Dec 24, 2009
6-year wait to come 'home'
THEY didn't have to think twice when deciding to purchase a four-room flat at The Pinnacle@Duxton.
After all, 35-year-old tutor Jean Tay and her brother, Sammi, 42, had lived at the very location the new housing development stands, between 1984 and 2004.
Having lived in the neighbourhood for over 20 years, the two grew a sentimental attachment to the place, counting favourite food haunts and old neighbours as a pull factor in moving back to Tanjong Pagar.
Giving RazorTV a tour of their new flat, Ms Tay also took a trip down memory lane, sharing with us her fondest memories growing up in the estate.
Thursday, December 24, 2009
ST : 6 sites ordered to stop work
Dec 24, 2009
6 sites ordered to stop work
Inspectors checked 29 construction sites and found safety lapses at all
By Jermyn Chow
Workers with Conquer Construction were exposed to falling hazards and sharp objects due to the lack of a proper walkway at the worksite. The company was ordered to stop all work after the Manpower Ministry's inspection blitz last week found 18 safety violations. -- PHOTO: MANPOWER MINISTRY
REPEATED warnings and reminders to keep worksites safe have gone unheeded - the latest check on 29 construction sites found safety lapses at all of them.
In a three-day blitz across the island last week, the Manpower Ministry (MOM) also ordered work to stop at six sites which were found to be too dangerous.
Tying for the most violations - 18 - at any site were two projects, by Conquer Construction and Matronic Roofing & Builders respectively.
Over the three days, contractors were given 72 warnings and served summons for 107 fines - the amounts have yet to be fixed, but the maximum fine for each violation is $5,000.
Dangerous worksites that were put on notice have up to three weeks to shape up before they are checked again.
MOM inspectors were looking for just one thing - safety lapses that could result in a worker falling from a height, which is the No. 1 cause of death at worksites here.
6 sites ordered to stop work
Inspectors checked 29 construction sites and found safety lapses at all
By Jermyn Chow
Workers with Conquer Construction were exposed to falling hazards and sharp objects due to the lack of a proper walkway at the worksite. The company was ordered to stop all work after the Manpower Ministry's inspection blitz last week found 18 safety violations. -- PHOTO: MANPOWER MINISTRY
REPEATED warnings and reminders to keep worksites safe have gone unheeded - the latest check on 29 construction sites found safety lapses at all of them.
In a three-day blitz across the island last week, the Manpower Ministry (MOM) also ordered work to stop at six sites which were found to be too dangerous.
Tying for the most violations - 18 - at any site were two projects, by Conquer Construction and Matronic Roofing & Builders respectively.
Over the three days, contractors were given 72 warnings and served summons for 107 fines - the amounts have yet to be fixed, but the maximum fine for each violation is $5,000.
Dangerous worksites that were put on notice have up to three weeks to shape up before they are checked again.
MOM inspectors were looking for just one thing - safety lapses that could result in a worker falling from a height, which is the No. 1 cause of death at worksites here.
No developers yet to venture into developing retirement villages
No developers yet to venture into developing retirement villages
Dec 23, 2009 - PropertyGuru.com.sg
The ageing population in Singapore indicates a rising need for better medical facilities and care for the elderly - not least of what would be a retirement village for the more independent-minded.
Retirement communities or villages are huge businesses in countries like Australia, the US and in Europe. It includes amenities like swimming pools, clubhouses and golf courses, as well as medical facilities within the site. However, Singapore developers are not keen on the concept.
The government seeks to encourage the development of a retirement community in Singapore. In fact, it released in February 2008 a parcel of land in Jalan Jurong Kechil, near the Bukit Timah Nature Reserve, with a lease period of 30 years, specifically for a retirement village. To date, no one has taken it up.
A quick check with several major property developers showed that none were willing to embark into retirement villages. Most cited high costs and unfamiliarity as barriers to their entry.
According to Ong Choon Fah, regional head of consulting for the global real estate consultant DTZ and executive director in Singapore, building a retirement village is not a straightforward task, as there are a lot of issues that still need to be resolved first.
“I think it's something that will happen in time to come. But, in the meantime, there are some issues that need to be addressed, issues which we've explored with several clients who have expressed an interest in developing retirement homes on the Jalan Jurong Kechil site,” she said.
“First, there's a question of the land. Most of our clients have expressed an interest in a freehold plot, rather than one with a use-by date.”
“A retirement village also differs from a normal property development because it has other amenities and may need some level of medical care on site. This makes the upkeep of the entire community rather expensive - and such a concept will most likely be targeted at the higher end of the market,” she added.
However, perhaps the most important issue that must be addressed is the legislative one. While there are laws governing home purchases in Singapore, there are none that relates to transactions in retirement communities - unlike in countries like the US, Europe and Australia, where well-established laws governing the business are available.
Mrs Ong says: “There's the question of the business model for the retirement village. Will residents buy or rent the units? If they buy it, will they be able to sell or will away their units to their children? Will young people be able to buy? An exit strategy is very important. And there are major issues that need to be worked out to ensure a win-win outcome for all stakeholders involved.”
Daniel Teo, property developer and former chief of Redas (Real Estate Developers' Association of Singapore) is up to the challenge. “I want to offer a better lifestyle to the elderly folk here, give them that companionship they need. Develop something that the ambulant can live in comfortably,” he said.
“But yes, there are issues that need to be worked out - laws that need to be developed. I think the government needs to take the lead in this.”
“Perhaps I can arm-twist them into developing such legislation when I build a retirement village,” he quips.
Mr. Teo has visited different retirement communities and villages worldwide to get ideas.
He said in an interview that he has already found “some 20 to 30” like-minded folk, who are also keen on developing a retirement village. These include lawyers, doctors, and even former Nominated Members of Parliament – “some of whom have even engaged their own consultants to draw up plans for a retirement village.”
“I hope this will be a reality in my lifetime,” he said.
Dec 23, 2009 - PropertyGuru.com.sg
The ageing population in Singapore indicates a rising need for better medical facilities and care for the elderly - not least of what would be a retirement village for the more independent-minded.
Retirement communities or villages are huge businesses in countries like Australia, the US and in Europe. It includes amenities like swimming pools, clubhouses and golf courses, as well as medical facilities within the site. However, Singapore developers are not keen on the concept.
The government seeks to encourage the development of a retirement community in Singapore. In fact, it released in February 2008 a parcel of land in Jalan Jurong Kechil, near the Bukit Timah Nature Reserve, with a lease period of 30 years, specifically for a retirement village. To date, no one has taken it up.
