Business Times - 28 Jul 2010
Building of Labrador nature walk begins
CONSTRUCTION for the long-awaited Labrador Nature and Coastal Walk began yesterday and by the first half of 2012, the public will be able to explore new nature walks over the sea, mangrove and forested areas.
The Walk at the Labrador Nature Reserve will cost $13.5 million, and is part of the Parks and Waterbodies Plan first announced by Urban Renewal Authority in 2002, which aims to enhance Singapore's green spaces and waterbodies islandwide.
As an extension of the Southern Ridges, the Walk will link the Southern Ridges to the Southern Waterfront via a series of connections from Alexandra Road to the waterfront at Bukit Chermin, and will enable visitors to experience 'diverse settings comprising hills, mangroves and coastlines all in a single day', according to an Urban Redevelopment Authority press release.
URA chief executive Cheong Koon Hean said: 'The Labrador Nature and Coastal Walk will allow visitors to get even closer to nature and open up the coastal areas at Bukit Chermin, which are currently inaccessible.'
The 2.1 km walk comprises three thematically distinct trails. First is the Alexandra Road garden trail between Depot Road and Telok Blangah Road. The second, the Berlayer Creek mangrove trail, begins at the area surrounding the future Labrador Park MRT station. The third is the Bukit Chermin Harbour View boardwalk over the sea, which will connect Labrador Park to the Reflections at Keppel Bay condominium.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Thursday, July 29, 2010
CNA : S'pore real estate firms axe thousands of agents ahead of new MND regulations
S'pore real estate firms axe thousands of agents ahead of new MND regulations
By Joanne Chan | Posted: 27 July 2010 2026 hrs
SINGAPORE: Real estate firms in Singapore have axed thousands of agents, ahead of the regulatory framework to be implemented by the National Development Ministry.
The framework seeks to professionalise the industry, with the introduction of a new statutory board, known as the Council for Estate Agencies, and enhanced regulatory guidelines.
Channel NewsAsia understands that a Bill for the framework could be introduced in Parliament as early as October.
When contacted, the Ministry would only say that a Bill will be introduced in the second half of this year, with the Council operational by year-end.
Director of Dennis Wee Group, Chris Koh said: "It's going to be difficult for agents with a full-time job while moonlighting as an agent. Because the moment the employer goes into this public registry, the employer will know that you are an agent, and you stand to lose your existing full-time job."
Earlier this month, Dennis Wee Group's (DWG) housing agents were called back to their office to update their personal information and be briefed on the requirements of the new regulatory framework. The information collected was then submitted to the National Development Ministry, to be part of a new central registry of all agents.
1,500 of 5,000 agents were axed as a result of the exercise - mostly inactive or part-time staff.
Under the new guidelines, agents will also be required to pass a mandatory industry examination. Only those who already have industry certification will be exempted.
Rather than wait for the new examination, DWG has asked all its agents to get themselves certified with either the Certified Estate Agent Course or the Common Examination for Salespersons.
Another firm, PropNex, terminated 1,200 agents at the start of this year, either because they were inactive or unwilling to take up personal indemnity insurance.
The insurance covers any financial liabilities arising from housing transactions.
Agents associated with money-lending were also released.
CEO of PropNex, Mohd Ismail said: "Any PropNex agent who has a money-lending licence will not be allowed to practice. He or she will have to make a decision, because we do see a conflict of interest. We have terminated an agent who has been very active, however, he wanted to maintain both and that was not acceptable to us."
ERA, which has about 3,000 active agents, says it removes about 100 inactive agents from its database every month.
Associate director of ERA Asia Pacific, Eugene Lim said the company has also been conducting training to prepare their agents for the Common Examination for Salespersons.
To date, more than 2,500 ERA agents have taken this exam, with some having to do retakes for the paper.
HSR, which represents some 7,000 agents, says it regularly checks its database for inactive agents who are then put on a passive list and sent reminders to go for retraining.
There are an estimated 30,000 housing agents in Singapore.
The National Development Ministry has also been in consultation with various real estate firms to standardise documents used in the trade.
These include documents governing an agent's exclusive right to sell a property.
Currently, each agency has its own terms and conditions, which can be confusing for consumers.
- CNA/jm
By Joanne Chan | Posted: 27 July 2010 2026 hrs
SINGAPORE: Real estate firms in Singapore have axed thousands of agents, ahead of the regulatory framework to be implemented by the National Development Ministry.
The framework seeks to professionalise the industry, with the introduction of a new statutory board, known as the Council for Estate Agencies, and enhanced regulatory guidelines.
Channel NewsAsia understands that a Bill for the framework could be introduced in Parliament as early as October.
When contacted, the Ministry would only say that a Bill will be introduced in the second half of this year, with the Council operational by year-end.
Director of Dennis Wee Group, Chris Koh said: "It's going to be difficult for agents with a full-time job while moonlighting as an agent. Because the moment the employer goes into this public registry, the employer will know that you are an agent, and you stand to lose your existing full-time job."
Earlier this month, Dennis Wee Group's (DWG) housing agents were called back to their office to update their personal information and be briefed on the requirements of the new regulatory framework. The information collected was then submitted to the National Development Ministry, to be part of a new central registry of all agents.
1,500 of 5,000 agents were axed as a result of the exercise - mostly inactive or part-time staff.
Under the new guidelines, agents will also be required to pass a mandatory industry examination. Only those who already have industry certification will be exempted.
Rather than wait for the new examination, DWG has asked all its agents to get themselves certified with either the Certified Estate Agent Course or the Common Examination for Salespersons.
Another firm, PropNex, terminated 1,200 agents at the start of this year, either because they were inactive or unwilling to take up personal indemnity insurance.
The insurance covers any financial liabilities arising from housing transactions.
Agents associated with money-lending were also released.
CEO of PropNex, Mohd Ismail said: "Any PropNex agent who has a money-lending licence will not be allowed to practice. He or she will have to make a decision, because we do see a conflict of interest. We have terminated an agent who has been very active, however, he wanted to maintain both and that was not acceptable to us."
ERA, which has about 3,000 active agents, says it removes about 100 inactive agents from its database every month.
Associate director of ERA Asia Pacific, Eugene Lim said the company has also been conducting training to prepare their agents for the Common Examination for Salespersons.
To date, more than 2,500 ERA agents have taken this exam, with some having to do retakes for the paper.
HSR, which represents some 7,000 agents, says it regularly checks its database for inactive agents who are then put on a passive list and sent reminders to go for retraining.
There are an estimated 30,000 housing agents in Singapore.
The National Development Ministry has also been in consultation with various real estate firms to standardise documents used in the trade.
These include documents governing an agent's exclusive right to sell a property.
Currently, each agency has its own terms and conditions, which can be confusing for consumers.
- CNA/jm
ST : Welcome to new look Serangoon North Village
Jul 26, 2010
Welcome to new look Serangoon North Village
By Andrea Ong
MERCHANTS of the former Serangoon North Neighbourhood Centre are giving the thumbs up to their newly upgraded shopfronts and walkways.
The area, known for its many pet shops, has been renamed Serangoon North Village under the Housing Board's Revitalisation of Shops scheme.
At a dinner marking the completion of the two-year $6-million project, Aljunied GRC MP Lim Hwee Hua said it was important to give new life to shops in the area.
'As you have more malls coming up, the shops experience competition. Therefore we want to ensure that they will always remain attractive to residents because they are actually more conveniently located,' said the Minister in the Prime Minister's Office.
Mrs Lim and fellow Aljunied GRC MPs - Foreign Minister George Yeo, Senior Minister of State (Foreign Affairs) Zainul Abidin Rasheed, Madam Cynthia Phua and Mr Yeo Guat Kwang - launched a sign with the area's new name located on top of Block 153 Serangoon North Avenue 1.
The revitalisation scheme upgrades the shopping environment and business operations of shops in town or neighbourhood centres. Works include flattening uneven ground, building walkways and creating spaces for residents to mingle.
The new Central Plaza between Blocks 151 and 152, for instance, has space for carnivals and performances. There is also a 'Pet Walk' promenade for pet shops.
'The grassy ground outside our shops used to be very uneven. It would also get muddy and smelly when it rained,' said Dr Edmond Tan, 51. He runs a veterinary surgery in the area. With the land flattened and walkways built, it has become more accessible to the elderly.
Serangoon North is one of three sites with such upgrading works completed this year. The others are Teck Whye Shopping Centre and Bedok Town Centre.
Dr Tan, who is first vice-president of the Serangoon North Merchants' Association, worked with the HDB and Aljunied Town Council to implement the scheme.
It was not easy carrying out the works, he admitted. The association took six months to persuade the 123 shops in the area to commit to the scheme.
Under the scheme, the HDB and town council foot half the bill, up to $10,000 for items directly benefiting shops such as awnings. Shop owners bear the rest of the cost.
Shop owners and residents also had to put up with the inconvenience of upgrading works.
For Madam Toh Ah Hong, fewer customers came to her incense shop once upgrading started.
'But business is picking up now, especially on weekends. It's cleaner and roomier,' said the 47-year-old.
Mrs Lim said the town council tried to dovetail the project with its regular upgrading works and the Lift Upgrading Programme. This minimised inconvenience for residents and shop owners.
Welcome to new look Serangoon North Village
By Andrea Ong
MERCHANTS of the former Serangoon North Neighbourhood Centre are giving the thumbs up to their newly upgraded shopfronts and walkways.
The area, known for its many pet shops, has been renamed Serangoon North Village under the Housing Board's Revitalisation of Shops scheme.
At a dinner marking the completion of the two-year $6-million project, Aljunied GRC MP Lim Hwee Hua said it was important to give new life to shops in the area.
'As you have more malls coming up, the shops experience competition. Therefore we want to ensure that they will always remain attractive to residents because they are actually more conveniently located,' said the Minister in the Prime Minister's Office.
Mrs Lim and fellow Aljunied GRC MPs - Foreign Minister George Yeo, Senior Minister of State (Foreign Affairs) Zainul Abidin Rasheed, Madam Cynthia Phua and Mr Yeo Guat Kwang - launched a sign with the area's new name located on top of Block 153 Serangoon North Avenue 1.
The revitalisation scheme upgrades the shopping environment and business operations of shops in town or neighbourhood centres. Works include flattening uneven ground, building walkways and creating spaces for residents to mingle.
The new Central Plaza between Blocks 151 and 152, for instance, has space for carnivals and performances. There is also a 'Pet Walk' promenade for pet shops.
'The grassy ground outside our shops used to be very uneven. It would also get muddy and smelly when it rained,' said Dr Edmond Tan, 51. He runs a veterinary surgery in the area. With the land flattened and walkways built, it has become more accessible to the elderly.
Serangoon North is one of three sites with such upgrading works completed this year. The others are Teck Whye Shopping Centre and Bedok Town Centre.
Dr Tan, who is first vice-president of the Serangoon North Merchants' Association, worked with the HDB and Aljunied Town Council to implement the scheme.
It was not easy carrying out the works, he admitted. The association took six months to persuade the 123 shops in the area to commit to the scheme.
Under the scheme, the HDB and town council foot half the bill, up to $10,000 for items directly benefiting shops such as awnings. Shop owners bear the rest of the cost.
Shop owners and residents also had to put up with the inconvenience of upgrading works.
For Madam Toh Ah Hong, fewer customers came to her incense shop once upgrading started.
'But business is picking up now, especially on weekends. It's cleaner and roomier,' said the 47-year-old.
Mrs Lim said the town council tried to dovetail the project with its regular upgrading works and the Lift Upgrading Programme. This minimised inconvenience for residents and shop owners.
BT : HDB resale prices should stabilise in a year or so: Mah
Business Times - 26 Jul 2010
HDB resale prices should stabilise in a year or so: Mah
By EMILYN YAP
(SINGAPORE) Prices of resale flats should stabilise in a year or so as the Housing & Development Board (HDB) releases a record number of new flats into the market.
This was according to National Development Minister Mah Bow Tan, who spoke on the sidelines of HDB's 50th anniversary celebrations at Tampines yesterday.
Resale flat prices have been climbing in the last few quarters and they rose 4.1 per cent in Q2 from Q1 to a new high.
There is an 'imbalance' in the resale flat market, Mr Mah said. With the economy doing well, demand for resale flats from both first-time buyers and upgraders has been strong.
'I hope that with HDB pushing out a record number of flats, this imbalance will be addressed over the medium term,' he said. There should be stability 'maybe in another year or so'.
HDB will be launching 16,000 build-to-order (BTO) flats this year, 80 per cent more than in the previous year. Another 4,700 flats from executive condominium projects and the Design, Build and Sell scheme are potentially coming up.
It would be hard to say how resale flat prices will move in the short term, Mr Mah said. 'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half.'
If the economy cools, 'the demand for housing will also slow down,' he said.
Accompanying the rise in resale flat prices was a hike in cash premiums which buyers pay. The median cash over valuation (COV) across all resale deals in Q2 was $30,000, up from Q1's $25,000.
Rising COVs are a concern but they are determined by demand and supply in the market and the government cannot intervene, Mr Mah said.
He advised first-time buyers to turn to the BTO market 'where there is zero COV, where the prices are lower, where the flats are of newer designs,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
HDB resale prices should stabilise in a year or so: Mah
By EMILYN YAP
(SINGAPORE) Prices of resale flats should stabilise in a year or so as the Housing & Development Board (HDB) releases a record number of new flats into the market.
This was according to National Development Minister Mah Bow Tan, who spoke on the sidelines of HDB's 50th anniversary celebrations at Tampines yesterday.
Resale flat prices have been climbing in the last few quarters and they rose 4.1 per cent in Q2 from Q1 to a new high.
There is an 'imbalance' in the resale flat market, Mr Mah said. With the economy doing well, demand for resale flats from both first-time buyers and upgraders has been strong.
'I hope that with HDB pushing out a record number of flats, this imbalance will be addressed over the medium term,' he said. There should be stability 'maybe in another year or so'.
HDB will be launching 16,000 build-to-order (BTO) flats this year, 80 per cent more than in the previous year. Another 4,700 flats from executive condominium projects and the Design, Build and Sell scheme are potentially coming up.
It would be hard to say how resale flat prices will move in the short term, Mr Mah said. 'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half.'
