Jul 1, 2010
Rents at ex-JTC factories could rise
RENTS at industrial properties formerly owned by JTC Corp are likely to go up from June next year once a rental rise cap is lifted and a real estate investment trust (Reit) manager takes over.
The properties are held under the Mapletree Industrial Trust, which is headed for an initial public offering, possibly by the end of the year. Reits collect rent from tenants of the properties they own and pay most of it as dividends to unit holders.
Mapletree Investments, which bought the properties in 2008, had to face unhappy tenants struggling with soaring rents last year. Many had petitioned Mapletree for hefty rent cuts to cope with the tough market conditions then. Most of all, they were upset at having missed out on a 15 per cent rental rebate granted by JTC as part of the Government's Resilience Package.
Many are small and medium-sized enterprises occupying the cheapest of the ex-JTC factories. And JTC rents are generally below market rates.
Property consultants had said that they cannot expect Mapletree to offer them the same low rates.
In any case, Mapletree had said that 1,448 of the industrial trust's flatted and stack-up factories, as well as warehouses, would benefit from a 5 per cent rental cap - of JTC's rent in July 2007 - when they renewed their leases before this month.
There is no cap for the remaining 108 - 7 per cent of the total - tenants in its business park buildings.
Mapletree Investments' chief executive (Industrial) Phua Kok Kim said yesterday it has stuck to the rental cap. He said new tenants are signing leases at higher rates, which shows that the properties are 'under-rented and there is potential for organic growth'.
But any rise is likely to be gradual, said Mapletree group chief financial officer Wong Mun Hoong.
Mr Phua added: 'All our rents are subject to competitive market forces of supply and demand, so even when the rental cap of 5 per cent is lifted for non-business park space, the renewal rents will still be subject to market forces.'
JOYCE TEO
Thursday, July 1, 2010
ST : Far East gears up Inessence brand for upscale crowd
Jul 1, 2010
Far East gears up Inessence brand for upscale crowd
By Dickson Li
A LUXURY brand of exclusive apartments that take creature comforts to a new level has been unveiled by Far East Organization.
Its Inessence brand, launched yesterday at the Skyline@Orchard Boulevard showflat along River Valley Road, allows buyers to work with a design team to plan their apartments and choose upscale fixtures 'at no extra cost', said Far East executive director of development and planning Chng Kiong Huat.
Residents will be serviced by a dedicated concierge team and their properties will be protected by a security system that distinguishes between guests and residents.
Inessence currently comprises three separate developments: Alba at Cairnhill Rise, which will cost about $2,900
per sq ft (psf); Boulevard Vue at Cuscaden Walk, priced at $3,700 psf; and Skyline@Orchard Boulevard at Angullia Park, which will set buyers back $3,900 psf.
Boulevard Vue features two penthouses, one of which is 11,000 sq ft and boasts its own swimming pool in the sky. The other, an 8,000 sq ft unit, has already been sold.
Far East's executive director and chief operating officer of property sales, Mr Chia Boon Kuah, wants Inessence to tap the real estate market for high net worth individuals here.
'In the Asia Pacific, excluding Japan, high net worth individuals allocate 28 per cent of their wealth to real estate, and 60 per cent of that is allocated to residential,' said Mr Chia.
'Here in Singapore, we have the highest concentration of millionaire households in the world.'
Mr Chia remains bullish about property, despite a Citigroup report this week that expressed fears of an oversupply of upscale homes.
It said one-third of prime District 9 units due for completion in the next 12 to 15 months remain unsold.
Mr Chia said: 'In 2007, at the peak of the property market, the market sold 1,004 units worth $6.4 billion.'
Citing surveys indicating that Singapore has become one of the world's most liveable cities, he said location will be one of the apartments' main draws.
'Today's Singapore is far more interesting, vibrant and cosmopolitan than three years ago.
'In the first six months, the market sold only 238 units, so if we double that (for the full year), we believe that there is still that upside.'
Far East gears up Inessence brand for upscale crowd
By Dickson Li
A LUXURY brand of exclusive apartments that take creature comforts to a new level has been unveiled by Far East Organization.
Its Inessence brand, launched yesterday at the Skyline@Orchard Boulevard showflat along River Valley Road, allows buyers to work with a design team to plan their apartments and choose upscale fixtures 'at no extra cost', said Far East executive director of development and planning Chng Kiong Huat.
Residents will be serviced by a dedicated concierge team and their properties will be protected by a security system that distinguishes between guests and residents.
Inessence currently comprises three separate developments: Alba at Cairnhill Rise, which will cost about $2,900
per sq ft (psf); Boulevard Vue at Cuscaden Walk, priced at $3,700 psf; and Skyline@Orchard Boulevard at Angullia Park, which will set buyers back $3,900 psf.
Boulevard Vue features two penthouses, one of which is 11,000 sq ft and boasts its own swimming pool in the sky. The other, an 8,000 sq ft unit, has already been sold.
Far East's executive director and chief operating officer of property sales, Mr Chia Boon Kuah, wants Inessence to tap the real estate market for high net worth individuals here.
'In the Asia Pacific, excluding Japan, high net worth individuals allocate 28 per cent of their wealth to real estate, and 60 per cent of that is allocated to residential,' said Mr Chia.
'Here in Singapore, we have the highest concentration of millionaire households in the world.'
Mr Chia remains bullish about property, despite a Citigroup report this week that expressed fears of an oversupply of upscale homes.
It said one-third of prime District 9 units due for completion in the next 12 to 15 months remain unsold.
Mr Chia said: 'In 2007, at the peak of the property market, the market sold 1,004 units worth $6.4 billion.'
Citing surveys indicating that Singapore has become one of the world's most liveable cities, he said location will be one of the apartments' main draws.
'Today's Singapore is far more interesting, vibrant and cosmopolitan than three years ago.
'In the first six months, the market sold only 238 units, so if we double that (for the full year), we believe that there is still that upside.'
BT : China property buyers go global as yuan throws off its shackles
Business Times - 01 Jul 2010
China property buyers go global as yuan throws off its shackles
They made up 17% of foreign property purchases in S'pore in Q1 2010
(LONDON/HONG KONG) China's notorious property bubble could become its next big export with a stronger yuan giving its newly rich the buying power to splash out in the world's most sought-after property markets.
Buoyed by hopes of gains in the yuan after its US dollar peg was shed on June 19, Chinese investors are chasing discounted apartments from London to Singapore with a view to reducing their exposure to an overheated domestic market.
'I think you will start to see more strength in that currency and that will give further impetus to look elsewhere for investments,' said James Moss, managing director of upmarket UK real estate services company Curzon Investment Property.
'The whole economic situation (in China) is prone to change and so people are looking for a safe haven for their money,' said Mr Moss, noting his client base was now 75 per cent Chinese, from 95 per cent expatriate UK investors five years ago.
Despite vast state wealth and one of the world's strongest economies, China's influence on overseas real estate markets has so far been eclipsed by Middle Eastern investors, private equity funds and other sovereign buyers from South Korea or Singapore.
Chinese property investors have so far mostly confined their acquisitions to domestic markets, pushing average prices up by 77 per cent in five years and forcing the government to enact tough measures to keep homes affordable.
With property tightening measures at home and the value of its currency set to firm, analysts see more buyers branching out into overseas markets that promise attractive gains with fewer restrictions.
China abandoned a 23- month-old peg to the US dollar last month and, even though analysts do not expect the currency to be fully convertible any time soon, further appreciation is likely, boosting the overseas purchasing power of Chinese investors.
The People's Bank of China has said exchange rate reform would be gradual and that it will ensure the yuan could both rise and fall depending on market conditions.
The yuan is seen up 2.4 per cent against the US dollar by year's end, hitting 6.67 yuan, a Reuters poll showed.
Data from real estate broker Knight Frank showed that more than one in 10 new-build residential properties in London were sold to Chinese or Hong Kong buyers in the year to March, the highest share of the market by any offshore investors.
In Hong Kong, a fifth of luxury apartments are purchased by mainland Chinese, said Alva To, head of consulting for North Asia at property broker DTZ, citing industry figures.
Developers also hope Chinese will tap new frontiers, from Bali to Dubai.
Dubai Pearl FZ LLC plans to market its upmarket homes in Beijing and Shanghai, while Indonesia's PT Dua Cahaya Anugrah also plans to market its latest Bali beach villas across China.
'As Asian domestic markets show their own signs of difficulties, Chinese buyers in particular are keen to invest in markets they regard as more secure than their own if they can get through the regulatory minefield and release the funds,' Liam Bailey, Knight Frank's head of residential research, said.
A relentless rise in domestic property prices since house ownership was legalised in 1998 has fostered a strong preference for bricks and mortar over volatile equities among Chinese, already known as strong savers and investors.
It's not only London house-sellers that have caught the eye of the Chinese. In Asia, developers such as Hong Kong's Sun Hung Kai and Singapore's CapitaLand, have also marketed their swanky flats to Chinese buyers.
A DTZ report in late May showed Chinese buyers made up 17 per cent of foreign property purchases in Singapore in first quarter 2010, making Chinese the third most prolific overseas buyers in the city-state. - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
China property buyers go global as yuan throws off its shackles
They made up 17% of foreign property purchases in S'pore in Q1 2010
(LONDON/HONG KONG) China's notorious property bubble could become its next big export with a stronger yuan giving its newly rich the buying power to splash out in the world's most sought-after property markets.
Buoyed by hopes of gains in the yuan after its US dollar peg was shed on June 19, Chinese investors are chasing discounted apartments from London to Singapore with a view to reducing their exposure to an overheated domestic market.
'I think you will start to see more strength in that currency and that will give further impetus to look elsewhere for investments,' said James Moss, managing director of upmarket UK real estate services company Curzon Investment Property.
'The whole economic situation (in China) is prone to change and so people are looking for a safe haven for their money,' said Mr Moss, noting his client base was now 75 per cent Chinese, from 95 per cent expatriate UK investors five years ago.
Despite vast state wealth and one of the world's strongest economies, China's influence on overseas real estate markets has so far been eclipsed by Middle Eastern investors, private equity funds and other sovereign buyers from South Korea or Singapore.
Chinese property investors have so far mostly confined their acquisitions to domestic markets, pushing average prices up by 77 per cent in five years and forcing the government to enact tough measures to keep homes affordable.
