BT : Change property agents' income structure: panel

Business Times - 06 Oct 2010

Change property agents' income structure: panel

THE compensation structure for real estate agents here remains a hindrance to making the industry more professional, panellists at a congress said yesterday.

Most property agents in Singapore get a lot of their income from commissions, which can drive them to try to close sales at the expense of customers' interests, the panellists said.

'As long as the compensation package drives you the other way, it is very hard for you to be professional,' said Far East Organization's chief operating officer Chia Boon Kuah.

Leong Sze Hian, immediate past-president of the Society of Financial Service Professionals and a Wharton Fellow, agreed.

He reckons a minimum wage system would help somewhat.

'As long as you have a lot of people who don't earn enough to make a decent living, or who have to make a decent living in a way that loses the trust of the customers, then how can you be professional?' Mr Leong asked a room full of estate agents.

Mr Chia and Mr Leong were part of a panel on developing world-class real estate professionals in Singapore at the inaugural International Real Estate Congress.

The congress is jointly organised by the Singapore Institute of Surveyors and Valuers (SISV) and Singapore Accredited Estate Agencies (SAEA).

The other two panellists - PropNex chief executive Mohamed Ismail and ERA Asia-Pacific associate director Eugene Lim - said growing the public's trust in the profession is crucial.

Most panellists and real estate professionals are hopeful that the government's move to set up a statutory board - the Council for Estate Agencies - to regulate the industry will ensure that property firms and agents have the knowledge to provide professional service while working ethically.

They noted that this is especially important as the real estate markets become more globalised.

In recent years, foreigners have shown an increasing interest in real estate in Singapore and other Asian cities such as Shanghai and Beijing, said Senior Minister of State for National Development and Education Grace Fu at the opening of the congress yesterday.

'To serve an increasingly diverse global clientele, the role of the real estate professional will have to evolve to encompass regions beyond the local market,' Ms Fu said.

'With a global real estate market, real estate practitioners will need to possess the requisite knowledge on legislation and policies of many countries.'

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Mr Chia: 'As long as the compensation package drives you the other way, it is very hard for you to be professional.'

ST : Shunfu HUDC flat sells for $1.1m

Oct 6, 2010

Shunfu HUDC flat sells for $1.1m

Record deal done in July, before new rules

By Esther Teo

AN OLDER HUDC flat at Shunfu Road has been sold for $1.1 million, a record high in Bishan for this phased-out type of Housing Board (HDB) project.

At least two other similar-sized HUDC flats have sold for slightly higher prices, but they featured condominium-like facilities not on offer at the Shunfu Road flat.

The 1,668 sq ft apartment on a high floor of Block 315 sold at $659 per sq ft (psf). It won HDB resale approval last month but was sold in July, before government cooling measures took effect.

ERA senior marketing director Sandy Lim, the agent who brokered the deal, said the home was valued at about $900,000, which means an impressive $200,000 cash-over-valuation (COV).

She said the buyers, Singaporeans, liked the flat's location and spaciousness, even though it was close to its 'original condition'. The buyers also agreed to pay the $30,000 in privatisation costs.

The estate, at blocks 314 to 319, is set to be privatised by the end of the year.

HUDC flats were built in the 1970s and 1980s as an option for middle-income citizen families. HDB phased out building them in 1987 as demand fell. There are 18 HUDC estates comprising 7,731 residential and 23 shop units. All but Braddell View have been privatised or identified for privatisation.

The latest price has raised eyebrows as it is unlike Braddell View, which has a clubhouse and swimming pool despite not being privatised yet.

Two 1,701 sq ft Braddell View HUDC flats at Block 10H sold for $1.2 million each in June and August this year.

A check on HDB's website showed that the Shunfu HUDC estate has seen a premium in prices over neighbouring HDB flats, even though the latter might be closer to Marymount MRT station. For example, a slightly larger 1,701 sq ft HDB maisonette at nearby Block 301 sold for only $760,000.

Experts are surprised at the $1.1 million price, but say the city-fringe location, its imminent privatisation and collective sale potential could be key to the result.

Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said $1.1 million was a high price to pay for an older flat that had only about 75 years left on its lease.

'The buyer is probably paying for the en bloc potential of the estate and also the generous space of HUDC flats that you can't find anywhere else these days,' he said.

