Press Releases
MEASURES TO MAINTAIN A STABLE AND SUSTAINABLE PROPERTY MARKET
1 The Government announced today the following measures to maintain a stable and sustainable property market:
Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current one year to three years.
For property buyers who already have one or more outstanding housing loans1 at the time of the new housing purchase:
Increase the minimum cash payment from 5% to 10% of the valuation limit2; and
Decrease the Loan-to-Value (LTV) limit for housing loans granted by financial institutions regulated by MAS to these buyers from the current 80% to 70%.
The measures will take immediate effect on 30 August 2010.
2 The Government's objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals. The property market is currently very buoyant. While the rate of price increase of private residential properties has moderated in the last 3 quarters, prices have still increased significantly by 11% in the first half of 2010, and price levels have now exceeded the historical peak in the second quarter of 1996.
3 While Singapore has enjoyed strong economic growth in the first half of 2010, our economic growth is expected to moderate in the second half of the year. There are also still uncertainties in the global economy. Should economic growth falter and the market corrects, property buyers could face capital losses, with implications on their own finances and the economy as a whole. Moreover, the current low global interest rate environment will not continue indefinitely, and higher interest rates could have severe implications for buyers who have overextended themselves. Therefore, the Government has decided to introduce additional measures now to temper sentiments and encourage greater financial prudence among property purchasers.
Extending the Holding Period for Imposition of Seller’s Stamp Duty (SSD) on Residential Properties Sold from 1 Year to 3 Years
4 The Government imposed in February 2010 a seller’s stamp duty (SSD) for sellers who buy residential properties3 on or after 20 February 2010 and sell them within a year of purchase.
5 For residential properties bought4 on or after 30 August 2010, SSD will be imposed if these properties are sold within three years of purchase. Specifically, the SSD levied on residential properties will be revised to as follows:
Sold within the first year of purchase, i.e. the property is held for 1 year or less from its purchase date – The full SSD rate (1% for the first $180,000 of the consideration, 2% for the next $180,000, and 3% for the balance) will be imposed.
Sold within the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years – 2/3 of the full SSD rate.
Sold within the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years – 1/3 of the full SSD rate.
No SSD will be payable by the vendor if the property is sold more than 3 years after it was bought. Please see Annex for examples of how the SSD will be computed.
6 The extended SSD will not affect HDB lessees as the required Minimum Occupation Period for HDB flats is at least 3 years.
7 IRAS will be releasing an updated e-tax guide on the circumstances under which SSD will apply and the procedures for paying SSD. The e-tax guide will be available at www.iras.gov.sg. Taxpayers with enquiries may call IRAS at 6351 3697 or 6351 3698.
Increase the Minimum Cash Payment from 5% to 10% of the Valuation Limit for Property Purchasers with one or more outstanding Housing Loans
8 Previously, property buyers have to make cash payment of at least 5% of the valuation limit5. With effect from 30 Aug 20106, the cash payment is increased from 5% to 10% of the valuation limit7. This measure is applied only to buyers of private residential properties, Executive Condominiums, HUDC flats and HDB flats (including those under the Design, Build and Sell Scheme, or DBSS flats) who are taking housing loans from financial institutions regulated by MAS and who already have one or more outstanding housing loans at the time of applying for a housing loan for the new property purchase.
Decrease the LTV limit for housing loans granted by financial institutions regulated by MAS from the current 80% to 70% for Property Purchasers with one or more outstanding Housing Loans
9 The LTV limit is lowered from 80% to 70% with effect from 30 Aug 20108 for borrowers who have one or more outstanding housing loans (whether from HDB or a financial institution regulated by MAS) at the time of applying for a housing loan for the new property purchase. Borrowers who do not have any outstanding housing loans continue to have an LTV cap of 80%. These rules apply to housing loans granted by financial institutions for private residential properties, Executive Condominiums, HUDC flats and HDB flats (including DBSS flats).
10 Loans granted by HDB for HDB flats (including DBSS flats) will still have an LTV cap of 90%. HDB loans are offered to eligible first-time flat buyers and second-timers who are right-sizing their flats to meet their housing needs. They are required to utilise all of their CPF Ordinary Account balance before HDB loans will be granted. Furthermore, those taking a second concessionary HDB loan must use the CPF refund and 50% of the cash proceeds from the sale of their previous flat before they are granted an HDB loan. This is in line with HDB's home ownership policy of helping eligible buyers, especially first-time buyers, purchase public housing in a financially prudent manner.
11 Financial institutions' lending standards have remained prudent and the asset quality of housing loans has stayed robust, with the non-performing loans ratio at less than 1% as at Q2 2010. Nonetheless, there are signs that more housing loans are originating at higher LTV bands of above 70%. In line with the objective of ensuring a stable and sustainable property market, lowering the LTV limit sends a clear signal to financial institutions to maintain credit standards, and encourages greater financial prudence among property purchasers already servicing one or more outstanding housing loans.
Adequate Supply in the Pipeline
12 The Government will also continue to ensure that there is adequate supply of housing to meet demand. In the second half 2010 GLS Programme, we have made available sites that can yield about 13,900 private housing units, of which about 8,100 units will be from sites on the Confirmed List. This is the highest potential supply quantum in the history of the GLS Programme. We will inject an even larger supply of private housing in the first half 2011 GLS Programme, if demand continues to be strong.
13 Apart from the supply from the GLS Programme, there are also 61,800 uncompleted units of private housing from projects in the pipeline as at 2Q20109. Of these, 32,600 units were available or could be made available for sale. These comprised units that had been launched for sale by developers, units that had pre-requisite conditions for sale10 and which could be launched for sale immediately, as well as units with planning approvals for which pre-requisite conditions for sale could be obtained quickly from the Government and made available for sale11.
14 The Government will continue to monitor the property market closely and will introduce additional measures if required later, to promote a stable and sustainable property market.
*****
1 Financial institutions are required to conduct checks with HDB and with one or more credit bureaus on whether the buyer has an outstanding housing loan at the time of applying for a housing loan for the new property purchase. For joint buyers, if either buyer has an outstanding housing loan, the joint buyers will be considered as having an outstanding housing loan.
2 This is in addition to the cash over valuation amount that has to be paid in cash.
3 The SSD will apply to the transfer or disposal of interest (including sale and gifts) of residential lands and residential units (whether completed or uncompleted).
4 The date of purchase for computation of the holding period for SSD shall be the date when a buyer (i.e. Buyer A) exercises the option to purchase the property, or signs the sale and purchase agreement, whichever is earlier. The date of resale of the property shall be the date when the subsequent buyer (i.e. Buyer B) exercises the option to purchase the property from Buyer A, or signs the sale and purchase agreement, whichever is earlier.
5 The amount of CPF monies plus housing loan taken for the purchase of the property cannot exceed 95% of the valuation limit (defined as the lower of property value or property price).
6 The 10% minimum cash payment will apply to transactions where the date on which the option to purchase (OTP) was granted falls on or after 30 August 2010; or if there is no OTP, where the date of the sale and purchase agreement falls on or after 30 August 2010.
7 Therefore, the amount of CPF monies plus housing loan that can be used for the purchase of the property will be reduced from 95% to 90%.
8 The 70% LTV limit will apply to transactions where the date on which the option to purchase (OTP) was granted falls on or after 30 August 2010; or if there is no OTP, where the date of the sale and purchase agreement falls on or after 30 August 2010.
9 These refer to new development and redevelopment projects with planning approvals, i.e. either a Provisional Permission (PP) or Written Permission (WP).
10 These refer to private residential developments with Housing Developer Licence and Building Plan Approval. Under the Housing Developer (Control and Licensing) Act, a sale licence must be obtained for a project with more than 4 units, if the developer intends to sell uncompleted residential units in the development. However, the sale of the residential units can only commence with the approval of the building plans of the development.
11 These refer to uncompleted private residential developments without pre-requisites for sale but with WP or PP granted. The sale licences could be obtained within 5 working days and building plan approvals could be obtained within 7 working days from the date of application for cases where clearances from various technical agencies are obtained and relevant documents are in order during formal submissions.
Issued by: Ministry of National Development, Ministry of Finance and Monetary Authority of Singapore
Date: 30 August 2010
Monday, August 30, 2010
ST : More housing options for sandwich class
Aug 30, 2010
NATIONAL DAY RALLY
More housing options for sandwich class
Those with household income of up to $10,000 eligible for certain HDB flats
By Jeremy Au Yong & Esther Teo
THE income requirements for HDB buyers have been relaxed - slightly - to give the 'sandwich group' more housing options.
Those with a monthly household income of between $8,000 and $10,000 will be eligible to buy Housing Board flats built under the Design, Build and Sell Scheme (DBSS).
Previously, their only option - apart from private property - was executive condominium (EC) units, as the income cap for HDB flats is $8,000.
DBSS flats have better finishes than from build-to-order (BTO) ones because private developers are given flexibility in designing, building and pricing the units.
Prime Minister Lee Hsien Loong announced this at the National Day Rally last night, saying it would help those currently caught in the middle.
'I think this group is quite anxious about falling in between, so they are not eligible for HDB and they can't afford private property... And because people are marrying a little bit later, their incomes tend to be a little bit higher, so they worry they will get promoted before they get settled. So we will do more to help them own their homes,' he said.
For the sandwich class, buying a DBSS will become like buying an EC: They will be eligible for a housing grant and have to arrange their own financing.
While the $8,000 ceiling stays, the move opens up thousands of mid-priced flats to the sandwich group. In July, the HDB said there were 2,280 DBSS flats and 2,445 EC units in the pipeline.
A typical four-room BTO flat costs $300,000, a DBSS unit around $500,000 and an EC, around $700,000.
PM Lee added yesterday that more land would be released for such developments.
He also said that the Government would move to cool the private property market but declined to disclose details.
'Otherwise you will remember nothing else about my speech,' he said, to laughter from the audience of 1,500.
The Ministry of National Development will set out the measures today.
On public housing, PM Lee said about 22,000 BTO units would be built next year. 'So if you miss one BTO, don't worry, the next one is coming... There are 22,000 new flats coming along and we don't have 22,000 new couples getting married in Singapore every year.'
He added that the HDB would also do its best to speed up construction. The average waiting time for a flat is three years.
And to drive home the message that HDB flats are for owner occupation, he said the rules for private property owners buying resale flats would be tightened.
The housing changes, one of the highlights at yesterday's rally, are aimed at reassuring Singaporeans that they will be able to afford a home despite the surging property market.
Housing has been a hot-button political issue this year, with many voicing concerns about the spike in prices.
The latest official figures show the prices of HDB resale flats rose 4.1 per cent in the second quarter of this year, the eighth consecutive quarter of growth. The median cash-over-valuation also hit a record high of $30,000.
PM Lee acknowledged that the influx of foreigners had an impact on demand, but said broader economic forces were also at work.
He noted that though Singapore's population hardly changed in the last two years, prices were falling until the 'mood changed' in the middle of last year.
'It's also happening in Hong Kong, in other cities around the region, in China, and therefore there are other broader factors at work. But whatever it is, it's something which we are focusing our minds on,' he said.
Property analysts and house-hunters yesterday welcomed the move to loosen the income criteria for DBSS flats.
PropNex chief executive Mohamed Ismail said the move was especially timely given the growing size of the sandwich group: 'It's a good way to ease demand without allowing the sandwich group to compete with those earning less than $8,000 for BTO flats.'
Medical professional Tay Yuxin, who is planning to marry and is looking for a home, said she was relieved as she and her boyfriend would soon bust the $8,000 cap. Said the 24-year-old: 'There was a lot of pressure to get something so this is great as it allows us to be in less of a rush and apply for something that is affordable. Also, we have more locations to choose from.'
jeremyau@sph.com.sg
esthert@sph.com.sg
--------------------------------------------------------------------------------
'With more double-income families, some couples have had to shy away from promotions or to quit their jobs to try to qualify for BTO flats.'
PropNex chief executive Mohamed Ismail, saying the move to raise the income ceiling to $10,000 for flats built under the Design, Build and Sell Scheme was timely as the sandwich group was growing
NATIONAL DAY RALLY
More housing options for sandwich class
Those with household income of up to $10,000 eligible for certain HDB flats
By Jeremy Au Yong & Esther Teo
THE income requirements for HDB buyers have been relaxed - slightly - to give the 'sandwich group' more housing options.
Those with a monthly household income of between $8,000 and $10,000 will be eligible to buy Housing Board flats built under the Design, Build and Sell Scheme (DBSS).
Previously, their only option - apart from private property - was executive condominium (EC) units, as the income cap for HDB flats is $8,000.
DBSS flats have better finishes than from build-to-order (BTO) ones because private developers are given flexibility in designing, building and pricing the units.
Prime Minister Lee Hsien Loong announced this at the National Day Rally last night, saying it would help those currently caught in the middle.
'I think this group is quite anxious about falling in between, so they are not eligible for HDB and they can't afford private property... And because people are marrying a little bit later, their incomes tend to be a little bit higher, so they worry they will get promoted before they get settled. So we will do more to help them own their homes,' he said.
For the sandwich class, buying a DBSS will become like buying an EC: They will be eligible for a housing grant and have to arrange their own financing.
While the $8,000 ceiling stays, the move opens up thousands of mid-priced flats to the sandwich group. In July, the HDB said there were 2,280 DBSS flats and 2,445 EC units in the pipeline.
A typical four-room BTO flat costs $300,000, a DBSS unit around $500,000 and an EC, around $700,000.
PM Lee added yesterday that more land would be released for such developments.
He also said that the Government would move to cool the private property market but declined to disclose details.
'Otherwise you will remember nothing else about my speech,' he said, to laughter from the audience of 1,500.
The Ministry of National Development will set out the measures today.
On public housing, PM Lee said about 22,000 BTO units would be built next year. 'So if you miss one BTO, don't worry, the next one is coming... There are 22,000 new flats coming along and we don't have 22,000 new couples getting married in Singapore every year.'
He added that the HDB would also do its best to speed up construction. The average waiting time for a flat is three years.
And to drive home the message that HDB flats are for owner occupation, he said the rules for private property owners buying resale flats would be tightened.
