Jan 16, 2010
Foreign home buyers hit by ruling
KL's move to double minimum price level may hurt bid to draw foreigners: Report
KUALA LUMPUR: Foreigners buying houses in Malaysia can acquire only properties that cost a minimum of RM500,000 (S$208,000) from this year, reported local media. Previously, they could buy houses that cost a minimum of RM250,000.
The move by the government to double the minimum price level for foreigners may hurt Malaysia's campaign to promote the country as a second home for foreign citizens, the New Straits Times (NST) reported yesterday.
Under the Malaysia My Second Home (MM2H) programme, successful applicants will be granted long-stay visas, which allow them to live in the country for up to 10 years.
Applicants below 50 years old must have liquid assets of at least RM500,000 and RM10,000 in monthly income earned from abroad. Those aged 50 and above need to have assets of RM350,000 and a monthly offshore income of RM10,000.
Industry players said the new ruling, which was confirmed by Malaysia's Economic Planning Unit on Thursday, could dampen the property market.
The new ruling was first announced by Prime Minister Najib Razak six months ago.
Datuk Richard Fong, president of the International Real Estate Federation (FIABCI) Malaysia, said properties outside Kuala Lumpur might be badly hurt by the government's move.
'It won't be so much of a problem for Kuala Lumpur, where properties easily cost half a million ringgit, but in areas like Terengganu and Ipoh...where can you find properties in that range?' he told NST.
A survey by FIABCI found that half of the properties purchased by foreigners were priced between RM250,000 and RM500,000.
'So you are really wiping out half of the market by increasing the threshold limit,' Mr Fong said.
Mr Ng Seing Liong of the Real Estate and Housing Developers' Association said the new ruling will affect outlying areas like Terengganu and Malacca.
However, chief executive officer Previndran Singhe of real estate firm Zerin Properties told NST that the new policy will not affect the property market, as foreigners are already buying properties worth RM500,000 and above.
About 2.5 per cent of total property investments in Malaysia are made by foreigners, said NST.
In 2008, Indian nationals made up the fourth largest group of residential property investors after those from Singapore, Britain and South Korea, reported India's Economic Times.
The Malaysian government will hold its first property expo in Chennai, India, from Jan 22 to 24.
Wednesday, January 20, 2010
ST : Luxury home prices may hit 2007 high
Jan 16, 2010
Luxury home prices may hit 2007 high
Property tycoon paints rosy outlook, plans new project
By Joyce Teo
IF PROPERTY tycoon Kwek Leng Beng is right on the money, then the prices of prime luxury homes could charge back to their dazzling 2007 highs by the end of this year or perhaps next year.
This ultra-rosy outlook assumes the world economy continues to improve, the City Developments' executive chairman said during an interview in response to a question posed by The Straits Times.
Of course, his forecast that high-end prices will rise is not new. Plenty of property consultants have been tipping a rise in the high-end sector this year.
But the degree of optimism of an industry leader such as Mr Kwek could turn heads - and he insists he is not simply talking up the market for his own ends.
'People say I like to talk up the market. It is not that I like to talk up the market. It is that more often than not, I would say I am 90 per cent correct in predicting the market,' he said.
'This can only arise from my many years of experience, from the mistakes I learnt from, from the intuition that I have. I also understand the psychology of people.'
In fact, he does not want to see prices rise too rapidly. 'I hope the increase will not be so dramatic as to provoke concerns,' Mr Kwek said.
A return to the previous peak levels is possible by the end of this year, and if not, then by next year, he said.
'My reading is that the rich Chinese buyers will come one day,' he said.
The integrated resorts (IRs) will help to draw many foreigners here, and some of them may decide to buy a home here if they like the IRs, said Mr Kwek.
Last year, it was the turn of mass market and mid-tier properties to rise - driven largely by demand from upgraders.
In contrast, the high-end sector witnessed an exodus of all-important foreign buyers and has yet to get on track for a significant recovery despite some tentatively good signs.
Mr Kwek feels luxury home prices can easily jump by more than 10 per cent this year as they are still about 25 per cent off the previous peak.
The higher the market goes, the greater the number of buyers, he said. Conversely, when the market slips to a low point, many will not want to buy, he said.
Mr Kwek's views were, to a certain extent, shared by Colliers International director of research and advisory Tay Huey Ying.
She believes luxury home prices could reach or surpass the previous peak by the end of the year on an average basis.
'Our basket of super high-end or luxury homes peaked at $3,174 per sq ft (psf) in late 2007 and early 2008. As of the end of last year, our prices were only 9 per cent off the peak,' she said.
'However, this luxury segment is not likely to achieve another record price this year, given the expected modest growth in the global economy.'
Indeed, there are still downside risks to reckon with, said Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang. For instance, the speed of economic recovery in the sluggish United States is uncertain, he said.
The high-end market will not necessarily move as one, and some projects may outshine the rest.
'Selective luxury projects with a good location and finishes may attempt to puncture the previous peak levels when our economy further improves in 2011,' said Dr Chua.
Naturally, Mr Kwek hopes to be among those to stand out from the rest. He is preparing to introduce a new brand in possibly the next three months.
He said he is still tying up loose ends on the 228-unit W Residences project on the Sentosa Quayside site, where a W Hotel will also be built.
The residential part of the project could be priced from about $2,500 psf to $3,000 psf, and will be his second branded project here, after St Regis Residences.
Other projects that his Hong Leong group and City Developments intend to push out soon include Cube 8 on Thomson Road and 76 Shenton on the former Ong Building site.
Luxury home prices may hit 2007 high
Property tycoon paints rosy outlook, plans new project
By Joyce Teo
IF PROPERTY tycoon Kwek Leng Beng is right on the money, then the prices of prime luxury homes could charge back to their dazzling 2007 highs by the end of this year or perhaps next year.
This ultra-rosy outlook assumes the world economy continues to improve, the City Developments' executive chairman said during an interview in response to a question posed by The Straits Times.
Of course, his forecast that high-end prices will rise is not new. Plenty of property consultants have been tipping a rise in the high-end sector this year.
But the degree of optimism of an industry leader such as Mr Kwek could turn heads - and he insists he is not simply talking up the market for his own ends.
'People say I like to talk up the market. It is not that I like to talk up the market. It is that more often than not, I would say I am 90 per cent correct in predicting the market,' he said.
'This can only arise from my many years of experience, from the mistakes I learnt from, from the intuition that I have. I also understand the psychology of people.'
In fact, he does not want to see prices rise too rapidly. 'I hope the increase will not be so dramatic as to provoke concerns,' Mr Kwek said.
A return to the previous peak levels is possible by the end of this year, and if not, then by next year, he said.
'My reading is that the rich Chinese buyers will come one day,' he said.
The integrated resorts (IRs) will help to draw many foreigners here, and some of them may decide to buy a home here if they like the IRs, said Mr Kwek.
Last year, it was the turn of mass market and mid-tier properties to rise - driven largely by demand from upgraders.
In contrast, the high-end sector witnessed an exodus of all-important foreign buyers and has yet to get on track for a significant recovery despite some tentatively good signs.
Mr Kwek feels luxury home prices can easily jump by more than 10 per cent this year as they are still about 25 per cent off the previous peak.
The higher the market goes, the greater the number of buyers, he said. Conversely, when the market slips to a low point, many will not want to buy, he said.
Mr Kwek's views were, to a certain extent, shared by Colliers International director of research and advisory Tay Huey Ying.
She believes luxury home prices could reach or surpass the previous peak by the end of the year on an average basis.
'Our basket of super high-end or luxury homes peaked at $3,174 per sq ft (psf) in late 2007 and early 2008. As of the end of last year, our prices were only 9 per cent off the peak,' she said.
'However, this luxury segment is not likely to achieve another record price this year, given the expected modest growth in the global economy.'
Indeed, there are still downside risks to reckon with, said Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang. For instance, the speed of economic recovery in the sluggish United States is uncertain, he said.
The high-end market will not necessarily move as one, and some projects may outshine the rest.
'Selective luxury projects with a good location and finishes may attempt to puncture the previous peak levels when our economy further improves in 2011,' said Dr Chua.
Naturally, Mr Kwek hopes to be among those to stand out from the rest. He is preparing to introduce a new brand in possibly the next three months.
He said he is still tying up loose ends on the 228-unit W Residences project on the Sentosa Quayside site, where a W Hotel will also be built.
The residential part of the project could be priced from about $2,500 psf to $3,000 psf, and will be his second branded project here, after St Regis Residences.
Other projects that his Hong Leong group and City Developments intend to push out soon include Cube 8 on Thomson Road and 76 Shenton on the former Ong Building site.
ST : Home sales last year close to 2007 high
Jan 16, 2010
Home sales last year close to 2007 high
Stellar showing despite plunge last month when just 481 units were sold
By Joyce Teo, Property Correspondent
LAST year closed on a low note for developers when a slowing market saw only 481 private home units sold in December but overall 2009 was a far better 12 months than many had expected.
Buyers returned to the market, gingerly at first and then at a gallop to snap up flats that were more affordable than in the madcap days of pre-crisis 2007.
Government cooling measures slowed it all down later in the year as reflected in December's poor sales - down on November's 601 units and the fifth month in a row of decline.
Yet it failed to take much shine off the year's stellar sales numbers: A total of 14,725 private home units were bought, just 0.6 per cent short of 2007's record tally and about 3.5 times sales in 2008.
'The residential market has proven its resilience by rising above the economic recession in 2009,' said CBRE Research executive director Li Hiaw Ho.
Developers launched 14,103 new private homes last year, surpassing the previous high of 14,016 units in 2007, experts noted.
If buyers had not lapsed on their options, 2009's sales would have set a record of 14,991 units.
The Urban Redevelopment Authority's (URA) monthly sales figures - from which the 14,991 figure is derived - do not include lapsed options.
There's no escaping the impact of the financial crisis. Caveats lodged show that the dollar value of new homes sold last year is only 63 per cent of that in 2007, Mr Li said.
'The lower quantum could be attributed to the dominance of mass-market and mid-tier homes in the 2009 basket, compared to 2007, which comprised largely high-end homes,' he added.
Affordability was a key issue last year with buyers - many HDB upgraders - keen on small units as these have a more palatable price. Some 42 per cent of last year's sales were in suburban areas.
Developers cut prices and unit sizes which helped meet demand, said Dr Chua Yang Liang, Jones Lang LaSalle's head of research, South-east Asia.
It was 'a year of opportunistic buying' as buyers realised that prices had corrected from the peak levels in 2007, said Mr Li.
This started in the mass-market segment in the first half of the year before filtering into the mid-tier and high-end projects in the second half, he said.
Prices started to rise around the middle of the year. Government data showed that prices, which fell by some 18 per cent in the first half of the year, had rebounded by 24 per cent in the second half.
Increasingly frenzied buying from February prompted the Government to step in in mid-September with measures to take the heat out of the market.
Transactions duly fell, with December the fifth consecutive month of sales decline after transactions had peaked in July at 2,772 units.
With buyers holding back, developers launched fewer units last month. Just 734 were launched, down from 923 in November, according to URA data yesterday.
The best seller last month was Far East Organization's The Shore Residences, located opposite Katong Shopping Centre. It launched 136 units and sold 79 for between $1,002 and $1,318 per sq ft (psf).
CapitaLand's Urban Suites also did well in a quiet month, selling 59 units for $2,180 psf to $2,765 psf.
There has been a noticeable pick-up in demand for units priced above $2,000 psf in the second half, though the total number has yet to make an impact.
Overall, the take-up rate of new launches slowed towards the end of last year, said Dr Chua.
He said this suggested that the Government's mid-September announcement of anti-speculative measures had some effect on demand.
While sales were strong last year, demand, especially in the mass market, has become more sustainable, said Dr Chua.
'As such, we do not expect further government measures in the immediate to short term unless transaction volume and prices begin to move out of pace with the larger economic recovery again,' he added.
