Nov 10, 2010
8,000 apply for 1,322 BTO flats
Five-room flats oversubscribed by 12 times in Sengkang
By Daryl Chin
DEMAND for the latest batch of new Housing Board flats is high, with the offering oversubscribed by six times.
Nearly 8,000 people applied for the 1,322 build-to-order (BTO) units in Sengkang and Bukit Panjang, before applications closed at midnight on Monday.
By contrast, oversubscription rates for the two previous projects in Yishun in September and Woodlands last month were more modest, at 2.4 and 2.2 respectively.
The oversubscription rate for the latest project, while high, was not as high as some of the earlier BTO projects such as the ones in Punggol and Boon Lay in May, which was more than six times the number of units available.
Bigger flats proved the most popular this time around. Five-room premium flats at Anchorvale Horizon in Sengkang were oversubscribed by 12 times, with 1,838 applications for 148 units.
The 710 four-room flats at Anchorvale Horizon and the other development, Senja Parc View in Bukit Panjang, were oversubscribed by about five times. The 112 two-room flats in Senja Parc View were the least popular, with 89 applications.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said the response shows buyers are increasingly looking for value for money.
Location is another important factor. 'The previous BTOs with lower demand might not be in the area where people want to relocate to,' he said.
ERA Asia Pacific associate director Eugene Lim said the demand for the Sengkang flats, which are within walking distance from the town centre and the MRT, is a sign buyers are becoming more discerning.
This is because since the end of last year, HDB has been saying in advance the number of flats it plans to build, and in which areas.
Some people are also prepared to wait for the flats they want because now they have more options, he added. HDB announced 16,000 new BTO flats this year, with 22,000 expected next year.
Mr Nicholas Mak, research executive director for SLP International Property Consultants, said the lower subscription rates for the earlier projects in Yishun and Woodlands could be down to uncertainty in the market after new rules were introduced on Aug 30.
These include prohibiting private property owners from buying HDB resale flats, a move that eased the red-hot demand for such flats and possibly enticed more first-time HDB flat buyers into the resale market.
'In addition, the public perception of Punggol and Sengkang seems to be changing, attracting more young professionals,' he added.
The high subscription rates at good locations mean first-time buyers holding out for such popular flats could be in for a long wait.
First-timer Mark Khoo, 26, began applying for flats at the start of this year.
The marketing executive said: 'We originally wanted only those popular ones but after getting rejected four times, we decided to try for Yishun Riverwalk, a location less subscribed, so we're hoping for the best.'
He added that a number of his friends also face the same predicament.
'We might sacrifice convenience, but at least we will get a place,' he added.
darylc@sph.com.sg
Friday, November 12, 2010
ST : Lift upgrades for more Potong Pasir blocks
Nov 8, 2010
Lift upgrades for more Potong Pasir blocks
Announcement comes a week after similar one for Hougang
By Teo Wan Gek
A SECOND batch of Housing Board blocks in opposition-held Potong Pasir and Hougang has been identified for lift upgrading, with the announcements coming within a week of each other.
The People's Action Party (PAP) adviser to grassroots organisations in Potong Pasir, Mr Sitoh Yih Pin, said three precincts in Potong Pasir Avenue 1 and Avenue 3 - comprising a total of 22 blocks - will be offered the lift upgrading programme (LUP).
'This is a mature estate and residents welcome news of the three additional precincts,' he told The Straits Times yesterday after a community event in Potong Pasir Avenue 1.
He said earlier that the LUP was 'a good thing for residents, especially the elderly ones'.
In July last year, the National Development Ministry announced that 65 precincts, including those in the two opposition wards, would be selected for LUP. Three months later, Mr Sitoh said that nine blocks had been picked.
The event he attended yesterday was a gathering of residents from that first batch of flats to discuss questions about the design and costs involved.
His announcement that 22 more blocks were being offered LUP came a week after the PAP grassroots adviser in Hougang, Mr Eric Low, made a similar one. Mr Low told Hougang residents on Oct 31 that 32 blocks in three precincts would be offered LUP. These were in addition to the six blocks he announced in October last year.
Mr Sitoh, who lost twice in Potong Pasir to Singapore People's Party chief Chiam See Tong, declined to comment yesterday when asked about the timing of his latest announcement and a general election, due by February 2012.
Anticipation about the polls has heightened since Prime Minister Lee Hsien Loong's disclosure on Oct 30 that the Electoral Boundaries Review Committee, which maps out changes to constituencies, had been convened.
Mr Low, on the other hand, told The Straits Times that the timing of his announcement in Hougang last week was 'mere coincidence'. He acknowledged that some would see it as a political move, but said this was only because he represented the PAP in Hougang.
Mr Low, who was twice unsuccessful against Workers' Party chief Low Thia Khiang, revealed that a straw poll earlier this year in Hougang found about 90 per cent of residents from the first batch of blocks supported LUP.
But he said the LUP was no guarantee of a sure-win for him: 'Whatever I do, it depends very much on the mood at that time an election is called.'
The announcements last year to offer LUP to opposition wards earlier represented a shift in position by the Government, which had said after the 2006 election that the wards would be 'at the end of the queue' for LUP.
The Straits Times spoke to more than a dozen Potong Pasir and Hougang residents about the recent announcements. Most said it would not impact on how they voted as the Government had already said the constituencies would be eligible for LUP.
'So it's only a matter of time (before) we get it,' said Hougang resident and delivery driver Tan Ping Hua, 58.
But Potong Pasir resident Ang Chong Lai, 34, whose block is in line for LUP, said now was the best time for the PAP to 'pour in incentives'.
With talk that Mrs Lina Chiam could replace her husband in the ward, 'this may be the best time for the PAP to turn voters to their side', said the director of a new media company.
Residents said they would also assess Mr Chiam and Mr Low Thia Khiang based on their track records.
Landscape designer and Hougang resident Ong Kuee Fen, 57, said of Mr Low Thia Khiang: 'He has been here for so long. He has served us well.'
Added technical officer David Kwa, 45, who has lived in Hougang for 15 years: 'I will vote in support of the LUP, but that does not mean I will vote for the PAP.'
wangekt@sph.com.sg
Lift upgrades for more Potong Pasir blocks
Announcement comes a week after similar one for Hougang
By Teo Wan Gek
A SECOND batch of Housing Board blocks in opposition-held Potong Pasir and Hougang has been identified for lift upgrading, with the announcements coming within a week of each other.
The People's Action Party (PAP) adviser to grassroots organisations in Potong Pasir, Mr Sitoh Yih Pin, said three precincts in Potong Pasir Avenue 1 and Avenue 3 - comprising a total of 22 blocks - will be offered the lift upgrading programme (LUP).
'This is a mature estate and residents welcome news of the three additional precincts,' he told The Straits Times yesterday after a community event in Potong Pasir Avenue 1.
He said earlier that the LUP was 'a good thing for residents, especially the elderly ones'.
In July last year, the National Development Ministry announced that 65 precincts, including those in the two opposition wards, would be selected for LUP. Three months later, Mr Sitoh said that nine blocks had been picked.
The event he attended yesterday was a gathering of residents from that first batch of flats to discuss questions about the design and costs involved.
His announcement that 22 more blocks were being offered LUP came a week after the PAP grassroots adviser in Hougang, Mr Eric Low, made a similar one. Mr Low told Hougang residents on Oct 31 that 32 blocks in three precincts would be offered LUP. These were in addition to the six blocks he announced in October last year.
Mr Sitoh, who lost twice in Potong Pasir to Singapore People's Party chief Chiam See Tong, declined to comment yesterday when asked about the timing of his latest announcement and a general election, due by February 2012.
Anticipation about the polls has heightened since Prime Minister Lee Hsien Loong's disclosure on Oct 30 that the Electoral Boundaries Review Committee, which maps out changes to constituencies, had been convened.
Mr Low, on the other hand, told The Straits Times that the timing of his announcement in Hougang last week was 'mere coincidence'. He acknowledged that some would see it as a political move, but said this was only because he represented the PAP in Hougang.
Mr Low, who was twice unsuccessful against Workers' Party chief Low Thia Khiang, revealed that a straw poll earlier this year in Hougang found about 90 per cent of residents from the first batch of blocks supported LUP.
But he said the LUP was no guarantee of a sure-win for him: 'Whatever I do, it depends very much on the mood at that time an election is called.'
The announcements last year to offer LUP to opposition wards earlier represented a shift in position by the Government, which had said after the 2006 election that the wards would be 'at the end of the queue' for LUP.
The Straits Times spoke to more than a dozen Potong Pasir and Hougang residents about the recent announcements. Most said it would not impact on how they voted as the Government had already said the constituencies would be eligible for LUP.
'So it's only a matter of time (before) we get it,' said Hougang resident and delivery driver Tan Ping Hua, 58.
But Potong Pasir resident Ang Chong Lai, 34, whose block is in line for LUP, said now was the best time for the PAP to 'pour in incentives'.
With talk that Mrs Lina Chiam could replace her husband in the ward, 'this may be the best time for the PAP to turn voters to their side', said the director of a new media company.
Residents said they would also assess Mr Chiam and Mr Low Thia Khiang based on their track records.
Landscape designer and Hougang resident Ong Kuee Fen, 57, said of Mr Low Thia Khiang: 'He has been here for so long. He has served us well.'
Added technical officer David Kwa, 45, who has lived in Hougang for 15 years: 'I will vote in support of the LUP, but that does not mean I will vote for the PAP.'
wangekt@sph.com.sg
ST : En bloc market still active
Nov 8, 2010
PROPERTY WATCH
En bloc market still active
Eight collective sales sealed since cooling measures on Aug 30
By Esther Teo
THE measures to cool the property boom have taken some of the heat out of the en bloc market but there is still plenty of interest, say industry experts.
They believe the steps that were announced on Aug 30 have made developers more cautious, resulting in lower bids and fewer successful tenders.
Eight collective sales - they include Pastoral View in Bassein Road and Glenville in Lim Tua Tow Road - totalling $369 million have been completed since Aug 30.
But at least five sites where tenders closed after that date have struck out with buyers.
The five are Maison Royale in Surrey Road, Newton View, Selegie Centre, Amber Glades near Marine Parade and 13 shophouses in Owen Road. All are freehold developments.
Experts said most of the owners are either negotiating private treaties or deciding whether to go for a second tender process.
The Straits Times understands that Selegie Centre and Maison Royale both had three interested parties but neither received a bid.
Jones Lang LaSalle's head of investments, Ms Stella Hoh, said the collective sale market has started picking up momentum.
'However, the cooling measures would have at least an impact as the bids offered by developers depend on what they think the demand will be from end buyers, who are affected by these new rules,' she added.
Collective sale sites going for under $100 million seem to be the one area where buyers - usually boutique developers - are still prepared to put their money down.
This could be due to their more affordable prices and the relative ease of garnering the 80 per cent support level from owners compared with larger developments, experts said.
Seven of the eight successful sales since Aug 30 involve smaller sites priced at less than $100 million.
Robin Court and an adjoining bungalow in Robin Drive even bucked the trend of lower bids to sell at $77.33 million, more than the $66 million to $74 million expected, said Mr Karamjit Singh, managing director of Credo Real Estate.
Guillemard Court drew an even better response. It received seven bids and one expression of interest before selling for $41.6 million, almost 30 per cent above its indicative price of $33 million, said marketing agent Deans Realtors.
Director Alwyn Low said this could be due to its accessibility - the Dakota MRT station is just 600m away - and the ease the rectangular-shaped plot presents for building.
