Business Times - 04 Mar 2010
LETTER TO THE EDITOR
Property tax for most will still be lower even if AV is hiked
MR DENIS Distant said that the benefits of the new progressive property tax may not last long if IRAS starts revaluing the Annual Value (AV) of properties (BT, Feb 26, 'Property tax boon may be short-lived').
Property tax is a tax levied on the ownership of property, based on the AV of the property. AV reflects the prevailing market rentals of properties. The tax payable will thus increase with an increase in market rentals and vice versa.
IRAS will only adjust the AVs of properties if the market rental data support such revisions. Currently, owner-occupied residential properties are taxed at a flat 4 per cent.
With the progressive property tax schedule, properties with an AV of less than $77,000 will pay less property tax compared to the current flat 4 per cent rate.
This is because the first $6,000 of AV is exempt from property tax. Even with future increases in AV, most owner-occupied properties will still pay lower tax under the new regime so long as their AV does not exceed $77,000. (As a reference, all HDB flats have AVs of not more than $11,000 currently.)
Only about 3 per cent of private owner-occupied residences now have AVs in excess of $77,000. Even then, our property tax rates will remain lower than in most international cities, even for the high-end properties.
Deanna Choo
Director (corporate communications)
IRAS
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Thursday, March 4, 2010
BT : Second-tier cities offer growth potential
Business Times - 04 Mar 2010
SINGAPORE INTERNATIONAL
Second-tier cities offer growth potential
That's why Xian is Mapletree Investment's choice
By CHUANG PECK MING
WHERE does one invest in China, which is such a vast market? One of Mapletree Investment's strategies is to focus on second-tier cities with good growth potential, where it can find better value in real estate. And where growth has not fully taken off.
The idea is to ride on the growth of these cities in the next decade, says Loh Shyh, the Singapore-based company's chief executive officer.
Xian meets many of Mapletree's criteria. Mr Loh says the city, away from China's coastal regions, has a vibrant economy and a big population of 8.4 million people who are growing richer.
And it has been singled out by the government for the next frontier of China's development. So foreign investments in the city get generous government backing and incentives.
The central government is already pouring money into infrastructure and education there to build the pool of low-cost but educated workers for Xian's development.
'There is therefore demand for good quality residential, retail business and other lifestyle and entertainment properties that will meet their needs for a modern, convenient lifestyle,' Mr Loh says.
Mapletree, which described itself as 'a leading Asia-focused real estate capital management company', isn't interested just in retail and residential properties. It's also looking for land and sites for logistics, business parks, industries and offices.
The company's first investment in Xian was a $17.8 million acquisition of a logistics distribution centre in March 2007, which has been named Mapletree Xian Distribution Centre.
Four months after, it committed itself to a 200,000 square-metre 'integrated mixed-use development comprising four luxurious residential towers with 1,368 units and integrated with a retail component'.
The development is called 'Future City' and the retail component is a replica of Mapletree's VivoCity in Singapore. VivoCity Xian, about 62,500 sq m spread over four levels, is due to open in December this year.
'Future City was created based on Mapletree's vision of a vibrant, cosmopolitan hub for work, living and play, featuring a large retail mall to cater to today's shopping demands, as well as modern apartments to supplement the growing needs of residents and visitors,' Mr Loh says.
The investment in Future City is US$148 million.
'Mapletree expects revenue contributions from its two projects to increase as occupancy rises for the Mapletree Xian Distribution Centre and construction of Future City is completed by the fourth quarter of 2010,' Mr Loh says.
He noted that China's commitment to developing the western regions has drawn a rising international presence in Xian.
'Xian is a modern city undergoing rapid urbanisation, with its young and dynamic workforce growing in affluence. There is therefore demand for good quality residential, retail, business and other lifestyle and entertainment properties that will meet their needs for a modern, convenient lifestyle.'
Mr Loh says Mapletree is still exploring more opportunities in Xian.
'Doing business in China, as in any foreign country, requires intimate knowledge of the local business landscape, rules, regulations and nuances,' he says.
'As real estate is a local business, it is imperative that we have a local physical presence in each city where the projects are in order for us to get close to deal flows and services of our customers.'
Mapletree currently has three management offices in China: Shanghai, Beijing and Guangzhou, apart from project companies in Tianjin, Foshan, Wuxi, Xian and others.
Its total headcount in China is 120 and its staff is 'growing by the day'. Mapletree has 52 staff based in Xian.
Singapore International - a fortnightly series brought to you by IE Singapore and The Business Times
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
SINGAPORE INTERNATIONAL
Second-tier cities offer growth potential
That's why Xian is Mapletree Investment's choice
By CHUANG PECK MING
WHERE does one invest in China, which is such a vast market? One of Mapletree Investment's strategies is to focus on second-tier cities with good growth potential, where it can find better value in real estate. And where growth has not fully taken off.
The idea is to ride on the growth of these cities in the next decade, says Loh Shyh, the Singapore-based company's chief executive officer.
Xian meets many of Mapletree's criteria. Mr Loh says the city, away from China's coastal regions, has a vibrant economy and a big population of 8.4 million people who are growing richer.
And it has been singled out by the government for the next frontier of China's development. So foreign investments in the city get generous government backing and incentives.
The central government is already pouring money into infrastructure and education there to build the pool of low-cost but educated workers for Xian's development.
'There is therefore demand for good quality residential, retail business and other lifestyle and entertainment properties that will meet their needs for a modern, convenient lifestyle,' Mr Loh says.
Mapletree, which described itself as 'a leading Asia-focused real estate capital management company', isn't interested just in retail and residential properties. It's also looking for land and sites for logistics, business parks, industries and offices.
The company's first investment in Xian was a $17.8 million acquisition of a logistics distribution centre in March 2007, which has been named Mapletree Xian Distribution Centre.
Four months after, it committed itself to a 200,000 square-metre 'integrated mixed-use development comprising four luxurious residential towers with 1,368 units and integrated with a retail component'.
The development is called 'Future City' and the retail component is a replica of Mapletree's VivoCity in Singapore. VivoCity Xian, about 62,500 sq m spread over four levels, is due to open in December this year.
'Future City was created based on Mapletree's vision of a vibrant, cosmopolitan hub for work, living and play, featuring a large retail mall to cater to today's shopping demands, as well as modern apartments to supplement the growing needs of residents and visitors,' Mr Loh says.
The investment in Future City is US$148 million.
'Mapletree expects revenue contributions from its two projects to increase as occupancy rises for the Mapletree Xian Distribution Centre and construction of Future City is completed by the fourth quarter of 2010,' Mr Loh says.
He noted that China's commitment to developing the western regions has drawn a rising international presence in Xian.
'Xian is a modern city undergoing rapid urbanisation, with its young and dynamic workforce growing in affluence. There is therefore demand for good quality residential, retail, business and other lifestyle and entertainment properties that will meet their needs for a modern, convenient lifestyle.'
Mr Loh says Mapletree is still exploring more opportunities in Xian.
'Doing business in China, as in any foreign country, requires intimate knowledge of the local business landscape, rules, regulations and nuances,' he says.
'As real estate is a local business, it is imperative that we have a local physical presence in each city where the projects are in order for us to get close to deal flows and services of our customers.'
Mapletree currently has three management offices in China: Shanghai, Beijing and Guangzhou, apart from project companies in Tianjin, Foshan, Wuxi, Xian and others.
Its total headcount in China is 120 and its staff is 'growing by the day'. Mapletree has 52 staff based in Xian.
Singapore International - a fortnightly series brought to you by IE Singapore and The Business Times
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CNA : MPs fear Singaporeans priced out by foreigners, private property owners
MPs fear Singaporeans priced out by foreigners, private property owners
By Leong Wee Keat, TODAY | Posted: 03 March
2010 0852 hrs
SINGAPORE: They were free to discuss any point raised in the Budget 2010
speech - and on Tuesday, several parliamentarians chose to reiterate the
concerns Singaporeans have over the affordability of housing board flats.
While Finance Minister Tharman Shanmugaratnam in his February 22 speech had
touched on a new tax regime to buffer flat owners, whose flat values are
rising, from a growing property tax bill, MPs broached a more direct fear:
Would residents be priced out of public housing, whether by foreigners or
private property owners?
By admitting too many immigrants too quickly into the country, Mr Inderjit
Singh (Ang Mo Kio GRC) said Singaporeans must now compete for resources,
which drives up the cost of living: "The clearest manifestation of this is
the cost of HDB flats."
Dr Ahmad Magad (Pasir Ris-Punggol GRC) said going by anecdotal evidence,
there were private property owners who owned resale HDB flats, but instead
of staying in them, as the rules require, were renting them out. "While the
numbers may now be quite small, I fear they will swell if no new measures
are introduced."
He is asking the Government to review its policy of allowing the sale of HDB
flats after a year if they are purchased with a bank loan and the rental of
HDB flats after a three-year occupation period.
"Harsh action should be taken against those who rent out their flats
illegally," he added.
MP Sin Boon Ann (Tampines GRC) called for a review of the S$8,000 household
income ceiling for buyers of new flats.
"Not everyone whose combined income exceeds the household limit can afford
private housing, (nor will they) necessarily have the ability to stump out
cash for the cash portion if they bought an HDB flat from the secondary
market," he said.
And with the perception that property prices are rising, many feel owning "a
decent home" is even further out of reach, he said.
Meanwhile, MP Liang Eng Hwa (Holland-Bukit Timah GRC) hoped the Government
would pre-empt another emergence of en bloc fever, which he said could
distort the property market and cause short-term volatility.
"Besides, en bloc sales, if too widespread, can be harmful for the
environment and waste much of our precious resources," he added.