With property tightening measures at home and the value of its currency set to firm, analysts see more buyers branching out into overseas markets that promise attractive gains with fewer restrictions.
China abandoned a 23- month-old peg to the US dollar last month and, even though analysts do not expect the currency to be fully convertible any time soon, further appreciation is likely, boosting the overseas purchasing power of Chinese investors.
The People's Bank of China has said exchange rate reform would be gradual and that it will ensure the yuan could both rise and fall depending on market conditions.
The yuan is seen up 2.4 per cent against the US dollar by year's end, hitting 6.67 yuan, a Reuters poll showed.
Data from real estate broker Knight Frank showed that more than one in 10 new-build residential properties in London were sold to Chinese or Hong Kong buyers in the year to March, the highest share of the market by any offshore investors.
In Hong Kong, a fifth of luxury apartments are purchased by mainland Chinese, said Alva To, head of consulting for North Asia at property broker DTZ, citing industry figures.
Developers also hope Chinese will tap new frontiers, from Bali to Dubai.
Dubai Pearl FZ LLC plans to market its upmarket homes in Beijing and Shanghai, while Indonesia's PT Dua Cahaya Anugrah also plans to market its latest Bali beach villas across China.
'As Asian domestic markets show their own signs of difficulties, Chinese buyers in particular are keen to invest in markets they regard as more secure than their own if they can get through the regulatory minefield and release the funds,' Liam Bailey, Knight Frank's head of residential research, said.
A relentless rise in domestic property prices since house ownership was legalised in 1998 has fostered a strong preference for bricks and mortar over volatile equities among Chinese, already known as strong savers and investors.
It's not only London house-sellers that have caught the eye of the Chinese. In Asia, developers such as Hong Kong's Sun Hung Kai and Singapore's CapitaLand, have also marketed their swanky flats to Chinese buyers.
A DTZ report in late May showed Chinese buyers made up 17 per cent of foreign property purchases in Singapore in first quarter 2010, making Chinese the third most prolific overseas buyers in the city-state. - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Biggest-ever launch of new HDB flats
Business Times - 01 Jul 2010
Biggest-ever launch of new HDB flats
Strong demand seen for 2,696 flats in Punggol, Sengkang due to low prices
By UMA SHANKARI
THE Housing and Development Board launched close to 2,700 new build-to-order (BTO) flats at Punggol and Sengkang yesterday - the largest number of such flats ever offered at one go.
A total of 2,696 flats are being offered at Waterway Terraces in Punggol, and Fernvale Foliage and Rivervale Arc in Sengkang.
The move comes as the flash estimate for the HDB resale price index is due to be released today. The index will show how much resale prices of HDB flats rose or fell in the second quarter of this year
'By releasing such a huge supply of new flats a day before the HDB resale price index flash estimate, HDB is sending a clear message of its commitment to keep housing available and affordable for first-time home-buyers,' said Eugene Lim, associate director of ERA Asia-Pacific.
With yesterday's launch, HDB has now launched a total of 8,828 new BTO flats for sale in the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
Demand for the newly released flats is expected to be strong as their prices are low compared with those of nearby resale flats, analysts said. HDB has priced the new flats around 30-40 per cent less than the current resale prices of similar flats in the locality.
'Previous BTO flats were typically sold at 17 to 30 per cent cheaper than comparative flats in the respective vicinities of those BTO projects. And they were all over-subscribed,' said PropNex spokesman Adam Tan. 'Now, with even lower prices compared with similar resale flats, we can expect demand to increase.'
In Q1, resale flats in Punggol and Sengkang commanded cash-over-valuation sums that were slightly higher than the national average, demonstrating the popularity of flats in the two areas, Mr Tan said.
In particular, analysts expect the 1,072 premium flats at Waterway Terraces to be snapped up. The design for the project - the first public housing development along the upcoming Punggol waterway - was chosen after an international competition held last year. The winning design, by Group8asia and Aedas, incorporates many eco-friendly features.
'The flats next to the waterway are expected to be highly sought after,' said Mr Lim. 'Where else can you get waterfront housing at such affordable prices? We may see an oversubscription of five to six times for these flats.'
Prices at Waterway Terraces start from $186,000, $300,000 and $374,000 for three-, four- and five-room flats respectively.
The 2,696 flats comprise 238 two-room, 399 three-room, 1,585 four-room and 474 five-room units. As per HDB policy, 95 per cent of the supply will be set aside for first-time buyers.
HDB's plan is to launch at least 12,000 new BTO flats by September - and more if there is demand. Upcoming projects will have a good geographical spread, covering areas such as Bukit Panjang, Jurong West, Yishun and Woodlands, the agency said.
This month, HDB will launch about 1,000 BTO flats at Bukit Panjang and Jurong West.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Biggest-ever launch of new HDB flats
Strong demand seen for 2,696 flats in Punggol, Sengkang due to low prices
By UMA SHANKARI
THE Housing and Development Board launched close to 2,700 new build-to-order (BTO) flats at Punggol and Sengkang yesterday - the largest number of such flats ever offered at one go.
A total of 2,696 flats are being offered at Waterway Terraces in Punggol, and Fernvale Foliage and Rivervale Arc in Sengkang.
The move comes as the flash estimate for the HDB resale price index is due to be released today. The index will show how much resale prices of HDB flats rose or fell in the second quarter of this year
'By releasing such a huge supply of new flats a day before the HDB resale price index flash estimate, HDB is sending a clear message of its commitment to keep housing available and affordable for first-time home-buyers,' said Eugene Lim, associate director of ERA Asia-Pacific.
With yesterday's launch, HDB has now launched a total of 8,828 new BTO flats for sale in the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
Demand for the newly released flats is expected to be strong as their prices are low compared with those of nearby resale flats, analysts said. HDB has priced the new flats around 30-40 per cent less than the current resale prices of similar flats in the locality.
'Previous BTO flats were typically sold at 17 to 30 per cent cheaper than comparative flats in the respective vicinities of those BTO projects. And they were all over-subscribed,' said PropNex spokesman Adam Tan. 'Now, with even lower prices compared with similar resale flats, we can expect demand to increase.'
In Q1, resale flats in Punggol and Sengkang commanded cash-over-valuation sums that were slightly higher than the national average, demonstrating the popularity of flats in the two areas, Mr Tan said.
In particular, analysts expect the 1,072 premium flats at Waterway Terraces to be snapped up. The design for the project - the first public housing development along the upcoming Punggol waterway - was chosen after an international competition held last year. The winning design, by Group8asia and Aedas, incorporates many eco-friendly features.
'The flats next to the waterway are expected to be highly sought after,' said Mr Lim. 'Where else can you get waterfront housing at such affordable prices? We may see an oversubscription of five to six times for these flats.'
Prices at Waterway Terraces start from $186,000, $300,000 and $374,000 for three-, four- and five-room flats respectively.
The 2,696 flats comprise 238 two-room, 399 three-room, 1,585 four-room and 474 five-room units. As per HDB policy, 95 per cent of the supply will be set aside for first-time buyers.
HDB's plan is to launch at least 12,000 new BTO flats by September - and more if there is demand. Upcoming projects will have a good geographical spread, covering areas such as Bukit Panjang, Jurong West, Yishun and Woodlands, the agency said.
This month, HDB will launch about 1,000 BTO flats at Bukit Panjang and Jurong West.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Scotts Tower design undergoes revamp
Business Times - 01 Jul 2010
Scotts Tower design undergoes revamp
FAR East Organization has changed the architect and the design for Scotts Tower, located at the junction of Scotts and Cairnhill roads.
The eye-catching 153m, 31-storey tower was originally designed with 67 luxury apartments with panoramic views and had a built-up floor area of about 20,000 sq m.
In late 2009 it was reported that Far East was shrinking the units to make them more affordable. The original design was commissioned in 2006 and was planned to be launched in late 2007.
Architect Ole Scheeren, formerly a partner at Office of Metropolitan Architecture (OMA) will be replaced by Ben van Berkel of UNStudio.
The number of units is now expected to increase, and the new design is currently being planned.
'Market conditions and unit requirements have changed,' said Far East's executive director of development and planning Chng Kiong Huat. 'The large units did not quite fit with our current market needs.
'If we had a change of architect, the whole concept will be different, more current. We didn't want to have the same kind of look. We wanted a whole different approach.'
Ole Scheeren was the architect-in-charge of the CCTV Tower in Beijing. In March 2010, OMA announced that Scheeren had left to establish his own studio.
UNStudio was used by CapitaLand for its Raffles City project in Hangzhou and its failed bid for the South Beach integrated development site eventually won by City Developments in 2007.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Ringing the changes: The proposed new look of Scotts Tower (left) and the old design
Scotts Tower design undergoes revamp
FAR East Organization has changed the architect and the design for Scotts Tower, located at the junction of Scotts and Cairnhill roads.
The eye-catching 153m, 31-storey tower was originally designed with 67 luxury apartments with panoramic views and had a built-up floor area of about 20,000 sq m.
In late 2009 it was reported that Far East was shrinking the units to make them more affordable. The original design was commissioned in 2006 and was planned to be launched in late 2007.
Architect Ole Scheeren, formerly a partner at Office of Metropolitan Architecture (OMA) will be replaced by Ben van Berkel of UNStudio.
The number of units is now expected to increase, and the new design is currently being planned.
'Market conditions and unit requirements have changed,' said Far East's executive director of development and planning Chng Kiong Huat. 'The large units did not quite fit with our current market needs.
'If we had a change of architect, the whole concept will be different, more current. We didn't want to have the same kind of look. We wanted a whole different approach.'
Ole Scheeren was the architect-in-charge of the CCTV Tower in Beijing. In March 2010, OMA announced that Scheeren had left to establish his own studio.
UNStudio was used by CapitaLand for its Raffles City project in Hangzhou and its failed bid for the South Beach integrated development site eventually won by City Developments in 2007.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Ringing the changes: The proposed new look of Scotts Tower (left) and the old design
BT : Far East launches high-end Inessence brand
Business Times - 01 Jul 2010
Far East launches high-end Inessence brand
By NICHOLAS YEO
FAR East Organization (FEO) launched its luxury development brand 'Inessence' along with a sneak preview of 'Skyline @ Orchard Boulevard' yesterday.