Results like that bode well for smaller sites, according to Mr Kevin Lim, Urban Front Real Estate's executive director of investment sales.
Mr Lim told The Straits Times: 'Interest is still high as we're receiving enquiries from many developers. If the pricing is good, (they) will still purchase... but smaller sites seem to be more saleable as their quantum price is smaller, which means developers would take on lesser risks.'
Bigger sites can be expected to hit the market next year, after the dust has settled from recent changes to en bloc rules, which have extended the sale process for some larger developments, added Ms Hoh, of Jones Lang LaSalle.
Jones Lang LaSalle said in a report last week that collective sale transactions have hit $975.6 million so far this year.
And residential collective sales - at $883.6 million year-to-date - account for more than 90 per cent of the total, with sales predominantly in upgrader locations such as Balestier and Toa Payoh in District 12, Geylang and Eunos in District 14 and Serangoon and Hougang in District 19.
In contrast, there was only one successful collective sale last year - that of Dragon Mansion for $100.8 million.
Jones Lang LaSalle added that the rise in popularity of collective sales can be due to 'improving fundamentals of the Singapore property market and the widening gap between new sale and resale prices for residential property'.
esthert@sph.com.sg
PROPERTY WATCH
En bloc market still active
Eight collective sales sealed since cooling measures on Aug 30
By Esther Teo
THE measures to cool the property boom have taken some of the heat out of the en bloc market but there is still plenty of interest, say industry experts.
They believe the steps that were announced on Aug 30 have made developers more cautious, resulting in lower bids and fewer successful tenders.
Eight collective sales - they include Pastoral View in Bassein Road and Glenville in Lim Tua Tow Road - totalling $369 million have been completed since Aug 30.
But at least five sites where tenders closed after that date have struck out with buyers.
The five are Maison Royale in Surrey Road, Newton View, Selegie Centre, Amber Glades near Marine Parade and 13 shophouses in Owen Road. All are freehold developments.
Experts said most of the owners are either negotiating private treaties or deciding whether to go for a second tender process.
The Straits Times understands that Selegie Centre and Maison Royale both had three interested parties but neither received a bid.
Jones Lang LaSalle's head of investments, Ms Stella Hoh, said the collective sale market has started picking up momentum.
'However, the cooling measures would have at least an impact as the bids offered by developers depend on what they think the demand will be from end buyers, who are affected by these new rules,' she added.
Collective sale sites going for under $100 million seem to be the one area where buyers - usually boutique developers - are still prepared to put their money down.
This could be due to their more affordable prices and the relative ease of garnering the 80 per cent support level from owners compared with larger developments, experts said.
Seven of the eight successful sales since Aug 30 involve smaller sites priced at less than $100 million.
Robin Court and an adjoining bungalow in Robin Drive even bucked the trend of lower bids to sell at $77.33 million, more than the $66 million to $74 million expected, said Mr Karamjit Singh, managing director of Credo Real Estate.
Guillemard Court drew an even better response. It received seven bids and one expression of interest before selling for $41.6 million, almost 30 per cent above its indicative price of $33 million, said marketing agent Deans Realtors.
Director Alwyn Low said this could be due to its accessibility - the Dakota MRT station is just 600m away - and the ease the rectangular-shaped plot presents for building.
Results like that bode well for smaller sites, according to Mr Kevin Lim, Urban Front Real Estate's executive director of investment sales.
Mr Lim told The Straits Times: 'Interest is still high as we're receiving enquiries from many developers. If the pricing is good, (they) will still purchase... but smaller sites seem to be more saleable as their quantum price is smaller, which means developers would take on lesser risks.'
Bigger sites can be expected to hit the market next year, after the dust has settled from recent changes to en bloc rules, which have extended the sale process for some larger developments, added Ms Hoh, of Jones Lang LaSalle.
Jones Lang LaSalle said in a report last week that collective sale transactions have hit $975.6 million so far this year.
And residential collective sales - at $883.6 million year-to-date - account for more than 90 per cent of the total, with sales predominantly in upgrader locations such as Balestier and Toa Payoh in District 12, Geylang and Eunos in District 14 and Serangoon and Hougang in District 19.
In contrast, there was only one successful collective sale last year - that of Dragon Mansion for $100.8 million.
Jones Lang LaSalle added that the rise in popularity of collective sales can be due to 'improving fundamentals of the Singapore property market and the widening gap between new sale and resale prices for residential property'.
esthert@sph.com.sg
ST : 96% of eligible blocks offered lift upgrading
Nov 8, 2010
96% of eligible blocks offered lift upgrading
MORE than 96 per cent of eligible Housing Board blocks have been offered lift upgrading since the programme was introduced in 2001, the HDB has said.
This means that about 4,900 blocks have already come under the programme to provide lift landings on every floor of older HDB blocks, which usually have one lift landing for every three or four floors. A total of $3.8 billion has been earmarked for this programme.
The board, which disclosed this in response to questions from The Straits Times, added that the Lift Upgrading Programme (LUP) is on track to be completed by the previously set deadline of 2014.
Depending on the complexity of the design of the blocks or precincts, it takes an average of nine to 15 months from the time lift upgrading is announced to a poll being conducted among residents.
The programme is heavily subsidised by the Government. Residents and town councils each co-pay between 5 per cent and 12.5 per cent of the cost.
Construction work, which starts only after a successful poll, takes about 24 to 30 months, depending on the configuration of the block and the precinct size.
The LUP will proceed only when 75 per cent of residents vote for it.
In July last year, the opposition-held wards were picked for the first time for lift upgrading - six blocks in Hougang and nine blocks in Potong Pasir.
Another 32 blocks in Hougang and 22 in Potong Pasir have since been picked.
The HDB statement said that $150 million has been allocated for lift upgrading in the two wards, and will be spent to upgrade all eligible blocks.
The actual cost of upgrading varies according to the configuration of the blocks. For example, segmented blocks without common corridors may require adding new lift shafts so that residents can have direct access to a lift.
For a segmented block of 12 storeys with four lifts, for example, it can cost about $30,000 per household that currently does not have direct lift access.
It would, on the other hand, cost $14,000 per household in a standard 12-storey block which requires a new lift shaft and existing lifts to be upgraded. The cost is lower because it would be necessary to only upgrade the existing lifts.
Costs would be higher for low-rise blocks than for high-rise blocks as there are fewer households to share the cost.
TEO WAN GEK
96% of eligible blocks offered lift upgrading
MORE than 96 per cent of eligible Housing Board blocks have been offered lift upgrading since the programme was introduced in 2001, the HDB has said.
This means that about 4,900 blocks have already come under the programme to provide lift landings on every floor of older HDB blocks, which usually have one lift landing for every three or four floors. A total of $3.8 billion has been earmarked for this programme.
The board, which disclosed this in response to questions from The Straits Times, added that the Lift Upgrading Programme (LUP) is on track to be completed by the previously set deadline of 2014.
Depending on the complexity of the design of the blocks or precincts, it takes an average of nine to 15 months from the time lift upgrading is announced to a poll being conducted among residents.
The programme is heavily subsidised by the Government. Residents and town councils each co-pay between 5 per cent and 12.5 per cent of the cost.
Construction work, which starts only after a successful poll, takes about 24 to 30 months, depending on the configuration of the block and the precinct size.
The LUP will proceed only when 75 per cent of residents vote for it.
In July last year, the opposition-held wards were picked for the first time for lift upgrading - six blocks in Hougang and nine blocks in Potong Pasir.
Another 32 blocks in Hougang and 22 in Potong Pasir have since been picked.
The HDB statement said that $150 million has been allocated for lift upgrading in the two wards, and will be spent to upgrade all eligible blocks.
The actual cost of upgrading varies according to the configuration of the blocks. For example, segmented blocks without common corridors may require adding new lift shafts so that residents can have direct access to a lift.
For a segmented block of 12 storeys with four lifts, for example, it can cost about $30,000 per household that currently does not have direct lift access.
It would, on the other hand, cost $14,000 per household in a standard 12-storey block which requires a new lift shaft and existing lifts to be upgraded. The cost is lower because it would be necessary to only upgrade the existing lifts.
Costs would be higher for low-rise blocks than for high-rise blocks as there are fewer households to share the cost.
TEO WAN GEK
ST : Small size, big draw
Nov 6, 2010
Small size, big draw
Shoebox apartments are fetching record prices, even those outside the city centre
By Esther Teo
SMALL studio apartments might be a tight squeeze for some, but they have punched above their weight - and size - by achieving record prices, even in less glitzy areas outside the city centre.
These so-called shoebox apartments, typically less than 500 sq ft in size, first made their presence felt around 2006 in mainly prime districts. The Robertson Edge project off Mohamed Sultan Road is one example.
But the trend has since spread to regions outside the central area.
In fact, a 474 sq ft apartment at The Scala, near Lorong Chuan MRT station, was sold for $1,522 per sq ft (psf) - or about $720,000 - in August, according to caveats lodged with the Urban Redevelopment Authority.
Experts said this was likely to be a benchmark price set for a 99-year leasehold project outside the central region. Another two similarly sized apartments sold for $1,467 psf and $1,437 psf last month.
Other apartments which have fetched high prices include a 484 sq ft unit at 99-year leasehold project Optima@Tanah Merah, which sold for $1,280 psf, or $620,000, in September.
A 420 sq ft unit at Siglap V - also outside the central area - transacted at $1,584 psf, or $665,000, in August, while a 409 sq ft unit at Suites@Changi sold for $1,379 psf, or $564,000, in September. Both projects, however, are freehold.
Experts said buyers are drawn to the more affordable investment prices of shoebox units, compared with those of family-sized homes. The rising prices of Housing Board flats might also have nudged some to buy private properties at comparable prices instead.
The success of earlier shoebox developments, which have enjoyed capital gains in line with the market and higher rental yields, has also fed the trend, they added.
A CB Richard Ellis report last month said about 10 residential projects featuring predominantly small-format units will be launched in the next few months. With the exception of one, all the sites are in suburban areas like Telok Kurau, Siglap and Eunos.
Cushman and Wakefield's senior manager of Asia-Pacific research Ong Kah Seng said most shoebox apartment buyers are price-sensitive, and similar in profile to the typical buyers of suburban condominiums. Such units are thus increasingly popular, even if they are in non-prime areas, he said.
'Buyers of shoebox units are mixed in profile, but are usually singles or couples without kids, who do consider renting out the units... although the majority do not mind using them for owner occupation should there be limitations in finding the right tenants,' added Mr Ong.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said that with the market flush with liquidity, investors are constantly looking for avenues to park their cash.
And because investors have dominated sales, the attractions which owners usually look for, such as amenities, security and surroundings, matter less, he said. Instead, accessibility, such as being close to an MRT station, takes precedence.
Mr Tan added that small-format units are a consequence of high property prices, and as long as prices continue to rise, more of such units can be expected.
Kim Eng Research analyst Ooi Yi Tung said shoebox units offer an alternative to buyers who are priced out of the larger private property market and ineligible for Housing Board flats, or reject public housing for its perceived lower quality and lack of facilities.
Shoebox units also achieve slightly better rental yields than larger units because of their lower prices. Robertson Edge, for example, fetches a rental yield of 6.6 per cent, while the average yield for a centrally located condominium is 3 per cent to 4 per cent, he said.
Mr Ching Chiat Kwong, chief executive of property developer Oxley Holdings, said that as small units have affordable prices, buyers need not take huge loans and do not need to fear interest rate hikes, unlike buyers of units with larger price tags and heftier loans.