The housing changes, one of the highlights at yesterday's rally, are aimed at reassuring Singaporeans that they will be able to afford a home despite the surging property market.
Housing has been a hot-button political issue this year, with many voicing concerns about the spike in prices.
The latest official figures show the prices of HDB resale flats rose 4.1 per cent in the second quarter of this year, the eighth consecutive quarter of growth. The median cash-over-valuation also hit a record high of $30,000.
PM Lee acknowledged that the influx of foreigners had an impact on demand, but said broader economic forces were also at work.
He noted that though Singapore's population hardly changed in the last two years, prices were falling until the 'mood changed' in the middle of last year.
'It's also happening in Hong Kong, in other cities around the region, in China, and therefore there are other broader factors at work. But whatever it is, it's something which we are focusing our minds on,' he said.
Property analysts and house-hunters yesterday welcomed the move to loosen the income criteria for DBSS flats.
PropNex chief executive Mohamed Ismail said the move was especially timely given the growing size of the sandwich group: 'It's a good way to ease demand without allowing the sandwich group to compete with those earning less than $8,000 for BTO flats.'
Medical professional Tay Yuxin, who is planning to marry and is looking for a home, said she was relieved as she and her boyfriend would soon bust the $8,000 cap. Said the 24-year-old: 'There was a lot of pressure to get something so this is great as it allows us to be in less of a rush and apply for something that is affordable. Also, we have more locations to choose from.'
jeremyau@sph.com.sg
esthert@sph.com.sg
--------------------------------------------------------------------------------
'With more double-income families, some couples have had to shy away from promotions or to quit their jobs to try to qualify for BTO flats.'
PropNex chief executive Mohamed Ismail, saying the move to raise the income ceiling to $10,000 for flats built under the Design, Build and Sell Scheme was timely as the sandwich group was growing
ST : More steps to ease housing woes: PM
Aug 30, 2010
More steps to ease housing woes: PM
Govt will announce today measures to cool private property market
By Li Xueying
THE Government will be introducing more measures to ensure public housing remains affordable and to cool the red-hot private property market.
Announcing this in his National Day Rally speech last night, Prime Minister Lee Hsien Loong gave some details of what will be done to make sure HDB flats remain affordable to Singaporeans, including those currently earning more than $8,000 a month.
But he held back on impending measures to rein in runaway private property prices.
Buyers and sellers will not be put on tenterhooks for long though. The announcement by the Ministry of National Development (MND) is due at 8am today.
'I don't want to go into the details tonight, otherwise you will remember nothing else about my speech,' he said, to laughter from the 1,500-strong audience at the University Cultural Centre.
'Tomorrow morning before the market opens, MND will put out their press statement and (MND Minister) Mah Bow Tan will hold a press conference.
'But our purpose is to make sure that in the long term, Singaporeans can own their homes and afford it, and it would be a gradually appreciating asset which will grow as Singapore grows, so that Singaporeans can benefit.'
The announcement was among a range of measures to address Singaporeans' anxiety over the influx of foreigners and immigrants.
The 'very hot topic' took up a major chunk of Mr Lee's three-hour address, delivered in Malay, Mandarin and English.
While acknowledging 'legitimate concerns which we take seriously' - fears over competition, crowding and the changing character of Singapore's society, he also spelled out why it is important for the country to stay open.
It needs to gain talent, garner reinforcements to grow the economy and make up for the population shortfall.
So the challenge is in balancing Singaporeans' concerns with these imperatives. As Mr Lee put it: 'How do we keep the door open while protecting the interest of Singaporeans? How do we welcome citizens while holding to our values?'
There are no ideal or permanent solutions, he acknowledged, and 'we will have to manage, monitor and adjust as we go along'.
He outlined what the Government is trying to do to limit the downsides.
Besides alleviating housing woes, it makes an important distinction between foreign workers and immigrants.
The former are transients who will leave when the job is done, said Mr Lee.
Significantly, he re-adjusted his estimate of the number of extra foreign workers Singapore will need this year. Where earlier he had projected 100,000, last night he revised it down to 80,000.
'We've recalculated, maybe we'll get by with a few less, perhaps 80,000 workers,' he said.
As for immigrants, the number is far smaller, and Singapore is 'very careful' whom it accepts.
Citizens will always come first, he assured his audience.
As a mark of this emphasis, he announced a new $9,000 award for NS men, more details of which will be released tomorrow.
To address complaints of congestion on public transport, Mr Lee reiterated measures already in the works to ease the crunch, such as the purchase of more trains and the building of more rail lines.
All in, these measures will cost $60 billion over the next 10 years.
Turning to education, Mr Lee expanded on the theme of inclusivity that he first brought up in his Rally in 2005: shaping the education system into one that enables students of different talents and abilities to maximise their potential.
Singapore is realising this vision, he said, but 'we can still do better'.
Among the new moves coming up is one to allow Normal (Academic) students to get a 'through-train' to polytechnic, skipping the O levels.
As for Express stream students, those in seven more secondary schools can get to be on the Integrated Programme whereby they go straight on to the A levels.
On the economic front, Mr Lee noted that while Singapore is attaining a spectacular 13 to 15 per cent in growth this year, the figure is 'less spectacular' when seen over the three years from 2008 to this year.
Averaged out, growth becomes 5 per cent a year over these three years.
But this is a 'realistic target'. 'For the next 10 years, if we can make 3 to 5 per cent growth on average every year, I think we're doing well,' he said.
Beyond bread and butter issues, Mr Lee also dwelt on the intangible 'Singapore spirit' that makes Singapore such an economic dynamo and a beacon for comers from many lands.
He defined the spirit as one based on values such as multiracialism, loyalty, shared responsibility and shared dreams.
It was seen in Singapore's founding fathers such as Dr Goh Keng Swee, he said, announcing the naming of two institutions - the Singapore Command and Staff College and a new centre of education - after the late deputy prime minister, who passed away in May.
The spirit can also be found in 33-year-old Alvan Yap, who is hearing-impaired but volunteers to teach deaf children in Timor Leste sign language.
With the Youth Olympic Games just ended earlier in the week, Mr Lee took the opportunity to voice his appreciation for the 30,000 staff and volunteers who made the Games possible.
While Singapore may be small, it is in a 'very strong position', he said, relating how a Canadian lady he met at the Games Village congratulated Singapore for having 'cleared the bar'.
'We've reinforced our talent, we've worked closely together, delivered results, won respect for Singapore.
'So with good leadership, and a close-knit team imbued with the Singapore spirit, we will seize the opportunities around us and take our nation to the next level,' he said.
xueying@sph.com.sg
--------------------------------------------------------------------------------
LONG TERM ASSET
'Our purpose is to make sure that in the long term, Singaporeans can own their homes and afford it, and it would be a gradually appreciating asset which will grow as Singapore grows, so that Singaporeans can benefit.'
PM Lee
More steps to ease housing woes: PM
Govt will announce today measures to cool private property market
By Li Xueying
THE Government will be introducing more measures to ensure public housing remains affordable and to cool the red-hot private property market.
Announcing this in his National Day Rally speech last night, Prime Minister Lee Hsien Loong gave some details of what will be done to make sure HDB flats remain affordable to Singaporeans, including those currently earning more than $8,000 a month.
But he held back on impending measures to rein in runaway private property prices.
Buyers and sellers will not be put on tenterhooks for long though. The announcement by the Ministry of National Development (MND) is due at 8am today.
'I don't want to go into the details tonight, otherwise you will remember nothing else about my speech,' he said, to laughter from the 1,500-strong audience at the University Cultural Centre.
'Tomorrow morning before the market opens, MND will put out their press statement and (MND Minister) Mah Bow Tan will hold a press conference.
'But our purpose is to make sure that in the long term, Singaporeans can own their homes and afford it, and it would be a gradually appreciating asset which will grow as Singapore grows, so that Singaporeans can benefit.'
The announcement was among a range of measures to address Singaporeans' anxiety over the influx of foreigners and immigrants.
The 'very hot topic' took up a major chunk of Mr Lee's three-hour address, delivered in Malay, Mandarin and English.
While acknowledging 'legitimate concerns which we take seriously' - fears over competition, crowding and the changing character of Singapore's society, he also spelled out why it is important for the country to stay open.
It needs to gain talent, garner reinforcements to grow the economy and make up for the population shortfall.
So the challenge is in balancing Singaporeans' concerns with these imperatives. As Mr Lee put it: 'How do we keep the door open while protecting the interest of Singaporeans? How do we welcome citizens while holding to our values?'
There are no ideal or permanent solutions, he acknowledged, and 'we will have to manage, monitor and adjust as we go along'.
He outlined what the Government is trying to do to limit the downsides.
Besides alleviating housing woes, it makes an important distinction between foreign workers and immigrants.
The former are transients who will leave when the job is done, said Mr Lee.
Significantly, he re-adjusted his estimate of the number of extra foreign workers Singapore will need this year. Where earlier he had projected 100,000, last night he revised it down to 80,000.
'We've recalculated, maybe we'll get by with a few less, perhaps 80,000 workers,' he said.
As for immigrants, the number is far smaller, and Singapore is 'very careful' whom it accepts.
Citizens will always come first, he assured his audience.
As a mark of this emphasis, he announced a new $9,000 award for NS men, more details of which will be released tomorrow.
To address complaints of congestion on public transport, Mr Lee reiterated measures already in the works to ease the crunch, such as the purchase of more trains and the building of more rail lines.
All in, these measures will cost $60 billion over the next 10 years.
Turning to education, Mr Lee expanded on the theme of inclusivity that he first brought up in his Rally in 2005: shaping the education system into one that enables students of different talents and abilities to maximise their potential.
Singapore is realising this vision, he said, but 'we can still do better'.
Among the new moves coming up is one to allow Normal (Academic) students to get a 'through-train' to polytechnic, skipping the O levels.
As for Express stream students, those in seven more secondary schools can get to be on the Integrated Programme whereby they go straight on to the A levels.
On the economic front, Mr Lee noted that while Singapore is attaining a spectacular 13 to 15 per cent in growth this year, the figure is 'less spectacular' when seen over the three years from 2008 to this year.
Averaged out, growth becomes 5 per cent a year over these three years.
But this is a 'realistic target'. 'For the next 10 years, if we can make 3 to 5 per cent growth on average every year, I think we're doing well,' he said.
Beyond bread and butter issues, Mr Lee also dwelt on the intangible 'Singapore spirit' that makes Singapore such an economic dynamo and a beacon for comers from many lands.
He defined the spirit as one based on values such as multiracialism, loyalty, shared responsibility and shared dreams.
It was seen in Singapore's founding fathers such as Dr Goh Keng Swee, he said, announcing the naming of two institutions - the Singapore Command and Staff College and a new centre of education - after the late deputy prime minister, who passed away in May.
The spirit can also be found in 33-year-old Alvan Yap, who is hearing-impaired but volunteers to teach deaf children in Timor Leste sign language.
With the Youth Olympic Games just ended earlier in the week, Mr Lee took the opportunity to voice his appreciation for the 30,000 staff and volunteers who made the Games possible.
While Singapore may be small, it is in a 'very strong position', he said, relating how a Canadian lady he met at the Games Village congratulated Singapore for having 'cleared the bar'.
'We've reinforced our talent, we've worked closely together, delivered results, won respect for Singapore.
'So with good leadership, and a close-knit team imbued with the Singapore spirit, we will seize the opportunities around us and take our nation to the next level,' he said.
xueying@sph.com.sg
--------------------------------------------------------------------------------
LONG TERM ASSET
'Our purpose is to make sure that in the long term, Singaporeans can own their homes and afford it, and it would be a gradually appreciating asset which will grow as Singapore grows, so that Singaporeans can benefit.'
PM Lee
ST : Property stocks still stuck in the basement
Aug 30, 2010
CAI JIN
Property stocks still stuck in the basement
Why developers' shares are not keeping up with soaring home prices
By Goh Eng Yeow
PRICES of private homes have gone through the roof and have even eclipsed the 1996 peak, yet share prices for property developers seem stuck in the basement, unloved and neglected.
Even though local banks have swung close to 2007's highs, several developers are still languishing at half of their peaks back then.
This is surprising given that sales of new homes this year are on track to overtake 2007's record 14,811 units, after 9,957 units were snapped up between January and July.
Conventional market wisdom dictates that the booming residential market and the soaring prices home-seekers are willing to pay should translate into hefty profits for developers - and therefore higher share prices.
But not so, with analysts estimating that the property sector is trading at a hefty 20 per cent discount to valuation.
This is despite the jump in profitability experienced by some developers in their second-quarter results.
CapitaLand, for one, swung to a hefty gain of $476 million for the second quarter from a loss of $157 million a year earlier, as the lustre from the property boom rubbed off on its profit and loss account.
But its share price is still down 44 per cent from its 2007 all-time high of $7.12.
It is a stark contrast to the boom year of 2007, when real estate counters were traded at a premium to valuations.
Are investors missing something here? Surely, the market's dour view on property counters is out of sync with the realities of the market.
Of course, it is easy to blame global uncertainties for the malaise afflicting property counters.
It was the foreign fund managers who recognised that property counters were undervalued in 2007 and propelled them to record highs in the liquidity-induced rally that year.
But the sub-prime mortgage crisis in the United States has knocked many of these former masters of the universe out of action.
Still, there seems to be more to this conundrum than foreign fund managers becoming risk-averse.
Few will deny that our housing boom is largely shaped by events beyond our shores, particularly the loose monetary policies implemented by US Federal Reserve chairman Ben Bernanke as he pared interest rates to almost zero last year to revive the troubled US economy.
Because the US dollar is the world's reserve currency, this move sharply depressed interest rates around the world.
Some banks in Singapore have slashed mortgage rates to as low as below 1 per cent to grab a bigger slice of the mortgage market.
Home-buyers have gleefully taken the opportunity of negligible borrowing costs to buy bigger, and in some cases multiple, properties, driving prices sharply higher in the process.
But interest rates cannot stay in the doldrums forever and the stock market may simply be pricing a risk premium into the price of property counters, in case the tide turns on the booming housing market.
