BT : Key Asian cities set to see construction tender prices rise

Business Times - 19 Apr 2010

Key Asian cities set to see construction tender prices rise

By EMILYN YAP

(SINGAPORE) Construction tender prices in key Asian cities are likely to rise this year as the economy recovers and building activity picks up.

According to a report by property and construction consultancy Rider Levett Bucknall (RLB): 'Barring any unforeseen change in global market conditions for the year 2010, Asian construction demand is expected to rebound in tandem with a revival of property development.

'Coupled with an expected rise in commodity prices, construction tender prices are anticipated to register moderate increases for key Asian cities in 2010 compared with the previous year.'

In Singapore, RLB estimates that building tender prices could rise 3 per cent this year, reversing a 19 per cent slide in 2009.

Higher construction costs have a part to play in this. According to a recent report by quantity surveyors Davis Langdon & Seah, the recent rise in iron ore prices is likely to lead to higher steel prices. The upcoming increase in the foreign workers levy and cut in man-year entitlement will also cause construction costs to go up.

RLB recognises that contractors' costs are set to grow because of these changes. But it does not expect tender prices to surge as a result. Tendering margins 'are anticipated to remain competitive due to the relatively low construction demand'.

The Building and Construction Authority (BCA) projects this year's total construction demand at $21-27 billion. This is not far from last year's demand of $21 billion, but is much lower than the demand of $35.7 billion in 2008.

In Beijing, Shanghai and Shenzhen, construction tender prices could rise 3 per cent this year, RLB says. They remained flat in 2009.

China's booming property market has contributed to higher construction demand. While Beijing has tried to rein in speculation with measures to cool the market, RLB believes 'it is unlikely that such measures will have an immediate effect on construction costs'.

Of the 10 Asian cities RLB looked at, Hong Kong could register the biggest percentage increase in building tender prices.

RLB expects these prices to grow 9 per cent this year, reversing a 6 per cent drop in 2009. The construction industry there will benefit over the next 2-3 years with the start of major railway projects, it says.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Think before selling HDB flat, says DPM

Business Times - 19 Apr 2010

Think before selling HDB flat, says DPM

It's a key source of financial security upon retirement, home owners told

By JOYCE HOOI

DEPUTY Prime Minister Wong Kan Seng yesterday urged home owners to think before selling their HDB flats in the current upbeat property market.

'In today's brisk market, some of us may be tempted to sell our flat for a profit. I urge you to think carefully before you act on it. Your HDB flat is meant for you to keep for a longer term. It is a key source of financial security upon your retirement,' said Mr Wong, who is also Home Affairs Minister and MP for Bishan-Toa Payoh GRC, yesterday.

'There are various ways of monetising the value of your HDB flats when you are ready to do so. But please do not sell your flat until you are satisfied that you have another place to stay.'

Mr Wong was speaking at the HDB's 50th anniversary celebration near the Bishan MRT station.

As part of a series of year-long celebrations to commemorate 50 years of public housing, the 'Storeys of Our Homes' exhibition will be on the move throughout the heartlands until July this year.

Held in the towns representing the five main zones - Eunos, Bishan, Choa Chu Kang, Woodlands, and Tampines - the exhibition is set to move on to the zone celebration in Choa Chu Kang next month, followed by the ones in Woodlands and Tampines in June and July, respectively.

The exhibition will cover the main milestones that have come to mould public housing today, and recent developments like Remaking Our Heartland plans, The Pinnacle@Duxton and Treelodge@Punggol.

'In the early years, housing conditions were deplorable. There was a severe housing shortage, with many living in slums and squatter colonies,' said Mr Wong.

'The first task HDB faced was quite an uphill one - to re-house the large numbers of people from the squatters and farmlands urgently. HDB built basic housing that was cheaper and faster to construct.'

Mr Wong pointed out the upgrading that eight towns - Ang Mo Kio, Toa Payoh, Bishan, Serangoon, Kallang/Whampoa, Queenstown, Bukit Merah and the Central Area - had enjoyed to date.

'The government has spent nearly $3.4 billion to complete the upgrading of the living environment for more than 150,000 households in these eight towns,' said Mr Wong.

'It has also committed another $1 billion to upgrade the living environment for yet another 85,000 households. I can assure you that as long as we have the financial resources, the government will continue to extend upgrading to all other households eligible for upgrading.'

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

ST : Glitzy Orchard

Apr 18, 2010

Glitzy Orchard

Belt's makeover enhanced by retailers' fancy facades: Experts

By Shuli Sudderuddin , Debby Kwong

Flaunt it if you have it. That is what retailers with prime shop space along the Orchard Road belt are doing.

A war has broken out as eye-catching, brightly lit facades - showcasing luxury brands like

Gucci, Prada and Chanel - compete for attention there.

Retail experts say the belt's glitzy makeover has emerged in the past two years, along with the profusion of malls.

Said Dr Lynda Wee, from business consultancy Bootstrap: 'Orchard Road is not just for locals. It has to pull in tourists from the region. With Marina Bay coming up, if Orchard Road does not create interesting facades, how will it compete?'

Orchard Road Business Association chairman Sng Ngoi May said that while the glitzy facades were the purview of individual mall owners, they have enhanced the area's $40 million makeover.

She said: 'They have created a totally different Orchard Road in the past two years and have really enhanced the look of the place.'

The malls said there is usually a tussle to get prime shop space with a facade.

Said a spokesman for Ion Orchard, which has six duplex units housing luxury brands on its facade: 'Given the limited number of duplex units with street fronts, the demand is naturally strong. These double-storey units offer a stronger brand presence and, importantly, allow the brands to build their own signature external facades.'

A spokesman for Mandarin Gallery, whose glass facade houses five duplexes and six street-facing stores, said it gets inquiries about the availability of such units.

Even the older malls have undergone facelifts. Paragon did its renovation in 2008, responding to the Urban Redevelopment Authority's call to building owners to create more interesting building facades to enhance the vibrancy of Orchard Road.

As a result, it now has five tenants with street-facing frontage - each with three to five storeys of facade presence.

Mr Mauro Malta, general manager of Tod's Asia-Pacific which has a 3,300 sq ft boutique in Paragon with facade space, said: 'Facades are important retail space, creating a big visual impact.'

The malls and retailers declined to reveal the rental costs for facade space. But Mr Peter See-Toh, Knight Frank's managing director (retail services), said prime retail spaces with Orchard Road frontage have rental prices starting from $40 per sq ft (psf) per month, depending on the sizes of the shops.

For less prime spaces, he said, the rental may range from $20 to $35 psf per month.

Ms Sulian Tan-Wijaya, senior director (retail and lifestyle) at Savills Singapore, said the relationship between landlord and tenant is also an important determinant of price.

She said: 'A good example of a win-win landlord-tenant relationship is Paragon and Gucci's. The new Gucci flagship is visually stunning and the location is unbeatable.'

Said Ms Eileen Bygrave, retail director of Salvatore Ferragamo, which will have a 6,000 sq ft duplex boutique with a three-storey facade in Paragon by July: 'A good facade creates great visual impact and people will come in. Still, they'll buy the product only if the quality is good.'

But the research director of Chesterton Suntec International, Mr Colin Tan, said that such facades will probably have a bigger impact on tourists than on locals.

