Concerns over demand & supply of HDB flats to be raised in Parliament
By Lin Jiamei, 938LIVE | Posted: 20 November 2009 1607 hrs
SINGAPORE: Concerns over the property market will be one of the main topics to be discussed in Parliament next week.
MP for Aljunied GRC Cynthia Phua will be asking the Minister for National Development about the projected supply and demand of HDB flats over the next five years while MP for Marine Parade GRC Muhammad Faishal wants to know about the waiting time for new couples applying for HDB flats.
MPs are also planning to ask the Minister of Foreign Affairs for his assessment of the recently concluded APEC meetings.
And there are three questions on Shell's S$1-per-litre fuel promotion on October 24 and the traffic jams that resulted.
Concerns over new immigrants will also be discussed.
Opposition MP Chiam See Tong will be asking the Deputy Prime Minister on the number of foreigners who have successfully applied for permanent residency in Singapore.
Parliament is also expected to introduce changes to the Moneylenders Act to enhance penalties for loansharks.
Parliament will sit at 1.30pm on Monday. - 938LIVE/vm
Saturday, November 21, 2009
TODAY Online : Singing the bubble blues
Singing the bubble blues
Is the market really cooling off? Some don't think so and expect more measures if exuberance persists
05:55 AM Nov 21, 2009
by Tan Hui Leng
SINGAPORE - Sales of private homes have dipped to their second lowest level this year in October according to data released by the Urban Redevelopment Authority (URA) this week.
While market observers believe that this downward trend was the result of the recent anti-speculative measures introduced by the Government, some analysts are sceptical that the market has started to cool.
According to statistics, sales of new properties have been tapering off in the last three months from 1,805 in August, to 1,143 in September, and 811 in October.
Still, this is after a record of 2,772 units sold in July and way above the year's lowest level in January when only 108 units were sold.
Analysts reckoned that sentiment in the property market had simmered down in August and September as it coincided with the Hungry Ghost Festival, a traditionally quiet period.
Sales failed to pick up in September after the Government announced anti-speculative measures which included the removal of the Interest Absorption Scheme.
However, Chesterton Suntec International's research and consultancy head Colin Tan said that the total of 811 units sold in October was still above average when compared to some 600 homes sold a month before 2007 - the height of the last property rally. This figure, he added, does not bode well when factors such as falling rents and supply glut are taken into account as well.
According to URA's data, the vacancy rate of completed private residential units increased from 5.9 per cent as at the end of Q2 this year to 6.2 per cent as at end Q3.
"Government intervention is inevitable," said Mr Tan, who attributes the strong showing in property sales to excess liquidity from both local and foreign buyers.
"This excess money is too strong to fight," said Mr Tan. He also expects the authorities to consider reducing mortgage loan amount to a lower proportion of the sale price - down from the 80 per cent now.
"If confidence is hit badly, then at least the asset bubble will not be as large," he added.
Meanwhile, Ngee Ann Polytechnic real estate lecturer Nicholas Mak takes a more sanguine view. "I don't think the authorities will put in any measures in the next three to six months," he said. "I expect sales to move forward on a steady keel and keep within the volume of 600 to 1,500 units."
As long as there are no excessive signs of speculation and no sharp price increases, Mr Mak does not expect the authorities to take further action, particularly as the decline in rental is moderating and hitting bottom soon.
"Possible danger signs are when everything starts to go up: Prices, rentals and volume of speculation," he said. "Then that is when the Government may do something."
Jones Lang Lasalle South-east Asia's head of research, Dr Chua Yang Liang, expects transaction volume in the non-landed segment to contract by a further 10 to 20 per cent on the back of the seasonal year-end slowdown and anti-speculative measures.
"However, should housing price growth continue to surge ahead of economic fundamentals despite the recent moral persuasion by the Government to cool residential demand, further anti-speculative measures with a bigger bite could be introduced. For example, a capital gains tax say for those who flip within a two-year period of the first purchase," he said in response to the monthly sales figures released on Monday. Tan Hui Leng
Is the market really cooling off? Some don't think so and expect more measures if exuberance persists
05:55 AM Nov 21, 2009
by Tan Hui Leng
SINGAPORE - Sales of private homes have dipped to their second lowest level this year in October according to data released by the Urban Redevelopment Authority (URA) this week.
While market observers believe that this downward trend was the result of the recent anti-speculative measures introduced by the Government, some analysts are sceptical that the market has started to cool.
According to statistics, sales of new properties have been tapering off in the last three months from 1,805 in August, to 1,143 in September, and 811 in October.
Still, this is after a record of 2,772 units sold in July and way above the year's lowest level in January when only 108 units were sold.
Analysts reckoned that sentiment in the property market had simmered down in August and September as it coincided with the Hungry Ghost Festival, a traditionally quiet period.
Sales failed to pick up in September after the Government announced anti-speculative measures which included the removal of the Interest Absorption Scheme.
However, Chesterton Suntec International's research and consultancy head Colin Tan said that the total of 811 units sold in October was still above average when compared to some 600 homes sold a month before 2007 - the height of the last property rally. This figure, he added, does not bode well when factors such as falling rents and supply glut are taken into account as well.
According to URA's data, the vacancy rate of completed private residential units increased from 5.9 per cent as at the end of Q2 this year to 6.2 per cent as at end Q3.
"Government intervention is inevitable," said Mr Tan, who attributes the strong showing in property sales to excess liquidity from both local and foreign buyers.
"This excess money is too strong to fight," said Mr Tan. He also expects the authorities to consider reducing mortgage loan amount to a lower proportion of the sale price - down from the 80 per cent now.
"If confidence is hit badly, then at least the asset bubble will not be as large," he added.
Meanwhile, Ngee Ann Polytechnic real estate lecturer Nicholas Mak takes a more sanguine view. "I don't think the authorities will put in any measures in the next three to six months," he said. "I expect sales to move forward on a steady keel and keep within the volume of 600 to 1,500 units."
As long as there are no excessive signs of speculation and no sharp price increases, Mr Mak does not expect the authorities to take further action, particularly as the decline in rental is moderating and hitting bottom soon.
"Possible danger signs are when everything starts to go up: Prices, rentals and volume of speculation," he said. "Then that is when the Government may do something."
Jones Lang Lasalle South-east Asia's head of research, Dr Chua Yang Liang, expects transaction volume in the non-landed segment to contract by a further 10 to 20 per cent on the back of the seasonal year-end slowdown and anti-speculative measures.
"However, should housing price growth continue to surge ahead of economic fundamentals despite the recent moral persuasion by the Government to cool residential demand, further anti-speculative measures with a bigger bite could be introduced. For example, a capital gains tax say for those who flip within a two-year period of the first purchase," he said in response to the monthly sales figures released on Monday. Tan Hui Leng
ST Forum : Block eligible for other upgrading schemes
Nov 21, 2009
Block eligible for other upgrading schemes
WE THANK Ms Pamela Hoo for last Saturday's letter, 'Left out of Sers'. The Selective En-bloc Redevelopment Scheme (Sers) is implemented only for old HDB precincts that can be redeveloped to optimise land use. Blocks 110, 111, 113 and 114 Bukit Merah View were identified for Sers based on this principle.
Block 116 is physically separated from the Sers precinct by Bukit Merah View road and Block 115 (market and food centre). Together with the market and food centre, the shops and eating houses in Block 116 form an integral focal point of the community to serve the needs of the surrounding residents.
While Block 116 is not suitable for Sers, it is eligible for other upgrading programmes that can improve lift access and the conditions of the flats. Details will be announced when the plans for the block are firmed up.
Heng Mien Joo (Mrs)
Deputy Director (Projects & Development)
Housing & Development Board
Block eligible for other upgrading schemes
WE THANK Ms Pamela Hoo for last Saturday's letter, 'Left out of Sers'. The Selective En-bloc Redevelopment Scheme (Sers) is implemented only for old HDB precincts that can be redeveloped to optimise land use. Blocks 110, 111, 113 and 114 Bukit Merah View were identified for Sers based on this principle.
Block 116 is physically separated from the Sers precinct by Bukit Merah View road and Block 115 (market and food centre). Together with the market and food centre, the shops and eating houses in Block 116 form an integral focal point of the community to serve the needs of the surrounding residents.
While Block 116 is not suitable for Sers, it is eligible for other upgrading programmes that can improve lift access and the conditions of the flats. Details will be announced when the plans for the block are firmed up.
Heng Mien Joo (Mrs)
Deputy Director (Projects & Development)
Housing & Development Board
ST : No stamp duty boost for Govt
Nov 21, 2009
PROPERTY BOOM
No stamp duty boost for Govt
More units sold, but these may not match up to last year's overall value
By Fiona Chan
THIS year's surprise housing boom may have provided an unexpected windfall for property owners - but not necessarily for the Government.
Developers and individual sellers will probably sell twice the number of private homes this year than they did last year, going by the latest property market figures.
However, the Government is unlikely to see an increase in its revenues from stamp duty, which is a tax on transactions such as property sales.
This is mainly because many of the homes sold in the current boom are much smaller in size and located in the cheaper suburban areas.
So the value of homes sold this year - which determines the amount of stamp duty payable - may not surpass that of last year, when more luxury homes were sold, say property consultants.
Stamp duty takings so far this year bear this out. From January to September, the Government took in $1.37 billion in stamp duty, according to figures from the Department of Statistics website.
This is about 15 per cent less than in the same period last year, even though the property market was slowing down then in anticipation of the financial crisis that hit hard in September that year.
For the whole of last year, the Government received $1.84 billion in stamp duty. This year's stamp duty collections may be about the same level or even lower, now that the property boom appears to be losing steam, say property consultants.
However, stamp duties look set to exceed the Government's initial expectations at the beginning of the year, when the recession was at its worst and the property market was in a slump.
In its January Budget, the Government projected stamp duty takings of only $1billion for the 2009 financial year, which started in April and ends in March next year. So far, between April and September, the Government has already collected $1.1 billion.
Stamp duty is a tax on commercial and legal documents used in some transactions such as property sales, which make up the bulk of stamp duty collections.
For housing transactions, stamp duty ranges from 1 per cent to 3 per cent of the purchase price. In the massive boom year of 2007, stamp duty reached a record $4.1 billion.
