Prime office rentals to rise 'strongly' in H2
05:55 AM Jun 02, 2010
by Julie Quek
SINGAPORE - Office rentals for international Grade A office space in Singapore's prime financial district look set to climb higher by at least 25 per cent over the next two years.
This was the view of property analysts who believe that office property rents have already reached bottom, and will likely see a strong pick-up from the second half of this year.
"International Grade A" refers to a new generation of office buildings in Singapore that are less than 10 years old, such as the Marina Bay Financial Centre (MBFC) and One Raffles Quay.
However, office rentals for Grade A-minus or Grade B buildings - developments in the financial district that are more than 10 years old - may still remain soft, said Mr Donald Han, managing director of Cushman and Wakefield.
A key driver propelling rents up is the strong demand from financial institutions and law firms for such International Grade A office property, said Mr Han.
He pointed out that these big players are moving to the MBFC so that they can expand and consolidate all their offices in one location.
"Companies are also looking to expand their offices this year, due mainly to the stronger than expected Singapore economy seen in the first quarter," said Mr Han.
Mr Tony Darwell, Nomura Singapore's executive director, noted that during from late 2007 to end of 2008, many companies faced a shortage of available office property space in Singapore.
As a result, many banks had to compromise and site their offices in different locations, said Mr Darwell.
Over the past six months, he has seen a surge of precommitment deals for International Grade A office space.
"In fact, some companies are even committing as early as one year before their current lease expires," said Mr Darwell.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Wednesday, June 2, 2010
BT : Housing problem worse than US
Business Times - 02 Jun 2010
Housing problem worse than US
It could stoke public discontent, warns a central bank adviser
(BEIJING) China's housing market problems are worse than those in the US before the global downturn as they could stoke public discontent, warned a central bank adviser.
The comments were made before China's State Council, or cabinet, announced that it would 'gradually reform the real estate tax' - the first official sign of a possible annual levy on residential housing aimed at reining in soaring prices.
'The housing market problem in China is actually much, much more fundamental, much bigger than the housing market problem in the US and UK before your financial crisis,' said Li Daokui, a member of the bank's monetary policy committee. 'It is more than (just) a bubble problem,' he told the Financial Times in an interview published yesterday.
The property market in the US collapsed as too many people were unable to repay their high-risk, or sub-prime mortgages, leading to a credit crunch in which thousands lost their homes and lending dried up. China has recently introduced a range of measures to prevent the growth of asset bubbles and soaring property prices.
The latest tax plan was expected to discourage property speculation and help replenish the coffers of local governments, which have been severely depleted by an investment binge over the past year, Chinese media reports have said.
Mr Li said that recent government measures to rein in the property market needed to be part of a long-term push to bring high housing prices under control, the Financial Times reported.
He warned that the high cost of housing could hamper future growth by slowing urbanisation. Rising prices were also a potential political flashpoint, especially among younger people who felt locked out of having their own home.
'When prices go up, many people, especially young people, become very anxious,' he said. 'It is a social problem.'
He added that there were still signs that the economy was overheating and recommended modest increases in deposit interest rates and the value of the Chinese currency, the report said.
Authorities have tightened restrictions on advance sales of new property developments, introduced new curbs on loans for third home purchases, and raised minimum downpayments for second homes.
Official data showed that real estate prices in 70 cities jumped 12.8 per cent in April, the fastest year-on-year rise for a single month in five years. -- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Stacking it higher: Li Daokui, a member of the bank's monetary policy committee, says that recent measures to rein in the property market needs to be part of a long-term push to bring high housing prices under control
Housing problem worse than US
It could stoke public discontent, warns a central bank adviser
(BEIJING) China's housing market problems are worse than those in the US before the global downturn as they could stoke public discontent, warned a central bank adviser.
The comments were made before China's State Council, or cabinet, announced that it would 'gradually reform the real estate tax' - the first official sign of a possible annual levy on residential housing aimed at reining in soaring prices.
'The housing market problem in China is actually much, much more fundamental, much bigger than the housing market problem in the US and UK before your financial crisis,' said Li Daokui, a member of the bank's monetary policy committee. 'It is more than (just) a bubble problem,' he told the Financial Times in an interview published yesterday.
The property market in the US collapsed as too many people were unable to repay their high-risk, or sub-prime mortgages, leading to a credit crunch in which thousands lost their homes and lending dried up. China has recently introduced a range of measures to prevent the growth of asset bubbles and soaring property prices.
The latest tax plan was expected to discourage property speculation and help replenish the coffers of local governments, which have been severely depleted by an investment binge over the past year, Chinese media reports have said.
Mr Li said that recent government measures to rein in the property market needed to be part of a long-term push to bring high housing prices under control, the Financial Times reported.
He warned that the high cost of housing could hamper future growth by slowing urbanisation. Rising prices were also a potential political flashpoint, especially among younger people who felt locked out of having their own home.
'When prices go up, many people, especially young people, become very anxious,' he said. 'It is a social problem.'
He added that there were still signs that the economy was overheating and recommended modest increases in deposit interest rates and the value of the Chinese currency, the report said.
Authorities have tightened restrictions on advance sales of new property developments, introduced new curbs on loans for third home purchases, and raised minimum downpayments for second homes.
Official data showed that real estate prices in 70 cities jumped 12.8 per cent in April, the fastest year-on-year rise for a single month in five years. -- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Stacking it higher: Li Daokui, a member of the bank's monetary policy committee, says that recent measures to rein in the property market needs to be part of a long-term push to bring high housing prices under control
TODAY ONLINE : Realtors body does not condone 'scare tactics'
Realtors body does not condone 'scare tactics'
05:55 AM Jun 01, 2010
by Joanne Chan
SINGAPORE - Property agents have been urged to be responsible in the light of "scare tactics" on clients' concerns.
Emails forwarded to MediaCorp detailed how some agents are highlighting the Government's recent land sales to lower client expectations of property prices. These emails detail correspondence between agents of real estate firm ERA.
In one email, a senior division director drew attention to a news report on land released for private homes. He called on agents to use the news as "a bargaining point to lower down your private residential seller's high expectations".
This prompted another agent to disclose that she closed a deal after telling her client that the "market is going to crash".
Industry observers said the gap between buyers' and sellers' expectations is widening due to mixed market sentiment.
ERA said it did not have specific guidelines on how agents should communicate with clients, as long as the information presented is factually correct. Mr Eugene Lim, ERA Asia-Pacific's associate director, said: "It could be wrong usage of the word or overly strong usage of the word". What the agent was trying to say was that there will be downward pressure on prices because supply is increasing. It is also a matter of perspective and opinion.
"Today's sellers" are not "spooked by language", as most have sufficient information to form an opinion, he added.
Mr Steven Tan, advisory committee member of Singapore Accredited Estate Agencies (SAEA), said such conduct is not condoned by the industry. Telling the seller that the market is going to crash will ultimately make the seller dispose of his property at a price below expectation.
"Instead, the agent should provide more comprehensive analysis of the market condition and get the best possible price for the seller," he said.
Dr Tan Tee Khoon, SAEA's chief executive officer, said it may not have been a scare tactic. Agents may be informing sellers about the likely implications of the land release, and if the latter intends to postpone selling - thinking that prices will continue to rise - such expectations may not be realised. It could have been "responsible advice to make hay while the sun shines and sell at the best price".
It is also "not untrue that prices may falter in due course" and sellers may not get the best deal if they delay, he added.
The National Development Ministry is setting up a statutory board, the Council for Estate Agencies, to implement a regulatory framework for real estate agents. Consumers who feel they have been disadvantaged or misled by agencies or agents can report such matters to the new council.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jun 01, 2010
by Joanne Chan
SINGAPORE - Property agents have been urged to be responsible in the light of "scare tactics" on clients' concerns.
Emails forwarded to MediaCorp detailed how some agents are highlighting the Government's recent land sales to lower client expectations of property prices. These emails detail correspondence between agents of real estate firm ERA.
In one email, a senior division director drew attention to a news report on land released for private homes. He called on agents to use the news as "a bargaining point to lower down your private residential seller's high expectations".
This prompted another agent to disclose that she closed a deal after telling her client that the "market is going to crash".
Industry observers said the gap between buyers' and sellers' expectations is widening due to mixed market sentiment.
ERA said it did not have specific guidelines on how agents should communicate with clients, as long as the information presented is factually correct. Mr Eugene Lim, ERA Asia-Pacific's associate director, said: "It could be wrong usage of the word or overly strong usage of the word". What the agent was trying to say was that there will be downward pressure on prices because supply is increasing. It is also a matter of perspective and opinion.
"Today's sellers" are not "spooked by language", as most have sufficient information to form an opinion, he added.
Mr Steven Tan, advisory committee member of Singapore Accredited Estate Agencies (SAEA), said such conduct is not condoned by the industry. Telling the seller that the market is going to crash will ultimately make the seller dispose of his property at a price below expectation.
"Instead, the agent should provide more comprehensive analysis of the market condition and get the best possible price for the seller," he said.
Dr Tan Tee Khoon, SAEA's chief executive officer, said it may not have been a scare tactic. Agents may be informing sellers about the likely implications of the land release, and if the latter intends to postpone selling - thinking that prices will continue to rise - such expectations may not be realised. It could have been "responsible advice to make hay while the sun shines and sell at the best price".
It is also "not untrue that prices may falter in due course" and sellers may not get the best deal if they delay, he added.
The National Development Ministry is setting up a statutory board, the Council for Estate Agencies, to implement a regulatory framework for real estate agents. Consumers who feel they have been disadvantaged or misled by agencies or agents can report such matters to the new council.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
BT : Property sales dive 70% in Beijing and Shanghai
Business Times - 02 Jun 2010
Property sales dive 70% in Beijing and Shanghai
Developers delay launches on govt tightening measures
(BEIJING) Property sales in Beijing, Shanghai and Shenzhen fell as much as 70 per cent in May as developers delay sales following government tightening measures.
In China's capital Beijing property signings slumped nearly 70 per cent to 3,357 in May from April, the Shanghai Securities News reported, citing data from bjfdc.gov.cn. In Shanghai, the nation's financial centre, transactions may have dropped about 70 per cent to 2,550 signings, the paper reported, and in the industrial city of Shenzhen, sales fell 62 per cent.
China has restricted pre-sales by developers, curbed loans for third-home purchases, raised minimum mortgage rates and tightened down-payment requirements for second-home purchases. The government is trying to peel back a stimulus plan and US$1.4 trillion lending binge that revived economic growth while raising the risk of asset bubbles.
'The government should have put in tougher enforcement earlier to prevent the high prices,' said Lu Qilin, a Shanghai- based researcher at UWin. 'If the government doesn't stop this soon, the bubble will burst.'
An index tracking 34 real estate firms traded in Shanghai fell 2.2 per cent as of 1:13 pm yesterday, extending this year's loss to 30 per cent. China Vanke Co, the nation's biggest listed developer, dropped 1.3 per cent to 7.12 yuan. Poly Real Estate Group Co declined 3.9 per cent to 10.62 yuan.
Copper, aluminium and zinc also declined on concern slumping property transactions and slowing manufacturing growth in China, the world's biggest metals consumer, may hurt demand for commodities. Lead, nickel and tin fell.
Real estate prices rose a record 12.8 per cent in April from a year earlier, the National Bureau of Statistics said on May 11. Transactions for new homes in Shanghai fell 56 per cent in the month to May 16 from a month ago, to 520,000 square metres (5.6 million square feet), Mr Lu said.
Most developers are postponing project launch dates and are waiting to see market developments before finally pricing new projects, said Oscar Choi and Marco Sze, Hong Kong-based analysts at Citigroup Inc in a report distributed yesterday.
China's property market problems are worse than in the US or UK before the financial crisis, the Financial Times said yesterday, citing an interview with Li Daokui, a member of the Chinese central bank's monetary policy committee. The country's housing market problems combine a possible bubble with the risk of social discontent, he said.
China's State Council approved the National Development and Reform Commission's gradual property tax reform, according to a statement on the Chinese government website on Monday.
Shanghai's plan to begin a property tax on residential real estate has been submitted to the Chinese central government for review, the China Securities Journal reported on Monday. The city may impose the tax on people without residence permits and those who do not file income tax declarations for three years or more, the report said, citing unidentified people.
Shanghai developers have delayed sales of new residences because the municipal government hasn't announced its property policy, the Oriental Morning Post reported on Monday, citing unidentified developers. Only 46 of a scheduled 96 developments were put on sale for the month as of May 28, the newspaper reported, citing Soufun.com, a real estate data research website.
'We expect more measures to be introduced on developers, especially those to monitor construction schedule and restrict cash flow, thus pushing developers to cut the price earlier,' the Citigroup analysts wrote.
Shi Weijian, an analyst at Jianghai Securities, said Shanghai's government may announce a property tax as early as this month, which will likely be implemented at the end of the year. Shanghai home prices may fall between 25 per cent and 30 per cent from the introduction, he said.
Gao Jian, a Shanghai-based analyst at Northeast Securities, forecast a drop of prices of about 20 per cent should a property tax come into effect.
'We've seen downward pressure of housing transactions and prices, and the correction is likely to continue in the next one to two years,' he said. -- Bloomberg
Housing problem worse than US, Page 16
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Pulling the brakes: China has restricted pre-sales by developers, curbed loans for third-home purchases, raised minimum mortgage rates and tightened down-payment requirements for second-home purchases
Property sales dive 70% in Beijing and Shanghai
Developers delay launches on govt tightening measures
(BEIJING) Property sales in Beijing, Shanghai and Shenzhen fell as much as 70 per cent in May as developers delay sales following government tightening measures.
In China's capital Beijing property signings slumped nearly 70 per cent to 3,357 in May from April, the Shanghai Securities News reported, citing data from bjfdc.gov.cn. In Shanghai, the nation's financial centre, transactions may have dropped about 70 per cent to 2,550 signings, the paper reported, and in the industrial city of Shenzhen, sales fell 62 per cent.
China has restricted pre-sales by developers, curbed loans for third-home purchases, raised minimum mortgage rates and tightened down-payment requirements for second-home purchases. The government is trying to peel back a stimulus plan and US$1.4 trillion lending binge that revived economic growth while raising the risk of asset bubbles.