Let us take a home-buyer who secures a 25-year, $1 million loan to buy his dream condo.
At a mortgage rate of 1.25 per cent, a back-of-the envelope calculation shows a monthly repayment of $4,375.
If the mortgage rate climbs back to 4 per cent - the prevailing rate three years ago - his instalment will escalate by almost 50 per cent to $6,666.
It is a simple illustration of how rising interest rates can make a big dent on the affordability of owning a home, especially alongside commitments like a car loan.
What worries some investors is that the Fed may be forced to start raising US interest rates as soon as 2012 to fight off inflationary pressure.
Higher interest rates may cause some home-buyers to walk away from their purchases, especially those who had bought properties under an interest-only payment scheme previously offered by developers to jack up sales at launches.
The scheme was scrapped by the Government in September last year but many projects that had already been financed by this option are scheduled for completion in 2012, just as the Fed may raise rates.
It is this market segment that has investors spooked as it is the one most likely at risk of defaults, as buyers can walk away from their purchases by simply forfeiting their downpayments.
Of course, defaults in 2012 will not materialise if property prices keep rising, allowing buyers to unload their purchases for a profit before they are completed.
But the likelihood is that price rises will moderate.
A recent Kim Eng Research report estimates that developers have about 15,600 unsold condos on hand.
This is more than sufficient to satisfy demand, even if it reaches 2007 highs. And that figure does not include new launches likely to hit the market and the growing supply of existing condos put up for sale.
It explains why equity investors are not taking any chances on property stocks, even though it seems unlikely that any home-buyer may default in today's buoyant market. The months ahead will determine which party has read the market correctly.
engyeow@sph.com.sg
Cai Jin runs every Monday and covers financial matters and corporate governance issues that can affect investors. The two Chinese characters marry wealth with good fortune - the two crucial factors that any investor needs to prosper.
--------------------------------------------------------------------------------
Home-buyers have gleefully taken the opportunity of negligible borrowing costs to buy bigger, and in some cases, multiple properties, driving prices sharply higher in the process.
CAI JIN
Property stocks still stuck in the basement
Why developers' shares are not keeping up with soaring home prices
By Goh Eng Yeow
PRICES of private homes have gone through the roof and have even eclipsed the 1996 peak, yet share prices for property developers seem stuck in the basement, unloved and neglected.
Even though local banks have swung close to 2007's highs, several developers are still languishing at half of their peaks back then.
This is surprising given that sales of new homes this year are on track to overtake 2007's record 14,811 units, after 9,957 units were snapped up between January and July.
Conventional market wisdom dictates that the booming residential market and the soaring prices home-seekers are willing to pay should translate into hefty profits for developers - and therefore higher share prices.
But not so, with analysts estimating that the property sector is trading at a hefty 20 per cent discount to valuation.
This is despite the jump in profitability experienced by some developers in their second-quarter results.
CapitaLand, for one, swung to a hefty gain of $476 million for the second quarter from a loss of $157 million a year earlier, as the lustre from the property boom rubbed off on its profit and loss account.
But its share price is still down 44 per cent from its 2007 all-time high of $7.12.
It is a stark contrast to the boom year of 2007, when real estate counters were traded at a premium to valuations.
Are investors missing something here? Surely, the market's dour view on property counters is out of sync with the realities of the market.
Of course, it is easy to blame global uncertainties for the malaise afflicting property counters.
It was the foreign fund managers who recognised that property counters were undervalued in 2007 and propelled them to record highs in the liquidity-induced rally that year.
But the sub-prime mortgage crisis in the United States has knocked many of these former masters of the universe out of action.
Still, there seems to be more to this conundrum than foreign fund managers becoming risk-averse.
Few will deny that our housing boom is largely shaped by events beyond our shores, particularly the loose monetary policies implemented by US Federal Reserve chairman Ben Bernanke as he pared interest rates to almost zero last year to revive the troubled US economy.
Because the US dollar is the world's reserve currency, this move sharply depressed interest rates around the world.
Some banks in Singapore have slashed mortgage rates to as low as below 1 per cent to grab a bigger slice of the mortgage market.
Home-buyers have gleefully taken the opportunity of negligible borrowing costs to buy bigger, and in some cases multiple, properties, driving prices sharply higher in the process.
But interest rates cannot stay in the doldrums forever and the stock market may simply be pricing a risk premium into the price of property counters, in case the tide turns on the booming housing market.
Let us take a home-buyer who secures a 25-year, $1 million loan to buy his dream condo.
At a mortgage rate of 1.25 per cent, a back-of-the envelope calculation shows a monthly repayment of $4,375.
If the mortgage rate climbs back to 4 per cent - the prevailing rate three years ago - his instalment will escalate by almost 50 per cent to $6,666.
It is a simple illustration of how rising interest rates can make a big dent on the affordability of owning a home, especially alongside commitments like a car loan.
What worries some investors is that the Fed may be forced to start raising US interest rates as soon as 2012 to fight off inflationary pressure.
Higher interest rates may cause some home-buyers to walk away from their purchases, especially those who had bought properties under an interest-only payment scheme previously offered by developers to jack up sales at launches.
The scheme was scrapped by the Government in September last year but many projects that had already been financed by this option are scheduled for completion in 2012, just as the Fed may raise rates.
It is this market segment that has investors spooked as it is the one most likely at risk of defaults, as buyers can walk away from their purchases by simply forfeiting their downpayments.
Of course, defaults in 2012 will not materialise if property prices keep rising, allowing buyers to unload their purchases for a profit before they are completed.
But the likelihood is that price rises will moderate.
A recent Kim Eng Research report estimates that developers have about 15,600 unsold condos on hand.
This is more than sufficient to satisfy demand, even if it reaches 2007 highs. And that figure does not include new launches likely to hit the market and the growing supply of existing condos put up for sale.
It explains why equity investors are not taking any chances on property stocks, even though it seems unlikely that any home-buyer may default in today's buoyant market. The months ahead will determine which party has read the market correctly.
engyeow@sph.com.sg
Cai Jin runs every Monday and covers financial matters and corporate governance issues that can affect investors. The two Chinese characters marry wealth with good fortune - the two crucial factors that any investor needs to prosper.
--------------------------------------------------------------------------------
Home-buyers have gleefully taken the opportunity of negligible borrowing costs to buy bigger, and in some cases, multiple properties, driving prices sharply higher in the process.
BT : Another dousing to cool property market
Business Times - 30 Aug 2010
Another dousing to cool property market
More flats to be built; govt looking at measures on resale deals and private housing
By CONRAD TAN
(SINGAPORE) The government will take further action to cool the property market and curb speculation in the resale market for HDB flats, including building 22,000 new public homes next year - up from 16,000 this year, Prime Minister Lee Hsien Loong said last night.
'We've twice acted to cool the market - once last year, and once in February this year - but the prices are still rising,' Mr Lee said in his National Day Rally speech. 'I think we need to do more.'
The National Development Ministry is expected to announce more details this morning, before the stock market opens.
'I don't want to go into the details tonight, otherwise you will remember nothing else about my speech,' Mr Lee said, drawing laughter from the audience at the University Cultural Centre at the National University of Singapore.
Private-home prices have risen 38 per cent in the year to the second quarter, according to an index compiled by the Urban Redevelopment Authority.
Prices rose 5.3 per cent in the second quarter, only slightly slower than the 5.6 per cent increase in the first quarter. The prices of HDB flats in the secondary, or resale, market have also risen sharply in recent months.
The government will tighten rules that allow private-property owners to buy an HDB flat in the resale market, and then sell it soon after. 'Quite a number' of private-property owners have bought HDB resale flats and then sold them after a year or two, Mr Lee said. 'I think we should tighten the rules further, so that it's quite clear that HDB flats are meant primarily for owner-occupation.'
The surge in property prices in Hong Kong and Singapore is in part 'a reflection that there's a lot of liquidity flowing to Asia', which has weathered the financial crisis better than the United States and Europe, said Selena Ling, an economist at OCBC Bank.
Ten days ago, the Hong Kong government announced more measures to curb speculation in its own red-hot property market, including raising the supply of land for sale and barring the resale of new condominiums before the properties are delivered.
The government will also allow Singaporean households who earn $8,000-$10,000 a month to buy HDB flats under its design, build and sell scheme (DBSS). Such households often can't afford private homes, but could previously buy only executive condominiums from HDB, since they earned more than $8,000. The government will release more land for executive condos and DBSS flats to ensure adequate supply, Mr Lee said.
Elsewhere in his wide-ranging speech, Mr Lee strove to reassure Singaporeans that the government would put their needs first, emphasising efforts to sharpen the distinctions between citizens, permanent residents and non-residents, as well as to protect Singaporeans' jobs.
He hinted that the foreign-worker levy that employers of foreign workers must pay could rise beyond the levels already announced in February, making it more attractive for firms to hire local workers where they can.
'The levies are going up, they're going to go up further - and I think they'll have to go up further beyond that in the longer term, or maybe the not so long term,' he said. 'Some employers may feel the pinch, but it is necessary because we need to manage the inflow and not have an indefinite number' of foreign workers, he said.
Mr Lee also announced a new award, totalling $9,000, to recognise the national-service contributions of Singaporean men.
The sum will be paid in tranches at 'major milestones' of an NSman's service into his Post-Secondary Education and Central Provident Fund accounts, Mr Lee said. The award is for citizens only; permanent residents who have done national service will receive the award when they take up citizenship. The Defence Ministry is expected to announce details this week.
The government also expects to pay out some $400 million to 400,000 Singaporeans who qualify for the Workfare Income Supplement scheme for low-wage workers aged 35 or older this year, Mr Lee said. That scheme, too, is for Singaporeans only, and puts them at an advantage over low-wage foreigners here, he noted.
'But the protection can only go so far,' he added. 'If you lack the skills or are not competitive, then it doesn't matter how high the foreign-worker levy is, or how generous the Workfare is, the jobs are still going to go elsewhere.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Another dousing to cool property market
More flats to be built; govt looking at measures on resale deals and private housing
By CONRAD TAN
(SINGAPORE) The government will take further action to cool the property market and curb speculation in the resale market for HDB flats, including building 22,000 new public homes next year - up from 16,000 this year, Prime Minister Lee Hsien Loong said last night.
'We've twice acted to cool the market - once last year, and once in February this year - but the prices are still rising,' Mr Lee said in his National Day Rally speech. 'I think we need to do more.'
The National Development Ministry is expected to announce more details this morning, before the stock market opens.
'I don't want to go into the details tonight, otherwise you will remember nothing else about my speech,' Mr Lee said, drawing laughter from the audience at the University Cultural Centre at the National University of Singapore.
Private-home prices have risen 38 per cent in the year to the second quarter, according to an index compiled by the Urban Redevelopment Authority.
Prices rose 5.3 per cent in the second quarter, only slightly slower than the 5.6 per cent increase in the first quarter. The prices of HDB flats in the secondary, or resale, market have also risen sharply in recent months.
The government will tighten rules that allow private-property owners to buy an HDB flat in the resale market, and then sell it soon after. 'Quite a number' of private-property owners have bought HDB resale flats and then sold them after a year or two, Mr Lee said. 'I think we should tighten the rules further, so that it's quite clear that HDB flats are meant primarily for owner-occupation.'
The surge in property prices in Hong Kong and Singapore is in part 'a reflection that there's a lot of liquidity flowing to Asia', which has weathered the financial crisis better than the United States and Europe, said Selena Ling, an economist at OCBC Bank.
Ten days ago, the Hong Kong government announced more measures to curb speculation in its own red-hot property market, including raising the supply of land for sale and barring the resale of new condominiums before the properties are delivered.
The government will also allow Singaporean households who earn $8,000-$10,000 a month to buy HDB flats under its design, build and sell scheme (DBSS). Such households often can't afford private homes, but could previously buy only executive condominiums from HDB, since they earned more than $8,000. The government will release more land for executive condos and DBSS flats to ensure adequate supply, Mr Lee said.
Elsewhere in his wide-ranging speech, Mr Lee strove to reassure Singaporeans that the government would put their needs first, emphasising efforts to sharpen the distinctions between citizens, permanent residents and non-residents, as well as to protect Singaporeans' jobs.
He hinted that the foreign-worker levy that employers of foreign workers must pay could rise beyond the levels already announced in February, making it more attractive for firms to hire local workers where they can.
'The levies are going up, they're going to go up further - and I think they'll have to go up further beyond that in the longer term, or maybe the not so long term,' he said. 'Some employers may feel the pinch, but it is necessary because we need to manage the inflow and not have an indefinite number' of foreign workers, he said.
Mr Lee also announced a new award, totalling $9,000, to recognise the national-service contributions of Singaporean men.
The sum will be paid in tranches at 'major milestones' of an NSman's service into his Post-Secondary Education and Central Provident Fund accounts, Mr Lee said. The award is for citizens only; permanent residents who have done national service will receive the award when they take up citizenship. The Defence Ministry is expected to announce details this week.
The government also expects to pay out some $400 million to 400,000 Singaporeans who qualify for the Workfare Income Supplement scheme for low-wage workers aged 35 or older this year, Mr Lee said. That scheme, too, is for Singaporeans only, and puts them at an advantage over low-wage foreigners here, he noted.
'But the protection can only go so far,' he added. 'If you lack the skills or are not competitive, then it doesn't matter how high the foreign-worker levy is, or how generous the Workfare is, the jobs are still going to go elsewhere.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Developers 'hungry' to launch new condos
Aug 29, 2010
property
Developers 'hungry' to launch new condos
Host of projects to come on stream when Hungry Ghost Festival ends, but affordability is still key
By Joyce Teo
The market for new property launches has slowed this month but should see a rebound after the Hungry Ghost Festival ends on Sept 7.
Developers are already lining up projects for launch, and these choices are expected to range from mass-market homes to high-end ones.
Next month, Hoi Hup Sunway is targeting to launch the 473-unit Vacanza@East - a freehold project in Lengkong Tujoh in the east, near the Pan-Island Expressway.
Hoi Hup said the joint venture bought the vacant freehold site for the project late last year. The condo will have one- to four-bedders from as small as just under 500 sq ft. Prices will start from more than $500,000, sources said.