Oxley is a prominent developer of shoebox apartments, which will make up about half of the up to nine projects it expects to launch within the next six months.
Buyers of its units have included not only investors, who target the expatriate singles market, but also owner-occupiers who are mostly singles, young couples and some retirees who desire the ease of maintaining a small home, Mr Ching said.
He added: 'Although young people are mobile and seek an independent lifestyle, they like to live near their parents. So it's not surprising that you see people buying small units in suburban mature areas to be near their parents.'
But risks remain, as shoebox units are more vulnerable during an economic downturn, should the expatriate tenant population shrink.
Said Mr Ong: 'During challenging economic times, it's likely that local professionals will be cautious in spending, including on accommodation. There may be some who will choose to stay with their families until the economy shows strong signs of recovery.'
esthert@sph.com.sg
Small size, big draw
Shoebox apartments are fetching record prices, even those outside the city centre
By Esther Teo
SMALL studio apartments might be a tight squeeze for some, but they have punched above their weight - and size - by achieving record prices, even in less glitzy areas outside the city centre.
These so-called shoebox apartments, typically less than 500 sq ft in size, first made their presence felt around 2006 in mainly prime districts. The Robertson Edge project off Mohamed Sultan Road is one example.
But the trend has since spread to regions outside the central area.
In fact, a 474 sq ft apartment at The Scala, near Lorong Chuan MRT station, was sold for $1,522 per sq ft (psf) - or about $720,000 - in August, according to caveats lodged with the Urban Redevelopment Authority.
Experts said this was likely to be a benchmark price set for a 99-year leasehold project outside the central region. Another two similarly sized apartments sold for $1,467 psf and $1,437 psf last month.
Other apartments which have fetched high prices include a 484 sq ft unit at 99-year leasehold project Optima@Tanah Merah, which sold for $1,280 psf, or $620,000, in September.
A 420 sq ft unit at Siglap V - also outside the central area - transacted at $1,584 psf, or $665,000, in August, while a 409 sq ft unit at Suites@Changi sold for $1,379 psf, or $564,000, in September. Both projects, however, are freehold.
Experts said buyers are drawn to the more affordable investment prices of shoebox units, compared with those of family-sized homes. The rising prices of Housing Board flats might also have nudged some to buy private properties at comparable prices instead.
The success of earlier shoebox developments, which have enjoyed capital gains in line with the market and higher rental yields, has also fed the trend, they added.
A CB Richard Ellis report last month said about 10 residential projects featuring predominantly small-format units will be launched in the next few months. With the exception of one, all the sites are in suburban areas like Telok Kurau, Siglap and Eunos.
Cushman and Wakefield's senior manager of Asia-Pacific research Ong Kah Seng said most shoebox apartment buyers are price-sensitive, and similar in profile to the typical buyers of suburban condominiums. Such units are thus increasingly popular, even if they are in non-prime areas, he said.
'Buyers of shoebox units are mixed in profile, but are usually singles or couples without kids, who do consider renting out the units... although the majority do not mind using them for owner occupation should there be limitations in finding the right tenants,' added Mr Ong.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said that with the market flush with liquidity, investors are constantly looking for avenues to park their cash.
And because investors have dominated sales, the attractions which owners usually look for, such as amenities, security and surroundings, matter less, he said. Instead, accessibility, such as being close to an MRT station, takes precedence.
Mr Tan added that small-format units are a consequence of high property prices, and as long as prices continue to rise, more of such units can be expected.
Kim Eng Research analyst Ooi Yi Tung said shoebox units offer an alternative to buyers who are priced out of the larger private property market and ineligible for Housing Board flats, or reject public housing for its perceived lower quality and lack of facilities.
Shoebox units also achieve slightly better rental yields than larger units because of their lower prices. Robertson Edge, for example, fetches a rental yield of 6.6 per cent, while the average yield for a centrally located condominium is 3 per cent to 4 per cent, he said.
Mr Ching Chiat Kwong, chief executive of property developer Oxley Holdings, said that as small units have affordable prices, buyers need not take huge loans and do not need to fear interest rate hikes, unlike buyers of units with larger price tags and heftier loans.
Oxley is a prominent developer of shoebox apartments, which will make up about half of the up to nine projects it expects to launch within the next six months.
Buyers of its units have included not only investors, who target the expatriate singles market, but also owner-occupiers who are mostly singles, young couples and some retirees who desire the ease of maintaining a small home, Mr Ching said.
He added: 'Although young people are mobile and seek an independent lifestyle, they like to live near their parents. So it's not surprising that you see people buying small units in suburban mature areas to be near their parents.'
But risks remain, as shoebox units are more vulnerable during an economic downturn, should the expatriate tenant population shrink.
Said Mr Ong: 'During challenging economic times, it's likely that local professionals will be cautious in spending, including on accommodation. There may be some who will choose to stay with their families until the economy shows strong signs of recovery.'
esthert@sph.com.sg
ST : Court orders home sale after family row
Nov 5, 2010
Court orders home sale after family row
Joint owners of $1.9m property must sell house, though mum and daughter cannot agree
By K.C. Vijayan, Law Correspondent
UNDER the law, when a property is held jointly by two individuals it cannot be sold unless both agree.
But the High Court has recently made an exception based on powers granted under the law to order the sale of such a house where both mother and daughter could not agree.
After her father left the family in 1983, Madam Neo Hui Ling became protective of her mother, Madam Ang Ah Siew.
Madam Neo eventually made her mother the joint tenant of a $1.88 million three-storey house in MacPherson she bought in 2007. This meant the property would revert to the survivor when one of the two died. She did this so her mother would have a roof over her head if Madam Neo should unexpectedly die.
But the duo had hardly lived there for three years when their relationship soured, leading Madam Neo to take her mother to court to force the sale of the house.
In High Court judgment grounds published on Wednesday, Justice Lai Siu Chiu ordered the sale, noting the relationship between the pair had 'drastically deteriorated'.
Among other things, the judge noted an incident in the house in March which was the last straw.
Madam Ang had, with two other daughters and six strangers, barged into Madam Neo's room to perform 'religious rites to cleanse' Madam Neo's room of 'dirty things'. She also made her daughter drink talisman water.
Madam Ang and her two daughters said they were concerned that Madam Neo was under some spell or possessed, noted the judge.
Following the incident, Madam Neo moved out of the six-room house and began living out of a suitcase in rented premises.
The judge said it was not necessary for her to detail all the conflicts they had.
'Those accounts clearly showed the relationship had broken down such that it was impossible to expect the parties to act jointly in deciding what to do with the property,' said Justice Lai.
Madam Neo had bought the property with a $1.35 million loan and paid about $10,000 a month in mortgage payments.
Madam Ang did not contribute a single cent towards the purchase of the house.
Madam Neo's lawyer Lisa Sam argued she had to sell the house as the financial burden on her had increased. This was because she had to service the loan and bear the expenses of a separate household.
Justice Lai also noted Madam Ang would not suffer any hardship if the house was sold as another daughter had agreed to take her in. In any case, Madam Neo offered to provide rented accommodation if her mother wanted.
The judge ordered 50 per cent of the sale proceeds to be given to Madam Neo, with the remaining half held by Madam Neo's lawyers pending a decision on if and how the amount is to be shared among the occupants.
Madam Ang's lawyer Steven Lee has filed a notice of appeal in the case.
vijayan@sph.com.sg
Court orders home sale after family row
Joint owners of $1.9m property must sell house, though mum and daughter cannot agree
By K.C. Vijayan, Law Correspondent
UNDER the law, when a property is held jointly by two individuals it cannot be sold unless both agree.
But the High Court has recently made an exception based on powers granted under the law to order the sale of such a house where both mother and daughter could not agree.
After her father left the family in 1983, Madam Neo Hui Ling became protective of her mother, Madam Ang Ah Siew.
Madam Neo eventually made her mother the joint tenant of a $1.88 million three-storey house in MacPherson she bought in 2007. This meant the property would revert to the survivor when one of the two died. She did this so her mother would have a roof over her head if Madam Neo should unexpectedly die.
But the duo had hardly lived there for three years when their relationship soured, leading Madam Neo to take her mother to court to force the sale of the house.
In High Court judgment grounds published on Wednesday, Justice Lai Siu Chiu ordered the sale, noting the relationship between the pair had 'drastically deteriorated'.
Among other things, the judge noted an incident in the house in March which was the last straw.
Madam Ang had, with two other daughters and six strangers, barged into Madam Neo's room to perform 'religious rites to cleanse' Madam Neo's room of 'dirty things'. She also made her daughter drink talisman water.
Madam Ang and her two daughters said they were concerned that Madam Neo was under some spell or possessed, noted the judge.
Following the incident, Madam Neo moved out of the six-room house and began living out of a suitcase in rented premises.
The judge said it was not necessary for her to detail all the conflicts they had.
'Those accounts clearly showed the relationship had broken down such that it was impossible to expect the parties to act jointly in deciding what to do with the property,' said Justice Lai.
Madam Neo had bought the property with a $1.35 million loan and paid about $10,000 a month in mortgage payments.
Madam Ang did not contribute a single cent towards the purchase of the house.
Madam Neo's lawyer Lisa Sam argued she had to sell the house as the financial burden on her had increased. This was because she had to service the loan and bear the expenses of a separate household.
Justice Lai also noted Madam Ang would not suffer any hardship if the house was sold as another daughter had agreed to take her in. In any case, Madam Neo offered to provide rented accommodation if her mother wanted.
The judge ordered 50 per cent of the sale proceeds to be given to Madam Neo, with the remaining half held by Madam Neo's lawyers pending a decision on if and how the amount is to be shared among the occupants.
Madam Ang's lawyer Steven Lee has filed a notice of appeal in the case.
vijayan@sph.com.sg
ST : Woodlands site: Far East puts in top bid amid six-way battle
Nov 5, 2010
Woodlands site: Far East puts in top bid amid six-way battle
By Esther Teo
PROPERTY giant Far East Organization has lodged the top offer in a six-way bidding battle for a Woodlands site.
The firm tendered $105.1 million for the 99-year leasehold plot at the junction of Woodlands Avenue 1 and Rosewood Drive. That works out at $333 per sq ft (psf) per plot ratio.
Next up was EL Development on $100.9 million. BS Capital, Sim Lian Land, TID Residential and Ecco Development, with the lowest bid of $73 million, were also in the hunt.
Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, said the six bids showed that developers are fairly confident about the site. Demand is likely to come from potential HDB upgraders and investors who want to tap the expatriate market as the plot is about a 10-minute walk from the Singapore American School.
The 21,000 sq m site has a maximum gross floor area of 29,339 sq m and can be used for strata landed housing or condominium units. About 265 homes could be built, depending on the type of development, said the Housing Board yesterday.
Mr Chng Kiong Huat, Far East's executive director of development and planning, said the firm expects to build a five-storey condominium. '(It) will incorporate some townhouses designed to complement the low-rise set-up. Buyers will have a choice of one- to four-bedroom units and townhouses, with private terraces, roof gardens and dedicated carpark spaces,' he added.
Far East's bid translates to a break-even cost of $650 to $700 psf with the project likely to be launched above $800 psf, Mr Li said. The firm has built a few projects in the area, including private condo Casablanca and the New England-style houses in Woodgrove Estate.
In the sub-sale market, units at the nearby Rosewood Suites, which is still being built, sold at $650 to $700 psf in the third quarter. Units in Woodgrove Condominium transacted at $560 to $675 psf in the secondary market while Casablanca apartments went for $620 to $750 psf.
