Jul 17, 2010
More HDB shops to get upgrading help
HDB to provide $6m for shops to spruce up, promote themselves
By Ang Yiying
ABOUT 3,400 Housing Board shops in 35 neighbourhoods or town centres will get a chance to spruce up or promote themselves - and perhaps stave off competition from swanky new heartland malls.
The shops will be included in the third phase of the Housing Board's Revitalisation of Shops scheme.
The 35 places included in the latest phase range from Chai Chee Neighbourhood Centre to Toa Payoh Lorong 7 Neighbourhood Centre.
Under this phase, the HDB will provide about $6 million that can be used to upgrade common areas where the shops are located or to carry out promotional activities, or both.
The co-funding scheme was started in 2007. In the first two phases, the HDB spent $17 million, benefiting more than 3,000 shops in 34 areas.
There are 14,600 HDB shops islandwide.
Stores that are in areas not yet included in the scheme will also get a boost: The HDB will give those that want to upgrade a half-month rent-free period, subject to some conditions. This means the stores can use the money they save on rent to add extra fittings and other equipment to make themselves more attractive.
The latest moves were announced by Senior Minister of State for National Development Grace Fu at an HDB retail seminar held at the HDB Hub auditorium in Toa Payoh yesterday.
Speaking in Mandarin to 400 representatives from HDB shops, she noted that a recent survey had shown more positive business sentiment and greater awareness of government assistance schemes.
But, she said, shops have a role to play too, and should keep up with customer demands and improve business management to succeed.
'You should continually improve your knowledge of retail practices and open your minds to new ways to create value and boost productivity.'
HDB shops have been in the spotlight recently, with many complaining of falling business in the face of competition from new heartland malls, as well as an 'invasion' of big retail chains into neighbourhoods.
Yesterday, Mr Yeo Hiang Meng, the president of the Federation of Merchants' Associations Singapore, which represents about 30 per cent of HDB shops islandwide through member associations, said it has received feedback that shops on the revitalisation scheme have seen business improve by 10 per cent to 30 per cent.
Mr Yeo, who runs a goldsmith and jewellery shop in Toa Payoh Central, said heartland shops had a distinctive character and could even be a way of attracting tourists. He said: 'Shopping in the heartland is a unique feature of Singapore.'
Yesterday, the HDB also launched a mobile version of its where2shop@HDB website - which was started last year for people to get quick information about HDB shops and their products - for easier navigation on mobile phones. It can be accessed at www.mobile.hdb.gov.sg
ayiying@sph.com.sg
Thursday, July 22, 2010
ST : Coming: Glass bridge over Orchard Road
Jul 17, 2010
Coming: Glass bridge over Orchard Road
2013 completion for entire project comprising bridge and 2 new buildings
By Esther Teo
ORCHARD Road's first pedestrian bridge will connect two new buildings coming up in the vicinity of Somerset MRT station.
One of the project managers promises the glass bridge, to link the third levels of the two buildings diagonally across Orchard Road, will enhance the world-famous shopping strip.
The bridge will 'offer a new postcard view of Orchard Road', says United Engineers Limited (UEL) group managing director and chief executive Jackson Yap.
Christmas might also look a little different, with new decorative possibilities for the bridge during the annual Orchard Road Christmas Light-up, Mr Yap adds.
The project is set to be completed in the second half of 2013.
Mr Tan Szue Hann, architecture editor of Singapore Architect magazine, has some suggestions though, saying the bridge could have been designed as a public venue rather than just a decorated, functional overhead crossing. 'We're definitely not short of local examples where bridges become pleasant garden paths or are lined with retail facilities. This might have been a more dynamic proposition,' he says.
One building - between Orchard Central and 313@Somerset - will be a mixed development on the site of the former Specialists' Centre-Phoenix Hotel owned by OCBC Bank. The 21-storey building will comprise a four-star hotel (about 500 rooms) and 20,800 sq m of retail space.
It will also be linked to Somerset MRT station via a basement.
The other building will be 11 storeys high and boast 3,500 sq m of office space and 2,700 sq m of retail space. This 1,400 sq m site is owned by Great Eastern Holdings, a subsidiary of OCBC Bank.
The two new buildings will also be linked by an underground pass as wide as CityLink Mall.
UEL is the developer of the former Specialists' Centre-Phoenix Hotel site. The entire project, unveiled at a groundbreaking ceremony yesterday, will cost more than $700 million.
Retail specialist Lynda Wee says the overhead bridge would provide shoppers with convenience and a more interactive shopping experience, adding: 'It also seems to be built quite high up so it's not like an overhead bridge which might be an eyesore.'
Details, including the retail tenant mix, will be released soon, although the Singapore Tourism Board's new visitors centre has been confirmed as a tenant.
Mr Vincent Soh, executive director of OCBC property services, is bullish. 'The economy is in an upturn now. Also, come 2013, there are unlikely to be any other malls completed, we are actually almost the only one left... 2013 is just perfect timing for our development,' he says.
The project will incorporate two open plazas - one on each side of Orchard Road - which will create a gathering point and entertainment platform for buskers, art performances and outdoor events, Mr Yap says.
esthert@sph.com.sg
The project will incorporate two open plazas - one on each side of Orchard Road - which the developers say will create a gathering point and entertainment platform. -- PHOTO: UNITED ENGINEERS LIMITED
Coming: Glass bridge over Orchard Road
2013 completion for entire project comprising bridge and 2 new buildings
By Esther Teo
ORCHARD Road's first pedestrian bridge will connect two new buildings coming up in the vicinity of Somerset MRT station.
One of the project managers promises the glass bridge, to link the third levels of the two buildings diagonally across Orchard Road, will enhance the world-famous shopping strip.
The bridge will 'offer a new postcard view of Orchard Road', says United Engineers Limited (UEL) group managing director and chief executive Jackson Yap.
Christmas might also look a little different, with new decorative possibilities for the bridge during the annual Orchard Road Christmas Light-up, Mr Yap adds.
The project is set to be completed in the second half of 2013.
Mr Tan Szue Hann, architecture editor of Singapore Architect magazine, has some suggestions though, saying the bridge could have been designed as a public venue rather than just a decorated, functional overhead crossing. 'We're definitely not short of local examples where bridges become pleasant garden paths or are lined with retail facilities. This might have been a more dynamic proposition,' he says.
One building - between Orchard Central and 313@Somerset - will be a mixed development on the site of the former Specialists' Centre-Phoenix Hotel owned by OCBC Bank. The 21-storey building will comprise a four-star hotel (about 500 rooms) and 20,800 sq m of retail space.
It will also be linked to Somerset MRT station via a basement.
The other building will be 11 storeys high and boast 3,500 sq m of office space and 2,700 sq m of retail space. This 1,400 sq m site is owned by Great Eastern Holdings, a subsidiary of OCBC Bank.
The two new buildings will also be linked by an underground pass as wide as CityLink Mall.
UEL is the developer of the former Specialists' Centre-Phoenix Hotel site. The entire project, unveiled at a groundbreaking ceremony yesterday, will cost more than $700 million.
Retail specialist Lynda Wee says the overhead bridge would provide shoppers with convenience and a more interactive shopping experience, adding: 'It also seems to be built quite high up so it's not like an overhead bridge which might be an eyesore.'
Details, including the retail tenant mix, will be released soon, although the Singapore Tourism Board's new visitors centre has been confirmed as a tenant.
Mr Vincent Soh, executive director of OCBC property services, is bullish. 'The economy is in an upturn now. Also, come 2013, there are unlikely to be any other malls completed, we are actually almost the only one left... 2013 is just perfect timing for our development,' he says.
The project will incorporate two open plazas - one on each side of Orchard Road - which will create a gathering point and entertainment platform for buskers, art performances and outdoor events, Mr Yap says.
esthert@sph.com.sg
The project will incorporate two open plazas - one on each side of Orchard Road - which the developers say will create a gathering point and entertainment platform. -- PHOTO: UNITED ENGINEERS LIMITED
ST : Cash premiums for HDB resale flats rise
Jul 16, 2010
Cash premiums for HDB resale flats rise
By Jessica Cheam
THE cash premium paid by buyers chasing Housing Board (HDB) resale flats has risen islandwide in the second quarter, with many flat types attracting payments of between $30,000 and $40,000 above the market valuation.
An increasingly buoyant market sent the premiums - called cash-over-valuation (COV) - soaring across numerous towns.
The median outlay is now estimated to be well above the record $25,000 median in the first quarter, according to transaction figures from four property agencies.
The Straits Times has compiled median COV figures by flat type and estate based on the agencies' second-quarter sales to get a snapshot of the market ahead of the official statistics out next week. These agencies - PropNex, ERA Realty, HSR Property and ECG Property - make up almost the entire HDB resale market share.
The median COV is a mid-point: Half the units were sold for a COV above that value, and half below. The figures show that median COVs of three-, four-, five-room and executive flats in many estates are now $30,000 to $40,000.
They were mostly below $30,000 in the first quarter.
Agency bosses predict that the official median COV will be above $30,000 for the second quarter - setting a record in the process.
An HDB spokesman told The Straits Times yesterday that 'preliminary data indicates that the median COV is lower than $35,000'.
It noted that as COV is the result of negotiations between willing buyers and sellers, 'in any market at any given time, there will be high COVs, low and even no COVs'.
Analysts said that high demand amid tight supply is driving up the cash premiums. Others attributed rising COVs to the 'sell high, buy high' phenomenon gripping the resale market.
This means that upgraders and downgraders are selling their flats at high prices and asking for high COVs because they face the same demands when they go into the market to buy.
'This is a case of the cat chasing its tail and prices are spiralling upwards due to this situation,' said ERA Asia Pacific associate director Eugene Lim.
PropNex chief executive Mohamed Ismail noted that there is now 'a lot of lateral movement in the market from upgraders and downgraders', with first-time home buyers mainly left out of the action.
'These buyers are queueing for flats directly from HDB, which are more affordable. The resale market is also propped up by PRs who cannot buy new flats, but need a home urgently,' he added.
Agency data shows that executive flats in estates such as Bishan and Toa Payoh are selling at a median COV of $55,000 to $65,000 respectively.
The Bishan figure is striking as it was only $40,000 in the official first quarter figures. The Toa Payoh median COV then was $63,500.
Median COV levels for four-roomers in the second quarter ranged from $20,000 in Woodlands to $42,000 in Queenstown according to agency data.
The official HDB figures for the first quarter had the range at $21,000, also in Woodlands, to $36,500 in Bukit Timah.
Agency numbers showed Bishan, Toa Payoh, Queenstown and Marine Parade are the red-hot estates, while there are still bargains to be found in Sembawang, Choa Chu Kang, Pasir Ris and Jurong West. The median COVs in these areas have generally stayed around $20,000.
The HDB reiterated yesterday that it is ramping up supply of new flats from 9,000 last year to 16,000 this year to help relieve pressure on the resale market and stabilise it.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the effects of the fresh supply will be felt in the medium term, and that prices and COV levels might inch up further before stabilising.
While first-time buyers might feel the pinch of rising COV levels, some home owners are cheering.
HSR property agent James Choo, 47, said he recently sold a five-room Tampines flat for a couple in their 40s for $480,000 - $80,000 above valuation.
'The sellers were very happy as they could downgrade to a three-room flat with the proceeds and buy it without any loans,' he said.
Still, analysts say there will be a resistance level where buyers will stop buying if COVs get too high.
'This could be above the $35,000 median COV level,' added Mr Mak.
Cash premiums for HDB resale flats rise
By Jessica Cheam
THE cash premium paid by buyers chasing Housing Board (HDB) resale flats has risen islandwide in the second quarter, with many flat types attracting payments of between $30,000 and $40,000 above the market valuation.
An increasingly buoyant market sent the premiums - called cash-over-valuation (COV) - soaring across numerous towns.
The median outlay is now estimated to be well above the record $25,000 median in the first quarter, according to transaction figures from four property agencies.
The Straits Times has compiled median COV figures by flat type and estate based on the agencies' second-quarter sales to get a snapshot of the market ahead of the official statistics out next week. These agencies - PropNex, ERA Realty, HSR Property and ECG Property - make up almost the entire HDB resale market share.
The median COV is a mid-point: Half the units were sold for a COV above that value, and half below. The figures show that median COVs of three-, four-, five-room and executive flats in many estates are now $30,000 to $40,000.
They were mostly below $30,000 in the first quarter.
