Business Times - 17 Jun 2010
VIEWS ON CHINA PROPERTY
China 'bubble' will burst soon: Nomura
(SINGAPORE) The 'bubble' in China's property market is going to burst very quickly, with prices set to fall as much as 20 per cent in the next 12-18 months, according to Nomura Holdings Inc.
National real estate prices may drop 10-20 per cent on average, compared with an increase of about 22 per cent last year, Sun Mingchun, a Hong Kong-based economist at Nomura, said in a Bloomberg Television interview.
'If you look at (the ratio of) housing prices to disposable income in Beijing and Shanghai, they are 13, 14 times,' said Mr Sun, whose team was ranked third in Institutional Investor's 2010 Asian poll for China research. 'There's no way you can say there's no bubble.'
Real estate prices jumped 12.4 per cent across 70 cities in May, adding to the 12.8 per cent surge in April that was the most since the data series began in 2005. The gains suggest that measures ranging from a ban on loans for third-home purchases to higher mortgage rates and downpayment requirements for second-home purchases have yet to cool the real estate market.
Stephen Roach, chairman of Morgan Stanley Asia Ltd, said the government's measures are working 'by all accounts'. China's property boom isn't a bubble because it's supported by 'solid' demand for residential housing, he said.
While portions of the real estate market such as high-end apartments are overheating, demand for homes will remain robust as rural Chinese migrate to bigger cities, he said in a radio interview from Hong Kong with Tom Keene on Bloomberg Surveillance.
'This is just a sliver of the property boom,' Mr Roach said, citing that each year since 2000, 15-20 million people migrate to Beijing, Shanghai, and second- and third-tier cities in mainland China. That's 2-1/2 New York Cities created annually, he said. 'This underpins a huge demand for residential property. This property has not overheated and the demand for this property is very, very solid.'
The China Banking Regulatory Commission warned of growing credit risks in the nation's real estate industry and increasing pressures of non-performing loans. Risks associated with home mortgages are growing and a 'chain effect' may reappear in real estate development loans, according to its annual report published on its website on Tuesday. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Saturday, June 19, 2010
BT : Industrial site in Ubi up for sale
Business Times - 17 Jun 2010
Industrial site in Ubi up for sale
By UMA SHANKARI
A 3.5-hectare industrial site at Ubi Road 1 is up for sale by public tender, the Urban Redevelopment Authority (URA) said on Tuesday. The plot is one of two industrial sites launched for sale from the confirmed list of the first-half 2010 government industrial land sales programme. The first site, at Tampines Industrial Avenue 4, was sold earlier this month.
The latest site, with a 60-year lease, is 375,150 sq ft and has a 2.5 plot ratio - giving a maximum gross floor area of 937,875 sq ft. Analysts reckon it could fetch $61-75 million, or $65-80 per sq ft per plot ratio (psf ppr).
'The site is quite attractive,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. 'But quite a few industrial sites have been sold since the start of the year, so rationally the bids shouldn't be too high.'
Savills Singapore's industrial director Dominic Peters also said interest could be muted as there is already a large supply of strata-titled units in the area. The site is also 'fairly big', he said.
The plot is zoned 'Business 1', which means it can be developed for various uses such as clean and light industry - which includes computer software development, printing and publishing, assembly and repair of computer hardware and electronic equipment.
The Tampines site was sold to Soon Hock Tuas Development, which submitted the highest bid of $33.1 million for the 30-year leasehold plot. That worked out to $62 psf ppr.
The tender for the Ubi Road 1 site closes at noon on Aug 11.
Demand for industrial sites has been strong this year as the economy picks up. And analysts expect demand to grow further as manufacturers expand and institutional funds return to scout for investments.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Industrial site in Ubi up for sale
By UMA SHANKARI
A 3.5-hectare industrial site at Ubi Road 1 is up for sale by public tender, the Urban Redevelopment Authority (URA) said on Tuesday. The plot is one of two industrial sites launched for sale from the confirmed list of the first-half 2010 government industrial land sales programme. The first site, at Tampines Industrial Avenue 4, was sold earlier this month.
The latest site, with a 60-year lease, is 375,150 sq ft and has a 2.5 plot ratio - giving a maximum gross floor area of 937,875 sq ft. Analysts reckon it could fetch $61-75 million, or $65-80 per sq ft per plot ratio (psf ppr).
'The site is quite attractive,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. 'But quite a few industrial sites have been sold since the start of the year, so rationally the bids shouldn't be too high.'
Savills Singapore's industrial director Dominic Peters also said interest could be muted as there is already a large supply of strata-titled units in the area. The site is also 'fairly big', he said.
The plot is zoned 'Business 1', which means it can be developed for various uses such as clean and light industry - which includes computer software development, printing and publishing, assembly and repair of computer hardware and electronic equipment.
The Tampines site was sold to Soon Hock Tuas Development, which submitted the highest bid of $33.1 million for the 30-year leasehold plot. That worked out to $62 psf ppr.
The tender for the Ubi Road 1 site closes at noon on Aug 11.
Demand for industrial sites has been strong this year as the economy picks up. And analysts expect demand to grow further as manufacturers expand and institutional funds return to scout for investments.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : En bloc: Tanglin Shopping Centre up for sale again
Business Times - 17 Jun 2010
En bloc: Tanglin Shopping Centre up for sale again
Reserve price of $1.25b works out to a high $4,167 psf ppr
THE freehold Tanglin Shopping Centre is on the en bloc trail again, and the reserve price listed in the collective sales agreement (CSA), for which signing has started, is understood to be $1.25 billion.
Based on this, the unit land price works out to a whopping sum of about $4,167 per square foot of potential gross floor area.
The assumption is that no development charge is payable and that the new owner will be able to build up to the property's existing gross floor area (GFA) of about 300,000 sq ft, even though this slightly exceeds the maximum 287,700 sq ft under Master Plan 2008.
The unit land price would be a record level and property consultants polled by BT yesterday evening consider it steep.
A seasoned property consultant shared some broad-brush estimates with BT last night: 'Assuming the site is redeveloped into a combination of medical suites, mall and apartments, the breakeven cost for the retail component would be about $7,000-$7,500 psf; for medical suites around $6,000 psf and more than $5,000 psf for residential. These are all above current pricing levels.'
For instance, ION Orchard mall was valued at the end of last year at $3,950 psf.
Although built on a 99-year leasehold site, it boasts a superior location above Orchard MRT Station compared with Tanglin Shopping Centre.
BT understands that based on the $1.25 billion reserve price for Tanglin Shopping Centre, the potential payout to some owners of second-floor shop units works out to $7,000-7,500 psf of existing strata area.
'If I were an owner, I would definitely want to sell at that kind of price!' quipped the head of investment sales at a major property consulting group.
News of collective sales efforts for Tanglin Shopping Centre came to light yesterday when Millennium & Copthorne Hotels, the London-listed hotel arm of City Developments Ltd (CDL), said in a statutory filing that it had signed a CSA for the sale of its strata-titled interest in the complex.
BT understands that ERA has been appointed to handle the collective sale but the firm's senior marketing director Jean Goh declined to disclose the asking price, saying it was too early. 'We have just started the signing,' she added.
M&C's CEO, Richard Hartman, said in yesterday's filing: 'Whilst discussions regarding the potential disposal of our interest in Tanglin Shopping Centre are at a very preliminary stage, we felt it appropriate to disclose we had entered into the CSA.
'The board would highlight the highly conditional nature of the proposed disposal and that the sensitive nature of the discussions precludes disclosure of further commercial information or terms at this time. We will provide a further update on progress as and when appropriate.'
M&C holds its stake in the shopping and office complex through its wholly owned subsidiary, King's Tanglin Shopping Pte Ltd.
The company owns 85 freehold strata units comprising retail/office units and 325 carpark lots that have been held as a long-term investment since 1981. Based on earlier media reports, this works out to a stake of about 35 per cent in the complex.
Some analysts say that assuming ERA garners the minimum 80 per cent consent level from owners, CDL and/or its parent Hong Leong Group would be keen on the asset, given the group's sizeable presence in the location - including St Regis Hotel and the Orchard Hotel and shopping arcade.
However, whether Hong Leong would want to pay the over $4,000 psf per plot ratio for Tanglin Shopping Centre remains to be seen.
'They have an advantage over other bidders since their unit M&C already owns 35 per cent of the complex; so their effective outlay will be smaller,' an agent said.
Tanglin Shopping Centre is on a freehold site of about 68,500 sq ft and has a strata area of about 230,000 sq ft.
It comprises a retail podium (part of which houses medical suites), a 12-storey office tower, and carparking facilities.
Under Master Plan 2008, the site is zoned for commercial use with a 4.2 plot ratio (ratio of maximum potential GFA to land area) and a maximum height of 20 storeys.
The complex was developed in two stages, in the early 1970s and early 1980s.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
En bloc: Tanglin Shopping Centre up for sale again
Reserve price of $1.25b works out to a high $4,167 psf ppr
THE freehold Tanglin Shopping Centre is on the en bloc trail again, and the reserve price listed in the collective sales agreement (CSA), for which signing has started, is understood to be $1.25 billion.
Based on this, the unit land price works out to a whopping sum of about $4,167 per square foot of potential gross floor area.
The assumption is that no development charge is payable and that the new owner will be able to build up to the property's existing gross floor area (GFA) of about 300,000 sq ft, even though this slightly exceeds the maximum 287,700 sq ft under Master Plan 2008.
The unit land price would be a record level and property consultants polled by BT yesterday evening consider it steep.
A seasoned property consultant shared some broad-brush estimates with BT last night: 'Assuming the site is redeveloped into a combination of medical suites, mall and apartments, the breakeven cost for the retail component would be about $7,000-$7,500 psf; for medical suites around $6,000 psf and more than $5,000 psf for residential. These are all above current pricing levels.'
For instance, ION Orchard mall was valued at the end of last year at $3,950 psf.
Although built on a 99-year leasehold site, it boasts a superior location above Orchard MRT Station compared with Tanglin Shopping Centre.
BT understands that based on the $1.25 billion reserve price for Tanglin Shopping Centre, the potential payout to some owners of second-floor shop units works out to $7,000-7,500 psf of existing strata area.
'If I were an owner, I would definitely want to sell at that kind of price!' quipped the head of investment sales at a major property consulting group.
News of collective sales efforts for Tanglin Shopping Centre came to light yesterday when Millennium & Copthorne Hotels, the London-listed hotel arm of City Developments Ltd (CDL), said in a statutory filing that it had signed a CSA for the sale of its strata-titled interest in the complex.
BT understands that ERA has been appointed to handle the collective sale but the firm's senior marketing director Jean Goh declined to disclose the asking price, saying it was too early. 'We have just started the signing,' she added.
M&C's CEO, Richard Hartman, said in yesterday's filing: 'Whilst discussions regarding the potential disposal of our interest in Tanglin Shopping Centre are at a very preliminary stage, we felt it appropriate to disclose we had entered into the CSA.
'The board would highlight the highly conditional nature of the proposed disposal and that the sensitive nature of the discussions precludes disclosure of further commercial information or terms at this time. We will provide a further update on progress as and when appropriate.'
M&C holds its stake in the shopping and office complex through its wholly owned subsidiary, King's Tanglin Shopping Pte Ltd.
The company owns 85 freehold strata units comprising retail/office units and 325 carpark lots that have been held as a long-term investment since 1981. Based on earlier media reports, this works out to a stake of about 35 per cent in the complex.
Some analysts say that assuming ERA garners the minimum 80 per cent consent level from owners, CDL and/or its parent Hong Leong Group would be keen on the asset, given the group's sizeable presence in the location - including St Regis Hotel and the Orchard Hotel and shopping arcade.
However, whether Hong Leong would want to pay the over $4,000 psf per plot ratio for Tanglin Shopping Centre remains to be seen.
'They have an advantage over other bidders since their unit M&C already owns 35 per cent of the complex; so their effective outlay will be smaller,' an agent said.
Tanglin Shopping Centre is on a freehold site of about 68,500 sq ft and has a strata area of about 230,000 sq ft.
It comprises a retail podium (part of which houses medical suites), a 12-storey office tower, and carparking facilities.
Under Master Plan 2008, the site is zoned for commercial use with a 4.2 plot ratio (ratio of maximum potential GFA to land area) and a maximum height of 20 storeys.
The complex was developed in two stages, in the early 1970s and early 1980s.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Boom, yes; bubble, no, says Roach
Business Times - 17 Jun 2010
VIEWS ON CHINA PROPERTY
Boom, yes; bubble, no, says Roach
Price gains backed by strong demand for housing due to migration to cities
(NEW YORK) The property boom in China isn't a bubble because it's supported by 'solid' demand for residential housing, according to Stephen Roach, chairman of Morgan Stanley Asia Ltd.
While portions of the real estate market such as high-end apartments are overheating, demand for residential homes will remain robust as rural Chinese migrate to bigger cities, Dr Roach said in a radio interview from Hong Kong with Tom Keene on Bloomberg Surveillance.
'This is just a sliver of the property boom,' said Dr Roach, noting that each year since 2000, between 15 million and 20 million people migrate to Beijing, Shanghai, and second and third-tier cities in mainland China. That's two and a half New York Cities created annually, he said.