Four developments, Skyline, Alba, Boulevard Vue and Scotts Tower will come under this brand.
Two hallmarks of the 'Inessence' Projects are the white plan concept which allows customers to customise the unit layout and the use of well-known architects, such as Arquitectonica and Fumihiko Maki.
'Inessence' was conceptualised one to two years ago, with the launch of Boulevard Vue and Alba.
FEO has been building the brand name 'through the buyers, one on one'. 'Now that the product has proven itself, we are launching the brand,' said Chia Boon Kuah, chief operating officer of property sales.
Chng Kiong Huat, executive director for development and planning, said: 'We like to believe we are a supermarket of sorts, we sell properties ranging from the simplest to the most luxurious. 'We want to market a product that is clear and direct regarding luxury and to do this, we need a clear brand.'
As the market becomes more sophisticated, FEO believes there is a greater need for market segmentation.
Of the four projects, Boulevard Vue and Alba have already been launched. Skyline will be launched later this year. According to Mr Chia, Skyline will be priced from $3,900 psf onwards.
Skyline will be built on the former Skyline Angullia site, which was bought by FEO in 2006 for $100 million, at $1,073 psf ppr. Breakeven was estimated then to be about $1,400 psf. Currently, 'Alba is marketing for $2,900 psf onwards and Boulevard Vue at $3,700 psf onwards', said Mr Chia.
As of May, nine out of 28 units at Boulevard Vue had been sold. In the month of May, two units were sold at an average price of $2,971 psf. As for Alba, 18 out of 50 units have been sold. The transacted prices ranged from about $2,000 to $2,550 psf.
Boulevard Vue's units are large, ranging from 4,500 sq ft to 11,054 sq ft. In contrast, Alba's and Skyline's unit sizes start from 1,862 sq ft and 1,744 sq ft respectively. The expected TOP date for Boulevard Vue is 2013, Alba the year after and Skyline in 2015.
A launch date has not been set for Scotts Tower. On the topic of pricing strategies, Mr Chia said, 'We respond to the market when we think it is appropriate.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Far East launches high-end Inessence brand
By NICHOLAS YEO
FAR East Organization (FEO) launched its luxury development brand 'Inessence' along with a sneak preview of 'Skyline @ Orchard Boulevard' yesterday.
Four developments, Skyline, Alba, Boulevard Vue and Scotts Tower will come under this brand.
Two hallmarks of the 'Inessence' Projects are the white plan concept which allows customers to customise the unit layout and the use of well-known architects, such as Arquitectonica and Fumihiko Maki.
'Inessence' was conceptualised one to two years ago, with the launch of Boulevard Vue and Alba.
FEO has been building the brand name 'through the buyers, one on one'. 'Now that the product has proven itself, we are launching the brand,' said Chia Boon Kuah, chief operating officer of property sales.
Chng Kiong Huat, executive director for development and planning, said: 'We like to believe we are a supermarket of sorts, we sell properties ranging from the simplest to the most luxurious. 'We want to market a product that is clear and direct regarding luxury and to do this, we need a clear brand.'
As the market becomes more sophisticated, FEO believes there is a greater need for market segmentation.
Of the four projects, Boulevard Vue and Alba have already been launched. Skyline will be launched later this year. According to Mr Chia, Skyline will be priced from $3,900 psf onwards.
Skyline will be built on the former Skyline Angullia site, which was bought by FEO in 2006 for $100 million, at $1,073 psf ppr. Breakeven was estimated then to be about $1,400 psf. Currently, 'Alba is marketing for $2,900 psf onwards and Boulevard Vue at $3,700 psf onwards', said Mr Chia.
As of May, nine out of 28 units at Boulevard Vue had been sold. In the month of May, two units were sold at an average price of $2,971 psf. As for Alba, 18 out of 50 units have been sold. The transacted prices ranged from about $2,000 to $2,550 psf.
Boulevard Vue's units are large, ranging from 4,500 sq ft to 11,054 sq ft. In contrast, Alba's and Skyline's unit sizes start from 1,862 sq ft and 1,744 sq ft respectively. The expected TOP date for Boulevard Vue is 2013, Alba the year after and Skyline in 2015.
A launch date has not been set for Scotts Tower. On the topic of pricing strategies, Mr Chia said, 'We respond to the market when we think it is appropriate.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Auctions likely to pick up steam: Colliers
Business Times - 01 Jul 2010
Auctions likely to pick up steam: Colliers
46 properties were sold at auction in H1 2010, with a total sale value of $87m
By FELDA CHAY
THE local property auction scene is likely to keep buzzing amid the improving economic climate, interest in properties approaching Temporary Occupation Permit (TOP) and low interest rates, says Colliers International.
The property consultancy released its sector outlook for the second half of the year after healthy growth in the first six months.
Its deputy managing director (agency and business services) and auctioneer Grace Ng said: 'In particular, the auction market could see a substantial number of sub-sales by owners of properties that are approaching TOP.
'Interest for such properties tends to be high due to their near-term rental generation ability, as well as near-term owner-occupation opportunity.'
According to Colliers, 46 properties were sold at auction in the first half of 2010, with a total sale value of $86.99 million.
About $72.4 million was generated from the sale of 54 properties in the same period last year.
Landed properties, in particular, pulled their weight in the first six months of this year.
Seven landed residential properties worth $20.08 million were transacted at auction, accounting for 23.1 per cent of sales value during the period.
Ms Ng said: 'Landed residential properties have traditionally been popular due to the grant of land title as against strata title accorded for ownership of apartments and condominiums.
'Their limited supply in land-scarce Singapore has further honed their prestige attractiveness among home buyers.'
Another strong performer in the first half was retail, with nine such properties worth $20.07 million sold at auction, accounting for 23.1 per cent of the total sales value.
Ms Ng said: 'The popularity of retail properties could be attributed to the attractive rental yields that are estimated at between 5 and 6 per cent.
'This entices investors to park their funds in such properties to seek higher returns, compared with the paltry interest rate offered by most financial institutions.'
Coupled with expectations that Singapore's inflation is likely to rise to between 2.5 and 3.5 per cent this year, and high liquidity in the market, savvy investors are more likely to sniff out properties to park their funds, Ms Ng said.
'The low interest rate environment also serves as another possible push factor for buyers to take on mortgages at attractive rates,' she said.
The data provided by Colliers also shows 440 properties were put up for auction in the first six months of 2010, matching the number auctioned in the same period last year.
Of the 440 properties, 378 were put up by owners - higher than the 337 in 2009. The other 62 were mortgagee sales.
According to Colliers, this fall in mortgagee sales shows the vastly improved financial position of mortgagors on the back of a buoyant economy, falling unemployment and continued low interest rates.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Auctions likely to pick up steam: Colliers
46 properties were sold at auction in H1 2010, with a total sale value of $87m
By FELDA CHAY
THE local property auction scene is likely to keep buzzing amid the improving economic climate, interest in properties approaching Temporary Occupation Permit (TOP) and low interest rates, says Colliers International.
The property consultancy released its sector outlook for the second half of the year after healthy growth in the first six months.
Its deputy managing director (agency and business services) and auctioneer Grace Ng said: 'In particular, the auction market could see a substantial number of sub-sales by owners of properties that are approaching TOP.
'Interest for such properties tends to be high due to their near-term rental generation ability, as well as near-term owner-occupation opportunity.'
According to Colliers, 46 properties were sold at auction in the first half of 2010, with a total sale value of $86.99 million.
About $72.4 million was generated from the sale of 54 properties in the same period last year.
Landed properties, in particular, pulled their weight in the first six months of this year.
Seven landed residential properties worth $20.08 million were transacted at auction, accounting for 23.1 per cent of sales value during the period.
Ms Ng said: 'Landed residential properties have traditionally been popular due to the grant of land title as against strata title accorded for ownership of apartments and condominiums.
'Their limited supply in land-scarce Singapore has further honed their prestige attractiveness among home buyers.'
Another strong performer in the first half was retail, with nine such properties worth $20.07 million sold at auction, accounting for 23.1 per cent of the total sales value.
Ms Ng said: 'The popularity of retail properties could be attributed to the attractive rental yields that are estimated at between 5 and 6 per cent.
'This entices investors to park their funds in such properties to seek higher returns, compared with the paltry interest rate offered by most financial institutions.'
Coupled with expectations that Singapore's inflation is likely to rise to between 2.5 and 3.5 per cent this year, and high liquidity in the market, savvy investors are more likely to sniff out properties to park their funds, Ms Ng said.
'The low interest rate environment also serves as another possible push factor for buyers to take on mortgages at attractive rates,' she said.
The data provided by Colliers also shows 440 properties were put up for auction in the first six months of 2010, matching the number auctioned in the same period last year.
Of the 440 properties, 378 were put up by owners - higher than the 337 in 2009. The other 62 were mortgagee sales.
According to Colliers, this fall in mortgagee sales shows the vastly improved financial position of mortgagors on the back of a buoyant economy, falling unemployment and continued low interest rates.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TODAY ONLINE : Property auction market up 20% on-year
Property auction market up 20% on-year
Buying interest remains keen as liquidity in market is high
05:55 AM Jul 01, 2010
by Jo-Ann Huang joannhuang@mediacorp.com.sg
SINGAPORE - The Singapore property auction market saw a 20-per-cent rise on-year in the first half of this year to $87 million, according to property consultants Colliers International.
A total of 440 properties were put up for auction - of which 378 were from property owners while 62 were mortgagee sales.
Colliers said the sharp fall in the number of properties put up for mortgage sale is a reflection of the vastly-improved financial position of mortgagors.
April saw the highest value from auctions when 12 properties, with a total value of more than $24.4 million, changed hands.
There was a lull in May, when only two properties were sold for $6.89 million.
This could be due to concerns over the European debts, as well as the tension between North and South Korea that sent jitters through the stock market, said Colliers.
Buying interest at auctions will also remain keen as liquidity in the market is high and more investors are looking to real estate to hedge against inflation.
The sale of seven landed properties contributed 23.1 per cent or $20.08 million to auction transactions during the six-month period.
Four of the seven landed properties are in Bukit Timah.