City Developments and Hong Realty's 642-unit NV Residences in Pasir Ris Grove is also likely to be pushed out next month.
Marketing material shows that the 99-year leasehold condo has one- to four-bedroom units as well as penthouses, with the smallest one-bedders also just under 500 sq ft in size. The material says prices for the two-bedders will start from more than $600,000.
Around the same time, Chip Eng Seng's Oasis@Elias in Pasir Ris is likely to be relaunched at higher prices. The condo had sold for an average of $670 per sq ft in July last year, though its price has since risen to about $740 psf.
Property experts say rising prices have forced buyers to pay more for a private home. But affordability remains the key.
A report by property consultancy DTZ last week said those with public housing addresses are increasingly buying private homes that cost more than $1 million.
Some 43 per cent of buyers with HDB addresses bought homes costing more than $1 million in the second quarter, up from 36 per cent in the first quarter, it said.
This is due to prices having risen almost 20 per cent since the third quarter of last year.
'There is a chance new mass-market projects may be launched at higher psf prices,' said Savills Residential director Phylicia Ang.
'As long as developers keep the total price quantum affordable, there should be demand for these projects.'
Said Mr Peter Ow, managing director (residential services) at Knight Frank: 'The pricing of mass-market projects is constrained by the target market's income level.
'So what developers do is to build smaller units across the board, from the two- to the four-bedroom units. Smaller units help to keep the total quantum price affordable,' he said.
Unlike the previous 2007 boom which was led by the high-end sector, the current buying wave is mainly in the lower-end market segment - which is buoyed by rising public housing resale prices, DTZ said.
The high-end market is quiet given the global economic uncertainty, though a few developers may start launching such projects from next month. These could include Twin Peaks in Leonie Hill, The Peak@Cairnhill in Cairnhill Rise and Belle Vue Residences in Oxley Walk.
Belle Vue Residences was soft launched more than a year ago, and more than 100 of its 176 units have been sold. June caveats showed that three units were sold at $2,064 psf to $2,700 psf.
In the later part of next month, two projects in the mid-tier to high-end category can be expected, Knight Frank's Mr Ow said.
There is the freehold 250-unit Cityscape at Farrer Park by IOI group and Kim Seng Heng Realty. It is likely to be launched at an average of $1,500 psf.
Amara Holdings is also looking to push out its 30-unit Killiney 118, which is within walking distance of Somerset MRT station. This freehold project is expected to go for more than $2,000 psf.
According to CBRE, two executive condominium launches may hit the market come October. These are the 573-unit Esparina Residences by Frasers Centrepoint and Lum Chang Building Contractors, and the 406-unit The Canopy by China-based MCC Land.
Looking ahead, experts expect buying activity in the mass- to mid-market segment to continue, though it is expected to be more selective due to the higher prices.
'Although prices of mass-market homes are peakish, take-up could still be healthy due to the strength of underlying demand for them, if developers do not try to push the price border further,' said Colliers International director of research and advisory Tay Huey Ying.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
Sustained demand
'There is a chance new mass-market projects may be launched at higher psf prices...
As long as developers keep the total price quantum affordable, there should be demand for these projects.'
SAVILLS RESIDENTIAL DIRECTOR PHYLICIA ANG
An artist's impression of the Belle Vue Residences, one of a handful of high-end development projects that could be launched from next month. -- PHOTO: WING TAI
property
Developers 'hungry' to launch new condos
Host of projects to come on stream when Hungry Ghost Festival ends, but affordability is still key
By Joyce Teo
The market for new property launches has slowed this month but should see a rebound after the Hungry Ghost Festival ends on Sept 7.
Developers are already lining up projects for launch, and these choices are expected to range from mass-market homes to high-end ones.
Next month, Hoi Hup Sunway is targeting to launch the 473-unit Vacanza@East - a freehold project in Lengkong Tujoh in the east, near the Pan-Island Expressway.
Hoi Hup said the joint venture bought the vacant freehold site for the project late last year. The condo will have one- to four-bedders from as small as just under 500 sq ft. Prices will start from more than $500,000, sources said.
City Developments and Hong Realty's 642-unit NV Residences in Pasir Ris Grove is also likely to be pushed out next month.
Marketing material shows that the 99-year leasehold condo has one- to four-bedroom units as well as penthouses, with the smallest one-bedders also just under 500 sq ft in size. The material says prices for the two-bedders will start from more than $600,000.
Around the same time, Chip Eng Seng's Oasis@Elias in Pasir Ris is likely to be relaunched at higher prices. The condo had sold for an average of $670 per sq ft in July last year, though its price has since risen to about $740 psf.
Property experts say rising prices have forced buyers to pay more for a private home. But affordability remains the key.
A report by property consultancy DTZ last week said those with public housing addresses are increasingly buying private homes that cost more than $1 million.
Some 43 per cent of buyers with HDB addresses bought homes costing more than $1 million in the second quarter, up from 36 per cent in the first quarter, it said.
This is due to prices having risen almost 20 per cent since the third quarter of last year.
'There is a chance new mass-market projects may be launched at higher psf prices,' said Savills Residential director Phylicia Ang.
'As long as developers keep the total price quantum affordable, there should be demand for these projects.'
Said Mr Peter Ow, managing director (residential services) at Knight Frank: 'The pricing of mass-market projects is constrained by the target market's income level.
'So what developers do is to build smaller units across the board, from the two- to the four-bedroom units. Smaller units help to keep the total quantum price affordable,' he said.
Unlike the previous 2007 boom which was led by the high-end sector, the current buying wave is mainly in the lower-end market segment - which is buoyed by rising public housing resale prices, DTZ said.
The high-end market is quiet given the global economic uncertainty, though a few developers may start launching such projects from next month. These could include Twin Peaks in Leonie Hill, The Peak@Cairnhill in Cairnhill Rise and Belle Vue Residences in Oxley Walk.
Belle Vue Residences was soft launched more than a year ago, and more than 100 of its 176 units have been sold. June caveats showed that three units were sold at $2,064 psf to $2,700 psf.
In the later part of next month, two projects in the mid-tier to high-end category can be expected, Knight Frank's Mr Ow said.
There is the freehold 250-unit Cityscape at Farrer Park by IOI group and Kim Seng Heng Realty. It is likely to be launched at an average of $1,500 psf.
Amara Holdings is also looking to push out its 30-unit Killiney 118, which is within walking distance of Somerset MRT station. This freehold project is expected to go for more than $2,000 psf.
According to CBRE, two executive condominium launches may hit the market come October. These are the 573-unit Esparina Residences by Frasers Centrepoint and Lum Chang Building Contractors, and the 406-unit The Canopy by China-based MCC Land.
Looking ahead, experts expect buying activity in the mass- to mid-market segment to continue, though it is expected to be more selective due to the higher prices.
'Although prices of mass-market homes are peakish, take-up could still be healthy due to the strength of underlying demand for them, if developers do not try to push the price border further,' said Colliers International director of research and advisory Tay Huey Ying.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
Sustained demand
'There is a chance new mass-market projects may be launched at higher psf prices...
As long as developers keep the total price quantum affordable, there should be demand for these projects.'
SAVILLS RESIDENTIAL DIRECTOR PHYLICIA ANG
An artist's impression of the Belle Vue Residences, one of a handful of high-end development projects that could be launched from next month. -- PHOTO: WING TAI
ST : Er, what is a two-envelope system?
Aug 29, 2010
FINANCIAL QUOTIENT
Er, what is a two-envelope system?
Where do you see this?
In media reports and the Government's tender annnouncements.
What does it mean?
It is a tender system in which developers submit their design proposals and tender prices in two separate envelopes.
The Government will first evaluate the concept proposals against a set of pre-stated criteria, including the overall design and the adaptive reuse of conservation buildings.
At the second stage, the tender price envelopes of these shortlisted bidders will be opened.
The site will be awarded to the highest of these bidders, provided this top bid meets the Government's reserve price.
Why is it important?
This system is used for selected major development sites, such as the historical Capitol Theatre site, to ensure that developers come up with distinctive developments commensurate with the site's strategic location.
For instance, world-renowned British architect Norman Foster's firm Foster and Partners presented a design that incorporated comprehensive, cutting-edge green features without compromising on aesthetics for the landmark South Beach project in Beach Road.
So you want to use the term. Just say...
'The Government is using the two-envelope system for the Capitol Theatre site. I am sure whoever wins the tender will have a design that's guaranteed to bring more life to the City Hall area.'
Lorna Tan
FINANCIAL QUOTIENT
Er, what is a two-envelope system?
Where do you see this?
In media reports and the Government's tender annnouncements.
What does it mean?
It is a tender system in which developers submit their design proposals and tender prices in two separate envelopes.
The Government will first evaluate the concept proposals against a set of pre-stated criteria, including the overall design and the adaptive reuse of conservation buildings.
At the second stage, the tender price envelopes of these shortlisted bidders will be opened.
The site will be awarded to the highest of these bidders, provided this top bid meets the Government's reserve price.
Why is it important?
This system is used for selected major development sites, such as the historical Capitol Theatre site, to ensure that developers come up with distinctive developments commensurate with the site's strategic location.
For instance, world-renowned British architect Norman Foster's firm Foster and Partners presented a design that incorporated comprehensive, cutting-edge green features without compromising on aesthetics for the landmark South Beach project in Beach Road.
So you want to use the term. Just say...
'The Government is using the two-envelope system for the Capitol Theatre site. I am sure whoever wins the tender will have a design that's guaranteed to bring more life to the City Hall area.'
Lorna Tan
TODAY ONLINE : Home loans below 1%
Home loans below 1%
Maybank S'pore ups the ante in residential mortgage market
05:55 AM Aug 28, 2010
by Ephraim Seow Siew Lee
SINGAPORE - Maybank Singapore has raised the bar in the home loans market with a slew of offerings that include mortgage rates below 1 per cent.
Its fixed rate packages, with either a three or five-year fixed term, offer the lowest rate in town at 0.88 per cent a year in the first year.
For its home loans pegged to interbank lending rates, Maybank is offering a rate starting at 0.5 percentage point above the three-month Sibor for the first year. Sibor, which stands for Singapore Interbank Offered Rate, is the rate at which Singapore banks lend to each other. It currently stands at 0.55 per cent.
Meanwhile, for its variable rate home loans package, Maybank is offering interest rates that will start at 0.80 per cent a year. This is 2.95 percentage points lower than the Singapore Residential Financing Rate (SRFR) for the first year. SRFR is Maybank's board rate, which has been at 3.75 per cent since 2007.
In another variable rate package, the bank is offering a $5,000 cashback and an interest rate of 1.3 per cent a year for the first year.
Maybank Singapore's Head of Consumer Banking, Ms Helen Neo, said the fixed rate packages are very popular because they give borrowers certainty in financing their mortgages.
The new packages are in celebration of Maybank's 50th anniversary. As part of the ongoing celebration, it has also launched a Privilege Plus Savings Account, a savings product for those aged 50 years and above.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Maybank S'pore ups the ante in residential mortgage market
05:55 AM Aug 28, 2010
by Ephraim Seow Siew Lee
SINGAPORE - Maybank Singapore has raised the bar in the home loans market with a slew of offerings that include mortgage rates below 1 per cent.
Its fixed rate packages, with either a three or five-year fixed term, offer the lowest rate in town at 0.88 per cent a year in the first year.
For its home loans pegged to interbank lending rates, Maybank is offering a rate starting at 0.5 percentage point above the three-month Sibor for the first year. Sibor, which stands for Singapore Interbank Offered Rate, is the rate at which Singapore banks lend to each other. It currently stands at 0.55 per cent.
Meanwhile, for its variable rate home loans package, Maybank is offering interest rates that will start at 0.80 per cent a year. This is 2.95 percentage points lower than the Singapore Residential Financing Rate (SRFR) for the first year. SRFR is Maybank's board rate, which has been at 3.75 per cent since 2007.
In another variable rate package, the bank is offering a $5,000 cashback and an interest rate of 1.3 per cent a year for the first year.
Maybank Singapore's Head of Consumer Banking, Ms Helen Neo, said the fixed rate packages are very popular because they give borrowers certainty in financing their mortgages.
The new packages are in celebration of Maybank's 50th anniversary. As part of the ongoing celebration, it has also launched a Privilege Plus Savings Account, a savings product for those aged 50 years and above.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST : Report: S'pore home prices see fastest rise
Aug 28, 2010
Report: S'pore home prices see fastest rise
Experts sceptical as global data doesn't compare across same property types
By Joyce Teo
PRIVATE home prices in Singapore rose at the fastest pace in the world in the year to June 30, according to the latest quarterly report by online property research house Global Property Guide.
It says home prices here rose 34 per cent in that period - registering the highest year-on-year rise since 1995. This put the Republic well ahead of Hong Kong, in the No. 2 spot, with a 21.42 per cent jump. These figures have been adjusted for inflation.
Mr Matthew Montagu-Pollock, publisher of Global Property Guide, said: 'It's because of Singapore's amazing economic growth... Housing markets respond to economic growth because people have more money in their pockets. They respond to interest rates and they respond to momentum.'
Global Property Guide compiles the ranking using data from 36 countries and territories - mostly official data that can be based on a particular housing type or a combination of housing types. In Singapore, it uses Urban Redevelopment Authority data, which covers only private homes.
Industry sources were sceptical about the ranking, given that it does not compare the same property types, for instance.
'For the ranking to be useful, you have to compare like for like. In Singapore, you're talking about the top 20 per cent of the housing market whereas another country might not have public housing,' said an industry source, declining to be named.
'But it's possible that Singapore is among the top few when it comes to property price increases. It has strong growth fundamentals, the Government is stable, the property market is transparent and well-regulated and there's no capital gains tax. It also has an open policy to attract talent.'
Said real estate firm Jones Lang LaSalle's research head for South-east Asia, Dr Chua Yang Liang: 'Based on anecdotal evidence, Hong Kong property prices seemed to have exceeded those in Singapore in the first half of the year.'
