Business Times - 12 Aug 2010
Yanlord posts 9% rise in Q2 profits to $99.9m
By LYNETTE KHOO
YANLORD Group posted a 9 per cent rise in net profit for the second quarter ended June 30 to $99.9 million, citing an increase in gross floor area (GFA) delivered.
Revenue grew one per cent from a year ago to $622.1 million during the quarter, while gross profit margin inched up 1.3 percentage points to 63.4 per cent, the China-based high-end residential developer said. Besides the continuing delivery of its existing project at Yanlord Riverside City (Phase 3) in Shanghai, the group also delivered two new projects namely Yunjie Riverside Gardens (Phase 2) in Shanghai and Yanlord Peninsula (Apartment-Phase 2) in Suzhou in the second quarter.
This raised its GFA delivered in the second quarter by 7.3 per cent to 132,638 sq m. Average selling price held steady at 23,156 yuan per sq m, compared to 23,152 yuan per sq m in the Q2 last year.
On a fully diluted basis, the group's Q2 earnings per share was 4.76 cents, compared to 4.69 cents for the same quarter last year.
Riding on improved GFA delivered, Yanlord's revenue grew in terms of Chinese yuan but the strengthening Sing dollar against the yuan resulted in its revenue dipping one per cent from a year ago to $795.2 million.
Yanlord chairman and CEO Zhong Sheng Jian noted that demand for high quality residential developments in China continues to drive the group's revenue performance.
He said the group will continue to focus on developing quality residential apartments in prime locations within high growth Chinese cities.
In the second half, Yanlord will launch a new batch of its existing projects, namely Yanlord G53 Apartment in Nanjing, Yanlord Townhouse in Shanghai and Yanlord New City Gardens (Phase 2) in Zhuhai. It will also commence the construction of Yanlord Sunland Gardens (Phase 1) in Shanghai and Yanlord Yangtze Riverbay Town (Phase 3) in Nanjing.
As at June 30, the group had total pre-contracted sales of about $1.13 billion which will be progressively recognised as revenue in subsequent financial periods. Its cash and cash balances grew to $1.43 billion as at June 30 from $1.27 billion a year ago, boosted by the issue of US$300 million senior notes in April.
Prior to the release of its Q2 results, Yanlord's shares slipped 1.64 per cent lower to $1.80 by market close.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Thursday, August 12, 2010
BT : Key property markets in Asia may face slower H2
Business Times - 12 Aug 2010
Key property markets in Asia may face slower H2
China govt cooling moves likely to dampen sector sentiment; 'policy risks' seen for S'pore, HK
(HONG KONG) Major property markets in Asia are likely to face a slower second half because of policy risks and an expected increase in housing and office supply, after some developers had a positive first six months.
China Overseas & Investment Ltd, the country's top listed developer by market value, Hong Kong tycoon Li Ka-shing's Cheung Kong (Holdings) Ltd and Singapore's CapitaLand Ltd, South-east Asia's biggest developer, all benefited from strong housing prices in their key markets earlier this year.
However, Chinese government moves to cool its red-hot property market by raising mortgage rates and downpayments for second and third homes, restricting lending and building affordable housing will likely dampen sentiment in the sector.
The Hong Kong and Singapore governments are also wary of asset bubbles, although moves so far have been muted compared with China. Hong Kong raised the stamp duty on purchases of luxury apartments, while Singapore slapped a new stamp duty on homes sold within a year of purchase and set a cap on loans.
'Every market is a little different in the coming six months,' said Nicole Wong, regional head of property research at CLSA. 'Some markets might have policy risks and that would be for Singapore and a little bit from Hong Kong. And there will be some markets where policy risks have peaked in our view, like China.'
In China, harsh policies announced in mid-April have caused transaction volume in some cities to plummet. The government also plans to roll out more affordable housing as, increasingly, more Chinese are complaining that they are priced out of the market.
'The main uncertainties are policy risks that are starting to unfold in China, and especially as inventory starts to build up, you should see price cuts emerge in September, October,' said UBS head of Asia real estate research Eric Wong.
A third of China's developers, such as China Vanke Co Ltd and Evergrande Real Estate Group Ltd, have reduced prices, and more are likely to do so in the second half, which is expected to affect their bottom lines, analysts said.
First-half operating profit at China Overseas rose 48 per cent to HK$7.98 billion (S$1.39 billion) in the first half, with analysts polled by Thomson Reuters IBES expecting HK$14.75 billion, up 20 per cent annually and indicating an easing second half.
In other markets, Japan's top developers Mitsui Fudosan Co Ltd and Mitsubishi Estate Co Ltd face an office space oversupply and lower rental revenue in the second half.
Japan was the world's second-biggest property market but was set to be overtaken by China in 2011, real estate services company DTZ said earlier this year.
In Australia and India, rising interest rates might dampen buying sentiment for the rest of the year.
The bright spots are likely to be some emerging markets, such as Thailand, where the government has been helping to support the markets as internal political strife impacted its economy.
The property sub-indexes in Thailand and the Philippines have been outperforming their broader stock markets. Ayala Land Inc, the Philippines' largest property company, said second-quarter net income was up by more than a third. Thai Land & Houses, Thailand's top home builder, said it expects revenue to grow by 15 per cent this year, better than analysts' forecasts, despite a weak second quarter.
CLSA had a preference for stocks of Thai developers and Singapore Reits (real estate investment trusts), Ms Wong said, but declined to identify any picks\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Key property markets in Asia may face slower H2
China govt cooling moves likely to dampen sector sentiment; 'policy risks' seen for S'pore, HK
(HONG KONG) Major property markets in Asia are likely to face a slower second half because of policy risks and an expected increase in housing and office supply, after some developers had a positive first six months.
China Overseas & Investment Ltd, the country's top listed developer by market value, Hong Kong tycoon Li Ka-shing's Cheung Kong (Holdings) Ltd and Singapore's CapitaLand Ltd, South-east Asia's biggest developer, all benefited from strong housing prices in their key markets earlier this year.
However, Chinese government moves to cool its red-hot property market by raising mortgage rates and downpayments for second and third homes, restricting lending and building affordable housing will likely dampen sentiment in the sector.
The Hong Kong and Singapore governments are also wary of asset bubbles, although moves so far have been muted compared with China. Hong Kong raised the stamp duty on purchases of luxury apartments, while Singapore slapped a new stamp duty on homes sold within a year of purchase and set a cap on loans.
'Every market is a little different in the coming six months,' said Nicole Wong, regional head of property research at CLSA. 'Some markets might have policy risks and that would be for Singapore and a little bit from Hong Kong. And there will be some markets where policy risks have peaked in our view, like China.'
In China, harsh policies announced in mid-April have caused transaction volume in some cities to plummet. The government also plans to roll out more affordable housing as, increasingly, more Chinese are complaining that they are priced out of the market.
'The main uncertainties are policy risks that are starting to unfold in China, and especially as inventory starts to build up, you should see price cuts emerge in September, October,' said UBS head of Asia real estate research Eric Wong.
A third of China's developers, such as China Vanke Co Ltd and Evergrande Real Estate Group Ltd, have reduced prices, and more are likely to do so in the second half, which is expected to affect their bottom lines, analysts said.
First-half operating profit at China Overseas rose 48 per cent to HK$7.98 billion (S$1.39 billion) in the first half, with analysts polled by Thomson Reuters IBES expecting HK$14.75 billion, up 20 per cent annually and indicating an easing second half.
In other markets, Japan's top developers Mitsui Fudosan Co Ltd and Mitsubishi Estate Co Ltd face an office space oversupply and lower rental revenue in the second half.
Japan was the world's second-biggest property market but was set to be overtaken by China in 2011, real estate services company DTZ said earlier this year.
In Australia and India, rising interest rates might dampen buying sentiment for the rest of the year.
The bright spots are likely to be some emerging markets, such as Thailand, where the government has been helping to support the markets as internal political strife impacted its economy.
The property sub-indexes in Thailand and the Philippines have been outperforming their broader stock markets. Ayala Land Inc, the Philippines' largest property company, said second-quarter net income was up by more than a third. Thai Land & Houses, Thailand's top home builder, said it expects revenue to grow by 15 per cent this year, better than analysts' forecasts, despite a weak second quarter.
CLSA had a preference for stocks of Thai developers and Singapore Reits (real estate investment trusts), Ms Wong said, but declined to identify any picks\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Top bid for Ubi Rd industrial site springs a surprise
Business Times - 12 Aug 2010
Top bid for Ubi Rd industrial site springs a surprise
Oxley Rising offers $158.1m for 60-year leasehold site, double analyst estimates
By UMA SHANKARI
(SINGAPORE) Oxley Rising has emerged as the top bidder for a 3.5 hectare industrial site at Ubi Road 1.
The company, which offered $158.1 million or $169 per square foot per plot ratio (psf ppr) for the 60-year leasehold site, trumped 10 other bidders including Qingdao Construction (Singapore) and Sim Lian Holdings.
This is twice what analysts estimated the site could fetch when it was launched in June. Then, consultants reckoned that it could fetch $61-$75 million, or $65-80 psf ppr.
'The overwhelming interest in the land parcel could be due to (Singapore's) strong GDP growth of 18.8 per cent year-on-year in Q2 2010, driven by a 44.5 per cent year-on-year surge in manufacturing. This coupled with a robust take-up of 2.67 million sq ft of factory space in Q2 2010 could have created more interest in the land,' said Li Hiaw Ho, executive director of CBRE Research.
Oxley's top bid of $169 psf ppr was almost twice the amount of recent winning bids for industrial sites in Ubi that were awarded.
In fact, the last time that the $100 psf-level was breached for industrial land was in August 2009. Then, KNG Development paid $105 psf ppr for a 30-year leasehold site at Kaki Bukit Road 2.
And the only industrial land awarded under the government land sales programme for more than $169 psf ppr was a 30-year leasehold site that One Commonwealth now sits on. In November 2007, Chiu Teng Construction paid $170 psf ppr for it.
Oxley's top bid was 8 per cent higher than the second highest bid, which was from Qing Quan and Qingdao Construction (Singapore).
The two companies put in a joint bid of $146.6 million or $156 psf ppr. Oxley's bid was also 159 per cent higher than the lowest bid of $61.1 million or $65 psf ppr from Soilbuild Group.
The site has a land area of 375,150 sq ft and a 2.5 plot ratio, giving it a maximum gross floor area of 937,875 sq ft. It is zoned for 'Business 1' use, which means it can be developed for various uses such as clean and light industry - which includes computer software development, printing and publishing, assembly and repair of computer hardware and electronic equipment.
Mr Li said that the the breakeven cost for this development is estimated to be about $380 psf to $400 psf.
CBRE's data shows that in the first seven months of 2010, upper floor strata-titled units in the 60-year leasehold Vertex, located along Ubi Avenue 3, sold for between $309 psf and $409 psf while the ground floor units sold for $371 psf to $550 psf.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Top bid for Ubi Rd industrial site springs a surprise
Oxley Rising offers $158.1m for 60-year leasehold site, double analyst estimates
By UMA SHANKARI
(SINGAPORE) Oxley Rising has emerged as the top bidder for a 3.5 hectare industrial site at Ubi Road 1.
The company, which offered $158.1 million or $169 per square foot per plot ratio (psf ppr) for the 60-year leasehold site, trumped 10 other bidders including Qingdao Construction (Singapore) and Sim Lian Holdings.
This is twice what analysts estimated the site could fetch when it was launched in June. Then, consultants reckoned that it could fetch $61-$75 million, or $65-80 psf ppr.
'The overwhelming interest in the land parcel could be due to (Singapore's) strong GDP growth of 18.8 per cent year-on-year in Q2 2010, driven by a 44.5 per cent year-on-year surge in manufacturing. This coupled with a robust take-up of 2.67 million sq ft of factory space in Q2 2010 could have created more interest in the land,' said Li Hiaw Ho, executive director of CBRE Research.
Oxley's top bid of $169 psf ppr was almost twice the amount of recent winning bids for industrial sites in Ubi that were awarded.
In fact, the last time that the $100 psf-level was breached for industrial land was in August 2009. Then, KNG Development paid $105 psf ppr for a 30-year leasehold site at Kaki Bukit Road 2.
And the only industrial land awarded under the government land sales programme for more than $169 psf ppr was a 30-year leasehold site that One Commonwealth now sits on. In November 2007, Chiu Teng Construction paid $170 psf ppr for it.
Oxley's top bid was 8 per cent higher than the second highest bid, which was from Qing Quan and Qingdao Construction (Singapore).
The two companies put in a joint bid of $146.6 million or $156 psf ppr. Oxley's bid was also 159 per cent higher than the lowest bid of $61.1 million or $65 psf ppr from Soilbuild Group.