In the first nine months of this year alone, almost 25,800 private homes were sold - nearly double the number sold in the whole of last year.
But the sizes of the homes sold this year have generally shrunk, said Dr Chua Yang Liang, head of South-east Asia research at Jones Lang LaSalle.
'Because unit sizes have fallen, the total quantum of the home price is less,' he said. 'The market value of transactions this year actually remains at about the same level as last year.'
A spike in demand for smaller mass-market homes means that while property developers are likely to double their sales of new homes this year compared with last year, the total value of sales will be halved, according to recent research by property consultancy CB Richard Ellis (CBRE).
In the coming months to the end of the Government's 2009 financial year, there may be a pick-up in sales of upmarket homes, which could add to stamp duty collections, said Mr Li Hiaw Ho, executive director of CBRE Research.
He said the higher-end segment of the property market has not moved much in the current boom, but recent improved economic data may attract more buyers.
Foreigners, in particular, could be drawn back into the market early next year after the festive season is over, said Dr Chua.
'The economy is showing a better outlook, and there is more bullishness compared with six months ago, so there is a potential for more interest in the high-end market,' he said.
PROPERTY BOOM
No stamp duty boost for Govt
More units sold, but these may not match up to last year's overall value
By Fiona Chan
THIS year's surprise housing boom may have provided an unexpected windfall for property owners - but not necessarily for the Government.
Developers and individual sellers will probably sell twice the number of private homes this year than they did last year, going by the latest property market figures.
However, the Government is unlikely to see an increase in its revenues from stamp duty, which is a tax on transactions such as property sales.
This is mainly because many of the homes sold in the current boom are much smaller in size and located in the cheaper suburban areas.
So the value of homes sold this year - which determines the amount of stamp duty payable - may not surpass that of last year, when more luxury homes were sold, say property consultants.
Stamp duty takings so far this year bear this out. From January to September, the Government took in $1.37 billion in stamp duty, according to figures from the Department of Statistics website.
This is about 15 per cent less than in the same period last year, even though the property market was slowing down then in anticipation of the financial crisis that hit hard in September that year.
For the whole of last year, the Government received $1.84 billion in stamp duty. This year's stamp duty collections may be about the same level or even lower, now that the property boom appears to be losing steam, say property consultants.
However, stamp duties look set to exceed the Government's initial expectations at the beginning of the year, when the recession was at its worst and the property market was in a slump.
In its January Budget, the Government projected stamp duty takings of only $1billion for the 2009 financial year, which started in April and ends in March next year. So far, between April and September, the Government has already collected $1.1 billion.
Stamp duty is a tax on commercial and legal documents used in some transactions such as property sales, which make up the bulk of stamp duty collections.
For housing transactions, stamp duty ranges from 1 per cent to 3 per cent of the purchase price. In the massive boom year of 2007, stamp duty reached a record $4.1 billion.
In the first nine months of this year alone, almost 25,800 private homes were sold - nearly double the number sold in the whole of last year.
But the sizes of the homes sold this year have generally shrunk, said Dr Chua Yang Liang, head of South-east Asia research at Jones Lang LaSalle.
'Because unit sizes have fallen, the total quantum of the home price is less,' he said. 'The market value of transactions this year actually remains at about the same level as last year.'
A spike in demand for smaller mass-market homes means that while property developers are likely to double their sales of new homes this year compared with last year, the total value of sales will be halved, according to recent research by property consultancy CB Richard Ellis (CBRE).
In the coming months to the end of the Government's 2009 financial year, there may be a pick-up in sales of upmarket homes, which could add to stamp duty collections, said Mr Li Hiaw Ho, executive director of CBRE Research.
He said the higher-end segment of the property market has not moved much in the current boom, but recent improved economic data may attract more buyers.
Foreigners, in particular, could be drawn back into the market early next year after the festive season is over, said Dr Chua.
'The economy is showing a better outlook, and there is more bullishness compared with six months ago, so there is a potential for more interest in the high-end market,' he said.
BT : Preview of Marina Bay Suites next week
Business Times - 21 Nov 2009
Preview of Marina Bay Suites next week
By KALPANA RASHIWALA
AFTER an almost two-year wait, Marina Bay Suites will finally be previewed next Wednesday to VVIPs and invited buyers, BT understands.
Pricing for the preview has not been finalised, but some market watchers suggest it could be a shade below $2,500 per sq ft on average. Others tip the average price at about $2,300 psf. No interest absorption scheme will be offered.
Early last year - when the 99-year leasehold project was expected to be released - the average price was tipped at about $2,800 psf.
The 66-storey condo block has 221 units, comprising 218 three- or four-room apartments and three penthouses.
Three-bedders range from about 1,570 to 1,620 sq ft; four-bedders will be 2,050 to almost 2,700 sq ft. The penthouses include two duplex units of about 4,700 and 8,100 sq ft and a single-level unit of around 5,600 sq ft.
Marina Bay Suites was due to be released early last year, but steadily worsening market conditions that culminated in the global financial slump meant the project could not be released in 2008. In March this year, Keppel Land - which is part of the consortium developing the condo - confirmed the project's construction was deferred.
The other members of the consortium are Hongkong Land and Cheung Kong Holdings/ Hutchison Whampoa. Marina Bay Suites will be the second residential project on the Business and Financial Centre site, which the consortium bagged in a Singapore Government tender in 2005.
The first residential project - the 428-unit Marina Bay Residences (MBR) - sold out in three days in December 2006. The 55-storey development achieved an average price in the region of $1,850 psf, according to a statement by the developer at the time.
Many buyers flipped their units - in some cases within days of their purchase - for handsome gains as high as $1 million or even more for four-bedroom units that face Marina Bay.
MBR has one and two-bedroom units in addition to three and four-bedders. The project, along with the neighbouring completed development, The Sail @ Marina Bay, continues to make news in the secondary market. Sources say a 900 sq ft bay-front unit on the 50th floor at The Sail sold recently for about $3,000 psf, while a 30-odd storey four-bedder at MBR facing the bay fetched just above $2,700 psf.
Marina Bay Suites' preview will be held on the mezzanine level of One Raffles Quay.
THE SUITE LIFE
The 66-storey condo block has 221 units, comprising 218 three- or four-room apartments and three penthouses. Market watchers suggest average price could be slightly below $2,500 per sq ft
Preview of Marina Bay Suites next week
By KALPANA RASHIWALA
AFTER an almost two-year wait, Marina Bay Suites will finally be previewed next Wednesday to VVIPs and invited buyers, BT understands.
Pricing for the preview has not been finalised, but some market watchers suggest it could be a shade below $2,500 per sq ft on average. Others tip the average price at about $2,300 psf. No interest absorption scheme will be offered.
Early last year - when the 99-year leasehold project was expected to be released - the average price was tipped at about $2,800 psf.
The 66-storey condo block has 221 units, comprising 218 three- or four-room apartments and three penthouses.
Three-bedders range from about 1,570 to 1,620 sq ft; four-bedders will be 2,050 to almost 2,700 sq ft. The penthouses include two duplex units of about 4,700 and 8,100 sq ft and a single-level unit of around 5,600 sq ft.
Marina Bay Suites was due to be released early last year, but steadily worsening market conditions that culminated in the global financial slump meant the project could not be released in 2008. In March this year, Keppel Land - which is part of the consortium developing the condo - confirmed the project's construction was deferred.
The other members of the consortium are Hongkong Land and Cheung Kong Holdings/ Hutchison Whampoa. Marina Bay Suites will be the second residential project on the Business and Financial Centre site, which the consortium bagged in a Singapore Government tender in 2005.
The first residential project - the 428-unit Marina Bay Residences (MBR) - sold out in three days in December 2006. The 55-storey development achieved an average price in the region of $1,850 psf, according to a statement by the developer at the time.
Many buyers flipped their units - in some cases within days of their purchase - for handsome gains as high as $1 million or even more for four-bedroom units that face Marina Bay.
MBR has one and two-bedroom units in addition to three and four-bedders. The project, along with the neighbouring completed development, The Sail @ Marina Bay, continues to make news in the secondary market. Sources say a 900 sq ft bay-front unit on the 50th floor at The Sail sold recently for about $3,000 psf, while a 30-odd storey four-bedder at MBR facing the bay fetched just above $2,700 psf.
Marina Bay Suites' preview will be held on the mezzanine level of One Raffles Quay.
THE SUITE LIFE
The 66-storey condo block has 221 units, comprising 218 three- or four-room apartments and three penthouses. Market watchers suggest average price could be slightly below $2,500 per sq ft
BT : HK clamps down on marketing of apartments
Business Times - 21 Nov 2009
HK clamps down on marketing of apartments
(Hong Kong)
HONG KONG plans to tighten restrictions on marketing of uncompleted apartments, responding to concerns that misleading sales tactics by property developers have contributed to a surge in prices this year.
The measures will require developers to provide more transparency about the square footage of apartments they are selling before completing, as well as information on floor numbering, said a statement from the Transport and Housing Bureau.
Chief Executive Donald Tsang told reporters yesterday about the rules, which were reached in an agreement with the Real Estate Developers Association of Hong Kong.
Hong Kong said developers will need to spell out the usable square footage inside the homes. It also will require that developers 'provide floor numbering information in a more prominent manner in the sales brochures'.
Hong Kong developers also will need to publicly disclose transactions of uncompleted apartments within five working days of signing a preliminary sales agreement, down from the current one month. -- Bloomberg
HK clamps down on marketing of apartments
(Hong Kong)
HONG KONG plans to tighten restrictions on marketing of uncompleted apartments, responding to concerns that misleading sales tactics by property developers have contributed to a surge in prices this year.
The measures will require developers to provide more transparency about the square footage of apartments they are selling before completing, as well as information on floor numbering, said a statement from the Transport and Housing Bureau.
Chief Executive Donald Tsang told reporters yesterday about the rules, which were reached in an agreement with the Real Estate Developers Association of Hong Kong.
Hong Kong said developers will need to spell out the usable square footage inside the homes. It also will require that developers 'provide floor numbering information in a more prominent manner in the sales brochures'.