'This underpins a huge demand for residential property. This property has not overheated and the demand for this property is very, very solid.'
The nation's property prices rose 12.4 per cent in May from a year ago, the second-fastest pace on record. China's banking regulator said on Tuesday that it sees growing credit risks in the real estate industry and warned of increasing pressure from non-performing loans.
China has raised downpayment requirements and mortgage rates and restricted loans for multiple-home buyers as it seeks to dampen record property price gains.
The government's 'decisive' actions in April are working to cool the sections of the housing market that were overheating, according to Dr Roach. 'By all accounts, it looks like the measures are working for now.'
China, the world's fastest-growing major economy, expanded 11.9 per cent in the first quarter from a year ago. The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, has dropped 22 per cent this year. Markets in China are closed from June 14 to June 16 for a holiday.
China has kept the yuan linked to the dollar as a crisis-fighting policy, swelling its Treasury holdings and fuelling complaints from US lawmakers that it has an unfair advantage in global commerce. American lawmakers said that they'll go ahead with legislation targeting the yuan as US and Chinese leaders prepare to meet at a Group of 20 summit this month in Canada.
Floating the yuan won't rebalance the trade deficit, Dr Roach said.
'It's just bad economics to pretend we can fix the lives of middle class American workers by getting the Chinese to revalue its currency vis-a-vis the dollar - it's a horrible misconception. If we don't boost our national savings rate, with trillion dollar deficits as far as the eye can see, the Chinese piece of our multilateral trade deficit just goes somewhere else. It goes to a higher-cost producer and that taxes the American people.'
Treasury Secretary Timothy F Geithner said last week that a more flexible yuan would allow China to pursue 'a more effective, independent monetary policy, which is particularly important now, with China's economy facing a risk of inflation in goods and in asset prices'
China shouldn't cave to the pressure and should revalue the yuan when its financial system is more developed, Dr Roach said.
'They've still got a long way to go in opening up their capital account, opening up their financial system and making certain that their financial institutions can be reasonably well protected from the ups and downs of financial markets and currency gyrations.
'It's a process. Over the next 10 years, you will see China take enormous steps toward making their currency fully convertible but it will take that long or possibly even longer to do that.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Going up: Property prices rose 12.4% in May from a year ago, the second-fastest pace on record. The banking regulator sees growing credit risks in the real estate industry and warns of increasing pressure from non-performing loans
VIEWS ON CHINA PROPERTY
Boom, yes; bubble, no, says Roach
Price gains backed by strong demand for housing due to migration to cities
(NEW YORK) The property boom in China isn't a bubble because it's supported by 'solid' demand for residential housing, according to Stephen Roach, chairman of Morgan Stanley Asia Ltd.
While portions of the real estate market such as high-end apartments are overheating, demand for residential homes will remain robust as rural Chinese migrate to bigger cities, Dr Roach said in a radio interview from Hong Kong with Tom Keene on Bloomberg Surveillance.
'This is just a sliver of the property boom,' said Dr Roach, noting that each year since 2000, between 15 million and 20 million people migrate to Beijing, Shanghai, and second and third-tier cities in mainland China. That's two and a half New York Cities created annually, he said.
'This underpins a huge demand for residential property. This property has not overheated and the demand for this property is very, very solid.'
The nation's property prices rose 12.4 per cent in May from a year ago, the second-fastest pace on record. China's banking regulator said on Tuesday that it sees growing credit risks in the real estate industry and warned of increasing pressure from non-performing loans.
China has raised downpayment requirements and mortgage rates and restricted loans for multiple-home buyers as it seeks to dampen record property price gains.
The government's 'decisive' actions in April are working to cool the sections of the housing market that were overheating, according to Dr Roach. 'By all accounts, it looks like the measures are working for now.'
China, the world's fastest-growing major economy, expanded 11.9 per cent in the first quarter from a year ago. The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, has dropped 22 per cent this year. Markets in China are closed from June 14 to June 16 for a holiday.
China has kept the yuan linked to the dollar as a crisis-fighting policy, swelling its Treasury holdings and fuelling complaints from US lawmakers that it has an unfair advantage in global commerce. American lawmakers said that they'll go ahead with legislation targeting the yuan as US and Chinese leaders prepare to meet at a Group of 20 summit this month in Canada.
Floating the yuan won't rebalance the trade deficit, Dr Roach said.
'It's just bad economics to pretend we can fix the lives of middle class American workers by getting the Chinese to revalue its currency vis-a-vis the dollar - it's a horrible misconception. If we don't boost our national savings rate, with trillion dollar deficits as far as the eye can see, the Chinese piece of our multilateral trade deficit just goes somewhere else. It goes to a higher-cost producer and that taxes the American people.'
Treasury Secretary Timothy F Geithner said last week that a more flexible yuan would allow China to pursue 'a more effective, independent monetary policy, which is particularly important now, with China's economy facing a risk of inflation in goods and in asset prices'
China shouldn't cave to the pressure and should revalue the yuan when its financial system is more developed, Dr Roach said.
'They've still got a long way to go in opening up their capital account, opening up their financial system and making certain that their financial institutions can be reasonably well protected from the ups and downs of financial markets and currency gyrations.
'It's a process. Over the next 10 years, you will see China take enormous steps toward making their currency fully convertible but it will take that long or possibly even longer to do that.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Going up: Property prices rose 12.4% in May from a year ago, the second-fastest pace on record. The banking regulator sees growing credit risks in the real estate industry and warns of increasing pressure from non-performing loans
Wednesday, June 16, 2010
ST : Sales of new private homes cool down
Jun 16, 2010
Sales of new private homes cool down
But prices are holding and sales figures are still considered healthy
By Joyce Teo
THE triple whammy of a jittery stock market, the euro debt crisis and high prices put the brakes on the private home market last month.
New sales hit 1,078 units - about half of April's near-record 2,208 units and the lowest monthly level seen this year.
But prices have held up from April and the sales numbers, while substantially down, are considered a good showing.
Analysts believe the market is now in a holding pattern, with developers ready to increase the pace of launches once demand picks up again, perhaps after the school holidays, World Cup and an uptick in Europe's fortunes.
What has changed, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak, is that 'the exuberance is giving way to a more rational buying pattern'.
Last month's figures brought total sales in the first five months of the year to 7,666 units, already more than half the 14,688 units sold in last year's hot market. The record was set in 2007 with 14,811 units sold. Developers launched 1,134 units last month, down from 2,085 in April, according to Urban Redevelopment Authority data yesterday.
Colliers International research and advisory director Tay Huey Ying said the healthy level of launches and sales despite global uncertainties show the strength of underlying demand.
Still, buyer resistance towards higher-priced units continued into last month from April, she said. Nearly 80 per cent of non-landed private residential sales last month were priced at $1,500 per sq ft (psf) and below, she noted.
Not surprisingly, the high-end sector was quiet last month, with only 179 units sold, the lowest level this year.
Mid-tier projects on the city fringes garnered the highest sales last month, but the top seller was a mass market project, the 1,145-unit The Minton in Hougang. This new launch sold 204 units at a median price of $849 psf. Other projects all had sales of below 100 units each.
Casa Aerata in Geylang - which had mostly one- and two-bedders from just 388 sq ft to 603 sq ft - sold all 78 units at a median price of $939 psf.
Another suburban launch last month, the 393-unit Flamingo Valley in Siglap Road, sold 46 units at a median price of $1,259 psf. The 536-unit The Cascadia in Bukit Timah Road sold 72 units at a median price of $1,464 psf.
This month will be quieter than last month, with sales tipped to reach 650 to 800 units as buyers turn their attention to the World Cup and the problems in Europe. Other prospective buyers may be overseas for the school holidays.
That will prompt developers to stay selective in their project launches, releasing units in smaller batches, said Ms Tay.
But the slowdown is likely to be temporary, according to Knight Frank chairman Tan Tiong Cheng. 'The property market is holding well. July sales would be a better indication of the market as everybody is taking a breather now,' he said.
CB Richard Ellis executive director, residential, Mr Joseph Tan, said last month's prices have more or less been maintained at April levels and are expected to hold up this month. Knight Frank's Mr Tan also sees stable values ahead, adding that developers are unlikely to push for higher prices in new launches due to the substantial amount of impending land sales.
The Government will be releasing a record amount of land in the second half of this year. Most experts expect new home sales to hit 12,000 to 14,000 units for the year.
joyceteo@sph.com.sg
Sales of new private homes cool down
But prices are holding and sales figures are still considered healthy
By Joyce Teo
THE triple whammy of a jittery stock market, the euro debt crisis and high prices put the brakes on the private home market last month.
New sales hit 1,078 units - about half of April's near-record 2,208 units and the lowest monthly level seen this year.
But prices have held up from April and the sales numbers, while substantially down, are considered a good showing.
Analysts believe the market is now in a holding pattern, with developers ready to increase the pace of launches once demand picks up again, perhaps after the school holidays, World Cup and an uptick in Europe's fortunes.
What has changed, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak, is that 'the exuberance is giving way to a more rational buying pattern'.
Last month's figures brought total sales in the first five months of the year to 7,666 units, already more than half the 14,688 units sold in last year's hot market. The record was set in 2007 with 14,811 units sold. Developers launched 1,134 units last month, down from 2,085 in April, according to Urban Redevelopment Authority data yesterday.
Colliers International research and advisory director Tay Huey Ying said the healthy level of launches and sales despite global uncertainties show the strength of underlying demand.
Still, buyer resistance towards higher-priced units continued into last month from April, she said. Nearly 80 per cent of non-landed private residential sales last month were priced at $1,500 per sq ft (psf) and below, she noted.
Not surprisingly, the high-end sector was quiet last month, with only 179 units sold, the lowest level this year.
Mid-tier projects on the city fringes garnered the highest sales last month, but the top seller was a mass market project, the 1,145-unit The Minton in Hougang. This new launch sold 204 units at a median price of $849 psf. Other projects all had sales of below 100 units each.
Casa Aerata in Geylang - which had mostly one- and two-bedders from just 388 sq ft to 603 sq ft - sold all 78 units at a median price of $939 psf.
Another suburban launch last month, the 393-unit Flamingo Valley in Siglap Road, sold 46 units at a median price of $1,259 psf. The 536-unit The Cascadia in Bukit Timah Road sold 72 units at a median price of $1,464 psf.
This month will be quieter than last month, with sales tipped to reach 650 to 800 units as buyers turn their attention to the World Cup and the problems in Europe. Other prospective buyers may be overseas for the school holidays.
That will prompt developers to stay selective in their project launches, releasing units in smaller batches, said Ms Tay.
But the slowdown is likely to be temporary, according to Knight Frank chairman Tan Tiong Cheng. 'The property market is holding well. July sales would be a better indication of the market as everybody is taking a breather now,' he said.
CB Richard Ellis executive director, residential, Mr Joseph Tan, said last month's prices have more or less been maintained at April levels and are expected to hold up this month. Knight Frank's Mr Tan also sees stable values ahead, adding that developers are unlikely to push for higher prices in new launches due to the substantial amount of impending land sales.
The Government will be releasing a record amount of land in the second half of this year. Most experts expect new home sales to hit 12,000 to 14,000 units for the year.
joyceteo@sph.com.sg
ST : Punggol EC site draws cautious response
Jun 16, 2010
Punggol EC site draws cautious response
Of five bidders, NTUC Choice Homes' joint venture puts in highest offer of $308 psf ppr
By Joyce Teo
FIVE bidders made a play for an executive condominium (EC) site near Punggol MRT station, with the highest offer within market expectations.
The cautious response is in contrast to recent tenders which attracted a high number of offers or bumper bids from developers keen to get their hands on land, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
A joint venture between NTUC Choice Homes Co-operative and Chip Eng Seng lodged the top bid of $223.7 million or $308 per sq ft per plot ratio (psf ppr) for the Punggol site.
NTUC Choice Homes yesterday said it plans to develop the 99-year leasehold site at the junction of Punggol Field and Punggol Road into a 17-storey, 600-unit project with full condo facilities. It said it will sell the EC at the prevailing market prices and stated that it is 'committed to provide affordable housing' as the project's breakeven price is around $600 psf.
The site has a gross floor area of 726,477 sq ft and will be the first EC to be offered in Punggol.
NTUC Choice Homes will hold a 60 per cent interest through its subsidiary Choicehomes Investments while Chip Eng Seng unit CEL Development will hold 40 per cent.
Their winning bid is about 50 per cent higher than the trigger bid of $147.7 million and about 4 per cent above the second highest bid of $296.3 psf ppr from Hoi Hup Realty and Sunway Developments.
China-based Qindao Construction was next with $280.5 psf ppr.
The Punggol site is the fourth EC tender this year. The previous three had attracted seven to 11 bids.
CBRE Research director Leonard Tay estimated a breakeven price of $580 to $600 psf and a possible $650 psf selling price.
Mr Mak expects a selling price of $700 to $740 psf, assuming the breakeven level is at $610 to $640 psf.
In the resale market, units in Park Green, The Rivervale and The Florida were sold at $500 to $620 psf between January and last month, Mr Tay noted.
Besides new families, HDB residents from Punggol New Town will find the EC an attractive upgrade option, he said.