One shopper, Ms Mimi Johari, 28, a sales executive, agreed: 'Such big stores are interesting only for the first time, and shoppers will be interested to check them out, but not necessarily to buy something. And they become monotonous after repeated viewing.'

Dr Wee, however, feels that Orchard Road has to be compared to shopping districts worldwide.

And the quest never stops.

She said: 'Right now, we are as good as, say, districts in Tokyo or New York both in terms of the facades and the vibrancy of our street life. But in the next three to five years, we will have to reinvent ourselves again.'

shulis@sph.com.sg

ST : Olympics may boost East London home prices

Apr 18, 2010

property

Olympics may boost East London home prices

Area is being re-invented prior to event

By Jessica Cheam

London: Think Olympics 2012, and you'll invariably think of East London.

Age-old images of the East End's grotty streets and its infamous serial killer Jack the Ripper are now being re-invented as the area undergoes the biggest makeover of any Western European city in recent history.

And as with all Olympic legacies, the big question on property investors' minds will be: Will property values go up as a result? Is this the time to invest in East London homes?

London property analysts whom The Sunday Times spoke to say there is potential upside in the price recovery of East London homes since the financial crisis of 2008.

Latest figures from the UK Land Registry show that house prices in Hackney and Tower Hamlets - regarded as indicators for East London - have risen about 12 per cent since April last year, when they were at the bottom of the market in the aftermath of the global financial crisis.

Sales and marketing director Sheena Ellwood of East London developer Telford Homes noted that there is still another 12 per cent to 13 per cent to go before East London home prices reach their 2008 peak levels before the crisis hit.

'The regeneration surrounding the build-up to the 2012 Olympics has continued to stimulate demand. Potential for capital growth is much higher in East London than in the areas already established such as prime and west London,' she said.

At the heart of East London's regeneration is Stratford - one of the capital's most diverse and economically deprived areas - chosen for its supply of sites for redevelopment, as well as the green spaces of the Lower Lea Valley.

Stratford is poised to become a major transport hub soon, when Stratford International Station opens this year, which will provide services to Paris and Brussels via the Eurostar train service.

The Olympic Park at Stratford will comprise the Olympic Stadium, Aquatics Centre, Hockey Centre and Velopark, as well as the Olympic Village itself which will house the Olympics athletes in 2012. A �4 billion (S$8.5 billion) Stratford City mixed-use development is also located next to the Olympic Park.

One project within walking distance of the Olympic Park launched recently: Matchmakers Wharf, by Telford Homes, which offers 209 units ranging from studio apartments to four-bedroom units starting from �150,000 or �298 per sq ft (psf).

It is due for completion in 2012.

Managing director Doris Tan of Singapore firm DST International Property Services said that 'at this level, prices are very affordable. It's much less than what you'd pay for new mass-market homes in Singapore'.

Some other projects to consider include the 242-unit Greenwich Creekside, in the London borough of Greenwich - also hosting the Olympics - which offers one- to three-bedroom units from �400 psf, some with views of the river Thames.

Further from the Olympic Park, other East London properties on offer are Baltimore Wharf at Canary Wharf and and 21 Wapping Lane at Wapping where one- to three-bedroom units are selling from �550 psf onwards at both projects.

Singapore investors are not taxed on capital gains for British properties but they will need to pay tax in Britain on their rental income. There are also no ownership restrictions on buying and selling property in Britain.

Property investors should be aware, however, that the risk of investing in off-plan homes such as in Stratford is the uncertainty surrounding an emerging but unproven residential area.

CB Richard Ellis' head of residential development agency Jonathan Seal noted that such projects are attractive 'dependent on the location'.

'But I would be cautious. The amount of new property coming to the market may suppress capital growth and create a surfeit of rental property in the marketplace,' he said.

However, Mrs Tan feels the risk is minimised for Singapore investors.

'The pound is at its weakest and that adds a further discount to the purchase price. At near-bottom prices, the potential for upside, especially on the back of the Olympics, outweighs the risk,' she said.

jcheam@sph.com.sg

This is the final of a two-part series on London properties.

ST : Six Ion stalls close

Apr 18, 2010

Six Ion stalls close

The remaining 28 stalls cite bad business - due partly to the lack of sitting space for customers - and high rent as the reason

By Eunice Quek

When it opened to much fanfare in July last year, the Food Hall at basement 4 of Ion Orchard was packed. Several stalls there had long queues of hungry shoppers and stallholders could barely cope.

Now, six of the 34 stalls have closed, the queues are gone and stall assistants at the remaining businesses stand around looking bored. The shuttered stalls, Arinco King, Hokkaido Express, Tokyo Crepe Girl, Lastchocolate.com, Renaldo's and Freddie's Burger, closed shop about a month ago.

The remaining stallholders say that business is bad because the novelty has worn off and customers have no place to sit after buying food. Mr Clement Tan, 33, outlet manager of Japanese takoyaki chain Tsujiki Gindaco, says: 'When we first opened, the queue stretched to the neighbouring shop. Now, we barely have a queue. People came because we were new. I hope they're not sick of our food.'

For Mr Sam Wong, 27, who runs GoGo Franks, which is well known for its prata sausage roll, sales at his outlet in Ang Mo Kio Hub are 'three times better than at Ion. Even the tenants at Ion don't eat here because the snacks are a bit pricey. If we can't even feed our own, how do we feed everyone else? Those who want to spend more money on a full meal will probably go to the restaurants instead of eating at the snack outlets.'

He cut prices at his Ion Orchard outlet 'by about 10 per cent since last year' to attract more customers since competition among the food outlets is stiff. He also says that rent is high and 'even the more popular shops may earn enough only to pay their rent'. All those interviewed declined to say how much rent they are paying.

Student Lynette Sim, 19, says: 'I'm not surprised that stalls are closing down. I'm sure that the rental in Ion is very high, since it is pitched to a crowd that is more well-off.'

When LifeStyle visited the Food Hall several times last week during lunch time, it was clear that existing stall owners were trying to stay afloat.

Tori Q, a chain which sells grilled meats on skewers and which has outlets in shopping malls all over the island, had stall assistants handing out samples.

Gyoza no Tetsujin by En, which specialises in panfried Japanese dumpling, introduced set meals and that has helped business to pick up.

Four of the six stalls that closed were run by the same Japanese company, Garb. Arinco King, Hokkaido Express, Tokyo Crepe Girl and Lastchocolate.com closed on April 1.

Shop assistants from nearby stalls say it was a shock exit. Some of them received text messages on the day itself, about the closure.

Mr Dave Koh, 45, who was supervisor of the four outlets, says the decision came about because Hokkaido Express, which sells potato croquettes, and Lastchocolate.com, which sells chocolate drinks, were not doing well.

Ironically, Arinco King, which sells Swiss rolls, was a victim of its own success. Three new outlets had opened in Japan and there was a growing demand for its cakes here.

He says: 'The factory cannot fully support the need for the cakes in Singapore. We would receive urgent orders and have to end up rejecting them.

'So we decided that the best way out was to shut down and since all four outlets are under one company, we had to close all of them.'

A loyal fan of Arinco King's salted caramel swiss rolls, housewife Aileen Gan, 53, was sorely disappointed to find out that the outlet had closed down.

'I came all the way to Ion to buy the salted caramel roll for my daughter, only to find out that the stall closed,' she says.