Hong Kong developers also will need to publicly disclose transactions of uncompleted apartments within five working days of signing a preliminary sales agreement, down from the current one month. -- Bloomberg
BT : HK faces asset bubble risk: central bank
Business Times - 21 Nov 2009
HK faces asset bubble risk: central bank
It attracted record HK$567.5 billion in fund inflows in the past 13 months
(Hong Kong)
HONG KONG'S central bank chief Norman Chan warned that asset prices in the city could climb sharply next year and disconnect from fundamentals, raising the risk of a bubble, and said surging capital inflows posed a dilemma for policymakers across Asia.
'With interest rates exceptionally low and with abundant liquidity around the world, Hong Kong faces the potential risk next year that asset prices may go up sharply and become increasingly disconnected from economic fundamentals,' Mr Chan, head of the Hong Kong Monetary Authority, said in an article on its website.
While other economies could raise interest rates in a bid to curb inflation in assets such as property, that tactic could backfire and attract even more outside investors who are hungry for higher yields, Mr Chan noted.
Hong Kong faces a different challenge. Its currency peg to the US dollar forces it to track monetary policy in the United States, which is expected to keep rates low for some time.
The financial centre, a key gateway to mainland China, also prides itself on its open economy and thus would be unlikely to look at capital controls at this stage, analysts said. However, more measures to curb property speculation may be in the offing.
Emerging markets such as Brazil and Taiwan have both announced capital controls in recent weeks to keep what they say are 'hot money' speculative flows from fuelling sharp gains in their currencies and destabilising their recovering economies.
Russia said on Thursday it would consider 'soft' measures to curb inflows, while Indonesia is also studying ways to control foreign investment in one-month central bank bonds.
Hong Kong attracted a record HK$567.5 billion (S$101.8 billion) in fund inflows between Oct 1 2008 and Nov 13, 2009, according to the HKMA. That has helped Hong Kong stock prices soar 57 per cent this year and property prices surge nearly 30 per cent.
Prices of luxury property in the city, however, have surged over 40 per cent this year as mainland Chinese have been snapping up apartments. A weak dollar and expectations that US, and therefore Hong Kong interest rates will stay low for some time are also encouraging foreigners to buy Hong Kong assets.
That prompted the HKMA last month to tighten mortgage lending rules, especially on luxury property, by capping the mortgage limit for property valued at US$2.6 million or more at 60 per cent, compared with 70 per cent previously. However, as many mainland Chinese buyers are flush with cash, that may not work.
The government has also said it is ready to release more land for sale to ward off a possible property bubble. This week it announced its first large-scale land sale in two years.
Mr Chan said it was not easy to say whether Hong Kong was now seeing an asset bubble but warned that values risked deviating from fundamentals.
Massive fund flows into the city's banking system have put intense upward pressure on the Hong Kong dollar, forcing the HKMA to intervene repeatedly to keep the currency within its trading band against the US dollar.
The HKMA has injected a record HK$620 billion since October 2008.
In nearby South Korea, officials have also warned of the risk of a housing bubble and have threatened to raise interest rates from a record low 2 per cent to calm prices. -- Reuters
HK faces asset bubble risk: central bank
It attracted record HK$567.5 billion in fund inflows in the past 13 months
(Hong Kong)
HONG KONG'S central bank chief Norman Chan warned that asset prices in the city could climb sharply next year and disconnect from fundamentals, raising the risk of a bubble, and said surging capital inflows posed a dilemma for policymakers across Asia.
'With interest rates exceptionally low and with abundant liquidity around the world, Hong Kong faces the potential risk next year that asset prices may go up sharply and become increasingly disconnected from economic fundamentals,' Mr Chan, head of the Hong Kong Monetary Authority, said in an article on its website.
While other economies could raise interest rates in a bid to curb inflation in assets such as property, that tactic could backfire and attract even more outside investors who are hungry for higher yields, Mr Chan noted.
Hong Kong faces a different challenge. Its currency peg to the US dollar forces it to track monetary policy in the United States, which is expected to keep rates low for some time.
The financial centre, a key gateway to mainland China, also prides itself on its open economy and thus would be unlikely to look at capital controls at this stage, analysts said. However, more measures to curb property speculation may be in the offing.
Emerging markets such as Brazil and Taiwan have both announced capital controls in recent weeks to keep what they say are 'hot money' speculative flows from fuelling sharp gains in their currencies and destabilising their recovering economies.
Russia said on Thursday it would consider 'soft' measures to curb inflows, while Indonesia is also studying ways to control foreign investment in one-month central bank bonds.
Hong Kong attracted a record HK$567.5 billion (S$101.8 billion) in fund inflows between Oct 1 2008 and Nov 13, 2009, according to the HKMA. That has helped Hong Kong stock prices soar 57 per cent this year and property prices surge nearly 30 per cent.
Prices of luxury property in the city, however, have surged over 40 per cent this year as mainland Chinese have been snapping up apartments. A weak dollar and expectations that US, and therefore Hong Kong interest rates will stay low for some time are also encouraging foreigners to buy Hong Kong assets.
That prompted the HKMA last month to tighten mortgage lending rules, especially on luxury property, by capping the mortgage limit for property valued at US$2.6 million or more at 60 per cent, compared with 70 per cent previously. However, as many mainland Chinese buyers are flush with cash, that may not work.
The government has also said it is ready to release more land for sale to ward off a possible property bubble. This week it announced its first large-scale land sale in two years.
Mr Chan said it was not easy to say whether Hong Kong was now seeing an asset bubble but warned that values risked deviating from fundamentals.
Massive fund flows into the city's banking system have put intense upward pressure on the Hong Kong dollar, forcing the HKMA to intervene repeatedly to keep the currency within its trading band against the US dollar.
The HKMA has injected a record HK$620 billion since October 2008.
In nearby South Korea, officials have also warned of the risk of a housing bubble and have threatened to raise interest rates from a record low 2 per cent to calm prices. -- Reuters
Friday, November 20, 2009
Singapore recession is over
Singapore recession is over
Nov 20, 2009 - PropertyGuru.com.sg
Singapore declared yesterday that its recession was over, as its economy grew for the second straight quarter in the three months to September.
Official data showed that Singapore’s gross domestic product (GDP) increased 14.2 percent in the third quarter for its quarter-on-quarter annualized basis, following a 21.7 percent growth in the previous quarter.
“Effectively, the recession in Singapore is over,” said Ministry of Trade and Industry’s (MTI) Second Permanent Secretary, Ravi Menon, during a media briefing.
"Economies around the world are now turning the corner," he said. "Singapore has benefited from these global and regional trends."
The country’s year-on-year GDP increased 0.6 percent in the third quarter, as compared to the 3.3 percent contraction in the second quarter, said MTI in its Q3 economic survey.
In its forecast for 2010, MTI predicted a 3.0 to 5.0 percent economic growth, while maintaining the existing 2.0 to 2.5 percent projection of a contraction this year.
The trade-reliant economy of the country was the first in Asia to decline due to the recession last year, as the global downturn hit demands for its exports, especially from the US.
Nov 20, 2009 - PropertyGuru.com.sg
Singapore declared yesterday that its recession was over, as its economy grew for the second straight quarter in the three months to September.
Official data showed that Singapore’s gross domestic product (GDP) increased 14.2 percent in the third quarter for its quarter-on-quarter annualized basis, following a 21.7 percent growth in the previous quarter.
“Effectively, the recession in Singapore is over,” said Ministry of Trade and Industry’s (MTI) Second Permanent Secretary, Ravi Menon, during a media briefing.
"Economies around the world are now turning the corner," he said. "Singapore has benefited from these global and regional trends."
The country’s year-on-year GDP increased 0.6 percent in the third quarter, as compared to the 3.3 percent contraction in the second quarter, said MTI in its Q3 economic survey.
In its forecast for 2010, MTI predicted a 3.0 to 5.0 percent economic growth, while maintaining the existing 2.0 to 2.5 percent projection of a contraction this year.
The trade-reliant economy of the country was the first in Asia to decline due to the recession last year, as the global downturn hit demands for its exports, especially from the US.
Inflation rate to increase in 2010
Inflation rate to increase in 2010
Nov 20, 2009 - PropertyGuru.com.sg
The inflation rate is expected to increase next year as the Housing Development Board (HDB) increased its property values.
Singapore revised its consumer price index (CPI) inflation forecast from 1 to 2 percent to 2.5 and 3.5 percent.
This is in connection with the recent revision of the Inland Revenue Authority (IRA)’s annual values for HDB properties, which factor into the Consumer Price Index (CPI) as imputed rents under the component of the accommodation cost.
Singapore’s Monetary Authority considered the revision as technical. The inflation forecast, excluding the cost of accommodation and private vehicles, remained at 1 to 2 percent.
“This core inflation should remain non-threatening in the absence of domestic price pressures, even as one-off factors push up headline inflation,” says Alvin Liew, an economist from Standard Chartered.
But some economists predict other risks may affect next year’s inflation rate.
Leong Wai Ho of Barclays Capital believes “the forecast adjustment may not have fully factored in the prospect of higher food prices,” due to the unfavourable economic conditions across Asia.
And although the government’s revision is technical, “the potential impact on inflation expectations cannot be completely ignored,” says economist Kit Wei Zheng of Citi.
Nov 20, 2009 - PropertyGuru.com.sg
The inflation rate is expected to increase next year as the Housing Development Board (HDB) increased its property values.
Singapore revised its consumer price index (CPI) inflation forecast from 1 to 2 percent to 2.5 and 3.5 percent.
This is in connection with the recent revision of the Inland Revenue Authority (IRA)’s annual values for HDB properties, which factor into the Consumer Price Index (CPI) as imputed rents under the component of the accommodation cost.
Singapore’s Monetary Authority considered the revision as technical. The inflation forecast, excluding the cost of accommodation and private vehicles, remained at 1 to 2 percent.
“This core inflation should remain non-threatening in the absence of domestic price pressures, even as one-off factors push up headline inflation,” says Alvin Liew, an economist from Standard Chartered.
But some economists predict other risks may affect next year’s inflation rate.
Leong Wai Ho of Barclays Capital believes “the forecast adjustment may not have fully factored in the prospect of higher food prices,” due to the unfavourable economic conditions across Asia.
And although the government’s revision is technical, “the potential impact on inflation expectations cannot be completely ignored,” says economist Kit Wei Zheng of Citi.