Median prices of HDB five-room and executive resale flats in the area were at $430,000 and $497,500, respectively, in the first quarter of this year, he said.
joyceteo@sph.com.sg
Punggol EC site draws cautious response
Of five bidders, NTUC Choice Homes' joint venture puts in highest offer of $308 psf ppr
By Joyce Teo
FIVE bidders made a play for an executive condominium (EC) site near Punggol MRT station, with the highest offer within market expectations.
The cautious response is in contrast to recent tenders which attracted a high number of offers or bumper bids from developers keen to get their hands on land, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
A joint venture between NTUC Choice Homes Co-operative and Chip Eng Seng lodged the top bid of $223.7 million or $308 per sq ft per plot ratio (psf ppr) for the Punggol site.
NTUC Choice Homes yesterday said it plans to develop the 99-year leasehold site at the junction of Punggol Field and Punggol Road into a 17-storey, 600-unit project with full condo facilities. It said it will sell the EC at the prevailing market prices and stated that it is 'committed to provide affordable housing' as the project's breakeven price is around $600 psf.
The site has a gross floor area of 726,477 sq ft and will be the first EC to be offered in Punggol.
NTUC Choice Homes will hold a 60 per cent interest through its subsidiary Choicehomes Investments while Chip Eng Seng unit CEL Development will hold 40 per cent.
Their winning bid is about 50 per cent higher than the trigger bid of $147.7 million and about 4 per cent above the second highest bid of $296.3 psf ppr from Hoi Hup Realty and Sunway Developments.
China-based Qindao Construction was next with $280.5 psf ppr.
The Punggol site is the fourth EC tender this year. The previous three had attracted seven to 11 bids.
CBRE Research director Leonard Tay estimated a breakeven price of $580 to $600 psf and a possible $650 psf selling price.
Mr Mak expects a selling price of $700 to $740 psf, assuming the breakeven level is at $610 to $640 psf.
In the resale market, units in Park Green, The Rivervale and The Florida were sold at $500 to $620 psf between January and last month, Mr Tay noted.
Besides new families, HDB residents from Punggol New Town will find the EC an attractive upgrade option, he said.
Median prices of HDB five-room and executive resale flats in the area were at $430,000 and $497,500, respectively, in the first quarter of this year, he said.
joyceteo@sph.com.sg
ST : Guidebook, certification for builders to go green
Jun 16, 2010
Guidebook, certification for builders to go green
By Grace Chua
CONSTRUCTING a building requires a lot of raw materials, water and energy - producing up to 10 per cent of the building's total carbon emissions over its lifetime.
To get the multibillion-dollar construction industry in Singapore to cut back on energy, recycle more and be more environmentally friendly, the authorities and trade groups have put together new incentives.
Yesterday, the Building and Construction Authority (BCA) launched its Green And Gracious Builder Guide, which lists ways to recycle materials, save energy and keep the peace with residents and communities near construction sites.
Joining the push is the Singapore Contractors Association Limited (Scal) and Singapore Environment Council, which have put together a certification scheme for contractors employing eco-friendly practices - a kind of green label for the construction industry.
The scheme aims to give Singapore's 3,000 to 4,000 small and medium-sized contractors the resources and know-how to cut waste, noise, energy use and pollution, said Scal president Andrew Khng.
This differs from existing green building programmes such as the Green Mark certification, which looks at a building's environmental impact over time but may not account for the impact of its construction.
Both the guide and the scheme were launched at a conference on sustainable green practices for Asean contractors yesterday. Ms Grace Fu, Senior Minister of State for National Development and Education, who was the guest of honour, said: 'As buildings worldwide consume about 40 per cent of all raw materials, the building sector has an important role in ensuring that our future developments are not only economically, but also environmentally sustainable.'
At least 21 companies here, winners of the BCA's Green and Gracious Builder Award last year and this year, are putting sustainable practices in place.
For example, no bar of steel or plank of timber goes to waste at Gammon Construction's worksites. Its sites even have small, medium and large generators to match the demand for power. In the day, when power demand is high, the largest generator kicks in, but at night, when power demand is lower, the smallest generator is used.
While the measures might push a project's upfront costs up by 15 per cent, these costs are easily recouped from energy savings and other savings over the project's two- or three-year lifetime, said Gammon executive director Jon Button.
Guidebook, certification for builders to go green
By Grace Chua
CONSTRUCTING a building requires a lot of raw materials, water and energy - producing up to 10 per cent of the building's total carbon emissions over its lifetime.
To get the multibillion-dollar construction industry in Singapore to cut back on energy, recycle more and be more environmentally friendly, the authorities and trade groups have put together new incentives.
Yesterday, the Building and Construction Authority (BCA) launched its Green And Gracious Builder Guide, which lists ways to recycle materials, save energy and keep the peace with residents and communities near construction sites.
Joining the push is the Singapore Contractors Association Limited (Scal) and Singapore Environment Council, which have put together a certification scheme for contractors employing eco-friendly practices - a kind of green label for the construction industry.
The scheme aims to give Singapore's 3,000 to 4,000 small and medium-sized contractors the resources and know-how to cut waste, noise, energy use and pollution, said Scal president Andrew Khng.
This differs from existing green building programmes such as the Green Mark certification, which looks at a building's environmental impact over time but may not account for the impact of its construction.
Both the guide and the scheme were launched at a conference on sustainable green practices for Asean contractors yesterday. Ms Grace Fu, Senior Minister of State for National Development and Education, who was the guest of honour, said: 'As buildings worldwide consume about 40 per cent of all raw materials, the building sector has an important role in ensuring that our future developments are not only economically, but also environmentally sustainable.'
At least 21 companies here, winners of the BCA's Green and Gracious Builder Award last year and this year, are putting sustainable practices in place.
For example, no bar of steel or plank of timber goes to waste at Gammon Construction's worksites. Its sites even have small, medium and large generators to match the demand for power. In the day, when power demand is high, the largest generator kicks in, but at night, when power demand is lower, the smallest generator is used.
While the measures might push a project's upfront costs up by 15 per cent, these costs are easily recouped from energy savings and other savings over the project's two- or three-year lifetime, said Gammon executive director Jon Button.
BT : Bank regulator warns of growing property credit risks
Business Times - 16 Jun 2010
Bank regulator warns of growing property credit risks
Banks told to report on risk exposure by end-June in bid to avert more bad loans
(HONG KONG) China's banking regulator said it sees growing credit risks in the nation's real-estate industry and warned of increasing pressure from non-performing loans.
Risks associated with home mortgages are growing and a 'chain effect' may reappear in real-estate development loans, the China Banking Regulatory Commission (CBRC) said in its annual report published on its website yesterday.
The regulator has told banks to report on risk exposure by the end of June to help prevent a credit boom from leading to more bad loans. Property-price gains spurred concerns that a record 9.59 trillion yuan (S$2 trillion) of loans extended last year to combat the effects of the global financial crisis may be causing asset bubbles.
China is 'closely monitoring the growth in the volume and the quality of mortgage loans, but we don't think it has reached an alarming level,' said Kelvin Lau, a Hong Kong-based economist at Standard Chartered. 'There are still many tools the central government can use to tackle the problem if things get out of control.'
Credit risks in some industries that have seen a surge in investment may 'emerge soon' as restructuring efforts intensify, the regulator said in the report. The rise in investment exacerbated the problem of excess capacity and over- development, it said.
The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, has dropped 22 per cent this year. Markets in China are closed from June 14 to 16 for a holiday.
'Coming through the global financial crisis, China's banking sector has stepped onto a new level,' CBRC chairman Liu Mingkang said in the report. 'We remain cool-headed about the weaknesses to be addressed and fixed.'
CBRC's report comes as Agricultural Bank of China Ltd, the country's largest by number of customers, prepares to sell shares in Shanghai and Hong Kong in what could be the world's largest initial public offering.
Agricultural Bank may raise at least US$23 billion from the total offering, people with knowledge of the matter said last week. The IPO will likely surpass the US$22 billion sale in 2006 by Industrial & Commercial Bank of China Ltd.
China, the world's fastest-growing major economy, expanded 11.9 per cent in the first quarter from a year earlier. Measures to cool the real-estate market have included a ban on loans for third-home purchases and raising mortgage rates and down-payment requirements for second-home purchases.
Property prices in the country rose 12.4 per cent in May, the second-fastest pace on record, showing little sign yet that the government crackdown on speculation will work to avert an asset-price bubble.
Some banks in China have transferred loans off their balance sheets in an effort to circumvent regulatory requirements and capital and loan-loss provisioning, the CBRC said in the report.
Banks still assume the risks related to loan management and recovery even though the loans are not booked on their balance sheets, it said. As a result, rising risks associated with banks' activities in transferring their exposures off the balance sheet need 'close supervisory attention.'
The watchdog said concerns about bank lending to local government financing vehicles 'weighs high' on its supervisory agenda as some banks have accumulated 'large' exposures to them.
Local governments in China have been raising funds through the vehicles to circumvent regulations that prevent them from borrowing directly. A crackdown on such loans could trigger a 'gigantic wave' of bad debts as projects are left without funding, Northwestern University Professor Victor Shih said in March.
China ordered local governments to ensure repayment of debts by their financing units and concentrate on completing projects already under way. Financing units that fund only public projects and rely on fiscal income to repay debt should stop spending, the State Council said earlier this month. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Boom's shadow: Unabated property price gains have spurred concerns that record loans may be causing asset bubbles. Some banks have transferred loans off their balance sheets to circumvent regulatory requirements and capital and loan-loss provisioning, the CBRC said
Bank regulator warns of growing property credit risks
Banks told to report on risk exposure by end-June in bid to avert more bad loans
(HONG KONG) China's banking regulator said it sees growing credit risks in the nation's real-estate industry and warned of increasing pressure from non-performing loans.
Risks associated with home mortgages are growing and a 'chain effect' may reappear in real-estate development loans, the China Banking Regulatory Commission (CBRC) said in its annual report published on its website yesterday.
The regulator has told banks to report on risk exposure by the end of June to help prevent a credit boom from leading to more bad loans. Property-price gains spurred concerns that a record 9.59 trillion yuan (S$2 trillion) of loans extended last year to combat the effects of the global financial crisis may be causing asset bubbles.
China is 'closely monitoring the growth in the volume and the quality of mortgage loans, but we don't think it has reached an alarming level,' said Kelvin Lau, a Hong Kong-based economist at Standard Chartered. 'There are still many tools the central government can use to tackle the problem if things get out of control.'
Credit risks in some industries that have seen a surge in investment may 'emerge soon' as restructuring efforts intensify, the regulator said in the report. The rise in investment exacerbated the problem of excess capacity and over- development, it said.
The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, has dropped 22 per cent this year. Markets in China are closed from June 14 to 16 for a holiday.
'Coming through the global financial crisis, China's banking sector has stepped onto a new level,' CBRC chairman Liu Mingkang said in the report. 'We remain cool-headed about the weaknesses to be addressed and fixed.'
CBRC's report comes as Agricultural Bank of China Ltd, the country's largest by number of customers, prepares to sell shares in Shanghai and Hong Kong in what could be the world's largest initial public offering.
Agricultural Bank may raise at least US$23 billion from the total offering, people with knowledge of the matter said last week. The IPO will likely surpass the US$22 billion sale in 2006 by Industrial & Commercial Bank of China Ltd.
China, the world's fastest-growing major economy, expanded 11.9 per cent in the first quarter from a year earlier. Measures to cool the real-estate market have included a ban on loans for third-home purchases and raising mortgage rates and down-payment requirements for second-home purchases.
Property prices in the country rose 12.4 per cent in May, the second-fastest pace on record, showing little sign yet that the government crackdown on speculation will work to avert an asset-price bubble.
Some banks in China have transferred loans off their balance sheets in an effort to circumvent regulatory requirements and capital and loan-loss provisioning, the CBRC said in the report.
Banks still assume the risks related to loan management and recovery even though the loans are not booked on their balance sheets, it said. As a result, rising risks associated with banks' activities in transferring their exposures off the balance sheet need 'close supervisory attention.'
The watchdog said concerns about bank lending to local government financing vehicles 'weighs high' on its supervisory agenda as some banks have accumulated 'large' exposures to them.
Local governments in China have been raising funds through the vehicles to circumvent regulations that prevent them from borrowing directly. A crackdown on such loans could trigger a 'gigantic wave' of bad debts as projects are left without funding, Northwestern University Professor Victor Shih said in March.
China ordered local governments to ensure repayment of debts by their financing units and concentrate on completing projects already under way. Financing units that fund only public projects and rely on fiscal income to repay debt should stop spending, the State Council said earlier this month. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Boom's shadow: Unabated property price gains have spurred concerns that record loans may be causing asset bubbles. Some banks have transferred loans off their balance sheets to circumvent regulatory requirements and capital and loan-loss provisioning, the CBRC said
BT : Chip Eng Seng and partner plan EC project
Business Times - 16 Jun 2010
Chip Eng Seng and partner plan EC project
The developers put in highest bid for Punggol site
By UMA SHANKARI
NTUC Choice Homes and Chip Eng Seng intend to build a 600-unit executive condominium (EC) on a land parcel in Punggol sold by the state.
The developers' joint bid of $223.7 million, or $308 per square foot per plot ratio (psf ppr), trumped four others at the close of the government tender yesterday.