If the economy cools, 'the demand for housing will also slow down,' he said.
Accompanying the rise in resale flat prices was a hike in cash premiums which buyers pay. The median cash over valuation (COV) across all resale deals in Q2 was $30,000, up from Q1's $25,000.
Rising COVs are a concern but they are determined by demand and supply in the market and the government cannot intervene, Mr Mah said.
He advised first-time buyers to turn to the BTO market 'where there is zero COV, where the prices are lower, where the flats are of newer designs,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Chinese developers eye S'pore property
Jul 26, 2010
Chinese developers eye S'pore property
Cash-rich firms spot growth opportunity here as cooling steps take effect at home
By Esther Teo
CHINESE developers eager for a slice of the red-hot housing pie are nudging their way into Singapore's property scene.
Chinese developers bid for at least 10 out of the 15 residential land sites put up for tender in the Government Land Sales (GLS) programme for the first half of this year.
They have landed three plots and narrowly missed out with second-place bids on at least two other sites.
MCC Land and Qingjian Group are two of the most active, although lesser-known Ningbo Construction Group unsuccessfully bid for a private residential plot in Tampines Road in May.
Property experts say this might herald a growing trend as Chinese developers, cashed up and eager to mitigate cooling measures that could derail property prices in China, shift their focus to Singapore where prices are expected to keep rising.
Their aggressive bidding could also be due to their lack of a landbank compared with local developers, and that many of their initial bids had failed to top the tender, experts say.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'Singapore is preferred as it is seen as a stable and safe market.
'Chinese developers will probably expand their presence here and I won't be surprised if we see more mainland firms coming into the property market.'
DMG & Partners property analyst Brandon Lee said that as most of the Chinese firms started out in the construction business, progressing to property development was not surprising as the margins were much higher.
'There are also an increasing number of mainland Chinese buyers entering the market, making up about 15 per cent of total foreign buyers, so the Chinese developers might be hoping to target this segment,' he added.
MCC Land's first attempt at a GLS tender was in March, for an executive condo site near Buangkok MRT Station. It fell a fraction short, tendering 1.4 per cent below the top bid of $193.3 million.
But it won the day with a $127.8 million bid for a site at Yishun, also in March. Last month, the firm clinched a Sembawang Road/Canberra Drive site for $131.7 million.
MCC Land is part of the Chinese state-owned enterprise Metallurgical Corporation of China (MCC Group) - a Fortune 500 company listed on the Shanghai and Hong Kong bourses. It is involved in engineering, procurement and construction, mining and property development.
While MCC Land is a new entrant, MCC Group's local construction unit, China Jingye Engineering Corporation, has been doing business here for almost 14 years. It was the main contractor for Universal Studios at Resorts World Sentosa.
MCC Land managing director Tan Zhiyong said that it was a natural progression to branch out into property development as it expanded its footprint here.
Although the firm is mostly involved in the residential market, he does not rule out entering the commercial sector if the opportunity arises.
'We don't have a fixed goal in terms of what we want to accomplish... If a good opportunity arises, we will act but this also depends on how the market moves, the timing and the location of a site,' he said.
Mr Tan added that while he does not expect property prices here to increase as fast in the rest of the year as they did in the first half, he expects values to remain stable and so might bid for more sites.
The other main player - the Qingjian group - also began operations here as a contractor for HDB projects. It marked its first foray into property development in 2008 with Natura Loft - an HDB design, build and sell scheme in Bishan.
Qingdao Construction - part of the Qingjian Group - has since clinched a site next to Potong Pasir MRT station for $113.7 million. Its bid of $607 per sq ft per plot ratio was a record land price for the area and ahead of more established property players like Frasers Centrepoint, Far East Organization and Hong Leong Holdings.
Qingdao Construction director Zuo Haibin said Singapore's growing economy provided a stable investment platform. He hopes to at least double the size of the firm's development arm in the next year and has identified sites in the upcoming GLS programme the firm may bid for.
esthert@sph.com.sg
Chinese developers eye S'pore property
Cash-rich firms spot growth opportunity here as cooling steps take effect at home
By Esther Teo
CHINESE developers eager for a slice of the red-hot housing pie are nudging their way into Singapore's property scene.
Chinese developers bid for at least 10 out of the 15 residential land sites put up for tender in the Government Land Sales (GLS) programme for the first half of this year.
They have landed three plots and narrowly missed out with second-place bids on at least two other sites.
MCC Land and Qingjian Group are two of the most active, although lesser-known Ningbo Construction Group unsuccessfully bid for a private residential plot in Tampines Road in May.
Property experts say this might herald a growing trend as Chinese developers, cashed up and eager to mitigate cooling measures that could derail property prices in China, shift their focus to Singapore where prices are expected to keep rising.
Their aggressive bidding could also be due to their lack of a landbank compared with local developers, and that many of their initial bids had failed to top the tender, experts say.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'Singapore is preferred as it is seen as a stable and safe market.
'Chinese developers will probably expand their presence here and I won't be surprised if we see more mainland firms coming into the property market.'
DMG & Partners property analyst Brandon Lee said that as most of the Chinese firms started out in the construction business, progressing to property development was not surprising as the margins were much higher.
'There are also an increasing number of mainland Chinese buyers entering the market, making up about 15 per cent of total foreign buyers, so the Chinese developers might be hoping to target this segment,' he added.
MCC Land's first attempt at a GLS tender was in March, for an executive condo site near Buangkok MRT Station. It fell a fraction short, tendering 1.4 per cent below the top bid of $193.3 million.
But it won the day with a $127.8 million bid for a site at Yishun, also in March. Last month, the firm clinched a Sembawang Road/Canberra Drive site for $131.7 million.
MCC Land is part of the Chinese state-owned enterprise Metallurgical Corporation of China (MCC Group) - a Fortune 500 company listed on the Shanghai and Hong Kong bourses. It is involved in engineering, procurement and construction, mining and property development.
While MCC Land is a new entrant, MCC Group's local construction unit, China Jingye Engineering Corporation, has been doing business here for almost 14 years. It was the main contractor for Universal Studios at Resorts World Sentosa.
MCC Land managing director Tan Zhiyong said that it was a natural progression to branch out into property development as it expanded its footprint here.
Although the firm is mostly involved in the residential market, he does not rule out entering the commercial sector if the opportunity arises.
'We don't have a fixed goal in terms of what we want to accomplish... If a good opportunity arises, we will act but this also depends on how the market moves, the timing and the location of a site,' he said.
Mr Tan added that while he does not expect property prices here to increase as fast in the rest of the year as they did in the first half, he expects values to remain stable and so might bid for more sites.
The other main player - the Qingjian group - also began operations here as a contractor for HDB projects. It marked its first foray into property development in 2008 with Natura Loft - an HDB design, build and sell scheme in Bishan.
Qingdao Construction - part of the Qingjian Group - has since clinched a site next to Potong Pasir MRT station for $113.7 million. Its bid of $607 per sq ft per plot ratio was a record land price for the area and ahead of more established property players like Frasers Centrepoint, Far East Organization and Hong Leong Holdings.
Qingdao Construction director Zuo Haibin said Singapore's growing economy provided a stable investment platform. He hopes to at least double the size of the firm's development arm in the next year and has identified sites in the upcoming GLS programme the firm may bid for.
esthert@sph.com.sg
ST : Duo jailed for tricking eight in HDB flat rental scam
Jul 27, 2010
Duo jailed for tricking eight in HDB flat rental scam
TWO women were jailed yesterday for a rental scam that duped eight people into parting with almost $24,000 in rental deposits.
Between last November and March this year, friends Phey Mui Hoon, 45, and Kuan Ai Lee, 47, targeted their victims - seven of them foreigners - through advertisements.
Yesterday, Phey was jailed for a year and 41/2 months, while Kuan, who had a previous cheating conviction, was sentenced to a year and eight months behind bars.
A district court heard that they had a locksmith install new locks at an empty flat in Block 28B, Dover Crescent, before offering it for rent on at least eight occasions. But they did not even own the 12th-storey apartment in the first place.
On April 5, a draftsman reported to the police that he had been cheated of $3,500 by the two women. He said he was promised the keys to the flat on March 27, but could not reach either of them for more than a week.
The pair were eventually arrested at a hotel in Joo Chiat.
Besides facing eight cheating charges, Phey and Kuan were each also charged with eight counts of criminal trespass for entering the flat without permission from the HDB.
Real estate agents told The Straits Times that although there had been a handful of rental scams in the past, the problem grew dramatically in recent years because of the increasing number of foreigners coming here to work or study.
According to the police, there were 355 cases in 2008 and 324 cases of rental scams last year.
Police advise potential tenants to verify and confirm the ownership of the property before signing the tenancy agreement or making any advance or deposit payment.
They also suggest that tenants request for all parties, such as the owners and the housing agents, to be present when signing tenancy documents.
Real estate agent Annie Tan said alarm bells should be ringing when ridiculously low rents are offered.
'Since the con artist will take the money and run, he or she will try to make the offer irresistible,' she said.
KHUSHWANT SINGH
Duo jailed for tricking eight in HDB flat rental scam
TWO women were jailed yesterday for a rental scam that duped eight people into parting with almost $24,000 in rental deposits.
Between last November and March this year, friends Phey Mui Hoon, 45, and Kuan Ai Lee, 47, targeted their victims - seven of them foreigners - through advertisements.
Yesterday, Phey was jailed for a year and 41/2 months, while Kuan, who had a previous cheating conviction, was sentenced to a year and eight months behind bars.
A district court heard that they had a locksmith install new locks at an empty flat in Block 28B, Dover Crescent, before offering it for rent on at least eight occasions. But they did not even own the 12th-storey apartment in the first place.
On April 5, a draftsman reported to the police that he had been cheated of $3,500 by the two women. He said he was promised the keys to the flat on March 27, but could not reach either of them for more than a week.
The pair were eventually arrested at a hotel in Joo Chiat.
Besides facing eight cheating charges, Phey and Kuan were each also charged with eight counts of criminal trespass for entering the flat without permission from the HDB.
Real estate agents told The Straits Times that although there had been a handful of rental scams in the past, the problem grew dramatically in recent years because of the increasing number of foreigners coming here to work or study.
According to the police, there were 355 cases in 2008 and 324 cases of rental scams last year.
Police advise potential tenants to verify and confirm the ownership of the property before signing the tenancy agreement or making any advance or deposit payment.
They also suggest that tenants request for all parties, such as the owners and the housing agents, to be present when signing tenancy documents.
Real estate agent Annie Tan said alarm bells should be ringing when ridiculously low rents are offered.
'Since the con artist will take the money and run, he or she will try to make the offer irresistible,' she said.
KHUSHWANT SINGH
ST : Pastoral View tries to sell en bloc again
Jul 27, 2010
Pastoral View tries to sell en bloc again
After failed 2008 attempt, it is making another bid, this time with adjoining vacant plot
By Joyce Teo
THE revival in the collective sale market this year is continuing, with a small development and adjoining land parcel in the Novena area the latest to go on sale.
The 50-unit Pastoral View and the vacant plot have a combined asking price of about $130 million to $150 million.
The two sites in Bassein Road have a total land area of 51,395 sq ft and can be built up to some 143,906 sq ft of gross floor area and a height of 36 storeys. They are near Novena MRT station.
Credo Real Estate, which is marketing the freehold sites, said the buyer can choose to build a high-rise tower comprising 140 apartments with an average size of 1,000 sq ft each.
The price translates to a land rate of $904 to $1,043 per sq ft per plot ratio, said its deputy managing director Tan Hong Boon.
This includes a modest development charge of about $157,000 for the plot at 11 Bassein Road to redevelop it.
No development charge is payable for the 10-storey Pastoral View, which was previously put up for sale in early 2008 at an asking price of $95 million without the adjoining plot.
But the market had turned for the worse by the time the tender closed in April that year, and it was not sold.
Credo said buyers can opt to tender for the combined sites or either one.
Pastoral View alone is 34,193 sq ft in size and going for $86.6 million to $100 million. If the sale goes through at the minimum asking price, the estate's owners will stand to reap at least $1.04 million to $4.56 million each, depending on their unit's size.
The smaller adjoining plot at 11 Bassein Road is 17,203 sq ft in size. The asking price for the plot alone is about $43.4 million to $50 million. A search shows that it is owned by OCBC Bank.
So far this year, at least 16 sites worth $786 million have been sold en bloc, compared with just one last year at $100.8 million, said Credo.
More sites are expected to be put up for collective sale this year, said Mr Tan.
joyceteo@sph.com.sg
Pastoral View tries to sell en bloc again
After failed 2008 attempt, it is making another bid, this time with adjoining vacant plot
By Joyce Teo
THE revival in the collective sale market this year is continuing, with a small development and adjoining land parcel in the Novena area the latest to go on sale.
The 50-unit Pastoral View and the vacant plot have a combined asking price of about $130 million to $150 million.
The two sites in Bassein Road have a total land area of 51,395 sq ft and can be built up to some 143,906 sq ft of gross floor area and a height of 36 storeys. They are near Novena MRT station.
Credo Real Estate, which is marketing the freehold sites, said the buyer can choose to build a high-rise tower comprising 140 apartments with an average size of 1,000 sq ft each.
The price translates to a land rate of $904 to $1,043 per sq ft per plot ratio, said its deputy managing director Tan Hong Boon.
This includes a modest development charge of about $157,000 for the plot at 11 Bassein Road to redevelop it.
No development charge is payable for the 10-storey Pastoral View, which was previously put up for sale in early 2008 at an asking price of $95 million without the adjoining plot.
But the market had turned for the worse by the time the tender closed in April that year, and it was not sold.
Credo said buyers can opt to tender for the combined sites or either one.
Pastoral View alone is 34,193 sq ft in size and going for $86.6 million to $100 million. If the sale goes through at the minimum asking price, the estate's owners will stand to reap at least $1.04 million to $4.56 million each, depending on their unit's size.
The smaller adjoining plot at 11 Bassein Road is 17,203 sq ft in size. The asking price for the plot alone is about $43.4 million to $50 million. A search shows that it is owned by OCBC Bank.
So far this year, at least 16 sites worth $786 million have been sold en bloc, compared with just one last year at $100.8 million, said Credo.