Woodlands site: Far East puts in top bid amid six-way battle
By Esther Teo
PROPERTY giant Far East Organization has lodged the top offer in a six-way bidding battle for a Woodlands site.
The firm tendered $105.1 million for the 99-year leasehold plot at the junction of Woodlands Avenue 1 and Rosewood Drive. That works out at $333 per sq ft (psf) per plot ratio.
Next up was EL Development on $100.9 million. BS Capital, Sim Lian Land, TID Residential and Ecco Development, with the lowest bid of $73 million, were also in the hunt.
Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, said the six bids showed that developers are fairly confident about the site. Demand is likely to come from potential HDB upgraders and investors who want to tap the expatriate market as the plot is about a 10-minute walk from the Singapore American School.
The 21,000 sq m site has a maximum gross floor area of 29,339 sq m and can be used for strata landed housing or condominium units. About 265 homes could be built, depending on the type of development, said the Housing Board yesterday.
Mr Chng Kiong Huat, Far East's executive director of development and planning, said the firm expects to build a five-storey condominium. '(It) will incorporate some townhouses designed to complement the low-rise set-up. Buyers will have a choice of one- to four-bedroom units and townhouses, with private terraces, roof gardens and dedicated carpark spaces,' he added.
Far East's bid translates to a break-even cost of $650 to $700 psf with the project likely to be launched above $800 psf, Mr Li said. The firm has built a few projects in the area, including private condo Casablanca and the New England-style houses in Woodgrove Estate.
In the sub-sale market, units at the nearby Rosewood Suites, which is still being built, sold at $650 to $700 psf in the third quarter. Units in Woodgrove Condominium transacted at $560 to $675 psf in the secondary market while Casablanca apartments went for $620 to $750 psf.
ST : It's still easiest to do business in Singapore
Nov 5, 2010
It's still easiest to do business in Singapore
Efficiency, transparency help Republic top World Bank report for fifth year running
By Aaron Low
Singapore's top ranking is due to the efficiency of its processes and the transparency of its rules. But its weakest area is property registration, in which it ranked 15th. -- PHOTO: URA
SINGAPORE has been ranked the world's easiest place to do business - for the fifth year running.
It pipped Hong Kong, New Zealand, Britain and the United States to take top spot in the latest World Bank 'Doing Business' report, published yesterday.
The top 10 spots in the ranking, which is into its eighth year, were largely unchanged from the previous year's report.
Canada moved up from ninth to seventh place, just behind Denmark, pushing Norway and Ireland from seventh and eighth to eighth and ninth place respectively. Australia was ranked 10th.
Singapore's strong performance was attributed to the efficiency of its processes and the transparency of its rules, especially in areas involving technology.
The World Bank uses nine criteria to assess how easy it is to do business, from starting a business to getting credit and trading across borders.
But the report, which surveyed 183 economies, does not take into account factors such as corruption, macroeconomic stability or security.
The World Bank said economies that did well had advanced e-government initiatives. For instance, Singapore has a one-stop online portal for businesses to interact with the Government.
The Republic was No. 1 in terms of ease of cross-border trading, and second in the areas of applying for construction permits, protecting investors and closing a business.
Property registration was Singapore's weakest area, with the World Bank noting that registering property here involves three procedures and takes five days.
It came 15th in this category, up one place from last year, but trailing countries such as Saudi Arabia and Portugal.
Overall, 216 regulatory reforms were implemented by 117 governments. The developing world led the charge, with two-thirds of emerging economies reforming business regulations in the past year.
DBS Bank economist Irvin Seah said while it was unsurprising that Singapore was top again, making it easier to do businesses is still a comparative advantage.
'It is not easy to keep ahead of competitors especially when the region is also liberalising its economies,' he said.
Indeed, South-east Asian countries continued to improve, after many of them had reformed their regulatory processes and introduced electronic systems.
The most-improved South-east Asian countries were Vietnam, which jumped 10 places from 88th to 78th, and Brunei, which climbed five spots to 112nd.
But while it is easy to start and do business in Singapore, firms here said there are several areas of concern.
One is rising rental costs, said Mr Lawrence Leow, president of the Association of Small and Medium Enterprises.
Another is a tightening labour market, especially in the services sector, said the Singapore Chinese Chamber of Commerce and Industry.
Mr Freddy Ong, managing director of logistics firm Worldgreen Shipping, hopes the Government will re-examine the tight quotas on foreign workers.
'It's hard to hire good Singaporeans and the strict quota on foreign workers is a real problem for my company,' he said.
aaronl@sph.com.sg
It's still easiest to do business in Singapore
Efficiency, transparency help Republic top World Bank report for fifth year running
By Aaron Low
Singapore's top ranking is due to the efficiency of its processes and the transparency of its rules. But its weakest area is property registration, in which it ranked 15th. -- PHOTO: URA
SINGAPORE has been ranked the world's easiest place to do business - for the fifth year running.
It pipped Hong Kong, New Zealand, Britain and the United States to take top spot in the latest World Bank 'Doing Business' report, published yesterday.
The top 10 spots in the ranking, which is into its eighth year, were largely unchanged from the previous year's report.
Canada moved up from ninth to seventh place, just behind Denmark, pushing Norway and Ireland from seventh and eighth to eighth and ninth place respectively. Australia was ranked 10th.
Singapore's strong performance was attributed to the efficiency of its processes and the transparency of its rules, especially in areas involving technology.
The World Bank uses nine criteria to assess how easy it is to do business, from starting a business to getting credit and trading across borders.
But the report, which surveyed 183 economies, does not take into account factors such as corruption, macroeconomic stability or security.
The World Bank said economies that did well had advanced e-government initiatives. For instance, Singapore has a one-stop online portal for businesses to interact with the Government.
The Republic was No. 1 in terms of ease of cross-border trading, and second in the areas of applying for construction permits, protecting investors and closing a business.
Property registration was Singapore's weakest area, with the World Bank noting that registering property here involves three procedures and takes five days.
It came 15th in this category, up one place from last year, but trailing countries such as Saudi Arabia and Portugal.
Overall, 216 regulatory reforms were implemented by 117 governments. The developing world led the charge, with two-thirds of emerging economies reforming business regulations in the past year.
DBS Bank economist Irvin Seah said while it was unsurprising that Singapore was top again, making it easier to do businesses is still a comparative advantage.
'It is not easy to keep ahead of competitors especially when the region is also liberalising its economies,' he said.
Indeed, South-east Asian countries continued to improve, after many of them had reformed their regulatory processes and introduced electronic systems.
The most-improved South-east Asian countries were Vietnam, which jumped 10 places from 88th to 78th, and Brunei, which climbed five spots to 112nd.
But while it is easy to start and do business in Singapore, firms here said there are several areas of concern.
One is rising rental costs, said Mr Lawrence Leow, president of the Association of Small and Medium Enterprises.
Another is a tightening labour market, especially in the services sector, said the Singapore Chinese Chamber of Commerce and Industry.
Mr Freddy Ong, managing director of logistics firm Worldgreen Shipping, hopes the Government will re-examine the tight quotas on foreign workers.
'It's hard to hire good Singaporeans and the strict quota on foreign workers is a real problem for my company,' he said.
aaronl@sph.com.sg
ST : Home loan applications down
Nov 5, 2010
Home loan applications down
THE Government's measures to cool the property market have sharply cut Singapore home loan applications at DBS bank, chief executive Piyush Gupta said yesterday.
He said local mortgage applications have slumped by 20 per cent to 25 per cent since the steps were introduced on Aug 30.
OCBC Bank CEO David Conner also indicated earlier this week that it has seen a 20 per cent fall in housing loan applications since Aug 30. The cooling measures included a reduction in the amount people with existing mortgages could borrow to buy second properties. Urban Redevelopment Authority data out last month showed private home prices rising just 2.9 per cent in the third quarter - down from the previous quarter's 5.3 per cent. The number of new homes sold by developers fell in the third quarter.
Home loan applications down
THE Government's measures to cool the property market have sharply cut Singapore home loan applications at DBS bank, chief executive Piyush Gupta said yesterday.
He said local mortgage applications have slumped by 20 per cent to 25 per cent since the steps were introduced on Aug 30.
OCBC Bank CEO David Conner also indicated earlier this week that it has seen a 20 per cent fall in housing loan applications since Aug 30. The cooling measures included a reduction in the amount people with existing mortgages could borrow to buy second properties. Urban Redevelopment Authority data out last month showed private home prices rising just 2.9 per cent in the third quarter - down from the previous quarter's 5.3 per cent. The number of new homes sold by developers fell in the third quarter.
Thursday, November 4, 2010
ST : Ten Mile Junction's rail-themed facelift
Nov 3, 2010
Ten Mile Junction's rail-themed facelift
$28m makeover for mall near future Bukit Panjang MRT station; renamed Junction 10, it will be finished by end-2011
By Esther Teo
An artist's impression of the mall on the 99-year leasehold site. Hypermarket Giant will be its anchor tenant, occupying more than 30 per cent of the mall. -- PHOTO: FAR EAST ORGANIZATION
TEN Mile Junction mall is set for a $28 million makeover with a nostalgic railway theme, just as the nearby Malayan Railway line is to become a memory.
Still, plans for the residential and commercial 99-year leasehold site include a link to a modern railway. It is linked to the Ten Mile Junction LRT station and near the future Bukit Panjang MRT station, part of the upcoming Downtown Line 2.
The plans for the site at the junction of Choa Chu Kang Road and Woodlands Road were unveiled by developer Far East Organization yesterday.
The two-storey mall, expected to be completed by the end of next year after addition and alteration works are completed, will be renamed Junction 10, with 92,000 sq ft of net lettable area (NLA), up from 81,000 sq ft before. Unit sizes will range from 400 sq ft to 2,000 sq ft.
The mall's makeover will give it a link to its past as a railway junction by 'marrying modern 21st- century design elements with the nostalgia of railway travel', said Far East. Its decor will feature rail elements like timber sleepers, runners and rivets to give it a 'distinct railway-chic flavour'.
Mr Kelvin Ling, chief operating officer for Far East's retail business group, said that although the site is no longer a junction, it still serves as a meeting point for the LRT network.
It will be a small development that will provide a cosy setting and cater to middle-income earners, mainly young families and professionals, who make up the demographic profile of the area, he added.
Far East's executive director of development and planning Chng Kiong Huat said Junction 10 will be a fusion of Holland Village and its Greenwich V project in Seletar. 'When we did Greenwich V... everything was very green, very open. This is an enclosed Greenwich V; it's air-conditioned and things are much more comfortable. You still have restaurants on the outside,' he said.
Hypermarket Giant has already been secured as an anchor tenant, and will occupy more than 30 per cent of the mall. The remaining space will house retailers such as mid-priced eateries and family and lifestyle outlets, said Far East.
Rental rates will range from $12 per sq ft (psf) to $22 psf per month, it said. Experts say Ten Mile Junction's average rental is now less than $10 psf.
Knight Frank group managing director Danny Yeo said tenants would still bite despite rent increases if the new concept adds value to business.
'It is visible and easily accessible...The residential component and the pull of the hypermarket will also provide a catchment of shoppers,' he said.
Its catchment area is about 381,000 strong, including residents of Bukit Panjang, Upper Bukit Timah, Bukit Batok and Choa Chu Kang, as well as students and professionals from nearby areas.