If awarded the 99-year leasehold site, the companies plan to build a 17-storey, 600-unit residential project with full condominium facilities.
It will be the first EC development in Punggol. EC units are initially sold with eligibility and ownership restrictions similar to HDB's public housing flats, but will be converted to private housing after 10 years.
The break-even price is estimated at around $600 psf and flats will be sold at the 'prevailing market price', the companies said.
NTUC Choice Homes will take a 60 per cent stake in the project while Chip Eng Seng will hold the remaining 40 per cent. The two companies have jointly developed three projects to date - condos at Upper East Coast (Riviera Residences) and Ang Mo Kio (Grandeur 8) as well as an EC at Bishan called Bishan Loft.
'We are excited because this will be the first executive condo in Punggol,' Chip Eng Seng group chief executive Raymond Chia told BT. 'We are also delighted to partner NTUC Choice Homes again and emerge together as the top bidders for this site.'
The top bid of $308 psf ppr is within expectations and units in the upcoming project could possibly sell at about $650 psf, said CBRE Research director Leonard Tay.
CBRE's data shows that in the resale market, units in Park Green, The Rivervale and The Florida fetched $500-$620 psf between January and May 2010.
But while the top bid was within expectations, the large land supply promised for the second half 2010 government land sales programme is beginning to have an impact, analysts noted. This is the fourth EC site to be sold by the government this year.
'The number of bidders in the four EC land tenders have slowly declined from 11 bidders in the tender that closed on March 4 to the present five bidders, as the developers' appetite for land is gradually being satisfied,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
NTUC Choice Homes' and Chip Eng Seng's bid was just 4 per cent higher than the second highest bid of $215.2 million or $296 psf ppr from Hoi Hup Realty and Sunway Developments. The top bid was also 28 per cent higher than the lowest bid of $174.4 million or $240 psf ppr from Frasers Centrepoint.
The EC plot at the corner of Punggol Field and Punggol Road was launched for sale earlier this year after an unnamed developer agreed to bid at least $147.7 million or $203 psf ppr for it.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Chip Eng Seng and partner plan EC project
The developers put in highest bid for Punggol site
By UMA SHANKARI
NTUC Choice Homes and Chip Eng Seng intend to build a 600-unit executive condominium (EC) on a land parcel in Punggol sold by the state.
The developers' joint bid of $223.7 million, or $308 per square foot per plot ratio (psf ppr), trumped four others at the close of the government tender yesterday.
If awarded the 99-year leasehold site, the companies plan to build a 17-storey, 600-unit residential project with full condominium facilities.
It will be the first EC development in Punggol. EC units are initially sold with eligibility and ownership restrictions similar to HDB's public housing flats, but will be converted to private housing after 10 years.
The break-even price is estimated at around $600 psf and flats will be sold at the 'prevailing market price', the companies said.
NTUC Choice Homes will take a 60 per cent stake in the project while Chip Eng Seng will hold the remaining 40 per cent. The two companies have jointly developed three projects to date - condos at Upper East Coast (Riviera Residences) and Ang Mo Kio (Grandeur 8) as well as an EC at Bishan called Bishan Loft.
'We are excited because this will be the first executive condo in Punggol,' Chip Eng Seng group chief executive Raymond Chia told BT. 'We are also delighted to partner NTUC Choice Homes again and emerge together as the top bidders for this site.'
The top bid of $308 psf ppr is within expectations and units in the upcoming project could possibly sell at about $650 psf, said CBRE Research director Leonard Tay.
CBRE's data shows that in the resale market, units in Park Green, The Rivervale and The Florida fetched $500-$620 psf between January and May 2010.
But while the top bid was within expectations, the large land supply promised for the second half 2010 government land sales programme is beginning to have an impact, analysts noted. This is the fourth EC site to be sold by the government this year.
'The number of bidders in the four EC land tenders have slowly declined from 11 bidders in the tender that closed on March 4 to the present five bidders, as the developers' appetite for land is gradually being satisfied,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
NTUC Choice Homes' and Chip Eng Seng's bid was just 4 per cent higher than the second highest bid of $215.2 million or $296 psf ppr from Hoi Hup Realty and Sunway Developments. The top bid was also 28 per cent higher than the lowest bid of $174.4 million or $240 psf ppr from Frasers Centrepoint.
The EC plot at the corner of Punggol Field and Punggol Road was launched for sale earlier this year after an unnamed developer agreed to bid at least $147.7 million or $203 psf ppr for it.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Developers and buyers headed for a stalemate
Business Times - 16 Jun 2010
Developers and buyers headed for a stalemate
Big drop in May sales could signal the start of a slowdown, with neither side in any hurry to transact
By KALPANA RASHIWALA
(SINGAPORE) Developers sold just 1,078 private homes in May - about half the 2,208 units they transacted in April. This could mark the start of a period of slower sales as developers weigh their options and buyers bide their time.
The two parties could have a standoff for a little while, predicts DTZ executive director (consulting) Ong Choon Fah. 'There's no great push factor to launch projects in June when you weigh the pros and cons. Potential buyers may also hold back purchases as they may not sense a great urgency to buy.'
Agreeing, Knight Frank chairman Tan Tiong Cheng said: 'Developers will try their best to maintain prices; so what if they delay launches for a couple of months? After all, most of them have strong balance sheets and the Singapore economy seems to be continuing to perform well.'
Market watchers were not alarmed by the steep drop in May developer sales. For one, the 1,533-unit average monthly sales figure for the first five months of 2010 is above the 1,224 unit average monthly sales volume for the whole of 2009, which was a boom year, observes CB Richard Ellis executive director (residential) Joseph Tan.
Jones Lang LaSalle's South-east Asia and Singapore research head Chua Yang Liang also points out that 'compared with the collapse of Lehman Brothers in Q3 2008, the impact of the eurozone debt crisis on the Singapore residential market has been less destabilising thus far.'
During the dark days between September 2008 and January 2009, developers sold only between 108 and 376 units per month.
Some property consultants are predicting this month's sales will be under 1,000 units. Including the latest May number, developers have sold 7,666 units in the first five months of 2010.
Even assuming slower sales in June and the second half, consultants predict developers will end 2010 with total sales of 12,000-15,000 units. Primary market sales for the whole of 2009 totalled 14,688 private homes.
Developers launched 1,134 private homes in May, down from 2,085 units in April.
A confluence of factors - the June school holidays, the World Cup, the brewing economic crisis in Europe, and the onset of the Hungry Ghosts Month in August - may cause developers to go a bit slower on property launches in the near future, some property consultants suggest.
Also, potential buyers may not see great urgency to commit as the bumper Government Land Sales Programme for the second half of this year means they will have a greater choice of projects to consider in the near future.
'Over the next couple of months, sales could be around 900-1,300 units per month until more positive signs appear to entice buyers back into the market. It also depends on the projects that will be launched and their pricing levels. Already, there's resistance to high prices, particularly in the suburban areas,' says DTZ South-east Asia research head Chua Chor Hoon.
Colliers International analysis also showed buyers' resistance towards higher-priced units continuing in May. The proportion of units priced above $1,000 psf has fallen from 69.2 per cent of developers' sales in March to 66.1 per cent in April and 55.5 per cent in May.
The firm's director Tay Huey Ying also noted that the most expensive transaction in May at $3,641 psf for a unit at Orchard View is significantly lower than the most expensive primary market transaction in April at $4,207 psf for a unit at The Orchard Residences.
For May, the Rest of the Central Region made up the bulk or 41.8 per cent of homes sold by developers. This was contributed by projects such as the newly-launched Casa Aerata at Lorong 26 Geylang, The Cascadia in Bukit Timah Road as well as continued sales in projects released earlier such as Waterbank at Dakota (52 units) and The Interlace (44 units).
Last month's top seller was Kheng Leong's The Minton in Hougang with 204 units sold at a median price of $849 psf, followed by Casa Aerata with all 78 units sold in the project, comprising mostly one- and two-bedroom units, at a median price of $939 psf, observed CB Richard Ellis executive director Joseph Tan. The Cascadia saw 72 units transacted in the primary market at $1,464 psf median price.
Waterbank at Dakota and Tree House in Chestnut Avenue, which were launched in April, saw sales of 52 units each at median prices of $1,092 psf and $831 psf respectively.
BT's count showed that a total of over 50 units were returned to developers in May.
DTZ's Mrs Ong says that even as developers hold off launches in June, they will watch the market very carefully especially bids at upcoming state land tenders.
'If winning bids ease, developers will have pricing flexibility for their end unit prices. If land prices remain buoyant or even surge further, developers may think they have some respite from pressure to moderate their prices,' she added.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Developers and buyers headed for a stalemate
Big drop in May sales could signal the start of a slowdown, with neither side in any hurry to transact
By KALPANA RASHIWALA
(SINGAPORE) Developers sold just 1,078 private homes in May - about half the 2,208 units they transacted in April. This could mark the start of a period of slower sales as developers weigh their options and buyers bide their time.
The two parties could have a standoff for a little while, predicts DTZ executive director (consulting) Ong Choon Fah. 'There's no great push factor to launch projects in June when you weigh the pros and cons. Potential buyers may also hold back purchases as they may not sense a great urgency to buy.'
Agreeing, Knight Frank chairman Tan Tiong Cheng said: 'Developers will try their best to maintain prices; so what if they delay launches for a couple of months? After all, most of them have strong balance sheets and the Singapore economy seems to be continuing to perform well.'
Market watchers were not alarmed by the steep drop in May developer sales. For one, the 1,533-unit average monthly sales figure for the first five months of 2010 is above the 1,224 unit average monthly sales volume for the whole of 2009, which was a boom year, observes CB Richard Ellis executive director (residential) Joseph Tan.
Jones Lang LaSalle's South-east Asia and Singapore research head Chua Yang Liang also points out that 'compared with the collapse of Lehman Brothers in Q3 2008, the impact of the eurozone debt crisis on the Singapore residential market has been less destabilising thus far.'
During the dark days between September 2008 and January 2009, developers sold only between 108 and 376 units per month.
Some property consultants are predicting this month's sales will be under 1,000 units. Including the latest May number, developers have sold 7,666 units in the first five months of 2010.
Even assuming slower sales in June and the second half, consultants predict developers will end 2010 with total sales of 12,000-15,000 units. Primary market sales for the whole of 2009 totalled 14,688 private homes.
Developers launched 1,134 private homes in May, down from 2,085 units in April.
A confluence of factors - the June school holidays, the World Cup, the brewing economic crisis in Europe, and the onset of the Hungry Ghosts Month in August - may cause developers to go a bit slower on property launches in the near future, some property consultants suggest.
Also, potential buyers may not see great urgency to commit as the bumper Government Land Sales Programme for the second half of this year means they will have a greater choice of projects to consider in the near future.
'Over the next couple of months, sales could be around 900-1,300 units per month until more positive signs appear to entice buyers back into the market. It also depends on the projects that will be launched and their pricing levels. Already, there's resistance to high prices, particularly in the suburban areas,' says DTZ South-east Asia research head Chua Chor Hoon.
Colliers International analysis also showed buyers' resistance towards higher-priced units continuing in May. The proportion of units priced above $1,000 psf has fallen from 69.2 per cent of developers' sales in March to 66.1 per cent in April and 55.5 per cent in May.
The firm's director Tay Huey Ying also noted that the most expensive transaction in May at $3,641 psf for a unit at Orchard View is significantly lower than the most expensive primary market transaction in April at $4,207 psf for a unit at The Orchard Residences.
For May, the Rest of the Central Region made up the bulk or 41.8 per cent of homes sold by developers. This was contributed by projects such as the newly-launched Casa Aerata at Lorong 26 Geylang, The Cascadia in Bukit Timah Road as well as continued sales in projects released earlier such as Waterbank at Dakota (52 units) and The Interlace (44 units).
Last month's top seller was Kheng Leong's The Minton in Hougang with 204 units sold at a median price of $849 psf, followed by Casa Aerata with all 78 units sold in the project, comprising mostly one- and two-bedroom units, at a median price of $939 psf, observed CB Richard Ellis executive director Joseph Tan. The Cascadia saw 72 units transacted in the primary market at $1,464 psf median price.
Waterbank at Dakota and Tree House in Chestnut Avenue, which were launched in April, saw sales of 52 units each at median prices of $1,092 psf and $831 psf respectively.
BT's count showed that a total of over 50 units were returned to developers in May.
DTZ's Mrs Ong says that even as developers hold off launches in June, they will watch the market very carefully especially bids at upcoming state land tenders.
'If winning bids ease, developers will have pricing flexibility for their end unit prices. If land prices remain buoyant or even surge further, developers may think they have some respite from pressure to moderate their prices,' she added.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : China likely to avoid US-style housing crash
Business Times - 16 Jun 2010
China likely to avoid US-style housing crash
Jeremy Grantham praises its moves to rein in asset bubbles
(SYDNEY) Jeremy Grantham, who correctly predicted US stocks would lose money in the past decade, said China's 'experimental' approach to reining in asset bubbles may help it avoid a US-style housing market crash.
China's lawmakers have raised down payment requirements and mortgage rates and restricted loans for multiple-home buyers as they seek to dampen record property price gains. US Federal Reserve chairman Ben Bernanke said in January the central bank's low interest rates didn't cause the past decade's housing bubble and that better regulation would have been more effective in limiting the boom.