More sites are expected to be put up for collective sale this year, said Mr Tan.
joyceteo@sph.com.sg
BT : More courses for building specialists
Business Times - 27 Jul 2010
More courses for building specialists
Shortage of industry professionals spurs BCAA, SISV initiative
THE booming construction industry over the years has created a shortage of qualified surveyors and other specialists.
As such, in a release by the Building and Construction Authority (BCA), it was revealed that the BCA Academy (BCAA) and Singapore Institute of Surveyors and Valuers (SISV) will put in place a number of initiatives to build up and strengthen the pool of building professionals within the industry.
Among the specialists in demand include quantity surveyors, land surveyors, valuers and property managers.
To resolve this, the BCAA and SISV will be jointly introducing more academic programmes such as diploma, specialist diploma and degree courses to train new professionals and to upgrade the skill sets of existing ones.
BCAA will also be working with SISV to initiate more dialogue sessions with firms in the industry to facilitate discussion on developing such capabilities.
To further promote the building profession, BCA and SISV signed a memorandum of understanding to share resources, promote educational programmes and jointly create and implement new products and services to drive the local building industry forward.
John Keung, CEO of BCA, said, 'I'm confident that this new collaboration will help elevate the occupational profile in the built environment. BCA looks forward to working with SISV to develop more programmes to train personnel at the technical and professional level to meet the needs of the industry.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
More courses for building specialists
Shortage of industry professionals spurs BCAA, SISV initiative
THE booming construction industry over the years has created a shortage of qualified surveyors and other specialists.
As such, in a release by the Building and Construction Authority (BCA), it was revealed that the BCA Academy (BCAA) and Singapore Institute of Surveyors and Valuers (SISV) will put in place a number of initiatives to build up and strengthen the pool of building professionals within the industry.
Among the specialists in demand include quantity surveyors, land surveyors, valuers and property managers.
To resolve this, the BCAA and SISV will be jointly introducing more academic programmes such as diploma, specialist diploma and degree courses to train new professionals and to upgrade the skill sets of existing ones.
BCAA will also be working with SISV to initiate more dialogue sessions with firms in the industry to facilitate discussion on developing such capabilities.
To further promote the building profession, BCA and SISV signed a memorandum of understanding to share resources, promote educational programmes and jointly create and implement new products and services to drive the local building industry forward.
John Keung, CEO of BCA, said, 'I'm confident that this new collaboration will help elevate the occupational profile in the built environment. BCA looks forward to working with SISV to develop more programmes to train personnel at the technical and professional level to meet the needs of the industry.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : OCBC, Pastoral View owners sell sites together
Business Times - 27 Jul 2010
OCBC, Pastoral View owners sell sites together
OCBC, which has owned a site at 11 Bassein Road in the Novena area since the 1940s, has teamed up with the owners of Pastoral View next door who are doing a collective sale, to sell the two properties together.
Both Pastoral View, which is at 7 Bassein Road, and OCBC's site, at 11 Bassein Road, are freehold.
'The sellers are expecting offers in the region of $130-150 million. This translates to a land rate of $904-1,043 per sq ft per plot ratio, after factoring in a marginal development charge of about $157,000 payable for No. 11 Bassein Road, to redevelop the site up to a 2.8 gross plot ratio. No DC is payable for Pastoral View,' said Tan Hong Boon, deputy managing director at Credo Real Estate, which is marketing the two properties.
More than 80 per cent of owners by share value and strata floor area at the 50-unit Pastoral View have signed a collective sale agreement. OCBC's next door property is an empty site.
The two sites have a combined land area of 51,395 sq ft and can be developed into a new condo with a gross floor area of 143,906 sq ft. This allows for a 36-storey project with 140 apartments of average size of 1,000 sq ft.
The site is zoned for residential use with a 2.8 plot ratio under Master Plan 2008.
Interested parties can bid for one or both sites.
'We believe developers would find the enlarged site more attractive because it would offer economies of scale and broaden their offering,' said Mr Tan.
There will be space for the winning developer to build a showflat before Pastoral View residents move out, Mr Tan said. This means that the developer can market the new project earlier, reducing holding costs and market risks.
Novena is home to office and retail blocks such as United Square, and hospitals such as Tan Tock Seng.
Credo believes that the new residential project will attract medical professionals and medical tourists.
Near Pastoral View, units at D'Ixoras have changed hands at more than $1,240 psf in the past two months, based on caveats lodged.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Pastoral View: More than 80% of owners by share value and strata floor area have signed a collective sale agreement
OCBC, Pastoral View owners sell sites together
OCBC, which has owned a site at 11 Bassein Road in the Novena area since the 1940s, has teamed up with the owners of Pastoral View next door who are doing a collective sale, to sell the two properties together.
Both Pastoral View, which is at 7 Bassein Road, and OCBC's site, at 11 Bassein Road, are freehold.
'The sellers are expecting offers in the region of $130-150 million. This translates to a land rate of $904-1,043 per sq ft per plot ratio, after factoring in a marginal development charge of about $157,000 payable for No. 11 Bassein Road, to redevelop the site up to a 2.8 gross plot ratio. No DC is payable for Pastoral View,' said Tan Hong Boon, deputy managing director at Credo Real Estate, which is marketing the two properties.
More than 80 per cent of owners by share value and strata floor area at the 50-unit Pastoral View have signed a collective sale agreement. OCBC's next door property is an empty site.
The two sites have a combined land area of 51,395 sq ft and can be developed into a new condo with a gross floor area of 143,906 sq ft. This allows for a 36-storey project with 140 apartments of average size of 1,000 sq ft.
The site is zoned for residential use with a 2.8 plot ratio under Master Plan 2008.
Interested parties can bid for one or both sites.
'We believe developers would find the enlarged site more attractive because it would offer economies of scale and broaden their offering,' said Mr Tan.
There will be space for the winning developer to build a showflat before Pastoral View residents move out, Mr Tan said. This means that the developer can market the new project earlier, reducing holding costs and market risks.
Novena is home to office and retail blocks such as United Square, and hospitals such as Tan Tock Seng.
Credo believes that the new residential project will attract medical professionals and medical tourists.
Near Pastoral View, units at D'Ixoras have changed hands at more than $1,240 psf in the past two months, based on caveats lodged.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Pastoral View: More than 80% of owners by share value and strata floor area have signed a collective sale agreement
ST : 'Imbalance' in HDB resale market: Mah
Jul 26, 2010
'Imbalance' in HDB resale market: Mah
Record boost to supply should stabilise prices in about a year, he says
By Melissa Kok
PRICES of HDB resale flats are high at present because of an 'imbalance' in supply and demand, which should be redressed by the record number of flats being released by the HDB this year.
The boost to supply should stabilise prices in about a year or so, said National Development Minister Mah Bow Tan yesterday, as he sought to address concerns over the cost of HDB resale flats, which has climbed steadily since 2008.
Speaking on the sidelines of a community event in Tampines, Mr Mah attributed the surge to strong economic growth and demand from first-time buyers, such as newly married couples, and owners looking to upgrade to bigger flats.
'I think at this point in time, there's still an imbalance,' he said. 'I hope that with HDB pushing out a record number of flats this year, this imbalance will be redressed over the medium term. I would expect that in another year or so, we should be able to stabilise everything.'
HDB launched almost 9,000 new build-to-order flats in the first half of the year, and will launch another 7,200 in the second half. The number is about 80 per cent more than for last year.
In addition, there are some 4,700 new flats under the design, build and sell scheme, in which HDB flats are built by private developers, and the executive condo (EC) housing scheme. In the pipeline are four more EC sites in Punggol, Pasir Ris, Bukit Panjang and Tampines, which should yield 1,900 units.
Resale prices for HDB flats rose for the eighth straight quarter between April and last month, surging 4.1 per cent from the previous quarter.
In the first half of this year, 17,598 resale applications were registered with HDB, compared to 16,630 for the same period last year and 14,121 in 2008.
The median cash over valuation (COV) - the cash amount paid upfront by a buyer over a flat's valuation by the HDB - also hit a record $30,000.
Mr Mah acknowledged this was 'equally a concern' as it made resale flats even less affordable, and urged first-time buyers to purchase their new home directly from the HDB instead.
He said: 'If you are a first-timer, then go for the build-to-order (BTO) market, where there is zero COV, where the prices are lower, where the flats are of newer design and so on.'
To newly married couples who say they cannot wait that long for a new flat, Mr Mah said the three-year waiting period was 'the norm for our standard, which is already higher than other cities'.
He added: 'If you want to, say, have a flat, zero waiting time, then obviously the price of the flats will be higher, and this is where the resale flat market comes in.
'That's why you have a disparity in price between resale flat and new flats. This cost difference reflects the time difference.'
Mr Mah said there were enough homes for first-time buyers and the increased number of flats being built would relieve the pressure on the resale market.
In the short-term, he said, it was not clear if prices would continue to rise.
'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half; all indications are that there may be some slowdown. If that comes about, then obviously the demand for housing will also slow down,' he said.
PropNex chief executive Mohamed Ismail said the biggest group of people driving up the resale prices are owners of HDB flats who are motivated by the peak prices to sell.
'The majority of those who bought new four- and five-room HDB flats eight years ago, can probably make more than $100,000 cash profit now,' he said.
Newlyweds said getting a new flat from the HDB had its difficulties too.
Civil servant Jonathan Fong, 31, and wedding videographer Mylene Tong, 29, failed twice to get a new flat in the locations they wanted.
They eventually bought a three-room flat in Sin Ming Road in March for $237,000, with a COV of $29,000.
melk@sph.com.sg
'Imbalance' in HDB resale market: Mah
Record boost to supply should stabilise prices in about a year, he says
By Melissa Kok
PRICES of HDB resale flats are high at present because of an 'imbalance' in supply and demand, which should be redressed by the record number of flats being released by the HDB this year.
The boost to supply should stabilise prices in about a year or so, said National Development Minister Mah Bow Tan yesterday, as he sought to address concerns over the cost of HDB resale flats, which has climbed steadily since 2008.
Speaking on the sidelines of a community event in Tampines, Mr Mah attributed the surge to strong economic growth and demand from first-time buyers, such as newly married couples, and owners looking to upgrade to bigger flats.
'I think at this point in time, there's still an imbalance,' he said. 'I hope that with HDB pushing out a record number of flats this year, this imbalance will be redressed over the medium term. I would expect that in another year or so, we should be able to stabilise everything.'
HDB launched almost 9,000 new build-to-order flats in the first half of the year, and will launch another 7,200 in the second half. The number is about 80 per cent more than for last year.
In addition, there are some 4,700 new flats under the design, build and sell scheme, in which HDB flats are built by private developers, and the executive condo (EC) housing scheme. In the pipeline are four more EC sites in Punggol, Pasir Ris, Bukit Panjang and Tampines, which should yield 1,900 units.
Resale prices for HDB flats rose for the eighth straight quarter between April and last month, surging 4.1 per cent from the previous quarter.
In the first half of this year, 17,598 resale applications were registered with HDB, compared to 16,630 for the same period last year and 14,121 in 2008.
The median cash over valuation (COV) - the cash amount paid upfront by a buyer over a flat's valuation by the HDB - also hit a record $30,000.
Mr Mah acknowledged this was 'equally a concern' as it made resale flats even less affordable, and urged first-time buyers to purchase their new home directly from the HDB instead.
He said: 'If you are a first-timer, then go for the build-to-order (BTO) market, where there is zero COV, where the prices are lower, where the flats are of newer design and so on.'
To newly married couples who say they cannot wait that long for a new flat, Mr Mah said the three-year waiting period was 'the norm for our standard, which is already higher than other cities'.
He added: 'If you want to, say, have a flat, zero waiting time, then obviously the price of the flats will be higher, and this is where the resale flat market comes in.
'That's why you have a disparity in price between resale flat and new flats. This cost difference reflects the time difference.'
Mr Mah said there were enough homes for first-time buyers and the increased number of flats being built would relieve the pressure on the resale market.
In the short-term, he said, it was not clear if prices would continue to rise.
'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half; all indications are that there may be some slowdown. If that comes about, then obviously the demand for housing will also slow down,' he said.
PropNex chief executive Mohamed Ismail said the biggest group of people driving up the resale prices are owners of HDB flats who are motivated by the peak prices to sell.
'The majority of those who bought new four- and five-room HDB flats eight years ago, can probably make more than $100,000 cash profit now,' he said.
Newlyweds said getting a new flat from the HDB had its difficulties too.
Civil servant Jonathan Fong, 31, and wedding videographer Mylene Tong, 29, failed twice to get a new flat in the locations they wanted.
They eventually bought a three-room flat in Sin Ming Road in March for $237,000, with a COV of $29,000.
melk@sph.com.sg
ST : $550 million upgrade for Hougang, Pasir Ris, Tampines
Jul 26, 2010
$550 million upgrade for Hougang, Pasir Ris, Tampines
New covered linkways, new windows and grilles in homes possible
By Melissa Kok
SOME 54,000 households in Hougang, Tampines and Pasir Ris can look forward to new amenities in their neighbourhoods with upgrading works now under way.
The improvements could include new covered linkways, car porches and upgrading of children's playgrounds.
Residents may also get upgrades to their flats, such as new waterproofing for their bathroom floors, and new windows and grilles.
No target completion date has been given for the works but the Government has set aside an extra $550 million for the three HDB towns under the Main Upgrading, Interim Upgrading and Lift Upgrading programmes.
As long as the Government had the financial resources, it would continue to rejuvenate housing estates, said Deputy Prime Minister and adviser to Pasir Ris-Punggol GRC grassroots organisation Teo Chee Hean yesterday. He was speaking at the launch of a community roadshow in Tampines Central to cap HDB's 50th anniversary celebrations.
Tampines, Hougang and Pasir Ris are mature towns that were developed in the 1980s and early 1990s. Together with the newer towns of Sengkang and Punggol, they are home to 197,100 flats, about 22 per cent of the total number of HDB homes in Singapore.
Some $540 million has already been spent to improve amenities for more than 67,000 households in the three towns.
Of the extra $550 million, around $263 million will go towards estates in Tampines; $180 million to Hougang and $107 million to Pasir Ris.
Mr Teo, noting how the three housing estates have transformed over the years into modern and bustling towns, said commercial and other social facilities will also be upgraded to keep up with renewed residential areas.