By Leong Wee Keat,
2010 0852 hrs
SINGAPORE: They were free to discuss any point raised in the Budget 2010
speech - and on Tuesday, several parliamentarians chose to reiterate the
concerns Singaporeans have over the affordability of housing board flats.
While Finance Minister Tharman Shanmugaratnam in his February 22 speech had
touched on a new tax regime to buffer flat owners, whose flat values are
rising, from a growing property tax bill, MPs broached a more direct fear:
Would residents be priced out of public housing, whether by foreigners or
private property owners?
By admitting too many immigrants too quickly into the country, Mr Inderjit
Singh (Ang Mo Kio GRC) said Singaporeans must now compete for resources,
which drives up the cost of living: "The clearest manifestation of this is
the cost of HDB flats."
Dr Ahmad Magad (Pasir Ris-Punggol GRC) said going by anecdotal evidence,
there were private property owners who owned resale HDB flats, but instead
of staying in them, as the rules require, were renting them out. "While the
numbers may now be quite small, I fear they will swell if no new measures
are introduced."
He is asking the Government to review its policy of allowing the sale of HDB
flats after a year if they are purchased with a bank loan and the rental of
HDB flats after a three-year occupation period.
"Harsh action should be taken against those who rent out their flats
illegally," he added.
MP Sin Boon Ann (Tampines GRC) called for a review of the S$8,000 household
income ceiling for buyers of new flats.
"Not everyone whose combined income exceeds the household limit can afford
private housing, (nor will they) necessarily have the ability to stump out
cash for the cash portion if they bought an HDB flat from the secondary
market," he said.
And with the perception that property prices are rising, many feel owning "a
decent home" is even further out of reach, he said.
Meanwhile, MP Liang Eng Hwa (Holland-Bukit Timah GRC) hoped the Government
would pre-empt another emergence of en bloc fever, which he said could
distort the property market and cause short-term volatility.
"Besides, en bloc sales, if too widespread, can be harmful for the
environment and waste much of our precious resources," he added.
CNA : Lend Lease exploring more investment opportunities in Singapore
Lend Lease exploring more investment opportunities in Singapore
By Wong Siew Ying, Channel NewsAsia | Posted: 03 March 2010 2102 hrs
SINGAPORE: International property firm Lend Lease is hoping to expand its
footprint in Asia.
The company said its three-month old mall, 313@Somerset in Singapore, has
done better than expected, and the firm is eyeing more investment
opportunities in the city state over the next 12 months.
2010 started off on a high note for 313@Somerset, one of three new malls
along Orchard Road.
The other two malls are CapitaLand's ION Orchard and Far East Organisation's
Orchard Central.
Since opening in December last year, Lend Lease said 313@Somerset has
attracted an average of three million people each month.
Responding to Channel NewsAsia, CapitaLand said its retail property ION
Orchard sees a customer traffic of over 4.5 million people a month on
average.
ION Orchard opened last July and it has a retail space of 640,000 square
feet - more than twice the size of 313@Somerset, which has a space of
294,000 square feet.
With more shopping options springing up along Orchard Road and the two
integrated resorts, competition in the retail sector is expected to
intensify.
Lend Lease said it is studying ways to reach out to younger shoppers.
"We are in the mid market and our demographic of shoppers now is 20 per cent
tourists and 80 per cent locals," said Ooi Eng Peng, chief executive officer
of Investment Management at Lend Lease.
"I think with the IRs, we expect more tourists to come to Singapore, more
tourists will come to Orchard Road, and we see it as a positive move."
Without revealing details, Lend Lease said it is currently looking at a
couple of mixed-sites under the government's Land Sales programme, on top of
efforts to expand in markets like China and Malaysia.
And retailers like Catalist-listed AFOR hopes to tap the landlord's network
to expand overseas.
The company runs nine epi-centre stores in Singapore and Malaysia currently,
and 10 more stores could be added in the region within the year.
"Some of the other countries we are looking at are in South East Asia and in
China," said Jimmy Fong, chief executive officer of AFOR Limited. "We are
looking at hiring at least 50 to 100 people over the next 12 to 24 months."
Mr Fong said that total sales recorded in 2009 hit S$65 million, and this is
expected to grow to over S$80 million in 2010.
While retailers seek to expand in anticipation of better times, some
analyses say landlords could up rentals by three to four per cent this year,
on the back of improving consumer sentiment and economic upturn.
On average, prime retail space along Orchard Road goes for about S$38 per
square foot.
- CNA/yb
By Wong Siew Ying, Channel NewsAsia | Posted: 03 March 2010 2102 hrs
SINGAPORE: International property firm Lend Lease is hoping to expand its
footprint in Asia.
The company said its three-month old mall, 313@Somerset in Singapore, has
done better than expected, and the firm is eyeing more investment
opportunities in the city state over the next 12 months.
2010 started off on a high note for 313@Somerset, one of three new malls
along Orchard Road.
The other two malls are CapitaLand's ION Orchard and Far East Organisation's
Orchard Central.
Since opening in December last year, Lend Lease said 313@Somerset has
attracted an average of three million people each month.
Responding to Channel NewsAsia, CapitaLand said its retail property ION
Orchard sees a customer traffic of over 4.5 million people a month on
average.
ION Orchard opened last July and it has a retail space of 640,000 square
feet - more than twice the size of 313@Somerset, which has a space of
294,000 square feet.
With more shopping options springing up along Orchard Road and the two
integrated resorts, competition in the retail sector is expected to
intensify.
Lend Lease said it is studying ways to reach out to younger shoppers.
"We are in the mid market and our demographic of shoppers now is 20 per cent
tourists and 80 per cent locals," said Ooi Eng Peng, chief executive officer
of Investment Management at Lend Lease.
"I think with the IRs, we expect more tourists to come to Singapore, more
tourists will come to Orchard Road, and we see it as a positive move."
Without revealing details, Lend Lease said it is currently looking at a
couple of mixed-sites under the government's Land Sales programme, on top of
efforts to expand in markets like China and Malaysia.
And retailers like Catalist-listed AFOR hopes to tap the landlord's network
to expand overseas.
The company runs nine epi-centre stores in Singapore and Malaysia currently,
and 10 more stores could be added in the region within the year.
"Some of the other countries we are looking at are in South East Asia and in
China," said Jimmy Fong, chief executive officer of AFOR Limited. "We are
looking at hiring at least 50 to 100 people over the next 12 to 24 months."
Mr Fong said that total sales recorded in 2009 hit S$65 million, and this is
expected to grow to over S$80 million in 2010.
While retailers seek to expand in anticipation of better times, some
analyses say landlords could up rentals by three to four per cent this year,
on the back of improving consumer sentiment and economic upturn.
On average, prime retail space along Orchard Road goes for about S$38 per
square foot.
- CNA/yb
CNA : 5 housing estates to have fitness corners for NSmen to prepare for IPPT
5 housing estates to have fitness corners for NSmen to prepare for IPPT:
SAFRA
By Imelda Saad, Channel NewsAsia | Posted: 03 March 2010 1930 hrs
SINGAPORE: It's a recommendation made by the latest RECORD committee to help
NSmen to prepare for their Individual Physical Proficiency Test.
There will soon be ten fitness corners in five housing estates to make it
convenient for them to keep fit and train.
All the upgraded fitness corners are scheduled for completion within the
next few months.
NSmen living around Bukit Purmei will now have better facilities to train
for their IPPT.
The enhanced fitness corner located at Hilllock Park, near Block 108 Bukit
Purmei Road is the first to be completed under the IPPT-In-Your-Community
project.
It was opened by SAFRA's President and Minister of State for Defence,
Associate Professor Koo Tsai Kee.
The upgraded facility comprises stations with sit-up benches, chin-up bars,
and facilities for shuttle run and standing broad jump.
In addition, running routes will be clearly demarcated for 2.4 kilometre
practice runs.
MP for Tanjong Pagar GRC, Sam Tan said: "It is very important to make IPPT
training facilities convenient to NSmen who live in the HDB estate. So, this
facility will allow our NSmen to train up their physical fitness even within
their own neighbourhood near their doorsteps."
Besides Tanjong Pagar, the enhanced fitness corners will be set up at
Bishan-Toa Payoh, Sembawang, Tampines, and West Coast estates.
Over 3,000 NSmen are expected to benefit from these fitness corners.
Col Chan Chee Pong, chairman, IPPT In Your Community Project, said: "First
of all, if already fitness corners are there and we can enhance it, upgrade
it, we'll do that first. For building new fitness corners, that will
probably come in at a very different phase of this entire development. There
are many fitness corners within all the HDB estates. So, we're going every
particular corner that can be enhanced or upgraded and we'll start off with
that. Only at a later stage, then we will decide what else needs to be
done." - CNA/vm
SAFRA
By Imelda Saad, Channel NewsAsia | Posted: 03 March 2010 1930 hrs
SINGAPORE: It's a recommendation made by the latest RECORD committee to help
NSmen to prepare for their Individual Physical Proficiency Test.
There will soon be ten fitness corners in five housing estates to make it
convenient for them to keep fit and train.
All the upgraded fitness corners are scheduled for completion within the
next few months.
NSmen living around Bukit Purmei will now have better facilities to train
for their IPPT.
The enhanced fitness corner located at Hilllock Park, near Block 108 Bukit
Purmei Road is the first to be completed under the IPPT-In-Your-Community
project.
It was opened by SAFRA's President and Minister of State for Defence,
Associate Professor Koo Tsai Kee.
The upgraded facility comprises stations with sit-up benches, chin-up bars,
and facilities for shuttle run and standing broad jump.
In addition, running routes will be clearly demarcated for 2.4 kilometre
practice runs.
MP for Tanjong Pagar GRC, Sam Tan said: "It is very important to make IPPT
training facilities convenient to NSmen who live in the HDB estate. So, this
facility will allow our NSmen to train up their physical fitness even within
their own neighbourhood near their doorsteps."