The site has a land area of 375,150 sq ft and a 2.5 plot ratio, giving it a maximum gross floor area of 937,875 sq ft. It is zoned for 'Business 1' use, which means it can be developed for various uses such as clean and light industry - which includes computer software development, printing and publishing, assembly and repair of computer hardware and electronic equipment.
Mr Li said that the the breakeven cost for this development is estimated to be about $380 psf to $400 psf.
CBRE's data shows that in the first seven months of 2010, upper floor strata-titled units in the 60-year leasehold Vertex, located along Ubi Avenue 3, sold for between $309 psf and $409 psf while the ground floor units sold for $371 psf to $550 psf.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : OUE strikes a towering deal on Shenton Way
Business Times - 12 Aug 2010
OUE strikes a towering deal on Shenton Way
It snaps up DBS Towers One and Two for $870m as chairman Riady makes statement of intent
By EMILYN YAP
(SINGAPORE) Overseas Union Enterprise (OUE) has bought DBS Towers One and Two for $870.5 million or around $970 per sq ft of net lettable area, inking the largest commercial property deal in Singapore so far this year and perhaps since mid-2008.
The towers at 6 Shenton Way could turn into a mixed office-retail development, under one of several asset enhancement plans the property group is studying.
OUE announced its buy yesterday after the stock market closed. It is using both internal funds and debt to finance the purchase, which should be completed in September or October.
The seller is a Goldman Sachs real estate fund, which looks set to bag a nice profit - it had paid DBS $690 million or around $800 psf of net lettable area for the buildings in 2005.
The last time big office deals appeared in the market was in early 2008 before the global financial crisis erupted. These include the sale of the Singapore Power Building at Somerset Road for $1.01 billion or $1,836 psf of net lettable area.
Speaking to BT, OUE executive chairman Stephen Riady said that the purchase of DBS Towers One and Two is in line with his hopes to grow the company's asset size to around $10 billion in the next five to seven years. As at June 30, the company's assets stood at $2.93 billion.
The 99-year leasehold towers are valued at around $1 billion and they have a remaining lease of 56 years. Both are fully leased to tenants such as DBS Bank, Deloitte & Touche and Aviva.
OUE is considering various options for enhancing the buildings. 'We will not buy any asset and not do anything with it... We see a lot of value that we can create over the next few years,' Mr Riady said.
OUE could be creating more net lettable area at the towers. Even though they have a total gross floor area of around 1.24 million sq ft, the amount of income-generating space stands at just around 883,000 sq ft, he pointed out.
The first few storeys could be set aside for retail space, with offices taking up the rest of the towers, Mr Riady added. 'It's just one possibility. We have a few options which we are studying.'
Market watchers suggested that OUE could build a residential project on the site. The number of condominium developments at Tanjong Pagar has increased over the years, with recent launches such as 76 Shenton selling fast at prices that can exceed $2,000 psf.
Cushman & Wakefield managing director Donald Han said that OUE could consider redeveloping DBS Tower One - the older of the two blocks - into a residential-retail project. It could keep Tower Two as an office block but enhance it for more space.
He added that if OUE seeks approval from the authorities in time, it can even start launching the residential units for sale before 2012, when DBS starts vacating its space at the towers to move to Marina Bay Financial Centre.
Mr Riady said that asset enhancement works are likely to proceed in stages. In the meantime, OUE also stands to benefit from rising office rents at the towers as the leasing market continues to pick up.
According to CB Richard Ellis (CBRE) investment properties executive director Jeremy Lake, rents at DBS Tower One are around $5 psf while those at Tower Two are around $6-6.50 psf. They could go up by some 10 per cent by the end of the year given the recovery in the office market, he said. CBRE brokered the sale of the buildings to OUE.
On top of its property purchase, OUE had something else to cheer about yesterday. It posted a net profit of $16.7 million for the second quarter, reversing from a loss of $47.8 million a year ago.
Higher revenue from its hospitality business and contributions from the new Mandarin Gallery boosted earnings. The top line grew 81 per cent from last year to $51.7 million.
It also helped that OUE did not suffer any property impairment losses in Q2 - it was hit by such a loss of $52.2 million a year ago.
Earnings per share in Q2 was two cents, up from a loss per share of five cents last year. Net asset value per share was $2.28, increasing from $2.07 over the same period. OUE will be paying a dividend of two cents per share on Sept 15.
The counter lost three cents yesterday to close at $2.61.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
DBS Towers: The seller - a Goldman Sachs real estate fund - bought the property from DBS for $690m in 2005. OUE aims to triple its asset size to around $10b
OUE strikes a towering deal on Shenton Way
It snaps up DBS Towers One and Two for $870m as chairman Riady makes statement of intent
By EMILYN YAP
(SINGAPORE) Overseas Union Enterprise (OUE) has bought DBS Towers One and Two for $870.5 million or around $970 per sq ft of net lettable area, inking the largest commercial property deal in Singapore so far this year and perhaps since mid-2008.
The towers at 6 Shenton Way could turn into a mixed office-retail development, under one of several asset enhancement plans the property group is studying.
OUE announced its buy yesterday after the stock market closed. It is using both internal funds and debt to finance the purchase, which should be completed in September or October.
The seller is a Goldman Sachs real estate fund, which looks set to bag a nice profit - it had paid DBS $690 million or around $800 psf of net lettable area for the buildings in 2005.
The last time big office deals appeared in the market was in early 2008 before the global financial crisis erupted. These include the sale of the Singapore Power Building at Somerset Road for $1.01 billion or $1,836 psf of net lettable area.
Speaking to BT, OUE executive chairman Stephen Riady said that the purchase of DBS Towers One and Two is in line with his hopes to grow the company's asset size to around $10 billion in the next five to seven years. As at June 30, the company's assets stood at $2.93 billion.
The 99-year leasehold towers are valued at around $1 billion and they have a remaining lease of 56 years. Both are fully leased to tenants such as DBS Bank, Deloitte & Touche and Aviva.
OUE is considering various options for enhancing the buildings. 'We will not buy any asset and not do anything with it... We see a lot of value that we can create over the next few years,' Mr Riady said.
OUE could be creating more net lettable area at the towers. Even though they have a total gross floor area of around 1.24 million sq ft, the amount of income-generating space stands at just around 883,000 sq ft, he pointed out.
The first few storeys could be set aside for retail space, with offices taking up the rest of the towers, Mr Riady added. 'It's just one possibility. We have a few options which we are studying.'
Market watchers suggested that OUE could build a residential project on the site. The number of condominium developments at Tanjong Pagar has increased over the years, with recent launches such as 76 Shenton selling fast at prices that can exceed $2,000 psf.
Cushman & Wakefield managing director Donald Han said that OUE could consider redeveloping DBS Tower One - the older of the two blocks - into a residential-retail project. It could keep Tower Two as an office block but enhance it for more space.
He added that if OUE seeks approval from the authorities in time, it can even start launching the residential units for sale before 2012, when DBS starts vacating its space at the towers to move to Marina Bay Financial Centre.
Mr Riady said that asset enhancement works are likely to proceed in stages. In the meantime, OUE also stands to benefit from rising office rents at the towers as the leasing market continues to pick up.
According to CB Richard Ellis (CBRE) investment properties executive director Jeremy Lake, rents at DBS Tower One are around $5 psf while those at Tower Two are around $6-6.50 psf. They could go up by some 10 per cent by the end of the year given the recovery in the office market, he said. CBRE brokered the sale of the buildings to OUE.
On top of its property purchase, OUE had something else to cheer about yesterday. It posted a net profit of $16.7 million for the second quarter, reversing from a loss of $47.8 million a year ago.
Higher revenue from its hospitality business and contributions from the new Mandarin Gallery boosted earnings. The top line grew 81 per cent from last year to $51.7 million.
It also helped that OUE did not suffer any property impairment losses in Q2 - it was hit by such a loss of $52.2 million a year ago.
Earnings per share in Q2 was two cents, up from a loss per share of five cents last year. Net asset value per share was $2.28, increasing from $2.07 over the same period. OUE will be paying a dividend of two cents per share on Sept 15.
The counter lost three cents yesterday to close at $2.61.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
DBS Towers: The seller - a Goldman Sachs real estate fund - bought the property from DBS for $690m in 2005. OUE aims to triple its asset size to around $10b
Wednesday, August 11, 2010
TODAY ONLINE : Housing bubble slowly shrinking?
Housing bubble slowly shrinking?
Beijing's efforts to deter property speculators look to be paying off
11:55 AM Aug 10, 2010
BEIJING - China's property prices rose at the slowest pace in six months in July as the government clamped down on speculation to prevent asset bubbles and keep housing affordable.
Prices in 70 major cities climbed 10.3 per cent from a year earlier, the Statistic Bureau's newspaper, China Information News, reported this morning. That was less than an 11.4-per-cent increase in June and the median estimate of 10.5 per cent in a Bloomberg survey of eight economists.
China's banking regulator said on Friday that the government will maintain policies to cool the property market, damping speculation that slowing economic growth would encourage an easing of the measures. The regulator has told lenders to conduct stress tests to gauge the impact of home prices falling as much as 60 per cent in the hardest-hit markets, a source said last week.
"The government's resolve on property curbs will be tested as increasing risks to external demand and slowing domestic production and investment cool growth later this year," said Mizuho Securities Asia economist Shen Jianguang. "The government may continue to rein in property speculation, but some of the most stringent measures may be adjusted at the end of this year when price corrections start to spur transactions."
Restrictions imposed by the government this year have included higher down-payment and mortgage rates for multiple- home buyers and instructions for lenders to halt third-home loans in areas with "excessive price gains".
Price increases have slowed from a record 12.8 per cent gain in April. Prices were unchanged in July from June, following a 0.1 per cent month-on-month decline in June that was the first decrease in 16 months.
Investment in real-estate development rose 37.2 per cent in the first seven months of 2010 from a year earlier to 2.39 trillion yuan ($476 billion) after a 38.1-per-cent gain in the first six months, the newspaper said. BLOOMBERG
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Beijing's efforts to deter property speculators look to be paying off
11:55 AM Aug 10, 2010
BEIJING - China's property prices rose at the slowest pace in six months in July as the government clamped down on speculation to prevent asset bubbles and keep housing affordable.
Prices in 70 major cities climbed 10.3 per cent from a year earlier, the Statistic Bureau's newspaper, China Information News, reported this morning. That was less than an 11.4-per-cent increase in June and the median estimate of 10.5 per cent in a Bloomberg survey of eight economists.
China's banking regulator said on Friday that the government will maintain policies to cool the property market, damping speculation that slowing economic growth would encourage an easing of the measures. The regulator has told lenders to conduct stress tests to gauge the impact of home prices falling as much as 60 per cent in the hardest-hit markets, a source said last week.
"The government's resolve on property curbs will be tested as increasing risks to external demand and slowing domestic production and investment cool growth later this year," said Mizuho Securities Asia economist Shen Jianguang. "The government may continue to rein in property speculation, but some of the most stringent measures may be adjusted at the end of this year when price corrections start to spur transactions."
Restrictions imposed by the government this year have included higher down-payment and mortgage rates for multiple- home buyers and instructions for lenders to halt third-home loans in areas with "excessive price gains".
Price increases have slowed from a record 12.8 per cent gain in April. Prices were unchanged in July from June, following a 0.1 per cent month-on-month decline in June that was the first decrease in 16 months.
Investment in real-estate development rose 37.2 per cent in the first seven months of 2010 from a year earlier to 2.39 trillion yuan ($476 billion) after a 38.1-per-cent gain in the first six months, the newspaper said. BLOOMBERG
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST : Liveable cities: S'pore exports its expertise
Aug 11, 2010
Liveable cities: S'pore exports its expertise
Foreign officials flock here to learn about urban management
By Amresh Gunasingham
SINGAPORE is enhancing its reputation as the go-to classroom for other countries hoping to learn how to build the liveable cities of tomorrow.
Officials from 40 countries including China, India and nations in the Middle East have come here in the past year to study the nuts and bolts of building landfills, managing waste and recycling water for industrial use and drinking.
And homegrown companies such as Keppel Seghers and Sembcorp have gone abroad, to the Middle East for example, to sell their technological know-how.
They have found rich pickings. In the past three years, they have signed deals to build water and waste-treatment facilities worth upwards of $4 billion.
Associate Professor Simon Tay, who chairs the Singapore Institute of International Affairs, said Singapore's leap from being a Third- to a First-World metro-polis has produced many lessons from which growing cities in Asia and beyond can draw. By combining technology with pragmatic policy-making, it continues to be a test bed for innovative technologies sought after as a model of the way to go, said Prof Tay, who used to chair the National Environment Agency (NEA).