The other two outlets, Renaldo's which sells apple strudel, and Freddie's Burger, are run by the same company. There is just one Freddie's Burger outlet and five other Renaldo's, in Raffles City Shopping Centre, Circular Road, Eastwood Centre, OUB Centre and Crown Centre. All the Renaldo's outlets have closed. The owner, Ms Jazz Lee, could not be contacted.

Still, it is not all doom and gloom at the Ion food hall. Ms Amber Chong, 23, outlet manager for Marvelous Cream, which sells Japanese ice cream, says: 'I know that the management is trying to help through advertising and opening up private seating so that more customers can sit down to eat.'

An Ion Orchard spokesman tells LifeStyle: 'One common feedback received for the Food Hall was the request for more seating for shoppers buying take-away food. Starting next month, we will be implementing the first phase of enhancements to our Food Hall, which includes enhanced ambience, changes in seating configuration and improvements in signage.'

Ms Chong says the stall is staying put for now. 'I don't see any reason to move out when we've been here barely for a year,' she says. 'It's all part of the business. If our quality remains up to standard, customers will come back.'

euniceq@sph.com.sg

ST : The condo carpark crunch

Apr 18, 2010

The condo carpark crunch

Parking woes hit condos that do not have enough parking spaces to meet the demands of car-owning residents

By Goh Chin Lian



Car-owning condominium residents can get into lots of trouble.

That happens when the number of cars owned exceeds the number of parking spaces allocated to them.

A recent dispute involved a family unhappy with new condo rules that forbid them to park all four of their cars on-site. They live in Hillington Green in Hillview Avenue.

They had faced no such limit when they moved into their penthouse in 2002, said a family member who wanted to be known as Mrs Lim.

The dispute escalated last month when security guards turned away their Mercedes S-Class. Police were called in to mediate.

Managing agents of condos said they increasingly have to find ways to accommodate residents with two or more cars.

In the past, after allocating each family a space, they still had enough for those with more than one car.

But more families became multiple car owners as the price of certificates of entitlement to own a car stayed below $20,000 in recent years.

Mr Derek Soh, a regional director at real estate firm Jones Lang LaSalle, said a common practice now is to charge residents a fee to park their second or third vehicle.

Some residents may then think twice about owning more cars, or find another place to park.

The Sunday Times understands the monthly charge can be $50 to $100. The Centris, above Jurong Point shopping centre in Boon Lay, charges $270.

Balloting was used by one condo in Bukit Timah that Mr Soh's firm previously managed. About 40 people vied for 30 spaces for their additional cars.

'We balloted every quarter but people felt there was no certainty because for one quarter they had a space; for the next quarter, they didn't,' he said.

Allowing residents to park overnight along some driveways in the estate is another solution, said Mr Chan Kok Hong, managing director of CKH Strata Management.

A handful of the 105 condominiums it manages does so.

He also proposed a device that can stack cars vertically.

He estimates one machine occupying one parking space would cost about $10,000, excluding maintenance. The cost could be recouped by charging residents a fee to use it.

However, he is not aware of any condo here doing this.

While some older condos have 15 per cent more parking spaces than homes, those built in the past five years just meet the government standard of one space for each home.

A rule change in 2005 allowed condos within 400m of an MRT or LRT station, or in the Central Business District, to have up to 20 per cent fewer spaces.

Centro Residences, near Ang Mo Kio MRT station, will have 260 spaces for 329 units.

Waterbank @ Dakota, near Dakota MRT station, will have 554 spaces for 616 units.

Both are due to be ready in the next five years.

Some industry observers question the 2005 rule: Home buyers may choose to live near an MRT station not because they do not want to own a car, but for the convenience of their children. Such projects may face parking woes in the future.

For those who want worry-free parking, Mr Chan suggests condos popular with expatriates. They tend not to own cars.

The Lims, however, are staying put in Hillington Green and have engaged a lawyer. Their condo has 480 units and 492 parking spaces.

The new rules passed internally last September allow each home to have only one space. Those who have a second car, can park it in the estate until they sell it.

Mrs Lim said her family is prepared to give up one car and pay for the additional spaces.

chinlian@sph.com.sg


--------------------------------------------------------------------------------

Balloting woes

'We balloted every quarter but people felt there was no certainty because for one quarter they had a space; for the next quarter, they didn't.'

MR DEREK SOH, a regional director at real estate firm Jones Lang LaSalle


--------------------------------------------------------------------------------

He uses neighbour's second allotted space

At Ardmore Park condo in Orchard, every unit is given two parking spaces. But this does not serve the needs of one resident, who wants to be known only as Jeremy.

The businessman, 57, owns three cars. He said it was a headache initially to find a spot to park the third car.

'My family really does need all three cars for easy mobility so I didn't want to give up any car,' he said. Then, he found out his immediate neighbour used only one parking space.

He got the latter's permission to use the other space to park his Jaguar XK. 'It's an ideal situation since I'm not inconveniencing anyone,' he said.

Kueh Xiu Qing


--------------------------------------------------------------------------------

Resident uses visitors' parking space



Mr J. Leong, 51, owns three cars but is allotted only one parking space at his condo in Meyer Road.

The solution? The investment banker parks his Mercedes-Benz in the space given to him. His wife uses one of the spaces meant for visitors to park her BMW.

Their daughter parks her Toyota Corolla Altis by the road outside the condo when she is back from university on weekends.

Mr Leong said: 'I've been doing this for the past two years and I've never been caught by the management. My wife always parks at a different space for visitors.'

ST : Resale price rises: ECs outpace private homes

Apr 17, 2010

Resale price rises: ECs outpace private homes

By Joyce Teo

PRICES of resale executive condominiums (ECs) have risen much faster than those of private mass market homes in recent years, and have hit yet another high, a recent study has found.

From the first quarter of 2007 to the first quarter of this year, the prices of resale ECs shot up 70 per cent, compared with the 39.6 per cent rise in mass market private home prices, the study from Savills Singapore said.

ECs are meant to bridge the gap for buyers keen to upgrade from public housing, but are unable to afford private homes.

As a result of the price gains, resale mass market condos are now - on average - only about 14 per cent more expensive than resale ECs, well down from the 29.7 per cent margin in early 2007.

EC resale prices have risen to $568 per sq ft by the first quarter of the year, which is 17.4 per cent higher than the previous peak in the third quarter of 2008.

Data from the Urban Redevelopment Authority showed that prices of suburban homes were now 7.6 per cent above the previous 2008 peak.

Savills senior manager of research and consultancy Christine Sun said demand for ECs has picked up steadily since 2005.

This could be due to 'a growing number of first-time home owners, particularly the higher-wage earners entering this market at times when mass market private homes and HDB resale home prices are on the rise', she said.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said: 'Singaporeans are starting to realise that resale ECs are good buys because they can be as good as private mass market condos.'

Indeed, prices at two ECs - Bishan Loft and Simei Green Condominium - have outdone the average price of mass market private homes in the same area, though only by 0.4 per cent to 1 per cent.

A few ECs such as Whitewater in Pasir Ris and Nuovo in Ang Mo Kio are transacting slightly below the average mass market resale prices in their areas.

Of the 23 completed ECs, Bishan Loft - within walking distance from Bishan MRT station - commands the highest prices.