Other types of properties sold by auction are retail properties, which contributed $20.07 million or 23.1 per cent to total sales; as well as high-end apartments which contributed $13.38 million or 15.4 per cent.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Buying interest remains keen as liquidity in market is high
05:55 AM Jul 01, 2010
by Jo-Ann Huang joannhuang@mediacorp.com.sg
SINGAPORE - The Singapore property auction market saw a 20-per-cent rise on-year in the first half of this year to $87 million, according to property consultants Colliers International.
A total of 440 properties were put up for auction - of which 378 were from property owners while 62 were mortgagee sales.
Colliers said the sharp fall in the number of properties put up for mortgage sale is a reflection of the vastly-improved financial position of mortgagors.
April saw the highest value from auctions when 12 properties, with a total value of more than $24.4 million, changed hands.
There was a lull in May, when only two properties were sold for $6.89 million.
This could be due to concerns over the European debts, as well as the tension between North and South Korea that sent jitters through the stock market, said Colliers.
Buying interest at auctions will also remain keen as liquidity in the market is high and more investors are looking to real estate to hedge against inflation.
The sale of seven landed properties contributed 23.1 per cent or $20.08 million to auction transactions during the six-month period.
Four of the seven landed properties are in Bukit Timah.
Other types of properties sold by auction are retail properties, which contributed $20.07 million or 23.1 per cent to total sales; as well as high-end apartments which contributed $13.38 million or 15.4 per cent.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
TODAY ONLINE : 2,696 BTO flats up for grabs in Punggol, Sengkang
2,696 BTO flats up for grabs in Punggol, Sengkang
05:55 AM Jul 01, 2010
SINGAPORE - Three Build-To-Order (BTO) projects in Punggol and Sengkang were launched yesterday - the largest number of such projects offered by the HDB in a single launch so far.
Out of the nearly 2,700 flats to be built, about 1,600 will be four-room units, with two, three and five-room flats making up the rest. Ninety-five per cent of the public supply will be set aside for first-timers.
The BTO project in Punggol, Waterway Terraces, will be the first waterfront housing development. It offers 1,072 premium flats and boasts eco-friendly features, such as solar power to supplement lighting needs in common areas.
Prices of the three-room units start from $186,000, while those of four and five-room units start from $300,000 and $374,000.
In Sengkang, the Fernvale Foliage offers 504 standard flats while another BTO project in the area, Rivervale Arc, offers 1,120 standard flats.
They will cost less than flats in Waterway Terraces, with prices ranging from $68,000 to $$279,000.
With yesterday's launch, the HDB said it would have offered a total of 8,828 new BTO flats for sale in the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
The HDB plans to launch at least 12,000 BTO flats by September and more if there is a demand for them.
Next month, flat buyers can look forward to the launch of about 1,000 BTO flats in Bukit Panjang and Jurong West.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jul 01, 2010
SINGAPORE - Three Build-To-Order (BTO) projects in Punggol and Sengkang were launched yesterday - the largest number of such projects offered by the HDB in a single launch so far.
Out of the nearly 2,700 flats to be built, about 1,600 will be four-room units, with two, three and five-room flats making up the rest. Ninety-five per cent of the public supply will be set aside for first-timers.
The BTO project in Punggol, Waterway Terraces, will be the first waterfront housing development. It offers 1,072 premium flats and boasts eco-friendly features, such as solar power to supplement lighting needs in common areas.
Prices of the three-room units start from $186,000, while those of four and five-room units start from $300,000 and $374,000.
In Sengkang, the Fernvale Foliage offers 504 standard flats while another BTO project in the area, Rivervale Arc, offers 1,120 standard flats.
They will cost less than flats in Waterway Terraces, with prices ranging from $68,000 to $$279,000.
With yesterday's launch, the HDB said it would have offered a total of 8,828 new BTO flats for sale in the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
The HDB plans to launch at least 12,000 BTO flats by September and more if there is a demand for them.
Next month, flat buyers can look forward to the launch of about 1,000 BTO flats in Bukit Panjang and Jurong West.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
TODAY ONLINE : Far East launches luxury brand
Far East launches luxury brand
05:55 AM Jul 01, 2010
by Zul Othman
SINGAPORE - Property developer Far East Organization yesterday introduced its luxury brand Inessence, which is made up of exclusive condominiums in prime locations in the Orchard Road area.
However, they don't come cheap: Prices for a residence at Skyline@Orchard Boulevard at Angullia Park start at $6.8 million while rates for an apartment at Cuscaden Walk's Boulevard Vue start from $16.6 million. Apartments at Alba in Cairnhill Rise start from $5.4 million.
At these prices, residents can look forward to a custom-built security system - which "automatically distinguishes" between guests and condo owners - as well as access to their own concierge team.
Announcing the venture yesterday, Far East chief operating officer (Property Sales) Chia Boon Kuah said there is a market for ultra expensive homes.
He said: "In 2007, at the peak of the market, the demand was for 1,400 units of luxury apartments. At $5 million each, total sales came to more than $6.4 billion (but) in the first half of this year, 238 units sold have brought in $1.6 billion."
These luxury apartments, Mr Chia said, are being targeted at foreign buyers who want to get into the high-end property market following the economic recovery.
Colliers International's director (Research and Advisory) Tay Huey Ying told MediaCorp that for the first five months alone, the number of foreign purchasers had already exceeded 55 per cent of last year's total.
"With the recovery of the economy gaining traction, we expect to see more (foreign buyers) coming to Singapore, especially given the cooling measures put in place by governments of Asian cities for their respective markets," Mr Tay said.
According to Mr Chia, sales have been encouraging: Already 18 out of Alba's 50 apartments have been sold while nine out of the 28 units at Boulevard Vue have been snapped up. Construction of both developments will be completed in the next four years.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jul 01, 2010
by Zul Othman
SINGAPORE - Property developer Far East Organization yesterday introduced its luxury brand Inessence, which is made up of exclusive condominiums in prime locations in the Orchard Road area.
However, they don't come cheap: Prices for a residence at Skyline@Orchard Boulevard at Angullia Park start at $6.8 million while rates for an apartment at Cuscaden Walk's Boulevard Vue start from $16.6 million. Apartments at Alba in Cairnhill Rise start from $5.4 million.
At these prices, residents can look forward to a custom-built security system - which "automatically distinguishes" between guests and condo owners - as well as access to their own concierge team.
Announcing the venture yesterday, Far East chief operating officer (Property Sales) Chia Boon Kuah said there is a market for ultra expensive homes.
He said: "In 2007, at the peak of the market, the demand was for 1,400 units of luxury apartments. At $5 million each, total sales came to more than $6.4 billion (but) in the first half of this year, 238 units sold have brought in $1.6 billion."
These luxury apartments, Mr Chia said, are being targeted at foreign buyers who want to get into the high-end property market following the economic recovery.
Colliers International's director (Research and Advisory) Tay Huey Ying told MediaCorp that for the first five months alone, the number of foreign purchasers had already exceeded 55 per cent of last year's total.
"With the recovery of the economy gaining traction, we expect to see more (foreign buyers) coming to Singapore, especially given the cooling measures put in place by governments of Asian cities for their respective markets," Mr Tay said.
According to Mr Chia, sales have been encouraging: Already 18 out of Alba's 50 apartments have been sold while nine out of the 28 units at Boulevard Vue have been snapped up. Construction of both developments will be completed in the next four years.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
TODAY ONLINE : CBRE forecasts fewer private homes sales in Q2
CBRE forecasts fewer private homes sales in Q2
St rap W corb bold 16/16 base shift -5
05:55 AM Jun 30, 2010
by Mok Feifei
SINGAPORE - The private property market saw some slowing down during the second quarter of the year.
Property consultant CB Richard Ellis (CBRE) forecast that about 4,000 new homes were sold in the second quarter, lower than the previous quarter's figure of 4,380 units.
Also, in the resale market, CBRE estimated that 3,400 to 3,600 resale homes were sold in the second quarter.
If confirmed, that would be 15 to 20 per cent lower than the 4,261 resale homes sold in the previous quarter.
Sub-sales numbered about 500, down from 806 in the previous quarter as the market became less bullish, the report said.
Sellers were also mindful of the stamp duty payable if they sold their property within a year of purchase. In addition, the number of HDB upgraders buying private homes fell.
About 33.7 per cent of new home buyers in the second quarter this year had HDB addresses, lower than the 37.9 per cent figure of the previous quarter.
CBRE said the reduction could be attributed to a smaller supply of mass-market projects being launched in the second quarter. Nevertheless, CBRE said that about 8,300 new homes were sold in the first half of this year. This is more than half or 56.5 per cent of the 14,688 new homes sold for all of last year.
CBRE predicted that overall home prices in the second quarter could reflect a rise of between 2 per cent and 3 per cent on-quarter.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
St rap W corb bold 16/16 base shift -5
05:55 AM Jun 30, 2010
by Mok Feifei
SINGAPORE - The private property market saw some slowing down during the second quarter of the year.
Property consultant CB Richard Ellis (CBRE) forecast that about 4,000 new homes were sold in the second quarter, lower than the previous quarter's figure of 4,380 units.
Also, in the resale market, CBRE estimated that 3,400 to 3,600 resale homes were sold in the second quarter.
If confirmed, that would be 15 to 20 per cent lower than the 4,261 resale homes sold in the previous quarter.
Sub-sales numbered about 500, down from 806 in the previous quarter as the market became less bullish, the report said.
Sellers were also mindful of the stamp duty payable if they sold their property within a year of purchase. In addition, the number of HDB upgraders buying private homes fell.
About 33.7 per cent of new home buyers in the second quarter this year had HDB addresses, lower than the 37.9 per cent figure of the previous quarter.
CBRE said the reduction could be attributed to a smaller supply of mass-market projects being launched in the second quarter. Nevertheless, CBRE said that about 8,300 new homes were sold in the first half of this year. This is more than half or 56.5 per cent of the 14,688 new homes sold for all of last year.
CBRE predicted that overall home prices in the second quarter could reflect a rise of between 2 per cent and 3 per cent on-quarter.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
BT : Mah Bow Tan moots urban planning network
Business Times - 30 Jun 2010
Mah Bow Tan moots urban planning network
By EMILYN YAP
A NEW platform for policymakers and urban planners to exchange ideas on sustainable development is in the works.
National Development Minister Mah Bow Tan mooted the idea of a Learning Network for Cities at the World Cities Summit (WCS) yesterday.