'Bernanke for example has not admitted that asset class bubbles matter at all, but the Chinese know they do,' Mr Grantham, chief investment strategist at Grantham Mayo Van Otterloo & Co, said at a media briefing in Sydney yesterday. China is 'adventurous in trying new things, and they're really quite aware of potential dangers'.
China's banking regulator said yesterday it sees growing credit risks in the nation's real-estate industry and warned of increasing pressure from non-performing loans. The nation's property prices rose 12.4 per cent in May from a year earlier, the second-fastest pace on record.
An S&P/Case Shiller index of house prices in 20 US cities fell 33 per cent from its peak in July 2006 to April 2009.
While China does have a housing bubble, it's not as significant as the US's because fewer people own expensive houses and they had to pay larger deposits on them, Mr Grantham said. There isn't a stock market bubble in China, he added.
Mr Grantham, whose firm managed US$106.3 billion at March 31 according to its website, is best-known for his bearish calls on US stocks. In 2000, he accurately predicted that US stocks would lose money in the coming decade. The Standard & Poor's 500 index lost one per cent a year in the 10 years ended Dec 31, 2009. In March 2009, he recommended investors get back into stocks, just as equity prices reached a 12-year low.
The S&P 500 rose nearly 80 per cent between its low on March 9 2009 and April 23 this year. The index fell 0.2 per cent to close at 1,089.63 yesterday in New York.
Mr Grantham, who estimates the fair value of the S&P 500 is 875, said in a quarterly newsletter posted on GMO's website in April that the market's rally was 'excessive' and was fuelled more by the Fed's monetary policy than by the rebound in the economy, which is facing 'seven lean years'. Keeping benchmark lending rates near record lows for too long may be a 'disaster waiting to happen', he said.
Mr Bernanke 'may lead us for the third time in 12 years off yet another cliff by keeping rates so low for so long that speculators make hay', he said.
GMO is buying 'high quality blue chip' stocks, betting they'll outperform more speculative companies in the next seven years, Mr Grantham said. Its picks for its Quality Fund don't include financial stocks, he noted.
'Financial crises are a rhythm of our capitalist system and with Bernanke and Greenspan around, they have become even more embedded,' he said.
Some of China's measures to control bubbles won't work, while others will work too well and need to be pulled back, according to Mr Grantham, 71. 'China is more experimental and that's what life's all about as far as I'm concerned,' he said. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
China likely to avoid US-style housing crash
Jeremy Grantham praises its moves to rein in asset bubbles
(SYDNEY) Jeremy Grantham, who correctly predicted US stocks would lose money in the past decade, said China's 'experimental' approach to reining in asset bubbles may help it avoid a US-style housing market crash.
China's lawmakers have raised down payment requirements and mortgage rates and restricted loans for multiple-home buyers as they seek to dampen record property price gains. US Federal Reserve chairman Ben Bernanke said in January the central bank's low interest rates didn't cause the past decade's housing bubble and that better regulation would have been more effective in limiting the boom.
'Bernanke for example has not admitted that asset class bubbles matter at all, but the Chinese know they do,' Mr Grantham, chief investment strategist at Grantham Mayo Van Otterloo & Co, said at a media briefing in Sydney yesterday. China is 'adventurous in trying new things, and they're really quite aware of potential dangers'.
China's banking regulator said yesterday it sees growing credit risks in the nation's real-estate industry and warned of increasing pressure from non-performing loans. The nation's property prices rose 12.4 per cent in May from a year earlier, the second-fastest pace on record.
An S&P/Case Shiller index of house prices in 20 US cities fell 33 per cent from its peak in July 2006 to April 2009.
While China does have a housing bubble, it's not as significant as the US's because fewer people own expensive houses and they had to pay larger deposits on them, Mr Grantham said. There isn't a stock market bubble in China, he added.
Mr Grantham, whose firm managed US$106.3 billion at March 31 according to its website, is best-known for his bearish calls on US stocks. In 2000, he accurately predicted that US stocks would lose money in the coming decade. The Standard & Poor's 500 index lost one per cent a year in the 10 years ended Dec 31, 2009. In March 2009, he recommended investors get back into stocks, just as equity prices reached a 12-year low.
The S&P 500 rose nearly 80 per cent between its low on March 9 2009 and April 23 this year. The index fell 0.2 per cent to close at 1,089.63 yesterday in New York.
Mr Grantham, who estimates the fair value of the S&P 500 is 875, said in a quarterly newsletter posted on GMO's website in April that the market's rally was 'excessive' and was fuelled more by the Fed's monetary policy than by the rebound in the economy, which is facing 'seven lean years'. Keeping benchmark lending rates near record lows for too long may be a 'disaster waiting to happen', he said.
Mr Bernanke 'may lead us for the third time in 12 years off yet another cliff by keeping rates so low for so long that speculators make hay', he said.
GMO is buying 'high quality blue chip' stocks, betting they'll outperform more speculative companies in the next seven years, Mr Grantham said. Its picks for its Quality Fund don't include financial stocks, he noted.
'Financial crises are a rhythm of our capitalist system and with Bernanke and Greenspan around, they have become even more embedded,' he said.
Some of China's measures to control bubbles won't work, while others will work too well and need to be pulled back, according to Mr Grantham, 71. 'China is more experimental and that's what life's all about as far as I'm concerned,' he said. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Tuesday, June 15, 2010
TODAY ONLINE : Height could hit en bloc profit
Height could hit en bloc profit
But some residents of Nim Gardens happy to stay, citing condominium's size, green surroundings
05:55 AM Jun 15, 2010
by Esther Ng
SINGAPORE - A planning provision has hampered the plans of some residents at Nim Gardens to make more money should their development go up for an en bloc sale. Nim Gardens in Seletar Hills is 10 storeys.
According to the rule, any new development cannot exceed this height, nor the gross floor area. This means residents would not see a bigger profit if the new development were limited to 10 storeys.
MediaCorp has learnt a resident had written to the Ministry of National Development in support of any new development to be built above Nim Gardens' current height.
When approached, the resident - who declined to be named - referred to the Urban Redevelopment Authority's (URA) April 2000 circular, which spelled out that a 10-storey block could be increased to 12 storeys. The revision allows for more flexibility in design and to free up more space for communal use.
But, the URA said the planning relaxation does not apply to Nim Gardens, saying: "We are not able to support any further intensification at this location as it may have an adverse impact on the environmental character of the neighbourhood, which is safeguarded for three-storey landed housing."
The area around Nim Gardens was part of an area designated for landed housing in 1994.
The sprawling 23,197 sq m site, was approved as a condominium development in 1982, with one block of four-storey apartments and three blocks of 10-storey apartments. There are 124 units there, each about 1,860 sq ft in area.
Mr Joseph Wong, 60, is happy to live there, saying: "Where can I get an apartment as big as this and birds chirping in such lush surroundings?"
Should Nim Gardens go en bloc, it could fetch $100 million or $286 psf per plot ratio, according to a conservative estimate from Chesterton Suntec International research and consultancy director Colin Tan.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
But some residents of Nim Gardens happy to stay, citing condominium's size, green surroundings
05:55 AM Jun 15, 2010
by Esther Ng
SINGAPORE - A planning provision has hampered the plans of some residents at Nim Gardens to make more money should their development go up for an en bloc sale. Nim Gardens in Seletar Hills is 10 storeys.
According to the rule, any new development cannot exceed this height, nor the gross floor area. This means residents would not see a bigger profit if the new development were limited to 10 storeys.
MediaCorp has learnt a resident had written to the Ministry of National Development in support of any new development to be built above Nim Gardens' current height.
When approached, the resident - who declined to be named - referred to the Urban Redevelopment Authority's (URA) April 2000 circular, which spelled out that a 10-storey block could be increased to 12 storeys. The revision allows for more flexibility in design and to free up more space for communal use.
But, the URA said the planning relaxation does not apply to Nim Gardens, saying: "We are not able to support any further intensification at this location as it may have an adverse impact on the environmental character of the neighbourhood, which is safeguarded for three-storey landed housing."
The area around Nim Gardens was part of an area designated for landed housing in 1994.
The sprawling 23,197 sq m site, was approved as a condominium development in 1982, with one block of four-storey apartments and three blocks of 10-storey apartments. There are 124 units there, each about 1,860 sq ft in area.
Mr Joseph Wong, 60, is happy to live there, saying: "Where can I get an apartment as big as this and birds chirping in such lush surroundings?"
Should Nim Gardens go en bloc, it could fetch $100 million or $286 psf per plot ratio, according to a conservative estimate from Chesterton Suntec International research and consultancy director Colin Tan.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST : S'pore still 9th priciest Asian city for expats
Jun 15, 2010
S'pore still 9th priciest Asian city for expats
SINGAPORE remains Asia's ninth priciest city for expatriates to live in, a spot it has occupied for the past six months, a cost of living survey revealed.
Compared with its ranking a year ago, it climbed one spot in Asia and has jumped six places to 67th position globally over the same period, mainly because of stronger exchange rates.
In taking ninth place, the Republic beat China's Guangzhou and Shenzhen, but was overtaken by Seoul, which climbed 12 places in Asia to reach fifth spot.
Said Mr Lee Quane, regional director of Asia for human resource firm ECA International, which conducted the survey: 'Singapore's rise continues a long-term trend.'
Prices of goods and services commonly bought by expatriates in Singapore have risen faster than those in other developed regional centres, ECA said.
Standard Chartered economist Alvin Liew ties it down to the continued rise in accommodation costs, driven by rental and property prices. 'The increase is faster here with land prices, and with cars, particularly with the prices of certificates of entitlement.'
Also, the Singdollar's strength relative to other currencies in the region has ensured Singapore stayed in the region's top 10 most expensive locations, ECA said.
'The cost of living differential between (Singapore) and Hong Kong has become smaller,' said Mr Lee.
This means it is more costly for companies bringing staff into Singapore.
But those sending staff out of the country will be able to maintain a staff member's standard of living at a lower cost, he added.
It is not just the Singdollar. Currency fluctuations are having the biggest impact on the rankings of Asian countries, ECA said.
For instance, the strengthening of the South Korean won against major currencies has hoisted Seoul and Busan into the top 10 of the Asian rankings, although the won has dipped in the last couple of months.
Tokyo is the most expensive city in Asia and the world, regaining that status for the first time in five years. Its ascent was driven by the continued strength of the yen.
The survey, conducted in March, calculates cost of living allowances for employees assigned around the world. It compiles data on allowances for goods and services consumed by these employees, such as food, drink, tobacco and clothing.
DICKSON LI
S'pore still 9th priciest Asian city for expats
SINGAPORE remains Asia's ninth priciest city for expatriates to live in, a spot it has occupied for the past six months, a cost of living survey revealed.
Compared with its ranking a year ago, it climbed one spot in Asia and has jumped six places to 67th position globally over the same period, mainly because of stronger exchange rates.
In taking ninth place, the Republic beat China's Guangzhou and Shenzhen, but was overtaken by Seoul, which climbed 12 places in Asia to reach fifth spot.
Said Mr Lee Quane, regional director of Asia for human resource firm ECA International, which conducted the survey: 'Singapore's rise continues a long-term trend.'
Prices of goods and services commonly bought by expatriates in Singapore have risen faster than those in other developed regional centres, ECA said.
Standard Chartered economist Alvin Liew ties it down to the continued rise in accommodation costs, driven by rental and property prices. 'The increase is faster here with land prices, and with cars, particularly with the prices of certificates of entitlement.'
Also, the Singdollar's strength relative to other currencies in the region has ensured Singapore stayed in the region's top 10 most expensive locations, ECA said.
'The cost of living differential between (Singapore) and Hong Kong has become smaller,' said Mr Lee.
This means it is more costly for companies bringing staff into Singapore.
But those sending staff out of the country will be able to maintain a staff member's standard of living at a lower cost, he added.
It is not just the Singdollar. Currency fluctuations are having the biggest impact on the rankings of Asian countries, ECA said.
For instance, the strengthening of the South Korean won against major currencies has hoisted Seoul and Busan into the top 10 of the Asian rankings, although the won has dipped in the last couple of months.
Tokyo is the most expensive city in Asia and the world, regaining that status for the first time in five years. Its ascent was driven by the continued strength of the yen.
The survey, conducted in March, calculates cost of living allowances for employees assigned around the world. It compiles data on allowances for goods and services consumed by these employees, such as food, drink, tobacco and clothing.
DICKSON LI
ST : SPCA's looking for a new home
Jun 15, 2010
SPCA's looking for a new home
Current lease ends in 2012; rent, operations costs among challenges
By Grace Chua
THE clock is ticking for the Society for the Prevention of Cruelty to Animals (SPCA) to find a new home.
The charity has to relocate before its current lease in Mount Vernon Road, where it has been based since 1984, expires in October 2012.
And while the SPCA has been sourcing alternative locations for its office, clinic and shelter for about 200 abandoned dogs, cats, rabbits and even guinea pigs, it is concerned that time is running out.
Said its executive officer Deirdre Moss: 'We have less than 21/2 years to build from scratch. We'll probably need to ask for an extension on the lease.'
