Jun 6, 2010
CapitaLand to build affordable housing in China
By Robin Chan
Promising to be a long-term player in China, Singapore's property giant CapitaLand wants to make its name as a builder of affordable homes for the Chinese.
It will do this with standardised designs and more control over costs and land, CapitaLand's president and chief executive Liew Mun Leong revealed for the first time.
This approach will give it an edge over Chinese developers in the growing urban property scene, Mr Liew told reporters on the sidelines of the Asian Investment Conference and Exhibition (AICE) at Suntec Convention Centre yesterday.
The Chinese government is now reining in the property market with a slew of cooling measures. As a result, developers are looking to tap the growing demand in every urbanising city in China for lower priced homes.
CapitaLand currently has in the pipeline about 20,000 units in China. Its bid to build affordable homes is still in the planning stage, said Mr Liew.
'We have been building quite a fair bit of usually mid-range or higher-end range (homes). But we think the demand for affordable housing will go up,' said Mr Liew, who gave a keynote address on China's urbanisation and its impact on the property market there.
'I think we are able to bring designs that are standardised, we think that we can control costs in a more disciplined way, and we have got to try to discuss with local officials to get land... at a lower price, more affordable land.'
He said CapitaLand will be looking to build in 'any city that has demand'.
'If you look at the urbanisation... they will probably need 10 million to 15 million homes a year. That is a big number.'
Mr Liew also said that while there may be short-term uncertainty in China's property market, he believes that the market is sustainable in the long run.
Strong economic growth, rapid rural to urban migration, and high speed railway developments connecting more parts of China in shorter times will create more demand for homes.
'People ask, where is your best market outside Singapore? I can't think of any other market that is stronger than China. We will be a long-term player there.'
He acknowledged concerns over a property bubble there but said that, because of the country's size, different cities face different-sized property bubbles.
'You must segregate different cities and then you must segregate the high end from the normal end, which is not so bad because the affordability is still there. The bubble is not forming in that sense.'
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said going into affordable housing in China is a timely move for property developers given the cooling measures, though Singapore developers are likely to face many challenges.
'It's a numbers game as the developer has to sell a lot more and also has to compete with local players who are experienced. If they go into the second- and third-tier cities, they will be coming up against more local players.'
The two-day AICE started yesterday. Organised by the Securities Investors Association (Singapore), it allows listed companies and financial institutions to educate investors on current market trends.
Sunday, June 6, 2010
ST : Er, what is 'joint tenants'?
Jun 6, 2010
FINANCIAL QUOTIENT
Er, what is 'joint tenants'?
Where do you see this?
In estate planning and home ownership articles.
What does this mean?
Homeowners have two ways to specify how they share a property - as joint tenants or tenants-in-common.
When a couple hold a property under joint tenancy, ownership goes to the surviving party when one owner dies. If, say, the wife dies first, the property will belong solely to the husband.
But if the couple holds the property as tenants-in-common, their shares will go to their respective estates on their deaths.
Why is it important?
It is important to be clear on the holding status of your property as it will have a bearing on what happens to it when one owner dies.
This is especially so if one party has paid a larger share in buying a property and wants to have a bigger say on who should benefit from it when he dies.
Let's assume you paid more for your matrimonial home and it was bought in joint tenancy with your spouse. You discover he has an affair and file for a divorce.
It may be prudent at this point to change the holding status to that of a tenants-in-common so that you can will your share of the property to your children. If you fail to do so and you die before the property is split, ownership will go completely to your spouse, even if your will states otherwise.
So you want to use the term. Just say...
'My apartment is held by my sister and I as joint tenants. So if I should die first, she will get the entire property.'
Lorna Tan
FINANCIAL QUOTIENT
Er, what is 'joint tenants'?
Where do you see this?
In estate planning and home ownership articles.
What does this mean?
Homeowners have two ways to specify how they share a property - as joint tenants or tenants-in-common.
When a couple hold a property under joint tenancy, ownership goes to the surviving party when one owner dies. If, say, the wife dies first, the property will belong solely to the husband.
But if the couple holds the property as tenants-in-common, their shares will go to their respective estates on their deaths.
Why is it important?
It is important to be clear on the holding status of your property as it will have a bearing on what happens to it when one owner dies.
This is especially so if one party has paid a larger share in buying a property and wants to have a bigger say on who should benefit from it when he dies.
Let's assume you paid more for your matrimonial home and it was bought in joint tenancy with your spouse. You discover he has an affair and file for a divorce.
It may be prudent at this point to change the holding status to that of a tenants-in-common so that you can will your share of the property to your children. If you fail to do so and you die before the property is split, ownership will go completely to your spouse, even if your will states otherwise.
So you want to use the term. Just say...
'My apartment is held by my sister and I as joint tenants. So if I should die first, she will get the entire property.'
Lorna Tan
ST : Seaside living in Indonesia
Jun 6, 2010
property
Seaside living in Indonesia
But potential buyers of Bintan and Batam properties should be aware they won't get title deeds
By Lee Zhi Xin
Fancy living by the sea but cannot afford Sentosa Cove? You may want to check out two seaside residential developments in the two nearby Indonesian islands of Bintan and Batam.
In Bintan, which is a 45-minute ferry ride away from Tanah Merah Ferry Terminal, Singapore developer BU Holdings is marketing a 162-villa seaside project called Pantai Indah.
BU Holdings is a one-year-old company set up by Mr Chia Tek Yew, a former managing partner of PricewaterhouseCoopers Consulting, specially to develop the Lagoi Bay area of Bintan. Pantai Indah is its first project.
It is partnering Singapore-listed Gallant Venture, whose projects include Nirwana Gardens and Laguna Bintan, for this development.
Buyers get to choose from three- and four-bedroom villas which range from 400 sq m to 800 sq m in size. Prices start at $700,000 and go up to $1.8 million.
The more expensive beachfront villas come with lap pools and the option to install a jacuzzi and Roman bar, while the other units come with optional swimming pools. There is also a clubhouse for residents - with tennis courts and a multipurpose hall, among other facilities.
The project was designed by Singapore-based DP Architects, which counts VivoCity and Resorts World Sentosa as its clients.
The villas are situated near Lagoi Beach Village on the northern part of the island, which will have shopping and food and beverage outlets upon completion in the fourth quarter of 2012.
Established hotels and resorts nearby, such as Banyan Tree, also offer a combined 36 food and beverage outlets and four golf courses.
Ten of the project's 26 beachfront villas have been sold in its soft launch, mostly to expatriates based in Singapore who intend to use the villas for weekend stays or for retirement, said Mr Chia, chairman and chief executive officer of BU Holdings and a Singaporean. There are also some interested investors.
The project will be officially launched early next month.
Over in Batam, which is also less than an hour's ferry ride away, is Montigo Resorts, which offers 88 villas priced from $420,000, and 45 semi-detached and terrace houses priced from $1 million.
The villas are about 280 sq m in size while the houses are in excess of 560 sq m. The developer is Singapore-based KOP Group, whose portfolio includes Ritz-Carlton Residences and Hamilton Scotts.
Designed by Eco-id Consultancy, all homes come with the option of private swimming pools and jacuzzis.
Thirty-six of the 88 units launched for sale have been snapped up. As with Pantai Indah, buyers are both Singaporeans and expatriates based here. For investors, the project guarantees an 8 per cent rental yield, said chief executive officer of KOP Properties Leny Suparman.
Under Indonesia's property laws, foreigners cannot buy freehold land in the country.
Pantai Indah has a 30-year lease that is renewable for up to 84 years, provided owners use the land for residential purposes and pay a lease renewal fee of about 0.5 per cent of the tax assessment value of the property.
'Although the title, which attracts tax, doesn't transfer to the buyer under our lease scheme, it is pretty safe under Indonesian law. Even if the company holding the titles is sold or turns bankrupt, all leases have to be honoured,' Mr Chia assured.
Montigo Resorts also has a 30-year lease that is renewable for up to 80 years.
But Asia-Pacific head of Savills' international marketing division Julian Sedgwick warned about such leases: 'If anything happens in Indonesia and laws change, the title deeds won't be with you.'
His advice for potential buyers: 'Seek legal advice, and make sure you know who the landowner is. For properties which hand you the title deeds, do research to understand the difference between the five or six kinds of titles that exist in Indonesia and check that you have the right title.'
Six types of titles exist in Indonesia: the right to use the land (Hak Pakai), the right of ownership (Hak Milik), the right of cultivation (Hak Guna Usaha), the right of structure or building purposes (Hak Guna Bangunan), the right of management (Hak Pengelolaan) and the right of strata title ownership (Hak Milik atas Satuan Rumah Susun). Foreigners are allowed to own only the Hak Pakai title.
lzhixin@sph.com.sg
Units in Bintan's Pantai Indah (above), just like those in Batam's Montigo Resorts, are sold under their lease schemes, which means the properties' titles are not transferred to buyers. -- PHOTOS: KOP GROUP, BU HOLDINGS
property
Seaside living in Indonesia
But potential buyers of Bintan and Batam properties should be aware they won't get title deeds
By Lee Zhi Xin
Fancy living by the sea but cannot afford Sentosa Cove? You may want to check out two seaside residential developments in the two nearby Indonesian islands of Bintan and Batam.
In Bintan, which is a 45-minute ferry ride away from Tanah Merah Ferry Terminal, Singapore developer BU Holdings is marketing a 162-villa seaside project called Pantai Indah.
BU Holdings is a one-year-old company set up by Mr Chia Tek Yew, a former managing partner of PricewaterhouseCoopers Consulting, specially to develop the Lagoi Bay area of Bintan. Pantai Indah is its first project.
It is partnering Singapore-listed Gallant Venture, whose projects include Nirwana Gardens and Laguna Bintan, for this development.
Buyers get to choose from three- and four-bedroom villas which range from 400 sq m to 800 sq m in size. Prices start at $700,000 and go up to $1.8 million.
The more expensive beachfront villas come with lap pools and the option to install a jacuzzi and Roman bar, while the other units come with optional swimming pools. There is also a clubhouse for residents - with tennis courts and a multipurpose hall, among other facilities.
The project was designed by Singapore-based DP Architects, which counts VivoCity and Resorts World Sentosa as its clients.
The villas are situated near Lagoi Beach Village on the northern part of the island, which will have shopping and food and beverage outlets upon completion in the fourth quarter of 2012.
Established hotels and resorts nearby, such as Banyan Tree, also offer a combined 36 food and beverage outlets and four golf courses.
Ten of the project's 26 beachfront villas have been sold in its soft launch, mostly to expatriates based in Singapore who intend to use the villas for weekend stays or for retirement, said Mr Chia, chairman and chief executive officer of BU Holdings and a Singaporean. There are also some interested investors.
The project will be officially launched early next month.
Over in Batam, which is also less than an hour's ferry ride away, is Montigo Resorts, which offers 88 villas priced from $420,000, and 45 semi-detached and terrace houses priced from $1 million.
The villas are about 280 sq m in size while the houses are in excess of 560 sq m. The developer is Singapore-based KOP Group, whose portfolio includes Ritz-Carlton Residences and Hamilton Scotts.
