28 Jan 2011,
Hot property
57% jump in commercial real estate transactions last year with sales more than doubling to $2.5 billion
By Esther Teo
INVESTORS streamed back into the commercial property market last year on the back of the economic rebound and the improving rents it brought.
A new report said the number of transactions of strata-titled commercial real estate - shops, shophouses and offices - jumped 57 per cent to 1,219 last year over a muted 2009.
The total value of sales more than doubled to $2.5 billion.
But the robust figures are still well below the record 1,849 transactions totalling $8.7 billion that took place in the boom year of 2007.
Experts say investors favour strata-titled units because they are a relatively cheap way to enter the commercial market and are not affected by the Government's recent cooling measures. Estimated rental yields of between 4 per cent and 6 per cent - trumping the residential sector's 3 per cent - have spurred interest as well.
Offices were the star performer last year with transactions up 85 per cent over 2009 to 387 while their total value rocketed 165 per cent to $850 million.
Knight Frank's data showed that most transactions were between $1 million and $2 million.
These comprised units from $1,500 to $2,000 per sq ft (psf) and typically less than 1,000 sq ft in buildings such as The Central and International Plaza, the report noted.
Ms Mary Sai, Knight Frank's executive director and head of auction (commercial), said the number of units sold to foreigners last year jumped 130 per cent.
'(This is) not surprising as the number of foreigners in Singapore has increased over the year and residential prices have also achieved new record highs,' she said.
Strata-titled shops also performed well with the value of sales up 92 per cent to $533 million while transaction numbers surged 58 per cent to 484.
Most were priced under $1 million and are the sort of unit found in buildings like Bukit Timah Shopping Centre, People's Park Complex and Golden Mile Complex.
But sales of units between $1 million and $1.9 million recorded the fastest growth.
These shops are typically found in central areas with plenty of passers-by or in malls like Sim Lim Square or Holland Road Shopping Centre that have affluent neighbourhoods within striking distance.
Shophouses were also popular last year with 348 transactions worth $1.1 billion, up from 262 sales totalling $611 million in 2009.
Most sales were between $1 million and $5 million and in areas such as Boat Quay, Chinatown and Tanjong Pagar.
'Shophouses in these areas are popular because of their limited supply, good lettability, strong demand from food and beverage tenants and potential capital appreciation for freehold properties,' said Ms Sai.
Joo Chiat Road was the most popular street for shophouses with 22 transactions, while Duxton Road and Geylang Road also attracted buyers.
Property developer Far East Organization said industrial properties and offices are attracting growing interest as they are exempt from the cooling measures.
Knight Frank said the outlook remains bright thanks to the sound economy while the new residential cooling measures are likely to continue diverting investors to commercial units.
esthert@sph.com.sg
Thursday, February 10, 2011
ST : Banks roll out flexible home loans
27 Jan 2011,
Banks roll out flexible home loans
They offer up to 60% financing, raising it to 80% later to help those hit by new rules
By Jessica Cheam
BANKS here are providing an unprecedented degree of flexibility when granting loans to home buyers who are moving from one home to another.
They are agreeing to grant loans of up to 60 per cent of the property's value first, and raising them to 80 per cent later.
The move is helping property upgraders save time and money as they navigate tricky timelines created by new property financing rules first introduced last August.
To recap, the rules stipulate that home owners with an existing home loan can obtain only 70 per cent financing for a second home they wish to buy. The limit was reduced further to 60 per cent this month. The usual loan limit is 80 per cent.
This makes it hard for home buyers, particularly those in the Housing Board market, who simply want to move from one property to another. They now have to prove they have sold their existing flat before qualifying for 80 per cent financing.
The problem is that the proof of sale is a letter of approval from the HDB, which is issued two weeks after what is known as the 'first appointment'. This appointment, part of the HDB buying process, takes place six to eight weeks from when the deal is struck.
What this means is that an HDB upgrader or downgrader would have to sell his unit first and wait about two months before he can get 80 per cent financing from a bank for his next home. Otherwise, he will get only 60 per cent.
Logistically, he will also have to move out of his existing flat way before he can move into his new one.
This has translated to hundreds of property buyers moving to an interim location. Some even ask for an extension of stay at their existing homes beyond the legal completion of the sale, which is technically illegal under HDB rules.
Most banks here say they are prepared to grant these buyers 60 per cent financing on a new home, and then restructuring the loan to 80 per cent financing when the buyer proves he has sold his home.
HSBC personal financing services head Greg Zeeman said: 'We are flexible about reviewing loan quantums, as we understand customers sometimes need more time to sell their existing property or decide on the proportion of loan and CPF savings used to finance their new property.'
This is a radical departure from past practice. Previously, once the letter of offer from a bank was accepted by a borrower, the terms could not be changed, said Dennis Wee Group director Chris Koh.
United Overseas Bank (UOB) loans division head Chia Siew Cheng said UOB also offers this flexibility, but added that it also takes into account 'current market regulations and guidelines, customers with good credit records, stable income and the ability to service the loan'.
Private property owners who are buying and selling their homes in back-to-back transactions also potentially benefit from this increased flexibility. But the problem is less acute for them because in the private property market, home sellers can stipulate a longer period of time for a sale to be completed.
The stamp duty certificate - the proof needed for 80 per cent financing for private property - is also obtained earlier in the sale process.
One home owner looking to move is housewife Koh Lay Hua, 55, who cheered the new flexibility offered by banks. 'I'm glad some banks are allowing this... I definitely would have to sell my flat to pay for the next one.'
jcheam@sph.com.sg
www.facebook.com/facebook.com/cheamjessica
Banks roll out flexible home loans
They offer up to 60% financing, raising it to 80% later to help those hit by new rules
By Jessica Cheam
BANKS here are providing an unprecedented degree of flexibility when granting loans to home buyers who are moving from one home to another.
They are agreeing to grant loans of up to 60 per cent of the property's value first, and raising them to 80 per cent later.
The move is helping property upgraders save time and money as they navigate tricky timelines created by new property financing rules first introduced last August.
To recap, the rules stipulate that home owners with an existing home loan can obtain only 70 per cent financing for a second home they wish to buy. The limit was reduced further to 60 per cent this month. The usual loan limit is 80 per cent.
This makes it hard for home buyers, particularly those in the Housing Board market, who simply want to move from one property to another. They now have to prove they have sold their existing flat before qualifying for 80 per cent financing.
The problem is that the proof of sale is a letter of approval from the HDB, which is issued two weeks after what is known as the 'first appointment'. This appointment, part of the HDB buying process, takes place six to eight weeks from when the deal is struck.
What this means is that an HDB upgrader or downgrader would have to sell his unit first and wait about two months before he can get 80 per cent financing from a bank for his next home. Otherwise, he will get only 60 per cent.
Logistically, he will also have to move out of his existing flat way before he can move into his new one.
This has translated to hundreds of property buyers moving to an interim location. Some even ask for an extension of stay at their existing homes beyond the legal completion of the sale, which is technically illegal under HDB rules.
Most banks here say they are prepared to grant these buyers 60 per cent financing on a new home, and then restructuring the loan to 80 per cent financing when the buyer proves he has sold his home.
HSBC personal financing services head Greg Zeeman said: 'We are flexible about reviewing loan quantums, as we understand customers sometimes need more time to sell their existing property or decide on the proportion of loan and CPF savings used to finance their new property.'
This is a radical departure from past practice. Previously, once the letter of offer from a bank was accepted by a borrower, the terms could not be changed, said Dennis Wee Group director Chris Koh.
United Overseas Bank (UOB) loans division head Chia Siew Cheng said UOB also offers this flexibility, but added that it also takes into account 'current market regulations and guidelines, customers with good credit records, stable income and the ability to service the loan'.
Private property owners who are buying and selling their homes in back-to-back transactions also potentially benefit from this increased flexibility. But the problem is less acute for them because in the private property market, home sellers can stipulate a longer period of time for a sale to be completed.
The stamp duty certificate - the proof needed for 80 per cent financing for private property - is also obtained earlier in the sale process.
One home owner looking to move is housewife Koh Lay Hua, 55, who cheered the new flexibility offered by banks. 'I'm glad some banks are allowing this... I definitely would have to sell my flat to pay for the next one.'
jcheam@sph.com.sg
www.facebook.com/facebook.com/cheamjessica
ST : China takes fresh steps to rein in property prices
27 Jan 2011,
China takes fresh steps to rein in property prices
BEIJING: China yesterday raised the minimum down payment on second homes and ordered the authorities to rein in property prices in its latest move aimed at quelling public angst about high real estate costs.
The State Council - China's Cabinet - ordered that the minimum second-home down payment be hiked to 60 per cent of the property's value. Just last April, it ordered the payment raised to 50 per cent as the government fought to curb skyrocketing property values and real estate speculation.
The State Council also said cities that had seen especially fast property price increases must draw up and implement measures to limit real estate sales.
China's government has issued a raft of measures recently to curb spiralling prices, as polls have shown the difficulty in affording housing has become the top consumer fear.
Inflation and disputes over land have a history of sparking unrest in China.
However, property prices in China's major cities have continued to increase, posting their fourth straight month-on-month rise in December as sales picked up pace.
The State Council reiterated an order it issued last year that mortgage loan rates on second-home purchases must be at least 10 per cent higher than the central bank's benchmark lending rates.
It also told the authorities across the nation to increase the supply and availability of affordable and public housing, and use a range of tax, land-use and other policies to put the brakes on land speculators.
Those found violating any measures aimed at tackling price spurts must be 'severely' dealt with, it said.
Whether the new move will work remains to be seen, as property experts put out a report in Beijing citing data to prove that prices are likely to rise further this year.
The findings echo a report issued last week by the Chinese Academy of Sciences, which predicts property prices will rise 12.77 per cent this year.
December home prices in 70 major Chinese cities rose 0.3 per cent month-on-month and 6.4 per cent year-on-year, the National Bureau of Statistics said on Monday.
Also, according to reports, China's top 10 property developers have shifted their sights to investing in second- and third-tier cities after cooling measures in big cities such as Beijing and Shanghai shaved their profit margin.
As home buyers and speculators follow on their heels to these cities, such as Changchun and its otherwise little-known neighbour, Tonghua, in north-eastern Jilin province, property prices in these places will soon rival those of first-tier cities, reported the Chinese media.
AGENCE FRANCE-PRESSE, CHINA DAILY/ASIA NEWS NETWORK
China takes fresh steps to rein in property prices
BEIJING: China yesterday raised the minimum down payment on second homes and ordered the authorities to rein in property prices in its latest move aimed at quelling public angst about high real estate costs.
The State Council - China's Cabinet - ordered that the minimum second-home down payment be hiked to 60 per cent of the property's value. Just last April, it ordered the payment raised to 50 per cent as the government fought to curb skyrocketing property values and real estate speculation.
The State Council also said cities that had seen especially fast property price increases must draw up and implement measures to limit real estate sales.
China's government has issued a raft of measures recently to curb spiralling prices, as polls have shown the difficulty in affording housing has become the top consumer fear.