Knight Frank has an annual prime international residential index, which tracks global luxury residential prices by city. Last year, it shows that Shanghai had the steepest rise of 52 per cent, followed by Beijing's 47 per cent and Hong Kong's 40.5 per cent. Singapore was fifth, up 17 per cent.
The Global Property Guide report shows that Ireland had the steepest price falls of those covered. The housing recovery in Europe is patchy while North America is recovering at a snail's pace and may see falling home sales.
The report said Asia's strong economic growth, low interest rates and rising foreign demand fuelled skyrocketing house prices in Singapore, Hong Kong, Taiwan and mainland China. And these governments have responded by implementing anti-bubble measures.
Mr Montagu-Pollock was downbeat overall. '...most markets are not worth buying right now. We think in general, it will last quite a long time. Both Singapore and Hong Kong are interesting. We keep saying don't buy in these (areas) because the gross rental yield is low. And the prices keep going up.'
He added: 'The world has got to push housing prices down. The great conundrum is how to push them down without pushing the economy down.' joyceteo@sph.com.sg
Report: S'pore home prices see fastest rise
Experts sceptical as global data doesn't compare across same property types
By Joyce Teo
PRIVATE home prices in Singapore rose at the fastest pace in the world in the year to June 30, according to the latest quarterly report by online property research house Global Property Guide.
It says home prices here rose 34 per cent in that period - registering the highest year-on-year rise since 1995. This put the Republic well ahead of Hong Kong, in the No. 2 spot, with a 21.42 per cent jump. These figures have been adjusted for inflation.
Mr Matthew Montagu-Pollock, publisher of Global Property Guide, said: 'It's because of Singapore's amazing economic growth... Housing markets respond to economic growth because people have more money in their pockets. They respond to interest rates and they respond to momentum.'
Global Property Guide compiles the ranking using data from 36 countries and territories - mostly official data that can be based on a particular housing type or a combination of housing types. In Singapore, it uses Urban Redevelopment Authority data, which covers only private homes.
Industry sources were sceptical about the ranking, given that it does not compare the same property types, for instance.
'For the ranking to be useful, you have to compare like for like. In Singapore, you're talking about the top 20 per cent of the housing market whereas another country might not have public housing,' said an industry source, declining to be named.
'But it's possible that Singapore is among the top few when it comes to property price increases. It has strong growth fundamentals, the Government is stable, the property market is transparent and well-regulated and there's no capital gains tax. It also has an open policy to attract talent.'
Said real estate firm Jones Lang LaSalle's research head for South-east Asia, Dr Chua Yang Liang: 'Based on anecdotal evidence, Hong Kong property prices seemed to have exceeded those in Singapore in the first half of the year.'
Knight Frank has an annual prime international residential index, which tracks global luxury residential prices by city. Last year, it shows that Shanghai had the steepest rise of 52 per cent, followed by Beijing's 47 per cent and Hong Kong's 40.5 per cent. Singapore was fifth, up 17 per cent.
The Global Property Guide report shows that Ireland had the steepest price falls of those covered. The housing recovery in Europe is patchy while North America is recovering at a snail's pace and may see falling home sales.
The report said Asia's strong economic growth, low interest rates and rising foreign demand fuelled skyrocketing house prices in Singapore, Hong Kong, Taiwan and mainland China. And these governments have responded by implementing anti-bubble measures.
Mr Montagu-Pollock was downbeat overall. '...most markets are not worth buying right now. We think in general, it will last quite a long time. Both Singapore and Hong Kong are interesting. We keep saying don't buy in these (areas) because the gross rental yield is low. And the prices keep going up.'
He added: 'The world has got to push housing prices down. The great conundrum is how to push them down without pushing the economy down.' joyceteo@sph.com.sg
TODAY ONLINE : The key to investing in homes
The key to investing in homes
05:55 AM Aug 27, 2010
by Colin Tan
Most of us have heard it all before from the experts. Investing in homes is one of the safest and surest forms of investment. If you cannot re-sell the property for a good profit within a couple of years, you can always hold it for the long term because it will always appreciate.
But if everyone follows this advice, will it still work? Surely it is a recipe for disaster. If everyone is going to earn it the easy way, who will do all the hard work?
Given today's price levels, the vast majority of Singaporeans who own their homes are sitting on large paper profits. Many are paper millionaires; for them to become real millionaires, they would have no roofs over their heads.
Nevertheless, it is hard to argue against such a track record. In fact, the earlier the property was purchased, the greater the capital appreciation.
Most of us have bought our homes to live in, rather than as a get-rich-quick investments. When you buy for owner occupation, you have a guaranteed tenant - yourself. Instead of rentals, you are paying monthly mortgage payments.
It is a vastly different scenario when you are buying for investment. You do not have a guaranteed occupier. If you are not able to sell your property before its completion, you will have to look for tenants.
You will need to look at the yields and compare that with other forms of investments. You will need to assess the overall housing demand-and-supply situation. You will need to know how the economy is doing - now and in the future.
This means that you will need to do your homework and not go by herd instinct. The herd never gets it right all the time - hence economic and property cycles.
When an owner-occupier times his purchase right, he has one fewer big worry in life.
When an investor gets it right, he gets a windfall and lives the good life, but it never stops there, does it? The euphoria of earning big in a short few months or over one to two years what he could not earn in 10 or 15 years is intoxicating, to say the least. The profits will be re-invested in, what else, but property.
We read of success stories of people starting with a single property and having a string of them within a decade or two. How do they do it? We see many advertisements these days offering courses that will teach us how to make it big by investing in property. It is not a big secret: It is called leveraging - using other people's money to work for you.
When the value of your home rises significantly, as they always do during an up-cycle, you can secure a loan from banks by pledging your home as collateral. This is because your property's market value is much more than your outstanding loan.
You can use this loan to re-invest in property. In Singapore, buying a property under construction allows the investor to maximise his leverage. Since only a 20-per-cent down payment is required upon purchase, the investor can, in theory, play with an asset which is worth five times his initial capital.
Some people can own a number of properties in a short time because they are fully invested and fully leveraged. Profits are almost immediately re-invested. Like a person who buys his furniture on hire purchase, it looks like he is the owner, but the furniture is not yet fully his, even though no one else knows that.
This brings me to my last point. When an owner-occupier mis-times his purchase, he spends his whole working life paying for it. When a fully-leveraged investor gets it wrong, like in the real estate board game Monopoly, he becomes a bankrupt and retires from the game.
The writer is head of research and consultancy at Chesterton Suntec International.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Aug 27, 2010
by Colin Tan
Most of us have heard it all before from the experts. Investing in homes is one of the safest and surest forms of investment. If you cannot re-sell the property for a good profit within a couple of years, you can always hold it for the long term because it will always appreciate.
But if everyone follows this advice, will it still work? Surely it is a recipe for disaster. If everyone is going to earn it the easy way, who will do all the hard work?
Given today's price levels, the vast majority of Singaporeans who own their homes are sitting on large paper profits. Many are paper millionaires; for them to become real millionaires, they would have no roofs over their heads.
Nevertheless, it is hard to argue against such a track record. In fact, the earlier the property was purchased, the greater the capital appreciation.
Most of us have bought our homes to live in, rather than as a get-rich-quick investments. When you buy for owner occupation, you have a guaranteed tenant - yourself. Instead of rentals, you are paying monthly mortgage payments.
It is a vastly different scenario when you are buying for investment. You do not have a guaranteed occupier. If you are not able to sell your property before its completion, you will have to look for tenants.
You will need to look at the yields and compare that with other forms of investments. You will need to assess the overall housing demand-and-supply situation. You will need to know how the economy is doing - now and in the future.
This means that you will need to do your homework and not go by herd instinct. The herd never gets it right all the time - hence economic and property cycles.
When an owner-occupier times his purchase right, he has one fewer big worry in life.
When an investor gets it right, he gets a windfall and lives the good life, but it never stops there, does it? The euphoria of earning big in a short few months or over one to two years what he could not earn in 10 or 15 years is intoxicating, to say the least. The profits will be re-invested in, what else, but property.
We read of success stories of people starting with a single property and having a string of them within a decade or two. How do they do it? We see many advertisements these days offering courses that will teach us how to make it big by investing in property. It is not a big secret: It is called leveraging - using other people's money to work for you.
When the value of your home rises significantly, as they always do during an up-cycle, you can secure a loan from banks by pledging your home as collateral. This is because your property's market value is much more than your outstanding loan.
You can use this loan to re-invest in property. In Singapore, buying a property under construction allows the investor to maximise his leverage. Since only a 20-per-cent down payment is required upon purchase, the investor can, in theory, play with an asset which is worth five times his initial capital.
Some people can own a number of properties in a short time because they are fully invested and fully leveraged. Profits are almost immediately re-invested. Like a person who buys his furniture on hire purchase, it looks like he is the owner, but the furniture is not yet fully his, even though no one else knows that.
This brings me to my last point. When an owner-occupier mis-times his purchase, he spends his whole working life paying for it. When a fully-leveraged investor gets it wrong, like in the real estate board game Monopoly, he becomes a bankrupt and retires from the game.
The writer is head of research and consultancy at Chesterton Suntec International.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
BT : Better deal on Sports Hub loans
Business Times - 27 Aug 2010
Better deal on Sports Hub loans
Repayment in 10 years, with option to refinance any time
By LEE U-WEN
(SINGAPORE) The global financial crisis may have wreaked havoc on Singapore's plans to build its long-delayed Sports Hub - but it has proven to be a blessing in disguise as far as the project's financing is concerned.
Under a new deal signed on Wednesday by the Singapore Sports Council and the Singapore Sports Hub Consortium, the hefty loans taken out from 11 banks to construct the $1.33 billion facility will be repaid over 10 years now, rather than the original intention to do so over 25 years.
What's more, the government now has the right to exercise an option to refinance the loan at any time within the 10-year period, in the event that credit conditions improve and interest rates plunge, said Community Development, Youth and Sports Minister Vivian Balakrishnan.
'Because of all the financial uncertainty going on today, if we had still asked for a 25-year loan, we would have to pay more,' he told reporters yesterday. 'Within these next 10 years, if we decide that market conditions have improved, we can cause a refinancing to occur which can then lower our repayments. If conditions turn against us, (the rate) is locked in anyway, so we don't have to pay more.'
After the 10-year period is up, the government also has the choice to refinance, raise funds elsewhere or structure another loan, Dr Balakrishnan said. Any refinancing would usually be done after the construction is completed because this would bring down the project's entire risk. 'After the construction phase, the facility, the real asset, is already on the ground,' he said.
Under the Sports Hub's public-private-partnership (PPP) arrangement, the government will not pay anything upfront. Instead, it will fork out an annual payment to the consortium over 25 years. The $1.33 billion figure does not include the cost of operating the facility.
Because of this arrangement, the construction risks and operation risks are transferred to the consortium and the banks that have provided the loans, Dr Balakrishnan said. 'Part of the reason it took so long to get to this stage is because the banks had to do their due diligence on the capability and merits of the consortium's business plan,' he said.
The consortium is headed by Dragages Singapore. Its members include facilities management firm United Premas and events management experts World Sport Group.
The Sports Hub, on a 35 hectare site in Kallang, will be the world's largest PPP sports infrastructure project. The completion date has been pushed back at least four times from the original 2010 target. The new deadline is April 2014, with work set to start next month.
The crown jewel will be a 55,000-seat National Stadium with a retractable roof that can host world-class football, athletics and possibly even cricket. There will also be a 6,000-seat indoor aquatics arena, almost 41,000 square metres of business, commercial and retail space, and a sports institute.
'As far as (the government) is concerned, we have signed and (the consortium) has to deliver,' Dr Balakrishnan said. 'We will pay specified rates. And even if the cost of credit changes, we will not have to pay more. I think, in the given conditions, you will agree that the markets and financial sector are not back to the good old days yet.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Sports Hub: Its crown jewel will be a 55,000-seat National Stadium with a retractable roof. There will also be a 6,000-seat indoor aquatics arena, and 41,000 sq m of business, commercial & retail space, and a sports institute.
Better deal on Sports Hub loans
Repayment in 10 years, with option to refinance any time
By LEE U-WEN
(SINGAPORE) The global financial crisis may have wreaked havoc on Singapore's plans to build its long-delayed Sports Hub - but it has proven to be a blessing in disguise as far as the project's financing is concerned.
Under a new deal signed on Wednesday by the Singapore Sports Council and the Singapore Sports Hub Consortium, the hefty loans taken out from 11 banks to construct the $1.33 billion facility will be repaid over 10 years now, rather than the original intention to do so over 25 years.
What's more, the government now has the right to exercise an option to refinance the loan at any time within the 10-year period, in the event that credit conditions improve and interest rates plunge, said Community Development, Youth and Sports Minister Vivian Balakrishnan.
'Because of all the financial uncertainty going on today, if we had still asked for a 25-year loan, we would have to pay more,' he told reporters yesterday. 'Within these next 10 years, if we decide that market conditions have improved, we can cause a refinancing to occur which can then lower our repayments. If conditions turn against us, (the rate) is locked in anyway, so we don't have to pay more.'
After the 10-year period is up, the government also has the choice to refinance, raise funds elsewhere or structure another loan, Dr Balakrishnan said. Any refinancing would usually be done after the construction is completed because this would bring down the project's entire risk. 'After the construction phase, the facility, the real asset, is already on the ground,' he said.
Under the Sports Hub's public-private-partnership (PPP) arrangement, the government will not pay anything upfront. Instead, it will fork out an annual payment to the consortium over 25 years. The $1.33 billion figure does not include the cost of operating the facility.
Because of this arrangement, the construction risks and operation risks are transferred to the consortium and the banks that have provided the loans, Dr Balakrishnan said. 'Part of the reason it took so long to get to this stage is because the banks had to do their due diligence on the capability and merits of the consortium's business plan,' he said.
The consortium is headed by Dragages Singapore. Its members include facilities management firm United Premas and events management experts World Sport Group.
The Sports Hub, on a 35 hectare site in Kallang, will be the world's largest PPP sports infrastructure project. The completion date has been pushed back at least four times from the original 2010 target. The new deadline is April 2014, with work set to start next month.