Designed by Eco-id Consultancy, all homes come with the option of private swimming pools and jacuzzis.
Thirty-six of the 88 units launched for sale have been snapped up. As with Pantai Indah, buyers are both Singaporeans and expatriates based here. For investors, the project guarantees an 8 per cent rental yield, said chief executive officer of KOP Properties Leny Suparman.
Under Indonesia's property laws, foreigners cannot buy freehold land in the country.
Pantai Indah has a 30-year lease that is renewable for up to 84 years, provided owners use the land for residential purposes and pay a lease renewal fee of about 0.5 per cent of the tax assessment value of the property.
'Although the title, which attracts tax, doesn't transfer to the buyer under our lease scheme, it is pretty safe under Indonesian law. Even if the company holding the titles is sold or turns bankrupt, all leases have to be honoured,' Mr Chia assured.
Montigo Resorts also has a 30-year lease that is renewable for up to 80 years.
But Asia-Pacific head of Savills' international marketing division Julian Sedgwick warned about such leases: 'If anything happens in Indonesia and laws change, the title deeds won't be with you.'
His advice for potential buyers: 'Seek legal advice, and make sure you know who the landowner is. For properties which hand you the title deeds, do research to understand the difference between the five or six kinds of titles that exist in Indonesia and check that you have the right title.'
Six types of titles exist in Indonesia: the right to use the land (Hak Pakai), the right of ownership (Hak Milik), the right of cultivation (Hak Guna Usaha), the right of structure or building purposes (Hak Guna Bangunan), the right of management (Hak Pengelolaan) and the right of strata title ownership (Hak Milik atas Satuan Rumah Susun). Foreigners are allowed to own only the Hak Pakai title.
lzhixin@sph.com.sg
Units in Bintan's Pantai Indah (above), just like those in Batam's Montigo Resorts, are sold under their lease schemes, which means the properties' titles are not transferred to buyers. -- PHOTOS: KOP GROUP, BU HOLDINGS
CNA : Mass market housing in China remains affordable
Mass market housing in China remains affordable
By Desmond Wong | Posted: 05 June 2010 1650 hrs
SINGAPORE: Mass market housing in China remains affordable, and is unlikely to face the bubble pressures in the high-end segments and top-tier cities.
Speaking at an investor conference, CapitaLand CEO Liew Mun Leong added that opportunities in the retail property segment across the mainland continue to expand.
The China property market is hot. And fears of an asset bubble on the mainland have sparked government intervention and investor caution over Chinese real estate.
But Mr Liew Mun Leong said that the risk of a bubble is confined to a few segments of the market, like high-end residential and Tier 1 cities.
Mass market housing remains affordable, and is a segment CapitaLand that is interested in.
Mr Liew said; "It has not gone to the extent that it is not affordable. Today, they are going about 30-40 per cent. Which means they use 30 to 40 per cent of their income to pay for the housing mortgage. To us, that is something that is very fair. Even in Singapore, it is just below 40 per cent. So for that housing in China, it is fair. It is not alarming."
He added that in the first quarter of this year, almost half the home buyers across China were first time owners, while only a fifth were investors.
So, the chances of a bubble growing outside the high-end market or first-tier cities was unlikely.
He also expects retail property to gain ground.
At the moment, some 20 per cent of purchases in China are made through organised trade establishments like shopping malls, compared to the almost two-thirds in Singapore. As a result, the expectation for further growth in the China retail property segment is high.
Mr Liew also sees another emerging trend that is likely to spur growth in China's property market - namely improving transport links.
He said: "Once travelling time is reduced, urbanisation will increase, the economy will expand, domestic consumption will expand. The connections and mobility between the rural and urban areas will be enhanced, and this has a real economic impact, just like what happened in the US a hundred years ago."
According to government statistics, China aims to improve travel between locations to 9 per cent of existing times by 2014. - CNA/ms
By Desmond Wong | Posted: 05 June 2010 1650 hrs
SINGAPORE: Mass market housing in China remains affordable, and is unlikely to face the bubble pressures in the high-end segments and top-tier cities.
Speaking at an investor conference, CapitaLand CEO Liew Mun Leong added that opportunities in the retail property segment across the mainland continue to expand.
The China property market is hot. And fears of an asset bubble on the mainland have sparked government intervention and investor caution over Chinese real estate.
But Mr Liew Mun Leong said that the risk of a bubble is confined to a few segments of the market, like high-end residential and Tier 1 cities.
Mass market housing remains affordable, and is a segment CapitaLand that is interested in.
Mr Liew said; "It has not gone to the extent that it is not affordable. Today, they are going about 30-40 per cent. Which means they use 30 to 40 per cent of their income to pay for the housing mortgage. To us, that is something that is very fair. Even in Singapore, it is just below 40 per cent. So for that housing in China, it is fair. It is not alarming."
He added that in the first quarter of this year, almost half the home buyers across China were first time owners, while only a fifth were investors.
So, the chances of a bubble growing outside the high-end market or first-tier cities was unlikely.
He also expects retail property to gain ground.
At the moment, some 20 per cent of purchases in China are made through organised trade establishments like shopping malls, compared to the almost two-thirds in Singapore. As a result, the expectation for further growth in the China retail property segment is high.
Mr Liew also sees another emerging trend that is likely to spur growth in China's property market - namely improving transport links.
He said: "Once travelling time is reduced, urbanisation will increase, the economy will expand, domestic consumption will expand. The connections and mobility between the rural and urban areas will be enhanced, and this has a real economic impact, just like what happened in the US a hundred years ago."
According to government statistics, China aims to improve travel between locations to 9 per cent of existing times by 2014. - CNA/ms
Saturday, June 5, 2010
BT : CapitaLand CEO buys Interlace penthouse
Business Times - 05 Jun 2010
CapitaLand CEO buys Interlace penthouse
Unit costs $3.74m; son and daughter-in-law buy apartment unit for $2.47m; review and approval by audit committee
By KALPANA RASHIWALA
CAPITALAND Group president and chief executive officer Liew Mun Leong, and his son and daughter-in-law, have picked up two units at The Interlace at Depot Road/Alexandra Road for a total $6.2 million.
Mr Liew, who also sits on CapitaLand's board, paid about $3.74 million for a penthouse on the 23rd level. His purchase price works out to $1,092 per square foot for the 3,423 sq ft unit.
His son Karl and daughter-in-law Heather Lim Mei Ern bought a 2,476 sq ft, four-bedroom apartment on the 16th level for around $2.47 million or $996 psf.
The property giant said in a statutory filing yesterday that its audit committee has reviewed and approved the proposed sales and is satisfied that the number and terms of the proposed sales are fair and reasonable.
The committee, as well as CapitaLand's board, are satisfied that the transactions are not prejudicial to the interests of CapitaLand and its minority shareholders. Mr Liew had abstained from the board's review and approval of the transactions.
CapitaLand first began selling the 99-year leasehold project on the former Gillman Heights site in September last year. To date it has found buyers for about 500 of the 590 units released. The project has a total of 1,040 units.
The current price range is between $850 psf and $1,300 psf.
The project's unique design features thirty-one apartment blocks, each six-storey tall, which are stacked in a hexagonal arrangement to form eight large-scale courtyards.
The interlocking blocks resemble a 'vertical village' with cascading sky gardens and both private and public roof terraces.
CapitaLand is developing the project jointly with Hotel Properties and another partner.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
THE INTERLACE
The project's unique design features thirty-one apartment blocks, each six-storey tall, which are stacked in a hexagonal arrangement to form eight large-scale courtyards.
CapitaLand CEO buys Interlace penthouse
Unit costs $3.74m; son and daughter-in-law buy apartment unit for $2.47m; review and approval by audit committee
By KALPANA RASHIWALA
CAPITALAND Group president and chief executive officer Liew Mun Leong, and his son and daughter-in-law, have picked up two units at The Interlace at Depot Road/Alexandra Road for a total $6.2 million.
Mr Liew, who also sits on CapitaLand's board, paid about $3.74 million for a penthouse on the 23rd level. His purchase price works out to $1,092 per square foot for the 3,423 sq ft unit.
His son Karl and daughter-in-law Heather Lim Mei Ern bought a 2,476 sq ft, four-bedroom apartment on the 16th level for around $2.47 million or $996 psf.
The property giant said in a statutory filing yesterday that its audit committee has reviewed and approved the proposed sales and is satisfied that the number and terms of the proposed sales are fair and reasonable.
The committee, as well as CapitaLand's board, are satisfied that the transactions are not prejudicial to the interests of CapitaLand and its minority shareholders. Mr Liew had abstained from the board's review and approval of the transactions.
CapitaLand first began selling the 99-year leasehold project on the former Gillman Heights site in September last year. To date it has found buyers for about 500 of the 590 units released. The project has a total of 1,040 units.
The current price range is between $850 psf and $1,300 psf.
The project's unique design features thirty-one apartment blocks, each six-storey tall, which are stacked in a hexagonal arrangement to form eight large-scale courtyards.
The interlocking blocks resemble a 'vertical village' with cascading sky gardens and both private and public roof terraces.
CapitaLand is developing the project jointly with Hotel Properties and another partner.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
THE INTERLACE
The project's unique design features thirty-one apartment blocks, each six-storey tall, which are stacked in a hexagonal arrangement to form eight large-scale courtyards.
BT : MapletreeLog completes purchase of 2 properties
Business Times - 05 Jun 2010
MapletreeLog completes purchase of 2 properties
MAPLETREE Logistics Trust (MLT) has completed the acquisition of two properties - one in Vietnam for US$6.4 million and the other in Japan for 1.49 billion yen (S$22.8 million).
The purchase price and other acquisition costs were fully funded by debt, given the relatively small size of the acquisitions, MLT said.
The Vietnam property, called Mapletree Logistics Centre, is the trust's first property in Vietnam.
MLT bought the warehouse, in the Vietnam Singapore Industrial Park in Binh Doung Province, from its sponsor Mapletree Investments.
Vietnam is a 'market of immense opportunities', MLT said when it announced the purchase last month.
'The (trust's) manager sees Vietnam as an important key emerging market in Asia, with its competitive cost structure and burgeoning middle-class population, which presents attractive growth prospects,' MLT said in a May 31 statement.
'With growing demand for logistics space in Vietnam, the manager believes Vietnam will provide opportunities to our valued partners and tenants.' it added.
The second property, a warehouse in Japan called Sendai Centre, was also bought from Mapletree Investments. It is in Sendai City in Japan's Miyagi Prefecture.
The net property income yield of Sendai Centre is 6.8 per cent, which is higher than the implied property yield of MLT's existing Japan portfolio of 5 per cent, MLT said on May 31.
MLT's counter closed unchanged at 83 cents yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
MapletreeLog completes purchase of 2 properties
MAPLETREE Logistics Trust (MLT) has completed the acquisition of two properties - one in Vietnam for US$6.4 million and the other in Japan for 1.49 billion yen (S$22.8 million).
The purchase price and other acquisition costs were fully funded by debt, given the relatively small size of the acquisitions, MLT said.
The Vietnam property, called Mapletree Logistics Centre, is the trust's first property in Vietnam.
