Apr 4, 2010
property
Watch out for rising interest rates
Some homes seem affordable because of low interest rates now but this won't always be the case
By Joyce Teo
Mass market home prices have surpassed the previous 2008 peak.
But because home loan interest rates remain at an all-time low, these homes are still seen as affordable, property consultancy DTZ said.
Its head of South-east Asia research, Ms Chua Chor Hoon, said its mass market affordability index shows that such homes at the end of the first quarter of this year were more affordable, compared with the period between the first quarter of 2006 and the third quarter of 2008.
But this does not mean that home buyers in this segment - which includes public flat owners upgrading to private property - will continue to find such homes affordable for long, if prices or interest rates move up.
It is only a matter of time before the low interest rates head north, said DTZ.
The questions are when that will happen and how much the rise will be, said Mr Alvin Liew, an economist with Standard Chartered Bank.
He said that the three-month Singapore Interbank Offered Rate - now at 0.65 per cent - is expected to be 'very benign in 2010'.
Many home loans are pegged to Sibor, which is the rate at which banks lend to one another.
'We see rates picking up slightly by 5 to 10 basis points from the first half of 2011, in anticipation of the United States Federal Reserve hiking its rates,' he said.
'By the tail-end of 2011, it could rise to 0.8 per cent. The year 2012 is when we expect to see a rapid hike.'
The three-month Sibor rate will likely rise to 3 per cent that year, Mr Liew said.
Ms Chua said mass market housing could become generally less affordable if the interest rate rises by one percentage point with no change in prices.
This will be the case too if prices rise by 5 per cent with a 0.5 percentage point increase in interest rates, or if prices rise by more than 10 per cent this year, she said.
For the first quarter of this year, the Urban Redevelopment Authority's flash estimate showed that private home prices have continued their climb, moving up 5.1 per cent, compared with 7.4 per cent in the previous quarter.
Ms Chua advised potential buyers to look beyond the current interest rates to assess their ability to repay the monthly mortgage payments over the next 20 to 30 years, as interest rates will go up.
'Buyers also have to be cautious as there's still a lot of economic uncertainty now, unlike in 2005 and 2006, when the outlook was very clear.
'If the recovery is not as strong as expected, any anticipated capital appreciation may not materialise,' she added.
Mr Justin Chiu, executive director of Hong Kong's Cheung Kong (Holdings), told The Sunday Times that interest rates are one key risk factor here.
'If the rates rise, they may rise very quickly,' he said.
He was in town for the launch of his company's well-received West Coast project, The Vision.
Buyers should make sure they can still afford to pay their loans even if interest rates go up to 3 per cent to 4 per cent, he said. If not, they could be overstretched.
joyceteo@sph.com.sg
Wednesday, April 7, 2010
ST : URA: From slums to soaring skyline
Apr 3, 2010
URA: From slums to soaring skyline
By Lee Siew Hua
THE Urban Redevelopment Authority (URA) once presided over dreary carparks and was chastised by some for tearing down buildings at a clip in Singapore's rush to urbanise. Now, it sells urban concepts around the world.
· EARLY DEVELOPMENTAL CHALLENGE: Physically transform Singapore to support the nation's rapid economic rise and social changes, and optimise scarce land.
· THEN: The city had slums and squatters when the URA was set up in 1974 to rejuvenate the central area. In the booming 1970s, development also looked rather haphazard.
The URA waded in, juggling multiple roles as master planner, resettlement agency, developer and landlord.
'Towards A Better City' was its mantra, so it swiftly improved infrastructure, sometimes bulldozing heritage buildings like the oldest school, Raffles Institution, built in 1837. Raffles City now stands on that site.
The URA also started to remake the Central Business District to support Singapore's early ambition to rise as a global financial centre.
· NOW: URA's outlook is far more global and it is a major player in Singapore's constant reinvention of itself to compete with global cities for talent and investments.
It markets Marina Bay to a global audience - at real estate trade shows and conferences in Cannes and Dubai, for example - and has attracted investors for its new financial hub. It also flags development possibilities in Jurong Lake District and Kallang Riverside to investors.
Now that it is an international brand name, countries as far afield as Russia and Nigeria have come calling in the last three years. The agency also leads master planning of the Tianjin eco-city, a major green initiative in China.
Last year, the URA International Group was launched to provide planning consultancy and training to cities around the world.
The renewed mission of the URA is to make Singapore a great city to live, work and play in.
· CURRENT TO-DO LIST: It now seeks to make the country an 'endearing home' for Singaporeans and global talent.
To achieve this, it hopes to create more diverse lifestyle offerings in arts and culture, retail, sports, the culinary scene and events - while maintaining an 'authentic' style. The island will become lusher with more parks and skyrise greenery.
It is putting the finishing touches to the Marina Bay Promenade this year and the Gardens by the Bay after that.
It will work on what it calls the 'heartware' of the city, starting with Marina Bay where it partners stakeholders, like the Esplanade - Theatres on the Bay, to draw crowds. It wants festivals, sporting events and buzz, as much for economic reasons as to ensure that people bond with the place.
Next in line will be the Singapore River, Orchard Road and the Bras Basah/Bugis/Civic District area.
One challenge is to keep supporting Singapore's growth in a way that is socially and environmentally friendly.
· URA CHIEF EXECUTIVE CHEONG KOON HEAN SAYS: 'Singapore has grown from a small trading port to a distinctive global city with a high quality of living.
'URA has contributed to this transformation by being responsive to dynamic global changes, international competition and the increasing expectations and aspirations of Singaporeans.'
siewhua@sph.com.sg
In a span of 40 years, Clarke Quay has been transformed from a place where bumboats jostled for space (second picture) into a vibrant nightspot (above) complete with trendy cafes, restaurants and bars. -- PHOTOS: URBAN REDEVELOPMENT AUTHORITY
URA: From slums to soaring skyline
By Lee Siew Hua
THE Urban Redevelopment Authority (URA) once presided over dreary carparks and was chastised by some for tearing down buildings at a clip in Singapore's rush to urbanise. Now, it sells urban concepts around the world.
· EARLY DEVELOPMENTAL CHALLENGE: Physically transform Singapore to support the nation's rapid economic rise and social changes, and optimise scarce land.
· THEN: The city had slums and squatters when the URA was set up in 1974 to rejuvenate the central area. In the booming 1970s, development also looked rather haphazard.
The URA waded in, juggling multiple roles as master planner, resettlement agency, developer and landlord.
'Towards A Better City' was its mantra, so it swiftly improved infrastructure, sometimes bulldozing heritage buildings like the oldest school, Raffles Institution, built in 1837. Raffles City now stands on that site.
The URA also started to remake the Central Business District to support Singapore's early ambition to rise as a global financial centre.
· NOW: URA's outlook is far more global and it is a major player in Singapore's constant reinvention of itself to compete with global cities for talent and investments.
It markets Marina Bay to a global audience - at real estate trade shows and conferences in Cannes and Dubai, for example - and has attracted investors for its new financial hub. It also flags development possibilities in Jurong Lake District and Kallang Riverside to investors.
Now that it is an international brand name, countries as far afield as Russia and Nigeria have come calling in the last three years. The agency also leads master planning of the Tianjin eco-city, a major green initiative in China.
Last year, the URA International Group was launched to provide planning consultancy and training to cities around the world.
The renewed mission of the URA is to make Singapore a great city to live, work and play in.
· CURRENT TO-DO LIST: It now seeks to make the country an 'endearing home' for Singaporeans and global talent.
To achieve this, it hopes to create more diverse lifestyle offerings in arts and culture, retail, sports, the culinary scene and events - while maintaining an 'authentic' style. The island will become lusher with more parks and skyrise greenery.
It is putting the finishing touches to the Marina Bay Promenade this year and the Gardens by the Bay after that.
It will work on what it calls the 'heartware' of the city, starting with Marina Bay where it partners stakeholders, like the Esplanade - Theatres on the Bay, to draw crowds. It wants festivals, sporting events and buzz, as much for economic reasons as to ensure that people bond with the place.
Next in line will be the Singapore River, Orchard Road and the Bras Basah/Bugis/Civic District area.
One challenge is to keep supporting Singapore's growth in a way that is socially and environmentally friendly.
· URA CHIEF EXECUTIVE CHEONG KOON HEAN SAYS: 'Singapore has grown from a small trading port to a distinctive global city with a high quality of living.
'URA has contributed to this transformation by being responsive to dynamic global changes, international competition and the increasing expectations and aspirations of Singaporeans.'
siewhua@sph.com.sg
In a span of 40 years, Clarke Quay has been transformed from a place where bumboats jostled for space (second picture) into a vibrant nightspot (above) complete with trendy cafes, restaurants and bars. -- PHOTOS: URBAN REDEVELOPMENT AUTHORITY
BT : Public + private = property prices
Business Times - 03 Apr 2010
COMMENTARY
Public + private = property prices
Call for laissez faire approach by govt to property market is disingenuous
By ARTHUR SIM
WITH both public and private property prices continuing to rise in tandem, developer Simon Cheong's call last week for private property prices to remain unfettered by government intervention seems not only contradictory but perhaps also misguided.
Property developers have long had a constructive relationship with the government.
Indeed, the reserve list system of the government land sales (GLS) programme was largely created in consultation with property developers and the Real Estate Developers' Association of Singapore, of which Mr Cheong is currently president.
In 2003, the government even suspended the confirmed list of the GLS - which allowed developers to unload their inventory of unsold housing units without additional competition from new sites.
In H1 2004, with the suspension of the confirmed list still in effect, only 2,755 housing units were potentially available through the reserve list. By H2 2004, this number fell to 2,600 units.
The subsequent limited supply of new developments played a part in the run-up to the property price peak in 2007, and certainly helped developers boost sales and profits.
So to say now that the government should be taking a laissez faire approach to the property market is disingenuous. One cannot welcome government intervention to support property prices in bad times, but call for a hands-off approach when property prices are rocketing.
It is true that the government is intervening to control private property prices in the current boom.
For H1 2010, for instance, it has made available land for up to 10,550 housing units through the GLS with sites on both the confirmed list and the reserve list.
Mr Cheong, in an impassioned speech, suggested that not all Singaporeans are entitled to aspire to private housing. After all, he argued, private property only serves about 16.5 per cent of the population, so why does it need to be 'affordable'?
But the line between the two segments is not so neatly drawn.
For many Singaporeans, including some who live in private property, wealth creation comes from the sale of their public housing flats. So every upgrader who has ever sold a public housing flat for a profit to buy a condominium has had a hand in supporting prices in the private home market. That is why resale public home prices are often seen as the price base for private housing units. And developers have benefited from the aspiration of many Singaporeans to upgrade to private property.
Property consultants DTZ found that in 2009, buyers with public housing addresses accounted for 41 per cent of total buyers, almost double the 22 per cent in 2007 (when higher-end projects were leading the rise in the market).
With private home prices rising, DTZ found that private housing had become less affordable with its housing affordability index rising 13 per cent. This could push up demand and prices for relatively cheaper resale public flats which, in turn, could price other buyers out of that market, with knock-on consequences on demand for new public flats.
The private and public housing sectors are closely interlinked, which is why the government looks at the property market as a whole. Mr Cheong was right only when he said that property prices are a 'sensitive topic'. But for him to suggest that the private property market is 'exclusive' (in all senses of the word) is just off the mark.
simska@sph.com.sg
COMMENTARY
Public + private = property prices
Call for laissez faire approach by govt to property market is disingenuous
By ARTHUR SIM
WITH both public and private property prices continuing to rise in tandem, developer Simon Cheong's call last week for private property prices to remain unfettered by government intervention seems not only contradictory but perhaps also misguided.
Property developers have long had a constructive relationship with the government.
Indeed, the reserve list system of the government land sales (GLS) programme was largely created in consultation with property developers and the Real Estate Developers' Association of Singapore, of which Mr Cheong is currently president.
In 2003, the government even suspended the confirmed list of the GLS - which allowed developers to unload their inventory of unsold housing units without additional competition from new sites.
In H1 2004, with the suspension of the confirmed list still in effect, only 2,755 housing units were potentially available through the reserve list. By H2 2004, this number fell to 2,600 units.
The subsequent limited supply of new developments played a part in the run-up to the property price peak in 2007, and certainly helped developers boost sales and profits.
So to say now that the government should be taking a laissez faire approach to the property market is disingenuous. One cannot welcome government intervention to support property prices in bad times, but call for a hands-off approach when property prices are rocketing.
It is true that the government is intervening to control private property prices in the current boom.
For H1 2010, for instance, it has made available land for up to 10,550 housing units through the GLS with sites on both the confirmed list and the reserve list.
Mr Cheong, in an impassioned speech, suggested that not all Singaporeans are entitled to aspire to private housing. After all, he argued, private property only serves about 16.5 per cent of the population, so why does it need to be 'affordable'?
But the line between the two segments is not so neatly drawn.
For many Singaporeans, including some who live in private property, wealth creation comes from the sale of their public housing flats. So every upgrader who has ever sold a public housing flat for a profit to buy a condominium has had a hand in supporting prices in the private home market. That is why resale public home prices are often seen as the price base for private housing units. And developers have benefited from the aspiration of many Singaporeans to upgrade to private property.
Property consultants DTZ found that in 2009, buyers with public housing addresses accounted for 41 per cent of total buyers, almost double the 22 per cent in 2007 (when higher-end projects were leading the rise in the market).
With private home prices rising, DTZ found that private housing had become less affordable with its housing affordability index rising 13 per cent. This could push up demand and prices for relatively cheaper resale public flats which, in turn, could price other buyers out of that market, with knock-on consequences on demand for new public flats.