Agency bosses predict that the official median COV will be above $30,000 for the second quarter - setting a record in the process.
An HDB spokesman told The Straits Times yesterday that 'preliminary data indicates that the median COV is lower than $35,000'.
It noted that as COV is the result of negotiations between willing buyers and sellers, 'in any market at any given time, there will be high COVs, low and even no COVs'.
Analysts said that high demand amid tight supply is driving up the cash premiums. Others attributed rising COVs to the 'sell high, buy high' phenomenon gripping the resale market.
This means that upgraders and downgraders are selling their flats at high prices and asking for high COVs because they face the same demands when they go into the market to buy.
'This is a case of the cat chasing its tail and prices are spiralling upwards due to this situation,' said ERA Asia Pacific associate director Eugene Lim.
PropNex chief executive Mohamed Ismail noted that there is now 'a lot of lateral movement in the market from upgraders and downgraders', with first-time home buyers mainly left out of the action.
'These buyers are queueing for flats directly from HDB, which are more affordable. The resale market is also propped up by PRs who cannot buy new flats, but need a home urgently,' he added.
Agency data shows that executive flats in estates such as Bishan and Toa Payoh are selling at a median COV of $55,000 to $65,000 respectively.
The Bishan figure is striking as it was only $40,000 in the official first quarter figures. The Toa Payoh median COV then was $63,500.
Median COV levels for four-roomers in the second quarter ranged from $20,000 in Woodlands to $42,000 in Queenstown according to agency data.
The official HDB figures for the first quarter had the range at $21,000, also in Woodlands, to $36,500 in Bukit Timah.
Agency numbers showed Bishan, Toa Payoh, Queenstown and Marine Parade are the red-hot estates, while there are still bargains to be found in Sembawang, Choa Chu Kang, Pasir Ris and Jurong West. The median COVs in these areas have generally stayed around $20,000.
The HDB reiterated yesterday that it is ramping up supply of new flats from 9,000 last year to 16,000 this year to help relieve pressure on the resale market and stabilise it.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the effects of the fresh supply will be felt in the medium term, and that prices and COV levels might inch up further before stabilising.
While first-time buyers might feel the pinch of rising COV levels, some home owners are cheering.
HSR property agent James Choo, 47, said he recently sold a five-room Tampines flat for a couple in their 40s for $480,000 - $80,000 above valuation.
'The sellers were very happy as they could downgrade to a three-room flat with the proceeds and buy it without any loans,' he said.
Still, analysts say there will be a resistance level where buyers will stop buying if COVs get too high.
'This could be above the $35,000 median COV level,' added Mr Mak.
ST : Marina Bay to be showcase cycling town
Jul 16, 2010
Marina Bay to be showcase cycling town
MARINA Bay will be criss-crossed by a 16km network of cycling paths by 2014, becoming the first area in the city with such a facility.
When completed, residents and office workers in the area will be able to cycle on bike-dedicated stretches linking the Marina Bay Financial District, Marina Bay Sands integrated resort, Marina Barrage and the future Gardens by the Bay.
A $26 million fund has been set aside for the construction works, which will begin this year.
Marina Bay will also be a showcase of how cycling paths can be developed along with a neighbourhood.
The Transport Ministry said the area was chosen because it is not yet fully built-up, making it easier to install infrastructure and plan the pathways.
On the other hand, areas like Shenton Way and Orchard Road, already built up, are more difficult to retrofit with cycling paths.
Mr Dennis Chong, a sales executive at The Bike Boutique, believes the paths will be popular with expatriates and the young locals who make up the bulk of the shop's customers.
The Bike Boutique offers cyclists who work in the Central Business District a place to shower and to store their bicycles during the work day.
'Having rules on the paths so there's a level of etiquette between cyclists will be important,' he said, adding that the cycling paths were a way to encourage more people to cycle.
Avid cyclist Tay Choon Wei disagrees.
The paths will go some way to promote cycling, said the 32-year-old, but pointed out that the benefits were limited because it would be impossible to connect the whole island with cycling paths.
Ultimately, people need to find a way to get to a cycling path and the only way to it will be by a road, he said.
'Cycling paths further segregate cyclists from the rest of the vehicles on the road and will reinforce motorists' mindset that we don't belong on the roads,' said the cyclist who bikes from his home in Thomson Road to Shenton Way.
'Cycling paths are a bonus, but if motorists just treat us better, we wouldn't even need paths to begin with,' he said.
MARIA ALMENOAR
Mr Filemon Palacios, 38, cycling out of The Bike Boutique on Amoy Street, which offers cyclists a place to shower and store their bikes during the work day. The Filipino bank employee cycles to work three times a week from his home in Upper Changi Road East. -- ST PHOTO: SAMUEL HE
Marina Bay to be showcase cycling town
MARINA Bay will be criss-crossed by a 16km network of cycling paths by 2014, becoming the first area in the city with such a facility.
When completed, residents and office workers in the area will be able to cycle on bike-dedicated stretches linking the Marina Bay Financial District, Marina Bay Sands integrated resort, Marina Barrage and the future Gardens by the Bay.
A $26 million fund has been set aside for the construction works, which will begin this year.
Marina Bay will also be a showcase of how cycling paths can be developed along with a neighbourhood.
The Transport Ministry said the area was chosen because it is not yet fully built-up, making it easier to install infrastructure and plan the pathways.
On the other hand, areas like Shenton Way and Orchard Road, already built up, are more difficult to retrofit with cycling paths.
Mr Dennis Chong, a sales executive at The Bike Boutique, believes the paths will be popular with expatriates and the young locals who make up the bulk of the shop's customers.
The Bike Boutique offers cyclists who work in the Central Business District a place to shower and to store their bicycles during the work day.
'Having rules on the paths so there's a level of etiquette between cyclists will be important,' he said, adding that the cycling paths were a way to encourage more people to cycle.
Avid cyclist Tay Choon Wei disagrees.
The paths will go some way to promote cycling, said the 32-year-old, but pointed out that the benefits were limited because it would be impossible to connect the whole island with cycling paths.
Ultimately, people need to find a way to get to a cycling path and the only way to it will be by a road, he said.
'Cycling paths further segregate cyclists from the rest of the vehicles on the road and will reinforce motorists' mindset that we don't belong on the roads,' said the cyclist who bikes from his home in Thomson Road to Shenton Way.
'Cycling paths are a bonus, but if motorists just treat us better, we wouldn't even need paths to begin with,' he said.
MARIA ALMENOAR
Mr Filemon Palacios, 38, cycling out of The Bike Boutique on Amoy Street, which offers cyclists a place to shower and store their bikes during the work day. The Filipino bank employee cycles to work three times a week from his home in Upper Changi Road East. -- ST PHOTO: SAMUEL HE
ST : Sales of new private homes cool further
Jul 16, 2010
Sales of new private homes cool further
By Joyce Teo
SALES of new private homes slowed further last month as World Cup fever seemed to take its toll on buyer interest.
Homehunters bought 847 units in June, compared with 1,083 units in May and the near-record 2,208 units in April, according to Urban Redevelopment Authority (URA) data released yesterday.
The June figure brings new home sales to 8,518 units for the first half of the year - averaging 1,420 units per month and ahead of last year's average monthly sales volume of 1,224 units, noted CBRE Research.
The URA figures show that launches were also down last month, with 1,010 units released, against 1,135 in May.
Property experts had factored in a quiet June, given that the four-week-long South Africa World Cup, school holidays and the euro zone crisis were likely to divert the attention of potential buyers.
About half of the sales in June were for homes in suburban areas, according to URA, while prime areas proved to be the quietest, accounting for 17 per cent of sales.
Colliers International sees the geographical breakdown of new sales volumes showing intensified price resistance in June.
It points out that mid-tier units in city-fringe areas - or what the URA calls Rest of Central Region - dipped by a sharp 74 per cent to just 275 units from April's peak level of 1,044 units.
The firm's director of research and advisory, Ms Tay Huey Ying, said that this was not surprising, considering URA preliminary data had showed prices in that region gaining the most in the first half, compared to prices in the city centre or suburban areas. And overall, the prices have crossed the previous peaks.
The Minton in Hougang proved to be June's top seller, moving another 173 units at a median price of $871 per sq ft. CBRE Research said that this was higher than the median price of $849 psf reported for the first 204 units sold in May.
A new launch, Waterfront Gold, had a weaker showing with 157 units launched and 77 units sold at a median price of $996 psf.
Jones Lang LaSalle said the total quantum demanded at the project - more than $1 million for a three-bedder - was possibly larger than what the market was willing to absorb.
At the 84-unit La Brisa in Geylang, where most of the units range from 409 sq ft to 689 sq ft, buyers snapped up 82 units at a median price of $960 psf.
Looking ahead, experts expect to see stronger sales in July, noting that already two new launches - 368 Thomson and Terrene in Bukit Timah - have done well.
Yesterday, NOL Group reported selling more than 100 units at Terrene since a private preview started on July 8.
Buyers could come out to buy before the inauspicious Hungry Ghost Festival in August, they said.
Still, CBRE Research predicts buying interest will remain selective, and depend on location, product attributes and price points.
Jones Lang LaSalle said a more moderate buying mood backed by conservative global economic conditions, and hence a continual slowdown in price growth, can be expected.
The Minton in Hougang proved to be last month's top seller, moving another 173 units at a median price of $871 per sq ft. -- PHOTO: KHENG LEONG GROUP
Sales of new private homes cool further
By Joyce Teo
SALES of new private homes slowed further last month as World Cup fever seemed to take its toll on buyer interest.
Homehunters bought 847 units in June, compared with 1,083 units in May and the near-record 2,208 units in April, according to Urban Redevelopment Authority (URA) data released yesterday.
The June figure brings new home sales to 8,518 units for the first half of the year - averaging 1,420 units per month and ahead of last year's average monthly sales volume of 1,224 units, noted CBRE Research.
The URA figures show that launches were also down last month, with 1,010 units released, against 1,135 in May.
Property experts had factored in a quiet June, given that the four-week-long South Africa World Cup, school holidays and the euro zone crisis were likely to divert the attention of potential buyers.
About half of the sales in June were for homes in suburban areas, according to URA, while prime areas proved to be the quietest, accounting for 17 per cent of sales.
Colliers International sees the geographical breakdown of new sales volumes showing intensified price resistance in June.
It points out that mid-tier units in city-fringe areas - or what the URA calls Rest of Central Region - dipped by a sharp 74 per cent to just 275 units from April's peak level of 1,044 units.
The firm's director of research and advisory, Ms Tay Huey Ying, said that this was not surprising, considering URA preliminary data had showed prices in that region gaining the most in the first half, compared to prices in the city centre or suburban areas. And overall, the prices have crossed the previous peaks.
The Minton in Hougang proved to be June's top seller, moving another 173 units at a median price of $871 per sq ft. CBRE Research said that this was higher than the median price of $849 psf reported for the first 204 units sold in May.
A new launch, Waterfront Gold, had a weaker showing with 157 units launched and 77 units sold at a median price of $996 psf.
Jones Lang LaSalle said the total quantum demanded at the project - more than $1 million for a three-bedder - was possibly larger than what the market was willing to absorb.
At the 84-unit La Brisa in Geylang, where most of the units range from 409 sq ft to 689 sq ft, buyers snapped up 82 units at a median price of $960 psf.
Looking ahead, experts expect to see stronger sales in July, noting that already two new launches - 368 Thomson and Terrene in Bukit Timah - have done well.
Yesterday, NOL Group reported selling more than 100 units at Terrene since a private preview started on July 8.
Buyers could come out to buy before the inauspicious Hungry Ghost Festival in August, they said.
Still, CBRE Research predicts buying interest will remain selective, and depend on location, product attributes and price points.
Jones Lang LaSalle said a more moderate buying mood backed by conservative global economic conditions, and hence a continual slowdown in price growth, can be expected.
The Minton in Hougang proved to be last month's top seller, moving another 173 units at a median price of $871 per sq ft. -- PHOTO: KHENG LEONG GROUP
ST : Convicted lawyer cleared of wrongdoing
Jul 16, 2010
Convicted lawyer cleared of wrongdoing
Landmark ruling spells out how far lawyers must go to verify claims
By Selina Lum & K.C. Vijayan
AFTER five years and spending about $1 million in legal fees, lawyer Bachoo Mohan Singh finally left court a free man yesterday.
Convicted of helping a client dishonestly make a false claim before a court, he was first sentenced to three months' jail. Upon appeal, his conviction was upheld, though his sentence was reduced to one month's jail and a $10,000 file.