MLT bought the warehouse, in the Vietnam Singapore Industrial Park in Binh Doung Province, from its sponsor Mapletree Investments.
Vietnam is a 'market of immense opportunities', MLT said when it announced the purchase last month.
'The (trust's) manager sees Vietnam as an important key emerging market in Asia, with its competitive cost structure and burgeoning middle-class population, which presents attractive growth prospects,' MLT said in a May 31 statement.
'With growing demand for logistics space in Vietnam, the manager believes Vietnam will provide opportunities to our valued partners and tenants.' it added.
The second property, a warehouse in Japan called Sendai Centre, was also bought from Mapletree Investments. It is in Sendai City in Japan's Miyagi Prefecture.
The net property income yield of Sendai Centre is 6.8 per cent, which is higher than the implied property yield of MLT's existing Japan portfolio of 5 per cent, MLT said on May 31.
MLT's counter closed unchanged at 83 cents yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : More windows fall from high-rise flats
Business Times - 05 Jun 2010
More windows fall from high-rise flats
SEVENTY-ONE windows fell from high-rise flats and apartments last year, up from 44 in 2008, says the Building and Construction Authority (BCA).
This rise was attributed to an increase in the number of sliding windows that fell. Twenty-nine such windows fell in 2009, up from 16 in 2008. And this year, 40 per cent of the windows that fell between January and May were sliding windows.
Lack of maintenance and the failure to replace aluminium rivets in casement windows with stainless steel rivets are the main reasons windows fall.
People are encouraged to check and maintain their windows regularly and make sure sliding windows have safety features such as angle strips and stoppers installed. Window safety is vital in Singapore because more than 80 per cent of people here live in high-rise buildings.
June 6 and Dec 12 have been designated 'Window Safety Day', when home owners are encouraged to check their windows.
Under the Building Maintenance and Strata Management Act, should a window fall due to lack of maintenance, owners or tenants face a maximum fine of $10,000 and/or a jail term of up to a year. A fallen casement window found with aluminium rivets, which can corrode, can result in a penalty of up to $5,000 and/or a jail term of up to six months.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
More windows fall from high-rise flats
SEVENTY-ONE windows fell from high-rise flats and apartments last year, up from 44 in 2008, says the Building and Construction Authority (BCA).
This rise was attributed to an increase in the number of sliding windows that fell. Twenty-nine such windows fell in 2009, up from 16 in 2008. And this year, 40 per cent of the windows that fell between January and May were sliding windows.
Lack of maintenance and the failure to replace aluminium rivets in casement windows with stainless steel rivets are the main reasons windows fall.
People are encouraged to check and maintain their windows regularly and make sure sliding windows have safety features such as angle strips and stoppers installed. Window safety is vital in Singapore because more than 80 per cent of people here live in high-rise buildings.
June 6 and Dec 12 have been designated 'Window Safety Day', when home owners are encouraged to check their windows.
Under the Building Maintenance and Strata Management Act, should a window fall due to lack of maintenance, owners or tenants face a maximum fine of $10,000 and/or a jail term of up to a year. A fallen casement window found with aluminium rivets, which can corrode, can result in a penalty of up to $5,000 and/or a jail term of up to six months.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : China developers told to reserve more cash for tax
Business Times - 05 Jun 2010
China developers told to reserve more cash for tax
(Beijing)
CHINA has ordered developers to put more funds on deposit to pay tax on sales revenues, a move that will add pressure to their cash flows, domestic media reported yesterday.
The government has not raised the final value-added tax, but has instructed real estate firms to set more money aside in advance to reflect expectations for higher capital gains on the back of surging property prices.
This will eat into developers' cash flow and force them to move sooner to cut property prices, Li Wenjie, a director with the Centaline Property agency, told the China Business News.
The General Administration of Taxation urged cities that are not collecting pre-tax deposits to start doing so, according to a statement on its website (www.chinatax.gov.cn).
It also told local tax bureaux to make examples of up to five developments with high or fast-rising prices by making sure that their owners pay the exact amount of the required tax.
These marked the latest in a series of incremental moves by the government to rein in the red-hot real estate sector. The index of property shares on the Shanghai Stock Exchange was up 0.1 per cent at GMT 0317, in line with the broader market. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
China developers told to reserve more cash for tax
(Beijing)
CHINA has ordered developers to put more funds on deposit to pay tax on sales revenues, a move that will add pressure to their cash flows, domestic media reported yesterday.
The government has not raised the final value-added tax, but has instructed real estate firms to set more money aside in advance to reflect expectations for higher capital gains on the back of surging property prices.
This will eat into developers' cash flow and force them to move sooner to cut property prices, Li Wenjie, a director with the Centaline Property agency, told the China Business News.
The General Administration of Taxation urged cities that are not collecting pre-tax deposits to start doing so, according to a statement on its website (www.chinatax.gov.cn).
It also told local tax bureaux to make examples of up to five developments with high or fast-rising prices by making sure that their owners pay the exact amount of the required tax.
These marked the latest in a series of incremental moves by the government to rein in the red-hot real estate sector. The index of property shares on the Shanghai Stock Exchange was up 0.1 per cent at GMT 0317, in line with the broader market. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Room to grow
Business Times - 05 Jun 2010
PERSONAL SPACE
Room to grow
Ditching the dark, sophisticated look favoured by young professionals, the Ongs have made their family home modern, fuss-free andfamily-oriented. By Corinne Kerk
IT was late 2009 and the property market, after a brief slump, was making a rather quick and unexpected recovery. Like many other buyers, Eileen Wee and her husband, Vincent Ong, were caught unawares. Twice, they missed out on paying the deposit for a property because in both cases, they were just 30 minutes too late when trying to hand in their cheques. 'People were going for viewings with their cheque books,' Ms Wee remembers of what she now calls those 'close shaves'.
But as it turns out, that wasn't such a bad thing after all. Because eventually, the couple were led to an intermediate terrace house off Upper Thomson Road which held a lot of promise.
Like other intermediate terraces, there wasn't enough light coming into the three-storey, 3,600 sq ft home, which sits on 2,000 sq ft of land. However, the space was a nice, supersize upgrade from their previous home - a 1,000 sq ft, 2+1 apartment - and large enough to house three generations of family members - the couple, their two-year-old daughter, Kayla, Eileen's mother and Vincent's father. Plus, it would give Vincent what he'd always wanted - his own piece of land.
So they bought the property and set about turning it into a home.
First to go were the dark floor tiles and blue walls, which were ditched in favour of creamy white tiles and walls. Even the furniture and furnishings were in white, to enhance the sense of light and brightness in the house.
'Some people say the colour scheme of mainly white and a bit of black, is too stark or boring, but you can always add accents like colourful paintings,' says Ms Wee, a director in a boutique public relations and events company. Examples in her home include a dash of bright orange in the form of see-through plastic stools, as well as splashes of colour from paintings on the walls.
Next, several walls came tumbling down. There's the one separating the wet and dry kitchens, so more light can filter into the dining area. Another stood between a second floor bedroom and a corridor. Glass was used as a replacement, to help bring more sunshine into the home. 'The idea is to create space, bring in as much natural light and make it as clean-looking and airy as possible,' explains Vincent, a general manager in a multi-national company.
What they - and most guests - really like about the house though, is the double volume ceiling at the front half of the building, which gives it a 'loft feel' and allows for greater connectivity. 'So while we have our personal space, we can also see what's going on downstairs, even if we're on the second floor,' he says.
The high ceiling and windows also allow an almost unobstructed view from the second floor, of the trees that lead to Upper Peirce Reservoir. To light up the space, they picked a pair of Coral hanging lamps in natural bamboo plywood from Air Division, designed by New Zealander, David Trubridge.
'The lamps cast an interesting pattern on the walls at night,' adds Ms Wee. Only trouble is, owing to the height of the ceiling, they haven't yet figured out the best way to change the bulbs when they eventually blow. 'We'll probably need a super tall ladder!' she laughs.
While those lamps were chosen for their aesthetic effects, a practical must-have for the family is the dry kitchen with a good-sized island counter. 'My father-in-law likes to cook,' explains Ms Wee, who admits she's not so handy in the kitchen herself. 'The island is also the focal point for us when our church friends come over for meals. We have large groups of 40 to 50 people and we lay the food out on the counter and everyone gathers around.'
Another essential is her home office, which was created by knocking down a wall between a second-floor bedroom and what was a small, windowless study. The work area is now large, bright and airy, with light coming from windows at both ends of the room.
Ms Wee's favourite part of the house though, is the spacious living room, because 'after a long day, it's nice to come home and see Kayla playing there, jumping up and down'. 'The home has to have a feel-good factor for us, especially since we travel quite a bit,' she says. 'The layout is practical and everything is functional, from the kitchens to the walk-in wardrobe where we each have our own space.'
However, the house, into which they moved in January, is still a work in progress. 'If time permits, I want to get a lounge chair for my home office, put up a big mirror on the dining room wall, do up the balcony outside the master bedroom and buy more paintings, chairs and lights.'
What the couple learnt from renovating their previous home - which was 'pretty dark' and where the air-conditioner was constantly switched on - also guided them as they worked on this one. 'Then, we were typical of young professionals who wanted a dark, sophisticated look,' says Ms Wee. 'But this house is family-oriented. It is modern and fuss-free because we don't want clutter, and everyone has their own space. There are three generations here and we can live harmoniously together.'
And that, surely, makes having missed out on the first two properties a blessing in disguise.
btnews@sph.com.sg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
PERSONAL SPACE
Room to grow
Ditching the dark, sophisticated look favoured by young professionals, the Ongs have made their family home modern, fuss-free andfamily-oriented. By Corinne Kerk
IT was late 2009 and the property market, after a brief slump, was making a rather quick and unexpected recovery. Like many other buyers, Eileen Wee and her husband, Vincent Ong, were caught unawares. Twice, they missed out on paying the deposit for a property because in both cases, they were just 30 minutes too late when trying to hand in their cheques. 'People were going for viewings with their cheque books,' Ms Wee remembers of what she now calls those 'close shaves'.
But as it turns out, that wasn't such a bad thing after all. Because eventually, the couple were led to an intermediate terrace house off Upper Thomson Road which held a lot of promise.
Like other intermediate terraces, there wasn't enough light coming into the three-storey, 3,600 sq ft home, which sits on 2,000 sq ft of land. However, the space was a nice, supersize upgrade from their previous home - a 1,000 sq ft, 2+1 apartment - and large enough to house three generations of family members - the couple, their two-year-old daughter, Kayla, Eileen's mother and Vincent's father. Plus, it would give Vincent what he'd always wanted - his own piece of land.
So they bought the property and set about turning it into a home.
First to go were the dark floor tiles and blue walls, which were ditched in favour of creamy white tiles and walls. Even the furniture and furnishings were in white, to enhance the sense of light and brightness in the house.
'Some people say the colour scheme of mainly white and a bit of black, is too stark or boring, but you can always add accents like colourful paintings,' says Ms Wee, a director in a boutique public relations and events company. Examples in her home include a dash of bright orange in the form of see-through plastic stools, as well as splashes of colour from paintings on the walls.