The seven-year-old project recorded some of the highest EC resale deals ever done. In the January-March period this year, four high-floor units there went for $800 psf to $806 psf, or $905,000 to $1.19 million.

Bishan Loft was launched for sale in 2001 at an average price of $418 psf.

Nevertheless, the record resale prices have yet to surpass the top prices paid for two ECs in the new-home market.

Buyers bought two Yew Mei Green units of less than 100 sq m direct from the developer back in April 1998 for $810 psf and $844 psf.

ECs were introduced in 1995 to bridge the gap between public housing and private apartments. Buyers of new EC units have to meet a gross monthly household income ceiling criterion of $10,000 a month, slightly above the $8,000 income ceiling for a new HDB flat.

ECs come with condo facilities but like HDB flats, they are subject to a minimum occupation period of five years. After five years, they can be sold, but only to Singaporeans and permanent residents. They become private property after 10 years, when they can also be sold to foreigners.

With more PRs buying resale ECs, the proportion of foreign buyers in the resale EC market has hit 31.8 per cent so far this year, on a par with that of foreign purchases of non-landed private resale homes, said Savills.

Its research also showed that about 35 per cent of ECs rose in price after five years, though all increased in price after 10 years. Six ECs crossed the 10-year mark last year, while another seven would have done so by year end.

Despite the price increases, there is still a gap between resale ECs of less than 10 years old and private condos, said Mr Mak. Once prices of these ECs are too close to prices of nearby private condos, their popularity will be affected, he said.

Bishan Loft is an exception, he said, as the area has not had a new condo in a while.

Said Credo Real Estate managing director Karamjit Singh: 'After 10 years, the differentiating factors between ECs and a private condo will be the quality of the finishes, the layout and the view and so on.'

BT : Residential unit lifts CapitaLand Q1 earnings

Business Times - 17 Apr 2010

Residential unit lifts CapitaLand Q1 earnings

$800m worth units sold here in Q1 and sales are continuing

By EMILYN YAP

CONTRIBUTIONS from residential development projects helped lift CapitaLand's financial results for the first quarter ended March 31, 2010.

The property giant reaped a net profit of $115.4 million in Q1 - some 2.7 times the year-ago profit of $42.9 million. Its revenue climbed 41 per cent over the same period to $687.3 million.

CapitaLand Residential Singapore enjoyed a good quarter and became the biggest revenue contributor to the group. Its topline was $189.8 million, up 135 per cent from the previous year due to revenue recognition from The Seafront on Meyer and Latitude. Earnings before interest and tax (Ebit) rose 3.2 times to $63.2 million.

According to CapitaLand president and CEO Liew Mun Leong, the group sold about $800 million worth of residential units in Singapore in Q1, mainly from Urban Suites.

Sales are continuing into Q2. The group released more units at The Interlace over the Good Friday weekend, bringing the total number launched to 590. Some 75 per cent of these 590 units have been sold.

Average selling prices for units in the second phase ranged from $850 to $1,300 per square foot. 'This is an increase of 3-5 per cent compared to phase one units, as more of the units in phase two are located on higher floors, or have a more popular facing,' a CapitaLand spokesperson said.

CapitaLand Residential Singapore is holding on to more than 2,600 homes. It may launch the former Farrer Court site, Urban Resort Condominium and The Nassim this year.

More residential project launches are also on the way in the Chinese cities of Beijing, Shanghai, Kunshan and Hangzhou. Last year, CapitaLand bought Orient Overseas Developments Limited (OODL) and doubled its property portfolio in the mainland. 'We will continue to seek strategic opportunities such as the acquisition of OODL,' Mr Liew said.

CapitaLand Commercial also did well in Q1. Its revenue more than tripled to $120.7 million from $31.6 million, while its Ebit surged 73 per cent to $56.3 million.

CapitaLand Commercial said that office rents in Singapore have started to stabilise, and it is actively exploring new business opportunities here and abroad. In Vietnam, it aims to 'grow its portfolio from the current one per cent to 10 per cent of CapitaLand group's total assets over the next 3-5 years'.

Other divisions which saw a rise in both revenue and Ebit include CapitaLand China Holdings and CapitaMalls Asia.

Reflecting improved conditions in the hospitality industry, Ascott's revenue in Q1 rose 6 per cent year-on-year to $91.3 million. But Ebit fell 28 per cent to $8.9 million due mainly to share of lower Ascott Reit's fair value gains on financial derivatives and foreign exchange gain.

As at March 31, CapitaLand had a cash balance of $5.7 billion and a net debt-to-equity ratio of 0.27. 'We will continue to deploy funds to our businesses in China and Vietnam, and the serviced residence and integrated shopping mall businesses,' said CapitaLand chairman Richard Hu.

The counter closed at $4.10 yesterday, six cents down.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : CapitaLand buys controlling stake in StorHub

Business Times - 17 Apr 2010

CapitaLand buys controlling stake in StorHub

By UMA SHANKARI

PROPERTY giant CapitaLand has shelled out some $39.2 million to acquire a majority stake in Hersing Corporation's fast-growing self-storage business.

Yesterday, the two companies said that they have set up a joint venture (JV) company - which is 62 per cent owned by CapitaLand and 38 per cent owned by Hersing - to buy over four self-storage properties under Hersing's StorHub brand, as well as the brand itself.

The JV company paid $60 million for the four properties located in Toa Payoh and Changi and another $3.2 million for the management business. CapitaLand's 62 per cent share of this works out to $39.2 million.

The two property companies will now channel more funds into their new JV company to grow the StorHub business in China and other markets in the region, said Hersing president Jack Chua. StorHub's business model is based on offering clients month-to-month rentals of storage areas of varying sizes and allowing them 24/7 access to their stored goods.

'We need a lot of capital to grow the business (to buy the properties and convert them) and so we needed to partner someone,' Mr Chua said. 'We think that CapitaLand is a very good partner for us because of their excellent regional network.'

On its part, Hersing will get a surplus of $14.5 million from the disposal of the properties, which it intends to to inject into the joint venture company to grow StorHub in Asia.

Hersing pioneered the self-storage business when it started StorHub in 2003 and opened its first outlet in Changi. That year, the business earned the group total revenue of $900,000. But on the back of growing demand for self-storage space, the unit's revenue has since climbed significantly, coming in at $13.4 million in 2009. StorHub now operates five facilities - four in buildings it owns in Changi and Toa Payoh and one in a rented property in Kallang - with a total of 4,122 storage units and close to 316,000 square feet of net rentable space.

Mr Chua added that if the StorHub business grows large enough, the JV partners could inject the properties into a real estate investment trust (Reit) and take it public.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

ST : Private home sales still going strong

Apr 16, 2010

Private home sales still going strong

1,761 units snapped up last month despite the Govt's cooling measures

By Joyce Teo

SALES of new private homes leapt again last month, with more strong buying expected in the months ahead after the latest hot economic growth figures.

Home hunters picked up 1,761 units last month, up from 1,202 in February, bringing first-quarter sales to a higher-than-expected 4,446 units.

The quarterly total was way above the 1,860 units sold in the fourth quarter of last year, as demand for core city centre projects gathered strength.

Analysts noted that sales last month recovered to almost the level in August last year before the Government intervened to cool the market last September.