But he persisted and took his case all the way to the Court of Appeal.
Yesterday, the three-judge court cleared him, in a decision split two-to-one. It was a landmark ruling for, among other things, spelling out the extent to which lawyers should go to verify their clients' claims.
Mr Singh, 63, made legal history as the first person charged in Singapore with making such a false claim, an offence that has been in force for over a century.
He was also the first lawyer in the Commonwealth convicted of abetting his client in making a false claim.
Mr Singh's case arose out of a purported 'cashback' scheme in 2003 which inflated the sale price of a Housing Board flat belonging to his client.
In 2005, he was accused of helping the seller make a false claim based on the inflated price. He insisted that he did not know that the claim was false and had merely followed his client's instructions.
He fought the case all the way to settle the legal issue of what exactly is a false claim, and how far a lawyer has to go to make sure that what his client tells him is true.
Convinced that his case was a matter of public interest because it raised questions about the law, Mr Singh took his case to the Court of Appeal comprising Justices V.K. Rajah, Andrew Phang and Choo Han Teck.
Yesterday, Justice Rajah, who wrote the bulk of the 99-page judgment, delivered the court's decision, with Justice Phang concurring.
In concluding that Mr Singh's conviction was wrong, the two judges said the lower courts' findings that he was dishonest were questionable and undermined by 'mistaken legal analysis'.
The dissenting judge, Justice Choo, felt otherwise. 'I am of the view that no one - either in the trial... or the High Court on appeal - misapprehended the law,' he said.
He felt that no questions of law of public interest had been raised.
Justice Rajah said he did not see how the claim filed by Mr Singh could be considered false or that the lawyer knew that it was false.
He noted that Mr Singh had accepted his client's account that he was unwittingly dragged into a cashback scheme, and filed the claim based on his instructions.
As for the duty of a lawyer, the judge said a lawyer should doubt his client's instructions only if they 'plainly appear to be without foundation'.
'A solicitor is not obliged to verify his client's instructions with other sources unless there is compelling evidence to indicate that it is dubious,' he said.
In this case, there was nothing to suggest that Mr Singh should have taken steps to verify what his client told him.
He added that the client had given the same account to investigators consistently, and so the lawyer could not be faulted for believing him.
Speaking to The Straits Times after his acquittal, Mr Singh said the loss of livelihood and reputation, and the uncertain future his family faced over the past five years were a 'bigger cost' than the legal fees he paid.
However, he said he retained his faith in the judicial system here throughout.
He said: 'I'm cool because my conscience is clear. I'm vindicated because of the strength and integrity of the system.'
He questioned the resources the prosecution poured into the case. At one point, there were six prosecuting officers on record in the appeal hearings, among others, and the 50-day district court trial stretched over a year.
His family in Perth was relieved to hear of his acquittal yesterday, because 'a great burden has been removed from their chests'.
'At the end of the day, after going through a case like this, you know who your friends are,' he said.
'I am glad I can get on with my life after my five lost years. All the uncertainty is now gone, I can work and pay off my debts.'
selinal@sph.com.sg
vijayan@sph.com.sg
--------------------------------------------------------------------------------
About the case
A 2003 property transaction involving a five-room flat in Redhill is at the centre of this case.
Both the sellers, taxi driver Koh Sia Kang and his wife, and the buyers, Mr Kang Siew Guek and his wife, agreed on a price of $390,000.
But in an alleged cashback scheme - which Mr Koh denies - the selling price was inflated to $490,000 in declarations to the Housing Board. In such a scam, a higher price is declared to secure a bigger loan for the buyer.
The cash difference between the actual and declared prices is either kept by the buyer or split with the seller. The buyers later backed out, and Mr Koh, 53, then sued them for breach of agreement.
In April 2004, Mr Bachoo Mohan Singh helped him file a court claim asking for the difference between the agreed-upon price and the $380,000 which he had sold the flat for.
A year later, Mr Singh was charged with helping Mr Koh make a false claim. He was represented by then senior counsel K. Shanmugam. His trial began in 2006, and in 2007, he was sentenced to three months' jail.
He appealed last year. Senior Counsel Michael Hwang, the Law Society's president, then volunteered to argue Mr Singh's case for free. His conviction was upheld, but the High Court reduced his sentence to a month's jail and a $10,000 fine. He then applied to refer issues of law in his case to the Court of Appeal.
Convicted lawyer cleared of wrongdoing
Landmark ruling spells out how far lawyers must go to verify claims
By Selina Lum & K.C. Vijayan
AFTER five years and spending about $1 million in legal fees, lawyer Bachoo Mohan Singh finally left court a free man yesterday.
Convicted of helping a client dishonestly make a false claim before a court, he was first sentenced to three months' jail. Upon appeal, his conviction was upheld, though his sentence was reduced to one month's jail and a $10,000 file.
But he persisted and took his case all the way to the Court of Appeal.
Yesterday, the three-judge court cleared him, in a decision split two-to-one. It was a landmark ruling for, among other things, spelling out the extent to which lawyers should go to verify their clients' claims.
Mr Singh, 63, made legal history as the first person charged in Singapore with making such a false claim, an offence that has been in force for over a century.
He was also the first lawyer in the Commonwealth convicted of abetting his client in making a false claim.
Mr Singh's case arose out of a purported 'cashback' scheme in 2003 which inflated the sale price of a Housing Board flat belonging to his client.
In 2005, he was accused of helping the seller make a false claim based on the inflated price. He insisted that he did not know that the claim was false and had merely followed his client's instructions.
He fought the case all the way to settle the legal issue of what exactly is a false claim, and how far a lawyer has to go to make sure that what his client tells him is true.
Convinced that his case was a matter of public interest because it raised questions about the law, Mr Singh took his case to the Court of Appeal comprising Justices V.K. Rajah, Andrew Phang and Choo Han Teck.
Yesterday, Justice Rajah, who wrote the bulk of the 99-page judgment, delivered the court's decision, with Justice Phang concurring.
In concluding that Mr Singh's conviction was wrong, the two judges said the lower courts' findings that he was dishonest were questionable and undermined by 'mistaken legal analysis'.
The dissenting judge, Justice Choo, felt otherwise. 'I am of the view that no one - either in the trial... or the High Court on appeal - misapprehended the law,' he said.
He felt that no questions of law of public interest had been raised.
Justice Rajah said he did not see how the claim filed by Mr Singh could be considered false or that the lawyer knew that it was false.
He noted that Mr Singh had accepted his client's account that he was unwittingly dragged into a cashback scheme, and filed the claim based on his instructions.
As for the duty of a lawyer, the judge said a lawyer should doubt his client's instructions only if they 'plainly appear to be without foundation'.
'A solicitor is not obliged to verify his client's instructions with other sources unless there is compelling evidence to indicate that it is dubious,' he said.
In this case, there was nothing to suggest that Mr Singh should have taken steps to verify what his client told him.
He added that the client had given the same account to investigators consistently, and so the lawyer could not be faulted for believing him.
Speaking to The Straits Times after his acquittal, Mr Singh said the loss of livelihood and reputation, and the uncertain future his family faced over the past five years were a 'bigger cost' than the legal fees he paid.
However, he said he retained his faith in the judicial system here throughout.
He said: 'I'm cool because my conscience is clear. I'm vindicated because of the strength and integrity of the system.'
He questioned the resources the prosecution poured into the case. At one point, there were six prosecuting officers on record in the appeal hearings, among others, and the 50-day district court trial stretched over a year.
His family in Perth was relieved to hear of his acquittal yesterday, because 'a great burden has been removed from their chests'.
'At the end of the day, after going through a case like this, you know who your friends are,' he said.
'I am glad I can get on with my life after my five lost years. All the uncertainty is now gone, I can work and pay off my debts.'
selinal@sph.com.sg
vijayan@sph.com.sg
--------------------------------------------------------------------------------
About the case
A 2003 property transaction involving a five-room flat in Redhill is at the centre of this case.
Both the sellers, taxi driver Koh Sia Kang and his wife, and the buyers, Mr Kang Siew Guek and his wife, agreed on a price of $390,000.
But in an alleged cashback scheme - which Mr Koh denies - the selling price was inflated to $490,000 in declarations to the Housing Board. In such a scam, a higher price is declared to secure a bigger loan for the buyer.
The cash difference between the actual and declared prices is either kept by the buyer or split with the seller. The buyers later backed out, and Mr Koh, 53, then sued them for breach of agreement.
In April 2004, Mr Bachoo Mohan Singh helped him file a court claim asking for the difference between the agreed-upon price and the $380,000 which he had sold the flat for.
A year later, Mr Singh was charged with helping Mr Koh make a false claim. He was represented by then senior counsel K. Shanmugam. His trial began in 2006, and in 2007, he was sentenced to three months' jail.
He appealed last year. Senior Counsel Michael Hwang, the Law Society's president, then volunteered to argue Mr Singh's case for free. His conviction was upheld, but the High Court reduced his sentence to a month's jail and a $10,000 fine. He then applied to refer issues of law in his case to the Court of Appeal.
ST : HDB subletting: Owners must file by July 31
Jul 16, 2010
HDB subletting: Owners must file by July 31
FLAT owners who sublet rooms in Housing Board flats have until the end of this month to register with the board if the subletting began before Feb 1.
For subletting that started from that date or later, registration must be done within seven days from when the subletting began.
This requirement is in line with ongoing efforts by the Ministry of Home Affairs (MHA) to eradicate loan-sharking activities and help protect HDB residents from being victimised by such activities.
When some people borrow money from loan sharks, they move to a new location but give the loan sharks their previous addresses. This way, if they fall behind on payments, those living at their former addresses will be the ones harassed by the loan sharks.
The new rule enables HDB to capture the particulars of those who rent rooms in HDB flats and allows MHA to trace the movement of borrowers.
HDB may impose a penalty on those who fail to register their subletting. The penalty could involve a fine of up to $3,000, and for recalcitrant cases, HDB could take back the flat.
For further information or inquiries, the public can call HDB's toll-free Subletting of Flat & Rooms Enquiry Line on 1800-555-6370.
HDB subletting: Owners must file by July 31
FLAT owners who sublet rooms in Housing Board flats have until the end of this month to register with the board if the subletting began before Feb 1.
For subletting that started from that date or later, registration must be done within seven days from when the subletting began.
This requirement is in line with ongoing efforts by the Ministry of Home Affairs (MHA) to eradicate loan-sharking activities and help protect HDB residents from being victimised by such activities.
When some people borrow money from loan sharks, they move to a new location but give the loan sharks their previous addresses. This way, if they fall behind on payments, those living at their former addresses will be the ones harassed by the loan sharks.
The new rule enables HDB to capture the particulars of those who rent rooms in HDB flats and allows MHA to trace the movement of borrowers.
HDB may impose a penalty on those who fail to register their subletting. The penalty could involve a fine of up to $3,000, and for recalcitrant cases, HDB could take back the flat.
For further information or inquiries, the public can call HDB's toll-free Subletting of Flat & Rooms Enquiry Line on 1800-555-6370.
Tuesday, July 20, 2010
ST Forum : Puzzled by tax rationale on owner-occupied homes
Jul 15, 2010
Puzzled by tax rationale on owner-occupied homes
I AM gratified by the Inland Revenue Authority of Singapore's reply on Tuesday ('Property tax not based on market rental forecasts') that property tax is pegged to a property's annual value, which is determined by market rentals of similar properties at the time of assessment. My problem with predicating such a policy on market rental values is that owner-occupied properties derive no gain as long as owners reside in them.
So this category should be spared from tax rate fluctuations applicable to investors who derive rental incomes according to market value.
Second, reviewing property annual values yearly contradicts the previous practice of predicating the value on stable rental conditions over a period of time. The yearly review is akin to making a projection.
Again, any increase or decrease would have no effect on owner-occupied properties. So it is unfair to subject owner-occupiers to unrelated fluctuations. For instance, a property bought in the 1980s would be subjected to property tax that is four to five times higher over the next 30 years, although the same owner may be residing there all this while.
It is unrealistic and unfair to ask residents of owner-occupied homes to pay rapidly increasing property tax based on an intangible value. Owner-occupied properties deserve better consideration.