Consultants expect demand for new homes to moderate to between 7,000 and 10,000 units this year.
CBRE Research is tipping price rises of 8 to 10 per cent, with sales and price momentum to be led by the high-end segment in the first half.
Colliers International expects a more optimistic 12 to 15 per cent rise in prices.
Home sales last year close to 2007 high
Stellar showing despite plunge last month when just 481 units were sold
By Joyce Teo, Property Correspondent
LAST year closed on a low note for developers when a slowing market saw only 481 private home units sold in December but overall 2009 was a far better 12 months than many had expected.
Buyers returned to the market, gingerly at first and then at a gallop to snap up flats that were more affordable than in the madcap days of pre-crisis 2007.
Government cooling measures slowed it all down later in the year as reflected in December's poor sales - down on November's 601 units and the fifth month in a row of decline.
Yet it failed to take much shine off the year's stellar sales numbers: A total of 14,725 private home units were bought, just 0.6 per cent short of 2007's record tally and about 3.5 times sales in 2008.
'The residential market has proven its resilience by rising above the economic recession in 2009,' said CBRE Research executive director Li Hiaw Ho.
Developers launched 14,103 new private homes last year, surpassing the previous high of 14,016 units in 2007, experts noted.
If buyers had not lapsed on their options, 2009's sales would have set a record of 14,991 units.
The Urban Redevelopment Authority's (URA) monthly sales figures - from which the 14,991 figure is derived - do not include lapsed options.
There's no escaping the impact of the financial crisis. Caveats lodged show that the dollar value of new homes sold last year is only 63 per cent of that in 2007, Mr Li said.
'The lower quantum could be attributed to the dominance of mass-market and mid-tier homes in the 2009 basket, compared to 2007, which comprised largely high-end homes,' he added.
Affordability was a key issue last year with buyers - many HDB upgraders - keen on small units as these have a more palatable price. Some 42 per cent of last year's sales were in suburban areas.
Developers cut prices and unit sizes which helped meet demand, said Dr Chua Yang Liang, Jones Lang LaSalle's head of research, South-east Asia.
It was 'a year of opportunistic buying' as buyers realised that prices had corrected from the peak levels in 2007, said Mr Li.
This started in the mass-market segment in the first half of the year before filtering into the mid-tier and high-end projects in the second half, he said.
Prices started to rise around the middle of the year. Government data showed that prices, which fell by some 18 per cent in the first half of the year, had rebounded by 24 per cent in the second half.
Increasingly frenzied buying from February prompted the Government to step in in mid-September with measures to take the heat out of the market.
Transactions duly fell, with December the fifth consecutive month of sales decline after transactions had peaked in July at 2,772 units.
With buyers holding back, developers launched fewer units last month. Just 734 were launched, down from 923 in November, according to URA data yesterday.
The best seller last month was Far East Organization's The Shore Residences, located opposite Katong Shopping Centre. It launched 136 units and sold 79 for between $1,002 and $1,318 per sq ft (psf).
CapitaLand's Urban Suites also did well in a quiet month, selling 59 units for $2,180 psf to $2,765 psf.
There has been a noticeable pick-up in demand for units priced above $2,000 psf in the second half, though the total number has yet to make an impact.
Overall, the take-up rate of new launches slowed towards the end of last year, said Dr Chua.
He said this suggested that the Government's mid-September announcement of anti-speculative measures had some effect on demand.
While sales were strong last year, demand, especially in the mass market, has become more sustainable, said Dr Chua.
'As such, we do not expect further government measures in the immediate to short term unless transaction volume and prices begin to move out of pace with the larger economic recovery again,' he added.
Consultants expect demand for new homes to moderate to between 7,000 and 10,000 units this year.
CBRE Research is tipping price rises of 8 to 10 per cent, with sales and price momentum to be led by the high-end segment in the first half.
Colliers International expects a more optimistic 12 to 15 per cent rise in prices.
BT : Banner year for property ends with a whimper
Business Times - 16 Jan 2010
Banner year for property ends with a whimper
Near-record 14,725 private homes were sold in 2009, but only 481 of them in December
By UMA SHANKARI
PRIVATE home sales fell for the fourth straight month in December, sliding 20 per cent month-on-month to just 481 units.
But the market still finished 2009 strongly with a total of 14,725 units throughout the year - about 3.5 times the number of homes sold in 2008. Total home sales were, however, still a shade lower than the peak transaction volume of 14,811 units in 2007.
'It was a year of opportunistic buying as homebuyers realised that prices had corrected from the peak levels in 2007 - starting with mass-market projects in the first half of the year, filtering into the mid-tier, and then to the high-end projects in the second half of 2009,' said Li Hiaw Ho, executive director for research at CB Richard Ellis.
Reflecting the reversal in sentiment, the Urban Redevelopment Authority (URA) index - the yardstick for private home prices in Singapore - fell 18 per cent in the first half of 2009 but rebounded by 24 per cent in the second half.
While buyer interest has shifted noticeably to high-end and luxury homes over the last few months, 2009 belonged to the mass-market segment.
Data from URA showed that of the 14,725 homes sold during the year, 6,064 were in the outside central region (OCR), which is a proxy for suburban mass-market locations.
The top two projects were Frasers Centrepoint's Caspian (712 units sold) and UOL Group and Kheng Leong's Double Bay Residences (601 units sold).
'While there was a filtering-up of demand to the mid-tier segment in Q2 and Q3 2009, and eventually to the high-end/luxury segment in Q4 2009, along with the uplift in economic prospects and market optimism, mass-market projects in the OCR continued to dominate market activity in 2009,' said Colliers director for research and advisory Tay Huey Ying.
Developers launched 14,103 new private homes in 2009, surpassing the previous high of 14,016 units in 2007. The OCR accounted for the most number of units launched.
Sales last year were driven by six months of strong market activity, which saw both launches and sales staying at above the 1,000-unit level from April to September. In July, which was the peak month, both launch and sales volume crossed the 2,500-unit mark.
Strong signs that the sentiments at the luxury segment is recovering is evident from December's sales figure.
An analysis by Colliers International showed that the number of homes priced between $2,500-$3,000 per square foot surged to 37 units - the highest number of transactions in this price band in 2009 and a marked increase from the five units and 15 units transacted within this price band in October and November 2009.
The bulk of the units sold in this price band in December 2009 came from CapitaLand's newly-launched Urban Suites. And the most expensive unit sold by a developer was an apartment at Nassim Park Residences, which was transacted at $3,650 psf.
In fact, the number of units priced above $2,000 psf has been increasing steadily over the four quarters in 2009, according to an analysis by Savills Singapore. The firm's data shows that four homes priced at above $2,000 psf were sold in Q1, 53 in Q2, 165 in Q3 and 283 in Q4.
Looking ahead, analysts said that the private residential market is expected to stay healthy in 2010 with another wave of buying possibly coming after the Chinese New Year celebrations.
'Going forward to 2010, we expect the demand for new homes to be moderated to a more sustainable level of 8,000-10,000 units and home prices to strengthen by 8-10 per cent through the year,' said CBRE's Mr Li. 'Both sales and price momentum will be led by the high-end segment in the first half of 2010.'
Colliers said that in line with the expected pick-up in activity, home prices in the core central region (which includes the prime Districts 9 and 10, the financial district and Sentosa Cove) are expected to witness the strongest increase of 15-20 per cent in 2010, followed by the mid-tier RCR or rest of central region (8-12 per cent), and then the OCR (5-8 per cent).
But analysts are still holding out hope that the mass market could account for a bigger slice of the pie this year, possibly from H2 2010 onwards.
The buoyant HDB resale market may generate demand from HDB upgraders for mass-market projects in 2010. And mass-market volumes should recover as developers go ahead with planned launches in 2010, said PropNex chief executive Mohamed Ismail.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Banner year for property ends with a whimper
Near-record 14,725 private homes were sold in 2009, but only 481 of them in December
By UMA SHANKARI
PRIVATE home sales fell for the fourth straight month in December, sliding 20 per cent month-on-month to just 481 units.
But the market still finished 2009 strongly with a total of 14,725 units throughout the year - about 3.5 times the number of homes sold in 2008. Total home sales were, however, still a shade lower than the peak transaction volume of 14,811 units in 2007.
'It was a year of opportunistic buying as homebuyers realised that prices had corrected from the peak levels in 2007 - starting with mass-market projects in the first half of the year, filtering into the mid-tier, and then to the high-end projects in the second half of 2009,' said Li Hiaw Ho, executive director for research at CB Richard Ellis.
Reflecting the reversal in sentiment, the Urban Redevelopment Authority (URA) index - the yardstick for private home prices in Singapore - fell 18 per cent in the first half of 2009 but rebounded by 24 per cent in the second half.
While buyer interest has shifted noticeably to high-end and luxury homes over the last few months, 2009 belonged to the mass-market segment.
Data from URA showed that of the 14,725 homes sold during the year, 6,064 were in the outside central region (OCR), which is a proxy for suburban mass-market locations.
The top two projects were Frasers Centrepoint's Caspian (712 units sold) and UOL Group and Kheng Leong's Double Bay Residences (601 units sold).
'While there was a filtering-up of demand to the mid-tier segment in Q2 and Q3 2009, and eventually to the high-end/luxury segment in Q4 2009, along with the uplift in economic prospects and market optimism, mass-market projects in the OCR continued to dominate market activity in 2009,' said Colliers director for research and advisory Tay Huey Ying.
Developers launched 14,103 new private homes in 2009, surpassing the previous high of 14,016 units in 2007. The OCR accounted for the most number of units launched.
Sales last year were driven by six months of strong market activity, which saw both launches and sales staying at above the 1,000-unit level from April to September. In July, which was the peak month, both launch and sales volume crossed the 2,500-unit mark.
Strong signs that the sentiments at the luxury segment is recovering is evident from December's sales figure.
An analysis by Colliers International showed that the number of homes priced between $2,500-$3,000 per square foot surged to 37 units - the highest number of transactions in this price band in 2009 and a marked increase from the five units and 15 units transacted within this price band in October and November 2009.
The bulk of the units sold in this price band in December 2009 came from CapitaLand's newly-launched Urban Suites. And the most expensive unit sold by a developer was an apartment at Nassim Park Residences, which was transacted at $3,650 psf.
In fact, the number of units priced above $2,000 psf has been increasing steadily over the four quarters in 2009, according to an analysis by Savills Singapore. The firm's data shows that four homes priced at above $2,000 psf were sold in Q1, 53 in Q2, 165 in Q3 and 283 in Q4.
Looking ahead, analysts said that the private residential market is expected to stay healthy in 2010 with another wave of buying possibly coming after the Chinese New Year celebrations.
'Going forward to 2010, we expect the demand for new homes to be moderated to a more sustainable level of 8,000-10,000 units and home prices to strengthen by 8-10 per cent through the year,' said CBRE's Mr Li. 'Both sales and price momentum will be led by the high-end segment in the first half of 2010.'
Colliers said that in line with the expected pick-up in activity, home prices in the core central region (which includes the prime Districts 9 and 10, the financial district and Sentosa Cove) are expected to witness the strongest increase of 15-20 per cent in 2010, followed by the mid-tier RCR or rest of central region (8-12 per cent), and then the OCR (5-8 per cent).
But analysts are still holding out hope that the mass market could account for a bigger slice of the pie this year, possibly from H2 2010 onwards.
The buoyant HDB resale market may generate demand from HDB upgraders for mass-market projects in 2010. And mass-market volumes should recover as developers go ahead with planned launches in 2010, said PropNex chief executive Mohamed Ismail.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Stay above the fray while investing
Business Times - 16 Jan 2010
WEALTH INSIGHTS
Stay above the fray while investing
Take all the 2010 market & economic forecasts you read with a heap of salt - most of them will be wrong in some way
By Chris Firth
CEO of DollarDex.com
DEAR readers, I am offering six tips on investing in 2010 to help you navigate the world of finance as a smarter investor.