Mr Eugene Lim, ERA Asia Pacific associate director, agreed the rarity of such large format units was a key reason for the bumper price. He added that the value of an HUDC estate would probably rise by at least 8 per cent to 10 per cent once privatised.

'The increase will probably come after the estate is gated up or, if possible, when a swimming pool, gym or clubhouse is built...This work to enhance the property will definitely make the estate more appealing,' he said.

ERA's Ms Lim said she is currently marketing another 1,646 sq ft HUDC unit in the Shunfu estate for $1.28 million. This unit, however, is fully renovated with designer furnishing, she said.

A resident at Block 315, who asked to be known only as Mr Lim, said he was unlikely to sell his 1,770 sq ft flat as it was in 'a very nice neighbourhood'. 'We have seen fliers in the past on sales transacting at over $1 million, but we didn't know whether to believe it...I might sell if an en bloc offer with the right price comes along, but probably not individually.'

Privatisation means HUDC residents become owners of their units as well as the common property, and so have better control over the running of their estate.

They will also no longer be subject to HDB's housing policies such as having to seek approval to sublet their flats.

HDB said in July that privatisation costs that owners might incur - legal and survey fees, for example - will be capped at $30,000 per flat for the Shunfu estate.

esthert@sph.com.sg



A 1,668 sq ft unit at this Shunfu Road block sold for $659 per sq ft. The HUDC estate is set to be privatised by the end of the year. -- ST PHOTO: MARYANNE TAN

ST : Two more exec condo sites up for tender

Oct 6, 2010

Two more exec condo sites up for tender

Bt Panjang, Tampines sites to yield 1,095 units; cautious response likely

By Harsha Jethnani

LAND parcels earmarked for two executive condominium (EC) projects have been launched by the Housing Board.

This follows keen interest in the first EC in five years, Esparina Residences near Buangkok MRT station, which was open for viewing last week.

ECs, the poshest type of public housing, include some condo-style facilities while HDB rules still apply.

The two 99-year leasehold sites are located at Tampines Avenue 8 and Segar Road in the Bukit Panjang area.

The 20,600 sq m Tampines site, near the Bedok Reservoir area, could yield 525 units while the second 20,834 sq m site, next to Segar LRT station, can yield 570 units, HDB said in a statement yesterday.

The tender for the Tampines site will close at noon on Nov 23 while the Segar Road tender will close on Dec 2. Both are under the Government land sale's confirmed list for the second half of this year.

To continue meeting the strong demand for private housing, HDB also said that the Urban Redevelopment Authority will be releasing another two sites for residential development - at Punggol Central and Seletar Road - this month.

Last week, when Esparina Residences went on sale, more than 300 buyers visited the showflat, with 220 registering interest in an upcoming ballot to book a preferred unit in the 573-unit development.

Developers, however, seem to be more cautious and selective in choosing sites.

Colliers International's director for research and advisory, Ms Tay Huey Ying, expects the response to the latest EC sites to be 'lukewarm'.

'We've already seen developers' interest in residential developments simmering down from the last few tender exercises,' Ms Tay told The Straits Times.

Last month, the tender for a site in Punggol drew just four bids, with the highest bid of $136.2 million among the lowest of top bids for such sites this year.

Last week, a condominium plot in Pasir Ris also drew just four bids and relatively modest offers.

Mr Ong Teck Hui, Credo Real Estate's executive director of research and consultancy, said: 'The trend of subdued cautious bidding is likely to continue.'

Mr Nicholas Mak, executive director of SLP International Property Consultants, said developers are aware that more land sites are oncoming, 'so they are getting more and more choosy'.

harshamj@sph.com.sg

ST : HDB flat owners turn 'hoteliers'

Oct 5, 2010

HDB flat owners turn 'hoteliers'

Practice is illegal and owners risk fine or losing their flats, says board

By Mavis Toh

ROOMS in some Housing Board (HDB) flats are being marketed like hotel rooms to tourists looking to save money on accommodation.

About 50 posts can be found in room rental and classifieds sites online, offering such rooms. As with hotels, rates are higher on weekends. Housekeeping is available, for an extra fee, as is an airport pick-up.