Paul Chan
Puzzled by tax rationale on owner-occupied homes
I AM gratified by the Inland Revenue Authority of Singapore's reply on Tuesday ('Property tax not based on market rental forecasts') that property tax is pegged to a property's annual value, which is determined by market rentals of similar properties at the time of assessment. My problem with predicating such a policy on market rental values is that owner-occupied properties derive no gain as long as owners reside in them.
So this category should be spared from tax rate fluctuations applicable to investors who derive rental incomes according to market value.
Second, reviewing property annual values yearly contradicts the previous practice of predicating the value on stable rental conditions over a period of time. The yearly review is akin to making a projection.
Again, any increase or decrease would have no effect on owner-occupied properties. So it is unfair to subject owner-occupiers to unrelated fluctuations. For instance, a property bought in the 1980s would be subjected to property tax that is four to five times higher over the next 30 years, although the same owner may be residing there all this while.
It is unrealistic and unfair to ask residents of owner-occupied homes to pay rapidly increasing property tax based on an intangible value. Owner-occupied properties deserve better consideration.
Paul Chan
ST : New rules kick in today
Jul 15, 2010
New rules kick in today
NEW rules aimed at creating more clarity over collective sales kick in today.
A key change centres on when an attempt to sell an estate en bloc fails to garner enough backing from owners.
To discourage repeated attempts when there is insufficient interest, a two-year restriction period will be imposed after a failed collective sale attempt.
During this period, the first retry to convene an extraordinary general meeting to reappoint a sale committee will require the agreement of 50per cent by share value, or of the total number, of owners.
This is up from the current level of 20per cent by share value or 25per cent of the total number of owners.
For the second and subsequent retries, approval from 80per cent is needed.
To speed up the sale process, the Strata Titles Board (STB) will focus on its role as a mediator, instead of also trying to make rulings in disputed cases.
Some recent attempted collective sales, such as Horizon Towers, have become bogged down in disputes that have dragged on for two years or more.
The new rules and other amendments to the Land Titles (Strata) Act were passed by Parliament on May18.
New rules kick in today
NEW rules aimed at creating more clarity over collective sales kick in today.
A key change centres on when an attempt to sell an estate en bloc fails to garner enough backing from owners.
To discourage repeated attempts when there is insufficient interest, a two-year restriction period will be imposed after a failed collective sale attempt.
During this period, the first retry to convene an extraordinary general meeting to reappoint a sale committee will require the agreement of 50per cent by share value, or of the total number, of owners.
This is up from the current level of 20per cent by share value or 25per cent of the total number of owners.
For the second and subsequent retries, approval from 80per cent is needed.
To speed up the sale process, the Strata Titles Board (STB) will focus on its role as a mediator, instead of also trying to make rulings in disputed cases.
Some recent attempted collective sales, such as Horizon Towers, have become bogged down in disputes that have dragged on for two years or more.
The new rules and other amendments to the Land Titles (Strata) Act were passed by Parliament on May18.
ST : More collective sales ahead, but boom unlikely
Jul 15, 2010
More collective sales ahead, but boom unlikely
By Joyce Teo
THE number of collective sales is tipped to rise in the coming months as developers replenish land banks - but it is too early to talk of another boom.
Two key factors - large-scale government land sales on the boil and a prime segment stuck in the doldrums - will keep a cap on the sort of 'en bloc' mania seen in 2007.
But property experts say the market for such sales has certainly improved this year, especially among smaller developers, and that is energising more owners keen to sell.
Credo Real Estate says there have been 16 collective sales worth $786million completed this year, compared with one last year and eight in 2008.
Consultants expect more launches over the coming months as many estates which initiated the long sales process around last year or early this year will be ready to go to market.
Last week, Villa D'Este in Dalvey Road was launched for sale at a guide price of $115million, or about $2,343 per sq ft per plot ratio (psf ppr).
And Melrose Court, off Balestier Road, was put up for sale yesterday with a guide price of $48million, or about $688 psf ppr, inclusive of a $2.38million development charge.
Consultants said they have been fielding a steady stream of inquiries from potential collective sellers over the past six to nine months.
As in the past, such inquiries pick up whenever news of a successful collective sale hits the headlines.
'More launches and sales will come but a lot also depends on owners' expectations. It's whether they think they can get a similar replacement property with the en bloc premium,' said Colliers International's executive director of investment sales, Mr Ho Eng Joo.
Experts noted that there is a price mismatch in the prime sector, with owners' expectations higher than what the major developers, who are still cautious, are willing to pay.
As for buyers, they are keen to buy freehold land in collective sales because it is not available from the Government, they said.
The Government's land sales programme comprises large 99-year leasehold sites targeted at the mass market. Unlike a collective sale, a government land purchase is straightforward and fast.
Experts say small- and mid-sized private developers still need to replenish their land banks and they cannot afford the big government sites coming up for sale.
Indeed, the collective sale deals completed this year were all done by boutique developers. Apart from the recently concluded $137million sale of Meng Garden Apartments off Killiney Road, the other deals were all priced below $100million.
The recent successful collective sales are in mostly attractive city-fringe areas such as Balestier, or areas where no government sites will be offered for sale, said Mr Ho.
Credo Real Estate managing director Karamjit Singh expects to see more medium-sized sites of around $100million sold in the collective-sale market this year rather than large sites.
'Between now and December, there may be another 20 or so successful deals but these are likely to be small sites meant for small-sized units of several hundred square feet,' said Mr Jeffrey Goh, head of investment sales at HSR International.
'Smaller sites priced below $100million have a higher chance of success than prime ones priced above that amount.'
The flats on these sites are usually quite old, with owners who are thus more realistic about price, he said. That makes it easier to obtain the 80per cent approval for the sale to proceed.
New mass market launches may be going for benchmark prices but sellers in collective-sale deals can find better value in the resale market for replacing their homes, said Mr Singh. Also, a lower- priced site would attract a bigger pool of buyers than a higher-priced one, said Mr Ho. 'The risks are manageable.'
Melrose Court, off Balestier Road, was put up for sale yesterday with a guide price of $48million. Consultants expect more launches over the coming months, but government land sales and a subdued prime segment are expected to keep a cap on the numbers. -- PHOTO: COLLIERS INTERNATIONAL
More collective sales ahead, but boom unlikely
By Joyce Teo
THE number of collective sales is tipped to rise in the coming months as developers replenish land banks - but it is too early to talk of another boom.
Two key factors - large-scale government land sales on the boil and a prime segment stuck in the doldrums - will keep a cap on the sort of 'en bloc' mania seen in 2007.
But property experts say the market for such sales has certainly improved this year, especially among smaller developers, and that is energising more owners keen to sell.
Credo Real Estate says there have been 16 collective sales worth $786million completed this year, compared with one last year and eight in 2008.
Consultants expect more launches over the coming months as many estates which initiated the long sales process around last year or early this year will be ready to go to market.
Last week, Villa D'Este in Dalvey Road was launched for sale at a guide price of $115million, or about $2,343 per sq ft per plot ratio (psf ppr).
And Melrose Court, off Balestier Road, was put up for sale yesterday with a guide price of $48million, or about $688 psf ppr, inclusive of a $2.38million development charge.
Consultants said they have been fielding a steady stream of inquiries from potential collective sellers over the past six to nine months.
As in the past, such inquiries pick up whenever news of a successful collective sale hits the headlines.
'More launches and sales will come but a lot also depends on owners' expectations. It's whether they think they can get a similar replacement property with the en bloc premium,' said Colliers International's executive director of investment sales, Mr Ho Eng Joo.
Experts noted that there is a price mismatch in the prime sector, with owners' expectations higher than what the major developers, who are still cautious, are willing to pay.
As for buyers, they are keen to buy freehold land in collective sales because it is not available from the Government, they said.
The Government's land sales programme comprises large 99-year leasehold sites targeted at the mass market. Unlike a collective sale, a government land purchase is straightforward and fast.
Experts say small- and mid-sized private developers still need to replenish their land banks and they cannot afford the big government sites coming up for sale.
Indeed, the collective sale deals completed this year were all done by boutique developers. Apart from the recently concluded $137million sale of Meng Garden Apartments off Killiney Road, the other deals were all priced below $100million.
The recent successful collective sales are in mostly attractive city-fringe areas such as Balestier, or areas where no government sites will be offered for sale, said Mr Ho.
Credo Real Estate managing director Karamjit Singh expects to see more medium-sized sites of around $100million sold in the collective-sale market this year rather than large sites.
'Between now and December, there may be another 20 or so successful deals but these are likely to be small sites meant for small-sized units of several hundred square feet,' said Mr Jeffrey Goh, head of investment sales at HSR International.
'Smaller sites priced below $100million have a higher chance of success than prime ones priced above that amount.'
The flats on these sites are usually quite old, with owners who are thus more realistic about price, he said. That makes it easier to obtain the 80per cent approval for the sale to proceed.
New mass market launches may be going for benchmark prices but sellers in collective-sale deals can find better value in the resale market for replacing their homes, said Mr Singh. Also, a lower- priced site would attract a bigger pool of buyers than a higher-priced one, said Mr Ho. 'The risks are manageable.'
Melrose Court, off Balestier Road, was put up for sale yesterday with a guide price of $48million. Consultants expect more launches over the coming months, but government land sales and a subdued prime segment are expected to keep a cap on the numbers. -- PHOTO: COLLIERS INTERNATIONAL
ST : Failed HK flat sale: Police raid developer's HQ
Jul 15, 2010
Failed HK flat sale: Police raid developer's HQ
Officers seize papers linked to deal on 20 luxury units, including 'world's priciest flat'
HONG KONG: Hong Kong police yesterday raided the headquarters of a major property developer embroiled in a controversy over the collapsed sale of what was billed as the world's priciest flat.
Officers from the financial hub's Commercial Crime Bureau swooped on Henderson Land Development's office in Hong Kong's financial district and took documents believed to be connected to the failed sale.
'As a result of the execution of the search warrants, we have seized a quantity of documents, which will be investigated and looked into further,' said Police Commissioner Tang King Shing.
'Today, we also invited a number of people back to the commercial crime bureau to assist in our investigations. At this moment, the police have arrested no persons concerning this case,' he added.
Henderson Land said it was cooperating with the authorities.
'Our company has provided relevant documents and appointed staff to help in the investigation,' the developer said in an e-mail statement in Chinese.
Inspectors also searched a law firm allegedly connected to the failed sale of luxury flats at the exclusive 39 Conduit Road towers in the city's Mid-Levels residential area, local radio RTHK reported.
'At this stage, it's really hard to tell what's going to come out from the investigation,' said Professor Eddie Hui of the building and real estate department of Hong Kong Polytechnic University.
'Even if the police took some documents from their office, it still does not mean they have committed any wrongdoing. We have to be careful in drawing any premature conclusions.'
Analysts said they expected the Hong Kong developer's shares, which have lagged behind its peers, to come under pressure in the days ahead.
Last month, the Hong Kong government said it was looking into the cancelled sale of 20 multimillion-dollar flats developed by Henderson in Hong Kong, while legislators have been questioning the developer's practices over the past few weeks.
The cancellations included a duplex unit that had fetched a global record price of HK$71,280 (S$12,695) per square foot last October. In the end, only four units were sold in that development, Henderson Land said.
Critics have demanded a probe, asking why the cancellations came to light only eight months after the announcement of the sales, which helped hike prices of the city's luxury residential flats and stoked concerns about a property bubble in the former British colony.
Questions have also been raised about the relatively small deposit that Henderson kept after the failed sales, and why all the buyers appeared to have used the same law firm to process the transactions.
Henderson Land responded with advertisements in major newspapers saying the purchases were genuine and that the company was not connected with the buyers. It has said it will cooperate with the probe.
REUTERS, AGENCE FRANCE-PRESSE, BLOOMBERG
Failed HK flat sale: Police raid developer's HQ
Officers seize papers linked to deal on 20 luxury units, including 'world's priciest flat'
HONG KONG: Hong Kong police yesterday raided the headquarters of a major property developer embroiled in a controversy over the collapsed sale of what was billed as the world's priciest flat.
Officers from the financial hub's Commercial Crime Bureau swooped on Henderson Land Development's office in Hong Kong's financial district and took documents believed to be connected to the failed sale.
'As a result of the execution of the search warrants, we have seized a quantity of documents, which will be investigated and looked into further,' said Police Commissioner Tang King Shing.
'Today, we also invited a number of people back to the commercial crime bureau to assist in our investigations. At this moment, the police have arrested no persons concerning this case,' he added.
Henderson Land said it was cooperating with the authorities.