Inflation and disputes over land have a history of sparking unrest in China.
However, property prices in China's major cities have continued to increase, posting their fourth straight month-on-month rise in December as sales picked up pace.
The State Council reiterated an order it issued last year that mortgage loan rates on second-home purchases must be at least 10 per cent higher than the central bank's benchmark lending rates.
It also told the authorities across the nation to increase the supply and availability of affordable and public housing, and use a range of tax, land-use and other policies to put the brakes on land speculators.
Those found violating any measures aimed at tackling price spurts must be 'severely' dealt with, it said.
Whether the new move will work remains to be seen, as property experts put out a report in Beijing citing data to prove that prices are likely to rise further this year.
The findings echo a report issued last week by the Chinese Academy of Sciences, which predicts property prices will rise 12.77 per cent this year.
December home prices in 70 major Chinese cities rose 0.3 per cent month-on-month and 6.4 per cent year-on-year, the National Bureau of Statistics said on Monday.
Also, according to reports, China's top 10 property developers have shifted their sights to investing in second- and third-tier cities after cooling measures in big cities such as Beijing and Shanghai shaved their profit margin.
As home buyers and speculators follow on their heels to these cities, such as Changchun and its otherwise little-known neighbour, Tonghua, in north-eastern Jilin province, property prices in these places will soon rival those of first-tier cities, reported the Chinese media.
AGENCE FRANCE-PRESSE, CHINA DAILY/ASIA NEWS NETWORK
ST : Unclear outcome in several en bloc tenders
27 Jan 2011,
Unclear outcome in several en bloc tenders
Developers' bids may not have met reserve prices, say residents
By Esther Teo
AN UNUSUAL quiet has come over the closing of several mega collective sale tenders that were launched amid much fanfare with $500 million-plus reserve prices.
New launches for collective sales, however, have continued unabated.
The lack of news on the closed tenders has stirred talk among some residents that developers' bids, if any, may have fallen short of reserve prices.
Recent reports, for example, have suggested that Tulip Garden - whose tender with a reserve price of $650 million was launched early last month and closed last Thursday - had received no bids.
A resident The Straits Times spoke to said he understood three parties had expressed interest but no bids were made.
Mr Karamjit Singh, managing director of marketing agent Credo Real Estate, however, said the firm was 'still in discussion with developers'.
If Tulip Garden gets sold for $650 million, it would be the third-largest collective sale by value here and the first freehold one above $500 million in three years.
Similarly, on the commercial front, no news is out yet on Tanglin Shopping Centre, whose tender with a reserve price of a hefty $1.25 billion closed on Tuesday.
City Developments (CDL), however, said in a statement yesterday that it had expressed interest in negotiating for the purchase of the development. Millennium & Copthorne Hotels, CDL's hotel arm, owns 85 retail and office units and 325 parking spaces there.
Ms Jean Goh, senior marketing director of marketing agent ERA Realty, declined to comment further, saying the firm was still in the midst of negotiations.
Hawaii Tower in Meyer Road, with a $700 million reserve price and whose tender closed yesterday, also got no bids.
Mr Jeremy Lake, CB Richard Ellis' executive director for investment properties, said the firm is following up with four parties that had expressed interest.
Experts say the collective sale market is being tested again with the Jan 13 property cooling measures leaving the market in flux as many were caught by surprise.
Tanglin Shopping Centre might be affected as ERA had earlier said it could be redeveloped to include homes.
The collective sale market had picked up last year with more than 30 sales totalling about $1.7 billion recorded as home prices surged. The strong rebound had been expected to continue this year.
Tenders launched before the latest property measures, and closing since, may have struggled to meet ambitious reserve prices, experts suggest, though they say it is too soon to draw conclusions.
Mr Alwyn Low, director of Deans Realtors, said even if bids with no special conditions came in above the reserve price for a collective sale, they would still take about a week to be finalised. There is also 10 weeks after the tender closes for private treaties to be ironed out.
Mr Donald Han, vice-chairman of property consultancy Cushman & Wakefield, said developers are more cautious. 'Deals of more than $500 million can still happen, but vendors might need to consider more realistic pricing in the light of the new measures.'
Some developers are also often more inclined to pursue government land sites as the sale process is faster and fuss-free, experts said.
Market watchers will be awaiting news on an expression of interest that closed on Jan 12 for strata offices and retail units at 1 Finlayson Green.
Credo's Mr Singh said the tender closing date for the Whitley Heights apartments has been pushed back to March 2, owing to requests from developers to look into the more complex nature of developing strata-landed homes.
The collective sale momentum, however, has carried on to this year. At least 10 collective sale tenders have been launched this year. These include Holland Tower, Newton View and Ying Mansions.
esthert@sph.com.sg
Unclear outcome in several en bloc tenders
Developers' bids may not have met reserve prices, say residents
By Esther Teo
AN UNUSUAL quiet has come over the closing of several mega collective sale tenders that were launched amid much fanfare with $500 million-plus reserve prices.
New launches for collective sales, however, have continued unabated.
The lack of news on the closed tenders has stirred talk among some residents that developers' bids, if any, may have fallen short of reserve prices.
Recent reports, for example, have suggested that Tulip Garden - whose tender with a reserve price of $650 million was launched early last month and closed last Thursday - had received no bids.
A resident The Straits Times spoke to said he understood three parties had expressed interest but no bids were made.
Mr Karamjit Singh, managing director of marketing agent Credo Real Estate, however, said the firm was 'still in discussion with developers'.
If Tulip Garden gets sold for $650 million, it would be the third-largest collective sale by value here and the first freehold one above $500 million in three years.
Similarly, on the commercial front, no news is out yet on Tanglin Shopping Centre, whose tender with a reserve price of a hefty $1.25 billion closed on Tuesday.
City Developments (CDL), however, said in a statement yesterday that it had expressed interest in negotiating for the purchase of the development. Millennium & Copthorne Hotels, CDL's hotel arm, owns 85 retail and office units and 325 parking spaces there.
Ms Jean Goh, senior marketing director of marketing agent ERA Realty, declined to comment further, saying the firm was still in the midst of negotiations.
Hawaii Tower in Meyer Road, with a $700 million reserve price and whose tender closed yesterday, also got no bids.
Mr Jeremy Lake, CB Richard Ellis' executive director for investment properties, said the firm is following up with four parties that had expressed interest.
Experts say the collective sale market is being tested again with the Jan 13 property cooling measures leaving the market in flux as many were caught by surprise.
Tanglin Shopping Centre might be affected as ERA had earlier said it could be redeveloped to include homes.
The collective sale market had picked up last year with more than 30 sales totalling about $1.7 billion recorded as home prices surged. The strong rebound had been expected to continue this year.
Tenders launched before the latest property measures, and closing since, may have struggled to meet ambitious reserve prices, experts suggest, though they say it is too soon to draw conclusions.
Mr Alwyn Low, director of Deans Realtors, said even if bids with no special conditions came in above the reserve price for a collective sale, they would still take about a week to be finalised. There is also 10 weeks after the tender closes for private treaties to be ironed out.
Mr Donald Han, vice-chairman of property consultancy Cushman & Wakefield, said developers are more cautious. 'Deals of more than $500 million can still happen, but vendors might need to consider more realistic pricing in the light of the new measures.'
Some developers are also often more inclined to pursue government land sites as the sale process is faster and fuss-free, experts said.
Market watchers will be awaiting news on an expression of interest that closed on Jan 12 for strata offices and retail units at 1 Finlayson Green.
Credo's Mr Singh said the tender closing date for the Whitley Heights apartments has been pushed back to March 2, owing to requests from developers to look into the more complex nature of developing strata-landed homes.
The collective sale momentum, however, has carried on to this year. At least 10 collective sale tenders have been launched this year. These include Holland Tower, Newton View and Ying Mansions.
esthert@sph.com.sg
ST : More gain than pain in N-S Expressway project
27 Jan 2011,
More gain than pain in N-S Expressway project
Some will lose their homes, but benefits outweigh social costs
By Christopher Tan
THE announcement of a new highway is not always met with the kind of enthusiasm other infrastructure projects usually receive, such as an MRT line, a cruise terminal, or even yet another shopping mall.
Property prices near a new expressway project do not appreciate; they almost always depreciate. In the developed world, highways are associated with several negative externalities - noise, congestion, accidents, pollution, and so on.
In the early 1900s, a new road was always good news because it connected rural communities. The opposite is true today. In many big cities, highways have severed communal links instead of forging them. This explains the rise of anti-highway movements in the 1970s and 1980s to halt or divert road projects in America, the land of the automobile.
It is understandable then that Singapore's North-South Expressway (NSE) project is drawing mixed feelings.
Motorists, especially those living in northern towns like Woodlands, Sembawang and Yishun, breathed a collective sigh of relief when the alignment of the first stretch was announced last week. This is because the end of their suffering with the perennially choked Central Expressway is now in sight.
But others living along the path of the $8 billion, 21km NSE may be having a few sleepless nights. Some have had their homes acquired to make way for the new road. Others will endure the approximately seven years of construction. Many will have to live with the increased traffic once it is completed.
This is why cost-benefit analyses for highway projects are never just about the cost of concrete and steel, cost of design, and other engineering considerations.
Social costs and benefits should often be given equal, if not more, weight. Or so literature on public policy tells us.
Such studies, however, are seldom cut-and-dried. How does one measure social costs and benefits in the present, continuous and future tenses? How strong are competing needs for a given budget allocation? And are there engineering limits to what can be done?
So, while it is easy to question why the Land Transport Authority (LTA) has not chosen an all-underground route for the expressway to reduce land acquisitions and future noise, there are drawbacks associated with the subterranean option too.
For starters, an underground road will cost three to four times more than a surface road. It will also cost up to 10 times more to operate and maintain.
The fact that the northern portion of the NSE runs mostly through industrial estates makes it more logical to pick a surface road than an underground one there. It will take the form of an elevated road, or viaduct. This minimises land consumption because a viaduct occupies mainly air space, with its supporting pillars standing on existing road dividers.
Most of the plots of land acquired are along the underground section of the NSE. This is because entrance and exit ramps of underground roads require space. Also, the LTA is using a trench excavation construction (cut and cover) method, which needs more space than the tunnelling method.
There are now tunnel-boring machines wide enough for underground highway construction. But these work best for deeper tunnels. Deeper tunnels require access and exit ramps to run for longer distances to ensure the gradient is not too steep for vehicles. And longer ramps will inevitably eat up more land.
The bottom line here is that a major infrastructure project often entails some property acquisition, especially in a built-up city state. Those affected will understandably feel upset, but it is remarkable that such a massive project is being carried out with minimal acquisition - with the owners of 35 terrace houses having to give up their properties, and others sacrificing part of their land.
As for grumbles about home owners' wasted renovation works, the NSE was in fact first mentioned in the Urban Redevelopment Authority's 2001 Concept Plan. The corridor where it will probably run has been 'safeguarded' or earmarked for possible future development since 2007. Prudent property owners should do a Singapore Land Authority search for a fee, before embarking on a major house renovation.