The crown jewel will be a 55,000-seat National Stadium with a retractable roof that can host world-class football, athletics and possibly even cricket. There will also be a 6,000-seat indoor aquatics arena, almost 41,000 square metres of business, commercial and retail space, and a sports institute.
'As far as (the government) is concerned, we have signed and (the consortium) has to deliver,' Dr Balakrishnan said. 'We will pay specified rates. And even if the cost of credit changes, we will not have to pay more. I think, in the given conditions, you will agree that the markets and financial sector are not back to the good old days yet.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Sports Hub: Its crown jewel will be a 55,000-seat National Stadium with a retractable roof. There will also be a 6,000-seat indoor aquatics arena, and 41,000 sq m of business, commercial & retail space, and a sports institute.
Thursday, August 26, 2010
ST : Sports Hub deal sealed
Aug 26, 2010
Sports Hub deal sealed
By Leonard Lim
PEN was put to paper yesterday on the contract that will pave the way for the construction of the Sports Hub.
Demolition of the National Stadium will begin by October, with the new 35ha facility catering to both sports and non-sports enthusiasts to open its doors by April 2014, the Singapore Sports Council said in a press statement early this morning.
The centrepiece remains a new 55,000-seater stadium with a retractable roof, with other highlights including a 6,000-capacity indoor Aquatic Centre, a water sports centre, and 41,000 sq m of commercial space.
But several features not in the initial proposal by a private consortium tasked to build the world-class project have been added. They include a beach volleyball court and rock climbing wall.
The construction cost is $1.33 billion. This does not include the costs of operating the facility.
Under the agreed public-private-partnership (PPP) scheme, the winning consortium Singapore Sports Hub Consortium (SSHC) will bear the cost of constructing and operating the Sports Hub. The Government will, however, make an annual payment to SSHC over 25 years.
The new cost announced is higher than the $1.2 billion estimated in 2008.
'I am glad that we are ready to start construction of the Singapore Sports Hub,' the statement quoted Minister for Community Development, Youth and Sports Vivian Balakrishnan as saying.
'It will be a fully integrated sports, leisure, entertainment and lifestyle hub for world class events and community activities.
'As part of the Greater Marina Bay masterplan, the Singapore Sports Hub will also contribute to the larger government objective of repositioning Singapore as a great place to work, live and play,' he added.
Since its announcement, the Sports Hub has been dogged by repeated delays and been a magnet for criticism. Its completion date was pushed back from this year to next year, 2012 and then 2013.
After the SSHC beat two other groups to be named the project's preferred bidder in January 2008, it struggled to raise financing for construction to begin due to the recession.
Mr Ludwig Reichhold, the managing director of Dragages Singapore which heads the SSHC, said: 'We are ready to go full swing.'
Other members of the consortium include United Premas, a facilities management company, and events management firm World Sport Group.
It is understood that while $1.87 billion was the initial cost to the Government over the 25-year period for the contract with the SSHC, this figure will now change as there have been tweaks to the financing terms.
Under the PPP scheme, SSHC is in charge of designing, financing, building and operating the hub.
Events such as the Asean Football League and Twenty20 cricket matches are among the high-profile events being planned to ensure it remains a vibrant year-round destination.
Singapore Rugby Union president Low Teo Ping, who had been among those eagerly awaiting the hub's completion, said: 'Now we can try to bid to get the highly successful Rugby 7s series back.
'With the sport making its debut at the 2016 Olympics, we could see qualifying matches for the Rio Games played here too from 2014 onwards.'
The Sports Hub's completion will also allow the Republic to host a major Games like the South-east Asia Games.
It had given up hosting rights for the 2013 edition as the Hub could not be completed in time. Cambodia are the front runners for the 2015 SEA Games, though no country has been picked yet.
limze@sph.com.sg
Sports Hub deal sealed
By Leonard Lim
PEN was put to paper yesterday on the contract that will pave the way for the construction of the Sports Hub.
Demolition of the National Stadium will begin by October, with the new 35ha facility catering to both sports and non-sports enthusiasts to open its doors by April 2014, the Singapore Sports Council said in a press statement early this morning.
The centrepiece remains a new 55,000-seater stadium with a retractable roof, with other highlights including a 6,000-capacity indoor Aquatic Centre, a water sports centre, and 41,000 sq m of commercial space.
But several features not in the initial proposal by a private consortium tasked to build the world-class project have been added. They include a beach volleyball court and rock climbing wall.
The construction cost is $1.33 billion. This does not include the costs of operating the facility.
Under the agreed public-private-partnership (PPP) scheme, the winning consortium Singapore Sports Hub Consortium (SSHC) will bear the cost of constructing and operating the Sports Hub. The Government will, however, make an annual payment to SSHC over 25 years.
The new cost announced is higher than the $1.2 billion estimated in 2008.
'I am glad that we are ready to start construction of the Singapore Sports Hub,' the statement quoted Minister for Community Development, Youth and Sports Vivian Balakrishnan as saying.
'It will be a fully integrated sports, leisure, entertainment and lifestyle hub for world class events and community activities.
'As part of the Greater Marina Bay masterplan, the Singapore Sports Hub will also contribute to the larger government objective of repositioning Singapore as a great place to work, live and play,' he added.
Since its announcement, the Sports Hub has been dogged by repeated delays and been a magnet for criticism. Its completion date was pushed back from this year to next year, 2012 and then 2013.
After the SSHC beat two other groups to be named the project's preferred bidder in January 2008, it struggled to raise financing for construction to begin due to the recession.
Mr Ludwig Reichhold, the managing director of Dragages Singapore which heads the SSHC, said: 'We are ready to go full swing.'
Other members of the consortium include United Premas, a facilities management company, and events management firm World Sport Group.
It is understood that while $1.87 billion was the initial cost to the Government over the 25-year period for the contract with the SSHC, this figure will now change as there have been tweaks to the financing terms.
Under the PPP scheme, SSHC is in charge of designing, financing, building and operating the hub.
Events such as the Asean Football League and Twenty20 cricket matches are among the high-profile events being planned to ensure it remains a vibrant year-round destination.
Singapore Rugby Union president Low Teo Ping, who had been among those eagerly awaiting the hub's completion, said: 'Now we can try to bid to get the highly successful Rugby 7s series back.
'With the sport making its debut at the 2016 Olympics, we could see qualifying matches for the Rio Games played here too from 2014 onwards.'
The Sports Hub's completion will also allow the Republic to host a major Games like the South-east Asia Games.
It had given up hosting rights for the 2013 edition as the Hub could not be completed in time. Cambodia are the front runners for the 2015 SEA Games, though no country has been picked yet.
limze@sph.com.sg
BT : China housing prices will start dropping in Q4: bankers
Business Times - 26 Aug 2010
China housing prices will start dropping in Q4: bankers
(BEIJING) Chinese property developers are facing strained cash flows and will be forced to cut prices beginning in the fourth quarter, a state newspaper reported on Tuesday, citing several bankers.
Beijing has strictly controlled financing to real estate developers by limiting their lending from banks and fund-raising from capital markets - part of its efforts to cool speculative purchases and prevent prices from rising too fast.
'As far as we know, property developers are feeling very strained cash flows now and many of them have made preparations to tighten their belts,' the official Shanghai Securities News quoted an unnamed executive at the Shanghai branch of China Everbright Bank as saying.
Property developers purchased a large amount of land lots in 2009 when the market was booming. Under current regulations, they are not allowed to hold land for a long period of time without developing it and have to speed up construction. That will likely increase the supply of housing in the coming quarters, the newspaper said.
'Housing prices will probably show an evident drop as early as from the fourth quarter,' the newspaper quoted another unnamed banker at Shenzhen Development Bank as saying.
Earlier this month, the National Bureau of Statistics reported that housing prices in 70 major cities were unchanged in July from June.
But the National Development and Reform Commission said property prices in 36 key cities actually rose 1.6 per cent in July from June. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
China housing prices will start dropping in Q4: bankers
(BEIJING) Chinese property developers are facing strained cash flows and will be forced to cut prices beginning in the fourth quarter, a state newspaper reported on Tuesday, citing several bankers.
Beijing has strictly controlled financing to real estate developers by limiting their lending from banks and fund-raising from capital markets - part of its efforts to cool speculative purchases and prevent prices from rising too fast.
'As far as we know, property developers are feeling very strained cash flows now and many of them have made preparations to tighten their belts,' the official Shanghai Securities News quoted an unnamed executive at the Shanghai branch of China Everbright Bank as saying.
Property developers purchased a large amount of land lots in 2009 when the market was booming. Under current regulations, they are not allowed to hold land for a long period of time without developing it and have to speed up construction. That will likely increase the supply of housing in the coming quarters, the newspaper said.
'Housing prices will probably show an evident drop as early as from the fourth quarter,' the newspaper quoted another unnamed banker at Shenzhen Development Bank as saying.
Earlier this month, the National Bureau of Statistics reported that housing prices in 70 major cities were unchanged in July from June.
But the National Development and Reform Commission said property prices in 36 key cities actually rose 1.6 per cent in July from June. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Joint venture bids $165m for 99-year site in Yishun
Aug 25, 2010
Joint venture bids $165m for 99-year site in Yishun
Hoi Hup Realty and Sunway Developments will cite nearby golf course as key selling point
By Joyce Teo
A JOINT venture which has emerged as the top bidder for a condominium site in Yishun is highlighting its location next to a golf course as a key selling point.
The tie-up between Hoi Hup Realty and Sunway Developments put in the best of seven bids for the 99-year leasehold land parcel at Miltonia Close, at the fringe of Yishun Town Centre.
The bid of $165 million, or $405.5 per sq ft per plot ratio (psf ppr), beat market expectations and came in about 31 per cent above the next bid.
Hoi Hup director Wong Sjew Hung told The Straits Times: 'We see the potential of the site. It is really hard to find a site next to the golf course here.
'We plan to build a five-storey condominium with 380 units. It will be mainly two- and three-bedroom units suitable for families.'
A construction firm, Master Contract Services, placed the second-highest bid of $126 million, or $309.68 psf ppr. The third-highest bid from a joint venture between Frasers Centrepoint and Orchard Parade Holdings came very close at $125.32 million, or $308 psf ppr.
The lowest of the seven bids came from Intrepid Investments - at $97.88 million, or $240.56 psf ppr.
Analysts had projected bids of $270-$350 psf ppr.
The site, which can be developed into a strata housing community or a condominium project, is on the boundary of the Orchid Country Club golf course. It is not near an MRT station, but it does enjoy an unblocked view of Lower Seletar Reservoir.
CBRE Research director Leonard Tay said the location will appeal to people who prefer a quiet neighbourhood, lots of greenery and a serene environment.
Private residential developments nearby include The Shaughnessy, Lilydale executive condominium, Orchid Park Condominium and The Estuary (under construction).
Mr Tay said the top bid could reflect a break-even cost of about $700-$750 psf should a low-rise condo be developed. And condo units in this new project could possibly sell above $800 psf, he said.
By comparison, units at The Estuary, which was launched in April, transacted at $650-$850 psf from April to August.
In the same period, units at the 16-year-old Orchid Park Condominium were sold at $550-$700 psf, said Mr Tay.
An industry expert said the tender response shows that, apart from the top bidder, the other developers are now more cautious in bidding for sites given the record upcoming supply.
But developers are still hungry for land as their landbanks are fast depleting, he said.
Ms Wong said this project - if the joint venture is awarded the site - will be Hoi Hup's fourth with Sunway Developments. The joint venture's previous project was The Peak @ Toa Payoh.
Joint venture bids $165m for 99-year site in Yishun
Hoi Hup Realty and Sunway Developments will cite nearby golf course as key selling point
By Joyce Teo
A JOINT venture which has emerged as the top bidder for a condominium site in Yishun is highlighting its location next to a golf course as a key selling point.
The tie-up between Hoi Hup Realty and Sunway Developments put in the best of seven bids for the 99-year leasehold land parcel at Miltonia Close, at the fringe of Yishun Town Centre.
The bid of $165 million, or $405.5 per sq ft per plot ratio (psf ppr), beat market expectations and came in about 31 per cent above the next bid.
Hoi Hup director Wong Sjew Hung told The Straits Times: 'We see the potential of the site. It is really hard to find a site next to the golf course here.
'We plan to build a five-storey condominium with 380 units. It will be mainly two- and three-bedroom units suitable for families.'
A construction firm, Master Contract Services, placed the second-highest bid of $126 million, or $309.68 psf ppr. The third-highest bid from a joint venture between Frasers Centrepoint and Orchard Parade Holdings came very close at $125.32 million, or $308 psf ppr.
The lowest of the seven bids came from Intrepid Investments - at $97.88 million, or $240.56 psf ppr.
Analysts had projected bids of $270-$350 psf ppr.
The site, which can be developed into a strata housing community or a condominium project, is on the boundary of the Orchid Country Club golf course. It is not near an MRT station, but it does enjoy an unblocked view of Lower Seletar Reservoir.
CBRE Research director Leonard Tay said the location will appeal to people who prefer a quiet neighbourhood, lots of greenery and a serene environment.
Private residential developments nearby include The Shaughnessy, Lilydale executive condominium, Orchid Park Condominium and The Estuary (under construction).
Mr Tay said the top bid could reflect a break-even cost of about $700-$750 psf should a low-rise condo be developed. And condo units in this new project could possibly sell above $800 psf, he said.
By comparison, units at The Estuary, which was launched in April, transacted at $650-$850 psf from April to August.
In the same period, units at the 16-year-old Orchid Park Condominium were sold at $550-$700 psf, said Mr Tay.
An industry expert said the tender response shows that, apart from the top bidder, the other developers are now more cautious in bidding for sites given the record upcoming supply.
But developers are still hungry for land as their landbanks are fast depleting, he said.
Ms Wong said this project - if the joint venture is awarded the site - will be Hoi Hup's fourth with Sunway Developments. The joint venture's previous project was The Peak @ Toa Payoh.