1. Some investments will look too good to miss
This is the oldest trap in the book. We think you'll find at least one 'too good to miss' investment in 2010. Perhaps you will be enticed with, say, 30 per cent returns, or the argument that 'everyone is doing it'.
Of course, there is usually a catch. The returns may be over-optimistic, or have unexplained risks that may not surface till years later. High returns are not impossible and can be obtained through leveraging - but the downside risks are also leveraged.
Property is a classic example of the effect of gearing. For example, you could buy a condo for $1 million and borrow $0.8 million. If the property gains 10 per cent, then your gain on your $200,000 investment could work out to close to 50 per cent after borrowing costs. But you must not overlook that your risk on your investment is not straightforward property market volatility, it is at a greatly amplified level due to leveraging.
Being wary is a good tactic. Salient points of an investment could be exaggerated, selectively presented or misunderstood by sellers. Mouth-watering past returns could be the result of selection bias - meaning you only get shown the good results, and the bad results are conveniently dropped. Any investment that sounds too good to be true, probably is.
2. Average house prices will gain
However, on the flip side (there always is), we are quietly confident that the average house price will improve in 2010. Why? The stellar performance of the stock market in 2009, rising consumer confidence, an improving labour market and the increasing positive impact of the integrated resorts on the Singapore economy and tourism sector.
While unanticipated events could put a damper on the gains, such as large rises in mortgage rates, or global economic setbacks, we expect property to put in a strong performance in 2010.
3. Most analysts' predictions will be wrong
It's an easy prediction that no one can forecast the future accurately and consistently, nor can anyone create a reliable model of the world economy. Arguably, the past is not a good guide to the future. Famous fund manager Peter Lynch once sarcastically commented: 'Charts are great for predicting the past.' In a similar vein, Warren Buffett reportedly said: 'If past history was all there was to the game, the richest people would be librarians.'
Even if we accept that prices of stocks (or oil, or gold) eventually tend towards fair values, large and persistent market bubbles and slumps occur regularly. Over the short run (for example, the 12 months of 2010), there is a huge random element affecting the outcome of complex systems such as an economy. Whatever the mechanisms, there is no foolproof way to explain (let alone predict) market movements.
So take all the 2010 market and economic forecasts you read with a heap of salt - most of them will be wrong in some way, and the ones that are spot on will probably be due to luck.
4. Bank deposits pale against money market funds
A typical 12-month fixed deposit (FD) promises you around 0.45 per cent at the moment. Although FD rates may gradually move up as global monetary tightening pressures are felt, they still look paltry. When money market funds are averaging around 1.4 per cent (LionGlobal SGD Money Market) and one per cent (Phillip Money Market), it's a fairly reliable forecast to say that such funds will be better places for your cash in 2010.
5. CPF Special Account rate to stay attractive
The CPF Board announced recently that members will continue to receive at least 4 per cent interest on a portion of their savings until the end of 2010. In terms of risk and reward, it's hard to beat anything (in SGD) that offers 4 per cent with no volatility. So we predict that this will be the best risk-adjusted return in 2010.
6. Watch out for overconfidence
If 2010 turns out to be a great year for stock markets, then it's safe to say that there will be a wave of overconfidence building up. Shares or commodities always look great during a bull run, but it's easy to forget that the downside risks are still high - and arguably get higher as markets reach new peaks.
Trends are very hard to predict ahead of time and most investors don't spot a profitable trend until it has already happened and is on the verge of collapse.
WEALTH INSIGHTS
Stay above the fray while investing
Take all the 2010 market & economic forecasts you read with a heap of salt - most of them will be wrong in some way
By Chris Firth
CEO of DollarDex.com
DEAR readers, I am offering six tips on investing in 2010 to help you navigate the world of finance as a smarter investor.
1. Some investments will look too good to miss
This is the oldest trap in the book. We think you'll find at least one 'too good to miss' investment in 2010. Perhaps you will be enticed with, say, 30 per cent returns, or the argument that 'everyone is doing it'.
Of course, there is usually a catch. The returns may be over-optimistic, or have unexplained risks that may not surface till years later. High returns are not impossible and can be obtained through leveraging - but the downside risks are also leveraged.
Property is a classic example of the effect of gearing. For example, you could buy a condo for $1 million and borrow $0.8 million. If the property gains 10 per cent, then your gain on your $200,000 investment could work out to close to 50 per cent after borrowing costs. But you must not overlook that your risk on your investment is not straightforward property market volatility, it is at a greatly amplified level due to leveraging.
Being wary is a good tactic. Salient points of an investment could be exaggerated, selectively presented or misunderstood by sellers. Mouth-watering past returns could be the result of selection bias - meaning you only get shown the good results, and the bad results are conveniently dropped. Any investment that sounds too good to be true, probably is.
2. Average house prices will gain
However, on the flip side (there always is), we are quietly confident that the average house price will improve in 2010. Why? The stellar performance of the stock market in 2009, rising consumer confidence, an improving labour market and the increasing positive impact of the integrated resorts on the Singapore economy and tourism sector.
While unanticipated events could put a damper on the gains, such as large rises in mortgage rates, or global economic setbacks, we expect property to put in a strong performance in 2010.
3. Most analysts' predictions will be wrong
It's an easy prediction that no one can forecast the future accurately and consistently, nor can anyone create a reliable model of the world economy. Arguably, the past is not a good guide to the future. Famous fund manager Peter Lynch once sarcastically commented: 'Charts are great for predicting the past.' In a similar vein, Warren Buffett reportedly said: 'If past history was all there was to the game, the richest people would be librarians.'
Even if we accept that prices of stocks (or oil, or gold) eventually tend towards fair values, large and persistent market bubbles and slumps occur regularly. Over the short run (for example, the 12 months of 2010), there is a huge random element affecting the outcome of complex systems such as an economy. Whatever the mechanisms, there is no foolproof way to explain (let alone predict) market movements.
So take all the 2010 market and economic forecasts you read with a heap of salt - most of them will be wrong in some way, and the ones that are spot on will probably be due to luck.
4. Bank deposits pale against money market funds
A typical 12-month fixed deposit (FD) promises you around 0.45 per cent at the moment. Although FD rates may gradually move up as global monetary tightening pressures are felt, they still look paltry. When money market funds are averaging around 1.4 per cent (LionGlobal SGD Money Market) and one per cent (Phillip Money Market), it's a fairly reliable forecast to say that such funds will be better places for your cash in 2010.
5. CPF Special Account rate to stay attractive
The CPF Board announced recently that members will continue to receive at least 4 per cent interest on a portion of their savings until the end of 2010. In terms of risk and reward, it's hard to beat anything (in SGD) that offers 4 per cent with no volatility. So we predict that this will be the best risk-adjusted return in 2010.
6. Watch out for overconfidence
If 2010 turns out to be a great year for stock markets, then it's safe to say that there will be a wave of overconfidence building up. Shares or commodities always look great during a bull run, but it's easy to forget that the downside risks are still high - and arguably get higher as markets reach new peaks.
Trends are very hard to predict ahead of time and most investors don't spot a profitable trend until it has already happened and is on the verge of collapse.
CNA : Singapore's private property market shows 5th straight month of decline
Singapore's private property market shows 5th straight month of decline
By Mok Fei Fei, 938 LIVE | Posted: 15 January 2010 1428 hrs
SINGAPORE: Singapore's private property market is continuing to show signs of declining interest.
Data released Friday from the Urban Redevelopment Authority (URA) showed that just 481 units were sold in December, the fifth straight month of decrease.
The figure is a 20 per cent drop, compared to the previous month's sale of 600 units.
It is also the second lowest number of monthly sales in 2009, after January's low, which saw only 107 uncompleted homes sold.
However, last month's figure was still better than the 131 units sold over the same period a year ago.
Despite a seemingly fast-cooling property market, property developers still pushed out 734 launches in December, edging just sligtly down from the 923 units unveiled in November.
The fall in sales come in the wake of government measures implemented in September to prevent a property asset bubble in Singapore.
Such measures include the removal of the Interest Absorption Scheme and Interest-Only Housing Loans.
As was the trend in previous months, higher-end projects were more popular.
The Shore Residences at Amber Road, which has a median price of S$1,144 per square foot, saw the most number of units sold at 79.
Coming in close behind is Urban Suites at Hullet Road, which sold all 59 units launched for sale last month at a median price of S$2,521 per square foot.
The most expensive unit sold last month was at Nassim Park Residences, a development at Nassim Road, which went for S$3,477 per square foot.
By Mok Fei Fei, 938 LIVE | Posted: 15 January 2010 1428 hrs
SINGAPORE: Singapore's private property market is continuing to show signs of declining interest.
Data released Friday from the Urban Redevelopment Authority (URA) showed that just 481 units were sold in December, the fifth straight month of decrease.
The figure is a 20 per cent drop, compared to the previous month's sale of 600 units.
It is also the second lowest number of monthly sales in 2009, after January's low, which saw only 107 uncompleted homes sold.
However, last month's figure was still better than the 131 units sold over the same period a year ago.
Despite a seemingly fast-cooling property market, property developers still pushed out 734 launches in December, edging just sligtly down from the 923 units unveiled in November.
The fall in sales come in the wake of government measures implemented in September to prevent a property asset bubble in Singapore.
Such measures include the removal of the Interest Absorption Scheme and Interest-Only Housing Loans.
As was the trend in previous months, higher-end projects were more popular.
The Shore Residences at Amber Road, which has a median price of S$1,144 per square foot, saw the most number of units sold at 79.
Coming in close behind is Urban Suites at Hullet Road, which sold all 59 units launched for sale last month at a median price of S$2,521 per square foot.
The most expensive unit sold last month was at Nassim Park Residences, a development at Nassim Road, which went for S$3,477 per square foot.
Today Online : Things are looking up
Things are looking up
05:55 AM Jan 15, 2010
by Millet Enriquez emelita@mediacorp.com.sg
SINGAPORE - Singapore's investment property market seems to be shrugging off the global financial crisis and is staging a robust comeback, according to industry experts.
Improving market sentiment has boosted property buying in Singapore, resulting in $10.2 billion in total real estate investment sales for last year, said property consultant CB Richard Ellis (CBRE).
Although this is 43.1 per cent below the $17.94 billion in 2008, the figure is much better than initially expected, CBRE said.
Total residential sales grew from $6.37 billion to $6.93 billion, registering an 8.7 per cent increase from 2008, said CBRE.
"In Singapore, the residential sector is expected to dominate as developers seek to replenish their land bank," said property consultant DTZ Research in a separate report.
It said 57 per cent of fourth quarter 2009 transactional value in Singapore came from the residential sector. Overall, Singapore accounted for 73 per cent of South-east Asia's total transactional value of US$2.4 billion ($3.25 billion) for the quarter.
Between Hong Kong and Singapore, the city state appears to be more attractive for investors both in the residential and office market space.
In a news briefing, Savills Research & Consultancy said the prices of Singapore high-end homes are still more attractive compared to Hong Kong and other markets.
Prices of luxury residences this year rose 45.2 per cent on-year in Hong Kong, while it increased only 3.9 per cent in Singapore.
On the office market front, Savills believes Singapore is set to benefit from tenant upgrades and from the rising costs of office rents in Hong Kong over the next year or so.
Newer buildings, which will come on stream in Singapore between this year and 2012, will command premium rents and capital values, the firm said.
The integrated resorts opening and growing Asian affluence will also bode well for Singapore.
The investment market for South-east Asia is expected to be more active this year on the back of improving market sentiment, said DTZ.
Going forward, the appetite for Singapore's office market may also come back as many believe that it has already bottomed out, said CBRE.
Savills sees an upside of 10 to 15 per cent for the prices of high-end residences in Singapore while rents would moderate up by around 10 per cent due to tightening supply.