'Our company has provided relevant documents and appointed staff to help in the investigation,' the developer said in an e-mail statement in Chinese.
Inspectors also searched a law firm allegedly connected to the failed sale of luxury flats at the exclusive 39 Conduit Road towers in the city's Mid-Levels residential area, local radio RTHK reported.
'At this stage, it's really hard to tell what's going to come out from the investigation,' said Professor Eddie Hui of the building and real estate department of Hong Kong Polytechnic University.
'Even if the police took some documents from their office, it still does not mean they have committed any wrongdoing. We have to be careful in drawing any premature conclusions.'
Analysts said they expected the Hong Kong developer's shares, which have lagged behind its peers, to come under pressure in the days ahead.
Last month, the Hong Kong government said it was looking into the cancelled sale of 20 multimillion-dollar flats developed by Henderson in Hong Kong, while legislators have been questioning the developer's practices over the past few weeks.
The cancellations included a duplex unit that had fetched a global record price of HK$71,280 (S$12,695) per square foot last October. In the end, only four units were sold in that development, Henderson Land said.
Critics have demanded a probe, asking why the cancellations came to light only eight months after the announcement of the sales, which helped hike prices of the city's luxury residential flats and stoked concerns about a property bubble in the former British colony.
Questions have also been raised about the relatively small deposit that Henderson kept after the failed sales, and why all the buyers appeared to have used the same law firm to process the transactions.
Henderson Land responded with advertisements in major newspapers saying the purchases were genuine and that the company was not connected with the buyers. It has said it will cooperate with the probe.
REUTERS, AGENCE FRANCE-PRESSE, BLOOMBERG
BT : New rules on collective sales from today
Business Times - 15 Jul 2010
New rules on collective sales from today
(SINGAPORE) Amendments to the law governing collective sales - which include tighter rules for repeated attempts at such deals - will take effect from today.
The Ministry of Law gave more details yesterday on how the Land Titles (Strata) (Amendment) Act will apply. For instance, under the new Act, there will be a waiting time of just one hour for the quorum of 30 per cent of share value to be reached at extraordinary general meetings (EGMs). This will apply to all EGMs held on or after the commencement date of the new Act, including those for which notice has been served. Also, the new Act stipulates that once a sales committee (SC) is formed, it will have one year to obtain the first signature for the collective sale agreement (CSA) or face automatic termination.
For existing SCs which have not collected any valid signatures, the one-year period begins on the commencement date of the new Act, regardless of how long they have been in office. For SCs set up after the new Act takes effect, the one-year period begins on the day the SCs are elected at EGMs.
Another key revision to the Act introduces a two-year restriction period after a potential collective sale falls through. Within this period, the first repeated attempt to convene an EGM will require consent from 50 per cent of share value or number of owners. For the second and subsequent repeated attempts, 80 per cent will be needed.
This two-year restriction period will apply to all failed attempts which occur on or after the commencement date of the new Act.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New rules on collective sales from today
(SINGAPORE) Amendments to the law governing collective sales - which include tighter rules for repeated attempts at such deals - will take effect from today.
The Ministry of Law gave more details yesterday on how the Land Titles (Strata) (Amendment) Act will apply. For instance, under the new Act, there will be a waiting time of just one hour for the quorum of 30 per cent of share value to be reached at extraordinary general meetings (EGMs). This will apply to all EGMs held on or after the commencement date of the new Act, including those for which notice has been served. Also, the new Act stipulates that once a sales committee (SC) is formed, it will have one year to obtain the first signature for the collective sale agreement (CSA) or face automatic termination.
For existing SCs which have not collected any valid signatures, the one-year period begins on the commencement date of the new Act, regardless of how long they have been in office. For SCs set up after the new Act takes effect, the one-year period begins on the day the SCs are elected at EGMs.
Another key revision to the Act introduces a two-year restriction period after a potential collective sale falls through. Within this period, the first repeated attempt to convene an EGM will require consent from 50 per cent of share value or number of owners. For the second and subsequent repeated attempts, 80 per cent will be needed.
This two-year restriction period will apply to all failed attempts which occur on or after the commencement date of the new Act.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : 18 buyers vie for each 5-room flat at waterfront project
Jul 14, 2010
18 buyers vie for each 5-room flat at waterfront project
By Joyce Teo
PREMIUM flats at the Housing Board's (HDB) upcoming Punggol waterfront estate has drawn strong interest, with as many as 18 buyers chasing each flat.
Applications for Waterway Terraces, which features premium flats, closed yesterday with a thumping 13,688 applications for just 1,072 homes.
Property experts said the project's waterfront location is the biggest draw.
The five-roomers were hugely popular, attracting 5,594 applicants for the 306 flats available, which makes them 18 times oversubscribed.
The 588 four-room flats in the build-to-order (BTO) project were hot as well with 7,084 applications lodged or 12 times oversubscribed.
Almost 50 per cent of the applicants have not applied for any BTO flats in the past 12 months, said HDB.
Indicative prices range from $374,000 to $458,000 for the five-room flats, $300,000 to $376,000 for four-roomers and $186,000 to $237,000 for three-room flats.
Waterway Terraces will be premium flats, which means they come with fittings such as timber strip flooring in the bedrooms.
The project also has roof gardens, a relatively rare feature in HDB projects, and direct lift access from all blocks to the basement carpark.
The HDB expected Waterway Terraces to be well received but the big turnout of buyers could not trump the HDB record holder, Telok Blangah Towers. Launched in October 2007, this drew 7,970 applications for 400 BTO flats - or nearly 20 times oversubscribed.
Buyers flocked to the Punggol flats as they are the first along the Punggol Waterway to be released.
They are also within walking distance of the Punggol MRT station and other amenities and boast an award-winning design with various premium and eco-features, the HDB said.
Waterway Terraces is being offered under HDB's latest and largest build-to-order flat exercise, which includes two standard BTO projects in Sengkang.
Under the BTO scheme, flats are built only when a certain level of demand for the project is met.
The Sengkang flats were mostly just two to three times oversubscribed but the two-roomers attracted only 200 applications for the 238 units.
The HDB said in a statement yesterday that the absolute number of applicants for the Sengkang projects is comparable with previous BTO launches in the area.
In all, the 2,696 flats in Punggol and Sengkang drew 16,944 applications as of 5pm yesterday. HDB will provide a final update at 2pm today.
'Waterway Terraces' main attraction is its waterfront location and its reasonable pricing,' said real estate firm ERA Asia-Pacific's associate director Eugene Lim.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said a key draw is the project's proximity to the MRT station and the future mall there as not all units will have a waterfront view.
'People are still expecting HDB prices to rise. They are thinking if I don't get it now, the future Punggol projects could be priced even higher,' added Mr Mak.
Indeed, Mr Lim said applicants have a first-mover advantage. 'It's the first waterfront project there. Future ones may be priced higher.
'Some people are thinking that they can resell after eight years for a big profit. It's also a lifestyle that you cannot find in any other HDB project.'
PropNex chief executive Mohamed Ismail said the response shows that 'a lot of people now value lifestyle more than just a basic roof over their heads'.
He said buyers are 'willing to pay a premium for (lifestyle) as they also realise that these projects with special features can appreciate in value far more than other standard HDB projects because of limited supply'.
Buyers can look forward to 7,200 more BTO flats this year, the HDB said.
joyceteo@sph.com.sg
18 buyers vie for each 5-room flat at waterfront project
By Joyce Teo
PREMIUM flats at the Housing Board's (HDB) upcoming Punggol waterfront estate has drawn strong interest, with as many as 18 buyers chasing each flat.
Applications for Waterway Terraces, which features premium flats, closed yesterday with a thumping 13,688 applications for just 1,072 homes.
Property experts said the project's waterfront location is the biggest draw.
The five-roomers were hugely popular, attracting 5,594 applicants for the 306 flats available, which makes them 18 times oversubscribed.
The 588 four-room flats in the build-to-order (BTO) project were hot as well with 7,084 applications lodged or 12 times oversubscribed.
Almost 50 per cent of the applicants have not applied for any BTO flats in the past 12 months, said HDB.
Indicative prices range from $374,000 to $458,000 for the five-room flats, $300,000 to $376,000 for four-roomers and $186,000 to $237,000 for three-room flats.
Waterway Terraces will be premium flats, which means they come with fittings such as timber strip flooring in the bedrooms.
The project also has roof gardens, a relatively rare feature in HDB projects, and direct lift access from all blocks to the basement carpark.
The HDB expected Waterway Terraces to be well received but the big turnout of buyers could not trump the HDB record holder, Telok Blangah Towers. Launched in October 2007, this drew 7,970 applications for 400 BTO flats - or nearly 20 times oversubscribed.
Buyers flocked to the Punggol flats as they are the first along the Punggol Waterway to be released.
They are also within walking distance of the Punggol MRT station and other amenities and boast an award-winning design with various premium and eco-features, the HDB said.
Waterway Terraces is being offered under HDB's latest and largest build-to-order flat exercise, which includes two standard BTO projects in Sengkang.
Under the BTO scheme, flats are built only when a certain level of demand for the project is met.
The Sengkang flats were mostly just two to three times oversubscribed but the two-roomers attracted only 200 applications for the 238 units.
The HDB said in a statement yesterday that the absolute number of applicants for the Sengkang projects is comparable with previous BTO launches in the area.
In all, the 2,696 flats in Punggol and Sengkang drew 16,944 applications as of 5pm yesterday. HDB will provide a final update at 2pm today.
'Waterway Terraces' main attraction is its waterfront location and its reasonable pricing,' said real estate firm ERA Asia-Pacific's associate director Eugene Lim.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said a key draw is the project's proximity to the MRT station and the future mall there as not all units will have a waterfront view.
'People are still expecting HDB prices to rise. They are thinking if I don't get it now, the future Punggol projects could be priced even higher,' added Mr Mak.
Indeed, Mr Lim said applicants have a first-mover advantage. 'It's the first waterfront project there. Future ones may be priced higher.
'Some people are thinking that they can resell after eight years for a big profit. It's also a lifestyle that you cannot find in any other HDB project.'
PropNex chief executive Mohamed Ismail said the response shows that 'a lot of people now value lifestyle more than just a basic roof over their heads'.
He said buyers are 'willing to pay a premium for (lifestyle) as they also realise that these projects with special features can appreciate in value far more than other standard HDB projects because of limited supply'.
Buyers can look forward to 7,200 more BTO flats this year, the HDB said.
joyceteo@sph.com.sg
BT : Changi Motorsports Hub ready by 2012
Business Times - 14 Jul 2010
Changi Motorsports Hub ready by 2012
It will host both local and international racing events
By NISHA RAMCHANDANI
(SINGAPORE) The $330 million Changi Motorsports Hub (CMH) will be up and running by March 2012, in time for the year's racing season, said developer SG Changi at the ground-breaking ceremony yesterday.
The consortium, which pipped both Singapore Agro Agriculture and the Haw Par Corporation-backed Sports Services to operate the CMH for a 30-year period, consists of former Japan GT driver Genji Hashimoto, former Jurong Kart World owner Thia Yoke Kian, Singaporean lawyer Eddie Koh and Fuminori Murahashi, who has experience with events such as Formula Nippon and Super GT.
Located along Aviation Park Road, the 41 hectare sea-facing site will include a Federation Internationale de l'Automobile (FIA) Grade-2 certified four kilometre (km) racetrack, a 1.2 km karting track, a drift track, a bonded warehouse and seating capacity for some 20,000 spectators plus a 10,000-seat temporary grandstand.
With the aim of promoting motorsports in the region, SG Changi is also setting up a racing academy at CMH to groom talent.
'I hope to see more Singaporean youth get involved in motorsports, undergoing proper coaching and training at high-level facilities. It would be an amazing achievement to see a home-grown Singaporean GT driver one day,' said SG Changi's executive chairman Mr Murahashi, speaking at the ground-breaking ceremony yesterday.
The racing academy - which will include programmes from junior kart racing to technical training - is to kick off April 2012, taking in students from countries and regions such as Europe, Korea, China and Japan, in addition to Singapore.
The first intake is likely to be in the region of 50-60 students.
And while SG Changi will only reveal its line-up of racing events in June next year, CMH will host both local and international racing events.
'We are still in the process of discussions,' said Mr Murahashi, though he added that the group will initiate talks to bring in MotoGP, the F1 of motorcycling. The proposed calendar of events includes the Super GT Series, Formula Nippon and the Japanese Formula 3 Series, as well as the Singapore National Championship and the Karting Championship.