TODAY ONLINE : 4 individuals, 7 projects win
4 individuals, 7 projects win
by Evelyn Choo evelynchoo@mediacorp.com.sg 05:55 AM Nov 20, 2009
SINGAPORE - Four outstanding designers and seven projects have won this year's President's Design Awards.
President S R Nathan gave out the annual awards - aimed at encouraging the local design industry to raise the bar in areas such as architecture and product design - at the Istana last night.
The four winners of the Designer of the Year award are Mr Koichiro Ikebuchi, director of Atelier Ikebuchi; Mr Chris Lee, founder and creative director of Asylum Creative; Mr Look Boon Gee, managing director of Look Architects; Mr Tham Khai Meng, worldwide creative director of Ogilvy and Mather.
The seven project and product designs, which received the Design of the Year awards for their national significance and creative value, are the Genexis Theatre at Fusionopolis by Arup and Woha; Paper Fold by Exit Design, Republic Polytechnic by DP Architects and Maki and Associates; The Met in Bangkok by Woha; Urband Origami by Nanyang Optical; the X-halo Breath Thermometer by Philips Design; and the Henderson Waves by RSP Architects Planners and Engineers and IJP Corporation.
The Henderson Waves bridge, which weaves seamlessly in and out of a canopy, brings park users closer to nature. Its eye-catching curves, spanning some 300m, connect Mount Faber and Telok Blangah Hill Park.
The design team behind this urban sculpture said it was inspired by a mathematical formula.
Dr Liu Thai-Ker, director of RSP Architects Planners and Engineers, said: "The mathematical formula is something very scientific, very technological. Nature is very organic, very primordial. The happy combination of these two things to this bridge, in my mind, tickles the minds of people.
"In the last decade, you can see the flair of a more varied, diverse environment - day and night, city and countryside - is now starting to emerge, including the creation of this bridge."
Also making waves in the local and international design circles is 39-year-old Chris Lee. The founder of homegrown creative company Asylum has made his mark with novel takes on a myriad of projects, from interior design, branding to managing a music record label.
"The majority of design work is not really exciting. I think it's where we find our niche client that's important. When I first started Asylum, I just thought there would be opportunities out there that do not fit into the typical design mould. So all our projects are very different, but I think it's great that way," said Mr Lee.
The DesignSingapore Council said this year's winners reflect an increased vibrancy in the design sector.
by Evelyn Choo evelynchoo@mediacorp.com.sg 05:55 AM Nov 20, 2009
SINGAPORE - Four outstanding designers and seven projects have won this year's President's Design Awards.
President S R Nathan gave out the annual awards - aimed at encouraging the local design industry to raise the bar in areas such as architecture and product design - at the Istana last night.
The four winners of the Designer of the Year award are Mr Koichiro Ikebuchi, director of Atelier Ikebuchi; Mr Chris Lee, founder and creative director of Asylum Creative; Mr Look Boon Gee, managing director of Look Architects; Mr Tham Khai Meng, worldwide creative director of Ogilvy and Mather.
The seven project and product designs, which received the Design of the Year awards for their national significance and creative value, are the Genexis Theatre at Fusionopolis by Arup and Woha; Paper Fold by Exit Design, Republic Polytechnic by DP Architects and Maki and Associates; The Met in Bangkok by Woha; Urband Origami by Nanyang Optical; the X-halo Breath Thermometer by Philips Design; and the Henderson Waves by RSP Architects Planners and Engineers and IJP Corporation.
The Henderson Waves bridge, which weaves seamlessly in and out of a canopy, brings park users closer to nature. Its eye-catching curves, spanning some 300m, connect Mount Faber and Telok Blangah Hill Park.
The design team behind this urban sculpture said it was inspired by a mathematical formula.
Dr Liu Thai-Ker, director of RSP Architects Planners and Engineers, said: "The mathematical formula is something very scientific, very technological. Nature is very organic, very primordial. The happy combination of these two things to this bridge, in my mind, tickles the minds of people.
"In the last decade, you can see the flair of a more varied, diverse environment - day and night, city and countryside - is now starting to emerge, including the creation of this bridge."
Also making waves in the local and international design circles is 39-year-old Chris Lee. The founder of homegrown creative company Asylum has made his mark with novel takes on a myriad of projects, from interior design, branding to managing a music record label.
"The majority of design work is not really exciting. I think it's where we find our niche client that's important. When I first started Asylum, I just thought there would be opportunities out there that do not fit into the typical design mould. So all our projects are very different, but I think it's great that way," said Mr Lee.
The DesignSingapore Council said this year's winners reflect an increased vibrancy in the design sector.
TODAY ONLINE : New scheme to deter errant agents
New scheme to deter errant agents
by Lin Yan Qin 05:55 AM Nov 20, 2009
SINGAPORE - Some overpromise on the school's facilities; others tell potential students they can work while they pursue their studies here - all in a bid to profit from a foreign student's move to study in Singapore.
And it is these practices which are the target of new criteria under the voluntary EduTrust scheme - the quality certification under the recently introduced Private Education Act. This puts the onus on private education institutions (PEIs) to ensure the student agents they engage to recruit foreign students for their schools, are not resorting to underhanded means to get business.
While the PEIs MediaCorp spoke to all declared themselves ready to meet the new requirements, some wonder if tougher measures are needed to arrest the problem of errant agents.
"You can have schools collaborating with agents just to make money," said a private language school instructor, who did not want to be named.
"If we don't make agents more accountable, they can still get away with making a quick buck, moving from one school to the next."
Under the new criteria - necessary for schools which want to recruit foreign students - PEIs have to meet certain requirements for evaluating and training agents before they can start recruiting.
These include signing contracts with the agents and ensuring they do not misrepresent the PEI or provide misleading information to students.
In addition, PEIs are required to collate feedback from students on the services provided by the agents as part of their monitoring process.
"Students who are over-reliant and have not done their due diligence may be misled by errant agents," said Mr Alan Phua, managing director for domestic operations at Informatics Education. He added that although some of the schools were already meeting some of the conditions, making them compulsory would force all schools to fall into line and improve the situation.
A serious case last year involved Columbia Business School, where some foreign students brought in by agents were told that they could work eight hours for $700 a month while attending three hours of classes each day. Less radical claims usually involve exaggerating the size of the school and its facilities.
"We have had agents (who) overpromise, telling foreign students (they) can work and study here, which is not true," said Technology, Management and Communications (TMC) Educational Group student recruiting and marketing director Lemmy Teo.
Agents can make about 10 to 20 per cent of the first-year course fees from PEIs for every student recruited - and the commission is higher from less well-known PEIs which rely more heavily on them to bring in the students.
"For agents that are in it for the money, they don't care about the quality of the school at all. They just recommend schools paying the highest commission," said student agent Yeo Eng Chiang.
For better assurance of quality, students are encouraged to consider PEIs with EduTrust certification, said the Education Ministry.
Also, prospective students seeking the services of recruitment agents are advised to check on the authenticity of the agents and to ascertain that they accurately represent the PEIs and courses they wish to enrol in. One resource they can refer to is the list of Singapore Education Specialists maintained by the Singapore Tourism Board.
Licensing could take regulatory efforts even further, schools felt.
"Licensing agents will make it easier for us as schools to keep track of what they do and tap on agents with the best track records," said TMC Educational Group's Dr Teo.
Mr Daniel Chu, president of the Association of Consultants for International Students (Singapore), agreed, saying that the present situation had too many loopholes for agents to get away with unscrupulous behaviour, even with the EduTrust new requirements.
"It's like why they decided to regulate property agents ... there's no stopping an errant agent from continuing to work as an agent somewhere else even if you sack him," said Mr Chu, whose company recruits foreign students.
The Education Ministry, he added, had not consulted the association when it drew up the Private Education Act. "I think we should have been part of the process, given that we play a crucial role in the industry," he said.
When asked, the Ministry said it had held two public consultation exercises before the Act was enacted. As to whether licensing was an option, it would only say that suggestions will be considered.
Though he was in favour of licensing, Dr Teo felt that getting schools to be accountable for their agents' actions was a good start to regulating the industry.
"Any school that wants to bring in foreign students will need to comply, and that will have a big impact on schools making sure they don't work with rogue agents, so there will definitely be some improvement," he said.
by Lin Yan Qin 05:55 AM Nov 20, 2009
SINGAPORE - Some overpromise on the school's facilities; others tell potential students they can work while they pursue their studies here - all in a bid to profit from a foreign student's move to study in Singapore.
And it is these practices which are the target of new criteria under the voluntary EduTrust scheme - the quality certification under the recently introduced Private Education Act. This puts the onus on private education institutions (PEIs) to ensure the student agents they engage to recruit foreign students for their schools, are not resorting to underhanded means to get business.
While the PEIs MediaCorp spoke to all declared themselves ready to meet the new requirements, some wonder if tougher measures are needed to arrest the problem of errant agents.
"You can have schools collaborating with agents just to make money," said a private language school instructor, who did not want to be named.
"If we don't make agents more accountable, they can still get away with making a quick buck, moving from one school to the next."
Under the new criteria - necessary for schools which want to recruit foreign students - PEIs have to meet certain requirements for evaluating and training agents before they can start recruiting.
These include signing contracts with the agents and ensuring they do not misrepresent the PEI or provide misleading information to students.
In addition, PEIs are required to collate feedback from students on the services provided by the agents as part of their monitoring process.
"Students who are over-reliant and have not done their due diligence may be misled by errant agents," said Mr Alan Phua, managing director for domestic operations at Informatics Education. He added that although some of the schools were already meeting some of the conditions, making them compulsory would force all schools to fall into line and improve the situation.
A serious case last year involved Columbia Business School, where some foreign students brought in by agents were told that they could work eight hours for $700 a month while attending three hours of classes each day. Less radical claims usually involve exaggerating the size of the school and its facilities.
"We have had agents (who) overpromise, telling foreign students (they) can work and study here, which is not true," said Technology, Management and Communications (TMC) Educational Group student recruiting and marketing director Lemmy Teo.
Agents can make about 10 to 20 per cent of the first-year course fees from PEIs for every student recruited - and the commission is higher from less well-known PEIs which rely more heavily on them to bring in the students.
