Jul 8, 2010
Attractions springing up in Marina Bay
Big Walk and carnival to celebrate the area's development so far
HOT on the heels of the Marina Bay Sands (MBS) resort's opening last month, new additions have been springing up to add to the bay's 'necklace of attractions'.
Across the bay from the resort, the new 100-room Fullerton Bay Hotel will welcome its first guests today, while the refurbished Customs House was unveiled yesterday.
The latter has been turned into a complex that features four new restaurants, with a fifth to open soon. A new rooftop bar called Lantern will also open at the six-storey Fullerton Bay Hotel.
A measure of comfort has also been extended to visitors to the area. Several features such as solar-powered fan shelters and a mist-spraying sculpture have been completed along a 3.5km waterfront promenade which allows pedestrians to circle the bay on foot.
A timber boardwalk has also been built which lines the southeastern bank where MBS is situated. It includes seats by the water's edge.
To celebrate the developments so far, a mass walk and carnival will be held next weekend, with a movie screening, dance and music performances, games, and food stalls. More than 80,000 people are expected to participate in the activities.
The New Paper Big Walk @ Marina Bay will be held on July 18 in conjunction with The Big Carnival @ Marina Bay. For the first time, Prime Minister Lee Hsien Loong will flag off The Big Walk at 7.30am at the Singapore Flyer. Tickets for the mass walk have all been snapped up.
More attractions will come to the area over time. By early next year, 50 Collyer Quay, a development comprising an 18-storey office block, an aerial tower and an overhead bridge linked to Hitachi Tower, will come up next to the Fullerton Bay Hotel.
The overhead bridge will be an attraction in itself, featuring eight to nine shops spread out over 2,800sqft of retail space, said developer Overseas Union Enterprise.
A rooftop restaurant will open at the office block, while the aerial tower will have one or two restaurants spread out over two levels at the top. Combined, these food and beverage outlets will take up 16,000sqft of space.
Just a stone's throw away, the Marina Bay Financial Centre's two office towers and a residential tower have swiftly taken shape as well. Tenants have begun moving in, and the buildings will be occupied by the fourth quarter of this year.
By the end of the year, the new Marina Bay Link Mall located underneath the development will open its doors. The underground mall will comprise shops, restaurants and a supermarket.
MBS expects to open more offerings by that time as well. These include the museum, shops along the boardwalk, and two glass pavilions.
In the coming months, visitors to the area will be able to take water taxis making stops along the bay and up the Singapore River, said an Urban Redevelopment Authority spokesman yesterday.
TESSA WONG
Thursday, July 8, 2010
ST : Upgrading, the way residents like it
Jul 8, 2010
Upgrading, the way residents like it
Tampines flat dwellers' ideas are included in first HDB design contest
By Daryl Chin
A MAJOR spruce-up is on the cards for the 25-year-old Tampines Neighbourhood 9 (N9), with residents' ideas being part of the estate's final design.
The government-funded, $10 million project represents the first time that the Housing Board has called for entries from 30 architectural firms and implemented the winning design based on residents' feedback and votes.
The project, which starts in the second quarter of next year, is also one of the largest public consultation exercises carried out for an HDB precinct.
The winning design for the Neighbourhood Renewal Programme (NRP), which was announced last Thursday, needed at least 75 per cent of residents' votes in order to go ahead.
When voting closed on Tuesday, 90.1 per cent had given their consent.
It will be carried out concurrently with the Lift Upgrading Programme and the Home Improvement Programme in the neighbourhood.
Key features of the winning design, which was done by Team Design Architects, include a green belt where residents can grow their own crops, new playground equipment with cross-trainers and stationary bikes, and a graffiti walk where aspiring artists can use chalk to express themselves.
A portion of Tampines Street 91 will also be converted into a weekend flea market at certain times.
Said Mr Masagos Zulkifli, Senior Parliamentary Secretary for Education and Home Affairs and a Member of Parliament for Tampines GRC: 'In the past, many people complained that they could choose only 'yes' or 'no'.
'But now the winning design is one which had the most votes. So this is not what I think residents like, but what they want.'
Mr Masagos added that since the budget for the NRP is allocated based on the number of households, Tampines N9 - which spans 38 blocks and has 3,352 dwellings - has a chance to be made impactful to its residents and become a model for other neighbourhoods to follow.
One resident who is excited about the proposed changes is Ms Julie Gan, who attended the initial selection process and voted for the winning design.
'It's a good move because this place is a bit run-down already. Soon our place will be beautified and the value of my home will also go up,' said the 49-year-old clerk.
Another resident, housewife Ho Foong Kuan, 41, is also keen on the changes. She said: 'The new upgrades mean more facilities for my family to use during outings. It's impressive to have them in the neighbourhood.'
As of last month, 31 NRP projects have been announced, of which 13 have already polled residents for their favourite design.
The remaining 18 projects are either in the early design stage or in the first round of public consultation.
darylc@sph.com.sg
An artist's impression of Tampines Neighbourhood 9's Graffiti Walk, a place where aspiring artists can use chalk to express themselves. -- PHOTO: TEAM DESIGN ARCHITECTS
Upgrading, the way residents like it
Tampines flat dwellers' ideas are included in first HDB design contest
By Daryl Chin
A MAJOR spruce-up is on the cards for the 25-year-old Tampines Neighbourhood 9 (N9), with residents' ideas being part of the estate's final design.
The government-funded, $10 million project represents the first time that the Housing Board has called for entries from 30 architectural firms and implemented the winning design based on residents' feedback and votes.
The project, which starts in the second quarter of next year, is also one of the largest public consultation exercises carried out for an HDB precinct.
The winning design for the Neighbourhood Renewal Programme (NRP), which was announced last Thursday, needed at least 75 per cent of residents' votes in order to go ahead.
When voting closed on Tuesday, 90.1 per cent had given their consent.
It will be carried out concurrently with the Lift Upgrading Programme and the Home Improvement Programme in the neighbourhood.
Key features of the winning design, which was done by Team Design Architects, include a green belt where residents can grow their own crops, new playground equipment with cross-trainers and stationary bikes, and a graffiti walk where aspiring artists can use chalk to express themselves.
A portion of Tampines Street 91 will also be converted into a weekend flea market at certain times.
Said Mr Masagos Zulkifli, Senior Parliamentary Secretary for Education and Home Affairs and a Member of Parliament for Tampines GRC: 'In the past, many people complained that they could choose only 'yes' or 'no'.
'But now the winning design is one which had the most votes. So this is not what I think residents like, but what they want.'
Mr Masagos added that since the budget for the NRP is allocated based on the number of households, Tampines N9 - which spans 38 blocks and has 3,352 dwellings - has a chance to be made impactful to its residents and become a model for other neighbourhoods to follow.
One resident who is excited about the proposed changes is Ms Julie Gan, who attended the initial selection process and voted for the winning design.
'It's a good move because this place is a bit run-down already. Soon our place will be beautified and the value of my home will also go up,' said the 49-year-old clerk.
Another resident, housewife Ho Foong Kuan, 41, is also keen on the changes. She said: 'The new upgrades mean more facilities for my family to use during outings. It's impressive to have them in the neighbourhood.'
As of last month, 31 NRP projects have been announced, of which 13 have already polled residents for their favourite design.
The remaining 18 projects are either in the early design stage or in the first round of public consultation.
darylc@sph.com.sg
An artist's impression of Tampines Neighbourhood 9's Graffiti Walk, a place where aspiring artists can use chalk to express themselves. -- PHOTO: TEAM DESIGN ARCHITECTS
BT : Trends emerge as foreigners hunt for landed homes
Business Times - 08 Jul 2010
Trends emerge as foreigners hunt for landed homes
(SINGAPORE) Districts 15 (which includes Katong, Telok Kurau, East Coast Road and Siglap) and 4 (which includes Sentosa Cove) have been the most popular among foreigners buying landed homes this year up to June 8. They are followed by Districts 19, 10 and 16. Singaporeans, on the other hand, have zoomed in on Districts 19, 15, 16, 28 and 10 - in that order.
Malaysians, the biggest group of foreign buyers of landed properties, purchased 38 landed homes. Their most sought-after location was District 16 (which includes Upper East Coast, Bedok and part of Upper Changi Road East) where they bought eight homes, followed by District 19 (including Serangoon Gardens, Lorong Chuan, Upper Paya Lebar, Upper Serangoon and Hougang). UK citizens were the second biggest foreign buyers of landed houses, with 21 purchases. Their top choice was District 10, which includes Tanglin and Holland roads and part of Bukit Timah.
Chinese nationals were third, with 17 purchases, the bulk (11 units) on Sentosa Cove. Australians bought 10 houses, mostly in districts 10, 15 and 19.
Reflecting their varying location preferences, the prices of landed homes bought by the various nationalities differed. The Chinese, who bought homes mostly on Sentosa Cove - where Singapore's most expensive bungalows can be found - paid $5 million and above for the bulk of their landed purchases in H1 2010 (up to June 8).
For the other major nationalities (including Singaporeans, Malaysians, UK citizens, Australians, Indonesians and Indians), purchases were predominantly in the $1.5 million to $5 million range; there were also deals in the $1 million to $1.5 million price bracket.
While no foreigner picked up a landed property costing under $1 million in H1 2010, 58 Singaporeans did so - the bulk of them probably for terrace houses, CBRE said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Trends emerge as foreigners hunt for landed homes
(SINGAPORE) Districts 15 (which includes Katong, Telok Kurau, East Coast Road and Siglap) and 4 (which includes Sentosa Cove) have been the most popular among foreigners buying landed homes this year up to June 8. They are followed by Districts 19, 10 and 16. Singaporeans, on the other hand, have zoomed in on Districts 19, 15, 16, 28 and 10 - in that order.
Malaysians, the biggest group of foreign buyers of landed properties, purchased 38 landed homes. Their most sought-after location was District 16 (which includes Upper East Coast, Bedok and part of Upper Changi Road East) where they bought eight homes, followed by District 19 (including Serangoon Gardens, Lorong Chuan, Upper Paya Lebar, Upper Serangoon and Hougang). UK citizens were the second biggest foreign buyers of landed houses, with 21 purchases. Their top choice was District 10, which includes Tanglin and Holland roads and part of Bukit Timah.
Chinese nationals were third, with 17 purchases, the bulk (11 units) on Sentosa Cove. Australians bought 10 houses, mostly in districts 10, 15 and 19.
Reflecting their varying location preferences, the prices of landed homes bought by the various nationalities differed. The Chinese, who bought homes mostly on Sentosa Cove - where Singapore's most expensive bungalows can be found - paid $5 million and above for the bulk of their landed purchases in H1 2010 (up to June 8).
For the other major nationalities (including Singaporeans, Malaysians, UK citizens, Australians, Indonesians and Indians), purchases were predominantly in the $1.5 million to $5 million range; there were also deals in the $1 million to $1.5 million price bracket.
While no foreigner picked up a landed property costing under $1 million in H1 2010, 58 Singaporeans did so - the bulk of them probably for terrace houses, CBRE said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : 22 per cent of 50 Collyer Quay taken up
Business Times - 08 Jul 2010
22 per cent of 50 Collyer Quay taken up
OVERSEAS Union Enterprise Ltd (OUE) said yesterday that 22 per cent of the net lettable area (NLA) at 50 Collyer Quay has been pre-committed.
The initial line-up of tenants include European bank Skandinaviska Enskilda Banken AB (PUBL); Bain & Company SE Asia Inc, a leading global business consulting firm; and law firm Allen & Overy LLP.
The Grade A 18-storey office block - located where Overseas Union House used to stand - has a total NLA of 412,000 sq ft. Construction of the office tower is expected to be completed in the first quarter of next year.
On top of redeveloping Overseas Union House, OUE is also conserving the Change Alley Aerial Plaza Tower. Upon completion, the entire development will comprise a total gross floor area of 503,469 sq ft, net lettable area of 412,000 sq ft, and 245 carpark spaces on four basement levels.
BT reported in February that some property consultants expect 50 Collyer Quay to be worth about $900 million. The lease on the site has been topped up to a fresh 99-year term.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
22 per cent of 50 Collyer Quay taken up
OVERSEAS Union Enterprise Ltd (OUE) said yesterday that 22 per cent of the net lettable area (NLA) at 50 Collyer Quay has been pre-committed.
The initial line-up of tenants include European bank Skandinaviska Enskilda Banken AB (PUBL); Bain & Company SE Asia Inc, a leading global business consulting firm; and law firm Allen & Overy LLP.
The Grade A 18-storey office block - located where Overseas Union House used to stand - has a total NLA of 412,000 sq ft. Construction of the office tower is expected to be completed in the first quarter of next year.
On top of redeveloping Overseas Union House, OUE is also conserving the Change Alley Aerial Plaza Tower. Upon completion, the entire development will comprise a total gross floor area of 503,469 sq ft, net lettable area of 412,000 sq ft, and 245 carpark spaces on four basement levels.