For example, six sites in Tampines and Hougang have benefited from HDB's Revitalisation of Shops Scheme (ROS) to increase the vibrancy and competitiveness of shops in the heartland.
Under the scheme, HDB provides partial funding for shopkeepers to spruce up their shopfronts and carry out promotions to attract more customers. The scheme will be extended to seven more sites in the two estates.
Loyang Point shopping centre in Pasir Ris will also be revamped at the end of the year.
Long-time residents welcomed the improvements to their neighbourhoods and shopping areas.
Mr Lee Kam Mun, who has lived in Tampines Central since 1998, said residents have got a lot out of the upgrading programmes.
Said the 42-year-old terminal manager in the oil and gas industry: 'We have a nicer outlook in the estate. You come back and feel relaxed. There are also more common areas that encourage us to meet and make friends with neighbours.'
melk@sph.com.sg
$550 million upgrade for Hougang, Pasir Ris, Tampines
New covered linkways, new windows and grilles in homes possible
By Melissa Kok
SOME 54,000 households in Hougang, Tampines and Pasir Ris can look forward to new amenities in their neighbourhoods with upgrading works now under way.
The improvements could include new covered linkways, car porches and upgrading of children's playgrounds.
Residents may also get upgrades to their flats, such as new waterproofing for their bathroom floors, and new windows and grilles.
No target completion date has been given for the works but the Government has set aside an extra $550 million for the three HDB towns under the Main Upgrading, Interim Upgrading and Lift Upgrading programmes.
As long as the Government had the financial resources, it would continue to rejuvenate housing estates, said Deputy Prime Minister and adviser to Pasir Ris-Punggol GRC grassroots organisation Teo Chee Hean yesterday. He was speaking at the launch of a community roadshow in Tampines Central to cap HDB's 50th anniversary celebrations.
Tampines, Hougang and Pasir Ris are mature towns that were developed in the 1980s and early 1990s. Together with the newer towns of Sengkang and Punggol, they are home to 197,100 flats, about 22 per cent of the total number of HDB homes in Singapore.
Some $540 million has already been spent to improve amenities for more than 67,000 households in the three towns.
Of the extra $550 million, around $263 million will go towards estates in Tampines; $180 million to Hougang and $107 million to Pasir Ris.
Mr Teo, noting how the three housing estates have transformed over the years into modern and bustling towns, said commercial and other social facilities will also be upgraded to keep up with renewed residential areas.
For example, six sites in Tampines and Hougang have benefited from HDB's Revitalisation of Shops Scheme (ROS) to increase the vibrancy and competitiveness of shops in the heartland.
Under the scheme, HDB provides partial funding for shopkeepers to spruce up their shopfronts and carry out promotions to attract more customers. The scheme will be extended to seven more sites in the two estates.
Loyang Point shopping centre in Pasir Ris will also be revamped at the end of the year.
Long-time residents welcomed the improvements to their neighbourhoods and shopping areas.
Mr Lee Kam Mun, who has lived in Tampines Central since 1998, said residents have got a lot out of the upgrading programmes.
Said the 42-year-old terminal manager in the oil and gas industry: 'We have a nicer outlook in the estate. You come back and feel relaxed. There are also more common areas that encourage us to meet and make friends with neighbours.'
melk@sph.com.sg
ST : Like father, like son
Jul 24, 2010
Like father, like son
Architect Paul Tange's new office tower will adjoin his father's OUB Centre
By tay suan chiang
A Japanese architect whose famous father designed landmark buildings in Singapore is carrying on the family tradition here.
Paul Tange, 52, only son of the late renowned architect Kenzo Tange, is working on a $700-million project on the sites of the former Specialists' Centre/Hotel Phoenix and Orchard Emerald in Orchard Road. It involves office and retail space, and a hotel - and will include the strip's first glass pedestrian overhead bridge.
His dad, who died of heart failure in 2005 at the age of 91, was the architect behind OUB Centre, which was built in the mid-1980s, in Raffles Place. Other projects of his here include UOB Plaza and the Singapore Indoor Stadium.
His legacy continues, with Tange 'junior' working on several projects here, such as a soon-to-be-completed 38-storey office building right next to his dad's OUB Centre.
For the younger Tange, working on his latest Singapore project is a walk down memory lane in more ways than just following in the career footsteps of his father.
As a child, he recalls walking past the site of the then Specialists' Centre/Hotel Phoenix, as the family spent time in Singapore when his dad worked on OUB Centre.
'We stayed at the Meritus Mandarin hotel then, and my mother and I would walk past Specialists' Centre, towards the old Cathay building,' says Mr Tange.
He adds excitedly: 'Also, I've stayed many times at the Phoenix Hotel. Orchard Road is very close to my heart.'
Last week, developer United Engineers Limited unveiled his design for his project here. One half is a mixed development that will stand on the former Specialists' Centre/Hotel Phoenix site, which is owned by OCBC Bank. It is a 21-storey building comprising a four-star hotel with about 500 rooms and 20,800 sq m of retail space.
The other half is on the site of the former Orchard Emerald, diagonally across the road, and owned by Great Eastern Holdings, a subsidiary of OCBC Bank. It will be an 11-storey building with 3,500 sq m of office space and 2,700 sq m of retail space.
A glass pedestrian bridge will connect the two buildings, as will an underground passageway. On the street level, each building will have two open plazas for performances by artists and buskers. The project is expected to be completed in 2013.
Mr Tange is naturally very excited about the development, saying: 'For the first time, there will be a 'dialogue' on both sides of Orchard Road.'
On his choice of glass for the bridge, he says: 'I didn't want it as an obstruction which would be disturbing. Glass will make it look light and almost invisible.'
The hotel/retail building will also be connected to its neighbours, Orchard Central and 313@Somerset. 'This will help improve connectivity in Orchard Road. Connectivity will make the Orchard Road streetscape more exciting,' he says.
Mr Tange, who flies to Singapore almost every month, has other projects such as residential ones The Rochester in Buona Vista and The Linear in Upper Bukit Timah, and the redevelopment of The Cathay.
On the new OUB tower - its construction began in 2008 - that adjoins OUB Centre, he says: 'This project was challenging and scary. What kind of building could I build next to a Kenzo Tange one?'
He initially wanted a design that was similar to his father's but threw that idea out. 'My father taught me to look forward. It would be more meaningful to try something new.'
The two buildings will be known as One Raffles Place. The new building is as sculptural as the first tower but designed to give its users more views of the area.
Asked if he thinks his father would approve of the design, Mr Tange pauses before saying: 'Forty years later, when I'm in heaven, I will ask my father, and then e-mail you the answer.'
taysc@sph.com.sg
--------------------------------------------------------------------------------
'My father taught me to look forward. It would be more meaningful to try something new'
Paul Tange on not designing building similar to the OUB Centre, designed by his father, Kenzo Tange
Like father, like son
Architect Paul Tange's new office tower will adjoin his father's OUB Centre
By tay suan chiang
A Japanese architect whose famous father designed landmark buildings in Singapore is carrying on the family tradition here.
Paul Tange, 52, only son of the late renowned architect Kenzo Tange, is working on a $700-million project on the sites of the former Specialists' Centre/Hotel Phoenix and Orchard Emerald in Orchard Road. It involves office and retail space, and a hotel - and will include the strip's first glass pedestrian overhead bridge.
His dad, who died of heart failure in 2005 at the age of 91, was the architect behind OUB Centre, which was built in the mid-1980s, in Raffles Place. Other projects of his here include UOB Plaza and the Singapore Indoor Stadium.
His legacy continues, with Tange 'junior' working on several projects here, such as a soon-to-be-completed 38-storey office building right next to his dad's OUB Centre.
For the younger Tange, working on his latest Singapore project is a walk down memory lane in more ways than just following in the career footsteps of his father.
As a child, he recalls walking past the site of the then Specialists' Centre/Hotel Phoenix, as the family spent time in Singapore when his dad worked on OUB Centre.
'We stayed at the Meritus Mandarin hotel then, and my mother and I would walk past Specialists' Centre, towards the old Cathay building,' says Mr Tange.
He adds excitedly: 'Also, I've stayed many times at the Phoenix Hotel. Orchard Road is very close to my heart.'
Last week, developer United Engineers Limited unveiled his design for his project here. One half is a mixed development that will stand on the former Specialists' Centre/Hotel Phoenix site, which is owned by OCBC Bank. It is a 21-storey building comprising a four-star hotel with about 500 rooms and 20,800 sq m of retail space.
The other half is on the site of the former Orchard Emerald, diagonally across the road, and owned by Great Eastern Holdings, a subsidiary of OCBC Bank. It will be an 11-storey building with 3,500 sq m of office space and 2,700 sq m of retail space.
A glass pedestrian bridge will connect the two buildings, as will an underground passageway. On the street level, each building will have two open plazas for performances by artists and buskers. The project is expected to be completed in 2013.
Mr Tange is naturally very excited about the development, saying: 'For the first time, there will be a 'dialogue' on both sides of Orchard Road.'
On his choice of glass for the bridge, he says: 'I didn't want it as an obstruction which would be disturbing. Glass will make it look light and almost invisible.'
The hotel/retail building will also be connected to its neighbours, Orchard Central and 313@Somerset. 'This will help improve connectivity in Orchard Road. Connectivity will make the Orchard Road streetscape more exciting,' he says.
Mr Tange, who flies to Singapore almost every month, has other projects such as residential ones The Rochester in Buona Vista and The Linear in Upper Bukit Timah, and the redevelopment of The Cathay.
On the new OUB tower - its construction began in 2008 - that adjoins OUB Centre, he says: 'This project was challenging and scary. What kind of building could I build next to a Kenzo Tange one?'
He initially wanted a design that was similar to his father's but threw that idea out. 'My father taught me to look forward. It would be more meaningful to try something new.'
The two buildings will be known as One Raffles Place. The new building is as sculptural as the first tower but designed to give its users more views of the area.
Asked if he thinks his father would approve of the design, Mr Tange pauses before saying: 'Forty years later, when I'm in heaven, I will ask my father, and then e-mail you the answer.'
taysc@sph.com.sg
--------------------------------------------------------------------------------
'My father taught me to look forward. It would be more meaningful to try something new'
Paul Tange on not designing building similar to the OUB Centre, designed by his father, Kenzo Tange
ST : 92 properties to his name
Jul 25, 2010
me & my money
92 properties to his name
MD of real estate company relishes fire sales
By Lorna Tan
Managing director of real estate firm Austpac International David Yuen bought his first property in Brisbane, Australia, when he was just 23 in 1980.
Now, at 53 years old, he owns 92 properties in Asia, Australia and New Zealand. Together, they are worth a cool A$100 million (S$121 million) and their total monthly rental is A$300,000.
Mr Yuen is drawn to fire sales and those properties that require an initial low downpayment.
Besides properties, he is invested in shares, unit trusts and his firm Austpac. The latter was previously known as PRD Austpac.
Hong Kong-born Mr Yuen emigrated to Brisbane with his family when he was 12, after which he left for London to pursue his studies till he was 21. In 1978, he obtained a degree in mathematics and statistics from the former North London Polytechnic, now North London University. After his return to Australia, he set up a floor-covering business and owned a French restaurant, until 1986 when he joined a real estate firm Ray White Realty till 1989.
In 1989, he joined PRD Realty and, with initial capital of A$200,000, he set up a franchisee PRD Austwide - later known as PRD Austpac - in Hong Kong to market Australian real estate to Asia. Three years later, he opened an office in Singapore with a partner. In 2005, after PRD Realty was sold to Canada-listed Colliers, PRD Austpac changed its name to Austpac International. It handles 1,000 property transactions a year and its annual turnover is between A$350 million and A$400 million.
Mr Yuen is married to Hong Kong-born Heidi Ng, 41, and they have a son, James Lawrence, 10.
Q: Are you a spender or saver?
It depends on which stage of my life I'm at. When I was a university student holding vacation jobs, I was a saver, saving to pay for living expenses. Now, my income is much more than what my wife and I can spend every month. So we buy more properties.
Q: How much do you charge to your credit cards every month?
I charge about $20,000 to my Amex Centurion card every month and it's paid off duly. So far, I've accumulated 10 million reward points on that card. I withdraw $3,000 when I visit the ATM each week.
Q: What financial planning have you done for yourself?
My personal property portfolio comprises 92 properties, of which 26 are in Singapore, Hong Kong, Kuala Lumpur and Jakarta, worth over A$50 million, and another 66 in Australia and New Zealand, worth about A$40 million. They are mainly residential properties and some offices. About 30 of the 92 properties are under mortgage.
I have A$3 million invested in shares of some firms such as home-grown health-care firm Sourcelink Holding, HK-listed HSBC and Sun Hung Kai Properties. I also have another US$300,000 (S$412,000) in unit trusts. I am a shareholder of a few firms that hold properties and manage hotels.
Q: Moneywise, what were your growing-up years like?
I'm the oldest of three sons. My parents were accountants so they counted every cent. We lived in a 600 sq ft apartment in Kowloon next to Kai Tak Airport which my father bought for HK$5,000.
When I was eight, we moved to a 1,200 sq ft apartment in Kowloon Tong. Three years later, we emigrated to Brisbane where my parents started a Chinese restaurant.
When I was 13, I left for London to study. During my university days in North London, I held a few jobs including working at Kentucky Fried Chicken and in factories, and teaching wushu (martial arts), performing in wushu shows in England, Germany and South America.
Q: How did you get interested in investing?
I knew property prices would always go up, from observing my father who bought and sold properties in Hong Kong.
In 1967, he bought a shop in Tsim Sha Tsui for HK$50,000 and sold it in 1982 for HK$2 million. Today, it would be worth HK$100 million. He bought the Kowloon Tong apartment for HK$110,000 and sold it three years later for HK$360,000 when we emigrated.
I bought my first property in 1980 with A$30,000 when I got married, two years after I returned to Brisbane. It was a single-storey 2,300 sq ft house with a swimming pool, with a land size of 9,000 sq ft.
Back then, Australians received a home ownership grant of A$2,500 for their first home. Banks were allowed to finance 90 per cent of the purchase price, so my initial downpayment was just A$500. I gave the property to my ex-wife when we got divorced a year later.
Q: What property do you own in Singapore?