The private and public housing sectors are closely interlinked, which is why the government looks at the property market as a whole. Mr Cheong was right only when he said that property prices are a 'sensitive topic'. But for him to suggest that the private property market is 'exclusive' (in all senses of the word) is just off the mark.
simska@sph.com.sg
ST : Capitol Theatre site to go on sale
Apr 2, 2010
Capitol Theatre site to go on sale
$100m bid triggers public tender for 1.43ha plot; historical buildings have to be restored
By Fiona Chan
A NEW lease on life is on the way for the iconic stretch of colonial buildings along Stamford Road.
Stamford House, Capitol Building and Capitol Theatre are part of a huge land parcel that will go on sale in two weeks' time, after a property developer agreed to put in a bid of at least $100 million for the commercial site.
The bid triggered a public tender for the 1.43ha plot, which is located at the key junction of Stamford Road and North Bridge Road, and also includes Capitol Centre, said the Urban Redevelopment Authority (URA) yesterday.
Whichever developer wins the tender can tear down Capitol Centre, a dingy three-storey complex with shops, offices and schools opposite St Andrew's Cathedral, and best known for its Gramophone and TMC Academy tenants. In its place, a new development of up to 10 storeys can be built, said the URA.
But the other three 'historically and architecturally significant buildings' will have to be retained and restored, it said.
Stamford House was built in 1904 in a neo-classical style by Mr Regent Alfred John Bidwell, the architect behind the Raffles Hotel. Capitol Theatre, which housed Singapore's first cinema, was built in 1929, and Capitol Building, previously known as Shaw Building, was built in 1933.
Property consultants said the site will be an exciting one for developers, as it is a prominent plot in a prized location.
An interesting retail, lifestyle and hotel development could be created on the site, said Mr Li Hiaw Ho, the executive director of CBRE Research.
He expects bids to arrive in the range of $220 million to $270 million.
This would work out to $400 to $500 per sq ft (psf) of total floor area.
The land parcel, which was made available in December 2008, could have been triggered for sale now because of an expected upturn in the market for office, retail and hotel space, said Colliers International's director for research and advisory Tay Huey Ying.
Prices for commercial and hotel land are still low because these segments have lagged the recovery in the housing market, but they are now seen to be at a turning point, she said.
Still, consultants expect only a handful of developers to contend for this site because of the many requirements involved.
The winning developer must use Capitol Theatre as an arts or entertainment-related performance venue. It must also build an underground pedestrian walkway, lined with shops and restaurants, to link the site to City Hall MRT Station and possibly CityLink Mall.
A quarter of the land parcel's total gross floor area must also be used for hotel rooms, to add to the existing hotel cluster in the area, said the URA.
'I think the site won't have many bidders, because you need a developer who is experienced in retail and hotel development and who also has the capacity to deal with all the conservation issues,' said DTZ's South-east Asia research head Chua Chor Hoon. 'It won't be just any ordinary developer who can handle this.'
The URA is conducting the tender via a two-envelope system, in which developers submit their design proposals and tender prices in two separate envelopes. The URA will first shortlist the designs they approve of and then choose the one with the highest bid.
Recent sites sold this way include the South Beach and Clifford Pier plots.
Meanwhile, the Housing Board will also put up for sale an executive condominium (EC) site in Sengkang. A developer has submitted an offer of at least $103.8 million for the land, triggering a public tender for the site, the HDB said yesterday.
Bids for the 183,000 sq ft plot, at the junction of Sengkang East Avenue and Buangkok Drive, could come in between $154 million and $181 million, said Mr Nicholas Mak, a real estate lecturer at Ngee Ann Polytechnic. This would work out to $250 to $330 psf of total floor area.
Consultants said the interest in the land parcel is not surprising given the enthusiastic response from developers for two other EC sites released recently, at Compassvale Bow and Yishun Avenue 11.
The finished units could eventually be sold at $600 to $650 psf, they said.
fiochan@sph.com.sg
Capitol Theatre site to go on sale
$100m bid triggers public tender for 1.43ha plot; historical buildings have to be restored
By Fiona Chan
A NEW lease on life is on the way for the iconic stretch of colonial buildings along Stamford Road.
Stamford House, Capitol Building and Capitol Theatre are part of a huge land parcel that will go on sale in two weeks' time, after a property developer agreed to put in a bid of at least $100 million for the commercial site.
The bid triggered a public tender for the 1.43ha plot, which is located at the key junction of Stamford Road and North Bridge Road, and also includes Capitol Centre, said the Urban Redevelopment Authority (URA) yesterday.
Whichever developer wins the tender can tear down Capitol Centre, a dingy three-storey complex with shops, offices and schools opposite St Andrew's Cathedral, and best known for its Gramophone and TMC Academy tenants. In its place, a new development of up to 10 storeys can be built, said the URA.
But the other three 'historically and architecturally significant buildings' will have to be retained and restored, it said.
Stamford House was built in 1904 in a neo-classical style by Mr Regent Alfred John Bidwell, the architect behind the Raffles Hotel. Capitol Theatre, which housed Singapore's first cinema, was built in 1929, and Capitol Building, previously known as Shaw Building, was built in 1933.
Property consultants said the site will be an exciting one for developers, as it is a prominent plot in a prized location.
An interesting retail, lifestyle and hotel development could be created on the site, said Mr Li Hiaw Ho, the executive director of CBRE Research.
He expects bids to arrive in the range of $220 million to $270 million.
This would work out to $400 to $500 per sq ft (psf) of total floor area.
The land parcel, which was made available in December 2008, could have been triggered for sale now because of an expected upturn in the market for office, retail and hotel space, said Colliers International's director for research and advisory Tay Huey Ying.
Prices for commercial and hotel land are still low because these segments have lagged the recovery in the housing market, but they are now seen to be at a turning point, she said.
Still, consultants expect only a handful of developers to contend for this site because of the many requirements involved.
The winning developer must use Capitol Theatre as an arts or entertainment-related performance venue. It must also build an underground pedestrian walkway, lined with shops and restaurants, to link the site to City Hall MRT Station and possibly CityLink Mall.
A quarter of the land parcel's total gross floor area must also be used for hotel rooms, to add to the existing hotel cluster in the area, said the URA.
'I think the site won't have many bidders, because you need a developer who is experienced in retail and hotel development and who also has the capacity to deal with all the conservation issues,' said DTZ's South-east Asia research head Chua Chor Hoon. 'It won't be just any ordinary developer who can handle this.'
The URA is conducting the tender via a two-envelope system, in which developers submit their design proposals and tender prices in two separate envelopes. The URA will first shortlist the designs they approve of and then choose the one with the highest bid.
Recent sites sold this way include the South Beach and Clifford Pier plots.
Meanwhile, the Housing Board will also put up for sale an executive condominium (EC) site in Sengkang. A developer has submitted an offer of at least $103.8 million for the land, triggering a public tender for the site, the HDB said yesterday.
Bids for the 183,000 sq ft plot, at the junction of Sengkang East Avenue and Buangkok Drive, could come in between $154 million and $181 million, said Mr Nicholas Mak, a real estate lecturer at Ngee Ann Polytechnic. This would work out to $250 to $330 psf of total floor area.
Consultants said the interest in the land parcel is not surprising given the enthusiastic response from developers for two other EC sites released recently, at Compassvale Bow and Yishun Avenue 11.
The finished units could eventually be sold at $600 to $650 psf, they said.
fiochan@sph.com.sg
ST : Private home prices up 5.1% in first quarter
Apr 2, 2010
Private home prices up 5.1% in first quarter
Index 1.9% below 2008 peak, but level will be breached soon: Experts
By Joyce Teo
FOR private home hunters looking for some respite in the relentless rise in prices, there was mixed news yesterday.
On the plus side, prices are estimated to have risen 5.1 per cent in the first quarter, moderating a little from the previous quarter's 7.4 per cent sharp rebound.
But the flash estimates from the Urban Redevelopment Authority (URA) also confirmed that - other than in the central prime areas - homes are now pricier than during the 2008 peak.
A URA spokesman said private home prices on the city fringes - officially 'the rest of the central region' - are 1.1 per cent above the last peak in 2008's second quarter.
Those in suburban areas or outside the central region areas are a heftier 7.6 per cent higher than levels in that previous peak, he said.
Overall, the URA index is just 1.9 per cent below the 2008 peak - after rising nearly 31 per cent since the third quarter of last year. It is likely to exceed that level as early as the next quarter, property experts predict.
With prices seen to be rising about 4 to 5 per cent each quarter, the index will also easily surpass the all-time peak in 1996 by the end of this year, said PropNex CEO Mohamed Ismail.
Ngee Ann Polytechnic lecturer Nicholas Mak projects a rise of 12 to 22 per cent for private homes this year.
The URA flash data is based on caveats lodged in the quarter's first 10 weeks.
On Tuesday, CBRE issued a report estimating first-quarter sales of new private homes at close to 4,000 units, more than double the number for the fourth quarter.
Resale home prices also rose in the first quarter, DTZ Research data showed.
ECG Property chief executive Eric Cheng said some home hunters are making panic buys as they are afraid of missing out.
In the first quarter, the URA said prices of non-landed private homes rose by 4.5 per cent in the city centre - the 'core central region', down from 7.3 per cent in the previous quarter.
On the city fringes, the rise was 7.2 per cent, down from 9.5 per cent in the previous quarter. Out in the suburbs, prices edged up 3.9 per cent, compared with 6.3 per cent in the previous quarter.
'The property market is still strong, but the 5.1 per cent rise is largely within expectations,' said Cushman & Wakefield managing director Donald Han.
Government cooling measures unveiled in February did not appear to have curtailed demand, though they would have led some developers and sellers to control their prices, he said.
CBRE Research executive director Li Hiaw Ho expects the momentum of new home take-ups and price growth to continue in the second quarter, especially with expected launches of projects in Dakota Crescent, Serangoon Avenue 3 and Chestnut Avenue. The home-buying market, he said, is favourable, supported by positive sentiment, a recovering economy and a low interest rate environment.
'The index lags the market, so it is actually reflecting what was happening in the fourth quarter. Going by the manner the market has moved so far this year, the second-quarter data will likely be higher,' said Credo Real Estate managing director Karamjit Singh.
But a strong HDB market is underpinning the private market. 'The HDB resale market has been on a one-way trajectory from 2007, totally oblivious to the crisis in 2008, rising 47.5 per cent since then,' said Mr Singh. 'This closes the gap between HDB and mass market homes, making the latter more affordable.'
Said Jones Lang LaSalle's associate director, research and consultancy, Mr Desmond Sim: 'The price increase is still cause for concern. But we are seeing a retraction of the rate of price growth, which shows that recent government measures have had some impact.'
The URA index looks at prices on a per sq ft basis but that does not mean mass market homes are unaffordable, as smaller homes can mean lower total prices. 'If price growth stays below 5 per cent, there may not be a need for more government measures,' said Mr Sim.
Also, more new sites are on the way, pointed out Mr Li. 'As supply begins to catch up with demand, price increases may assume a more moderate level in the second half of the year,' he said.
joyceteo@sph.com.sg
Private home prices up 5.1% in first quarter
Index 1.9% below 2008 peak, but level will be breached soon: Experts
By Joyce Teo
FOR private home hunters looking for some respite in the relentless rise in prices, there was mixed news yesterday.
On the plus side, prices are estimated to have risen 5.1 per cent in the first quarter, moderating a little from the previous quarter's 7.4 per cent sharp rebound.
But the flash estimates from the Urban Redevelopment Authority (URA) also confirmed that - other than in the central prime areas - homes are now pricier than during the 2008 peak.
A URA spokesman said private home prices on the city fringes - officially 'the rest of the central region' - are 1.1 per cent above the last peak in 2008's second quarter.
Those in suburban areas or outside the central region areas are a heftier 7.6 per cent higher than levels in that previous peak, he said.
Overall, the URA index is just 1.9 per cent below the 2008 peak - after rising nearly 31 per cent since the third quarter of last year. It is likely to exceed that level as early as the next quarter, property experts predict.
With prices seen to be rising about 4 to 5 per cent each quarter, the index will also easily surpass the all-time peak in 1996 by the end of this year, said PropNex CEO Mohamed Ismail.
Ngee Ann Polytechnic lecturer Nicholas Mak projects a rise of 12 to 22 per cent for private homes this year.
The URA flash data is based on caveats lodged in the quarter's first 10 weeks.
On Tuesday, CBRE issued a report estimating first-quarter sales of new private homes at close to 4,000 units, more than double the number for the fourth quarter.
Resale home prices also rose in the first quarter, DTZ Research data showed.
ECG Property chief executive Eric Cheng said some home hunters are making panic buys as they are afraid of missing out.
In the first quarter, the URA said prices of non-landed private homes rose by 4.5 per cent in the city centre - the 'core central region', down from 7.3 per cent in the previous quarter.
On the city fringes, the rise was 7.2 per cent, down from 9.5 per cent in the previous quarter. Out in the suburbs, prices edged up 3.9 per cent, compared with 6.3 per cent in the previous quarter.
'The property market is still strong, but the 5.1 per cent rise is largely within expectations,' said Cushman & Wakefield managing director Donald Han.
Government cooling measures unveiled in February did not appear to have curtailed demand, though they would have led some developers and sellers to control their prices, he said.
CBRE Research executive director Li Hiaw Ho expects the momentum of new home take-ups and price growth to continue in the second quarter, especially with expected launches of projects in Dakota Crescent, Serangoon Avenue 3 and Chestnut Avenue. The home-buying market, he said, is favourable, supported by positive sentiment, a recovering economy and a low interest rate environment.