The search for new premises has not been easy as it needs the stability of a lease of at least 20 years and a site large enough to take in that many animals.
In September last year, it was offered a 0.8ha site in the Sungei Tengah area, near Choa Chu Kang, more than double the size of its current 0.37ha premises.
However, that site is pending approval by government agencies.
The SPCA will meet them later this month to sort things out.
Even if the SPCA secures the land, it still faces several challenges.
Ms Moss said that the relocation project could cost up to $5 million, or more than two years' worth of donations.
Already, the charity has been stocking up on reserves for the construction, but will need to raise more to cover both daily operations and building costs.
Another issue is rent. While the SPCA did not say how much rent it pays to the Government, it is said to be 'nominal'.
It would probably pay closer to market rates at the new premises, said Ms Moss, which would jack up operating costs.
Also, moving to an area on the outskirts of the island, such as Choa Chu Kang, would come with challenges, like retaining staff and volunteers, she added.
The shelter receives 600 animals every month, and must put down about 70 per cent of them due to lack of space. Some of the animals are healthy and young, and could otherwise be adopted.
Mount Vernon, near the city centre, is convenient for those who want to visit its clinic or adopt animals. But it is precisely its prime location near Bartley MRT station which is forcing its relocation.
The area has been zoned for future residential use, the Urban Redevelopment Authority told The Straits Times.
The current site would make a plum pick for developers, said Mr Donald Han, managing director of real estate company Cushman & Wakefield's Singapore office.
Based on recent property transactions nearby, Mr Han estimated prices could be between $600 and $660 per sq ft per plot ratio if the lease is 99 years.
It is not the first time the SPCA has had to relocate. Before its move to Mount Vernon in 1984, it had been based in the Orchard Road area since 1954.
'Now it's time to go again,' Ms Moss said wistfully. 'Another era has gone by.'
caiwj@sph.com.sg
SPCA's looking for a new home
Current lease ends in 2012; rent, operations costs among challenges
By Grace Chua
THE clock is ticking for the Society for the Prevention of Cruelty to Animals (SPCA) to find a new home.
The charity has to relocate before its current lease in Mount Vernon Road, where it has been based since 1984, expires in October 2012.
And while the SPCA has been sourcing alternative locations for its office, clinic and shelter for about 200 abandoned dogs, cats, rabbits and even guinea pigs, it is concerned that time is running out.
Said its executive officer Deirdre Moss: 'We have less than 21/2 years to build from scratch. We'll probably need to ask for an extension on the lease.'
The search for new premises has not been easy as it needs the stability of a lease of at least 20 years and a site large enough to take in that many animals.
In September last year, it was offered a 0.8ha site in the Sungei Tengah area, near Choa Chu Kang, more than double the size of its current 0.37ha premises.
However, that site is pending approval by government agencies.
The SPCA will meet them later this month to sort things out.
Even if the SPCA secures the land, it still faces several challenges.
Ms Moss said that the relocation project could cost up to $5 million, or more than two years' worth of donations.
Already, the charity has been stocking up on reserves for the construction, but will need to raise more to cover both daily operations and building costs.
Another issue is rent. While the SPCA did not say how much rent it pays to the Government, it is said to be 'nominal'.
It would probably pay closer to market rates at the new premises, said Ms Moss, which would jack up operating costs.
Also, moving to an area on the outskirts of the island, such as Choa Chu Kang, would come with challenges, like retaining staff and volunteers, she added.
The shelter receives 600 animals every month, and must put down about 70 per cent of them due to lack of space. Some of the animals are healthy and young, and could otherwise be adopted.
Mount Vernon, near the city centre, is convenient for those who want to visit its clinic or adopt animals. But it is precisely its prime location near Bartley MRT station which is forcing its relocation.
The area has been zoned for future residential use, the Urban Redevelopment Authority told The Straits Times.
The current site would make a plum pick for developers, said Mr Donald Han, managing director of real estate company Cushman & Wakefield's Singapore office.
Based on recent property transactions nearby, Mr Han estimated prices could be between $600 and $660 per sq ft per plot ratio if the lease is 99 years.
It is not the first time the SPCA has had to relocate. Before its move to Mount Vernon in 1984, it had been based in the Orchard Road area since 1954.
'Now it's time to go again,' Ms Moss said wistfully. 'Another era has gone by.'
caiwj@sph.com.sg
ST : HDB, URA, NParks to get new chiefs
Jun 15, 2010
HDB, URA, NParks to get new chiefs
Changes take effect from Aug 1
By Dickson Li
THE Housing Board has appointed Mrs Cheong Koon Hean as its new chief executive officer (CEO).
She will replace Mr Tay Kim Poh, who is moving to the Ministry of National Development (MND) as its deputy secretary of development.
The move for Mrs Cheong, 53, comes at a time when the HDB has been under pressure from home buyers as prices of resale flats have hit historic highs.
HDB has moved swiftly as it tries to address the high levels of housing demand with a slew of land releases this year.
Mrs Cheong is a veteran industry hand, having been CEO at the Urban Redevelopment Authority (URA) for the past six years.
In her time at URA, she led the development of Marina Bay and new areas such as the Jurong Lake District, Kallang Riverside and Paya Lebar Central.
The former Colombo Plan scholarship holder has a Bachelor of Science and Bachelor of Architecture from Australia's Newcastle University,
and a Master's of Science in Urban Development Planning from University College London.
She will retain her concurrent post as deputy secretary of special duties at the MND, where she oversees land reclamation issues.
At MND, Mr Tay will replace Brigadier-General (NS) Tay Lim Heng, who moves to Keppel Integrated Engineering, the wholly owned environmental arm of Keppel Corp, as its deputy CEO and executive director (sustainable development) from today.
As the deputy secretary of development at MND, Mr Tay, 57, will oversee the ministry's housing and planning and research divisions, the Singapore-Tianjin Eco-city Project Office and other corporate functions.
He played a crucial role in several major public housing policies during his time at the HDB, including the Enhanced Additional Housing Grant and the Lease Buyback Scheme.
He is a Public Service Commission scholarship holder who graduated with first class honours in mechanical engineering from the University of Singapore.
Mr Ng Lang, 45, the CEO of National Parks Board (NParks), will replace Mrs Cheong at the URA.
Mr Poon Hong Yuen, 40, director of economic programmes and international relations at the Finance Ministry, will be the new NParks chief.
All the other appointments will take effect from Aug 1.
dicksonl@sph.com.sg
Mrs Cheong (left) will be the new HDB chief, replacing Mr Tay, who will move to the MND.
HDB, URA, NParks to get new chiefs
Changes take effect from Aug 1
By Dickson Li
THE Housing Board has appointed Mrs Cheong Koon Hean as its new chief executive officer (CEO).
She will replace Mr Tay Kim Poh, who is moving to the Ministry of National Development (MND) as its deputy secretary of development.
The move for Mrs Cheong, 53, comes at a time when the HDB has been under pressure from home buyers as prices of resale flats have hit historic highs.
HDB has moved swiftly as it tries to address the high levels of housing demand with a slew of land releases this year.
Mrs Cheong is a veteran industry hand, having been CEO at the Urban Redevelopment Authority (URA) for the past six years.
In her time at URA, she led the development of Marina Bay and new areas such as the Jurong Lake District, Kallang Riverside and Paya Lebar Central.
The former Colombo Plan scholarship holder has a Bachelor of Science and Bachelor of Architecture from Australia's Newcastle University,
and a Master's of Science in Urban Development Planning from University College London.
She will retain her concurrent post as deputy secretary of special duties at the MND, where she oversees land reclamation issues.
At MND, Mr Tay will replace Brigadier-General (NS) Tay Lim Heng, who moves to Keppel Integrated Engineering, the wholly owned environmental arm of Keppel Corp, as its deputy CEO and executive director (sustainable development) from today.
As the deputy secretary of development at MND, Mr Tay, 57, will oversee the ministry's housing and planning and research divisions, the Singapore-Tianjin Eco-city Project Office and other corporate functions.
He played a crucial role in several major public housing policies during his time at the HDB, including the Enhanced Additional Housing Grant and the Lease Buyback Scheme.
He is a Public Service Commission scholarship holder who graduated with first class honours in mechanical engineering from the University of Singapore.
Mr Ng Lang, 45, the CEO of National Parks Board (NParks), will replace Mrs Cheong at the URA.
Mr Poon Hong Yuen, 40, director of economic programmes and international relations at the Finance Ministry, will be the new NParks chief.
All the other appointments will take effect from Aug 1.
dicksonl@sph.com.sg
Mrs Cheong (left) will be the new HDB chief, replacing Mr Tay, who will move to the MND.
ST : Clemenceau Ave site up for hotel tender
Jun 15, 2010
Clemenceau Ave site up for hotel tender
99-year leasehold plot next to Central Mall and near S'pore River to be put up for sale in 2 weeks
By Joyce Teo
A HOTEL site suitable for a medium-size development, at the junction of Clemenceau Avenue and Havelock Road, will be put up for sale in two weeks.
Yesterday, the Urban Redevelopment Authority said an unnamed developer has committed to bid at least $40.9 million for the 0.55ha site, thereby triggering the tender process.
The 99-year leasehold site is next to Central Mall and is within walking distance of the Singapore River and Clarke Quay. It is also close to the financial district.
The site can yield a maximum gross floor area of 11,555 sq m and can be built up to seven storeys.
A hotel on the site would attract mostly business travellers, said Cushman & Wakefield managing director Donald Han.
He expects bids to come in at between $480 and $500 per sq ft per plot ratio (psf ppr). The trigger bid was $328 psf ppr.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak expects bids of $380 to $430 psf ppr.
The Clemenceau Avenue site has been on the Government's reserve list since March 2008. Under this list of development sites, a site will be put up for tender only after a developer commits to a bid that reaches a minimum level set by the Government.
Mr Han expects more investor interest in Singapore's hotel market, which, he said, is the Asia-Pacific's star performer.
Singapore Tourism Board data shows that average hotel occupancy rose to 85 per cent in April, up 15 percentage points from last year. Average room rates rose by 12.2 per cent to $211, while revenue per available room surged 36 per cent to $179.
In a separate announcement, Credo Real Estate said that Hoi Hup Realty had recently agreed to buy Pender Court in a collective sale for $95 million.
This price works out to $1,007 psf ppr, based on a plot ratio of 1.44. The owners of the 48-unit estate stand to reap an average of $1.98 million per unit.
Meanwhile, the freehold 32-unit People's Mansion in Geylang has been launched for collective sale.
joyceteo@sph.com.sg
Clemenceau Ave site up for hotel tender
99-year leasehold plot next to Central Mall and near S'pore River to be put up for sale in 2 weeks
By Joyce Teo
A HOTEL site suitable for a medium-size development, at the junction of Clemenceau Avenue and Havelock Road, will be put up for sale in two weeks.
Yesterday, the Urban Redevelopment Authority said an unnamed developer has committed to bid at least $40.9 million for the 0.55ha site, thereby triggering the tender process.
The 99-year leasehold site is next to Central Mall and is within walking distance of the Singapore River and Clarke Quay. It is also close to the financial district.
The site can yield a maximum gross floor area of 11,555 sq m and can be built up to seven storeys.
A hotel on the site would attract mostly business travellers, said Cushman & Wakefield managing director Donald Han.
He expects bids to come in at between $480 and $500 per sq ft per plot ratio (psf ppr). The trigger bid was $328 psf ppr.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak expects bids of $380 to $430 psf ppr.
The Clemenceau Avenue site has been on the Government's reserve list since March 2008. Under this list of development sites, a site will be put up for tender only after a developer commits to a bid that reaches a minimum level set by the Government.
Mr Han expects more investor interest in Singapore's hotel market, which, he said, is the Asia-Pacific's star performer.
Singapore Tourism Board data shows that average hotel occupancy rose to 85 per cent in April, up 15 percentage points from last year. Average room rates rose by 12.2 per cent to $211, while revenue per available room surged 36 per cent to $179.
In a separate announcement, Credo Real Estate said that Hoi Hup Realty had recently agreed to buy Pender Court in a collective sale for $95 million.
This price works out to $1,007 psf ppr, based on a plot ratio of 1.44. The owners of the 48-unit estate stand to reap an average of $1.98 million per unit.
Meanwhile, the freehold 32-unit People's Mansion in Geylang has been launched for collective sale.
joyceteo@sph.com.sg
BT : Singapore climbs in global ranking of living costs
Business Times - 15 Jun 2010
Singapore climbs in global ranking of living costs
Strong Sing$ pushes it up 5 rungs to become 67th priciest city to live in
By FELDA CHAY
A STRONGER currency has pushed Singapore to the 67th most expensive city to live in, five places higher than its 72nd position last year, according to the latest rankings provided by ECA International.
Among Asian cities, Singapore gained one level to ninth place. This makes Singapore a more pricey place to live in as compared with South Korean's Busan and Ulsan, and Taipei in Taiwan. It is, however, still cheaper than Chinese cities Hong Kong and Shanghai, as well as Japan's Tokyo - which snagged the spot as the world's most expensive place to live in. Singapore's rise in the cost of living rankings come on the back of a strengthened local currency, which 'has been strong relative to other major currencies in the region', said ECA.
It added that prices of goods and services commonly bought by international assignees have also risen at much faster rates here, as compared with other developed cities regionally.