BT reported in February that some property consultants expect 50 Collyer Quay to be worth about $900 million. The lease on the site has been topped up to a fresh 99-year term.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Buyers have landed, they're mostly local
Business Times - 08 Jul 2010
Buyers have landed, they're mostly local
Foreigners may be in the spotlight, but profile of landed property buyers sticks to trend
By KALPANA RASHIWALA
(SINGAPORE) Recent high-profile purchases of bungalows on Sentosa Cove by Chinese citizens may have given the impression that foreigners (including PRs) have been snapping up more landed homes of late, but numbers tell a different story.
Not only do Singaporeans remain the predominant buyers of landed homes here, but there has also been no rising trend in the share of foreigners (and PRs) picking up such properties. Over the past four years, their combined share of landed home purchases across Singapore averaged 6.2 per cent per quarter.
This share seems to rise a bit every time the market is hot and it drops when the markets cools.
For the first half of this year, Singaporeans remained the predominant buyers of landed homes across the island. However, on Sentosa Cove, foreigners including Singapore permanent residents acquired nearly the same number of houses as Singaporeans, shows an analysis by CB Richard Ellis.
Foreigners and PRs bought 16 landed homes on Sentosa Cove while Singaporeans have picked up 17 so far this year, based on CBRE's analysis of URA Realis caveats data as of June 22. The study captured caveats lodged up to June 8.
Foreigners (including PRs) bought 129 landed residential properties this year, up to June 8. Of these, 115 were purchased by PRs.
Non-PR foreigners bought the other 14 landed houses - comprising 12 properties located on Sentosa Cove and two in district 5. The latter are likely to be strata landed houses in The Vision in the West Coast area, say market watchers. Foreigners can buy strata landed properties within developments with condominium status without seeking approval from Land Dealings (Approval) Unit.
Their purchases this year give foreigners a 6.8 per cent share of the total 1,905 landed homes transacted up to June 8. Singapore citizens had an 87.7 per cent share, with companies buying the other 5.5 per cent.
Foreigners (including PRs) typically tend to account for a bigger share of private homebuyers when the market is hot; their share ebbs when the market cools. For instance, their share of total landed home purchases in Singapore climbed to a high of 9.5 per cent in Q2 2006 and 8.7 per cent in Q1 2007 when the property market was on the ascent. The figure touched a low of 2.5 per cent in Q1 2009 in the aftermath of the global financial crisis. It stood at 6.5 per cent in Q1 this year and 7.1 per cent for Q2 but this could change as more caveats for June stream in. It has generally hovered around the 6 per cent mark over the past four years.
Between Q1 2006 and Q1 2010, on a quarterly average basis, landed homes made up just 3.8 per cent of the total number of private homes bought by foreigners and PRs here. For H1 2010 (up to June 8), the figure was 3.4 per cent. Apartments and condos remain the mainstay of foreign buyers' private residential purchases in Singapore.
CBRE's executive director (residential) Joseph Tan expects 3,500-3,800 landed homes to be sold this year as the Singapore economy continues to strengthen - in line with the four-year (2006-2009) average demand of 3,713 units. 'Since supply is relatively limited, prices of landed homes are expected to rise by 10-15 per cent in 2010. Sentosa Cove will continue to be popular with foreigners because of its resort status as well as the ease of obtaining government approval for purchase,' he added.
DTZ executive director (consulting) Ong Choon Fah does not expect the foreign share of landed home purchases to change significantly. The restrictions that foreign buyers face in owning a landed home here mean demand will be for consumption and not investment, she says. Typically, they need a go-ahead from the LDAU, may own only one landed property and are not allowed to rent it out.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Buyers have landed, they're mostly local
Foreigners may be in the spotlight, but profile of landed property buyers sticks to trend
By KALPANA RASHIWALA
(SINGAPORE) Recent high-profile purchases of bungalows on Sentosa Cove by Chinese citizens may have given the impression that foreigners (including PRs) have been snapping up more landed homes of late, but numbers tell a different story.
Not only do Singaporeans remain the predominant buyers of landed homes here, but there has also been no rising trend in the share of foreigners (and PRs) picking up such properties. Over the past four years, their combined share of landed home purchases across Singapore averaged 6.2 per cent per quarter.
This share seems to rise a bit every time the market is hot and it drops when the markets cools.
For the first half of this year, Singaporeans remained the predominant buyers of landed homes across the island. However, on Sentosa Cove, foreigners including Singapore permanent residents acquired nearly the same number of houses as Singaporeans, shows an analysis by CB Richard Ellis.
Foreigners and PRs bought 16 landed homes on Sentosa Cove while Singaporeans have picked up 17 so far this year, based on CBRE's analysis of URA Realis caveats data as of June 22. The study captured caveats lodged up to June 8.
Foreigners (including PRs) bought 129 landed residential properties this year, up to June 8. Of these, 115 were purchased by PRs.
Non-PR foreigners bought the other 14 landed houses - comprising 12 properties located on Sentosa Cove and two in district 5. The latter are likely to be strata landed houses in The Vision in the West Coast area, say market watchers. Foreigners can buy strata landed properties within developments with condominium status without seeking approval from Land Dealings (Approval) Unit.
Their purchases this year give foreigners a 6.8 per cent share of the total 1,905 landed homes transacted up to June 8. Singapore citizens had an 87.7 per cent share, with companies buying the other 5.5 per cent.
Foreigners (including PRs) typically tend to account for a bigger share of private homebuyers when the market is hot; their share ebbs when the market cools. For instance, their share of total landed home purchases in Singapore climbed to a high of 9.5 per cent in Q2 2006 and 8.7 per cent in Q1 2007 when the property market was on the ascent. The figure touched a low of 2.5 per cent in Q1 2009 in the aftermath of the global financial crisis. It stood at 6.5 per cent in Q1 this year and 7.1 per cent for Q2 but this could change as more caveats for June stream in. It has generally hovered around the 6 per cent mark over the past four years.
Between Q1 2006 and Q1 2010, on a quarterly average basis, landed homes made up just 3.8 per cent of the total number of private homes bought by foreigners and PRs here. For H1 2010 (up to June 8), the figure was 3.4 per cent. Apartments and condos remain the mainstay of foreign buyers' private residential purchases in Singapore.
CBRE's executive director (residential) Joseph Tan expects 3,500-3,800 landed homes to be sold this year as the Singapore economy continues to strengthen - in line with the four-year (2006-2009) average demand of 3,713 units. 'Since supply is relatively limited, prices of landed homes are expected to rise by 10-15 per cent in 2010. Sentosa Cove will continue to be popular with foreigners because of its resort status as well as the ease of obtaining government approval for purchase,' he added.
DTZ executive director (consulting) Ong Choon Fah does not expect the foreign share of landed home purchases to change significantly. The restrictions that foreign buyers face in owning a landed home here mean demand will be for consumption and not investment, she says. Typically, they need a go-ahead from the LDAU, may own only one landed property and are not allowed to rent it out.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : UOL, CDL to release condos for preview this week
Business Times - 07 Jul 2010
UOL, CDL to release condos for preview this week
By KALPANA RASHIWALA
AT least two new condos are expected to be released this week - 368 Thomson and The Terrene @ Bukit Timah.
UOL Group and LaSalle Investment Management are jointly developing The Terrene on the former Rainbow Gardens site in the Toh Tuck/Jalan Jurong Kechil area.
The 999-year leasehold, 5-storey project will have 172 units, ranging from one bedders (starting from 506 sq ft) to five-bedroom penthouses (of up to 3,025 sq ft). It will be close to two green lungs - Bukit Timah Nature Reserve and Bukit Batok Nature Park - and about half a kilometre from the Beauty World MRT Station, which is being built.
Prices of typical units are expected to be in the $1,200-1,400 psf range. However, one bedders could touch around $1,500 psf. Ground floor apartments with private enclosed areas could be priced closer to the $1,000 psf mark, BT understands.
In October last year, UOL announced it had taken a half-share in the Rainbow Gardens site, which had been bought by the LaSalle Asia Opportunity II fund in a collective sale a few years earlier.
Terrene is being marketed by Knight Frank and Jones Lang LaSalle.
For UOL, the preview of The Terrene follows the virtual sell-out of its Waterbank at Dakota, a 616-unit condo fronting Geylang River and next to Dakota MRT Station. The 99-year leasehold condo's launch in April was timed with the opening of the station.
Over in the Balestier/Thomson Road area, City Developments Ltd is getting ready to preview 368 Thomson later this week on the former Concorde Residence site.
Prices in the 36-storey freehold development are expected to range from $1,300-1,500 psf. The condo's 157 units range from one-bedders to penthouses, with unit sizes of 689 sq ft to 3,391 sq ft. The project is being marketed by Huttons.
Meanwhile, over in the Bedok Reservoir location, Frasers Centrepoint and Far East Organization have sold 93 of the 150 units released since June 25 at the Waterfront Gold condo. The average price for the 99-year leasehold project is $950 psf. Waterfront Gold comprises 361 units and will be the first condo in Singapore to feature a skypark. This will be on the roof of the 15-storey project.
Property consultants say home sales are still slow, with many potential buyers still glued to the World Cup, which ends in the wee hours of Monday next week. More developers are then expected to begin releasing projects again.
'Buyers will do their homework and evaluation, but the good thing is that the Singapore stock market has still fared relatively better than some overseas markets,' notes DTZ executive director (consulting) Ong Choon Fah.
'The underlying desire to buy a private residential property here is still there among owner occupiers and local investors, as there's still a lot of liquidity. And our market is quite unique, with a large part of our population living in public housing, which provides a natural feed to the private housing market,' she added.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Terrene: The 999-year leasehold project will have 172 units, ranging from one bedders (starting from 505 sq ft) to five-bedroom penthouses (of up to 3,025 sq ft)
UOL, CDL to release condos for preview this week
By KALPANA RASHIWALA
AT least two new condos are expected to be released this week - 368 Thomson and The Terrene @ Bukit Timah.
UOL Group and LaSalle Investment Management are jointly developing The Terrene on the former Rainbow Gardens site in the Toh Tuck/Jalan Jurong Kechil area.
The 999-year leasehold, 5-storey project will have 172 units, ranging from one bedders (starting from 506 sq ft) to five-bedroom penthouses (of up to 3,025 sq ft). It will be close to two green lungs - Bukit Timah Nature Reserve and Bukit Batok Nature Park - and about half a kilometre from the Beauty World MRT Station, which is being built.
Prices of typical units are expected to be in the $1,200-1,400 psf range. However, one bedders could touch around $1,500 psf. Ground floor apartments with private enclosed areas could be priced closer to the $1,000 psf mark, BT understands.
In October last year, UOL announced it had taken a half-share in the Rainbow Gardens site, which had been bought by the LaSalle Asia Opportunity II fund in a collective sale a few years earlier.
Terrene is being marketed by Knight Frank and Jones Lang LaSalle.
For UOL, the preview of The Terrene follows the virtual sell-out of its Waterbank at Dakota, a 616-unit condo fronting Geylang River and next to Dakota MRT Station. The 99-year leasehold condo's launch in April was timed with the opening of the station.
Over in the Balestier/Thomson Road area, City Developments Ltd is getting ready to preview 368 Thomson later this week on the former Concorde Residence site.
Prices in the 36-storey freehold development are expected to range from $1,300-1,500 psf. The condo's 157 units range from one-bedders to penthouses, with unit sizes of 689 sq ft to 3,391 sq ft. The project is being marketed by Huttons.
Meanwhile, over in the Bedok Reservoir location, Frasers Centrepoint and Far East Organization have sold 93 of the 150 units released since June 25 at the Waterfront Gold condo. The average price for the 99-year leasehold project is $950 psf. Waterfront Gold comprises 361 units and will be the first condo in Singapore to feature a skypark. This will be on the roof of the 15-storey project.
Property consultants say home sales are still slow, with many potential buyers still glued to the World Cup, which ends in the wee hours of Monday next week. More developers are then expected to begin releasing projects again.
'Buyers will do their homework and evaluation, but the good thing is that the Singapore stock market has still fared relatively better than some overseas markets,' notes DTZ executive director (consulting) Ong Choon Fah.
'The underlying desire to buy a private residential property here is still there among owner occupiers and local investors, as there's still a lot of liquidity. And our market is quite unique, with a large part of our population living in public housing, which provides a natural feed to the private housing market,' she added.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Terrene: The 999-year leasehold project will have 172 units, ranging from one bedders (starting from 505 sq ft) to five-bedroom penthouses (of up to 3,025 sq ft)
Tuesday, July 6, 2010
ST : Older malls losing shoppers, and shops
Jul 6, 2010
Older malls losing shoppers, and shops
Orchard retailers moving to new sites with higher traffic
By Jessica Lim
OLDER malls in Orchard Road are seeing smaller tenants jump ship because of the ever-changing flow of shoppers coursing through this prime area.
Smaller retailers at complexes such as The Heeren, The Centrepoint and Midpoint, say customers are more attracted to their shiny new neighbours Ion Orchard, 313@Somerset and the Mandarin Gallery.