On its part, perhaps the Government can review current policies regarding compensation to reflect the actual cost incurred by 'losers' in an acquisition process, which goes beyond property values to include less tangible aspects such as inconvenience and cost of relocation.
A change in policy should not, however, open an avenue for profiteering or speculation, but be aimed squarely at recognising what the few have to bear for the good of the many.
Smoother commutes between the northern towns and the rest of Singapore will be one greater good. Proceeds from land sales arising from a huge acquired plot in Marymount that will be redeveloped are another.
Another group of people who will be adversely affected by the NSE are those living and working near its length. Compensating them would be improbable since many others who live and work near roads elsewhere on the island suffer the same fate. The LTA might erect noise barriers where it can to mitigate the situation. Its current practice of relying on planted hedges to reduce noise is not nearly as effective.
So, is the motorist getting a free ride in this social equation? Well, no, he pays relatively high vehicle taxes (which currently include pretty lofty certificate of entitlement premiums), petrol duty, road tax, and so on.
And to ensure that he continues to be aware of the social costs he imposes, he will be made to pay for congestion if and when the need arises.
On this front, electronic road-pricing (ERP) gantries will not be necessary on the NSE. By the time the expressway is completed in 2020, Singapore's satellite-tracked, distance-based ERP system should be up and beeping away.
christan@sph.com.sg
More gain than pain in N-S Expressway project
Some will lose their homes, but benefits outweigh social costs
By Christopher Tan
THE announcement of a new highway is not always met with the kind of enthusiasm other infrastructure projects usually receive, such as an MRT line, a cruise terminal, or even yet another shopping mall.
Property prices near a new expressway project do not appreciate; they almost always depreciate. In the developed world, highways are associated with several negative externalities - noise, congestion, accidents, pollution, and so on.
In the early 1900s, a new road was always good news because it connected rural communities. The opposite is true today. In many big cities, highways have severed communal links instead of forging them. This explains the rise of anti-highway movements in the 1970s and 1980s to halt or divert road projects in America, the land of the automobile.
It is understandable then that Singapore's North-South Expressway (NSE) project is drawing mixed feelings.
Motorists, especially those living in northern towns like Woodlands, Sembawang and Yishun, breathed a collective sigh of relief when the alignment of the first stretch was announced last week. This is because the end of their suffering with the perennially choked Central Expressway is now in sight.
But others living along the path of the $8 billion, 21km NSE may be having a few sleepless nights. Some have had their homes acquired to make way for the new road. Others will endure the approximately seven years of construction. Many will have to live with the increased traffic once it is completed.
This is why cost-benefit analyses for highway projects are never just about the cost of concrete and steel, cost of design, and other engineering considerations.
Social costs and benefits should often be given equal, if not more, weight. Or so literature on public policy tells us.
Such studies, however, are seldom cut-and-dried. How does one measure social costs and benefits in the present, continuous and future tenses? How strong are competing needs for a given budget allocation? And are there engineering limits to what can be done?
So, while it is easy to question why the Land Transport Authority (LTA) has not chosen an all-underground route for the expressway to reduce land acquisitions and future noise, there are drawbacks associated with the subterranean option too.
For starters, an underground road will cost three to four times more than a surface road. It will also cost up to 10 times more to operate and maintain.
The fact that the northern portion of the NSE runs mostly through industrial estates makes it more logical to pick a surface road than an underground one there. It will take the form of an elevated road, or viaduct. This minimises land consumption because a viaduct occupies mainly air space, with its supporting pillars standing on existing road dividers.
Most of the plots of land acquired are along the underground section of the NSE. This is because entrance and exit ramps of underground roads require space. Also, the LTA is using a trench excavation construction (cut and cover) method, which needs more space than the tunnelling method.
There are now tunnel-boring machines wide enough for underground highway construction. But these work best for deeper tunnels. Deeper tunnels require access and exit ramps to run for longer distances to ensure the gradient is not too steep for vehicles. And longer ramps will inevitably eat up more land.
The bottom line here is that a major infrastructure project often entails some property acquisition, especially in a built-up city state. Those affected will understandably feel upset, but it is remarkable that such a massive project is being carried out with minimal acquisition - with the owners of 35 terrace houses having to give up their properties, and others sacrificing part of their land.
As for grumbles about home owners' wasted renovation works, the NSE was in fact first mentioned in the Urban Redevelopment Authority's 2001 Concept Plan. The corridor where it will probably run has been 'safeguarded' or earmarked for possible future development since 2007. Prudent property owners should do a Singapore Land Authority search for a fee, before embarking on a major house renovation.
On its part, perhaps the Government can review current policies regarding compensation to reflect the actual cost incurred by 'losers' in an acquisition process, which goes beyond property values to include less tangible aspects such as inconvenience and cost of relocation.
A change in policy should not, however, open an avenue for profiteering or speculation, but be aimed squarely at recognising what the few have to bear for the good of the many.
Smoother commutes between the northern towns and the rest of Singapore will be one greater good. Proceeds from land sales arising from a huge acquired plot in Marymount that will be redeveloped are another.
Another group of people who will be adversely affected by the NSE are those living and working near its length. Compensating them would be improbable since many others who live and work near roads elsewhere on the island suffer the same fate. The LTA might erect noise barriers where it can to mitigate the situation. Its current practice of relying on planted hedges to reduce noise is not nearly as effective.
So, is the motorist getting a free ride in this social equation? Well, no, he pays relatively high vehicle taxes (which currently include pretty lofty certificate of entitlement premiums), petrol duty, road tax, and so on.
And to ensure that he continues to be aware of the social costs he imposes, he will be made to pay for congestion if and when the need arises.
On this front, electronic road-pricing (ERP) gantries will not be necessary on the NSE. By the time the expressway is completed in 2020, Singapore's satellite-tracked, distance-based ERP system should be up and beeping away.
christan@sph.com.sg
Monday, February 7, 2011
ST Forum : New measures help more first-time buyers to own flats
26 JAN 2011,
New measures help more first-time buyers to own flats
THE measures introduced in August last year and this month aim to stabilise the property market ('Genuine buyer's problems' by Mr Adam Reutens-Tan; Jan 18).
Together with the increased supply of housing units, they help more first-time buyers to own their homes.
The lower loan-to-value (LTV) limit of 60 per cent is meant to encourage financial prudence and reduce non- urgent housing demand.
Only buyers who take bank loans to buy a second property, while they have an existing loan for their current property, are affected.
Households earning up to $8,000 that wish to upgrade or downsize to another flat are not affected if they are eligible for an HDB concessionary loan. They may apply for an HDB loan of up to 90 per cent LTV, subject to credit assessment.
We urge flat sellers to carry out financial planning and consider their housing arrangements before committing to buy another property.
If they do not have sufficient cash or Central Provident Fund savings to pay the down payment for their next property due to the lower LTV limit, they should reconsider their decision to avoid overstretching themselves.
Alternatively, they can discharge their outstanding housing loan or sell their existing property before buying another.
Otherwise, when interest rates eventually rise, those who have over-extended themselves in property purchases may be severely affected.
Although the measures may inconvenience some home owners, they will help foster a more stable and sustainable property market, which will be beneficial to all stakeholders in the long run.
HDB will also continue to monitor the market closely to ensure that there is enough flat supply to meet demand.
Chan-Wong Jee Choo Lily (Mrs)
Deputy Director (Policy & Property)
Housing & Development Board
New measures help more first-time buyers to own flats
THE measures introduced in August last year and this month aim to stabilise the property market ('Genuine buyer's problems' by Mr Adam Reutens-Tan; Jan 18).
Together with the increased supply of housing units, they help more first-time buyers to own their homes.
The lower loan-to-value (LTV) limit of 60 per cent is meant to encourage financial prudence and reduce non- urgent housing demand.
Only buyers who take bank loans to buy a second property, while they have an existing loan for their current property, are affected.
Households earning up to $8,000 that wish to upgrade or downsize to another flat are not affected if they are eligible for an HDB concessionary loan. They may apply for an HDB loan of up to 90 per cent LTV, subject to credit assessment.
We urge flat sellers to carry out financial planning and consider their housing arrangements before committing to buy another property.
If they do not have sufficient cash or Central Provident Fund savings to pay the down payment for their next property due to the lower LTV limit, they should reconsider their decision to avoid overstretching themselves.
Alternatively, they can discharge their outstanding housing loan or sell their existing property before buying another.
Otherwise, when interest rates eventually rise, those who have over-extended themselves in property purchases may be severely affected.
Although the measures may inconvenience some home owners, they will help foster a more stable and sustainable property market, which will be beneficial to all stakeholders in the long run.
HDB will also continue to monitor the market closely to ensure that there is enough flat supply to meet demand.
Chan-Wong Jee Choo Lily (Mrs)
Deputy Director (Policy & Property)
Housing & Development Board
ST Forum : Indicative valuations are a vital tool
26 JAN 2011,
Indicative valuations are a vital tool
INDICATIVE valuations are a daily part of the property business ('Don't rely on indicative valuations' by the Singapore Institute of Surveyors and Valuers; Monday).
For every sale or purchase, clients want to know the 'bank valuation'. Buyers need the bank to lend them money. Would a purchaser's bank be bound by a professional valuation done by the Singapore Institute of Surveyors and Valuers, or would the bank still send their valuers, who might arrive at a different value?
If the latter, what is the point of getting a professional valuation from a valuer and not through a bank?
I am in the real estate business and I always ask a few bankers from different banks for an indicative valuation of a unit. The most blatant answer for a unit valuation in an established condo was a range of $3.2 million to $4 million involving four different valuations from three banks. So where is the real value?
It was a four-year-old condo with all parameters known to the bankers and their valuers.
A desktop valuation should be very much possible in a case like this. Units like this have been traded before, all figures are there to be seen by agents, so I assume the valuers have similar tools.
The indicative valuations for condo apartments that I receive from bankers (who get them from their valuers) usually differ by between $50,000 and $200,000.
Monika Fischer (Ms)
Indicative valuations are a vital tool
INDICATIVE valuations are a daily part of the property business ('Don't rely on indicative valuations' by the Singapore Institute of Surveyors and Valuers; Monday).
For every sale or purchase, clients want to know the 'bank valuation'. Buyers need the bank to lend them money. Would a purchaser's bank be bound by a professional valuation done by the Singapore Institute of Surveyors and Valuers, or would the bank still send their valuers, who might arrive at a different value?
If the latter, what is the point of getting a professional valuation from a valuer and not through a bank?
I am in the real estate business and I always ask a few bankers from different banks for an indicative valuation of a unit. The most blatant answer for a unit valuation in an established condo was a range of $3.2 million to $4 million involving four different valuations from three banks. So where is the real value?
It was a four-year-old condo with all parameters known to the bankers and their valuers.
A desktop valuation should be very much possible in a case like this. Units like this have been traded before, all figures are there to be seen by agents, so I assume the valuers have similar tools.