'The government should have put in tougher enforcement earlier to prevent the high prices,' said Lu Qilin, a Shanghai- based researcher at UWin. 'If the government doesn't stop this soon, the bubble will burst.'
An index tracking 34 real estate firms traded in Shanghai fell 2.2 per cent as of 1:13 pm yesterday, extending this year's loss to 30 per cent. China Vanke Co, the nation's biggest listed developer, dropped 1.3 per cent to 7.12 yuan. Poly Real Estate Group Co declined 3.9 per cent to 10.62 yuan.
Copper, aluminium and zinc also declined on concern slumping property transactions and slowing manufacturing growth in China, the world's biggest metals consumer, may hurt demand for commodities. Lead, nickel and tin fell.
Real estate prices rose a record 12.8 per cent in April from a year earlier, the National Bureau of Statistics said on May 11. Transactions for new homes in Shanghai fell 56 per cent in the month to May 16 from a month ago, to 520,000 square metres (5.6 million square feet), Mr Lu said.
Most developers are postponing project launch dates and are waiting to see market developments before finally pricing new projects, said Oscar Choi and Marco Sze, Hong Kong-based analysts at Citigroup Inc in a report distributed yesterday.
China's property market problems are worse than in the US or UK before the financial crisis, the Financial Times said yesterday, citing an interview with Li Daokui, a member of the Chinese central bank's monetary policy committee. The country's housing market problems combine a possible bubble with the risk of social discontent, he said.
China's State Council approved the National Development and Reform Commission's gradual property tax reform, according to a statement on the Chinese government website on Monday.
Shanghai's plan to begin a property tax on residential real estate has been submitted to the Chinese central government for review, the China Securities Journal reported on Monday. The city may impose the tax on people without residence permits and those who do not file income tax declarations for three years or more, the report said, citing unidentified people.
Shanghai developers have delayed sales of new residences because the municipal government hasn't announced its property policy, the Oriental Morning Post reported on Monday, citing unidentified developers. Only 46 of a scheduled 96 developments were put on sale for the month as of May 28, the newspaper reported, citing Soufun.com, a real estate data research website.
'We expect more measures to be introduced on developers, especially those to monitor construction schedule and restrict cash flow, thus pushing developers to cut the price earlier,' the Citigroup analysts wrote.
Shi Weijian, an analyst at Jianghai Securities, said Shanghai's government may announce a property tax as early as this month, which will likely be implemented at the end of the year. Shanghai home prices may fall between 25 per cent and 30 per cent from the introduction, he said.
Gao Jian, a Shanghai-based analyst at Northeast Securities, forecast a drop of prices of about 20 per cent should a property tax come into effect.
'We've seen downward pressure of housing transactions and prices, and the correction is likely to continue in the next one to two years,' he said. -- Bloomberg
Housing problem worse than US, Page 16
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Pulling the brakes: China has restricted pre-sales by developers, curbed loans for third-home purchases, raised minimum mortgage rates and tightened down-payment requirements for second-home purchases
BT : JTC awards Tampines industrial site tender
Business Times - 02 Jun 2010
JTC awards Tampines industrial site tender
JTC Corporation yesterday said it has awarded the tender for an industrial site at Tampines Industrial Avenue 4 to Soon Hock Tuas Development, which trumped nine other bidders at the close of the government's tender on May 12.
Soon Hock Tuas Development submitted the highest bid of $33.1 million for the 30-year-lease plot, which has a land area of 538,000 square feet. The price works out to $62 per square foot per plot ratio (psf ppr). The site has a gross plot ratio of 0.64 to 0.8.
Soon Hock Tuas Development's bid was slightly higher than market expectations. When the site was launched, analysts said that the land parcel can fetch $40-$50 psf ppr, which translates to some $17.2 to $21.5 million for the entire plot.
The developer's bid was also 7 per cent higher than the second highest bid of $31 million put in by Tat Hong Holdings and more than three times the amount of the lowest bid from Yee Lee Development, which offered $10.2 million.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
JTC awards Tampines industrial site tender
JTC Corporation yesterday said it has awarded the tender for an industrial site at Tampines Industrial Avenue 4 to Soon Hock Tuas Development, which trumped nine other bidders at the close of the government's tender on May 12.
Soon Hock Tuas Development submitted the highest bid of $33.1 million for the 30-year-lease plot, which has a land area of 538,000 square feet. The price works out to $62 per square foot per plot ratio (psf ppr). The site has a gross plot ratio of 0.64 to 0.8.
Soon Hock Tuas Development's bid was slightly higher than market expectations. When the site was launched, analysts said that the land parcel can fetch $40-$50 psf ppr, which translates to some $17.2 to $21.5 million for the entire plot.
The developer's bid was also 7 per cent higher than the second highest bid of $31 million put in by Tat Hong Holdings and more than three times the amount of the lowest bid from Yee Lee Development, which offered $10.2 million.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Tuesday, June 1, 2010
ST : Pender Court sold for $95m, 2 other sites for sale
Jun 1, 2010
Pender Court sold for $95m, 2 other sites for sale
PENDER Court, a 48-unit condominium off West Coast Highway, has been sold en bloc for $95 million.
This land price works out to $1,007 per sq ft (psf) on the potential gross floor area. The price is shy of the owners' asking price of $100million to $108 million but is way above the $80 million price negotiated in an ultimately abortive sale in the boom days of July 2007.
Bravo Building Construction called off the sale in early 2008. It had also pulled out of two other collective sale deals.
Owners of the 48 units will get close to $2 million each.
Credo Real Estate, which marketed the site, confirmed only the price and declined to comment further as the sale committee is not yet ready to make a formal announcement.
Meanwhile, Waldorf Mansions off Balestier Road and Foh Pin Mansion in Charlton Road have been put up for collective sale.
Both freehold estates have an indicative price of about $22.5 million each. At the 16-unit Waldorf Mansions, this equates to $709 psf per plot ratio, inclusive of a development charge of $104,000.
Credo Real Estate said the buyer can expect to break even at about $1,100 psf.
Built in the 1990s, the site has an allowed gross floor area of 31,875 sq ft. The buyer can redevelop the site into a project with 50 apartments of 600 sq ft on average, said Credo.
As for the 30-year-old, 21-unit Foh Pin Mansion, it can be redeveloped only into a three-storey mixed landed housing development as the land has been rezoned, said marketing agent Savills Singapore.
The buyer may undertake a cluster housing development, said Savills director of investment sales Suzie Mok.
A price of $21 million or $22 million will translate to a land price of about $610 psf to $650 psf, she said.
The tender for Waldorf Mansions closes on June 29 while the tender for Foh Pin closes a day earlier on June 28.
JOYCE TEO
Pender Court sold for $95m, 2 other sites for sale
PENDER Court, a 48-unit condominium off West Coast Highway, has been sold en bloc for $95 million.
This land price works out to $1,007 per sq ft (psf) on the potential gross floor area. The price is shy of the owners' asking price of $100million to $108 million but is way above the $80 million price negotiated in an ultimately abortive sale in the boom days of July 2007.
Bravo Building Construction called off the sale in early 2008. It had also pulled out of two other collective sale deals.
Owners of the 48 units will get close to $2 million each.
Credo Real Estate, which marketed the site, confirmed only the price and declined to comment further as the sale committee is not yet ready to make a formal announcement.
Meanwhile, Waldorf Mansions off Balestier Road and Foh Pin Mansion in Charlton Road have been put up for collective sale.
Both freehold estates have an indicative price of about $22.5 million each. At the 16-unit Waldorf Mansions, this equates to $709 psf per plot ratio, inclusive of a development charge of $104,000.
Credo Real Estate said the buyer can expect to break even at about $1,100 psf.
Built in the 1990s, the site has an allowed gross floor area of 31,875 sq ft. The buyer can redevelop the site into a project with 50 apartments of 600 sq ft on average, said Credo.
As for the 30-year-old, 21-unit Foh Pin Mansion, it can be redeveloped only into a three-storey mixed landed housing development as the land has been rezoned, said marketing agent Savills Singapore.
The buyer may undertake a cluster housing development, said Savills director of investment sales Suzie Mok.
A price of $21 million or $22 million will translate to a land price of about $610 psf to $650 psf, she said.
The tender for Waldorf Mansions closes on June 29 while the tender for Foh Pin closes a day earlier on June 28.
JOYCE TEO
ST : Waterfront, city homes still a hit in resale market
Jun 1, 2010
Waterfront, city homes still a hit in resale market
By Joyce Teo
WATERFRONT and prime city homes continue to be popular choices in the resale market, which could mean more conversions of office space into homes, property consultancy CB Richard Ellis (CBRE) says.
Its latest report says the total value of resale deals for these homes in Districts 1, 2 and 4 - where the Marina Bay, Shenton Way and Sentosa Cove areas are located - hit $470.2 million from January to May.
The 246 units sold in these upmarket districts in the first five months of this year make up 51 per cent of the total for all of last year. Although the value of these deals pales in comparison to the full-year 2007 peak of $2.08 billion for these districts, it compares relatively well with full-year sales of $750.8 million last year and average annual resale values of $737.8 million from 2005 to 2008.
CBRE's executive director for residential properties Joseph Tan said an ongoing, sustained demand for residential units in these areas could prompt developers to convert or redevelop older office blocks into high-end residential use.
One example is the conversion of the Ong Building site at 76 Shenton Way into a 202-unit residential project. This project sold out in March.
CBRE estimates 1.3 million sq ft of offices will be converted to mainly residential use from now to 2013, he said.
Office buildings that have received planning approvals for conversion to residential use include VTB Building, into 148 units; UIC Building, into 593 units; and Marina House, into 155 units.
On new launches, the euro zone crisis has made investors more cautious while the Government's large release of sites for sale could have dampened sentiment among owner-occupiers, says an industry source. He expects transactions and prices to cool to a more sustainable level.
The largest new release over the holiday weekend was the 1,145-unit condominium in Hougang - The Minton.
About 300 units were released, of which some 180 were sold at an average price of $850 per sq ft.
Property experts had reportedly said sales could have been more brisk if the condo had been launched earlier.
Developer Kheng Leong said 5 per cent of the buyers were foreigners, with the rest being locals or permanent residents.
The most popular were the two-bedroom units, it said. They accounted for some 35 per cent of the units purchased at the 99-year leasehold condo.
The one- and three-bedroom units each made up 25 per cent of the sales.
'The one-bedroom units didn't move as fast as the two-bedroom units. It shows that a lot of people are buying units to live in, rather than for investment,' said Knight Frank's managing director for residential services Peter Ow.
One-bedders have been popular with investors as they are deemed affordable.
Waterfront, city homes still a hit in resale market
By Joyce Teo
WATERFRONT and prime city homes continue to be popular choices in the resale market, which could mean more conversions of office space into homes, property consultancy CB Richard Ellis (CBRE) says.
Its latest report says the total value of resale deals for these homes in Districts 1, 2 and 4 - where the Marina Bay, Shenton Way and Sentosa Cove areas are located - hit $470.2 million from January to May.
The 246 units sold in these upmarket districts in the first five months of this year make up 51 per cent of the total for all of last year. Although the value of these deals pales in comparison to the full-year 2007 peak of $2.08 billion for these districts, it compares relatively well with full-year sales of $750.8 million last year and average annual resale values of $737.8 million from 2005 to 2008.
CBRE's executive director for residential properties Joseph Tan said an ongoing, sustained demand for residential units in these areas could prompt developers to convert or redevelop older office blocks into high-end residential use.
One example is the conversion of the Ong Building site at 76 Shenton Way into a 202-unit residential project. This project sold out in March.
CBRE estimates 1.3 million sq ft of offices will be converted to mainly residential use from now to 2013, he said.
Office buildings that have received planning approvals for conversion to residential use include VTB Building, into 148 units; UIC Building, into 593 units; and Marina House, into 155 units.
On new launches, the euro zone crisis has made investors more cautious while the Government's large release of sites for sale could have dampened sentiment among owner-occupiers, says an industry source. He expects transactions and prices to cool to a more sustainable level.
The largest new release over the holiday weekend was the 1,145-unit condominium in Hougang - The Minton.
About 300 units were released, of which some 180 were sold at an average price of $850 per sq ft.
Property experts had reportedly said sales could have been more brisk if the condo had been launched earlier.
Developer Kheng Leong said 5 per cent of the buyers were foreigners, with the rest being locals or permanent residents.
The most popular were the two-bedroom units, it said. They accounted for some 35 per cent of the units purchased at the 99-year leasehold condo.
The one- and three-bedroom units each made up 25 per cent of the sales.
'The one-bedroom units didn't move as fast as the two-bedroom units. It shows that a lot of people are buying units to live in, rather than for investment,' said Knight Frank's managing director for residential services Peter Ow.
One-bedders have been popular with investors as they are deemed affordable.
ST : BOY! What a tough climb to the top
Jun 1, 2010
BOY! What a tough climb to the top
China-born developer, the Businessman of the Year, recalls long, hard struggle
By Gabriel Chen
A BEAMING Mr Zhong Sheng Jian, the founder of leading Chinese property developer Yanlord Land, last night recalled his tough climb to the top as he accepted a major Singapore business award.
Yanlord, which is listed on the Singapore Exchange, has developed a potent brand name that is now synonymous with high-end fully fitted apartments in the booming mainland market.
Last night, the 53-year old China-born entrepreneur, who became a Singapore citizen in the early 1990s, bagged the Businessman of the Year Award at this year's Singapore Business Awards.
'When I was informed about this award, many memories welled up in my mind,' said the father of five in his acceptance speech at the glitzy dinner event at Resorts World Sentosa. 'Visions of the past flashed across my eyes, memories of constantly being on the road, of the numerous destinations, of the different modes of transport, of the uncounted number of hotels I stayed in.'
Small and medium-sized enterprises (SMEs) also received good news yesterday. Deputy Prime Minister Teo Chee Hean said at the ceremony that SMEs will enjoy higher funding rates - 20 per cent more - for the productivity training programmes the Workforce Development Agency is developing with various industry associations.