At The Heeren, there are more than 20 boarded-up shop spaces and only about 60 tenants in operation. Business has halved in the past year for clothing store Mon Chavon, said its manager, Ms Wan Choy Kun. 'Sometimes, we get our first customer at 6pm. Then we hear them say the place is so empty they will not come here again.'
She hopes business will pick up when the mall's new anchor tenant, department store ALT, opens on Saturday.
Some businesses have seized the upper hand by migrating to the new malls, while others are closing down. In response, the managements of the malls are working to reinvent themselves.
The Heeren is one of them, but the revamp has come too late for designer shoe chain Limited Edt Vault, which moved out in April. Owner Mandeep Chopra opened two new outlets, at 313@Somerset and Marina Bay Sands (MBS), saying there were 'no walk-in customers at all' at the shop in The Heeren.
'The traffic has moved to the newer malls. It was a no-brainer to shut down the Heeren store and move elsewhere,' he said. The rental at 313@Somerset is similar to that at The Heeren, he added.
Ossia International, which manages brands like Camper and Springfield, pulled its Camper shoe store out of The Heeren in March, before its lease ended, and opened two outlets in Ion Orchard. Brand manager Pauline Sing said it left because of 'bad sales performance' with 'only about 10 walk-in customers a day'.
Down the road, at The Centrepoint, skincare chain L'Occitane moved out on June 24 and opened at MBS in the same month. Another tenant, handbag shop Furla, called it quits in May, after opening an outlet in Ion Orchard last year.
Men's clothing store Caserini will close down later this month when its lease ends, as it is in the red, said its spokesman. 'We were badly affected, especially when 313@Somerset opened.'
At Midpoint and Orchard Plaza, two of the older malls in Orchard Road, outlets such as Burger King, Midpoint Electronics and This Fashion have moved out in the past six months.
Not all malls have seen their tenants bail, however, with Ngee Ann City and Paragon and their higher-end tenant mix relatively unfazed.
And long-time stalwarts such as Robinsons at The Centrepoint are still packing them in. Robinson Group spokesman Donna Chua said it had 'no plans to move out of The Centrepoint'.
'We are fortunate to have a strong customer base, many of them long-standing and loyal customers,' she said.
The Centrepoint is working on 'improving tenant mix and introducing new concepts' to pull in more shoppers, said Frasers Centrepoint Malls general manager Wendy Low.
This includes a basement foodcourt which features new dishes such as crab roe dumplings from Shanghai, she added.
Acknowledging the recent departures at The Heeren, a spokesman for Swee Cheng Management, which manages the mall, said it is currently 'repositioning to focus on a new target market of the young and sophisticated professionals, managers, executives and businessmen crowd'.
ALT is an exclusive new entrant which will occupy three levels of prime space in the mall, he added.
About 1.5 million sq ft of lettable retail space was added to Orchard Road in the past year, said Orchard Road Business Association chairman May Sng, an increase of 25 per cent.
'In such a situation, there will definitely be cannibalisation,' she said.
Singapore Retailers Association president Jannie Tay said a ready supply of retail space has led to business owners being able to pick and choose.
'At the moment it's a retailers' market. They have more choice now and will get out of unprofitable places,' said Ms Tay, who suggested landlords reduce rents to make their malls more attractive to retailers or offer other incentives.
Old or new, Orchard Road malls also face competition from big suburban malls. Estate agents say they are drawing more shoppers, which consequently drives up rents at the more popular malls in the suburbs.
limjess@sph.com.sg
The boarded-up shops in The Heeren (above) show how much business there has faded since new malls such as 313@Somerset opened last year. -- PHOTOS: ST FILE, RAJ NADARAJAN
Older malls losing shoppers, and shops
Orchard retailers moving to new sites with higher traffic
By Jessica Lim
OLDER malls in Orchard Road are seeing smaller tenants jump ship because of the ever-changing flow of shoppers coursing through this prime area.
Smaller retailers at complexes such as The Heeren, The Centrepoint and Midpoint, say customers are more attracted to their shiny new neighbours Ion Orchard, 313@Somerset and the Mandarin Gallery.
At The Heeren, there are more than 20 boarded-up shop spaces and only about 60 tenants in operation. Business has halved in the past year for clothing store Mon Chavon, said its manager, Ms Wan Choy Kun. 'Sometimes, we get our first customer at 6pm. Then we hear them say the place is so empty they will not come here again.'
She hopes business will pick up when the mall's new anchor tenant, department store ALT, opens on Saturday.
Some businesses have seized the upper hand by migrating to the new malls, while others are closing down. In response, the managements of the malls are working to reinvent themselves.
The Heeren is one of them, but the revamp has come too late for designer shoe chain Limited Edt Vault, which moved out in April. Owner Mandeep Chopra opened two new outlets, at 313@Somerset and Marina Bay Sands (MBS), saying there were 'no walk-in customers at all' at the shop in The Heeren.
'The traffic has moved to the newer malls. It was a no-brainer to shut down the Heeren store and move elsewhere,' he said. The rental at 313@Somerset is similar to that at The Heeren, he added.
Ossia International, which manages brands like Camper and Springfield, pulled its Camper shoe store out of The Heeren in March, before its lease ended, and opened two outlets in Ion Orchard. Brand manager Pauline Sing said it left because of 'bad sales performance' with 'only about 10 walk-in customers a day'.
Down the road, at The Centrepoint, skincare chain L'Occitane moved out on June 24 and opened at MBS in the same month. Another tenant, handbag shop Furla, called it quits in May, after opening an outlet in Ion Orchard last year.
Men's clothing store Caserini will close down later this month when its lease ends, as it is in the red, said its spokesman. 'We were badly affected, especially when 313@Somerset opened.'
At Midpoint and Orchard Plaza, two of the older malls in Orchard Road, outlets such as Burger King, Midpoint Electronics and This Fashion have moved out in the past six months.
Not all malls have seen their tenants bail, however, with Ngee Ann City and Paragon and their higher-end tenant mix relatively unfazed.
And long-time stalwarts such as Robinsons at The Centrepoint are still packing them in. Robinson Group spokesman Donna Chua said it had 'no plans to move out of The Centrepoint'.
'We are fortunate to have a strong customer base, many of them long-standing and loyal customers,' she said.
The Centrepoint is working on 'improving tenant mix and introducing new concepts' to pull in more shoppers, said Frasers Centrepoint Malls general manager Wendy Low.
This includes a basement foodcourt which features new dishes such as crab roe dumplings from Shanghai, she added.
Acknowledging the recent departures at The Heeren, a spokesman for Swee Cheng Management, which manages the mall, said it is currently 'repositioning to focus on a new target market of the young and sophisticated professionals, managers, executives and businessmen crowd'.
ALT is an exclusive new entrant which will occupy three levels of prime space in the mall, he added.
About 1.5 million sq ft of lettable retail space was added to Orchard Road in the past year, said Orchard Road Business Association chairman May Sng, an increase of 25 per cent.
'In such a situation, there will definitely be cannibalisation,' she said.
Singapore Retailers Association president Jannie Tay said a ready supply of retail space has led to business owners being able to pick and choose.
'At the moment it's a retailers' market. They have more choice now and will get out of unprofitable places,' said Ms Tay, who suggested landlords reduce rents to make their malls more attractive to retailers or offer other incentives.
Old or new, Orchard Road malls also face competition from big suburban malls. Estate agents say they are drawing more shoppers, which consequently drives up rents at the more popular malls in the suburbs.
limjess@sph.com.sg
The boarded-up shops in The Heeren (above) show how much business there has faded since new malls such as 313@Somerset opened last year. -- PHOTOS: ST FILE, RAJ NADARAJAN
BT : Boutique developer buys Kim Keat site for $36m
Business Times - 06 Jul 2010
Boutique developer buys Kim Keat site for $36m
It will develop a 20-storey apartment building, with prices at about $1,400 psf
By KALPANA RASHIWALA
BOUTIQUE developer BS Capital has bought a freehold site at Kim Keat Road-Lorong Ampas for just over $36 million or $670 per square foot of potential gross floor area, including an estimated development charge of almost $25 million.
The Colourscan building now stands on the 32,544 sq ft site, but the Urban Redevelopment Authority has approved rezoning from Business 1 to residential use with 2.8 plot ratio - the ratio of maximum potential gross floor area to land area.
BS Capital plans to develop a 20-storey project with about 160 apartments - mostly studios, and one and two-bedders - ranging from about 400 to 700 sq ft per unit.
There will also be some four and five-bedroom penthouses, said the company's chief executive, Chin Teck Chuan.
The plan is to launch the proposed District 12 residential project within six months.
'We're targeting an average price of about $1,300-1,400 psf,' Mr Chin told BT yesterday.
The property was sold by Colourscan in a deal brokered by Colliers International.
Balestier has been gradually transformed into a vibrant and modern area, with a number of new residential projects and a commercial development slated to be completed in the next few years, said Colliers executive director of investment sales Ho Eng Joo.
In April, BT reported that the freehold Diamond Tower in Jalan Rajah, also in the Balestier area and District 12, was sold for $49.6 million or $652 psf per plot ratio including DC through a collective sale.
The Diamond Tower site is 27,323 sq ft and is zoned for residential use with 2.8 plot ratio.
Buyer EL Development plans to redevelop the site into a new apartment block with about 100 units comprising one, two and three-bedroom units.
BS Capital also developed The Lumiere off Shenton Way.
It plans to release for sale soon the final 55 apartments, which are on the 34th floor and above.
'Most of the units will be priced at $2,500 psf or more,' Mr Chin said.
The 99-year leasehold project, which is 45 storeys high, has ground floor retail space and 168 apartments.
The development is expected to receive Temporary Occupation Permit next month.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Making way: URA has approved rezoning the site from Business 1 to residential use with 2.8 plot ratio
Boutique developer buys Kim Keat site for $36m
It will develop a 20-storey apartment building, with prices at about $1,400 psf
By KALPANA RASHIWALA
BOUTIQUE developer BS Capital has bought a freehold site at Kim Keat Road-Lorong Ampas for just over $36 million or $670 per square foot of potential gross floor area, including an estimated development charge of almost $25 million.
The Colourscan building now stands on the 32,544 sq ft site, but the Urban Redevelopment Authority has approved rezoning from Business 1 to residential use with 2.8 plot ratio - the ratio of maximum potential gross floor area to land area.
BS Capital plans to develop a 20-storey project with about 160 apartments - mostly studios, and one and two-bedders - ranging from about 400 to 700 sq ft per unit.
There will also be some four and five-bedroom penthouses, said the company's chief executive, Chin Teck Chuan.
The plan is to launch the proposed District 12 residential project within six months.
'We're targeting an average price of about $1,300-1,400 psf,' Mr Chin told BT yesterday.
The property was sold by Colourscan in a deal brokered by Colliers International.
Balestier has been gradually transformed into a vibrant and modern area, with a number of new residential projects and a commercial development slated to be completed in the next few years, said Colliers executive director of investment sales Ho Eng Joo.
In April, BT reported that the freehold Diamond Tower in Jalan Rajah, also in the Balestier area and District 12, was sold for $49.6 million or $652 psf per plot ratio including DC through a collective sale.
The Diamond Tower site is 27,323 sq ft and is zoned for residential use with 2.8 plot ratio.
Buyer EL Development plans to redevelop the site into a new apartment block with about 100 units comprising one, two and three-bedroom units.
BS Capital also developed The Lumiere off Shenton Way.
It plans to release for sale soon the final 55 apartments, which are on the 34th floor and above.
'Most of the units will be priced at $2,500 psf or more,' Mr Chin said.
The 99-year leasehold project, which is 45 storeys high, has ground floor retail space and 168 apartments.
The development is expected to receive Temporary Occupation Permit next month.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Making way: URA has approved rezoning the site from Business 1 to residential use with 2.8 plot ratio
ST : Prices of prime district homes at new high
Jul 6, 2010
Prices of prime district homes at new high
Outlook for rest of year less rosy as uncertainty in global economy likely to keep buyers away
By Jessica Cheam
PRIME property prices are at record highs having surpassed the peak seen in the first quarter of 2008, according to Jones Lang LaSalle (JLL).
Prices of prime homes - in Districts 9, 10 and 11 - shot up 8 per cent in the second quarter, hitting an average of $1,350 psf.
However, prices for luxury prime properties - those in the same districts but at least 3,500 sq ft in size and with ultra-luxurious fittings - are still about 8.4 per cent below the last peak in 2008, at about $2,500 psf.
Early government estimates last week said private home prices rose a higher- than-expected 5.2 per cent in the second quarter after a 5.6 per cent jump in the first.
JLL's report yesterday noted that price growth has been supported by an improved rental market.
Prime rentals have grown by an average of 10.8 per cent over the first half of the year, supported by increased demand from expatriates in the financial and petrochemical sectors, said JLL.
Investment sales also appear healthy.