05:55 AM Jan 15, 2010
by Millet Enriquez emelita@mediacorp.com.sg
SINGAPORE - Singapore's investment property market seems to be shrugging off the global financial crisis and is staging a robust comeback, according to industry experts.
Improving market sentiment has boosted property buying in Singapore, resulting in $10.2 billion in total real estate investment sales for last year, said property consultant CB Richard Ellis (CBRE).
Although this is 43.1 per cent below the $17.94 billion in 2008, the figure is much better than initially expected, CBRE said.
Total residential sales grew from $6.37 billion to $6.93 billion, registering an 8.7 per cent increase from 2008, said CBRE.
"In Singapore, the residential sector is expected to dominate as developers seek to replenish their land bank," said property consultant DTZ Research in a separate report.
It said 57 per cent of fourth quarter 2009 transactional value in Singapore came from the residential sector. Overall, Singapore accounted for 73 per cent of South-east Asia's total transactional value of US$2.4 billion ($3.25 billion) for the quarter.
Between Hong Kong and Singapore, the city state appears to be more attractive for investors both in the residential and office market space.
In a news briefing, Savills Research & Consultancy said the prices of Singapore high-end homes are still more attractive compared to Hong Kong and other markets.
Prices of luxury residences this year rose 45.2 per cent on-year in Hong Kong, while it increased only 3.9 per cent in Singapore.
On the office market front, Savills believes Singapore is set to benefit from tenant upgrades and from the rising costs of office rents in Hong Kong over the next year or so.
Newer buildings, which will come on stream in Singapore between this year and 2012, will command premium rents and capital values, the firm said.
The integrated resorts opening and growing Asian affluence will also bode well for Singapore.
The investment market for South-east Asia is expected to be more active this year on the back of improving market sentiment, said DTZ.
Going forward, the appetite for Singapore's office market may also come back as many believe that it has already bottomed out, said CBRE.
Savills sees an upside of 10 to 15 per cent for the prices of high-end residences in Singapore while rents would moderate up by around 10 per cent due to tightening supply.
ST : 2 new exec condo sites launched
Jan 15, 2010
2 new exec condo sites launched
Sengkang, Yishun plots the first to be launched since La Casa in 2005
By Jessica Cheam
EXECUTIVE condominiums (ECs) are making a comeback after a hiatus of almost five years, as the Government ramps up the supply of flats for middle-income buyers.
The HDB is launching two EC housing sites today, in Sengkang and Yishun, that will yield about 900 new homes in the next few years. ECs boast many of the facilities of private estates but are subject to such HDB rules as income ceiling and minimum occupation period.
Analysts told The Straits Times they expect the sites to attract a lot of interest from developers, given the demand for mass market flats that started heating up in the second quarter last year. Suburban home prices rose by an estimated 11.2 per cent last year, and in the process left a group of 'sandwich-class' buyers who have been priced out of the market and are looking for alternatives, say analysts.
The HDB move marks a turnaround for a type of housing that lost popularity in recent years due to the affordable prices of mass market condos.
PropNex chief executive Mohamed Ismail said even though it will be a while before the ECs are launched for sale, buyers are expected to bite when the time comes. 'In the past, there was no demand for ECs because the private mass market homes were largely affordable, but with tight supply and high demand, HDB home buyers will welcome this fresh supply,' he said.
ECs were introduced in 1996 to provide for middle-income buyers who wanted private property living but were unable to afford the prices. The last EC launched was La Casa in Woodlands in 2005, which was completed in early 2008. A Punggol EC site was launched in September 2008 but had no takers.
ECs fully convert to private housing after 10 years. First-time buyers with monthly incomes of up to $10,000 can apply for a $30,000 housing grant.
Prices of ECs have been on the rise in tandem with the mass market boom, said analysts yesterday.
A CB Richard Ellis report last November found the median resale prices of ECs had increased 63 per cent in recent years - from $319 per sq ft (psf) at the bottom of the market in the third quarter of 2006 to $519 psf in October last year.
They have inched even higher in the past three months, with homes in good locations hitting around $600 to 700 psf.
A 1,464 sq ft home at Bishan Loft, for example, sold for $1.12 million or $765 psf in December, according to data from the Urban Redevelopment Authority
ERA Asia-Pacific associate director Eugene Lim pointed out that entry-level mass market condos are now priced north of $800,000 for a three-bedder.
'ECs are expected to be priced below this and are attractive due to the HDB's grant, so it will offer home buyers an alternative,' he said.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said he expects about five to 10 bids for each of the two sites.
He also estimates that the bidding prices will range from $120 million to $141 million for the Sengkang site and $72 million to $96 million for the Yishun plot.
Mr Mak cautioned that despite the positive sentiment in the mass market, it will be difficult to predict responses from buyers when the homes are finally launched - likely up to a year's time.
'We also don't know the interest rates situation then, so it's too early to accurately predict demand,' he said.
Home buyer Du Zuo Ling, 27, said the ECs would top her list of homes to consider when they are launched as HDB resale flats are getting more expensive.
'With ECs, the income ceiling is higher, and we can get housing grants. It will be good to have more of such choices,' said Ms Du.
2 new exec condo sites launched
Sengkang, Yishun plots the first to be launched since La Casa in 2005
By Jessica Cheam
EXECUTIVE condominiums (ECs) are making a comeback after a hiatus of almost five years, as the Government ramps up the supply of flats for middle-income buyers.
The HDB is launching two EC housing sites today, in Sengkang and Yishun, that will yield about 900 new homes in the next few years. ECs boast many of the facilities of private estates but are subject to such HDB rules as income ceiling and minimum occupation period.
Analysts told The Straits Times they expect the sites to attract a lot of interest from developers, given the demand for mass market flats that started heating up in the second quarter last year. Suburban home prices rose by an estimated 11.2 per cent last year, and in the process left a group of 'sandwich-class' buyers who have been priced out of the market and are looking for alternatives, say analysts.
The HDB move marks a turnaround for a type of housing that lost popularity in recent years due to the affordable prices of mass market condos.
PropNex chief executive Mohamed Ismail said even though it will be a while before the ECs are launched for sale, buyers are expected to bite when the time comes. 'In the past, there was no demand for ECs because the private mass market homes were largely affordable, but with tight supply and high demand, HDB home buyers will welcome this fresh supply,' he said.
ECs were introduced in 1996 to provide for middle-income buyers who wanted private property living but were unable to afford the prices. The last EC launched was La Casa in Woodlands in 2005, which was completed in early 2008. A Punggol EC site was launched in September 2008 but had no takers.
ECs fully convert to private housing after 10 years. First-time buyers with monthly incomes of up to $10,000 can apply for a $30,000 housing grant.
Prices of ECs have been on the rise in tandem with the mass market boom, said analysts yesterday.
A CB Richard Ellis report last November found the median resale prices of ECs had increased 63 per cent in recent years - from $319 per sq ft (psf) at the bottom of the market in the third quarter of 2006 to $519 psf in October last year.
They have inched even higher in the past three months, with homes in good locations hitting around $600 to 700 psf.
A 1,464 sq ft home at Bishan Loft, for example, sold for $1.12 million or $765 psf in December, according to data from the Urban Redevelopment Authority
ERA Asia-Pacific associate director Eugene Lim pointed out that entry-level mass market condos are now priced north of $800,000 for a three-bedder.
'ECs are expected to be priced below this and are attractive due to the HDB's grant, so it will offer home buyers an alternative,' he said.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said he expects about five to 10 bids for each of the two sites.
He also estimates that the bidding prices will range from $120 million to $141 million for the Sengkang site and $72 million to $96 million for the Yishun plot.
Mr Mak cautioned that despite the positive sentiment in the mass market, it will be difficult to predict responses from buyers when the homes are finally launched - likely up to a year's time.
'We also don't know the interest rates situation then, so it's too early to accurately predict demand,' he said.
Home buyer Du Zuo Ling, 27, said the ECs would top her list of homes to consider when they are launched as HDB resale flats are getting more expensive.
'With ECs, the income ceiling is higher, and we can get housing grants. It will be good to have more of such choices,' said Ms Du.
ST : Loan sharks' vandalism costs town councils
Jan 15, 2010
CHANGES TO MONEYLENDERS' ACT
Loan sharks' vandalism costs town councils
By Mavis Toh
EACH year, town councils have to dig deep into their pockets to clean up after loan sharks.
Eight town councils interviewed said that they pay sums of between $15,000 and $70,000 annually just to rectify the damage caused by the loan sharks.
In Parliament on Tuesday, Madam Cynthia Phua (Aljunied GRC) said the number of loan shark harassment cases reported in estates under Aljunied Town Council jumped from 212 in 2008 to 378 last year. The town council had to spend $69,370 last year, up from $49,843 in 2008, to make good the damage.
Those caught for loan shark activities, she said, should be made to repaint defaced walls as part of community service.
Speaking to The Straits Times, she said that besides re-painting, the money was also spent on installing closed-circuit television cameras (CCTVs) in blocks most prone to the loan sharks' vandalism.
One particular block had 11 CCTVs installed late last year after loan sharks repeatedly splashed paint along the common corridor and on doors throughout the block. 'The fellow had borrowed from many different loan sharks and it was very frustrating for the residents,' she said, adding that the CCTVs did help stem the harassment.
Other MPs are also exasperated about having to spend more to clean vandalised walls and repair defaced surfaces.
Marine Parade Town Council's cleaning and repair bill went up from $20,000 in 2008 to $30,000 last year.
'These are monies that could be better deployed for improvements to estate upkeeping,' said Mr Seah Kian Peng (Marine Parade GRC).
Jurong Town Council paid contractors $32,100 over the last two years to remove traces of loan shark activity.
Madam Halimah Yacob (Jurong GRC) said she gets at least one resident complaining about loan shark vandalism each time she does her house-to-house visits.
'The loan sharks are a nuisance and threat not only to the property but also to residents' lives,' she said.
At Pasir-Ris Punggol GRC, MP Charles Chong said that besides splashing paint, loan sharks also break flowerpots, set fire to doors and scribble the unit's number all over the block.
'It can be very frustrating because a few days after you paint and clean up, or even within the same day, they strike again,' said Mr Chong.
Some residents also take the task of re-painting into their own hands.
One 43-year-old cabby, who declined to be named, said: 'I've stopped borrowing from them for years but they still harass me. Each time I hurry to paint over the damage before my neighbours or family see it.'
While some residents buy and fix their own CCTVs as a deterrent, others ask their town council or the police to install them. Jurong Town Council, for example, spent $50,000 two years ago to install CCTVs in 26 blocks and multi-storey carparks. It also pays an annual maintenance cost of $15,000.
'But loan sharks still strike despite the CCTVs, so there's a need to step up enforcement and strike the head, not just the runners,' said Madam Halimah.
The police also use portable CCTVs in those HDB units subject to loan shark harassment.
But the damage caused by the loan sharks goes beyond dollars and cents.
Said Mr Seah: 'It is the trauma and inconveniences to the affected families of such units and the adjoining units as well. This distress cannot be quantified.'
CHANGES TO MONEYLENDERS' ACT
Loan sharks' vandalism costs town councils
By Mavis Toh
EACH year, town councils have to dig deep into their pockets to clean up after loan sharks.
Eight town councils interviewed said that they pay sums of between $15,000 and $70,000 annually just to rectify the damage caused by the loan sharks.
In Parliament on Tuesday, Madam Cynthia Phua (Aljunied GRC) said the number of loan shark harassment cases reported in estates under Aljunied Town Council jumped from 212 in 2008 to 378 last year. The town council had to spend $69,370 last year, up from $49,843 in 2008, to make good the damage.
Those caught for loan shark activities, she said, should be made to repaint defaced walls as part of community service.
Speaking to The Straits Times, she said that besides re-painting, the money was also spent on installing closed-circuit television cameras (CCTVs) in blocks most prone to the loan sharks' vandalism.