For the winners last night, the awards - jointly organised by The Business Times and DHL Worldwide Express - affirmed their hard work on the long and often rough road to success.
Mr Zhong said an entrepreneur must be adaptable to succeed in the ever-changing market environment.
He should know what it means to seize opportunities, having capitalised on China's rapid urbanisation to venture into property development 17 years ago.
The Guangdong native launched the venture with funds he had accumulated from other business activities such as importing and trading in raw materials and paper, and from printing and paper-making businesses.
In his successful drive to build homes in China, Mr Zhong was inspired by the advanced property development concepts found in the Singapore property sector.
Instead of churning out the small, empty concrete boxes that passed for flats in China at the time, he decided to offer increasingly affluent city dwellers something better. So in 1993, the newly established Yanlord rolled out one of China's first high-end residential developments in Shanghai.
Mr Zhong played down his achievements, saying: 'Without the rapid reformation of the Chinese economy, I would not be able to achieve what I have today regardless of my personal ability.'
Another Singaporean honoured yesterday was Mr Phupinder Gill, president of the Chicago-based CME Group, the world's largest diverse futures market, who clinched the Outstanding Chief Executive (Overseas) of the Year award.
Mr Gill, 49, is a former relief teacher at Queenstown Secondary School.
He went to Washington State University in the 1980s to pursue a degree in finance and a Master of Business Administration degree. After graduation, he joined CME in 1988 as a clerk. 'I was paid US$5 an hour. This wasn't a lot,' he said.
He worked his way up the organisation, from operations specialist to senior risk analyst and then options manager, and later as president of the clearing house in 1998.
'The best advice I can give is that if you are in the workforce, think big, act big. Work at a company as if you own the firm,' he said.
Also honoured this year were Cerebos Pacific president Eiji Koike, who won the Outstanding Chief Executive award, and International SOS, which won the Enterprise award. The group provides medical assistance, international health care and security services.
gabrielc@sph.com.sg
THE WINNERS (From left) Outstanding Overseas CEO Phupinder Gill; Businessman of the Year Zhong Sheng Jian of Yanlord Land; Enterprise award winners Dr Pascal Rey-Herme, co-founder and group medical director, and Mr Arnaud Vaissie, co-founder, chairman and CEO of International SOS; and CEO of the Year Eiji Koike from Cerebos. -- ST PHOTO:MALCOLM KOH
BOY! What a tough climb to the top
China-born developer, the Businessman of the Year, recalls long, hard struggle
By Gabriel Chen
A BEAMING Mr Zhong Sheng Jian, the founder of leading Chinese property developer Yanlord Land, last night recalled his tough climb to the top as he accepted a major Singapore business award.
Yanlord, which is listed on the Singapore Exchange, has developed a potent brand name that is now synonymous with high-end fully fitted apartments in the booming mainland market.
Last night, the 53-year old China-born entrepreneur, who became a Singapore citizen in the early 1990s, bagged the Businessman of the Year Award at this year's Singapore Business Awards.
'When I was informed about this award, many memories welled up in my mind,' said the father of five in his acceptance speech at the glitzy dinner event at Resorts World Sentosa. 'Visions of the past flashed across my eyes, memories of constantly being on the road, of the numerous destinations, of the different modes of transport, of the uncounted number of hotels I stayed in.'
Small and medium-sized enterprises (SMEs) also received good news yesterday. Deputy Prime Minister Teo Chee Hean said at the ceremony that SMEs will enjoy higher funding rates - 20 per cent more - for the productivity training programmes the Workforce Development Agency is developing with various industry associations.
For the winners last night, the awards - jointly organised by The Business Times and DHL Worldwide Express - affirmed their hard work on the long and often rough road to success.
Mr Zhong said an entrepreneur must be adaptable to succeed in the ever-changing market environment.
He should know what it means to seize opportunities, having capitalised on China's rapid urbanisation to venture into property development 17 years ago.
The Guangdong native launched the venture with funds he had accumulated from other business activities such as importing and trading in raw materials and paper, and from printing and paper-making businesses.
In his successful drive to build homes in China, Mr Zhong was inspired by the advanced property development concepts found in the Singapore property sector.
Instead of churning out the small, empty concrete boxes that passed for flats in China at the time, he decided to offer increasingly affluent city dwellers something better. So in 1993, the newly established Yanlord rolled out one of China's first high-end residential developments in Shanghai.
Mr Zhong played down his achievements, saying: 'Without the rapid reformation of the Chinese economy, I would not be able to achieve what I have today regardless of my personal ability.'
Another Singaporean honoured yesterday was Mr Phupinder Gill, president of the Chicago-based CME Group, the world's largest diverse futures market, who clinched the Outstanding Chief Executive (Overseas) of the Year award.
Mr Gill, 49, is a former relief teacher at Queenstown Secondary School.
He went to Washington State University in the 1980s to pursue a degree in finance and a Master of Business Administration degree. After graduation, he joined CME in 1988 as a clerk. 'I was paid US$5 an hour. This wasn't a lot,' he said.
He worked his way up the organisation, from operations specialist to senior risk analyst and then options manager, and later as president of the clearing house in 1998.
'The best advice I can give is that if you are in the workforce, think big, act big. Work at a company as if you own the firm,' he said.
Also honoured this year were Cerebos Pacific president Eiji Koike, who won the Outstanding Chief Executive award, and International SOS, which won the Enterprise award. The group provides medical assistance, international health care and security services.
gabrielc@sph.com.sg
THE WINNERS (From left) Outstanding Overseas CEO Phupinder Gill; Businessman of the Year Zhong Sheng Jian of Yanlord Land; Enterprise award winners Dr Pascal Rey-Herme, co-founder and group medical director, and Mr Arnaud Vaissie, co-founder, chairman and CEO of International SOS; and CEO of the Year Eiji Koike from Cerebos. -- ST PHOTO:MALCOLM KOH
BT : OUE unveils note issue; Lippo plans placement
Business Times - 01 Jun 2010
OUE unveils note issue; Lippo plans placement
Property firm plans acquisitions from $200m note sale
By UMA SHANKARI
INDONESIA'S Lippo Group is selling an undisclosed number of its shares in property group Overseas Union Enterprise (OUE), OUE said yesterday.
OUE is also planning to issue up to $200 million in convertible notes due 2015. The property group said that net proceeds from the sale of the notes - which are convertible into new ordinary shares - will be used to buy hospitality, retail, commercial and/or residential land sites or properties for development in Singapore.
'We have recently identified a property in Singapore that we are considering for our portfolio. The property is an office tower complex in the CBD (central business district) area which we believe is suitable for redevelopment,' said OUE.
The proposed acquisition and development will be financed by both internal resources and external borrowings, the company said.
OUE also said that it is looking to start a residential property business. Right now, it has one residential site - Twin Peaks, a project at the site of the former The Grangeford - in its portfolio. The project is expected to be launched sometime this month.
In the same series of filings to the Singapore Exchange, OUE also announced a planned vendor share placement. Controlling shareholder Lippo now has an indirect interest of 51.19 per cent in the company. It also holds 37.32 per cent of OUE's shares through Golden Concord Asia, which will sell an undisclosed number of its shares in a placement.
Lippo paid $957 million to buy Malaysian tycoon Ananda Krishnan's stake in the Singapore-listed OUE in March. This gave Lippo sole control of the property group. The move came following reports that ties between Lippo president Stephen Riady and Mr Krishnan were strained and that there were disagreements over the management of OUE.
Mr Riady, who also became OUE's executive chairman, told BT in an interview last month that OUE will be Lippo's Singapore flagship. His aim is to have 50 per cent of OUE's bottom line come from recurrent income and get development profit to make up the remaining half. OUE has almost no development profit now, Mr Riady said then.
Analysts said that the convertible note issue is probably aimed at funding future acquisitions of residential land.
'They (OUE) have publicly said that they want more development profits. To achieve this, they will first need to buy more land,' said an analyst with a foreign bank here.
The issue size and pricing will be determined after a book-building exercise, OUE said. The convertible notes will be offered to institutional or accredited investors in Singapore, qualified institutional buyers in the United States and also eligible investors outside the US.
OUE shares lost two cents to close at $18.98 yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
OUE unveils note issue; Lippo plans placement
Property firm plans acquisitions from $200m note sale
By UMA SHANKARI
INDONESIA'S Lippo Group is selling an undisclosed number of its shares in property group Overseas Union Enterprise (OUE), OUE said yesterday.
OUE is also planning to issue up to $200 million in convertible notes due 2015. The property group said that net proceeds from the sale of the notes - which are convertible into new ordinary shares - will be used to buy hospitality, retail, commercial and/or residential land sites or properties for development in Singapore.
'We have recently identified a property in Singapore that we are considering for our portfolio. The property is an office tower complex in the CBD (central business district) area which we believe is suitable for redevelopment,' said OUE.
The proposed acquisition and development will be financed by both internal resources and external borrowings, the company said.
OUE also said that it is looking to start a residential property business. Right now, it has one residential site - Twin Peaks, a project at the site of the former The Grangeford - in its portfolio. The project is expected to be launched sometime this month.
In the same series of filings to the Singapore Exchange, OUE also announced a planned vendor share placement. Controlling shareholder Lippo now has an indirect interest of 51.19 per cent in the company. It also holds 37.32 per cent of OUE's shares through Golden Concord Asia, which will sell an undisclosed number of its shares in a placement.
Lippo paid $957 million to buy Malaysian tycoon Ananda Krishnan's stake in the Singapore-listed OUE in March. This gave Lippo sole control of the property group. The move came following reports that ties between Lippo president Stephen Riady and Mr Krishnan were strained and that there were disagreements over the management of OUE.
Mr Riady, who also became OUE's executive chairman, told BT in an interview last month that OUE will be Lippo's Singapore flagship. His aim is to have 50 per cent of OUE's bottom line come from recurrent income and get development profit to make up the remaining half. OUE has almost no development profit now, Mr Riady said then.
Analysts said that the convertible note issue is probably aimed at funding future acquisitions of residential land.
'They (OUE) have publicly said that they want more development profits. To achieve this, they will first need to buy more land,' said an analyst with a foreign bank here.
The issue size and pricing will be determined after a book-building exercise, OUE said. The convertible notes will be offered to institutional or accredited investors in Singapore, qualified institutional buyers in the United States and also eligible investors outside the US.
OUE shares lost two cents to close at $18.98 yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Far East may launch 6 projects in H2
Business Times - 01 Jun 2010
Far East may launch 6 projects in H2
It cites good sentiment, low interest rates
By UMA SHANKARI
FAR East Organization plans to launch up to six residential projects with more than 1,500 units in the second half of this year, said chief operating officer Chia Boon Kuah.
Mr Chia, who is bullish on the high-end and mass market segments of the private property market here, said most - if not all - of the projects could be pushed out by year-end.
'On the ground, the sentiment is quite good,' he said. 'The demand factors are there, with the positive economic situation in Singapore and the low interest rate environment.'
Two of the six projects are being developed as joint ventures with Frasers Centrepoint - Waterfront Gold with 361 units and and Waterfront Isle with 556.
The projects are the third and fourth phases of the two developers' Waterfront Collection along Bedok Reservoir.
The four other projects are fully owned by Far East.
They are: the 319-unit Greenwich at the corner of Yio Chu Kang and Seletar roads; the 214-unit Lanai in the Hillview area; the 72-unit Horizon Residences on Pasir Panjang Hill; and the luxury Skyline @ Orchard Boulevard, which will have 40 apartments.
Together, the six projects will yield 1,562 units - although not all units in each project will be released during the initial launch
Far East - Singapore's biggest private property group - has already launched two residential projects this year: the 280-unit Altez in Enggor Street and The Shore Residences opposite Katong Shopping Centre, which has 408 units. Last year, the developer launched 12 projects.
Of the six upcoming launches, four - Waterfront Gold, Greenwich, Skyline @ Orchard Boulevard and Horizon Residences - could be launched within four months, BT understands.
Waterfront Gold will have mostly smaller units to cater to current market demand.
In line with this, apartments at the project will be sold at higher prices per sq ft compared to the first two phases of the Waterfront Collection, Waterfront Waves and Waterfront Key. Units at Waterfront Waves, for example, fetched $850 psf on average.
Mr Chia is especially excited about Skyline @ Orchard Boulevard, which he said will 'offer super high net worth individuals world-class residences'.
The development was designed by Japanese architect Fumihiko Maki and is his first residential project outside Japan.
Far East is on the lookout for new residential sites.
'We are looking for land and when land is available, we will consider it carefully,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Horizon Residences: The 72-unit project could be launched within four months
Far East may launch 6 projects in H2
It cites good sentiment, low interest rates
By UMA SHANKARI
FAR East Organization plans to launch up to six residential projects with more than 1,500 units in the second half of this year, said chief operating officer Chia Boon Kuah.
Mr Chia, who is bullish on the high-end and mass market segments of the private property market here, said most - if not all - of the projects could be pushed out by year-end.
'On the ground, the sentiment is quite good,' he said. 'The demand factors are there, with the positive economic situation in Singapore and the low interest rate environment.'
Two of the six projects are being developed as joint ventures with Frasers Centrepoint - Waterfront Gold with 361 units and and Waterfront Isle with 556.
The projects are the third and fourth phases of the two developers' Waterfront Collection along Bedok Reservoir.
The four other projects are fully owned by Far East.
They are: the 319-unit Greenwich at the corner of Yio Chu Kang and Seletar roads; the 214-unit Lanai in the Hillview area; the 72-unit Horizon Residences on Pasir Panjang Hill; and the luxury Skyline @ Orchard Boulevard, which will have 40 apartments.
Together, the six projects will yield 1,562 units - although not all units in each project will be released during the initial launch
Far East - Singapore's biggest private property group - has already launched two residential projects this year: the 280-unit Altez in Enggor Street and The Shore Residences opposite Katong Shopping Centre, which has 408 units. Last year, the developer launched 12 projects.
Of the six upcoming launches, four - Waterfront Gold, Greenwich, Skyline @ Orchard Boulevard and Horizon Residences - could be launched within four months, BT understands.