DTZ Research said in a separate statement yesterday that investment sales for the second quarter posted a 64.1 per cent increase over the previous three months to hit $4.71 billion, of which 58.3 per cent were from residential transactions.
This was driven by a record-breaking quarter in sales of government sites earmarked for residential use. These totalled $1.85 billion in the second quarter, surpassing the $1.51 billion record set in the last quarter of 2007.
However, the outlook for the rest of the year is not as rosy.
JLL's head of research, South-east Asia, Dr Chua Yang Liang, noted that until buyers can predict the impact of the euro zone crisis on the property market, there will be further slowdown in both sales volume and price growth for the next six months.
JLL said the uncertainty in the global economy has kept buyers at bay: 3,127 caveats were lodged in the second quarter, a 21.6 per cent drop from the previous quarter.
Still, this is 78.4 per cent above the average of 1,753 units sold per quarter from 2000 to last year, noted JLL, whose figures are based on Urban Redevelopment Authority (URA) data as of June 26.
Its report found that the number of foreign buyers are falling - down 28.3 per cent to 898 in the second quarter compared with the previous quarter, while the number of local buyers slid by 21 per cent to 2,112 over the last quarter.
Chinese buyers are proving the most resilient.
They accounted for 18.5 per cent of caveats lodged by foreigners for resale private apartments in the second quarter - up from just 6.2 per cent in the first quarter of 2007.
JLL's head of residential, Ms Jacqueline Wong, noted that increasingly, 'Chinese buyers are climbing up the price ladder and buying up properties in the prime market which is traditionally dominated by the rich Indonesians and Malaysians'.
These are high-net-worth individuals who can spend at least $2.5 million, she said.
The caveats lodged by Chinese buyers for resale units priced $1.5million and above are more common today than a year ago, she added.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
RESILIENT
'Chinese buyers are climbing up the price ladder and buying up properties in the prime market which is traditionally dominated by the rich Indonesians and Malaysians.'
Jones Lang LaSalle head of residential Jacqueline Wong
Prices of prime district homes at new high
Outlook for rest of year less rosy as uncertainty in global economy likely to keep buyers away
By Jessica Cheam
PRIME property prices are at record highs having surpassed the peak seen in the first quarter of 2008, according to Jones Lang LaSalle (JLL).
Prices of prime homes - in Districts 9, 10 and 11 - shot up 8 per cent in the second quarter, hitting an average of $1,350 psf.
However, prices for luxury prime properties - those in the same districts but at least 3,500 sq ft in size and with ultra-luxurious fittings - are still about 8.4 per cent below the last peak in 2008, at about $2,500 psf.
Early government estimates last week said private home prices rose a higher- than-expected 5.2 per cent in the second quarter after a 5.6 per cent jump in the first.
JLL's report yesterday noted that price growth has been supported by an improved rental market.
Prime rentals have grown by an average of 10.8 per cent over the first half of the year, supported by increased demand from expatriates in the financial and petrochemical sectors, said JLL.
Investment sales also appear healthy.
DTZ Research said in a separate statement yesterday that investment sales for the second quarter posted a 64.1 per cent increase over the previous three months to hit $4.71 billion, of which 58.3 per cent were from residential transactions.
This was driven by a record-breaking quarter in sales of government sites earmarked for residential use. These totalled $1.85 billion in the second quarter, surpassing the $1.51 billion record set in the last quarter of 2007.
However, the outlook for the rest of the year is not as rosy.
JLL's head of research, South-east Asia, Dr Chua Yang Liang, noted that until buyers can predict the impact of the euro zone crisis on the property market, there will be further slowdown in both sales volume and price growth for the next six months.
JLL said the uncertainty in the global economy has kept buyers at bay: 3,127 caveats were lodged in the second quarter, a 21.6 per cent drop from the previous quarter.
Still, this is 78.4 per cent above the average of 1,753 units sold per quarter from 2000 to last year, noted JLL, whose figures are based on Urban Redevelopment Authority (URA) data as of June 26.
Its report found that the number of foreign buyers are falling - down 28.3 per cent to 898 in the second quarter compared with the previous quarter, while the number of local buyers slid by 21 per cent to 2,112 over the last quarter.
Chinese buyers are proving the most resilient.
They accounted for 18.5 per cent of caveats lodged by foreigners for resale private apartments in the second quarter - up from just 6.2 per cent in the first quarter of 2007.
JLL's head of residential, Ms Jacqueline Wong, noted that increasingly, 'Chinese buyers are climbing up the price ladder and buying up properties in the prime market which is traditionally dominated by the rich Indonesians and Malaysians'.
These are high-net-worth individuals who can spend at least $2.5 million, she said.
The caveats lodged by Chinese buyers for resale units priced $1.5million and above are more common today than a year ago, she added.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
RESILIENT
'Chinese buyers are climbing up the price ladder and buying up properties in the prime market which is traditionally dominated by the rich Indonesians and Malaysians.'
Jones Lang LaSalle head of residential Jacqueline Wong
BT : Dalvey Rd residential site offered for collective sale
Business Times - 06 Jul 2010
Dalvey Rd residential site offered for collective sale
By KALPANA RASHIWALA
A PLUM freehold residential site at Dalvey Road has come on the market. Villa D'Este, being offered through a proposed collective sale exercise, has a land area of about 55,480 square feet. Its guide price of $115 million reflects a unit land price of about about $2,343 per square foot of potential gross floor area. No development charge is payable.
Currently Villa D'Este comprises 12 apartments sitting in an area approved by Urban Redevelopment Authority for the most exclusive housing form - Good Class Bungalows.
Based on a URA circular dated April 6, 2009 and its guidelines, Villa D'Este may be redeveloped back to apartments, provided there is no intensification of the existing approved gross floor area (GFA) and storey height.
The GFA has been verified by the URA to be about 49,071 sq ft and the developer can choose to build 13 to 14 apartments with an average size of about 3,500 sq ft each, says CB Richard Ellis, the property's marketing agent.
Ten of the the 12 owners have signed the collective sale agreement.
Villa D'Este comprises a part three-storey and part four-storey apartment development sitting on a car park podium.
The site is located in tranquil surroundings overlooking mature trees and greenery. It is also within walking distance to the Singapore Botanic Gardens.
'The new development is expected to draw keen interest from foreign buyers, especially the Chinese and Indians, who would like to live within the most prestigious Good Class Bungalow areas but are unable to own landed properties. Given its excellent attributes, several foreign parties have already expressed their keen interest to acquire the site,' CBRE said in a news release yesterday.
Villa D'Este's tender closes on August 4.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Villa D'Este: The freehold site located close to the Singapore Botanic Gardens, nestles in tranquil surroundings overlooking mature trees and greenery
Dalvey Rd residential site offered for collective sale
By KALPANA RASHIWALA
A PLUM freehold residential site at Dalvey Road has come on the market. Villa D'Este, being offered through a proposed collective sale exercise, has a land area of about 55,480 square feet. Its guide price of $115 million reflects a unit land price of about about $2,343 per square foot of potential gross floor area. No development charge is payable.
Currently Villa D'Este comprises 12 apartments sitting in an area approved by Urban Redevelopment Authority for the most exclusive housing form - Good Class Bungalows.
Based on a URA circular dated April 6, 2009 and its guidelines, Villa D'Este may be redeveloped back to apartments, provided there is no intensification of the existing approved gross floor area (GFA) and storey height.
The GFA has been verified by the URA to be about 49,071 sq ft and the developer can choose to build 13 to 14 apartments with an average size of about 3,500 sq ft each, says CB Richard Ellis, the property's marketing agent.
Ten of the the 12 owners have signed the collective sale agreement.
Villa D'Este comprises a part three-storey and part four-storey apartment development sitting on a car park podium.
The site is located in tranquil surroundings overlooking mature trees and greenery. It is also within walking distance to the Singapore Botanic Gardens.
'The new development is expected to draw keen interest from foreign buyers, especially the Chinese and Indians, who would like to live within the most prestigious Good Class Bungalow areas but are unable to own landed properties. Given its excellent attributes, several foreign parties have already expressed their keen interest to acquire the site,' CBRE said in a news release yesterday.
Villa D'Este's tender closes on August 4.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Villa D'Este: The freehold site located close to the Singapore Botanic Gardens, nestles in tranquil surroundings overlooking mature trees and greenery
BT : CapitaLand's S'pore residential business CEO resigns
Business Times - 06 Jul 2010
CapitaLand's S'pore residential business CEO resigns
This marks the 5th departure of a senior exec at the group in last 2 years
By KALPANA RASHIWALA
PROPERTY giant CapitaLand yesterday announced the resignation of Patricia Chia as CEO of its Singapore residential business 'to spend more time with her family'.
Her job will be taken over by Wong Heang Fine, who will concurrently continue in his present role of developing CapitaLand's business in the Gulf Cooperation Council (GCC) region.
Ms Chia's resignation marks at least the fifth departure of a senior executive from the group in the past two years.
The departure train began to take off in September 2008, with the shocking announcement of the resignation of Pua Seck Guan, who was CEO of CapitaLand Retail and chief executive of CapitaMall Trust Management Ltd. The day after his resignation was announced, CapitaMall Trust lost over $300 million of its market capitalisation. Mr Pua now heads international operations at Indian real estate giant DLF and is based in Singapore; he has also set up his own property fund management outfit, Perennial Real Estate.
Then in December 2008, CapitaLand announced that its chief corporate officer Tham Kui Seng, was leaving, 'to pursue personal interest'.
In June last year, the company announced that its chief investment officer Kee Teck Koon, was retiring. However, Mr Kee was recently named chairman of CapitaMalls Malaysia Reit Management Sdn Bhd, the manager of the soon-to-be-listed CapitaMalls Malaysia Trust.
In April this year, it was announced that CapitaLand Financial CEO Lui Chong Chee, would exit the company on June 1 to pursue his personal interests. Mr Lui, however, remains as chairman of CapitaLand's Australian unit Australand.
Messrs Kee and Tham were members of CapitaLand Group president and CEO Liew Mun Leong's 'inner kitchen cabinet' as he terms his inner circle. Market watchers note that another member in that league to have parted ways earlier was Hiew Yoon Khong. He was CEO of CapitaLand Commercial and CapitaLand Financial when he left the group in 2003. He is now CEO of Mapletree Investments, a fully owned real estate subsidiary of Temasek Holdings.
In its statement yesterday announcing Ms Chia's departure, Mr Liew said: 'Patricia has worked with me in various capacities over the years. She joined Pidemco Land in 1996 and, given her excellent execution skills, she has played a key role in establishing CapitaLand Residential Singapore as a leading developer in Singapore today. She has now requested to step down to spend more time with her family and I have acceded to her request.'
CapitaLand was formed in 2000 out of a merger between Pidemco Land and DBS Land.
Ms Chia is 55.
Her successor, Mr Wong, 52, holds degrees in mechanical engineering, and engineering production and management.
'Heang Fine, with his track record in the areas of engineering and construction globally, will bring a new perspective to the Singapore residential business as we enter the next phase of growth,' Mr Liew said.
Mr Wong joined the CapitaLand Group in 2006. He had previously been president and CEO of SembCorp Engineers and Constructors and prior to that, held the same post at Cathay Organisation Holdings.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Ms Chia: Key role in establishing CapitaLand Residential S'pore as a leading developer
CapitaLand's S'pore residential business CEO resigns
This marks the 5th departure of a senior exec at the group in last 2 years
By KALPANA RASHIWALA
PROPERTY giant CapitaLand yesterday announced the resignation of Patricia Chia as CEO of its Singapore residential business 'to spend more time with her family'.
Her job will be taken over by Wong Heang Fine, who will concurrently continue in his present role of developing CapitaLand's business in the Gulf Cooperation Council (GCC) region.
Ms Chia's resignation marks at least the fifth departure of a senior executive from the group in the past two years.
The departure train began to take off in September 2008, with the shocking announcement of the resignation of Pua Seck Guan, who was CEO of CapitaLand Retail and chief executive of CapitaMall Trust Management Ltd. The day after his resignation was announced, CapitaMall Trust lost over $300 million of its market capitalisation. Mr Pua now heads international operations at Indian real estate giant DLF and is based in Singapore; he has also set up his own property fund management outfit, Perennial Real Estate.
Then in December 2008, CapitaLand announced that its chief corporate officer Tham Kui Seng, was leaving, 'to pursue personal interest'.
In June last year, the company announced that its chief investment officer Kee Teck Koon, was retiring. However, Mr Kee was recently named chairman of CapitaMalls Malaysia Reit Management Sdn Bhd, the manager of the soon-to-be-listed CapitaMalls Malaysia Trust.
In April this year, it was announced that CapitaLand Financial CEO Lui Chong Chee, would exit the company on June 1 to pursue his personal interests. Mr Lui, however, remains as chairman of CapitaLand's Australian unit Australand.