Besides Tanjong Pagar, the enhanced fitness corners will be set up at
Bishan-Toa Payoh, Sembawang, Tampines, and West Coast estates.
Over 3,000 NSmen are expected to benefit from these fitness corners.
Col Chan Chee Pong, chairman, IPPT In Your Community Project, said: "First
of all, if already fitness corners are there and we can enhance it, upgrade
it, we'll do that first. For building new fitness corners, that will
probably come in at a very different phase of this entire development. There
are many fitness corners within all the HDB estates. So, we're going every
particular corner that can be enhanced or upgraded and we'll start off with
that. Only at a later stage, then we will decide what else needs to be
done." - CNA/vm
ST Forum : Allowing one owner to stop majority untenable
Mar 3, 2010
EN BLOC SALES
Allowing one owner to stop majority untenable
MR TAN Keng Ann ('Review law on en bloc sales'; last Saturday) says he cannot treasure his home because the power to sell his home is vested in 80 per cent of his neighbours. He asks for the collective property sale laws to be changed.
Home owners of strata developments own the right to their individual units, and they share ownership of the common areas and facilities with other owners. While individual owners can decide whether and when to sell their units, they will have to go with the wishes of the vast majority of owners for a collective sale.
Shared ownership of common property means the rights of the individual owner have to be balanced against those of the vast majority of owners. The legislation, which sets a high majority consent level of 80 per cent for developments at least 10 years old and 90 per cent for developments less than 10 years old, seeks to strike such a balance.
Mr Tan's point is that any one owner should be able to stop the majority owners' decisions (even if it is 80 to 90 per cent majority). That is not a tenable proposition.
Chong Wan Yieng (Ms)
Head, Corporate Communications
Ministry of Law
EN BLOC SALES
Allowing one owner to stop majority untenable
MR TAN Keng Ann ('Review law on en bloc sales'; last Saturday) says he cannot treasure his home because the power to sell his home is vested in 80 per cent of his neighbours. He asks for the collective property sale laws to be changed.
Home owners of strata developments own the right to their individual units, and they share ownership of the common areas and facilities with other owners. While individual owners can decide whether and when to sell their units, they will have to go with the wishes of the vast majority of owners for a collective sale.
Shared ownership of common property means the rights of the individual owner have to be balanced against those of the vast majority of owners. The legislation, which sets a high majority consent level of 80 per cent for developments at least 10 years old and 90 per cent for developments less than 10 years old, seeks to strike such a balance.
Mr Tan's point is that any one owner should be able to stop the majority owners' decisions (even if it is 80 to 90 per cent majority). That is not a tenable proposition.
Chong Wan Yieng (Ms)
Head, Corporate Communications
Ministry of Law
ST Forum : Ultimately, drawing the line is a judgment call
Mar 3, 2010
EN BLOC SALES
Ultimately, drawing the line is a judgment call
COLLECTIVE property sales require a delicate balance between residents who want to keep their home and those seeking to monetise their property.
Such a situation is perhaps unavoidable because of the strata-titled nature of the land involved.
However, the law on collective sales should favour home owners who desire not to sell because residents who want to sell their property have the alternative of doing so individually, albeit at a possibly lower price.
Residents who want to keep their home do not have an equivalent alternative.
Second, owners generally should have the right to reject an offer if one follows the accepted principle of willing buyer, willing seller.
In principle, all owners of a piece of strata-titled land should agree before a collective sale is completed.
Thus, the law should show greater protection towards residents who seek to maintain ownership.
However, this arrangement may allow a small group or even a single owner to overrule the collective discretion and well-being of other owners.
Requiring total acceptance is unjust as well.
The fine balance between the two groups could come from requiring a higher majority for a collective sale.
This helps to favour and protect owners unwilling to sell while allowing the monetisation of assets in situations where there is a large majority. The balanced approach is similar to 'majority rule, minority rights'.
While the optimum percentage to enable a collective sale is ultimately a judgment call, the current status quo of 80 per cent is reasonable.
The authorities could re-examine this proportion, especially if significant new developments arise.
Loke Hon Yiong
EN BLOC SALES
Ultimately, drawing the line is a judgment call
COLLECTIVE property sales require a delicate balance between residents who want to keep their home and those seeking to monetise their property.
Such a situation is perhaps unavoidable because of the strata-titled nature of the land involved.
However, the law on collective sales should favour home owners who desire not to sell because residents who want to sell their property have the alternative of doing so individually, albeit at a possibly lower price.
Residents who want to keep their home do not have an equivalent alternative.
Second, owners generally should have the right to reject an offer if one follows the accepted principle of willing buyer, willing seller.
In principle, all owners of a piece of strata-titled land should agree before a collective sale is completed.
Thus, the law should show greater protection towards residents who seek to maintain ownership.
However, this arrangement may allow a small group or even a single owner to overrule the collective discretion and well-being of other owners.
Requiring total acceptance is unjust as well.
The fine balance between the two groups could come from requiring a higher majority for a collective sale.
This helps to favour and protect owners unwilling to sell while allowing the monetisation of assets in situations where there is a large majority. The balanced approach is similar to 'majority rule, minority rights'.
While the optimum percentage to enable a collective sale is ultimately a judgment call, the current status quo of 80 per cent is reasonable.
The authorities could re-examine this proportion, especially if significant new developments arise.
Loke Hon Yiong
BT : Coping with rising urban population
Business Times - 03 Mar 2010
Coping with rising urban population
By adopting new intelligent systems, cities around the world can grow and flourish as their populations increase
By FOONG SEW BUN
THERE was a time when if someone asked about Singapore's population, the answer would be '3.5 million'. Today, the same question elicits a resounding 'about five million'. According to the Singapore Department of Statistics, Singapore's total population as at June 2009 was 4.997 million.
About 3.733 million are Singapore residents, comprising Singapore citizens and Permanent Residents. Compare this to five decades ago - Singapore's population totalled 1.646 million in 1960. How the city-state has grown. Now let's take a look beyond our shores.
An estimated 60 million people are moving to cities and urban areas each year - over one million every week. Today, the world's cities are simultaneously addressing increasing populations and deteriorating infrastructure. To sustain growth, cities around the world - including Singapore - need to look at new ways of doing things. In the next five years, by adopting systems that are intelligent, instrumented and interconnected, cities will change in the following ways:
Cities will have healthier immune systems: Given their population density, cities will remain hotbeds of communicable diseases. But in the future, public health officials will know precisely when, where and how diseases are spreading - even which neighbourhoods will be affected next.
Scientists will give city officials, hospitals, schools and workplaces the tools to better detect, track, prepare for and prevent infections, such as the H1N1 virus or seasonal influenza. We will see a 'health Internet' emerge, where anonymous medical information, contained in electronic health records, will be securely shared to curtail the spread of disease and keep people healthier.
IBM is already working with organisations worldwide, such as the Nuclear Threat Initiative's Global Health and Security Initiative and the Middle East Consortium on Infectious Disease Surveillance, to standardise methods for sharing health information and analysing infectious disease outbreaks.
City buildings will sense and respond like living organisms: As people move into city buildings at record rates, buildings will be built smartly. Today, many of the systems that constitute a building - heat, water, sewage, electricity, etc - are managed independently.
In the future, the technology that manages facilities will operate like a living organism that can sense and respond quickly, in order to protect citizens, save resources and reduce carbon emissions. Thousands of sensors inside buildings will monitor everything from motion and temperature to humidity, occupancy and light. The building won't just coexist with nature - it will harness it. This system will enable repairs before something breaks, emergency units to respond quickly with the necessary resources, and consumers and business owners to monitor their energy consumption and carbon emission in real time and take action to reduce them.
Some buildings are already showing signs of intelligence by reducing energy use, improving operational efficiency, and improving comfort and safety for occupants. For the first time, the 'E' on gas gauges will mean 'enough'. Increasingly, cars and city buses no longer will rely on fossil fuels. Vehicles will begin to run on new battery technology that won't need to be recharged for days or months at a time, depending on how often you drive.
Scientists and engineers are working to design new batteries that will make it possible for electric vehicles to travel 500km to 800km on a single charge, up from 80km to 160km currently. Also, smart grids in cities could enable cars to be charged in public places and use renewable energy, such as wind power, for charging so they no longer rely on coal-powered plants. This will lower emissions as well as minimise noise pollution.
Smarter systems will quench cities' thirst for water and save energy: Today, one in five people lacks access to safe drinking water, and municipalities lose an alarming amount of precious water - up to 50 per cent through leaky infrastructure. On top of that, human demand for water is expected to increase sixfold in the next 50 years. To deal with this challenge, cities will install smarter water systems to reduce water waste by up to 50 per cent. Cities will also install smart sewer systems that not only prevent run-off pollution in rivers and lakes but also purify water to make it drinkable.
Advanced water purification technologies will help cities recycle and reuse water locally, reducing energy used to transport water by up to 20 per cent. Interactive meters and sensors will be integrated into water and energy systems, providing you with real time, accurate information about your water consumption so you will be able to make better decisions about how and when you use this valuable resource.
Cities will respond to a crisis - even before receiving an emergency phone call: Cities will be able to reduce and even prevent emergencies, such as crime and disasters. More than 70 per cent of the world's population will live in cities by 2050. By taking these steps over the next five years, cities around the world can grow and flourish as their populations increase.
One wonders what Singapore's population figure will be by then.
The writer is a distinguished engineer and chief technologist with IBM Singapore
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Coping with rising urban population
By adopting new intelligent systems, cities around the world can grow and flourish as their populations increase
By FOONG SEW BUN
THERE was a time when if someone asked about Singapore's population, the answer would be '3.5 million'. Today, the same question elicits a resounding 'about five million'. According to the Singapore Department of Statistics, Singapore's total population as at June 2009 was 4.997 million.