I bought four units of 780 sq ft each in Newton during the Sars epidemic in 2003. They cost about $650,000 to $680,000 each. I'm renting them out at $5,000 each. Together, they are worth about $5.6 million today.
I prefer small units of below 1,000 sq ft for rental as they offer more value than bigger units and are easier to rent out. The rent is usually the same whether it is a 1,000 sq ft two-bedroom unit or an 800 sq two-bedroom unit.
In 1997, I bought a 2,000 sq ft condo in Novena for $800,000. It is now worth $2.1 million.
Q: What's the most extravagant thing you have bought?
It was a $60,000 Cartier watch that I bought for my wife in 1998.
Q: What's your retirement plan?
At present, I work only eight months a year. From December, I take a four-month break in Hong Kong and Australia every year. That's when I participate in outdoor events like a 50km cross-country run, the Ironman and other triathlons.
I expect to semi-retire in my golden years. Ideally, I will work for only six months every year so I can stay in touch with the market.
Q: Home is now...
My condo at Novena.
Q: I drive...
Three cars. They are a blue Jaguar XJ, a black Jaguar XF and a silver Mini Cooper. My wife is chauffered in a seven-seater Nissan Elgrand.
lorna@sph.com.sg
--------------------------------------------------------------------------------
WORST AND BEST BETS
Q: What has been your worst investment to date?
I parked several millions with private bankers who invested them in financial instruments in 2002. I made money in the first six years but the portfolio of $10 million was wiped out during the 2008 financial crash. The financial instruments, such as structured products, had become more complicated, and it was a grey area between me not finding out enough and the bankers not telling me enough.
Q: And your best?
In 2007, I made a NZ$100,000 downpayment to buy 20 units of a development in Queenstown, New Zealand. The total sale price was NZ$4 million. I made NZ$1.6 million when I sold the 20 units for NZ$5.6 million after two years, before construction was completed. No progressive payments were required, so my investment was just NZ$100,000
me & my money
92 properties to his name
MD of real estate company relishes fire sales
By Lorna Tan
Managing director of real estate firm Austpac International David Yuen bought his first property in Brisbane, Australia, when he was just 23 in 1980.
Now, at 53 years old, he owns 92 properties in Asia, Australia and New Zealand. Together, they are worth a cool A$100 million (S$121 million) and their total monthly rental is A$300,000.
Mr Yuen is drawn to fire sales and those properties that require an initial low downpayment.
Besides properties, he is invested in shares, unit trusts and his firm Austpac. The latter was previously known as PRD Austpac.
Hong Kong-born Mr Yuen emigrated to Brisbane with his family when he was 12, after which he left for London to pursue his studies till he was 21. In 1978, he obtained a degree in mathematics and statistics from the former North London Polytechnic, now North London University. After his return to Australia, he set up a floor-covering business and owned a French restaurant, until 1986 when he joined a real estate firm Ray White Realty till 1989.
In 1989, he joined PRD Realty and, with initial capital of A$200,000, he set up a franchisee PRD Austwide - later known as PRD Austpac - in Hong Kong to market Australian real estate to Asia. Three years later, he opened an office in Singapore with a partner. In 2005, after PRD Realty was sold to Canada-listed Colliers, PRD Austpac changed its name to Austpac International. It handles 1,000 property transactions a year and its annual turnover is between A$350 million and A$400 million.
Mr Yuen is married to Hong Kong-born Heidi Ng, 41, and they have a son, James Lawrence, 10.
Q: Are you a spender or saver?
It depends on which stage of my life I'm at. When I was a university student holding vacation jobs, I was a saver, saving to pay for living expenses. Now, my income is much more than what my wife and I can spend every month. So we buy more properties.
Q: How much do you charge to your credit cards every month?
I charge about $20,000 to my Amex Centurion card every month and it's paid off duly. So far, I've accumulated 10 million reward points on that card. I withdraw $3,000 when I visit the ATM each week.
Q: What financial planning have you done for yourself?
My personal property portfolio comprises 92 properties, of which 26 are in Singapore, Hong Kong, Kuala Lumpur and Jakarta, worth over A$50 million, and another 66 in Australia and New Zealand, worth about A$40 million. They are mainly residential properties and some offices. About 30 of the 92 properties are under mortgage.
I have A$3 million invested in shares of some firms such as home-grown health-care firm Sourcelink Holding, HK-listed HSBC and Sun Hung Kai Properties. I also have another US$300,000 (S$412,000) in unit trusts. I am a shareholder of a few firms that hold properties and manage hotels.
Q: Moneywise, what were your growing-up years like?
I'm the oldest of three sons. My parents were accountants so they counted every cent. We lived in a 600 sq ft apartment in Kowloon next to Kai Tak Airport which my father bought for HK$5,000.
When I was eight, we moved to a 1,200 sq ft apartment in Kowloon Tong. Three years later, we emigrated to Brisbane where my parents started a Chinese restaurant.
When I was 13, I left for London to study. During my university days in North London, I held a few jobs including working at Kentucky Fried Chicken and in factories, and teaching wushu (martial arts), performing in wushu shows in England, Germany and South America.
Q: How did you get interested in investing?
I knew property prices would always go up, from observing my father who bought and sold properties in Hong Kong.
In 1967, he bought a shop in Tsim Sha Tsui for HK$50,000 and sold it in 1982 for HK$2 million. Today, it would be worth HK$100 million. He bought the Kowloon Tong apartment for HK$110,000 and sold it three years later for HK$360,000 when we emigrated.
I bought my first property in 1980 with A$30,000 when I got married, two years after I returned to Brisbane. It was a single-storey 2,300 sq ft house with a swimming pool, with a land size of 9,000 sq ft.
Back then, Australians received a home ownership grant of A$2,500 for their first home. Banks were allowed to finance 90 per cent of the purchase price, so my initial downpayment was just A$500. I gave the property to my ex-wife when we got divorced a year later.
Q: What property do you own in Singapore?
I bought four units of 780 sq ft each in Newton during the Sars epidemic in 2003. They cost about $650,000 to $680,000 each. I'm renting them out at $5,000 each. Together, they are worth about $5.6 million today.
I prefer small units of below 1,000 sq ft for rental as they offer more value than bigger units and are easier to rent out. The rent is usually the same whether it is a 1,000 sq ft two-bedroom unit or an 800 sq two-bedroom unit.
In 1997, I bought a 2,000 sq ft condo in Novena for $800,000. It is now worth $2.1 million.
Q: What's the most extravagant thing you have bought?
It was a $60,000 Cartier watch that I bought for my wife in 1998.
Q: What's your retirement plan?
At present, I work only eight months a year. From December, I take a four-month break in Hong Kong and Australia every year. That's when I participate in outdoor events like a 50km cross-country run, the Ironman and other triathlons.
I expect to semi-retire in my golden years. Ideally, I will work for only six months every year so I can stay in touch with the market.
Q: Home is now...
My condo at Novena.
Q: I drive...
Three cars. They are a blue Jaguar XJ, a black Jaguar XF and a silver Mini Cooper. My wife is chauffered in a seven-seater Nissan Elgrand.
lorna@sph.com.sg
--------------------------------------------------------------------------------
WORST AND BEST BETS
Q: What has been your worst investment to date?
I parked several millions with private bankers who invested them in financial instruments in 2002. I made money in the first six years but the portfolio of $10 million was wiped out during the 2008 financial crash. The financial instruments, such as structured products, had become more complicated, and it was a grey area between me not finding out enough and the bankers not telling me enough.
Q: And your best?
In 2007, I made a NZ$100,000 downpayment to buy 20 units of a development in Queenstown, New Zealand. The total sale price was NZ$4 million. I made NZ$1.6 million when I sold the 20 units for NZ$5.6 million after two years, before construction was completed. No progressive payments were required, so my investment was just NZ$100,000
ST : No more 'House of Lims' after $137m sale
Jul 25, 2010
No more 'House of Lims' after $137m sale
By Irene Tham
In the biggest collective sale this year, an apartment block of 27 units has raised eyebrows for garnering 100 per cent 'yes' votes.
But more than 20 units there were actually owned by an extended family, the Lims, for decades.
At one point, three generations were living under one roof.
Meng Garden Apartments in Lloyd Road, off Killiney Road, has been sold to boutique developer TG Development (TGD) for $137 million.
The deal was sealed last Friday after the developer put down a 10 per cent deposit.
The majority of the apartments in the eight-storey block belonged to the 10 children of patriach Lim Siew Meng.
The former deputy managing director of local trading firm Lim Teck Lee bought the 35,639 sq ft plot of land from the Alkaff family before he died in 1976.
The Lims were living in a two-storey house, the original residence of the Alkaffs, in Lloyd Road before building Meng Garden in 1985.
Mr Alwi Alkaff, 82, said his father, Mr Syed Mohamed Alkaff, sold the house to the Lims as 'the Alkaff family was getting bigger and every member wanted his own house'.
The Lims declined to be interviewed.
TGD managing director Ong Boon Chuan told The Sunday Times that an upmarket development similar to those it developed in Sentosa Cove will be built there.
The freehold site is zoned for residential use. It has a 2.8 plot ratio and a 10-storey height control.
At about $1,380 per sq ft (psf) per plot ratio, it is 'a good deal', said Mr Ong. 'The land is squarish and easy to design, and it is near Somerset MRT.'
This is not the first time residents have put the property up for collective sale. In 2007, they asked for $1,488 psf per plot ratio, but there were no takers.
CB Richard Ellis brokered this collective sale. The tender, put up last month, was reported to have attracted six bidders, said The Business Times.
Age has taken its toll on the property. Pieces of discarded furniture were seen lining one end of the lift lobby.
The security guard house, near the lift lobby, looked dusty and reeked of stale cigarette smoke.
Property consultancy Cushman & Wakefield's managing director Donald Han said that an old development is like an old person whose health-care costs go up with age.
'In some cases, it is not worth repairing the water-proofing of floors or lifts,' said Mr Han.
In addition, a collective sale today can give home owners a 30 to 50 per cent premium over the selling price in the second-hand market, he said.
Meng Garden Apartments in Lloyd Road has been sold in the biggest collective sale this year. Over 20 units were owned by members of an extended family. -- ST PHOTO: NEO XIAOBIN
No more 'House of Lims' after $137m sale
By Irene Tham
In the biggest collective sale this year, an apartment block of 27 units has raised eyebrows for garnering 100 per cent 'yes' votes.
But more than 20 units there were actually owned by an extended family, the Lims, for decades.
At one point, three generations were living under one roof.
Meng Garden Apartments in Lloyd Road, off Killiney Road, has been sold to boutique developer TG Development (TGD) for $137 million.
The deal was sealed last Friday after the developer put down a 10 per cent deposit.
The majority of the apartments in the eight-storey block belonged to the 10 children of patriach Lim Siew Meng.
The former deputy managing director of local trading firm Lim Teck Lee bought the 35,639 sq ft plot of land from the Alkaff family before he died in 1976.
The Lims were living in a two-storey house, the original residence of the Alkaffs, in Lloyd Road before building Meng Garden in 1985.
Mr Alwi Alkaff, 82, said his father, Mr Syed Mohamed Alkaff, sold the house to the Lims as 'the Alkaff family was getting bigger and every member wanted his own house'.
The Lims declined to be interviewed.
TGD managing director Ong Boon Chuan told The Sunday Times that an upmarket development similar to those it developed in Sentosa Cove will be built there.
The freehold site is zoned for residential use. It has a 2.8 plot ratio and a 10-storey height control.
At about $1,380 per sq ft (psf) per plot ratio, it is 'a good deal', said Mr Ong. 'The land is squarish and easy to design, and it is near Somerset MRT.'
This is not the first time residents have put the property up for collective sale. In 2007, they asked for $1,488 psf per plot ratio, but there were no takers.
CB Richard Ellis brokered this collective sale. The tender, put up last month, was reported to have attracted six bidders, said The Business Times.
Age has taken its toll on the property. Pieces of discarded furniture were seen lining one end of the lift lobby.
The security guard house, near the lift lobby, looked dusty and reeked of stale cigarette smoke.
Property consultancy Cushman & Wakefield's managing director Donald Han said that an old development is like an old person whose health-care costs go up with age.
'In some cases, it is not worth repairing the water-proofing of floors or lifts,' said Mr Han.
In addition, a collective sale today can give home owners a 30 to 50 per cent premium over the selling price in the second-hand market, he said.
Meng Garden Apartments in Lloyd Road has been sold in the biggest collective sale this year. Over 20 units were owned by members of an extended family. -- ST PHOTO: NEO XIAOBIN
ST : Private home sales slower, but prices up
Jul 24, 2010
Private home sales slower, but prices up
Prices hit new high, could rise further with economic recovery
By Joyce Teo
SALES of private homes slowed towards the end of the second quarter but prices still kept heading north into record territory.
Prices rose 5.3 per cent in the second quarter - above the preliminary estimate of 5.2 per cent and not far from the first quarter rise of 5.6 per cent.
According to Urban Redevelopment Authority (URA) data released yesterday, prices are up 11.6 per cent since January and are expected to continue climbing although the pace may ease, said analysts.
Prices are now at record levels, eclipsing the 1996 peak, after shrugging off a dip in sales that began in May when Europe's debt crisis rocked global stock markets, observers said.
Rents were also rocketing - up 5.9 per cent in the second quarter to take the half-year rise to 10.9 per cent. Rents fell by 14.6 per cent last year.
'The continuing recovery in the economy facilitated the increased hiring of expatriate staff, which in turn, drove the rental market,' said Mr Li Hiaw Ho, CBRE Research's executive director.
Cushman and Wakefield managing director Donald Han added: 'In the second half of last year, prices went up more than 20 per cent but rents fell. So, there was some fear of a bubble forming.
'But prices are now moving in line with rent rises. As long as rents go up, the price rise should be supported.'
Non-landed home prices rose the most in suburban areas, up 5.7 per cent, from a 4.3 per cent increase in the first quarter.
City-fringe home prices were up 4.6 per cent while city-centre ones rose 5.4 per cent.
Prices of landed homes also continued to surge, climbing 6.2 per cent in the second quarter after jumping 8.3 per cent in the first quarter.
Luxury homes are the only sector yet to reach record heights, experts noted.