A quick check with several major property developers showed that none were willing to embark into retirement villages. Most cited high costs and unfamiliarity as barriers to their entry.
According to Ong Choon Fah, regional head of consulting for the global real estate consultant DTZ and executive director in Singapore, building a retirement village is not a straightforward task, as there are a lot of issues that still need to be resolved first.
“I think it's something that will happen in time to come. But, in the meantime, there are some issues that need to be addressed, issues which we've explored with several clients who have expressed an interest in developing retirement homes on the Jalan Jurong Kechil site,” she said.
“First, there's a question of the land. Most of our clients have expressed an interest in a freehold plot, rather than one with a use-by date.”
“A retirement village also differs from a normal property development because it has other amenities and may need some level of medical care on site. This makes the upkeep of the entire community rather expensive - and such a concept will most likely be targeted at the higher end of the market,” she added.
However, perhaps the most important issue that must be addressed is the legislative one. While there are laws governing home purchases in Singapore, there are none that relates to transactions in retirement communities - unlike in countries like the US, Europe and Australia, where well-established laws governing the business are available.
Mrs Ong says: “There's the question of the business model for the retirement village. Will residents buy or rent the units? If they buy it, will they be able to sell or will away their units to their children? Will young people be able to buy? An exit strategy is very important. And there are major issues that need to be worked out to ensure a win-win outcome for all stakeholders involved.”
Daniel Teo, property developer and former chief of Redas (Real Estate Developers' Association of Singapore) is up to the challenge. “I want to offer a better lifestyle to the elderly folk here, give them that companionship they need. Develop something that the ambulant can live in comfortably,” he said.
“But yes, there are issues that need to be worked out - laws that need to be developed. I think the government needs to take the lead in this.”
“Perhaps I can arm-twist them into developing such legislation when I build a retirement village,” he quips.
Mr. Teo has visited different retirement communities and villages worldwide to get ideas.
He said in an interview that he has already found “some 20 to 30” like-minded folk, who are also keen on developing a retirement village. These include lawyers, doctors, and even former Nominated Members of Parliament – “some of whom have even engaged their own consultants to draw up plans for a retirement village.”
“I hope this will be a reality in my lifetime,” he said.
Property sector in Vietnam to work on improving financial and legal frameworks
Property sector in Vietnam to work on improving financial and legal frameworks
Dec 23, 2009 - PropertyGuru.com.sg
Enhanced financial and legal frameworks are needed if Vietnam’s emerging real estate market is to grow into a sustained property environment.
Vietnam’s property sector will grow and attract investors next year, but several problems such as environmental pollution, rapid urbanization and low housing cost must be addressed.
Tran Kim Chung of the Central Institute for Economic Management said Vietnam’s real estate market recorded numbers of achievement in the past few years, especially on the country’s urbanization, raising the living standards and modernizing urban landscape.
Mr. Chung told the conference delegates at the Ho Chi Minh City that property market plays an important role in Vietnam’s economy and its growth has attracted more investment capitals. The economic growth of the country will stimulate and elevate other economic sectors, he said.
But the domestic real estate market still had several shortcomings, including a lack of legal framework for real estate bonds, for real estate investment, real estate saving funds and secondary real estate mortgages. Despite several banks granting credit to its clients, the market still needs more funding, said Mr. Chung.
He also said that another problem in the property sector was the lack of transparency, with buyers who do not have sufficient information on their purchases. He also called for the property regulation law to be improved and said issues regarding property information and property finance should also be examined.
Attracting foreign investment is also vital. “We will continue to gradually expand the range of foreign investors involved in the property market. This is one of the important tasks in attracting resources to the domestic property market,” Mr. Chung claimed.
Developers must support the move for change. Chairman and general director of Thu Duc Housing Development Corporation, Le Chi Hieu, said the new policies are vital for the property industry to move forward. “We need a stable and correct assessment of the real estate market and to concentrate more on developing suitable policies relating to the property sector and real estate trading.”
Former chairman of the International Real Estate Federation, Alan Tong, said the country could learn from other property markets in Asia such as Singapore and China to avoid mistakes.
Dec 23, 2009 - PropertyGuru.com.sg
Enhanced financial and legal frameworks are needed if Vietnam’s emerging real estate market is to grow into a sustained property environment.
Vietnam’s property sector will grow and attract investors next year, but several problems such as environmental pollution, rapid urbanization and low housing cost must be addressed.
Tran Kim Chung of the Central Institute for Economic Management said Vietnam’s real estate market recorded numbers of achievement in the past few years, especially on the country’s urbanization, raising the living standards and modernizing urban landscape.
Mr. Chung told the conference delegates at the Ho Chi Minh City that property market plays an important role in Vietnam’s economy and its growth has attracted more investment capitals. The economic growth of the country will stimulate and elevate other economic sectors, he said.
But the domestic real estate market still had several shortcomings, including a lack of legal framework for real estate bonds, for real estate investment, real estate saving funds and secondary real estate mortgages. Despite several banks granting credit to its clients, the market still needs more funding, said Mr. Chung.
He also said that another problem in the property sector was the lack of transparency, with buyers who do not have sufficient information on their purchases. He also called for the property regulation law to be improved and said issues regarding property information and property finance should also be examined.
Attracting foreign investment is also vital. “We will continue to gradually expand the range of foreign investors involved in the property market. This is one of the important tasks in attracting resources to the domestic property market,” Mr. Chung claimed.
Developers must support the move for change. Chairman and general director of Thu Duc Housing Development Corporation, Le Chi Hieu, said the new policies are vital for the property industry to move forward. “We need a stable and correct assessment of the real estate market and to concentrate more on developing suitable policies relating to the property sector and real estate trading.”
Former chairman of the International Real Estate Federation, Alan Tong, said the country could learn from other property markets in Asia such as Singapore and China to avoid mistakes.
Singapore shares ended 1.33% higher
Singapore shares ended 1.33% higher
Dec 23, 2009 - PropertyGuru.com.sg
Singapore shares ended 1.33 percent higher on Tuesday, with fund managers buying stocks for the year-end improvement, said an analyst.
Singapore’s Straits Times Index gained 37.01 points to 2,823.82. Share volumes totalled to 1.21 billion with gainers leading losers 256 to 172.
"Window dressing could turn out to be a self-fulfilling prophecy," said one trader with a local brokerage.
Among the banks, United Overseas Bank climbed 6 cents to S$19.32 while DBS moved 26 cents to S$14.82. Oversea-Chinese Banking Corp gained 26 cents to S$8.94.