"For agents that are in it for the money, they don't care about the quality of the school at all. They just recommend schools paying the highest commission," said student agent Yeo Eng Chiang.
For better assurance of quality, students are encouraged to consider PEIs with EduTrust certification, said the Education Ministry.
Also, prospective students seeking the services of recruitment agents are advised to check on the authenticity of the agents and to ascertain that they accurately represent the PEIs and courses they wish to enrol in. One resource they can refer to is the list of Singapore Education Specialists maintained by the Singapore Tourism Board.
Licensing could take regulatory efforts even further, schools felt.
"Licensing agents will make it easier for us as schools to keep track of what they do and tap on agents with the best track records," said TMC Educational Group's Dr Teo.
Mr Daniel Chu, president of the Association of Consultants for International Students (Singapore), agreed, saying that the present situation had too many loopholes for agents to get away with unscrupulous behaviour, even with the EduTrust new requirements.
"It's like why they decided to regulate property agents ... there's no stopping an errant agent from continuing to work as an agent somewhere else even if you sack him," said Mr Chu, whose company recruits foreign students.
The Education Ministry, he added, had not consulted the association when it drew up the Private Education Act. "I think we should have been part of the process, given that we play a crucial role in the industry," he said.
When asked, the Ministry said it had held two public consultation exercises before the Act was enacted. As to whether licensing was an option, it would only say that suggestions will be considered.
Though he was in favour of licensing, Dr Teo felt that getting schools to be accountable for their agents' actions was a good start to regulating the industry.
"Any school that wants to bring in foreign students will need to comply, and that will have a big impact on schools making sure they don't work with rogue agents, so there will definitely be some improvement," he said.
TODAY ONLINE : No deal for Laguna Park as marketing agent throws in the towel
No deal for Laguna Park as marketing agent throws in the towel
05:55 AM Nov 19, 2009
by Tan Hui Leng
SINGAPORE - The closely watched collective sale of Marine Parade condominium Laguna Park has been called off.
The en-bloc tender which started off at a hefty price tag of $1.2 billion and was later revised downwards to $967 million has seen no takers yet.
The marketing agent Credo Real Estate said that even if an offer comes in now it would be too late to crank up the entire process again in time for the Dec 19 deadline, when the collective sale agreement expires.
As a result, Credo has sent out letters to Laguna Park owners on Monday to inform them the collective sales process has ended.
"The sales committee has decided to call it a day," said marketing agent Credo's deputy managing director Tan Hong Boon.
Mr Tan noted that even if an offer is made now or if the sales committee obtains 80 per cent of votes in favour of the new price tag, there would not be enough time to carry out all the processes required before putting in a Strata Titles Board application.
Built in 1977, the seafront development raised eyebrows in September with its jaw-dropping $1.2-billion reserve price tag. The former HUDC project with 528 units sits on a massive plot of 677,493 square feet.
But analysts and observers have deemed it to be too expensive, second only to another former HUDC estate, Farrer Court, which was sold for $1.3388 billion in June 2007.
However, the first tender failed despite a bid for $1.73 billion from an Indonesian-owned locally-incorporated company, as a down payment could not be made in time.
Owners were then asked to consider selling their homes at $967 million - about 19 per cent lower than the initial asking price. The new price tag meant that the home owners stood to gain about $1.8 million for a typical unit instead of the previous range of $2.1 million to $2.3 million.
Mr Tan noted that developers' have become increasingly cautious amid the recent market cooling measures introduced by the Government. TAN HUI LENG
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Nov 19, 2009
by Tan Hui Leng
SINGAPORE - The closely watched collective sale of Marine Parade condominium Laguna Park has been called off.
The en-bloc tender which started off at a hefty price tag of $1.2 billion and was later revised downwards to $967 million has seen no takers yet.
The marketing agent Credo Real Estate said that even if an offer comes in now it would be too late to crank up the entire process again in time for the Dec 19 deadline, when the collective sale agreement expires.
As a result, Credo has sent out letters to Laguna Park owners on Monday to inform them the collective sales process has ended.
"The sales committee has decided to call it a day," said marketing agent Credo's deputy managing director Tan Hong Boon.
Mr Tan noted that even if an offer is made now or if the sales committee obtains 80 per cent of votes in favour of the new price tag, there would not be enough time to carry out all the processes required before putting in a Strata Titles Board application.
Built in 1977, the seafront development raised eyebrows in September with its jaw-dropping $1.2-billion reserve price tag. The former HUDC project with 528 units sits on a massive plot of 677,493 square feet.
But analysts and observers have deemed it to be too expensive, second only to another former HUDC estate, Farrer Court, which was sold for $1.3388 billion in June 2007.
However, the first tender failed despite a bid for $1.73 billion from an Indonesian-owned locally-incorporated company, as a down payment could not be made in time.
Owners were then asked to consider selling their homes at $967 million - about 19 per cent lower than the initial asking price. The new price tag meant that the home owners stood to gain about $1.8 million for a typical unit instead of the previous range of $2.1 million to $2.3 million.
Mr Tan noted that developers' have become increasingly cautious amid the recent market cooling measures introduced by the Government. TAN HUI LENG
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
ST : End the delay and start building
Nov 20, 2009
SPORTS HUB
End the delay and start building
PUSHING back the completion date of the Sports Hub repeatedly from 2010 to 2011, 2012 and now 2013 ('Sports Hub still has financing concerns', Nov 14) is disappointing.
It is unfair to the two unsuccessful bidders as the reason appears to be the Singapore Sports Hub consortium's failure to secure a bank loan to finance the project.
One main criterion in a tender is for a bidder to have firm financial muscle to complete a project.
Did the Singapore Sports Hub consortium make an unrealistic bid for the mega project, which now seems to point to a situation in which it cannot attract bank backing?
If so, the Government should step in and guarantee the loan or build the Sports Hub on its own.
A mega public project that is repeatedly delayed creates an adverse impression on foreign investors and undermines the confidence in the bidding system.
The Government can certainly afford to build the hub without having to resort to the public-private partnership formula.
If the Government can afford to spend $4.5 billion on the Jobs Credit scheme to subsidise employers' wage bills and $600 million to build the Esplanade, which attracted an audience of only 1.7 million last year, there is no reason not to spend less than $1.9 billion to construct the new Sports Hub, which will attract a larger audience and more tourists.
If the Government could afford spending $15 million to host the recent Asian Youth Games, $150 million on the Singapore F1 Grand Prix and $108 million more to host the Youth Olympic Games next year, it does not make sense to repeatedly stymie the start towards building a vital landmark like the Sports Hub.
Construction costs may rise further next year if the global economy picks up, and what then? More delays?
If it is the Government's mission to promote a sports culture, the construction of a new Sports Hub is a necessity, not a luxury.
The project was announced in 2005. How long more must Singaporeans wait for its completion?
I urge the Government to be less exacting in bean-counting the dollars and cents of the project and realise the sense in making Singaporeans justifiably happy and proud by building the hub.
SPORTS HUB
End the delay and start building
PUSHING back the completion date of the Sports Hub repeatedly from 2010 to 2011, 2012 and now 2013 ('Sports Hub still has financing concerns', Nov 14) is disappointing.
It is unfair to the two unsuccessful bidders as the reason appears to be the Singapore Sports Hub consortium's failure to secure a bank loan to finance the project.
One main criterion in a tender is for a bidder to have firm financial muscle to complete a project.
Did the Singapore Sports Hub consortium make an unrealistic bid for the mega project, which now seems to point to a situation in which it cannot attract bank backing?
If so, the Government should step in and guarantee the loan or build the Sports Hub on its own.
A mega public project that is repeatedly delayed creates an adverse impression on foreign investors and undermines the confidence in the bidding system.
The Government can certainly afford to build the hub without having to resort to the public-private partnership formula.
If the Government can afford to spend $4.5 billion on the Jobs Credit scheme to subsidise employers' wage bills and $600 million to build the Esplanade, which attracted an audience of only 1.7 million last year, there is no reason not to spend less than $1.9 billion to construct the new Sports Hub, which will attract a larger audience and more tourists.
If the Government could afford spending $15 million to host the recent Asian Youth Games, $150 million on the Singapore F1 Grand Prix and $108 million more to host the Youth Olympic Games next year, it does not make sense to repeatedly stymie the start towards building a vital landmark like the Sports Hub.
Construction costs may rise further next year if the global economy picks up, and what then? More delays?
If it is the Government's mission to promote a sports culture, the construction of a new Sports Hub is a necessity, not a luxury.
The project was announced in 2005. How long more must Singaporeans wait for its completion?
I urge the Government to be less exacting in bean-counting the dollars and cents of the project and realise the sense in making Singaporeans justifiably happy and proud by building the hub.
Today : Possible office space shortage
Possible office space shortage
05:55 AM Nov 20, 2009
by Bloomberg
SINGAPORE - Despite the current glut in office space, Singapore may face a shortage in 2014 due to the lack of new supply.
Speaking at a real estate conference in Hong Kong yesterday, Mr Choy Chan Pong, the senior group director of land sales and administration at Singapore's Urban Redevelopment Authority, noted there will a short-term imbalance between demand and supply.
"We have seen 5 million sq ft of demand in 2001 and 3 million sq ft of demand annually in recent years," he said. "So, whatever supply we see now can be quickly absorbed."
However, there is concern that there is no new supply expected in 2014.
"In the last year or so, there have been no new projects," added Mr Choy. "We have developers telling us to better start releasing land for office space."
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Nov 20, 2009
by Bloomberg
SINGAPORE - Despite the current glut in office space, Singapore may face a shortage in 2014 due to the lack of new supply.
Speaking at a real estate conference in Hong Kong yesterday, Mr Choy Chan Pong, the senior group director of land sales and administration at Singapore's Urban Redevelopment Authority, noted there will a short-term imbalance between demand and supply.
"We have seen 5 million sq ft of demand in 2001 and 3 million sq ft of demand annually in recent years," he said. "So, whatever supply we see now can be quickly absorbed."
However, there is concern that there is no new supply expected in 2014.
"In the last year or so, there have been no new projects," added Mr Choy. "We have developers telling us to better start releasing land for office space."