At the same time, the consortium is also keen to cater to a wider audience beyond just race fans.
'The product offering has to be consumer-centric, it has to bring fun, excitement and lifestyle elements,' said Singapore Sports Council (SSC) chief executive officer Oon Jin Teik.
The round-the-clock facility will also feature a motor-themed entertainment complex, a motorsports museum, food & beverage and retail outlets as well as a hotel.
It is also likely to be the only 24/7 motorsports facility in the world, Mr Murahashi reckons.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
It thrills: A driver putting on a drifting demonstration after the ground-breaking ceremony yesterday.
Changi Motorsports Hub ready by 2012
It will host both local and international racing events
By NISHA RAMCHANDANI
(SINGAPORE) The $330 million Changi Motorsports Hub (CMH) will be up and running by March 2012, in time for the year's racing season, said developer SG Changi at the ground-breaking ceremony yesterday.
The consortium, which pipped both Singapore Agro Agriculture and the Haw Par Corporation-backed Sports Services to operate the CMH for a 30-year period, consists of former Japan GT driver Genji Hashimoto, former Jurong Kart World owner Thia Yoke Kian, Singaporean lawyer Eddie Koh and Fuminori Murahashi, who has experience with events such as Formula Nippon and Super GT.
Located along Aviation Park Road, the 41 hectare sea-facing site will include a Federation Internationale de l'Automobile (FIA) Grade-2 certified four kilometre (km) racetrack, a 1.2 km karting track, a drift track, a bonded warehouse and seating capacity for some 20,000 spectators plus a 10,000-seat temporary grandstand.
With the aim of promoting motorsports in the region, SG Changi is also setting up a racing academy at CMH to groom talent.
'I hope to see more Singaporean youth get involved in motorsports, undergoing proper coaching and training at high-level facilities. It would be an amazing achievement to see a home-grown Singaporean GT driver one day,' said SG Changi's executive chairman Mr Murahashi, speaking at the ground-breaking ceremony yesterday.
The racing academy - which will include programmes from junior kart racing to technical training - is to kick off April 2012, taking in students from countries and regions such as Europe, Korea, China and Japan, in addition to Singapore.
The first intake is likely to be in the region of 50-60 students.
And while SG Changi will only reveal its line-up of racing events in June next year, CMH will host both local and international racing events.
'We are still in the process of discussions,' said Mr Murahashi, though he added that the group will initiate talks to bring in MotoGP, the F1 of motorcycling. The proposed calendar of events includes the Super GT Series, Formula Nippon and the Japanese Formula 3 Series, as well as the Singapore National Championship and the Karting Championship.
At the same time, the consortium is also keen to cater to a wider audience beyond just race fans.
'The product offering has to be consumer-centric, it has to bring fun, excitement and lifestyle elements,' said Singapore Sports Council (SSC) chief executive officer Oon Jin Teik.
The round-the-clock facility will also feature a motor-themed entertainment complex, a motorsports museum, food & beverage and retail outlets as well as a hotel.
It is also likely to be the only 24/7 motorsports facility in the world, Mr Murahashi reckons.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
It thrills: A driver putting on a drifting demonstration after the ground-breaking ceremony yesterday.
BT : CDL sells stake in Chinatown Point for $250m
Business Times - 14 Jul 2010
CDL sells stake in Chinatown Point for $250m
Buyer is consortium of investors that includes German fund manager SEB
By KALPANA RASHIWALA
CITY Developments Ltd (CDL) has sold the retail mall of Chinatown Point as well as four office units for $250 million to a consortium of investors, which includes German fund manager SEB.
The consortium was put together by Pua Seck Guan's Perennial Real Estate group.
The transaction price reflects $1,403 per square foot based on the total strata area of 178,187 sq ft. The asset comprises 283 strata-titled retail units and four office units.
Mr Pua, who is Perennial's CEO, said the new owner plans to reposition the mall and enhance its ambience. NTUC FairPrice is expected to be a supermarket anchor tenant at the revamped Chinatown Point mall. The envisaged trade mix of the repositioned mall would comprise a wide variety of offerings such as traditional Chinese specialty food and foodstuffs, jewellery, traditional and modern Chinese or Asian accessories stores and travel agencies.
The property is strategically located at the junction of New Bridge Road and Upper Cross Street and is very near the Chinatown MRT Station serving the North-East Line. Current tenants at the mall include Swensen's and McDonald's.
'In time, Chinatown Point mall is expected to benefit from the increased footfall to the area once the upcoming Downtown Line, which is expected to connect to the adjacent Chinatown MRT Station, is operational.
'We expect the revamped mall to appeal not only to the locals, but also tourists who would like to experience the charms and flavours of Chinatown in a contemporary setting,' Mr Pua said.
Seller CDL said in a statutory filing with Singapore Exchange that as it does not own all of the strata-titled units in Chinatown Point, it is of the view that it is an opportune time to unlock value from its holding in the sale units.
Chinatown Point's mall spans six levels - including part of Basement 1. It is part of a mixed development that also includes a 25-storey strata titled office block. The development is built on a site with a 99-year leasehold tenure starting November 1980.
Last year, a private trust set up by Perennial bought Katong Mall for $247.6 million and last week plans were announced for a $60 million redevelopment of the asset.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Chinatown Point: Its new owner plans to reposition the mall and enhance its ambience. NTUC FairPrice is expected to be an anchor tenant
CDL sells stake in Chinatown Point for $250m
Buyer is consortium of investors that includes German fund manager SEB
By KALPANA RASHIWALA
CITY Developments Ltd (CDL) has sold the retail mall of Chinatown Point as well as four office units for $250 million to a consortium of investors, which includes German fund manager SEB.
The consortium was put together by Pua Seck Guan's Perennial Real Estate group.
The transaction price reflects $1,403 per square foot based on the total strata area of 178,187 sq ft. The asset comprises 283 strata-titled retail units and four office units.
Mr Pua, who is Perennial's CEO, said the new owner plans to reposition the mall and enhance its ambience. NTUC FairPrice is expected to be a supermarket anchor tenant at the revamped Chinatown Point mall. The envisaged trade mix of the repositioned mall would comprise a wide variety of offerings such as traditional Chinese specialty food and foodstuffs, jewellery, traditional and modern Chinese or Asian accessories stores and travel agencies.
The property is strategically located at the junction of New Bridge Road and Upper Cross Street and is very near the Chinatown MRT Station serving the North-East Line. Current tenants at the mall include Swensen's and McDonald's.
'In time, Chinatown Point mall is expected to benefit from the increased footfall to the area once the upcoming Downtown Line, which is expected to connect to the adjacent Chinatown MRT Station, is operational.
'We expect the revamped mall to appeal not only to the locals, but also tourists who would like to experience the charms and flavours of Chinatown in a contemporary setting,' Mr Pua said.
Seller CDL said in a statutory filing with Singapore Exchange that as it does not own all of the strata-titled units in Chinatown Point, it is of the view that it is an opportune time to unlock value from its holding in the sale units.
Chinatown Point's mall spans six levels - including part of Basement 1. It is part of a mixed development that also includes a 25-storey strata titled office block. The development is built on a site with a 99-year leasehold tenure starting November 1980.
Last year, a private trust set up by Perennial bought Katong Mall for $247.6 million and last week plans were announced for a $60 million redevelopment of the asset.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Chinatown Point: Its new owner plans to reposition the mall and enhance its ambience. NTUC FairPrice is expected to be an anchor tenant
BT : Biggest collective sale of the year clinched
Business Times - 14 Jul 2010
Biggest collective sale of the year clinched
Meng Garden sells for $137m; more prime district sites may come to market
By KALPANA RASHIWALA
(SINGAPORE) A collective sale is said to have been sealed for Meng Garden Apartments off Killiney Road for $137 million or about $1,380 per square foot per plot ratio, including an estimated development charge of $681,000.
This is the biggest collective sale transacted this year and the first in a prime district.
It also takes the year-to- date tally to 16 deals at about $786 million.
Boutique developer TG Development, the buyer of Meng Garden, will not have to seek the Strata Titles Board's approval for the transaction as CB Richard Ellis, which brokered the collective sale, had secured 100 per cent consent from the owners prior to the property being put up for tender last month.
The 35,639 sq ft freehold site is zoned for residential use with a 2.8 plot ratio and a 10-storey height control.
The site can potentially accommodate a new development with about 95 apartments averaging 1,000 sq ft each.
The existing eight-storey block comprises 26 apartments and a penthouse, with over half the units owned by an extended Lim family.
The tender for Meng Garden closed on July 7 and is understood to have attracted six bidders, including mid- and large-sized listed developers.
Meng Garden is located on Lloyd Road and was built in the mid-1980s. Prior to its development, the site was the original residence of the Alkaff family.
The 16 collective sales at $786 million so far this year is a marked improvement from last year's solo deal at $100.8 million and the 2008 showing of eight transactions for a total $346 million.
'Whereas most of the deals so far this year have involved sums below $100 million and were primarily outside the prime districts, we could see bigger sites and a few more in the prime districts coming to the market in the current half,' said CB Richard Ellis executive director (investment properties) Jeremy Lake.
He predicts that the full-year tally could cross the $2 billion mark.
Credo Real Estate managing director Karamjit Singh noted that the 13 collective sale deals in the first half of this year averaged $40 million per transaction - a far cry from the peak of the en bloc sale fever during the first half of 2007, when there were 55 transactions averaging $170 million each.
'For H2 2010, we expect to see 20-40 successful deals, which would mean a doubling from the first-half performance. We also expect the average deal size to somewhat double to $80-100 million in H2 2010.'
However, most market watchers are not expecting the peak volumes seen in 2006 and 2007 - when $7.8 billion and a record $11.6 billion respectively were done (according to Credo figures) - to be re-visited anytime soon.
CB Richard Ellis' Mr Lake argues that some collective sales are no longer viable due to the high cost of replacement properties. 'The cost of the replacement property has moved up to an extent that the en bloc premium is no longer attractive to owners,' he said.
'As a result, the number of viable collective sales that agents are working on has diminished.'
Mr Lake also observed that back in 2006-2007, land prices appreciated so quickly that almost every collective sale effort worked. 'However, prime district residential land prices currently are not back to their previous peaks, which mirrors the price trend for new residential units.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Meng Garden: The buyer, TG Development, is paying $1,380 psf ppr including development charge for the property.
Biggest collective sale of the year clinched
Meng Garden sells for $137m; more prime district sites may come to market
By KALPANA RASHIWALA
(SINGAPORE) A collective sale is said to have been sealed for Meng Garden Apartments off Killiney Road for $137 million or about $1,380 per square foot per plot ratio, including an estimated development charge of $681,000.
This is the biggest collective sale transacted this year and the first in a prime district.
It also takes the year-to- date tally to 16 deals at about $786 million.
Boutique developer TG Development, the buyer of Meng Garden, will not have to seek the Strata Titles Board's approval for the transaction as CB Richard Ellis, which brokered the collective sale, had secured 100 per cent consent from the owners prior to the property being put up for tender last month.
The 35,639 sq ft freehold site is zoned for residential use with a 2.8 plot ratio and a 10-storey height control.
The site can potentially accommodate a new development with about 95 apartments averaging 1,000 sq ft each.
The existing eight-storey block comprises 26 apartments and a penthouse, with over half the units owned by an extended Lim family.
The tender for Meng Garden closed on July 7 and is understood to have attracted six bidders, including mid- and large-sized listed developers.
Meng Garden is located on Lloyd Road and was built in the mid-1980s. Prior to its development, the site was the original residence of the Alkaff family.
The 16 collective sales at $786 million so far this year is a marked improvement from last year's solo deal at $100.8 million and the 2008 showing of eight transactions for a total $346 million.
'Whereas most of the deals so far this year have involved sums below $100 million and were primarily outside the prime districts, we could see bigger sites and a few more in the prime districts coming to the market in the current half,' said CB Richard Ellis executive director (investment properties) Jeremy Lake.
He predicts that the full-year tally could cross the $2 billion mark.
Credo Real Estate managing director Karamjit Singh noted that the 13 collective sale deals in the first half of this year averaged $40 million per transaction - a far cry from the peak of the en bloc sale fever during the first half of 2007, when there were 55 transactions averaging $170 million each.
'For H2 2010, we expect to see 20-40 successful deals, which would mean a doubling from the first-half performance. We also expect the average deal size to somewhat double to $80-100 million in H2 2010.'