'The index lags the market, so it is actually reflecting what was happening in the fourth quarter. Going by the manner the market has moved so far this year, the second-quarter data will likely be higher,' said Credo Real Estate managing director Karamjit Singh.
But a strong HDB market is underpinning the private market. 'The HDB resale market has been on a one-way trajectory from 2007, totally oblivious to the crisis in 2008, rising 47.5 per cent since then,' said Mr Singh. 'This closes the gap between HDB and mass market homes, making the latter more affordable.'
Said Jones Lang LaSalle's associate director, research and consultancy, Mr Desmond Sim: 'The price increase is still cause for concern. But we are seeing a retraction of the rate of price growth, which shows that recent government measures have had some impact.'
The URA index looks at prices on a per sq ft basis but that does not mean mass market homes are unaffordable, as smaller homes can mean lower total prices. 'If price growth stays below 5 per cent, there may not be a need for more government measures,' said Mr Sim.
Also, more new sites are on the way, pointed out Mr Li. 'As supply begins to catch up with demand, price increases may assume a more moderate level in the second half of the year,' he said.
joyceteo@sph.com.sg
ST : Home prices show signs of stabilising
Apr 2, 2010
Home prices show signs of stabilising
By Jessica Cheam
SINGAPORE'S residential property prices kept climbing in the first quarter, but recent frenetic increases in both private and public home prices are showing signs of moderating.
Preliminary estimates released by the Housing Board (HDB) yesterday showed resale HDB flat prices rose 2.7 per cent to a fresh record in the first quarter compared to the previous three months.
But the rate of increase was slower than the 3.9 per cent recorded in the fourth quarter of last year.
Another sign that things might be levelling off was the cash paid upfront by buyers above the valuation of a flat, known as cash-over-valuation (COV).
This figure stabilised at a median of $25,000 for the first quarter - up just $1,000 from the median of $24,000 in the previous quarter.
That rise was far more modest than the $12,000 leap in median COV amount from the third to fourth quarter last year.
Figures from the Urban Redevelopment Authority (URA) also showed private home prices climbing - but at a slower rate for the second straight quarter.
These prices were up 5.1 per cent in the first quarter, down from a 7.4 per cent increase in the previous quarter.
Industry analysts said yesterday the latest statistics suggest that current prices are encountering buyer resistance.
Further evidence of this trend: The number of resale flats that were sold slid 5 per cent to about 8,500 in the first quarter from the previous quarter.
ERA Asia-Pacific associate director Eugene Lim said his agency is experiencing a similar drop in sales volume.
Recent new launches by the HDB have taken some steam out of the resale market, he said. 'It simply makes more sense for first-timers to buy direct from the HDB as most, if not all, resale transactions involve COV.'
Although resale flat prices are expected to trend upwards for the rest of the year, the increases are expected to be marginally less, he added.
He estimates that this year could see a full year rise in prices of 5 per cent to 8 per cent.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the dip in sales volume could have been due to the Chinese New Year holiday and the effects of recent government cooling measures.
These included:
· Buyers of non-subsidised HDB resale flats must now occupy their property for at least three years before they can sell it. This is up from 2.5 years or one year previously, depending on the financing.
· The HDB has also imposed limits on the number of HDB flats in each block and neighbourhood that can be sold to non-Malaysian permanent residents to prevent foreigner enclaves from developing.
Chesterton Suntec International research and consultancy director Colin Tan said that the upcoming supply of new flats may continue to ease buying pressure in the resale market.
The HDB has so far offered 3,700 new flats for sale under its build-to-order system this quarter in a move to address supply concerns.
Another 1,200 flats in Punggol will be launched for sale this month, and the HDB said it will launch yet another 7,400 flats from next month to September.
The upcoming projects will be in areas such as Sengkang, Jurong West, Yishun, Bukit Panjang and Woodlands.
The HDB said if demand remains strong, it will launch more projects in the fourth quarter of the year.
Mr Mak noted that in the longer term, if HDB resale flat prices continue to moderate downwards, 'it could deflate the HDB upgraders' demand for private properties beyond the second half of 2010'.
CBRE Research executive director Li Hiaw Ho said that positive sentiment, a recovering economy and low interest rates 'will combine to sustain a favourable home-buying market'.
'But as supply begins to catch up with demand, (private home) price increases may assume a more moderate level in the second half of the year,' he said.
HDB also said that although resale prices have risen to a greater extent in recent years, the average annual increase for the whole decade is a moderate 3.5 per cent per year, which is in tandem with Singapore's economic growth.
Estimates by HDB and URA are compiled based on transactions lodged in the first 10 weeks of the quarter.
The statistics will be updated in four weeks' time.
Home prices show signs of stabilising
By Jessica Cheam
SINGAPORE'S residential property prices kept climbing in the first quarter, but recent frenetic increases in both private and public home prices are showing signs of moderating.
Preliminary estimates released by the Housing Board (HDB) yesterday showed resale HDB flat prices rose 2.7 per cent to a fresh record in the first quarter compared to the previous three months.
But the rate of increase was slower than the 3.9 per cent recorded in the fourth quarter of last year.
Another sign that things might be levelling off was the cash paid upfront by buyers above the valuation of a flat, known as cash-over-valuation (COV).
This figure stabilised at a median of $25,000 for the first quarter - up just $1,000 from the median of $24,000 in the previous quarter.
That rise was far more modest than the $12,000 leap in median COV amount from the third to fourth quarter last year.
Figures from the Urban Redevelopment Authority (URA) also showed private home prices climbing - but at a slower rate for the second straight quarter.
These prices were up 5.1 per cent in the first quarter, down from a 7.4 per cent increase in the previous quarter.
Industry analysts said yesterday the latest statistics suggest that current prices are encountering buyer resistance.
Further evidence of this trend: The number of resale flats that were sold slid 5 per cent to about 8,500 in the first quarter from the previous quarter.
ERA Asia-Pacific associate director Eugene Lim said his agency is experiencing a similar drop in sales volume.
Recent new launches by the HDB have taken some steam out of the resale market, he said. 'It simply makes more sense for first-timers to buy direct from the HDB as most, if not all, resale transactions involve COV.'
Although resale flat prices are expected to trend upwards for the rest of the year, the increases are expected to be marginally less, he added.
He estimates that this year could see a full year rise in prices of 5 per cent to 8 per cent.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the dip in sales volume could have been due to the Chinese New Year holiday and the effects of recent government cooling measures.
These included:
· Buyers of non-subsidised HDB resale flats must now occupy their property for at least three years before they can sell it. This is up from 2.5 years or one year previously, depending on the financing.
· The HDB has also imposed limits on the number of HDB flats in each block and neighbourhood that can be sold to non-Malaysian permanent residents to prevent foreigner enclaves from developing.
Chesterton Suntec International research and consultancy director Colin Tan said that the upcoming supply of new flats may continue to ease buying pressure in the resale market.
The HDB has so far offered 3,700 new flats for sale under its build-to-order system this quarter in a move to address supply concerns.
Another 1,200 flats in Punggol will be launched for sale this month, and the HDB said it will launch yet another 7,400 flats from next month to September.
The upcoming projects will be in areas such as Sengkang, Jurong West, Yishun, Bukit Panjang and Woodlands.
The HDB said if demand remains strong, it will launch more projects in the fourth quarter of the year.
Mr Mak noted that in the longer term, if HDB resale flat prices continue to moderate downwards, 'it could deflate the HDB upgraders' demand for private properties beyond the second half of 2010'.
CBRE Research executive director Li Hiaw Ho said that positive sentiment, a recovering economy and low interest rates 'will combine to sustain a favourable home-buying market'.
'But as supply begins to catch up with demand, (private home) price increases may assume a more moderate level in the second half of the year,' he said.
HDB also said that although resale prices have risen to a greater extent in recent years, the average annual increase for the whole decade is a moderate 3.5 per cent per year, which is in tandem with Singapore's economic growth.
Estimates by HDB and URA are compiled based on transactions lodged in the first 10 weeks of the quarter.
The statistics will be updated in four weeks' time.
TODAY ONLINE : A sign of buyer resistance?
A sign of buyer resistance?
COV and prices up, but by lower margin
05:55 AM Apr 02, 2010
by Esther Ng
SINGAPORE - Prices of HDB resale flats have been climbing for three quarters, the last two at more than 3 per cent each. Now, the rate of growth has slowed to 2.7 per cent in the first three months of this year.
And the median cash over valuation (COV) amount - after doubling in the fourth quarter - has risen by just $1,000 to $25,000, while resale volume headed south for two consecutive quarters.
Could this, coming after recent property cooling measures by the Government, be a sign that resale prices are encountering buyer resistance?
It is the first possible indication that resale prices may not rise by as much as they did last year, property experts told MediaCorp, but it is still a wait-and-see situation.
"It's the right signal; it shows prices are growing at a slower pace," said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
The number of Built-to-Order (BTO) flats to be launched by HDB this year is also expected to take some steam off the resale market, said Mr Eugene Lim, associate director of ERA Asia Pacific.
But, he added, demand still outstrips supply: "The demand for resale flats comes predominantly from upgraders, downgraders and permanent residents because of their immediate housing needs."
The HDB announced it will launch this month 1,200 BTO flats in Punggol and, from May to September, another 7,400 BTO flats in areas such as Sengkang, Jurong West, Yishun, Bukit Panjang and Woodlands.
But some, like sales manager Sri Aran, cannot wait three years for a new flat. He plans to upgrade from his three-room flat to a five-roomer, as his 16-year-old son now shares a room with his grandfather, but is concerned about rising resale prices.
While it makes more sense for first-time households to buy direct from the HDB as there is no COV, these buyers could "return to the resale market with a vengeance" since the rejection rate of BTOs is about 50 per cent, said Chesterton Suntec International's head of research and consultancy Colin Tan.
However, the estimated number of resale transactions for the first quarter fell by 5 per cent, after a 23-per-cent drop in the fourth quarter. Mr Mak attributed this to slower sales during the Chinese New Year holiday and the gradual effects of the cooling measures.
Mr Lim agreed: "We need to watch Q2 and Q3, which tend to experience a lot more market activity."
Property consultants expect resale prices to rise between 5 and 10 per cent this year. The Resale Price Index has risen by 3.5 per cent annually, on average, since 2000. Last year's hike was 8.2 per cent.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
COV and prices up, but by lower margin
05:55 AM Apr 02, 2010
by Esther Ng
SINGAPORE - Prices of HDB resale flats have been climbing for three quarters, the last two at more than 3 per cent each. Now, the rate of growth has slowed to 2.7 per cent in the first three months of this year.
And the median cash over valuation (COV) amount - after doubling in the fourth quarter - has risen by just $1,000 to $25,000, while resale volume headed south for two consecutive quarters.
Could this, coming after recent property cooling measures by the Government, be a sign that resale prices are encountering buyer resistance?
It is the first possible indication that resale prices may not rise by as much as they did last year, property experts told MediaCorp, but it is still a wait-and-see situation.
"It's the right signal; it shows prices are growing at a slower pace," said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
The number of Built-to-Order (BTO) flats to be launched by HDB this year is also expected to take some steam off the resale market, said Mr Eugene Lim, associate director of ERA Asia Pacific.
But, he added, demand still outstrips supply: "The demand for resale flats comes predominantly from upgraders, downgraders and permanent residents because of their immediate housing needs."
The HDB announced it will launch this month 1,200 BTO flats in Punggol and, from May to September, another 7,400 BTO flats in areas such as Sengkang, Jurong West, Yishun, Bukit Panjang and Woodlands.
But some, like sales manager Sri Aran, cannot wait three years for a new flat. He plans to upgrade from his three-room flat to a five-roomer, as his 16-year-old son now shares a room with his grandfather, but is concerned about rising resale prices.
While it makes more sense for first-time households to buy direct from the HDB as there is no COV, these buyers could "return to the resale market with a vengeance" since the rejection rate of BTOs is about 50 per cent, said Chesterton Suntec International's head of research and consultancy Colin Tan.
However, the estimated number of resale transactions for the first quarter fell by 5 per cent, after a 23-per-cent drop in the fourth quarter. Mr Mak attributed this to slower sales during the Chinese New Year holiday and the gradual effects of the cooling measures.
Mr Lim agreed: "We need to watch Q2 and Q3, which tend to experience a lot more market activity."
Property consultants expect resale prices to rise between 5 and 10 per cent this year. The Resale Price Index has risen by 3.5 per cent annually, on average, since 2000. Last year's hike was 8.2 per cent.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
BT : Another EC plot at Sengkang to be launched in 2 weeks
Business Times - 02 Apr 2010
Another EC plot at Sengkang to be launched in 2 weeks
AN executive condominium (EC) site at the junction of Sengkang East Avenue and Buangkok Drive will go on sale in about two weeks - and is expected to be warmly received by developers.
The Housing & Development Board said yesterday it will release the site, which is on the government's reserve list. Sites on this list are released after a developer commits to bid at or above a minimum price acceptable to the state - in this case, $103.8 million or $189 per sq ft per plot ratio (psf ppr).
The site will be the third EC plot sold this year. It will add 465 units to the supply of public housing, taking EC supply to 1,365 units in first half of 2010. Two EC sites - at Sengkang and Yishun - with a combined yield of about 900 units have been sold already this year.
'Following the enthusiastic response from developers for the EC sites at Compassvale Bow and Yishun Avenue 11, it is no surprise a third site has been triggered,' said Li Hiaw Ho, executive director of CBRE Research.
PropNex chief executive Mohamed Ismail said that given the slowly growing gap between private property and HDB prices - the private property price index for Q1 2010 went up 5.1 per cent, while HDB's resale price index went up only 2.7 per cent - 'the time is right for the launch of more ECs to cater to the sandwiched class of those who may not qualify for an HDB flat yet are unable to afford a private property'.