About 3.733 million are Singapore residents, comprising Singapore citizens and Permanent Residents. Compare this to five decades ago - Singapore's population totalled 1.646 million in 1960. How the city-state has grown. Now let's take a look beyond our shores.
An estimated 60 million people are moving to cities and urban areas each year - over one million every week. Today, the world's cities are simultaneously addressing increasing populations and deteriorating infrastructure. To sustain growth, cities around the world - including Singapore - need to look at new ways of doing things. In the next five years, by adopting systems that are intelligent, instrumented and interconnected, cities will change in the following ways:
Cities will have healthier immune systems: Given their population density, cities will remain hotbeds of communicable diseases. But in the future, public health officials will know precisely when, where and how diseases are spreading - even which neighbourhoods will be affected next.
Scientists will give city officials, hospitals, schools and workplaces the tools to better detect, track, prepare for and prevent infections, such as the H1N1 virus or seasonal influenza. We will see a 'health Internet' emerge, where anonymous medical information, contained in electronic health records, will be securely shared to curtail the spread of disease and keep people healthier.
IBM is already working with organisations worldwide, such as the Nuclear Threat Initiative's Global Health and Security Initiative and the Middle East Consortium on Infectious Disease Surveillance, to standardise methods for sharing health information and analysing infectious disease outbreaks.
City buildings will sense and respond like living organisms: As people move into city buildings at record rates, buildings will be built smartly. Today, many of the systems that constitute a building - heat, water, sewage, electricity, etc - are managed independently.
In the future, the technology that manages facilities will operate like a living organism that can sense and respond quickly, in order to protect citizens, save resources and reduce carbon emissions. Thousands of sensors inside buildings will monitor everything from motion and temperature to humidity, occupancy and light. The building won't just coexist with nature - it will harness it. This system will enable repairs before something breaks, emergency units to respond quickly with the necessary resources, and consumers and business owners to monitor their energy consumption and carbon emission in real time and take action to reduce them.
Some buildings are already showing signs of intelligence by reducing energy use, improving operational efficiency, and improving comfort and safety for occupants. For the first time, the 'E' on gas gauges will mean 'enough'. Increasingly, cars and city buses no longer will rely on fossil fuels. Vehicles will begin to run on new battery technology that won't need to be recharged for days or months at a time, depending on how often you drive.
Scientists and engineers are working to design new batteries that will make it possible for electric vehicles to travel 500km to 800km on a single charge, up from 80km to 160km currently. Also, smart grids in cities could enable cars to be charged in public places and use renewable energy, such as wind power, for charging so they no longer rely on coal-powered plants. This will lower emissions as well as minimise noise pollution.
Smarter systems will quench cities' thirst for water and save energy: Today, one in five people lacks access to safe drinking water, and municipalities lose an alarming amount of precious water - up to 50 per cent through leaky infrastructure. On top of that, human demand for water is expected to increase sixfold in the next 50 years. To deal with this challenge, cities will install smarter water systems to reduce water waste by up to 50 per cent. Cities will also install smart sewer systems that not only prevent run-off pollution in rivers and lakes but also purify water to make it drinkable.
Advanced water purification technologies will help cities recycle and reuse water locally, reducing energy used to transport water by up to 20 per cent. Interactive meters and sensors will be integrated into water and energy systems, providing you with real time, accurate information about your water consumption so you will be able to make better decisions about how and when you use this valuable resource.
Cities will respond to a crisis - even before receiving an emergency phone call: Cities will be able to reduce and even prevent emergencies, such as crime and disasters. More than 70 per cent of the world's population will live in cities by 2050. By taking these steps over the next five years, cities around the world can grow and flourish as their populations increase.
One wonders what Singapore's population figure will be by then.
The writer is a distinguished engineer and chief technologist with IBM Singapore
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : STC takes over Chancery Five project
Business Times - 03 Mar 2010
STC takes over Chancery Five project
Development will have 12 freehold strata bungalows
By EMILYN YAP
THE Straits Trading Company (STC) is taking over a private developer and its cluster bungalow project at Chancery Lane.
It said on Monday that it would pay an aggregate of some $13.9 million for the proposed acquisition of Tertius Development Pte Ltd, including the assignment of specified shareholders' loans. The vendors are two individuals.
With the deal, STC will gain control of Chancery Five, a project with 12 freehold strata bungalows at 5 Chancery Lane. The development is next to Anglo-Chinese School (Primary) and Anglo-Chinese School (Barker Road).
Each bungalow will have five rooms, an entertainment room, an attic, a private basement car park, a private swimming pool and a lift spread across two levels. The homes will range from 4,800 square feet to 6,500 sq ft in size.
Tertius' commitment to the project - including land cost, development cost and incidental selling costs - up to 2012 is estimated by the purchaser at about $58.24 million.
Eric Teng, chief executive of STC's property arm, told BT that his unit has been looking out for opportunities in the property market. He has not set a date for the launch of Chancery Five. The project is under construction and could obtain temporary occupation permit in April next year.
According to caveats lodged with the Urban Redevelopment Authority, a detached house at Chancery Lane changed hands at $900 per sq ft in November last year.
STC's acquisition is expected to be completed in April. The company does not foresee the purchase having a significant impact on its financial position for the year ending Dec 31, 2010.
STC shares rose five cents yesterday to close at $4.15.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
STC takes over Chancery Five project
Development will have 12 freehold strata bungalows
By EMILYN YAP
THE Straits Trading Company (STC) is taking over a private developer and its cluster bungalow project at Chancery Lane.
It said on Monday that it would pay an aggregate of some $13.9 million for the proposed acquisition of Tertius Development Pte Ltd, including the assignment of specified shareholders' loans. The vendors are two individuals.
With the deal, STC will gain control of Chancery Five, a project with 12 freehold strata bungalows at 5 Chancery Lane. The development is next to Anglo-Chinese School (Primary) and Anglo-Chinese School (Barker Road).
Each bungalow will have five rooms, an entertainment room, an attic, a private basement car park, a private swimming pool and a lift spread across two levels. The homes will range from 4,800 square feet to 6,500 sq ft in size.
Tertius' commitment to the project - including land cost, development cost and incidental selling costs - up to 2012 is estimated by the purchaser at about $58.24 million.
Eric Teng, chief executive of STC's property arm, told BT that his unit has been looking out for opportunities in the property market. He has not set a date for the launch of Chancery Five. The project is under construction and could obtain temporary occupation permit in April next year.
According to caveats lodged with the Urban Redevelopment Authority, a detached house at Chancery Lane changed hands at $900 per sq ft in November last year.
STC's acquisition is expected to be completed in April. The company does not foresee the purchase having a significant impact on its financial position for the year ending Dec 31, 2010.
STC shares rose five cents yesterday to close at $4.15.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TODAY Online : HDB flats still affordable?
HDB flats still affordable?
MPs fear Singaporeans priced out by foreigners, private property owners
05:55 AM Mar 03, 2010
by Leong Wee Keat
SINGAPORE - They were free to discuss any point raised in the Budget 2010 speech - and yesterday, several parliamentarians chose to reiterate the concerns Singaporeans have over the affordability of housing board flats.
While Finance Minister Tharman Shanmugaratnam in his Feb 22 speech had touched on a new tax regime to buffer flat owners, whose flat values are rising, from a growing property tax bill, MPs broached a more direct fear: Would residents be priced out of public housing, whether by foreigners or private property owners?
By admitting too many immigrants too quickly into the country, Mr Inderjit Singh (Ang Mo Kio GRC) said Singaporeans must now compete for resources, which drives up the cost of living: "The clearest manifestation of this is the cost of HDB flats."
Dr Ahmad Magad (Pasir Ris-Punggol GRC) said going by anecdotal evidence, there were private property owners who owned resale HDB flats, but instead of staying in them, as the rules require, were renting them out. "While the numbers may now be quite small, I fear they will swell if no new measures are introduced."
He is asking the Government to review its policy of allowing the sale of HDB flats after a year if they are purchased with a bank loan and the rental of HDB flats after a three-year occupation period.
"Harsh action should be taken against those who rent out their flats illegally," he added.
MP Sin Boon Ann (Tampines GRC) called for a review of the $8,000 household income ceiling for buyers of new flats.
"Not everyone whose combined income exceeds the household limit can afford private housing, (nor will they) necessarily have the ability to stump out cash for the cash portion if they bought an HDB flat from the secondary market," he said.
And with the perception that property prices are rising, many feel owning "a decent home" is even further out of reach, he said.
Meanwhile, MP Liang Eng Hwa (Holland-Bukit Timah GRC) hoped the Government would pre-empt another emergence of en bloc fever, which he said could distort the property market and cause short-term volatility.
"Besides, en bloc sales, if too widespread, can be harmful for the environment and waste much of our precious resources," he added.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
MPs fear Singaporeans priced out by foreigners, private property owners
05:55 AM Mar 03, 2010
by Leong Wee Keat
SINGAPORE - They were free to discuss any point raised in the Budget 2010 speech - and yesterday, several parliamentarians chose to reiterate the concerns Singaporeans have over the affordability of housing board flats.
While Finance Minister Tharman Shanmugaratnam in his Feb 22 speech had touched on a new tax regime to buffer flat owners, whose flat values are rising, from a growing property tax bill, MPs broached a more direct fear: Would residents be priced out of public housing, whether by foreigners or private property owners?
By admitting too many immigrants too quickly into the country, Mr Inderjit Singh (Ang Mo Kio GRC) said Singaporeans must now compete for resources, which drives up the cost of living: "The clearest manifestation of this is the cost of HDB flats."
