cent quarter on quarter in Q4 2009.
Colliers attributed this to strong rents in cities such as Hong Kong and Chengdu, where the supply of new space remained tight and demand increased.
In Singapore, office leasing activity increased in Q4 2009 as businesses started to prepare for the upturn. Rents declined just 0.4 per cent from Q3.
Looking ahead, average office rents in the region are expected to grow again towards the end of 2010, Colliers said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST Forum : Public flats: Misperceptions about supply and PRs
Feb 10, 2010
Public flats: Misperceptions about supply and PRs
I REFER to the letters by Mr Lua Eng Chuan ('Ban PRs from reselling HDB flats at a profit', Jan 19), Mr Wan Siew Kay ('Citizenship caveat', Jan 20) and Mr Robin Chua ('Costly flats', Jan 27).
In response to recent strong demand, the HDB has already ramped up the supply of new flats. With at least one build- to-order (BTO) launch a month, most first-time buyers can expect to select a BTO flat within two tries, and move into their new flats three years after booking.
The HDB is monitoring the demand situation closely and will increase the supply of new flats further, if necessary.
The oversubscription for BTO launches does not mean the flat supply is inadequate. In fact, many flat buyers do not select a flat when they get the chance. Last year, almost 50 per cent of first-time applicants in BTO launches did not select a flat upon invitation. So it is not true that there is inadequate supply of new flats, as suggested by Mr Chua.
We also wish to correct some misperceptions about permanent residents (PRs). PRs do not enjoy housing subsidies or HDB concessionary loans. Citizens make up 95 per cent of flat owners and 80 per cent of resale flat buyers.
Mr Wan may have confused HDB's public rental flats with flats rented out by lessees at open market rentals. The former is meant only for needy Singaporeans who have no other housing options. PRs must rent a flat from the open market at full market rates.
Mr Lua suggested banning PRs from sub-letting or selling their flats at a profit. Like Singaporeans, PR flat owners are required to fulfil the minimum occupation period before they are allowed to sublet or sell their flats. They bear the market risks for their purchases. Nonetheless, the HDB is looking into whether our rules have inadvertently allowed flat purchases for speculative purposes.
Singaporean singles also enjoy subsidies to buy an HDB flat, albeit less than citizen households. Singles above 35 can buy a resale flat with up to $20,000 housing grant if their parents are staying with them.
Lily Chan-Wong Jee Choo (Mrs)
Deputy Director (Policy and Property)
Housing & Development Board
Public flats: Misperceptions about supply and PRs
I REFER to the letters by Mr Lua Eng Chuan ('Ban PRs from reselling HDB flats at a profit', Jan 19), Mr Wan Siew Kay ('Citizenship caveat', Jan 20) and Mr Robin Chua ('Costly flats', Jan 27).
In response to recent strong demand, the HDB has already ramped up the supply of new flats. With at least one build- to-order (BTO) launch a month, most first-time buyers can expect to select a BTO flat within two tries, and move into their new flats three years after booking.
The HDB is monitoring the demand situation closely and will increase the supply of new flats further, if necessary.
The oversubscription for BTO launches does not mean the flat supply is inadequate. In fact, many flat buyers do not select a flat when they get the chance. Last year, almost 50 per cent of first-time applicants in BTO launches did not select a flat upon invitation. So it is not true that there is inadequate supply of new flats, as suggested by Mr Chua.
We also wish to correct some misperceptions about permanent residents (PRs). PRs do not enjoy housing subsidies or HDB concessionary loans. Citizens make up 95 per cent of flat owners and 80 per cent of resale flat buyers.
Mr Wan may have confused HDB's public rental flats with flats rented out by lessees at open market rentals. The former is meant only for needy Singaporeans who have no other housing options. PRs must rent a flat from the open market at full market rates.
Mr Lua suggested banning PRs from sub-letting or selling their flats at a profit. Like Singaporeans, PR flat owners are required to fulfil the minimum occupation period before they are allowed to sublet or sell their flats. They bear the market risks for their purchases. Nonetheless, the HDB is looking into whether our rules have inadvertently allowed flat purchases for speculative purposes.