Waterfront Gold will have mostly smaller units to cater to current market demand.
In line with this, apartments at the project will be sold at higher prices per sq ft compared to the first two phases of the Waterfront Collection, Waterfront Waves and Waterfront Key. Units at Waterfront Waves, for example, fetched $850 psf on average.
Mr Chia is especially excited about Skyline @ Orchard Boulevard, which he said will 'offer super high net worth individuals world-class residences'.
The development was designed by Japanese architect Fumihiko Maki and is his first residential project outside Japan.
Far East is on the lookout for new residential sites.
'We are looking for land and when land is available, we will consider it carefully,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Horizon Residences: The 72-unit project could be launched within four months
BT : China property firms' dollar bonds take a hit
Business Times - 01 Jun 2010
China property firms' dollar bonds take a hit
Fears that the real-estate market is overheating weigh on performance
(HONG KONG) Dollar bonds sold by China real estate companies this year are the worst performers among Asian non-financial corporate debt denominated in the US currency amid concern that the nation's property market is overheating.
Yields on the US$3.9 billion of bonds issued by Kaisa Group Holdings Ltd, Country Garden Holdings Co and seven other developers since January widened by an average 2.26 percentage points relative to Treasuries as of last week, according to data compiled by Bloomberg. That's more than the 2.05 percentage point increase in spreads for the seven dollar-denominated bonds sold by other companies in Asia outside Japan.
Investors are demanding greater yields to lend to China property firms, a sign they expect borrowers will have a harder time meeting debt payments amid a government clampdown down on lending. Goldman Sachs Group Inc and Credit Suisse Group AG cut their profit estimates for Chinese real estate companies after a 12.8 per cent jump in real estate prices in April from a year earlier spurred the state to increase regulation.
'New issues by Chinese developers will stall for the time being,' said Vince Chan, the Hong Kong-based chief credit strategist with Amias Berman & Co LLP, a fixed-income advisory and brokerage firm founded by two former Citigroup Inc bankers. 'Investors need handsome rewards for getting exposed to weaker fundamentals.'
The amount of dollar bonds issued by China developers represents 45 per cent of all corporate dollar debt sales in Asia outside Japan this year, Bloomberg data show. The yield spread on US$350 million of 13.5 per cent notes sold by Shenzhen-based Kaisa last month widened the most of the nine issues, expanding to 16.52 percentage points from 11.07 percentage points, Nomura Holdings Inc prices on Bloomberg show.
Kaisa is developing 18 projects in Shenzhen, Dongguan and other cities in the Pearl River Delta, most of them high-rise residential complexes that combine recreational and commercial space, according to its website. An investor who bought the company's 2015 bonds at par would have lost 15.5 per cent.
Elsewhere in credit markets, the extra yield investors demand to own company debt instead of Treasuries widened 5 basis points last week to 193 basis points, or 1.93 percentage points, Bank of America Merrill Lynch index data show. The spread, which peaked at 511 on March 30, 2009, is up from this year's low of 142 on April 21. Average yields rose to 4.06 per cent, the highest based on weekly closes since the period ended on March 5.
Corporate bond issuance worldwide slowed this month to US$66.1 billion, down from US$183 billion in April and the least since December 2000, according to data compiled by Bloomberg.
'Companies have to be prepared to strike and strike quickly,' said Rick Martin, the London-based director of treasury at Virgin Media Inc, the UK's second-largest pay-television company, at a May 28 briefing in London. 'The key is to have the team ready and primed and able to pull the trigger at short notice. I can't think of a time when the forces have been so polarising.'
The cost to insure US corporate debt against default rose last week. Credit-default swaps on the Markit CDX North America Investment Grade Index Series 14, which investors use to hedge against losses or to speculate on creditworthiness, increased 25.1 basis points this month to a mid-price of 117.2 basis points. The index typically rises as investor confidence deteriorates and falls as it improves.
Bond risk rose in Asia yesterday, with the Markit iTraxx Asia index up four basis points, according to Royal Bank of Scotland Group Plc. The Markit iTraxx Japan index rose 5 basis points, Morgan Stanley prices show.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements. A basis point on a credit-default swap contract protecting US$10 million of debt from default for five years is equivalent to US$1,000 a year.
In emerging markets, spreads narrowed 16 basis points last week to 321 basis points, trimming the monthly increase to 63, according to the JPMorgan Emerging Market Bond Index.
China has added to regulations designed to cool the property market several times this year, including raising banks' reserve requirements three times since January, restricting pre-sales by developers and curbing loans for third- home purchases. It also raised minimum mortgage rates and tightened down-payment requirements for second homes.
Shanghai's plan to begin a property tax on residential real estate was submitted to the central government for review, the China Securities Journal reported yesterday, citing unidentified people.
Goldman Sachs lowered its 2010 net income estimates for Chinese developers by an average 13 per cent and reduced earnings forecasts for the next two years by 25 per cent, analysts led by Yi Wang wrote in a May 19 report. Credit Suisse pared earnings- per-share estimates by as much as 15 per cent for 2010 and 20 per cent for 2011, citing the government's clampdown.
'With the negative headlines coming out of this sector, investors are less likely to be drawn to participate in new issues because of a high coupon,' said Tan Chew May, a credit analyst for Aberdeen Asset Management Asia Ltd., which oversees US$1.5 billion of Asian dollar debt, in Singapore. 'With the trend of widening spreads, new names are forced to come at premium.'
China property developers paid coupons as high as 14 per cent to issue dollar debt this year, compared with an average 9.2 per cent for other companies in Asia and 6.2 per cent for US property companies. On average, Chinese property companies are paying a 10.875 per cent coupon.
Glorious Property Holdings Ltd, which has 26 real estate projects in cities including Shanghai, Beijing, Harbin and Changchun, postponed its first sale of dollar-denominated bonds in April. The Hong Kong-listed company cited poor credit market conditions for the delay.
Renhe Commercial Holdings Co, a developer of underground shopping centres based in Harbin, China, sold five-year, 11.75 per cent dollar notes on May 18 to yield 974 basis points more than Treasuries after delaying the sale for two weeks.
The relatively strong finances of China developers means some companies can afford to pay double-digit coupons, according to Andy Mantel, Hong Kong-based founder of hedge fund manager Pacific Sun Investment Management Ltd.
Country Garden, which builds villas, townhouses and apartments in China, sold bonds in April with an 11.25 per cent coupon. The company, controlled by China's second-richest woman, Yang Huiyan, said contracted revenue in the first quarter rose 82 per cent on sales in the Guangdong area. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Taking the heat off: China has moved to cool the property market several times this year
China property firms' dollar bonds take a hit
Fears that the real-estate market is overheating weigh on performance
(HONG KONG) Dollar bonds sold by China real estate companies this year are the worst performers among Asian non-financial corporate debt denominated in the US currency amid concern that the nation's property market is overheating.
Yields on the US$3.9 billion of bonds issued by Kaisa Group Holdings Ltd, Country Garden Holdings Co and seven other developers since January widened by an average 2.26 percentage points relative to Treasuries as of last week, according to data compiled by Bloomberg. That's more than the 2.05 percentage point increase in spreads for the seven dollar-denominated bonds sold by other companies in Asia outside Japan.
Investors are demanding greater yields to lend to China property firms, a sign they expect borrowers will have a harder time meeting debt payments amid a government clampdown down on lending. Goldman Sachs Group Inc and Credit Suisse Group AG cut their profit estimates for Chinese real estate companies after a 12.8 per cent jump in real estate prices in April from a year earlier spurred the state to increase regulation.
'New issues by Chinese developers will stall for the time being,' said Vince Chan, the Hong Kong-based chief credit strategist with Amias Berman & Co LLP, a fixed-income advisory and brokerage firm founded by two former Citigroup Inc bankers. 'Investors need handsome rewards for getting exposed to weaker fundamentals.'
The amount of dollar bonds issued by China developers represents 45 per cent of all corporate dollar debt sales in Asia outside Japan this year, Bloomberg data show. The yield spread on US$350 million of 13.5 per cent notes sold by Shenzhen-based Kaisa last month widened the most of the nine issues, expanding to 16.52 percentage points from 11.07 percentage points, Nomura Holdings Inc prices on Bloomberg show.
Kaisa is developing 18 projects in Shenzhen, Dongguan and other cities in the Pearl River Delta, most of them high-rise residential complexes that combine recreational and commercial space, according to its website. An investor who bought the company's 2015 bonds at par would have lost 15.5 per cent.
Elsewhere in credit markets, the extra yield investors demand to own company debt instead of Treasuries widened 5 basis points last week to 193 basis points, or 1.93 percentage points, Bank of America Merrill Lynch index data show. The spread, which peaked at 511 on March 30, 2009, is up from this year's low of 142 on April 21. Average yields rose to 4.06 per cent, the highest based on weekly closes since the period ended on March 5.
Corporate bond issuance worldwide slowed this month to US$66.1 billion, down from US$183 billion in April and the least since December 2000, according to data compiled by Bloomberg.
'Companies have to be prepared to strike and strike quickly,' said Rick Martin, the London-based director of treasury at Virgin Media Inc, the UK's second-largest pay-television company, at a May 28 briefing in London. 'The key is to have the team ready and primed and able to pull the trigger at short notice. I can't think of a time when the forces have been so polarising.'
The cost to insure US corporate debt against default rose last week. Credit-default swaps on the Markit CDX North America Investment Grade Index Series 14, which investors use to hedge against losses or to speculate on creditworthiness, increased 25.1 basis points this month to a mid-price of 117.2 basis points. The index typically rises as investor confidence deteriorates and falls as it improves.
Bond risk rose in Asia yesterday, with the Markit iTraxx Asia index up four basis points, according to Royal Bank of Scotland Group Plc. The Markit iTraxx Japan index rose 5 basis points, Morgan Stanley prices show.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements. A basis point on a credit-default swap contract protecting US$10 million of debt from default for five years is equivalent to US$1,000 a year.
In emerging markets, spreads narrowed 16 basis points last week to 321 basis points, trimming the monthly increase to 63, according to the JPMorgan Emerging Market Bond Index.
China has added to regulations designed to cool the property market several times this year, including raising banks' reserve requirements three times since January, restricting pre-sales by developers and curbing loans for third- home purchases. It also raised minimum mortgage rates and tightened down-payment requirements for second homes.
Shanghai's plan to begin a property tax on residential real estate was submitted to the central government for review, the China Securities Journal reported yesterday, citing unidentified people.
Goldman Sachs lowered its 2010 net income estimates for Chinese developers by an average 13 per cent and reduced earnings forecasts for the next two years by 25 per cent, analysts led by Yi Wang wrote in a May 19 report. Credit Suisse pared earnings- per-share estimates by as much as 15 per cent for 2010 and 20 per cent for 2011, citing the government's clampdown.
'With the negative headlines coming out of this sector, investors are less likely to be drawn to participate in new issues because of a high coupon,' said Tan Chew May, a credit analyst for Aberdeen Asset Management Asia Ltd., which oversees US$1.5 billion of Asian dollar debt, in Singapore. 'With the trend of widening spreads, new names are forced to come at premium.'
China property developers paid coupons as high as 14 per cent to issue dollar debt this year, compared with an average 9.2 per cent for other companies in Asia and 6.2 per cent for US property companies. On average, Chinese property companies are paying a 10.875 per cent coupon.
Glorious Property Holdings Ltd, which has 26 real estate projects in cities including Shanghai, Beijing, Harbin and Changchun, postponed its first sale of dollar-denominated bonds in April. The Hong Kong-listed company cited poor credit market conditions for the delay.
Renhe Commercial Holdings Co, a developer of underground shopping centres based in Harbin, China, sold five-year, 11.75 per cent dollar notes on May 18 to yield 974 basis points more than Treasuries after delaying the sale for two weeks.
The relatively strong finances of China developers means some companies can afford to pay double-digit coupons, according to Andy Mantel, Hong Kong-based founder of hedge fund manager Pacific Sun Investment Management Ltd.
Country Garden, which builds villas, townhouses and apartments in China, sold bonds in April with an 11.25 per cent coupon. The company, controlled by China's second-richest woman, Yang Huiyan, said contracted revenue in the first quarter rose 82 per cent on sales in the Guangdong area. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Taking the heat off: China has moved to cool the property market several times this year
BT : To buy or not to buy?
Business Times - 01 Jun 2010
To buy or not to buy?
Prominent developers share their views on where the property market is headed
PRIVATE residential prices in Singapore have been climbing since the second quarter of last year, prompting home seekers and investors who haven't gotten their feet wet to wonder: 'Should I still buy now?'
Some of the most prominent developers in Singapore - who are also past winners of the Singapore Business Awards - shared their views on where the property market is headed with The Business Times in April (before the government announced its land sales programme for H2 2010).
Ho Bee Investment chairman and CEO Chua Thian Poh, who took home the Businessman of the Year award for 2006, sees the residential market continuing to do well. Hong Leong Group executive chairman Kwek Leng Beng, who won the same award for 1996, believes Sentosa will be where the action is in the next five years. And CapitaLand president and CEO Liew Mun Leong, who was the Outstanding CEO for 2005, reminds us that location is key when it comes to buying a home.
BT: Many market watchers say that 2010 is the year for high-end private home sales to pick up. Do you agree, and why?
Chua Thian Poh: Prices for mass market homes have already surpassed the previous peak but not those for high-end private homes, which are still about 20 per cent to 30 per cent below the peak. As this recovery is led by the mass market, I believe the recovery is more sustainable and as such, the momentum of the recovery would filter upwards to the high-end segment.
Kwek Leng Beng: High-end private home sales are beginning to pick up definitely, but not as fast as one would expect. There is a strong sentiment in the market with low interest rates for housing loans and high liquidity. The market is now moving very nicely. Signs of economic recovery are real as the first quarter GDP confirms that Singapore is fast recovering from the recession. The definition of high-end is very broad and those exceeding $2,500 per sq ft find slower pick up than those below $2,500 psf. A lot also depends on the districts and locations of this type of property.
Liew Mun Leong: This year, we foresee prices rising by between 10 per cent and 20 per cent for the mid- to high-mid segments of the market. While sales remain brisk, prices for mass market projects are likely to remain steady and affordable.