Next, several walls came tumbling down. There's the one separating the wet and dry kitchens, so more light can filter into the dining area. Another stood between a second floor bedroom and a corridor. Glass was used as a replacement, to help bring more sunshine into the home. 'The idea is to create space, bring in as much natural light and make it as clean-looking and airy as possible,' explains Vincent, a general manager in a multi-national company.
What they - and most guests - really like about the house though, is the double volume ceiling at the front half of the building, which gives it a 'loft feel' and allows for greater connectivity. 'So while we have our personal space, we can also see what's going on downstairs, even if we're on the second floor,' he says.
The high ceiling and windows also allow an almost unobstructed view from the second floor, of the trees that lead to Upper Peirce Reservoir. To light up the space, they picked a pair of Coral hanging lamps in natural bamboo plywood from Air Division, designed by New Zealander, David Trubridge.
'The lamps cast an interesting pattern on the walls at night,' adds Ms Wee. Only trouble is, owing to the height of the ceiling, they haven't yet figured out the best way to change the bulbs when they eventually blow. 'We'll probably need a super tall ladder!' she laughs.
While those lamps were chosen for their aesthetic effects, a practical must-have for the family is the dry kitchen with a good-sized island counter. 'My father-in-law likes to cook,' explains Ms Wee, who admits she's not so handy in the kitchen herself. 'The island is also the focal point for us when our church friends come over for meals. We have large groups of 40 to 50 people and we lay the food out on the counter and everyone gathers around.'
Another essential is her home office, which was created by knocking down a wall between a second-floor bedroom and what was a small, windowless study. The work area is now large, bright and airy, with light coming from windows at both ends of the room.
Ms Wee's favourite part of the house though, is the spacious living room, because 'after a long day, it's nice to come home and see Kayla playing there, jumping up and down'. 'The home has to have a feel-good factor for us, especially since we travel quite a bit,' she says. 'The layout is practical and everything is functional, from the kitchens to the walk-in wardrobe where we each have our own space.'
However, the house, into which they moved in January, is still a work in progress. 'If time permits, I want to get a lounge chair for my home office, put up a big mirror on the dining room wall, do up the balcony outside the master bedroom and buy more paintings, chairs and lights.'
What the couple learnt from renovating their previous home - which was 'pretty dark' and where the air-conditioner was constantly switched on - also guided them as they worked on this one. 'Then, we were typical of young professionals who wanted a dark, sophisticated look,' says Ms Wee. 'But this house is family-oriented. It is modern and fuss-free because we don't want clutter, and everyone has their own space. There are three generations here and we can live harmoniously together.'
And that, surely, makes having missed out on the first two properties a blessing in disguise.
btnews@sph.com.sg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Markets down, opportunities up
Business Times - 05 Jun 2010
SHOW ME THE MONEY
Markets down, opportunities up
Real estate is beginning to offer attractive value for investors looking to buy, according to Citi
By TEH HOOI LING
SENIOR CORRESPONDENT
EXCESS liquidity, once so ample, has now decelerated to a point that we are witnessing a slight contraction, according to Citi's equity strategists Markus Rosgen and Elaine Chu in their recent corporate securities strategy report.
Stock prices tend to rise or fall in tandem with liquidity in the system.
According to Citi, there remains a risk that we have not seen the end of the excess liquidity contraction. But markets have had a tendency to respond ahead of a resumption of excess liquidity growth. As soon as it is no longer getting worse, i.e. the rate of liquidity contraction slows, markets will respond positively.
Purely on the basis of extrapolating the data, Mr Rosgen and Ms Chu reckon that this should be occurring late summer or early in the fourth quarter.
Periods of liquidity contraction are usually followed by expansion. And typically, contraction periods are shorter than expansionary periods. On average, liquidity contractions have lasted for 6.3 months. The longest cycle was 13 months in late 1994/95. The shortest was two months, in May and June 1989. March this year was the first month when a negative liquidity growth was registered.
I tried to look at the data slightly differently for the Singapore market. I compared the latest month's M2 money supply to the average M2 levels of the three months prior.
M2 includes currency in active circulation, demand deposits, fixed deposits, negotiable certificate of deposits, savings and other deposits.
The change in M2 relative to the average of the prior three months is also a good indicator of the market.
From the chart, you can see that indeed such a measurement of money supply does provide a good indication of where the market is heading. In the last 18 years, the biggest spike in M2 relative to its levels in the prior three months took place in November 1998. The stock market bottomed in August that year. Still, had one gone into the market in December, one would still be able to make 56 per cent return in the following six months.
Back in 1998, M2 had continued to surge in the following two months, in December 1998 and January 1999.
During the months when M2 contracted, the stock market too retreated. Unfortunately, from the chart, it appears that the change in M2 relative to its three months average generally is more a coincident indicator rather than a leading indicator.
In any case, the interesting thing to note is that in Singapore, the M2 has not seen a drop relative to its prior three months' average since February 2006.
This is an indication of sustained inflow of funds into the Singapore economy. It suggests that people are parking their funds here, getting ready to invest, either in Singapore or elsewhere in the region given the relatively stronger economic prospects. It is also a sign that the market is confident of the strength of the Singapore dollar.
Even in the last few months, when global markets are gripped by jitters, money continued to flow into the Singapore banking system. M2 grew by 9.8 per cent, 8.8 per cent, and 9.0 per cent from a year ago in February, March and April. The May numbers are not out yet.
But admittedly, the expansion rate has slowed slightly compared with the 10 and 11 per cent range chalked up in November 2009 to January 2010.
Still, the growth over the previous three months' average of 2.2 per cent, 0.9 per cent, 1.9 per cent, and 1.2 per cent in the first four months of this year remain decent.
What is it is that, when markets go down, opportunities go up. 'It is easier for realistically priced markets to rise than the other way round,' said Mr Rosgen and Ms Chu.
'Over the last few months, many things have begun to fall in place. Valuations have retreated from above average to below average, expectations from excessive towards the much more realistic. The US dollar, from being viewed as passe, to being now actually stronger. And liquidity, once so ample, has now actually contracted.'
Asian markets, excluding Japan, are now trading at 1.8 times book value, down from 2.2 times. As a region, valuations have moved from above average to just below average. And they are now where they should be at this stage of recovery, instead of being well ahead prior to the recent correction.
In terms of price-earnings ratio, the region is trading at 17.4 times on a trailing basis. This corresponds with valuations in between year one and year two of previous market recoveries.
Meanwhile, given the strong run-up in the US dollar, its further ascent will be more moderate. In this case, the deflationary pressure in the region will be lessened. This bodes well for the markets, according to Citi.
So what should investors buy?
Real estate either on a price-to-book value or enterprise value/sales bases is beginning to offer attractive value, said Mr Rosgen and Ms Chu. According to them, on both metrics, the sector has only been cheaper three times previously: in the early 1990s, the Asian crisis, and then in 2001. On an EV/sales basis, the sector has gone from expensive to cheap. 'Yes, it has been cheaper, but the risk/reward suggests that one should be slowly adding to this sector.'
Citi's credit research has this to say about China's real estate sector: 'We argue that Chinese property developers faced more challenges back then in October 2008 than what they are facing now, in terms of GDP growth trend, balance sheet liquidity, refinancing pressure, and access to capital markets, albeit policy is probably harsher now.'
In terms of ownership, the real estate has gone from being hot favourite on the back of further US dollar and reflation to now being a consensus underweight. 'The combination of being an underweight and having value makes the idea of beginning to dip one's feet in the water all the more alluring.'
But there remains risks: further tightening beyond the forecasts set by Citi's China team, further downward revisions to earnings and for the real estate sector, the net asset value. Lastly, valuations for China's stock markets, although more attractive now, have not triggered a buy yet.
· The writer is a CFA charterholder
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
UNDERWEIGHT SECTOR
Citi argues that Chinese property developers faced more challenges back in October 2008 than what they are facing now
SHOW ME THE MONEY
Markets down, opportunities up
Real estate is beginning to offer attractive value for investors looking to buy, according to Citi
By TEH HOOI LING
SENIOR CORRESPONDENT
EXCESS liquidity, once so ample, has now decelerated to a point that we are witnessing a slight contraction, according to Citi's equity strategists Markus Rosgen and Elaine Chu in their recent corporate securities strategy report.
Stock prices tend to rise or fall in tandem with liquidity in the system.
According to Citi, there remains a risk that we have not seen the end of the excess liquidity contraction. But markets have had a tendency to respond ahead of a resumption of excess liquidity growth. As soon as it is no longer getting worse, i.e. the rate of liquidity contraction slows, markets will respond positively.
Purely on the basis of extrapolating the data, Mr Rosgen and Ms Chu reckon that this should be occurring late summer or early in the fourth quarter.
Periods of liquidity contraction are usually followed by expansion. And typically, contraction periods are shorter than expansionary periods. On average, liquidity contractions have lasted for 6.3 months. The longest cycle was 13 months in late 1994/95. The shortest was two months, in May and June 1989. March this year was the first month when a negative liquidity growth was registered.
I tried to look at the data slightly differently for the Singapore market. I compared the latest month's M2 money supply to the average M2 levels of the three months prior.
M2 includes currency in active circulation, demand deposits, fixed deposits, negotiable certificate of deposits, savings and other deposits.
The change in M2 relative to the average of the prior three months is also a good indicator of the market.
From the chart, you can see that indeed such a measurement of money supply does provide a good indication of where the market is heading. In the last 18 years, the biggest spike in M2 relative to its levels in the prior three months took place in November 1998. The stock market bottomed in August that year. Still, had one gone into the market in December, one would still be able to make 56 per cent return in the following six months.
Back in 1998, M2 had continued to surge in the following two months, in December 1998 and January 1999.
During the months when M2 contracted, the stock market too retreated. Unfortunately, from the chart, it appears that the change in M2 relative to its three months average generally is more a coincident indicator rather than a leading indicator.
In any case, the interesting thing to note is that in Singapore, the M2 has not seen a drop relative to its prior three months' average since February 2006.
This is an indication of sustained inflow of funds into the Singapore economy. It suggests that people are parking their funds here, getting ready to invest, either in Singapore or elsewhere in the region given the relatively stronger economic prospects. It is also a sign that the market is confident of the strength of the Singapore dollar.
Even in the last few months, when global markets are gripped by jitters, money continued to flow into the Singapore banking system. M2 grew by 9.8 per cent, 8.8 per cent, and 9.0 per cent from a year ago in February, March and April. The May numbers are not out yet.
But admittedly, the expansion rate has slowed slightly compared with the 10 and 11 per cent range chalked up in November 2009 to January 2010.
Still, the growth over the previous three months' average of 2.2 per cent, 0.9 per cent, 1.9 per cent, and 1.2 per cent in the first four months of this year remain decent.
What is it is that, when markets go down, opportunities go up. 'It is easier for realistically priced markets to rise than the other way round,' said Mr Rosgen and Ms Chu.
'Over the last few months, many things have begun to fall in place. Valuations have retreated from above average to below average, expectations from excessive towards the much more realistic. The US dollar, from being viewed as passe, to being now actually stronger. And liquidity, once so ample, has now actually contracted.'