Singapore Airlines gained 10 cents to S$14.28, while Singapore Telecom jumped 6 cents higher to S$3.03.
The property developer CapitaLand closed four cents higher at S$4.15.
Dec 23, 2009 - PropertyGuru.com.sg
Singapore shares ended 1.33 percent higher on Tuesday, with fund managers buying stocks for the year-end improvement, said an analyst.
Singapore’s Straits Times Index gained 37.01 points to 2,823.82. Share volumes totalled to 1.21 billion with gainers leading losers 256 to 172.
"Window dressing could turn out to be a self-fulfilling prophecy," said one trader with a local brokerage.
Among the banks, United Overseas Bank climbed 6 cents to S$19.32 while DBS moved 26 cents to S$14.82. Oversea-Chinese Banking Corp gained 26 cents to S$8.94.
Singapore Airlines gained 10 cents to S$14.28, while Singapore Telecom jumped 6 cents higher to S$3.03.
The property developer CapitaLand closed four cents higher at S$4.15.
GIC to pay A$260 million for retail stake in Perth
GIC to pay A$260 million for retail stake in Perth
Dec 23, 2009 - PropertyGuru.com.sg
GIC Real Estate, the global investment arm in Singapore, will purchase from Dexus Property Group a half stake in a regional shopping centre in Perth, the Australian Financial Review reported.
GIC will shell out A$260 million ($229 million) for the Whitford City property, making it the second largest deal for a shopping centre, the newspaper said.
Dec 23, 2009 - PropertyGuru.com.sg
GIC Real Estate, the global investment arm in Singapore, will purchase from Dexus Property Group a half stake in a regional shopping centre in Perth, the Australian Financial Review reported.
GIC will shell out A$260 million ($229 million) for the Whitford City property, making it the second largest deal for a shopping centre, the newspaper said.
Time to invest in mass market properties in Asia
Time to invest in mass market properties in Asia
Dec 23, 2009 - PropertyGuru.com.sg
Despite the recent rise in property prices in Hong Kong and Singapore, Managing Director Tim Murphy of IP Global Ltd is still optimistic on the sector, particularly in mass market property.
“If you want to make real money in real estate, you should be buying stuff which is at the mass market level, that's where the demand is in the region,” Mr. Murphy said on Asia Squawk Box of CNBC.
According to Mr. Murphy, the yields were better in smaller flats compared to homes that are worth a million dollars, fuelled by demands from new families.
“I'll be looking at areas with great transport links in actually the cheaper end of the market, not the stuff that makes the news,” he added.
“If you look at Hong Kong and Singapore, they've had an incredible run of maybe 3-6 months. Particularly at the high end, property markets have gone off the scales 20-30%," Murphy remarked. "But that's sort of media news."
He also noted that people are getting fixated on high-end numbers, especially in Singapore, where people have bought into the entire casino concept of Marina Bay.
“If you look at the mass market in both Singapore and Hong Kong, they've performed fairly steadily of about 10-15% these last 3-6 months. That's not even recouping some of the losses that we saw in 2007-2008, particularly in Singapore. So I think the fundamentals of these markets are still extremely strong.”
Dec 23, 2009 - PropertyGuru.com.sg
Despite the recent rise in property prices in Hong Kong and Singapore, Managing Director Tim Murphy of IP Global Ltd is still optimistic on the sector, particularly in mass market property.
“If you want to make real money in real estate, you should be buying stuff which is at the mass market level, that's where the demand is in the region,” Mr. Murphy said on Asia Squawk Box of CNBC.
According to Mr. Murphy, the yields were better in smaller flats compared to homes that are worth a million dollars, fuelled by demands from new families.
“I'll be looking at areas with great transport links in actually the cheaper end of the market, not the stuff that makes the news,” he added.
“If you look at Hong Kong and Singapore, they've had an incredible run of maybe 3-6 months. Particularly at the high end, property markets have gone off the scales 20-30%," Murphy remarked. "But that's sort of media news."
He also noted that people are getting fixated on high-end numbers, especially in Singapore, where people have bought into the entire casino concept of Marina Bay.
“If you look at the mass market in both Singapore and Hong Kong, they've performed fairly steadily of about 10-15% these last 3-6 months. That's not even recouping some of the losses that we saw in 2007-2008, particularly in Singapore. So I think the fundamentals of these markets are still extremely strong.”
London’s top-end residential market ends 2009 on a high
London’s top-end residential market ends 2009 on a high
Dec 23, 2009 - PropertyGuru.com.sg
Liam Bailey, Knight Frank’s head of residential research, has just presented the firm's Prime Central London Index for December 2009.
“The top-end of the London residential market saw a remarkable revival during 2009. With a strong 2.1% growth in December, prices have now risen 13.8% in the nine months since March, meaning prices are only 13.4% below the level they reached in March 2008,” he commented.
“In recent months the more expensive £5m-£10m and £10m+ price brackets have caught up with the price growth which initially began in the sub-£2.5m segment in the Spring. During December, the strongest market was the £5m-£10m sector with 2.6% growth.”
“The prime London market has been the strongest property sector in the UK this year, benefitting from substantial inward investment from overseas buyers looking to take advantage of the weak pound and lower overall prices. The number of buyers increased by 25% in the whole of 2009 compared to 2008. Led by interest from Russia, Europe (especially Italy) and the Middle East.”
“In more recent months the revival of the City economy has brought more traditional buyers from the banks, hedge funds and private equity houses back into the market. Locations such as Kensington, Notting Hill and Chelsea, the traditional stomping ground of financiers, have seen growth of 3% in the last month as this market comes back to life.”
“The Chancellor’s ‘bonus tax’, contained in the Pre-Budget Report, had the impact of hitting some junior bankers – we saw several £800,000 to £1m sales fall apart in the days immediately afterwards.”
On the other hand, it does not appear to have created so much impact on senior bank staff. Four of Knight Frank’s central London offices (Kensington, Belgravia, Mayfair, and Knightsbridge) recorded an extraordinary fuss of activity, seven days after the pre-budget report was presented.
“In summary the year is ending on a high note. With demand from new buyers almost 25% higher than a year ago, and supply around 18% lower over the same period - investors and occupiers are competing hard to uncover the best properties, and limited supply is leading to competitive bidding. The short term outlook looks positive, longer term market performance rather depends on the outcome of the election and next year’s emergency budget.”
Dec 23, 2009 - PropertyGuru.com.sg
Liam Bailey, Knight Frank’s head of residential research, has just presented the firm's Prime Central London Index for December 2009.