Far East added that 338 Soho-type (small office, home office) units located above the mall will also be launched in the first quarter of next year. The entire project's construction costs are estimated to be $100 million.
esthert@sph.com.sg
Ten Mile Junction's rail-themed facelift
$28m makeover for mall near future Bukit Panjang MRT station; renamed Junction 10, it will be finished by end-2011
By Esther Teo
An artist's impression of the mall on the 99-year leasehold site. Hypermarket Giant will be its anchor tenant, occupying more than 30 per cent of the mall. -- PHOTO: FAR EAST ORGANIZATION
TEN Mile Junction mall is set for a $28 million makeover with a nostalgic railway theme, just as the nearby Malayan Railway line is to become a memory.
Still, plans for the residential and commercial 99-year leasehold site include a link to a modern railway. It is linked to the Ten Mile Junction LRT station and near the future Bukit Panjang MRT station, part of the upcoming Downtown Line 2.
The plans for the site at the junction of Choa Chu Kang Road and Woodlands Road were unveiled by developer Far East Organization yesterday.
The two-storey mall, expected to be completed by the end of next year after addition and alteration works are completed, will be renamed Junction 10, with 92,000 sq ft of net lettable area (NLA), up from 81,000 sq ft before. Unit sizes will range from 400 sq ft to 2,000 sq ft.
The mall's makeover will give it a link to its past as a railway junction by 'marrying modern 21st- century design elements with the nostalgia of railway travel', said Far East. Its decor will feature rail elements like timber sleepers, runners and rivets to give it a 'distinct railway-chic flavour'.
Mr Kelvin Ling, chief operating officer for Far East's retail business group, said that although the site is no longer a junction, it still serves as a meeting point for the LRT network.
It will be a small development that will provide a cosy setting and cater to middle-income earners, mainly young families and professionals, who make up the demographic profile of the area, he added.
Far East's executive director of development and planning Chng Kiong Huat said Junction 10 will be a fusion of Holland Village and its Greenwich V project in Seletar. 'When we did Greenwich V... everything was very green, very open. This is an enclosed Greenwich V; it's air-conditioned and things are much more comfortable. You still have restaurants on the outside,' he said.
Hypermarket Giant has already been secured as an anchor tenant, and will occupy more than 30 per cent of the mall. The remaining space will house retailers such as mid-priced eateries and family and lifestyle outlets, said Far East.
Rental rates will range from $12 per sq ft (psf) to $22 psf per month, it said. Experts say Ten Mile Junction's average rental is now less than $10 psf.
Knight Frank group managing director Danny Yeo said tenants would still bite despite rent increases if the new concept adds value to business.
'It is visible and easily accessible...The residential component and the pull of the hypermarket will also provide a catchment of shoppers,' he said.
Its catchment area is about 381,000 strong, including residents of Bukit Panjang, Upper Bukit Timah, Bukit Batok and Choa Chu Kang, as well as students and professionals from nearby areas.
Far East added that 338 Soho-type (small office, home office) units located above the mall will also be launched in the first quarter of next year. The entire project's construction costs are estimated to be $100 million.
esthert@sph.com.sg
ST : Condo manager and MCST settle dispute
Nov 4, 2010
JOBS CREDIT MONEY TUSSLE
Condo manager and MCST settle dispute
Both CKH Strata Management and Bayshore Park's MCST claimed to be the rightful employer of 13 site staff working at the condominium. -- ST PHOTO: LIM CHIN PING
THE condominium manager which sued Bayshore Park over a Jobs Credit money dispute has reached a settlement with the management corporation strata title (MCST).
CKH Strata Management, which had initially sued for $55,742 in unpaid management fees, has accepted a sum of $11,000 from the MCST following a pre-trial conference on Oct 27.
A week before that, the condo management company's managing director, Mr Chan Kok Hong, filed a civil suit against his former employers after the condo failed to pay the company its management fees from April to June last year.
In retaliation, Bayshore Park counter-sued for $83,705.
This included $13,917 in Jobs Credit money it claimed was not CKH's to take.
Each claimed to be the 'true employer' of 13 site staff working at the Upper East Coast condo.
The sum also included an amount of $48,778, which the condo wanted for 59 fire-rated doors, saying CKH had overcharged for them in 2008.
Bayshore Park's lawyer, Mr Kevin Kwek, said: 'It was a very good settlement, in favour of the MCST, in the light of the substantial amount that was deducted from what CKH wanted originally.'
But he said the Jobs Credit money dispute remains unresolved as a judgment was not made to determine which party should have the money.
The Jobs Credit scheme was introduced during the economic downturn last year as a quarterly cash payment from the Inland Revenue Authority of Singapore for every Singaporean and permanent resident on a company's Central Provident Fund (CPF) payroll.
The grant was 12 per cent of the first $2,500 of a worker's pay each month, designed to help employers retain their staff.
Mr Chan claimed he was the rightful employer of the condo's 13 site staff, because he decided on their 13th-month bonuses and CPF contributions were made in his company's name.
Bayshore Park claimed otherwise, saying that the management company was at most a facilitator, because the MCST has been paying the salaries and CPF contributions of the site staff.
CKH's lawyer, Mr Michael Low, declined to comment, citing a confidentiality clause in the settlement.
CHERYL ONG
JOBS CREDIT MONEY TUSSLE
Condo manager and MCST settle dispute
Both CKH Strata Management and Bayshore Park's MCST claimed to be the rightful employer of 13 site staff working at the condominium. -- ST PHOTO: LIM CHIN PING
THE condominium manager which sued Bayshore Park over a Jobs Credit money dispute has reached a settlement with the management corporation strata title (MCST).
CKH Strata Management, which had initially sued for $55,742 in unpaid management fees, has accepted a sum of $11,000 from the MCST following a pre-trial conference on Oct 27.
A week before that, the condo management company's managing director, Mr Chan Kok Hong, filed a civil suit against his former employers after the condo failed to pay the company its management fees from April to June last year.
In retaliation, Bayshore Park counter-sued for $83,705.
This included $13,917 in Jobs Credit money it claimed was not CKH's to take.
Each claimed to be the 'true employer' of 13 site staff working at the Upper East Coast condo.
The sum also included an amount of $48,778, which the condo wanted for 59 fire-rated doors, saying CKH had overcharged for them in 2008.
Bayshore Park's lawyer, Mr Kevin Kwek, said: 'It was a very good settlement, in favour of the MCST, in the light of the substantial amount that was deducted from what CKH wanted originally.'
But he said the Jobs Credit money dispute remains unresolved as a judgment was not made to determine which party should have the money.
The Jobs Credit scheme was introduced during the economic downturn last year as a quarterly cash payment from the Inland Revenue Authority of Singapore for every Singaporean and permanent resident on a company's Central Provident Fund (CPF) payroll.
The grant was 12 per cent of the first $2,500 of a worker's pay each month, designed to help employers retain their staff.
Mr Chan claimed he was the rightful employer of the condo's 13 site staff, because he decided on their 13th-month bonuses and CPF contributions were made in his company's name.
Bayshore Park claimed otherwise, saying that the management company was at most a facilitator, because the MCST has been paying the salaries and CPF contributions of the site staff.
CKH's lawyer, Mr Michael Low, declined to comment, citing a confidentiality clause in the settlement.
CHERYL ONG
ST : DBSS site at Bedok Reservoir draws six bids
Nov 3, 2010
DBSS site at Bedok Reservoir draws six bids
THE tender for a land parcel at Bedok Reservoir Crescent, slated for public housing, closed yesterday with six bids received.
CEL Development came out tops with a bid of $112.6 million, or $224.3 per sq ft per plot ratio (psf ppr) for the site, which could yield 430 homes under the Design, Build and Sell Scheme (DBSS). Analysts said the top bid was more subdued than bids in the past.
The second highest bid came from Kwan Hwee Investment, at $109.8 million or $218.7 psf ppr, which was just 3 per cent lower than CEL's. This was followed by a joint bid by Hoi Hup Realty, Sunway Developments and SC Wong Holdings, at $107.2 million or $213.3 psf ppr. At the bottom was a joint bid from United Engineers Developments and Maxdin at $88.2 million, or $175.5 psf ppr.
The site is located about 10 minutes' walk from Bedok Town Park MRT station, which is expected to be completed in 2017.
Mr Nicholas Mak, executive director of SLP International Property Consultants, said the top bid could translate to a break-even cost of about $430-$470 psf. He found the bids varied across a narrower range, compared to the previous tender for a DBSS site at Tampines Avenue 5/Central 8, where the top bid was $261 psf ppr.
But he doubts that the sites left available for sale before the end of the year, at Upper Serangoon Road and Yuan Ching Road, will fetch higher bids.
'They do not enjoy a close proximity to the nearby MRT station compared to this site at Bedok Reservoir Crescent,' he said.
CHERYL ONG
DBSS site at Bedok Reservoir draws six bids
THE tender for a land parcel at Bedok Reservoir Crescent, slated for public housing, closed yesterday with six bids received.
CEL Development came out tops with a bid of $112.6 million, or $224.3 per sq ft per plot ratio (psf ppr) for the site, which could yield 430 homes under the Design, Build and Sell Scheme (DBSS). Analysts said the top bid was more subdued than bids in the past.
The second highest bid came from Kwan Hwee Investment, at $109.8 million or $218.7 psf ppr, which was just 3 per cent lower than CEL's. This was followed by a joint bid by Hoi Hup Realty, Sunway Developments and SC Wong Holdings, at $107.2 million or $213.3 psf ppr. At the bottom was a joint bid from United Engineers Developments and Maxdin at $88.2 million, or $175.5 psf ppr.
The site is located about 10 minutes' walk from Bedok Town Park MRT station, which is expected to be completed in 2017.
Mr Nicholas Mak, executive director of SLP International Property Consultants, said the top bid could translate to a break-even cost of about $430-$470 psf. He found the bids varied across a narrower range, compared to the previous tender for a DBSS site at Tampines Avenue 5/Central 8, where the top bid was $261 psf ppr.
But he doubts that the sites left available for sale before the end of the year, at Upper Serangoon Road and Yuan Ching Road, will fetch higher bids.
'They do not enjoy a close proximity to the nearby MRT station compared to this site at Bedok Reservoir Crescent,' he said.
CHERYL ONG
ST : Weeding out rogue property agents
Nov 3, 2010
Weeding out rogue property agents
IT WILL take a few years before new rules aimed at weeding out rogue property agents drive down the number of complaints, the Consumers Association of Singapore (Case) said yesterday.
Case director Seah Seng Choon made the prediction as it emerged that property agents are among the 10 most-complained-about professions here. A code of conduct for the industry, announced last month, is being enforced by a new statutory body, the Council for Estate Agencies (CEA).
Mr Seah said: 'It'll take a few years for agents and consumers to be more familiar with the rules. That's when I expect the complaints to go down.'
He was speaking at a PropNex Realty convention at Suntec convention centre, where the firm's book, The Ultimate Guide To Real Estate Investment In Singapore, was launched.
Last year, Case received 1,079 complaints against property agents for unsatisfactory service and making misleading claims. This makes the industry the sixth most-complained-about sector. The three most-complained- about sectors last year were timeshare (2,523 cases), beauty (2,060 cases) and education (1,843 cases).
The CEA has the authority to fine, suspend or revoke the licences of property agents who break the rules. From Jan 1, only CEA-registered agents will be allowed to work.
The new code bans agents from representing both buyer and seller, or referring clients to moneylenders. They must also have a system for handling complaints and follow advertising guidelines.