Market sentiments improved significantly since the third quarter of 2009 as the global financial situation has stabilised and economies worldwide show signs of recovery. The Ministry of Trade and Industry has said that the overall outlook for external economies has improved for the rest of 2010 and that it expects the Singapore economy to grow by 7-9 per cent in 2010.
Late last year, we launched our high-end condominium, Urban Suites; it enjoyed strong sales. From then on, we saw strong buying interest for projects in the high-end segment of the market.
Sales of mass-market private homes remain brisk. Do you see this trend continuing, and why?
Chua: As long as the economy is on the recovery path, demand for mass market homes should continue to be strong. Most people would want to upgrade.
Kwek: I agree that the mass market continues to perform well though it is not as hot as before. You can see genuine investors who realise that spare cash earns very little interest. Prices in this sector are still affordable.
Liew: For 2010, the Singapore real estate market will reap the benefits of the remaking of Singapore with the opening of the two integrated resorts. Well located projects, particularly those at the city fringe or near MRT stations, will do well.
In April, we started phase two sales of The Interlace, a new residential destination at Depot Road/Alexandra Road. It is one of the largest and most ambitious residential developments in Singapore and will be a new postcard landmark for Singapore. The site has a good location at the Southern Ridges of Singapore and is seeing strong interest from homebuyers.
Liquidity, low interest rates and lack of investment products or opportunities will lead to further interest in property investment.
The government will be releasing more residential sites for sale. Do you think this will bring land prices down, and to what extent?
Chua: This is a fundamental economic principle. With more land supply, prices should moderate to a more reasonable level.
Kwek: The release of more residential sites is a welcome move for developers as many are looking to replenish their land banks. However, land prices have been increasing with each tender because developers believe the market will continue to trend up with anticipation of better economic numbers. Offering more sites will not bring prices down immediately but the tender prices going forward will not be so fierce.
Most important is to bear in mind that there is a lag time between actual supply of land and the completion of the condominiums. The actual demand in terms of occupancy can be ascertained only on completion of the projects. Before completion, it is only a projection which may not be accurate.
Liew: We welcome the release of more residential sites. This will give developers a chance to replenish their land banks and cater to a broad spectrum of homebuyers across different market segments and locations.
What opportunities do you see in Singapore's property market in the next five years?
Chua: Owning a private home has always been the aspiration for most Singaporeans. With the economy doing well, and coupled with the intention of the government to increase the population, we should see the residential market continuing its good run.
Kwek: As Singapore's economy recovers from the economic downturn, I am optimistic about the property market. The integrated resorts (IRs) are basically aiming at visitors of a different kind and when their operations stabilise within the next two years, we should see more foreigners buying condominiums in Singapore.
Liew: Looking ahead, Singapore's economic prospects are positive, coupled with rising business and consumer confidence. MTI expects the Singapore economy to grow by 7-9 per cent in 2010. We expect the renewed momentum of the Singapore economy to drive growth in the real estate market, as the two are closely interlinked.
In particular, the opening of the two integrated resorts in 2010 is widely anticipated to benefit the Singapore residential market, with prime projects attracting strong interest from both local and foreign buyers.
How is your company positioning itself to exploit these opportunities?
Chua: We will be selective in sourcing for land that has good attributes and amenities to build homes that are demanded by the general public.
Kwek: We continue to believe in Singapore's market and will continue to offer customers good value and quality projects at realistic prices.
I see within five years, prices of property units in Sentosa going up a lot more than those on the main island as there could only be 2,500 units in Sentosa and there is no more land for tender or for en bloc sale there. Supply is limited in Sentosa but demand will continue to grow.
Liew: For us, we have a strong brand position as a leading developer in Singapore with an established track record of building premier homes. We have consistently delivered quality projects that are beautifully designed and well-located, and this will keep us in good stead in the coming years.
We are encouraged by the renewed strong buying interest for our projects. We have a number of projects in the pipeline that will be launch-ready over the next 12 months, including the development on Farrer Road, Urban Resort Condominium and The Nassim.
We are comfortable with our healthy pipeline of over 2,600 residential units. Even with this healthy pipeline, we will be interested in any well-located and attractively priced site available.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
To buy or not to buy?
Prominent developers share their views on where the property market is headed
PRIVATE residential prices in Singapore have been climbing since the second quarter of last year, prompting home seekers and investors who haven't gotten their feet wet to wonder: 'Should I still buy now?'
Some of the most prominent developers in Singapore - who are also past winners of the Singapore Business Awards - shared their views on where the property market is headed with The Business Times in April (before the government announced its land sales programme for H2 2010).
Ho Bee Investment chairman and CEO Chua Thian Poh, who took home the Businessman of the Year award for 2006, sees the residential market continuing to do well. Hong Leong Group executive chairman Kwek Leng Beng, who won the same award for 1996, believes Sentosa will be where the action is in the next five years. And CapitaLand president and CEO Liew Mun Leong, who was the Outstanding CEO for 2005, reminds us that location is key when it comes to buying a home.
BT: Many market watchers say that 2010 is the year for high-end private home sales to pick up. Do you agree, and why?
Chua Thian Poh: Prices for mass market homes have already surpassed the previous peak but not those for high-end private homes, which are still about 20 per cent to 30 per cent below the peak. As this recovery is led by the mass market, I believe the recovery is more sustainable and as such, the momentum of the recovery would filter upwards to the high-end segment.
Kwek Leng Beng: High-end private home sales are beginning to pick up definitely, but not as fast as one would expect. There is a strong sentiment in the market with low interest rates for housing loans and high liquidity. The market is now moving very nicely. Signs of economic recovery are real as the first quarter GDP confirms that Singapore is fast recovering from the recession. The definition of high-end is very broad and those exceeding $2,500 per sq ft find slower pick up than those below $2,500 psf. A lot also depends on the districts and locations of this type of property.
Liew Mun Leong: This year, we foresee prices rising by between 10 per cent and 20 per cent for the mid- to high-mid segments of the market. While sales remain brisk, prices for mass market projects are likely to remain steady and affordable.
Market sentiments improved significantly since the third quarter of 2009 as the global financial situation has stabilised and economies worldwide show signs of recovery. The Ministry of Trade and Industry has said that the overall outlook for external economies has improved for the rest of 2010 and that it expects the Singapore economy to grow by 7-9 per cent in 2010.
Late last year, we launched our high-end condominium, Urban Suites; it enjoyed strong sales. From then on, we saw strong buying interest for projects in the high-end segment of the market.
Sales of mass-market private homes remain brisk. Do you see this trend continuing, and why?
Chua: As long as the economy is on the recovery path, demand for mass market homes should continue to be strong. Most people would want to upgrade.
Kwek: I agree that the mass market continues to perform well though it is not as hot as before. You can see genuine investors who realise that spare cash earns very little interest. Prices in this sector are still affordable.
Liew: For 2010, the Singapore real estate market will reap the benefits of the remaking of Singapore with the opening of the two integrated resorts. Well located projects, particularly those at the city fringe or near MRT stations, will do well.
In April, we started phase two sales of The Interlace, a new residential destination at Depot Road/Alexandra Road. It is one of the largest and most ambitious residential developments in Singapore and will be a new postcard landmark for Singapore. The site has a good location at the Southern Ridges of Singapore and is seeing strong interest from homebuyers.
Liquidity, low interest rates and lack of investment products or opportunities will lead to further interest in property investment.
The government will be releasing more residential sites for sale. Do you think this will bring land prices down, and to what extent?
Chua: This is a fundamental economic principle. With more land supply, prices should moderate to a more reasonable level.
Kwek: The release of more residential sites is a welcome move for developers as many are looking to replenish their land banks. However, land prices have been increasing with each tender because developers believe the market will continue to trend up with anticipation of better economic numbers. Offering more sites will not bring prices down immediately but the tender prices going forward will not be so fierce.
Most important is to bear in mind that there is a lag time between actual supply of land and the completion of the condominiums. The actual demand in terms of occupancy can be ascertained only on completion of the projects. Before completion, it is only a projection which may not be accurate.
Liew: We welcome the release of more residential sites. This will give developers a chance to replenish their land banks and cater to a broad spectrum of homebuyers across different market segments and locations.
What opportunities do you see in Singapore's property market in the next five years?
Chua: Owning a private home has always been the aspiration for most Singaporeans. With the economy doing well, and coupled with the intention of the government to increase the population, we should see the residential market continuing its good run.
Kwek: As Singapore's economy recovers from the economic downturn, I am optimistic about the property market. The integrated resorts (IRs) are basically aiming at visitors of a different kind and when their operations stabilise within the next two years, we should see more foreigners buying condominiums in Singapore.
Liew: Looking ahead, Singapore's economic prospects are positive, coupled with rising business and consumer confidence. MTI expects the Singapore economy to grow by 7-9 per cent in 2010. We expect the renewed momentum of the Singapore economy to drive growth in the real estate market, as the two are closely interlinked.
In particular, the opening of the two integrated resorts in 2010 is widely anticipated to benefit the Singapore residential market, with prime projects attracting strong interest from both local and foreign buyers.
How is your company positioning itself to exploit these opportunities?
Chua: We will be selective in sourcing for land that has good attributes and amenities to build homes that are demanded by the general public.
Kwek: We continue to believe in Singapore's market and will continue to offer customers good value and quality projects at realistic prices.
I see within five years, prices of property units in Sentosa going up a lot more than those on the main island as there could only be 2,500 units in Sentosa and there is no more land for tender or for en bloc sale there. Supply is limited in Sentosa but demand will continue to grow.
Liew: For us, we have a strong brand position as a leading developer in Singapore with an established track record of building premier homes. We have consistently delivered quality projects that are beautifully designed and well-located, and this will keep us in good stead in the coming years.
We are encouraged by the renewed strong buying interest for our projects. We have a number of projects in the pipeline that will be launch-ready over the next 12 months, including the development on Farrer Road, Urban Resort Condominium and The Nassim.
We are comfortable with our healthy pipeline of over 2,600 residential units. Even with this healthy pipeline, we will be interested in any well-located and attractively priced site available.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Demand for resale homes in D1, 2 & 4 still resilient
Business Times - 01 Jun 2010
Demand for resale homes in D1, 2 & 4 still resilient
RESALE deals of non-landed private homes in districts 1 and 2 (which cover Singapore's financial district) as well as district 4 (which includes Sentosa Cove, Keppel Bay and Harbourfront areas) reached $750.8 million for the whole of last year, according to property consultancy group CB Richard Ellis.
This is lower than the 2007 peak of $2.08 billion but above the $737.8 million average annual resale level between 2005 and 2008 for the locations.
The figure so far this year is $470.2 million, based on URA Realis caveats data as at May 26.
'The buzz created by the integrated resorts and emerging prime office hub will ensure sustained activity in the resale market,' said CBRE executive director (residential) Joseph Tan.
Resales refer to secondary market transactions of completed developments, defined as projects that have received Certificate of Statutory Completion.
Districts 1 and 2 include the Marina Bay, Shenton Way and Tanjong Pagar belt.
'New residential projects in Sentosa Cove over the coming months will also further transform Sentosa into a lively residential enclave and this will continue to drive resale activity there. Apartments in the inner city and Sentosa will be sought after by investors and owner-occupiers alike due to their potential for high appreciation in value and attractive rental yields,' Mr Tan added.
CBRE estimates that about 1.3 million sq ft of offices in the Central Business District will be converted to mainly residential use by 2013.
So far this year, 246 non-landed private homes have changed hands in the resale market in districts 1, 2 and 4, or 51 per cent of the 482-unit resale volume for the whole of last year.
Last year, the most popular development in the resale market in the locations was Caribbean @ Keppel Bay (with 200 units sold), followed by The Sail @ Marina Bay (128 units).
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Demand for resale homes in D1, 2 & 4 still resilient
RESALE deals of non-landed private homes in districts 1 and 2 (which cover Singapore's financial district) as well as district 4 (which includes Sentosa Cove, Keppel Bay and Harbourfront areas) reached $750.8 million for the whole of last year, according to property consultancy group CB Richard Ellis.
This is lower than the 2007 peak of $2.08 billion but above the $737.8 million average annual resale level between 2005 and 2008 for the locations.
The figure so far this year is $470.2 million, based on URA Realis caveats data as at May 26.
'The buzz created by the integrated resorts and emerging prime office hub will ensure sustained activity in the resale market,' said CBRE executive director (residential) Joseph Tan.
Resales refer to secondary market transactions of completed developments, defined as projects that have received Certificate of Statutory Completion.
Districts 1 and 2 include the Marina Bay, Shenton Way and Tanjong Pagar belt.
'New residential projects in Sentosa Cove over the coming months will also further transform Sentosa into a lively residential enclave and this will continue to drive resale activity there. Apartments in the inner city and Sentosa will be sought after by investors and owner-occupiers alike due to their potential for high appreciation in value and attractive rental yields,' Mr Tan added.
CBRE estimates that about 1.3 million sq ft of offices in the Central Business District will be converted to mainly residential use by 2013.
So far this year, 246 non-landed private homes have changed hands in the resale market in districts 1, 2 and 4, or 51 per cent of the 482-unit resale volume for the whole of last year.
Last year, the most popular development in the resale market in the locations was Caribbean @ Keppel Bay (with 200 units sold), followed by The Sail @ Marina Bay (128 units).
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : NUS home price index rises 2.5% in April
Business Times - 01 Jun 2010
NUS home price index rises 2.5% in April
But index expected to rise at slower pace or stay flat in May
By KALPANA RASHIWALA
LATEST flash estimates from National University of Singapore show that its overall price index for non-landed private homes rose 2.5 per cent in April over the preceding month.
The flash estimate for April reflects an increase of about 6 per cent since the end of last year and a 32.8 per cent improvement from the low in March last year when Singapore's property market bottomed out after the global financial crisis.
But NUS's Singapore Residential Price Index (SRPI)for May 2010 is expected to rise at a slower pace or even remain stagnant, say market watchers such as DTZ executive director (consulting) Ong Choon Fah.