The indicative valuations for condo apartments that I receive from bankers (who get them from their valuers) usually differ by between $50,000 and $200,000.
Monika Fischer (Ms)
ST : Flats for seniors at Bt Batok: Will buyers bite?
25 JAN 2011,
Flats for seniors at Bt Batok: Will buyers bite?
Experts expect modest sales for newly launched flats there and in Yishun
By Cheryl Ong
HOMEBUYERS seeking homes in Yishun and Bukit Batok now have more options.
The Housing Board yesterday launched 1,728 build-to-order (BTO) flats in these two areas, the first batch of up to 22,000 new BTO flats in the pipeline this year if demand is sustained.
Industry watchers said the three projects - Orchid Spring @ Yishun, Vista Spring @ Yishun, and the seniors-friendly Golden Daisy in Bukit Batok - are expected to attract modest sales, due to their distance from MRT stations.
Strong demand for new flats and those in the resale sector led the Housing Board to roll out 16,000 flats last year, the highest number since the BTO system was launched in 2002. It allows flats to be built according to demand.
Some 95 per cent of the new flats will be reserved for first-time buyers.
Orchid Spring in Yishun Avenue 11 will have eight 13-storey blocks housing 948 two-, three- and four-room flats.
Vista Spring in Yishun Avenue 1 will also have eight 13-storey blocks, featuring 504 four- and five-room flats. The project also has 96 three-room flats which are reserved for sale in the future.
Prices in the Yishun projects range from $93,000 to $112,000 for a two-room flat, and from $292,000 to $353,000 for a five-room unit. More than half the Yishun flats on offer are four-room homes.
Golden Daisy, in Bukit Batok Street 21, will offer two sizes of studio apartment for residents aged 55 and older. They will be fitted out with essentials like built-in furniture. Apartments of 398.3 sq ft in size will cost between $83,000 and $94,000, while 505.9 sq ft ones will cost between $105,000 and $118,000.
PropNex corporate communications manager Adam Tan said Golden Daisy may not see high sales due to the modest popularity of studio apartments. 'While the development is situated near a park and neighbourhood centre for the residents' enjoyment, they would still have to take a bus to nearby Bukit Batok MRT station.'
Mr Tan said the three-room flats in Yishun are expected to see stronger demand due to their price, which is 40 per cent lower than current median resale prices in the neighbourhood.
The Yishun offerings feature amenities like childcare centres in the block as well as close proximity to parks and Lower Seletar Reservoir. However, Yishun MRT station is a few minutes away by bus.
HDB said the construction of Orchid Spring is expected to be completed in the fourth quarter of 2014, and Vista Spring in the third quarter of the same year.
Golden Daisy is expected to be ready in the first quarter of 2014.
Homebuyers can apply online at www.hdb.gov.sg from now till Feb 7.
ongyiern@sph.com.sg
Flats for seniors at Bt Batok: Will buyers bite?
Experts expect modest sales for newly launched flats there and in Yishun
By Cheryl Ong
HOMEBUYERS seeking homes in Yishun and Bukit Batok now have more options.
The Housing Board yesterday launched 1,728 build-to-order (BTO) flats in these two areas, the first batch of up to 22,000 new BTO flats in the pipeline this year if demand is sustained.
Industry watchers said the three projects - Orchid Spring @ Yishun, Vista Spring @ Yishun, and the seniors-friendly Golden Daisy in Bukit Batok - are expected to attract modest sales, due to their distance from MRT stations.
Strong demand for new flats and those in the resale sector led the Housing Board to roll out 16,000 flats last year, the highest number since the BTO system was launched in 2002. It allows flats to be built according to demand.
Some 95 per cent of the new flats will be reserved for first-time buyers.
Orchid Spring in Yishun Avenue 11 will have eight 13-storey blocks housing 948 two-, three- and four-room flats.
Vista Spring in Yishun Avenue 1 will also have eight 13-storey blocks, featuring 504 four- and five-room flats. The project also has 96 three-room flats which are reserved for sale in the future.
Prices in the Yishun projects range from $93,000 to $112,000 for a two-room flat, and from $292,000 to $353,000 for a five-room unit. More than half the Yishun flats on offer are four-room homes.
Golden Daisy, in Bukit Batok Street 21, will offer two sizes of studio apartment for residents aged 55 and older. They will be fitted out with essentials like built-in furniture. Apartments of 398.3 sq ft in size will cost between $83,000 and $94,000, while 505.9 sq ft ones will cost between $105,000 and $118,000.
PropNex corporate communications manager Adam Tan said Golden Daisy may not see high sales due to the modest popularity of studio apartments. 'While the development is situated near a park and neighbourhood centre for the residents' enjoyment, they would still have to take a bus to nearby Bukit Batok MRT station.'
Mr Tan said the three-room flats in Yishun are expected to see stronger demand due to their price, which is 40 per cent lower than current median resale prices in the neighbourhood.
The Yishun offerings feature amenities like childcare centres in the block as well as close proximity to parks and Lower Seletar Reservoir. However, Yishun MRT station is a few minutes away by bus.
HDB said the construction of Orchid Spring is expected to be completed in the fourth quarter of 2014, and Vista Spring in the third quarter of the same year.
Golden Daisy is expected to be ready in the first quarter of 2014.
Homebuyers can apply online at www.hdb.gov.sg from now till Feb 7.
ongyiern@sph.com.sg
ST : Confidence up in US but home prices down
25 JAN 2011,
Confidence up in US but home prices down
WASHINGTON: Confidence among United States consumers has risen more than forecast this month to the highest level in eight months as Americans became more optimistic about job prospects.
The Conference Board's index of sentiment increased to 60.6 from a revised 53.3 the prior month that was higher than previously estimated, figures from the New York-based private research group showed yesterday.
Economists projected the January gauge would rise to 54, according to the median forecast in a Bloomberg News survey.
A pickup in optimism, an improving labour market and tax relief may combine to encourage consumers, whose spending accounts for about 70 per cent of the economy.
'Confidence is going in the right direction,' Mr Brian Jones, an economist at Societe Generale in New York, said before the report. 'In general, the labour market is improving, and you need to have continued improvement there to keep consumer confidence rising.'
The Conference Board's measure of present conditions rose to the highest since November 2008 - to 31 from a revised 24.9.
The gauge of expectations for the next six months rose to 80.3 from 72.3.
The gain contrasts with the Thomson Reuters/University of Michigan preliminary consumer sentiment index, which fell this month as Americans feared higher petrol prices would hurt their finances.
Another report yesterday showed housing prices in November fell the most in a year, indicating housing has yet to join the economic rebound.
US single-family home prices fell for a fifth straight month in November and could plumb new lows soon, a closely watched survey showed.
The Standard & Poor's/Case-Shiller composite index of 20 metropolitan areas declined 0.5 per cent in November from October on a seasonally adjusted basis, though it was not as sharp as the 0.8 per cent fall expected by economists.
Prices have fallen 1.6 per cent in the past year, sharper than the 1.4 per cent predicted by Reuters-polled economists.
Sixteen of the 20 cities showed annual price declines in November, while 19 of 20 cities showed monthly price drops.
The housing market has been struggling since homebuyer tax credits expired earlier this year. To take advantage of the tax credits, buyers had to sign purchase contracts by April 30.
'A double-dip could be confirmed before Spring,' said Mr David Blitzer, chairman of the index committee at S&P.
He defined a double-dip as both the 10- and 20-city composite indices setting new post-peak lows. The 10-city index is 4.8 per cent above its April 2009 low, while the 20-city index is just 3.3 per cent higher than its low that same month.
BLOOMBERG, REUTERS
Confidence up in US but home prices down
WASHINGTON: Confidence among United States consumers has risen more than forecast this month to the highest level in eight months as Americans became more optimistic about job prospects.
The Conference Board's index of sentiment increased to 60.6 from a revised 53.3 the prior month that was higher than previously estimated, figures from the New York-based private research group showed yesterday.
Economists projected the January gauge would rise to 54, according to the median forecast in a Bloomberg News survey.
A pickup in optimism, an improving labour market and tax relief may combine to encourage consumers, whose spending accounts for about 70 per cent of the economy.
'Confidence is going in the right direction,' Mr Brian Jones, an economist at Societe Generale in New York, said before the report. 'In general, the labour market is improving, and you need to have continued improvement there to keep consumer confidence rising.'
The Conference Board's measure of present conditions rose to the highest since November 2008 - to 31 from a revised 24.9.
The gauge of expectations for the next six months rose to 80.3 from 72.3.
The gain contrasts with the Thomson Reuters/University of Michigan preliminary consumer sentiment index, which fell this month as Americans feared higher petrol prices would hurt their finances.
Another report yesterday showed housing prices in November fell the most in a year, indicating housing has yet to join the economic rebound.
US single-family home prices fell for a fifth straight month in November and could plumb new lows soon, a closely watched survey showed.
The Standard & Poor's/Case-Shiller composite index of 20 metropolitan areas declined 0.5 per cent in November from October on a seasonally adjusted basis, though it was not as sharp as the 0.8 per cent fall expected by economists.
Prices have fallen 1.6 per cent in the past year, sharper than the 1.4 per cent predicted by Reuters-polled economists.
Sixteen of the 20 cities showed annual price declines in November, while 19 of 20 cities showed monthly price drops.
The housing market has been struggling since homebuyer tax credits expired earlier this year. To take advantage of the tax credits, buyers had to sign purchase contracts by April 30.
'A double-dip could be confirmed before Spring,' said Mr David Blitzer, chairman of the index committee at S&P.
He defined a double-dip as both the 10- and 20-city composite indices setting new post-peak lows. The 10-city index is 4.8 per cent above its April 2009 low, while the 20-city index is just 3.3 per cent higher than its low that same month.
BLOOMBERG, REUTERS
ST Forum : Let singles own HDB flats at 25
24 JAN 2011,
Let singles own HDB flats at 25
WHILE it is gratifying to read that the Housing Board is reviewing the rule governing co-sharing of flats by siblings ('HDB to review rule on siblings'; Jan 18), the HDB should also lower the age for flat ownership by single citizens by a decade to 25 years of age.
As Singaporeans adopt a more urbanised Western attitude, it would make sense to accommodate their obvious desire to live on their own.
Such a move should not be seen as a lack of filial concern for their parents. My two children do not live with me, yet we have healthy relationships.
Staying out enables young people to grow up and be more independent. It prepares them to be better partners and parents in the future.
Many parents in our Asian culture still mother their adult children and make decisions for them. Many even impose curfew hours for their single adult children when the latter are well into their early 30s.
We can encourage these young single people to get married by providing generous incentives when they upgrade their flats to get married.
Young adult citizens at an early stage of their careers form a large proportion of the group of Singaporeans who face the middle-income squeeze and they would certainly welcome assistance, given the stiff property prices.
Dr Lau Geok Theng
Let singles own HDB flats at 25
WHILE it is gratifying to read that the Housing Board is reviewing the rule governing co-sharing of flats by siblings ('HDB to review rule on siblings'; Jan 18), the HDB should also lower the age for flat ownership by single citizens by a decade to 25 years of age.