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
BT Letters : URA should review its reserve list policy
Business Times - 20 Nov 2009
LETTER TO THE EDITOR
URA should review its reserve list policy
I AGREE with the commentary by Kalpana Rashiwala, 'Don't give up confirmed list card again' (BT, Nov 12).
Our Prime Minister and Minister for National Development have repeatedly stressed the importance of ensuring that residential property prices do not get out of sync with economic growth and that operating costs for business remain stable. The volatility in prices and rentals of residential and commercial properties in the last few years is an indication that the land sales programme needs to be tweaked.
I have written to URA a few times about the need to review the policy of putting sites in the reserve list as I strongly felt that the policy is seriously flawed. URA maintained that the reserve list policy is market-driven.
The property market is dominated by a few big players with large land banks. The motivation of the major developers is to maximise profit and value of their land bank and not to maintain price stability.
Does it make sense to increase supply and thus lower the value of their land bank by making a bid for the sites in the reserve list?
The way the property game is played is intriguing. Developers play with their cards close to their chests. URA not only plays with its cards on the table but also shows its next card. I have decided to bet on the winner and buy property stocks!
In my opinion, URA should scrap its policy of putting sites in the reserve list. URA, with its vast resources and with the help of other government agencies like EDB, should be able to estimate demand and supply of residential and commercial properties.
Based on projected supply and demand, URA should then put up sufficient sites for tender. If demand is weak and the tender price is below the threshold, URA can choose not to award the tender to the highest bidder.
URA should consider the impact of its policy on those who buy properties for their own use, particularly Singaporeans. Sharp hikes in prices result in massive transfer of wealth from buyers to banks and developers. It has also serious social ramifications - on population growth, savings for retirement, and leads to discontentment.
Singapore needs to attract companies, particularly MNCs, to locate their regional HQ in Singapore. Companies need a stable operating environment. Sharp hikes in rentals of offices and apartments will deter companies from setting up or expanding their operations in Singapore. They can also kill small companies operating on thin margins.
Of course, in theory, companies can move to cheaper locations. In reality, it is not so simple.
Philip Ng Lin Ai
Director
OCSC Global
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
LETTER TO THE EDITOR
URA should review its reserve list policy
I AGREE with the commentary by Kalpana Rashiwala, 'Don't give up confirmed list card again' (BT, Nov 12).
Our Prime Minister and Minister for National Development have repeatedly stressed the importance of ensuring that residential property prices do not get out of sync with economic growth and that operating costs for business remain stable. The volatility in prices and rentals of residential and commercial properties in the last few years is an indication that the land sales programme needs to be tweaked.
I have written to URA a few times about the need to review the policy of putting sites in the reserve list as I strongly felt that the policy is seriously flawed. URA maintained that the reserve list policy is market-driven.
The property market is dominated by a few big players with large land banks. The motivation of the major developers is to maximise profit and value of their land bank and not to maintain price stability.
Does it make sense to increase supply and thus lower the value of their land bank by making a bid for the sites in the reserve list?
The way the property game is played is intriguing. Developers play with their cards close to their chests. URA not only plays with its cards on the table but also shows its next card. I have decided to bet on the winner and buy property stocks!
In my opinion, URA should scrap its policy of putting sites in the reserve list. URA, with its vast resources and with the help of other government agencies like EDB, should be able to estimate demand and supply of residential and commercial properties.
Based on projected supply and demand, URA should then put up sufficient sites for tender. If demand is weak and the tender price is below the threshold, URA can choose not to award the tender to the highest bidder.
URA should consider the impact of its policy on those who buy properties for their own use, particularly Singaporeans. Sharp hikes in prices result in massive transfer of wealth from buyers to banks and developers. It has also serious social ramifications - on population growth, savings for retirement, and leads to discontentment.
Singapore needs to attract companies, particularly MNCs, to locate their regional HQ in Singapore. Companies need a stable operating environment. Sharp hikes in rentals of offices and apartments will deter companies from setting up or expanding their operations in Singapore. They can also kill small companies operating on thin margins.
Of course, in theory, companies can move to cheaper locations. In reality, it is not so simple.
Philip Ng Lin Ai
Director
OCSC Global
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
ST : Demand v supply: A chicken-and-egg situation
Nov 20, 2009
Demand v supply: A chicken-and-egg situation
A LACK of public transport services can hamper development.
Dr Lim Wee Kiak, who is an MP from Sembawang GRC, cites the example of his ward.
'There is no direct bus service from Sembawang town to the eastern sector,' he said. 'And when residents request a service that goes to Changi Airport or the Changi area, the reply from the public transport operators is that they have done a survey and found that there is not enough demand for such a route.'
He likens it to a chicken-and-egg situation.
'It's because there are no buses going that direction, therefore residents are less likely to apply for a job there, or to apply for a school there for their children, or to go there for medical, recreational or whatever reason.'
Dr Lim, who is also head of the Transport Government Parliamentary Committee, believes transportation is a great facilitator for development.
'But if you argue that because there is not enough commuter demand, then seriously, which comes first?'
His views are echoed by other MPs, including Mr Charles Chong (Pasir Ris-Punggol GRC) and Mr Seah Kian Peng (Marine Parade GRC).
Mr Chong was a vocal advocate for the North-East Line's Buangkok station to be opened earlier, while Mr Seah was among those who pushed for Stage 3 of the Circle Line to start running - even though the other four stages are not completed.
They point to examples of how new MRT lines have accelerated the growth of new towns.
On that front, is Singapore's rail expansion plan - as ambitious as it is - enough? Can we build even more sooner?
Dr Lim said: 'To build faster will simply mean that we will suck up a lot of the construction industry's resources. We want to maintain a stable construction or civil engineering industry.
'We don't want to load them with a lot of projects, and then suddenly, no project after that. The current pace is reasonable.
'If there are certain projects that can be faster, I welcome it, but not at the expense of a boom-and-bust situation for the construction industry.'
He added that too much construction activity at one go will also contribute to road diversions and traffic snares.
'It has to be staged carefully,' he said.
Demand v supply: A chicken-and-egg situation
A LACK of public transport services can hamper development.
Dr Lim Wee Kiak, who is an MP from Sembawang GRC, cites the example of his ward.
'There is no direct bus service from Sembawang town to the eastern sector,' he said. 'And when residents request a service that goes to Changi Airport or the Changi area, the reply from the public transport operators is that they have done a survey and found that there is not enough demand for such a route.'
He likens it to a chicken-and-egg situation.
'It's because there are no buses going that direction, therefore residents are less likely to apply for a job there, or to apply for a school there for their children, or to go there for medical, recreational or whatever reason.'
Dr Lim, who is also head of the Transport Government Parliamentary Committee, believes transportation is a great facilitator for development.
'But if you argue that because there is not enough commuter demand, then seriously, which comes first?'
His views are echoed by other MPs, including Mr Charles Chong (Pasir Ris-Punggol GRC) and Mr Seah Kian Peng (Marine Parade GRC).
Mr Chong was a vocal advocate for the North-East Line's Buangkok station to be opened earlier, while Mr Seah was among those who pushed for Stage 3 of the Circle Line to start running - even though the other four stages are not completed.
They point to examples of how new MRT lines have accelerated the growth of new towns.
On that front, is Singapore's rail expansion plan - as ambitious as it is - enough? Can we build even more sooner?
Dr Lim said: 'To build faster will simply mean that we will suck up a lot of the construction industry's resources. We want to maintain a stable construction or civil engineering industry.
'We don't want to load them with a lot of projects, and then suddenly, no project after that. The current pace is reasonable.
'If there are certain projects that can be faster, I welcome it, but not at the expense of a boom-and-bust situation for the construction industry.'
He added that too much construction activity at one go will also contribute to road diversions and traffic snares.
'It has to be staged carefully,' he said.
BT : Slide in prime office rents levelling off
Business Times - 20 Nov 2009
Slide in prime office rents levelling off
In 1st 6 weeks of Q4, monthly office rents in Shenton fell 0.8%
By EMILYN YAP
FALLS in commercial rents in the Shenton, City Hall and Orchard areas are levelling off, going by mid-fourth quarter figures from Cushman & Wakefield.
The property consultancy found that in the first six weeks of Q4, monthly prime office rents in the Shenton market fell just 0.8 per cent to $5.99 per sq ft (psf) from $6.04 psf in Q3. This decline is much smaller than with the 10 per cent plunge between Q2 and Q3.
Rents held up relatively well even though the Shenton market had a double-digit vacancy rate as new space from buildings such as Mapletree Anson and 71 Robinson came onstream.
There is 'landlord reluctance to lower rents amid signs of improving office space absorption', Cushman & Wakefield said.
According to the Urban Redevelopment Authority last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters.
In the City Hall area, monthly prime office rents are also flattening - they dipped just 0.4 per cent to $6.77 psf from $6.80 psf in Q3. This was a big improvement from the 5.4 per cent drop between Q2 and Q3.
Over at Orchard, prime office rents remained relatively stable at $6.89 psf, down marginally from $6.90 psf in Q3. Rents in this market fell 6.3 per cent between Q2 and Q3.
Both the City Hall and Orchard markets have low single-digit office vacancy rates. Cushman & Wakefield research director Ang Choon Beng said lease renewal in these areas has been fairly stable. Also, there is a relative lack of new space, unlike in the Shenton and Raffles Place markets.
Office rents in Raffles Place have yet to flatten out like those in the Shenton, City Hall and Orchard areas. Monthly Raffles Place Grade A rents fell 3.5 per cent to $7.85 psf, from $8.13 psf in Q3. Monthly prime rents there also dropped 2.6 per cent to $7.60 psf, from $7.80 psf in Q3.
Nevertheless, commercial landlords in Raffles Place can take comfort from the fact that the rental declines are smaller than those between Q2 and Q3.
Mr Ang expects prime rents to 'remain soft' for the rest of this year and the first half of 2010. 'We think the influx of 2.2 million sq ft of new prime office space in 2010 needs to be well absorbed before we can see a bottoming of prime office rents,' he said.