Messrs Kee and Tham were members of CapitaLand Group president and CEO Liew Mun Leong's 'inner kitchen cabinet' as he terms his inner circle. Market watchers note that another member in that league to have parted ways earlier was Hiew Yoon Khong. He was CEO of CapitaLand Commercial and CapitaLand Financial when he left the group in 2003. He is now CEO of Mapletree Investments, a fully owned real estate subsidiary of Temasek Holdings.
In its statement yesterday announcing Ms Chia's departure, Mr Liew said: 'Patricia has worked with me in various capacities over the years. She joined Pidemco Land in 1996 and, given her excellent execution skills, she has played a key role in establishing CapitaLand Residential Singapore as a leading developer in Singapore today. She has now requested to step down to spend more time with her family and I have acceded to her request.'
CapitaLand was formed in 2000 out of a merger between Pidemco Land and DBS Land.
Ms Chia is 55.
Her successor, Mr Wong, 52, holds degrees in mechanical engineering, and engineering production and management.
'Heang Fine, with his track record in the areas of engineering and construction globally, will bring a new perspective to the Singapore residential business as we enter the next phase of growth,' Mr Liew said.
Mr Wong joined the CapitaLand Group in 2006. He had previously been president and CEO of SembCorp Engineers and Constructors and prior to that, held the same post at Cathay Organisation Holdings.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Ms Chia: Key role in establishing CapitaLand Residential S'pore as a leading developer
BT : Hot money flowing into stocks, property
Business Times - 06 Jul 2010
Hot money flowing into stocks, property
(BEIJING) China's high economic growth and expectations of a stronger yuan are luring global speculative funds into its stock and property markets, a senior foreign exchange regulator said in remarks published yesterday.
Deng Xianhong, vice-head of the State Administration of Foreign Exchange, said China must step up efforts to reform exchange rate policies and let the market play a fundamental role in deciding the value of the yuan.
'Against the backdrop of the global financial crisis, China's good economic fundamentals, a strengthening currency as well as a positive gap in interest rates between home and abroad have been the main reasons attracting a continuous inflow of foreign capital,' Mr Deng told the official People's Daily.
Since February, the administration had detected 190 illegal foreign exchange transactions involving a total sum of US$7.4 billion, he said\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Hot money flowing into stocks, property
(BEIJING) China's high economic growth and expectations of a stronger yuan are luring global speculative funds into its stock and property markets, a senior foreign exchange regulator said in remarks published yesterday.
Deng Xianhong, vice-head of the State Administration of Foreign Exchange, said China must step up efforts to reform exchange rate policies and let the market play a fundamental role in deciding the value of the yuan.
'Against the backdrop of the global financial crisis, China's good economic fundamentals, a strengthening currency as well as a positive gap in interest rates between home and abroad have been the main reasons attracting a continuous inflow of foreign capital,' Mr Deng told the official People's Daily.
Since February, the administration had detected 190 illegal foreign exchange transactions involving a total sum of US$7.4 billion, he said\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Glorious Property cautious on H2 sales outlook
Business Times - 06 Jul 2010
Glorious Property cautious on H2 sales outlook
(HONG KONG) Chinese developer Glorious Property says it is cautious about the outlook for sales later this year, after the central government unveiled harsh measures to rein in the red-hot property sector.
The Shanghai-based developer logged contracted sales of 4.2 billion yuan (S$862 million) in the first six months of this year, up about a third from the same period a year earlier, senior executives said yesterday. In June alone, contracted sales were 890 million yuan, up from about 220 million yuan in May, they said, adding that there were uncertainties for the remainder of the year.
'We are quite cautious about the second half. We'll mainly be monitoring property policies - whether the government adopts a tightening or loosening attitude,' CEO Cheng Lixiong told a news conference here.
In mid-April, China announced a series of property measures to tighten the market, such as raising minimum downpayments and mortgage rates for second homes, and raising downpayments for first-home buyers purchasing huge apartments.
Urban property prices rose an annual 12.4 per cent in May, easing from April when prices climbed at a record pace, government data showed. Compared with April, May prices were up 0.2 per cent, also trending lower.
The tightening measures, coupled with Europe's debt crisis, are also prompting the developer to put its plans to issue a dollar bond on hold. 'The debt market is too volatile now. We feel that it's not the right time to issue the bonds because of demand uncertainty and the costs of issuing,' Mr Cheng said\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Glorious Property cautious on H2 sales outlook
(HONG KONG) Chinese developer Glorious Property says it is cautious about the outlook for sales later this year, after the central government unveiled harsh measures to rein in the red-hot property sector.
The Shanghai-based developer logged contracted sales of 4.2 billion yuan (S$862 million) in the first six months of this year, up about a third from the same period a year earlier, senior executives said yesterday. In June alone, contracted sales were 890 million yuan, up from about 220 million yuan in May, they said, adding that there were uncertainties for the remainder of the year.
'We are quite cautious about the second half. We'll mainly be monitoring property policies - whether the government adopts a tightening or loosening attitude,' CEO Cheng Lixiong told a news conference here.
In mid-April, China announced a series of property measures to tighten the market, such as raising minimum downpayments and mortgage rates for second homes, and raising downpayments for first-home buyers purchasing huge apartments.
Urban property prices rose an annual 12.4 per cent in May, easing from April when prices climbed at a record pace, government data showed. Compared with April, May prices were up 0.2 per cent, also trending lower.
The tightening measures, coupled with Europe's debt crisis, are also prompting the developer to put its plans to issue a dollar bond on hold. 'The debt market is too volatile now. We feel that it's not the right time to issue the bonds because of demand uncertainty and the costs of issuing,' Mr Cheng said\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Sunway sees its prices rising 20% from 2008
Business Times - 06 Jul 2010
Sunway sees its prices rising 20% from 2008
It believes focus on premium properties will place it ahead of competition
(KUALA LUMPUR) Sunway City Bhd (Suncity), developer of the Sunway Integrated Resort City in Bandar Sunway, expects prices at its property launches to increase by 20 per cent this year from 2008.
Its managing director of property development in Malaysia, Ho Hon Sang, said this was in line with the current market trend.
'Suncity's launches for this year will mainly be in the Klang Valley with a gross development value of RM1.5 billion (S$651 million),' he told Bernama in an interview.
Suncity, Mr Ho said, believes that its premium pricing strategy of focusing on properties with 'green initiatives' that promote quality of life will place it well ahead of competitors.
'Our property prices are usually 10 to 20 per cent above the competitors,' he said.
According to Mr Ho, the Malaysian property market is not expected to enter a bubble stage despite rising prices due to the limited supply of land in prime areas, and availability of liquidity at the banks and institutions such as the Employees Provident Fund (EPF).
'Malaysian property prices are still lower compared to Singapore,' he said.
Suncity began its green journey back during its Sunway Integrated Resort City in Bandar Sunway, an iconic project which encompasses a township of medical, university, shopping and retail mall as well as resort and hotels.
'We have also emphasised on security with the implementation of CCTV within strategic roads and location and auxiliary police to ensure proper surveillance,' Mr Ho said. 'Sustainable construction is certainly here to stay as Malaysians are becoming more environmentally conscious. Moreover, it is widely practised by other developers overseas,' he said.
He also said that Lafarge Malayan Cement Bhd's cement products such as the Phoenix complemented the group's objective to promote sustainable construction.
The group's efforts in going green were given recognition when the Sunway Palazzio development in Sri Hartamas, Kuala Lumpur, was awarded the Gold Award in High Rise Residential Development by Singapore's Building and Construction Authority Green Mark Scheme.
Sunway Palazzio is the first high-rise residential development in Malaysia to receive the coveted award based on five criteria - energy efficiency, water efficiency, site/project development and management, good indoor environmental quality and environmental protection, and innovation. -- Bernama
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Sunway sees its prices rising 20% from 2008
It believes focus on premium properties will place it ahead of competition
(KUALA LUMPUR) Sunway City Bhd (Suncity), developer of the Sunway Integrated Resort City in Bandar Sunway, expects prices at its property launches to increase by 20 per cent this year from 2008.
Its managing director of property development in Malaysia, Ho Hon Sang, said this was in line with the current market trend.
'Suncity's launches for this year will mainly be in the Klang Valley with a gross development value of RM1.5 billion (S$651 million),' he told Bernama in an interview.
Suncity, Mr Ho said, believes that its premium pricing strategy of focusing on properties with 'green initiatives' that promote quality of life will place it well ahead of competitors.
'Our property prices are usually 10 to 20 per cent above the competitors,' he said.
According to Mr Ho, the Malaysian property market is not expected to enter a bubble stage despite rising prices due to the limited supply of land in prime areas, and availability of liquidity at the banks and institutions such as the Employees Provident Fund (EPF).
'Malaysian property prices are still lower compared to Singapore,' he said.
Suncity began its green journey back during its Sunway Integrated Resort City in Bandar Sunway, an iconic project which encompasses a township of medical, university, shopping and retail mall as well as resort and hotels.
'We have also emphasised on security with the implementation of CCTV within strategic roads and location and auxiliary police to ensure proper surveillance,' Mr Ho said. 'Sustainable construction is certainly here to stay as Malaysians are becoming more environmentally conscious. Moreover, it is widely practised by other developers overseas,' he said.
He also said that Lafarge Malayan Cement Bhd's cement products such as the Phoenix complemented the group's objective to promote sustainable construction.
The group's efforts in going green were given recognition when the Sunway Palazzio development in Sri Hartamas, Kuala Lumpur, was awarded the Gold Award in High Rise Residential Development by Singapore's Building and Construction Authority Green Mark Scheme.
Sunway Palazzio is the first high-rise residential development in Malaysia to receive the coveted award based on five criteria - energy efficiency, water efficiency, site/project development and management, good indoor environmental quality and environmental protection, and innovation. -- Bernama
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Islamic loans hit five-year low on declining property prices
Business Times - 06 Jul 2010
Islamic loans hit five-year low on declining property prices
Downgrade of credit rankings by ratings agencies makes borrowing costlier
(DUBAI) Syariah-compliant loans slumped to a five- year low in Europe, the Middle East and Africa in the first half on credit-ratings downgrades and falling property prices.
Islamic syndicated loans declined 40 per cent to US$2.2 billion, compared with a 5 per cent drop in total lending to US$304 billion, according to data compiled by Bloomberg. Real estate prices have dropped 50 per cent in the United Arab Emirates from their peak in August 2008, according to estimates from Colliers International.
'Banks have plenty of liquidity but they have been very selective when it comes to where they would like to deploy it,' Faisal Hijazi, business development manager of rating services and Islamic finance in Dubai at Moody's Investors Service, said in a July 1 interview in Kuala Lumpur. 'Real estate and investment companies seem to be the most seriously challenged when it comes to refinancing.'
Middle East property developers have been forced to renegotiate loans and bonds after they struggled to meet their obligations, prompting ratings companies to downgrade credit rankings and making borrowing more expensive. The last time banks made fewer Islamic loans was in 2005, when the total was US$75 million.
The UAE's state-owned Dubai World, Saudi Arabia-based Saad Group and Investment Dar Co in Kuwait announced plans in the past year to restructure debt. Dubai Holding Commercial Operations Group, a real estate and hospitality company, had its rating cut to B2 on June 30 by Moody's, five levels below investment grade.
Islamic finance transactions are based on the exchange of assets rather than interest to comply with the syariah principles.
Created in the 1970s, the industry's assets may quadruple to US$2.8 trillion by 2015 from about US$700 billion in 2005, according to the Kuala Lumpur-based Islamic Financial Services Board, a standards-setting body.
Dubai Department of Finance's sukuk, or Islamic bonds, have dropped since the debt was sold in October. The 6.396 per cent note maturing in November 2014 yielded 7.82 per cent, 145 basis points more than 6.37 per cent at the time of issue, according to Bloomberg bond trader composite prices. The rate reached a record high of 10.29 per cent on Feb 15. The securities' spread over similar- maturity US Treasuries narrowed 187 to 624 in the same period.
The HSBC/Nasdaq Dubai US Dollar Sukuk Index, made up of sukuk from Indonesia to Saudi Arabia, gained 0.8 per cent in the three months ended June 30. The average yield on corporate and government sukuk dropped seven basis points, or 0.07 percentage point, to 6.29 per cent last quarter, according to the HSBC/Nasdaq Dollar Sukuk Index.
The yield on Malaysia's 3.928 per cent Islamic notes due June 2015 fell one basis point last week to 3.57 per cent, according to prices from Royal Bank of Scotland Group.
Dubai companies may have to restructure loans due over the next 12 to 18 months, Moody's said in a report on June 14. Arab companies in the Persian Gulf region have US$28 billion of debt maturing in 2012, Moody's said.
The loan of Qatari Diar Real Estate Development Co, a unit of the Gulf state's sovereign wealth fund, was one of four Islamic loans in Europe, Middle East and Africa so far this year, the data show. It borrowed US$300 million in April from banks led by HSBC Holdings plc, Europe's biggest lender by market value, Bloomberg data show.