Analysts expect the latest site to fetch between $200 and $300 psf ppr. The site is adjacent to Park Green EC and near The Rivervale and Florida ECs, where units were sold at $520 psf to $600 psf between October 2009 and February 2010.
'Developers should be able to break even around $500 psf after construction and other costs, and the selling price should be around $550-600 psf, which is about 25 per cent below mass market prices for similar private properties,' said Mr Ismail.
Eugene Lim, associate director of ERA Asia-Pacific, has a higher estimate - he expects the upcoming flats to be priced at $620-$680 psf.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved
Another EC plot at Sengkang to be launched in 2 weeks
AN executive condominium (EC) site at the junction of Sengkang East Avenue and Buangkok Drive will go on sale in about two weeks - and is expected to be warmly received by developers.
The Housing & Development Board said yesterday it will release the site, which is on the government's reserve list. Sites on this list are released after a developer commits to bid at or above a minimum price acceptable to the state - in this case, $103.8 million or $189 per sq ft per plot ratio (psf ppr).
The site will be the third EC plot sold this year. It will add 465 units to the supply of public housing, taking EC supply to 1,365 units in first half of 2010. Two EC sites - at Sengkang and Yishun - with a combined yield of about 900 units have been sold already this year.
'Following the enthusiastic response from developers for the EC sites at Compassvale Bow and Yishun Avenue 11, it is no surprise a third site has been triggered,' said Li Hiaw Ho, executive director of CBRE Research.
PropNex chief executive Mohamed Ismail said that given the slowly growing gap between private property and HDB prices - the private property price index for Q1 2010 went up 5.1 per cent, while HDB's resale price index went up only 2.7 per cent - 'the time is right for the launch of more ECs to cater to the sandwiched class of those who may not qualify for an HDB flat yet are unable to afford a private property'.
Analysts expect the latest site to fetch between $200 and $300 psf ppr. The site is adjacent to Park Green EC and near The Rivervale and Florida ECs, where units were sold at $520 psf to $600 psf between October 2009 and February 2010.
'Developers should be able to break even around $500 psf after construction and other costs, and the selling price should be around $550-600 psf, which is about 25 per cent below mass market prices for similar private properties,' said Mr Ismail.
Eugene Lim, associate director of ERA Asia-Pacific, has a higher estimate - he expects the upcoming flats to be priced at $620-$680 psf.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved
BT : Prices rise, with a hint of unease
Business Times - 02 Apr 2010
Prices rise, with a hint of unease
Price resistance may be setting in as private homes, resale flats register small increases
By KALPANA RASHIWALA
PRICES of private homes as well as public housing resale flats registered smaller quarter-on-quarter increases in the first quarter of this year compared with Q4 last year, government flash estimates show. Market watchers say this could reflect price resistance starting to set in following non-stop increases for several quarters. Behind the rosy picture of brisk developer home sales and price gains, a quiet unease seems to be setting in the market, with uncertainty looming for the second half of this year.
There are concerns about how sustainable the recovery in the housing market is given worries about the US and European economies, among other factors. On the other hand, if the home buyer fever in Singapore does not abate, there are fears of further government measures to cool the property market. Urban Redevelopment Authority's official price index for private homes appreciated 5.1 per cent in Q1 2010 over the preceding quarter, slower than the 7.4 per cent quarter-on-quarter rise in Q4 last year.
The latest flash estimate also reflects an increase of 24.5 per cent year on year.
URA's price indices for non-landed private homes in the three geographical sectors too rose at a slower clip. Quarter-on-quarter increases of 4.5 per cent in Core Central Region, 7.2 per cent in Rest of Central Region and 3.9 per cent in Outside Central Region were posted in Q1 - against respective Q-on-Q hikes of 7.3 per cent, 9.5 per cent and 6.3 per cent in the fourth quarter of last year.
Housing & Development Board's resale flat price index rose 2.7 per cent Q-on-Q in Q1, a smaller gain compared with the 3.9 per cent Q-on-Q rise in Q4 2009. The latest Q1 flash estimate reflects a 12 per cent year-on- year increase and takes the index to a new high.
HDB stressed that seen over a 10-year period (Q1 2000 to Q1 2010, the index has risen at a more modest pace of 3.5 per cent per annum on average.
It also revealed that the number of resale applications for Q1 2010 is about 8,500, about 5 per cent lower than the Q4 figure. The median cash over valuation (COV) amount for Q1 2010 (up to March 21) 'has stabilised' at $25,000, an increase of $1,000 over Q4 2009. In contrast, the figure of $24,000 for Q4 last year was double the $12,000 for Q3 2009, it said.
HDB also revealed it is launching a total 12,300 Build-To-Order (BTO) flats in the first nine months of this year, and promised to launch more BTO projects in the fourth quarter if demand remains strong. Last year, the board launched 9,000 BTO flats.
HDB offered 3,700 BTO flats in Q1 this year and will release a further 1,200 flats in Punggol in April. From May to September, it will launch another 7,400 BTO flats in a 'good geographical spread, covering areas such as Sengkang, Jurong West, Yishun, Bukit Panjang and Woodlands'.
HDB reiterated that the BTO supply will be supplemented by flats under the Design, Build and Sell Scheme as well as executive condos (a hybrid of public and private housing) for higher-income buyers.
ERA associate director Eugene Lim said: 'The number of BTO flats to be launched by HDB this year in a variety of locations is expected to take some steam off the resale market. It simply makes more sense for first-timers to buy direct from HDB as most, if not all, resale transactions involve COV.' He predicts that resale price increases for the subsequent quarters of 2010 will be marginally less, resulting in the HDB resale price index rising 5 to 8 per cent for the year.
PropNex is also forecasting 5-8 per cent growth in HDB's resale price index this year.
In the private residential segment, developers have achieved brisk sales in Q1 - of about 4,000 units or double the preceding quarter's numbers, according to CB Richard Ellis' estimates.
Industry players expect developers to continue launching projects to try and ride the current wave of home buying.
Knight Frank chairman Tan Tiong Cheng explains: 'Is the global economy out of the woods? Nobody can say. If you're a developer, and you're assured of profits if you launch your projects now, it makes sense to sell now.'
Agreeing, Ho Bee Investment's executive director Ong Chong Hua says: 'During 2008, it was very tough, prices kept coming down and there was no way for sites bought at higher prices, developers would be able to sell and make a return. Even if they had chopped prices at that point, the sentiment for buying was just not there.'
The price recovery over the past year and resurgence in home buying sentiment have presented an opportunity for developers to roll out projects they had held back, he added.
Knight Frank's Mr Tan observes that in some instances, developers are choosing to launch projects sooner rather than later to beat their competition. 'If you know another site or project is coming up in your location, and the captive audience in that location is only X number of buyers, it's better to try and release your project ahead of the pack.'
However, prices are expected to remain firm. As an industry observer put it: 'It's better to maintain prices even if that means taking a longer time to sell than to sell quickly and then rush to replace land at much higher prices, at tomorrow's prices, on the basis that prices will continue to rise at the same pace as we've seen in the past 12 months. The fundamentals are not sustainable.'
CBRE said yesterday that as the government releases more residential sites and supply begins to catch up with demand, price increases for private homes may assume a more moderate level in the second-half this year.
Prices rise, with a hint of unease
Price resistance may be setting in as private homes, resale flats register small increases
By KALPANA RASHIWALA
PRICES of private homes as well as public housing resale flats registered smaller quarter-on-quarter increases in the first quarter of this year compared with Q4 last year, government flash estimates show. Market watchers say this could reflect price resistance starting to set in following non-stop increases for several quarters. Behind the rosy picture of brisk developer home sales and price gains, a quiet unease seems to be setting in the market, with uncertainty looming for the second half of this year.
There are concerns about how sustainable the recovery in the housing market is given worries about the US and European economies, among other factors. On the other hand, if the home buyer fever in Singapore does not abate, there are fears of further government measures to cool the property market. Urban Redevelopment Authority's official price index for private homes appreciated 5.1 per cent in Q1 2010 over the preceding quarter, slower than the 7.4 per cent quarter-on-quarter rise in Q4 last year.
The latest flash estimate also reflects an increase of 24.5 per cent year on year.
URA's price indices for non-landed private homes in the three geographical sectors too rose at a slower clip. Quarter-on-quarter increases of 4.5 per cent in Core Central Region, 7.2 per cent in Rest of Central Region and 3.9 per cent in Outside Central Region were posted in Q1 - against respective Q-on-Q hikes of 7.3 per cent, 9.5 per cent and 6.3 per cent in the fourth quarter of last year.
Housing & Development Board's resale flat price index rose 2.7 per cent Q-on-Q in Q1, a smaller gain compared with the 3.9 per cent Q-on-Q rise in Q4 2009. The latest Q1 flash estimate reflects a 12 per cent year-on- year increase and takes the index to a new high.
HDB stressed that seen over a 10-year period (Q1 2000 to Q1 2010, the index has risen at a more modest pace of 3.5 per cent per annum on average.
It also revealed that the number of resale applications for Q1 2010 is about 8,500, about 5 per cent lower than the Q4 figure. The median cash over valuation (COV) amount for Q1 2010 (up to March 21) 'has stabilised' at $25,000, an increase of $1,000 over Q4 2009. In contrast, the figure of $24,000 for Q4 last year was double the $12,000 for Q3 2009, it said.
HDB also revealed it is launching a total 12,300 Build-To-Order (BTO) flats in the first nine months of this year, and promised to launch more BTO projects in the fourth quarter if demand remains strong. Last year, the board launched 9,000 BTO flats.
HDB offered 3,700 BTO flats in Q1 this year and will release a further 1,200 flats in Punggol in April. From May to September, it will launch another 7,400 BTO flats in a 'good geographical spread, covering areas such as Sengkang, Jurong West, Yishun, Bukit Panjang and Woodlands'.
HDB reiterated that the BTO supply will be supplemented by flats under the Design, Build and Sell Scheme as well as executive condos (a hybrid of public and private housing) for higher-income buyers.
ERA associate director Eugene Lim said: 'The number of BTO flats to be launched by HDB this year in a variety of locations is expected to take some steam off the resale market. It simply makes more sense for first-timers to buy direct from HDB as most, if not all, resale transactions involve COV.' He predicts that resale price increases for the subsequent quarters of 2010 will be marginally less, resulting in the HDB resale price index rising 5 to 8 per cent for the year.
PropNex is also forecasting 5-8 per cent growth in HDB's resale price index this year.
In the private residential segment, developers have achieved brisk sales in Q1 - of about 4,000 units or double the preceding quarter's numbers, according to CB Richard Ellis' estimates.
Industry players expect developers to continue launching projects to try and ride the current wave of home buying.
Knight Frank chairman Tan Tiong Cheng explains: 'Is the global economy out of the woods? Nobody can say. If you're a developer, and you're assured of profits if you launch your projects now, it makes sense to sell now.'
Agreeing, Ho Bee Investment's executive director Ong Chong Hua says: 'During 2008, it was very tough, prices kept coming down and there was no way for sites bought at higher prices, developers would be able to sell and make a return. Even if they had chopped prices at that point, the sentiment for buying was just not there.'
The price recovery over the past year and resurgence in home buying sentiment have presented an opportunity for developers to roll out projects they had held back, he added.
Knight Frank's Mr Tan observes that in some instances, developers are choosing to launch projects sooner rather than later to beat their competition. 'If you know another site or project is coming up in your location, and the captive audience in that location is only X number of buyers, it's better to try and release your project ahead of the pack.'
However, prices are expected to remain firm. As an industry observer put it: 'It's better to maintain prices even if that means taking a longer time to sell than to sell quickly and then rush to replace land at much higher prices, at tomorrow's prices, on the basis that prices will continue to rise at the same pace as we've seen in the past 12 months. The fundamentals are not sustainable.'
CBRE said yesterday that as the government releases more residential sites and supply begins to catch up with demand, price increases for private homes may assume a more moderate level in the second-half this year.
BT : Landmark site at City Hall up for sale
Business Times - 02 Apr 2010
Landmark site at City Hall up for sale
The developer has to retain and restore the three buildings - Capitol Theatre, Capitol Building and Stamford House - on the site
By UMA SHANKARI
THE government will soon put up for sale a commercial site with three landmark buildings - Capitol Theatre, Capitol Building and Stamford House - on it.
The site, which is located at the junction of Stamford Road and North Bridge Road and which also comprises Capitol Centre and a subterranean parcel below North Bridge Road that will link directly to City Hall MRT station, will be launched for sale in about two weeks. It has been on the government's reserve list since December 2008.
Analysts expect an 'interesting' retail-cum-lifestyle-cum-hotel development will come up on the 99-year leasehold site, which has a maximum permissible gross floor area of about 542,400 sq ft.
The land parcel will be sold through a 'concept and price revenue' tender process, said the Urban Redevelopment Authority (URA). Under this system, tenderers are required to submit their concept proposals and tender prices in two separate envelopes. The concept proposals will be first evaluated against a specified set of specified criteria and only those that meet the criteria will be considered. The site will then be awarded to the tender with the highest bid price among those with acceptable concept proposals.
The developer of the site is required to retain and restore the three 'historically and architecturally significant buildings' - Capitol Theatre, Capitol Building and Stamford House - for re-use. In particular, URA said that Capitol Theatre is required to be used as an arts or entertainment-related performance venue. Capitol Centre, on the other hand, can be torn down.
The winning bidder is also required to set aside 25 per cent of the total gross floor area for hotel use. This will help to strengthen the hotel cluster in the area, which now includes Swissotel The Stamford, The Fairmont and Grand Plaza Park Hotel, URA said.