Prime examples of cities which have learnt from Singapore are Tianjin, which is developing its Eco-city, and Guangzhou, with its Knowledge City.
Mr Michael Chia, the chief executive of Keppel Integrated Engineering, said: 'With more communities around the world realising that reliable and proven technology can provide effective solutions for waste-water treatment and waste management, there's an increasing demand for such technologies.'
Agencies such as the Economic Development Board and International Enterprise Singapore, which have been pushing the 'Singapore Inc' brand overseas, have their work cut out for them as countries strive for economic advancement that is, at the same time, environmentally sustainable.
The NEA, for example, has shared its knowledge of how to build and maintain landfills to contain waste in space-constrained cities, using its offshore Semakau Landfill as an exhibit.
The NEA also showcases the systems it uses to monitor key environmental indicators such as pollution levels and meteorological data, said its director of industry development and promotion Dalson Chung.
But what sort of trickle-down effect will this growing recognition of Singapore's expertise have here, particularly at a time when the public is openly questioning, for example, the capacity of the drainage system to cope with floods?
Prof Tay named two benefits: One is that tapping green technology will build the tools to further enhance Singapore's landscape.
'This is a green infrastructure that adds to the value and appeal of the city and underscores property prices and
everyday activities like outdoor dining, whether at the hawker centre or stylish cafes,' he said.
The other benefit takes the form of economic trickle-down from there being more companies providing environmental services on a global scale, he said.
amreshg@sph.com.sg
--------------------------------------------------------------------------------
ADDING VALUE
'This is a green infrastructure that adds to the value and appeal of the city and underscores property prices and everyday activities like outdoor dining.'
Singapore Institute of International Affairs chairman Simon Tay, on the benefits of growing recognition of Singapore's expertise
Liveable cities: S'pore exports its expertise
Foreign officials flock here to learn about urban management
By Amresh Gunasingham
SINGAPORE is enhancing its reputation as the go-to classroom for other countries hoping to learn how to build the liveable cities of tomorrow.
Officials from 40 countries including China, India and nations in the Middle East have come here in the past year to study the nuts and bolts of building landfills, managing waste and recycling water for industrial use and drinking.
And homegrown companies such as Keppel Seghers and Sembcorp have gone abroad, to the Middle East for example, to sell their technological know-how.
They have found rich pickings. In the past three years, they have signed deals to build water and waste-treatment facilities worth upwards of $4 billion.
Associate Professor Simon Tay, who chairs the Singapore Institute of International Affairs, said Singapore's leap from being a Third- to a First-World metro-polis has produced many lessons from which growing cities in Asia and beyond can draw. By combining technology with pragmatic policy-making, it continues to be a test bed for innovative technologies sought after as a model of the way to go, said Prof Tay, who used to chair the National Environment Agency (NEA).
Prime examples of cities which have learnt from Singapore are Tianjin, which is developing its Eco-city, and Guangzhou, with its Knowledge City.
Mr Michael Chia, the chief executive of Keppel Integrated Engineering, said: 'With more communities around the world realising that reliable and proven technology can provide effective solutions for waste-water treatment and waste management, there's an increasing demand for such technologies.'
Agencies such as the Economic Development Board and International Enterprise Singapore, which have been pushing the 'Singapore Inc' brand overseas, have their work cut out for them as countries strive for economic advancement that is, at the same time, environmentally sustainable.
The NEA, for example, has shared its knowledge of how to build and maintain landfills to contain waste in space-constrained cities, using its offshore Semakau Landfill as an exhibit.
The NEA also showcases the systems it uses to monitor key environmental indicators such as pollution levels and meteorological data, said its director of industry development and promotion Dalson Chung.
But what sort of trickle-down effect will this growing recognition of Singapore's expertise have here, particularly at a time when the public is openly questioning, for example, the capacity of the drainage system to cope with floods?
Prof Tay named two benefits: One is that tapping green technology will build the tools to further enhance Singapore's landscape.
'This is a green infrastructure that adds to the value and appeal of the city and underscores property prices and
everyday activities like outdoor dining, whether at the hawker centre or stylish cafes,' he said.
The other benefit takes the form of economic trickle-down from there being more companies providing environmental services on a global scale, he said.
amreshg@sph.com.sg
--------------------------------------------------------------------------------
ADDING VALUE
'This is a green infrastructure that adds to the value and appeal of the city and underscores property prices and everyday activities like outdoor dining.'
Singapore Institute of International Affairs chairman Simon Tay, on the benefits of growing recognition of Singapore's expertise
ST : Expect quiet month for property sales
Aug 11, 2010
Expect quiet month for property sales
Ghost festival and lack of big launches spell lean month ahead, say experts
By Joyce Teo
SUPERSTITION is likely to get the better of some buyers during the rest of this month as the effects of the traditionally quiet Hungry Ghost Festival begin to be felt.
During the festival - which started yesterday and will last until Sept 7 - superstitious individuals shun major commitments such as buying a property or getting married. And experts predict that this year's festival looks set to spell a lull in sales amid a lack of new major launches.
This time last year, NTUC Choice Homes defied superstition with the successful launch of its 590-unit Trevista in Toa Payoh.
But it is unlikely there will be any similar major launches to buoy sales during this year's festival, experts said.
City Developments' 642-unit Pasir Ris project is planned for release in the current quarter, but no firm date has been given. No major launches were staged over the weekend.
Mr Peter Ow, managing director (residential services) at Knight Frank, said: 'This year's Hungry Ghost month will be quieter because whatever needs to be launched has already been pushed out.'
There were a few new launches in the run-up to the festival, with many units snapped up.
Yesterday, Far East Organization reported brisk pre-festival interest over the past week in The Greenwich in the Seletar Hills area.
Another 94 units of the 319-unit project were sold following the start of a private preview on Aug 2, when it moved 80 units. It has sold 174 homes in total, with the average price achieved rising to $1,025 per sq ft from $980 psf last Monday.
Nearly half of the units sold have been one-bedroom units of 603 sq ft to 721 sq ft, priced from $657,000 to $850,000.
Far East said it was on course to launch the project early next month.
At the 46-unit Suites@Topaz in Potong Pasir, there are just a few penthouses left after sales started around the middle of last week, said an industry source.
He said there may be some project launches of fewer than 200 units each this month, if developers are able to get all the necessary documents in place.
Meanwhile, the 172-unit Terrene sold its remaining unit last Saturday. And Hong Leong Holdings said it sold 35 units of its 468-unit The Scala over the long weekend, leaving fewer than 15 units left.
Mr Steven Tan, executive director of OrangeTee's residential division, thinks it is sentiment and a lack of major new launches, rather than superstition, that will underpin the predicted quiet August.
'Nowadays, people don't really care about the Hungry Ghost month. It's all about the sentiment, which is not very strong at the moment,' he said.
And experts report that sales have generally slowed because developers are holding their prices.
'If I am pricing a project to sell, I would push it out now. There will be interest. But if I want to hit benchmark pricing, I have to be careful with the timing of the launch,' said Knight Frank's Mr Ow.
He pointed out that developers had no need to rush given that they are depleting their land banks.
'With recent tender prices being so high, there is even more reason for them to hold back their launches to wait for firmer prices,' Mr Ow said.
joyceteo@sph.com.sg
Expect quiet month for property sales
Ghost festival and lack of big launches spell lean month ahead, say experts
By Joyce Teo
SUPERSTITION is likely to get the better of some buyers during the rest of this month as the effects of the traditionally quiet Hungry Ghost Festival begin to be felt.
During the festival - which started yesterday and will last until Sept 7 - superstitious individuals shun major commitments such as buying a property or getting married. And experts predict that this year's festival looks set to spell a lull in sales amid a lack of new major launches.
This time last year, NTUC Choice Homes defied superstition with the successful launch of its 590-unit Trevista in Toa Payoh.
But it is unlikely there will be any similar major launches to buoy sales during this year's festival, experts said.
City Developments' 642-unit Pasir Ris project is planned for release in the current quarter, but no firm date has been given. No major launches were staged over the weekend.
Mr Peter Ow, managing director (residential services) at Knight Frank, said: 'This year's Hungry Ghost month will be quieter because whatever needs to be launched has already been pushed out.'
There were a few new launches in the run-up to the festival, with many units snapped up.
Yesterday, Far East Organization reported brisk pre-festival interest over the past week in The Greenwich in the Seletar Hills area.
Another 94 units of the 319-unit project were sold following the start of a private preview on Aug 2, when it moved 80 units. It has sold 174 homes in total, with the average price achieved rising to $1,025 per sq ft from $980 psf last Monday.
Nearly half of the units sold have been one-bedroom units of 603 sq ft to 721 sq ft, priced from $657,000 to $850,000.
Far East said it was on course to launch the project early next month.
At the 46-unit Suites@Topaz in Potong Pasir, there are just a few penthouses left after sales started around the middle of last week, said an industry source.
He said there may be some project launches of fewer than 200 units each this month, if developers are able to get all the necessary documents in place.
Meanwhile, the 172-unit Terrene sold its remaining unit last Saturday. And Hong Leong Holdings said it sold 35 units of its 468-unit The Scala over the long weekend, leaving fewer than 15 units left.
Mr Steven Tan, executive director of OrangeTee's residential division, thinks it is sentiment and a lack of major new launches, rather than superstition, that will underpin the predicted quiet August.
'Nowadays, people don't really care about the Hungry Ghost month. It's all about the sentiment, which is not very strong at the moment,' he said.
And experts report that sales have generally slowed because developers are holding their prices.
'If I am pricing a project to sell, I would push it out now. There will be interest. But if I want to hit benchmark pricing, I have to be careful with the timing of the launch,' said Knight Frank's Mr Ow.
He pointed out that developers had no need to rush given that they are depleting their land banks.
'With recent tender prices being so high, there is even more reason for them to hold back their launches to wait for firmer prices,' Mr Ow said.
joyceteo@sph.com.sg
BT : Developers expect hike in M'sia housing prices in H2
Business Times - 11 Aug 2010
Developers expect hike in M'sia housing prices in H2
Rising raw material costs, inflationary pressure are among key reasons: Rehda
By PAULINE NG
IN KUALA LUMPUR
MALAYSIAN developers expect housing to cost up to 20 per cent more in the second half of this year, as raw material prices increase and supply tightens in popular areas.
The price of landed property in particular is expected to rise in two hot spots - the Klang Valley and Penang, where recent launches have drawn strong interest and set new price benchmarks.
Mid-year launches of terraced and semi-detached houses and bungalows have sparked huge turnouts.
For example, at the launch of the latest phase of Desa Parkcity - a new township development in the Klang Valley about 35 minutes from central Kuala Lumpur - all 147 units were snapped up in just five hours despite record prices of RM1.7 million (S$731,100) to RM2.1 million for two and three-storey link homes.
More than 650 registrants were reportedly present for the balloting exercise - each armed with a bank draft of RM50,000 to RM100,000.
Developers ramped up the supply of landed homes in the first half of the year. Launches of terraced houses were unchanged at about 35 per cent of all launches. But there was a 9 per cent jump in the number of semi-detached and bungalow launches compared with H2 last year, according to the Real Estate & Housing Developers Association (Rehda).
Even so, most homes are in the low to middle cost segment, with those priced between RM25,000 and RM250,000 accounting for 80 per cent of all units.
Rehda says homes will cost more for several reasons, including ample liquidity, reasonable mortgage rates, appreciating land prices, continuous population growth, urbanisation and demand for a better lifestyle.
However, it rates inflationary pressure, rising raw material costs and the removal of subsidies as major reasons for price increases.
About 40 per cent of Rehda members expect prices to rise as much as 10 per cent in the current half year - and a similar number project a 10-20 per cent rise.
As the population of the Klang Valley and Penang continues to grow - mainly because of inter-state migration - land is costing more. For example, Singapore's City Developments Ltd is reportedly looking to dispose of a parcel plot in Kuala Lumpur's golden triangle for RM3,000 per square foot, or 15 per cent more than the last transacted price in the area.
In comparison with Singapore and UK developers, Rehda says Malaysian developers make an average profit of only 15 per cent. It says land accounts for a mere 15 per cent of total costs in Malaysia, while construction costs make up a whopping 70 per cent.
Rehda pegs the average profit of Singapore developers at 20 per cent, with land and construction costs each accounting for 40 per cent of total costs.
Because the Malaysian authorities require local developers to meet various obligations - such as building a percentage of low-cost houses and providing sewerage and roads - overall construction costs are high.
On top of this, mandatory discounts of 5-15 per cent for bumiputra buyers further bump up costs.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Developers expect hike in M'sia housing prices in H2
Rising raw material costs, inflationary pressure are among key reasons: Rehda
By PAULINE NG
IN KUALA LUMPUR
MALAYSIAN developers expect housing to cost up to 20 per cent more in the second half of this year, as raw material prices increase and supply tightens in popular areas.