In Asia, the Malaysian government's plan to spend RM230 billion (S$99.3 billion) on development projects from 2011 to 2015 may boost demand for financing, according to rating company RAM Holdings Bhd. Bank loans in Malaysia more than doubled to US$4.1 billion in the first half, the highest in two years, after the country climbed out of its first recession in a decade last year.
Malaysia's economy is forecast by Prime Minister Najib Razak to expand as much as 6 per cent this year after shrinking 1.7 per cent in 2009.
Maybank Islamic Bhd, a unit of Malaysia's largest lender Malayan Banking Bhd, expects to increase Islamic loans by 20 per cent to 30 per cent for the financial year ending June 2011, chief executive officer Ibrahim Hassan said in a message to Bloomberg on July 1.
Dubai World, whose unit Nakheel is building palm-shaped islands off Dubai's coast, reached an agreement with its main creditor group in May to restructure US$23.5 billion of liabilities.
Saad Trading, Contracting and Financial Services Co, a unit of Saad Group owned by billionaire Maan al-Sanea and his family, defaulted on a US$650 million sukuk in November. Investment Dar, the Kuwait- based owner of half of Aston Martin Lagonda Ltd, was unable to meet obligations on its outstanding US$30 million debt in April last year, according to data compiled by Bloomberg.
The company and its creditors agreed to most commercial aspects of restructuring liabilities, the creditors committee said on June 14. It had 1.03 billion dinars (S$4.9 billion) of debt outstanding at the end of September 2008.
'The quality of the creditors has deteriorated,' Mr Hijazi of Moody's said during an Islamic capital market forum in Kuala Lumpur. 'So the uncertainty is still pretty much there.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Islamic loans hit five-year low on declining property prices
Downgrade of credit rankings by ratings agencies makes borrowing costlier
(DUBAI) Syariah-compliant loans slumped to a five- year low in Europe, the Middle East and Africa in the first half on credit-ratings downgrades and falling property prices.
Islamic syndicated loans declined 40 per cent to US$2.2 billion, compared with a 5 per cent drop in total lending to US$304 billion, according to data compiled by Bloomberg. Real estate prices have dropped 50 per cent in the United Arab Emirates from their peak in August 2008, according to estimates from Colliers International.
'Banks have plenty of liquidity but they have been very selective when it comes to where they would like to deploy it,' Faisal Hijazi, business development manager of rating services and Islamic finance in Dubai at Moody's Investors Service, said in a July 1 interview in Kuala Lumpur. 'Real estate and investment companies seem to be the most seriously challenged when it comes to refinancing.'
Middle East property developers have been forced to renegotiate loans and bonds after they struggled to meet their obligations, prompting ratings companies to downgrade credit rankings and making borrowing more expensive. The last time banks made fewer Islamic loans was in 2005, when the total was US$75 million.
The UAE's state-owned Dubai World, Saudi Arabia-based Saad Group and Investment Dar Co in Kuwait announced plans in the past year to restructure debt. Dubai Holding Commercial Operations Group, a real estate and hospitality company, had its rating cut to B2 on June 30 by Moody's, five levels below investment grade.
Islamic finance transactions are based on the exchange of assets rather than interest to comply with the syariah principles.
Created in the 1970s, the industry's assets may quadruple to US$2.8 trillion by 2015 from about US$700 billion in 2005, according to the Kuala Lumpur-based Islamic Financial Services Board, a standards-setting body.
Dubai Department of Finance's sukuk, or Islamic bonds, have dropped since the debt was sold in October. The 6.396 per cent note maturing in November 2014 yielded 7.82 per cent, 145 basis points more than 6.37 per cent at the time of issue, according to Bloomberg bond trader composite prices. The rate reached a record high of 10.29 per cent on Feb 15. The securities' spread over similar- maturity US Treasuries narrowed 187 to 624 in the same period.
The HSBC/Nasdaq Dubai US Dollar Sukuk Index, made up of sukuk from Indonesia to Saudi Arabia, gained 0.8 per cent in the three months ended June 30. The average yield on corporate and government sukuk dropped seven basis points, or 0.07 percentage point, to 6.29 per cent last quarter, according to the HSBC/Nasdaq Dollar Sukuk Index.
The yield on Malaysia's 3.928 per cent Islamic notes due June 2015 fell one basis point last week to 3.57 per cent, according to prices from Royal Bank of Scotland Group.
Dubai companies may have to restructure loans due over the next 12 to 18 months, Moody's said in a report on June 14. Arab companies in the Persian Gulf region have US$28 billion of debt maturing in 2012, Moody's said.
The loan of Qatari Diar Real Estate Development Co, a unit of the Gulf state's sovereign wealth fund, was one of four Islamic loans in Europe, Middle East and Africa so far this year, the data show. It borrowed US$300 million in April from banks led by HSBC Holdings plc, Europe's biggest lender by market value, Bloomberg data show.
In Asia, the Malaysian government's plan to spend RM230 billion (S$99.3 billion) on development projects from 2011 to 2015 may boost demand for financing, according to rating company RAM Holdings Bhd. Bank loans in Malaysia more than doubled to US$4.1 billion in the first half, the highest in two years, after the country climbed out of its first recession in a decade last year.
Malaysia's economy is forecast by Prime Minister Najib Razak to expand as much as 6 per cent this year after shrinking 1.7 per cent in 2009.
Maybank Islamic Bhd, a unit of Malaysia's largest lender Malayan Banking Bhd, expects to increase Islamic loans by 20 per cent to 30 per cent for the financial year ending June 2011, chief executive officer Ibrahim Hassan said in a message to Bloomberg on July 1.
Dubai World, whose unit Nakheel is building palm-shaped islands off Dubai's coast, reached an agreement with its main creditor group in May to restructure US$23.5 billion of liabilities.
Saad Trading, Contracting and Financial Services Co, a unit of Saad Group owned by billionaire Maan al-Sanea and his family, defaulted on a US$650 million sukuk in November. Investment Dar, the Kuwait- based owner of half of Aston Martin Lagonda Ltd, was unable to meet obligations on its outstanding US$30 million debt in April last year, according to data compiled by Bloomberg.
The company and its creditors agreed to most commercial aspects of restructuring liabilities, the creditors committee said on June 14. It had 1.03 billion dinars (S$4.9 billion) of debt outstanding at the end of September 2008.
'The quality of the creditors has deteriorated,' Mr Hijazi of Moody's said during an Islamic capital market forum in Kuala Lumpur. 'So the uncertainty is still pretty much there.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : More than just K-pop heading here from Seoul
Business Times - 06 Jul 2010
More than just K-pop heading here from Seoul
Korean investors building up property holdings in Asia, including Singapore
By OLIVIA HO
SOUTH Korean investors are keen on a larger slice of their Asian neighbours' real estate pie - and some of them have their eye on Singapore.
Korean investment in Asian real estate may currently be worth more than US$10 billion, estimates Derek Wong, director of real estate investment & finance at Woori, Korea's largest financial group. This sum, he believes, has the potential to increase by 52-100 per cent over the next 3-5 years.
Forced to take rain checks for over a decade by not one but two financial crises, Korean investors can finally seek overseas investment opportunities under clear skies. And they are doing so with a vengeance.
'With Korean National Pension Service (NPS) acquiring more than US$3 billion worth of overseas real estate in the last six months, we expect other Korean pension, insurance and investment funds to follow suit,' says Mr Wong.
NPS plans to have 6.6 per cent of assets in overseas equities in 2011, compared with 5.1 per cent targeted for this year, and is considering establishing a fund that will focus on investments in Asia.
Besides the pension funds, Mr Wong names conglomerates with a lot of liquidity - such as Samsung, Daewoo and Hyundai - as well as insurance companies such as Samsung Insurance and Woori Aviva as other investors with pent-up interest and strong balance sheets.
'Since the 1997 Asian financial crisis, when Korean conglomerates were badly hit, Korean corporates had to strengthen their corporate balance sheets and were discouraged by the Korean government from making any significant overseas investments,' says Mr Wong.
As an indicator of how pent-up Korean interest can surge, he highlights how Korean investment in overseas real estate leapt from less than US$10 million in 2003 to US$750 million in 2006. It was about US$1.2 billion in 2008 before the global crisis halted all overseas investments again.
While China and Hong Kong are natural favourites for Korean investment, Singapore wins points for the transparency of its market - as well as for its political stability, strong legal system and clear tax structure without capital gains tax.
Korea was already making its presence felt in Singapore's residential market before the crisis set in; in 2007, Koreans accounted for 7 per cent of all foreign buyers and were ranked joint fifth among foreign buyers in Singapore.
Post-crisis, Korean investment is not a one-way street. The sharp depreciation of the Korean won during the crisis attracted an influx of overseas funds, especially from the United States.
Despite the strengthening of the won, the success of these early-bird investors has garnered Korean real estate a steady stream of attention. Woori is currently stitching together about US$2-3 billion worth of deals in Seoul, as well as facilitating the investment of Malaysian conglomerate Berjaya in an integrated resort on Jeju Island.
Mr Wong estimates that a standing asset in Korea can fetch a yield of about 6 per cent per annum, compared to a much lower 4 per cent in Singapore.
Choice picks of Korean real estate include office buildings and retail malls, he adds. 'These depend a lot on the economy of the country, and the Korean economy looks to be good for the next 10 years.'
The Korean government predicted last month that Korea's economy would grow 5.8 per cent this year.
Of course, many investors remain leery of Korea due to the language barrier and the political tension between the North and the South, as well as a widespread perception of the Korean market as being insular and 'closed off'.
'It's a misconception,' says Mr Wong, who feels that the country is making an effort to reach out to the world, especially through its entertainment scene.
'Now is a good time to break the Korean mystique,' he concludes. 'A lot of people say we're going through 'the golden decade of Korea'.'
Korean overseas investment leapt from less than US$10m in 2003 to US$1.2 billion in 2008.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
More than just K-pop heading here from Seoul
Korean investors building up property holdings in Asia, including Singapore
By OLIVIA HO
SOUTH Korean investors are keen on a larger slice of their Asian neighbours' real estate pie - and some of them have their eye on Singapore.
Korean investment in Asian real estate may currently be worth more than US$10 billion, estimates Derek Wong, director of real estate investment & finance at Woori, Korea's largest financial group. This sum, he believes, has the potential to increase by 52-100 per cent over the next 3-5 years.
Forced to take rain checks for over a decade by not one but two financial crises, Korean investors can finally seek overseas investment opportunities under clear skies. And they are doing so with a vengeance.
'With Korean National Pension Service (NPS) acquiring more than US$3 billion worth of overseas real estate in the last six months, we expect other Korean pension, insurance and investment funds to follow suit,' says Mr Wong.
NPS plans to have 6.6 per cent of assets in overseas equities in 2011, compared with 5.1 per cent targeted for this year, and is considering establishing a fund that will focus on investments in Asia.
Besides the pension funds, Mr Wong names conglomerates with a lot of liquidity - such as Samsung, Daewoo and Hyundai - as well as insurance companies such as Samsung Insurance and Woori Aviva as other investors with pent-up interest and strong balance sheets.
'Since the 1997 Asian financial crisis, when Korean conglomerates were badly hit, Korean corporates had to strengthen their corporate balance sheets and were discouraged by the Korean government from making any significant overseas investments,' says Mr Wong.
As an indicator of how pent-up Korean interest can surge, he highlights how Korean investment in overseas real estate leapt from less than US$10 million in 2003 to US$750 million in 2006. It was about US$1.2 billion in 2008 before the global crisis halted all overseas investments again.
While China and Hong Kong are natural favourites for Korean investment, Singapore wins points for the transparency of its market - as well as for its political stability, strong legal system and clear tax structure without capital gains tax.
Korea was already making its presence felt in Singapore's residential market before the crisis set in; in 2007, Koreans accounted for 7 per cent of all foreign buyers and were ranked joint fifth among foreign buyers in Singapore.
Post-crisis, Korean investment is not a one-way street. The sharp depreciation of the Korean won during the crisis attracted an influx of overseas funds, especially from the United States.
Despite the strengthening of the won, the success of these early-bird investors has garnered Korean real estate a steady stream of attention. Woori is currently stitching together about US$2-3 billion worth of deals in Seoul, as well as facilitating the investment of Malaysian conglomerate Berjaya in an integrated resort on Jeju Island.
Mr Wong estimates that a standing asset in Korea can fetch a yield of about 6 per cent per annum, compared to a much lower 4 per cent in Singapore.
Choice picks of Korean real estate include office buildings and retail malls, he adds. 'These depend a lot on the economy of the country, and the Korean economy looks to be good for the next 10 years.'
The Korean government predicted last month that Korea's economy would grow 5.8 per cent this year.
Of course, many investors remain leery of Korea due to the language barrier and the political tension between the North and the South, as well as a widespread perception of the Korean market as being insular and 'closed off'.
'It's a misconception,' says Mr Wong, who feels that the country is making an effort to reach out to the world, especially through its entertainment scene.
'Now is a good time to break the Korean mystique,' he concludes. 'A lot of people say we're going through 'the golden decade of Korea'.'