URA is releasing the site as it has received an application from an unnamed developer, who has committed to bid a least $100 million - or $184 per square foot per plot ratio (psf ppr) - for it. But the site can fetch $400-$600 psf ppr, analysts said.
'With a predominantly retail development at this historical central landmark, the land cost of site is likely to range from $400 to $500 psf based on the maximum permissible gross floor area,' said Li Hiaw Ho, executive director of CBRE Research. 'This would translate to an estimated amount of between $220 million to $270 million.'
Others put the eventual selling price as high as $600 psf ppr. However, analysts said that the number of bids will be limited as the site will be challenging to develop.
'Basically, the conservation element will limit the number of bidders,' said Tay Huey Ying, Colliers' director for research and advisory. URA's criteria requires the tenderer and design team to have 'proven track record and experience in developing developments of similar quality' - which automatically eliminates many potential bidders.
Separately, JTC Corporation also said yesterday that it has launched a 5 ha industrial site at Tampines for sale - the first industrial site this year to be released from the government's confirmed list, which was reinstated in December 2009 to meet the demand for industrial land arising from improved economic conditions.
The site is located at the junction of Tampines Industrial Avenue 4 and Tampines Industrial Avenue 5, within the Tampines Wafer Fab Park. It will be sold with a 30-year lease and can yield a total gross floor area of close to 431,000 sq ft. Analysts said that the plot can fetch $40-$50 psf ppr, which translates to some $17.2-$21.5 million for the entire plot.
Landmark site at City Hall up for sale
The developer has to retain and restore the three buildings - Capitol Theatre, Capitol Building and Stamford House - on the site
By UMA SHANKARI
THE government will soon put up for sale a commercial site with three landmark buildings - Capitol Theatre, Capitol Building and Stamford House - on it.
The site, which is located at the junction of Stamford Road and North Bridge Road and which also comprises Capitol Centre and a subterranean parcel below North Bridge Road that will link directly to City Hall MRT station, will be launched for sale in about two weeks. It has been on the government's reserve list since December 2008.
Analysts expect an 'interesting' retail-cum-lifestyle-cum-hotel development will come up on the 99-year leasehold site, which has a maximum permissible gross floor area of about 542,400 sq ft.
The land parcel will be sold through a 'concept and price revenue' tender process, said the Urban Redevelopment Authority (URA). Under this system, tenderers are required to submit their concept proposals and tender prices in two separate envelopes. The concept proposals will be first evaluated against a specified set of specified criteria and only those that meet the criteria will be considered. The site will then be awarded to the tender with the highest bid price among those with acceptable concept proposals.
The developer of the site is required to retain and restore the three 'historically and architecturally significant buildings' - Capitol Theatre, Capitol Building and Stamford House - for re-use. In particular, URA said that Capitol Theatre is required to be used as an arts or entertainment-related performance venue. Capitol Centre, on the other hand, can be torn down.
The winning bidder is also required to set aside 25 per cent of the total gross floor area for hotel use. This will help to strengthen the hotel cluster in the area, which now includes Swissotel The Stamford, The Fairmont and Grand Plaza Park Hotel, URA said.
URA is releasing the site as it has received an application from an unnamed developer, who has committed to bid a least $100 million - or $184 per square foot per plot ratio (psf ppr) - for it. But the site can fetch $400-$600 psf ppr, analysts said.
'With a predominantly retail development at this historical central landmark, the land cost of site is likely to range from $400 to $500 psf based on the maximum permissible gross floor area,' said Li Hiaw Ho, executive director of CBRE Research. 'This would translate to an estimated amount of between $220 million to $270 million.'
Others put the eventual selling price as high as $600 psf ppr. However, analysts said that the number of bids will be limited as the site will be challenging to develop.
'Basically, the conservation element will limit the number of bidders,' said Tay Huey Ying, Colliers' director for research and advisory. URA's criteria requires the tenderer and design team to have 'proven track record and experience in developing developments of similar quality' - which automatically eliminates many potential bidders.
Separately, JTC Corporation also said yesterday that it has launched a 5 ha industrial site at Tampines for sale - the first industrial site this year to be released from the government's confirmed list, which was reinstated in December 2009 to meet the demand for industrial land arising from improved economic conditions.
The site is located at the junction of Tampines Industrial Avenue 4 and Tampines Industrial Avenue 5, within the Tampines Wafer Fab Park. It will be sold with a 30-year lease and can yield a total gross floor area of close to 431,000 sq ft. Analysts said that the plot can fetch $40-$50 psf ppr, which translates to some $17.2-$21.5 million for the entire plot.
Monday, April 5, 2010
ST : Store to relook overcrowding issue
Apr 1, 2010
MUSTAFA IN TROUBLE
Store to relook overcrowding issue
By Lester Kok
MUSTAFA Centre management will relook the overcrowding problem in its popular Little India shopping centre, after attempts to curb it have failed.
The building's maintenance and safety manager, Mr Shamim Ahmad, said the overcrowding issue is mainly due to customers coming from the upper floors and the basement to the first floor to exit.
Existing attempts to control the crowd include reducing the number of escalators that bring customers to the first floor and having a camera system to track the number of patrons.
But neither proved effective.
The Singapore Civil Defence Force (SCDF) applied on Tuesday for a court order to suspend the business operations on the centre's first floor due to concerns of over-crowding.
A pre-trial conference for the application will be held next Wednesday. The mall will remain open for business in the meantime.
Mr Ahmad said controlling access to the 24-hour shopping centre is difficult because of the large number of tourists and foreign workers who come on weekends.
'It's not like a cinema, this is a shopping centre,' he added. 'We are trying hard to come up with some solution.'
Checks by the SCDF in December last year revealed that the number of people on the first floor sometimes exceeded the 431-patron limit by almost 50 per cent.
On Jan 19, the retailer was fined $17,000 for two fire-safety violations, including overcrowding.
In the past five years, it has chalked up over 45 fire-safety breaches, which resulted in warnings and fines totalling almost $50,000.
Shopper Doris Yeo, 62, a retiree said that the mall's walkways tended to be congested as they were blocked with goods.
'When nothing happens, this place looks okay on the outside. But because of its layout, it could become a big problem if a fire were to break out,' she said.
MUSTAFA IN TROUBLE
Store to relook overcrowding issue
By Lester Kok
MUSTAFA Centre management will relook the overcrowding problem in its popular Little India shopping centre, after attempts to curb it have failed.
The building's maintenance and safety manager, Mr Shamim Ahmad, said the overcrowding issue is mainly due to customers coming from the upper floors and the basement to the first floor to exit.
Existing attempts to control the crowd include reducing the number of escalators that bring customers to the first floor and having a camera system to track the number of patrons.
But neither proved effective.
The Singapore Civil Defence Force (SCDF) applied on Tuesday for a court order to suspend the business operations on the centre's first floor due to concerns of over-crowding.
A pre-trial conference for the application will be held next Wednesday. The mall will remain open for business in the meantime.
Mr Ahmad said controlling access to the 24-hour shopping centre is difficult because of the large number of tourists and foreign workers who come on weekends.
'It's not like a cinema, this is a shopping centre,' he added. 'We are trying hard to come up with some solution.'
Checks by the SCDF in December last year revealed that the number of people on the first floor sometimes exceeded the 431-patron limit by almost 50 per cent.
On Jan 19, the retailer was fined $17,000 for two fire-safety violations, including overcrowding.
In the past five years, it has chalked up over 45 fire-safety breaches, which resulted in warnings and fines totalling almost $50,000.
Shopper Doris Yeo, 62, a retiree said that the mall's walkways tended to be congested as they were blocked with goods.
'When nothing happens, this place looks okay on the outside. But because of its layout, it could become a big problem if a fire were to break out,' she said.
ST : $10k fine for using warehouse for retail
Apr 1, 2010
MUSTAFA IN TROUBLE
$10k fine for using warehouse for retail
It illegally used first two floors of Kallang Pudding building as department store, supermarket
By Leow Si Wan
POPULAR retailer Mustafa was fined $10,000 yesterday, after it pleaded guilty to illegally using its six-storey warehouse building in Kallang Pudding Road for retail sales.
The fine caps a saga which began last November, when the Urban Redevelopment Authority (URA) served a writ of summons on Mustafa for converting the first two levels of its warehouse into a department store and a supermarket.
These retail spaces have since been shut down.
In a statement yesterday, the URA said Mustafa had committed an offence under the Planning Act, which is punishable by a fine of up to $200,000.
A spokesman for the authority said: 'Warehouses are approved primarily for the storage of goods and as a central distribution centre. They should not be used for... the retailing of merchandise, which is considered a commercial use.'
The URA added, however, that 'some flexibility' would be exercised for occasional warehouse sales conducted to clear stock.
Mustafa had, with the approval of the URA in 2001, developed the Kallang Pudding warehouse on a 58,400 sq ft freehold site it owned.
Save for the occasional sale, the warehouse was closed to the public until about October last year, when the shutters went up to reveal a department store on the ground floor and a supermarket on the second.
Competitors were upset that Mustafa was getting away with operating a retail store while paying low warehouse rents.
Asked yesterday why it took more than four months and repeated adjournments for Mustafa to plead guilty, its lawyer, Mr Bala Chandran, said several representations were made because this was the retailer's first such offence.
He added the warehouse had stopped sales soon after the authorities stepped in.
Mustafa's managing director, Mr Mustaq Ahmad, declined comment when contacted yesterday.
The retailer has been making headlines for all the wrong reasons recently. Yesterday's fine, for example, comes a day after the court heard an application by the Singapore Civil Defence Force for Mustafa Centre in Little India to temporarily stop business on the first floor.
The move came amid concerns about over-crowding at the shopping centre.
Warehouse operators and retail experts interviewed said Mustafa's conviction served as a 'clear signal' that warehouses should not be used for retail purposes.
Ms Frances Chow, a supervisor at wine distributor Excaliber in Aljunied, said warehouse operators who have carried out similar sales in the past now know 'where the lines are drawn'.
Added Singapore Polytechnic senior retail and marketing lecturer Sarah Lim: 'This will help prevent cases where warehouses are used for retail - which is unfair competition because warehouse rents are much lower.'
siwan@sph.com.sg
MUSTAFA IN TROUBLE
$10k fine for using warehouse for retail
It illegally used first two floors of Kallang Pudding building as department store, supermarket
By Leow Si Wan
POPULAR retailer Mustafa was fined $10,000 yesterday, after it pleaded guilty to illegally using its six-storey warehouse building in Kallang Pudding Road for retail sales.
The fine caps a saga which began last November, when the Urban Redevelopment Authority (URA) served a writ of summons on Mustafa for converting the first two levels of its warehouse into a department store and a supermarket.
These retail spaces have since been shut down.
In a statement yesterday, the URA said Mustafa had committed an offence under the Planning Act, which is punishable by a fine of up to $200,000.
A spokesman for the authority said: 'Warehouses are approved primarily for the storage of goods and as a central distribution centre. They should not be used for... the retailing of merchandise, which is considered a commercial use.'
The URA added, however, that 'some flexibility' would be exercised for occasional warehouse sales conducted to clear stock.
Mustafa had, with the approval of the URA in 2001, developed the Kallang Pudding warehouse on a 58,400 sq ft freehold site it owned.
Save for the occasional sale, the warehouse was closed to the public until about October last year, when the shutters went up to reveal a department store on the ground floor and a supermarket on the second.
Competitors were upset that Mustafa was getting away with operating a retail store while paying low warehouse rents.
Asked yesterday why it took more than four months and repeated adjournments for Mustafa to plead guilty, its lawyer, Mr Bala Chandran, said several representations were made because this was the retailer's first such offence.
He added the warehouse had stopped sales soon after the authorities stepped in.
Mustafa's managing director, Mr Mustaq Ahmad, declined comment when contacted yesterday.
The retailer has been making headlines for all the wrong reasons recently. Yesterday's fine, for example, comes a day after the court heard an application by the Singapore Civil Defence Force for Mustafa Centre in Little India to temporarily stop business on the first floor.
The move came amid concerns about over-crowding at the shopping centre.
Warehouse operators and retail experts interviewed said Mustafa's conviction served as a 'clear signal' that warehouses should not be used for retail purposes.
Ms Frances Chow, a supervisor at wine distributor Excaliber in Aljunied, said warehouse operators who have carried out similar sales in the past now know 'where the lines are drawn'.
Added Singapore Polytechnic senior retail and marketing lecturer Sarah Lim: 'This will help prevent cases where warehouses are used for retail - which is unfair competition because warehouse rents are much lower.'
siwan@sph.com.sg
ST : Sheng Siong won't scrap rental hike
Apr 1, 2010
Sheng Siong won't scrap rental hike
It rejects appeal by stallholders at Serangoon market
By Jessica Lim & Cai Haoxiang
AN APPEAL to supermarket chain Sheng Siong to reconsider raising rent from today has been rejected.
In response to a letter from stallholders from the Serangoon Avenue 3 wet market last week, Sheng Siong's management said the rental hike was 'a decision made by our board of directors, after considering all factors, such as long-term and short-term costs and sustainability of the business model'.
It added that the outcome is inevitable and sought the understanding of stallholders.
The 30 per cent rental hike comes after the chain's controversial purchase of the wet market and four others - in Bukit Batok West Avenue 8, Fajar Road in Bukit Panjang, and two in Choa Chu Kang - from private company Heeton Holdings in December last year.
Previously, the supermarket chain's managing director Lim Hock Chee said the chain had no choice but to increase rentals because it had to pay bank interest fees, tax and maintenance fees after buying the five wet markets for about $25 million.