As the WCS happens once every two years, the network will allow government officials and industry professionals to share best practices on green technology, infrastructure financing and other sustainable development issues in between, he said.
The learning network will be discussed at the WCS Mayors' Forum today and more details will be shared later.
Mr Mah gave this update in his speech at the WCS opening plenary session. The event gathered high-ranking individuals from the private and public sectors to share what they thought were challenges and solutions in sustainable urbanisation.
Good urban planning was not something policymakers can ignore. According to Mr Mah, about 200,000 more people move into cities and towns every day. By 2050, 70 per cent of the global population will be living in cities, exceeding the 50 per cent today.
Strong governance, citizen engagement, a balance between development and the environment, and international collaborations are some of the key ingredients for sustainable development, he said.
Asia-Pacific will have major challenges to overcome in the urbanisation process, warned United Nations under-secretary-general and executive secretary of the Economic and Social Commission for Asia and the Pacific, Noeleen Heyzer.
The large movement of people to cities, environmentally unfriendly development, poverty and climate change are threatening the urban landscape, she said. Various cities are aware of the problems and are working to resolve them. One of these is the fast growing region of Chongqing in China. Chongqing mayor Huang Qifan said that the city is planning to plant 14 square kilometres of trees, and build 40 million sq m of public rental housing to cope with rapid urbanisation.
In the Netherlands, the government launched a Delta Programme and set up a Delta fund to protect the country against flooding. Some 59 per cent of the country is flood-prone, said the programme's government commissioner Wim Kuijken.
Commenting on the WCS after the opening plenary session, Mr Mah said that there is much for Singapore to learn. 'There are many challenges we may face in the future', he said.
Climate change is one of these, he continued. When it comes to managing water levels for instance, Singapore can learn from the Netherlands.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Mah Bow Tan moots urban planning network
By EMILYN YAP
A NEW platform for policymakers and urban planners to exchange ideas on sustainable development is in the works.
National Development Minister Mah Bow Tan mooted the idea of a Learning Network for Cities at the World Cities Summit (WCS) yesterday.
As the WCS happens once every two years, the network will allow government officials and industry professionals to share best practices on green technology, infrastructure financing and other sustainable development issues in between, he said.
The learning network will be discussed at the WCS Mayors' Forum today and more details will be shared later.
Mr Mah gave this update in his speech at the WCS opening plenary session. The event gathered high-ranking individuals from the private and public sectors to share what they thought were challenges and solutions in sustainable urbanisation.
Good urban planning was not something policymakers can ignore. According to Mr Mah, about 200,000 more people move into cities and towns every day. By 2050, 70 per cent of the global population will be living in cities, exceeding the 50 per cent today.
Strong governance, citizen engagement, a balance between development and the environment, and international collaborations are some of the key ingredients for sustainable development, he said.
Asia-Pacific will have major challenges to overcome in the urbanisation process, warned United Nations under-secretary-general and executive secretary of the Economic and Social Commission for Asia and the Pacific, Noeleen Heyzer.
The large movement of people to cities, environmentally unfriendly development, poverty and climate change are threatening the urban landscape, she said. Various cities are aware of the problems and are working to resolve them. One of these is the fast growing region of Chongqing in China. Chongqing mayor Huang Qifan said that the city is planning to plant 14 square kilometres of trees, and build 40 million sq m of public rental housing to cope with rapid urbanisation.
In the Netherlands, the government launched a Delta Programme and set up a Delta fund to protect the country against flooding. Some 59 per cent of the country is flood-prone, said the programme's government commissioner Wim Kuijken.
Commenting on the WCS after the opening plenary session, Mr Mah said that there is much for Singapore to learn. 'There are many challenges we may face in the future', he said.
Climate change is one of these, he continued. When it comes to managing water levels for instance, Singapore can learn from the Netherlands.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Just $15.8m for Sentosa house with grim past
Jun 30, 2010
Just $15.8m for Sentosa house with grim past
By Esther Teo
THE three-storey Sentosa Cove bungalow where Chinese national Li Hong Yan's naked body was found floating in a pool has been put up for sale or rental.
An agent from real estate company HSR has placed a small A4-sized sign advertising its availability on one of front windows of the house.
The Straits Times understands that the asking monthly rental for the property of approximately 8,000 sq ft is $28,000, while the asking sale price is $15.8 million - some way below its estimated valuation of $17 million.
Such a price values the property at less than $2,000 per sq ft (psf), thought to be something of a steal considering that a record resale market price for a Sentosa Cove property in Paradise Island was set last month at $36 million - or $2,403 psf.
The bungalow, said to be slightly more than a year old, is believed to be priced for quick sale - below its valuation - because its owner is currently based in Tokyo.
An open house for the prime-sited house was held last weekend and attended by about 20 people, with a number requesting further viewing.
It is believed that an offer of $15 million has already been made on the property, but has been rejected by its owner, Mr Adrian Chua Boon Chye, 39, chief executive and founder of real estate investment management company Roundhill Capital.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that a property should stand on its own merit, and the negative association may not deter buyers.
'Some people might walk away regardless, but some may buy the house hoping that the incident might be forgotten in a couple of years and sell it at a profit to buyer number three,' he said.
Mystery continues to surround the death of 24-year-old Ms Li, whose body, which had no apparent physical injury, was found in March.
She is believed to have spent the night at the house with Mr Chua after they met at a party.
The Sentosa Cove house where Ms Li's body was found has been put up for sale or rental. Its estimated valuation is $17 million. -- ST PHOTO: LAU FOOK KONG
Just $15.8m for Sentosa house with grim past
By Esther Teo
THE three-storey Sentosa Cove bungalow where Chinese national Li Hong Yan's naked body was found floating in a pool has been put up for sale or rental.
An agent from real estate company HSR has placed a small A4-sized sign advertising its availability on one of front windows of the house.
The Straits Times understands that the asking monthly rental for the property of approximately 8,000 sq ft is $28,000, while the asking sale price is $15.8 million - some way below its estimated valuation of $17 million.
Such a price values the property at less than $2,000 per sq ft (psf), thought to be something of a steal considering that a record resale market price for a Sentosa Cove property in Paradise Island was set last month at $36 million - or $2,403 psf.
The bungalow, said to be slightly more than a year old, is believed to be priced for quick sale - below its valuation - because its owner is currently based in Tokyo.
An open house for the prime-sited house was held last weekend and attended by about 20 people, with a number requesting further viewing.
It is believed that an offer of $15 million has already been made on the property, but has been rejected by its owner, Mr Adrian Chua Boon Chye, 39, chief executive and founder of real estate investment management company Roundhill Capital.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that a property should stand on its own merit, and the negative association may not deter buyers.
'Some people might walk away regardless, but some may buy the house hoping that the incident might be forgotten in a couple of years and sell it at a profit to buyer number three,' he said.
Mystery continues to surround the death of 24-year-old Ms Li, whose body, which had no apparent physical injury, was found in March.
She is believed to have spent the night at the house with Mr Chua after they met at a party.
The Sentosa Cove house where Ms Li's body was found has been put up for sale or rental. Its estimated valuation is $17 million. -- ST PHOTO: LAU FOOK KONG
BT : Price index for non-landed private homes up 2.6%
Business Times - 30 Jun 2010
Price index for non-landed private homes up 2.6%
NUS's May reading comes ahead of today's URA Q2 flash estimate
By KALPANA RASHIWALA
(SINGAPORE) Latest flash estimates from the National University of Singapore show that its overall price index for non-landed private homes rose 2.6 per cent in May over the preceding month. Since the end of last year, the index has appreciated 8.6 per cent.
The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.
The sub-index for the central region, which covers a basket of properties in postal districts 1-4 and 9-11, grew 2.5 per cent in May over the preceding month, and 7.9 per cent year to date.
The sub-index for non-Central region rose at a slightly faster clip, of 2.6 per cent month-on-month in May and 9.1 per cent year to date.
Developers' sales have slowed since May as Europe's economic crisis affected financial markets, causing home buyers to withdraw to the sidelines, even ahead of the June school holidays and World Cup season. The market is expected to enter a consolidation phase, marked by slower sales as developers try their best to maintain prices and potential buyers hold back their purchases, hoping for price cuts.
Tomorrow, the Urban Redevelopment Authority will release its second quarter flash estimate for the official private home price index. In Q1, the index climbed 5.6 per cent over the preceding quarter. CB Richard Ellis yesterday predicted a 2-3 per cent quarter-on-quarter rise in this index for Q2. URA's index covers both completed and uncompleted properties, including the new launches market.
'The price points of new mass-market projects launched in the second quarter were at similar levels to those launched in the previous quarter, but those in the mid-tier segment (city-fringe locations and landed homes) have inched up slightly,' the property consultancy said.
Joseph Tan, executive director (residential) at the firm, forecasts that home prices are likely to remain firm despite his prediction that developers' new private homes sales will slow to about 2,000 units in Q3 from an estimated 4,000 units in Q2 and 4,380 units in Q1. 'Home prices are likely to stay stable given the positive outlook on the economy and strong boom in manufacturing and exports,' he added.
CBRE estimates that developers sold about 600-700 private homes in June, compared with 1,078 homes in May and 2,207 units in April.
The developers are estimated to have sold 8,300 units in the first half of this year. They sold 14,688 new homes for the whole of last year.
Commenting on second- quarter sales in the developer sales or primary market, the property consulting group said: 'The projects that sold well were mostly in the low to mid-tier price range. Sales of new upmarket homes moved at a slower pace in the second quarter as foreign investors held back their purchases due to the weakening of some foreign currencies against the Singapore dollar.'
Based on caveats lodged, HDB upgraders' share of new private home purchases slipped from 37.9 per cent in Q1 to 33.7 per cent in Q2. 'The reduction could be attributed to a smaller supply of mass-market type of projects being launched in the second quarter compared to the first quarter,' it added.
In the resale market, CBRE estimates that some 3,400-3,600 private homes changed hands in Q2, about 15-20 per cent lower than the 4,261 units in Q1. 'Subsales numbered around 500 in Q2, down from 806 in the preceding quarter, as the market became less bullish and sellers were mindful of the stamp duty payable if they sold their property within a year of purchase,' it said. Subsales and resales refer to secondary market transactions; subsales involve projects that have yet to receive Certificate of Statutory Completion (CSC), while resales involve projects with CSC.