As Singaporeans adopt a more urbanised Western attitude, it would make sense to accommodate their obvious desire to live on their own.
Such a move should not be seen as a lack of filial concern for their parents. My two children do not live with me, yet we have healthy relationships.
Staying out enables young people to grow up and be more independent. It prepares them to be better partners and parents in the future.
Many parents in our Asian culture still mother their adult children and make decisions for them. Many even impose curfew hours for their single adult children when the latter are well into their early 30s.
We can encourage these young single people to get married by providing generous incentives when they upgrade their flats to get married.
Young adult citizens at an early stage of their careers form a large proportion of the group of Singaporeans who face the middle-income squeeze and they would certainly welcome assistance, given the stiff property prices.
Dr Lau Geok Theng
ST : 3 sites up for collective sale
24 JAN 2011,
3 sites up for collective sale
THREE freehold sites - two residential and one commercial - have been put up for collective sale, a further sign that the market remains buoyant.
The residential plots are the MacPherson Green condominium near Tai Seng MRT station and Holland Tower in Holland Heights.
The owners of MacPherson Green want up to $115 million for the 66,928 sq ft plot. Two strips of land nearby are also being offered as part of the sale.
The site consists of a 13-storey tower block of 48 apartments and nine townhouses. At that price, each owner can expect around $1.56 million for a 1,216 sq ft two-bedroom unit or $2.76 million for a 2,325 sq ft townhouse.
The other residential plot, Holland Tower, which sits on 21,879 sq ft of land, is a 14-storey tower with 19 apartments and is sited near the upcoming Holland Village MRT station.
No development charge is payable.
Marketing agent Jones Lang LaSalle declined to give an indicative price but recent developments in the area have sold for between $1,363 and $1,388 per sq ft per plot ratio.
Tenders for the two sites close on Feb 23.
The North Bridge Road Commercial Complex is also up for sale, with the tender closing on March 3. The six-storey block is used for retail outlets and offices.
The 11,615 sq ft plot can be built to a gross floor area of about 48,784 sq ft. However, marketing agent DTZ is seeking the Urban Redevelopment Authority's approval to retain the building's current gross floor area of 66,614 sq ft for the plot's future owners.
The indicative price is between $110 million and $115 million.
CHERYL LIM
3 sites up for collective sale
THREE freehold sites - two residential and one commercial - have been put up for collective sale, a further sign that the market remains buoyant.
The residential plots are the MacPherson Green condominium near Tai Seng MRT station and Holland Tower in Holland Heights.
The owners of MacPherson Green want up to $115 million for the 66,928 sq ft plot. Two strips of land nearby are also being offered as part of the sale.
The site consists of a 13-storey tower block of 48 apartments and nine townhouses. At that price, each owner can expect around $1.56 million for a 1,216 sq ft two-bedroom unit or $2.76 million for a 2,325 sq ft townhouse.
The other residential plot, Holland Tower, which sits on 21,879 sq ft of land, is a 14-storey tower with 19 apartments and is sited near the upcoming Holland Village MRT station.
No development charge is payable.
Marketing agent Jones Lang LaSalle declined to give an indicative price but recent developments in the area have sold for between $1,363 and $1,388 per sq ft per plot ratio.
Tenders for the two sites close on Feb 23.
The North Bridge Road Commercial Complex is also up for sale, with the tender closing on March 3. The six-storey block is used for retail outlets and offices.
The 11,615 sq ft plot can be built to a gross floor area of about 48,784 sq ft. However, marketing agent DTZ is seeking the Urban Redevelopment Authority's approval to retain the building's current gross floor area of 66,614 sq ft for the plot's future owners.
The indicative price is between $110 million and $115 million.
CHERYL LIM
ST Forum : Don't rely on indicative valuations
24 JAN 2011,
Don't rely on indicative valuations
VALUATION is indeed based on detailed research and analysis and not on sentiments (Ms Yvonne Lee-Lek Siew Ling, 'Same bank, same property but... Valuations differed by $200,000.'; last Tuesday).
Indicative valuations provided via agents or banks (if obtained from valuers) are rough estimates as they are given without field inspections, in-depth analysis and data.
They should not be relied upon when making decisions on property investment or divestment.
We caution against relying on such indications, and urge buyers or sellers to obtain proper valuation reports from licensed appraisers if they need to ascertain the market values of their properties.
They will thus avoid getting a wide $200,000 difference in estimate of the same property given by agents or banks.
Desktop valuations are not a subscribed practice and should not be treated as proper valuations.
Ms Lee cited her experience about receiving assurances from agents and bank officers that they could offer valuations to match the asking price.
We seek Ms Lee's assistance to provide us with more details to help us address the problem.
Evelyn Chang (Ms)
Executive Director
Singapore Institute of Surveyors and Valuers
Don't rely on indicative valuations
VALUATION is indeed based on detailed research and analysis and not on sentiments (Ms Yvonne Lee-Lek Siew Ling, 'Same bank, same property but... Valuations differed by $200,000.'; last Tuesday).
Indicative valuations provided via agents or banks (if obtained from valuers) are rough estimates as they are given without field inspections, in-depth analysis and data.
They should not be relied upon when making decisions on property investment or divestment.
We caution against relying on such indications, and urge buyers or sellers to obtain proper valuation reports from licensed appraisers if they need to ascertain the market values of their properties.
They will thus avoid getting a wide $200,000 difference in estimate of the same property given by agents or banks.
Desktop valuations are not a subscribed practice and should not be treated as proper valuations.
Ms Lee cited her experience about receiving assurances from agents and bank officers that they could offer valuations to match the asking price.
We seek Ms Lee's assistance to provide us with more details to help us address the problem.
Evelyn Chang (Ms)
Executive Director
Singapore Institute of Surveyors and Valuers
ST : Waterfront park opens in Woodlands
24 JAN 2011,
Waterfront park opens in Woodlands
WOODLANDS' $19 million coastal park and promenade were officially opened yesterday.
Woodlands Waterfront, as this recreational playground for residents in the north has been named, comprises a 9ha coastal park and a 1.5km-long waterfront promenade.
It also has an event plaza, picnic areas, a playground and an undulating track for cyclists and runners.
Health Minister and Sembawang GRC MP Khaw Boon Wan, who was the guest of honour at the official opening, called the Urban Redevelopment Authority (URA) project 'good value for money'.
He said: 'I've been here several times now, at different times of the day, and it is very well used. I've noticed many come here either to do exercise... or fishing, catching crabs. Or just simply to look at the sunrise and sunset and in the evening, the night skyline of Johor Baru.'
At least 10,000 people have visited the green space so far, said a URA spokesman.
Work on Woodlands Waterfront began in 2009. The first phase launched in May last year made the first 3ha of coastal park and a 400m jetty - one of Singapore's longest recreational ones - accessible to residents.
Mr Ler Seng Ann, URA's group director for conservation and development services, said more improvements are in the pipeline, with the rejuvenation of the Yishun Pond area.
In the meantime, Woodlands Waterfront has become a hit with residents such as Mr Sethupillai Ganesan, a 37-year-old assistant safety manager who lives in Marsiling.
He has been going there with his 11/2-year-old son up to three times a week.
He said: 'I used to have to go all the way to East Coast Park. Now, good air, a free sea view and plenty of greenery are just five minutes away from home.'
MELISSA PANG
Woodlands Waterfront comprises a 9ha coastal park and a 1.5km-long waterfront promenade. It also has a 400m jetty (above), which was launched in May last year. -- ST PHOTO: LAU FOOK KONG
Waterfront park opens in Woodlands
WOODLANDS' $19 million coastal park and promenade were officially opened yesterday.
Woodlands Waterfront, as this recreational playground for residents in the north has been named, comprises a 9ha coastal park and a 1.5km-long waterfront promenade.
It also has an event plaza, picnic areas, a playground and an undulating track for cyclists and runners.
Health Minister and Sembawang GRC MP Khaw Boon Wan, who was the guest of honour at the official opening, called the Urban Redevelopment Authority (URA) project 'good value for money'.
He said: 'I've been here several times now, at different times of the day, and it is very well used. I've noticed many come here either to do exercise... or fishing, catching crabs. Or just simply to look at the sunrise and sunset and in the evening, the night skyline of Johor Baru.'
At least 10,000 people have visited the green space so far, said a URA spokesman.
Work on Woodlands Waterfront began in 2009. The first phase launched in May last year made the first 3ha of coastal park and a 400m jetty - one of Singapore's longest recreational ones - accessible to residents.
Mr Ler Seng Ann, URA's group director for conservation and development services, said more improvements are in the pipeline, with the rejuvenation of the Yishun Pond area.
In the meantime, Woodlands Waterfront has become a hit with residents such as Mr Sethupillai Ganesan, a 37-year-old assistant safety manager who lives in Marsiling.
He has been going there with his 11/2-year-old son up to three times a week.
He said: 'I used to have to go all the way to East Coast Park. Now, good air, a free sea view and plenty of greenery are just five minutes away from home.'
MELISSA PANG
Woodlands Waterfront comprises a 9ha coastal park and a 1.5km-long waterfront promenade. It also has a 400m jetty (above), which was launched in May last year. -- ST PHOTO: LAU FOOK KONG
ST : SC Global to provide 'butler-style' service
24 Jan 2011,
SC Global to provide 'butler-style' service
By Cheryl Lim
FIVE-STAR service, once exclusive to private households, hotels, castles and palaces, will be now available at all of developer SC Global's properties such as Hilltops along Cairnhill Circle.
This swish service will also be on offer at the properties the firm manages, including the Lincoln Modern at Newton.
SC Global is going the extra mile, by training its property management staff to act and think intuitively when serving residents at its properties.
Concierge service will be available at SC Global's four properties while the properties the group manages will have off-site concierge service available.
About 25 frontline staff including condo managers, concierges and technicians from all its properties have undergone a customised six-day programme conducted by Mr Robert Watson, trainer and managing director of the prestigious Guild of Professional English Butlers.
SC Global marketing communications manager Sarah-Jane Smith said exceptional service comes from being observant and picking up on the smaller details.
'(The training will cover) what are the things you think about when you are talking to someone so that you can provide exceptional service,' said Ms Smith. 'Noticing their details, patterns and lifestyles so that you can think 'how I can better provide for them'.'
This attention to detail will eventually cultivate long-term service relationships with residents, said Ms Smith, and is something that will leave residents feeling 'relaxed and comfortable'.
But these soft skills, which could be as simple as remembering a resident's birthday or their preference for tea, often take years to cultivate, said Ms Smith.
SC Global's long-term plan is to send more of its staff for such training.
These skills, she said, will allow SC Global to build up a system of consistently good service.
This will be done through regular training sessions conducted by the guild and creating a 'domino chain' of getting trained staff to pass on their skills and knowledge to their colleagues.