Sentiment in the property market had already started to wane in the second half of April on the back of concerns about Europe's debt crisis and the fall in the stock market.
The Singapore Government's announcement in May that it will release a record amount of land for sale in the second half of this year is also creating an air of caution among potential home buyers.
'Despite continuing interest among residents to own a private property, one does not feel great urgency to buy. Potential buyers are taking more time to evaluate while they await greater clarity in the big picture. Right now, we're getting a lot of 'noise' due to mixed signals from economic indicators from abroad,' says Mrs Ong.
Agreeing, another property consultant reckons that the NUS indices may begin to taper off for May and show a decline in June, given that these indices cover only completed properties and hence tend to lag the new launches market, where things have already started to slow over the past few weeks.
For April, NUS's price index for non-landed homes in the central region rose at a faster clip over the preceding month than it did for the non-central region.
In the central region, which covers districts 1-4 and 9-11, the index increased 3 per cent, against a 2.1 per cent gain for the non-central region.
However, the year-to-date gain for the non-central region was 6.8 per cent, outpacing a 5 per cent increase in the central region.
The central region index is now 37.8 per cent above the post-financial crisis low in March last year. The appreciation for the non-central region has been at a slower pace of 30.3 per cent over the same period.
Despite the heftier rise in prices in the central region, the flash estimate index for April for the location was still 6.4 per cent shy of the pre-financial crisis peak in November 2007.
In contrast, for the non-central region, the latest index has already surpassed its respective January 2008 pre-crisis peak by 8.7 per cent. As a result, the overall SRPI flash estimate index is now 3 per cent above its November 2007 high.
The central region index is now 37.8 per cent above the post-financial crisis low.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
NUS home price index rises 2.5% in April
But index expected to rise at slower pace or stay flat in May
By KALPANA RASHIWALA
LATEST flash estimates from National University of Singapore show that its overall price index for non-landed private homes rose 2.5 per cent in April over the preceding month.
The flash estimate for April reflects an increase of about 6 per cent since the end of last year and a 32.8 per cent improvement from the low in March last year when Singapore's property market bottomed out after the global financial crisis.
But NUS's Singapore Residential Price Index (SRPI)for May 2010 is expected to rise at a slower pace or even remain stagnant, say market watchers such as DTZ executive director (consulting) Ong Choon Fah.
Sentiment in the property market had already started to wane in the second half of April on the back of concerns about Europe's debt crisis and the fall in the stock market.
The Singapore Government's announcement in May that it will release a record amount of land for sale in the second half of this year is also creating an air of caution among potential home buyers.
'Despite continuing interest among residents to own a private property, one does not feel great urgency to buy. Potential buyers are taking more time to evaluate while they await greater clarity in the big picture. Right now, we're getting a lot of 'noise' due to mixed signals from economic indicators from abroad,' says Mrs Ong.
Agreeing, another property consultant reckons that the NUS indices may begin to taper off for May and show a decline in June, given that these indices cover only completed properties and hence tend to lag the new launches market, where things have already started to slow over the past few weeks.
For April, NUS's price index for non-landed homes in the central region rose at a faster clip over the preceding month than it did for the non-central region.
In the central region, which covers districts 1-4 and 9-11, the index increased 3 per cent, against a 2.1 per cent gain for the non-central region.
However, the year-to-date gain for the non-central region was 6.8 per cent, outpacing a 5 per cent increase in the central region.
The central region index is now 37.8 per cent above the post-financial crisis low in March last year. The appreciation for the non-central region has been at a slower pace of 30.3 per cent over the same period.
Despite the heftier rise in prices in the central region, the flash estimate index for April for the location was still 6.4 per cent shy of the pre-financial crisis peak in November 2007.
In contrast, for the non-central region, the latest index has already surpassed its respective January 2008 pre-crisis peak by 8.7 per cent. As a result, the overall SRPI flash estimate index is now 3 per cent above its November 2007 high.
The central region index is now 37.8 per cent above the post-financial crisis low.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : The Minton sells 180 units over weekend
Business Times - 31 May 2010
The Minton sells 180 units over weekend
Observers say sales below figures achieved during March/April height
By KALPANA RASHIWALA
(SINGAPORE) In a widely watched property release, developer Kheng Leong had sold about 180 units of The Minton condo in Hougang as of 6 pm yesterday.
This is out of a batch of more than 300 units that Kheng Leong has released since last Friday in the 1,145-unit development at Lorong Ah Soo/Hougang Street 11 at an average price of $850 per square foot.
Property agents marketing the project told BT that the sales result, while encouraging, was below what they would have expected during the recent height of the property market in March/April. The peak was prior to the fallout from Europe's economic problems and the Singapore government's announcement in May that it will deliver a bumper land sales programme for the second half of this year to meet hot demand in the residential property market.
A new release like The Minton would have sold closer to 300 units in its first weekend and at about 5-8 per cent higher pricing, said CB Richard Ellis executive director Joseph Tan.
Knight Frank managing director (residential services) Peter Ow, also reckoned the 99-year leasehold project could have sold about 300 units in its initial weekend had it been put on the market a couple of months ago. He said: 'The government land sales announcement has definitely had an impact. When we talk to (potential) buyers, they're now taking a bit longer to decide. They're worried that with the new supply coming up, prices might fall.'
As has been the case with other launches, the most popular units at The Minton's holiday-extended weekend preview were one and two-bedroom units.
Kheng Leong's general manager (property) Luk Kwok Wing said prices of one bedders sold (as of 6 pm yesterday) ranged from about $480,000 to $590,000 per unit. Two bedders cost $750,000 to $870,000. The project also has three and four bedders, penthouses as well as dual-key units.
Buyers were predominantly young Singaporeans, including families. Generally, buyers have HDB addresses, including Hougang, Serangoon and Tampines (all in the north-east part of Singapore).
Mr Luk said buyers were drawn by The Minton's lush landscaping and generous facilities afforded by the large site area of close to half a million square feet.
The Minton will have a 50-metre lap pool, a 20-metre heated pool, a treehouse playground, a tennis court and an air-conditioned badminton hall that doubles as a function room. It will also boast a big library, a sky-terrace and spas/gyms. The grand clubhouse will accommodate activities like yoga, karaoke and billiards/table soccer, apart from an indoor children's playground.
Kheng Leong, a privately owned property group controlled by the family of banker Wee Cho Yaw, is developing The Minton on the former Minton Rise site that it bought in 2007 through a collective sale.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Huge area: Buyers appear to be drawn by The Minton's lush landscaping and generous facilities afforded by the large site area of close to half a million square feet
The Minton sells 180 units over weekend
Observers say sales below figures achieved during March/April height
By KALPANA RASHIWALA
(SINGAPORE) In a widely watched property release, developer Kheng Leong had sold about 180 units of The Minton condo in Hougang as of 6 pm yesterday.
This is out of a batch of more than 300 units that Kheng Leong has released since last Friday in the 1,145-unit development at Lorong Ah Soo/Hougang Street 11 at an average price of $850 per square foot.
Property agents marketing the project told BT that the sales result, while encouraging, was below what they would have expected during the recent height of the property market in March/April. The peak was prior to the fallout from Europe's economic problems and the Singapore government's announcement in May that it will deliver a bumper land sales programme for the second half of this year to meet hot demand in the residential property market.
A new release like The Minton would have sold closer to 300 units in its first weekend and at about 5-8 per cent higher pricing, said CB Richard Ellis executive director Joseph Tan.
Knight Frank managing director (residential services) Peter Ow, also reckoned the 99-year leasehold project could have sold about 300 units in its initial weekend had it been put on the market a couple of months ago. He said: 'The government land sales announcement has definitely had an impact. When we talk to (potential) buyers, they're now taking a bit longer to decide. They're worried that with the new supply coming up, prices might fall.'
As has been the case with other launches, the most popular units at The Minton's holiday-extended weekend preview were one and two-bedroom units.
Kheng Leong's general manager (property) Luk Kwok Wing said prices of one bedders sold (as of 6 pm yesterday) ranged from about $480,000 to $590,000 per unit. Two bedders cost $750,000 to $870,000. The project also has three and four bedders, penthouses as well as dual-key units.
Buyers were predominantly young Singaporeans, including families. Generally, buyers have HDB addresses, including Hougang, Serangoon and Tampines (all in the north-east part of Singapore).
Mr Luk said buyers were drawn by The Minton's lush landscaping and generous facilities afforded by the large site area of close to half a million square feet.
The Minton will have a 50-metre lap pool, a 20-metre heated pool, a treehouse playground, a tennis court and an air-conditioned badminton hall that doubles as a function room. It will also boast a big library, a sky-terrace and spas/gyms. The grand clubhouse will accommodate activities like yoga, karaoke and billiards/table soccer, apart from an indoor children's playground.
Kheng Leong, a privately owned property group controlled by the family of banker Wee Cho Yaw, is developing The Minton on the former Minton Rise site that it bought in 2007 through a collective sale.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Huge area: Buyers appear to be drawn by The Minton's lush landscaping and generous facilities afforded by the large site area of close to half a million square feet
Monday, May 31, 2010
ST : More Singaporeans buying pricey homes
May 31, 2010
More Singaporeans buying pricey homes
Locals overtake PRs and foreigners as buyers of units costing above $5m
By Lee Zhi Xin
THINK most buyers of homes priced above $5million are foreigners? Not any more, according to a report by Savills Research and Consultancy.
It has reported a stunning reversal of a trend that has prevailed for at least three years, when foreigners had dominated the top end of the market here.
The proportion of Singaporeans buying these pricey homes shot up 12.8 percentage points to 42.3 per cent for homes sold in the four months ended April 30, compared with the figure in the fourth quarter of last year.
Locals have easily overtaken the 39.7per cent combined figure for permanent residents and foreigners. Their share is 21.4percentage points lower compared to that in the three months ended last December.
Companies made up the other buyers.
'This decrease could be partly due to more cautiousness as a result of the financial woes and uncertainties facing the European countries,' senior manager of Savills Research and Consultancy Christine Sun said. 'Another reason could be... that the Singapore currency is generally stronger against other currencies, making these houses more expensive for foreigners.
'On the other hand, Singaporean buyers are more upbeat, especially after seeing the boost in our gross domestic product (GDP) and the influx of tourists and investors.'
Indeed, this strong optimism was reflected in the surge in sales of non-landed, high-end private homes. An impressive 214 homes costing $5million or more were sold in the first four months of this year, surpassing the 208 for 2008.
This year's sales also amount to 70 per cent of the 307 homes sold in the whole of last year, bolstering Ms Sun's confidence that this year's sales total will better last year's as well.
Optimism in the high-end market started picking up in the third quarter of last year, when 147 homes worth at least $5million were sold - a 283per cent jump from the figure in the previous quarter. In the first quarter this year, 137 of these pricey units were sold.
But Ms Sun noted that these figures are still a far cry from 2007 figures, when 1,249 units priced at $5 million or above were sold as a result of the property boom.
In the primary market, Urban Suites sold the largest number of these high-end homes - 24 units - for the period from the third quarter of last year to this April.
Goodwood Residence and Nassim Park Residences were not far behind, with 18 and 16 units sold respectively.
In the resale market, Ardmore Park took the lead with 19 units sold, followed by Grange Residences with 15 units. The subsale market saw Tate Residences swiping first place with 17 units, while Ardmore II bit at its heels with 16 units sold.
As a result, the total transaction value of these non-landed private homes priced at $5 million and above has shot up 30 per cent in the first quarter to $953 million from the figure in the previous quarter.
This upswing looks set to continue with last month's figure of $507 million already more than half of last quarter's.
Leading the pack in price so far this year is a 6,889 sq ft unit at Nassim Park Residences, sold for an eye-popping $20million. This, however, is still some distance away from the record $33.4million for an 8,051 sq ft unit at Boulevard Vue sold in November last year.
These rising figures have translated into a larger share of the non-landed market for these homes, from 0.3 per cent in the first quarter of last year to 3.4 per cent last month.
As a result, the share of private homes priced at less than $2.5 million has dropped from 95 per cent to 87.4 per cent.
'All these findings may indicate that more buyers are increasing their risk appetite for pricier homes as the economy recovers,' said Ms Sun, who was quick to note that this may also be a result of private home prices rising in recent months.
Add another reason to the mix: Buyers are going for larger units as well.
Sales of non-landed private units above 2,000 sq ft saw a year-on-year leap of 426.7 per cent for the first quarter of this year to 553 units. These homes now make up 7.6 per cent of the non-landed private market, a 4 percentage point rise in the same period.
But Cushman & Wakefield managing director Donald Han thinks that demand for luxury homes will not continue rising at this rapid rate. 'Our rapid GDP rise is clouded by the European crisis, and the stock market does not look buoyant at the moment... I expect the property market to take a breather,' he said.
lzhixin@sph.com.sg
More Singaporeans buying pricey homes
Locals overtake PRs and foreigners as buyers of units costing above $5m
By Lee Zhi Xin
THINK most buyers of homes priced above $5million are foreigners? Not any more, according to a report by Savills Research and Consultancy.
It has reported a stunning reversal of a trend that has prevailed for at least three years, when foreigners had dominated the top end of the market here.
The proportion of Singaporeans buying these pricey homes shot up 12.8 percentage points to 42.3 per cent for homes sold in the four months ended April 30, compared with the figure in the fourth quarter of last year.
Locals have easily overtaken the 39.7per cent combined figure for permanent residents and foreigners. Their share is 21.4percentage points lower compared to that in the three months ended last December.
Companies made up the other buyers.
'This decrease could be partly due to more cautiousness as a result of the financial woes and uncertainties facing the European countries,' senior manager of Savills Research and Consultancy Christine Sun said. 'Another reason could be... that the Singapore currency is generally stronger against other currencies, making these houses more expensive for foreigners.
'On the other hand, Singaporean buyers are more upbeat, especially after seeing the boost in our gross domestic product (GDP) and the influx of tourists and investors.'
Indeed, this strong optimism was reflected in the surge in sales of non-landed, high-end private homes. An impressive 214 homes costing $5million or more were sold in the first four months of this year, surpassing the 208 for 2008.