NUS's overall SRPI is now 36.1 per cent above the post-financial crisis low in March last year. Over the same period, the growth for the central region has been 41.7 per cent and that for the non-central region, 33.2 per cent.
Despite the stronger increase in the central region, the flash estimate index for May for the location was still 3.7 per cent shy of the pre-financial crisis peak in November 2007. In contrast, for the non-central region, the latest index has already exceeded its respective January 2008 pre-crisis peak by 11.1 per cent. As a result, the overall SRPI flash estimate index for May is 5.5 per cent above its November 2007 high.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Price index for non-landed private homes up 2.6%
NUS's May reading comes ahead of today's URA Q2 flash estimate
By KALPANA RASHIWALA
(SINGAPORE) Latest flash estimates from the National University of Singapore show that its overall price index for non-landed private homes rose 2.6 per cent in May over the preceding month. Since the end of last year, the index has appreciated 8.6 per cent.
The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.
The sub-index for the central region, which covers a basket of properties in postal districts 1-4 and 9-11, grew 2.5 per cent in May over the preceding month, and 7.9 per cent year to date.
The sub-index for non-Central region rose at a slightly faster clip, of 2.6 per cent month-on-month in May and 9.1 per cent year to date.
Developers' sales have slowed since May as Europe's economic crisis affected financial markets, causing home buyers to withdraw to the sidelines, even ahead of the June school holidays and World Cup season. The market is expected to enter a consolidation phase, marked by slower sales as developers try their best to maintain prices and potential buyers hold back their purchases, hoping for price cuts.
Tomorrow, the Urban Redevelopment Authority will release its second quarter flash estimate for the official private home price index. In Q1, the index climbed 5.6 per cent over the preceding quarter. CB Richard Ellis yesterday predicted a 2-3 per cent quarter-on-quarter rise in this index for Q2. URA's index covers both completed and uncompleted properties, including the new launches market.
'The price points of new mass-market projects launched in the second quarter were at similar levels to those launched in the previous quarter, but those in the mid-tier segment (city-fringe locations and landed homes) have inched up slightly,' the property consultancy said.
Joseph Tan, executive director (residential) at the firm, forecasts that home prices are likely to remain firm despite his prediction that developers' new private homes sales will slow to about 2,000 units in Q3 from an estimated 4,000 units in Q2 and 4,380 units in Q1. 'Home prices are likely to stay stable given the positive outlook on the economy and strong boom in manufacturing and exports,' he added.
CBRE estimates that developers sold about 600-700 private homes in June, compared with 1,078 homes in May and 2,207 units in April.
The developers are estimated to have sold 8,300 units in the first half of this year. They sold 14,688 new homes for the whole of last year.
Commenting on second- quarter sales in the developer sales or primary market, the property consulting group said: 'The projects that sold well were mostly in the low to mid-tier price range. Sales of new upmarket homes moved at a slower pace in the second quarter as foreign investors held back their purchases due to the weakening of some foreign currencies against the Singapore dollar.'
Based on caveats lodged, HDB upgraders' share of new private home purchases slipped from 37.9 per cent in Q1 to 33.7 per cent in Q2. 'The reduction could be attributed to a smaller supply of mass-market type of projects being launched in the second quarter compared to the first quarter,' it added.
In the resale market, CBRE estimates that some 3,400-3,600 private homes changed hands in Q2, about 15-20 per cent lower than the 4,261 units in Q1. 'Subsales numbered around 500 in Q2, down from 806 in the preceding quarter, as the market became less bullish and sellers were mindful of the stamp duty payable if they sold their property within a year of purchase,' it said. Subsales and resales refer to secondary market transactions; subsales involve projects that have yet to receive Certificate of Statutory Completion (CSC), while resales involve projects with CSC.
NUS's overall SRPI is now 36.1 per cent above the post-financial crisis low in March last year. Over the same period, the growth for the central region has been 41.7 per cent and that for the non-central region, 33.2 per cent.
Despite the stronger increase in the central region, the flash estimate index for May for the location was still 3.7 per cent shy of the pre-financial crisis peak in November 2007. In contrast, for the non-central region, the latest index has already exceeded its respective January 2008 pre-crisis peak by 11.1 per cent. As a result, the overall SRPI flash estimate index for May is 5.5 per cent above its November 2007 high.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : S'pore slips a notch in expat living cost ranking
Business Times - 30 Jun 2010
S'pore slips a notch in expat living cost ranking
In Asia-Pac, it's now fourth, after Tokyo, Osaka, HK: survey
By FELDA CHAY
SINGAPORE is the 11th most expensive city in the world for expatriates, one place lower than its 10th position last year, says HR consultancy firm Mercer.
But the city moved up a notch to fourth place among cities in Asia-Pacific - which for the first time has three cities in the top 10 list of the dearest places for expats.
Tokyo remains the most expensive city in Asia-Pacific, with sister city Osaka second, and Hong Kong third. Singapore and Seoul round out the top five.
Cathy Loose, Asia-Pacific global mobility leader at Mercer's information product solutions business, said: 'Cities in Asia, such as Tokyo and Osaka, continue to be the most expensive cities given the relatively strong yen against other major currencies such as the US dollar.
'Other high-ranking cities such as Hong Kong, Singapore and Beijing remain relatively the same in terms of overall cost-of-living ranking.'
Part of the reason Asian cities feature more prominently in the worldwide top 10 list is the rise in residential property prices in the region, said Mercer senior researcher Nathalie Constantin-Metral.
'At the end of 2009 and the beginning of 2010, residential property prices in many Asian countries rose as the economic environment began to stabilise and demand for good expat housing increased,' said Ms Constantin-Metral.
Among the 214 cities surveyed by Mercer, Tokyo was ranked second worldwide, giving up its place as the world's most costly city for expats to Angola's capital Luanda.
Ndjamena, in the central African nation of Chad, was placed third, followed by Moscow, then Geneva.
Mercer said the high living costs in some African cities reflects the continent's increasing economic importance across all business sectors.
'We've seen an increase in demand for information on African cities from across the business spectrum - mining, financial services, airlines, manufacturing, utilities and energy companies,' said Ms Constantin-Metral. 'Many people assume that cities in the developing world are cheap, but this isn't necessarily true for expatriates working there.'
In particular, the cost of good, secure accommodation can be 'extraordinarily high', she said.
Mercer's Cost of Living survey covers 214 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
New York is used as the base city for the index, and all cities are compared against the Big Apple. Currency movements are measured against the US dollar.
The cost of housing - often the biggest expense for expats - plays an important part in determining where cities are ranked.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
S'pore slips a notch in expat living cost ranking
In Asia-Pac, it's now fourth, after Tokyo, Osaka, HK: survey
By FELDA CHAY
SINGAPORE is the 11th most expensive city in the world for expatriates, one place lower than its 10th position last year, says HR consultancy firm Mercer.
But the city moved up a notch to fourth place among cities in Asia-Pacific - which for the first time has three cities in the top 10 list of the dearest places for expats.
Tokyo remains the most expensive city in Asia-Pacific, with sister city Osaka second, and Hong Kong third. Singapore and Seoul round out the top five.
Cathy Loose, Asia-Pacific global mobility leader at Mercer's information product solutions business, said: 'Cities in Asia, such as Tokyo and Osaka, continue to be the most expensive cities given the relatively strong yen against other major currencies such as the US dollar.
'Other high-ranking cities such as Hong Kong, Singapore and Beijing remain relatively the same in terms of overall cost-of-living ranking.'
Part of the reason Asian cities feature more prominently in the worldwide top 10 list is the rise in residential property prices in the region, said Mercer senior researcher Nathalie Constantin-Metral.
'At the end of 2009 and the beginning of 2010, residential property prices in many Asian countries rose as the economic environment began to stabilise and demand for good expat housing increased,' said Ms Constantin-Metral.
Among the 214 cities surveyed by Mercer, Tokyo was ranked second worldwide, giving up its place as the world's most costly city for expats to Angola's capital Luanda.
Ndjamena, in the central African nation of Chad, was placed third, followed by Moscow, then Geneva.
Mercer said the high living costs in some African cities reflects the continent's increasing economic importance across all business sectors.
'We've seen an increase in demand for information on African cities from across the business spectrum - mining, financial services, airlines, manufacturing, utilities and energy companies,' said Ms Constantin-Metral. 'Many people assume that cities in the developing world are cheap, but this isn't necessarily true for expatriates working there.'
In particular, the cost of good, secure accommodation can be 'extraordinarily high', she said.
Mercer's Cost of Living survey covers 214 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
New York is used as the base city for the index, and all cities are compared against the Big Apple. Currency movements are measured against the US dollar.
The cost of housing - often the biggest expense for expats - plays an important part in determining where cities are ranked.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Tuesday, June 29, 2010
BT : Gains in London home prices slow as owners decide to sell
Business Times - 29 Jun 2010
Gains in London home prices slow as owners decide to sell
More luxury houses and apartments on market as market recovers: Savills
(LONDON) Luxury-home prices in central London increased by the smallest amount in five quarters after a year-long recovery in values persuaded more owners to put apartments and houses on the market, Savills plc said.
The average value of a home costing more than £1 million (S$2.09 million) rose 0.6 per cent in the second quarter from the first three months of the year, according to the London-based property broker. Prices were 12 per cent higher than a year earlier, down from an annual gain of almost 17 per cent in the first quarter.
'It now seems clear we're at a tipping point' as more stock has come onto the market just as election uncertainty and planned government budget cuts hurt demand, Yolande Barnes, head of residential research at Savills, said in the statement.
Prices will fall about 4 per cent in the second half as the fragile economic recovery and higher taxes dampen appetites for homes in neighbourhoods like Mayfair, Kensington and Notting Hill, Barnes predicted. She expects values to decline one per cent in the full year, following an 8.8 per cent gain in 2009.
Luxury property values have gained every month since March last year as buyers competed for a limited number of homes for sale. Prices increased 3 per cent in first quarter and 4.3 per cent in the last three months of 2009. The second quarter increase was the smallest since an 18-month slide in prices bottomed out in March 2009.
Chancellor of the Exchequer George Osborne announced last week that from June 23 the tax rate on profits from the sale of rental properties or second homes will rise to 28 per cent from 18 per cent for UK taxpayers with total annual income exceeding £37,400.