One particular block had 11 CCTVs installed late last year after loan sharks repeatedly splashed paint along the common corridor and on doors throughout the block. 'The fellow had borrowed from many different loan sharks and it was very frustrating for the residents,' she said, adding that the CCTVs did help stem the harassment.
Other MPs are also exasperated about having to spend more to clean vandalised walls and repair defaced surfaces.
Marine Parade Town Council's cleaning and repair bill went up from $20,000 in 2008 to $30,000 last year.
'These are monies that could be better deployed for improvements to estate upkeeping,' said Mr Seah Kian Peng (Marine Parade GRC).
Jurong Town Council paid contractors $32,100 over the last two years to remove traces of loan shark activity.
Madam Halimah Yacob (Jurong GRC) said she gets at least one resident complaining about loan shark vandalism each time she does her house-to-house visits.
'The loan sharks are a nuisance and threat not only to the property but also to residents' lives,' she said.
At Pasir-Ris Punggol GRC, MP Charles Chong said that besides splashing paint, loan sharks also break flowerpots, set fire to doors and scribble the unit's number all over the block.
'It can be very frustrating because a few days after you paint and clean up, or even within the same day, they strike again,' said Mr Chong.
Some residents also take the task of re-painting into their own hands.
One 43-year-old cabby, who declined to be named, said: 'I've stopped borrowing from them for years but they still harass me. Each time I hurry to paint over the damage before my neighbours or family see it.'
While some residents buy and fix their own CCTVs as a deterrent, others ask their town council or the police to install them. Jurong Town Council, for example, spent $50,000 two years ago to install CCTVs in 26 blocks and multi-storey carparks. It also pays an annual maintenance cost of $15,000.
'But loan sharks still strike despite the CCTVs, so there's a need to step up enforcement and strike the head, not just the runners,' said Madam Halimah.
The police also use portable CCTVs in those HDB units subject to loan shark harassment.
But the damage caused by the loan sharks goes beyond dollars and cents.
Said Mr Seah: 'It is the trauma and inconveniences to the affected families of such units and the adjoining units as well. This distress cannot be quantified.'
ST : Long-delayed Bartley-Tampines viaduct opens on Sunday
Jan 15, 2010
Long-delayed Bartley-Tampines viaduct opens on Sunday
By Christopher Tan
AFTER 10 years and more than $100 million, a viaduct linking Bartley and Tampines will open to traffic this Sunday.
The 4.5km link is expected to divert some 10 per cent of traffic from the congested Pan-Island Expressway (PIE) as well as Bedok Reservoir Road, according to Dr Chin Kian Keong, the Land Transport Authority's (LTA) group director (Road Operations and Community Partnership).
He said the new road is expected to cut travel time between Paya Lebar and Tampines by as much as 15 minutes.
The elevated road was actually a two-part project. The first phase, between Kaki Bukit and Tampines Avenue 10, was completed in 2003 by a construction venture between Sato Kogyo and Quek & Quek for $40.6 million.
The second phase, a 2km stretch from Kaki Bukit to Bartley, was originally slated to open in 2005. But it stalled after builder L&M Prestressing, which secured the project for $72 million, ran into financial problems.
In 2006, the LTA called for fresh tenders to complete the job. Local contractor Hock Lian Seng clinched the deal with a bid of $51.6 million.
L&M was paid $15 million for what it completed.
Motorists are looking forward to the new uninterrupted link, although some residents of Bartley are worried it may increase traffic exponentially in the area.
The road currently carries 1,300 vehicles per hour during peak periods. If 10 per cent of the PIE's peak-hour traffic - 8,000 vehicles per hour - diverts here, Bartley Road's vehicular volume could grow by more than 50 per cent.
Businessman Raymond Tang, 44, who lives in Bartley Road, said there are already congestion problems today. He said the road is jammed during the morning peak period as 'a lot of cars are going to Tampines by Bartley'.
He is more concerned that Bartley Road has only one U-turn, and many motorists currently make use of Serangoon Avenue 1 to make a turnaround. With the expected rise in traffic volume, more will do so.
'They have to look out for oncoming traffic, traffic coming out from the side lane, and pedestrians. So it can be a bit dangerous,' Mr Tang said.
The Bartley-Tampines viaduct is Singapore's sixth viaduct.
Also opening on Sunday is a surface road - Bartley Road East - which runs below the viaduct. This will link Airport Road to Hougang Avenue 3.
It will give motorists heading to and from Hougang an alternative to the congested Eunos, Paya Lebar and Upper Serangoon routes.
The LTA has also made provisions for a future ramp that allows motorists in Hougang Avenue 3 to join the Bartley-Tampines viaduct. This is believed to be the first time a viaduct in Singapore has such an engineering design to cater to additional ramps.
Long-delayed Bartley-Tampines viaduct opens on Sunday
By Christopher Tan
AFTER 10 years and more than $100 million, a viaduct linking Bartley and Tampines will open to traffic this Sunday.
The 4.5km link is expected to divert some 10 per cent of traffic from the congested Pan-Island Expressway (PIE) as well as Bedok Reservoir Road, according to Dr Chin Kian Keong, the Land Transport Authority's (LTA) group director (Road Operations and Community Partnership).
He said the new road is expected to cut travel time between Paya Lebar and Tampines by as much as 15 minutes.
The elevated road was actually a two-part project. The first phase, between Kaki Bukit and Tampines Avenue 10, was completed in 2003 by a construction venture between Sato Kogyo and Quek & Quek for $40.6 million.
The second phase, a 2km stretch from Kaki Bukit to Bartley, was originally slated to open in 2005. But it stalled after builder L&M Prestressing, which secured the project for $72 million, ran into financial problems.
In 2006, the LTA called for fresh tenders to complete the job. Local contractor Hock Lian Seng clinched the deal with a bid of $51.6 million.
L&M was paid $15 million for what it completed.
Motorists are looking forward to the new uninterrupted link, although some residents of Bartley are worried it may increase traffic exponentially in the area.
The road currently carries 1,300 vehicles per hour during peak periods. If 10 per cent of the PIE's peak-hour traffic - 8,000 vehicles per hour - diverts here, Bartley Road's vehicular volume could grow by more than 50 per cent.
Businessman Raymond Tang, 44, who lives in Bartley Road, said there are already congestion problems today. He said the road is jammed during the morning peak period as 'a lot of cars are going to Tampines by Bartley'.
He is more concerned that Bartley Road has only one U-turn, and many motorists currently make use of Serangoon Avenue 1 to make a turnaround. With the expected rise in traffic volume, more will do so.
'They have to look out for oncoming traffic, traffic coming out from the side lane, and pedestrians. So it can be a bit dangerous,' Mr Tang said.
The Bartley-Tampines viaduct is Singapore's sixth viaduct.
Also opening on Sunday is a surface road - Bartley Road East - which runs below the viaduct. This will link Airport Road to Hougang Avenue 3.
It will give motorists heading to and from Hougang an alternative to the congested Eunos, Paya Lebar and Upper Serangoon routes.
The LTA has also made provisions for a future ramp that allows motorists in Hougang Avenue 3 to join the Bartley-Tampines viaduct. This is believed to be the first time a viaduct in Singapore has such an engineering design to cater to additional ramps.
ST : S'pore well-placed to attract surplus office demand from HK
Jan 15, 2010
S'pore well-placed to attract surplus office demand from HK
By Harsha Jethnani
HONG KONG has a shortage of prime office space, and Singapore has a glut, so a bit of lateral thinking could easily see local landlords benefiting.
Mr Simon Smith, deputy managing director and head of research and consultancy at Savills Hong Kong, believes Singapore is well placed to take advantage of the imbalance.
Savills research found that Grade A office supply in the Central Business District here is expected to increase by 47 per cent over the next three years compared with only 6 per cent in Hong Kong.
The property consultancy also forecasts that rents here could fall by 20 per cent to 25 per cent and further consolidate this year - an improvement over last year's 36.2 per cent decline but still painful for landlords.
Rents are expected to hover around US$4 (S$5.60) to US$6 per square foot, it added.
The research suggests an opposite scenario in Hong Kong where rents are expected to increase by about 5 to 10 per cent to about US$12 psf.
As Hong Kong lacks cost competitiveness, Singapore is well placed to attract surplus office demand, said Mr Smith.
Prices for prime office space in Singapore are expected to increase by up to 5 per cent this year.
In a two-tier Grace A office market, newer buildings are likely to include a premium compared with older ones.
In Hong Kong, prices are expected to increase by a modest 5 per cent to 10 per cent after a 50 per cent increase last year.
Much of Hong Kong's growth is coming from mainland Chinese investors but this is expected to slow as the Chinese government gradually cools off its stimulus measures.
But not all is different for Hong Kong and Singapore.
Prices for luxury residential property are expected to increase by 10 to 15 per cent in both cities.
Prices in Singapore have yet to reach their peaks, said Savills.
Attractive prices and interest from foreigners, especially strong due to the upcoming integrated resorts, will keep prices heading north.
Prices could perhaps reach a high $3,000 psf from around $2,100 to $2,600 psf now but even if so, it would take around 12 to 18 months, said Savills.
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Savills research found that Grade A office supply in the CBD here is expected to increase by 47 per cent over the next three years compared with only 6 per cent in Hong Kong.
S'pore well-placed to attract surplus office demand from HK
By Harsha Jethnani
HONG KONG has a shortage of prime office space, and Singapore has a glut, so a bit of lateral thinking could easily see local landlords benefiting.
Mr Simon Smith, deputy managing director and head of research and consultancy at Savills Hong Kong, believes Singapore is well placed to take advantage of the imbalance.
Savills research found that Grade A office supply in the Central Business District here is expected to increase by 47 per cent over the next three years compared with only 6 per cent in Hong Kong.
The property consultancy also forecasts that rents here could fall by 20 per cent to 25 per cent and further consolidate this year - an improvement over last year's 36.2 per cent decline but still painful for landlords.
Rents are expected to hover around US$4 (S$5.60) to US$6 per square foot, it added.
The research suggests an opposite scenario in Hong Kong where rents are expected to increase by about 5 to 10 per cent to about US$12 psf.
As Hong Kong lacks cost competitiveness, Singapore is well placed to attract surplus office demand, said Mr Smith.
Prices for prime office space in Singapore are expected to increase by up to 5 per cent this year.
In a two-tier Grace A office market, newer buildings are likely to include a premium compared with older ones.
In Hong Kong, prices are expected to increase by a modest 5 per cent to 10 per cent after a 50 per cent increase last year.
Much of Hong Kong's growth is coming from mainland Chinese investors but this is expected to slow as the Chinese government gradually cools off its stimulus measures.
But not all is different for Hong Kong and Singapore.
Prices for luxury residential property are expected to increase by 10 to 15 per cent in both cities.
Prices in Singapore have yet to reach their peaks, said Savills.
Attractive prices and interest from foreigners, especially strong due to the upcoming integrated resorts, will keep prices heading north.
Prices could perhaps reach a high $3,000 psf from around $2,100 to $2,600 psf now but even if so, it would take around 12 to 18 months, said Savills.
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Savills research found that Grade A office supply in the CBD here is expected to increase by 47 per cent over the next three years compared with only 6 per cent in Hong Kong.
ST : Rental spike at nearby malls
Jan 15, 2010
Rental spike at nearby malls
TWO nearby malls have raised rents in anticipation that their tenants will be cashing in on the bigger crowd once Resorts World Sentosa opens.
Businesses at VivoCity and HarbourFront who have renewed leases recently told The Straits Times that they have seen a 5 per cent to 10 per cent spike in rental rates. But they are choosing to bite the bullet - hoping it will pay off when the integrated resort (IR), which will start opening in stages from next week, pulls more spending visitors through the malls.
Their optimism stems from Sentosa's plans to encourage visitors to use public transport, mainly the Sentosa Express - a train that shuttles visitors to and from VivoCity and the island.