Stallholders from the Serangoon market had met Marine Parade GRC MP Seah Kian Peng last week to discuss the issue. The MP, who oversees the Serangoon area, wrote a letter to Sheng Siong on their behalf, asking it to reconsider the rent increase and the duration of the contracts, which were cut from two years to one year.
Butcher Richard Goh, 50, who was one of the stallholders who approached Mr Seah for help, said he has given up fighting the decision.
'We tried our best and there is nothing left to say. Now we just have to try to survive,' said Mr Goh, who has been running his stall at the market for 15 years and currently pays $2,200 in monthly rent. He will now have to fork out $2,860 in rent.
Another stallholder, who did not want to be named, returned one of his units and laid off two of his workers yesterday.
When contacted by The Straits Times, Mr Seah said he expects stallholders to approach him again for assistance.
On Sheng Siong's decision, he said it explained the reason for the rental hike but not the shortened contracts.
'From a business point of view, you want a lease of a reasonable tenure, and a one-year lease is rather short,' he said.
Sheng Siong won't scrap rental hike
It rejects appeal by stallholders at Serangoon market
By Jessica Lim & Cai Haoxiang
AN APPEAL to supermarket chain Sheng Siong to reconsider raising rent from today has been rejected.
In response to a letter from stallholders from the Serangoon Avenue 3 wet market last week, Sheng Siong's management said the rental hike was 'a decision made by our board of directors, after considering all factors, such as long-term and short-term costs and sustainability of the business model'.
It added that the outcome is inevitable and sought the understanding of stallholders.
The 30 per cent rental hike comes after the chain's controversial purchase of the wet market and four others - in Bukit Batok West Avenue 8, Fajar Road in Bukit Panjang, and two in Choa Chu Kang - from private company Heeton Holdings in December last year.
Previously, the supermarket chain's managing director Lim Hock Chee said the chain had no choice but to increase rentals because it had to pay bank interest fees, tax and maintenance fees after buying the five wet markets for about $25 million.
Stallholders from the Serangoon market had met Marine Parade GRC MP Seah Kian Peng last week to discuss the issue. The MP, who oversees the Serangoon area, wrote a letter to Sheng Siong on their behalf, asking it to reconsider the rent increase and the duration of the contracts, which were cut from two years to one year.
Butcher Richard Goh, 50, who was one of the stallholders who approached Mr Seah for help, said he has given up fighting the decision.
'We tried our best and there is nothing left to say. Now we just have to try to survive,' said Mr Goh, who has been running his stall at the market for 15 years and currently pays $2,200 in monthly rent. He will now have to fork out $2,860 in rent.
Another stallholder, who did not want to be named, returned one of his units and laid off two of his workers yesterday.
When contacted by The Straits Times, Mr Seah said he expects stallholders to approach him again for assistance.
On Sheng Siong's decision, he said it explained the reason for the rental hike but not the shortened contracts.
'From a business point of view, you want a lease of a reasonable tenure, and a one-year lease is rather short,' he said.
ST : Down and dirty in Defu
Apr 1, 2010
Down and dirty in Defu
Estate home to worst industrial polluters; tenants fret about uncertainty over leases
By Amresh Gunasingham
DEFU Lane has the dubious honour of being home to companies which are among the worst industrial polluters.
The industrial estate, which has for more than 30 years housed a hotchpotch of car workshops, scrap metal recyclers and construction firms, is where short cuts are being taken in waste disposal.
For dumping silt and oil into drains, 15 firms there have been fined $2,000 each since January 2008; 110 warning letters have been sent out.
The worrying thing is that the water in Defu's drains flows into the Marina Reservoir, which national water agency PUB estimates will come to provide for up to 10 per cent of Singapore's water needs; some of these drains will also eventually discharge their contents into the upcoming Serangoon and Punggol reservoirs.
Although the actual number of firms hauled up for pollution may be higher in other larger industrial estates, the figures are proportionately higher in Defu, the National Environment Agency (NEA) said in response to queries from The Straits Times.
The Environmental Protection & Management Act has set the upper limit of fines for companies prosecuted in court at $20,000 for first offenders and $50,000 for repeat offenders.
The pollution issue in Defu is a long- standing one, borne partly out of a lack of proper infrastructure, such as, for example, better roads instead of its bumpy dirt tracks, and proper waste storage tanks.
Anti-pollution guidelines set by the PUB require companies to use proper containers to store liquid and oily waste and to hire licensed contractors to dispose of this waste instead of throwing it into drains. But some companies are not following the guidelines.
With the Marina Reservoir already having been open for two years, the need to clean up Defu, which is part of its 10,000ha urbanised catchment area, has gathered pace.
The NEA, together with PUB and the Housing Board (HDB), has stepped up checks on industrial and commercial hubs in the catchment area, including Ang Mo Kio, Queenstown and Eunos.
Two years ago, the HDB unveiled plans to redevelop Defu, including laying down better roads and transport links, and providing waste storage facilities.
Because of the pending redevelopment, the HDB put about 85 per cent of its 1,000 Defu tenants on fixed-tenancy agreements of between one and three years.
The possibility that the companies may have to move out when the tenancies expire has caused uncertainty, and they are peeved.
A vexed manager of a scrap metal recycling firm who declined to be named said: 'We invested half a million dollars in new equipment just a year ago. If we have to move out in a year, why would we have moved here in the first place?'
An HDB spokesman explained that it was necessary to rejuvenate Defu 'to better manage the quality of discharge from the factories to comply with the water pollution control requirement'.
It added that the primary aim of the redevelopment of the estate was to enable tenants to leverage on the area's prime location.
It declined to elaborate on the redevelopment plan, such as the length of future leases or the types of industries it wanted for Defu.
The spokesman said the current tenants have 'ample time' to make relocation plans if necessary.
It added that it held half a dozen focus-group discussions with Defu tenants between May and November last year.
amreshg@sph.com.sg
Scrap metal recycling companies, car workshops and construction firms are among the tenants in Defu. Shoddy waste disposal practices in the industrial estate are a concern because water in Defu's drains flows into the Marina Reservoir. -- ST PHOTO: CHEW SENG KIM
Down and dirty in Defu
Estate home to worst industrial polluters; tenants fret about uncertainty over leases
By Amresh Gunasingham
DEFU Lane has the dubious honour of being home to companies which are among the worst industrial polluters.
The industrial estate, which has for more than 30 years housed a hotchpotch of car workshops, scrap metal recyclers and construction firms, is where short cuts are being taken in waste disposal.
For dumping silt and oil into drains, 15 firms there have been fined $2,000 each since January 2008; 110 warning letters have been sent out.
The worrying thing is that the water in Defu's drains flows into the Marina Reservoir, which national water agency PUB estimates will come to provide for up to 10 per cent of Singapore's water needs; some of these drains will also eventually discharge their contents into the upcoming Serangoon and Punggol reservoirs.
Although the actual number of firms hauled up for pollution may be higher in other larger industrial estates, the figures are proportionately higher in Defu, the National Environment Agency (NEA) said in response to queries from The Straits Times.
The Environmental Protection & Management Act has set the upper limit of fines for companies prosecuted in court at $20,000 for first offenders and $50,000 for repeat offenders.
The pollution issue in Defu is a long- standing one, borne partly out of a lack of proper infrastructure, such as, for example, better roads instead of its bumpy dirt tracks, and proper waste storage tanks.
Anti-pollution guidelines set by the PUB require companies to use proper containers to store liquid and oily waste and to hire licensed contractors to dispose of this waste instead of throwing it into drains. But some companies are not following the guidelines.
With the Marina Reservoir already having been open for two years, the need to clean up Defu, which is part of its 10,000ha urbanised catchment area, has gathered pace.
The NEA, together with PUB and the Housing Board (HDB), has stepped up checks on industrial and commercial hubs in the catchment area, including Ang Mo Kio, Queenstown and Eunos.
Two years ago, the HDB unveiled plans to redevelop Defu, including laying down better roads and transport links, and providing waste storage facilities.
Because of the pending redevelopment, the HDB put about 85 per cent of its 1,000 Defu tenants on fixed-tenancy agreements of between one and three years.
The possibility that the companies may have to move out when the tenancies expire has caused uncertainty, and they are peeved.
A vexed manager of a scrap metal recycling firm who declined to be named said: 'We invested half a million dollars in new equipment just a year ago. If we have to move out in a year, why would we have moved here in the first place?'
An HDB spokesman explained that it was necessary to rejuvenate Defu 'to better manage the quality of discharge from the factories to comply with the water pollution control requirement'.
It added that the primary aim of the redevelopment of the estate was to enable tenants to leverage on the area's prime location.
It declined to elaborate on the redevelopment plan, such as the length of future leases or the types of industries it wanted for Defu.
The spokesman said the current tenants have 'ample time' to make relocation plans if necessary.
It added that it held half a dozen focus-group discussions with Defu tenants between May and November last year.
amreshg@sph.com.sg
Scrap metal recycling companies, car workshops and construction firms are among the tenants in Defu. Shoddy waste disposal practices in the industrial estate are a concern because water in Defu's drains flows into the Marina Reservoir. -- ST PHOTO: CHEW SENG KIM
ASIAONE : Condo cheapos shamed
Business @ AsiaOne
Condo cheapos shamed
Condo management names and shames those who don't pay fees on time.
Thu, Apr 01, 2010
The New Paper
NAME and shame - and do so with a method more associated with loan sharks.
One condominium seems to have taken a leaf from their infamous 'Owe$Pay$' strategy by putting up the names of residents who are behind in their maintenance fees.
The Castle Green Condominium management committee (MC) has been pasting lists of residents' names on notice boards next to letterboxes and in lifts at the blocks where they live.
The lists, put up this month, also showed the amounts they owed.
The New Paper counted 36 names. The sums owed ranged from just over $1,000 to nearly $10,000.
Collectively, they owe nearly $70,000.
The maintenance fee for each unit in the 664-unit condo along Yio Chu Kang Road is about $700 every quarter. Owners of bigger units pay more.
The charges are collected every three months.
Next to each list was a notice warning that legal action may be taken against the those who fail to pay their fees.
The Castle Green MC, made up of elected residents, declined to comment. But a managing agent for another condo said that 'shame lists' are effective in making errant residents pay up.
The move has upset some residents at Castle Green - including those not on the list. They feel the MC is being overzealous.
The New Paper spoke to several of those who were named on the lists.
All of them said they had not received any calls or messages from the MC before they were named.
One of them, a resident in his 40s, said the MC's actions were 'high-handed'.
'It's not like we owe them for free - we do pay them interest (on the amount owed) and it's above market rate. If you put the money in a bank, I don't think you get that kind of interest,' he said.
The interest for overdue fees is 10 per cent a year.
He said he was in arrears for three quarters, or nine months. The reason, he claimed, was because he had a huge backlog of letters to deal with.
'I was engaged in other things,' he said. 'This was not my priority, but anyway I pay them interest. So what's the big deal?'
Another debtor, who declined to be named, said his failure to pay for two quarters was the result of a problem with his cheque.
'It's not right - they should constantly give us reminders, or they should call,' he said.
He said he hadn't seen the notices.
There were separate lists at each residential block, carrying the names of those in that particular block who were in arrears.
The complete list of debtors was stuck on a notice board near the condo's clubhouse.
Mr Kesavan Subramaniam, 42, a businessman, said he was unaware that his name was on the list.
He said he had bought the Castle Green apartment - his first condo purchase - a few months ago as an investment. He lives in an HDB flat and rents out his condo unit.
As a new owner, he said he was unsure about what he was supposed to do.
'They should ask for my permission first,' he said. 'If they send letters, and call me, and I say I don't want to pay them ' then okay.
'But it was only last month when they sent me a reminder letter to pay up.'
Even former owners were named.
One of them, a businesswoman, said she had used her apartment to house visiting pastors for her church, but sold it in January.
'I have so many condos,' she said. 'I'm not the one who settles the bills. My staff do it for me.'
'To tell you the truth, I don't even know my unit number.'
She insisted that she had 'settled everything' before she sold the apartment.
Another of those named is a woman in her 40s, who claimed she had never lived in the condominium.
It is co-owned with her ex-husband.
When they divorced 10 years ago, she said they had agreed that he would continue to make all the payments for the unit.
They had not sold it at that time as home prices were below what they had paid for the apartment.
'It's unfair that I am the one being blamed when he's the one who's not paying,' she said.
When told that her name was on the list, she said she was more upset with her ex-husband than with the condominium MC.
Indeed, she didn't see anything wrong with name-and-shame tactics.
'If they really didn't pay up, it's okay,' she said.
Short of cash
Her ex-husband said he did not pay up because he was short of money.
'There are so many things to pay,' he said. 'I settle the important ones, such the car loan and housing loan, first.'
Does the MC have the right to put up the notices?
Lawyer Bryan Tan said there is an issue only if they get the facts wrong.
'If, through an administrative error, the person paid and the system didn't capture the fact and you name the person, you would be defaming him or her,' he said.
He said it is a good idea to send out a reminder letter to give the person concerned a chance to say if he had already paid.
This would cut down the chance of this error.
The New Paper understands that the yearly expenditure for the condo is more than $1 million.
It has a large swimming pool and club house, as well as badminton, squash and tennis courts.
Some residents who were not on the list sympathised with those who had been shamed.
Embarrassing
One of them, a retiree in his 60s, said: 'What's the difference between this and the way the loansharks embarrass their debtors? It's the same - owe money, pay money.
'Only here, they don't splash paint.'
Another resident, in her 50s, who declined to be named, felt that this was an intrusion of privacy.
'It's not nice to write about people like that. It's not fair because you do not know the situation they may be in.'
She felt that those in the MC should have been more civil.