Asian markets, excluding Japan, are now trading at 1.8 times book value, down from 2.2 times. As a region, valuations have moved from above average to just below average. And they are now where they should be at this stage of recovery, instead of being well ahead prior to the recent correction.
In terms of price-earnings ratio, the region is trading at 17.4 times on a trailing basis. This corresponds with valuations in between year one and year two of previous market recoveries.
Meanwhile, given the strong run-up in the US dollar, its further ascent will be more moderate. In this case, the deflationary pressure in the region will be lessened. This bodes well for the markets, according to Citi.
So what should investors buy?
Real estate either on a price-to-book value or enterprise value/sales bases is beginning to offer attractive value, said Mr Rosgen and Ms Chu. According to them, on both metrics, the sector has only been cheaper three times previously: in the early 1990s, the Asian crisis, and then in 2001. On an EV/sales basis, the sector has gone from expensive to cheap. 'Yes, it has been cheaper, but the risk/reward suggests that one should be slowly adding to this sector.'
Citi's credit research has this to say about China's real estate sector: 'We argue that Chinese property developers faced more challenges back then in October 2008 than what they are facing now, in terms of GDP growth trend, balance sheet liquidity, refinancing pressure, and access to capital markets, albeit policy is probably harsher now.'
In terms of ownership, the real estate has gone from being hot favourite on the back of further US dollar and reflation to now being a consensus underweight. 'The combination of being an underweight and having value makes the idea of beginning to dip one's feet in the water all the more alluring.'
But there remains risks: further tightening beyond the forecasts set by Citi's China team, further downward revisions to earnings and for the real estate sector, the net asset value. Lastly, valuations for China's stock markets, although more attractive now, have not triggered a buy yet.
· The writer is a CFA charterholder
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
UNDERWEIGHT SECTOR
Citi argues that Chinese property developers faced more challenges back in October 2008 than what they are facing now
BT : E&O launches Penang condo in S'pore
Business Times - 05 Jun 2010
E&O launches Penang condo in S'pore
This is first time it is marketing new launch out of Penang
By CHEAH UI-HOON
SINGAPOREANS will soon have first dibs on a prime Penang condominium project with Eastern & Oriental Bhd setting up a sales office here.
The Kuala Lumpur-based property developer has had such good response from its previous roadtrips in Singapore, Hong Kong and London that it decided this time to launch sales of one tower of its seafront condominiums here.
'This is the first time we're marketing a new launch out of Penang because we've seen very good response in previous roadtrips,' says Eric Chan, E&O's executive director. 'It's timely now to introduce this to the region via Singapore.'
The company is launching sales of the second block - out of seven - of the RM1.8 billion (S$776.4 million) Quayside Seafront Resort Condominium development. Quayside is the last phase of the 240-acre Seri Tanjung Pinang development in north-east Penang, on reclaimed land.
Seri Tanjung Pinang features a guarded community of luxury seafront villas, semi-detached and courtyard terrace homes, condominiums and service apartments.
The Quayside condominiums - with seven blocks of seafront units - will sprawl across an 8.4 hectare site, with seven acres of landscaped gardens and 4.5 acres of a signature waterpark. The total site will cover 21 acres.
The project, which has 1,200 units, is expected to be completed in about seven to 10 years.
Quayside was officially unveiled in February. To date, almost 60 per cent of the units in the first tower have been sold, with foreign buyers accounting for about 10 per cent of sales. It is also just a short walk to the neighbouring Straits Quay, an international marina.
The estimated average price for a Tower 2 unit is close to RM800 per square foot, and units range from 1,137 sq ft for a one-bedroom apartment to 7,159 sq ft for a penthouse.
Prices for Tower 2 units start from RM811,000 for a one-bedroom unit and RM2,225,000 for a three-bedroom condominium.
As the first release, prices are primed to offer early birds a 5 per cent discount.
E&O is also confident of the potential capital appreciation based on the track record of its previous launches, says Mr Chan. 'Buyers of E&O properties have typically enjoyed an attractive level of capital appreciation. For instance, our Ariza courtyard terraces at Seri Tanjung Pinang have appreciated by approximately 30 per cent to 40 per cent since its maiden launch,' he says.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
PRIME PROPERTY
The Quayside Seafront Resort Condominium (above) is part of the Seri Tanjung Pinang development in north-east Penang which includes service apartments and a marina (next)
E&O launches Penang condo in S'pore
This is first time it is marketing new launch out of Penang
By CHEAH UI-HOON
SINGAPOREANS will soon have first dibs on a prime Penang condominium project with Eastern & Oriental Bhd setting up a sales office here.
The Kuala Lumpur-based property developer has had such good response from its previous roadtrips in Singapore, Hong Kong and London that it decided this time to launch sales of one tower of its seafront condominiums here.
'This is the first time we're marketing a new launch out of Penang because we've seen very good response in previous roadtrips,' says Eric Chan, E&O's executive director. 'It's timely now to introduce this to the region via Singapore.'
The company is launching sales of the second block - out of seven - of the RM1.8 billion (S$776.4 million) Quayside Seafront Resort Condominium development. Quayside is the last phase of the 240-acre Seri Tanjung Pinang development in north-east Penang, on reclaimed land.
Seri Tanjung Pinang features a guarded community of luxury seafront villas, semi-detached and courtyard terrace homes, condominiums and service apartments.
The Quayside condominiums - with seven blocks of seafront units - will sprawl across an 8.4 hectare site, with seven acres of landscaped gardens and 4.5 acres of a signature waterpark. The total site will cover 21 acres.
The project, which has 1,200 units, is expected to be completed in about seven to 10 years.
Quayside was officially unveiled in February. To date, almost 60 per cent of the units in the first tower have been sold, with foreign buyers accounting for about 10 per cent of sales. It is also just a short walk to the neighbouring Straits Quay, an international marina.
The estimated average price for a Tower 2 unit is close to RM800 per square foot, and units range from 1,137 sq ft for a one-bedroom apartment to 7,159 sq ft for a penthouse.
Prices for Tower 2 units start from RM811,000 for a one-bedroom unit and RM2,225,000 for a three-bedroom condominium.
As the first release, prices are primed to offer early birds a 5 per cent discount.
E&O is also confident of the potential capital appreciation based on the track record of its previous launches, says Mr Chan. 'Buyers of E&O properties have typically enjoyed an attractive level of capital appreciation. For instance, our Ariza courtyard terraces at Seri Tanjung Pinang have appreciated by approximately 30 per cent to 40 per cent since its maiden launch,' he says.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
PRIME PROPERTY
The Quayside Seafront Resort Condominium (above) is part of the Seri Tanjung Pinang development in north-east Penang which includes service apartments and a marina (next)
BT : URA sells 3 plots of heavy vehicle parks
Business Times - 04 Jun 2010
URA sells 3 plots of heavy vehicle parks
THE Urban Redevelopment Authority (URA) yesterday said that it has sold three land parcels of heavy vehicle parks at Bukit Batok West Avenue 5 and Senoko Drive through a public auction.
The 15,600 square metres heavy vehicle park site at Bukit Batok West Avenue 5 was sold to Uni Development for $5 million, or $30 per square foot (psf) of site area.
The two other land parcels, both at Senoko Drive, have site areas of 10,000 sq m each. One was sold to Huationg Inland Transport Service for $4 million, or $37 psf of site area; while the other was sold to Huationg (Asia) for $3 million, or $28 psf of site area.
The land parcels were launched for sale on May 10. The parcel at Bukit Batok West Avenue 5 was offered for sale on a 10-year lease while the other two parcels at Senoko Drive were offered for sale on 15-year leases.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
URA sells 3 plots of heavy vehicle parks
THE Urban Redevelopment Authority (URA) yesterday said that it has sold three land parcels of heavy vehicle parks at Bukit Batok West Avenue 5 and Senoko Drive through a public auction.
The 15,600 square metres heavy vehicle park site at Bukit Batok West Avenue 5 was sold to Uni Development for $5 million, or $30 per square foot (psf) of site area.
The two other land parcels, both at Senoko Drive, have site areas of 10,000 sq m each. One was sold to Huationg Inland Transport Service for $4 million, or $37 psf of site area; while the other was sold to Huationg (Asia) for $3 million, or $28 psf of site area.
The land parcels were launched for sale on May 10. The parcel at Bukit Batok West Avenue 5 was offered for sale on a 10-year lease while the other two parcels at Senoko Drive were offered for sale on 15-year leases.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : 20,258 HDB owners register for subletting
Business Times - 04 Jun 2010
20,258 HDB owners register for subletting
THE HDB has announced that as of April 30, 20,258 owners have registered their subletting of homes with HDB. This figure includes those with tenancies commencing before and after Feb 1, 2010.
On Jan 12 this year, HDB announced that with effect from Feb 1, 2010, flat owners who sublet rooms in their HDB flats will have to register with HDB within seven days of doing so. They are also required to notify HDB when they renew or terminate their subletting contracts, and when there are changes to their subtenant's particulars.
This rule applied to all and existing cases of rooms sublets.
For new cases of subletting from Feb 1, 2010, owners are required to register with the HDB within seven days from the start date of subletting.
For subletting tenancies that commenced before Feb 1, 2010, owners are given a six-month grace period from Feb 1, 2010 to register their subletting with HDB.
HDB may impose a penalty on those who flout the rule. The penalty may involve a fine of up to $3,000 or, for recalcitrant cases, compulsory acquisition of their flats.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
20,258 HDB owners register for subletting
THE HDB has announced that as of April 30, 20,258 owners have registered their subletting of homes with HDB. This figure includes those with tenancies commencing before and after Feb 1, 2010.
On Jan 12 this year, HDB announced that with effect from Feb 1, 2010, flat owners who sublet rooms in their HDB flats will have to register with HDB within seven days of doing so. They are also required to notify HDB when they renew or terminate their subletting contracts, and when there are changes to their subtenant's particulars.
This rule applied to all and existing cases of rooms sublets.
For new cases of subletting from Feb 1, 2010, owners are required to register with the HDB within seven days from the start date of subletting.
For subletting tenancies that commenced before Feb 1, 2010, owners are given a six-month grace period from Feb 1, 2010 to register their subletting with HDB.
HDB may impose a penalty on those who flout the rule. The penalty may involve a fine of up to $3,000 or, for recalcitrant cases, compulsory acquisition of their flats.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Subsales become big money-spinners in 2010
Business Times - 04 Jun 2010
Subsales become big money-spinners in 2010
A higher proportion of them are profitable and the gains have shot up, too
By KALPANA RASHIWALA
(SINGAPORE) Subsales are becoming more and more profitable.
At the low point of the market in the first quarter of 2009, only 67.5 per cent of the subsales of private apartments and condos yielded a profit.
That proportion grew to 95.1 per cent in Q1 this year and 96.1 per cent in April, according to Savills Singapore's analysis of URA Realis caveats data.
It attributes the trend to improving sentiment and prices in the first four months of this year.
Meanwhile, the average gain per unit from profitable subsales of non-landed private homes increased from $105,663 in Q1 last year to $284,764 in Q1 this year and $363,465 in April.