ST : Downtown Line news lifts home sales
Aug 25, 2010
Downtown Line news lifts home sales
HOME buyers have snapped up eight units at Waterfront Key and six at Waterfront Gold in the Bedok Reservoir area in the days since last week's news that an MRT station will be built nearby.
Developer Frasers Centrepoint Homes said the units have been sold since the Government announced details of Stage 3 of the MRT Downtown Line last Friday.
The firm will also officially launch Waterfront Gold this Saturday.
Waterfront Gold, Waterfront Key and the fully sold Waterfront Waves are near the planned Bedok Reservoir station on the newest stage of the Downtown Line.
Experts say projects near this line should experience stronger demand, as with other projects located near MRT stations.
Stage 3 of the Downtown Line stretches from Singapore Expo in the east to Liang Court in River Valley in the south. A total of 16 stops are planned, including Tampines East, Upper Changi, Kampong Ubi and Kaki Bukit.
Ms Christine Sun, senior manager at Savills Research & Consultancy, noted that quite a number of MRT stations on this line are located within commercial and industrial areas, particularly in the North-east and Eastern regions.
This line will boost transport links to suburban commercial sites in Ubi, Kaki Bukit, MacPherson and Singapore Expo, she said.
The Paya Lebar Industrial Park, where 15ha are to be developed under the Masterplan 2008, will be a definite beneficiary.
Ms Sun said more businesses may relocate their offices from the city fringes and downtown areas to the park, and a positive impact on industrial property prices in these areas can be expected.
Residential properties near the Bedok Reservoir, Tampines, Pasir Ris and Upper Changi areas could see higher demand down the road, she added.
Residents in these areas will be able to transfer to the East-West Line stations via the new Downtown Line instead of using bus transfers, she said.
'For now, owner-occupiers may show more interest than investors in the projects near the new Downtown Line because these are mostly suburban areas.'
Also, the timeframe for the completion of the Downtown Line may be too long for some investors, she said.
Savills Residential director Phylicia Ang concurred that new and existing residential projects near the upcoming Downtown Line should attract demand but said not all investors will be eager to jump in now.
They will have to wait a few years for the line to be ready in order to reap the benefits, she said.
Price is also a key factor as developers and individual sellers may raise their prices, she said.
Stage 3 of the Downtown Line is scheduled for completion in 2017.
JOYCE TEO
Downtown Line news lifts home sales
HOME buyers have snapped up eight units at Waterfront Key and six at Waterfront Gold in the Bedok Reservoir area in the days since last week's news that an MRT station will be built nearby.
Developer Frasers Centrepoint Homes said the units have been sold since the Government announced details of Stage 3 of the MRT Downtown Line last Friday.
The firm will also officially launch Waterfront Gold this Saturday.
Waterfront Gold, Waterfront Key and the fully sold Waterfront Waves are near the planned Bedok Reservoir station on the newest stage of the Downtown Line.
Experts say projects near this line should experience stronger demand, as with other projects located near MRT stations.
Stage 3 of the Downtown Line stretches from Singapore Expo in the east to Liang Court in River Valley in the south. A total of 16 stops are planned, including Tampines East, Upper Changi, Kampong Ubi and Kaki Bukit.
Ms Christine Sun, senior manager at Savills Research & Consultancy, noted that quite a number of MRT stations on this line are located within commercial and industrial areas, particularly in the North-east and Eastern regions.
This line will boost transport links to suburban commercial sites in Ubi, Kaki Bukit, MacPherson and Singapore Expo, she said.
The Paya Lebar Industrial Park, where 15ha are to be developed under the Masterplan 2008, will be a definite beneficiary.
Ms Sun said more businesses may relocate their offices from the city fringes and downtown areas to the park, and a positive impact on industrial property prices in these areas can be expected.
Residential properties near the Bedok Reservoir, Tampines, Pasir Ris and Upper Changi areas could see higher demand down the road, she added.
Residents in these areas will be able to transfer to the East-West Line stations via the new Downtown Line instead of using bus transfers, she said.
'For now, owner-occupiers may show more interest than investors in the projects near the new Downtown Line because these are mostly suburban areas.'
Also, the timeframe for the completion of the Downtown Line may be too long for some investors, she said.
Savills Residential director Phylicia Ang concurred that new and existing residential projects near the upcoming Downtown Line should attract demand but said not all investors will be eager to jump in now.
They will have to wait a few years for the line to be ready in order to reap the benefits, she said.
Price is also a key factor as developers and individual sellers may raise their prices, she said.
Stage 3 of the Downtown Line is scheduled for completion in 2017.
JOYCE TEO
ST : Crackdown on illegal dorms in Little India
Aug 25, 2010
Crackdown on illegal dorms in Little India
Rooms let out on sites that are not zoned for hotel use
By Tessa Wong
A NEW type of lodging for foreign workers has sprung up in Little India in recent years, with some offering air-conditioned rooms, cable television and housekeeping services, among other amenities.
But these establishments have come under scrutiny by government agencies, which say that some may not be operating legally and have clamped down on at least two in recent weeks.
At least nine such foreign worker hotels have come up in the past two years. Seven of them are owned by local property company DRA Property Management, spread out over Desker Road, Rowell Road and Dunlop Street.
One is operated by supermarket chain I-Tec above its Jalan Besar retail outlet, while the ninth is operated by the owner of Lamea Restaurant in Desker Road.
They have come up due to demand from foreign workers, particularly those who have not been housed in dorms by their companies, as well as tourists on a tight budget and foreign job seekers looking for a cheap place to stay.
The big attraction is their rates, which can be a fraction of what traditional hotels charge.
Rates range from $7 a night - for a bunk bed in a dorm-like room that can fit up to 30 people - to about $1,200 a month for an air-conditioned room shared by four people.
But it appears that such businesses may be operating on locations that have not been zoned for hotel use and are meant for other purposes, such as commercial or residential activity.
In addition, most of them do not have hotel licences, claiming that they are merely 'residences'. But technically, they meet the Government's definition of a hotel or boarding house, in which case they would need a licence and must operate on a location zoned for hotel use.
This definition, by the Hotel Licensing Board, states that any place with four or more rooms hired out for a fee, and that provides domestic services such as room cleaning, must get a hotel licence.
The Urban Redevelopment Authority (URA) has already told at least two DRA residences in Rowell Road to shut down by the middle of next month because those sites have been zoned for commercial use and not for hotel use. The DRA spokesman said the company plans to appeal.
Mr Jolovan Wham, spokesman for foreign workers' rights group Home, said that such establishments helped to fill a gap in housing, by providing cheap yet comfortable accommodation.
'Other places can be quite squalid, with no proper management. At least these boarding houses are maintained well, sometimes even with air-conditioning,' he said.
Guests also gave the thumbs-up, saying such establishments provide good service at a low cost.
Mr Dhanam Tennakoon, 74, who is from Sri Lanka, has been sharing a room with two relatives at a DRA residence for the past six months while one of his relatives seeks medical treatment here.
'We like this place. It's very reasonable, and it lets us do our own cooking and washing,' said Mr Tennakoon.
When told that the establishment might be illegal, he shrugged. 'We pay, and we stay. That's all I know.'
But others are less thrilled to see such businesses springing up. The Straits Times understands that the URA has received a number of complaints from the public, alleging that some of them are illegal boarding houses.
A URA spokesman said it is investigating some of these establishments.
Under the Planning Act, a person responsible for unauthorised use of a property may be fined up to $200,000 and/or imprisoned for up to a year. If the offence continues after conviction, a fine of up to $10,000 per day may be imposed.
Owners of unlicensed hotels may also be fined up to $2,000 on the first conviction, under the Hotel Act. For subsequent offences, the person may incur the same fine and/or be sent to prison for up to six months.
twong@sph.com.sg
Crackdown on illegal dorms in Little India
Rooms let out on sites that are not zoned for hotel use
By Tessa Wong
A NEW type of lodging for foreign workers has sprung up in Little India in recent years, with some offering air-conditioned rooms, cable television and housekeeping services, among other amenities.
But these establishments have come under scrutiny by government agencies, which say that some may not be operating legally and have clamped down on at least two in recent weeks.
At least nine such foreign worker hotels have come up in the past two years. Seven of them are owned by local property company DRA Property Management, spread out over Desker Road, Rowell Road and Dunlop Street.
One is operated by supermarket chain I-Tec above its Jalan Besar retail outlet, while the ninth is operated by the owner of Lamea Restaurant in Desker Road.
They have come up due to demand from foreign workers, particularly those who have not been housed in dorms by their companies, as well as tourists on a tight budget and foreign job seekers looking for a cheap place to stay.
The big attraction is their rates, which can be a fraction of what traditional hotels charge.
Rates range from $7 a night - for a bunk bed in a dorm-like room that can fit up to 30 people - to about $1,200 a month for an air-conditioned room shared by four people.
But it appears that such businesses may be operating on locations that have not been zoned for hotel use and are meant for other purposes, such as commercial or residential activity.
In addition, most of them do not have hotel licences, claiming that they are merely 'residences'. But technically, they meet the Government's definition of a hotel or boarding house, in which case they would need a licence and must operate on a location zoned for hotel use.
This definition, by the Hotel Licensing Board, states that any place with four or more rooms hired out for a fee, and that provides domestic services such as room cleaning, must get a hotel licence.
The Urban Redevelopment Authority (URA) has already told at least two DRA residences in Rowell Road to shut down by the middle of next month because those sites have been zoned for commercial use and not for hotel use. The DRA spokesman said the company plans to appeal.
Mr Jolovan Wham, spokesman for foreign workers' rights group Home, said that such establishments helped to fill a gap in housing, by providing cheap yet comfortable accommodation.
'Other places can be quite squalid, with no proper management. At least these boarding houses are maintained well, sometimes even with air-conditioning,' he said.
Guests also gave the thumbs-up, saying such establishments provide good service at a low cost.
Mr Dhanam Tennakoon, 74, who is from Sri Lanka, has been sharing a room with two relatives at a DRA residence for the past six months while one of his relatives seeks medical treatment here.
'We like this place. It's very reasonable, and it lets us do our own cooking and washing,' said Mr Tennakoon.
When told that the establishment might be illegal, he shrugged. 'We pay, and we stay. That's all I know.'
But others are less thrilled to see such businesses springing up. The Straits Times understands that the URA has received a number of complaints from the public, alleging that some of them are illegal boarding houses.
A URA spokesman said it is investigating some of these establishments.
Under the Planning Act, a person responsible for unauthorised use of a property may be fined up to $200,000 and/or imprisoned for up to a year. If the offence continues after conviction, a fine of up to $10,000 per day may be imposed.
Owners of unlicensed hotels may also be fined up to $2,000 on the first conviction, under the Hotel Act. For subsequent offences, the person may incur the same fine and/or be sent to prison for up to six months.
twong@sph.com.sg
BT : New benchmark set for condo land in Yishun area
Business Times - 25 Aug 2010
New benchmark set for condo land in Yishun area
Hoi Hup-Sunway tie-up puts in top bid of $405.53 psf ppr or $165m
By KALPANA RASHIWALA
A NEW benchmark has been set for condominium land in the Yishun/Semba- wang area. A state tender that closed yesterday for a 99-year leasehold plot at Miltonia Close next to Orchid Country Club fetched a top bid of $405.53 per square foot per plot ratio (psf ppr) or $165 million from a tie-up between Hoi Hup Realty and Sunway Developments.
The joint bid was 31 per cent higher than the next highest offer, placed by Master Contract Services, whose activities are listed as builders, contractors, developers and steel structural component makers.
Yesterday's tender drew seven bids, suggesting developers' appetite for choice sites is still healthy. Earlier this month, an executive condo plot at Jurong West did not draw a single bid - which some analysts blamed on its unattractive location.
At yesterday's tender, the lowest offer, from Hong Leong Group unit Intrepid Investments, was $240.56 psf ppr.
Market watchers note that the $405.53 psf ppr offered by Hoi Hup-Sunway surpassed the $387 psf ppr winning bid for a condo plot at Sembawang Road/ Canberra Drive at a state tender in June.
A Hoi Hup spokeswoman, explaining the group's 31 per cent margin at yesterday's tender, said: 'This is a rare site on mainland Singapore - next to a golf course, overlooking the (Lower Seletar) reservoir. We can see its potential.'
Hoi Hup and Sunway hope to build a five-storey condo with about 380 units comprising one- to four-bedroom units with as many units as possible having golf course views, she added.
Most of the units will be two- and three-bedders, targeting families.
The project is likely to be launch ready in about nine months to a year.
The allowed uses for the site are strata landed housing or condo housing or a flats development.
The Hoi Hup spokeswoman said the group's breakeven cost would be slightly above $700 psf.
'Our associated company, Straits Construction, will be doing the construction,' she added.
CBRE Research director Leonard Tay estimates that units in a new condo project on the site 'could possibly sell for above $800 psf'.
Another analyst suggests Hoi Hup and Sunway could be eyeing an average price of about $900 psf.
Market watchers note that a short distance away, The Estuary was launched in February this year at an average price of $750 psf. MCL Land is developing the project on a site it clinched for $350 psf ppr at a March 2008 tender. MCL's winning bid in that contest was a whopping 68 per cent more than the next highest bidder.
MCL's unit Superport also bid at yesterday's tender, emerging in fourth place at $285.10 psf ppr.
Frasers Centrepoint teamed up with Orchard Parade Holdings for a $308 psf ppr bid. Other bidders include Allgreen Properties ($267.60 psf ppr), and Ho Lee Group ($253.15 psf ppr).
Yesterday's joint top bid by Hoi Hup and Sunway will mark the duo's fourth collaboration.
They are developing two public housing projects under the Design Build and Sell Scheme as well as a 473-unit freehold condo at Jalan Senang, Vacanza@East, expected to be released soon.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New benchmark set for condo land in Yishun area
Hoi Hup-Sunway tie-up puts in top bid of $405.53 psf ppr or $165m
By KALPANA RASHIWALA
A NEW benchmark has been set for condominium land in the Yishun/Semba- wang area. A state tender that closed yesterday for a 99-year leasehold plot at Miltonia Close next to Orchid Country Club fetched a top bid of $405.53 per square foot per plot ratio (psf ppr) or $165 million from a tie-up between Hoi Hup Realty and Sunway Developments.