CHERYL ONG
Weeding out rogue property agents
IT WILL take a few years before new rules aimed at weeding out rogue property agents drive down the number of complaints, the Consumers Association of Singapore (Case) said yesterday.
Case director Seah Seng Choon made the prediction as it emerged that property agents are among the 10 most-complained-about professions here. A code of conduct for the industry, announced last month, is being enforced by a new statutory body, the Council for Estate Agencies (CEA).
Mr Seah said: 'It'll take a few years for agents and consumers to be more familiar with the rules. That's when I expect the complaints to go down.'
He was speaking at a PropNex Realty convention at Suntec convention centre, where the firm's book, The Ultimate Guide To Real Estate Investment In Singapore, was launched.
Last year, Case received 1,079 complaints against property agents for unsatisfactory service and making misleading claims. This makes the industry the sixth most-complained-about sector. The three most-complained- about sectors last year were timeshare (2,523 cases), beauty (2,060 cases) and education (1,843 cases).
The CEA has the authority to fine, suspend or revoke the licences of property agents who break the rules. From Jan 1, only CEA-registered agents will be allowed to work.
The new code bans agents from representing both buyer and seller, or referring clients to moneylenders. They must also have a system for handling complaints and follow advertising guidelines.
CHERYL ONG
ST : Govt keeping a close eye on property market
Nov 3, 2010
Govt keeping a close eye on property market
PRIME Minister Lee Hsien Loong said yesterday that the Government is keeping a close eye on the property market to avert the formation of an asset bubble.
Recent measures to cool the market have dampened sentiment, but liquidity is awash in the region, he told news agency Reuters in an interview on the risks facing Singapore.
Mr Lee also vowed to continue to take action if necessary, Reuters reported.
'Our property market has been taking off, which is causing some consternation,' he said.
'We have had a series of measures to squelch the property market, but liquidity is awash, sloshing around the whole region.
'We are watching carefully. The last set of measures were announced at the end of August, they seem to have dampened sentiment some, but we will have to watch and see.'
The latest Government measures to stem overheating include reducing the maximum loan for buying a second residential property, imposing stamp duty on owners who sell properties within three years of buying them and tighter restrictions on those buying HDB resale flats.
As for Singapore's future, Mr Lee said it could define itself as one of the world's most attractive global financial centres with a less reactive approach to currently emotional issues like regulation.
He noted the swift legislative responses to the financial crisis in countries such as the United States and Britain, saying: 'We want to maintain a system where there are adequate safeguards, but at the same time, the basic principle is free market and caveat emptor (buyer beware).'
He added: 'We are trying to be stable.
'I don't say that we are consciously less volatile than others, but I think it is good for us if we can maintain a stable long-term perspective and rise above the immediate pressures of the crisis at the moment.'
Mr Lee also touched on relations between the United States and China.
He said Singapore needed both countries to work out their differences to ensure prosperity.
'If that turns sour, a lot of things can go wrong,' he said, noting that the mood towards China was quite sour on the ground in the US.
'And not just among the unions and the Democratic (Party) left wing, but even the corporates, the businessmen.'
Mr Lee said he was worried that short-term thinking could lead to bad decisions.
'Nobody is speaking up to say 'please manage this with a long-term perspective',' he said.
But he was optimistic about the eventual health and development of both major powers' economies, even though both needed many years of transformation.
Beijing, he noted, required fundamental structural change to drive more domestic demand and investment.
'It is not going to happen overnight, but over 10 years, I see change,' he said.
The US needed to transcend the difficulties of domestic partisan politics to take tough decisions on fiscal policy.
'If you look at it on a five-year timeframe, you can't help being worried, but if you look at it in a 20-year timeframe, you say of all the economies in the world, the Americans are the ones most capable of re-inventing themselves,' Mr Lee said.
--------------------------------------------------------------------------------
WATCH AND SEE
'Our property market has been taking off, which is causing some consternation. We have had a series of measures to squelch the property market, but liquidity is awash, sloshing around the whole region...We are watching carefully. The last set of measures were announced at the end of August, they seem to have dampened sentiment some, but we will have to watch and see.'
Prime Minister Lee Hsien Loong
Govt keeping a close eye on property market
PRIME Minister Lee Hsien Loong said yesterday that the Government is keeping a close eye on the property market to avert the formation of an asset bubble.
Recent measures to cool the market have dampened sentiment, but liquidity is awash in the region, he told news agency Reuters in an interview on the risks facing Singapore.
Mr Lee also vowed to continue to take action if necessary, Reuters reported.
'Our property market has been taking off, which is causing some consternation,' he said.
'We have had a series of measures to squelch the property market, but liquidity is awash, sloshing around the whole region.
'We are watching carefully. The last set of measures were announced at the end of August, they seem to have dampened sentiment some, but we will have to watch and see.'
The latest Government measures to stem overheating include reducing the maximum loan for buying a second residential property, imposing stamp duty on owners who sell properties within three years of buying them and tighter restrictions on those buying HDB resale flats.
As for Singapore's future, Mr Lee said it could define itself as one of the world's most attractive global financial centres with a less reactive approach to currently emotional issues like regulation.
He noted the swift legislative responses to the financial crisis in countries such as the United States and Britain, saying: 'We want to maintain a system where there are adequate safeguards, but at the same time, the basic principle is free market and caveat emptor (buyer beware).'
He added: 'We are trying to be stable.
'I don't say that we are consciously less volatile than others, but I think it is good for us if we can maintain a stable long-term perspective and rise above the immediate pressures of the crisis at the moment.'
Mr Lee also touched on relations between the United States and China.
He said Singapore needed both countries to work out their differences to ensure prosperity.
'If that turns sour, a lot of things can go wrong,' he said, noting that the mood towards China was quite sour on the ground in the US.
'And not just among the unions and the Democratic (Party) left wing, but even the corporates, the businessmen.'
Mr Lee said he was worried that short-term thinking could lead to bad decisions.
'Nobody is speaking up to say 'please manage this with a long-term perspective',' he said.
But he was optimistic about the eventual health and development of both major powers' economies, even though both needed many years of transformation.
Beijing, he noted, required fundamental structural change to drive more domestic demand and investment.
'It is not going to happen overnight, but over 10 years, I see change,' he said.
The US needed to transcend the difficulties of domestic partisan politics to take tough decisions on fiscal policy.
'If you look at it on a five-year timeframe, you can't help being worried, but if you look at it in a 20-year timeframe, you say of all the economies in the world, the Americans are the ones most capable of re-inventing themselves,' Mr Lee said.
--------------------------------------------------------------------------------
WATCH AND SEE
'Our property market has been taking off, which is causing some consternation. We have had a series of measures to squelch the property market, but liquidity is awash, sloshing around the whole region...We are watching carefully. The last set of measures were announced at the end of August, they seem to have dampened sentiment some, but we will have to watch and see.'
Prime Minister Lee Hsien Loong
BT : Chip Eng Seng tops bid for DBSS site in Bedok
Business Times - 03 Nov 2010
Chip Eng Seng tops bid for DBSS site in Bedok
By EMILYN YAP
CHIP Eng Seng Corporation yesterday put in the highest bid for a public housing site at Bedok Reservoir Crescent.
The tender for the site - launched by the Housing & Development Board under the design, build and sell scheme (DBSS) - closed yesterday. Chip Eng Seng beat five other participants with a bid of $112.69 million or $224 per square foot per plot ratio (psf ppr).
The second highest bidder was Kwan Hwee Investment, linked to Low Keng Huat (Singapore). Its offer was $109.89 million or $219 psf ppr - just 2.5 per cent below Chip Eng Seng's.
Other developers which took part in the tender included Hoi Hup Realty, in partnership with Sunway Developments and SC Wong Holdings; Sim Lian Land; and a unit of Ho Lee Group.
A joint venture between United Engineers Developments and Maxdin Pte Ltd submitted the lowest bid of $88.2 million or $176 psf ppr.
This DBSS project will be Chip Eng Seng's first. The plot measures 179,400 sq ft, has a maximum gross floor area of 502,400 sq ft, and carries a lease term of 103 years (which takes into account a two-year construction period).
HDB estimates that 430 units can be built on the site. The estate will be between two green lungs - Bedok Reservoir Park and Bedok Town Park. In the vicinity, the new Bedok Town Park MRT station on Downtown Line 3 will be completed in 2017.
SLP International Property Consultants executive director Nicholas Mak estimates that Chip Eng Seng's bid could translate to a breakeven cost of about $430-470 psf.
A five-room flat in the project could be launched at about $590,000-620,000, he added.
Chip Eng Seng closed unchanged on the stock market yesterday at 40 cents.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Chip Eng Seng tops bid for DBSS site in Bedok
By EMILYN YAP
CHIP Eng Seng Corporation yesterday put in the highest bid for a public housing site at Bedok Reservoir Crescent.
The tender for the site - launched by the Housing & Development Board under the design, build and sell scheme (DBSS) - closed yesterday. Chip Eng Seng beat five other participants with a bid of $112.69 million or $224 per square foot per plot ratio (psf ppr).
The second highest bidder was Kwan Hwee Investment, linked to Low Keng Huat (Singapore). Its offer was $109.89 million or $219 psf ppr - just 2.5 per cent below Chip Eng Seng's.
Other developers which took part in the tender included Hoi Hup Realty, in partnership with Sunway Developments and SC Wong Holdings; Sim Lian Land; and a unit of Ho Lee Group.
A joint venture between United Engineers Developments and Maxdin Pte Ltd submitted the lowest bid of $88.2 million or $176 psf ppr.
This DBSS project will be Chip Eng Seng's first. The plot measures 179,400 sq ft, has a maximum gross floor area of 502,400 sq ft, and carries a lease term of 103 years (which takes into account a two-year construction period).
HDB estimates that 430 units can be built on the site. The estate will be between two green lungs - Bedok Reservoir Park and Bedok Town Park. In the vicinity, the new Bedok Town Park MRT station on Downtown Line 3 will be completed in 2017.
SLP International Property Consultants executive director Nicholas Mak estimates that Chip Eng Seng's bid could translate to a breakeven cost of about $430-470 psf.
A five-room flat in the project could be launched at about $590,000-620,000, he added.
Chip Eng Seng closed unchanged on the stock market yesterday at 40 cents.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Land swop deal talks this month
Nov 2, 2010
Land swop deal talks this month
KUALA LUMPUR: Singapore and Malaysia officials will meet at the end of this month to continue working out details of a breakthrough land swop deal involving Malayan Railway land.
The meetings - the fourth in a series - will be held in Singapore, Deputy Foreign Minister Richard Riot told MPs in a Parliament session yesterday.
The Nov 29-30 meeting of the Malaysia-Singapore Joint Implementation Team, he said, would continue talks on the moving of the train station from Tanjong Pagar to Woodlands, setting up of a Customs, immigration and quarantine complex in Woodlands, and the setting up of M-S Pte Ltd. Both countries had agreed to set up this joint venture to develop six land parcels in Ophir-Rochor and Marina South involved in the land swop. Mr Riot noted the meetings would culminate in the signing of an agreement in Kuala Lumpur on Dec 31.
Both countries have noted that past meetings of the joint implementation team had proved successful. Yesterday, Mr Riot also stressed that the bilateral relationship was improving: 'The frequent visits between top leaders in both countries have contributed to strengthening the relationship. Such exchanges help increase cooperation and foster closer diplomatic and economic ties for mutual benefit.'