This suggests that cooling measures, which include requiring those who buy and sell a property within a year to pay stamp duty, may be losing steam as buying sentiment returns amid improved economic conditions, said Jones Lang LaSalle's head of research South-east Asia, Dr Chua Yang Liang.

In March, developers were just as enthusiastic as buyers, launching 1,790 new private homes, up from 1,161 a month earlier, according to data from the Urban Redevelopment Authority (URA) yesterday.

Launches of prime city projects surged last month, with 76 Shenton in Shenton Way selling out all 202 units on offer - at a median price of $1,900 per sq ft - in a matter of days. The brisk take-up at 76 Shenton was largely due to its location and small units, but not all projects that did well had only small units. At The Vision in the West Coast, for instance, the units start at 818 sq ft.

The 793 units launched in the core city centre was the highest since 2007.

Even more striking: The 701 non-landed units sold set a new record for the highest number of units sold in a month in the area, also known as the core central region, noted Jones Lang LaSalle.

'Demand in this region has so far been largely project-specific but March's performance is testament to a continued growth in the core central region,' said Dr Chua.

Mass market projects also did well last month, with the top seller being The Vision, where 236 units were sold at a median price of $1,050 psf.

The strong sales momentum in the first quarter has spilled over to this month, as seen by the rapid sale of more than 300 units of Waterbank at Dakota over one weekend, noted CBRE Research.

'If the pace of sales continues throughout the year, the total sales of new homes could even be comparable to last year's volume of 14,688 units,' said its executive director Li Hiaw Ho.

He said this week's figures showing stellar 13.1 per cent year-on-year economic growth in the first quarter and the Government's upward revision of estimated full-year growth to 7 to 9 per cent, from 4.5 to 6.5 per cent previously, is likely to mean much positive market sentiment in the coming months.

There will be no shortage of homes to keep the bumper figures rolling. Sizeable launches are expected at sites at Chestnut Avenue, Serangoon Avenue 3 and Lorong Ah Soo, for instance, he said.

DTZ's head of South-east Asia research, Ms Chua Chor Hoon, said low interest rates would entice buyers. 'More foreigners will be attracted to buy after looking at the fantastic GDP growth projections,' she added.

Looking ahead, property consultancy Savills Singapore expects to see more sales of homes priced above $3,000 psf.

Colliers International's director for research and advisory, Ms Tay Huey Ying, said some buyers of mass market projects may show resistance to higher prices, and this may affect sales to some extent.

However, she expects overall buying momentum to be strong this quarter.

But risks may arise in the second half. Dr Chua said the residential market is likely to keep forging forward, especially over the next few months as buyers race to lock in lower bank rates ahead of the expected interest rises by the second half.

But demand could pull back in the second half as higher financing costs set in and as higher prices make the market less appealing to foreign buyers, he said.

Total sales of homes this year could hit 10,000 to 14,000 units, depending on the overall domestic and regional economic performance as well as the aggressiveness of the Government's interventions in the market, he added.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said government land sales would sustain market activity in the short term and even contribute to growth in home prices.

But if the Government keeps providing ample supply of development sites, the result in the medium term would be slower price rises or even a potential glut if there is a sudden economic downturn, he said.

joyceteo@sph.com.sg

ST : Revamped HDB Gallery offers high-tech treats

Apr 16, 2010

Revamped HDB Gallery offers high-tech treats

Holograms, panoramic theatre help showcase history of public housing

By Esther Teo



AFTER a $3.8 million facelift, the HDB Gallery has reopened its doors to the public and now offers a fresh approach to showcasing the evolution of Singapore's public housing.

The gallery at the HDB Hub in Toa Payoh expects to receive more than 70,000 visitors a year - 20 per cent more than the average number for the old gallery, which closed last May after playing host to more than 330,000 visitors since its 2003 opening.

Revamped as part of celebrations to mark the 50th anniversary of the Housing Board (HDB), it has special features such as a hologram of life-size actors sharing their home ownership experiences, and a 360-degree panoramic theatre presentation of residents' lifestyles.

Parliamentary Secretary for National Development Mohamad Maliki Osman, who officially opened the site yesterday, said that it 'provides a canvas for HDB to portray not only the bricks and mortar, but also the heart and soul of public housing'.

Visits to the gallery, which had been undergoing renovation for almost a year, are expected to take between 30 and 45 minutes.

The HDB anticipates those wanting to view the 750 sq m gallery - about the size of two basketball courts - will include students, representatives of foreign governments, and delegations curious about Singapore's housing programmes and policies.

In the past, it has attracted parties from Malaysia, Brunei, China, the United States, Ghana and Costa Rica.

Dr Maliki said that it will be one of the designated visit sites for delegates during the World Cities Summit to be held here in June.

Ranveer Singh, 16, one of the 40 students to attend the exhibition yesterday, said that he enjoyed the interactivity offered by the multimedia features.

The Secondary 4 student from Beatty Secondary School singled out the circular 360-degree theatre as his favourite feature.

'The technology they used in the gallery is very advanced... It's nice to know the long history behind the HDB, and I think it has a bright future ahead,' he added.

The HDB Gallery is open to the public from Mondays to Saturdays and admission is free.

esthert@sph.com.sg

BT : Home sales sizzle despite cooling drizzle

Business Times - 16 Apr 2010

Home sales sizzle despite cooling drizzle

Many buyers have HDB addresses; will more steps follow?

By EMILYN YAP

(SINGAPORE) Government measures to cool the property market have not doused the enthusiasm of buyers. Developers sold 1,761 private homes in March - 47 per cent more than the 1,202 in February.

This was disclosed in fresh figures from the Urban Redevelopment Authority (URA) yesterday. For the first quarter, sales hit 4,446 units - more than double the figure in Q4 2009 and up 67 per cent from Q1 2009.

Still, transaction volumes tell just half the story. Industry observers are keeping watch on how property prices are moving, as that will determine if the government implements more cooling measures ahead.

'If the sales volume continues to reach this kind of level, accompanied by strong increases in prices, especially if that happens in the mass market, I think there is a high likelihood that more measures will be introduced,' said Colliers International research and advisory director Tay Huey Ying.

March's sales figure of 1,761 units is a seven month-high, coming after the 1,805 units in August last year. The core central region (CCR) and the outside central region (OCR) saw the most activity, accounting for 41 per cent and 44 per cent of all transactions respectively.

There were at least six new launches in the CCR, such as 76 Shenton, Nathan Suites and Seascape. 76 Shenton chalked up the highest number of units sold, as buyers snapped up all 202 units at prices of $1,583-$2,559 per sq ft.

The highest transaction prices were seen at existing projects. A unit at Nassim Park Residences went for $3,465 psf, while one at The Orchard Residences went for $3,155 psf.

In the OCR, at least three new projects were launched: Parc Elegance, Primo Residences and The Vision. At The Vision, 236 units were sold at a median price of $1,050 psf.

Property consultants cited several reasons for the strong showing in March. For instance, the economy did better than expected and more new homes were made available. Developers pushed out 1,790 new units, 54 per cent more than in February.

Knight Frank chairman Tan Tiong Cheng added that February would be quieter because of Chinese New Year. Inevitably, sales in March would seem much stronger in comparison.

Many consultants reckoned that anti-speculation measures introduced in February for the private home market would not have much impact. As DTZ South-east Asia research head Chua Chor Hoon said, they were aimed only at a small group of buyers who might have overstretched themselves.