“The top-end of the London residential market saw a remarkable revival during 2009. With a strong 2.1% growth in December, prices have now risen 13.8% in the nine months since March, meaning prices are only 13.4% below the level they reached in March 2008,” he commented.
“In recent months the more expensive £5m-£10m and £10m+ price brackets have caught up with the price growth which initially began in the sub-£2.5m segment in the Spring. During December, the strongest market was the £5m-£10m sector with 2.6% growth.”
“The prime London market has been the strongest property sector in the UK this year, benefitting from substantial inward investment from overseas buyers looking to take advantage of the weak pound and lower overall prices. The number of buyers increased by 25% in the whole of 2009 compared to 2008. Led by interest from Russia, Europe (especially Italy) and the Middle East.”
“In more recent months the revival of the City economy has brought more traditional buyers from the banks, hedge funds and private equity houses back into the market. Locations such as Kensington, Notting Hill and Chelsea, the traditional stomping ground of financiers, have seen growth of 3% in the last month as this market comes back to life.”
“The Chancellor’s ‘bonus tax’, contained in the Pre-Budget Report, had the impact of hitting some junior bankers – we saw several £800,000 to £1m sales fall apart in the days immediately afterwards.”
On the other hand, it does not appear to have created so much impact on senior bank staff. Four of Knight Frank’s central London offices (Kensington, Belgravia, Mayfair, and Knightsbridge) recorded an extraordinary fuss of activity, seven days after the pre-budget report was presented.
“In summary the year is ending on a high note. With demand from new buyers almost 25% higher than a year ago, and supply around 18% lower over the same period - investors and occupiers are competing hard to uncover the best properties, and limited supply is leading to competitive bidding. The short term outlook looks positive, longer term market performance rather depends on the outcome of the election and next year’s emergency budget.”
Wednesday, December 23, 2009
ST : Nov inflation up slightly
Dec 23, 2009
Nov inflation up slightly
By Fiona Chan
Housing cost went up by 0.2 per cent in November on account of higher gas tariffs. -- ST PHOTO: ALPHONSUS CHERN
INFLATION in Singapore stayed largely flat last month, according to the latest figures released by the Department of Statistics (DOS) on Wednesday.
Consumer prices slid 0.2 per cent in November from a year ago, the eighth straight month of year-on-year decline.
The slip was largely due to the lower cost of electricity and gas tariffs, said DOS. But this was partly offset by higher prices for transport and communication, food, and healthcare.
On a month-on-month basis, the consumer price index (CPI) inched up 0.4 per cent between October and November. Adjusted for seasonal differences, the increase would have been 0.5 per cent.
This follows a 0.6 per cent rise between September and October, an uptrend that looks set to continue into next year, economists said.
Nov inflation up slightly
By Fiona Chan
Housing cost went up by 0.2 per cent in November on account of higher gas tariffs. -- ST PHOTO: ALPHONSUS CHERN
INFLATION in Singapore stayed largely flat last month, according to the latest figures released by the Department of Statistics (DOS) on Wednesday.
Consumer prices slid 0.2 per cent in November from a year ago, the eighth straight month of year-on-year decline.
The slip was largely due to the lower cost of electricity and gas tariffs, said DOS. But this was partly offset by higher prices for transport and communication, food, and healthcare.
On a month-on-month basis, the consumer price index (CPI) inched up 0.4 per cent between October and November. Adjusted for seasonal differences, the increase would have been 0.5 per cent.
This follows a 0.6 per cent rise between September and October, an uptrend that looks set to continue into next year, economists said.
Retail rents start to pick up
Retail rents start to pick up
Dec 22, 2009 - PropertyGuru.com.sg
Retail rents in the prime Orchard Road and suburban malls are creeping up in the last quarter, after declining for 4 straight quarters.
A report by DTZ Research showed the gross rents of prime first-storey retail space in Scotts and Orchard roads increased 1 percent to $39.70 psf per month, after it dropped 7.3 percent over the past four quarters.
In the suburban areas, retail rents escalated after it stabilized in the previous months, while rents in other areas such as Great World City and Bugis Junction continue to fall. Quarter-on-quarter prime first-storey retail rents in suburban malls increased 1.5 percent to $33.50 psf per month, after falling 2.1 percent from its peak in the third quarter last year.
Ms. Chua Chor Hoon, DTZ South-east Asia Research head, said the leasing activity has increased, as retailers gain more confidence due to the economic recovery. "There is strong demand for prime first-storey space, evident from the little availability and speed at which they are being taken up, despite the amount of new space that has come up along Orchard Road.”
DTZ estimates that 2.6 million square feet of new retail space, including Mandarin Gallery and 313@Somerset, were added to the supply this year. This is the highest new stock ever seen. Ms. Chua expects that retail rents in Scotts and Orchard Road, and the suburban areas will continue to increase by 2 to 7 percent in 2010.
The new stocks of retail spaces in Orchard Road are expected to reach 165,000 square feet next year, nearly 7 percent of the almost 2.4 million square feet of new retail space expected to be available next year. Most of the new supply outside the city areas will be concentrated in Serangoon Central, Resorts World Sentosa and Nex.
Dec 22, 2009 - PropertyGuru.com.sg
Retail rents in the prime Orchard Road and suburban malls are creeping up in the last quarter, after declining for 4 straight quarters.
A report by DTZ Research showed the gross rents of prime first-storey retail space in Scotts and Orchard roads increased 1 percent to $39.70 psf per month, after it dropped 7.3 percent over the past four quarters.
In the suburban areas, retail rents escalated after it stabilized in the previous months, while rents in other areas such as Great World City and Bugis Junction continue to fall. Quarter-on-quarter prime first-storey retail rents in suburban malls increased 1.5 percent to $33.50 psf per month, after falling 2.1 percent from its peak in the third quarter last year.
Ms. Chua Chor Hoon, DTZ South-east Asia Research head, said the leasing activity has increased, as retailers gain more confidence due to the economic recovery. "There is strong demand for prime first-storey space, evident from the little availability and speed at which they are being taken up, despite the amount of new space that has come up along Orchard Road.”
DTZ estimates that 2.6 million square feet of new retail space, including Mandarin Gallery and 313@Somerset, were added to the supply this year. This is the highest new stock ever seen. Ms. Chua expects that retail rents in Scotts and Orchard Road, and the suburban areas will continue to increase by 2 to 7 percent in 2010.