Singaporean singles also enjoy subsidies to buy an HDB flat, albeit less than citizen households. Singles above 35 can buy a resale flat with up to $20,000 housing grant if their parents are staying with them.
Lily Chan-Wong Jee Choo (Mrs)
Deputy Director (Policy and Property)
Housing & Development Board
Tuesday, February 16, 2010
BT : CMT buys Clarke Quay for $268m
Business Times - 10 Feb 2010
CMT buys Clarke Quay for $268m
Seller CapitaMalls Asia says right time to monetise property as it has stabilised
By UMA SHANKARI
CAPITAMALL Trust (CMT) has agreed to buy Clarke Quay from parent company CapitaMalls Asia for $268 million in cash, the two companies said yesterday.
The purchase will increase CMT's asset size to $7.6 billion, from $7.4 billion as at end-2009.
Both CMT and CapitaMalls Asia are units of CapitaLand, Singapore's largest property group by market capitalisation.
CapitaMalls Asia was created after CapitaLand spun off and listed its retail arm late last year. CMT, Singapore's largest real estate investment trust, was sponsored by CapitaLand and listed in 2002.
CapitaLand carried out several major asset enhancements of Clarke Quay between 2004 and 2006 to reposition it as a one-stop entertainment and lifestyle hub. It also refreshed Clarke Quay's tenancy mix to ensure that it remains a vibrant lifestyle destination. Visitor traffic has doubled to nearly one million monthly today from about 500,000 visitors before the asset enhancement.
'The acquisition of Clarke Quay complements CMT's current portfolio of mainly suburban malls catering for necessity shopping,' said Simon Ho, chief executive of the trust's manager. 'It increases the number of properties that we have catering for discretionary consumer spending and will enable us to ride on the long-term remaking of Singapore as Asia's leading convention, exhibition, leisure destination and services centre.'
CMT's portfolio now consists of 14 retail properties including Tampines Mall, Plaza Singapura and Raffles City Singapore.
Mr Ho added that when the repositioning of Clarke Quay was completed in December 2006, it did not yet have an established track record of operations and some leases were committed below market rent. There is therefore potential for rental upside when leases become due for renewal in the next few years, he said.
On its part, CapitaMalls Asia is monetising Clarke Quay to recycle capital for new investment opportunities.
'This is the right time to monetise Clarke Quay as the property has stabilised,' said Lim Beng Chee, chief executive of CapitaMalls Asia. 'There is growth potential in Clarke Quay which is best realised through our stake in CMT going forward, after CMT has acquired the property from us.'
CapitaMalls Asia has an interest of about 29.9 per cent in CMT. It also fully owns CMT's manager.
The price represents a 2.3 per cent premium over the valuation of $262 million as at end-2009, as well as a 5.9 per cent yield on Clarke Quay's net property income of $15.8 million in 2009.
The transaction, which is conditional upon CMT unitholders' approval, is expected to be completed by July 2010.
CMT said that based on its closing price of $1.73 on Feb 8, 2010, CMT's distribution yield is 5.1 per cent and the implied property yield is 4.9 per cent. As such, the transaction is expected to be yield-accretive.
The trust added that it has sufficient financial flexibility and capacity to fund this transaction. Assuming the transaction is fully funded by debt, CMT's gearing would be 33.1 per cent - still within its target range of 30-35 per cent.
CapitaMalls Asia lost 2 cents to close at $2.22 yesterday while CMT gained 4 cents to close at $1.77.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CMT buys Clarke Quay for $268m
Seller CapitaMalls Asia says right time to monetise property as it has stabilised
By UMA SHANKARI
CAPITAMALL Trust (CMT) has agreed to buy Clarke Quay from parent company CapitaMalls Asia for $268 million in cash, the two companies said yesterday.
The purchase will increase CMT's asset size to $7.6 billion, from $7.4 billion as at end-2009.
Both CMT and CapitaMalls Asia are units of CapitaLand, Singapore's largest property group by market capitalisation.
CapitaMalls Asia was created after CapitaLand spun off and listed its retail arm late last year. CMT, Singapore's largest real estate investment trust, was sponsored by CapitaLand and listed in 2002.