Colliers' Ms Tay even suggests that a separate set of cooling measures for the HDB market in March could have spurred private home sales. Her analysis of caveats for new sales showed that HDB flat owners made up 44 per cent of buyers in March, up from 33 per cent in February.

HDB upgraders may be rushing 'to lock in their private property purchases for fear of being caught in a double-whammy situation where private property prices rise beyond their means, and HDB resale flat prices fall after the government stepped in to curb speculative activity', she said.

The question now is whether strong private home sales in March will lead to more state intervention. Prime Minister Lee Hsien Loong said on Wednesday that the government will keep watch over the next few months to see if more action is needed. 'If we need to, we will. We have some instruments,' he said.

Most consultants BT spoke to do not think March sales will cause serious worry.

'The government is not as concerned about volume as about prices,' said Knight Frank's Mr Tan. 'And even more important is that the price increase has slowed down.'

Mr Tan was referring to flash estimates from URA two weeks ago, which showed that private home prices could have gone up by 5.1 per cent in Q1 from the previous quarter. This is lower than the 7.4 per cent quarter-on-quarter rise in Q4 2009. URA will release updated figures next Friday.

Barring any shocks to the property market, consultants expect robust sales to continue. Estimates for the total number of homes sold for the year range from 10,000 to 15,000.

'Sentiment is even higher now with the GDP growth forecast revised upwards,' said DTZ's Ms Chua. 'Some sceptics who had been holding back would be drawn into the market.'

CBRE Research executive director Li Hiaw Ho pointed out that the strong sales momentum in Q1 2010 has spilled over to April. Buyers have already bought more than 300 units at the launch of Waterbank at Dakota this month.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Tightening of Singdollar a boon for property buyers

Business Times - 16 Apr 2010

Tightening of Singdollar a boon for property buyers

Move draws capital inflows, lowering interest rates

By SIOW LI SEN

(SINGAPORE) Property buyers are in a sweet spot, following the tightening of the Singapore dollar which attracts capital inflows causing interest rates to fall.

The key three-month Sibor (Singapore interbank offered rate) fell to 0.64583 per cent yesterday from 0.65625 per cent on Wednesday after the Monetary Authority of Singapore (MAS) appreciated the local unit to stem inflationary pressures. The government has revised upwards economic growth to 7-9 per cent from 4.5-6.5 per cent. It also raised its 2010 forecast for consumer price index inflation by half a percentage point to 2.5-3.5 per cent.

Economists say the upward floating band policy for the Singdollar tackles goods price inflation, but also gives foreign investors buying the local unit or assets a guaranteed return in currency terms.

'Before the US Federal Reserve raises its interest rates, you have a sweet spot for investors, barring incidents,' said Wei Zheng Kit, Citigroup director, Asia Pacific economic and market analysis. 'It (Singdollar tightening) has a perverse effect on asset price inflation and other tools may be needed to tackle this,' he said.

Several economists expect the Singdollar to continue appreciating until the end of the year.

DBS's senior currency economist Philip Wee said he sees the USD/SGD testing its all-time low in the next 6-12 months.

'We now see USD/SGD falling to 1.34 (again) by end-2010 instead of 1.38. The new forecasts are consistent with the one-off 1.875 per cent appreciation via the re-centring and the return to a 2.1 per cent annual appreciation path.'

Yesterday the Singdollar continued to strengthen. It was $1.3743 to the US dollar, from $1.3769 on Wednesday.

Banks have been quick to offer cheaper home loan packages to borrowers.

DBS's current promotion of its popular three-year fixed rate package charges 1.99 per cent for three years, down from its regular 2.20 per cent package.

'The latest promotion includes a protection element - mortgage insurance called My Protector Mortgage,' said Fen Peh, a DBS spokeswoman. 'Customers who choose to take up this promotion for our three-year fixed rate will enjoy preferential rates of 1.99 per cent for the first three years,' she said.

How long will home buyers be able to enjoy low interest rates?

Many expect that as soon as the US hikes its interest rates which could be towards year-end, local interest rates will rise. In the meantime, some think the MAS could intervene to prevent asset bubbles.

Said Selena Ling, OCBC economist: 'Monetary policy tightening may fuel SGD appreciation expectations, and may attract further capital inflows, which should prove beneficial to the SGS bond market, at least for the shorter tenures.

'Liquidity management will likely take on an even more prominent function to drain excess liquidity conditions from further fuelling any potential asset bubbles in the making.'

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : JLL appoints 3 int'l directors

Business Times - 15 Apr 2010

JLL appoints 3 int'l directors

JONES Lang LaSalle (JLL) yesterday announced the appointment of three international directors for its Singapore office.

They are Chris Archibold, head of markets, Singapore; Susheel Koul, head of regional business development for integrated facilities management, Asia-Pacific; and Marina Krishnan, head of integrated facilities management South Asia.

JLL chief executive Colin Dyer said: 'Our international directors have demonstrated an exceptional commitment to collaboration and teamwork, and have made major contributions to our clients and the growth of our company.

'We look to each of them to continue to deliver real value to our clients and shareholders in the coming years.'

Alastair Hughes, JLL Asia-Pacific chief executive, said: 'Congratulations to these individuals, they have made an outstanding contribution to our business.'

JLL pioneered its corporate real estate offerings in the Asia-Pacific. It has promoted 28 people worldwide to international director level, which is the property consultancy's top leadership group.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.


__._,_.___

BT : A home at the water's edge

Business Times - 15 Apr 2010

A home at the water's edge

There's now a wealth of choices in S'pore for folks who seek a waterfront lifestyle. VINCENT WEE reports

DO BOATS help to sell waterfront properties, or do people who buy waterfront houses naturally have an inclination to go out and buy boats?

There's probably no definitive answer to this conundrum, and the response given will depend largely on which part of the market the respondent is from. What's clear, though, is that these properties are becoming increasingly popular, with developers leveraging on the waterfront lifestyle to sell their homes.

They have been making regular appearances at the Boat Asia show in recent years as more waterfront projects are set to be launched both in Singapore and the region. KOP's Montigo Resorts in Batam was launched at last year's show, for example. At this year's event, Malaysia's Eastern & Oriental Bhd is pushing its Quayside development in Penang which it launched in February.

'The concept of the waterfront lifestyle is fast catching on in Singapore. As such, home buyers are seeking waterfront properties which are in limited supply,' said Keppel Land's Singapore residential CEO Augustine Tan.

Keppel, which is developing the 1,129-unit Reflections at Keppel Bay, said it has seen keen interest in its project. The group has sold 96 per cent of the 740 units launched so far.

Sales have also been strong at Keppel's other waterfront development in the area, the 969-unit Caribbean at Keppel Bay. The 168 units that Keppel had retained for leasing were snapped up when they were released for sale last year, with over 90 per cent of the units sold to date, said Keppel Land, the group's property arm.

The luxury enclave of Sentosa Cove saw three recent launches of waterfront homes, giving buyers a wealth of choices.

Ho Bee and IOI's joint venture, The Seascape, sold 25 of the 40 units released at an average price of $2,700 per sq ft, according to reports. The entire development has 151 units.

Meanwhile, City Developments sold 14 of the 56 units released at its 228-unit condo, The Residences at W Singapore Sentosa Cove. Prices ranged from $2,500 psf to $3,000 psf. Lippo Group's Marina Collection, next to ONE°15 Marina Club, is also being relaunched.