'Don't behave like loansharks. Sit down with these people. Find out why they aren't paying the charges. Maybe they can pay little by little.
'Let's solve the problem together, see what you can do to get the amount down,' she said.
This article was first published in The New Paper.
Condo cheapos shamed
Condo management names and shames those who don't pay fees on time.
Thu, Apr 01, 2010
The New Paper
NAME and shame - and do so with a method more associated with loan sharks.
One condominium seems to have taken a leaf from their infamous 'Owe$Pay$' strategy by putting up the names of residents who are behind in their maintenance fees.
The Castle Green Condominium management committee (MC) has been pasting lists of residents' names on notice boards next to letterboxes and in lifts at the blocks where they live.
The lists, put up this month, also showed the amounts they owed.
The New Paper counted 36 names. The sums owed ranged from just over $1,000 to nearly $10,000.
Collectively, they owe nearly $70,000.
The maintenance fee for each unit in the 664-unit condo along Yio Chu Kang Road is about $700 every quarter. Owners of bigger units pay more.
The charges are collected every three months.
Next to each list was a notice warning that legal action may be taken against the those who fail to pay their fees.
The Castle Green MC, made up of elected residents, declined to comment. But a managing agent for another condo said that 'shame lists' are effective in making errant residents pay up.
The move has upset some residents at Castle Green - including those not on the list. They feel the MC is being overzealous.
The New Paper spoke to several of those who were named on the lists.
All of them said they had not received any calls or messages from the MC before they were named.
One of them, a resident in his 40s, said the MC's actions were 'high-handed'.
'It's not like we owe them for free - we do pay them interest (on the amount owed) and it's above market rate. If you put the money in a bank, I don't think you get that kind of interest,' he said.
The interest for overdue fees is 10 per cent a year.
He said he was in arrears for three quarters, or nine months. The reason, he claimed, was because he had a huge backlog of letters to deal with.
'I was engaged in other things,' he said. 'This was not my priority, but anyway I pay them interest. So what's the big deal?'
Another debtor, who declined to be named, said his failure to pay for two quarters was the result of a problem with his cheque.
'It's not right - they should constantly give us reminders, or they should call,' he said.
He said he hadn't seen the notices.
There were separate lists at each residential block, carrying the names of those in that particular block who were in arrears.
The complete list of debtors was stuck on a notice board near the condo's clubhouse.
Mr Kesavan Subramaniam, 42, a businessman, said he was unaware that his name was on the list.
He said he had bought the Castle Green apartment - his first condo purchase - a few months ago as an investment. He lives in an HDB flat and rents out his condo unit.
As a new owner, he said he was unsure about what he was supposed to do.
'They should ask for my permission first,' he said. 'If they send letters, and call me, and I say I don't want to pay them ' then okay.
'But it was only last month when they sent me a reminder letter to pay up.'
Even former owners were named.
One of them, a businesswoman, said she had used her apartment to house visiting pastors for her church, but sold it in January.
'I have so many condos,' she said. 'I'm not the one who settles the bills. My staff do it for me.'
'To tell you the truth, I don't even know my unit number.'
She insisted that she had 'settled everything' before she sold the apartment.
Another of those named is a woman in her 40s, who claimed she had never lived in the condominium.
It is co-owned with her ex-husband.
When they divorced 10 years ago, she said they had agreed that he would continue to make all the payments for the unit.
They had not sold it at that time as home prices were below what they had paid for the apartment.
'It's unfair that I am the one being blamed when he's the one who's not paying,' she said.
When told that her name was on the list, she said she was more upset with her ex-husband than with the condominium MC.
Indeed, she didn't see anything wrong with name-and-shame tactics.
'If they really didn't pay up, it's okay,' she said.
Short of cash
Her ex-husband said he did not pay up because he was short of money.
'There are so many things to pay,' he said. 'I settle the important ones, such the car loan and housing loan, first.'
Does the MC have the right to put up the notices?
Lawyer Bryan Tan said there is an issue only if they get the facts wrong.
'If, through an administrative error, the person paid and the system didn't capture the fact and you name the person, you would be defaming him or her,' he said.
He said it is a good idea to send out a reminder letter to give the person concerned a chance to say if he had already paid.
This would cut down the chance of this error.
The New Paper understands that the yearly expenditure for the condo is more than $1 million.
It has a large swimming pool and club house, as well as badminton, squash and tennis courts.
Some residents who were not on the list sympathised with those who had been shamed.
Embarrassing
One of them, a retiree in his 60s, said: 'What's the difference between this and the way the loansharks embarrass their debtors? It's the same - owe money, pay money.
'Only here, they don't splash paint.'
Another resident, in her 50s, who declined to be named, felt that this was an intrusion of privacy.
'It's not nice to write about people like that. It's not fair because you do not know the situation they may be in.'
She felt that those in the MC should have been more civil.
'Don't behave like loansharks. Sit down with these people. Find out why they aren't paying the charges. Maybe they can pay little by little.
'Let's solve the problem together, see what you can do to get the amount down,' she said.
This article was first published in The New Paper.
CNA : S$170,000 cash premium for Bishan maisonette a unique case: analysts
Singapore News
S$170,000 cash premium for Bishan maisonette a unique case: analysts
By Liang Kaixin / Hoe Yeen Nie | Posted: 01 April 2010 0043 hrs
SINGAPORE: An executive maisonette in Bishan is on the verge of setting a new record for the most expensive HDB flat ever transacted.
The flat is set to be sold for S$900,000, including an eye-popping cash premium of S$170,000.
However, analysts say that such a sale would be an exception, rather than the norm.
MediaCorp understands the owner had originally asked for S$950,000, but this was brought down to S$900,000 by the buyer.
Chris Koh, an analyst with Dennis Wee Properties, said the valuation price of about S$750,000 is "reasonable" given the flat's location and size.
However, he noted that a cash-over-valuation of S$170,000 is a record.
Analysts said that this is likely a one-off event.
HDB data shows that similar executive maisonettes in Bishan have sold for much less, with median prices at S$615,000.
Analysts cautioned that before forking out the money, buyers should also consider the unit's resale potential.
Said David Poh, senior group district director of Propnex Realty: "You probably will want to sell much higher than any other executive maisonettes in Bishan. So that will mean your pool of buyers will shrink, you'll probably have very limited buyers to choose from, and you probably will face more challenges in reselling it than a normal maisonette in Bishan."
He said the market for resale flats remained strong, although the popularity of two recently-launched Build-to-Order projects - Sembawang RiverLodge and Fernvale Ridge in Sengkang - suggests that some buyers are turning to new HDB flats instead.
Still, he expects resale prices to go up five to eight per cent on average this year, slightly lower than the 8.2 per cent growth seen in 2009.
- CNA/yb
S$170,000 cash premium for Bishan maisonette a unique case: analysts
By Liang Kaixin / Hoe Yeen Nie | Posted: 01 April 2010 0043 hrs
SINGAPORE: An executive maisonette in Bishan is on the verge of setting a new record for the most expensive HDB flat ever transacted.
The flat is set to be sold for S$900,000, including an eye-popping cash premium of S$170,000.
However, analysts say that such a sale would be an exception, rather than the norm.
MediaCorp understands the owner had originally asked for S$950,000, but this was brought down to S$900,000 by the buyer.
Chris Koh, an analyst with Dennis Wee Properties, said the valuation price of about S$750,000 is "reasonable" given the flat's location and size.
However, he noted that a cash-over-valuation of S$170,000 is a record.
Analysts said that this is likely a one-off event.
HDB data shows that similar executive maisonettes in Bishan have sold for much less, with median prices at S$615,000.
Analysts cautioned that before forking out the money, buyers should also consider the unit's resale potential.
Said David Poh, senior group district director of Propnex Realty: "You probably will want to sell much higher than any other executive maisonettes in Bishan. So that will mean your pool of buyers will shrink, you'll probably have very limited buyers to choose from, and you probably will face more challenges in reselling it than a normal maisonette in Bishan."
He said the market for resale flats remained strong, although the popularity of two recently-launched Build-to-Order projects - Sembawang RiverLodge and Fernvale Ridge in Sengkang - suggests that some buyers are turning to new HDB flats instead.
Still, he expects resale prices to go up five to eight per cent on average this year, slightly lower than the 8.2 per cent growth seen in 2009.
- CNA/yb
ST : Yishun site for tender
Mar 31, 2010
Yishun site for tender
THE Housing Board (HDB) is launching a housing site at Yishun for tender today which will add another 700 homes to the housing stock.
The site, at the junction of Yishun Avenue 11 and Yishun Central, is being launched under the HDB's design, build and sell scheme (DBSS).
This allows private developers to design, build and sell the homes directly to flat buyers. Such flats come with finishes similar to private property but are subject to HDB rules.
The site is a short distance away from the Yishun Town Centre, Yishun MRT station and bus interchange, and schools such as Huamin Primary School, North View Secondary School and Chung Cheng High School.
The leasehold site has a gross floor area of about 828,000 sq ft which includes 10,700 sq ft of space for commercial facilities and childcare centre.
This is the latest in a string of land sale tenders by the Government recently, which is moving to address concerns over the shortage of supply in the property market.
HDB's latest site launch is in addition to its plan to offer at least 12,000 new build-to-order flats this year - or more if there is demand.
New projects will be spread across towns such as Punggol, Sengkang, Yishun and Jurong West.
HDB said yesterday it will continue to monitor the housing demand.
More sites for DBSS development will be made available in the coming months if there is demand. The latest tender will close at noon on May 18.
JESSICA CHEAM
Yishun site for tender
THE Housing Board (HDB) is launching a housing site at Yishun for tender today which will add another 700 homes to the housing stock.
The site, at the junction of Yishun Avenue 11 and Yishun Central, is being launched under the HDB's design, build and sell scheme (DBSS).
This allows private developers to design, build and sell the homes directly to flat buyers. Such flats come with finishes similar to private property but are subject to HDB rules.
The site is a short distance away from the Yishun Town Centre, Yishun MRT station and bus interchange, and schools such as Huamin Primary School, North View Secondary School and Chung Cheng High School.
The leasehold site has a gross floor area of about 828,000 sq ft which includes 10,700 sq ft of space for commercial facilities and childcare centre.
This is the latest in a string of land sale tenders by the Government recently, which is moving to address concerns over the shortage of supply in the property market.
HDB's latest site launch is in addition to its plan to offer at least 12,000 new build-to-order flats this year - or more if there is demand.
New projects will be spread across towns such as Punggol, Sengkang, Yishun and Jurong West.
HDB said yesterday it will continue to monitor the housing demand.
More sites for DBSS development will be made available in the coming months if there is demand. The latest tender will close at noon on May 18.
JESSICA CHEAM
ST : Soaring demand for HDB's new flats
Mar 31, 2010
Soaring demand for HDB's new flats
There are six applicants vying for each available flat at its latest launches
By Jessica Cheam
FRESH evidence has emerged of Singapore's red hot property market with the Housing Board's (HDB) latest launches attracting six applicants for every available flat.
A staggering 5,015 bids were received for 828 new flats in Sengkang and Sembawang by the application deadline of midnight on Monday.
The high level of interest outstrips that of recent years, when about four applications were typically received for each new flat, according to housing analysts.
Demand was particularly intense for five-roomers in Sengkang, where 1,341 applied for the 126 flats on offer - more than 10 applications for each flat.
This high level of interest follows January's launch of four-roomers at Limbang Green at Choa Chu Kang, which attracted 14 applications for every flat.
The blistering demand for the developments at Fernvale Ridge in Sengkang and Sembawang RiverLodge is being attributed to the escalating prices of resale flats, which set a fresh record in the last quarter of last year.
HDB resale flat prices have risen by some 40 per cent over the past three years. 'Demand has shifted from the resale market directly to HDB's new flat queue, as many first-time buyers are likely to have been priced out of the resale flat market,' said Dennis Wee Properties director Chris Koh.
PropNex chief executive Mohamed Ismail was not surprised by the high level of demand given that new flats were priced about 30 per cent lower than resale flats.
'Couples who do not need flats so urgently will definitely join the queue,' he noted.
HDB launched the Sengkang and Sembawang projects under its build-to-order (BTO) scheme, which builds only when a certain demand is reached and has a typical waiting time of three years. Combined, the projects offer 266 three-room, 436 four-room and 126 five-room units.
Fernvale Ridge's 216 four-room flats attracted 1,671 applications, while its 180 three-roomers received 491 bids.
At Sembawang RiverLodge, the 220 four-room flats pulled 1,234 applications, while the 86 three-roomers drew 278.
Another 126 two-room flats in Sembawang RiverLodge will not be offered for sale, but set aside for lower-income families at a later date, said HDB.
Mr Ismail said he expects the demand for new flats to remain high given that resale flat prices are likely to stay robust at least in the short-term.
But Mr Koh suggested that demand for BTO projects might be less than it seems if flat applicants do not take-up flats when they are finally offered to them.
'Some buyers who join the queue might be afraid to lose out, but are not that serious about buying,' he said.
HDB has offered 3,653 flats this quarter, with a further 1,200 BTO units to be launched in Punggol next month.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
Overwhelming response
FERNVALE RIDGE
· Five-roomers: 1,341 applications for 126 flats
· Four-roomers: 1,671 for 216
· Three-roomers: 491 for 180
SEMBAWANG RIVERLODGE
· Four-roomers: 1,234 applications for 220 flats
· Three-roomers: 278 for 86
*Another 126 two-roomers not for sale, but will be set aside for lower-income families at a later date
Soaring demand for HDB's new flats
There are six applicants vying for each available flat at its latest launches
By Jessica Cheam
FRESH evidence has emerged of Singapore's red hot property market with the Housing Board's (HDB) latest launches attracting six applicants for every available flat.