Tourists on short-term visits have their pick of rooms across the island - from Kallang and Geylang to Jurong and Sengkang. The posts state the location, 'room rate' and facilities; some even come with photographs to give interested parties a preview.

The problem: It is all illegal.

When contacted, HDB said its flats are not to be let out to tourists, and home owners who do this risk being fined and served compulsory acquisition orders.

The spokesman said the board has received queries from flat owners about subletting rooms to tourists, but has advised them against doing it.

'A tourist's length of stay is usually short, and the turnover of such 'occupiers' is expected to be high. This may lead to high human traffic to and from the flat, which will disrupt the pleasant living environment and ambience in our HDB estates,' the spokesman said.

The board added that subletting of rooms to 'non-approved sub-tenants' like tourists is an infringement of the lease and the board can take stern action through a fine or even a compulsory acquisition of the flat.

Asked whether any home owner has been penalised for this so far, HDB said the figure was not available.

Meanwhile, some home owners are making money on the side this way.

On one website, a home owner said he was looking to let three of the four bedrooms in his 1,184-sq-ft apartment in the west, which he shares with his wife. They have no children.

In their flat, the rooms set aside for paying guests are even named - Belgium Suite, Snow White Suite and Little Swedish, which he claims are as clean as those in 'a typical five-star hotel'.

He charges a daily rate of between $52 and $82. His 'guests' pay a cleaning fee of up to $132, and $28 for an airport pick-up.

Payments, due before check-in, are only in cash or by bank transfer.

When The Straits Times asked whether rooms were available for the week, the owner said it was a full house.

'Recently it's been quite packed, perhaps because of F1,' he said, adding that he has been letting out the rooms to supplement the family income for three years.

Beyond the money, he said, it has been interesting getting to know people from other cultures; he has had guests from Japan, France and Germany, all of whom booked his rooms online.

Over in Jurong West, a part-time tutor is making available two bedrooms in her maisonette. Bookings are for at least seven days, at $50 a day.

Many other advertisements to which The Straits Times responded were placed by owners or occupiers from India, the Philippines and China, who target their fellow countrymen here to look for work or on holiday.

A Hong Kong woman who stayed in one such 'vacation home' in Redhill this year said she was put off by the cost of a hotel room.

'The rooms in Singapore are at least $200 per night - too expensive for a short break in a nearby country. I paid only $60 a night for the flat,' said the 26-year-old, who wanted to be known only as Ms Shum.

For that price, she said, she got a clean room and even tips on the sights she should catch while in town.

mavistoh@sph.com.sg



A room in Bukit Batok advertised on a website. Often these ads target tourists - a move which the HDB says is an infringement of the lease and could lead to a fine or even a compulsory acquisition of the flat. -- PHOTO: GUMTREE.SG

ST : Slower sales despite crowded showflats

Oct 5, 2010

Slower sales despite crowded showflats

Experts blame the uncertainty created by cooling measures

By Esther Teo

NEWER showflats were chock-a-block across the island over the weekend but home seekers have turned wary and were in a look-but-don't-buy mood.

Sales eased with experts blaming the uncertainty created by the recent cooling measures implemented during a period of record prices.

DMG and Partners analyst Brandon Lee added that in the mass market, 'while interest has not waned substantially, take-up rate has slowed, reflecting a more cautious, wait-and-see approach'.

Weekend sales reflect the new mood. Developer Hoi Hup Sunway sold almost 90 units at the soft launch for Vacanza@East at Lengkong Tujoh last Tuesday but only about 20 sales have been registered since, even though the showflat was crowded over the weekend. The 473-unit project has racked up total sales of 110 units.

Mr Lee said take-up for the freehold project was tepid due mainly to the Government's recent measures, the project's location - it is about 1km away from Kembangan MRT station - and its premium pricing.

'Overall pricing of $1,100 psf represents a 38 per cent premium over the $800 psf fetched by nearby projects such as Grosvenor View and Starville... completed in 2006.'

City Developments' 642-unit NV Residences in Pasir Ris, on the market since Aug 30, has sold 358 out of the 400 units released, with 23 sales made last week. NV sold 250 units within the first week of its preview about a month ago.