Dr Ahmad Magad (Pasir Ris-Punggol GRC) said going by anecdotal evidence, there were private property owners who owned resale HDB flats, but instead of staying in them, as the rules require, were renting them out. "While the numbers may now be quite small, I fear they will swell if no new measures are introduced."
He is asking the Government to review its policy of allowing the sale of HDB flats after a year if they are purchased with a bank loan and the rental of HDB flats after a three-year occupation period.
"Harsh action should be taken against those who rent out their flats illegally," he added.
MP Sin Boon Ann (Tampines GRC) called for a review of the $8,000 household income ceiling for buyers of new flats.
"Not everyone whose combined income exceeds the household limit can afford private housing, (nor will they) necessarily have the ability to stump out cash for the cash portion if they bought an HDB flat from the secondary market," he said.
And with the perception that property prices are rising, many feel owning "a decent home" is even further out of reach, he said.
Meanwhile, MP Liang Eng Hwa (Holland-Bukit Timah GRC) hoped the Government would pre-empt another emergence of en bloc fever, which he said could distort the property market and cause short-term volatility.
"Besides, en bloc sales, if too widespread, can be harmful for the environment and waste much of our precious resources," he added.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Wednesday, March 3, 2010
ST Forum : Collective wish can't be ignored
Mar 3, 2010
EN BLOC SALES
Collective wish can't be ignored
WHILE I empathise with owners of apartments who do not want to sell but are forced to by the majority, any change in the law needs to take into account the following:
Before buying a unit in a private condominium, a buyer should acquaint himself with the prevailing laws on collective sales. If a buyer is not keen to be subject to a collective sale later, there is the HDB option, as well as landed property.
Many landed properties are cheaper than a condo, although the location may be farther from town.
One must abide by the principles of communal living and ownership if one decides to live in a condo. There is personal choice involved, and we need to consider the collective desires of a group of people.
As much as one could argue that one is entitled to peace of mind, it is also the right of others to buy with a ready willingness to move, or sell, if that makes financial sense for them.
The 80 per cent consent level required for developments at least 10 years old gives due consideration to the majority of owners. While one may argue for a higher percentage, others could equally argue for a lower percentage.
Owning 50 per cent of shares is the benchmark for a majority in a private company. Granted, majority voting power in a company and having a say about one's home do not carry equal weight in the scheme of life. But that is why an 80 per cent majority is required for a collective sale after factoring in a reluctant home owner's rights.
Kevin Kwek
EN BLOC SALES
Collective wish can't be ignored
WHILE I empathise with owners of apartments who do not want to sell but are forced to by the majority, any change in the law needs to take into account the following:
Before buying a unit in a private condominium, a buyer should acquaint himself with the prevailing laws on collective sales. If a buyer is not keen to be subject to a collective sale later, there is the HDB option, as well as landed property.
Many landed properties are cheaper than a condo, although the location may be farther from town.
One must abide by the principles of communal living and ownership if one decides to live in a condo. There is personal choice involved, and we need to consider the collective desires of a group of people.
As much as one could argue that one is entitled to peace of mind, it is also the right of others to buy with a ready willingness to move, or sell, if that makes financial sense for them.
The 80 per cent consent level required for developments at least 10 years old gives due consideration to the majority of owners. While one may argue for a higher percentage, others could equally argue for a lower percentage.
Owning 50 per cent of shares is the benchmark for a majority in a private company. Granted, majority voting power in a company and having a say about one's home do not carry equal weight in the scheme of life. But that is why an 80 per cent majority is required for a collective sale after factoring in a reluctant home owner's rights.
Kevin Kwek
BT : Big boys go looking for swank, new offices
Business Times - 03 Mar 2010
Big boys go looking for swank, new offices
IDA said to have leased 160,000 sq ft; rents may inch up as banks expand in prime areas
By KALPANA RASHIWALA
(SINGAPORE) The upswing in office leasing deals that started around July last year shows no signs of letting up. The healthy demand has persuaded some property consultants that rents for the best quality space in Singapore's financial district could be close to their bottom and poised to perk up.
The Infocomm Development Authority (IDA) is understood to have inked a lease for about 160,000 square feet at Mapletree Business City on Pasir Panjang Road.
This is said to be spread over six floors in the 18-storey office tower of the development, which is expected to receive Temporary Occupation Permit (TOP) soon. With IDA secured as a tenant, the tower's 436,300 sq ft net lettable space is now fully leased, BT understands. The project is near Labrador Park MRT Station, which opens next year.
IDA is expected to move out of Suntec City, where its lease is said to be expiring next year.
Barclays Capital, which has leased 100,000 sq ft at Marina Bay Financial Centre's Tower 2, is said to be close to inking a deal for another 250,000 sq ft in the same tower, which is expected to receive TOP next quarter. The bank is expected to exit from Atrium @ Orchard.
Barclays also occupies about 100,000 sq ft at One Raffles Quay's South Tower and its retail bank has a technology centre at Eightrium @ Changi Business Park. The bank's headcount in Singapore has increased from just several hundred people in 2004 to over 3,500 currently. Of these, about 2,000 are employed at Barclays Capital Global Support Hub.
As new office projects are rolled out, big tenants such as banks are being offered more choices. For instance, ANZ, which is currently at OUB Centre at 1 Raffles Place, is said to be deciding whether to move to the new tower being built in the same development, or to Ocean Financial Centre along Collyer Quay.
The latter, a 43-storey development under construction that will have about 850,000 sq ft net lettable area, is also said to have attracted some tenants from Ocean Towers next door. These include Ifast, Verizon Communications and DMG & Partners Securities.
Other tenants at Ocean Financial Centre are said to include Stamford Law Corporation, which is currently in Republic Plaza, and serviced office operator The Executive Centre.
Colliers International executive director Calvin Yeo said: 'We are starting to see our clients, who are MNCs including financial institutions, planning for expansion as their existing leases approach expiry.'
While some of the initial buzz in the office leasing market was a game of musical chairs involving relocating from older buildings to newer properties, the market is now starting to move beyond replacement demand to actual expansion or new demand, say market watchers.
'We're seeing quite a few law firms from Europe coming to Singapore as well as existing law firms in Singapore expanding,' says Jones Lang LaSalle regional director and head of markets Chris Archibold.
'Insurance companies are starting to look at headcount growth of about 5 per cent this year followed by a further 5-10 per cent per annum for the next few years. Banks are boosting their headcount, not just for private banking but across the board. We're seeing a number of them bringing high-end back-office support functions again to Singapore,' he added.
Mr Archibold reckons that for international standard prime Grade A offices in the Raffles Place and Marina Bay area, rents will probably bottom out at their current levels of about $8 psf a month for smaller occupiers and $7 psf for bigger occupiers. These levels are about 58 per cent below the Q3 2008 peak figures. 'However, rents for A- and B+ grade offices may still decline a few per cent from current levels though the drop should end by Q4 2010.'
Another office property consultant also said that office landlords are more confident and not prepared to discount rents any further. 'But older buildings may relatively underperform and that means rentals in even good-quality buildings may not rebound quickly until space availability in new developments tightens,' he added.
Others are more optimistic. UBS has predicted a 30 per cent jump in the average monthly Grade A office rental value from $8.10 psf at the end of last year to $10.60 psf at end-2010, citing growth in demand. The impact of new office completions is not likely to be as grave as feared earlier since some one million sq ft of existing office stock is expected to be removed in 2010-2011 for conversion to residential use.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Big boys go looking for swank, new offices
IDA said to have leased 160,000 sq ft; rents may inch up as banks expand in prime areas
By KALPANA RASHIWALA
(SINGAPORE) The upswing in office leasing deals that started around July last year shows no signs of letting up. The healthy demand has persuaded some property consultants that rents for the best quality space in Singapore's financial district could be close to their bottom and poised to perk up.
The Infocomm Development Authority (IDA) is understood to have inked a lease for about 160,000 square feet at Mapletree Business City on Pasir Panjang Road.
This is said to be spread over six floors in the 18-storey office tower of the development, which is expected to receive Temporary Occupation Permit (TOP) soon. With IDA secured as a tenant, the tower's 436,300 sq ft net lettable space is now fully leased, BT understands. The project is near Labrador Park MRT Station, which opens next year.
IDA is expected to move out of Suntec City, where its lease is said to be expiring next year.
Barclays Capital, which has leased 100,000 sq ft at Marina Bay Financial Centre's Tower 2, is said to be close to inking a deal for another 250,000 sq ft in the same tower, which is expected to receive TOP next quarter. The bank is expected to exit from Atrium @ Orchard.
Barclays also occupies about 100,000 sq ft at One Raffles Quay's South Tower and its retail bank has a technology centre at Eightrium @ Changi Business Park. The bank's headcount in Singapore has increased from just several hundred people in 2004 to over 3,500 currently. Of these, about 2,000 are employed at Barclays Capital Global Support Hub.
As new office projects are rolled out, big tenants such as banks are being offered more choices. For instance, ANZ, which is currently at OUB Centre at 1 Raffles Place, is said to be deciding whether to move to the new tower being built in the same development, or to Ocean Financial Centre along Collyer Quay.
The latter, a 43-storey development under construction that will have about 850,000 sq ft net lettable area, is also said to have attracted some tenants from Ocean Towers next door. These include Ifast, Verizon Communications and DMG & Partners Securities.
Other tenants at Ocean Financial Centre are said to include Stamford Law Corporation, which is currently in Republic Plaza, and serviced office operator The Executive Centre.
Colliers International executive director Calvin Yeo said: 'We are starting to see our clients, who are MNCs including financial institutions, planning for expansion as their existing leases approach expiry.'
While some of the initial buzz in the office leasing market was a game of musical chairs involving relocating from older buildings to newer properties, the market is now starting to move beyond replacement demand to actual expansion or new demand, say market watchers.