Staff will also undergo different variations of the course to expose them to a range of service scenarios. Examples of these variations would include on-the-job training and individual coaching.
Skills, Mr Watson said, will set them apart from other service providers in Asia, which typically do not have a proactive approach towards service.
Having previously worked with international celebrities such as the late Michael Jackson, Mr Watson has been exposed to many different markets.
But he said Singapore could be a challenging market to serve in because of its multi-cultural environment.
This means staff will need to adapt their services to suit the individual nuances of each culture.
'For example, the English are a little stiff and formal and have to stop for afternoon tea. And if you have an American guest, as long as you've got tomato ketchup on the table you're fine,' said Mr Watson.
Concierge staff during training at The Marq. SC Global is going the extra mile, by training its property management staff to act and think intuitively when serving residents at its properties. -- PHOTO: SC GLOBAL
SC Global to provide 'butler-style' service
By Cheryl Lim
FIVE-STAR service, once exclusive to private households, hotels, castles and palaces, will be now available at all of developer SC Global's properties such as Hilltops along Cairnhill Circle.
This swish service will also be on offer at the properties the firm manages, including the Lincoln Modern at Newton.
SC Global is going the extra mile, by training its property management staff to act and think intuitively when serving residents at its properties.
Concierge service will be available at SC Global's four properties while the properties the group manages will have off-site concierge service available.
About 25 frontline staff including condo managers, concierges and technicians from all its properties have undergone a customised six-day programme conducted by Mr Robert Watson, trainer and managing director of the prestigious Guild of Professional English Butlers.
SC Global marketing communications manager Sarah-Jane Smith said exceptional service comes from being observant and picking up on the smaller details.
'(The training will cover) what are the things you think about when you are talking to someone so that you can provide exceptional service,' said Ms Smith. 'Noticing their details, patterns and lifestyles so that you can think 'how I can better provide for them'.'
This attention to detail will eventually cultivate long-term service relationships with residents, said Ms Smith, and is something that will leave residents feeling 'relaxed and comfortable'.
But these soft skills, which could be as simple as remembering a resident's birthday or their preference for tea, often take years to cultivate, said Ms Smith.
SC Global's long-term plan is to send more of its staff for such training.
These skills, she said, will allow SC Global to build up a system of consistently good service.
This will be done through regular training sessions conducted by the guild and creating a 'domino chain' of getting trained staff to pass on their skills and knowledge to their colleagues.
Staff will also undergo different variations of the course to expose them to a range of service scenarios. Examples of these variations would include on-the-job training and individual coaching.
Skills, Mr Watson said, will set them apart from other service providers in Asia, which typically do not have a proactive approach towards service.
Having previously worked with international celebrities such as the late Michael Jackson, Mr Watson has been exposed to many different markets.
But he said Singapore could be a challenging market to serve in because of its multi-cultural environment.
This means staff will need to adapt their services to suit the individual nuances of each culture.
'For example, the English are a little stiff and formal and have to stop for afternoon tea. And if you have an American guest, as long as you've got tomato ketchup on the table you're fine,' said Mr Watson.
Concierge staff during training at The Marq. SC Global is going the extra mile, by training its property management staff to act and think intuitively when serving residents at its properties. -- PHOTO: SC GLOBAL
ST : Upcoming property launches to test cooling measures
24 Jan 2011,
Upcoming property launches to test cooling measures
Demand is still there, at least for smaller units, say experts
By Esther Teo
THE impact of the latest property cooling measures could soon be tested as developers and marketing agents muster interest for three new property launches.
Far East Organization has been marketing The Cape, its 76-unit development at Amber Road, as 'the pairing of cosmopolitan sensibilities with idyllic sensitivities'.
At the District 15 freehold property - right next to the firm's Silversea project - a one-bedroom unit of 600 sq ft to 650 sq ft is going for about $1.2 million, based on indications from some property agents. This would work out to about $2,000 per sq ft (psf).
A two-bedroom unit would set a buyer back by about $1.7 million. The prices will probably be subject to change until the project goes on sale - the timing is expected to be around Chinese New Year.
Far East is offering some early-bird buyers a 5 per cent cash rebate, which will be paid out only when the project is completed. The Straits Times understands this move is in line with the company's aim of building a stronger base of long-term buyers.
Also coming up is La Fleur, a 'shoebox' development in Geylang, which is expected to hold a preview today. All the 58 units are one-bedders, with sizes ranging from 409 sq ft to 646 sq ft. Prices start at an estimated $490,000 - or roughly $1,200 psf - based on marketing material obtained by The Straits Times.
The District 14 project, which consists of two eight-storey blocks, is being developed by Teambuild Properties.
Over at Balestier, Okio Residences by SDB Asia - a subsidiary of Malaysia-listed Selangor Dredging - will be previewed on Thursday.
Half of the 104 units in the 18-storey freehold project are shoebox apartments of less than 500 sq ft. It also has two-bedroom units, with sizes ranging from 570 sq ft to 667 sq ft, and four penthouses that go up to 1,098 sq ft.
Agents said a 420 sq ft apartment would cost an estimated $650,000.
Separately, at d'Leedon, CapitaLand's 1,715-unit project at Farrer Road, the showroom was reopened to the public over the weekend after the company sold 232 of the 250 units released during the initial launch last month.
Experts said projects with smaller units were still being launched because the purchase price of such units remained manageable for buyers.
Mr Colin Tan, a research and consultancy director at Chesterton Suntec International, said that even though buying sentiment had been affected by the cooling measures, there was still demand from home buyers.
'Developers can't push sales and prices at the same time - something has got to give. But demand is still there, so it's up to the developers to be creative in enticing buyers,' he noted.
esthert@sph.com.sg
Upcoming property launches to test cooling measures
Demand is still there, at least for smaller units, say experts
By Esther Teo
THE impact of the latest property cooling measures could soon be tested as developers and marketing agents muster interest for three new property launches.
Far East Organization has been marketing The Cape, its 76-unit development at Amber Road, as 'the pairing of cosmopolitan sensibilities with idyllic sensitivities'.
At the District 15 freehold property - right next to the firm's Silversea project - a one-bedroom unit of 600 sq ft to 650 sq ft is going for about $1.2 million, based on indications from some property agents. This would work out to about $2,000 per sq ft (psf).
A two-bedroom unit would set a buyer back by about $1.7 million. The prices will probably be subject to change until the project goes on sale - the timing is expected to be around Chinese New Year.
Far East is offering some early-bird buyers a 5 per cent cash rebate, which will be paid out only when the project is completed. The Straits Times understands this move is in line with the company's aim of building a stronger base of long-term buyers.
Also coming up is La Fleur, a 'shoebox' development in Geylang, which is expected to hold a preview today. All the 58 units are one-bedders, with sizes ranging from 409 sq ft to 646 sq ft. Prices start at an estimated $490,000 - or roughly $1,200 psf - based on marketing material obtained by The Straits Times.
The District 14 project, which consists of two eight-storey blocks, is being developed by Teambuild Properties.
Over at Balestier, Okio Residences by SDB Asia - a subsidiary of Malaysia-listed Selangor Dredging - will be previewed on Thursday.
Half of the 104 units in the 18-storey freehold project are shoebox apartments of less than 500 sq ft. It also has two-bedroom units, with sizes ranging from 570 sq ft to 667 sq ft, and four penthouses that go up to 1,098 sq ft.
Agents said a 420 sq ft apartment would cost an estimated $650,000.
Separately, at d'Leedon, CapitaLand's 1,715-unit project at Farrer Road, the showroom was reopened to the public over the weekend after the company sold 232 of the 250 units released during the initial launch last month.
Experts said projects with smaller units were still being launched because the purchase price of such units remained manageable for buyers.
Mr Colin Tan, a research and consultancy director at Chesterton Suntec International, said that even though buying sentiment had been affected by the cooling measures, there was still demand from home buyers.
'Developers can't push sales and prices at the same time - something has got to give. But demand is still there, so it's up to the developers to be creative in enticing buyers,' he noted.
esthert@sph.com.sg
ST : Property curbs for more Chinese cities
24 Jan 2011,
Property curbs for more Chinese cities
Home buyers in second- and third-tier cities to be reined in
BEIJING: China is to extend its curbs on property purchases to second- and third- tier cities, it was reported yesterday, as it rolls out more measures to cap soaring housing prices.
The authorities have drawn up a list of cities - among them Qingdao and Jinan - that will have to implement the limits, the Chongqing Evening News quoted an unnamed high-level official at the Ministry of Housing and Urban-Rural Development as saying. There is no formal definition of a second-tier city. A city with at least four million people, fast-growing purchasing power, good growth numbers, developed infrastructure, or a combination of these factors, can be deemed second-tier. Most provincial capitals such as Jinan and Harbin are considered third-tier cities.
The latest curbs come after top-tier cities such as Beijing and Shanghai have issued property purchase limits.
Beijing was the first to introduce tough measures when it barred families from buying more than one home in May last year. Shanghai followed suit in October.
According to yesterday's report, 16 cities have issued such regulations - one of several measures aimed at cooling China's heated property market.
The government has also raised minimum downpayments needed for property transactions to at least 30 per cent, and the central bank has increased interest rates twice since October last year.
It has also raised the amount of money that banks must keep in reserve, in a bid to curb lending.
However, property prices have stayed stubbornly high, posting their fourth straight month-on-month rise last month, even though December is usually a slow month for home sales.
Shanghai and Chongqing have already announced that they will introduce a property tax to curb speculation so as to increase the supply of affordable housing.
Shanghai, China's richest city, is expected to impose the tax only on those buying new homes, while Chongqing will impose it on those buying expensive residential units, local reports said.
Analysts have blamed the government's massive stimulus measures launched to combat the financial crisis in late 2008 for flooding the market with liquidity that has led to rising property prices and inflation.
Meanwhile, new regulations aimed at ending illegal forced demolitions came into effect last Friday.
The rules seek to reduce disputes over the expropriation and demolition of people's homes to make way for new buildings, the official Xinhua news agency reported late on Saturday.
Under the rules, violence or coercion cannot be used to evict homeowners.
If the government authorities cannot reach an agreement with residents over expropriation or compensation for their property, demolitions can be carried out only after the local court has reviewed and approved them.
The previous rules had authorised local governments to enforce demolitions, the report said, quoting unnamed officials at the Ministry of Housing and Urban-Rural Development and the State Council, China's Cabinet.
Land disputes have become China's most volatile social problem as officials and developers seek to cash in on the property boom, sometimes forcing people out of their homes without proper compensation.
According to figures released by the China Academy of Social Sciences, a top government think-tank, fights over land account for 65 per cent of rural 'mass conflicts', and the problem is prevalent in cities too.
AGENCE FRANCE-PRESSE, BLOOMBERG, REUTERS
Property curbs for more Chinese cities
Home buyers in second- and third-tier cities to be reined in
BEIJING: China is to extend its curbs on property purchases to second- and third- tier cities, it was reported yesterday, as it rolls out more measures to cap soaring housing prices.