Brokers reported a pickup in properties put on the market after a plan announced by the governing Conservative and Liberal Democrat parties implied that the capital gains tax rate would increase to as much as 50 per cent.
From April, individuals earning more than £150,000 a year are subject to a 50 per cent income tax levy. Mr Osborne also left in place the previous administration's plan to raise property transfer tax, known as stamp duty, for homes costing more than £1 million to 5 per cent in April 2011 from 4 per cent now.
The tax changes are unlikely to reduce demand for London real estate from overseas buyers, who account for half the purchases and 63 per cent of deals involving properties worth more £15 million, Savills said.
While values are 10 per cent below the peak reached in the third quarter of 2007, the pound's slide means that in dollar terms prices are down by 33 per cent, Savills said.
Properties selling for more than £5 million appreciated by 1.3 per cent from the end of March, the broker said, while homes costing in excess of £15 million gained 1.5 per cent in the quarter. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Tipping point: More stock has come onto the market just as election uncertainty and planned government budget cuts hurt demand, said Yolande Barnes of Savills
Gains in London home prices slow as owners decide to sell
More luxury houses and apartments on market as market recovers: Savills
(LONDON) Luxury-home prices in central London increased by the smallest amount in five quarters after a year-long recovery in values persuaded more owners to put apartments and houses on the market, Savills plc said.
The average value of a home costing more than £1 million (S$2.09 million) rose 0.6 per cent in the second quarter from the first three months of the year, according to the London-based property broker. Prices were 12 per cent higher than a year earlier, down from an annual gain of almost 17 per cent in the first quarter.
'It now seems clear we're at a tipping point' as more stock has come onto the market just as election uncertainty and planned government budget cuts hurt demand, Yolande Barnes, head of residential research at Savills, said in the statement.
Prices will fall about 4 per cent in the second half as the fragile economic recovery and higher taxes dampen appetites for homes in neighbourhoods like Mayfair, Kensington and Notting Hill, Barnes predicted. She expects values to decline one per cent in the full year, following an 8.8 per cent gain in 2009.
Luxury property values have gained every month since March last year as buyers competed for a limited number of homes for sale. Prices increased 3 per cent in first quarter and 4.3 per cent in the last three months of 2009. The second quarter increase was the smallest since an 18-month slide in prices bottomed out in March 2009.
Chancellor of the Exchequer George Osborne announced last week that from June 23 the tax rate on profits from the sale of rental properties or second homes will rise to 28 per cent from 18 per cent for UK taxpayers with total annual income exceeding £37,400.
Brokers reported a pickup in properties put on the market after a plan announced by the governing Conservative and Liberal Democrat parties implied that the capital gains tax rate would increase to as much as 50 per cent.
From April, individuals earning more than £150,000 a year are subject to a 50 per cent income tax levy. Mr Osborne also left in place the previous administration's plan to raise property transfer tax, known as stamp duty, for homes costing more than £1 million to 5 per cent in April 2011 from 4 per cent now.
The tax changes are unlikely to reduce demand for London real estate from overseas buyers, who account for half the purchases and 63 per cent of deals involving properties worth more £15 million, Savills said.
While values are 10 per cent below the peak reached in the third quarter of 2007, the pound's slide means that in dollar terms prices are down by 33 per cent, Savills said.
Properties selling for more than £5 million appreciated by 1.3 per cent from the end of March, the broker said, while homes costing in excess of £15 million gained 1.5 per cent in the quarter. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Tipping point: More stock has come onto the market just as election uncertainty and planned government budget cuts hurt demand, said Yolande Barnes of Savills
BT : Dubai house prices unlikely to recover before 2011
Business Times - 29 Jun 2010
Dubai house prices unlikely to recover before 2011
Residential and commercial property market hit by oversupply: report
(DUBAI) Dubai house prices are not seen recovering before 2011 at the earliest while oversupply in commercial property will boost vacancy rates to more than 50 per cent next year Jones Lang LaSalle said on Sunday. A total of 26,000 homes are expected to be completed in 2010 and 25,000 in 2011, bringing total residential stock to 320,000 homes by the end of 2011, up from 287,000 at the end of the second quarter, the property consultancy said in a report.
'Despite the recent stabilisation in pricing levels, Dubai's residential market will experience a situation of oversupply and prices are not expected to recover before 2011 at the earliest,' the report said.
'Finance is a key factor in market recovery. The residential market has shown signs of improved lending in 2010 as more banks are injecting liquidity into the mortgage market.' Dubai's once booming property sector collapsed in the wake of the global financial crisis, leaving developers and customers with huge debts and several major projects unfinished.
Average apartment rents fell 10 per cent in the second quarter from the same period a year ago, and were down 4 per cent from the first quarter this year. Average villa rents fell 23 per cent in the second quarter from the second quarter of 2009 and were down 11 per cent from the first quarter this year. Greatest declines were in the luxury and high-end for both categories, the report said.
Apartment prices remained stable while villa prices rose marginally over the quarter.
While Dubai's office market is expected to experience a supply overhang, there is still a shortage of good quality supply, the report said.
2010 represents the peak in new supply with 20 million square feet of supply expected, but only 25 per cent of that is currently complete and further delays are expected\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Taking stock: 2010 represents the peak in new supply with 20 million square feet of supply expected, but only 25 per cent of that is currently complete and further delays are expected
Dubai house prices unlikely to recover before 2011
Residential and commercial property market hit by oversupply: report
(DUBAI) Dubai house prices are not seen recovering before 2011 at the earliest while oversupply in commercial property will boost vacancy rates to more than 50 per cent next year Jones Lang LaSalle said on Sunday. A total of 26,000 homes are expected to be completed in 2010 and 25,000 in 2011, bringing total residential stock to 320,000 homes by the end of 2011, up from 287,000 at the end of the second quarter, the property consultancy said in a report.
'Despite the recent stabilisation in pricing levels, Dubai's residential market will experience a situation of oversupply and prices are not expected to recover before 2011 at the earliest,' the report said.
'Finance is a key factor in market recovery. The residential market has shown signs of improved lending in 2010 as more banks are injecting liquidity into the mortgage market.' Dubai's once booming property sector collapsed in the wake of the global financial crisis, leaving developers and customers with huge debts and several major projects unfinished.
Average apartment rents fell 10 per cent in the second quarter from the same period a year ago, and were down 4 per cent from the first quarter this year. Average villa rents fell 23 per cent in the second quarter from the second quarter of 2009 and were down 11 per cent from the first quarter this year. Greatest declines were in the luxury and high-end for both categories, the report said.
Apartment prices remained stable while villa prices rose marginally over the quarter.
While Dubai's office market is expected to experience a supply overhang, there is still a shortage of good quality supply, the report said.
2010 represents the peak in new supply with 20 million square feet of supply expected, but only 25 per cent of that is currently complete and further delays are expected\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Taking stock: 2010 represents the peak in new supply with 20 million square feet of supply expected, but only 25 per cent of that is currently complete and further delays are expected
BT : Sales holding up but outlook cautious: UK housebuilder
Business Times - 29 Jun 2010
Sales holding up but outlook cautious: UK housebuilder
(LONDON) British housebuilder Taylor Wimpey plc said sales had held up in the first half of the year, but could offer little reassurance for the full year as consumer confidence remains depressed.
Taylor Wimpey, the first volume housebuilder to update investors since the UK general election and subsequent emergency budget, said sales had been dented in the second quarter as consumers delayed making big ticket purchases around the poll.
But the UK's third-largest housebuilder by market value said sales had recovered in recent weeks, echoing comments from luxury apartment developer Berkeley Group on Friday.
This will give some comfort to the sector, which has been struggling to regain a sure footing after the downturn knocked building activity, caused many builders to turn to shareholders for cash and wiped a fifth off property values.
But low mortgage availability - especially for first time buyers - and broader macro-economic uncertainty is denting short-term confidence in the sector.
'With ongoing political and economic uncertainty, we continue to run the business on a cautious basis, with selective land investment and an ongoing focus on costs and cash,' said Taylor Wimpey in a statement.
The company's comments come after a survey by mortgage lender Nationwide showed UK consumer confidence was at its lowest level in almost a year in May, reflecting concerns about the UK economy and unemployment which is set to rise sharply in the wake of government spending cuts.
House prices fell 0.4 per cent in May according to mortgage lender Halifax, while Nationwide reported a 0.5 per cent rise for the month, half the rate of the previous two months. The Land Registry said prices had fallen 0.2 per cent on the month.
Further pain may be on the cards as the government looks to reform the planning system. Taylor Wimpey said any change needs to be implemented with a clear transition period and with regard to cultural change.
The reform of the planning system - aimed at giving greater power to the local areas - is causing a headache for the building sector as some local authorities have already put planning decisions on hold until there is greater certainty from the coalition government.
Taylor Wimpey said it expects to complete 4,650 homes in the first half at an average selling price of £167,000 (S$350,000). This compares with 4,702 homes at an average selling price of £153,000 in the same period last year.
Taylor Wimpey, the most highly geared UK housebuilder with net debt of £650 million, said trading in the US market was volatile in the year-to-date, but it sees 'a steadier, clearer picture' towards the end of the year. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Sales holding up but outlook cautious: UK housebuilder
(LONDON) British housebuilder Taylor Wimpey plc said sales had held up in the first half of the year, but could offer little reassurance for the full year as consumer confidence remains depressed.
Taylor Wimpey, the first volume housebuilder to update investors since the UK general election and subsequent emergency budget, said sales had been dented in the second quarter as consumers delayed making big ticket purchases around the poll.
But the UK's third-largest housebuilder by market value said sales had recovered in recent weeks, echoing comments from luxury apartment developer Berkeley Group on Friday.
This will give some comfort to the sector, which has been struggling to regain a sure footing after the downturn knocked building activity, caused many builders to turn to shareholders for cash and wiped a fifth off property values.
But low mortgage availability - especially for first time buyers - and broader macro-economic uncertainty is denting short-term confidence in the sector.
'With ongoing political and economic uncertainty, we continue to run the business on a cautious basis, with selective land investment and an ongoing focus on costs and cash,' said Taylor Wimpey in a statement.