Clearly not all waterfront developments are perceived as equal, even if all can be regarded as luxury homes.

'When selecting a waterfront home, some of the key considerations include the development's location, the views it offers, its design, the premium fittings and finishes offered, reputation of the developer, and exclusivity, to name a few,' said Mr Tan.

Keppel said the locale of Reflections at Keppel Bay is one of its unique selling points as it overlooks Resorts World Sentosa and Universal Studios Singapore and is minutes away from shopping magnet VivoCity. The 30-ha precinct with a 4.2 km coastline will eventually yield about 2,600 waterfront homes all master-planned and built by Keppel. This, Keppel claims, will give home owners and residents a 'complete and distinct waterfront lifestyle with luxurious homes, a marina playground and a host of other waterfront amenities and facilities'.

Exclusive precinct

Sentosa Cove has also been billed as an exclusive waterfront precinct since its conception, with the added allure of being on an island. In addition, some of the houses in the cove have the ultimate ostentation factor of being able to berth a boat in the backyard.

'Waterfront living has always been a lifestyle of choice for many as it epitomises class and prestige,' said Mr Tan. He added that Keppel will likely release only another 100 to 200 units (of Reflections) this year.

'Feedback from buyers and prospects indicates that they are confident that capital values and rents of waterfront housing in the vicinity will appreciate strongly in the near term,' he added.

However, as the waterfront lifestyle develops, it may be that buyers are becoming more discriminating, especially as their choices increase.

It has long been perceived that the supply of waterfront land is limited. But that could radically change if Tanjong Pagar develops into a new waterfront hub, when lease of the container terminals there expires in 2027, as was suggested by the recent Economic Strategies Committee.

There has also been an increasing release of waterfront land in neighbouring countries and many of the developers will be marketing hard at Boat Asia. Among them will be projects across the Causeway as Malaysia also revitalises its ageing waterfronts. Central Malaysian Properties' Lido Boulevard, along the Johor Straits, will stretch from the current abandoned Lot 1 shopping mall to the Harbour Master's office in Johor Baru. The 908-unit project is due to be launched by the second half of the year.



Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Addresses with that certain cachet: Reflections at Keppel Bay



Marina Collection



The Residences at W Singapore Sentosa Cove



Caribbean at Keppel Bay



The Seascape

ST : John Little to leave Orchard Rd site

Apr 15, 2010

John Little to leave Orchard Rd site

Move is part of ongoing review of all store locations, says retailer

By Esther Teo

RETAILER John Little, part of the Robinsons Group, says it will soon vacate its seven-storey Orchard Road outlet.

This means the large pool of new retail space set to come onstream later this year will grow even bigger.

The move by the retailer confirms months of speculation after it failed to exercise its option as a tenant to renew its lease with landlord OG late last year, as reported by The Straits Times in January.

Existing tenants often have priority in renewing a lease if it is within a contract's agreed terms.

John Little said its decision to relocate its Somerset branch was part of an ongoing review of all its store locations. It has not revealed the location of its new store.

'We already have presence along the main Orchard Road and Marina shopping belts as well as in the heartland areas, so it is timely for us to review our store locations to ensure we can bring the John Little proposition to different parts of the island,' a Robinsons Group spokesman said. He added that existing staff will be relocated to a different outlet.

John Little has other stores at Marina Square, Plaza Singapura, Causeway Point and Jurong Point.

The Robinsons Group includes the Robinsons and Marks & Spencer department stores. John Little moved to the OG premises in 2007 from the Specialists' Shopping Centre, across the street, which has since been redeveloped.

An OG spokesman said it is in talks with a few potential tenants, both local and foreign, from various industries.

'But nothing is confirmed as of yet, so we are still open to offers... We are confident of finding a new tenant before John Little moves out because the Somerset site is close to the MRT and is also increasingly gaining popularity with shoppers.'

OG is looking for a whole or partial building tenancy with a guide price of $10 per sq ft (psf). The rent for leasing the whole building will be about $443,150 a month, the spokesman added. The tenant gets naming rights to the building.

John Little is the sole tenant in the Orchard OG Building, with a three-year lease expiring on May 16. The building, opposite 313@Somerset, is on freehold land with a gross floor area of 44,315 sq ft. It was last refurbished in 1992.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the guide price is reasonable. He is fairly optimistic the building would be leased since the local retail scene is looking positive, with an expected increase in tourist numbers.

'But this is a huge space and finding a tenant to fill this space might be a challenge. Yet, carving it up would mean losing retail space to corridors, more tenants to manage and renovation costs for the landlord,' he added.

Ms Chua Chor Hoon, DTZ's head of South-east Asia research, noted in a report that retail rents held firm last quarter, despite new supply coming onstream last year and in the first quarter this year.

A decline in prime retail rents over recent quarters looks set to bottom out as the economic recovery gathers pace and consumer confidence rebounds, experts say. Ms Chua predicts a moderate rise in prime retail rents this year.

The estimated 2.3 million sq ft of new retail space set to come onstream this year is 15 per cent down on the 2.7 million sq ft of new supply last year, she said.

Youth-themed mall *Scape in Somerset Road has announced that tenants have committed to 80 per cent of the space ahead of its June opening. And the basement link from Raffles City to Esplanade, due to open in July, is said to be more than 63 per cent pre-let.

OG, a family-run firm, is one of Singapore's oldest department stores. The company also owns office and retail properties in Albert Street and at People's Park and Orchard Point.

esthert@sph.com.sg


--------------------------------------------------------------------------------

For lease

· Landlord OG is looking for a whole or partial tenancy for the Orchard OG Building. The guide price is $10 per sq ft.

· The building is opposite 313@Somerset. It is on freehold land with a gross floor area of 44,315 sq ft.

THE CHALLENGE

'Finding a tenant to fill this space might be a challenge. Yet, carving it up would mean losing retail space to corridors, more tenants to manage and renovation costs for the landlord.'

Ngee Ann Polytechnic real estate lecturer Nicholas Mak, on the huge retail space to be available after John Little moves out

BT : PM Lee sounds caution over GDP figures

Business Times - 15 Apr 2010

PM Lee sounds caution over GDP figures

'I fear these headlines - red hot figures, out of the woods,' he says

By CHEW XIANG
IN WASHINGTON DC

PRIME Minister Lee Hsien Loong said that he was pleased with Singapore's spectacular economic growth in the first quarter but cautioned against getting carried away.

'I fear these headlines - red hot figures, out of the woods,' Mr Lee said in Washington DC, where he was attending the inaugural Nuclear Security Summit and he also met key US officials. 'We are happy with the result of course, a remarkable recovery from a year ago . . . but it's really a rebound from the downturn last year,' Mr Lee said.

'We're lucky it's turned out more like a 'V-shaped' than an 'L-shaped' recovery, (but) I don't think it's going to continue like this indefinitely because it's not possible for us to continue expanding like this.'

The Ministry of Trade and Industry now expects GDP to grow 7-9 per cent this year, up from between 4.5 and 6.5 per cent. Inflation projections were also raised by half a percentage point, to between 2.5 per cent and 3.5 per cent this year.