In terms of percentage return, the average gain from profitable subsales has risen from 13.1 per cent in Q1 2009 to 22.4 per cent in the first four months of 2010.
Subsales, often used as a proxy of speculative activity, refer to secondary-market transactions in projects that have yet to receive Certificate of Statutory Completion. This can take place three to 12 months after Temporary Occupation Permit (TOP).
Caveat matches that Savills traced up to May 12 this year show that the number of subsales that yielded gains exceeding $1 million shot up from seven transactions in Q4 last year to 32 in January-April 2010. Twentyfive of these lucrative deals this year were for properties in Districts 1 (which covers Marina Bay), 9 and 10 (in Singapore's traditional prime districts).
The highest subsale gain this year, of about $3.3 million, was reaped on a 30th-floor unit at Marina Bay Residences; it had been bought (also in the subsale market) in January 2007 for $4.97 million and divested in April this year for $8.29 million.
The next most profitable subsale this year involved a 13th-floor unit at The Oceanfront @ Sentosa Cove. The unit was bought from City Developments in July 2006 for $7.02 million and sold for $10.08 million in March 2010 - a gain of $3.06 million.
The Oceanfront recorded six subsales this year with gains of more than $1 million each. All these units were bought in 2006, before the big push in luxury home prices in 2007. Recent launches in the location - The Residences at W Singapore Sentosa Cove and Seascape - could have encouraged the Oceanfront subsales, said Savills Singapore director of prestige homes and investment Steven Ming.
Oceanfront received TOP in March this year, and it is often around this time that a flurry of subsale activity occurs as projects then have added appeal to buyers seeking properties that they can move into or rent out soon.
This year, up to April, One Amber in Katong had the most subsale transactions (51 deals), followed by The Parc Condominium in West Coast (41 deals) and Marina Bay Residences (MBR) with 39 subsales. One Amber and MBR received TOP in April; The Parc Condominium's TOP is expected in Q3.
Those who bought units on the old deferred payment scheme may also find it opportune to cash out of their investment instead of paying the bulk of the purchase price to the developer at TOP and having to find a bank loan and, possibly, a tenant.
Savills calculated profit or loss as the difference between sale and purchase prices, without factoring in other expenses such as agent fees and stamp duty.
It found 919 subsale caveats for non-landed private homes in Q1 this year, as reflected in URA's Realis system as at May 12. Of these, it found previous caveat records for 86.1 per cent or 791 units. It then compared the latest subsale price with the earlier price. Out of 203 subsale caveats for April, it found earlier caveat matches for 87.7 per cent.
Less than 5 per cent of subsales in January-April 2010 incurred a loss. On average, the loss was $215,802, down from $343,982 in Q1 2009.
The biggest subsale loss this year was for a unit at Leonie Parc View that sold in February for $5 million, or $1.24 million below the $6.24 million it had previously transacted at in July 2007. The seller had bought his unit from the developer.
The 919 subsale caveats in Q1 this year reflect a pick-up from 749 deals in Q4 2009. Savills' Mr Ming attributes this to spillover from strong buying sentiment in the primary market in Q1.
'We believe new launches, which are usually at higher prices, could also have fuelled subsales in projects launched earlier in the vicinity,' says Mr Ming.
Knight Frank managing director (residential services) Peter Ow predicts subsale volumes are likely to soften over the next six months amid worries about the fallout from Europe's economic woes. At home, there are concerns about an increase in private housing supply from the bumper state land sales scheduled for H2 2010.
The proportion of profitable subsale deals as well as profit margins could ease as prices enter a period of 'stabilisation', Mr Ow says.
Much will also depend on the entry point of these specuvestors. 'If they bought in 2008 or early 2009, it may still be possible to walk away with gains.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Subsales become big money-spinners in 2010
A higher proportion of them are profitable and the gains have shot up, too
By KALPANA RASHIWALA
(SINGAPORE) Subsales are becoming more and more profitable.
At the low point of the market in the first quarter of 2009, only 67.5 per cent of the subsales of private apartments and condos yielded a profit.
That proportion grew to 95.1 per cent in Q1 this year and 96.1 per cent in April, according to Savills Singapore's analysis of URA Realis caveats data.
It attributes the trend to improving sentiment and prices in the first four months of this year.
Meanwhile, the average gain per unit from profitable subsales of non-landed private homes increased from $105,663 in Q1 last year to $284,764 in Q1 this year and $363,465 in April.
In terms of percentage return, the average gain from profitable subsales has risen from 13.1 per cent in Q1 2009 to 22.4 per cent in the first four months of 2010.
Subsales, often used as a proxy of speculative activity, refer to secondary-market transactions in projects that have yet to receive Certificate of Statutory Completion. This can take place three to 12 months after Temporary Occupation Permit (TOP).
Caveat matches that Savills traced up to May 12 this year show that the number of subsales that yielded gains exceeding $1 million shot up from seven transactions in Q4 last year to 32 in January-April 2010. Twentyfive of these lucrative deals this year were for properties in Districts 1 (which covers Marina Bay), 9 and 10 (in Singapore's traditional prime districts).
The highest subsale gain this year, of about $3.3 million, was reaped on a 30th-floor unit at Marina Bay Residences; it had been bought (also in the subsale market) in January 2007 for $4.97 million and divested in April this year for $8.29 million.
The next most profitable subsale this year involved a 13th-floor unit at The Oceanfront @ Sentosa Cove. The unit was bought from City Developments in July 2006 for $7.02 million and sold for $10.08 million in March 2010 - a gain of $3.06 million.
The Oceanfront recorded six subsales this year with gains of more than $1 million each. All these units were bought in 2006, before the big push in luxury home prices in 2007. Recent launches in the location - The Residences at W Singapore Sentosa Cove and Seascape - could have encouraged the Oceanfront subsales, said Savills Singapore director of prestige homes and investment Steven Ming.
Oceanfront received TOP in March this year, and it is often around this time that a flurry of subsale activity occurs as projects then have added appeal to buyers seeking properties that they can move into or rent out soon.
This year, up to April, One Amber in Katong had the most subsale transactions (51 deals), followed by The Parc Condominium in West Coast (41 deals) and Marina Bay Residences (MBR) with 39 subsales. One Amber and MBR received TOP in April; The Parc Condominium's TOP is expected in Q3.
Those who bought units on the old deferred payment scheme may also find it opportune to cash out of their investment instead of paying the bulk of the purchase price to the developer at TOP and having to find a bank loan and, possibly, a tenant.
Savills calculated profit or loss as the difference between sale and purchase prices, without factoring in other expenses such as agent fees and stamp duty.
It found 919 subsale caveats for non-landed private homes in Q1 this year, as reflected in URA's Realis system as at May 12. Of these, it found previous caveat records for 86.1 per cent or 791 units. It then compared the latest subsale price with the earlier price. Out of 203 subsale caveats for April, it found earlier caveat matches for 87.7 per cent.
Less than 5 per cent of subsales in January-April 2010 incurred a loss. On average, the loss was $215,802, down from $343,982 in Q1 2009.
The biggest subsale loss this year was for a unit at Leonie Parc View that sold in February for $5 million, or $1.24 million below the $6.24 million it had previously transacted at in July 2007. The seller had bought his unit from the developer.
The 919 subsale caveats in Q1 this year reflect a pick-up from 749 deals in Q4 2009. Savills' Mr Ming attributes this to spillover from strong buying sentiment in the primary market in Q1.
'We believe new launches, which are usually at higher prices, could also have fuelled subsales in projects launched earlier in the vicinity,' says Mr Ming.
Knight Frank managing director (residential services) Peter Ow predicts subsale volumes are likely to soften over the next six months amid worries about the fallout from Europe's economic woes. At home, there are concerns about an increase in private housing supply from the bumper state land sales scheduled for H2 2010.
The proportion of profitable subsale deals as well as profit margins could ease as prices enter a period of 'stabilisation', Mr Ow says.
Much will also depend on the entry point of these specuvestors. 'If they bought in 2008 or early 2009, it may still be possible to walk away with gains.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Making a quick killing from subsales
Business Times - 04 Jun 2010
Making a quick killing from subsales
Many had owned units for less than a year before they sold them for profit
By KALPANA RASHIWALA
(SINGAPORE) Nearly a quarter of those who profitably disposed of a condo or private apartment in the subsale market in the first four months of this year had owned the unit for less than a year, according to an analysis by Savills Singapore.
This is higher than the 19.7 per cent who had held their properties for under a year before divesting them in the subsale market at a profit in Q4 2009. The figure for Q3 last year was 18.2 per cent.
Market watchers suggest the higher proportion of subsales involving a sub-one year holding period may have underscored the Government's announcement on Feb 19 imposing a seller's stamp duty on those who flip a private home within a year of purchase in a bid to deter property speculation.
Subsales - which refer to secondary market transactions involving projects that have yet to receive Certificate of Statutory Completion - are tracked as a gauge of property speculation.
One of the more lucrative subsale deals this year with a sub-one year holding period involved a unit of about 3,900 sq ft at Urban Suites on Hullet Road that was bought from the developer in January this year for $8.8 million and sold for $10.9 million in March, resulting in a cool $2.1 million profit in just two months.
Then there was a 46th level unit at Marina Bay Residences that transacted in the subsale market in March for nearly $8.3 million - nearly $2.2 million above what the seller had paid for the unit just seven months earlier (also in the subsale market).
Savills, which studied URA Realis caveats data up to May 12 this year, traced 969 subsale deals for non-landed homes for the first four months of this year for which there were caveats of previous transactions. From these matches, it identified 923 gains and of these, 224 or 24.3 per cent involved holding periods below a year.
Among the 46 subsales in the first four months of 2010 that incurred a loss, just one unit had been kept for under a year.
Savills also looked at holding periods for overall subsale deals, regardless of whether they were profitable, and this shows that 50.2 per cent of the 969 properties disposed of in the subsale market in the first four months of 2010 had been bought in 2007, the previous peak year for the property market. Another 25.8 per cent were acquired last year and 13.4 per cent in 2006.
Knight Frank managing director (residential services) Peter Ow said: 'Going ahead, it will be harder to make short-term gains from property as we expect the market to stabilise.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Making a quick killing from subsales
Many had owned units for less than a year before they sold them for profit
By KALPANA RASHIWALA
(SINGAPORE) Nearly a quarter of those who profitably disposed of a condo or private apartment in the subsale market in the first four months of this year had owned the unit for less than a year, according to an analysis by Savills Singapore.
This is higher than the 19.7 per cent who had held their properties for under a year before divesting them in the subsale market at a profit in Q4 2009. The figure for Q3 last year was 18.2 per cent.
Market watchers suggest the higher proportion of subsales involving a sub-one year holding period may have underscored the Government's announcement on Feb 19 imposing a seller's stamp duty on those who flip a private home within a year of purchase in a bid to deter property speculation.
Subsales - which refer to secondary market transactions involving projects that have yet to receive Certificate of Statutory Completion - are tracked as a gauge of property speculation.