The price of landed property in particular is expected to rise in two hot spots - the Klang Valley and Penang, where recent launches have drawn strong interest and set new price benchmarks.
Mid-year launches of terraced and semi-detached houses and bungalows have sparked huge turnouts.
For example, at the launch of the latest phase of Desa Parkcity - a new township development in the Klang Valley about 35 minutes from central Kuala Lumpur - all 147 units were snapped up in just five hours despite record prices of RM1.7 million (S$731,100) to RM2.1 million for two and three-storey link homes.
More than 650 registrants were reportedly present for the balloting exercise - each armed with a bank draft of RM50,000 to RM100,000.
Developers ramped up the supply of landed homes in the first half of the year. Launches of terraced houses were unchanged at about 35 per cent of all launches. But there was a 9 per cent jump in the number of semi-detached and bungalow launches compared with H2 last year, according to the Real Estate & Housing Developers Association (Rehda).
Even so, most homes are in the low to middle cost segment, with those priced between RM25,000 and RM250,000 accounting for 80 per cent of all units.
Rehda says homes will cost more for several reasons, including ample liquidity, reasonable mortgage rates, appreciating land prices, continuous population growth, urbanisation and demand for a better lifestyle.
However, it rates inflationary pressure, rising raw material costs and the removal of subsidies as major reasons for price increases.
About 40 per cent of Rehda members expect prices to rise as much as 10 per cent in the current half year - and a similar number project a 10-20 per cent rise.
As the population of the Klang Valley and Penang continues to grow - mainly because of inter-state migration - land is costing more. For example, Singapore's City Developments Ltd is reportedly looking to dispose of a parcel plot in Kuala Lumpur's golden triangle for RM3,000 per square foot, or 15 per cent more than the last transacted price in the area.
In comparison with Singapore and UK developers, Rehda says Malaysian developers make an average profit of only 15 per cent. It says land accounts for a mere 15 per cent of total costs in Malaysia, while construction costs make up a whopping 70 per cent.
Rehda pegs the average profit of Singapore developers at 20 per cent, with land and construction costs each accounting for 40 per cent of total costs.
Because the Malaysian authorities require local developers to meet various obligations - such as building a percentage of low-cost houses and providing sewerage and roads - overall construction costs are high.
On top of this, mandatory discounts of 5-15 per cent for bumiputra buyers further bump up costs.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Paya Lebar, Hougang sites for en bloc sale
Business Times - 11 Aug 2010
Paya Lebar, Hougang sites for en bloc sale
Charlesville price tag $31m; Naung Court $28-30m
By EMILYN YAP
THE collective sale market continues to gain momentum, with two freehold residential sites at Paya Lebar and Hougang up for tender.
Huttons is handling the sale of Charlesville, a five-storey 18-unit development at Upper Paya Lebar Road. Sixteen of the 18 owners have agreed to the sale and the asking price is around $31 million.
The site is 34,160 sq ft and has a plot ratio of 1.4. Charlesville's existing gross floor area (GFA) is about 42,000 sq ft, but a developer can build a new project with a GFA of up to 52,600 sq ft, including an additional 10 per cent of space allowed for balconies.
A development charge of about $2.9 million will be payable. The tender for Charlesville closes on Aug 18.
Not too far away at Jalan Naung, the four-storey 20-unit Naung Court is also up for sale. Jones Lang LaSalle is handling the tender, and the indicative price is $28-30 million.
The 32,689 sq ft site has a gross plot ratio of 1.4 and can accommodate a five-storey project. The winning developer can build a project with a GFA of up to 45,764 sq ft, subject to payment of a development charge of around $2.7 million.
Naung Court is within walking distance of Hougang MRT station, Hougang bus interchange and Hougang Mall.
Jones Lang LaSalle national director and investments head Stella Hoh reckons the site will attract strong interest, pointing out that new residential launches in the vicinity have enjoyed good take-up rates.
For instance, in June, Kheng Leong sold 173 of 200 units launched at The Minton at Lorong Ah Soo. The median price was $871 per sq ft.
Ms Hoh said Naung Court site is a 'good bite size' for private investors, contractors and developers. The tender closes on Sept 14.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Paya Lebar, Hougang sites for en bloc sale
Charlesville price tag $31m; Naung Court $28-30m
By EMILYN YAP
THE collective sale market continues to gain momentum, with two freehold residential sites at Paya Lebar and Hougang up for tender.
Huttons is handling the sale of Charlesville, a five-storey 18-unit development at Upper Paya Lebar Road. Sixteen of the 18 owners have agreed to the sale and the asking price is around $31 million.
The site is 34,160 sq ft and has a plot ratio of 1.4. Charlesville's existing gross floor area (GFA) is about 42,000 sq ft, but a developer can build a new project with a GFA of up to 52,600 sq ft, including an additional 10 per cent of space allowed for balconies.
A development charge of about $2.9 million will be payable. The tender for Charlesville closes on Aug 18.
Not too far away at Jalan Naung, the four-storey 20-unit Naung Court is also up for sale. Jones Lang LaSalle is handling the tender, and the indicative price is $28-30 million.
The 32,689 sq ft site has a gross plot ratio of 1.4 and can accommodate a five-storey project. The winning developer can build a project with a GFA of up to 45,764 sq ft, subject to payment of a development charge of around $2.7 million.
Naung Court is within walking distance of Hougang MRT station, Hougang bus interchange and Hougang Mall.
Jones Lang LaSalle national director and investments head Stella Hoh reckons the site will attract strong interest, pointing out that new residential launches in the vicinity have enjoyed good take-up rates.
For instance, in June, Kheng Leong sold 173 of 200 units launched at The Minton at Lorong Ah Soo. The median price was $871 per sq ft.
Ms Hoh said Naung Court site is a 'good bite size' for private investors, contractors and developers. The tender closes on Sept 14.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Thursday, July 29, 2010
TODAY ONLINE : Four HDB flats confiscated
Four HDB flats confiscated
05:55 AM Jul 29, 2010
by Esther Ng
SINGAPORE - One homeowner had sublet her flat illegally to a religious group while she stayed with her family. Another had used his flat as collateral and allowed his moneylender to sublet the flat to repay his loan.
Both did not resume occupation in their flats even though they had been warned by the Housing and Development Board (HDB). Both were among four owners who had their flats confiscated between January and May - compared to four cases over the last two years - while six others had to pay a penalty of $4,200 to $14,400.
The latest figures are the first since the HDB set up a hotline in March for people to complain about homeowners illegally subletting their flats - and 740 people have called since.
However, the bulk of cases detected have come from stepped-up routine inspections - 1,860 to be exact.
In the first five months of the year, a record 2,600 checks were conducted - a four-fold increase from 690 inspections carried out from August to December last year.
Real estate agents told MediaCorp that unauthorised subletting is widespread.
"Some rent the whole unit, as they had taken out bank loans and their Central Provident Fund contribution is not enough to pay for their mortgage," said property agent Azhar Johar. Others stay with their parents or live in their private property to cash in on the red-hot rental market.
"Demand from foreigners and limited flat supply have pushed up HDB rentals even in Woodlands," said real estate agent Liz Choo. "A few years ago, you could get a four-room flat there for $1,300. Now, the minimum is $1,600."
There also have been cases of flat owners who try to circumvent HDB's rules by locking up one room and subletting the rest of the flat without physically staying in the flat.
Such cases will be treated as unauthorised subletting of flats if home owners did not meet the minimum occupation period and did not seek HDB's approval to sublet their flats, said HDB. They must also register their sub-tenants if they sublet rooms.
Members of the public are encouraged to call HDB's hotline on 1800-555-6370 to report any suspected cases of unauthorised subletting.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jul 29, 2010
by Esther Ng
SINGAPORE - One homeowner had sublet her flat illegally to a religious group while she stayed with her family. Another had used his flat as collateral and allowed his moneylender to sublet the flat to repay his loan.
Both did not resume occupation in their flats even though they had been warned by the Housing and Development Board (HDB). Both were among four owners who had their flats confiscated between January and May - compared to four cases over the last two years - while six others had to pay a penalty of $4,200 to $14,400.
The latest figures are the first since the HDB set up a hotline in March for people to complain about homeowners illegally subletting their flats - and 740 people have called since.
However, the bulk of cases detected have come from stepped-up routine inspections - 1,860 to be exact.
In the first five months of the year, a record 2,600 checks were conducted - a four-fold increase from 690 inspections carried out from August to December last year.
Real estate agents told MediaCorp that unauthorised subletting is widespread.
"Some rent the whole unit, as they had taken out bank loans and their Central Provident Fund contribution is not enough to pay for their mortgage," said property agent Azhar Johar. Others stay with their parents or live in their private property to cash in on the red-hot rental market.
"Demand from foreigners and limited flat supply have pushed up HDB rentals even in Woodlands," said real estate agent Liz Choo. "A few years ago, you could get a four-room flat there for $1,300. Now, the minimum is $1,600."
There also have been cases of flat owners who try to circumvent HDB's rules by locking up one room and subletting the rest of the flat without physically staying in the flat.
Such cases will be treated as unauthorised subletting of flats if home owners did not meet the minimum occupation period and did not seek HDB's approval to sublet their flats, said HDB. They must also register their sub-tenants if they sublet rooms.
Members of the public are encouraged to call HDB's hotline on 1800-555-6370 to report any suspected cases of unauthorised subletting.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST : Exodus of property agents expected
Jul 29, 2010
Exodus of property agents expected
New rules on education level likely to shrink pool, but lifeline exists
By Joyce Teo
THOUSANDS more property agents are set to bail out of the industry over the next 17 months due to tough new rules being introduced by the Government.
The regulations will impose a basic educational standard - a minimum four GCE O-level passes - on estate agents.
There are now no such requirements and no mandatory examination, so anyone can easily become a property agent.
While the new rules allow agents who do not meet the educational requirements to sit an industry exam to earn qualification, the immediate effect will be an exodus from the industry, say experts.
ERA Asia-Pacific associate director Eugene Lim estimates that the number of agents who do not have four O-level passes may comprise up to 30 per cent of the 30,000-strong pool of agents.
Experts forecast a drop of up to 25 per cent to 30 per cent in the number of agents by the end of next year.
About 15 per cent to 20 per cent will drop out by the end of this year, and possibly another 10 per cent by the end of 2011, although new ones may join, said Mr Lim.
But there is a lifeline for existing agents once the rules kick in later this year.
The Ministry of National Development (MND) recently told real estate agencies that agents who have done at least three property deals over the past two years will not need to have the minimum O-level passes.
But they will need to pass the new mandatory exam for agents within a year from January 2011.
This means that older, experienced full-time agents who do not have the four O-levels or the equivalent will have more time to pass the industry exam.
New agents who may have joined the industry earlier this year will also benefit as they will be able to complete three deals fairly quickly, said Dennis Wee Group director Chris Koh.
Under the new rules, agents need to have a minimum educational requirement and take an industry exam.
They will also have to register through their firms at a new statutory board called the Council for Estate Agencies.
But the expected clear-out should not affect the industry too much, given the big number of agents, including inactive ones.
'Nobody knows exactly how many agents are out there. Many agencies have not done any housekeeping at all. I won't be surprised if some names are repeated at different agencies,' said Mr Koh.
He recently let go of 1,500 inactive agents, leaving 3,500. That was after he tried to recall all agents to update their particulars to meet MND requests.
Mr Koh said the 1,500 agents had not done any deals in a year and had failed to update their particulars. Some quit as they are in the civil service and do not want their names in the public registry, as is required under the new rules.
'Every month, I bring in new agents and let go of some inactive agents. But previously, there was no urgency to terminate so many,' Mr Koh said.
At HSR Property Group, executive director (agency) Jeffrey Hong said the firm will do a 'screening exercise' in the next two weeks. It now has 7,000 agents and has not had a regular practice of terminating inactive ones.
There has been little change at the other two big agencies - ERA and PropNex - as they have been doing their housekeeping.
ERA's Mr Lim said: 'We do not need to chop just because of the new rules. On average, we let go of about 100 inactive agents every month. Our sales force is about 3,000-strong and it is active.'
PropNex chief executive Mohamed Ismail added: 'I let go of 2,800 agents two years ago and another 1,200 this January.
'All my agents are covered by professional indemnity insurance and are active. My next audit will be in October.'
joyceteo@sph.com.sg
Exodus of property agents expected
New rules on education level likely to shrink pool, but lifeline exists
By Joyce Teo
THOUSANDS more property agents are set to bail out of the industry over the next 17 months due to tough new rules being introduced by the Government.