In a separate report, Jones Lang LaSalle said: 'In markets with a large supply overhang, such as Singapore, there is likely to be continued upward pressure on incentives as owners seek to secure tenants.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Looking up: According to URA last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters
Slide in prime office rents levelling off
In 1st 6 weeks of Q4, monthly office rents in Shenton fell 0.8%
By EMILYN YAP
FALLS in commercial rents in the Shenton, City Hall and Orchard areas are levelling off, going by mid-fourth quarter figures from Cushman & Wakefield.
The property consultancy found that in the first six weeks of Q4, monthly prime office rents in the Shenton market fell just 0.8 per cent to $5.99 per sq ft (psf) from $6.04 psf in Q3. This decline is much smaller than with the 10 per cent plunge between Q2 and Q3.
Rents held up relatively well even though the Shenton market had a double-digit vacancy rate as new space from buildings such as Mapletree Anson and 71 Robinson came onstream.
There is 'landlord reluctance to lower rents amid signs of improving office space absorption', Cushman & Wakefield said.
According to the Urban Redevelopment Authority last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters.
In the City Hall area, monthly prime office rents are also flattening - they dipped just 0.4 per cent to $6.77 psf from $6.80 psf in Q3. This was a big improvement from the 5.4 per cent drop between Q2 and Q3.
Over at Orchard, prime office rents remained relatively stable at $6.89 psf, down marginally from $6.90 psf in Q3. Rents in this market fell 6.3 per cent between Q2 and Q3.
Both the City Hall and Orchard markets have low single-digit office vacancy rates. Cushman & Wakefield research director Ang Choon Beng said lease renewal in these areas has been fairly stable. Also, there is a relative lack of new space, unlike in the Shenton and Raffles Place markets.
Office rents in Raffles Place have yet to flatten out like those in the Shenton, City Hall and Orchard areas. Monthly Raffles Place Grade A rents fell 3.5 per cent to $7.85 psf, from $8.13 psf in Q3. Monthly prime rents there also dropped 2.6 per cent to $7.60 psf, from $7.80 psf in Q3.
Nevertheless, commercial landlords in Raffles Place can take comfort from the fact that the rental declines are smaller than those between Q2 and Q3.
Mr Ang expects prime rents to 'remain soft' for the rest of this year and the first half of 2010. 'We think the influx of 2.2 million sq ft of new prime office space in 2010 needs to be well absorbed before we can see a bottoming of prime office rents,' he said.
In a separate report, Jones Lang LaSalle said: 'In markets with a large supply overhang, such as Singapore, there is likely to be continued upward pressure on incentives as owners seek to secure tenants.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Looking up: According to URA last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters
Thursday, November 19, 2009
BT : Laguna Park en bloc sale called off
Business Times - 19 Nov 2009
Laguna Park en bloc sale called off
Over at Meyer Place, owners to start inking deal soon to lower reserve price
By KALPANA RASHIWALA
(SINGAPORE) The en bloc sale of Laguna Park has been called off for now as the sales committee found it a race against time to get the minimum consent level from owners at a proposed lower price - said to be $967 million or $704 psf per plot ratio, down from the original $1.2 billion or $844 psf ppr reserve price - before the Collective Sale Agreement (CSA) expires next month.
But over at Meyer Place, owners will soon begin signing a supplemental agreement to their original CSA at a lower price of $59 million, down from the original $65 million. BT understands the sales committee is expected to sign an agreement soon for the freehold property's sale to a joint venture involving property and construction companies - subject to securing at least 80 per cent consent from owners at the lower price.
Meyer Place's CSA expires around mid-March 2010.
'The tender for Meyer Place closed on Oct 28 with four expressions of interest received and we are now negotiating with one of these parties,' says Christina Sim, director, investment, capital markets at Cushman and Wakefield, the marketing agent for the property.
The lower proposed reserve price of $59 million works out to $1,048 psf ppr including an estimated $3 million development charge (DC), down about 9 per cent from the $1,150 psf ppr based on the original $65 million reserve price.
Based on the revised price, the breakeven cost for a new development on the site could be $1,550 to $1,600 psf.
Laguna Park's sales committee decided to call off the estate's en bloc sale last week. 'While it did begin the process of getting owners to sign a supplemental agreement to lower the reserve price, the committee felt it was a race against time as the existing CSA expires next month,' said Karamjit Singh, managing director of Credo Real Estate, the marketing agent for the property.
Laguna Park comprises 528 units.
'It would probably be better if owners begin a fresh en bloc initiative next year and sign a fresh CSA which will give them a new 12-month period to find buyers,' Mr Singh said.
Laguna Park, which has a land area of 677,463 sq ft, failed to find a buyer after its tender closed last month. Although two bids were submitted, no buyer made the downpayment to seal the $1.2 billion deal at the time. Mr Singh said yesterday that although signing of a supplemental agreement at the lower price had started last month, so far no conditional agreement had been inked with any potential buyer for a sale at the lower price.
The unit land price of $704 psf ppr based on the revised $967 million price tag includes payment to the state to intensify the site's use and top up its lease to a fresh 99-year term.
Meyer Place has a freehold land area of 28,167 sq ft and was completed in the early 1990s, comprising 28 apartments - 24 units in a 13-storey block and four in a conservation house.
The property is zoned for residential use with a 2.1 plot ratio - the ratio of maximum potential gross floor area to land area.
Although Meyer Place is a relatively new development, it has redevelopment potential as its plot ratio in the 2008 Master Plan has not been fully utilised. 'The apartment block could be torn down and rebuilt into smaller units,' said Cushman's Ms Sim.
Market watchers point out that the buyer of Meyer Place could also seek to enlarge the plot by purchasing surrounding properties. Just in front of Meyer Place, at No. 40 Meyer Road, is a small apartment block with a site area of about 6,000 sq ft. There is also another plot behind Meyer Place housing two old bungalows at 18D and 18E Fort Road - adding up to more than 20,000 sq ft of land - that could potentially be purchased and amalgamated.
Last month, Roxy-Pacific signed an agreement to buy Dragon Mansion for $100.8 million or $863 psf ppr including DC - lower than the owners' previous asking price of $120 million or $1,020 psf ppr. Signing by owners of a supplemental agreement to the original CSA at the revised price is still in progress. The majority owners have up to January next year to make an application for a collective sale to the Strata Titles Board.
Laguna Park en bloc sale called off
Over at Meyer Place, owners to start inking deal soon to lower reserve price
By KALPANA RASHIWALA
(SINGAPORE) The en bloc sale of Laguna Park has been called off for now as the sales committee found it a race against time to get the minimum consent level from owners at a proposed lower price - said to be $967 million or $704 psf per plot ratio, down from the original $1.2 billion or $844 psf ppr reserve price - before the Collective Sale Agreement (CSA) expires next month.
But over at Meyer Place, owners will soon begin signing a supplemental agreement to their original CSA at a lower price of $59 million, down from the original $65 million. BT understands the sales committee is expected to sign an agreement soon for the freehold property's sale to a joint venture involving property and construction companies - subject to securing at least 80 per cent consent from owners at the lower price.
Meyer Place's CSA expires around mid-March 2010.
'The tender for Meyer Place closed on Oct 28 with four expressions of interest received and we are now negotiating with one of these parties,' says Christina Sim, director, investment, capital markets at Cushman and Wakefield, the marketing agent for the property.
The lower proposed reserve price of $59 million works out to $1,048 psf ppr including an estimated $3 million development charge (DC), down about 9 per cent from the $1,150 psf ppr based on the original $65 million reserve price.
Based on the revised price, the breakeven cost for a new development on the site could be $1,550 to $1,600 psf.
Laguna Park's sales committee decided to call off the estate's en bloc sale last week. 'While it did begin the process of getting owners to sign a supplemental agreement to lower the reserve price, the committee felt it was a race against time as the existing CSA expires next month,' said Karamjit Singh, managing director of Credo Real Estate, the marketing agent for the property.
Laguna Park comprises 528 units.
'It would probably be better if owners begin a fresh en bloc initiative next year and sign a fresh CSA which will give them a new 12-month period to find buyers,' Mr Singh said.
Laguna Park, which has a land area of 677,463 sq ft, failed to find a buyer after its tender closed last month. Although two bids were submitted, no buyer made the downpayment to seal the $1.2 billion deal at the time. Mr Singh said yesterday that although signing of a supplemental agreement at the lower price had started last month, so far no conditional agreement had been inked with any potential buyer for a sale at the lower price.
The unit land price of $704 psf ppr based on the revised $967 million price tag includes payment to the state to intensify the site's use and top up its lease to a fresh 99-year term.
Meyer Place has a freehold land area of 28,167 sq ft and was completed in the early 1990s, comprising 28 apartments - 24 units in a 13-storey block and four in a conservation house.
The property is zoned for residential use with a 2.1 plot ratio - the ratio of maximum potential gross floor area to land area.
Although Meyer Place is a relatively new development, it has redevelopment potential as its plot ratio in the 2008 Master Plan has not been fully utilised. 'The apartment block could be torn down and rebuilt into smaller units,' said Cushman's Ms Sim.
Market watchers point out that the buyer of Meyer Place could also seek to enlarge the plot by purchasing surrounding properties. Just in front of Meyer Place, at No. 40 Meyer Road, is a small apartment block with a site area of about 6,000 sq ft. There is also another plot behind Meyer Place housing two old bungalows at 18D and 18E Fort Road - adding up to more than 20,000 sq ft of land - that could potentially be purchased and amalgamated.
Last month, Roxy-Pacific signed an agreement to buy Dragon Mansion for $100.8 million or $863 psf ppr including DC - lower than the owners' previous asking price of $120 million or $1,020 psf ppr. Signing by owners of a supplemental agreement to the original CSA at the revised price is still in progress. The majority owners have up to January next year to make an application for a collective sale to the Strata Titles Board.
BT : Blueprint to boost interior design sector
Business Times - 19 Nov 2009
Blueprint to boost interior design sector
Trade group lays out plans to raise standards in the industry
By EMILYN YAP
(SINGAPORE) Interior design is not just about running after contractors or drawing layouts - and an association believes it is time to hammer out higher standards for the industry here.
'I probably didn't draw a living room for 20 years,' says Nicholas Merrow-Smith, client manager at Davenport Campbell (Singapore) who became president of the Interior Design Confederation Singapore (IDCS) in April.
And he wants to show that interior designers can do more. IDCS hopes to raise the level of innovation in the industry and has several suggestions on how this can be done.