There were about five sales at high-end Twin Peaks at Leonie Hill Road over the weekend, with more than half of the 70 units released at the 99-year leasehold condo sold since its launch two weeks ago.

Market sentiment will be tested again on Saturday when Far East Organization holds a preview for invited guests at its 999-year leasehold The Lanai in Hillview Avenue.

There seems to be more buoyancy in the HDB sector.

Esparina Residences, an executive condominium project near Buangkok MRT station, is said to have received almost 1,000 potential buyers registering interest on Friday in a ballot to book a preferred unit.

Experts say that many buyers, anticipating further price falls in the wake of more launches in the private market, are in no hurry to open their cheque books, although they will be happy doing some window shopping.

'We can expect reasonably crowded showflats, but no one's going to be in a rush to sign on the dotted line,' said OrangeTee's head of research and consultancy Tan Kok Keong.

Cushman & Wakefield's senior manager of Asia-Pac research, Mr Ong Kah Seng, said some projects have received encouraging buying interest.

'There are a number (of buyers) still interested... but are increasingly evaluating the decision to buy given the restrictions in re-selling,' he added.

esthert@sph.com.sg


--------------------------------------------------------------------------------

LOTS OF WINDOW SHOPPING

'We can expect reasonably crowded showflats but no one's going to be in a rush to sign on the dotted line.'

OrangeTee's head of research and consultancy Tan Kok Keong

ST : Demand eases for BTO flats

Oct 5, 2010

Demand eases for BTO flats

New project draws fewer than 3,000 bids, about 2 per unit

By Daryl Chin



A WOODLANDS build-to-order (BTO) project has attracted fewer than 3,000 applications for 1,329 flats, or about two buyers per unit - the lowest demand for a BTO launch in recent years.

As of 5pm yesterday, demand was highest for the bigger flats, with 1,521 out of the total 2,857 applications for 569 four-room units, and 749 bids for 210 five-room flats. Applications closed yesterday at midnight.

The numbers are similar to those for the last BTO project, Yishun Riverwalk, which concluded last month. It averaged about three applications per unit, well below the ratio seen in past BTO launches.

For example, in May, projects Punggol Emerald and Punggol Waves saw application numbers reach up to six times the 1,429 units on offer.

Analysts The Straits Times spoke to said the lower number of applications for both the Woodlands and Yishun developments may be an indication that first-timers are returning to the resale market.

'This is the type of demand you should see realistically,' said PropNex corporate communications manager Adam Tan. 'An oversubscription of about six times would be an indication that supply is severely lacking.'

He added that since new measures to cool the market were introduced at the end of August, cash-over-valuation (COV) amounts have been dropping.

According to PropNex's most recent transactions, COV sums have fallen about 20 per cent to 30 per cent. The median COV amount for the second quarter, according to the Housing Board, was $30,000.

Mr Tan said: 'Many buyers are holding out in hopes that resale flat prices will go down further.

'If prices and COV do not drop to their expected levels by the first quarter, some buyers may return to look at BTO flats.'

ERA Asia Pacific associate director Eugene Lim said buyers near the $6,000 to $10,000 monthly income ceiling might find design, build and sell scheme (DBSS) and executive condominium (EC) flats more appealing than the standard flats offered this time round.

Under the DBSS and EC schemes, public housing flats that are developed and built by private developers come with condo-like finishes.

'Woodlands has one of the largest transaction volumes for resale flats, so a buyer is likely to purchase one if he can get the COV down to a level he is comfortable with, rather than waiting three years for the BTO flats,' said Mr Lim.

Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said another possibility could be the sheer number of BTOs being launched by the Government to sate demand. The total number of flats put up for sale by the HDB stands at 14,200, almost twice the BTO supply for the whole of last year.

'It might still be too early to tell if this is a result of the recent HDB rule changes,' he added. 'The location could be a factor for some, so buyers are waiting for BTOs in other locations before they decide to buy.'

One such buyer is first-timer Jack Foong. The 29-year-old has been house-hunting for the past year, balloting five times unsuccessfully for developments in the Punggol area.