Yesterday's URA data also showed that 4,033 new homes were sold in the second quarter, down about 8 per cent from the first.
As at the second quarter, there were 61,831 private residential units in the pipeline. Of these, 32,630 units were still unsold. The URA said: 'This number is equivalent to about three years of supply based on the average take-up of about 11,300 units per year over the last three years.'
While some buyers hesitate, others have been snapping up property.
Copywriter Daryl Lee, 34, said: 'The last thing I want is to lock my cash up in a mortgage when all people are doing is chasing higher prices to pay higher asking prices.'
Another potential buyer Alex Wee, 37, said: 'On the one hand, things are pricey. But on the other hand, we're afraid that if we don't buy, we will miss the boat.'
Accounts executive Kris Lau, 33, who bought a small investment unit at a newly released project, 368 Thomson, after selling her HDB flat, said: 'It's a good time to cash out and upgrade.'
Jones Lang LaSalle's head of residential project sales, Mr David Neubronner, told The Straits Times: 'Prices... should take a breather. But given the current backdrop where our economic recovery is generating wealth, they are likely to continue to rise this year.
'Quite a lot of people are parking their money in property for the long term. In the worst-case scenario, I think prices may stay flat.'
Ngee Ann Polytechnic real estate lecturer Nicholas Mak believes private home prices will continue to rise this year and possibly into next year but at less than 5 per cent a quarter as sales slow.
The level of speculation now is within manageable levels, he felt.
URA data shows that sub-sales fell to 723 units in the second quarter, from 996 in the first.
Mr Li said the surprisingly strong economic growth in the second quarter will help keep market sentiment positive.
'However, as the Government is also anticipating a slowdown in the growth momentum for the rest of the year, the residential market is likely to move at a more moderate pace,' he said.
Sales of new homes may still reach 14,000 units this year - below last year's 14,688 units while home prices may rise by 12 to 15 per cent, he said.
Mr Mak is looking at a price rise of 16 to 21 per cent this year.
Meanwhile, office rents rose 1.1 per cent in the second quarter compared with 0.4 per cent in the first quarter.
Rents for shops and industrial properties rose by 0.5 per cent and 1.3 per cent respectively in the second quarter.
joyceteo@sph.com.sg
Private home sales slower, but prices up
Prices hit new high, could rise further with economic recovery
By Joyce Teo
SALES of private homes slowed towards the end of the second quarter but prices still kept heading north into record territory.
Prices rose 5.3 per cent in the second quarter - above the preliminary estimate of 5.2 per cent and not far from the first quarter rise of 5.6 per cent.
According to Urban Redevelopment Authority (URA) data released yesterday, prices are up 11.6 per cent since January and are expected to continue climbing although the pace may ease, said analysts.
Prices are now at record levels, eclipsing the 1996 peak, after shrugging off a dip in sales that began in May when Europe's debt crisis rocked global stock markets, observers said.
Rents were also rocketing - up 5.9 per cent in the second quarter to take the half-year rise to 10.9 per cent. Rents fell by 14.6 per cent last year.
'The continuing recovery in the economy facilitated the increased hiring of expatriate staff, which in turn, drove the rental market,' said Mr Li Hiaw Ho, CBRE Research's executive director.
Cushman and Wakefield managing director Donald Han added: 'In the second half of last year, prices went up more than 20 per cent but rents fell. So, there was some fear of a bubble forming.
'But prices are now moving in line with rent rises. As long as rents go up, the price rise should be supported.'
Non-landed home prices rose the most in suburban areas, up 5.7 per cent, from a 4.3 per cent increase in the first quarter.
City-fringe home prices were up 4.6 per cent while city-centre ones rose 5.4 per cent.
Prices of landed homes also continued to surge, climbing 6.2 per cent in the second quarter after jumping 8.3 per cent in the first quarter.
Luxury homes are the only sector yet to reach record heights, experts noted.
Yesterday's URA data also showed that 4,033 new homes were sold in the second quarter, down about 8 per cent from the first.
As at the second quarter, there were 61,831 private residential units in the pipeline. Of these, 32,630 units were still unsold. The URA said: 'This number is equivalent to about three years of supply based on the average take-up of about 11,300 units per year over the last three years.'
While some buyers hesitate, others have been snapping up property.
Copywriter Daryl Lee, 34, said: 'The last thing I want is to lock my cash up in a mortgage when all people are doing is chasing higher prices to pay higher asking prices.'
Another potential buyer Alex Wee, 37, said: 'On the one hand, things are pricey. But on the other hand, we're afraid that if we don't buy, we will miss the boat.'
Accounts executive Kris Lau, 33, who bought a small investment unit at a newly released project, 368 Thomson, after selling her HDB flat, said: 'It's a good time to cash out and upgrade.'
Jones Lang LaSalle's head of residential project sales, Mr David Neubronner, told The Straits Times: 'Prices... should take a breather. But given the current backdrop where our economic recovery is generating wealth, they are likely to continue to rise this year.
'Quite a lot of people are parking their money in property for the long term. In the worst-case scenario, I think prices may stay flat.'
Ngee Ann Polytechnic real estate lecturer Nicholas Mak believes private home prices will continue to rise this year and possibly into next year but at less than 5 per cent a quarter as sales slow.
The level of speculation now is within manageable levels, he felt.
URA data shows that sub-sales fell to 723 units in the second quarter, from 996 in the first.
Mr Li said the surprisingly strong economic growth in the second quarter will help keep market sentiment positive.
'However, as the Government is also anticipating a slowdown in the growth momentum for the rest of the year, the residential market is likely to move at a more moderate pace,' he said.
Sales of new homes may still reach 14,000 units this year - below last year's 14,688 units while home prices may rise by 12 to 15 per cent, he said.
Mr Mak is looking at a price rise of 16 to 21 per cent this year.
Meanwhile, office rents rose 1.1 per cent in the second quarter compared with 0.4 per cent in the first quarter.
Rents for shops and industrial properties rose by 0.5 per cent and 1.3 per cent respectively in the second quarter.
joyceteo@sph.com.sg
TODAY ONLINE : Resale prices still rising
Resale prices still rising
Median COV now $30,000 but observers say a threshold is near
05:55 AM Jul 24, 2010
by Joanne Chan
SINGAPORE - HDB resale flat prices have hit record highs again. Prices rose by 4.1 per cent in the second quarter of this year, compared with the previous quarter, making it the fifth straight quarter of increase.
Analysts say the demand is driven by those who don't qualify for a new flat or want a flat quickly.
High prices in the private property market have also made resale flats an appealing choice, said Dennis Wee Group director Chris Koh.
The high demand also sent the cash-over-valuation (COV) upwards, with 96 per cent of transactions in Q2 closing above valuation.
According to the latest data from HDB, the median COV is now about $30,000 for all resale transactions.
Mr Koh said: "A lot of people who are selling their HDB flats today are cashing out, with $100,000 to $200,000 (in hand).
"So, if you ask them to put down a COV of $50,000, for example, for the next flat they buy, they wouldn't mind."
But market-watchers say the market could be reaching a threshold soon. That's because of a ruling introduced in March, requiring home buyers who want a second HDB loan to plough back half their cash profits from the sale of the first flat.
PropNex CEO Mohamed Ismail said: "Even if (you make) a $100,000 profit, you have to plough back $50,000 into the new flat, and you're left with $50,000 ... If you pay a high COV of $40,000, you are left with nothing."
He added that the market is showing signs of resistance, and expects the COV to hit a threshold of $40,000.
Real Estate Lecturer at Ngee Ann Polytechnic Nicholas Mak agrees the market may be reaching its limit.
He added that the median COV of $30,000 amounts to the annual income of the average Singaporean.
Market watchers noted that many buyers and sellers now treat the COV as part and parcel of any resale transaction.
And this is not healthy for the market in the long term, as a transaction done with COV becomes "a comparable for future valuations that inevitably have to go higher and higher", says Associate Director of ERA Asia Pacific, Eugene Lim.
PropNex's Mr Ismail also noted that home buyers who pay huge amounts of cash upfront may not always be able to recoup their investment, even with home prices expected to continue rising.
The Housing and Development Board says it'll ensure that there's an adequate supply of new flats for first-time buyers.
In the first six months of 2010, HDB launched close to 9,000 Build-To-Order (BTO) flats. With another 7,200 BTO flats to be launched in the second half, this will bring the total BTO flat supply for 2010 to 16,000.
This is an increase of 80 percent over the previous year.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Median COV now $30,000 but observers say a threshold is near
05:55 AM Jul 24, 2010
by Joanne Chan
SINGAPORE - HDB resale flat prices have hit record highs again. Prices rose by 4.1 per cent in the second quarter of this year, compared with the previous quarter, making it the fifth straight quarter of increase.
Analysts say the demand is driven by those who don't qualify for a new flat or want a flat quickly.
High prices in the private property market have also made resale flats an appealing choice, said Dennis Wee Group director Chris Koh.
The high demand also sent the cash-over-valuation (COV) upwards, with 96 per cent of transactions in Q2 closing above valuation.
According to the latest data from HDB, the median COV is now about $30,000 for all resale transactions.
Mr Koh said: "A lot of people who are selling their HDB flats today are cashing out, with $100,000 to $200,000 (in hand).
"So, if you ask them to put down a COV of $50,000, for example, for the next flat they buy, they wouldn't mind."
But market-watchers say the market could be reaching a threshold soon. That's because of a ruling introduced in March, requiring home buyers who want a second HDB loan to plough back half their cash profits from the sale of the first flat.
PropNex CEO Mohamed Ismail said: "Even if (you make) a $100,000 profit, you have to plough back $50,000 into the new flat, and you're left with $50,000 ... If you pay a high COV of $40,000, you are left with nothing."
He added that the market is showing signs of resistance, and expects the COV to hit a threshold of $40,000.
Real Estate Lecturer at Ngee Ann Polytechnic Nicholas Mak agrees the market may be reaching its limit.
He added that the median COV of $30,000 amounts to the annual income of the average Singaporean.
Market watchers noted that many buyers and sellers now treat the COV as part and parcel of any resale transaction.
And this is not healthy for the market in the long term, as a transaction done with COV becomes "a comparable for future valuations that inevitably have to go higher and higher", says Associate Director of ERA Asia Pacific, Eugene Lim.
PropNex's Mr Ismail also noted that home buyers who pay huge amounts of cash upfront may not always be able to recoup their investment, even with home prices expected to continue rising.
The Housing and Development Board says it'll ensure that there's an adequate supply of new flats for first-time buyers.
In the first six months of 2010, HDB launched close to 9,000 Build-To-Order (BTO) flats. With another 7,200 BTO flats to be launched in the second half, this will bring the total BTO flat supply for 2010 to 16,000.
This is an increase of 80 percent over the previous year.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
BT : Broad-based growth in Q2 property prices
Business Times - 24 Jul 2010
Broad-based growth in Q2 property prices
Momentum of recovery in private residential rents also picked up
By KALPANA RASHIWALA
PRIVATE home prices generally rose at a slightly slower pace in Q2 than they did in Q1, but latest official numbers show a broad-based growth in property prices - with stronger quarter-on-quarter gains for office, shop and industrial properties, as well as HDB resale flat prices in Q2 than in the first quarter.
The momentum of recovery in private residential rents also picked up in the second quarter, supported by an acceleration in hiring of expats as Singapore's economy continues to expand.
'Sentiment among developers and market watchers probably moderated from the end of first quarter as a result of the eurozone's economic problems, but the recent spectacular official GDP growth forecast for Singapore has probably helped to restore some confidence,' said Real Estate Developers Association of Singapore CEO Steven Choo.
The Urban Redevelopment Authority's (URA) benchmark overall price index for private homes rose 5.3 per cent in the second quarter over the preceding quarter, close to the 5.6 per cent per cent hike in Q1.
The price index for office space increased 4.6 per cent quarter on quarter in Q2, a bigger gain than the 1.8 per cent quarter-on-quarter rise in Q1.
Likewise, the shop price index went up 3.9 per cent in Q2, following a 1.8 per cent pick-up in the first three months. URA's flatted factory and warehouse price indices rose 5.4 and 9.4 per cent in Q2. In Q1, each of these increased 1.5 per cent.
In the private housing market, prices of detached houses rose 6.8 per cent in Q2, slower than the 9.6 per cent increase in Q1. Semi-D and terrace houses appreciated 6 per cent and 5.6 per cent respectively in Q2 - compared with increases of 7.5 and 7.4 per cent in the first three months.
Non-landed home prices in Core Central Region (which includes the prime districts, Marina Bay and Sentosa Cove) climbed 5.4 per cent in Q2, higher than the 4.4 per cent growth in Q1. Likewise, the price index for Outside Central Region (where suburban condos are located) rose 5.7 per cent in Q2 after increasing 4.3 per cent in Q1.
However, in Rest of Central Region the pace of price gain slowed from 7.9 per cent in the first quarter to 4.6 per cent in Q2.
In the primary market, developers sold a total of 4,033 private homes in Q2, down 7.9 per cent from Q1. In the secondary market, strong buying momentum was also seen in the resale market, with 4,682 private homes changing hands in Q2, although this was 5.6 per cent lower than the first three months of the year. However, subsale volumes eased 27.4 per cent, from 996 deals in Q1 to 723 in Q2.
'Resales were strong in Q2 because prices are more reasonable for older, completed properties than new project launches. On the other hand, subsales (which are secondary-market deals involving projects that have yet to receive Certificate of Statutory Completion) come in waves. Those who bought homes from developers in the past few months are probably waiting for prices to rise further before they offload their units,' suggests a market watcher.
In the leasing market, URA's All Residential rental index rose 5.9 per cent in Q2 over the preceding quarter, compared with a 4.7 per cent quarter-on-quarter gain in Q1. The index has appreciated 10.9 per cent since end-2009.
Rents accelerated for both landed and non-landed private homes. Terrace houses led the landed segment, with rents rising 6.6 per cent in Q2, followed by semi-detached houses (up 5.6 per cent) and detached (up 4.6 per cent). For non-landed homes, rents in Core Central Region appreciated the most, by 6.4 per cent, followed by Outside Central Region (up 6.1 per cent) and Rest of Central Region (5.1 per cent).
However, the latest All Residential rental index is about 11.1 per cent below its peak in Q2 2008.