The joint bid was 31 per cent higher than the next highest offer, placed by Master Contract Services, whose activities are listed as builders, contractors, developers and steel structural component makers.
Yesterday's tender drew seven bids, suggesting developers' appetite for choice sites is still healthy. Earlier this month, an executive condo plot at Jurong West did not draw a single bid - which some analysts blamed on its unattractive location.
At yesterday's tender, the lowest offer, from Hong Leong Group unit Intrepid Investments, was $240.56 psf ppr.
Market watchers note that the $405.53 psf ppr offered by Hoi Hup-Sunway surpassed the $387 psf ppr winning bid for a condo plot at Sembawang Road/ Canberra Drive at a state tender in June.
A Hoi Hup spokeswoman, explaining the group's 31 per cent margin at yesterday's tender, said: 'This is a rare site on mainland Singapore - next to a golf course, overlooking the (Lower Seletar) reservoir. We can see its potential.'
Hoi Hup and Sunway hope to build a five-storey condo with about 380 units comprising one- to four-bedroom units with as many units as possible having golf course views, she added.
Most of the units will be two- and three-bedders, targeting families.
The project is likely to be launch ready in about nine months to a year.
The allowed uses for the site are strata landed housing or condo housing or a flats development.
The Hoi Hup spokeswoman said the group's breakeven cost would be slightly above $700 psf.
'Our associated company, Straits Construction, will be doing the construction,' she added.
CBRE Research director Leonard Tay estimates that units in a new condo project on the site 'could possibly sell for above $800 psf'.
Another analyst suggests Hoi Hup and Sunway could be eyeing an average price of about $900 psf.
Market watchers note that a short distance away, The Estuary was launched in February this year at an average price of $750 psf. MCL Land is developing the project on a site it clinched for $350 psf ppr at a March 2008 tender. MCL's winning bid in that contest was a whopping 68 per cent more than the next highest bidder.
MCL's unit Superport also bid at yesterday's tender, emerging in fourth place at $285.10 psf ppr.
Frasers Centrepoint teamed up with Orchard Parade Holdings for a $308 psf ppr bid. Other bidders include Allgreen Properties ($267.60 psf ppr), and Ho Lee Group ($253.15 psf ppr).
Yesterday's joint top bid by Hoi Hup and Sunway will mark the duo's fourth collaboration.
They are developing two public housing projects under the Design Build and Sell Scheme as well as a 473-unit freehold condo at Jalan Senang, Vacanza@East, expected to be released soon.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : China housing prices to start dropping in Q4
Business Times - 24 Aug 2010
China housing prices to start dropping in Q4
BEIJING - Chinese property developers are facing strained cash flows and will be forced to cut prices beginning in the fourth quarter, a state newspaper reported on Tuesday, citing several bankers.
Beijing has strictly controlled financing to real estate developers by limiting their lending from banks and fund raising from capital markets, part of its efforts to cool speculative purchases and prevent prices from rising too fast.
'As far as we know, property developers are feeling very strained cash flows now and many of them have made preparations to tighten their belts,' the official Shanghai Securities News quoted an unnamed executive at the Shanghai branch of China Everbright Bank as saying.
Property developers purchased a large amount of land lots in 2009 when the market was booming. Under current regulations, they are not allowed to hold land for a long period of time without developing it and have to speed up construction. That will likely increase the supply of housing in the coming quarters, the newspaper said.
'Housing prices will probably show an evident drop as early as from the fourth quarter,' the newspaper quoted another unnamed banker at Shenzhen Development Bank as saying.
Earlier this month, the National Bureau of Statistics reported that housing prices in 70 major cities were unchanged in July from June.
But the National Development and Reform Commission said property prices in 36 key cities actually rose 1.6 per cent in July from June. -- REUTERS
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
China housing prices to start dropping in Q4
BEIJING - Chinese property developers are facing strained cash flows and will be forced to cut prices beginning in the fourth quarter, a state newspaper reported on Tuesday, citing several bankers.
Beijing has strictly controlled financing to real estate developers by limiting their lending from banks and fund raising from capital markets, part of its efforts to cool speculative purchases and prevent prices from rising too fast.
'As far as we know, property developers are feeling very strained cash flows now and many of them have made preparations to tighten their belts,' the official Shanghai Securities News quoted an unnamed executive at the Shanghai branch of China Everbright Bank as saying.
Property developers purchased a large amount of land lots in 2009 when the market was booming. Under current regulations, they are not allowed to hold land for a long period of time without developing it and have to speed up construction. That will likely increase the supply of housing in the coming quarters, the newspaper said.
'Housing prices will probably show an evident drop as early as from the fourth quarter,' the newspaper quoted another unnamed banker at Shenzhen Development Bank as saying.
Earlier this month, the National Bureau of Statistics reported that housing prices in 70 major cities were unchanged in July from June.
But the National Development and Reform Commission said property prices in 36 key cities actually rose 1.6 per cent in July from June. -- REUTERS
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : China buyers are tops in Sentosa Cove
Aug 24, 2010
China buyers are tops in Sentosa Cove
They form biggest group of foreign purchasers there this year; many snap up landed homes
By Joyce Teo
BUYERS from China now comprise the largest group of foreign buyers in the exclusive residential enclave of Sentosa Cove.
In the first half of this year, Chinese buyers accounted for nearly a third of all foreign buyers - well up from 18 per cent for all of last year and just 7 per cent in 2008, according to a new DTZ report yesterday.
Malaysians were the largest group at the gated community last year, and Indonesians held the title back in 2008, the property consultancy said.
The buying surge from China is even more dramatic for landed homes there. When purchases of landed homes in the Cove were tallied up, China buyers accounted for a hefty 60 per cent (12 deals) of all foreign buyers there in the first half of the year, up from 38 per cent (nine deals) for all of last year.
Chinese buyers have shown a clear preference for the landed homes, which tend to be more expensive than apartments there.
DTZ said this is because the place offers them the opportunity to own landscaped grounds with waterfront facing in a resort-style living environment, and at prices lower than similar properties in mainland China and Hong Kong.
Chinese buyers' share of total foreign purchases across Singapore rose to 17 per cent in the first half of the year, from 7 per cent in 2006. Foreigners include Singapore permanent residents (PRs).
But overall, they are still No. 3 among foreign buyers here, after Indonesians in second place and Malaysians at the top.
Malaysians and Indonesians accounted for around 22 per cent and 18 per cent respectively of total deals by non-Singaporeans in the first half of this year.
Still, foreign buyers, not including PRs, are certainly not rushing into the market here. Their share of total deals in the second quarter was stable at 11 per cent. They remained cautious, owing to slow economic growth in the United States and Europe, said DTZ.
Singaporeans accounted for a higher proportion of private home purchases in the second quarter, at 74 per cent of total deals, up from 71 per cent in the first quarter, it said. Meanwhile, Singapore PRs accounted for 13 per cent of total deals in the second quarter, down from 15 per cent in the first, while purchases by companies were unchanged at 2 per cent.
China buyers have made headlines with some notable purchases recently, such as the $36 million purchase of a Sentosa Cove bungalow in June this year. DTZ said this is largely due to their increasing wealth and mobility on the global scene. They are also attracted to the transparent and well-regulated Singapore market.
Also, many in China come to Singapore to work, or they want their children to study here, because of the relative ease of adjusting to the culture and the bilingual environment in Singapore. This may lead them to buy homes, to live in or for investment, said DTZ head of South-east Asia research Chua Chor Hoon.
Rising real estate prices and property purchase curbs in China have also motivated its citizens to look to overseas markets for diversification and investment opportunities, Ms Chua said.
Savills Singapore prestige homes and investment director Steven Ming said Singapore is the main Asian market Chinese buyers are keen on, though they are also looking at markets elsewhere, such as Britain.
'The Chinese buyers are still active. Some of them are now in the market looking for bulk purchases of condominium units,' Mr Ming said.
The DTZ report said that when it comes to non-landed homes, Chinese buyers generally prefer districts 15, 16 and 23.
Singapore PRs from China generally like homes in districts 22 and 23 such as Jurong and Choa Chu Kang as they are near a number of their workplaces.
On the other hand, well-to-do Chinese buyers are attracted to prime districts 9, 10 and 11 as well as waterfront areas in Sentosa Cove and district 15 in the east.
joyceteo@sph.com.sg
China buyers are tops in Sentosa Cove
They form biggest group of foreign purchasers there this year; many snap up landed homes
By Joyce Teo
BUYERS from China now comprise the largest group of foreign buyers in the exclusive residential enclave of Sentosa Cove.
In the first half of this year, Chinese buyers accounted for nearly a third of all foreign buyers - well up from 18 per cent for all of last year and just 7 per cent in 2008, according to a new DTZ report yesterday.
Malaysians were the largest group at the gated community last year, and Indonesians held the title back in 2008, the property consultancy said.
The buying surge from China is even more dramatic for landed homes there. When purchases of landed homes in the Cove were tallied up, China buyers accounted for a hefty 60 per cent (12 deals) of all foreign buyers there in the first half of the year, up from 38 per cent (nine deals) for all of last year.
Chinese buyers have shown a clear preference for the landed homes, which tend to be more expensive than apartments there.
DTZ said this is because the place offers them the opportunity to own landscaped grounds with waterfront facing in a resort-style living environment, and at prices lower than similar properties in mainland China and Hong Kong.
Chinese buyers' share of total foreign purchases across Singapore rose to 17 per cent in the first half of the year, from 7 per cent in 2006. Foreigners include Singapore permanent residents (PRs).
But overall, they are still No. 3 among foreign buyers here, after Indonesians in second place and Malaysians at the top.
Malaysians and Indonesians accounted for around 22 per cent and 18 per cent respectively of total deals by non-Singaporeans in the first half of this year.
Still, foreign buyers, not including PRs, are certainly not rushing into the market here. Their share of total deals in the second quarter was stable at 11 per cent. They remained cautious, owing to slow economic growth in the United States and Europe, said DTZ.
Singaporeans accounted for a higher proportion of private home purchases in the second quarter, at 74 per cent of total deals, up from 71 per cent in the first quarter, it said. Meanwhile, Singapore PRs accounted for 13 per cent of total deals in the second quarter, down from 15 per cent in the first, while purchases by companies were unchanged at 2 per cent.
China buyers have made headlines with some notable purchases recently, such as the $36 million purchase of a Sentosa Cove bungalow in June this year. DTZ said this is largely due to their increasing wealth and mobility on the global scene. They are also attracted to the transparent and well-regulated Singapore market.
Also, many in China come to Singapore to work, or they want their children to study here, because of the relative ease of adjusting to the culture and the bilingual environment in Singapore. This may lead them to buy homes, to live in or for investment, said DTZ head of South-east Asia research Chua Chor Hoon.
Rising real estate prices and property purchase curbs in China have also motivated its citizens to look to overseas markets for diversification and investment opportunities, Ms Chua said.
Savills Singapore prestige homes and investment director Steven Ming said Singapore is the main Asian market Chinese buyers are keen on, though they are also looking at markets elsewhere, such as Britain.
'The Chinese buyers are still active. Some of them are now in the market looking for bulk purchases of condominium units,' Mr Ming said.
The DTZ report said that when it comes to non-landed homes, Chinese buyers generally prefer districts 15, 16 and 23.
Singapore PRs from China generally like homes in districts 22 and 23 such as Jurong and Choa Chu Kang as they are near a number of their workplaces.
On the other hand, well-to-do Chinese buyers are attracted to prime districts 9, 10 and 11 as well as waterfront areas in Sentosa Cove and district 15 in the east.
joyceteo@sph.com.sg
TODAY ONLINE : Pasir Panjang apartment block up for en bloc sale
Pasir Panjang apartment block up for en bloc sale
05:55 AM Aug 24, 2010
by Ephraim Seow Siew Lee
SINGAPORE - A 16-unit walk-up apartment block in Pasir Panjang has been put up for collective sale for between $26 million and $30 million in the latest addition to the en bloc revival.
The freehold site, at 252 to 258 Pasir Panjang Road, is near the future Haw Par Villa MRT Station and covers 28,263 square feet.
Under the Urban Redevelopment Authority's 2008 Master Plan, it is zoned for residential development with a gross plot ratio of up to 1.4 and an allowable height of up to five storeys.
The total gross floor area allowed is about 43,523 sq ft, after including the additional 10 per cent balcony space, according to marketing agent Credo Real Estate.
The asking price "translates to a land rate of approximately $597 psf to $689 psf on potential GFA, including balconies", said Mr Karamjit Singh, managing director of Credo.
He added that there would be no development charge. Credo said the site may be configured into about 40 apartment units with an average size of 1,000 square feet.
Ms Christina Sim, director of investment at Cushman and Wakefield, says the asking price is reasonable since the site is freehold and close to major research and educational institutions like Science Parks 1 and 2 and the National University of Singapore.
The tender closes on Sept 23.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Aug 24, 2010
by Ephraim Seow Siew Lee
SINGAPORE - A 16-unit walk-up apartment block in Pasir Panjang has been put up for collective sale for between $26 million and $30 million in the latest addition to the en bloc revival.
The freehold site, at 252 to 258 Pasir Panjang Road, is near the future Haw Par Villa MRT Station and covers 28,263 square feet.
Under the Urban Redevelopment Authority's 2008 Master Plan, it is zoned for residential development with a gross plot ratio of up to 1.4 and an allowable height of up to five storeys.
The total gross floor area allowed is about 43,523 sq ft, after including the additional 10 per cent balcony space, according to marketing agent Credo Real Estate.
The asking price "translates to a land rate of approximately $597 psf to $689 psf on potential GFA, including balconies", said Mr Karamjit Singh, managing director of Credo.
He added that there would be no development charge. Credo said the site may be configured into about 40 apartment units with an average size of 1,000 square feet.
Ms Christina Sim, director of investment at Cushman and Wakefield, says the asking price is reasonable since the site is freehold and close to major research and educational institutions like Science Parks 1 and 2 and the National University of Singapore.
The tender closes on Sept 23.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
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