The company's comments come after a survey by mortgage lender Nationwide showed UK consumer confidence was at its lowest level in almost a year in May, reflecting concerns about the UK economy and unemployment which is set to rise sharply in the wake of government spending cuts.
House prices fell 0.4 per cent in May according to mortgage lender Halifax, while Nationwide reported a 0.5 per cent rise for the month, half the rate of the previous two months. The Land Registry said prices had fallen 0.2 per cent on the month.
Further pain may be on the cards as the government looks to reform the planning system. Taylor Wimpey said any change needs to be implemented with a clear transition period and with regard to cultural change.
The reform of the planning system - aimed at giving greater power to the local areas - is causing a headache for the building sector as some local authorities have already put planning decisions on hold until there is greater certainty from the coalition government.
Taylor Wimpey said it expects to complete 4,650 homes in the first half at an average selling price of £167,000 (S$350,000). This compares with 4,702 homes at an average selling price of £153,000 in the same period last year.
Taylor Wimpey, the most highly geared UK housebuilder with net debt of £650 million, said trading in the US market was volatile in the year-to-date, but it sees 'a steadier, clearer picture' towards the end of the year. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : HK's mortgage loan approval up 34% in May
Business Times - 29 Jun 2010
HK's mortgage loan approval up 34% in May
(HONG KONG) New mortgage loans approved in Hong Kong in May rose by 34.3 per cent from a year earlier and increased 0.1 per cent in value terms from April, figures from the Hong Kong Monetary Authority (HKMA) showed.
New loans approved in May totalled HK$37.8 billion (S$6.74 billion), the HKMA said yesterday. Month-on-month figures are not seasonally adjusted.
Loan approvals for new property rose 0.7 per cent month-on-month in May, while loan demand for mortgages on existing property fell 4.5 per cent. Approvals for refinancing loans increased by 10.5 per cent against April.
Following is a summary of data from the authority for May compared with April: The number of new mortgage applications fell 11.1 per cent to 20,283 from the previous month's 22,818.
· The value of new mortgage loans drawn down increased by 12.7 per cent to HK$28.9 billion.
· The outstanding value of mortgage loans increased 1.5 per cent to HK$675.6 billion.
· The mortgage delinquency ratio and re-scheduled loan ratio were steady at 0.03 per cent and 0.06 per cent, respectively. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
HK's mortgage loan approval up 34% in May
(HONG KONG) New mortgage loans approved in Hong Kong in May rose by 34.3 per cent from a year earlier and increased 0.1 per cent in value terms from April, figures from the Hong Kong Monetary Authority (HKMA) showed.
New loans approved in May totalled HK$37.8 billion (S$6.74 billion), the HKMA said yesterday. Month-on-month figures are not seasonally adjusted.
Loan approvals for new property rose 0.7 per cent month-on-month in May, while loan demand for mortgages on existing property fell 4.5 per cent. Approvals for refinancing loans increased by 10.5 per cent against April.
Following is a summary of data from the authority for May compared with April: The number of new mortgage applications fell 11.1 per cent to 20,283 from the previous month's 22,818.
· The value of new mortgage loans drawn down increased by 12.7 per cent to HK$28.9 billion.
· The outstanding value of mortgage loans increased 1.5 per cent to HK$675.6 billion.
· The mortgage delinquency ratio and re-scheduled loan ratio were steady at 0.03 per cent and 0.06 per cent, respectively. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : StayWell brings Australia hotel brands to Singapore
Business Times - 29 Jun 2010
StayWell brings Australia hotel brands to Singapore
Park Regis hotel opening in Sept; Leisure Inn plans on drawing board
By EMILYN YAP
AUSTRALIA-BASED StayWell Hospitality Group is looking to stamp its Park Regis and Leisure Inn brands on more properties in Singapore and the rest of Asia.
The first Park Regis hotel here is set to open in September, and the group also has the country's first Leisure Inn hotel on the drawing board.
StayWell may be rather new to Singapore, but it is not venturing unassisted. The group's chairman is Asok Kumar Hiranandani, who built up property firm Royal Brothers with his brother, Raj Kumar.
Park Regis Investments - in which Mr Asok Kumar Hiranandani is a shareholder - won the bid for a piece of state land at Merchant Road in 2007. It has invested around $175 million in total to build the 203-room four-star Park Regis Singapore, as well as a seven-storey office block, on the site.
The hotel is targeting business travellers and room rates could start in the range of $200. StayWell is expecting an occupancy rate of 70-80 per cent. Talks to lease the office space out are underway.
The hotel will be a 'stunning investment' in the next few years, Mr Hiranandani told The Business Times. His confidence stems from the hotel's location near Clarke Quay and from the opening of the two integrated resorts.
To stand out from the competition, Park Regis Singapore will incorporate 'bits of Singaporean and Australian flavours', said StayWell CEO and managing director Simon Wan. For a start, it has picked an Australian, Jason Dowd, as the hotel's general manager.
'We will make sure that from the composition of the food, the composition of the wine, the television channels in the room to the staff uniforms, there will be some Australian flavour complemented by local themes,' Mr Wan said.
There are generally few good hotels up for sale in Singapore, so those on the market tend to generate interest among investors and observers. According to Mr Hiranandani, Park Regis Singapore has already attracted investors' interest.
'If someone gives us a management contract back for at least 15 years, we'll be more than happy to sell the hotel . . . The intention of bringing the brand to Singapore was to take it out of Australia and expand it to Asia,' he said.
'But I'd rather open the hotel first and get the income going. If it's an attractive price, we'll take the offer and buy another site.'
StayWell hopes to follow up with another hotel here under the three-star Leisure Inn brand. The Park Regis and Leisure Inn lines will complement each other, Mr Wan said, adding that there is strong demand for well-located and well-managed hotels in the three-star market.
He cited the success of Ibis Singapore as an example. The hotel, managed by another hospitality group Accor, opened in February last year and has achieved an above 90 per cent occupancy rate in the last three months.
But StayWell will not be rushing into any deal just so it can set up the Leisure Inn hotel. 'Because of high land costs, we have to be very careful in approaching this,' Mr Hiranandani said.
StayWell has 24 hotels in its portfolio and owns 14 of them. The group is looking to expand in Asia, and is in negotiations to buy 38 hotels in China.
Mr Hiranandani also said that he has bigger plans for StayWell but declined to elaborate. All he shared was: 'We are the only unlisted hotel operator out there.'
So is StayWell eyeing a public listing? Mr Hiranandani's son Bobby, who has been involved in the day-to-day running of his father's hospitality business, said: 'There are many options we are looking at. A listing is somewhat possible down the road.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Brains behind the business: Bobby Hiranandani (centre); Mr Dowd (left) and Elaine Lim, director of sales and marketing, Park Regis Singapore. The hotel is targeting business travellers and room rates could start in the range of $200. StayWell is expecting an occupancy rate of 70-80 per cent and talks to lease the office space out are underway
StayWell brings Australia hotel brands to Singapore
Park Regis hotel opening in Sept; Leisure Inn plans on drawing board
By EMILYN YAP
AUSTRALIA-BASED StayWell Hospitality Group is looking to stamp its Park Regis and Leisure Inn brands on more properties in Singapore and the rest of Asia.
The first Park Regis hotel here is set to open in September, and the group also has the country's first Leisure Inn hotel on the drawing board.
StayWell may be rather new to Singapore, but it is not venturing unassisted. The group's chairman is Asok Kumar Hiranandani, who built up property firm Royal Brothers with his brother, Raj Kumar.
Park Regis Investments - in which Mr Asok Kumar Hiranandani is a shareholder - won the bid for a piece of state land at Merchant Road in 2007. It has invested around $175 million in total to build the 203-room four-star Park Regis Singapore, as well as a seven-storey office block, on the site.
The hotel is targeting business travellers and room rates could start in the range of $200. StayWell is expecting an occupancy rate of 70-80 per cent. Talks to lease the office space out are underway.
The hotel will be a 'stunning investment' in the next few years, Mr Hiranandani told The Business Times. His confidence stems from the hotel's location near Clarke Quay and from the opening of the two integrated resorts.
To stand out from the competition, Park Regis Singapore will incorporate 'bits of Singaporean and Australian flavours', said StayWell CEO and managing director Simon Wan. For a start, it has picked an Australian, Jason Dowd, as the hotel's general manager.
'We will make sure that from the composition of the food, the composition of the wine, the television channels in the room to the staff uniforms, there will be some Australian flavour complemented by local themes,' Mr Wan said.
There are generally few good hotels up for sale in Singapore, so those on the market tend to generate interest among investors and observers. According to Mr Hiranandani, Park Regis Singapore has already attracted investors' interest.
'If someone gives us a management contract back for at least 15 years, we'll be more than happy to sell the hotel . . . The intention of bringing the brand to Singapore was to take it out of Australia and expand it to Asia,' he said.
'But I'd rather open the hotel first and get the income going. If it's an attractive price, we'll take the offer and buy another site.'
StayWell hopes to follow up with another hotel here under the three-star Leisure Inn brand. The Park Regis and Leisure Inn lines will complement each other, Mr Wan said, adding that there is strong demand for well-located and well-managed hotels in the three-star market.
He cited the success of Ibis Singapore as an example. The hotel, managed by another hospitality group Accor, opened in February last year and has achieved an above 90 per cent occupancy rate in the last three months.
But StayWell will not be rushing into any deal just so it can set up the Leisure Inn hotel. 'Because of high land costs, we have to be very careful in approaching this,' Mr Hiranandani said.
StayWell has 24 hotels in its portfolio and owns 14 of them. The group is looking to expand in Asia, and is in negotiations to buy 38 hotels in China.
Mr Hiranandani also said that he has bigger plans for StayWell but declined to elaborate. All he shared was: 'We are the only unlisted hotel operator out there.'
So is StayWell eyeing a public listing? Mr Hiranandani's son Bobby, who has been involved in the day-to-day running of his father's hospitality business, said: 'There are many options we are looking at. A listing is somewhat possible down the road.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Brains behind the business: Bobby Hiranandani (centre); Mr Dowd (left) and Elaine Lim, director of sales and marketing, Park Regis Singapore. The hotel is targeting business travellers and room rates could start in the range of $200. StayWell is expecting an occupancy rate of 70-80 per cent and talks to lease the office space out are underway
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