The new stocks of retail spaces in Orchard Road are expected to reach 165,000 square feet next year, nearly 7 percent of the almost 2.4 million square feet of new retail space expected to be available next year. Most of the new supply outside the city areas will be concentrated in Serangoon Central, Resorts World Sentosa and Nex.
Mayfair Gardens up for en bloc sale
Mayfair Gardens up for en bloc sale
Dec 22, 2009 - PropertyGuru.com.sg
There are more signs of life in the en bloc market, with owners of Mayfair Gardens located in Rifle Range Road being the most recent to put their estate up for sale.
Mayfair residents want $210 million or more for their 99-year leasehold plot, which accounts to around $857 per square foot of potential gross floor area.
That would permit owners of the development with 124 units to earn between $1 million and $2.1 million each, depending on the unit’s size.
In March, only about 80 percent of owners supported a sale but they preferred to hold back until the market starts to pick up prior to their launching.
Their price tag of $210 million also includes the topping of the site's lease to 99 years and an estimated development charge of $40 million.
The marketing agent for Mayfair Gardens is CKS Property Consultants, which also brokered the collective sale of Dragon Mansions.
Dec 22, 2009 - PropertyGuru.com.sg
There are more signs of life in the en bloc market, with owners of Mayfair Gardens located in Rifle Range Road being the most recent to put their estate up for sale.
Mayfair residents want $210 million or more for their 99-year leasehold plot, which accounts to around $857 per square foot of potential gross floor area.
That would permit owners of the development with 124 units to earn between $1 million and $2.1 million each, depending on the unit’s size.
In March, only about 80 percent of owners supported a sale but they preferred to hold back until the market starts to pick up prior to their launching.
Their price tag of $210 million also includes the topping of the site's lease to 99 years and an estimated development charge of $40 million.
The marketing agent for Mayfair Gardens is CKS Property Consultants, which also brokered the collective sale of Dragon Mansions.
Quest set to explore the Singapore market
Quest set to explore the Singapore market
Dec 22, 2009 - PropertyGuru.com.sg
Quest, a serviced apartment provider based in Australia is interested to break into the Asian market, beginning with Singapore. It has properties in Fiji, New Zealand and Australia.
Paul Constantinou, chairman of Quest, said that Singapore is a ‘priority market’, with its ability to lure both business travelers and investments and its stable economic performance.
“We know the market conditions here and have seen the industry to be a resilient one,” he said, referring to the Ascott Group and Frasers who have also set up in Australia. “The market is now ready for individual players to buy into the industry.”
The business model of Quest operates mainly on a franchised system. Apartments are built by Quest or a developer, and are sold to property trusts and individual investors, who lease it back to Quest for 25 years. Franchisees can buy the rights to manage the serviced apartment.
In Singapore, Quest hopes to associate with land owners and local developers.
Mr. Constantinou sees a rising tide of people who want to get involved in the serviced apartment industry, due to the growing wealth in Asia.
“Based on our own experience of starting out with a mix of company-owned and franchised properties, we found that franchised properties were able to deliver a better bottom line and scored a 15 per cent to 20 per cent better performance,” Mr. Constantinou said.
“The benefits of franchising are that the person who owns the business runs the business and there is certainty of income for the developer. Developers want the surety of income over extended periods of time.”
Currently, Quest owns 128 properties in New Zealand, Australia and Fiji, with 74 franchisees.
Dec 22, 2009 - PropertyGuru.com.sg
Quest, a serviced apartment provider based in Australia is interested to break into the Asian market, beginning with Singapore. It has properties in Fiji, New Zealand and Australia.
Paul Constantinou, chairman of Quest, said that Singapore is a ‘priority market’, with its ability to lure both business travelers and investments and its stable economic performance.
“We know the market conditions here and have seen the industry to be a resilient one,” he said, referring to the Ascott Group and Frasers who have also set up in Australia. “The market is now ready for individual players to buy into the industry.”
The business model of Quest operates mainly on a franchised system. Apartments are built by Quest or a developer, and are sold to property trusts and individual investors, who lease it back to Quest for 25 years. Franchisees can buy the rights to manage the serviced apartment.
In Singapore, Quest hopes to associate with land owners and local developers.
Mr. Constantinou sees a rising tide of people who want to get involved in the serviced apartment industry, due to the growing wealth in Asia.
“Based on our own experience of starting out with a mix of company-owned and franchised properties, we found that franchised properties were able to deliver a better bottom line and scored a 15 per cent to 20 per cent better performance,” Mr. Constantinou said.
“The benefits of franchising are that the person who owns the business runs the business and there is certainty of income for the developer. Developers want the surety of income over extended periods of time.”
Currently, Quest owns 128 properties in New Zealand, Australia and Fiji, with 74 franchisees.
Tuesday, December 22, 2009
Hong Leong unveils lowest HDB loan rates
Hong Leong unveils lowest HDB loan rates
Dec 22, 2009 - PropertyGuru.com.sg
Hong Leong Finance unveiled a new HDB loan package with the lowest rates in town.
The latest offering by the finance company is aimed at one of the hottest segments in the market, with extreme interest in projects like the new flats to be constructed at Queenstown’s Dawson estate.
Last week it unveiled a loan package for the good class bungalow market – the other end of the spectrum.
It now offers HDB buyers with variable rates for loans of $100,000 and above, with financing up to 80 percent, at 1.33 percent for the first year, 2.03 percent for the second, and 2.63 percent for the third.
This package is another step down in rates from last month’s offer of the company, with equivalent loan rates of 2.13 percent for the second year and 2.83 percent for the third.
Hong Leong now provides a borrower looking for a two-year fixed rate loan with a rate of 2.13 percent in the second year, down from 2.63 percent.
By comparison, DBS Bank is offering a two-year fixed rate of 2.9 percent for loans intended for owner-occupied homes that have been completed, with up to 60 percent financing.
According to Hong Leong, the intensifying activity in the HDB market led to more inquiries for loans of HDB homes.
“We anticipate continued growth of our HDB home loans portfolio in 2010, which will be boosted in part by HDB's plans to launch at least one build-to-order project per month to meet the housing demand here,” said President Ian Macdonald.
The company also offers its customers an added sweetener of a $20 Millenium and Copthorne hotels gift voucher for every $100,000 loan.
Customers with small loans have not been left out. Those with loans less than $100,000, and up to 80 percent financing will now be offered a variable rate of 1.93 percent for the first year, and fixed rates from 2.33 percent for over two years.
Dec 22, 2009 - PropertyGuru.com.sg
Hong Leong Finance unveiled a new HDB loan package with the lowest rates in town.