Korean overseas investment leapt from less than US$10m in 2003 to US$1.2 billion in 2008.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : A concierge at your service - at home
Jul 5, 2010
A concierge at your service - at home
Such perks being offered by more high-end residential projects
By Esther Teo
CONCIERGE services used to be the preserve of posh hotels but an increasing number of high-end residential developments are including them as perks to attract buyers.
Developers and property experts say there is a growing demand for such personalised services, as increasingly sophisticated homebuyers look to redefine high-end living.
'While good-class serviced apartments provided such services a while ago, it is a relatively new introduction for private condos and an increasing trend as buyers start to get more affluent,' said Knight Frank group managing director Danny Yeo.
While locals might not demand a full range of concierge services, they appreciate having a touch of class that allows a development to differentiate itself, he said.
Mr Steven Tan, executive director of residential at property agency OrangeTee, said buyers had higher expectations of their quality of life and were willing to pay more for the convenience that concierge services offer.
It also enhances the possibility 'of renting out your condo to high-budget expats, especially those who might have just moved here, are still unfamiliar with Singapore and would appreciate a concierge assisting them with information', he said.
Some concierge services in residential projects include catering menus for privately held parties, managing restaurant reservations, dog walking and even preparing a family picnic basket.
The expenses are usually included in a condo's monthly conservancy fee, although external services like spa treatments will cost more.
Overseas Union Enterprise (OUE) chief executive Thio Gim Hock said a full concierge service is not a must-have. However, if it does not bump up monthly maintenance fees too much, it is 'good to have' as residents of any development would appreciate it.
Mr Thio estimates monthly maintenance fees at OUE's high-end Twin Peaks project at Leonie Hill to be $300 for a smaller flat and $500 for the biggest unit.
He describes them as 'very reasonable' when combined with the full range of lifestyle facilities, such as gourmet kitchens and sky gyms.
Twin Peaks, which has yet to be launched, will include a concierge desk serving as a collection and drop-off point for residents and a concierge manager to help with bookings of movie tickets, air tickets or taxis.
City Developments' (CDL) St Regis Residences in Tanglin Road and the upcoming Residences at W in Sentosa Cove - expected to be completed by 2012 - will also offer those extra personal touches. CDL will offer the full suite of services such as housekeeping and laundry at the adjoining hotels that will operate under the same brand name next to each project.
There will also be in-house concierges who arrange for private chefs and butlers.
A CDL spokesman said residents have asked for a St Regis chef and butlers at their residences to prepare a banquet for friends and family, or butlers to prepare a basket for a picnic.
Ms Rena Dharmawan, 24, said the concierge services at St Regis Residences were a nice touch that allowed her to hold her engagement party conveniently at the function room below her apartment block.
'They assisted us in directing our guests and helped out with manual tasks like lifting tables for the buffet... On regular days, they would even help with our luggage or shopping bags all the way up to our apartment,' she added.
Two of Far East Organization's developments - Orchard Scotts in Scotts Road and Vida in Peck Hay Road - field about 60 concierge requests a week, ranging from walking pets, grocery shopping to booking theatre tickets, its spokesman said.
One particularly unusual request: buying a specific serving of hot chocolate with marshmallows from a hotel for a resident with a craving.
esthert@sph.com.sg
--------------------------------------------------------------------------------
There is a growing demand for such personalised services, as increasingly sophisticated homebuyers look to redefine high-end living.
A concierge at your service - at home
Such perks being offered by more high-end residential projects
By Esther Teo
CONCIERGE services used to be the preserve of posh hotels but an increasing number of high-end residential developments are including them as perks to attract buyers.
Developers and property experts say there is a growing demand for such personalised services, as increasingly sophisticated homebuyers look to redefine high-end living.
'While good-class serviced apartments provided such services a while ago, it is a relatively new introduction for private condos and an increasing trend as buyers start to get more affluent,' said Knight Frank group managing director Danny Yeo.
While locals might not demand a full range of concierge services, they appreciate having a touch of class that allows a development to differentiate itself, he said.
Mr Steven Tan, executive director of residential at property agency OrangeTee, said buyers had higher expectations of their quality of life and were willing to pay more for the convenience that concierge services offer.
It also enhances the possibility 'of renting out your condo to high-budget expats, especially those who might have just moved here, are still unfamiliar with Singapore and would appreciate a concierge assisting them with information', he said.
Some concierge services in residential projects include catering menus for privately held parties, managing restaurant reservations, dog walking and even preparing a family picnic basket.
The expenses are usually included in a condo's monthly conservancy fee, although external services like spa treatments will cost more.
Overseas Union Enterprise (OUE) chief executive Thio Gim Hock said a full concierge service is not a must-have. However, if it does not bump up monthly maintenance fees too much, it is 'good to have' as residents of any development would appreciate it.
Mr Thio estimates monthly maintenance fees at OUE's high-end Twin Peaks project at Leonie Hill to be $300 for a smaller flat and $500 for the biggest unit.
He describes them as 'very reasonable' when combined with the full range of lifestyle facilities, such as gourmet kitchens and sky gyms.
Twin Peaks, which has yet to be launched, will include a concierge desk serving as a collection and drop-off point for residents and a concierge manager to help with bookings of movie tickets, air tickets or taxis.
City Developments' (CDL) St Regis Residences in Tanglin Road and the upcoming Residences at W in Sentosa Cove - expected to be completed by 2012 - will also offer those extra personal touches. CDL will offer the full suite of services such as housekeeping and laundry at the adjoining hotels that will operate under the same brand name next to each project.
There will also be in-house concierges who arrange for private chefs and butlers.
A CDL spokesman said residents have asked for a St Regis chef and butlers at their residences to prepare a banquet for friends and family, or butlers to prepare a basket for a picnic.
Ms Rena Dharmawan, 24, said the concierge services at St Regis Residences were a nice touch that allowed her to hold her engagement party conveniently at the function room below her apartment block.
'They assisted us in directing our guests and helped out with manual tasks like lifting tables for the buffet... On regular days, they would even help with our luggage or shopping bags all the way up to our apartment,' she added.
Two of Far East Organization's developments - Orchard Scotts in Scotts Road and Vida in Peck Hay Road - field about 60 concierge requests a week, ranging from walking pets, grocery shopping to booking theatre tickets, its spokesman said.
One particularly unusual request: buying a specific serving of hot chocolate with marshmallows from a hotel for a resident with a craving.
esthert@sph.com.sg
--------------------------------------------------------------------------------
There is a growing demand for such personalised services, as increasingly sophisticated homebuyers look to redefine high-end living.
BT : Rents at suburban malls catching up with Orchard Rd
Business Times - 05 Jul 2010
Rents at suburban malls catching up with Orchard Rd
Upper levels in such malls already drawing higher rents than equivalent space in Orchard and Scotts area, says DTZ
By UMA SHANKARI
(SINGAPORE) Rents at suburban malls in Singapore are fast catching up with those for prime Orchard Road retail space as neighbourhood malls draw increasing shopper numbers and more interest from tenants.
The difference between prime Orchard Road rents and suburban rents narrowed to just 9 per cent in Q2 2010 - from as much as 24 per cent at the start of 2009 and 21 per cent in Q1 2005 - according to CB Richard Ellis (CBRE).
In fact, upper-storey space at these suburban malls is already more expensive than upper-storey space in the Orchard Road and Scotts Road area, according to data from DTZ.
The rental gap tightened as Orchard Road rents fell for the seventh consecutive quarter while suburban rents continued to edge up in the second quarter of 2010, CBRE's data shows.
Prime Orchard Road rents fell to $31.10 per square foot per month (psf pm), reflecting a 3.4 per cent decrease from $32.20 psf pm in Q1 2010.
Suburban malls, on the other hand, saw a 1.4 per cent quarter-on-quarter increase in prime rentals to $28.50 psf pm.
And when it comes to retail space on the upper floors, suburban malls are in fact fetching more than their Orchard Road and Scotts Road counterparts.
According to DTZ, upper-storey rents at suburban malls inched up 0.4 per cent quarter-on-quarter to $22.90 psf pm in Q2 2010, while upper-storey rents in the Orchard Road/Scotts Road area stayed flat at $20.50 psf pm.
Analysts said that rents in the Orchard Road area are depressed after a large amount of new supply - from malls such as Ion Orchard, 313@somerset and Orchard Central - came onstream over the past year.
'Competition in the Orchard Road and Scotts Road and other city areas has intensified and the increased range of retail choices has rendered consumers to be more selective in their purchases,' said Anna Lee, DTZ's associate director for retail.
'Retailers, particularly in the newer malls, are adjusting to the vagaries of consumer preferences and resulting in early termination of leases in some cases,' she added.
In contrast, rents in the suburban areas continued to edge up in the second quarter of 2010. Suburban malls, with their built-in catchment of shoppers and mass market offerings, largely performed better than malls in the city during the financial crisis.
These malls, which draw more and more shoppers every year, are now able to command higher rents from tenants.
'Generally, 2009 shopper traffic at our suburban malls is higher than that in 2008,' said a spokesman for CapitaMall Trust (CMT). CMT has eight suburban malls in its portfolio.
Frasers Centrepoint Trust (FCT), which owns four suburban malls, also said that footfall across its portfolio rose 6 per cent from the 2008 financial year (October 2007 to September 2008) to the 2009 financial year (October 2008 to September 2009). The figures exclude Anchorpoint, where traffic counters were removed for asset enhancement works.
The increased visitor numbers have translated into higher rents for both retail trusts.
FCT said that in the first six months of its 2010 financial year (October 2009 to March 2010), its portfolio achieved average rental reversions of 4.5 per cent. And for the suburban malls in CMT's portfolio, the rate of average rental growth per year ranged from 1.1 per cent to 2.3 per cent in Q1 2010.
Developers are extremely bullish on the potential of suburban retail space here.
Australian developer Lend Lease, which paid $749 million for a mixed-use land parcel in the Jurong Lake district, intends to build a suburban shopping mall on most of the site.
Lend Lease, which owns the 313@somerset and Parkway Parade shopping malls here, is required to set aside a mandatory 30 per cent of the gross floor area for office use. But the remaining 70 per cent will be used solely for retail space, said Ooi Eng Peng, executive officer for retail and investment management in Asia for Lend Lease.
'The mall will be the Parkway Parade of the west,' Mr Ooi said. Suburban malls offer good prospects for developers who can come up with the right tenant and product mix for the surrounding catchment population, he added.
Looking ahead, the gap between prime Orchard Road rents and prime suburban rents will narrow even more over the rest of this year as Orchard Road rents dip further.
'We expect prime Orchard Road rents to dip 5 per cent to 10 per cent in 2010 due to the settling of business and trading patterns,' said Letty Lee, CBRE's director for retail services. 'But prime suburban rents are likely to see a 3-5 per cent upside in the same period, underpinned by catchment demand.'
But it is not all doom and gloom for malls on Singapore's best-known street; analysts expect that over the next two to three years, rents in the Orchard Road will rebound.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
More competition: Orchard Road rents affected by new supply which came onstream in the past year
Rents at suburban malls catching up with Orchard Rd
Upper levels in such malls already drawing higher rents than equivalent space in Orchard and Scotts area, says DTZ
By UMA SHANKARI
(SINGAPORE) Rents at suburban malls in Singapore are fast catching up with those for prime Orchard Road retail space as neighbourhood malls draw increasing shopper numbers and more interest from tenants.
The difference between prime Orchard Road rents and suburban rents narrowed to just 9 per cent in Q2 2010 - from as much as 24 per cent at the start of 2009 and 21 per cent in Q1 2005 - according to CB Richard Ellis (CBRE).
In fact, upper-storey space at these suburban malls is already more expensive than upper-storey space in the Orchard Road and Scotts Road area, according to data from DTZ.
The rental gap tightened as Orchard Road rents fell for the seventh consecutive quarter while suburban rents continued to edge up in the second quarter of 2010, CBRE's data shows.
Prime Orchard Road rents fell to $31.10 per square foot per month (psf pm), reflecting a 3.4 per cent decrease from $32.20 psf pm in Q1 2010.
Suburban malls, on the other hand, saw a 1.4 per cent quarter-on-quarter increase in prime rentals to $28.50 psf pm.
And when it comes to retail space on the upper floors, suburban malls are in fact fetching more than their Orchard Road and Scotts Road counterparts.
According to DTZ, upper-storey rents at suburban malls inched up 0.4 per cent quarter-on-quarter to $22.90 psf pm in Q2 2010, while upper-storey rents in the Orchard Road/Scotts Road area stayed flat at $20.50 psf pm.
Analysts said that rents in the Orchard Road area are depressed after a large amount of new supply - from malls such as Ion Orchard, 313@somerset and Orchard Central - came onstream over the past year.
'Competition in the Orchard Road and Scotts Road and other city areas has intensified and the increased range of retail choices has rendered consumers to be more selective in their purchases,' said Anna Lee, DTZ's associate director for retail.