The regulations will impose a basic educational standard - a minimum four GCE O-level passes - on estate agents.
There are now no such requirements and no mandatory examination, so anyone can easily become a property agent.
While the new rules allow agents who do not meet the educational requirements to sit an industry exam to earn qualification, the immediate effect will be an exodus from the industry, say experts.
ERA Asia-Pacific associate director Eugene Lim estimates that the number of agents who do not have four O-level passes may comprise up to 30 per cent of the 30,000-strong pool of agents.
Experts forecast a drop of up to 25 per cent to 30 per cent in the number of agents by the end of next year.
About 15 per cent to 20 per cent will drop out by the end of this year, and possibly another 10 per cent by the end of 2011, although new ones may join, said Mr Lim.
But there is a lifeline for existing agents once the rules kick in later this year.
The Ministry of National Development (MND) recently told real estate agencies that agents who have done at least three property deals over the past two years will not need to have the minimum O-level passes.
But they will need to pass the new mandatory exam for agents within a year from January 2011.
This means that older, experienced full-time agents who do not have the four O-levels or the equivalent will have more time to pass the industry exam.
New agents who may have joined the industry earlier this year will also benefit as they will be able to complete three deals fairly quickly, said Dennis Wee Group director Chris Koh.
Under the new rules, agents need to have a minimum educational requirement and take an industry exam.
They will also have to register through their firms at a new statutory board called the Council for Estate Agencies.
But the expected clear-out should not affect the industry too much, given the big number of agents, including inactive ones.
'Nobody knows exactly how many agents are out there. Many agencies have not done any housekeeping at all. I won't be surprised if some names are repeated at different agencies,' said Mr Koh.
He recently let go of 1,500 inactive agents, leaving 3,500. That was after he tried to recall all agents to update their particulars to meet MND requests.
Mr Koh said the 1,500 agents had not done any deals in a year and had failed to update their particulars. Some quit as they are in the civil service and do not want their names in the public registry, as is required under the new rules.
'Every month, I bring in new agents and let go of some inactive agents. But previously, there was no urgency to terminate so many,' Mr Koh said.
At HSR Property Group, executive director (agency) Jeffrey Hong said the firm will do a 'screening exercise' in the next two weeks. It now has 7,000 agents and has not had a regular practice of terminating inactive ones.
There has been little change at the other two big agencies - ERA and PropNex - as they have been doing their housekeeping.
ERA's Mr Lim said: 'We do not need to chop just because of the new rules. On average, we let go of about 100 inactive agents every month. Our sales force is about 3,000-strong and it is active.'
PropNex chief executive Mohamed Ismail added: 'I let go of 2,800 agents two years ago and another 1,200 this January.
'All my agents are covered by professional indemnity insurance and are active. My next audit will be in October.'
joyceteo@sph.com.sg
ST : Mass market condos still hot property
Jul 29, 2010
Mass market condos still hot property
200 units at The Scala in Serangoon snapped up at launch yesterday
By Esther Teo
HUNDREDS of eager buyers yesterday braved the early morning rain, making a beeline for the public launch of Hong Leong's The Scala, as keen interest in mass market condominiums shows no sign of abating.
Demand for the 300 or so remaining units of the 99-year leasehold project near Lorong Chuan MRT station was so strong that balloting was needed to sort out who got to enter the showflat first.
By late morning, more than 800 property agents and potential buyers who had submitted blank cheques had packed the balloting tent at the condo site in Serangoon Avenue 3. This is the biggest turnout at a mass market public launch since Trevista in Toa Payoh and Hundred Trees in the West Coast area were launched late last year.
A private preview was held on Tuesday for Hong Leong staff and buyers who had registered their interest with the developer. About 150 units were sold then.
Hong Leong said that as of yesterday, more than 75 per cent of the project's 468 units had been sold. That means more than 350 were sold, of which about 200 went yesterday.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the condo had set a benchmark price for new projects near MRT stations in the north-east.
'There is a demand for mass market homes among investors and they generally feel more comfortable buying projects near MRT stations,' he said.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'The market is still hungry, and the proximity of the project to the Circle Line has given (buyers) a reason to buy.' He said worries over the euro debt crisis had receded so buying sentiment had turned positive again.
Property experts say the strong demand for mass market homes is expected to continue, with prices set to rise about 7 per cent in the second half of this year.
The Government is rolling out a record number of residential sites in the second half of this year, and has assured buyers that there will be no shortage of homes.
Units at The Scala, in five residential towers, are between 474 and 2,142 sq ft each and range from one- to four-bedroom apartments. They were sold at an average of $1,150 per sq ft (psf).
In terms of total price, the smallest units were priced from $600,000 while the four-bedders were from $1.5 million.
Hong Leong said the buyers, mainly locals, comprised a good mix of HDB flat upgraders and investors.
Most buyers The Straits Times spoke to listed as key selling points the project's close proximity to newly opened Lorong Chuan MRT station and the range of amenities such as the NEX mega mall due to be completed next year.
Some buyers also cited nearby schools such as the Australian International School and the Stamford American International School. They said this could mean high rental yields.
Sales executive Tammy Lim, 30, bought a two-bedroom unit. She said the project is near her parents' home.
In addition, the project is close to schools that her three-year-old daughter could attend later, she said. 'Prices keep increasing. We decided to buy now rather than keep waiting.'
Nearby Chiltern Park condo, completed in 1995, saw an average selling price of $746 psf for five units sold last month, according to caveats lodged with the Urban Redevelopment Authority.
The Scala is expected to be completed in the first quarter of 2014.
esthert@sph.com.sg
So many people turned up for the public launch of The Scala, a new condominium near Lorong Chuan MRT station, that entry to the showflat had to be decided by balloting. The units were sold at an average of $1,150 psf. -- ST PHOTOS: LIM WUI LIANG
Mass market condos still hot property
200 units at The Scala in Serangoon snapped up at launch yesterday
By Esther Teo
HUNDREDS of eager buyers yesterday braved the early morning rain, making a beeline for the public launch of Hong Leong's The Scala, as keen interest in mass market condominiums shows no sign of abating.
Demand for the 300 or so remaining units of the 99-year leasehold project near Lorong Chuan MRT station was so strong that balloting was needed to sort out who got to enter the showflat first.
By late morning, more than 800 property agents and potential buyers who had submitted blank cheques had packed the balloting tent at the condo site in Serangoon Avenue 3. This is the biggest turnout at a mass market public launch since Trevista in Toa Payoh and Hundred Trees in the West Coast area were launched late last year.
A private preview was held on Tuesday for Hong Leong staff and buyers who had registered their interest with the developer. About 150 units were sold then.
Hong Leong said that as of yesterday, more than 75 per cent of the project's 468 units had been sold. That means more than 350 were sold, of which about 200 went yesterday.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the condo had set a benchmark price for new projects near MRT stations in the north-east.
'There is a demand for mass market homes among investors and they generally feel more comfortable buying projects near MRT stations,' he said.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'The market is still hungry, and the proximity of the project to the Circle Line has given (buyers) a reason to buy.' He said worries over the euro debt crisis had receded so buying sentiment had turned positive again.
Property experts say the strong demand for mass market homes is expected to continue, with prices set to rise about 7 per cent in the second half of this year.
The Government is rolling out a record number of residential sites in the second half of this year, and has assured buyers that there will be no shortage of homes.
Units at The Scala, in five residential towers, are between 474 and 2,142 sq ft each and range from one- to four-bedroom apartments. They were sold at an average of $1,150 per sq ft (psf).
In terms of total price, the smallest units were priced from $600,000 while the four-bedders were from $1.5 million.
Hong Leong said the buyers, mainly locals, comprised a good mix of HDB flat upgraders and investors.
Most buyers The Straits Times spoke to listed as key selling points the project's close proximity to newly opened Lorong Chuan MRT station and the range of amenities such as the NEX mega mall due to be completed next year.
Some buyers also cited nearby schools such as the Australian International School and the Stamford American International School. They said this could mean high rental yields.
Sales executive Tammy Lim, 30, bought a two-bedroom unit. She said the project is near her parents' home.
In addition, the project is close to schools that her three-year-old daughter could attend later, she said. 'Prices keep increasing. We decided to buy now rather than keep waiting.'
Nearby Chiltern Park condo, completed in 1995, saw an average selling price of $746 psf for five units sold last month, according to caveats lodged with the Urban Redevelopment Authority.
The Scala is expected to be completed in the first quarter of 2014.
esthert@sph.com.sg
So many people turned up for the public launch of The Scala, a new condominium near Lorong Chuan MRT station, that entry to the showflat had to be decided by balloting. The units were sold at an average of $1,150 psf. -- ST PHOTOS: LIM WUI LIANG
ST : Liat Towers may get 60cm wall
Jul 29, 2010
Liat Towers may get 60cm wall
By Jessica Lim
A KNEE-HIGH flood barrier is set to come up in front of Liat Towers, to protect the shops below street level which were flooded three times in the last two months.
The building's owner is waiting for the go-ahead to put up a roughly 40m-long barrier on the Orchard Road pedestrian mall, to stretch from Orange Julius food and drink outlet on the Paterson Road side of the building to Hermes boutique on the Angullia Park side.
One-quarter of the 60cm-high and 15cm-thick barrier will be made of concrete and immovable. The rest of it will be of aluminium or glass, and would be put up only during heavy rainfall.
Supervisors at Goldvein, which owns the building, met architects and engineers a fortnight ago to come up with the plan. The price has yet to be decided.
Mr Chik Hai Lam, a Goldvein supervisor, said a proposal would be submitted to the Urban Redevelopment Authority (URA) this week. He said: 'We have to reassure tenants that we are doing something, it is our responsibility.'
Experts told The Straits Times that the cost could range from $40,000 to $200,000, depending on the design and materials used. 'These things can be expensive, but effective,' said Mr Eugene Seah, owner of cost management company Davis Langdon and Seah, which helped build flood stop-gaps for Wisma Atria and Ion Orchard malls.
In an unseasonably rainy year, floods occurred on June 16 and 25 and July 17.
Liat Towers was particularly badly affected in the June 16 flood. Water spilt into the lower level and submerged shops up to waist-high.
URA confirmed it would 'work closely with the management of Liat Towers on any proposed works to address the flooding issues and expedite the necessary approvals'. The government agency will also work with them to ensure that the proposed works are well integrated with the building and with Orchard Road.
Liat Towers' tenants welcomed the move. Said Ms Goh Wee Ling, spokesman for US fast-food chain Wendy's, which has been closed for the past six weeks: 'Such preventive measures will give us peace of mind.' She added that the chain has lost more than half a million dollars because of the floods.
Such barriers could prevent floods like those experienced recently, said Professor Chiew Yee Meng, head of Nanyang Technological University's Division of Environmental and Water Resources Engineering.
Liat Towers may get 60cm wall
By Jessica Lim
A KNEE-HIGH flood barrier is set to come up in front of Liat Towers, to protect the shops below street level which were flooded three times in the last two months.
The building's owner is waiting for the go-ahead to put up a roughly 40m-long barrier on the Orchard Road pedestrian mall, to stretch from Orange Julius food and drink outlet on the Paterson Road side of the building to Hermes boutique on the Angullia Park side.
One-quarter of the 60cm-high and 15cm-thick barrier will be made of concrete and immovable. The rest of it will be of aluminium or glass, and would be put up only during heavy rainfall.
Supervisors at Goldvein, which owns the building, met architects and engineers a fortnight ago to come up with the plan. The price has yet to be decided.
Mr Chik Hai Lam, a Goldvein supervisor, said a proposal would be submitted to the Urban Redevelopment Authority (URA) this week. He said: 'We have to reassure tenants that we are doing something, it is our responsibility.'
Experts told The Straits Times that the cost could range from $40,000 to $200,000, depending on the design and materials used. 'These things can be expensive, but effective,' said Mr Eugene Seah, owner of cost management company Davis Langdon and Seah, which helped build flood stop-gaps for Wisma Atria and Ion Orchard malls.
In an unseasonably rainy year, floods occurred on June 16 and 25 and July 17.
Liat Towers was particularly badly affected in the June 16 flood. Water spilt into the lower level and submerged shops up to waist-high.
URA confirmed it would 'work closely with the management of Liat Towers on any proposed works to address the flooding issues and expedite the necessary approvals'. The government agency will also work with them to ensure that the proposed works are well integrated with the building and with Orchard Road.
Liat Towers' tenants welcomed the move. Said Ms Goh Wee Ling, spokesman for US fast-food chain Wendy's, which has been closed for the past six weeks: 'Such preventive measures will give us peace of mind.' She added that the chain has lost more than half a million dollars because of the floods.
Such barriers could prevent floods like those experienced recently, said Professor Chiew Yee Meng, head of Nanyang Technological University's Division of Environmental and Water Resources Engineering.