One of the more lucrative subsale deals this year with a sub-one year holding period involved a unit of about 3,900 sq ft at Urban Suites on Hullet Road that was bought from the developer in January this year for $8.8 million and sold for $10.9 million in March, resulting in a cool $2.1 million profit in just two months.
Then there was a 46th level unit at Marina Bay Residences that transacted in the subsale market in March for nearly $8.3 million - nearly $2.2 million above what the seller had paid for the unit just seven months earlier (also in the subsale market).
Savills, which studied URA Realis caveats data up to May 12 this year, traced 969 subsale deals for non-landed homes for the first four months of this year for which there were caveats of previous transactions. From these matches, it identified 923 gains and of these, 224 or 24.3 per cent involved holding periods below a year.
Among the 46 subsales in the first four months of 2010 that incurred a loss, just one unit had been kept for under a year.
Savills also looked at holding periods for overall subsale deals, regardless of whether they were profitable, and this shows that 50.2 per cent of the 969 properties disposed of in the subsale market in the first four months of 2010 had been bought in 2007, the previous peak year for the property market. Another 25.8 per cent were acquired last year and 13.4 per cent in 2006.
Knight Frank managing director (residential services) Peter Ow said: 'Going ahead, it will be harder to make short-term gains from property as we expect the market to stabilise.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Sub-letting room? Grace period to register ends soon
Jun 4, 2010
Sub-letting room? Grace period to register ends soon
By Lee Yen Nee
THE Housing Board yesterday reminded flat owners who sub-let rooms before Feb 1 that they have until July 31 to register their tenants' details with the HDB.
All flat owners are now required to register the sub-letting arrangements, under a new rule introduced earlier this year.
From Feb 1, anyone sub-letting a room has been given seven days to register, but a six-month grace period expiring July 31 was granted for those who had sub-let before the beginning of February.
In all, 20,258 flat owners had registered their subletting of rooms with the HDB, as of April 30.
That figure includes flat owners with sub-letting tenancies commencing both before and from Feb 1, the board said.
Part of the reason the new rule was introduced was to try to curb the worsening activities of loan sharks.
Some people who borrow from loan sharks and who rent rooms in HDB flats have been known to use their former addresses when borrowing.
That leaves a flat's new occupants to face possible harassment from the illegal moneylenders.
The rule was implemented to track those who borrow from loan sharks.
'There is no need to seek prior approval for subletting of rooms,' the HDB said.
However, flat owners are required to notify the HDB when they renew or terminate their sub-letting contracts, as well as when a new sub-let starts.
Registration can be done online or at any HDB branch office.
The board said that those who flout the rule may be fined up to $3,000. For recalcitrant cases, compulsory acquisition of their flats could be carried out.
Sub-letting room? Grace period to register ends soon
By Lee Yen Nee
THE Housing Board yesterday reminded flat owners who sub-let rooms before Feb 1 that they have until July 31 to register their tenants' details with the HDB.
All flat owners are now required to register the sub-letting arrangements, under a new rule introduced earlier this year.
From Feb 1, anyone sub-letting a room has been given seven days to register, but a six-month grace period expiring July 31 was granted for those who had sub-let before the beginning of February.
In all, 20,258 flat owners had registered their subletting of rooms with the HDB, as of April 30.
That figure includes flat owners with sub-letting tenancies commencing both before and from Feb 1, the board said.
Part of the reason the new rule was introduced was to try to curb the worsening activities of loan sharks.
Some people who borrow from loan sharks and who rent rooms in HDB flats have been known to use their former addresses when borrowing.
That leaves a flat's new occupants to face possible harassment from the illegal moneylenders.
The rule was implemented to track those who borrow from loan sharks.
'There is no need to seek prior approval for subletting of rooms,' the HDB said.
However, flat owners are required to notify the HDB when they renew or terminate their sub-letting contracts, as well as when a new sub-let starts.
Registration can be done online or at any HDB branch office.
The board said that those who flout the rule may be fined up to $3,000. For recalcitrant cases, compulsory acquisition of their flats could be carried out.
ST : China 'mulling over property tax'
Jun 4, 2010
China 'mulling over property tax'
BEIJING: A senior official with China's powerful planning agency has confirmed media reports that the country is studying a possible nationwide property tax, but has no specific plan, China Business News reported yesterday.
It also said Shanghai was considering introducing the tax in the city on a trial basis. Previous media reports that China could expand the property tax, now levied on commercial property, to cover the residential sector have driven down the Shanghai Composite Index by over 20 per cent this year.
The newspaper, citing an unnamed senior official at the National Development and Reform Commission, said there was no timetable yet for any expanded tax rollout. The official said China encouraged trials by local governments to launch the tax but added there was no specific plan for a nationwide programme.
China introduced fresh steps to curb excessive housing price rises in some cities in April, including higher downpayments and mortgage rates. These measures have driven down the number of transactions but prices have remained near record levels.
Most developers are postponing project launch dates and are waiting to see market developments before pricing new projects. Real estate prices rose a record 12.8 per cent in April from a year earlier, the National Bureau of Statistics said on May 11.
'The government should have put in tougher enforcement earlier to prevent the high prices,' said Mr Lu Qilin, a Shanghai-based researcher at property consultancy UWin. 'If the government doesn't stop this soon, the bubble will burst.'
REUTERS, BLOOMBERG
China 'mulling over property tax'
BEIJING: A senior official with China's powerful planning agency has confirmed media reports that the country is studying a possible nationwide property tax, but has no specific plan, China Business News reported yesterday.
It also said Shanghai was considering introducing the tax in the city on a trial basis. Previous media reports that China could expand the property tax, now levied on commercial property, to cover the residential sector have driven down the Shanghai Composite Index by over 20 per cent this year.
The newspaper, citing an unnamed senior official at the National Development and Reform Commission, said there was no timetable yet for any expanded tax rollout. The official said China encouraged trials by local governments to launch the tax but added there was no specific plan for a nationwide programme.
China introduced fresh steps to curb excessive housing price rises in some cities in April, including higher downpayments and mortgage rates. These measures have driven down the number of transactions but prices have remained near record levels.
Most developers are postponing project launch dates and are waiting to see market developments before pricing new projects. Real estate prices rose a record 12.8 per cent in April from a year earlier, the National Bureau of Statistics said on May 11.
'The government should have put in tougher enforcement earlier to prevent the high prices,' said Mr Lu Qilin, a Shanghai-based researcher at property consultancy UWin. 'If the government doesn't stop this soon, the bubble will burst.'
REUTERS, BLOOMBERG
TODAY ONLINE : Action won't be taken against agent, as no scare tactics involved: ERA
Action won't be taken against agent, as no scare tactics involved: ERA
05:55 AM Jun 04, 2010
by Joanne Chan
SINGAPORE - Real estate firm ERA has reminded its property agents to be careful in their choice of words when it comes to written communications.
In an email to its more than 3,000 agents on Tuesday, ERA's associate director of Asia-Pacific, Mr Eugene Lim, said agents have a responsibility to communicate the latest property market information to customers.
But agents are not to "twist the information and use them as scare tactics on customers".
The email added that agents should "never use overly strong words like the market is going to crash".
This follows a report carried by MediaCorp on Tuesday that some agents are employing "scare tactics" to close deals.
Emails forwarded to MediaCorp earlier detailed how some agents are using the Government's recent land sales as a bargaining tool to lower client expectations of property prices.
One agent reportedly disclosed that a deal was closed after the client was told that the "market is going to crash".
ERA said it had investigated the alleged complaint and found that the transaction was sealed at market price, fully supported by a bank valuation.
The property firm added that no scare tactics were involved. As such, no disciplinary action will be taken against the agent.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jun 04, 2010
by Joanne Chan
SINGAPORE - Real estate firm ERA has reminded its property agents to be careful in their choice of words when it comes to written communications.
In an email to its more than 3,000 agents on Tuesday, ERA's associate director of Asia-Pacific, Mr Eugene Lim, said agents have a responsibility to communicate the latest property market information to customers.
But agents are not to "twist the information and use them as scare tactics on customers".
The email added that agents should "never use overly strong words like the market is going to crash".
This follows a report carried by MediaCorp on Tuesday that some agents are employing "scare tactics" to close deals.
Emails forwarded to MediaCorp earlier detailed how some agents are using the Government's recent land sales as a bargaining tool to lower client expectations of property prices.
One agent reportedly disclosed that a deal was closed after the client was told that the "market is going to crash".
ERA said it had investigated the alleged complaint and found that the transaction was sealed at market price, fully supported by a bank valuation.
The property firm added that no scare tactics were involved. As such, no disciplinary action will be taken against the agent.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST : China firm places bullish top bid for Upper Serangoon site
Jun 3, 2010
China firm places bullish top bid for Upper Serangoon site
By Joyce Teo
THE tender for a plum 0.5ha residential development site near Potong Pasir MRT station yesterday drew 15 bidders and a higher-than-expected top bid.
This keen interest came despite a recent announcement by the Government that it would release a record amount of development land in the second half year.
China-based Qingdao Construction (Singapore) put in an aggressive bid of $607.20 per sq ft per plot ratio (psf ppr) or $113.74 million. It came in just above the second highest bid of $590.50 psf ppr or $110.6 million from Malaysia's SP Setia International.
Apart from these two top foreign bids, the rest of the bids were largely within or even below expectations.
The 99-year leasehold site, sandwiched between Upper Serangoon Road and Pheng Geck Avenue, has a maximum gross floor area of 187,313 sq ft.
Analysts had said that it could fetch $450-$560 psf ppr or $84 million-$105 million. With its proximity to an MRT station, it was expected to be very popular.
It is the second land tender to close after the Government announced a record release of sites for sale in the second half.
The first - an executive condo (EC) plot in Sengkang - attracted a record top bid for EC land last week, though the other bids were within expectations.
Given the ample upcoming residential supply, the response of 15 bids is above market expectations and the quantums of the top few bids are bullish, said CBRE Research executive director Li Hiaw Ho.
'The relatively smaller size of the site, compared to the previous sites offered by the state, is an advantage because it does translate to a lower price quantum.'
Colliers International director for research and advisory Tay Huey Ying said the top bid is the second highest ever received for a non-landed housing plot in a city fringe area. It is just 5 per cent off the $639 psf ppr bid for the Ascentia Sky site in Alexandra Road in late 2007.
Other bidders included Koh Brothers, Far East Organization, Allgreen Properties and MCL Land. Hong Leong Holdings unit Kingston Development made the lowest bid of $320.70 psf ppr or $60.1 million.
Qingdao Construction, experts say, was a lot more aggressive as it had failed to win any sites in a few recent tenders.
Its managing director Zuo Hai Bin told The Straits Times it would have missed out had it made a lower bid. He said it plans to build about 150-160 units, mostly two- to three-bedroom units. The break-even cost is about $950 psf.
The Qingdao group has, through Qingjian Realty, previously developed Natura Loft, a HDB design, build and sell scheme project in Bishan. Apartments on the Upper Serangoon site could sell for possibly $1,100-$1,200 psf, experts said.
In January-April this year, sub-sale units in nearby 8@Woodleigh and Woodsville 28 went for $880-$1,130 psf.