Jones Lang LaSalles' head of residential Jacqueline Wong said the latest official figures confirm feedback from the ground. Monthly rentals of four-bedroom apartments in high-end developments such as Grange Residences, Draycott 8 and Ardmore Park are hitting $16,000-$18,000 on average - an improvement from $14,000-$15,000 in the second half of last year.
'But we still haven't achieved the peak levels of $18,000-$22,000 seen in the late 2007 to mid-2008 period,' Ms Wong added. 'We're seeing rehiring of expats again but housing allowances are not as generous as before.'
Ms Wong is predicting flattish rents until the end of this year, citing new competition with the impending completion of The Orchard Residences and The Marq on Paterson Hill.
URA numbers show 4,379 private homes received Temporary Occupation Permit (TOP) in Q2, compared with 1,407 units in Q1. The surge in new completions pushed up the islandwide vacancy rate for private homes to 5.4 per cent at end-Q2, from 4.6 per cent at end-Q1. But this could ease again as owners or tenants move into the new homes.
Major residential projects completed in April-June 2010 include One Amber, Marina Bay Residences, Dakota Residences and The Arte.
With a further 4,958 units expected to receive TOP by year end, the full-year tally will be 10,744, slightly above last year's 10,488 units.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Broad-based growth in Q2 property prices
Momentum of recovery in private residential rents also picked up
By KALPANA RASHIWALA
PRIVATE home prices generally rose at a slightly slower pace in Q2 than they did in Q1, but latest official numbers show a broad-based growth in property prices - with stronger quarter-on-quarter gains for office, shop and industrial properties, as well as HDB resale flat prices in Q2 than in the first quarter.
The momentum of recovery in private residential rents also picked up in the second quarter, supported by an acceleration in hiring of expats as Singapore's economy continues to expand.
'Sentiment among developers and market watchers probably moderated from the end of first quarter as a result of the eurozone's economic problems, but the recent spectacular official GDP growth forecast for Singapore has probably helped to restore some confidence,' said Real Estate Developers Association of Singapore CEO Steven Choo.
The Urban Redevelopment Authority's (URA) benchmark overall price index for private homes rose 5.3 per cent in the second quarter over the preceding quarter, close to the 5.6 per cent per cent hike in Q1.
The price index for office space increased 4.6 per cent quarter on quarter in Q2, a bigger gain than the 1.8 per cent quarter-on-quarter rise in Q1.
Likewise, the shop price index went up 3.9 per cent in Q2, following a 1.8 per cent pick-up in the first three months. URA's flatted factory and warehouse price indices rose 5.4 and 9.4 per cent in Q2. In Q1, each of these increased 1.5 per cent.
In the private housing market, prices of detached houses rose 6.8 per cent in Q2, slower than the 9.6 per cent increase in Q1. Semi-D and terrace houses appreciated 6 per cent and 5.6 per cent respectively in Q2 - compared with increases of 7.5 and 7.4 per cent in the first three months.
Non-landed home prices in Core Central Region (which includes the prime districts, Marina Bay and Sentosa Cove) climbed 5.4 per cent in Q2, higher than the 4.4 per cent growth in Q1. Likewise, the price index for Outside Central Region (where suburban condos are located) rose 5.7 per cent in Q2 after increasing 4.3 per cent in Q1.
However, in Rest of Central Region the pace of price gain slowed from 7.9 per cent in the first quarter to 4.6 per cent in Q2.
In the primary market, developers sold a total of 4,033 private homes in Q2, down 7.9 per cent from Q1. In the secondary market, strong buying momentum was also seen in the resale market, with 4,682 private homes changing hands in Q2, although this was 5.6 per cent lower than the first three months of the year. However, subsale volumes eased 27.4 per cent, from 996 deals in Q1 to 723 in Q2.
'Resales were strong in Q2 because prices are more reasonable for older, completed properties than new project launches. On the other hand, subsales (which are secondary-market deals involving projects that have yet to receive Certificate of Statutory Completion) come in waves. Those who bought homes from developers in the past few months are probably waiting for prices to rise further before they offload their units,' suggests a market watcher.
In the leasing market, URA's All Residential rental index rose 5.9 per cent in Q2 over the preceding quarter, compared with a 4.7 per cent quarter-on-quarter gain in Q1. The index has appreciated 10.9 per cent since end-2009.
Rents accelerated for both landed and non-landed private homes. Terrace houses led the landed segment, with rents rising 6.6 per cent in Q2, followed by semi-detached houses (up 5.6 per cent) and detached (up 4.6 per cent). For non-landed homes, rents in Core Central Region appreciated the most, by 6.4 per cent, followed by Outside Central Region (up 6.1 per cent) and Rest of Central Region (5.1 per cent).
However, the latest All Residential rental index is about 11.1 per cent below its peak in Q2 2008.
Jones Lang LaSalles' head of residential Jacqueline Wong said the latest official figures confirm feedback from the ground. Monthly rentals of four-bedroom apartments in high-end developments such as Grange Residences, Draycott 8 and Ardmore Park are hitting $16,000-$18,000 on average - an improvement from $14,000-$15,000 in the second half of last year.
'But we still haven't achieved the peak levels of $18,000-$22,000 seen in the late 2007 to mid-2008 period,' Ms Wong added. 'We're seeing rehiring of expats again but housing allowances are not as generous as before.'
Ms Wong is predicting flattish rents until the end of this year, citing new competition with the impending completion of The Orchard Residences and The Marq on Paterson Hill.
URA numbers show 4,379 private homes received Temporary Occupation Permit (TOP) in Q2, compared with 1,407 units in Q1. The surge in new completions pushed up the islandwide vacancy rate for private homes to 5.4 per cent at end-Q2, from 4.6 per cent at end-Q1. But this could ease again as owners or tenants move into the new homes.
Major residential projects completed in April-June 2010 include One Amber, Marina Bay Residences, Dakota Residences and The Arte.
With a further 4,958 units expected to receive TOP by year end, the full-year tally will be 10,744, slightly above last year's 10,488 units.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : HDB cash premiums still on the rise
Business Times - 24 Jul 2010
HDB cash premiums still on the rise
Median cash over valuation across all resale transactions in Q2 is $30,000, up 20% from $25,000 in Q1
By EMILYN YAP
FRESH data from the Housing & Development Board (HDB) yesterday painted a picture of bullishness in the resale flat market. Cash premiums continued to rise in the second quarter, with some in popular estates breaching $70,000.
Higher cash premiums helped push overall prices up to another record high. The HDB resale price index climbed 4.1 per cent in Q2 from Q1, exceeding earlier estimates of a 3.8 per cent increase.
Resale flat prices had been tamer in Q1, rising by a smaller 2.8 per cent quarter on quarter.
Resale activity also grew in Q2, with the number of transactions rising 7 per cent from the previous quarter to 9,114.
It would have been a good time for some owners to sell their flats for cash in Q2. The median cash over valuation (COV) across all resale transactions was $30,000, up 20 per cent from $25,000 in Q1.
COVs were particularly high in some towns. In the central area, five-room flats achieved a median cash premium of $89,000 - the largest across all flat types and towns. Bukit Timah followed with five-room flats changing hands at a median COV of $80,000.
It is worth noting, however, that there were less than 20 resale transactions for these towns and flat types. As a result, the figures 'may not be representative', HDB said.
In Bishan, the median COV for executive flats and five-roomers was $70,500 and $52,500 respectively.
There have been 'exceptional cases' of buyers paying COVs of $80,000 to $100,000 for resale flats, said ERA Asia-Pacific associate director Eugene Lim.
And he is concerned - COVs drive up flat valuations, and future sellers are likely to ask for COVs on top of these increased valuations. 'This results in a somewhat unnatural escalation of resale prices over time,' he said.
PropNex CEO Mohamed Ismail also observes that it has become market practice for sellers to demand high COVs. 'They know that they are expected to pay a high COV when they purchase their next HDB flat. Either that or they are looking for more cash to put down the deposit on their new private property purchase,' he said.
In Q2, 96 per cent of resale transactions involved flats changing hands above valuation. This is slightly higher than Q1's 93 per cent.
But HSR executive director (agency) Jeffrey Hong is not too overwhelmed by the COV increases, pointing out that cash premiums have been higher in the years of 1996 and 1999. According to HDB, the highest median COV in its books was $42,000 in Q3 1996.
Market views are divided as to whether the median COV will rise further in Q3. ERA's Mr Lim believes that it might stabilise at around $30,000 while HSR's Hong expects it to reach $33,000 to $35,000.
There is more of a consensus when it comes to resale flat prices - both foresee prices rising by up to 3 per cent in Q3. PropNex's Mr Ismail believes that prices could gain some 12 per cent this year.
'We may begin to see resistance as buyers come to realise that they are actually buying pre-owned flats at peak prices,' Mr Lim said. 'Also, HDB's continued release of new Build-To-Order (BTO) flats for first-timers, and Design, Build and Sell Scheme (DBSS) flats and executive condominiums (ECs) for higher income earners may take some of the pressure off the resale market.'
HDB will be releasing 16,000 BTO flats this year, up 80 per cent from the previous year. There will also be a potential 4,700 DBSS and EC units coming up.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TOWERING VIEW
COVs were particularly high in some towns. In the central area, five-room flats achieved a median cash premium of $89,000 - the largest across all flat types
HDB cash premiums still on the rise
Median cash over valuation across all resale transactions in Q2 is $30,000, up 20% from $25,000 in Q1
By EMILYN YAP
FRESH data from the Housing & Development Board (HDB) yesterday painted a picture of bullishness in the resale flat market. Cash premiums continued to rise in the second quarter, with some in popular estates breaching $70,000.
Higher cash premiums helped push overall prices up to another record high. The HDB resale price index climbed 4.1 per cent in Q2 from Q1, exceeding earlier estimates of a 3.8 per cent increase.
Resale flat prices had been tamer in Q1, rising by a smaller 2.8 per cent quarter on quarter.
Resale activity also grew in Q2, with the number of transactions rising 7 per cent from the previous quarter to 9,114.
It would have been a good time for some owners to sell their flats for cash in Q2. The median cash over valuation (COV) across all resale transactions was $30,000, up 20 per cent from $25,000 in Q1.
COVs were particularly high in some towns. In the central area, five-room flats achieved a median cash premium of $89,000 - the largest across all flat types and towns. Bukit Timah followed with five-room flats changing hands at a median COV of $80,000.
It is worth noting, however, that there were less than 20 resale transactions for these towns and flat types. As a result, the figures 'may not be representative', HDB said.
In Bishan, the median COV for executive flats and five-roomers was $70,500 and $52,500 respectively.
There have been 'exceptional cases' of buyers paying COVs of $80,000 to $100,000 for resale flats, said ERA Asia-Pacific associate director Eugene Lim.
And he is concerned - COVs drive up flat valuations, and future sellers are likely to ask for COVs on top of these increased valuations. 'This results in a somewhat unnatural escalation of resale prices over time,' he said.
PropNex CEO Mohamed Ismail also observes that it has become market practice for sellers to demand high COVs. 'They know that they are expected to pay a high COV when they purchase their next HDB flat. Either that or they are looking for more cash to put down the deposit on their new private property purchase,' he said.
In Q2, 96 per cent of resale transactions involved flats changing hands above valuation. This is slightly higher than Q1's 93 per cent.
But HSR executive director (agency) Jeffrey Hong is not too overwhelmed by the COV increases, pointing out that cash premiums have been higher in the years of 1996 and 1999. According to HDB, the highest median COV in its books was $42,000 in Q3 1996.
Market views are divided as to whether the median COV will rise further in Q3. ERA's Mr Lim believes that it might stabilise at around $30,000 while HSR's Hong expects it to reach $33,000 to $35,000.
There is more of a consensus when it comes to resale flat prices - both foresee prices rising by up to 3 per cent in Q3. PropNex's Mr Ismail believes that prices could gain some 12 per cent this year.
'We may begin to see resistance as buyers come to realise that they are actually buying pre-owned flats at peak prices,' Mr Lim said. 'Also, HDB's continued release of new Build-To-Order (BTO) flats for first-timers, and Design, Build and Sell Scheme (DBSS) flats and executive condominiums (ECs) for higher income earners may take some of the pressure off the resale market.'
HDB will be releasing 16,000 BTO flats this year, up 80 per cent from the previous year. There will also be a potential 4,700 DBSS and EC units coming up.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TOWERING VIEW
COVs were particularly high in some towns. In the central area, five-room flats achieved a median cash premium of $89,000 - the largest across all flat types
ASIAONE : 5 tips for investing in shops and shophouses
Business @ AsiaOne
5 tips for investing in shops and shophouses
The total value of commercial units transacted was $976.9 million, 12% higher than in 2H 2009.
Fri, Jul 23, 2010
Knight Frank
By Mary Sai, Executive Director
Auctions (Commercial), Knight Frank
The number of commercial units, typically shophouses and strata units for office and shops, sold in 1H 2010 remained similar to that in 2H 2009. A total of 495 commercial units were transacted in 1H 2010, reflecting a 4 per cent decrease compared to that in 2H 2009.
Although economic conditions have tremendously improved in 1H 2010, the number of commercial properties transacted was subdued, underpinned by limited supply and a stalemate in sellers' asking prices and owners' offer prices.
The limited supply meant limited choices for potential buyers while for sellers, the limited supply of strata commercial properties meant that there would be no urgency to sell their properties in case prices appreciate with further economic recovery.
Nevertheless, the total value of commercial units transacted was $976.9 million, 12 per cent higher than that in
2H 2009. The encouraging value of commercial units transacted in 1H 2010 could be the result of a shift from an interest for units in the lower price-band, to units in the mid price-band.
In 2009, due to the adverse economic conditions, investors and buyers were cautious and preferred to purchase commercial units which were affordably priced in the lowest price band.
Most transaction activities of strata shops and shophouses still remain in the Central Region (planning areas like Outram, Rochor, Kallang, Geylang). Meanwhile, strata office investors are shifting their interest to fringe areas like Beach Road, Middle Road and East Coast vicinity.
Buying Shops & Shophouses - What should you look out for?
Financing
As with most property transactions, getting funding is pivotal to the buying decision. Since July 2006, CPF savings cannot be used to finance commercial purchase. As such, getting a bank loan is critical.