Said ECA's regional director for Asia, Lee Quane: 'Singapore's rise continues a long-term trend. In recent years, we have witnessed the city's gradual move up our rankings. The cost of living differential between the city state and Hong Kong has become smaller and smaller.
'This is a double-edged sword,' he said.
On the one hand, companies here will now see lower cost of living allowances when they send staff out of Singapore. On the other hand, for companies bringing staff to Singapore, allowances will carry on increasing as Singapore continues to move up the ranking table.
Worldwide, Norway's Oslo came in after Tokyo to rank as the second-most expensive city to live in. Rounding up the top five list are Luanda in Angola - where many regularly used items are expensive due to the country's war-damaged infrastructure - and Japan's Nagoya and Yokohama. In Asia, the Japanese city of Kobe and South Korea's capital city, Seoul, joined Tokyo, Nagoya and Yokohama at the top.
ECA's cost of living study is done based on surveys carried out in March and September every year using a basket of day-to-day goods and services such as meat, fresh fruit, vegetables, clothing and electrical goods. The data for its latest survey was collected in March this year, and was compared with information taken in the same month last year.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Singapore climbs in global ranking of living costs
Strong Sing$ pushes it up 5 rungs to become 67th priciest city to live in
By FELDA CHAY
A STRONGER currency has pushed Singapore to the 67th most expensive city to live in, five places higher than its 72nd position last year, according to the latest rankings provided by ECA International.
Among Asian cities, Singapore gained one level to ninth place. This makes Singapore a more pricey place to live in as compared with South Korean's Busan and Ulsan, and Taipei in Taiwan. It is, however, still cheaper than Chinese cities Hong Kong and Shanghai, as well as Japan's Tokyo - which snagged the spot as the world's most expensive place to live in. Singapore's rise in the cost of living rankings come on the back of a strengthened local currency, which 'has been strong relative to other major currencies in the region', said ECA.
It added that prices of goods and services commonly bought by international assignees have also risen at much faster rates here, as compared with other developed cities regionally.
Said ECA's regional director for Asia, Lee Quane: 'Singapore's rise continues a long-term trend. In recent years, we have witnessed the city's gradual move up our rankings. The cost of living differential between the city state and Hong Kong has become smaller and smaller.
'This is a double-edged sword,' he said.
On the one hand, companies here will now see lower cost of living allowances when they send staff out of Singapore. On the other hand, for companies bringing staff to Singapore, allowances will carry on increasing as Singapore continues to move up the ranking table.
Worldwide, Norway's Oslo came in after Tokyo to rank as the second-most expensive city to live in. Rounding up the top five list are Luanda in Angola - where many regularly used items are expensive due to the country's war-damaged infrastructure - and Japan's Nagoya and Yokohama. In Asia, the Japanese city of Kobe and South Korea's capital city, Seoul, joined Tokyo, Nagoya and Yokohama at the top.
ECA's cost of living study is done based on surveys carried out in March and September every year using a basket of day-to-day goods and services such as meat, fresh fruit, vegetables, clothing and electrical goods. The data for its latest survey was collected in March this year, and was compared with information taken in the same month last year.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : In-demand Ibis on Bencoolen is up for sale
Business Times - 15 Jun 2010
In-demand Ibis on Bencoolen is up for sale
Hotel attracts interest, could fetch more than $200m
By EMILYN YAP
(SINGAPORE) Ibis Singapore on Bencoolen, a three-star hotel that opened its doors in February last year, has been put up for sale via a private tender.
Results of the tender will not be out until next month, though market watchers are guessing that the 538-room hotel could fetch more than $200 million.
Ibis Singapore is owned by hospitality group Accor and real estate investor LaSalle Investment Management in a 30:70 venture. Accor also owns the Ibis brand. According to past reports, the partners put in $145 million to develop the hotel at Bencoolen Street after winning the tender for the site in 2006.
Jones Lang LaSalle Hotels is handling the tender. According to its managing director of investment sales in Asia Mike Batchelor, the private tender began last month. As part of the deal, Accor will continue to operate the hotel under a long-term management agreement, meaning that the Ibis brand will stay.
The owners have been receiving 'a number of unsolicited approaches from investors' to buy Ibis Singapore, he told The Business Times. As a result, 'they decided to formally offer the asset for sale.'
Interest in the hotel has come mainly from private families and high net worth individuals, from not just Singapore but also regional countries such as Malaysia and Indonesia, Mr Batchelor added.
Market watchers felt that Ibis Singapore is a fairly attractive asset, given that it is new, well located, and has been performing relatively well. Accor Asia Pacific spokesman Evan Lewis said that for the last three months, the hotel has 'achieved occupancies in the mid-90 per cent with an average rate of around $140.'
A consultant who declined to be named pointed out that 'hotels in Singapore are very difficult to come by' so there will be demand. 'It's only about whether the pricing is sensible enough,' he said.
Another consultant felt that there is an insufficient number of good three-star hotels here. This puts Ibis Singapore in good stead, especially with property funds returning to scout for investments. 'There's quite a lot of money starting to come back globally,' he said.
With Singapore's hospitality industry picking up, some market observers even suggested that it might be better to sell the hotel later, when it might fetch a higher price.
'Most hoteliers would want to hold on to their properties given the robust outlook' for the hospitality sector, an analyst said. One reason is that the integrated resorts could draw more tourists later.
In April, the number of visitors to Singapore grew 20.4 per cent year-on-year to 938,000. Consultancy HVS Global Hospitality Services recently projected that the average room rate will rise 10-15 per cent this year from $191 last year.
Within the hospitality industry, fears of an oversupply of hotel rooms have started fading. Some upcoming hotels include Park Regis Singapore and Ibis Novena.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
In a good spot: Market watchers note that the hotel is a fairly attractive asset, given that it is new, well located, and has been performing relatively well.
In-demand Ibis on Bencoolen is up for sale
Hotel attracts interest, could fetch more than $200m
By EMILYN YAP
(SINGAPORE) Ibis Singapore on Bencoolen, a three-star hotel that opened its doors in February last year, has been put up for sale via a private tender.
Results of the tender will not be out until next month, though market watchers are guessing that the 538-room hotel could fetch more than $200 million.
Ibis Singapore is owned by hospitality group Accor and real estate investor LaSalle Investment Management in a 30:70 venture. Accor also owns the Ibis brand. According to past reports, the partners put in $145 million to develop the hotel at Bencoolen Street after winning the tender for the site in 2006.
Jones Lang LaSalle Hotels is handling the tender. According to its managing director of investment sales in Asia Mike Batchelor, the private tender began last month. As part of the deal, Accor will continue to operate the hotel under a long-term management agreement, meaning that the Ibis brand will stay.
The owners have been receiving 'a number of unsolicited approaches from investors' to buy Ibis Singapore, he told The Business Times. As a result, 'they decided to formally offer the asset for sale.'
Interest in the hotel has come mainly from private families and high net worth individuals, from not just Singapore but also regional countries such as Malaysia and Indonesia, Mr Batchelor added.
Market watchers felt that Ibis Singapore is a fairly attractive asset, given that it is new, well located, and has been performing relatively well. Accor Asia Pacific spokesman Evan Lewis said that for the last three months, the hotel has 'achieved occupancies in the mid-90 per cent with an average rate of around $140.'
A consultant who declined to be named pointed out that 'hotels in Singapore are very difficult to come by' so there will be demand. 'It's only about whether the pricing is sensible enough,' he said.
Another consultant felt that there is an insufficient number of good three-star hotels here. This puts Ibis Singapore in good stead, especially with property funds returning to scout for investments. 'There's quite a lot of money starting to come back globally,' he said.
With Singapore's hospitality industry picking up, some market observers even suggested that it might be better to sell the hotel later, when it might fetch a higher price.
'Most hoteliers would want to hold on to their properties given the robust outlook' for the hospitality sector, an analyst said. One reason is that the integrated resorts could draw more tourists later.
In April, the number of visitors to Singapore grew 20.4 per cent year-on-year to 938,000. Consultancy HVS Global Hospitality Services recently projected that the average room rate will rise 10-15 per cent this year from $191 last year.
Within the hospitality industry, fears of an oversupply of hotel rooms have started fading. Some upcoming hotels include Park Regis Singapore and Ibis Novena.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
In a good spot: Market watchers note that the hotel is a fairly attractive asset, given that it is new, well located, and has been performing relatively well.
BT : URA, HDB, NParks to get new CEOs
Business Times - 15 Jun 2010
URA, HDB, NParks to get new CEOs
Keppel Integrated Engineering names deputy CEO and executive director
By KALPANA RASHIWALA
(SINGAPORE) Three statutory boards under the Ministry of National Development (MND) are set for a shuffle at the top.
Urban Redevelopment Authority, Housing & Development Board and National Parks Board will get new CEOs from Aug 1.
URA's CEO, Cheong Koon Hean, will relinquish her current post to become HDB's chief executive. HDB boss Tay Kim Poh will move over to MND, where he will be deputy secretary (development).
NParks' chief executive Ng Lang will assume the job of URA CEO. He will be replaced at NParks by Poon Hong Yuen, who is currently with Ministry of Finance, where he is director (economic programmes/inter- national relations).
The appointments were announced by MND yesterday.
Mrs Cheong will continue her concurrent appointment as deputy secretary (special duties) at MND, with the responsibility of oveseeing land reclamation issues.
At MND, Mr Tay will replace BG (NS) Tay Lim Heng, who has left the Ministry. Separately, Keppel Integrated Engineering (KIE) yesterday evening announced the appointment of BG (NS) Tay as its deputy CEO and executive director (sustainable development) from June 15. Prior to his posting at MND, he was chief executive of the Maritime and Port Authority of Singapore.
At KIE, he will report to deputy chairman and CEO Michael Chia. One of BG (NS) Tay's tasks at the company will be to synergise Keppel Group's environmental engineering and property development competencies to cater for the growing urban and increasingly affluent population in the region and beyond.
MND in its release said that Mr Tay Kim Poh, in his new capacity as deputy secretary (development) at the Ministry, will oversee MND's housing, and planning and research divisions, the Singapore-Tianjin Eco-city project office as well as the ministry's corporate functions. At HDB, Mr Tay spearheaded the Remaking Our Heartland plans to revitalise and rejuvenate Singapore's public housing estates.
His successor, Mrs Cheong, 53, is a Colombo Plan scholar and has been CEO of URA since 2004. The mother of two - who holds degrees in architecture and urban development planning - spearheaded the development of Marina Bay and championed the concept of place management for downtown areas such as Singapore River and Orchard Road.
She also led the development of new growth areas at Jurong Lake District, Kallang Riverside and Paya Lebar Central.
Her successor at URA, Mr Ng, 45, holds a Master's degree in Chemical Engineering. He served at Ministry of Foreign Affairs and NTUC Income before joining National Healthcare Group as chief human resource officer in July 2002. He was appointed as CEO of NParks in January 2006.
He has played a key role in implementing major green infrastructural programmes to achieve the 'City in a Garden' vision, MND said.
These include the development of new parks and park connector network, streetscape greenery masterplan, skyrise greenery, the expansion of the Singapore Botanic Gardens and the new Gardens by the Bay.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New roles: URA's CEO Mrs Cheong Koon Hean will become HDB's new chief while NParks' chief executive Mr Ng Lang will lead URA from Aug 1
URA, HDB, NParks to get new CEOs
Keppel Integrated Engineering names deputy CEO and executive director
By KALPANA RASHIWALA
(SINGAPORE) Three statutory boards under the Ministry of National Development (MND) are set for a shuffle at the top.
Urban Redevelopment Authority, Housing & Development Board and National Parks Board will get new CEOs from Aug 1.
URA's CEO, Cheong Koon Hean, will relinquish her current post to become HDB's chief executive. HDB boss Tay Kim Poh will move over to MND, where he will be deputy secretary (development).
NParks' chief executive Ng Lang will assume the job of URA CEO. He will be replaced at NParks by Poon Hong Yuen, who is currently with Ministry of Finance, where he is director (economic programmes/inter- national relations).
The appointments were announced by MND yesterday.
Mrs Cheong will continue her concurrent appointment as deputy secretary (special duties) at MND, with the responsibility of oveseeing land reclamation issues.
At MND, Mr Tay will replace BG (NS) Tay Lim Heng, who has left the Ministry. Separately, Keppel Integrated Engineering (KIE) yesterday evening announced the appointment of BG (NS) Tay as its deputy CEO and executive director (sustainable development) from June 15. Prior to his posting at MND, he was chief executive of the Maritime and Port Authority of Singapore.
At KIE, he will report to deputy chairman and CEO Michael Chia. One of BG (NS) Tay's tasks at the company will be to synergise Keppel Group's environmental engineering and property development competencies to cater for the growing urban and increasingly affluent population in the region and beyond.
MND in its release said that Mr Tay Kim Poh, in his new capacity as deputy secretary (development) at the Ministry, will oversee MND's housing, and planning and research divisions, the Singapore-Tianjin Eco-city project office as well as the ministry's corporate functions. At HDB, Mr Tay spearheaded the Remaking Our Heartland plans to revitalise and rejuvenate Singapore's public housing estates.