However, most market watchers are not expecting the peak volumes seen in 2006 and 2007 - when $7.8 billion and a record $11.6 billion respectively were done (according to Credo figures) - to be re-visited anytime soon.
CB Richard Ellis' Mr Lake argues that some collective sales are no longer viable due to the high cost of replacement properties. 'The cost of the replacement property has moved up to an extent that the en bloc premium is no longer attractive to owners,' he said.
'As a result, the number of viable collective sales that agents are working on has diminished.'
Mr Lake also observed that back in 2006-2007, land prices appreciated so quickly that almost every collective sale effort worked. 'However, prime district residential land prices currently are not back to their previous peaks, which mirrors the price trend for new residential units.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Meng Garden: The buyer, TG Development, is paying $1,380 psf ppr including development charge for the property.
Tuesday, July 13, 2010
ST : China property prices fall due to govt curbs
Jul 13, 2010
China property prices fall due to govt curbs
BEIJING: Chinese property prices last month recorded their first monthly fall since February last year, providing further evidence that a government drive to let the air out of an inflated market is working.
Average prices in 70 cities edged down 0.1 per cent from May, lowering the annual property inflation rate to 11.4 per cent last month, from 12.4 per cent in the year to May and April's reading of 12.8 per cent, the National Bureau of Statistics said yesterday.
Coming on the heels of much slower import growth and a controlled moderation in bank lending, the figures reinforced the conviction of many economists that no further policy tightening is on the cards.
However, with surprisingly resilient exports offsetting softer domestic investment, the consensus is that Beijing will not be rushed into relaxing policy until clearer signals emerge from the all-important property and construction sectors.
The government, determined to squeeze out speculators, refuses to back down by reversing curbs imposed in April; developers do not want to waver because they paid high prices for land last year and have a bullish long-term outlook; and home buyers are sitting on the sidelines, said Mr Dong Tao, chief China economist at Credit Suisse in Hong Kong
Engineering a soft landing in the housing market is critical. To prick a bubble that had developed in big cities such as Beijing and Shanghai, the government in April raised down-payments, ended mortgage discounts, tightened rules on loans to developers and made it harder to buy multiple homes.
Although annual property inflation has fallen for two months in a row, underlying demand remains strong and few home buyers expect a sharp decline in prices, said Mr Zhang Huadong, a property analyst with Xiangcai Securities in Shanghai.
'It's very unlikely that the government will relax its policy of curbing demand,' he said. 'If policy were relaxed, there would be another surge in property prices. It would be a disaster for the market.'
REUTERS
China property prices fall due to govt curbs
BEIJING: Chinese property prices last month recorded their first monthly fall since February last year, providing further evidence that a government drive to let the air out of an inflated market is working.
Average prices in 70 cities edged down 0.1 per cent from May, lowering the annual property inflation rate to 11.4 per cent last month, from 12.4 per cent in the year to May and April's reading of 12.8 per cent, the National Bureau of Statistics said yesterday.
Coming on the heels of much slower import growth and a controlled moderation in bank lending, the figures reinforced the conviction of many economists that no further policy tightening is on the cards.
However, with surprisingly resilient exports offsetting softer domestic investment, the consensus is that Beijing will not be rushed into relaxing policy until clearer signals emerge from the all-important property and construction sectors.
The government, determined to squeeze out speculators, refuses to back down by reversing curbs imposed in April; developers do not want to waver because they paid high prices for land last year and have a bullish long-term outlook; and home buyers are sitting on the sidelines, said Mr Dong Tao, chief China economist at Credit Suisse in Hong Kong
Engineering a soft landing in the housing market is critical. To prick a bubble that had developed in big cities such as Beijing and Shanghai, the government in April raised down-payments, ended mortgage discounts, tightened rules on loans to developers and made it harder to buy multiple homes.
Although annual property inflation has fallen for two months in a row, underlying demand remains strong and few home buyers expect a sharp decline in prices, said Mr Zhang Huadong, a property analyst with Xiangcai Securities in Shanghai.
'It's very unlikely that the government will relax its policy of curbing demand,' he said. 'If policy were relaxed, there would be another surge in property prices. It would be a disaster for the market.'
REUTERS
BT : Prime City of London office rents up 25%
Business Times - 13 Jul 2010
Prime City of London office rents up 25%
Recession-driven discounts, lack of office space fuelling rise: NB Real Estate
(LONDON) Prime office rents in the City of London financial district have gained nearly 25 per cent since January, with recession-driven discounts pushing tenant demand, property consultancy NB Real Estate said yesterday.
The six-month rise was the strongest period of rental growth since reliable records began in 1988, NB Real Estate said. It has been part-fuelled by a lull in the development of high quality office space.
'The recession saw a collapse in new construction starts in the City. Tenants are now locked in bidding wars over the dwindling supply of grade A space, which is driving up rents,' said James Gillett, director of City Offices at NB Real Estate.
The amount of available office space in the City at the end of the second quarter of this year was 6.8 million square feet, down 28 per cent on the year earlier period.
Many London businesses are making a so-called 'flight to quality' as offices previously considered too expensive are now affordable, Mr Gillett said.
Average rents for prime offices in London rose from £42.50 (S$88) a square foot in January to £53 a sq ft at end-June, NB Real Estate said in a statement.
London rents are still well below their third-quarter 2007 peak of £69.50 a sq ft, said NB Real Estate, a unit of Capita Group.
Secondary office stock has remained relatively immune to the rent rises. Mr Gillett expects that to change once the supply of primary office stock dries up, which he said was likely due to the lack of new construction projects.
'The shortage of new space will become more acute over the next few years. There have been no significant construction starts in the City this year, as lack of development finance continues to be a concern,' Mr Gillett said.
Docklands office rents gained 6.7 per cent in the second quarter of this year to £40 a sq ft. Rents in London's West End theatre district held at £67.50 a sq ft, after a 3.8 per cent hike in the first-quarter this year. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Prime City of London office rents up 25%
Recession-driven discounts, lack of office space fuelling rise: NB Real Estate
(LONDON) Prime office rents in the City of London financial district have gained nearly 25 per cent since January, with recession-driven discounts pushing tenant demand, property consultancy NB Real Estate said yesterday.
The six-month rise was the strongest period of rental growth since reliable records began in 1988, NB Real Estate said. It has been part-fuelled by a lull in the development of high quality office space.
'The recession saw a collapse in new construction starts in the City. Tenants are now locked in bidding wars over the dwindling supply of grade A space, which is driving up rents,' said James Gillett, director of City Offices at NB Real Estate.
The amount of available office space in the City at the end of the second quarter of this year was 6.8 million square feet, down 28 per cent on the year earlier period.
Many London businesses are making a so-called 'flight to quality' as offices previously considered too expensive are now affordable, Mr Gillett said.
Average rents for prime offices in London rose from £42.50 (S$88) a square foot in January to £53 a sq ft at end-June, NB Real Estate said in a statement.
London rents are still well below their third-quarter 2007 peak of £69.50 a sq ft, said NB Real Estate, a unit of Capita Group.
Secondary office stock has remained relatively immune to the rent rises. Mr Gillett expects that to change once the supply of primary office stock dries up, which he said was likely due to the lack of new construction projects.
'The shortage of new space will become more acute over the next few years. There have been no significant construction starts in the City this year, as lack of development finance continues to be a concern,' Mr Gillett said.
Docklands office rents gained 6.7 per cent in the second quarter of this year to £40 a sq ft. Rents in London's West End theatre district held at £67.50 a sq ft, after a 3.8 per cent hike in the first-quarter this year. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Is the world heading for another recession?
Business Times - 13 Jul 2010
Is the world heading for another recession?
Asia could come to the world's rescue as the austerity drive takes hold in Europe, US
By SHAHID JAVED BURKI
IN RECENT months, economic policy around the world has taken a major wrong turn and, according to some economists, the global economy may be heading towards another recession. If that were to happen, the Great Recession of 2008-09 may turn into the Great Double-dip Recession of 2008-11.
This may degenerate into a depression, the first since the late 1930s. The main reason for this unhappy turn in events is the policy-induced weakness in aggregate demand. This is more evident in Europe but may also happen in the United States.
Deep political divisions in the United States are preventing the Obama administration from assisting the unemployed as their benefits run out. Republicans in the Senate, with some help from conservative Democrats, have blocked US$77 billion in aid to the unemployed proposed by the administration.
The German government has pledged US$100 billion in tax increases and spending cuts even though the economy continues to operate well below capacity. The newly installed Cameron-Craig government in London has also opted for austerity. The French are also pulling back sharply.
Perhaps most troubling of all is that the G-20 governments that recently met in Toronto failed to agree on a common framework for guiding the world economy back to full recovery. We know from the history of the world economy that when national governments are left to work on their own they are likely to work against each other rather than in support of one another. That happened in the period before World War II and produced the Great Depression.
Does this mean that the world is headed not only towards a double-dip recession but perhaps to a full-fledged depression? The answer is probably no because the large economies of Asia have not - at least not yet - joined the politically popular austerity drive in the countries on both sides of the Atlantic. Asia may come to the world's rescue and in the process acquire greater economic heft.
Economic downturns - their depth and duration - are exceedingly hard to predict. This is especially the case when governments actively intervene to shorten their duration and reduce their depth. Sometimes the cures that are used may worsen the situation rather than reduce the impact of the downturn. The 2008-09 downturn, by far the most severe of the several that have hit the global economy over the last six decades, was supposed to have ended by the time the year 2009 was in its third quarter.
The conventional measure - two successive quarters of growth - when applied to this downturn seemed to suggest that the recession was over. Not so, said Christina Romer, the chair of President Barack Obama's Council of Economic Advisors. According to her, she would be prepared to say that the Great Recession had ended only when the rate of unemployment in the United States declined to 5.5 per cent of the labour force. That may not happen for many quarters.
On the other hand, Larry Summers, the other important economic policymaker in the Obama White House, and US Treasury Secretary Timothy Geithner prefer the conventional interpretation. They believe that the aim of policymakers should now be to manage the recovery, determining the time when governments should begin the process of reducing the amount of stimulation used to prevent the economies from going into a free fall.
President Obama's challenge is to balance three different types of advice he is receiving from the people who work in his White House. The most vocal are those who watch politics, among them Rahm Emannuel, his chief of staff, and David Axelrod, his senior advisor.
Both are worried that given the sharp increase in the levels of public debt and associated fiscal deficits it would be politically costly - perhaps suicidal - to continue to stimulate the economy by using the printing press. Already, the 'Tea Party' movement has gained a great deal of political ground. It has developed its campaign by suggesting that the mountain of debt the United States has built up will have a severe impact on future generations as they begin to pay off the accumulated debt through higher taxes and reduced consumption.
Mr Summers and Mr Geithner are the sources of the second line of advice to the US president. They are not averse to continuing with some stimulation and providing compensation to the millions of people who remain unemployed - both positions are unpopular with the Republicans - but they also want to focus attention on reforming the financial system through better regulation. According to them, the president needs to spend his political capital on bringing about structural changes in the economy so that the economy does not go through another spin as it did in 2008-09.
The third line of advice comes from people such as Ms Romer who fear that by exiting more rapidly than the current situation warrants the economy may head towards a double-dip recession rather than continued recovery. This group has the support of some private economists with powerful credentials.
The most prominent among these is Paul Krugman, a Nobel Prize-winning Princeton professor and a columnist at The New York Times. 'Many economists, myself included, regard this turn to austerity as a huge mistake,' he wrote in a recent article. 'It raises memories of 1937, when FDR's premature attempt to balance the budget helped plunge a recovering economy back into severe recession. And in Germany, a few scholars see parallels to the policies of Heinrich Bruning, the chancellor from 1930 to 1932, whose devotion to financial orthodoxy ended up sealing the doom of the Weimar Republic.'
While both the European Union and the US are projected to see growth of only one per cent in their respective GDPs in 2010, the Asian countries are expected to do much better. Led by China, Asia is becoming the engine of global growth and may save the world economy from plunging into a double-dip recession.
Asia's help is coming in many ways. Recent German data illustrates the deep structural changes taking place in the global economy would not have been possible without economic expansion in Asia. Since May last year when continental Europe was in the midst of the worst economic downturn in the post-war period, German exports have risen 28.8 per cent.