CapitaLand carried out several major asset enhancements of Clarke Quay between 2004 and 2006 to reposition it as a one-stop entertainment and lifestyle hub. It also refreshed Clarke Quay's tenancy mix to ensure that it remains a vibrant lifestyle destination. Visitor traffic has doubled to nearly one million monthly today from about 500,000 visitors before the asset enhancement.
'The acquisition of Clarke Quay complements CMT's current portfolio of mainly suburban malls catering for necessity shopping,' said Simon Ho, chief executive of the trust's manager. 'It increases the number of properties that we have catering for discretionary consumer spending and will enable us to ride on the long-term remaking of Singapore as Asia's leading convention, exhibition, leisure destination and services centre.'
CMT's portfolio now consists of 14 retail properties including Tampines Mall, Plaza Singapura and Raffles City Singapore.
Mr Ho added that when the repositioning of Clarke Quay was completed in December 2006, it did not yet have an established track record of operations and some leases were committed below market rent. There is therefore potential for rental upside when leases become due for renewal in the next few years, he said.
On its part, CapitaMalls Asia is monetising Clarke Quay to recycle capital for new investment opportunities.
'This is the right time to monetise Clarke Quay as the property has stabilised,' said Lim Beng Chee, chief executive of CapitaMalls Asia. 'There is growth potential in Clarke Quay which is best realised through our stake in CMT going forward, after CMT has acquired the property from us.'
CapitaMalls Asia has an interest of about 29.9 per cent in CMT. It also fully owns CMT's manager.
The price represents a 2.3 per cent premium over the valuation of $262 million as at end-2009, as well as a 5.9 per cent yield on Clarke Quay's net property income of $15.8 million in 2009.
The transaction, which is conditional upon CMT unitholders' approval, is expected to be completed by July 2010.
CMT said that based on its closing price of $1.73 on Feb 8, 2010, CMT's distribution yield is 5.1 per cent and the implied property yield is 4.9 per cent. As such, the transaction is expected to be yield-accretive.
The trust added that it has sufficient financial flexibility and capacity to fund this transaction. Assuming the transaction is fully funded by debt, CMT's gearing would be 33.1 per cent - still within its target range of 30-35 per cent.
CapitaMalls Asia lost 2 cents to close at $2.22 yesterday while CMT gained 4 cents to close at $1.77.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CNA : URA puts up Mohamed Sultan Road office site for sale
URA puts up Mohamed Sultan Road office site for sale
By Mok Fei Fei, Channel NewsAsia | Posted: 09 February 2010 1257 hrs
SINGAPORE: The Urban Redevelopment Authority (URA) on Tuesday launched a transitional office site at Mohamed Sultan Road for sale by public tender.
The 15-year leasehold site has an area of about 0.62 hectare and a maximum permissible gross floor area of about 9,200 square metres.
The minimum price for the site is S$9.33 million.
Since October 2008, the land parcel was made available for sale through the Reserve List System. Under the system, a site would be released for sale only if a bid with an acceptable minimum price is received.
Two weeks ago, URA said it had accepted an application from a developer to put up the site for sale.
In October 2008, URA had rejected a sole bid for the Mohamed Sultan site as the price offered was deemed to be too low. Back then, RSP Architects Planners & Engineers had put in a bid of S$4.65 million.
The site was subsequently placed on the Reserve List. The current tender for the site will close on March 18.
- CNA/sc
By Mok Fei Fei, Channel NewsAsia | Posted: 09 February 2010 1257 hrs
SINGAPORE: The Urban Redevelopment Authority (URA) on Tuesday launched a transitional office site at Mohamed Sultan Road for sale by public tender.
The 15-year leasehold site has an area of about 0.62 hectare and a maximum permissible gross floor area of about 9,200 square metres.
The minimum price for the site is S$9.33 million.
Since October 2008, the land parcel was made available for sale through the Reserve List System. Under the system, a site would be released for sale only if a bid with an acceptable minimum price is received.
Two weeks ago, URA said it had accepted an application from a developer to put up the site for sale.
In October 2008, URA had rejected a sole bid for the Mohamed Sultan site as the price offered was deemed to be too low. Back then, RSP Architects Planners & Engineers had put in a bid of S$4.65 million.
The site was subsequently placed on the Reserve List. The current tender for the site will close on March 18.
- CNA/sc
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