'We're seeing quite a few law firms from Europe coming to Singapore as well as existing law firms in Singapore expanding,' says Jones Lang LaSalle regional director and head of markets Chris Archibold.
'Insurance companies are starting to look at headcount growth of about 5 per cent this year followed by a further 5-10 per cent per annum for the next few years. Banks are boosting their headcount, not just for private banking but across the board. We're seeing a number of them bringing high-end back-office support functions again to Singapore,' he added.
Mr Archibold reckons that for international standard prime Grade A offices in the Raffles Place and Marina Bay area, rents will probably bottom out at their current levels of about $8 psf a month for smaller occupiers and $7 psf for bigger occupiers. These levels are about 58 per cent below the Q3 2008 peak figures. 'However, rents for A- and B+ grade offices may still decline a few per cent from current levels though the drop should end by Q4 2010.'
Another office property consultant also said that office landlords are more confident and not prepared to discount rents any further. 'But older buildings may relatively underperform and that means rentals in even good-quality buildings may not rebound quickly until space availability in new developments tightens,' he added.
Others are more optimistic. UBS has predicted a 30 per cent jump in the average monthly Grade A office rental value from $8.10 psf at the end of last year to $10.60 psf at end-2010, citing growth in demand. The impact of new office completions is not likely to be as grave as feared earlier since some one million sq ft of existing office stock is expected to be removed in 2010-2011 for conversion to residential use.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TODAY Online : Man has no case to stop en-bloc sale
Man has no case to stop en-bloc sale
05:55 AM Mar 03, 2010
by Zul Othman
SINGAPORE - As the lone objector to an en bloc sale, he defied his neighbours and the Strata Titles Board and made a bid to stop the sale of the property in Koon Seng Road.
But his suit was thrown out by the Court of Appeal yesterday - because Singapore's highest court questioned Mr Goh Teh Lee's legal right to object to the sale as he was only a co-owner of the apartment.
Despite Mr Goh's insistence that he had a "very strong case", Justice Chao Hick Tin said he was "very doubtful" of Mr Goh's argument after considering the evidence.
Therefore, the court ruled that the 53-year-old had no locus standi or standing to carry the suit forward.
While he was not ordered to pay any costs, Mr Goh will have to fork out $3,000 to cover the en bloc sales committee's expenses.
According to court documents, Mr Goh said there were discrepancies in the collective sale agreement, such as signatures that were obtained fraudulently.
Mr Goh believed his status as co-owner could stop the sale if his appeal succeeded. However, Justice Andrew Phang thought otherwise, and said: "Between you and your ex-wife, you have to act unanimously ... besides, your ex-wife's rights also have to prevail. She is just like you - a joint owner."
Mr Goh and his ex-wife, Madam Sng Siok Ching, bought the apartment in 1997 for $610,000, court documents revealed. The couple divorced sometime last year.
Earlier, Mr Goh had told the court that even though they were co-owners, he owned 60 per cent of the property. Mdm Sng also did not make any monetary contribution to the apartment, he argued.
MediaCorp understands that the couple were offered $642,424.24 for the apartment but Mr Goh objected to the sale while Mdm Sng gave her consent.
Previously, Mr Goh had told the High Court it was unfair for the purchase price of $21.12 million to be divided equally among the 33 units.
But in his submissions, lawyer Leong Kwok Yan - who is representing the sales committee - argued that the collective sale scheme was based on the use of notional shares that were apportioned to the apartments. Hence, no distinction was made between the co-owners of each flat and if there were more than one co-owner to a flat, all must agree.
"To allow Mr Goh to object would be to disregard the interests of Mdm Sng altogether," wrote the lawyer.
The collective sale of the houses and apartments was mooted at a residents' meeting in November 2006.
The property consists of 24 apartments in a four-storey block - known as Koon Seng House - and 9 pre-war terrace houses on the same plot of freehold land. En-bloc proceedings have been delayed for three years following Mr Goh's legal action against the en-bloc sales committee.
When contacted by MediaCorp later, Mr Goh said he respected the court's decision but declined to comment further. He added that he would abide by the court's ruling and sell his apartment.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Mar 03, 2010
by Zul Othman
SINGAPORE - As the lone objector to an en bloc sale, he defied his neighbours and the Strata Titles Board and made a bid to stop the sale of the property in Koon Seng Road.
But his suit was thrown out by the Court of Appeal yesterday - because Singapore's highest court questioned Mr Goh Teh Lee's legal right to object to the sale as he was only a co-owner of the apartment.
Despite Mr Goh's insistence that he had a "very strong case", Justice Chao Hick Tin said he was "very doubtful" of Mr Goh's argument after considering the evidence.
Therefore, the court ruled that the 53-year-old had no locus standi or standing to carry the suit forward.
While he was not ordered to pay any costs, Mr Goh will have to fork out $3,000 to cover the en bloc sales committee's expenses.
According to court documents, Mr Goh said there were discrepancies in the collective sale agreement, such as signatures that were obtained fraudulently.
Mr Goh believed his status as co-owner could stop the sale if his appeal succeeded. However, Justice Andrew Phang thought otherwise, and said: "Between you and your ex-wife, you have to act unanimously ... besides, your ex-wife's rights also have to prevail. She is just like you - a joint owner."
Mr Goh and his ex-wife, Madam Sng Siok Ching, bought the apartment in 1997 for $610,000, court documents revealed. The couple divorced sometime last year.
Earlier, Mr Goh had told the court that even though they were co-owners, he owned 60 per cent of the property. Mdm Sng also did not make any monetary contribution to the apartment, he argued.
MediaCorp understands that the couple were offered $642,424.24 for the apartment but Mr Goh objected to the sale while Mdm Sng gave her consent.
Previously, Mr Goh had told the High Court it was unfair for the purchase price of $21.12 million to be divided equally among the 33 units.
But in his submissions, lawyer Leong Kwok Yan - who is representing the sales committee - argued that the collective sale scheme was based on the use of notional shares that were apportioned to the apartments. Hence, no distinction was made between the co-owners of each flat and if there were more than one co-owner to a flat, all must agree.
"To allow Mr Goh to object would be to disregard the interests of Mdm Sng altogether," wrote the lawyer.
The collective sale of the houses and apartments was mooted at a residents' meeting in November 2006.
The property consists of 24 apartments in a four-storey block - known as Koon Seng House - and 9 pre-war terrace houses on the same plot of freehold land. En-bloc proceedings have been delayed for three years following Mr Goh's legal action against the en-bloc sales committee.
When contacted by MediaCorp later, Mr Goh said he respected the court's decision but declined to comment further. He added that he would abide by the court's ruling and sell his apartment.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
CNA : Straits Trading Company to develop 12 bungalows at Chancery Lane
Straits Trading Company to develop 12 bungalows at Chancery Lane
By Jo-Ann Huang, Channel NewsAsia | Posted: 02 March 2010 2308 hrs
SINGAPORE : The property unit of Straits Trading Company will be developing a cluster of freehold bungalows at the prime Chancery Lane area as the mainboard-listed company is acquiring the original developer, Tertius Development.
The project, called Chancery Five, will have 12 bungalow units and sits on a land plot of 27,600 square feet. The size of the bungalows will range between 4,800 square feet to 6,500 square feet each.
Each of the two-storey bungalows will have five rooms, an entertainment room, an attic, a private basement car park, a swimming pool and a lift.
Eric Teng, chief executive officer of Straits Trading, said the Chancery Five project is in line with its overall strategy of developing properties that are both exceptional and of high quality.
While the company did not disclose the value of the development, property analysts estimate it to be worth about S$58 million.
Based on the project's estimated worth, Cushman & Wakefield's regional managing director Donald Han said that the bungalows would be priced at slightly less than S$1,000 per square feet (psf).
This means each unit would be priced at about S$4.8 million, which he said is "a fair price for a bungalow on Chancery Lane".
Mr Han added that its close proximity to top schools such as the Anglo-Chinese and Singapore Chinese Girl's schools, as well as to Orchard Road, makes it a hit with families and sub-letters.
Meanwhile, Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic, said that based on similar properties in the vicinity, Chancery Five should fetch about S$500 to
S$600 psf.
"With the largest unit at about 6,500 square feet, I have a feeling that they will price it above S$4 million per unit," said Mr Mak.
"Landed property will always have a place with investors. It has the highest price increase in 2009 compared to other types of properties," said Mr Han. - CNA/ms
By Jo-Ann Huang, Channel NewsAsia | Posted: 02 March 2010 2308 hrs
SINGAPORE : The property unit of Straits Trading Company will be developing a cluster of freehold bungalows at the prime Chancery Lane area as the mainboard-listed company is acquiring the original developer, Tertius Development.
The project, called Chancery Five, will have 12 bungalow units and sits on a land plot of 27,600 square feet. The size of the bungalows will range between 4,800 square feet to 6,500 square feet each.
Each of the two-storey bungalows will have five rooms, an entertainment room, an attic, a private basement car park, a swimming pool and a lift.
Eric Teng, chief executive officer of Straits Trading, said the Chancery Five project is in line with its overall strategy of developing properties that are both exceptional and of high quality.
While the company did not disclose the value of the development, property analysts estimate it to be worth about S$58 million.
Based on the project's estimated worth, Cushman & Wakefield's regional managing director Donald Han said that the bungalows would be priced at slightly less than S$1,000 per square feet (psf).
This means each unit would be priced at about S$4.8 million, which he said is "a fair price for a bungalow on Chancery Lane".
Mr Han added that its close proximity to top schools such as the Anglo-Chinese and Singapore Chinese Girl's schools, as well as to Orchard Road, makes it a hit with families and sub-letters.
Meanwhile, Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic, said that based on similar properties in the vicinity, Chancery Five should fetch about S$500 to
S$600 psf.
"With the largest unit at about 6,500 square feet, I have a feeling that they will price it above S$4 million per unit," said Mr Mak.