'Retailers, particularly in the newer malls, are adjusting to the vagaries of consumer preferences and resulting in early termination of leases in some cases,' she added.
In contrast, rents in the suburban areas continued to edge up in the second quarter of 2010. Suburban malls, with their built-in catchment of shoppers and mass market offerings, largely performed better than malls in the city during the financial crisis.
These malls, which draw more and more shoppers every year, are now able to command higher rents from tenants.
'Generally, 2009 shopper traffic at our suburban malls is higher than that in 2008,' said a spokesman for CapitaMall Trust (CMT). CMT has eight suburban malls in its portfolio.
Frasers Centrepoint Trust (FCT), which owns four suburban malls, also said that footfall across its portfolio rose 6 per cent from the 2008 financial year (October 2007 to September 2008) to the 2009 financial year (October 2008 to September 2009). The figures exclude Anchorpoint, where traffic counters were removed for asset enhancement works.
The increased visitor numbers have translated into higher rents for both retail trusts.
FCT said that in the first six months of its 2010 financial year (October 2009 to March 2010), its portfolio achieved average rental reversions of 4.5 per cent. And for the suburban malls in CMT's portfolio, the rate of average rental growth per year ranged from 1.1 per cent to 2.3 per cent in Q1 2010.
Developers are extremely bullish on the potential of suburban retail space here.
Australian developer Lend Lease, which paid $749 million for a mixed-use land parcel in the Jurong Lake district, intends to build a suburban shopping mall on most of the site.
Lend Lease, which owns the 313@somerset and Parkway Parade shopping malls here, is required to set aside a mandatory 30 per cent of the gross floor area for office use. But the remaining 70 per cent will be used solely for retail space, said Ooi Eng Peng, executive officer for retail and investment management in Asia for Lend Lease.
'The mall will be the Parkway Parade of the west,' Mr Ooi said. Suburban malls offer good prospects for developers who can come up with the right tenant and product mix for the surrounding catchment population, he added.
Looking ahead, the gap between prime Orchard Road rents and prime suburban rents will narrow even more over the rest of this year as Orchard Road rents dip further.
'We expect prime Orchard Road rents to dip 5 per cent to 10 per cent in 2010 due to the settling of business and trading patterns,' said Letty Lee, CBRE's director for retail services. 'But prime suburban rents are likely to see a 3-5 per cent upside in the same period, underpinned by catchment demand.'
But it is not all doom and gloom for malls on Singapore's best-known street; analysts expect that over the next two to three years, rents in the Orchard Road will rebound.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
More competition: Orchard Road rents affected by new supply which came onstream in the past year
Sunday, July 4, 2010
TODAY ONLINE : HDB resale flat prices up 3.8 per cent in Q2 this year
HDB resale flat prices up 3.8 per cent in Q2 this year
05:55 AM Jul 02, 2010
by Joanne Chan
SINGAPORE - Prices of Housing and Development Board resale flats continued to climb in the second quarter in the wake of Singapore's economic recovery.
In the latest flash estimates for the second quarter of this year, HDB resale prices rose 3.8 per cent. While the market is showing signs of slowing down, more time is needed before the full impact of Government measures aimed at raising supply could be felt, said analysts.
After stumbling in the middle of last year due to the recession, prices have since registered continuous growth. HDB resale prices rose for a fifth consecutive quarter and housing agents said the increase was due to rising cash-over-valuations (COVs).
PropNex, which handles about 30 per cent of HDB resale transactions, said the median COV has gone up to $30,000 in the second quarter.
The overall median COV was $25,000 in the first quarter, said the HDB.
Another major player in the resale market, ERA, also said the COV had risen by $5,000 in the second quarter.
Media advertising executive Ellena Tan, 25, recently bought a five-room flat in Punggol and had to fork out $30,000 as COV. She said: "It's a very good deal. There are home owners asking for even more ridiculous amounts, such as $50,000 and $65,000!"
ERA's associate director of Asia-Pacific, Mr Eugene Lim, said the Government's move to raise supply will have some impact on the market, but it would take time.
"New flats do not impact people who have immediate housing needs. For example, the upgraders, or those that are PRs, they can only look at the resale market."
Ngee Ann Polytechnic Real Estate Lecturer, Mr Nicholas Mak, said it can take up to a year before prices start to slow down.
Human relations practitioner Kristin Chan, 26, and her fiance want to buy a resale flat near her parents in Bukit Merah, but cannot afford the prices.
" We are looking at BTO flats now as they are more affordable. The flats may be in less-than-ideal locations ... but at least they're cheaper," she said.
On Wednesday, HDB launched about 2,700 Build-To-Order flats in Punggol and Sengkang.
The BTO supply will be supported by units released under the Design, Build and Sell Scheme.
It also put up three sites for tender under the Government Land Sales Programme for the second half of this year.
Analysts expect HDB resale prices to increase by between eight and 15 per cent this year.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jul 02, 2010
by Joanne Chan
SINGAPORE - Prices of Housing and Development Board resale flats continued to climb in the second quarter in the wake of Singapore's economic recovery.
In the latest flash estimates for the second quarter of this year, HDB resale prices rose 3.8 per cent. While the market is showing signs of slowing down, more time is needed before the full impact of Government measures aimed at raising supply could be felt, said analysts.
After stumbling in the middle of last year due to the recession, prices have since registered continuous growth. HDB resale prices rose for a fifth consecutive quarter and housing agents said the increase was due to rising cash-over-valuations (COVs).
PropNex, which handles about 30 per cent of HDB resale transactions, said the median COV has gone up to $30,000 in the second quarter.
The overall median COV was $25,000 in the first quarter, said the HDB.
Another major player in the resale market, ERA, also said the COV had risen by $5,000 in the second quarter.
Media advertising executive Ellena Tan, 25, recently bought a five-room flat in Punggol and had to fork out $30,000 as COV. She said: "It's a very good deal. There are home owners asking for even more ridiculous amounts, such as $50,000 and $65,000!"
ERA's associate director of Asia-Pacific, Mr Eugene Lim, said the Government's move to raise supply will have some impact on the market, but it would take time.
"New flats do not impact people who have immediate housing needs. For example, the upgraders, or those that are PRs, they can only look at the resale market."
Ngee Ann Polytechnic Real Estate Lecturer, Mr Nicholas Mak, said it can take up to a year before prices start to slow down.
Human relations practitioner Kristin Chan, 26, and her fiance want to buy a resale flat near her parents in Bukit Merah, but cannot afford the prices.
" We are looking at BTO flats now as they are more affordable. The flats may be in less-than-ideal locations ... but at least they're cheaper," she said.
On Wednesday, HDB launched about 2,700 Build-To-Order flats in Punggol and Sengkang.
The BTO supply will be supported by units released under the Design, Build and Sell Scheme.
It also put up three sites for tender under the Government Land Sales Programme for the second half of this year.
Analysts expect HDB resale prices to increase by between eight and 15 per cent this year.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST : HDB resale market still going strong
Jul 3, 2010
HDB resale market still going strong
High Q2 sales figures from property firms carrying momentum
By Joyce Teo
THE still-strong but slowing private homes sector is being left behind by the HDB resale market where prices and transaction activity are surging.
Agencies report that the high demand seen early in the year has been sustained with sale numbers staying buoyant - and nudging up prices in the process.
Early HDB estimates for the second quarter showed that resale prices rose 3.8 per cent to yet another record level, following a 2.8 per cent rise in the first.
It marked the eighth straight quarter that prices have broken records since 2008, when they surpassed the peak levels of 1996.
The figures released on Thursday have prompted analysts to revise their full-year estimates for price rises from 5 to 8 per cent to 12 to 15 per cent.
They say the brighter economic outlook is helping to sustain demand.
Dennis Wee Group said its study of HDB data shows that HDB resale transactions were moving briskly in April-May, with about 5,892 resale deals done in the two months. There were 8,484 deals done in the first quarter, according to HDB, which will provide second quarter sales numbers later this month.
PropNex chief executive Mohamed Ismail said his firm expects that the HDB will announce about 9,000 resale flat deals in the second quarter. He believes the momentum will continue: 'We have a 30 per cent market share and have already done 8 per cent more in the second quarter at 2,630 deals.'
ERA Asia-Pacific assistant vice-president Eugene Lim said the April to June period is the most active for HDB resales.
Resale deals done by ERA - which has a market share of around 40 per cent - reached 3,531 in the second quarter. Still, there will not be as many resale deals transacted this year as last year because many more new flats are being launched.
Mr Lim tips sales of 30,000 to 33,000 compared with 37,205 transactions last year - 31 per cent higher than in 2008. This is still a lively pace given that annual resale volumes hovered around 28,500 from 2006 to 2008, he said.
The activity in the HDB resale market is in contrast to the slowdown in the private homes sector, particularly in the prime districts 9, 10 and 11.
Total sales of these prime private homes slowed to 308 units in May, from 723 in April and 688 units in March, said Dennis Wee Group director Chris Koh.
While the high-end market is in a stalemate, there is a pool of buyers for HDB resale flats.
One sign of buying interest is the climbing cash-over-valuation (COV) - cash paid upfront by buyers on top of a flat's valuation.
Mr Lim added: 'Now, buyers and sellers just haggle on the cash portion, without bothering to talk about the valuations.
'It's a chicken and egg situation for many. If they sell to move to a new place, they will ask for high cash in order to pay the other seller.'
Some sellers are raising prices to take advantage of the situation, he said. Mr Lim cited a case where a seller was about to seal a deal with a COV of $28,000 for his $280,000 fourth floor, three-room flat in Clementi.
He rejected it after reading about the 3.8 per cent rise in HDB resale prices in yesterday's papers and is holding out for a better offer, claimed Mr Lim.
joyceteo@sph.com.sg
Early estimates see HDB resale prices rising 3.8 per cent in the second quarter. It marked the eighth straight quarter that prices have broken records since 2008, when they surpassed the peak levels of 1996. -- ST PHOTO: SAMUEL HE
HDB resale market still going strong
High Q2 sales figures from property firms carrying momentum
By Joyce Teo
THE still-strong but slowing private homes sector is being left behind by the HDB resale market where prices and transaction activity are surging.
Agencies report that the high demand seen early in the year has been sustained with sale numbers staying buoyant - and nudging up prices in the process.
Early HDB estimates for the second quarter showed that resale prices rose 3.8 per cent to yet another record level, following a 2.8 per cent rise in the first.
It marked the eighth straight quarter that prices have broken records since 2008, when they surpassed the peak levels of 1996.
The figures released on Thursday have prompted analysts to revise their full-year estimates for price rises from 5 to 8 per cent to 12 to 15 per cent.
They say the brighter economic outlook is helping to sustain demand.
Dennis Wee Group said its study of HDB data shows that HDB resale transactions were moving briskly in April-May, with about 5,892 resale deals done in the two months. There were 8,484 deals done in the first quarter, according to HDB, which will provide second quarter sales numbers later this month.
PropNex chief executive Mohamed Ismail said his firm expects that the HDB will announce about 9,000 resale flat deals in the second quarter. He believes the momentum will continue: 'We have a 30 per cent market share and have already done 8 per cent more in the second quarter at 2,630 deals.'
ERA Asia-Pacific assistant vice-president Eugene Lim said the April to June period is the most active for HDB resales.
Resale deals done by ERA - which has a market share of around 40 per cent - reached 3,531 in the second quarter. Still, there will not be as many resale deals transacted this year as last year because many more new flats are being launched.
Mr Lim tips sales of 30,000 to 33,000 compared with 37,205 transactions last year - 31 per cent higher than in 2008. This is still a lively pace given that annual resale volumes hovered around 28,500 from 2006 to 2008, he said.
The activity in the HDB resale market is in contrast to the slowdown in the private homes sector, particularly in the prime districts 9, 10 and 11.
Total sales of these prime private homes slowed to 308 units in May, from 723 in April and 688 units in March, said Dennis Wee Group director Chris Koh.
While the high-end market is in a stalemate, there is a pool of buyers for HDB resale flats.
One sign of buying interest is the climbing cash-over-valuation (COV) - cash paid upfront by buyers on top of a flat's valuation.
Mr Lim added: 'Now, buyers and sellers just haggle on the cash portion, without bothering to talk about the valuations.
'It's a chicken and egg situation for many. If they sell to move to a new place, they will ask for high cash in order to pay the other seller.'
Some sellers are raising prices to take advantage of the situation, he said. Mr Lim cited a case where a seller was about to seal a deal with a COV of $28,000 for his $280,000 fourth floor, three-room flat in Clementi.
He rejected it after reading about the 3.8 per cent rise in HDB resale prices in yesterday's papers and is holding out for a better offer, claimed Mr Lim.
joyceteo@sph.com.sg
Early estimates see HDB resale prices rising 3.8 per cent in the second quarter. It marked the eighth straight quarter that prices have broken records since 2008, when they surpassed the peak levels of 1996. -- ST PHOTO: SAMUEL HE
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