ST : Mega space headache for megachurches
Jul 29, 2010
Mega space headache for megachurches
The big churches' need for more space might exceed available supply
By Lee Siew Hua
THE Government has taken the guesswork out of religious groups' decisions on how much commercial space they should use for their activities.
Churches have for years rented commercial premises, from cinemas to convention halls, for their Sunday services. Some did so even while wondering if they would one day be served notice that they would have to stop.
The state of uncertainty ended last week when the Urban Redevelopment Authority's (URA) guidelines on the issue were made public for the first time. No more than 20,000 sq m or 20 per cent - whichever is lower - of any commercial complex's gross floor area may be used for religious reasons. And each religious organisation can take up only a maximum 10,000 sq m in a commercial place.
Making the guidelines public was a wise and necessary move, followingthe controversial moves by large space-hungry churches into commercial quarters.
The URA has made it clear its guidelines apply to all religious groups and do not target any specific community.
In coming up with the guidelines, the Government has to balance the need to allow room for religion while protecting the secular character of commercial places like Suntec City, where City Harvest Church plans to relocate to next year.
The church has bought into the complex, becoming a new minority shareholder. Even so, the URA guidelines will apply in this case too, and City Harvest will not be able to use more than 10,000 sq m of space in Suntec City.
But while the guidelines spell out the limits clearly, they may in fact be a short-term fix. This is because some megachurches are already using all the space they are allowed under the guidelines.
City Harvest and Faith Community Baptist Church, for example, are each leasing halls of about 10,000 sq m at the Singapore Expo.
Given that the 33,000-strong City Harvest has grown at an average 15 per cent a year in the last decade, it is reasonable to expect that it will soon be bursting at the seams at its Expo location, even if the current probe into its leaders for alleged misuse of funds slows expansion.
City Harvest, Singapore's biggest Protestant church, is now studying implications of the URA guidelines with Suntec Singapore. It is always possible that its architectural plans for an auditorium there may be redrawn to stay safely within the rules.
Another megachurch, the 20,000-strong New Creation, faces a similar space crunch in the near future. It has grown 12 per cent annually in the last five years. It, too, has to be sure that its footprint does not exceed 10,000 sq m when it sets up an auditorium at the one-north lifestyle hub being developed by its business arm Rock Productions with property giant CapitaLand. The church plans to move in 2012.
Every smidgen of its space there will be stretched to house Sunday school classes for some 2,000 children, hospitality rooms, ministry zones, aisles and other church needs. Will 10,000 sq m be enough?
Another guideline stipulates that religious activities may be held for no more than two days a week in any commercial setting. This affects some churches that conduct house prayer meetings, Bible classes, leadership training, worship practices and assorted activities on weekdays.
Some activities may have to be scaled back, or squeezed into the weekend. Ironically, this in a way raises the church's visibility on weekends, if those in a crowd can be identified as churchgoers. If so, this might alter the secular, commercial character of the venue more than if gatherings were dispersed over shorter bursts during the week.
In the long term, churches' use of commercial space is really a second-best option. Many churches prefer a permanent site on a purchased plot.
But in the last five years, fewer plots have been released for church purposes. They have also shrunk in size, from 4,617 sq m in 1995 to under 3,000 sq m now. A building on a land plot this size can house an auditorium for 1,000 - too small for megachurches used to holding services for five times that size.
The scarcity has also prompted a bidding war, putting land beyond the reach of some churches.
The short lease for land devoted to religious purposes was trimmed from 60 to 30 years around 1990. This can reduce the incentive to spend on developing a building.
The first of the 30-year church leases are due to expire around 2020. Ten years is not a long time to start to plan a major move for possibly thousands of members. The URA should start talks with tenants on conditions for lease renewal so that churches can plan ahead.
In general, more open dialogue between the Government and religious groups can help the latter find alternative venues to house their flocks.
One suggestion is for different-sized plots to be released so groups of varying sizes can vie for land on a more equal footing.
Another idea is to have one big tract of land set aside to develop, say, several high-rise churches, big and small. Sharing premises would lower the development cost and make the land price more affordable.
Apart from tinkering with land leases, the two sides can jointly explore the use of existing premises. Mission schools already open their auditoriums for church activities. Government schools can think about doing the same for a rental fee - with the proviso that no religious paraphernalia be set up. Groups can also hook up with the 1,000 private schools, some with auditoriums and rooms suitable for Sunday activities.
With religiosity rising in Singapore, the number of people who attend religious activities will only go up.
The URA guidelines capping the use of commercial premises by religious groups are a good solution for now. But they will probably need to be revised in a few years if current trends persist.
The URA has shown its ability to balance competing uses for scarce land. Similarly, it will need to recalibrate policy over time for religious groups seeking a home.
siewhua@sph.com.sg
Mega space headache for megachurches
The big churches' need for more space might exceed available supply
By Lee Siew Hua
THE Government has taken the guesswork out of religious groups' decisions on how much commercial space they should use for their activities.
Churches have for years rented commercial premises, from cinemas to convention halls, for their Sunday services. Some did so even while wondering if they would one day be served notice that they would have to stop.
The state of uncertainty ended last week when the Urban Redevelopment Authority's (URA) guidelines on the issue were made public for the first time. No more than 20,000 sq m or 20 per cent - whichever is lower - of any commercial complex's gross floor area may be used for religious reasons. And each religious organisation can take up only a maximum 10,000 sq m in a commercial place.
Making the guidelines public was a wise and necessary move, followingthe controversial moves by large space-hungry churches into commercial quarters.
The URA has made it clear its guidelines apply to all religious groups and do not target any specific community.
In coming up with the guidelines, the Government has to balance the need to allow room for religion while protecting the secular character of commercial places like Suntec City, where City Harvest Church plans to relocate to next year.
The church has bought into the complex, becoming a new minority shareholder. Even so, the URA guidelines will apply in this case too, and City Harvest will not be able to use more than 10,000 sq m of space in Suntec City.
But while the guidelines spell out the limits clearly, they may in fact be a short-term fix. This is because some megachurches are already using all the space they are allowed under the guidelines.
City Harvest and Faith Community Baptist Church, for example, are each leasing halls of about 10,000 sq m at the Singapore Expo.
Given that the 33,000-strong City Harvest has grown at an average 15 per cent a year in the last decade, it is reasonable to expect that it will soon be bursting at the seams at its Expo location, even if the current probe into its leaders for alleged misuse of funds slows expansion.
City Harvest, Singapore's biggest Protestant church, is now studying implications of the URA guidelines with Suntec Singapore. It is always possible that its architectural plans for an auditorium there may be redrawn to stay safely within the rules.
Another megachurch, the 20,000-strong New Creation, faces a similar space crunch in the near future. It has grown 12 per cent annually in the last five years. It, too, has to be sure that its footprint does not exceed 10,000 sq m when it sets up an auditorium at the one-north lifestyle hub being developed by its business arm Rock Productions with property giant CapitaLand. The church plans to move in 2012.
Every smidgen of its space there will be stretched to house Sunday school classes for some 2,000 children, hospitality rooms, ministry zones, aisles and other church needs. Will 10,000 sq m be enough?
Another guideline stipulates that religious activities may be held for no more than two days a week in any commercial setting. This affects some churches that conduct house prayer meetings, Bible classes, leadership training, worship practices and assorted activities on weekdays.
Some activities may have to be scaled back, or squeezed into the weekend. Ironically, this in a way raises the church's visibility on weekends, if those in a crowd can be identified as churchgoers. If so, this might alter the secular, commercial character of the venue more than if gatherings were dispersed over shorter bursts during the week.
In the long term, churches' use of commercial space is really a second-best option. Many churches prefer a permanent site on a purchased plot.
But in the last five years, fewer plots have been released for church purposes. They have also shrunk in size, from 4,617 sq m in 1995 to under 3,000 sq m now. A building on a land plot this size can house an auditorium for 1,000 - too small for megachurches used to holding services for five times that size.
The scarcity has also prompted a bidding war, putting land beyond the reach of some churches.
The short lease for land devoted to religious purposes was trimmed from 60 to 30 years around 1990. This can reduce the incentive to spend on developing a building.
The first of the 30-year church leases are due to expire around 2020. Ten years is not a long time to start to plan a major move for possibly thousands of members. The URA should start talks with tenants on conditions for lease renewal so that churches can plan ahead.
In general, more open dialogue between the Government and religious groups can help the latter find alternative venues to house their flocks.
One suggestion is for different-sized plots to be released so groups of varying sizes can vie for land on a more equal footing.
Another idea is to have one big tract of land set aside to develop, say, several high-rise churches, big and small. Sharing premises would lower the development cost and make the land price more affordable.
Apart from tinkering with land leases, the two sides can jointly explore the use of existing premises. Mission schools already open their auditoriums for church activities. Government schools can think about doing the same for a rental fee - with the proviso that no religious paraphernalia be set up. Groups can also hook up with the 1,000 private schools, some with auditoriums and rooms suitable for Sunday activities.
With religiosity rising in Singapore, the number of people who attend religious activities will only go up.
The URA guidelines capping the use of commercial premises by religious groups are a good solution for now. But they will probably need to be revised in a few years if current trends persist.
The URA has shown its ability to balance competing uses for scarce land. Similarly, it will need to recalibrate policy over time for religious groups seeking a home.
siewhua@sph.com.sg
ST : Grand Park Orchard is ready
Jul 29, 2010
Grand Park Orchard is ready
Revamp adds 308 rooms to industry's 45,000 as usual busy period nears
By Jessica Lim
SINGAPORE'S newest five-star hotel will open its doors on Aug 8 - just in time for a bumper travel period which includes the inaugural Youth Olympic Games (YOG) and the SingTel Singapore Grand Prix (SGP).
The completion of the former Park Hotel Orchard's $80 million makeover coincides with the traditionally busy period for the hotel industry.
Renamed Grand Park Orchard, the hotel at 270 Orchard Road will add 308 rooms to the 45,000 available, including the 4,300 at the two integrated resorts.
The supply may even fall short during holiday seasons or mega events like next month's YOG and September's SGP, said analysts.
Many more tourists are expected, especially as the IRs swing into full gear, said National Association of Travel Agents Singapore chief executive Robert Khoo.
'Right now, the occupancy is already so high. There may not be enough rooms with the back-to-back events coming up,' he said, adding that an event like the SGP can attract 50,000 more tourists.
Ngee Ann Polytechnic tourism lecturer Michael Chiam also predicts that there will be a 'crunch in the supply of hotel rooms' if tourist numbers continue rising.
Hotel occupancy rates have been hovering close to 90 per cent since March. The strong numbers are on the back of seven consecutive record-breaking months of tourist arrivals, putting the country on target for the Singapore Tourism Board's goal of 11.5 million to 12.5 million visitors for the year.
Grand Park Orchard's opening is timely, said its general manager, Mr Darren Ware, adding that it was 'very important to open before the F1 season'. 'If you follow the trend, hotels in Orchard Road were full during that time in past years,' he said.
While the hotel is primed to receive its first visitors, with invited guests already there, the road to a full makeover was not without bumps. It was originally due to open in May but the management felt that improvements needed to be made to the rooms.
The other portion of the development, the 83,000 sq ft luxury four-storey retail podium Knightsbridge, will open progressively from the third week of August, starting with yoga studio Pure Yoga, said Mr Ware.
Confirmed tenants include The Hour Glass and CIMB Bank.limjess@sph.com.sg
Grand Park Orchard is ready
Revamp adds 308 rooms to industry's 45,000 as usual busy period nears
By Jessica Lim
SINGAPORE'S newest five-star hotel will open its doors on Aug 8 - just in time for a bumper travel period which includes the inaugural Youth Olympic Games (YOG) and the SingTel Singapore Grand Prix (SGP).
The completion of the former Park Hotel Orchard's $80 million makeover coincides with the traditionally busy period for the hotel industry.
Renamed Grand Park Orchard, the hotel at 270 Orchard Road will add 308 rooms to the 45,000 available, including the 4,300 at the two integrated resorts.
The supply may even fall short during holiday seasons or mega events like next month's YOG and September's SGP, said analysts.
Many more tourists are expected, especially as the IRs swing into full gear, said National Association of Travel Agents Singapore chief executive Robert Khoo.
'Right now, the occupancy is already so high. There may not be enough rooms with the back-to-back events coming up,' he said, adding that an event like the SGP can attract 50,000 more tourists.
Ngee Ann Polytechnic tourism lecturer Michael Chiam also predicts that there will be a 'crunch in the supply of hotel rooms' if tourist numbers continue rising.