A staggering 5,015 bids were received for 828 new flats in Sengkang and Sembawang by the application deadline of midnight on Monday.
The high level of interest outstrips that of recent years, when about four applications were typically received for each new flat, according to housing analysts.
Demand was particularly intense for five-roomers in Sengkang, where 1,341 applied for the 126 flats on offer - more than 10 applications for each flat.
This high level of interest follows January's launch of four-roomers at Limbang Green at Choa Chu Kang, which attracted 14 applications for every flat.
The blistering demand for the developments at Fernvale Ridge in Sengkang and Sembawang RiverLodge is being attributed to the escalating prices of resale flats, which set a fresh record in the last quarter of last year.
HDB resale flat prices have risen by some 40 per cent over the past three years. 'Demand has shifted from the resale market directly to HDB's new flat queue, as many first-time buyers are likely to have been priced out of the resale flat market,' said Dennis Wee Properties director Chris Koh.
PropNex chief executive Mohamed Ismail was not surprised by the high level of demand given that new flats were priced about 30 per cent lower than resale flats.
'Couples who do not need flats so urgently will definitely join the queue,' he noted.
HDB launched the Sengkang and Sembawang projects under its build-to-order (BTO) scheme, which builds only when a certain demand is reached and has a typical waiting time of three years. Combined, the projects offer 266 three-room, 436 four-room and 126 five-room units.
Fernvale Ridge's 216 four-room flats attracted 1,671 applications, while its 180 three-roomers received 491 bids.
At Sembawang RiverLodge, the 220 four-room flats pulled 1,234 applications, while the 86 three-roomers drew 278.
Another 126 two-room flats in Sembawang RiverLodge will not be offered for sale, but set aside for lower-income families at a later date, said HDB.
Mr Ismail said he expects the demand for new flats to remain high given that resale flat prices are likely to stay robust at least in the short-term.
But Mr Koh suggested that demand for BTO projects might be less than it seems if flat applicants do not take-up flats when they are finally offered to them.
'Some buyers who join the queue might be afraid to lose out, but are not that serious about buying,' he said.
HDB has offered 3,653 flats this quarter, with a further 1,200 BTO units to be launched in Punggol next month.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
Overwhelming response
FERNVALE RIDGE
· Five-roomers: 1,341 applications for 126 flats
· Four-roomers: 1,671 for 216
· Three-roomers: 491 for 180
SEMBAWANG RIVERLODGE
· Four-roomers: 1,234 applications for 220 flats
· Three-roomers: 278 for 86
*Another 126 two-roomers not for sale, but will be set aside for lower-income families at a later date
ST : Warehouses: S'pore now a costlier choice
Mar 31, 2010
Warehouses: S'pore now a costlier choice
SINGAPORE is becoming a relatively more expensive location for businesses to site their warehouses.
According to a survey of 139 cities worldwide conducted by Colliers International, the Republic was the ninth most expensive city for prime logistics space during the second half of last year, even though rents remained stable.
In the previous six-month period, Singapore had ranked 14th.
The Colliers report cites the Singapore dollar strengthening against the US dollar and larger falls in rents in cities such as Seoul, Sao Paolo and Honolulu, as key reasons for the city state becoming more expensive relative to other locations.
In the second half of last year, rents for prime warehouse space in the MacPherson area remained relatively stable at about $1.50 per sq ft (psf) per month.
Warehouse space made up about 18.7 per cent of total industrial space in Singapore as of end-December last year.
Colliers noted that the industrial property market here remained largely stable in the first quarter on the back of improving business expectations in manufacturing.
First-quarter leasing activities were dominated by relocations and renewals, but expansions by firms remained scarce.
Colliers International's director of research and advisory Tay Huey Ying is upbeat about future prospects noting that during the downturn last year, many firms were left with spare capacity and had to close down plants. 'So they are now utilising their spare capacity and, hopefully, by the second half, some of them might be looking to expand.'
And, with recovery in the manufacturing sector gaining traction, demand for space could rise.
Rentals of conventional industrial space are forecast to continue to firm up - rising by up to 5 per cent over the next three quarters this year, Colliers said.
JOYCE TEO
Warehouses: S'pore now a costlier choice
SINGAPORE is becoming a relatively more expensive location for businesses to site their warehouses.
According to a survey of 139 cities worldwide conducted by Colliers International, the Republic was the ninth most expensive city for prime logistics space during the second half of last year, even though rents remained stable.
In the previous six-month period, Singapore had ranked 14th.
The Colliers report cites the Singapore dollar strengthening against the US dollar and larger falls in rents in cities such as Seoul, Sao Paolo and Honolulu, as key reasons for the city state becoming more expensive relative to other locations.
In the second half of last year, rents for prime warehouse space in the MacPherson area remained relatively stable at about $1.50 per sq ft (psf) per month.
Warehouse space made up about 18.7 per cent of total industrial space in Singapore as of end-December last year.
Colliers noted that the industrial property market here remained largely stable in the first quarter on the back of improving business expectations in manufacturing.
First-quarter leasing activities were dominated by relocations and renewals, but expansions by firms remained scarce.
Colliers International's director of research and advisory Tay Huey Ying is upbeat about future prospects noting that during the downturn last year, many firms were left with spare capacity and had to close down plants. 'So they are now utilising their spare capacity and, hopefully, by the second half, some of them might be looking to expand.'
And, with recovery in the manufacturing sector gaining traction, demand for space could rise.
Rentals of conventional industrial space are forecast to continue to firm up - rising by up to 5 per cent over the next three quarters this year, Colliers said.
JOYCE TEO
ST : Private resale home prices up again
Mar 31, 2010
Private resale home prices up again
Prices for mass market and landed homes hit new high: DTZ report
By Joyce Teo
PRICES of private, leasehold resale homes have shot past their previous peak - in late 2007 - according to a new report by property consultancy DTZ.
The latest price rises for this segment, dominated by upgraders, while relatively modest, were enough to push average prices past the previous high. Landed resale homes saw the biggest price rises in the first quarter of the year to reach another new high while prime freehold prices edged nearer their previous peak.
Sales of new homes were strong too. A CBRE report said nearly 4,000 new homes were sold in the first quarter - more than double the 1,860 in the previous quarter.
Data from DTZ Research shows that prices of leasehold non-landed homes rose 2.1 per cent to $623 per sq ft (psf) in the first quarter, surpassing the $615 psf achieved in the fourth quarter of 2007.
DTZ said prices of these homes saw the least increase among the main property categories as they were already at high levels and there was more resistance to higher prices in the mass market.
Prices of prime freehold non-landed homes rose 3.7 per cent to $1,456 psf, 1.9 per cent below the previous peak. Luxury non-landed home prices rose 4.2 per cent to average $2,500 psf, which is 10.7 per cent below the previous peak, said DTZ.
The Singapore Residential Price Index shows private home prices rose a mere 0.2 per cent month-on-month last month after a 2.2 per cent rise in January.
Landed homes turned in another stellar showing in the first quarter, up 5.7 per cent to another new high of $1,529 psf.
This sector has now rebounded by 28.2 per cent from its bottom a year ago. It was already the star performer of the private home market last year, rising far more in price than other housing types, and lifting it safely above the 2008 peak.
Urban Redevelopment Authority data shows landed home prices jumped 7.7 per cent last year, compared with the 0.5 per cent rise in prices of non-landed homes.
The leasing market, DTZ said, was stable, with rental values remaining unchanged for the third straight quarter. The average rental value of prime non-landed homes was $3.32 psf a month, still 32.8 per cent below the high in the second quarter of 2008, it said.
The lower yields, however, had little impact on demand for new homes, as did recent government measures.
'Many investors are buying in anticipation of a future rise in rents and prices as the economy is improving and the long-term fundamentals of Singapore are strong,' said DTZ's executive director (residential), Ms Margaret Thean.
The firm's head of South-east Asia research, Ms Chua Chor Hoon, cautioned that more government cooling measures may be introduced if buying fever and price rises keep up - or intensify.
Said Colliers International director for research and advisory Tay Huey Ying: 'At the rate the market is moving right now, there is some cause for concern. But unless mass market prices continue to rise by more than 5 per cent a quarter, the Government may not step in.'
Ms Chua expects prices to rise more moderately - by 5 per cent to 15 per cent this year. 'The rise in landed home prices is expected to moderate this year, considering it has already risen quite a bit.'
CBRE puts the rise in first-quarter home prices at 2 per cent to 5 per cent over the fourth quarter of last year, supported mainly by resale transactions as developers have maintained prices of new launches in the same locations at last quarter's levels.
For instance, deals at The Sail @ Marina Bay averaged $2,213 psf in the first quarter, up from $2,101 psf in the previous quarter while Ardmore Park units sold at $2,982 psf, up from $2,936 psf.
The high volume of new homes sold this quarter compared with last quarter shows the resilience of residential demand from both owner-occupiers and investors, CBRE said.
Some new projects that did well recently include West Coast's The Vision, which sold 230 units, and 76@Shenton, which sold all its 202 units.
Most new launches in the first quarter were prime freehold projects; private home owners made up two-thirds of the buyers, with HDB upgraders accounting for the rest, said CBRE's executive director, residential, Mr Joseph Tan. The opposite was true a year ago, when most new launches were mass market ones, he said.
Foreigners bought 23.5 per cent of the new homes in the first quarter, with the top three nationalities being Indonesian, Malaysian and Chinese.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
Up and up
· Nearly 4,000 new homes sold in Q1
· Resale leasehold non-landed: $623 psf
· Resale prime freehold non-landed: $1,456 psf
· Resale luxury non-landed: $2,500 psf
Private resale home prices up again
Prices for mass market and landed homes hit new high: DTZ report
By Joyce Teo
PRICES of private, leasehold resale homes have shot past their previous peak - in late 2007 - according to a new report by property consultancy DTZ.
The latest price rises for this segment, dominated by upgraders, while relatively modest, were enough to push average prices past the previous high. Landed resale homes saw the biggest price rises in the first quarter of the year to reach another new high while prime freehold prices edged nearer their previous peak.
Sales of new homes were strong too. A CBRE report said nearly 4,000 new homes were sold in the first quarter - more than double the 1,860 in the previous quarter.
Data from DTZ Research shows that prices of leasehold non-landed homes rose 2.1 per cent to $623 per sq ft (psf) in the first quarter, surpassing the $615 psf achieved in the fourth quarter of 2007.
DTZ said prices of these homes saw the least increase among the main property categories as they were already at high levels and there was more resistance to higher prices in the mass market.
Prices of prime freehold non-landed homes rose 3.7 per cent to $1,456 psf, 1.9 per cent below the previous peak. Luxury non-landed home prices rose 4.2 per cent to average $2,500 psf, which is 10.7 per cent below the previous peak, said DTZ.
The Singapore Residential Price Index shows private home prices rose a mere 0.2 per cent month-on-month last month after a 2.2 per cent rise in January.
Landed homes turned in another stellar showing in the first quarter, up 5.7 per cent to another new high of $1,529 psf.
This sector has now rebounded by 28.2 per cent from its bottom a year ago. It was already the star performer of the private home market last year, rising far more in price than other housing types, and lifting it safely above the 2008 peak.
Urban Redevelopment Authority data shows landed home prices jumped 7.7 per cent last year, compared with the 0.5 per cent rise in prices of non-landed homes.
The leasing market, DTZ said, was stable, with rental values remaining unchanged for the third straight quarter. The average rental value of prime non-landed homes was $3.32 psf a month, still 32.8 per cent below the high in the second quarter of 2008, it said.
The lower yields, however, had little impact on demand for new homes, as did recent government measures.
'Many investors are buying in anticipation of a future rise in rents and prices as the economy is improving and the long-term fundamentals of Singapore are strong,' said DTZ's executive director (residential), Ms Margaret Thean.
The firm's head of South-east Asia research, Ms Chua Chor Hoon, cautioned that more government cooling measures may be introduced if buying fever and price rises keep up - or intensify.
Said Colliers International director for research and advisory Tay Huey Ying: 'At the rate the market is moving right now, there is some cause for concern. But unless mass market prices continue to rise by more than 5 per cent a quarter, the Government may not step in.'
Ms Chua expects prices to rise more moderately - by 5 per cent to 15 per cent this year. 'The rise in landed home prices is expected to moderate this year, considering it has already risen quite a bit.'
CBRE puts the rise in first-quarter home prices at 2 per cent to 5 per cent over the fourth quarter of last year, supported mainly by resale transactions as developers have maintained prices of new launches in the same locations at last quarter's levels.
For instance, deals at The Sail @ Marina Bay averaged $2,213 psf in the first quarter, up from $2,101 psf in the previous quarter while Ardmore Park units sold at $2,982 psf, up from $2,936 psf.
The high volume of new homes sold this quarter compared with last quarter shows the resilience of residential demand from both owner-occupiers and investors, CBRE said.
Some new projects that did well recently include West Coast's The Vision, which sold 230 units, and 76@Shenton, which sold all its 202 units.
Most new launches in the first quarter were prime freehold projects; private home owners made up two-thirds of the buyers, with HDB upgraders accounting for the rest, said CBRE's executive director, residential, Mr Joseph Tan. The opposite was true a year ago, when most new launches were mass market ones, he said.
Foreigners bought 23.5 per cent of the new homes in the first quarter, with the top three nationalities being Indonesian, Malaysian and Chinese.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
Up and up
· Nearly 4,000 new homes sold in Q1
· Resale leasehold non-landed: $623 psf
· Resale prime freehold non-landed: $1,456 psf
· Resale luxury non-landed: $2,500 psf
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