With most banks granting loans of 70 to 80 per cent of the purchase price or valuation (whichever is lower), prospective buyers must have cash upfront for the remaining 20 to 30 per cent.
Currently, many banks are offering commercial loan packages at promotional rate of about 2.3 per cent which is a booster for many investors who are considering buying commercial properties for investment or owner occupation.
Location
Location is one key consideration in the buying decision for any property, more so for shops and shophouses. As shops/shophouses are for retailing purposes, they should be in conspicuous locations and sited where human traffic is high.
In a shopping mall, one has to pay a premium for shops in the main shoppers' concourse and facing the escalator where most shoppers will pass by when shopping. In the case of shophouse, its visibility from the main road and easy access to carparks are essential factors for consideration.
Good locations of shops/shophouses generate better rentability and therefore higher rental yields if they are held as investment properties.
Tenure
Statistics in 2H2009 & 1H2010 have shown that most buyers for shophouses preferred freehold properties while about half of the strata shop transactions in the same period were 99-year leasehold strata shops.
Differences in values between the two tenures can be in the region of 15 per cent to 20 per cent depending on the balance years of lease and other factors.
In recent years, many buyers of commercial properties have embraced 99-year leasehold properties in their investment portfolios as they are more affordable and have higher rental yields because of their lower capital values.
Zoning
This is essential to note when buying shophouses. Shophouses are usually erected on land zoned "Commercial" or "Residential with Commercial on Groundfloor Only".
Shophouses sited on land zoned residential are essentially terrace buildings with "tolerated" commercial uses and the occupants have to pay Temporary Occupation Licence (TOL) fees to the relevant authority for the non-residential usage.
Buyers have to note that they cannot assume that the building erected on residential zoned land can continue to run as a shophouse when there is a transfer of ownership.
Road line
This must be factored in when buying shophouses. Shophouses that face the main road are often affected by road lines. If the property is adversely affected - say, by a major road line - it will be more difficult to get bank financing as there is the risk of government acquisition for road widening.
However, if the shophouses are conserved or located within a conservation area, they are generally safe buys as these are "protected" areas.
Outlook for commercial units
Strata Office
The commercial property sales market is expected to continue to improve in 2010, in tandem with an expected economic recovery. Sales activity for strata office units is likely to reflect moderate increase, as investor sentiments for strata office units improve.
Potential buyers of strata offices are likely to continue to remain less sensitive to the tenure of strata offices. About two-third of strata offices transacted in 2H 2009 and 1H 2010 were 99-year leasehold strata offices. This trend is likely to continue, given limited supply, lower capital outlay and attractive yields of leasehold strata offices.
Strata Shops
The number of shop units transacted is expected to remain similar to the current number. However, due to limited new supply of strata shops, transaction prices is expected to be stable and there is potential for some capital appreciation.
Additionally, while strata shops are generally older and may be thought to be losing their appeal, there are certain trades which can only be supported by strata shops. These include lower-cost retail services, offering personable and customized services for regular customers.
About half of strata shops transacted in 2H 2009 and 1H 2010 were 99-year leasehold strata shops. This is likely to continue in 2H 2010.
Shophouses
Shophouses are expected to remain favourable for buyers, underpinned by limited supply and unique design. Some potential buyers will also feel that owning shophouses will be more tangible than renting as the unique value can only be actualised through owning.
Buyers are expected to remain keen in freehold shophouses. Currently, only about a quarter of shophouse transactions are leasehold, reflecting buyers' strong desire to have a lasting interest in shophouses.
5 tips for investing in shops and shophouses
The total value of commercial units transacted was $976.9 million, 12% higher than in 2H 2009.
Fri, Jul 23, 2010
Knight Frank
By Mary Sai, Executive Director
Auctions (Commercial), Knight Frank
The number of commercial units, typically shophouses and strata units for office and shops, sold in 1H 2010 remained similar to that in 2H 2009. A total of 495 commercial units were transacted in 1H 2010, reflecting a 4 per cent decrease compared to that in 2H 2009.
Although economic conditions have tremendously improved in 1H 2010, the number of commercial properties transacted was subdued, underpinned by limited supply and a stalemate in sellers' asking prices and owners' offer prices.
The limited supply meant limited choices for potential buyers while for sellers, the limited supply of strata commercial properties meant that there would be no urgency to sell their properties in case prices appreciate with further economic recovery.
Nevertheless, the total value of commercial units transacted was $976.9 million, 12 per cent higher than that in
2H 2009. The encouraging value of commercial units transacted in 1H 2010 could be the result of a shift from an interest for units in the lower price-band, to units in the mid price-band.
In 2009, due to the adverse economic conditions, investors and buyers were cautious and preferred to purchase commercial units which were affordably priced in the lowest price band.
Most transaction activities of strata shops and shophouses still remain in the Central Region (planning areas like Outram, Rochor, Kallang, Geylang). Meanwhile, strata office investors are shifting their interest to fringe areas like Beach Road, Middle Road and East Coast vicinity.
Buying Shops & Shophouses - What should you look out for?
Financing
As with most property transactions, getting funding is pivotal to the buying decision. Since July 2006, CPF savings cannot be used to finance commercial purchase. As such, getting a bank loan is critical.
With most banks granting loans of 70 to 80 per cent of the purchase price or valuation (whichever is lower), prospective buyers must have cash upfront for the remaining 20 to 30 per cent.
Currently, many banks are offering commercial loan packages at promotional rate of about 2.3 per cent which is a booster for many investors who are considering buying commercial properties for investment or owner occupation.
Location
Location is one key consideration in the buying decision for any property, more so for shops and shophouses. As shops/shophouses are for retailing purposes, they should be in conspicuous locations and sited where human traffic is high.
In a shopping mall, one has to pay a premium for shops in the main shoppers' concourse and facing the escalator where most shoppers will pass by when shopping. In the case of shophouse, its visibility from the main road and easy access to carparks are essential factors for consideration.
Good locations of shops/shophouses generate better rentability and therefore higher rental yields if they are held as investment properties.
Tenure
Statistics in 2H2009 & 1H2010 have shown that most buyers for shophouses preferred freehold properties while about half of the strata shop transactions in the same period were 99-year leasehold strata shops.
Differences in values between the two tenures can be in the region of 15 per cent to 20 per cent depending on the balance years of lease and other factors.
In recent years, many buyers of commercial properties have embraced 99-year leasehold properties in their investment portfolios as they are more affordable and have higher rental yields because of their lower capital values.
Zoning
This is essential to note when buying shophouses. Shophouses are usually erected on land zoned "Commercial" or "Residential with Commercial on Groundfloor Only".
Shophouses sited on land zoned residential are essentially terrace buildings with "tolerated" commercial uses and the occupants have to pay Temporary Occupation Licence (TOL) fees to the relevant authority for the non-residential usage.
Buyers have to note that they cannot assume that the building erected on residential zoned land can continue to run as a shophouse when there is a transfer of ownership.
Road line
This must be factored in when buying shophouses. Shophouses that face the main road are often affected by road lines. If the property is adversely affected - say, by a major road line - it will be more difficult to get bank financing as there is the risk of government acquisition for road widening.
However, if the shophouses are conserved or located within a conservation area, they are generally safe buys as these are "protected" areas.
Outlook for commercial units
Strata Office
The commercial property sales market is expected to continue to improve in 2010, in tandem with an expected economic recovery. Sales activity for strata office units is likely to reflect moderate increase, as investor sentiments for strata office units improve.
Potential buyers of strata offices are likely to continue to remain less sensitive to the tenure of strata offices. About two-third of strata offices transacted in 2H 2009 and 1H 2010 were 99-year leasehold strata offices. This trend is likely to continue, given limited supply, lower capital outlay and attractive yields of leasehold strata offices.
Strata Shops
The number of shop units transacted is expected to remain similar to the current number. However, due to limited new supply of strata shops, transaction prices is expected to be stable and there is potential for some capital appreciation.
Additionally, while strata shops are generally older and may be thought to be losing their appeal, there are certain trades which can only be supported by strata shops. These include lower-cost retail services, offering personable and customized services for regular customers.
About half of strata shops transacted in 2H 2009 and 1H 2010 were 99-year leasehold strata shops. This is likely to continue in 2H 2010.
Shophouses
Shophouses are expected to remain favourable for buyers, underpinned by limited supply and unique design. Some potential buyers will also feel that owning shophouses will be more tangible than renting as the unique value can only be actualised through owning.
Buyers are expected to remain keen in freehold shophouses. Currently, only about a quarter of shophouse transactions are leasehold, reflecting buyers' strong desire to have a lasting interest in shophouses.
TODAY ONLINE : Still going according to plan
Still going according to plan
Despite changes in the Land Strata Titles Act, developments are continuing their en bloc runs
05:55 AM Jul 23, 2010
by Jo-ann Huang joannhuang@mediacorp.com.sg
SINGAPORE - Property owners with en bloc sale aspirations seem unfazed by the new provisions to the Land Strata Titles Act which took effect last week as a number of them are still proceeding with their collective sales as planned.
Developments such as Allsworth Park, Mayfair Gardens, Thomson View and Shenton House are among those continuing their en bloc runs and have elected sales committees.
Analysts are also expecting between 20 to 40 en bloc launches for the rest of the year with an average deal value of between $50 million and $100 million.
Things are also looking smooth for Laguna Park, whose new sales committee has appointed Knight Frank as marketing agent and Khattar Wong as lawyer.
Laguna Park dwellers are looking to open for tender by the first quarter of next year, a resident told MediaCorp.
Market watchers also expect several smaller developments with fewer than 50 units to be en bloc ready by year end.
The latest amendments in the Land Strata Titles Act have won the approval of marketing agents and residents who believe the provisions will help prevent a lengthy and convoluted en bloc process.
In particular, they laud the recommendation to raise the requisition rate to reconvene another extraordinary general meeting to 50 per cent of share value or total number of residents.
That is higher than the previous 20 per cent of share value or 25 per cent of the total number of owners required and will apply to homeowners who failed their initial attempt at an en bloc sale.
The Ministry of Law said the new provision is to discourage numerous en bloc tries if there is insufficient interest from homeowners.
Some changes in the Land Strata Titles Act - such as the two-year restriction if a first attempt fails - should help en bloc sellers to time their sale in a property upswing and increase their odds at pocketing larger profits.
"Collective sales should be moving along swiftly as it is now or never for them," said Ms Christina Sim, director of investment at Cushman and Wakefield.
"For the property agents, they know they are embarking on something serious and the chances of it coming to fruition are better," she added.
However, property analysts believe that with more launches expected in the second half of this year, this may result in a developers' market.
This means that with the onset of launches, developers will have more to choose from and sellers will have to keep their prices competitive and "realistic", said Ms Sim.
"With the buffet spread of collective sales coming up, and with the limited spending power from developers, the sites have to be priced realistically to meet the balance between market demand and residents' needs," she explained.
Just this month, tenders for two en bloc sites were completed with the People's Mansion in Lorong 31 Geylang selling for $42.68 million, and Meng Garden Apartments in Killiney Road going for $137 million.
This week, CBRE launched the en bloc sale of Holland Tower with an indicative asking price of $68 million.
"The 13 en bloc deals in the first half of the year were relatively small, averaging at $40 million," said Mr Karamjit Singh, managing director of Credo Real Estate.
He also expects 20 to 40 en bloc launches in the second half, mainly medium sized projects and a handful of large ones.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Despite changes in the Land Strata Titles Act, developments are continuing their en bloc runs
05:55 AM Jul 23, 2010
by Jo-ann Huang joannhuang@mediacorp.com.sg
SINGAPORE - Property owners with en bloc sale aspirations seem unfazed by the new provisions to the Land Strata Titles Act which took effect last week as a number of them are still proceeding with their collective sales as planned.
Developments such as Allsworth Park, Mayfair Gardens, Thomson View and Shenton House are among those continuing their en bloc runs and have elected sales committees.
Analysts are also expecting between 20 to 40 en bloc launches for the rest of the year with an average deal value of between $50 million and $100 million.
Things are also looking smooth for Laguna Park, whose new sales committee has appointed Knight Frank as marketing agent and Khattar Wong as lawyer.
Laguna Park dwellers are looking to open for tender by the first quarter of next year, a resident told MediaCorp.
Market watchers also expect several smaller developments with fewer than 50 units to be en bloc ready by year end.
The latest amendments in the Land Strata Titles Act have won the approval of marketing agents and residents who believe the provisions will help prevent a lengthy and convoluted en bloc process.
In particular, they laud the recommendation to raise the requisition rate to reconvene another extraordinary general meeting to 50 per cent of share value or total number of residents.
That is higher than the previous 20 per cent of share value or 25 per cent of the total number of owners required and will apply to homeowners who failed their initial attempt at an en bloc sale.
The Ministry of Law said the new provision is to discourage numerous en bloc tries if there is insufficient interest from homeowners.
Some changes in the Land Strata Titles Act - such as the two-year restriction if a first attempt fails - should help en bloc sellers to time their sale in a property upswing and increase their odds at pocketing larger profits.
"Collective sales should be moving along swiftly as it is now or never for them," said Ms Christina Sim, director of investment at Cushman and Wakefield.
"For the property agents, they know they are embarking on something serious and the chances of it coming to fruition are better," she added.
However, property analysts believe that with more launches expected in the second half of this year, this may result in a developers' market.
This means that with the onset of launches, developers will have more to choose from and sellers will have to keep their prices competitive and "realistic", said Ms Sim.
"With the buffet spread of collective sales coming up, and with the limited spending power from developers, the sites have to be priced realistically to meet the balance between market demand and residents' needs," she explained.
Just this month, tenders for two en bloc sites were completed with the People's Mansion in Lorong 31 Geylang selling for $42.68 million, and Meng Garden Apartments in Killiney Road going for $137 million.
This week, CBRE launched the en bloc sale of Holland Tower with an indicative asking price of $68 million.
"The 13 en bloc deals in the first half of the year were relatively small, averaging at $40 million," said Mr Karamjit Singh, managing director of Credo Real Estate.
He also expects 20 to 40 en bloc launches in the second half, mainly medium sized projects and a handful of large ones.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Subscribe to:
Posts (Atom)
Posts