The latest offering by the finance company is aimed at one of the hottest segments in the market, with extreme interest in projects like the new flats to be constructed at Queenstown’s Dawson estate.
Last week it unveiled a loan package for the good class bungalow market – the other end of the spectrum.
It now offers HDB buyers with variable rates for loans of $100,000 and above, with financing up to 80 percent, at 1.33 percent for the first year, 2.03 percent for the second, and 2.63 percent for the third.
This package is another step down in rates from last month’s offer of the company, with equivalent loan rates of 2.13 percent for the second year and 2.83 percent for the third.
Hong Leong now provides a borrower looking for a two-year fixed rate loan with a rate of 2.13 percent in the second year, down from 2.63 percent.
By comparison, DBS Bank is offering a two-year fixed rate of 2.9 percent for loans intended for owner-occupied homes that have been completed, with up to 60 percent financing.
According to Hong Leong, the intensifying activity in the HDB market led to more inquiries for loans of HDB homes.
“We anticipate continued growth of our HDB home loans portfolio in 2010, which will be boosted in part by HDB's plans to launch at least one build-to-order project per month to meet the housing demand here,” said President Ian Macdonald.
The company also offers its customers an added sweetener of a $20 Millenium and Copthorne hotels gift voucher for every $100,000 loan.
Customers with small loans have not been left out. Those with loans less than $100,000, and up to 80 percent financing will now be offered a variable rate of 1.93 percent for the first year, and fixed rates from 2.33 percent for over two years.
Opening of Marina Bay IR delayed
Opening of Marina Bay IR delayed
Dec 22, 2009 - PropertyGuru.com.sg
The Marina Bay Sands Integrated Resort will open its first phase of operation by mid-April 2010, instead of February, as earlier announced.
About half of the integrated resort, including the casino and most of the restaurant units, will open by the end of March. The entire $5.5 billion IR project is expected to be completed by the end of next year, said Sheldon Adelson, chairman of Las Vegas Sands.
Job training for newly hired staff will only begin in January, he said. About 12,000 to 14,000 people are needed to run the entire IR. 85 percent of hired employees are Singaporeans.
The Marina Bay Sands, one of two casinos being constructed in Singapore, was scheduled to start operating this month. However, Mr. Adelson said in July that the opening of the casino would be postponed until February next year. But, heavy rains and bankruptcy of some of its sub-contractors have further pushed back its opening, said Mr. Adelson.
Mr. Adelson told reporters on Monday that it was only a “minor delay”. “We are in this not for a day or a week, but for decades. So the delay of a day or a week is nothing. If we are going to do it, we are going to do it right.”
The other casino project, Resorts World at Sentosa, is expected to open its first phase by Q1 of next year, said a spokesman from project developer Genting International. When asked about the profit projection for the said project, Mr. Adelson said the company expects around US$1 billion annually before deducting taxes, interest, amortisations and depreciation expenses.
Dec 22, 2009 - PropertyGuru.com.sg
The Marina Bay Sands Integrated Resort will open its first phase of operation by mid-April 2010, instead of February, as earlier announced.
About half of the integrated resort, including the casino and most of the restaurant units, will open by the end of March. The entire $5.5 billion IR project is expected to be completed by the end of next year, said Sheldon Adelson, chairman of Las Vegas Sands.
Job training for newly hired staff will only begin in January, he said. About 12,000 to 14,000 people are needed to run the entire IR. 85 percent of hired employees are Singaporeans.
The Marina Bay Sands, one of two casinos being constructed in Singapore, was scheduled to start operating this month. However, Mr. Adelson said in July that the opening of the casino would be postponed until February next year. But, heavy rains and bankruptcy of some of its sub-contractors have further pushed back its opening, said Mr. Adelson.
Mr. Adelson told reporters on Monday that it was only a “minor delay”. “We are in this not for a day or a week, but for decades. So the delay of a day or a week is nothing. If we are going to do it, we are going to do it right.”
The other casino project, Resorts World at Sentosa, is expected to open its first phase by Q1 of next year, said a spokesman from project developer Genting International. When asked about the profit projection for the said project, Mr. Adelson said the company expects around US$1 billion annually before deducting taxes, interest, amortisations and depreciation expenses.
Asian stocks closed mixed and HK property market hit
Asian stocks closed mixed and HK property market hit
Dec 22, 2009 - PropertyGuru.com.sg
Asian markets ended Monday on a mixed note with major indexes posting reasonable moves in pre-holiday trade, as concerns over the cooling measures of the property market weighed on Hong Kong.
"We would expect the remainder of the week to see similar, small moves in Asian markets," said Richard Hastings, a consumer strategist from Global Hunter Securities.
HK’s Hang Seng Index ended 1.1 percent lower; South Korea's Kospi Composite lost 0. 2 percent; New Zealand's NZX-50 closed 0.1 percent lower; and Australia's S&P/ASX 200 dropped 0.3 percent. But Taiwan's main index and Japan's Nikkei 225 both added 0.4 percent, while the Shanghai Composite rose 0.3 percent.
Among the regional markets, India's Sensex lost 0.3 percent, Philippine shares ended up 0.1 percent and Singapore's Straits Times Index closed with 0.4 percent.
Hong Kong shares slipped as concerns over the government’s cooling measures on the property market continued to weigh on real estate developers and banking sectors. This followed China’s announcement of a new rule, requiring a 50 percent down payment for land purchases by all property developers.
Asian markets weakened last week amid rising concerns over property-cooling measures in Beijing, and due to "renewed global crisis fears prompted by the sovereign downgrade of Greece and warnings about potential future downgrades of Spain, the U.K. and the U.S.," said Martin Hennecke, the associate director of Tyche Group Ltd. in Hong Kong. "This sovereign debt crisis is ... only getting started and this clearly warrants caution for all investors, in all markets."
Even so, the stock market in Asia "may not be the worst place to have exposure to", particularly China’s undervaluation of the yuan, the low budget deficit and low sovereign debt of the country, and the economic recovery, said Hennecke.
In Australia, the stock market closed lower after finding support from strength in the resource stocks. Traders "seemed happy to push the market a bit higher on the back of reasonable leads from the U.S. session, but momentum waned in the afternoon and sellers took control" ahead of the holiday season, said Cameron Peacock, a market analyst from IG Markets in Melbourne.
Dec 22, 2009 - PropertyGuru.com.sg
Asian markets ended Monday on a mixed note with major indexes posting reasonable moves in pre-holiday trade, as concerns over the cooling measures of the property market weighed on Hong Kong.