The authorities have drawn up a list of cities - among them Qingdao and Jinan - that will have to implement the limits, the Chongqing Evening News quoted an unnamed high-level official at the Ministry of Housing and Urban-Rural Development as saying. There is no formal definition of a second-tier city. A city with at least four million people, fast-growing purchasing power, good growth numbers, developed infrastructure, or a combination of these factors, can be deemed second-tier. Most provincial capitals such as Jinan and Harbin are considered third-tier cities.
The latest curbs come after top-tier cities such as Beijing and Shanghai have issued property purchase limits.
Beijing was the first to introduce tough measures when it barred families from buying more than one home in May last year. Shanghai followed suit in October.
According to yesterday's report, 16 cities have issued such regulations - one of several measures aimed at cooling China's heated property market.
The government has also raised minimum downpayments needed for property transactions to at least 30 per cent, and the central bank has increased interest rates twice since October last year.
It has also raised the amount of money that banks must keep in reserve, in a bid to curb lending.
However, property prices have stayed stubbornly high, posting their fourth straight month-on-month rise last month, even though December is usually a slow month for home sales.
Shanghai and Chongqing have already announced that they will introduce a property tax to curb speculation so as to increase the supply of affordable housing.
Shanghai, China's richest city, is expected to impose the tax only on those buying new homes, while Chongqing will impose it on those buying expensive residential units, local reports said.
Analysts have blamed the government's massive stimulus measures launched to combat the financial crisis in late 2008 for flooding the market with liquidity that has led to rising property prices and inflation.
Meanwhile, new regulations aimed at ending illegal forced demolitions came into effect last Friday.
The rules seek to reduce disputes over the expropriation and demolition of people's homes to make way for new buildings, the official Xinhua news agency reported late on Saturday.
Under the rules, violence or coercion cannot be used to evict homeowners.
If the government authorities cannot reach an agreement with residents over expropriation or compensation for their property, demolitions can be carried out only after the local court has reviewed and approved them.
The previous rules had authorised local governments to enforce demolitions, the report said, quoting unnamed officials at the Ministry of Housing and Urban-Rural Development and the State Council, China's Cabinet.
Land disputes have become China's most volatile social problem as officials and developers seek to cash in on the property boom, sometimes forcing people out of their homes without proper compensation.
According to figures released by the China Academy of Social Sciences, a top government think-tank, fights over land account for 65 per cent of rural 'mass conflicts', and the problem is prevalent in cities too.
AGENCE FRANCE-PRESSE, BLOOMBERG, REUTERS
ST : How to invest in a non-residential property
23 Jan 2011,
How to invest in a non-residential property
A clear budget and a firm grasp of how much one can sensibly borrow are essential before deciding on which commercial or industrial property to buy.
It is also important for an investor to visit the site to ensure that he is comfortable with the existing tenant mix and to choose, if possible, a trade that he is already familiar with. This will allow him to use the unit for his own purposes should the economy head south.
Experts say that while sophistication is not a prerequisite, investors will need to arm themselves with a good understanding of the market dynamics and practices.
These tend to differ from those of the residential sector, since the commercial and industrial sector is more specialised.
International Property Advisor chief executive Ku Swee Yong said that once an investor is convinced that he has the appetite for these segments, he should find a specialised agent to assist him.
'You would not only require a trustworthy agent to guide you to the appropriate properties, but also to assist with the rentals after you have invested,' he said.
Other professionals - such as specialised consultants or brokers - can also help provide comparative advice on which sector might be most suitable for your budget and assist in obtaining financing assistance.
In addition, investors should also determine the price-tier they are keen on investing in, as the pool of potential tenants will be different for each.
DTZ's South-east Asia research head, Ms Chua Chor Hoon, added that investors with no prior knowledge about the segment can read up more on economic and property market reports to learn more about current and future trends.
They can also visit the properties and their surroundings, ascertain the rental demand and possible rental returns, recent transacted price and historical trends. They can also speak to the banks on how much they can borrow and applicable mortgage rates, she added.
Investors should also find out the different subclassifications for each sector - especially for industrial properties - which determine the uses that are allowed for the space. This is important as it will determine the rentals achieved.
It should be noted that unlike the residential sector - which has the population as its potential demand base - commercial and industrial properties, being business premises, are more susceptible to economic cycles and might be more adversely affected during a recession.
How to invest in a non-residential property
A clear budget and a firm grasp of how much one can sensibly borrow are essential before deciding on which commercial or industrial property to buy.
It is also important for an investor to visit the site to ensure that he is comfortable with the existing tenant mix and to choose, if possible, a trade that he is already familiar with. This will allow him to use the unit for his own purposes should the economy head south.
Experts say that while sophistication is not a prerequisite, investors will need to arm themselves with a good understanding of the market dynamics and practices.
These tend to differ from those of the residential sector, since the commercial and industrial sector is more specialised.
International Property Advisor chief executive Ku Swee Yong said that once an investor is convinced that he has the appetite for these segments, he should find a specialised agent to assist him.
'You would not only require a trustworthy agent to guide you to the appropriate properties, but also to assist with the rentals after you have invested,' he said.
Other professionals - such as specialised consultants or brokers - can also help provide comparative advice on which sector might be most suitable for your budget and assist in obtaining financing assistance.
In addition, investors should also determine the price-tier they are keen on investing in, as the pool of potential tenants will be different for each.
DTZ's South-east Asia research head, Ms Chua Chor Hoon, added that investors with no prior knowledge about the segment can read up more on economic and property market reports to learn more about current and future trends.
They can also visit the properties and their surroundings, ascertain the rental demand and possible rental returns, recent transacted price and historical trends. They can also speak to the banks on how much they can borrow and applicable mortgage rates, she added.
Investors should also find out the different subclassifications for each sector - especially for industrial properties - which determine the uses that are allowed for the space. This is important as it will determine the rentals achieved.
It should be noted that unlike the residential sector - which has the population as its potential demand base - commercial and industrial properties, being business premises, are more susceptible to economic cycles and might be more adversely affected during a recession.
ST : Lakeside city centre planned for Jurong
23 Jan 2011,
Lakeside city centre planned for Jurong
By Rachel Chang
A new city centre in the west will take shape by Jurong Lake over the next decade under the Remaking Our Heartland programme.
To be called Jurong Gateway, it will span an area the size of 70 football fields and be the largest commercial hub outside the Central Business District.
It will be home to the Jurong General Hospital and Community Hospital, a mall with an Olympic-sized ice-skating rink, and office facilities.
The existing heartland neighbourhoods in Jurong are also set for a thorough facelift: a 24km network of pedestrian and cycling tracks linking up the region will be completed in five years.
A Bukit Batok resident will then have a through path to the Jurong East MRT station - one which crosses the Pan-Island Expressway - and he or she will even be able to make it to the Bukit Timah Nature Reserve.
Two new iconic Housing Board estates in the mould of Pinnacle@Duxton will also spring up alongside Bukit Batok Avenue 1, providing some 1,200 homes for new families or upgraders.
All in all, the plan to 'remake' the Jurong Lake area aims to propel the region beyond its industrial reputation into a destination neighbourhood.
Unveiling details of the remaking plans yesterday, Minister in the Prime Minister's Office Lim Boon Heng, an MP in Jurong GRC, said: 'There was a time when nobody believed we could transform the Jurong area from swamps to a thriving industrial area.'
He was referring to the early days of Singapore's independence in the 1960s, when multinational corporations were invited to set up 'pioneer' industries in Jurong, a move that was seen as make-or-break for the fledgling nation's economy.
'Not only have we proven all the critics wrong, but we are now taking it one step further,' he said.
The makeover is part of the $1 billion second phase of the Housing Board's Remaking Our Heartland programme to rejuvenate mature estates over the next five years. The other two towns selected are Hougang and East Coast.
The plans for Jurong Lake, the third and last to be revealed by the Housing Board, combine the need to rejuvenate Jurong's old estates with the impetus to develop the swathes of vacant land in its vicinity for a younger generation of home owners.
All 10 of its existing neighbourhood centres, from Boon Lay to Taman Jurong, are slated for a variety of changes such as new pavilions, better lighting, playgrounds and sports facilities. Two new parks near Jurong East MRT station and at Toh Guan will boast attractions such as dog runs and plant nurseries.
The waterfront facilities available at Lakeside, Pandan Reservoir and Jurong Lake will include restaurants and hotels and will cater for activities such as water sports.
Mr Lim later told reporters he hoped the new hotels would make Jurong, an industrial town with many factories and offices, a one-stop location for foreigners here on business. 'With the beautiful scenery of Jurong Lake, I'm sure the hotels will give the hotels in town a run for their money,' he said.
The project's aim is to increase the quality of life for Jurong residents, he added, but he also hoped it would not lead to a rush to move into the area that unnecessarily pushed up property prices.
Quality assurance engineer Ng Kian Hoo, 40, said he felt that his Jurong East neighbourhood, about 30 years old, was 'overdue' for a facelift.
'I'm happiest with the Jurong Gateway regional centre. When that is up, the value of my flat will increase,' he said.
The public exhibition, in a white tent next to Jurong East MRT station, will be open until Wednesday.
Lakeside city centre planned for Jurong
By Rachel Chang
A new city centre in the west will take shape by Jurong Lake over the next decade under the Remaking Our Heartland programme.
To be called Jurong Gateway, it will span an area the size of 70 football fields and be the largest commercial hub outside the Central Business District.
It will be home to the Jurong General Hospital and Community Hospital, a mall with an Olympic-sized ice-skating rink, and office facilities.
The existing heartland neighbourhoods in Jurong are also set for a thorough facelift: a 24km network of pedestrian and cycling tracks linking up the region will be completed in five years.
A Bukit Batok resident will then have a through path to the Jurong East MRT station - one which crosses the Pan-Island Expressway - and he or she will even be able to make it to the Bukit Timah Nature Reserve.
Two new iconic Housing Board estates in the mould of Pinnacle@Duxton will also spring up alongside Bukit Batok Avenue 1, providing some 1,200 homes for new families or upgraders.
All in all, the plan to 'remake' the Jurong Lake area aims to propel the region beyond its industrial reputation into a destination neighbourhood.
Unveiling details of the remaking plans yesterday, Minister in the Prime Minister's Office Lim Boon Heng, an MP in Jurong GRC, said: 'There was a time when nobody believed we could transform the Jurong area from swamps to a thriving industrial area.'
He was referring to the early days of Singapore's independence in the 1960s, when multinational corporations were invited to set up 'pioneer' industries in Jurong, a move that was seen as make-or-break for the fledgling nation's economy.
'Not only have we proven all the critics wrong, but we are now taking it one step further,' he said.
The makeover is part of the $1 billion second phase of the Housing Board's Remaking Our Heartland programme to rejuvenate mature estates over the next five years. The other two towns selected are Hougang and East Coast.
The plans for Jurong Lake, the third and last to be revealed by the Housing Board, combine the need to rejuvenate Jurong's old estates with the impetus to develop the swathes of vacant land in its vicinity for a younger generation of home owners.