His successor, Mrs Cheong, 53, is a Colombo Plan scholar and has been CEO of URA since 2004. The mother of two - who holds degrees in architecture and urban development planning - spearheaded the development of Marina Bay and championed the concept of place management for downtown areas such as Singapore River and Orchard Road.
She also led the development of new growth areas at Jurong Lake District, Kallang Riverside and Paya Lebar Central.
Her successor at URA, Mr Ng, 45, holds a Master's degree in Chemical Engineering. He served at Ministry of Foreign Affairs and NTUC Income before joining National Healthcare Group as chief human resource officer in July 2002. He was appointed as CEO of NParks in January 2006.
He has played a key role in implementing major green infrastructural programmes to achieve the 'City in a Garden' vision, MND said.
These include the development of new parks and park connector network, streetscape greenery masterplan, skyrise greenery, the expansion of the Singapore Botanic Gardens and the new Gardens by the Bay.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New roles: URA's CEO Mrs Cheong Koon Hean will become HDB's new chief while NParks' chief executive Mr Ng Lang will lead URA from Aug 1
BT : An icon for clean technology
Business Times - 15 Jun 2010
INDUSTRIAL SPACE
An icon for clean technology
Singapore's first business park catering to green companies will serve as a large-scale 'living laboratory' for testing and demonstrating clean technology, reports UMA SHANKARI
JTC is changing the approach to urban development and master planning with its CleanTech Park - Singapore's first business park catering to green companies.
The 50-ha eco-business park at Nanyang Avenue is pitched as the location of choice for forward-looking companies that have embraced environmental sustainability. Joint developers JTC and the Economic Development Board hope the project will push the boundaries of sustainability by serving as a large-scale 'living laboratory' for testing and demonstrating clean technology.
When completed in 2030, the park will create 20,000 'green-collar' jobs. It will be built in three phases at an infrastructure cost of $52 million, excluding buildings.
CleanTech Park will be an icon for the development and application of clean technologies, and JTC will push the envelope in a 'practical and cost-effective way', says the industrial landlord's chief executive Manohar Khiatani.
'As an infrastructural solutions provider, JTC has always placed priority on developing innovative and sustainable real estate solutions to meet the needs of our customers operating in resource-challenged Singapore,' he says.
Work on the first phase of the project begins next month, starting with the development of infrastructure within CleanTech Park. When completed, phase one will provide about 17 ha of business park land.
The blueprint for the first cutting-edge building in the park was recently unveiled by JTC. The $90 million building - CleanTech One - will offer about 404,000 sq ft of office space that can house up to 50 green businesses when it is completed by December next year.
The building will incorporate state-of-the-art green features such as solar energy systems, rainwater harvesting, sky gardens and sustainable construction.
Urban modelling
JTC's master plan for CleanTech Park uses information that has been collected about the site and takes into account such factors as solar exposure, rainfall, prevailing wind, topography and vegetation density.
The agency used a modelling tool from a consultancy - Camp, Dresser and McKee or CDM - to help design the urban fabric, so the project can make the most of the natural elements.
CleanTech Park will go up on a large contiguous greenfield site with natural undulating terrain and mature greenery with natural streams running through it.
In drawing up the masterplan using urban modelling, strong emphasis was placed on finding a long-term sustainable balance between the development's commercial needs and the site's natural bio-diversity. For example, in the interest of landscape conservation, a minimal 'land-cut' principle was adopted for both infrastructure planning and at individual land parcel and building level.
One of the innovative ideas that will be tested in CleanTech Park is JTC's sky trellis concept. Trellises will be constructed between adjacent buildings and covered with plants to provide shade and enhance 'walkability' in the area.
Eco-concrete - instead of natural aggregates and sand - will be used for non-structural elements such as roads, pavements and drains.
CleanTech Park will also be the first large scale project to light roads with LED street lamps. By replacing the usual street lighting, light pollution can be minimised and energy consumption can be reduced as much as 40 per cent, JTC says.
Provisions to link buildings with an integrated 'smart dashboard' system will also be in place, so energy and water use can be compared at district-level. This will provide feedback to individual building owners and their tenants so they can improve if needed.
Another innovative solution by JTC is decentralised district cooling. This means excess air-conditioning capacity from a group of buildings may be able to power the air-conditioning for another building. In line with this, piping that can link chilled water from one building to another will be constructed as part of the infrastructure to support such a system.
CleanTech One, the the first building in CleanTech Park, will also have its own green features.
Innovative technological applications at CleanTech One will include an integrated hydrogen fuel cell plant using bio-fuels to produce hydrogen on-site to drive fuel cells, which in turn produce renewable energy.
A bio-digester will also be installed. With the help of micro-organisms, food waste will quickly decomposed in the bio-digester - removing odour and leaving water and carbon dioxide as end-products.
Energy from the sun will be harnessed directly to power the air-conditioner chillers. This method is more efficient than converting solar energy to electricity before use, JTC says. Solar panels will also be used.
Demand for green space
Real estate space with a 'green' proposition is starting to attract more interest among prospective tenants - which is good news for CleanTech Park and its buildings.
'Companies are increasingly interested in commercial and research space that is eco-friendly,' says EDB managing director Beh Swan Gin. 'CleanTech Park will offer these progressive investors an attractive option and foster the clustering of like-minded companies in one location.'
JTC's Mr Khiatani says similarly that environmental sustainability will be a 'natural direction' for businesses to take in the future. He adds: 'CleanTech Park will be emblematic of how businesses can achieve both economic vibrancy and environmental sustainability, functioning in harmony with nature.'
Independent data supports these claims. A global survey on corporate real estate and sustainability by CoreNet Global and Jones Lang LaSalle, conducted late last year, showed corporate real estate executives are willing to invest in the sustainability of the space they own, despite economic pressures.
The survey found 89 per cent of these executives worldwide consider sustainability criteria in their location decisions. Green building certification is always considered by 41 per cent and energy labels by 46 per cent in administering their portfolios.
More stakeholders are also beginning to take a more holistic approach to doing business, which means they factor in the social and environmental effects of their business decisions.
In fact, CleanTech Park has already attracted some interest from tenants. Nanyang Technological University (NTU) has signed on to become the first anchor tenant. The university will help seed research and development activity at the park.
NTU has said that having CleanTech Park next to the university is significant, as it will help academics work seamlessly with key industry partners in the park and allow NTU students to gain invaluable opportunities for attachment and hands-on experience in state-of-the-art green technologies.
EDB likewise thinks CleanTech Park's tenants will benefit from the proximity to NTU, which could promote cross-fertilisation of knowledge and ideas to facilitate the development and demonstration of systems-level cleantech solutions.
The Singapore government is committed to growing the cleantech industry as a key cluster. The sector is expected to contribute some $3.4 billion to Singapore's GDP and employ 18,000 people by 2015.
CleanTech Park, in particular, is poised to boost Singapore's leadership position as an innovative CleanTech hub, EDB and JTC have said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Cutting edge building: CleanTech One will incorporate state-of-the-art green features such as solar energy systems, rainwater harvesting, sky gardens and sustainable construction
One of the innovative ideas that will be tested in CleanTech Park is JTC's sky trellis concept. Trellises will be constructed between adjacent buildings and covered with plants to provide shade and enhance 'walkability' in the area
INDUSTRIAL SPACE
An icon for clean technology
Singapore's first business park catering to green companies will serve as a large-scale 'living laboratory' for testing and demonstrating clean technology, reports UMA SHANKARI
JTC is changing the approach to urban development and master planning with its CleanTech Park - Singapore's first business park catering to green companies.
The 50-ha eco-business park at Nanyang Avenue is pitched as the location of choice for forward-looking companies that have embraced environmental sustainability. Joint developers JTC and the Economic Development Board hope the project will push the boundaries of sustainability by serving as a large-scale 'living laboratory' for testing and demonstrating clean technology.
When completed in 2030, the park will create 20,000 'green-collar' jobs. It will be built in three phases at an infrastructure cost of $52 million, excluding buildings.
CleanTech Park will be an icon for the development and application of clean technologies, and JTC will push the envelope in a 'practical and cost-effective way', says the industrial landlord's chief executive Manohar Khiatani.
'As an infrastructural solutions provider, JTC has always placed priority on developing innovative and sustainable real estate solutions to meet the needs of our customers operating in resource-challenged Singapore,' he says.
Work on the first phase of the project begins next month, starting with the development of infrastructure within CleanTech Park. When completed, phase one will provide about 17 ha of business park land.
The blueprint for the first cutting-edge building in the park was recently unveiled by JTC. The $90 million building - CleanTech One - will offer about 404,000 sq ft of office space that can house up to 50 green businesses when it is completed by December next year.
The building will incorporate state-of-the-art green features such as solar energy systems, rainwater harvesting, sky gardens and sustainable construction.
Urban modelling
JTC's master plan for CleanTech Park uses information that has been collected about the site and takes into account such factors as solar exposure, rainfall, prevailing wind, topography and vegetation density.
The agency used a modelling tool from a consultancy - Camp, Dresser and McKee or CDM - to help design the urban fabric, so the project can make the most of the natural elements.
CleanTech Park will go up on a large contiguous greenfield site with natural undulating terrain and mature greenery with natural streams running through it.
In drawing up the masterplan using urban modelling, strong emphasis was placed on finding a long-term sustainable balance between the development's commercial needs and the site's natural bio-diversity. For example, in the interest of landscape conservation, a minimal 'land-cut' principle was adopted for both infrastructure planning and at individual land parcel and building level.
One of the innovative ideas that will be tested in CleanTech Park is JTC's sky trellis concept. Trellises will be constructed between adjacent buildings and covered with plants to provide shade and enhance 'walkability' in the area.
Eco-concrete - instead of natural aggregates and sand - will be used for non-structural elements such as roads, pavements and drains.
CleanTech Park will also be the first large scale project to light roads with LED street lamps. By replacing the usual street lighting, light pollution can be minimised and energy consumption can be reduced as much as 40 per cent, JTC says.
Provisions to link buildings with an integrated 'smart dashboard' system will also be in place, so energy and water use can be compared at district-level. This will provide feedback to individual building owners and their tenants so they can improve if needed.
Another innovative solution by JTC is decentralised district cooling. This means excess air-conditioning capacity from a group of buildings may be able to power the air-conditioning for another building. In line with this, piping that can link chilled water from one building to another will be constructed as part of the infrastructure to support such a system.
CleanTech One, the the first building in CleanTech Park, will also have its own green features.
Innovative technological applications at CleanTech One will include an integrated hydrogen fuel cell plant using bio-fuels to produce hydrogen on-site to drive fuel cells, which in turn produce renewable energy.
A bio-digester will also be installed. With the help of micro-organisms, food waste will quickly decomposed in the bio-digester - removing odour and leaving water and carbon dioxide as end-products.
Energy from the sun will be harnessed directly to power the air-conditioner chillers. This method is more efficient than converting solar energy to electricity before use, JTC says. Solar panels will also be used.
Demand for green space
Real estate space with a 'green' proposition is starting to attract more interest among prospective tenants - which is good news for CleanTech Park and its buildings.
'Companies are increasingly interested in commercial and research space that is eco-friendly,' says EDB managing director Beh Swan Gin. 'CleanTech Park will offer these progressive investors an attractive option and foster the clustering of like-minded companies in one location.'
JTC's Mr Khiatani says similarly that environmental sustainability will be a 'natural direction' for businesses to take in the future. He adds: 'CleanTech Park will be emblematic of how businesses can achieve both economic vibrancy and environmental sustainability, functioning in harmony with nature.'
Independent data supports these claims. A global survey on corporate real estate and sustainability by CoreNet Global and Jones Lang LaSalle, conducted late last year, showed corporate real estate executives are willing to invest in the sustainability of the space they own, despite economic pressures.
The survey found 89 per cent of these executives worldwide consider sustainability criteria in their location decisions. Green building certification is always considered by 41 per cent and energy labels by 46 per cent in administering their portfolios.
More stakeholders are also beginning to take a more holistic approach to doing business, which means they factor in the social and environmental effects of their business decisions.
In fact, CleanTech Park has already attracted some interest from tenants. Nanyang Technological University (NTU) has signed on to become the first anchor tenant. The university will help seed research and development activity at the park.
NTU has said that having CleanTech Park next to the university is significant, as it will help academics work seamlessly with key industry partners in the park and allow NTU students to gain invaluable opportunities for attachment and hands-on experience in state-of-the-art green technologies.
EDB likewise thinks CleanTech Park's tenants will benefit from the proximity to NTU, which could promote cross-fertilisation of knowledge and ideas to facilitate the development and demonstration of systems-level cleantech solutions.
The Singapore government is committed to growing the cleantech industry as a key cluster. The sector is expected to contribute some $3.4 billion to Singapore's GDP and employ 18,000 people by 2015.
CleanTech Park, in particular, is poised to boost Singapore's leadership position as an innovative CleanTech hub, EDB and JTC have said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Cutting edge building: CleanTech One will incorporate state-of-the-art green features such as solar energy systems, rainwater harvesting, sky gardens and sustainable construction
One of the innovative ideas that will be tested in CleanTech Park is JTC's sky trellis concept. Trellises will be constructed between adjacent buildings and covered with plants to provide shade and enhance 'walkability' in the area
Subscribe to:
Posts (Atom)
Posts