"We would expect the remainder of the week to see similar, small moves in Asian markets," said Richard Hastings, a consumer strategist from Global Hunter Securities.
HK’s Hang Seng Index ended 1.1 percent lower; South Korea's Kospi Composite lost 0. 2 percent; New Zealand's NZX-50 closed 0.1 percent lower; and Australia's S&P/ASX 200 dropped 0.3 percent. But Taiwan's main index and Japan's Nikkei 225 both added 0.4 percent, while the Shanghai Composite rose 0.3 percent.
Among the regional markets, India's Sensex lost 0.3 percent, Philippine shares ended up 0.1 percent and Singapore's Straits Times Index closed with 0.4 percent.
Hong Kong shares slipped as concerns over the government’s cooling measures on the property market continued to weigh on real estate developers and banking sectors. This followed China’s announcement of a new rule, requiring a 50 percent down payment for land purchases by all property developers.
Asian markets weakened last week amid rising concerns over property-cooling measures in Beijing, and due to "renewed global crisis fears prompted by the sovereign downgrade of Greece and warnings about potential future downgrades of Spain, the U.K. and the U.S.," said Martin Hennecke, the associate director of Tyche Group Ltd. in Hong Kong. "This sovereign debt crisis is ... only getting started and this clearly warrants caution for all investors, in all markets."
Even so, the stock market in Asia "may not be the worst place to have exposure to", particularly China’s undervaluation of the yuan, the low budget deficit and low sovereign debt of the country, and the economic recovery, said Hennecke.
In Australia, the stock market closed lower after finding support from strength in the resource stocks. Traders "seemed happy to push the market a bit higher on the back of reasonable leads from the U.S. session, but momentum waned in the afternoon and sellers took control" ahead of the holiday season, said Cameron Peacock, a market analyst from IG Markets in Melbourne.
ST : Rents end year-long fall
Dec 22, 2009
Rents end year-long fall
Most retail property watchers bullish about next year as economy improves
By Esther Teo
Leasing activity has increased as retailers gain more confidence along with the economic recovery. -- ST PHOTO: DESMOND WEE
IN KEEPING with the festive decorations lighting up the prime Orchard retail belt, landlords on the famous strip have just received news bound to brighten the gloomy mood cast by the downturn.
After four straight quarters of decline, rents for first-storey Orchard Road and Scotts Road retail space inched up 1 per cent to $39.70 per sq ft (psf), a month after falling 7.3 per cent since the third quarter of last year.
Rents in suburban areas seem to be stabilising as well, buoyed by the upswing in the economy, property reports suggest.
The report, from DTZ Research, also said prime first-storey gross rents in suburban areas rose 1.5 per cent quarter-on-quarter to $33.50 psf per month.
However, rents in fringe city areas such as Great World City and Bugis Junction continued to fall. These malls miss out on local residents, who patronise suburban malls, and the tourist crowd that heads to Orchard, said DTZ South-east Asia research head Chua Chor Hoon.
She added that leasing activity has increased as retailers gain more confidence along with the economic recovery: 'There is strong demand for prime first-storey space, evident from the little availability and speed at which they are taken up, despite the amount of new space that has come up along Orchard Road.'
Rents end year-long fall
Most retail property watchers bullish about next year as economy improves
By Esther Teo
Leasing activity has increased as retailers gain more confidence along with the economic recovery. -- ST PHOTO: DESMOND WEE
IN KEEPING with the festive decorations lighting up the prime Orchard retail belt, landlords on the famous strip have just received news bound to brighten the gloomy mood cast by the downturn.
After four straight quarters of decline, rents for first-storey Orchard Road and Scotts Road retail space inched up 1 per cent to $39.70 per sq ft (psf), a month after falling 7.3 per cent since the third quarter of last year.
Rents in suburban areas seem to be stabilising as well, buoyed by the upswing in the economy, property reports suggest.
The report, from DTZ Research, also said prime first-storey gross rents in suburban areas rose 1.5 per cent quarter-on-quarter to $33.50 psf per month.
However, rents in fringe city areas such as Great World City and Bugis Junction continued to fall. These malls miss out on local residents, who patronise suburban malls, and the tourist crowd that heads to Orchard, said DTZ South-east Asia research head Chua Chor Hoon.
She added that leasing activity has increased as retailers gain more confidence along with the economic recovery: 'There is strong demand for prime first-storey space, evident from the little availability and speed at which they are taken up, despite the amount of new space that has come up along Orchard Road.'
ST : What's opening
Dec 22, 2009
What's opening
By mid-April: About 1,000 hotel rooms, parts of the convention centre and shopping area, restaurants (including three celebrity chef eateries) and casino
By mid-June (60 days later): The rest of the resort, including the Sands Sky Park, with the exception of the Art Science Museum and the two theatres
By September: One theatre
By end-2010: The Art Science Museum and remaining theatre
What's opening
By mid-April: About 1,000 hotel rooms, parts of the convention centre and shopping area, restaurants (including three celebrity chef eateries) and casino
By mid-June (60 days later): The rest of the resort, including the Sands Sky Park, with the exception of the Art Science Museum and the two theatres
By September: One theatre
By end-2010: The Art Science Museum and remaining theatre
ST : Marina Sands IR up by Apr
Dec 22, 2009
Marina Sands IR up by Apr
By Jessica Lim
Las Vegas Sands chairman Sheldon Adelson at a meeting with the media yesterday to give an update on the progress of the integrated resort. He was in combative mood at the hour-long session, half of which was dominated by the delay in its opening. -- ST PHOTO: NG SOR LUAN
THE first guests at the Marina Bay Sands integrated resort (IR) will be able to check in, have a meal, attend a convention and gamble by the middle of April next year, at the latest.
That was the new deadline revealed by Las Vegas Sands chairman Sheldon Adelson on Monday.
That means about 1,000 hotel rooms, several eateries (including three of its six celebrity-chef restaurants), part of the convention facilities and the casino floor will have to be ready by then, or the operator risks failing to secure its casino licence.
The rest of the project will open in phases before the end of next year.
Sands training 'early next year'
Mr Adelson also had an update for new employees, some of whom were in the news last week waiting to hear when training for their new jobs as dealers and croupiers would start.
Marina Sands IR up by Apr
By Jessica Lim
Las Vegas Sands chairman Sheldon Adelson at a meeting with the media yesterday to give an update on the progress of the integrated resort. He was in combative mood at the hour-long session, half of which was dominated by the delay in its opening. -- ST PHOTO: NG SOR LUAN
THE first guests at the Marina Bay Sands integrated resort (IR) will be able to check in, have a meal, attend a convention and gamble by the middle of April next year, at the latest.