Among its initiatives are an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines.
The proposals have won the support of some practitioners in the wider design industry. Singapore Institute of Architects president Ashvinkumar Kantilal is one who thinks that IDCS is heading in the right direction.
'The (interior design) industry needs to self-regulate and widen the members' knowledge base,' he says, suggesting skills upgrading programmes in the form of courses and seminars.
Financially, the interior design industry is in fine shape, with plenty of work. But according to Mr Merrow-Smith, it lacks creativity and diversity, and this is especially clear when it is seen against its foreign counterparts.
He cites an example - interior design firms here tend to focus on traditional real estate, while those overseas can be multi-disciplinary, even taking on projects such as theatre design.
And interior designers abroad are going into research, he adds. For example, there are studies on how the design of office space can get employees to buy into their companies' values.
'What we're trying to do is to show people that the design portfolio is much wider,' says Mr Merrow-Smith. And if design firms raise their standards, there is also a chance for them to secure better work, he adds.
IDCS is kicking off its efforts with a conference this month, called Design Value: Beyond the Tangible, to highlight how design can be a strategic tool.
It will be attended by players from global firms such as Gensler and Hassell, who will share their experience of how workplace and leisure space designs can influence people's performance and behaviour.
In the longer term, IDCS will try to facilitate partnerships between interior design outfits and other design industries such as architecture.
DP Architects director Tai Lee Siang trusts that greater collaboration among the various design sectors will help strengthen the Singapore brand of design.
IDCS also hopes to set up a professional development programme by the middle of next year. With the course, interior designers can undergo continual training and conduct industry-related research.
The next - and tougher - step would be to establish an accreditation programme for interior design firms. There is no such assessment system in place now. 'Some firms do very good work, but it's certainly not across the board,' Mr Merrow-Smith says.
Some interior design firms see benefits from accreditation. The group managing director of Nota Group, Ong Sheng Keat, reckons: 'In Singapore, a large proportion of the market is dominated by business-minded contractors or decorators who see the profession as another form of trade mainly due to the lack of enforced certification'.
Altered Interior director Thierryson Chua also supports accreditation for firms in the industry, but believes a scheme could be more effective if the government was involved. If IDCS oversees the scheme, it will have to be 'super active' in organising events and attracting members, he says.
IDCS could not disclose its membership size because an auditing session is under way. But Nota Group's Mr Ong says IDCS has been seen as exclusive and inclusive - 'exclusive in the sense that it only admits genuine practising interior design professionals as members, yet inclusive because it will attempt to convert the non-professionals'.
IDCS is aware of the hurdles to implementing its plans and it is getting help from the government. For instance, it has secured funding capped at $435,000 over three years.
The association also spoke to representatives from about 50 interior design firms and related companies. According to Mr Merrow-Smith, they are supportive of its initiatives.
'We don't expect the whole industry to step up,' he says. But 'we'd like to see a core body of people who are serious about pushing the envelope, innovating, and doing things differently'.
Mr Merrow-Smith: The initiatives include an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines
Blueprint to boost interior design sector
Trade group lays out plans to raise standards in the industry
By EMILYN YAP
(SINGAPORE) Interior design is not just about running after contractors or drawing layouts - and an association believes it is time to hammer out higher standards for the industry here.
'I probably didn't draw a living room for 20 years,' says Nicholas Merrow-Smith, client manager at Davenport Campbell (Singapore) who became president of the Interior Design Confederation Singapore (IDCS) in April.
And he wants to show that interior designers can do more. IDCS hopes to raise the level of innovation in the industry and has several suggestions on how this can be done.
Among its initiatives are an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines.
The proposals have won the support of some practitioners in the wider design industry. Singapore Institute of Architects president Ashvinkumar Kantilal is one who thinks that IDCS is heading in the right direction.
'The (interior design) industry needs to self-regulate and widen the members' knowledge base,' he says, suggesting skills upgrading programmes in the form of courses and seminars.
Financially, the interior design industry is in fine shape, with plenty of work. But according to Mr Merrow-Smith, it lacks creativity and diversity, and this is especially clear when it is seen against its foreign counterparts.
He cites an example - interior design firms here tend to focus on traditional real estate, while those overseas can be multi-disciplinary, even taking on projects such as theatre design.
And interior designers abroad are going into research, he adds. For example, there are studies on how the design of office space can get employees to buy into their companies' values.
'What we're trying to do is to show people that the design portfolio is much wider,' says Mr Merrow-Smith. And if design firms raise their standards, there is also a chance for them to secure better work, he adds.
IDCS is kicking off its efforts with a conference this month, called Design Value: Beyond the Tangible, to highlight how design can be a strategic tool.
It will be attended by players from global firms such as Gensler and Hassell, who will share their experience of how workplace and leisure space designs can influence people's performance and behaviour.
In the longer term, IDCS will try to facilitate partnerships between interior design outfits and other design industries such as architecture.
DP Architects director Tai Lee Siang trusts that greater collaboration among the various design sectors will help strengthen the Singapore brand of design.
IDCS also hopes to set up a professional development programme by the middle of next year. With the course, interior designers can undergo continual training and conduct industry-related research.
The next - and tougher - step would be to establish an accreditation programme for interior design firms. There is no such assessment system in place now. 'Some firms do very good work, but it's certainly not across the board,' Mr Merrow-Smith says.
Some interior design firms see benefits from accreditation. The group managing director of Nota Group, Ong Sheng Keat, reckons: 'In Singapore, a large proportion of the market is dominated by business-minded contractors or decorators who see the profession as another form of trade mainly due to the lack of enforced certification'.
Altered Interior director Thierryson Chua also supports accreditation for firms in the industry, but believes a scheme could be more effective if the government was involved. If IDCS oversees the scheme, it will have to be 'super active' in organising events and attracting members, he says.
IDCS could not disclose its membership size because an auditing session is under way. But Nota Group's Mr Ong says IDCS has been seen as exclusive and inclusive - 'exclusive in the sense that it only admits genuine practising interior design professionals as members, yet inclusive because it will attempt to convert the non-professionals'.
IDCS is aware of the hurdles to implementing its plans and it is getting help from the government. For instance, it has secured funding capped at $435,000 over three years.
The association also spoke to representatives from about 50 interior design firms and related companies. According to Mr Merrow-Smith, they are supportive of its initiatives.
'We don't expect the whole industry to step up,' he says. But 'we'd like to see a core body of people who are serious about pushing the envelope, innovating, and doing things differently'.
Mr Merrow-Smith: The initiatives include an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines
BT : Holiday Inn Park View completes overhaul
Business Times - 19 Nov 2009
Holiday Inn Park View completes overhaul
By NISHA RAMCHANDANI
(SINGAPORE) The Holiday Inn Park View, which opened here in 1985, has been renamed Holiday Inn Singapore Orchard City Centre as part of a $25 million refurbishment exercise.
Its signage, reception area, guest rooms and food and beverage outlets have been overhauled. Despite the downturn, the decision was made to go ahead with renovating the 319-room hotel over a 15 month period. This was done in conjunction with InterContinental Hotels Group's Holiday Inn global relaunch programme.
'We're long term players. For us to refurbish in slightly more difficult economic times actually makes greater sense. If you do it in good times, you essentially take rooms out of the inventory,' said Aron Harilela, director of Hong-Kong based property developer The Harilela Group, which owns the Holiday Inn in Singapore as well as other properties in Asia, Europe and the Americas.
The group also owns three transit hotels here at Changi Airport, as well as a 20 per cent stake in Thomson Medical Centre.
Looking ahead, The Harilela Group is expanding its portfolio with the launch of two hotels in Tier 2 and 3 cities in China - the first of which will open in the second quarter of 2010 and the second in Q3 2011.
The two hotels, each costing US$15 million, will be funded by a mix of debt and equity. 'We're looking to do five hotels in China. There's a big market for internationally branded, standardised products,' said Dr Harilela, adding that land in Tier 1 cities tends to be priced exorbitantly.
Meanwhile, the Holiday Inn has out-performed the industry this year, according to general manager Shantha de Silva, with occupancy rates in the mid-80s, down from the low 90s in 2007-08.
Room rates this year have come down about 20 per cent compared to last year but remain in the low $200s.
'We've been trading fairly robustly even, this year,' said Mr de Silva. Business travellers make up 60-70 per cent of the clientele.
And Mr de Silva is confident that the hotel industry is likely to pick up soon.
Holiday Inn Park View completes overhaul
By NISHA RAMCHANDANI
(SINGAPORE) The Holiday Inn Park View, which opened here in 1985, has been renamed Holiday Inn Singapore Orchard City Centre as part of a $25 million refurbishment exercise.
Its signage, reception area, guest rooms and food and beverage outlets have been overhauled. Despite the downturn, the decision was made to go ahead with renovating the 319-room hotel over a 15 month period. This was done in conjunction with InterContinental Hotels Group's Holiday Inn global relaunch programme.
'We're long term players. For us to refurbish in slightly more difficult economic times actually makes greater sense. If you do it in good times, you essentially take rooms out of the inventory,' said Aron Harilela, director of Hong-Kong based property developer The Harilela Group, which owns the Holiday Inn in Singapore as well as other properties in Asia, Europe and the Americas.
The group also owns three transit hotels here at Changi Airport, as well as a 20 per cent stake in Thomson Medical Centre.
Looking ahead, The Harilela Group is expanding its portfolio with the launch of two hotels in Tier 2 and 3 cities in China - the first of which will open in the second quarter of 2010 and the second in Q3 2011.
The two hotels, each costing US$15 million, will be funded by a mix of debt and equity. 'We're looking to do five hotels in China. There's a big market for internationally branded, standardised products,' said Dr Harilela, adding that land in Tier 1 cities tends to be priced exorbitantly.
Meanwhile, the Holiday Inn has out-performed the industry this year, according to general manager Shantha de Silva, with occupancy rates in the mid-80s, down from the low 90s in 2007-08.
Room rates this year have come down about 20 per cent compared to last year but remain in the low $200s.
'We've been trading fairly robustly even, this year,' said Mr de Silva. Business travellers make up 60-70 per cent of the clientele.
And Mr de Silva is confident that the hotel industry is likely to pick up soon.
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