The service has contributed to the 40 million visitors that throng VivoCity annually, many of whom also spill over into the neighbouring HarbourFront.
Mapletree, which owns both properties, confirmed the rent increase, but would neither say how many tenants were affected nor the percentage of the increase.
When asked if the raise in rent had to do with the IR's opening, Mapletree cited market conditions, but recognised that the malls stand to benefit greatly from the IR.
To help attract the crowds, Mapletree has promised tenants to roll out promotional activities targetted at the IR's tourists, on top of their usual promotions.
But some tenants question the timing, saying the rental hike may be premature, given that only four hotels will open next week. The rest of the IR will open in phases over the next year.
'It will take some time before business will really pick up, so it may not be justifiable to increase rent now,' said Mr Michael Leong, manager of The Orange Lantern in HarbourFront.
Nevertheless, the Vietnamese restaurant has accepted a 5 per cent rental increase, seeing it as a worthwhile tradeoff.
'When VivoCity opened, business eventually picked up by 20 per cent. We hope to see a similar increase when the IR opens,' said Mr Leong.
Rental spike at nearby malls
TWO nearby malls have raised rents in anticipation that their tenants will be cashing in on the bigger crowd once Resorts World Sentosa opens.
Businesses at VivoCity and HarbourFront who have renewed leases recently told The Straits Times that they have seen a 5 per cent to 10 per cent spike in rental rates. But they are choosing to bite the bullet - hoping it will pay off when the integrated resort (IR), which will start opening in stages from next week, pulls more spending visitors through the malls.
Their optimism stems from Sentosa's plans to encourage visitors to use public transport, mainly the Sentosa Express - a train that shuttles visitors to and from VivoCity and the island.
The service has contributed to the 40 million visitors that throng VivoCity annually, many of whom also spill over into the neighbouring HarbourFront.
Mapletree, which owns both properties, confirmed the rent increase, but would neither say how many tenants were affected nor the percentage of the increase.
When asked if the raise in rent had to do with the IR's opening, Mapletree cited market conditions, but recognised that the malls stand to benefit greatly from the IR.
To help attract the crowds, Mapletree has promised tenants to roll out promotional activities targetted at the IR's tourists, on top of their usual promotions.
But some tenants question the timing, saying the rental hike may be premature, given that only four hotels will open next week. The rest of the IR will open in phases over the next year.
'It will take some time before business will really pick up, so it may not be justifiable to increase rent now,' said Mr Michael Leong, manager of The Orange Lantern in HarbourFront.
Nevertheless, the Vietnamese restaurant has accepted a 5 per cent rental increase, seeing it as a worthwhile tradeoff.
'When VivoCity opened, business eventually picked up by 20 per cent. We hope to see a similar increase when the IR opens,' said Mr Leong.
BT : Grade A office rents to fall 20-25%, says Savills
Business Times - 15 Jan 2010
Grade A office rents to fall 20-25%, says Savills
S'pore to get edge over HK as more firms expand in Asia
By UMA SHANKARI
(SINGAPORE) A 20 to 25 per cent fall in Grade A office rents in Singapore this year will widen the gap between rents here and in Hong Kong and give Singapore a competitive advantage when it comes to firms looking to expand in Asia, property firm Savills said yesterday.
Rents here could fall to as low as $5 per square foot (psf) per month in 2011 as massive new supply comes onstream, the firm's research shows. Grade A office rents stood at $8.80 psf per month at the end of 2009, according to Savills.
By contrast, office rents in Hong Kong's CBD are expected to climb 5 to 10 per cent in 2010 on the back of a supply crunch and anticipated surge in demand from mainland Chinese firms looking to expand.
'The good news is that over the next year or two, Singapore is going to look a lot more competitive in the region, particularly in comparison to Hong Kong,' said Simon Smith, head of research & consultancy at Savills' Asia Pacific unit. His research shows that the Hong Kong Grade A office rental premium over Singapore could climb to as high as 150 per cent.
The Grade A office supply here will rise by 47 per cent between 2010 and 2012, with 7.7 million square feet of space being added.
Savills' worst-case scenario forecast assumes that take-up will average at 950,000 square feet a year over the next three years. The rental market here will then bottom out in 2011 at an average $5 psf per month.
An analyst from another property firm however said that a fall to $5 psf per month is 'possible', but added that he was not sure how likely it is that the fall will be so large.
Separately, data from CB Richard Ellis (CBRE) showed that Grade A office rents in Singapore fell to $8.10 at end 2009 from $15 at the end of 2008. The firm expects Grade A office rents to fall to $7 by the end of 2010 - a year-on-year fall of 13.6 per cent.
In Hong Kong, the Grade A office stock is expected to climb by a much smaller 6 per cent from 2010 to 2012, Savills estimates.
The supply pipeline for Hong Kong Island remains subdued for the foreseeable future, so 'given the supply of space is still constrained, vacancy levels on Hong Kong Island are likely to recover before other markets where the market cycle will be deeper and longer', said Rhodri James, executive director of office services for Hong Kong at CBRE.
Savills' Mr Smith also noted that the completion of new buildings in Singapore will bring about a 'flight to quality' as tenants upgrade to better quality office space. This could lead to a fall in rentals and occupancies at less-prime Grade B office buildings.
And upon the completion of the new buildings, a two-tier Grade A office market could also rise, Savills predicts. Newer buildings are likely to command a premium in rents and capital values compared to older ones, the firm said.
However, capital values should not fall even as office rents fall as vendors are not likely to sell office space for lower prices. Savills said that it expects a 0 to 5 per cent rise in office values in Singapore.
Grade A office rents to fall 20-25%, says Savills
S'pore to get edge over HK as more firms expand in Asia
By UMA SHANKARI
(SINGAPORE) A 20 to 25 per cent fall in Grade A office rents in Singapore this year will widen the gap between rents here and in Hong Kong and give Singapore a competitive advantage when it comes to firms looking to expand in Asia, property firm Savills said yesterday.
Rents here could fall to as low as $5 per square foot (psf) per month in 2011 as massive new supply comes onstream, the firm's research shows. Grade A office rents stood at $8.80 psf per month at the end of 2009, according to Savills.
By contrast, office rents in Hong Kong's CBD are expected to climb 5 to 10 per cent in 2010 on the back of a supply crunch and anticipated surge in demand from mainland Chinese firms looking to expand.
'The good news is that over the next year or two, Singapore is going to look a lot more competitive in the region, particularly in comparison to Hong Kong,' said Simon Smith, head of research & consultancy at Savills' Asia Pacific unit. His research shows that the Hong Kong Grade A office rental premium over Singapore could climb to as high as 150 per cent.
The Grade A office supply here will rise by 47 per cent between 2010 and 2012, with 7.7 million square feet of space being added.
Savills' worst-case scenario forecast assumes that take-up will average at 950,000 square feet a year over the next three years. The rental market here will then bottom out in 2011 at an average $5 psf per month.
An analyst from another property firm however said that a fall to $5 psf per month is 'possible', but added that he was not sure how likely it is that the fall will be so large.
Separately, data from CB Richard Ellis (CBRE) showed that Grade A office rents in Singapore fell to $8.10 at end 2009 from $15 at the end of 2008. The firm expects Grade A office rents to fall to $7 by the end of 2010 - a year-on-year fall of 13.6 per cent.
In Hong Kong, the Grade A office stock is expected to climb by a much smaller 6 per cent from 2010 to 2012, Savills estimates.
The supply pipeline for Hong Kong Island remains subdued for the foreseeable future, so 'given the supply of space is still constrained, vacancy levels on Hong Kong Island are likely to recover before other markets where the market cycle will be deeper and longer', said Rhodri James, executive director of office services for Hong Kong at CBRE.
Savills' Mr Smith also noted that the completion of new buildings in Singapore will bring about a 'flight to quality' as tenants upgrade to better quality office space. This could lead to a fall in rentals and occupancies at less-prime Grade B office buildings.
And upon the completion of the new buildings, a two-tier Grade A office market could also rise, Savills predicts. Newer buildings are likely to command a premium in rents and capital values compared to older ones, the firm said.
However, capital values should not fall even as office rents fall as vendors are not likely to sell office space for lower prices. Savills said that it expects a 0 to 5 per cent rise in office values in Singapore.
BT : Govt debt might push economies into crisis
Business Times - 15 Jan 2010
Govt debt might push economies into crisis
Unsustainable debt is one of the top 3 risks for 2010: WEF
(LONDON) The risk that deteriorating government finances could push economies into full-fledged debt crises tops a list of threats facing the world in 2010, according to a report by the World Economic Forum.
Major world economies have responded to the steep downturn created by the financial crisis with stimulus packages and by underwriting private debt obligations, causing deficits to balloon. This may have helped keep a worse recession at bay, but high debt has become a growing concern for financial markets.
The WEF think tank, in its annual Global Risks report ahead of its meeting in Davos, Switzerland, said unsustainable debt levels ranked among the top three risks for the year ahead, alongside underinvestment in infrastructure and chronic diseases driving up health costs and reducing economic growth.
Already fragile economies, particularly in the developed world, are at risk of 'overextending unsustainable levels of debt', potentially leading to full-blown crises with inevitable social and political consequences, not least higher unemployment, it said in the report released yesterday.
'Governments, in trying to stimulate their economies, in fighting the recession, are (building) unprecedented levels of debt and therefore there is a rising risk of sovereign defaults,' said John Drzik, chief executive of management consultancy Oliver Wyman, which was one of the contributors to the WEF report.
He said higher unemployment levels could follow, with associated social and political risks.
'Debt levels have risen from 78 per cent (in 2007, before the crisis) to 118 per cent of GDP in the G-20,' he said. 'This is something that could really create much more of a crisis than in the past, and we are already in a vulnerable situation.'
Worries over Dubai, Ukraine and Greece have spilled over into global markets in the last month, and all three look set to remain under pressure, with the threat also high for the economies of 'irrational exuberance' - the US and the UK.
The WEF report said that both these major economies were faced with 'tough choices' in the months ahead as they seek to time a'gradual and credible withdrawal of fiscal stimulus so that the recovery is sustained but not so late that fiscal deficits cause fear of sovereign debt deterioration'.
Other major risks highlighted by the report include underinvestment in infrastructure, which could hurt food and energy security. The World Bank puts global infrastructure investment needs at US$35 trillion over the next 20 years.
Chronic disease - from heart disease to strokes - is another threat looming, as the cost of treating patients rises, driven by demographic changes and dietary shifts.
The WEF warned that the problem was key for both developed and developing nations, particularly as governments seek to reduce the burden of healthcare and aid funding shrinks\. \-- Reuters
Govt debt might push economies into crisis
Unsustainable debt is one of the top 3 risks for 2010: WEF
(LONDON) The risk that deteriorating government finances could push economies into full-fledged debt crises tops a list of threats facing the world in 2010, according to a report by the World Economic Forum.
Major world economies have responded to the steep downturn created by the financial crisis with stimulus packages and by underwriting private debt obligations, causing deficits to balloon. This may have helped keep a worse recession at bay, but high debt has become a growing concern for financial markets.
The WEF think tank, in its annual Global Risks report ahead of its meeting in Davos, Switzerland, said unsustainable debt levels ranked among the top three risks for the year ahead, alongside underinvestment in infrastructure and chronic diseases driving up health costs and reducing economic growth.
Already fragile economies, particularly in the developed world, are at risk of 'overextending unsustainable levels of debt', potentially leading to full-blown crises with inevitable social and political consequences, not least higher unemployment, it said in the report released yesterday.
'Governments, in trying to stimulate their economies, in fighting the recession, are (building) unprecedented levels of debt and therefore there is a rising risk of sovereign defaults,' said John Drzik, chief executive of management consultancy Oliver Wyman, which was one of the contributors to the WEF report.
He said higher unemployment levels could follow, with associated social and political risks.