'The top two bidders are foreign players eager to gain a foothold in Singapore's growing property market,' said DTZ's head of South-east Asia research, Ms Chua Chor Hoon. Local developers are unlikely to bid as keenly given that the property market has quietened down last month and with the record government land release, she added.
The Upper Serangoon site was on the confirmed list, which means that it was scheduled for tender without developers having to indicate interest first.
China firm places bullish top bid for Upper Serangoon site
By Joyce Teo
THE tender for a plum 0.5ha residential development site near Potong Pasir MRT station yesterday drew 15 bidders and a higher-than-expected top bid.
This keen interest came despite a recent announcement by the Government that it would release a record amount of development land in the second half year.
China-based Qingdao Construction (Singapore) put in an aggressive bid of $607.20 per sq ft per plot ratio (psf ppr) or $113.74 million. It came in just above the second highest bid of $590.50 psf ppr or $110.6 million from Malaysia's SP Setia International.
Apart from these two top foreign bids, the rest of the bids were largely within or even below expectations.
The 99-year leasehold site, sandwiched between Upper Serangoon Road and Pheng Geck Avenue, has a maximum gross floor area of 187,313 sq ft.
Analysts had said that it could fetch $450-$560 psf ppr or $84 million-$105 million. With its proximity to an MRT station, it was expected to be very popular.
It is the second land tender to close after the Government announced a record release of sites for sale in the second half.
The first - an executive condo (EC) plot in Sengkang - attracted a record top bid for EC land last week, though the other bids were within expectations.
Given the ample upcoming residential supply, the response of 15 bids is above market expectations and the quantums of the top few bids are bullish, said CBRE Research executive director Li Hiaw Ho.
'The relatively smaller size of the site, compared to the previous sites offered by the state, is an advantage because it does translate to a lower price quantum.'
Colliers International director for research and advisory Tay Huey Ying said the top bid is the second highest ever received for a non-landed housing plot in a city fringe area. It is just 5 per cent off the $639 psf ppr bid for the Ascentia Sky site in Alexandra Road in late 2007.
Other bidders included Koh Brothers, Far East Organization, Allgreen Properties and MCL Land. Hong Leong Holdings unit Kingston Development made the lowest bid of $320.70 psf ppr or $60.1 million.
Qingdao Construction, experts say, was a lot more aggressive as it had failed to win any sites in a few recent tenders.
Its managing director Zuo Hai Bin told The Straits Times it would have missed out had it made a lower bid. He said it plans to build about 150-160 units, mostly two- to three-bedroom units. The break-even cost is about $950 psf.
The Qingdao group has, through Qingjian Realty, previously developed Natura Loft, a HDB design, build and sell scheme project in Bishan. Apartments on the Upper Serangoon site could sell for possibly $1,100-$1,200 psf, experts said.
In January-April this year, sub-sale units in nearby 8@Woodleigh and Woodsville 28 went for $880-$1,130 psf.
'The top two bidders are foreign players eager to gain a foothold in Singapore's growing property market,' said DTZ's head of South-east Asia research, Ms Chua Chor Hoon. Local developers are unlikely to bid as keenly given that the property market has quietened down last month and with the record government land release, she added.
The Upper Serangoon site was on the confirmed list, which means that it was scheduled for tender without developers having to indicate interest first.
Thursday, June 3, 2010
BT : Retreat in US property after tax credit removed short-lived: analysts
Business Times - 03 Jun 2010
Retreat in US property after tax credit removed short-lived: analysts
Low mortgage rates and improving jobs market will underpin the sector
(NEW YORK) The retreat in the US housing market after the government halted its hefty tax credit in April should be short-lived, say analysts, and the market may resume its path to stability.
Home sales surged in April before the month-end deadline to take advantage of the credit and demand dropped sharply in the following weeks. But mortgage rates near record lows and an improving jobs market will help underpin the sector, even without the artificial stimulus of tax breaks, said analysts.
A housing sector rebound is seen as a key pillar in the economy's recovery, which has gained steam as consumer spending picks up while manufacturing activity, which has led the upswing, stays strong.
'It's back to a fundamentals market where there are no gimmicks,' said Mike Fratantoni, vice-president of research and economics at the Mortgage Bankers Association (MBA).
The first-time homebuyer credit, as well as US$1.4 trillion in debt purchases by the Federal Reserve, served their purpose: lowering mortgage rates and restoring life to the worst housing slump since the Depression.
Sales of new homes, juiced by the tax credit deadline, leaped almost 15 per cent in April to a two-year high. Existing home sales jumped 7.6 per cent in April and almost 23 per cent in the year.
But applications to buy homes plummeted by nearly a third to 13-year lows after tax credits of up to US$8,000 ended on April 30, proving that the incentive pulled sales forward, the Mortgage Bankers Association found.
Despite the recent drop-off, sales should stay elevated through the summer and then flat-line, said many analysts.
'Job growth has returned even more quickly than we anticipated and mortgage rates are trending down again below 5 per cent. Both will spur real home buying activity,' wrote John Burns Real Estate Consulting.
Deutsche Bank expects that housing will have a lesser hangover from federal incentives than many fear, akin to the auto market after the cash-for-clunkers programme ended last year.
'We believe that improving economic confidence, home price stabilisation and rising household incomes will provide an important tailwind to home resales - sufficient to offset the expired incentives,' Joseph LaVorgna and Carl Riccadonna wrote in a Deutsche report.
US non-farm payrolls rose by 290,000 in April, the fastest pace in four years, and a Reuters polls forecasts employers added another 513,000 jobs in May.
Trulia.com, a real estate website, said that Internet real estate searches are picking up after sinking in the first two weeks following April's spike.
'While there was a big hangover effect after the tax credit, we're starting to see people come back and searching again' in the latter part of May, said Ken Shuman of Trulia.
In data Trulia compiled for Reuters, cities across the country showed on-line property searches in the first two weeks of May erased a good chunk if not all of the activity in the last two weeks of the tax credit.
In Miami Beach, Florida, searches rose 2.8 per cent in the last two weeks of April compared with the prior two weeks, and then fell 6.6 per cent in the first two weeks of May. Memphis, Tennessee searches sank 29.1 per cent in the first two May weeks after a 10.9 per cent jump the prior two weeks.
'We do think there will be more market correction in some areas and we don't expect to see major price gains anywhere,'added Mr Shuman. 'We're not expecting a major double dip either, we're more in the flat-lining group.'
Stability would be welcome after a crash that swept prices down 30 per cent on average before gaining traction.
And few expect the housing market to turn bubbly, with unemployment and underemployment still high and banks seen repossessing nearly one million homes this year.
Households are also busy rebuilding balance sheets and are still as much as US$9 trillion dollars down in net worth from the peak, MBA's Mr Fratantoni noted. The MBA forecasts a 5 per cent drop in sales in the second quarter, having factored in the applications dive this month that followed April's spike.
It will be some months before it's clear whether the housing market is really on the road to recovery.
Mark Linne, executive vice-president of AppraisalWorld, said data at summer's end will better reflect the housing market's health, without the artificial prop of the tax credit.
'If we go through the summer and it's not robust and doesn't show any signs of life, then it continues like the groundhog thing - we wait through another winter.' - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Staying strong: Despite the recent drop-off, sales should stay elevated through the summer and then flat-line, say analysts
Retreat in US property after tax credit removed short-lived: analysts
Low mortgage rates and improving jobs market will underpin the sector
(NEW YORK) The retreat in the US housing market after the government halted its hefty tax credit in April should be short-lived, say analysts, and the market may resume its path to stability.
Home sales surged in April before the month-end deadline to take advantage of the credit and demand dropped sharply in the following weeks. But mortgage rates near record lows and an improving jobs market will help underpin the sector, even without the artificial stimulus of tax breaks, said analysts.
A housing sector rebound is seen as a key pillar in the economy's recovery, which has gained steam as consumer spending picks up while manufacturing activity, which has led the upswing, stays strong.
'It's back to a fundamentals market where there are no gimmicks,' said Mike Fratantoni, vice-president of research and economics at the Mortgage Bankers Association (MBA).
The first-time homebuyer credit, as well as US$1.4 trillion in debt purchases by the Federal Reserve, served their purpose: lowering mortgage rates and restoring life to the worst housing slump since the Depression.
Sales of new homes, juiced by the tax credit deadline, leaped almost 15 per cent in April to a two-year high. Existing home sales jumped 7.6 per cent in April and almost 23 per cent in the year.
But applications to buy homes plummeted by nearly a third to 13-year lows after tax credits of up to US$8,000 ended on April 30, proving that the incentive pulled sales forward, the Mortgage Bankers Association found.
Despite the recent drop-off, sales should stay elevated through the summer and then flat-line, said many analysts.
'Job growth has returned even more quickly than we anticipated and mortgage rates are trending down again below 5 per cent. Both will spur real home buying activity,' wrote John Burns Real Estate Consulting.
Deutsche Bank expects that housing will have a lesser hangover from federal incentives than many fear, akin to the auto market after the cash-for-clunkers programme ended last year.
'We believe that improving economic confidence, home price stabilisation and rising household incomes will provide an important tailwind to home resales - sufficient to offset the expired incentives,' Joseph LaVorgna and Carl Riccadonna wrote in a Deutsche report.
US non-farm payrolls rose by 290,000 in April, the fastest pace in four years, and a Reuters polls forecasts employers added another 513,000 jobs in May.
Trulia.com, a real estate website, said that Internet real estate searches are picking up after sinking in the first two weeks following April's spike.
'While there was a big hangover effect after the tax credit, we're starting to see people come back and searching again' in the latter part of May, said Ken Shuman of Trulia.
In data Trulia compiled for Reuters, cities across the country showed on-line property searches in the first two weeks of May erased a good chunk if not all of the activity in the last two weeks of the tax credit.
In Miami Beach, Florida, searches rose 2.8 per cent in the last two weeks of April compared with the prior two weeks, and then fell 6.6 per cent in the first two weeks of May. Memphis, Tennessee searches sank 29.1 per cent in the first two May weeks after a 10.9 per cent jump the prior two weeks.
'We do think there will be more market correction in some areas and we don't expect to see major price gains anywhere,'added Mr Shuman. 'We're not expecting a major double dip either, we're more in the flat-lining group.'
Stability would be welcome after a crash that swept prices down 30 per cent on average before gaining traction.
And few expect the housing market to turn bubbly, with unemployment and underemployment still high and banks seen repossessing nearly one million homes this year.
Households are also busy rebuilding balance sheets and are still as much as US$9 trillion dollars down in net worth from the peak, MBA's Mr Fratantoni noted. The MBA forecasts a 5 per cent drop in sales in the second quarter, having factored in the applications dive this month that followed April's spike.
It will be some months before it's clear whether the housing market is really on the road to recovery.
Mark Linne, executive vice-president of AppraisalWorld, said data at summer's end will better reflect the housing market's health, without the artificial prop of the tax credit.
'If we go through the summer and it's not robust and doesn't show any signs of life, then it continues like the groundhog thing - we wait through another winter.' - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Staying strong: Despite the recent drop-off, sales should stay elevated through the summer and then flat-line, say analysts
Subscribe to:
Posts (Atom)
Posts