BERNAMA, THE STAR/ASIA NEWS NETWORK
Land swop deal talks this month
KUALA LUMPUR: Singapore and Malaysia officials will meet at the end of this month to continue working out details of a breakthrough land swop deal involving Malayan Railway land.
The meetings - the fourth in a series - will be held in Singapore, Deputy Foreign Minister Richard Riot told MPs in a Parliament session yesterday.
The Nov 29-30 meeting of the Malaysia-Singapore Joint Implementation Team, he said, would continue talks on the moving of the train station from Tanjong Pagar to Woodlands, setting up of a Customs, immigration and quarantine complex in Woodlands, and the setting up of M-S Pte Ltd. Both countries had agreed to set up this joint venture to develop six land parcels in Ophir-Rochor and Marina South involved in the land swop. Mr Riot noted the meetings would culminate in the signing of an agreement in Kuala Lumpur on Dec 31.
Both countries have noted that past meetings of the joint implementation team had proved successful. Yesterday, Mr Riot also stressed that the bilateral relationship was improving: 'The frequent visits between top leaders in both countries have contributed to strengthening the relationship. Such exchanges help increase cooperation and foster closer diplomatic and economic ties for mutual benefit.'
BERNAMA, THE STAR/ASIA NEWS NETWORK
ST : URA to call tender for Tanjong Pagar site
Nov 2, 2010
URA to call tender for Tanjong Pagar site
By Aaron Low
A HOTEL site in Tanjong Pagar, at the junction of Peck Seah Street and Gopeng Street, will be put up for sale by public tender in two weeks.
The Urban Redevelopment Authority said yesterday that an unnamed party has put in a bid of $94 million for the 0.23ha site, thereby triggering the tender process.
The 99-year leasehold site in the Central Business District is within walking distance of the Tanjong Pagar MRT station. It can yield a maximum gross floor area of about 208,992 sq ft and can be built up to 30 storeys.
A hotel on the site would do well mainly because there is a lack of quality four-star hotels in the CBD, said Mr Donald Han, managing director of real estate consultancy Cushman & Wakefield.
He expects bids to come in at between $650 and $750 per sq ft per plot ratio (psf ppr). The trigger bid was $450 psf ppr.
The Tanjong Pagar site has been on the Government's reserve list since February 2008.
Under this list of development sites, a site will be put up for tender only after a developer commits to a bid that reaches a minimum level set by the Government.
Mr Han said that the business convention sector is recovering well and noted that the Amara Singapore Hotel, which is situated nearby, is also doing well.
URA said: 'The successful sale and ongoing development of several new office high-rise residential and hotel sites in the area will further enhance the vibrancy and activities of the Tanjong Pagar commercial district.'
Separately, Asimont@Barker has been launched for collective sale at a reserve price of $68 million.
The 20-year-old, freehold low-rise condominium is situated off Barker Road near Anglo-Chinese School (Barker). It was first put up for collective sale in February 2008, several months before the global financial crisis broke out.
The owners then had set a reserve price of $75 million but did not manage to attract a single bid.
The site has an area of about 43,138 sq ft and with its new reserve price of $68 million, this works out to be about $1,175 psf ppr.
The marketing agent for the collective sale is Realtorhub Real Estate.
URA to call tender for Tanjong Pagar site
By Aaron Low
A HOTEL site in Tanjong Pagar, at the junction of Peck Seah Street and Gopeng Street, will be put up for sale by public tender in two weeks.
The Urban Redevelopment Authority said yesterday that an unnamed party has put in a bid of $94 million for the 0.23ha site, thereby triggering the tender process.
The 99-year leasehold site in the Central Business District is within walking distance of the Tanjong Pagar MRT station. It can yield a maximum gross floor area of about 208,992 sq ft and can be built up to 30 storeys.
A hotel on the site would do well mainly because there is a lack of quality four-star hotels in the CBD, said Mr Donald Han, managing director of real estate consultancy Cushman & Wakefield.
He expects bids to come in at between $650 and $750 per sq ft per plot ratio (psf ppr). The trigger bid was $450 psf ppr.
The Tanjong Pagar site has been on the Government's reserve list since February 2008.
Under this list of development sites, a site will be put up for tender only after a developer commits to a bid that reaches a minimum level set by the Government.
Mr Han said that the business convention sector is recovering well and noted that the Amara Singapore Hotel, which is situated nearby, is also doing well.
URA said: 'The successful sale and ongoing development of several new office high-rise residential and hotel sites in the area will further enhance the vibrancy and activities of the Tanjong Pagar commercial district.'
Separately, Asimont@Barker has been launched for collective sale at a reserve price of $68 million.
The 20-year-old, freehold low-rise condominium is situated off Barker Road near Anglo-Chinese School (Barker). It was first put up for collective sale in February 2008, several months before the global financial crisis broke out.
The owners then had set a reserve price of $75 million but did not manage to attract a single bid.
The site has an area of about 43,138 sq ft and with its new reserve price of $68 million, this works out to be about $1,175 psf ppr.
The marketing agent for the collective sale is Realtorhub Real Estate.
ST : Luxury home market sees good sales
Nov 2, 2010
Luxury home market sees good sales
Demand buoyed by low interest rates and potential for upside
By Esther Teo
About 75 per cent of 150 units at The Glyndebourne were snapped up at an average price of $2,100 per sq ft during a private preview which began last Friday. -- PHOTO: CITY DEVELOPMENTS
BUYERS appear to be returning to the high-end housing market, with strong sales at a string of recent luxury projects.
City Developments' (CDL) freehold project The Glyndebourne saw 112 apartments - or about 75 per cent - of the 150 units snapped up during a private preview which began last Friday.
The apartments - housed in eight blocks of five storeys each - were sold at an average price of $2,100 per sq ft (psf).
However, prices ranged from $1,900 psf to $2,350 psf, ranging from about $1.59 million for a one-bedroom plus study unit to about $7.15 million for a five-bedroom penthouse, CDL said.
The project - located on the Copthorne Orchid Hotel site - saw all one-bedroom with study, two-bedroom, and three-bedroom with study units sold. CDL said that 10 out of the 23 penthouses, which ranged from 3,541 sq ft to 3,563 sq ft, were also snapped up.
Seventy per cent of the buyers were local, with permanent residents and foreigners from countries such as Malaysia, Indonesia, South Korea and China making up the remaining 30 per cent.
CDL said that it had initially planned to release just 60 units in phase one of the preview. However, 'to cater to the strong demand', the firm released additional units progressively. It is managing the marketing of the condo on behalf of its hotel unit Millennium & Copthorne Hotels, which owns the hotel.
This strong performance comes on the back of similarly strong sales at Allgreen Properties' 118-unit Suites at Orchard. In the first two days after it went on sale last month, about 65 apartments were sold in the $2,000 to $2,200 psf range.
SC Global also sold a penthouse last month at The Boulevard Residence for $30 million, or $4,242 psf. Both in terms of the total price and the price psf, this is the highest achieved in the development.
Experts said that high-end homes have done well because of the low interest rate environment and the fact that luxury segment prices have yet to surpass their previous peak. There is also plenty of liquidity still in the market, they added.
Cushman & Wakefield managing director Donald Han said that high-end prices are about 12 per cent lower than their peak in the first quarter of 2008, providing investors, who were looking to park their money in good and stable investments, with the potential for upside.
It is the only segment of the property market here that has yet to surpass its previous price peak.
'The bottom line is that, as interest rates remain at historic lows, investors are looking for good opportunities and compelling buys to park their money,' he added.
A UOB Kay Hian report said that it expects high-end segment projects to do well in the coming months.
'They offer relatively better value compared to other segments and are well supported by lower interest rates and liquidity inflows,' it added.
Far East Organization also sold 30 units across its portfolio last week, including sales at Waterfront Gold in the Bedok Reservoir area; Vista Residences off Thomson Road; The Shore Residences in the Katong area; The Greenwich in Seletar Road; and Silversea in the East Coast area.
The firm will be officially launching the 214-unit The Lanai - which consists of two-, three- and four-bedroom units that range from 947 sq ft to 1,615 sq ft - along Hillview Avenue this weekend.
The 999-year leasehold project has already sold 76 units at a preview last month, which included a bulk purchase, with prices starting from $1,290 psf.
Industry players also said that several other high-end launches, such as Robinson Suites, Spottiswoode Residences and Helios Residences, might be launched soon.
They added that the launch of CapitaLand's former Farrer Court site, with more than 1,700 units, will also give further indications on the momentum in the high-end segment.
esthert@sph.com.sg
--------------------------------------------------------------------------------
MONEY TO BE MADE
'The bottom line is that as interest rates remain at historic lows, investors are looking for good opportunities and compelling buys to park their money.'
Mr Donald Han, Cushman & Wakefield managing director
Luxury home market sees good sales
Demand buoyed by low interest rates and potential for upside
By Esther Teo
About 75 per cent of 150 units at The Glyndebourne were snapped up at an average price of $2,100 per sq ft during a private preview which began last Friday. -- PHOTO: CITY DEVELOPMENTS
BUYERS appear to be returning to the high-end housing market, with strong sales at a string of recent luxury projects.
City Developments' (CDL) freehold project The Glyndebourne saw 112 apartments - or about 75 per cent - of the 150 units snapped up during a private preview which began last Friday.
The apartments - housed in eight blocks of five storeys each - were sold at an average price of $2,100 per sq ft (psf).
However, prices ranged from $1,900 psf to $2,350 psf, ranging from about $1.59 million for a one-bedroom plus study unit to about $7.15 million for a five-bedroom penthouse, CDL said.
The project - located on the Copthorne Orchid Hotel site - saw all one-bedroom with study, two-bedroom, and three-bedroom with study units sold. CDL said that 10 out of the 23 penthouses, which ranged from 3,541 sq ft to 3,563 sq ft, were also snapped up.
Seventy per cent of the buyers were local, with permanent residents and foreigners from countries such as Malaysia, Indonesia, South Korea and China making up the remaining 30 per cent.
CDL said that it had initially planned to release just 60 units in phase one of the preview. However, 'to cater to the strong demand', the firm released additional units progressively. It is managing the marketing of the condo on behalf of its hotel unit Millennium & Copthorne Hotels, which owns the hotel.
This strong performance comes on the back of similarly strong sales at Allgreen Properties' 118-unit Suites at Orchard. In the first two days after it went on sale last month, about 65 apartments were sold in the $2,000 to $2,200 psf range.
SC Global also sold a penthouse last month at The Boulevard Residence for $30 million, or $4,242 psf. Both in terms of the total price and the price psf, this is the highest achieved in the development.
Experts said that high-end homes have done well because of the low interest rate environment and the fact that luxury segment prices have yet to surpass their previous peak. There is also plenty of liquidity still in the market, they added.
Cushman & Wakefield managing director Donald Han said that high-end prices are about 12 per cent lower than their peak in the first quarter of 2008, providing investors, who were looking to park their money in good and stable investments, with the potential for upside.
It is the only segment of the property market here that has yet to surpass its previous price peak.
'The bottom line is that, as interest rates remain at historic lows, investors are looking for good opportunities and compelling buys to park their money,' he added.
A UOB Kay Hian report said that it expects high-end segment projects to do well in the coming months.
'They offer relatively better value compared to other segments and are well supported by lower interest rates and liquidity inflows,' it added.
Far East Organization also sold 30 units across its portfolio last week, including sales at Waterfront Gold in the Bedok Reservoir area; Vista Residences off Thomson Road; The Shore Residences in the Katong area; The Greenwich in Seletar Road; and Silversea in the East Coast area.