This year's sales also amount to 70 per cent of the 307 homes sold in the whole of last year, bolstering Ms Sun's confidence that this year's sales total will better last year's as well.
Optimism in the high-end market started picking up in the third quarter of last year, when 147 homes worth at least $5million were sold - a 283per cent jump from the figure in the previous quarter. In the first quarter this year, 137 of these pricey units were sold.
But Ms Sun noted that these figures are still a far cry from 2007 figures, when 1,249 units priced at $5 million or above were sold as a result of the property boom.
In the primary market, Urban Suites sold the largest number of these high-end homes - 24 units - for the period from the third quarter of last year to this April.
Goodwood Residence and Nassim Park Residences were not far behind, with 18 and 16 units sold respectively.
In the resale market, Ardmore Park took the lead with 19 units sold, followed by Grange Residences with 15 units. The subsale market saw Tate Residences swiping first place with 17 units, while Ardmore II bit at its heels with 16 units sold.
As a result, the total transaction value of these non-landed private homes priced at $5 million and above has shot up 30 per cent in the first quarter to $953 million from the figure in the previous quarter.
This upswing looks set to continue with last month's figure of $507 million already more than half of last quarter's.
Leading the pack in price so far this year is a 6,889 sq ft unit at Nassim Park Residences, sold for an eye-popping $20million. This, however, is still some distance away from the record $33.4million for an 8,051 sq ft unit at Boulevard Vue sold in November last year.
These rising figures have translated into a larger share of the non-landed market for these homes, from 0.3 per cent in the first quarter of last year to 3.4 per cent last month.
As a result, the share of private homes priced at less than $2.5 million has dropped from 95 per cent to 87.4 per cent.
'All these findings may indicate that more buyers are increasing their risk appetite for pricier homes as the economy recovers,' said Ms Sun, who was quick to note that this may also be a result of private home prices rising in recent months.
Add another reason to the mix: Buyers are going for larger units as well.
Sales of non-landed private units above 2,000 sq ft saw a year-on-year leap of 426.7 per cent for the first quarter of this year to 553 units. These homes now make up 7.6 per cent of the non-landed private market, a 4 percentage point rise in the same period.
But Cushman & Wakefield managing director Donald Han thinks that demand for luxury homes will not continue rising at this rapid rate. 'Our rapid GDP rise is clouded by the European crisis, and the stock market does not look buoyant at the moment... I expect the property market to take a breather,' he said.
lzhixin@sph.com.sg
ST : Not many rogue agents, replies real estate body
May 28, 2010
Not many rogue agents, replies real estate body
I COMMEND Ms Tan Hui Yee ('Getting smart against rogue housing agents'; Wednesday) for highlighting how savvy consumers can protect themselves from falling prey to rogue agents.
But rogue agents are not aplenty. Most consumers have had satisfactory experiences with the agents in their transactions. The Public Perception and Expectations of Real Estate Agents survey carried out by Ngee Ann Polytechnic last year indicated that 64.6 per cent of the respondents were satisfied with their estate agents and 67.3 per cent rated them in the range of 'satisfactory' to 'excellent' for fiduciary dealings, which is meant to reflect the ethical relationship between parties.
The case of the Yuens involving gross misconduct of agents last year was a rarity.
Contrary to Ms Tan's suggestion that consumers were sceptical or unfamiliar with real estate bodies such as the Singapore Accredited Estate Agencies (SAEA), we had 329 inquiries, feedback and complaints last year, of which 40 per cent were complaints requiring our intervention, and these included disputes over commission.
The number of complaints alone was thrice more than what our agency handled in 2008. The bulk of the complaints was expeditiously resolved. SAEA also successfully helped settle all cases which required mediation. So, we do not believe we are ineffectual.
Finally, Ms Tan stated that 'not every agent who misleads a client into an unsavoury deal will be disciplined; some could merely be made to forgo part of their commission in a mediated settlement'.
There is another perspective to this, that is, if indeed the estate agent is clearly proven to have misled his client resulting in financial loss or even hardship, it is likely that he will face disciplinary inquiry in addition to the possibility of civil suit. The estate agency to which he is registered with may also face censure.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
Not many rogue agents, replies real estate body
I COMMEND Ms Tan Hui Yee ('Getting smart against rogue housing agents'; Wednesday) for highlighting how savvy consumers can protect themselves from falling prey to rogue agents.
But rogue agents are not aplenty. Most consumers have had satisfactory experiences with the agents in their transactions. The Public Perception and Expectations of Real Estate Agents survey carried out by Ngee Ann Polytechnic last year indicated that 64.6 per cent of the respondents were satisfied with their estate agents and 67.3 per cent rated them in the range of 'satisfactory' to 'excellent' for fiduciary dealings, which is meant to reflect the ethical relationship between parties.
The case of the Yuens involving gross misconduct of agents last year was a rarity.
Contrary to Ms Tan's suggestion that consumers were sceptical or unfamiliar with real estate bodies such as the Singapore Accredited Estate Agencies (SAEA), we had 329 inquiries, feedback and complaints last year, of which 40 per cent were complaints requiring our intervention, and these included disputes over commission.
The number of complaints alone was thrice more than what our agency handled in 2008. The bulk of the complaints was expeditiously resolved. SAEA also successfully helped settle all cases which required mediation. So, we do not believe we are ineffectual.
Finally, Ms Tan stated that 'not every agent who misleads a client into an unsavoury deal will be disciplined; some could merely be made to forgo part of their commission in a mediated settlement'.
There is another perspective to this, that is, if indeed the estate agent is clearly proven to have misled his client resulting in financial loss or even hardship, it is likely that he will face disciplinary inquiry in addition to the possibility of civil suit. The estate agency to which he is registered with may also face censure.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
ST : Just one lone petrol station in Punggol
May 30, 2010
Just one lone petrol station in Punggol
By Kimberly Spykerman
One is a lonely number, and it is the reason motorists in Punggol are being driven mad.
The new town has just one petrol station and long, snaking queues are common, especially during the weekends.
The Singapore Petroleum Centre (SPC) station at the junction of Punggol Central Road and Edgefield Plains caters to 82,000 residents.
Neighbouring new town Sengkang has three petrol stations.
Staff at the Punggol petrol station told The Sunday Times that on busy days, as many as 10 cars line the road leading up to it, despite there being no huge discounts.
Said bank manager Serena Lee: 'I avoid going there on weekends and Monday mornings. I go at night, or during non-peak hours.'
Although Ms Lee, 49, does not live there, she goes to Punggol almost every day to visit her elderly mother. Her longest wait to fill up was about 10 minutes.
When contacted, the Urban Redevelopment Authority (URA) said land is set aside for petrol stations in new towns. The release of sites for tender depends on factors such as the growth and size of the new town, it added.
SPC secured the 30-year Punggol site three years ago for $8.5 million.
Mr Charles Chong, an MP for Pasir-Ris Punggol GRC, said: 'It's a chicken and egg situation.'
He explained that a critical mass would entice businesses to set up; on the other hand, residents will not move in without the facilities.
'If the essential facilities can develop together with residential properties, that is ideal but it's not an easy balance to strike.'
The URA said that while demand is a key factor, there are some areas, such as densely built-up Orchard Road, which are simply no-go zones because of 'security and technical requirements'.
One expert, Associate Professor Belinda Yuen from the Department of Real Estate, National University of Singapore, felt that safety and accessibility are top-most considerations in decisions on the location of petrol stations, especially since petrol is highly flammable.
'It's best to locate these petrol stations a safe distance from residential and crowded areas. There should also be sufficient open space around them to provide a buffer, and no flammable material in case of fire,' she added.
In all, there are about 200 petrol stations in Singapore.
Areas like Serangoon and Bukit Timah boast at least three stations in a single kilometre stretch.
Petrol stations, meanwhile, are upping their game to woo customers. Besides fuel, customers can get a whole lot more at the stations.
For example, FairPrice Xpress stores at Esso stations were recently enhanced to add fresh produce such as frozen meat, cheese and vegetables to their line-up of products. It also trotted out Citibank drive-through ATMs at several outlets last year.
Said Exxonmobil's retail manager Thia Ling Ling: 'With changing demographics such as more dual-income busy families, we offer our customers the convenience of shopping for their groceries, or withdrawing cash from an ATM, all while refuelling their cars at the station.'
The petrol station in Punggol caters to 82,000 residents, and long queues are common on weekends. -- ST PHOTO: ALPHONSUS CHERN
Just one lone petrol station in Punggol
By Kimberly Spykerman
One is a lonely number, and it is the reason motorists in Punggol are being driven mad.
The new town has just one petrol station and long, snaking queues are common, especially during the weekends.
The Singapore Petroleum Centre (SPC) station at the junction of Punggol Central Road and Edgefield Plains caters to 82,000 residents.
Neighbouring new town Sengkang has three petrol stations.
Staff at the Punggol petrol station told The Sunday Times that on busy days, as many as 10 cars line the road leading up to it, despite there being no huge discounts.
Said bank manager Serena Lee: 'I avoid going there on weekends and Monday mornings. I go at night, or during non-peak hours.'
Although Ms Lee, 49, does not live there, she goes to Punggol almost every day to visit her elderly mother. Her longest wait to fill up was about 10 minutes.
When contacted, the Urban Redevelopment Authority (URA) said land is set aside for petrol stations in new towns. The release of sites for tender depends on factors such as the growth and size of the new town, it added.
SPC secured the 30-year Punggol site three years ago for $8.5 million.
Mr Charles Chong, an MP for Pasir-Ris Punggol GRC, said: 'It's a chicken and egg situation.'
He explained that a critical mass would entice businesses to set up; on the other hand, residents will not move in without the facilities.
'If the essential facilities can develop together with residential properties, that is ideal but it's not an easy balance to strike.'
The URA said that while demand is a key factor, there are some areas, such as densely built-up Orchard Road, which are simply no-go zones because of 'security and technical requirements'.
One expert, Associate Professor Belinda Yuen from the Department of Real Estate, National University of Singapore, felt that safety and accessibility are top-most considerations in decisions on the location of petrol stations, especially since petrol is highly flammable.
'It's best to locate these petrol stations a safe distance from residential and crowded areas. There should also be sufficient open space around them to provide a buffer, and no flammable material in case of fire,' she added.
In all, there are about 200 petrol stations in Singapore.
Areas like Serangoon and Bukit Timah boast at least three stations in a single kilometre stretch.
Petrol stations, meanwhile, are upping their game to woo customers. Besides fuel, customers can get a whole lot more at the stations.
For example, FairPrice Xpress stores at Esso stations were recently enhanced to add fresh produce such as frozen meat, cheese and vegetables to their line-up of products. It also trotted out Citibank drive-through ATMs at several outlets last year.
Said Exxonmobil's retail manager Thia Ling Ling: 'With changing demographics such as more dual-income busy families, we offer our customers the convenience of shopping for their groceries, or withdrawing cash from an ATM, all while refuelling their cars at the station.'
The petrol station in Punggol caters to 82,000 residents, and long queues are common on weekends. -- ST PHOTO: ALPHONSUS CHERN
ST : New launches aplenty amid uncertainty
May 30, 2010
New launches aplenty amid uncertainty
Analysts believe demand likely to be healthy despite market volatility
By Jessica Cheam
New residential projects have been launched for the long weekend as Singapore celebrates Vesak Day. But with the recent uncertainty in the financial market, will property investors bite?
Property experts whom The Sunday Times spoke to said the jury is still out on whether April's bumper sales of 2,207 new units - the second-highest monthly sales achieved - can be sustained this month.
This figure was up from 1,761 in March and 1,202 in February.
But recent turmoil stemming from the sovereign debt crisis in Greece and other European countries, coupled with stock market volatility, may have a cooling effect on the market in the short term, experts said.
Last week, the Government also released the largest amount of state land for private homes in response to surging demand.
It put 18 residential or residential/commercial sites on the programme for confirmed sale in the second half of the year, and 13 sites for residential use on the reserve list.
Together, the plots could yield 13,905 new homes - a figure that has experts speculating about a possible supply glut in the future.
The big question on the minds of property hunters on the prowl this weekend: Is this the right time to buy?
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that investors will now have to consider that there may be cheaper projects on the horizon.
'With the bumper crop of land sales, bids will be less aggressive and this could translate to lower launch prices,' he said.
Chesterton Suntec International research and consultancy director Colin Tan said the uncertainty of the global economic outlook could also be a reason for investors to stay away.
Mr Tan did not think, however, that the Government's recent land release would have a big impact on demand as there are still genuine buyers in the market.
But both experts agreed there is a healthy level of demand that will still move sales this weekend.
Major projects launched this weekend include Kheng Leong group's The Minton in Lorong Ah Soo/Hougang Street 11, which officially opened to the public yesterday.
The 99-year leasehold development offers a range of one- to four-bedroom apartments and is due for completion around 2014. Units were sold during the soft launch at an average price of $880 psf.
Another project launched last Friday was Frasers Centrepoint's Flamingo Valley in Siglap.
About 40 of 120 units released during the previews have been sold at an average price of $1,200 psf, said Frasers.
The freehold development offers a range of units from studios to four-bedders and penthouses.
Another recent launch: the freehold Cascadia condo in Bukit Timah Road.
More than 50 of 90 released units have been sold, said its developer Allgreen Properties. Units sold at between $1,300psf and $1,600psf, with average transacted prices close to $1,400 psf, it said.
For buyers on the lookout for completed properties, Melodies Limited's freehold 72-unit Cassia View in Guillemard Road offers three-bedroom units and penthouses. Prices range from $900 psf to $1,100 psf.
Ngee Ann Polytechnic's Mr Mak said that despite market uncertainty, some projects - especially those attractively priced - will still do well.
Chesterton's Mr Tan said that the recent bidding by developers for land at bullish prices reflects developers' positive outlook on demand for homes.
jcheam@sph.com.sg
Additional reporting by Lee Zhi Xin
Units at the sprawling Flamingo Valley in Siglap have been going at an average of $1,200 psf during preview sales. -- PHOTO: FRASERS CENTREPOINT HOMES
New launches aplenty amid uncertainty
Analysts believe demand likely to be healthy despite market volatility
By Jessica Cheam
New residential projects have been launched for the long weekend as Singapore celebrates Vesak Day. But with the recent uncertainty in the financial market, will property investors bite?