'Debt levels have risen from 78 per cent (in 2007, before the crisis) to 118 per cent of GDP in the G-20,' he said. 'This is something that could really create much more of a crisis than in the past, and we are already in a vulnerable situation.'
Worries over Dubai, Ukraine and Greece have spilled over into global markets in the last month, and all three look set to remain under pressure, with the threat also high for the economies of 'irrational exuberance' - the US and the UK.
The WEF report said that both these major economies were faced with 'tough choices' in the months ahead as they seek to time a'gradual and credible withdrawal of fiscal stimulus so that the recovery is sustained but not so late that fiscal deficits cause fear of sovereign debt deterioration'.
Other major risks highlighted by the report include underinvestment in infrastructure, which could hurt food and energy security. The World Bank puts global infrastructure investment needs at US$35 trillion over the next 20 years.
Chronic disease - from heart disease to strokes - is another threat looming, as the cost of treating patients rises, driven by demographic changes and dietary shifts.
The WEF warned that the problem was key for both developed and developing nations, particularly as governments seek to reduce the burden of healthcare and aid funding shrinks\. \-- Reuters
BT : First-timers to get 95% of latest EC projects
Business Times - 15 Jan 2010
First-timers to get 95% of latest EC projects
Sengkang plot seen going for $190-300 psf ppr; Yishun, $150-210 psf ppr
By KALPANA RASHIWALA
(SINGAPORE) Two executive condominium (EC) sites, one in Sengkang and the other in Yishun, will come with a twist when they are launched today. The winning tenderers will have to set aside 95 per cent of units in the initial month of sale for first-time home buyers. That is, those that have yet to receive a housing subsidy.
Market watchers say that the strategy is aimed at meeting strong demand for HDB flats from this segment of late.
ECs are a hybrid of public and private housing. They are strata-titled apartments with facilities comparable to private condos. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing; but these are completely removed after 10 years.
Knight Frank managing director (residential services) Peter Ow says that setting aside 95 per cent of a new EC project for first-timers will help ease their difficulty in purchasing a home.
'Looking at how recent Built-To-Order HDB flats are oversubscribed and an expected continued recovery in the private residential market, ECs - a hybrid fulfilling the difference in these two property types - are expected to be met with overwhelming buying interest,' he added.
'Ironically, though, first-time buyers may have less purchasing power . .. and would thus have to be prudent and ensure they will be able to continually finance their purchase, even if they are given the privilege to buy,' he added.
Of the two 99-year leasehold plots on offer, the Sengkang plot, near Buangkok MRT Station, will be more highly sought after and hence fetch a higher unit land price, say property consultants. It can be developed into 520 apartments and is just one MRT stop away from Compass Point mall.
The Yishun plot, which can yield about 385 units, is not within walking distance of an MRT station, although it could make for a conducive living environment. It is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir. The Yishun plot is next to a completed EC project, Lilydale.
Property consultants that BT polled predict that land bids for the more popular Sengkang plot would range from about $190 to $300 per square foot per plot ratio (psf ppr), with target average selling prices of $550-600 psf.
Colliers International director Tay Huey Ying says that three EC projects in the north-east region - Park Green, The Rivervale and The Florida - sold at average prices of $525-546 psf - in Q4 2009.
For the Yishun plot, consultants expect bids of around $150-210 psf ppr with average selling prices of $500-580 psf. Units in Lilydale next door transacted at $494 psf on average last quarter, notes Ms Tay.
Real estate lecturer Nicholas Mak predicts about four to nine bids for the Yishun plot and five to 10 offers for the Sengkang land parcel. BT understands that some developers may be put off from bidding for the EC sites due to more admin work involved, including checking buyers' eligibility criteria.
The last EC project was Far East Organization's La Casa in Woodlands, which was released at an average price of about $380 psf in May 2005 and completed in 2008.
Last year's sharp recovery in 99-year leasehold mass-market private condo prices has revived the need for ECs, say analysts. 'If the price gap between the new EC projects and new 99-year private condos in the same location is attractive enough, homebuyer demand for ECs will surely return,' says CB Richard Ellis executive director Li Hiaw Ho.
Sim Lian Group executive director Diana Kuik says the $10,000 monthly household income cap for new EC buyers will serve to rein in land bids. An overly aggressive successful bidder may carve out a higher proportion of small units to try and achieve higher psf selling prices, she reckons.
While some developers may not be be pleased with the stipulation favouring first-time buyers, Knight Frank's Mr Ow says: 'We don't see a great impact on marketability of the EC projects as recent BTO projects have seen overwhelming response.'
ECs were minted in 1995 to cater to the 'sandwich class' who aspire to own private condos but find themselves priced out. The $10,000 income ceiling for new EC buyers is above the $8,000 for those seeking to buy new public housing flats from HDB.
First-timers to get 95% of latest EC projects
Sengkang plot seen going for $190-300 psf ppr; Yishun, $150-210 psf ppr
By KALPANA RASHIWALA
(SINGAPORE) Two executive condominium (EC) sites, one in Sengkang and the other in Yishun, will come with a twist when they are launched today. The winning tenderers will have to set aside 95 per cent of units in the initial month of sale for first-time home buyers. That is, those that have yet to receive a housing subsidy.
Market watchers say that the strategy is aimed at meeting strong demand for HDB flats from this segment of late.
ECs are a hybrid of public and private housing. They are strata-titled apartments with facilities comparable to private condos. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing; but these are completely removed after 10 years.
Knight Frank managing director (residential services) Peter Ow says that setting aside 95 per cent of a new EC project for first-timers will help ease their difficulty in purchasing a home.
'Looking at how recent Built-To-Order HDB flats are oversubscribed and an expected continued recovery in the private residential market, ECs - a hybrid fulfilling the difference in these two property types - are expected to be met with overwhelming buying interest,' he added.
'Ironically, though, first-time buyers may have less purchasing power . .. and would thus have to be prudent and ensure they will be able to continually finance their purchase, even if they are given the privilege to buy,' he added.
Of the two 99-year leasehold plots on offer, the Sengkang plot, near Buangkok MRT Station, will be more highly sought after and hence fetch a higher unit land price, say property consultants. It can be developed into 520 apartments and is just one MRT stop away from Compass Point mall.
The Yishun plot, which can yield about 385 units, is not within walking distance of an MRT station, although it could make for a conducive living environment. It is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir. The Yishun plot is next to a completed EC project, Lilydale.
Property consultants that BT polled predict that land bids for the more popular Sengkang plot would range from about $190 to $300 per square foot per plot ratio (psf ppr), with target average selling prices of $550-600 psf.
Colliers International director Tay Huey Ying says that three EC projects in the north-east region - Park Green, The Rivervale and The Florida - sold at average prices of $525-546 psf - in Q4 2009.
For the Yishun plot, consultants expect bids of around $150-210 psf ppr with average selling prices of $500-580 psf. Units in Lilydale next door transacted at $494 psf on average last quarter, notes Ms Tay.
Real estate lecturer Nicholas Mak predicts about four to nine bids for the Yishun plot and five to 10 offers for the Sengkang land parcel. BT understands that some developers may be put off from bidding for the EC sites due to more admin work involved, including checking buyers' eligibility criteria.
The last EC project was Far East Organization's La Casa in Woodlands, which was released at an average price of about $380 psf in May 2005 and completed in 2008.
Last year's sharp recovery in 99-year leasehold mass-market private condo prices has revived the need for ECs, say analysts. 'If the price gap between the new EC projects and new 99-year private condos in the same location is attractive enough, homebuyer demand for ECs will surely return,' says CB Richard Ellis executive director Li Hiaw Ho.
Sim Lian Group executive director Diana Kuik says the $10,000 monthly household income cap for new EC buyers will serve to rein in land bids. An overly aggressive successful bidder may carve out a higher proportion of small units to try and achieve higher psf selling prices, she reckons.
While some developers may not be be pleased with the stipulation favouring first-time buyers, Knight Frank's Mr Ow says: 'We don't see a great impact on marketability of the EC projects as recent BTO projects have seen overwhelming response.'
ECs were minted in 1995 to cater to the 'sandwich class' who aspire to own private condos but find themselves priced out. The $10,000 income ceiling for new EC buyers is above the $8,000 for those seeking to buy new public housing flats from HDB.
CNA : HDB launches two executive condo sites for sale at Sengkang and Yishun
HDB launches two executive condo sites for sale at Sengkang and Yishun
By Jonathan Peeris, 938LIVE | Posted: 14 January 2010 1908 hrs
SINGAPORE: The Housing and Development Board (HDB) will launch two Executive Condominium (EC) sites for sale on January 15.
The sites, located in Sengkang and Yishun, will yield a total of about 900 units. Each site has a lease term of 99 years.
The plot of land at Sengkang is located near to Buangkok MRT station with a land area of 19,000 square metres and a maximum permissible gross floor area of 57,000 square metres.
Over in Yishun, the site is about 15,000 square metres and has a maximum gross floor area of some 42,000 square metres.
HDB said the tender of the sites will close in March.
Executive Director of CBRE Research Li Hiaw Ho said the government's decision to bring back executive condominiums is likely due to the strong demand for mass market private condominiums last year.
CBRE said the 13,500 new HDB flats that were also sold in 2009 proved that there is a strong demand for housing by first-time homebuyers.
ECs are an additional housing choice for first-timer home-buyers as well as the sandwich class - young couples and professionals whose monthly household income is less than S$10,000.
The last EC launched was La Casa in May 2005 at around S$550 per square foot and was completed in early-2008.
CBRE said the Sengkang site should fetch a land price of between S$250 and S$300 per square foot per plot ratio and an average selling price of S$600 per square foot.
CBRE estimates the site at Yishun Avenue 1 will fetch between S$150 and S$200 per square foot per plot ratio and an average selling price of S$500 per square foot. - CNA/vm
By Jonathan Peeris, 938LIVE | Posted: 14 January 2010 1908 hrs
SINGAPORE: The Housing and Development Board (HDB) will launch two Executive Condominium (EC) sites for sale on January 15.
The sites, located in Sengkang and Yishun, will yield a total of about 900 units. Each site has a lease term of 99 years.
The plot of land at Sengkang is located near to Buangkok MRT station with a land area of 19,000 square metres and a maximum permissible gross floor area of 57,000 square metres.
Over in Yishun, the site is about 15,000 square metres and has a maximum gross floor area of some 42,000 square metres.
HDB said the tender of the sites will close in March.
Executive Director of CBRE Research Li Hiaw Ho said the government's decision to bring back executive condominiums is likely due to the strong demand for mass market private condominiums last year.
CBRE said the 13,500 new HDB flats that were also sold in 2009 proved that there is a strong demand for housing by first-time homebuyers.
ECs are an additional housing choice for first-timer home-buyers as well as the sandwich class - young couples and professionals whose monthly household income is less than S$10,000.
The last EC launched was La Casa in May 2005 at around S$550 per square foot and was completed in early-2008.
CBRE said the Sengkang site should fetch a land price of between S$250 and S$300 per square foot per plot ratio and an average selling price of S$600 per square foot.
CBRE estimates the site at Yishun Avenue 1 will fetch between S$150 and S$200 per square foot per plot ratio and an average selling price of S$500 per square foot. - CNA/vm
CNA : Singapore's investment property market staging a robust comeback
Singapore's investment property market staging a robust comeback
By Mok Fei Fei, Channel NewsAsia | Posted: 14 January 2010 1506 hrs
SINGAPORE: Singapore's investment property market seems to be shrugging off the global financial crisis and is staging a robust comeback.
Property consultant C B Richard Ellis said Singapore's investment market performed much better than expected in 2009. It said total real estate investment sales came in at S$10.2 billion.
While the figure is 43 per cent less than the S$17.9 billion number set in 2008, it is still better than an initial estimate of S$1.35 billion at the start of 2009.
But in the fourth quarter last year, total investment sales amounted to S$3.86 billion, a drop of 7.2 per cent from the previous quarter.