The firm will be officially launching the 214-unit The Lanai - which consists of two-, three- and four-bedroom units that range from 947 sq ft to 1,615 sq ft - along Hillview Avenue this weekend.
The 999-year leasehold project has already sold 76 units at a preview last month, which included a bulk purchase, with prices starting from $1,290 psf.
Industry players also said that several other high-end launches, such as Robinson Suites, Spottiswoode Residences and Helios Residences, might be launched soon.
They added that the launch of CapitaLand's former Farrer Court site, with more than 1,700 units, will also give further indications on the momentum in the high-end segment.
esthert@sph.com.sg
--------------------------------------------------------------------------------
MONEY TO BE MADE
'The bottom line is that as interest rates remain at historic lows, investors are looking for good opportunities and compelling buys to park their money.'
Mr Donald Han, Cushman & Wakefield managing director
ST : Surprise as 32,800 estate agents make cut
Oct 30, 2010
Surprise as 32,800 estate agents make cut
By Cheryl Ong
MORE than 32,000 property agents have met the minimum requirements for accreditation, despite the criteria being raised this year.
Enforcement by the Council for Estate Agencies (CEA), a new regulatory body, had been expected to root out a third of the 30,000 property agents thought to be practising here. So it has surprised the industry that 32,800 agents met the new, stricter requirements that kicked in a week ago, the CEA said yesterday.
A preliminary breakdown indicates that 70 per cent of those who made the cut had passed the industry exam; the rest did so by making at least three transactions in the last two years.
The statutory board, set up this year, required all estate agents to register with it by Nov 30. It will also require them to sit examinations and to stick to a code of ethics, failing which they and their agencies could be fined, suspended or have their licences revoked.
These moves follow growing complaints against property agents, and the need for some policing of the largely fragmented and self-regulating industry through mandatory licensing.
PropNex chief executive Mohamed Ismail said the surprisingly high number of agents who qualified for accreditation showed the actual number of agents here had been underestimated. 'All this while, we were groping in the dark. It really shows how badly the industry needs regulation,' he said.
But industry observers expect the number of agents to fall, with two more rounds of 'culling' coming before the year end.
The first of these is the Nov 30 deadline to register with the CEA. The other source of attrition will come from those with fraud convictions possibly not being cleared to practise. This is unlike the existing voluntary accreditation scheme, which lets agents rejoin the industry after their jail terms.
Dennis Wee Group director Chris Koh estimates the final tally of agents to be 25,000 by the year end.
Yesterday, the CEA listed the new rules effective from Nov 15: From that day, agents cannot represent both buyer and seller, or refer clients to moneylenders. Agencies must also have a system for handling complaints and follow advertising guidelines.
From Jan 1, only CEA-registered agents can work, and they must be covered by indemnity insurance.
Said Jurong GRC MP Halimah Yacob: 'You expect standards in every profession... If a property agent considers himself a professional, he should welcome the rules and regulations.'
ERA agent Shirley Chan, 65, said the rules are strict but necessary. 'The regulations make it clearer to us what behaviour flouts the rules, and makes us accountable for our actions,' she said
Surprise as 32,800 estate agents make cut
By Cheryl Ong
MORE than 32,000 property agents have met the minimum requirements for accreditation, despite the criteria being raised this year.
Enforcement by the Council for Estate Agencies (CEA), a new regulatory body, had been expected to root out a third of the 30,000 property agents thought to be practising here. So it has surprised the industry that 32,800 agents met the new, stricter requirements that kicked in a week ago, the CEA said yesterday.
A preliminary breakdown indicates that 70 per cent of those who made the cut had passed the industry exam; the rest did so by making at least three transactions in the last two years.
The statutory board, set up this year, required all estate agents to register with it by Nov 30. It will also require them to sit examinations and to stick to a code of ethics, failing which they and their agencies could be fined, suspended or have their licences revoked.
These moves follow growing complaints against property agents, and the need for some policing of the largely fragmented and self-regulating industry through mandatory licensing.
PropNex chief executive Mohamed Ismail said the surprisingly high number of agents who qualified for accreditation showed the actual number of agents here had been underestimated. 'All this while, we were groping in the dark. It really shows how badly the industry needs regulation,' he said.
But industry observers expect the number of agents to fall, with two more rounds of 'culling' coming before the year end.
The first of these is the Nov 30 deadline to register with the CEA. The other source of attrition will come from those with fraud convictions possibly not being cleared to practise. This is unlike the existing voluntary accreditation scheme, which lets agents rejoin the industry after their jail terms.
Dennis Wee Group director Chris Koh estimates the final tally of agents to be 25,000 by the year end.
Yesterday, the CEA listed the new rules effective from Nov 15: From that day, agents cannot represent both buyer and seller, or refer clients to moneylenders. Agencies must also have a system for handling complaints and follow advertising guidelines.
From Jan 1, only CEA-registered agents can work, and they must be covered by indemnity insurance.
Said Jurong GRC MP Halimah Yacob: 'You expect standards in every profession... If a property agent considers himself a professional, he should welcome the rules and regulations.'
ERA agent Shirley Chan, 65, said the rules are strict but necessary. 'The regulations make it clearer to us what behaviour flouts the rules, and makes us accountable for our actions,' she said
ST : Record bids for Sembawang land
Oct 29, 2010
Record bids for Sembawang land
Fourteen plots hotly contested, with 97 bidders registered
By Esther Teo
BIDDING was fast and furious yesterday as 14 land parcels along Sembawang Road earmarked for landed homes sold for $134.55 million, with prices hovering at record highs for the area. The hotly contested sites attracted an average of 50 bids each.
Analysts say a key factor for the keen interest was newly introduced flexible guidelines on building designs.
For instance, basements may protrude above the ground to let in more light.
Nine of the land parcels are being pilot-tested for the modified set of landed housing guidelines.
The auction by the Urban Redevelopment Authority (URA) of Phase Three of Sembawang Greenvale - right on the Johor Straits - attracted strong interest, mostly from smaller developers and individuals who turned up at the URA Centre in Maxwell Road.
A total of 97 bidders registered, more than six times that for the auction held for Phase Two in April 2008, which drew only 16 bidders.
Prices of the latest plots were $546 per sq ft (psf) of land area on average - more than double the previous phase's average of $223 psf, testament to the strong landed housing recovery.
The URA sold another 12 plots in nearby Phase One in October 2007 for about $285 psf on average.
The 99-year-leasehold plots - able to yield about 115 landed homes - include individual bungalow lots, small streetblock parcels each able to yield four to 17 terrace and semi-detached houses, and one parcel for a strata landed housing development.
Boutique property developer JBE Holdings, whose projects include Luxe Ville at Pasir Panjang Road and The Luxe at Handy Road, emerged tops, sweeping five sites - able to yield 39 terraces - for $43.35 million, or at $514 psf.
However, it also lodged the lowest winning bid of $443 psf, which worked out to a $7.16 million bid, for a 1,500sqm site on Penaga Place. The plot is able to yield six terrace units.
Fragrance Homes clinched the largest 3,796sqm site on Wak Hassan Drive, which can be developed into strata-landed or landed housing, for $26.15 million - a whopping $640 psf, the highest psf price.
Other successful bidders include Goodland Homes, MCS Development, Techcom Construction and Trading, and Sunway Developments.
However, the high prices also meant that some potential property investors went away empty-handed.
BuildTech Construction's W.P. Lim said he decided to try his hand at the auction as prices in the landed homes segment have skyrocketed in the past year. 'I was hoping to be able to develop some of the smaller sites to get some margins but prices are too high now, they are double that of the last round,' he said.
Experts say that the pent-up demand for landed homes, coupled with the limited supply, contributed to the strong bidding.
SLP International Property Consultants executive director Nicholas Mak that with the average price of landed properties rising by some 25 per cent since April 2008, developers are very confident of the landed housing market next year.
'Another factor that contributed to the fierce bidding today is the new...development guideline for landed housing, which allows the developer greater flexibility in the design and development, and possibly some cost saving as well,' he added.
Under the new guidelines, the URA will fix only the overall size of the house and do away with guidelines on internal features. Architects will gain more leeway in terms of the building's interior dimensions.
For instance, existing guidelines for the sites will be relaxed so homes built there can be four storeys, up from a limit of three now. Other options include loftier living rooms and more compact bedrooms.
According to URA data, landed home prices have surged by 24 per cent since the start of this year.
esthert@sph.com.sg
Record bids for Sembawang land
Fourteen plots hotly contested, with 97 bidders registered
By Esther Teo
BIDDING was fast and furious yesterday as 14 land parcels along Sembawang Road earmarked for landed homes sold for $134.55 million, with prices hovering at record highs for the area. The hotly contested sites attracted an average of 50 bids each.
Analysts say a key factor for the keen interest was newly introduced flexible guidelines on building designs.
For instance, basements may protrude above the ground to let in more light.
Nine of the land parcels are being pilot-tested for the modified set of landed housing guidelines.
The auction by the Urban Redevelopment Authority (URA) of Phase Three of Sembawang Greenvale - right on the Johor Straits - attracted strong interest, mostly from smaller developers and individuals who turned up at the URA Centre in Maxwell Road.
A total of 97 bidders registered, more than six times that for the auction held for Phase Two in April 2008, which drew only 16 bidders.
Prices of the latest plots were $546 per sq ft (psf) of land area on average - more than double the previous phase's average of $223 psf, testament to the strong landed housing recovery.
The URA sold another 12 plots in nearby Phase One in October 2007 for about $285 psf on average.
The 99-year-leasehold plots - able to yield about 115 landed homes - include individual bungalow lots, small streetblock parcels each able to yield four to 17 terrace and semi-detached houses, and one parcel for a strata landed housing development.
Boutique property developer JBE Holdings, whose projects include Luxe Ville at Pasir Panjang Road and The Luxe at Handy Road, emerged tops, sweeping five sites - able to yield 39 terraces - for $43.35 million, or at $514 psf.
However, it also lodged the lowest winning bid of $443 psf, which worked out to a $7.16 million bid, for a 1,500sqm site on Penaga Place. The plot is able to yield six terrace units.
Fragrance Homes clinched the largest 3,796sqm site on Wak Hassan Drive, which can be developed into strata-landed or landed housing, for $26.15 million - a whopping $640 psf, the highest psf price.
Other successful bidders include Goodland Homes, MCS Development, Techcom Construction and Trading, and Sunway Developments.
However, the high prices also meant that some potential property investors went away empty-handed.
BuildTech Construction's W.P. Lim said he decided to try his hand at the auction as prices in the landed homes segment have skyrocketed in the past year. 'I was hoping to be able to develop some of the smaller sites to get some margins but prices are too high now, they are double that of the last round,' he said.
Experts say that the pent-up demand for landed homes, coupled with the limited supply, contributed to the strong bidding.
SLP International Property Consultants executive director Nicholas Mak that with the average price of landed properties rising by some 25 per cent since April 2008, developers are very confident of the landed housing market next year.
'Another factor that contributed to the fierce bidding today is the new...development guideline for landed housing, which allows the developer greater flexibility in the design and development, and possibly some cost saving as well,' he added.
Under the new guidelines, the URA will fix only the overall size of the house and do away with guidelines on internal features. Architects will gain more leeway in terms of the building's interior dimensions.
For instance, existing guidelines for the sites will be relaxed so homes built there can be four storeys, up from a limit of three now. Other options include loftier living rooms and more compact bedrooms.
According to URA data, landed home prices have surged by 24 per cent since the start of this year.
esthert@sph.com.sg
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