"Landed property will always have a place with investors. It has the highest price increase in 2009 compared to other types of properties," said Mr Han. - CNA/ms
CNA : Court gives go ahead for Koon Seng en bloc sale
Court gives go ahead for Koon Seng en bloc sale
By Zul Othman, TODAY | Posted: 02 March 2010 1347 hrs
SINGAPORE: The Koon Seng en bloc sale, comprising Koon Seng House, a four-storey block of 24 apartments in Joo Chiat and nine pre-war terrace houses on the same plot of freehold land, can now go ahead.
The Court of Three Judges threw out on Tuesday, the appeal of the lone objector to the sale, Goh Teh Lee. It ruled that the 53-year old had no locus standi or standing to carry the suit forward.
Despite Mr Goh's insistence that he had a "very strong case", Justice Chao Hick Tin said he was "very doubtful" of Mr Goh's case after considering the evidence.
Mr Goh, who co-owns an apartment with his ex-wife, had objected to the sale. She, however, had given her agreement.
Mr Goh had also argued that it was unfair for the purchase price of S$21.12 million to be divided equally among the 33 units.
Justice Andrew Phang said: "Between you and your ex-wife you have to act unanimously...besides, your ex-wife's rights also have to prevail. She is just like you - a joint owner."
The collective sale of the houses and apartments was mooted at a residents' meeting in November 2006.
While he was not ordered to pay any costs, Mr Goh will have to fork out S$3,000 to cover the en bloc sales committee's expenses.
If he does not sign the collective order, the Registrar of Supreme Court will sign on his behalf, which will allow the en bloc sale to go ahead.
By Zul Othman, TODAY | Posted: 02 March 2010 1347 hrs
SINGAPORE: The Koon Seng en bloc sale, comprising Koon Seng House, a four-storey block of 24 apartments in Joo Chiat and nine pre-war terrace houses on the same plot of freehold land, can now go ahead.
The Court of Three Judges threw out on Tuesday, the appeal of the lone objector to the sale, Goh Teh Lee. It ruled that the 53-year old had no locus standi or standing to carry the suit forward.
Despite Mr Goh's insistence that he had a "very strong case", Justice Chao Hick Tin said he was "very doubtful" of Mr Goh's case after considering the evidence.
Mr Goh, who co-owns an apartment with his ex-wife, had objected to the sale. She, however, had given her agreement.
Mr Goh had also argued that it was unfair for the purchase price of S$21.12 million to be divided equally among the 33 units.
Justice Andrew Phang said: "Between you and your ex-wife you have to act unanimously...besides, your ex-wife's rights also have to prevail. She is just like you - a joint owner."
The collective sale of the houses and apartments was mooted at a residents' meeting in November 2006.
While he was not ordered to pay any costs, Mr Goh will have to fork out S$3,000 to cover the en bloc sales committee's expenses.
If he does not sign the collective order, the Registrar of Supreme Court will sign on his behalf, which will allow the en bloc sale to go ahead.
CNA : Asian property prices expected to continue to rise despite govt measures
Asian property prices expected to continue to rise despite govt measures
By Chris Howells, Channel NewsAsia | Posted: 02 March 2010 2321 hrs
SINGAPORE : Recent measures to cool the property market in China, Hong Kong and Singapore are seen as the right moves to temper speculation and rapidly rising prices.
Still, industry watchers said that prices will have room to move upwards over the next two years.
This is because interest rates in Hong Kong continue to be low, and high-end property prices in Singapore are still below their peak.
Private home prices in Singapore rose by 24 per cent in the second half of last year, causing the government to step in.
Over in Hong Kong, the government also announced measures to avoid an asset bubble - after property prices rose by some 30 per cent last year.
The Chinese government is also doing its part to cool its red-hot property sector by tightening credit.
Analysts said these moves will limit price growth this year, but overall, they still expect prices to move upwards, even if at a slower pace.
Donald Han, managing director, Cushman & Wakefield, said: "With the introduction of these measures, and the fact that the government is keeping a lookout on the market, they may continue to intervene.
"We would expect the market currently to come down to between 8-15 per cent, depending on what market you are in in Asia Pacific. So it would probably come down by a few percentage points in terms of price increases."
Analysts note that Singapore's high-end residential market remains below 2008 peaks by some 20 per cent.
Meanwhile - they also say, the measures are only aimed at moderating the price increases.
Karamjit Singh, managing director, Credo Real Estate, said: "The measures that were announced by the Singapore government on February 19 do not address the root cause of the problem yet. The root cause of the problem is a short-term supply crunch at the lower end of the market, but it definitely helps mitigate the risk of bubbles being formed in the future."
Experts said the factors set to drive prices higher this year are investors searching for higher yields, continuing hot money inflows and continuing low interest rates causing lower borrowing costs for buyers. - CNA/ms
By Chris Howells, Channel NewsAsia | Posted: 02 March 2010 2321 hrs
SINGAPORE : Recent measures to cool the property market in China, Hong Kong and Singapore are seen as the right moves to temper speculation and rapidly rising prices.
Still, industry watchers said that prices will have room to move upwards over the next two years.
This is because interest rates in Hong Kong continue to be low, and high-end property prices in Singapore are still below their peak.
Private home prices in Singapore rose by 24 per cent in the second half of last year, causing the government to step in.
Over in Hong Kong, the government also announced measures to avoid an asset bubble - after property prices rose by some 30 per cent last year.
The Chinese government is also doing its part to cool its red-hot property sector by tightening credit.
Analysts said these moves will limit price growth this year, but overall, they still expect prices to move upwards, even if at a slower pace.
Donald Han, managing director, Cushman & Wakefield, said: "With the introduction of these measures, and the fact that the government is keeping a lookout on the market, they may continue to intervene.
"We would expect the market currently to come down to between 8-15 per cent, depending on what market you are in in Asia Pacific. So it would probably come down by a few percentage points in terms of price increases."
Analysts note that Singapore's high-end residential market remains below 2008 peaks by some 20 per cent.
Meanwhile - they also say, the measures are only aimed at moderating the price increases.
Karamjit Singh, managing director, Credo Real Estate, said: "The measures that were announced by the Singapore government on February 19 do not address the root cause of the problem yet. The root cause of the problem is a short-term supply crunch at the lower end of the market, but it definitely helps mitigate the risk of bubbles being formed in the future."
Experts said the factors set to drive prices higher this year are investors searching for higher yields, continuing hot money inflows and continuing low interest rates causing lower borrowing costs for buyers. - CNA/ms
ST Forum : Move forward with refreshing sentiment on homes
Mar 2, 2010
Move forward with refreshing sentiment on homes
THANK you for publishing the thought-provoking concerns of Mr Tan Keng Ann last Saturday ('Review law on en bloc sales').
There is a growing band of condominium owners who continue to live in fear of being ousted from our precious chosen homes by property speculators or often-misguided secondary proprietors in a lemming-like pursuit of a perceived windfall profit.
With the refreshing sentiment of regarding a house as a home, I hope there will be concrete action to tighten appropriate legislation and curb collective property sales exercises.
Dennis Butler
Move forward with refreshing sentiment on homes
THANK you for publishing the thought-provoking concerns of Mr Tan Keng Ann last Saturday ('Review law on en bloc sales').
There is a growing band of condominium owners who continue to live in fear of being ousted from our precious chosen homes by property speculators or often-misguided secondary proprietors in a lemming-like pursuit of a perceived windfall profit.
With the refreshing sentiment of regarding a house as a home, I hope there will be concrete action to tighten appropriate legislation and curb collective property sales exercises.
Dennis Butler
ST Forum : Protect reluctant parties in en bloc sales
Mar 2, 2010
Protect reluctant parties in en bloc sales
MR TAN Keng Ann's letter last Saturday ('Review law on en bloc sales') revealed the unfair predicament suffered by a good number of people amid the frenzy of many collective property sale exercises. Instead of leaving them alone to retire in peace and contentment, young speculators callously go out of their way to make home owners like Mr Tan miserable, all to make a quick buck.
I am not involved in any collective sale, but from what I have heard from friends who are, the situation is dire and shameful. Meetings of condo owners to discuss such sales are invariably boisterous. Some turn ugly with owners hurling verbal abuse at one another, with those who refuse to sell on the receiving end. They are also harassed between meetings.
It is clear that those who put pressure on reluctant owners have much to gain if the sale goes through. Some speculators have bought several units earlier in anticipation of a successful sale. It is purely business and their aim (and that of the would-be developers) is to make money. The feelings of people like Mr Tan do not concern them in the least.
Yes, the law must change if we are serious about curbing speculation. It would protect the interest of owners who cherish their homes. Why take away the rights of owners who are not interested in the money and want to stay put? Besides, many of the condos involved are not by any stretch of the imagination obsolete in design, or in a state of disrepair.
Lee Seck Kay
Protect reluctant parties in en bloc sales
MR TAN Keng Ann's letter last Saturday ('Review law on en bloc sales') revealed the unfair predicament suffered by a good number of people amid the frenzy of many collective property sale exercises. Instead of leaving them alone to retire in peace and contentment, young speculators callously go out of their way to make home owners like Mr Tan miserable, all to make a quick buck.
I am not involved in any collective sale, but from what I have heard from friends who are, the situation is dire and shameful. Meetings of condo owners to discuss such sales are invariably boisterous. Some turn ugly with owners hurling verbal abuse at one another, with those who refuse to sell on the receiving end. They are also harassed between meetings.
It is clear that those who put pressure on reluctant owners have much to gain if the sale goes through. Some speculators have bought several units earlier in anticipation of a successful sale. It is purely business and their aim (and that of the would-be developers) is to make money. The feelings of people like Mr Tan do not concern them in the least.