CBRE said the dip was due to the residential market taking a breather from the intense activity witnessed in the earlier part of the year.
Separately, property consultant DTZ said Singapore accounted for the bulk of investments flowing into Southeast Asia in the fourth quarter last year. It said 73 per cent of Southeast Asia's total transactional value of US$2.4 billion was due to Singapore.
DTZ noted that Singapore did well as it is the gateway to the region.
Most of the investments over the period were channelled into the residential sector, followed by the retail sector.
In Singapore, the residential market made up 57 per cent of the transactional value in the fourth quarter of 2009.
DTZ added that the real investment market in the region was driven mainly by domestic firms and private investors.
- CNA/sc
By Mok Fei Fei, Channel NewsAsia | Posted: 14 January 2010 1506 hrs
SINGAPORE: Singapore's investment property market seems to be shrugging off the global financial crisis and is staging a robust comeback.
Property consultant C B Richard Ellis said Singapore's investment market performed much better than expected in 2009. It said total real estate investment sales came in at S$10.2 billion.
While the figure is 43 per cent less than the S$17.9 billion number set in 2008, it is still better than an initial estimate of S$1.35 billion at the start of 2009.
But in the fourth quarter last year, total investment sales amounted to S$3.86 billion, a drop of 7.2 per cent from the previous quarter.
CBRE said the dip was due to the residential market taking a breather from the intense activity witnessed in the earlier part of the year.
Separately, property consultant DTZ said Singapore accounted for the bulk of investments flowing into Southeast Asia in the fourth quarter last year. It said 73 per cent of Southeast Asia's total transactional value of US$2.4 billion was due to Singapore.
DTZ noted that Singapore did well as it is the gateway to the region.
Most of the investments over the period were channelled into the residential sector, followed by the retail sector.
In Singapore, the residential market made up 57 per cent of the transactional value in the fourth quarter of 2009.
DTZ added that the real investment market in the region was driven mainly by domestic firms and private investors.
- CNA/sc
CNA : Property prices in S'pore to continue to move upwards in 2010
Property prices in S'pore to continue to move upwards in 2010
By Rachel Kelly, Channel NewsAsia | Posted: 14 January 2010 2108 hrs
SINGAPORE: The luxury housing sector is expected to lead the way for the Singapore property market this year, according to real estate broker Savills.
Savills is forecasting that prices in the luxury segment will rise 15 per cent in the year ahead.
However, prices in the mass market and mid-end properties could see values move up by about five per cent.
Last year, despite the deep economic recession, private property transactions nearly surpassed the highs of 2007.
Going into 2010, Savills believes the rising trend will continue but at a more moderate pace.
Savills said the underlying demand would come from the completion of the two integrated resorts as well as attractive office rentals which are expected to bring in more overseas investments.
Michael Ng, managing director, Savills Singapore, said: "We do see strong demand because of the population growth. Again a lot more foreign workers are expected to come in over the next 12 months, so I don't think there will be a correction downward in that sense. But certainly not the same kind of growth as seen last year, more moderated, but healthier."
“I think the prices in terms of luxury is still some 20 to 25 per cent off the peak. In terms of the high net worth individuals, I think a lot of confidence is coming back to the market. There is a lot of liquidity around that's pushing them back into real estate." - CNA/vm
By Rachel Kelly, Channel NewsAsia | Posted: 14 January 2010 2108 hrs
SINGAPORE: The luxury housing sector is expected to lead the way for the Singapore property market this year, according to real estate broker Savills.
Savills is forecasting that prices in the luxury segment will rise 15 per cent in the year ahead.
However, prices in the mass market and mid-end properties could see values move up by about five per cent.
Last year, despite the deep economic recession, private property transactions nearly surpassed the highs of 2007.
Going into 2010, Savills believes the rising trend will continue but at a more moderate pace.
Savills said the underlying demand would come from the completion of the two integrated resorts as well as attractive office rentals which are expected to bring in more overseas investments.
Michael Ng, managing director, Savills Singapore, said: "We do see strong demand because of the population growth. Again a lot more foreign workers are expected to come in over the next 12 months, so I don't think there will be a correction downward in that sense. But certainly not the same kind of growth as seen last year, more moderated, but healthier."
“I think the prices in terms of luxury is still some 20 to 25 per cent off the peak. In terms of the high net worth individuals, I think a lot of confidence is coming back to the market. There is a lot of liquidity around that's pushing them back into real estate." - CNA/vm
CNA : New road network in Marina Bay area will serve upcoming developments there
New road network in Marina Bay area will serve upcoming developments there
By Saifulbahri Ismail, Channel NewsAsia | Posted: 14 January 2010 1342 hrs
SINGAPORE: A new road network will be built progressively in the new downtown Marina Bay area as part of the Land Transport Authority's new developments in 2010.
This is to serve upcoming developments such as the Marina Bay Sands Integrated Resort and the Marina Bay Financial Centre.
Motorists travelling to the Marina Bay Sands Integrated Resort can soon use a new bridge and road.
The Bay Bridge connects directly across the Marina Centre to Marina Bay.
Motorists can then continue along Bayfront Avenue towards the Marina Bay Financial Centre.
With the opening of the 1.4 kilometre bridge and road, a new ERP gantry will also be installed.
Yam Ah Mee, chief executive, Land Transport Authority, said: "Together with the Bayfront Avenue road, there's a need to adjust the CBD cordon and having a new ERP gantry at that location. So that the overall, CBD cordon comprising of the Orchard cordon, the Shenton-Chinatown cordon and the Marina City cordon remains intact.
“And that's the reason why we are closing the CBD cordon and adjusting it with this new ERP gantry."
The Bayfront Avenue ERP gantry will be up by end-March.
To further adjust the CBD cordon, three more ERP gantries will be erected and will be operational in the third quarter of this year.
The existing gantry along Central Boulevard will be replaced by a new one at Marina Way.
Two other gantries will be on the other side of Bayfront Avenue and Marina Station Road.
In other developments, motorists can look forward to the opening of the Bartley viaduct on Sunday.
The 1.9 kilometre long viaduct marks the completion of the Bartley extension project.
Mr Yam said: "With the opening of the Bartley viaduct, motorists can expect travelling along Tampines Avenue 10 to Bartley to have a time saving of about 10 to 15 minutes and also alternatives to PIE. We expect that up to about five to 10 per cent of motorists, may consider alternatives of travelling on the Bartley viaduct instead of going through PIE."
The Bartley Road extension project, which started in 2000, costs S$208 million. - CNA/vm
By Saifulbahri Ismail, Channel NewsAsia | Posted: 14 January 2010 1342 hrs
SINGAPORE: A new road network will be built progressively in the new downtown Marina Bay area as part of the Land Transport Authority's new developments in 2010.
This is to serve upcoming developments such as the Marina Bay Sands Integrated Resort and the Marina Bay Financial Centre.
Motorists travelling to the Marina Bay Sands Integrated Resort can soon use a new bridge and road.
The Bay Bridge connects directly across the Marina Centre to Marina Bay.
Motorists can then continue along Bayfront Avenue towards the Marina Bay Financial Centre.
With the opening of the 1.4 kilometre bridge and road, a new ERP gantry will also be installed.
Yam Ah Mee, chief executive, Land Transport Authority, said: "Together with the Bayfront Avenue road, there's a need to adjust the CBD cordon and having a new ERP gantry at that location. So that the overall, CBD cordon comprising of the Orchard cordon, the Shenton-Chinatown cordon and the Marina City cordon remains intact.
“And that's the reason why we are closing the CBD cordon and adjusting it with this new ERP gantry."
The Bayfront Avenue ERP gantry will be up by end-March.
To further adjust the CBD cordon, three more ERP gantries will be erected and will be operational in the third quarter of this year.
The existing gantry along Central Boulevard will be replaced by a new one at Marina Way.
Two other gantries will be on the other side of Bayfront Avenue and Marina Station Road.
In other developments, motorists can look forward to the opening of the Bartley viaduct on Sunday.
The 1.9 kilometre long viaduct marks the completion of the Bartley extension project.
Mr Yam said: "With the opening of the Bartley viaduct, motorists can expect travelling along Tampines Avenue 10 to Bartley to have a time saving of about 10 to 15 minutes and also alternatives to PIE. We expect that up to about five to 10 per cent of motorists, may consider alternatives of travelling on the Bartley viaduct instead of going through PIE."
The Bartley Road extension project, which started in 2000, costs S$208 million. - CNA/vm
AsiaOne : Two executive condos sites to launch
Two executive condos sites to launch
The sites at Sengkang and Yishun offer 900 units in total. -AsiaOne
Thu, Jan 14, 2010
AsiaOne
The Housing Development Board (HDB) is launching two Executive Condominium (EC) housing sites in Sengkang and Yishun tomorrow.
The two EC housing sites are Compassvale Bow at Sengkang and Yishun Avenue 11 and have a combined yield of about 900 units.
The tender for Compassvale Bow will close on Mar 4 and the tender for Yishun Avenue 11 will close on Mar 11.
Compassvale Bow is located near to Buangkok MRT station and is easily accessible from major expressways such as TPE and KPE. Grocery shopping facilities and eateries are a stone's throw away. Recreational choices such as Punggol Park and Sengkang Sports and Recreation Centre are within easy reach.
Yishun is well served by a comprehensive network of roads and expressways such as Yishun Avenue 2 and SLE. Yishun and Khatib MRT stations and Yishun bus interchange are also within the vicinity. The site is also only a few minutes' walk from Yishun Park and is near to shopping and dining conveniences.
New EC units are sold with initial eligibility and ownership restrictions similar to public housing, and will be fully converted to private housing after 10 years.
ECs cater to families whose household incomes are above the $8,000 income eligibility criterion for new HDB flats, but earn below $10,000. Eligible first-timers who purchase new ECs can also apply for a $30,000 CPF housing grant.
As with other HDB launches, 95 per cent of flat supply will be set aside for for first-timers during the first month of sale. Second-timers buying new ECs do not need to pay any resale levy.
For enquiries, interested buyers can email to hdblandsales@hdb.gov.sg, call 6490 3037 or 6490 3446, fax to 6490 3005 or access HDB's enquiry form at www.hdb.gov.sg/hdblandsales.
The sites at Sengkang and Yishun offer 900 units in total. -AsiaOne
Thu, Jan 14, 2010
AsiaOne
The Housing Development Board (HDB) is launching two Executive Condominium (EC) housing sites in Sengkang and Yishun tomorrow.
The two EC housing sites are Compassvale Bow at Sengkang and Yishun Avenue 11 and have a combined yield of about 900 units.
The tender for Compassvale Bow will close on Mar 4 and the tender for Yishun Avenue 11 will close on Mar 11.
Compassvale Bow is located near to Buangkok MRT station and is easily accessible from major expressways such as TPE and KPE. Grocery shopping facilities and eateries are a stone's throw away. Recreational choices such as Punggol Park and Sengkang Sports and Recreation Centre are within easy reach.
Yishun is well served by a comprehensive network of roads and expressways such as Yishun Avenue 2 and SLE. Yishun and Khatib MRT stations and Yishun bus interchange are also within the vicinity. The site is also only a few minutes' walk from Yishun Park and is near to shopping and dining conveniences.
New EC units are sold with initial eligibility and ownership restrictions similar to public housing, and will be fully converted to private housing after 10 years.
ECs cater to families whose household incomes are above the $8,000 income eligibility criterion for new HDB flats, but earn below $10,000. Eligible first-timers who purchase new ECs can also apply for a $30,000 CPF housing grant.
As with other HDB launches, 95 per cent of flat supply will be set aside for for first-timers during the first month of sale. Second-timers buying new ECs do not need to pay any resale levy.
For enquiries, interested buyers can email to hdblandsales@hdb.gov.sg, call 6490 3037 or 6490 3446, fax to 6490 3005 or access HDB's enquiry form at www.hdb.gov.sg/hdblandsales.
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