Property experts whom The Sunday Times spoke to said the jury is still out on whether April's bumper sales of 2,207 new units - the second-highest monthly sales achieved - can be sustained this month.
This figure was up from 1,761 in March and 1,202 in February.
But recent turmoil stemming from the sovereign debt crisis in Greece and other European countries, coupled with stock market volatility, may have a cooling effect on the market in the short term, experts said.
Last week, the Government also released the largest amount of state land for private homes in response to surging demand.
It put 18 residential or residential/commercial sites on the programme for confirmed sale in the second half of the year, and 13 sites for residential use on the reserve list.
Together, the plots could yield 13,905 new homes - a figure that has experts speculating about a possible supply glut in the future.
The big question on the minds of property hunters on the prowl this weekend: Is this the right time to buy?
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that investors will now have to consider that there may be cheaper projects on the horizon.
'With the bumper crop of land sales, bids will be less aggressive and this could translate to lower launch prices,' he said.
Chesterton Suntec International research and consultancy director Colin Tan said the uncertainty of the global economic outlook could also be a reason for investors to stay away.
Mr Tan did not think, however, that the Government's recent land release would have a big impact on demand as there are still genuine buyers in the market.
But both experts agreed there is a healthy level of demand that will still move sales this weekend.
Major projects launched this weekend include Kheng Leong group's The Minton in Lorong Ah Soo/Hougang Street 11, which officially opened to the public yesterday.
The 99-year leasehold development offers a range of one- to four-bedroom apartments and is due for completion around 2014. Units were sold during the soft launch at an average price of $880 psf.
Another project launched last Friday was Frasers Centrepoint's Flamingo Valley in Siglap.
About 40 of 120 units released during the previews have been sold at an average price of $1,200 psf, said Frasers.
The freehold development offers a range of units from studios to four-bedders and penthouses.
Another recent launch: the freehold Cascadia condo in Bukit Timah Road.
More than 50 of 90 released units have been sold, said its developer Allgreen Properties. Units sold at between $1,300psf and $1,600psf, with average transacted prices close to $1,400 psf, it said.
For buyers on the lookout for completed properties, Melodies Limited's freehold 72-unit Cassia View in Guillemard Road offers three-bedroom units and penthouses. Prices range from $900 psf to $1,100 psf.
Ngee Ann Polytechnic's Mr Mak said that despite market uncertainty, some projects - especially those attractively priced - will still do well.
Chesterton's Mr Tan said that the recent bidding by developers for land at bullish prices reflects developers' positive outlook on demand for homes.
jcheam@sph.com.sg
Additional reporting by Lee Zhi Xin
Units at the sprawling Flamingo Valley in Siglap have been going at an average of $1,200 psf during preview sales. -- PHOTO: FRASERS CENTREPOINT HOMES
ST : Singapore developers score big
May 28, 2010
Singapore developers score big
City Developments, Far East Organization, UOL and Keppel Land win international prizes for their buildings
By tay suan chiang
Four Singapore property developers were winners in this year's Fiabci Prix d'Excellence Competition, considered as the Olympics of the international real estate industry.
The Sail @ Marina Bay by City Developments came out tops in the Residential (High Rise) category. Far East Organization (FEO) won two accolades: a top award for Central at Clarke Quay in the Office category and a runner-up prize for its Square 2/Novena Medical Centre in the Specialised Project category.
UOL Group also clinched two awards. Its Pan Pacific Suzhou was tops in the Hotel category, while its one-north Residences was a runner-up in the Residential (High Rise) category.
Rounding off the list was Keppel Land, which bagged a runner-up prize in the Residential (Low Rise) category for its Jakarta Garden City project.
Indonesian Vice-President Boediono handed out the awards in Bali last night. Fiabci is the French acronym for the International Real Estate Federation, which organises the annual Prix d'Excellence to recognise excellence in property development. Entries are judged on five criteria: global concept, architecture and design, development and construction, community benefit and environmental impact, and financials and marketing.
There were 54 entries this year, with 12 winners and 12 runner-ups. Other winners included Hungary's Chemical Research Building and Malaysia's Adiva Parkhomes, Courtyard Terraces & Apartments.
On the projects by Singapore developers, Mr Yeow Thit Sang, president of the awards, said: 'They are of high standards and world-class quality.'
Strong track record
Dr Steven Choo, chief executive officer of the Real Estate Developers' Association of Singapore, said: 'It is testimony to the outstanding quality real estate that our members consistently create and a ringing endorsement of Singapore's presence as a global city of distinction in urban design and development.'
Singapore has been a strong Fiabci award winner. Past winners include Republic Plaza office tower, St Regis hotel and Esplanade Theatres On The Bay.
Said Mr Ashvinkumar Kantilai, president of the Singapore Institute of Architects: 'Our consistent success in the Fiabci awards over the years is proof of the maturing architectural design environment in Singapore.
'Over the years, the synergy among the developers, architects and contractors, with support from the Government, has helped to leapfrog Singapore's international standing in producing and delivering creative, innovative and sustainable design solutions.'
This year marks FEO's sixth time winning the awards, the most by any Singapore developer since they were introduced in 1992. Its past winners include residential projects Orchard Scotts, Gardenville and The Bayshore as well as The Fullerton Hotel Singapore and Far East Square.
While the accolade is handed out to developers, Mr Chng Kiong Huat, FEO's executive director for development and planning, said the awards give end-users 'peace of mind that the developer can build and deliver'.
taysc@sph.com.sg
--------------------------------------------------------------------------------
UOL GROUP
Pan Pacific Suzhou
Fiabci Prix d'Excellence Award winner
Located in the south-eastern part of the Ping Jiang District in Suzhou, Pan Pacific Suzhou, a winner in the Hotel category, sits in a strategic location and combines architectural grandeur with exquisite garden features.
The design of the five-star, 481-room hotel shows sensitivity to its environment and ingenuity in integrating the old and new elements.
one-north Residences
Fiabci Prix d'Excellence Award runner-up
A runner-up in the Residential (High Rise) category, the 405-unit one-north Residences is part of the larger one-north master plan in Singapore.
One-north is a 200ha development centred on knowledge-based industries that provide a stimulating and creative physical environment in which to live, congregate, interact and exchange ideas.
The condominium is arranged around a large courtyard to make the most of the surrounding park views.
FAR EAST ORGANIZATION
Central
Fiabci Prix d'Excellence Award winner
Shoppers may gripe about finding it hard to locate the shops in the mall of this development, but Central, completed in 2008, is a Fiabci winner in the Office category.
It introduced the first-of-its-kind purpose-built Small Office Home Office (Soho) units - functional and versatile spaces for office and residential use.
Central comprises two Soho towers, a 25-storey office block, a sky garden, recreational facilities and a retail podium.
It has attracted a vibrant community of entrepreneurial businesses including consultants and professionals in the legal, information technology, logistics, recruitment, education and fashion industries.
Square 2/Novena Medical Centre
Fiabci Prix d'Excellence Award runner-up
This project is the first of its kind in Singapore: a medical centre with a retail podium and which is connected directly to a hospital. It is a runner-up in the Specialised Project (Purpose-built) category.
The retail segment, called Square 2, has five floors offering a variety of shops and restaurants. Its basement level connects directly to the Novena MRT station.
The Novena Medical Centre has 145 clinics located on four floors. Facilities include day surgery and diagnostic radiology centres. An air-conditioned overhead linkway connects Tan Tock Seng Hospital, Singapore's second-largest public hospital, to the third-level lift lobby of the medical centre.
CITY DEVELOPMENTS
The Sail @ Marina Bay
Fiabci Prix d'Excellence Award winner
A winner in the Residential (High Rise) category, The Sail @ Marina Bay was designed by renowned Norwegian/ American architect Peter Pran.
Consisting of two 70- and 63-storey towers housing 1,111 apartments in all, it is Singapore's tallest residential development.
The towers have a unique sculptural form and their waterfront location gives home owners clear views of the Marina Bay area.
KEPPEL LAND
Jakarta Garden City
Fiabci Prix d'Excellence Award runner-up
Located a 35-minute drive from downtown Jakarta, Jakarta Garden City consists of 8,000 houses with facilities such as shopping malls and a market in its compound. It is a runner-up in the Residential (Low Rise) category.
It is modelled after 'clean, green Singapore' and will be developed as 'the ideal integrated township to live, work, play and learn in'. It is Indonesia's first township to be designed with a green lifestyle theme and will have eco-friendly features.
Singapore developers score big
City Developments, Far East Organization, UOL and Keppel Land win international prizes for their buildings
By tay suan chiang
Four Singapore property developers were winners in this year's Fiabci Prix d'Excellence Competition, considered as the Olympics of the international real estate industry.
The Sail @ Marina Bay by City Developments came out tops in the Residential (High Rise) category. Far East Organization (FEO) won two accolades: a top award for Central at Clarke Quay in the Office category and a runner-up prize for its Square 2/Novena Medical Centre in the Specialised Project category.
UOL Group also clinched two awards. Its Pan Pacific Suzhou was tops in the Hotel category, while its one-north Residences was a runner-up in the Residential (High Rise) category.
Rounding off the list was Keppel Land, which bagged a runner-up prize in the Residential (Low Rise) category for its Jakarta Garden City project.
Indonesian Vice-President Boediono handed out the awards in Bali last night. Fiabci is the French acronym for the International Real Estate Federation, which organises the annual Prix d'Excellence to recognise excellence in property development. Entries are judged on five criteria: global concept, architecture and design, development and construction, community benefit and environmental impact, and financials and marketing.
There were 54 entries this year, with 12 winners and 12 runner-ups. Other winners included Hungary's Chemical Research Building and Malaysia's Adiva Parkhomes, Courtyard Terraces & Apartments.
On the projects by Singapore developers, Mr Yeow Thit Sang, president of the awards, said: 'They are of high standards and world-class quality.'
Strong track record
Dr Steven Choo, chief executive officer of the Real Estate Developers' Association of Singapore, said: 'It is testimony to the outstanding quality real estate that our members consistently create and a ringing endorsement of Singapore's presence as a global city of distinction in urban design and development.'
Singapore has been a strong Fiabci award winner. Past winners include Republic Plaza office tower, St Regis hotel and Esplanade Theatres On The Bay.
Said Mr Ashvinkumar Kantilai, president of the Singapore Institute of Architects: 'Our consistent success in the Fiabci awards over the years is proof of the maturing architectural design environment in Singapore.
'Over the years, the synergy among the developers, architects and contractors, with support from the Government, has helped to leapfrog Singapore's international standing in producing and delivering creative, innovative and sustainable design solutions.'
This year marks FEO's sixth time winning the awards, the most by any Singapore developer since they were introduced in 1992. Its past winners include residential projects Orchard Scotts, Gardenville and The Bayshore as well as The Fullerton Hotel Singapore and Far East Square.
While the accolade is handed out to developers, Mr Chng Kiong Huat, FEO's executive director for development and planning, said the awards give end-users 'peace of mind that the developer can build and deliver'.
taysc@sph.com.sg
--------------------------------------------------------------------------------
UOL GROUP
Pan Pacific Suzhou
Fiabci Prix d'Excellence Award winner
Located in the south-eastern part of the Ping Jiang District in Suzhou, Pan Pacific Suzhou, a winner in the Hotel category, sits in a strategic location and combines architectural grandeur with exquisite garden features.
The design of the five-star, 481-room hotel shows sensitivity to its environment and ingenuity in integrating the old and new elements.
one-north Residences
Fiabci Prix d'Excellence Award runner-up
A runner-up in the Residential (High Rise) category, the 405-unit one-north Residences is part of the larger one-north master plan in Singapore.
One-north is a 200ha development centred on knowledge-based industries that provide a stimulating and creative physical environment in which to live, congregate, interact and exchange ideas.
The condominium is arranged around a large courtyard to make the most of the surrounding park views.
FAR EAST ORGANIZATION
Central
Fiabci Prix d'Excellence Award winner
Shoppers may gripe about finding it hard to locate the shops in the mall of this development, but Central, completed in 2008, is a Fiabci winner in the Office category.
It introduced the first-of-its-kind purpose-built Small Office Home Office (Soho) units - functional and versatile spaces for office and residential use.
Central comprises two Soho towers, a 25-storey office block, a sky garden, recreational facilities and a retail podium.
It has attracted a vibrant community of entrepreneurial businesses including consultants and professionals in the legal, information technology, logistics, recruitment, education and fashion industries.
Square 2/Novena Medical Centre
Fiabci Prix d'Excellence Award runner-up
This project is the first of its kind in Singapore: a medical centre with a retail podium and which is connected directly to a hospital. It is a runner-up in the Specialised Project (Purpose-built) category.
The retail segment, called Square 2, has five floors offering a variety of shops and restaurants. Its basement level connects directly to the Novena MRT station.
The Novena Medical Centre has 145 clinics located on four floors. Facilities include day surgery and diagnostic radiology centres. An air-conditioned overhead linkway connects Tan Tock Seng Hospital, Singapore's second-largest public hospital, to the third-level lift lobby of the medical centre.
CITY DEVELOPMENTS
The Sail @ Marina Bay
Fiabci Prix d'Excellence Award winner
A winner in the Residential (High Rise) category, The Sail @ Marina Bay was designed by renowned Norwegian/ American architect Peter Pran.
Consisting of two 70- and 63-storey towers housing 1,111 apartments in all, it is Singapore's tallest residential development.
The towers have a unique sculptural form and their waterfront location gives home owners clear views of the Marina Bay area.
KEPPEL LAND
Jakarta Garden City
Fiabci Prix d'Excellence Award runner-up
Located a 35-minute drive from downtown Jakarta, Jakarta Garden City consists of 8,000 houses with facilities such as shopping malls and a market in its compound. It is a runner-up in the Residential (Low Rise) category.
It is modelled after 'clean, green Singapore' and will be developed as 'the ideal integrated township to live, work, play and learn in'. It is Indonesia's first township to be designed with a green lifestyle theme and will have eco-friendly features.
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