Yes, the law must change if we are serious about curbing speculation. It would protect the interest of owners who cherish their homes. Why take away the rights of owners who are not interested in the money and want to stay put? Besides, many of the condos involved are not by any stretch of the imagination obsolete in design, or in a state of disrepair.
Lee Seck Kay
ST Forum : Help pro-children families get suitable flats
Mar 2, 2010
Help pro-children families get suitable flats
I AM a proud father of three young children, with twins who have just turned 17 months. I live in a three-room HDB flat and find it difficult to house my family, including my father-in-law, in my current unit.
As the sole breadwinner, I hope the Government can help pro-children families like mine obtain suitably larger flats at affordable prices.
Recently, I submitted a petition via my MP to allow me to upgrade to a four-room flat through direct purchase from the HDB of any balance or repossessed flats in my area. I have been unsuccessful in my past three balloting exercises.
The HDB has indicated that I stand a better chance of obtaining a flat through the build-to-order scheme and advised me to look at resale flats. However, current resale market prices are beyond what I can possibly afford.
The Government is right that monetary benefits alone will not increase the birth rate. What is needed is an adjustment of HDB policies to aid pro-children families like mine.
Alvin Sia
Help pro-children families get suitable flats
I AM a proud father of three young children, with twins who have just turned 17 months. I live in a three-room HDB flat and find it difficult to house my family, including my father-in-law, in my current unit.
As the sole breadwinner, I hope the Government can help pro-children families like mine obtain suitably larger flats at affordable prices.
Recently, I submitted a petition via my MP to allow me to upgrade to a four-room flat through direct purchase from the HDB of any balance or repossessed flats in my area. I have been unsuccessful in my past three balloting exercises.
The HDB has indicated that I stand a better chance of obtaining a flat through the build-to-order scheme and advised me to look at resale flats. However, current resale market prices are beyond what I can possibly afford.
The Government is right that monetary benefits alone will not increase the birth rate. What is needed is an adjustment of HDB policies to aid pro-children families like mine.
Alvin Sia
BT : 9% of CBD blocks have over 20,000 sq ft floor plates
Business Times - 02 Mar 2010
9% of CBD blocks have over 20,000 sq ft floor plates
Upgrading quality of stock crucial for S'pore's status as financial hub: JLL
By KALPANA RASHIWALA
(SINGAPORE) As of December last year, only 9 per cent of Singapore's CBD office buildings had floor plates of over 20,000 sq ft, which are favoured by big occupiers, particularly financial institutions.
In Raffles Place and the New Downtown (Singapore's financial district) alone, only 13 per cent of buildings have floor plates in excess of 20,000 sq ft, according to a Jones Lang LaSalle white paper titled Future Proofing Singapore's Office Market.
However, the new supply of offices being built presents a great opportunity to enhance the quality of Singapore's office stock to meet the requirements of financial occupiers, not just in terms of bigger floor plates but also technological specifications, security requirements, catering to lifestyle needs of office workers as well as to address sustainability issues.
The white paper, authored by the property consulting group's regional director and head of markets Chris Archibold, says: 'Singapore's CBD currently only has 3.5 million sq ft of Grade A space with floor plates of at least 18,000 sq ft.
'The upcoming supply will increase this to about 10 million sq ft by 2012 and enhance the quality of office stock offered in the market. This amount of space is needed to house Singapore's financial occupiers,' says the white paper.
Currently financial institutions occupy 83 per cent of international grade A office space in Singapore; hence addressing their requirements is critical if Singapore is to position itself as a major global financial hub.
More than 60 per cent of occupiers in JLL's recent survey viewed floor plates of over 15,000 sq ft at the top of the scale in terms of importance when considering future space. Other key considerations included 24-hour chilled water supply (for air conditioning), dual power source and generator capacity for general use, and security issues.
Unfortunately, much of the island's existing office stock now is not in sync with the needs of modern MNCs, especially those in the financial industry.
JLL said that besides large floor plates, most occupiers are also looking for modern square or rectangular floor plates with raised floors (to facilitate cabling) and the latest technological infrastructure.
But much of the current CBD office stock does not match this need because the bulk of the current office stock was built prior to today's technology.
As of December 2009, 68 per cent of the CBD office buildings were more than 11 years old. In Raffles Place and New Downtown, the proportion of office blocks over 11 years old was 62 per cent.
'This demonstrates that much of the existing CBD office stock suffers from functional obsolescence and needs upgrade works and refurbishments,' JLL said.
The white paper noted that the massive increase in reliance on IT within MNCs, specifically in the financial services industry, over the past 10 years, has left much of the Singapore CBD office stock unable to cope fully with the needs of these occupiers.
'Major banks and trading houses are looking for functional buildings with infrastructure that supports business growth and reduces occupational costs.'
These include telecoms infrastructure, multiple telecom providers and fibre-optic network options, open and flexible space, back-up power supplies, a high floor-load capacity, a high floor-to-ceiling height, raised floors as well as large, regular-shaped floor plates.
The shape, size and layout of a building's floor plates will affect efficiencies. For instance, a regular (square or rectangle) shaped floor, especially if it is built with modern system furniture, will minimise space wastage.
A building with bigger column-free floor plates similarly allows for higher occupational density and minimises circulation areas like corridors.
Besides physical considerations, occupiers also weigh a building's technical specs in evaluating their choice of premises.
Buildings designed with the occupier in mind substantially reduce upfront fitting-out capital expenditure costs and reinstatement costs at the end of the lease by providing infrastructure such as water supply to each floor (for internal pantries or extra washrooms) and knock-out panels for internal staircases.
JLL also highlighted that with the growing focus on corporate social responsibility, occupiers that are currently considering new premises are looking for environment-friendly buildings to minimise their carbon footprint.
'Most of the older buildings are very expensive to retrofit with environmentally friendly or sustainable building systems and infrastructure.
'Meanwhile many new developments are now focusing on attaining either the Singapore Building & Construction Authority (BCA) Green Mark or the US Leed - with some even getting both.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
9% of CBD blocks have over 20,000 sq ft floor plates
Upgrading quality of stock crucial for S'pore's status as financial hub: JLL
By KALPANA RASHIWALA
(SINGAPORE) As of December last year, only 9 per cent of Singapore's CBD office buildings had floor plates of over 20,000 sq ft, which are favoured by big occupiers, particularly financial institutions.
In Raffles Place and the New Downtown (Singapore's financial district) alone, only 13 per cent of buildings have floor plates in excess of 20,000 sq ft, according to a Jones Lang LaSalle white paper titled Future Proofing Singapore's Office Market.
However, the new supply of offices being built presents a great opportunity to enhance the quality of Singapore's office stock to meet the requirements of financial occupiers, not just in terms of bigger floor plates but also technological specifications, security requirements, catering to lifestyle needs of office workers as well as to address sustainability issues.
The white paper, authored by the property consulting group's regional director and head of markets Chris Archibold, says: 'Singapore's CBD currently only has 3.5 million sq ft of Grade A space with floor plates of at least 18,000 sq ft.
'The upcoming supply will increase this to about 10 million sq ft by 2012 and enhance the quality of office stock offered in the market. This amount of space is needed to house Singapore's financial occupiers,' says the white paper.
Currently financial institutions occupy 83 per cent of international grade A office space in Singapore; hence addressing their requirements is critical if Singapore is to position itself as a major global financial hub.
More than 60 per cent of occupiers in JLL's recent survey viewed floor plates of over 15,000 sq ft at the top of the scale in terms of importance when considering future space. Other key considerations included 24-hour chilled water supply (for air conditioning), dual power source and generator capacity for general use, and security issues.
Unfortunately, much of the island's existing office stock now is not in sync with the needs of modern MNCs, especially those in the financial industry.
JLL said that besides large floor plates, most occupiers are also looking for modern square or rectangular floor plates with raised floors (to facilitate cabling) and the latest technological infrastructure.
But much of the current CBD office stock does not match this need because the bulk of the current office stock was built prior to today's technology.
As of December 2009, 68 per cent of the CBD office buildings were more than 11 years old. In Raffles Place and New Downtown, the proportion of office blocks over 11 years old was 62 per cent.
'This demonstrates that much of the existing CBD office stock suffers from functional obsolescence and needs upgrade works and refurbishments,' JLL said.
The white paper noted that the massive increase in reliance on IT within MNCs, specifically in the financial services industry, over the past 10 years, has left much of the Singapore CBD office stock unable to cope fully with the needs of these occupiers.
'Major banks and trading houses are looking for functional buildings with infrastructure that supports business growth and reduces occupational costs.'
These include telecoms infrastructure, multiple telecom providers and fibre-optic network options, open and flexible space, back-up power supplies, a high floor-load capacity, a high floor-to-ceiling height, raised floors as well as large, regular-shaped floor plates.
The shape, size and layout of a building's floor plates will affect efficiencies. For instance, a regular (square or rectangle) shaped floor, especially if it is built with modern system furniture, will minimise space wastage.
A building with bigger column-free floor plates similarly allows for higher occupational density and minimises circulation areas like corridors.
Besides physical considerations, occupiers also weigh a building's technical specs in evaluating their choice of premises.
Buildings designed with the occupier in mind substantially reduce upfront fitting-out capital expenditure costs and reinstatement costs at the end of the lease by providing infrastructure such as water supply to each floor (for internal pantries or extra washrooms) and knock-out panels for internal staircases.
JLL also highlighted that with the growing focus on corporate social responsibility, occupiers that are currently considering new premises are looking for environment-friendly buildings to minimise their carbon footprint.
'Most of the older buildings are very expensive to retrofit with environmentally friendly or sustainable building systems and infrastructure.
'Meanwhile many new developments are now focusing on attaining either the Singapore Building & Construction Authority (BCA) Green Mark or the US Leed - with some even getting both.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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