Mr Lee said inflationary pressures were due to higher energy prices and higher vehicle Certificates of Entitlement (COE) prices but he did not see 'broad-based' pressures on food, clothing, education services and daily necessities.

Soaring property prices and the 'very effervescent' mood in the housing market prompted a raft of measures in recent months to curb speculation and Mr Lee said that the government would be watching closely over the next few months to see if more action was needed. 'If we need to, we will. We have some instruments (available),' he said. Mr Lee said that the Nuclear Security Summit - which ended on Tuesday after some 50 world leaders signed off on an agreement to secure nuclear material within four years - was 'an important but not urgent' subject, but one which should be on the global agenda.

As a major port, Singapore plays a crucial role in intercepting illicit shipments of nuclear material and curbing nuclear terrorism. Mr Lee said earlier that several successful interdictions had been made - but noted yesterday that other countries also needed to make commitments. 'If we take (our duties) seriously, and others don't', then illicit materials will move into second-tier ports, he said. But crackdowns on radioactive material that could be used by terrorists would likely not affect Singapore's possible plans to utilise nuclear power. Modern reactors use low-grade uranium which can't be used for weapons, he said.

Mr Lee left for Chicago later yesterday where he will address the Chicago Council on Global Affairs on the second leg of a week-long US trip.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



One for the album: (from left) Spanish Prime Minister Jose Luis Rodriguez Zapatero, Mr Lee and German Chancellor Angela Merkel at a photo session at the Nuclear Security Summit

ST : Chinese official lauds HDB success

Apr 15, 2010

Chinese official lauds HDB success

SINGAPORE'S public housing programme is testament to the foresight of its leaders.

That was the view of Dr Fang Xinghai, head of the Shanghai Municipal Government financial services office, who arrived here on Sunday. He is visiting Singapore for a week as the 30th Lee Kuan Yew Exchange Fellow.

Speaking last night at a welcome dinner in his honour at the Shangri-La Hotel, Dr Fang noted that it was because of the foresight of Singapore's leaders some 40 years ago that 80 per cent of the population today have benefited from the public housing programme.

'In Shanghai, we're facing this (housing) problem. The middle class are squeezed by housing prices,' he said. 'While we don't have plans (for public housing) yet, I think it is already a bit too late for Shanghai because most of the land has already been leased out for the next 70 years.'

In the past three days, Dr Fang has visited various government ministries, private enterprises and even attended a Meet-the-People session in Jurong East. The session was hosted by Senior Minister of State (National Development and Education) Grace Fu, who is an MP for Jurong GRC.

Last night's welcome dinner was hosted by Public Service Commission chairman Eddie Teo, who is also chairman of the Lee Kuan Yew Exchange Fellowship. He described Dr Fang as someone who has made significant contributions to the development of China's financial sector, particularly in Shanghai.

Established in 1991, the fellowship programme invites outstanding individuals for high-level exchange visits to Singapore.

Candidates are picked based on their proven track record or extraordinary potential to contribute to the development of their nations and promote international understanding and goodwill.

Dr Fang is the second exchange fellow from China.

NUR DIANAH SUHAIMI

ST : Wooing buyers the low-interest rate way

Apr 15, 2010

Wooing buyers the low-interest rate way

Developers of 2 residential projects tie up with finance houses to offer enticing deals

By Joyce Teo

TWO developers have tied up with financial institutions to offer low interest rates to buyers of certain residential projects.

Hong Leong Finance is offering rates of as low as 0.98 per cent a year on loans to buyers of its sister firm City Developments' (CDL) The Residences at W Singapore at Sentosa Cove.

For the Waterbank at Dakota condominium, United Overseas Bank (UOB) is offering an enticing deal: the commonly used benchmark rate SOR (Singapore swap offer rate) plus 0 per cent during the construction period. The project is being developed by UOL group, which has close ties to UOB.

Hong Leong Finance's package for the 228-unit The Residences at W Singapore is based on a special variable home rate, currently 7.25 per cent a year. The first year's rate now stands at 0.98 per cent or the special rate minus 6.27 per cent. The rate for the second year stands at 1.58 per cent, the third 2.58 per cent and thereafter 3.28 per cent.

A Hong Leong Finance spokesman said the firm had also offered a special financing package for another CDL project, Cube 8, but the rates were not as low as those for The Residences at W Singapore.

CDL is part of the Hong Leong group.

At The Residences at W Singapore, those who take up the financing package get an extra perk: a one-year membership offering dining privileges at F&B outlets under the Millennium & Copthorne International group, said Hong Leong Group.

The Residences at W Singapore was released for sale late last month at $2,500 to $3,000 per sq ft.

CDL said then that it had sold about a quarter of the 56 units released for sale.

At the 99-year leasehold Waterbank at Dakota, the special financing package is an SOR-pegged home loan. SOR is now at 0.46 per cent.

UOB and UOL could not provide details of the financing package but industry sources put it at the three-month SOR rate plus 0 per cent for the duration of the construction period.

Once the project obtains a temporary occupation permit, the rate becomes SOR plus 1.35 per cent.

The 616-unit project has seen sales already crossing 370 units. Prices, too, have risen and now range from more than $1,000 psf to more than $1,300 psf.

UOB also offered special packages for previous UOL projects but the rates were not as low as for Waterbank at Dakota, sources said.

'Banks have always been very keen to tie up with developers for new launches. They will offer a very competitive rate in such exclusive arrangements,' said Knight Frank's managing director of residential services Peter Ow.

'But in these two cases, for rates to go that low, I must say I have been in the business for more than 25 years and I have not heard of such rates. The conditions may be rather stringent.'

joyceteo@sph.com.sg


--------------------------------------------------------------------------------

'I have been in the business for more than 25 years and I have not heard of such (low) rates. The conditions may be rather stringent.'

Mr Peter Ow, Knight Frank's managing director of residential services

BT : Top space at OUB Centre for restaurant player

Business Times - 15 Apr 2010

Top space at OUB Centre for restaurant player

By FELDA CHAY

A NEW tenant is set to move into the top floors of OUB Centre at One Raffles Place for 10 years, where it will operate the tower's viewing gallery and roof-top restaurant.

OUB Centre said yesterday that restaurant, cafe and bar operator Synergyinthesky will take up 16,000 sq ft of commercial space on the top three levels of the tower, where it recently added 6,000 sq ft of space for a viewing gallery.

The space was previously used for storage. The viewing gallery and restaurant will open in the third quarter of this year.

OUB Centre said the occupancy rate for the tower has risen to more than 90 per cent with Synergyinthesky, which is paying rent in line with current rates in the central business district and will pay gradual step-up increases over its 10-year tenancy.

According to a CB Richard Ellis report last month, Grade A office rents were $8 per sq ft per month in the first quarter of this year, down from $8.10 psf the quarter before.

OUB Centre is one of two buildings to be packaged into a development called One Raffles Place. The second building will be ready in 2011.

While office rents have been dipping, OUB Centre said it is confident the take-up rate in its new tower will be positive.

'Our marketing agents are already in discussion with potential tenant,' it said.

When completed next year, the new tower and the existing OUB Centre will together offer 760,000 sq ft of prime Grade A office space, with the second tower to provide some 350,000 sq ft of that space.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



New Raffles Place buzz: Synergyinthesky will move into OUB Centre, which is one of two buildings to be packaged into a development called One Raffles Place