Hotel occupancy rates have been hovering close to 90 per cent since March. The strong numbers are on the back of seven consecutive record-breaking months of tourist arrivals, putting the country on target for the Singapore Tourism Board's goal of 11.5 million to 12.5 million visitors for the year.
Grand Park Orchard's opening is timely, said its general manager, Mr Darren Ware, adding that it was 'very important to open before the F1 season'. 'If you follow the trend, hotels in Orchard Road were full during that time in past years,' he said.
While the hotel is primed to receive its first visitors, with invited guests already there, the road to a full makeover was not without bumps. It was originally due to open in May but the management felt that improvements needed to be made to the rooms.
The other portion of the development, the 83,000 sq ft luxury four-storey retail podium Knightsbridge, will open progressively from the third week of August, starting with yoga studio Pure Yoga, said Mr Ware.
Confirmed tenants include The Hour Glass and CIMB Bank.limjess@sph.com.sg
ST : Sale of house: Lawyers win appeal against PI
Jul 29, 2010
Sale of house: Lawyers win appeal against PI
Private eye had sued them over commission paid to property agency
By Selina Lum
A PRIVATE eye who initially won his case against four lawyers in the Subordinate Courts now has to return the $52,000 that had been paid to him, after the High Court overturned the lower court's decision.
The amount included the $24,000 legal costs he was awarded after he sued
Ms Amarjit Kour, Mr Gregory Tang, Ms Belinda Ang and Mr Peter Low.
Mr Simon Suppiah Sunmugam, 62, had sued them for wrongly paying out $28,000 as commission to property agency ERA from the sale of his matrimonial home in 2002.
In April, a district court said the money should not have been paid out as the agreement between Mr Suppiah's former wife and ERA was invalid.
But on Tuesday, High Court judge Kan Ting Chiu allowed an appeal by the four lawyers, represented by Senior Counsel Molly Lim, holding that they had not breached their duties. Mr Suppiah was also ordered to pay another $20,000 in costs.
The suit arose out of his divorce from Madam Nee Shyan Huey, 44, and the sale of their house in Punggol. Madam Nee signed an agreement with ERA to sell the house. The agency found a buyer who offered $1.6 million but Mr Suppiah rejected it and later, found someone who was willing to pay $1.75 million.
In 2002, he realised that $28,000 had been deducted from the sale proceeds for ERA's commission.
Six years later, he sued the four lawyers from the firm that acted for his wife, and his own divorce lawyer, Mr Andrew Hanam, alleging that they had been negligent in releasing the commission. Mr Hanam was cleared of any fault.
At the appeal, Justice Kan noted that Madam Nee, who has permission by the court to solely handle the sale, had to pay the commission and did not have to get Mr Suppiah's consent. The judge questioned how the lawyers, carrying out her instructions, could be held liable when, in a separate hearing, the High Court had ruled that Madam Nee need not refund Mr Suppiah.
Yesterday, Ms Ang told The Straits Times that the lawyers fought the case on principle, and had spent nearly four times the claim amount on legal fees. 'Even though we are covered by insurance, we had to clear our names,' she said.
selinal@sph.com.sg
Sale of house: Lawyers win appeal against PI
Private eye had sued them over commission paid to property agency
By Selina Lum
A PRIVATE eye who initially won his case against four lawyers in the Subordinate Courts now has to return the $52,000 that had been paid to him, after the High Court overturned the lower court's decision.
The amount included the $24,000 legal costs he was awarded after he sued
Ms Amarjit Kour, Mr Gregory Tang, Ms Belinda Ang and Mr Peter Low.
Mr Simon Suppiah Sunmugam, 62, had sued them for wrongly paying out $28,000 as commission to property agency ERA from the sale of his matrimonial home in 2002.
In April, a district court said the money should not have been paid out as the agreement between Mr Suppiah's former wife and ERA was invalid.
But on Tuesday, High Court judge Kan Ting Chiu allowed an appeal by the four lawyers, represented by Senior Counsel Molly Lim, holding that they had not breached their duties. Mr Suppiah was also ordered to pay another $20,000 in costs.
The suit arose out of his divorce from Madam Nee Shyan Huey, 44, and the sale of their house in Punggol. Madam Nee signed an agreement with ERA to sell the house. The agency found a buyer who offered $1.6 million but Mr Suppiah rejected it and later, found someone who was willing to pay $1.75 million.
In 2002, he realised that $28,000 had been deducted from the sale proceeds for ERA's commission.
Six years later, he sued the four lawyers from the firm that acted for his wife, and his own divorce lawyer, Mr Andrew Hanam, alleging that they had been negligent in releasing the commission. Mr Hanam was cleared of any fault.
At the appeal, Justice Kan noted that Madam Nee, who has permission by the court to solely handle the sale, had to pay the commission and did not have to get Mr Suppiah's consent. The judge questioned how the lawyers, carrying out her instructions, could be held liable when, in a separate hearing, the High Court had ruled that Madam Nee need not refund Mr Suppiah.
Yesterday, Ms Ang told The Straits Times that the lawyers fought the case on principle, and had spent nearly four times the claim amount on legal fees. 'Even though we are covered by insurance, we had to clear our names,' she said.
selinal@sph.com.sg
ST : Why flats were taken back
Jul 29, 2010
Why flats were taken back
IN AN unprecedented crackdown on illegal subletting, the Housing Board (HDB) has taken action against four flat owners and compulsorily acquired their flats.
These owners did not live in the flats they purchased and sublet their homes without meeting the minimum period of occupation - five years for subsidised flats and three years for non-subsidised flats - or obtaining the HDB's approval.
· Locked out, then found out
The owner sought the HDB's help in getting into his flat after he was locked out of it.
That was when he was found out. He had allowed his three-room flat in the western part of Singapore to be used as collateral for a loan. His moneylender had sublet the flat as repayment.
After he got back into his flat, the HDB reminded him repeatedly that he had to resume occupation of it and evict the tenants.
But he did neither, even after he was given a grace period.
The HDB thus took over the flat.
· Let out too soon
She let out her flat without the HDB's approval only a year after she had bought the property. The HDB requires home owners to live in their flats for a minimum period before they can let them out.
Though she did as told by the HDB and evicted her tenants, she failed to move back in, and left the flat empty.
The HDB then took over the flat.
· Didn't live in matrimonial home
She bought the flat with her former husband, a foreigner, while they were married.
But she never moved in. Instead, she lived abroad and sublet the flat without meeting the minimum occupation period or getting approval from the HDB.
When their marriage broke down, her ex-husband wrote to the HDB to say that the flat was never intended as their matrimonial home and he had, in fact, never even seen it.
Even after she returned to Singapore, she chose to live with her family and not in her own property.
The HDB proceeded to acquire the flat.
· Sublet to religious group
The flat owner lived in another home with her family while she sublet her unit to a religious group.
The flat was compulsorily acquired on the grounds that it was let out without the HDB's approval and that the owner did not resume occupation.
Why flats were taken back
IN AN unprecedented crackdown on illegal subletting, the Housing Board (HDB) has taken action against four flat owners and compulsorily acquired their flats.
These owners did not live in the flats they purchased and sublet their homes without meeting the minimum period of occupation - five years for subsidised flats and three years for non-subsidised flats - or obtaining the HDB's approval.
· Locked out, then found out
The owner sought the HDB's help in getting into his flat after he was locked out of it.
That was when he was found out. He had allowed his three-room flat in the western part of Singapore to be used as collateral for a loan. His moneylender had sublet the flat as repayment.
After he got back into his flat, the HDB reminded him repeatedly that he had to resume occupation of it and evict the tenants.
But he did neither, even after he was given a grace period.
The HDB thus took over the flat.
· Let out too soon
She let out her flat without the HDB's approval only a year after she had bought the property. The HDB requires home owners to live in their flats for a minimum period before they can let them out.
Though she did as told by the HDB and evicted her tenants, she failed to move back in, and left the flat empty.
The HDB then took over the flat.
· Didn't live in matrimonial home
She bought the flat with her former husband, a foreigner, while they were married.
But she never moved in. Instead, she lived abroad and sublet the flat without meeting the minimum occupation period or getting approval from the HDB.
When their marriage broke down, her ex-husband wrote to the HDB to say that the flat was never intended as their matrimonial home and he had, in fact, never even seen it.
Even after she returned to Singapore, she chose to live with her family and not in her own property.
The HDB proceeded to acquire the flat.
· Sublet to religious group
The flat owner lived in another home with her family while she sublet her unit to a religious group.
The flat was compulsorily acquired on the grounds that it was let out without the HDB's approval and that the owner did not resume occupation.
ST : HDB seizes flats of four home owners
Jul 29, 2010
HDB seizes flats of four home owners
Six other flat owners fined, in clampdown on illegal subletting
By Leow Si Wan , Teh Joo Lin
FOUR Housing Board home owners lost their flats in the first five months of this year, after the HDB launched an unprecedented crackdown on those who let out their flats illegally.
Six others have been fined amounts that ranged from $4,200 to $14,400.
Making good its earlier pledge to clamp down on illegal subletting, HDB inspectors checked 2,600 homes from January to May, four times more than in the preceding five months last year.
Some 2,300 flat owners are in the clear, but of the 300 still being investigated, 59 cases have been classified as suspicious.
The crackdown comes after measures announced in March to ensure that heavily subsidised HDB flats are used as homes, and not as money-making tools.
For example, the minimum occupation period for resale flat buyers before they can sell the flat was lengthened to three years, up from as short as one year, to cool speculative demand for HDB flats.
The Government had said that illegal subletting was not rampant, but it also gave the assurance that it would step up enforcement against owners who flouted the rules to milk rental income.
The HDB confirmed that this is the biggest number of flats checked and compulsorily acquired over a five-month time frame.
In the preceding two years, the HDB repossessed four flats out of 56 illegal subletting cases. The other 52 were fined amounts ranging from $1,000 to $21,000.
'HDB flats are primarily meant for owner occupation. Subletting of HDB flats without HDB's approval is an infringement of the lease conditions,' its spokesman said yesterday.
As of the end of last month, 30,500 HDB flat owners, or 3.6 per cent, out of a total of 841,000 flat owners have obtained approval to sublet their flats.
In the latest blitz, the spokesman said that in all 10 cases, the flat owners were not living in their homes and had sublet the whole flat without HDB approval.
She said a fine would generally be imposed on first-time offenders, unless their actions were particularly blatant, such as repeatedly ignoring HDB reminders to evict tenants.
Then, under the HDB Act, it would resort to compulsory acquisition, returning the owner only the value at which he had bought the flat.
A penalty would also be deducted from that amount.
The HDB cited one case in which a woman bought a flat with her then-husband but stayed overseas all the while.
When the marriage broke up, the ex-husband confirmed that they had no intention of living in the flat, which had been sublet before the expiry of the minimum occupation period.
One owner even allowed his moneylender to let out his flat to collect rent that constituted his debt repayment.
The HDB also found cases where flat owners skirted subletting rules by locking up one room and renting out the rest of the flat.
The rules mandate that owners can sublet their whole flats only after they fulfil the minimum occupation periods of five years for subsidised flats and three years for non-subsidised flats.
Approval must be obtained from the HDB, with caps on the number of sub-tenants allowed, based on flat size.
Former chairman of the Government Parliamentary Committee for National Development Charles Chong said the crackdown will 'send out a very strong message that the flats are not for people to make money, but for accommodation'.
There had been public concern that illegal subletting was indirectly linked to rising resale prices.
However, property analysts interviewed said that stricter enforcement is unlikely to have a significant impact on the market.
Said group managing director Danny Yeo of Knight Frank real estate consultancy: 'There are many illegal subletters, but compared to the total number of flats available, the numbers are small.'
Mr Gerard Thomas, marketing director of SHL Realty, said: 'There are also external factors to consider, for example, what the economy is like, whether there are any disasters.'
Mr Thomas added that the stricter enforcement would reduce the incentive for people to sublet illegally because the 'price is too high to pay'.
About three in every 10 cases in the crackdown came from public tip-offs.
While flat owners who rent out rooms do not need HDB approval, they must register the subletting details within a week, on pain of a fine of up to $3,000.
This move helps track tenants who use the flat addresses to borrow from loan sharks.
A six-month grace period for those who had sublet their flats before the start of February expires at the end of this month.
Those who want to report on illegal subletting can call the HDB on 1800-555-6370.
HDB seizes flats of four home owners
Six other flat owners fined, in clampdown on illegal subletting
By Leow Si Wan , Teh Joo Lin
FOUR Housing Board home owners lost their flats in the first five months of this year, after the HDB launched an unprecedented crackdown on those who let out their flats illegally.
Six others have been fined amounts that ranged from $4,200 to $14,400.
Making good its earlier pledge to clamp down on illegal subletting, HDB inspectors checked 2,600 homes from January to May, four times more than in the preceding five months last year.