That was the new deadline revealed by Las Vegas Sands chairman Sheldon Adelson on Monday.
That means about 1,000 hotel rooms, several eateries (including three of its six celebrity-chef restaurants), part of the convention facilities and the casino floor will have to be ready by then, or the operator risks failing to secure its casino licence.
The rest of the project will open in phases before the end of next year.
Sands training 'early next year'
Mr Adelson also had an update for new employees, some of whom were in the news last week waiting to hear when training for their new jobs as dealers and croupiers would start.
Monday, December 21, 2009
ST : $10,000 fine for forging cert
Dec 21, 2009
$10,000 fine for forging cert
By Khushwant Singh
A former board member of the Intellectual Property Office of Singapore (IPOS), Ho Ying Dat (pictured) was fined $10,000 for forging a certificate when registering as a patent agent in 2002
A FORMER board member of the Intellectual Property Office of Singapore (IPOS) was fined $10,000 for forging a certificate when registering as a patent agent in 2002
Ho Ying Dat, 52, who pleaded guilty on Monday, could have been jailed for up to two years.
His lawyer B. Ganesh said that Ho, a Malaysian and a Singapore permanent resident, had passed the examinations set by the United States Patent and Trademark Office (USPTO) in April 1992.
However, he failed to fulfil the residency qualification of working in the US for a year. The Malaysian returned here as his father was very ill then.
In July 1992, he set up his own patent firm Lawrence Y.D. Ho & Associates, with his wife.
In 2002, IPOS required all patent agents to be licensed. Ho was worried he may not be registered as he did not have certification and decided to forge an USPTA certificate.
$10,000 fine for forging cert
By Khushwant Singh
A former board member of the Intellectual Property Office of Singapore (IPOS), Ho Ying Dat (pictured) was fined $10,000 for forging a certificate when registering as a patent agent in 2002
A FORMER board member of the Intellectual Property Office of Singapore (IPOS) was fined $10,000 for forging a certificate when registering as a patent agent in 2002
Ho Ying Dat, 52, who pleaded guilty on Monday, could have been jailed for up to two years.
His lawyer B. Ganesh said that Ho, a Malaysian and a Singapore permanent resident, had passed the examinations set by the United States Patent and Trademark Office (USPTO) in April 1992.
However, he failed to fulfil the residency qualification of working in the US for a year. The Malaysian returned here as his father was very ill then.
In July 1992, he set up his own patent firm Lawrence Y.D. Ho & Associates, with his wife.
In 2002, IPOS required all patent agents to be licensed. Ho was worried he may not be registered as he did not have certification and decided to forge an USPTA certificate.
ST : Retail rents creeping up
Dec 21, 2009
Retail rents creeping up
By Esther Teo
Retail space in the prime Orchard retail belt and suburban malls have crept up in the last quarter, buoyed by the upswing in the economy, after four consecutive quarters of decline. -- ST PHOTO: ALPHONSUS CHERN
RETAIL space in the prime Orchard retail belt and suburban malls have crept up in the last quarter, buoyed by the upswing in the economy, after four consecutive quarters of decline.
In its report released on Monday, DTZ Research said that gross rents of prime first-storey retail space in Orchard and Scotts roads rose slightly by 1 per cent to $39.70 per sq feet per month, after falling 7.3 per cent in the previous four quarters.
In the suburban areas, retail rents moved up after having stablilised in the previous quarter, while rents in the other city areas like Bugis Junction and Great World City continued to fall. Prime first-storey retail gross rents in suburban malls rose 1.5 per cent quarter-on-quarter to $33.50 per square ft per month, after having fallen 2.1 per cent from the peak of the third quarter last year.
DTZ South-east Asia Research head Ms Chua Chor Hoon said that leasing activity has increased as retailers gain more confidence, along with the economic recovery. "There is strong demand for prime first-storey space, evident from the little availability and speed at which they are being taken up, despite the amount of new space that has come up along Orchard Road," she said.
DTZ estimates that 2.6 million square feet of new retail space, which included 313@Somerset and Mandarin Gallery, were added to the stock this year. This is the highest new supply ever seen. Ms Chua expects prime retail rents in Orchard and Scotts Road and the suburban areas to continue to move up by 2 to 7 per cent next year.
The new supply in Orchard Road is expected to fall to about 165,000 sq ft next year and will be a mere 7 per cent of the almost 2.4 million sq feet of new retail space projected to be available next year. Outside of the city areas, most of the new supply will be concentrated in Resorts World Sentosa, Nex and Serangoon Central.
Retail rents creeping up
By Esther Teo
Retail space in the prime Orchard retail belt and suburban malls have crept up in the last quarter, buoyed by the upswing in the economy, after four consecutive quarters of decline. -- ST PHOTO: ALPHONSUS CHERN
RETAIL space in the prime Orchard retail belt and suburban malls have crept up in the last quarter, buoyed by the upswing in the economy, after four consecutive quarters of decline.
In its report released on Monday, DTZ Research said that gross rents of prime first-storey retail space in Orchard and Scotts roads rose slightly by 1 per cent to $39.70 per sq feet per month, after falling 7.3 per cent in the previous four quarters.
In the suburban areas, retail rents moved up after having stablilised in the previous quarter, while rents in the other city areas like Bugis Junction and Great World City continued to fall. Prime first-storey retail gross rents in suburban malls rose 1.5 per cent quarter-on-quarter to $33.50 per square ft per month, after having fallen 2.1 per cent from the peak of the third quarter last year.
DTZ South-east Asia Research head Ms Chua Chor Hoon said that leasing activity has increased as retailers gain more confidence, along with the economic recovery. "There is strong demand for prime first-storey space, evident from the little availability and speed at which they are being taken up, despite the amount of new space that has come up along Orchard Road," she said.
DTZ estimates that 2.6 million square feet of new retail space, which included 313@Somerset and Mandarin Gallery, were added to the stock this year. This is the highest new supply ever seen. Ms Chua expects prime retail rents in Orchard and Scotts Road and the suburban areas to continue to move up by 2 to 7 per cent next year.
The new supply in Orchard Road is expected to fall to about 165,000 sq ft next year and will be a mere 7 per cent of the almost 2.4 million sq feet of new retail space projected to be available next year. Outside of the city areas, most of the new supply will be concentrated in Resorts World Sentosa, Nex and Serangoon Central.
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