All 10 of its existing neighbourhood centres, from Boon Lay to Taman Jurong, are slated for a variety of changes such as new pavilions, better lighting, playgrounds and sports facilities. Two new parks near Jurong East MRT station and at Toh Guan will boast attractions such as dog runs and plant nurseries.
The waterfront facilities available at Lakeside, Pandan Reservoir and Jurong Lake will include restaurants and hotels and will cater for activities such as water sports.
Mr Lim later told reporters he hoped the new hotels would make Jurong, an industrial town with many factories and offices, a one-stop location for foreigners here on business. 'With the beautiful scenery of Jurong Lake, I'm sure the hotels will give the hotels in town a run for their money,' he said.
The project's aim is to increase the quality of life for Jurong residents, he added, but he also hoped it would not lead to a rush to move into the area that unnecessarily pushed up property prices.
Quality assurance engineer Ng Kian Hoo, 40, said he felt that his Jurong East neighbourhood, about 30 years old, was 'overdue' for a facelift.
'I'm happiest with the Jurong Gateway regional centre. When that is up, the value of my flat will increase,' he said.
The public exhibition, in a white tent next to Jurong East MRT station, will be open until Wednesday.
ST : How about real estate investment trusts?
23 Jan 2011,
How about real estate investment trusts?
Real estate investment trusts (Reits) - which invest in a portfolio of properties and get income from rents - also offer investors access to the industrial and commercial market without buying bricks and mortar.
Reits may have a portfolio of offices or malls, such as CapitaCommercial Trust, K-Reit Asia, CapitaMall Trust and Suntec Reit. They are listed on the Singapore Exchange.
Experts said, however, there are significant differences between investing in a listed industrial or commercial Reit and a physical property of that type.
Colliers International director of research and advisory Tay Huey Ying said that the advantages of investing in a physical property include property rights ownership and pride of ownership.
A physical property is a visible asset and would give the investor a better sense of stability and security. It is also the preferred form of bequeathing wealth to the next generation in traditional families, she added.
'By owning the property, the investor is given the exclusive right to use the property while Reit investors hold only a share of the portfolio of properties and do not have exclusive rights to it.'
There is, however, a downside to the investment involving the larger capital needed to be stumped up and the more active role needed in the property's management and repair, said Mr Ong Kah Seng, Cushman & Wakefield's senior manager for Asia-Pacific research.
Direct property investment usually requires a higher investment sum owing to the indivisibility of properties, unlike Reits, and higher transactional costs such as legal and agency fees, experts added.
There is also less potential for diversification. The high investment outlay and location-specific characteristics mean that retail investors can afford to purchase only a limited number of properties, Colliers' Ms Tay said.
She added that Reits, however, allow the manager to acquire a variety of properties in different locations - including cross-border locations - allowing it to diversify the Reit's risks more effectively.
How about real estate investment trusts?
Real estate investment trusts (Reits) - which invest in a portfolio of properties and get income from rents - also offer investors access to the industrial and commercial market without buying bricks and mortar.
Reits may have a portfolio of offices or malls, such as CapitaCommercial Trust, K-Reit Asia, CapitaMall Trust and Suntec Reit. They are listed on the Singapore Exchange.
Experts said, however, there are significant differences between investing in a listed industrial or commercial Reit and a physical property of that type.
Colliers International director of research and advisory Tay Huey Ying said that the advantages of investing in a physical property include property rights ownership and pride of ownership.
A physical property is a visible asset and would give the investor a better sense of stability and security. It is also the preferred form of bequeathing wealth to the next generation in traditional families, she added.
'By owning the property, the investor is given the exclusive right to use the property while Reit investors hold only a share of the portfolio of properties and do not have exclusive rights to it.'
There is, however, a downside to the investment involving the larger capital needed to be stumped up and the more active role needed in the property's management and repair, said Mr Ong Kah Seng, Cushman & Wakefield's senior manager for Asia-Pacific research.
Direct property investment usually requires a higher investment sum owing to the indivisibility of properties, unlike Reits, and higher transactional costs such as legal and agency fees, experts added.
There is also less potential for diversification. The high investment outlay and location-specific characteristics mean that retail investors can afford to purchase only a limited number of properties, Colliers' Ms Tay said.
She added that Reits, however, allow the manager to acquire a variety of properties in different locations - including cross-border locations - allowing it to diversify the Reit's risks more effectively.
ST : Property investors starting to look overseas
21 Jan 2011,
Property investors starting to look overseas
Interest in foreign markets on the rise in the wake of recent cooling measures, say experts
By Cheryl Lim
A PASSION by investors here for buying into Singapore's sizzling residential property market may be giving way to a foreign affair, say some property analysts.
They suggest that in the wake of the Government's latest round of property market cooling measures, some investors may turn their attention abroad instead.
A stronger Singapore dollar is giving them more buying power in many overseas markets.
Investors make up a sizeable part of the buying market here. Deterred by a far higher stamp duty on sellers and the need to stump more cash up front, these investors are looking to markets as far afield as Switzerland.
This is in addition to projects in foreign markets such as Australia, Britain and Malaysia, which have long been widely promoted in Singapore.
A recent spate of sales exhibitors here have been marketing projects in Japan, Switzerland and New York.
Buyers who leave a foreign property to be rented out by local professionals typically pay management fees of between 10 per cent and 40 per cent of total annual rentals.
DTZ's South-east Asia research head Chua Chor Hoon said a surge in interest here in such properties signals more opportunities for foreign developers in the Singapore market.
'Residential prices are at their peak and the Government has been intervening. So more Singaporeans are looking at non-residential assets or looking to invest in foreign properties,' she said.
Sales of such projects are small compared to launches of other local developments, but developers are promising rental yields of between 6 per cent and 9 per cent.
Developers of a Swiss project in the alpine town of Nendaz said while no sales were closed at its pre-sale cocktail session on Thursday, there has been 'strong buyer interest' in the development. Prices for a 592 sq ft chalet-style apartment start from 369,000 Swiss francs (S$493,000).
Investors were also keen on units at the Shiki Niseko ski resort in Japan. A sales exhibition held last weekend saw 100 walk-in participants. About 26 of the units were sold in Singapore, with 90 per cent of buyers purchasing for investment.
The freehold development features 69 fully furnished one-, two- and three-bedroom units and two-bedroom penthouses ranging between 632 sq ft and 1,636 sq ft, with prices starting from about US$600,000 (S$773,000) for a one-bedroom unit.
One buyer, who declined to be named, bought units at both the Swiss and Japanese projects. He also has two London apartments for his children to live in.
Although he purchased those properties for personal reasons, he agreed that buying property overseas would be an attractive option for any investor.
'If you hold it long enough, property will appreciate... when we bought the London apartments, we never considered whether prices would appreciate. Now after 10 years, if we can sell it, the profit we'll make will be more than enough to cover my children's education fees,' he said.
But such rewards are not without risks. In 2001, about 90 Singaporeans paid $16,000 for units at Villa Temasek development in Bintan, but the developer disappeared before work was completed.
And in 1996, more than 40 buyers in Singapore and Malaysia lost between US$54,000 and US$98,000 when an 816-unit condominium project in Bangalore was aborted.
DTZ's Ms Chua highlighted other risks including a drop in the property's value in Singdollar terms if the country's currency depreciates against the Singdollar.
She added that investors also should be aware of the various rules and restrictions overseas before signing any deal.
International property investment company IP Global's managing director Tim Murphy agreed and said property is like any other investment product.
Investors need to do research before ploughing their money into it, he said.
'People need to know what the cost and rental rates are going to be, they need to find out if they are getting the best mortgages. They should also be a bit sceptical of locations, they're not always fantastic,' he said.
cherlim@sph.com.sg
Property investors starting to look overseas
Interest in foreign markets on the rise in the wake of recent cooling measures, say experts
By Cheryl Lim
A PASSION by investors here for buying into Singapore's sizzling residential property market may be giving way to a foreign affair, say some property analysts.
They suggest that in the wake of the Government's latest round of property market cooling measures, some investors may turn their attention abroad instead.
A stronger Singapore dollar is giving them more buying power in many overseas markets.
Investors make up a sizeable part of the buying market here. Deterred by a far higher stamp duty on sellers and the need to stump more cash up front, these investors are looking to markets as far afield as Switzerland.
This is in addition to projects in foreign markets such as Australia, Britain and Malaysia, which have long been widely promoted in Singapore.
A recent spate of sales exhibitors here have been marketing projects in Japan, Switzerland and New York.
Buyers who leave a foreign property to be rented out by local professionals typically pay management fees of between 10 per cent and 40 per cent of total annual rentals.
DTZ's South-east Asia research head Chua Chor Hoon said a surge in interest here in such properties signals more opportunities for foreign developers in the Singapore market.
'Residential prices are at their peak and the Government has been intervening. So more Singaporeans are looking at non-residential assets or looking to invest in foreign properties,' she said.
Sales of such projects are small compared to launches of other local developments, but developers are promising rental yields of between 6 per cent and 9 per cent.
Developers of a Swiss project in the alpine town of Nendaz said while no sales were closed at its pre-sale cocktail session on Thursday, there has been 'strong buyer interest' in the development. Prices for a 592 sq ft chalet-style apartment start from 369,000 Swiss francs (S$493,000).
Investors were also keen on units at the Shiki Niseko ski resort in Japan. A sales exhibition held last weekend saw 100 walk-in participants. About 26 of the units were sold in Singapore, with 90 per cent of buyers purchasing for investment.
The freehold development features 69 fully furnished one-, two- and three-bedroom units and two-bedroom penthouses ranging between 632 sq ft and 1,636 sq ft, with prices starting from about US$600,000 (S$773,000) for a one-bedroom unit.
One buyer, who declined to be named, bought units at both the Swiss and Japanese projects. He also has two London apartments for his children to live in.
Although he purchased those properties for personal reasons, he agreed that buying property overseas would be an attractive option for any investor.
'If you hold it long enough, property will appreciate... when we bought the London apartments, we never considered whether prices would appreciate. Now after 10 years, if we can sell it, the profit we'll make will be more than enough to cover my children's education fees,' he said.
But such rewards are not without risks. In 2001, about 90 Singaporeans paid $16,000 for units at Villa Temasek development in Bintan, but the developer disappeared before work was completed.
And in 1996, more than 40 buyers in Singapore and Malaysia lost between US$54,000 and US$98,000 when an 816-unit condominium project in Bangalore was aborted.
DTZ's Ms Chua highlighted other risks including a drop in the property's value in Singdollar terms if the country's currency depreciates against the Singdollar.
She added that investors also should be aware of the various rules and restrictions overseas before signing any deal.
International property investment company IP Global's managing director Tim Murphy agreed and said property is like any other investment product.
Investors need to do research before ploughing their money into it, he said.
'People need to know what the cost and rental rates are going to be, they need to find out if they are getting the best mortgages. They should also be a bit sceptical of locations, they're not always fantastic,' he said.
cherlim@sph.com.sg
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