Some 2,300 flat owners are in the clear, but of the 300 still being investigated, 59 cases have been classified as suspicious.
The crackdown comes after measures announced in March to ensure that heavily subsidised HDB flats are used as homes, and not as money-making tools.
For example, the minimum occupation period for resale flat buyers before they can sell the flat was lengthened to three years, up from as short as one year, to cool speculative demand for HDB flats.
The Government had said that illegal subletting was not rampant, but it also gave the assurance that it would step up enforcement against owners who flouted the rules to milk rental income.
The HDB confirmed that this is the biggest number of flats checked and compulsorily acquired over a five-month time frame.
In the preceding two years, the HDB repossessed four flats out of 56 illegal subletting cases. The other 52 were fined amounts ranging from $1,000 to $21,000.
'HDB flats are primarily meant for owner occupation. Subletting of HDB flats without HDB's approval is an infringement of the lease conditions,' its spokesman said yesterday.
As of the end of last month, 30,500 HDB flat owners, or 3.6 per cent, out of a total of 841,000 flat owners have obtained approval to sublet their flats.
In the latest blitz, the spokesman said that in all 10 cases, the flat owners were not living in their homes and had sublet the whole flat without HDB approval.
She said a fine would generally be imposed on first-time offenders, unless their actions were particularly blatant, such as repeatedly ignoring HDB reminders to evict tenants.
Then, under the HDB Act, it would resort to compulsory acquisition, returning the owner only the value at which he had bought the flat.
A penalty would also be deducted from that amount.
The HDB cited one case in which a woman bought a flat with her then-husband but stayed overseas all the while.
When the marriage broke up, the ex-husband confirmed that they had no intention of living in the flat, which had been sublet before the expiry of the minimum occupation period.
One owner even allowed his moneylender to let out his flat to collect rent that constituted his debt repayment.
The HDB also found cases where flat owners skirted subletting rules by locking up one room and renting out the rest of the flat.
The rules mandate that owners can sublet their whole flats only after they fulfil the minimum occupation periods of five years for subsidised flats and three years for non-subsidised flats.
Approval must be obtained from the HDB, with caps on the number of sub-tenants allowed, based on flat size.
Former chairman of the Government Parliamentary Committee for National Development Charles Chong said the crackdown will 'send out a very strong message that the flats are not for people to make money, but for accommodation'.
There had been public concern that illegal subletting was indirectly linked to rising resale prices.
However, property analysts interviewed said that stricter enforcement is unlikely to have a significant impact on the market.
Said group managing director Danny Yeo of Knight Frank real estate consultancy: 'There are many illegal subletters, but compared to the total number of flats available, the numbers are small.'
Mr Gerard Thomas, marketing director of SHL Realty, said: 'There are also external factors to consider, for example, what the economy is like, whether there are any disasters.'
Mr Thomas added that the stricter enforcement would reduce the incentive for people to sublet illegally because the 'price is too high to pay'.
About three in every 10 cases in the crackdown came from public tip-offs.
While flat owners who rent out rooms do not need HDB approval, they must register the subletting details within a week, on pain of a fine of up to $3,000.
This move helps track tenants who use the flat addresses to borrow from loan sharks.
A six-month grace period for those who had sublet their flats before the start of February expires at the end of this month.
Those who want to report on illegal subletting can call the HDB on 1800-555-6370.
BT : Iskandar shows more promise
Business Times - 29 Jul 2010
Iskandar shows more promise
WHEN the two Prime Ministers of Singapore and Malaysia announced recently, and rather unexpectedly, a resolution to the long-standing issue of Malaysian railway land, there was a quiet sense of relief on both sides. But for none more so than among the backers of Iskandar Malaysia, an ambitious concept mooted in 2006 by the Malaysian government with the vision of transforming greenfield clusters in Johor into a sustainable and prosperous metropolis by 2025.
Singapore's initial response to the mega development plan was lukewarm. Singapore businesses viewed warily the rosy forecast of lucrative investment opportunities in waterfront projects and building and operating educational institutions and theme parks. The onslaught of the global financial crisis in 2008 did not help matters and Iskandar developments appeared to be moving slowly.
However, to the credit of the project's planners and managers, and the commitment of the Malaysian government, hundreds of millions of dollars have been sunk into developing the necessary infrastructure. Roads and highways were built, rivers cleaned up, and water and energy services to the area upgraded. In short, Malaysia's planners spared no effort and now the development is ripe for takeoff.
Private investments have been picking up. The catalytic driver of investments for the area, Iskandar Investments, signed on some major projects and achieved its own target for joint ventures. Indeed, Iskandar Malaysia is reported to have gone beyond its target of achieving US$13.2 billion in investments by 2010. However, there can be no denying that Singapore investors have been by and large in 'wait and see' mode.
Several business delegations have gone across from Singapore over the past two years to take a look at the region and see developments for themselves. But except for a few small investors, there was no notable commitment from a Singapore party - until recently, when the Management Development Institute of Singapore (MDIS) announced one of its biggest forays overseas, a $128 million investment to set up a 30-acre campus in an area within Iskandar's EduCity. The new facility will be about five times bigger than its Singapore campus.
Now that political reassurances have been made, and basic infrastructure is in place, will potential investors from Singapore take the plunge? Already Temasek Holdings is eyeing some 200 hectares of land in the development zone for a medical and wellness centre. This must be the clearest signal that the Malaysian project has got that it is ready to fly.
But while government assurances and commitments are necessary, nothing can replace the hard-nosed approach of business people, who base their decisions purely on investment returns. How much, and how quickly, private investment flows into Iskandar Malaysia will be the real test. But it must be said that the prospects now look better than at any time since the project's launch.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Iskandar shows more promise
WHEN the two Prime Ministers of Singapore and Malaysia announced recently, and rather unexpectedly, a resolution to the long-standing issue of Malaysian railway land, there was a quiet sense of relief on both sides. But for none more so than among the backers of Iskandar Malaysia, an ambitious concept mooted in 2006 by the Malaysian government with the vision of transforming greenfield clusters in Johor into a sustainable and prosperous metropolis by 2025.
Singapore's initial response to the mega development plan was lukewarm. Singapore businesses viewed warily the rosy forecast of lucrative investment opportunities in waterfront projects and building and operating educational institutions and theme parks. The onslaught of the global financial crisis in 2008 did not help matters and Iskandar developments appeared to be moving slowly.
However, to the credit of the project's planners and managers, and the commitment of the Malaysian government, hundreds of millions of dollars have been sunk into developing the necessary infrastructure. Roads and highways were built, rivers cleaned up, and water and energy services to the area upgraded. In short, Malaysia's planners spared no effort and now the development is ripe for takeoff.
Private investments have been picking up. The catalytic driver of investments for the area, Iskandar Investments, signed on some major projects and achieved its own target for joint ventures. Indeed, Iskandar Malaysia is reported to have gone beyond its target of achieving US$13.2 billion in investments by 2010. However, there can be no denying that Singapore investors have been by and large in 'wait and see' mode.
Several business delegations have gone across from Singapore over the past two years to take a look at the region and see developments for themselves. But except for a few small investors, there was no notable commitment from a Singapore party - until recently, when the Management Development Institute of Singapore (MDIS) announced one of its biggest forays overseas, a $128 million investment to set up a 30-acre campus in an area within Iskandar's EduCity. The new facility will be about five times bigger than its Singapore campus.
Now that political reassurances have been made, and basic infrastructure is in place, will potential investors from Singapore take the plunge? Already Temasek Holdings is eyeing some 200 hectares of land in the development zone for a medical and wellness centre. This must be the clearest signal that the Malaysian project has got that it is ready to fly.
But while government assurances and commitments are necessary, nothing can replace the hard-nosed approach of business people, who base their decisions purely on investment returns. How much, and how quickly, private investment flows into Iskandar Malaysia will be the real test. But it must be said that the prospects now look better than at any time since the project's launch.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : NUS estimates confirm private home prices tapered off in June
Business Times - 29 Jul 2010
NUS estimates confirm private home prices tapered off in June
By KALPANA RASHIWALA
(SINGAPORE) Latest flash estimates from National University of Singapore (NUS) confirm what property industry players have already experienced on the ground - a rapid slowdown in the growth of non-landed private home prices in June compared with May.
NUS's overall price index for non-landed homes for June rose 0.3 per cent month on month, compared with month-on-month gains of 2.4 per cent each for May and April.
It was the same story for the sub-index for the Central region, which covers a basket of properties in districts 1-4 and 9-11. It increased 0.7 per cent month on month in June, slower than gains of 2.1 per cent in May and 3.4 per cent in April.
The sub-index for Non-Central region was unchanged in June from the preceding month, after rises of 2.7 per cent in May and 1.7 per cent in April.
The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.
DTZ executive director (consulting) Ong Choon Fah said: 'The latest indices confirm the slowdown in buying momentum felt on the ground in June - because of the school holidays, World Cup and continued uncertainty in the eurozone economies.
'People found no reason to rush and buy a home. Developers have also been holding back launches and the projects they did launch were not priced at the top end of their own target range; so developers have also moderated their own price expectation.'
Since the end of last year, all three NUS indices have appreciated - to the tune of 8.7 per cent for the overall index, 8.2 per cent for Central region and 9.2 per cent for Non-Central region. Based on the latest June flash estimates, NUS's overall SRPI is now 36.3 per cent above the post-financial crisis low in March 2009. Over the same period, the growth for the Central region has been 42.1 per cent and that for the Non-Central region, about 33.3 per cent.
The June flash estimate for Central region is still 3.5 per cent below the pre-crisis high in November 2007. However, for the Non-Central region, the latest index surpassed its respective pre-crisis peak in January 2008 by 11.2 per cent. As a result, the overall SRPI flash estimate for June is 5.7 above its November 2007 high.
Looking ahead, Mrs Ong reckoned the overall and Central region indices are likely to remain flat in July, but the index for the Non-Central region could either be flat or post a marginal increase, supported by high cash-over-valuations in the HDB resale market.
Meanwhile Hong Leong Holdings said yesterday it has sold over 75 per cent of the 468 units available at The Scala, a 99-year condo at Serangoon Avenue 3. The units are sized between 474 and 2,142 sq ft, and sold at an average of $1,150 per square foot. Buyers comprised a good mix of HDB upgraders and investors, with the majority made up of locals.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
NUS estimates confirm private home prices tapered off in June
By KALPANA RASHIWALA
(SINGAPORE) Latest flash estimates from National University of Singapore (NUS) confirm what property industry players have already experienced on the ground - a rapid slowdown in the growth of non-landed private home prices in June compared with May.
NUS's overall price index for non-landed homes for June rose 0.3 per cent month on month, compared with month-on-month gains of 2.4 per cent each for May and April.
It was the same story for the sub-index for the Central region, which covers a basket of properties in districts 1-4 and 9-11. It increased 0.7 per cent month on month in June, slower than gains of 2.1 per cent in May and 3.4 per cent in April.
The sub-index for Non-Central region was unchanged in June from the preceding month, after rises of 2.7 per cent in May and 1.7 per cent in April.
The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.
DTZ executive director (consulting) Ong Choon Fah said: 'The latest indices confirm the slowdown in buying momentum felt on the ground in June - because of the school holidays, World Cup and continued uncertainty in the eurozone economies.
'People found no reason to rush and buy a home. Developers have also been holding back launches and the projects they did launch were not priced at the top end of their own target range; so developers have also moderated their own price expectation.'
Since the end of last year, all three NUS indices have appreciated - to the tune of 8.7 per cent for the overall index, 8.2 per cent for Central region and 9.2 per cent for Non-Central region. Based on the latest June flash estimates, NUS's overall SRPI is now 36.3 per cent above the post-financial crisis low in March 2009. Over the same period, the growth for the Central region has been 42.1 per cent and that for the Non-Central region, about 33.3 per cent.
The June flash estimate for Central region is still 3.5 per cent below the pre-crisis high in November 2007. However, for the Non-Central region, the latest index surpassed its respective pre-crisis peak in January 2008 by 11.2 per cent. As a result, the overall SRPI flash estimate for June is 5.7 above its November 2007 high.
Looking ahead, Mrs Ong reckoned the overall and Central region indices are likely to remain flat in July, but the index for the Non-Central region could either be flat or post a marginal increase, supported by high cash-over-valuations in the HDB resale market.
Meanwhile Hong Leong Holdings said yesterday it has sold over 75 per cent of the 468 units available at The Scala, a 99-year condo at Serangoon Avenue 3. The units are sized between 474 and 2,142 sq ft, and sold at an average of $1,150 per square foot. Buyers comprised a good mix of HDB upgraders and investors, with the majority made up of locals.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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