Sales to non-European markets buoyed the trend; they increased by 39.5 per cent. 'Without China we would have hardly seen this recovery,' said Hannes Hesse, managing director of the VDMA engineering associates. According to Deither Klingelnberg, a maker of machine tools, Asian and emerging markets demand is the main driving force for the on-going recovery of German manufacturing and exports.
'It's China, China, China by a long way, then India, Brazil, then Russia - and the US remains weak, as do many of our European markets,' he said. While China may begin to slow down the unsustainably high rate of growth of recent months, growth will remain close to 10 per cent.
Some other large Asian economies may step forward. For instance, there is a lot of life in Indonesia which could begin to spend more by relying not just on taxes but also on borrowing. Emerging Asia as whole, with a quarter of the world's gross domestic product, has less than 8 per cent of its outstanding bonds.
Increasing the ratio will help not only to increase domestic demand, it could also put a floor under which the global economy would not fall. Asia then has become the economic area that will begin to carry a great deal of water for the global economy. But for that to happen, the West must not turn totally away from expansion and move towards austerity.
To use another metaphor, Asia is developing broad shoulders but they can carry only so much burden for the moment.
The writer is a senior visiting fellow at the Institute of South Asian Studies. He is a former vice-president of the World Bank and served as Pakistan's finance minister in 1996-97
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Is the world heading for another recession?
Asia could come to the world's rescue as the austerity drive takes hold in Europe, US
By SHAHID JAVED BURKI
IN RECENT months, economic policy around the world has taken a major wrong turn and, according to some economists, the global economy may be heading towards another recession. If that were to happen, the Great Recession of 2008-09 may turn into the Great Double-dip Recession of 2008-11.
This may degenerate into a depression, the first since the late 1930s. The main reason for this unhappy turn in events is the policy-induced weakness in aggregate demand. This is more evident in Europe but may also happen in the United States.
Deep political divisions in the United States are preventing the Obama administration from assisting the unemployed as their benefits run out. Republicans in the Senate, with some help from conservative Democrats, have blocked US$77 billion in aid to the unemployed proposed by the administration.
The German government has pledged US$100 billion in tax increases and spending cuts even though the economy continues to operate well below capacity. The newly installed Cameron-Craig government in London has also opted for austerity. The French are also pulling back sharply.
Perhaps most troubling of all is that the G-20 governments that recently met in Toronto failed to agree on a common framework for guiding the world economy back to full recovery. We know from the history of the world economy that when national governments are left to work on their own they are likely to work against each other rather than in support of one another. That happened in the period before World War II and produced the Great Depression.
Does this mean that the world is headed not only towards a double-dip recession but perhaps to a full-fledged depression? The answer is probably no because the large economies of Asia have not - at least not yet - joined the politically popular austerity drive in the countries on both sides of the Atlantic. Asia may come to the world's rescue and in the process acquire greater economic heft.
Economic downturns - their depth and duration - are exceedingly hard to predict. This is especially the case when governments actively intervene to shorten their duration and reduce their depth. Sometimes the cures that are used may worsen the situation rather than reduce the impact of the downturn. The 2008-09 downturn, by far the most severe of the several that have hit the global economy over the last six decades, was supposed to have ended by the time the year 2009 was in its third quarter.
The conventional measure - two successive quarters of growth - when applied to this downturn seemed to suggest that the recession was over. Not so, said Christina Romer, the chair of President Barack Obama's Council of Economic Advisors. According to her, she would be prepared to say that the Great Recession had ended only when the rate of unemployment in the United States declined to 5.5 per cent of the labour force. That may not happen for many quarters.
On the other hand, Larry Summers, the other important economic policymaker in the Obama White House, and US Treasury Secretary Timothy Geithner prefer the conventional interpretation. They believe that the aim of policymakers should now be to manage the recovery, determining the time when governments should begin the process of reducing the amount of stimulation used to prevent the economies from going into a free fall.
President Obama's challenge is to balance three different types of advice he is receiving from the people who work in his White House. The most vocal are those who watch politics, among them Rahm Emannuel, his chief of staff, and David Axelrod, his senior advisor.
Both are worried that given the sharp increase in the levels of public debt and associated fiscal deficits it would be politically costly - perhaps suicidal - to continue to stimulate the economy by using the printing press. Already, the 'Tea Party' movement has gained a great deal of political ground. It has developed its campaign by suggesting that the mountain of debt the United States has built up will have a severe impact on future generations as they begin to pay off the accumulated debt through higher taxes and reduced consumption.
Mr Summers and Mr Geithner are the sources of the second line of advice to the US president. They are not averse to continuing with some stimulation and providing compensation to the millions of people who remain unemployed - both positions are unpopular with the Republicans - but they also want to focus attention on reforming the financial system through better regulation. According to them, the president needs to spend his political capital on bringing about structural changes in the economy so that the economy does not go through another spin as it did in 2008-09.
The third line of advice comes from people such as Ms Romer who fear that by exiting more rapidly than the current situation warrants the economy may head towards a double-dip recession rather than continued recovery. This group has the support of some private economists with powerful credentials.
The most prominent among these is Paul Krugman, a Nobel Prize-winning Princeton professor and a columnist at The New York Times. 'Many economists, myself included, regard this turn to austerity as a huge mistake,' he wrote in a recent article. 'It raises memories of 1937, when FDR's premature attempt to balance the budget helped plunge a recovering economy back into severe recession. And in Germany, a few scholars see parallels to the policies of Heinrich Bruning, the chancellor from 1930 to 1932, whose devotion to financial orthodoxy ended up sealing the doom of the Weimar Republic.'
While both the European Union and the US are projected to see growth of only one per cent in their respective GDPs in 2010, the Asian countries are expected to do much better. Led by China, Asia is becoming the engine of global growth and may save the world economy from plunging into a double-dip recession.
Asia's help is coming in many ways. Recent German data illustrates the deep structural changes taking place in the global economy would not have been possible without economic expansion in Asia. Since May last year when continental Europe was in the midst of the worst economic downturn in the post-war period, German exports have risen 28.8 per cent.
Sales to non-European markets buoyed the trend; they increased by 39.5 per cent. 'Without China we would have hardly seen this recovery,' said Hannes Hesse, managing director of the VDMA engineering associates. According to Deither Klingelnberg, a maker of machine tools, Asian and emerging markets demand is the main driving force for the on-going recovery of German manufacturing and exports.
'It's China, China, China by a long way, then India, Brazil, then Russia - and the US remains weak, as do many of our European markets,' he said. While China may begin to slow down the unsustainably high rate of growth of recent months, growth will remain close to 10 per cent.
Some other large Asian economies may step forward. For instance, there is a lot of life in Indonesia which could begin to spend more by relying not just on taxes but also on borrowing. Emerging Asia as whole, with a quarter of the world's gross domestic product, has less than 8 per cent of its outstanding bonds.
Increasing the ratio will help not only to increase domestic demand, it could also put a floor under which the global economy would not fall. Asia then has become the economic area that will begin to carry a great deal of water for the global economy. But for that to happen, the West must not turn totally away from expansion and move towards austerity.
To use another metaphor, Asia is developing broad shoulders but they can carry only so much burden for the moment.
The writer is a senior visiting fellow at the Institute of South Asian Studies. He is a former vice-president of the World Bank and served as Pakistan's finance minister in 1996-97
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : HK should regulate sales of apartments: lawmaker
Business Times - 13 Jul 2010
HK should regulate sales of apartments: lawmaker
More transparency on developers' sales tactics needed
(HONG KONG) The government should regulate Hong Kong developers' sales tactics to increase transparency, a lawmaker said yesterday, as the territory's Parliament held a special session on the collapse of HK$2.67 billion (S$474.89 million) of apartment sales by Henderson Land Development Co.
The Parliament held the meeting, which Henderson declined to attend, to discuss the 20 luxury apartment sales that fell through, prompting legislators' calls for the government to investigate the transactions.
The government increased its scrutiny of developers after Henderson said in October that it sold an apartment at 39 Conduit Road in the Mid-Levels district on Hong Kong Island for a record HK$88,000 a square foot.
'What's happening is a failure of existing regulations,' Wong Kwok-hing, chairman of the Legislative Council's Housing Committee, said at the meeting to discuss the collapsed sales.
Henderson said in a press release its appearance in yesterday's meeting would be 'inappropriate' because it has 'sufficiently disclosed' details on the transactions and an investigation is still under way.
The government, which is trying to curb a 38 per cent surge in home prices since the beginning of 2009, introduced in June nine rules on new home sales, including the use of show flats developers use to entice buyers before a building is completed. Those measures have no statutory power and are rules the Real Estate Developers Association 'advise' its members to follow, Mr Wong said.
Hong Kong's government has sought details from Henderson, controlled by billionaire Lee Shau-kee, on the sale agreements after 20 of the 24 sales at 39 Conduit Road were cancelled.
Henderson has repeatedly denied any wrongdoing in the way it handled the transactions. Yesterday it said in a statement published in the South China Morning Post that 'the company strongly rejects' allegations that there have been irregularities in the sale of the apartments.
The government has submitted all the letters exchanged between Henderson and the Lands Department to the Legislative Council (Legco), Permanent Secretary for Transport and Housing Duncan Pescod told lawmakers yesterday. He and other government officials attending the meeting declined to comment on the investigations into the collapsed sales.
Hong Kong police and other law enforcement agencies are investigating the sales at 39 Conduit Road, Transport and Housing Secretary Eva Cheng told lawmakers during a July 5 Legco session. Ms Cheng declined to specify the other agencies and give a schedule for the investigation.
The lawmakers will meet again to discuss the sales, Mr Wong said, without giving a date. The meeting was attended by officials from the government's Lands Department and Housing Authority.
'Setting up legislations to regulate apartment sales would be unnecessary,' said Patrick Chow, head of research at property agency Ricacorp Ltd in Hong Kong. 'All we need is more clearly defined rules.'
Henderson shares rose 0.6 per cent to HK$47.50 at the close of trading in Hong Kong. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
HK should regulate sales of apartments: lawmaker
More transparency on developers' sales tactics needed
(HONG KONG) The government should regulate Hong Kong developers' sales tactics to increase transparency, a lawmaker said yesterday, as the territory's Parliament held a special session on the collapse of HK$2.67 billion (S$474.89 million) of apartment sales by Henderson Land Development Co.
The Parliament held the meeting, which Henderson declined to attend, to discuss the 20 luxury apartment sales that fell through, prompting legislators' calls for the government to investigate the transactions.
The government increased its scrutiny of developers after Henderson said in October that it sold an apartment at 39 Conduit Road in the Mid-Levels district on Hong Kong Island for a record HK$88,000 a square foot.
'What's happening is a failure of existing regulations,' Wong Kwok-hing, chairman of the Legislative Council's Housing Committee, said at the meeting to discuss the collapsed sales.
Henderson said in a press release its appearance in yesterday's meeting would be 'inappropriate' because it has 'sufficiently disclosed' details on the transactions and an investigation is still under way.
The government, which is trying to curb a 38 per cent surge in home prices since the beginning of 2009, introduced in June nine rules on new home sales, including the use of show flats developers use to entice buyers before a building is completed. Those measures have no statutory power and are rules the Real Estate Developers Association 'advise' its members to follow, Mr Wong said.
Hong Kong's government has sought details from Henderson, controlled by billionaire Lee Shau-kee, on the sale agreements after 20 of the 24 sales at 39 Conduit Road were cancelled.
Henderson has repeatedly denied any wrongdoing in the way it handled the transactions. Yesterday it said in a statement published in the South China Morning Post that 'the company strongly rejects' allegations that there have been irregularities in the sale of the apartments.
The government has submitted all the letters exchanged between Henderson and the Lands Department to the Legislative Council (Legco), Permanent Secretary for Transport and Housing Duncan Pescod told lawmakers yesterday. He and other government officials attending the meeting declined to comment on the investigations into the collapsed sales.
Hong Kong police and other law enforcement agencies are investigating the sales at 39 Conduit Road, Transport and Housing Secretary Eva Cheng told lawmakers during a July 5 Legco session. Ms Cheng declined to specify the other agencies and give a schedule for the investigation.
The lawmakers will meet again to discuss the sales, Mr Wong said, without giving a date. The meeting was attended by officials from the government's Lands Department and Housing Authority.
'Setting up legislations to regulate apartment sales would be unnecessary,' said Patrick Chow, head of research at property agency Ricacorp Ltd in Hong Kong. 'All we need is more clearly defined rules.'
Henderson shares rose 0.6 per cent to HK$47.50 at the close of trading in Hong Kong. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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