Said the civil servant: 'My girlfriend and I are looking for waterfront living near the outskirts of the city. Those units at Woodlands are just too far, and you still need to take a bus to reach the train station.'

darylc@sph.com.sg


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DIP IN BIDS

· WOODLANDS (Oct)

Total applications: 2,857

Total available units: 1,329

· PUNGGOL (May)

Total applications: About 9,000

Total available units: 1,429

ST : Little Thailand to be moved across road

Oct 3, 2010

Little Thailand to be moved across road

New park, with sepak takraw courts and other facilities, for Thai workers to enjoy

By Rachel Chang

After years of complaints from residents, grassroots leaders in Kampong Glam have a plan to 'move' Little Thailand.

The popular haunt of hundreds of Thai workers is a Housing Board estate located across the road from the Golden Mile Complex.

The workers gather there on weekends, occupying void decks, playgrounds and common areas.

Residents allege the workers litter, play loud music late into the night, drink alcohol and relieve themselves in the drains.

These workers play an important role in Singapore, acknowledged the chairman of Kampong Glam's Citizens' Consultative Committee, Mr Woon Tai Hean.

'But while the whole of Singapore benefits from their work, we carry the national burden in Kampong Glam,' he added.

Now, after years of lobbying, the area's grassroots leaders are renting from the Singapore Land Authority (SLA) a small plot of land next to the Golden Mile Complex. The hope is that the Thai workers will migrate across the street to the grounds, named Harmony Park, and residents will finally be placated.

Grassroots leaders obtained a grant of about $400,000 from the National Development Ministry's Community Improvement Projects Committee, to pay for landscaping, fencing, and facilities such as sepak takraw courts, a miniature football field and pavilions for shelter.

By the end of the year, there will also be food stalls and Thai movie screenings at night.

The Sunday Times understands the use of the land was approved by the SLA a year ago, after endorsement by the ministries of manpower and trade and industry - two government bodies directly involved in regulating foreign labour.

The problem of 'Little Thailand' arose about 15 years ago.

Until then, Thai workers would gather on weekends at a sprawling grassy area next to Golden Mile Complex, known as Crawford Park.

They were, however, driven from it by the construction of a tunnel leading to Nicoll Highway.

They began congregating across the street at HDB blocks, where a cluster of shops selling Thai food and goods soon sprang up.

Mr Woon acknowledged they were not doing anything wrong in congregating in a common area.

'That is the behavioural norm in their country,' he said. However, he added that residents did not feel safe walking home through the mass of workers.

Many attempts have been made to address residents' concerns.

A year ago, Aetos security officers, paid for by the Ministry of Manpower, began to patrol the area to ensure orderly behaviour.

The town council also schedules cleaning on weekend afternoons, which leaves the floors wet and discourages the workers from sitting there. Residents said these measures had improved the situation, but not solved the problem.

With Harmony Park, grassroots leaders hope they have found the answer. In time, they hope the park can become self-funded, with the rental fees from vendors paying for its maintenance.

They also hope residents will use Harmony Park on weekdays, making it a 'win-win situation'.

An advocacy group, Transient Workers Count Too, welcomed the idea. Said its executive director, Vincent Wijeysingha: 'Given their extremely low wages, the workers are priced out of most social and sporting venues... this space will be close to them and accessible.'

rchang@sph.com.sg

ST : Leasing out a shoebox flat

Oct 3, 2010

property

Leasing out a shoebox flat

While Mickey Mouse flats may be relatively affordable, buyers should be aware that rents depend on location and proximity to amenities

By Joyce Teo

Buying a shoebox apartment for lease sounds like a very attractive proposition because such units are relatively more affordable. But investors should know what to expect because not everyone will want to rent such small units, experts said.

A record number of these small-format homes - also known as Mickey Mouse flats - have been sold in the first three quarters of the year, and at higher and higher prices.

The sale of 906 apartments of 500 sq ft and below in that period is 84 per cent higher than that in the same period last year, said CBRE Research, citing URA Realis. This has also exceeded the full-year sale of 722 units last year, it said.

Median prices of such homes have risen to $1,314 per sq ft (psf) so far this year, from $1,190 psf last year, and asking rents on a psf basis are comparable to those for prime developments in town.

'At first glance, investing in shoebox apartments might appear to be an attractive proposition due to the relative quantum affordability and rental yields,' said CBRE Research executive director Li Hiaw Ho.

However, the rents will depend on many factors, such as location, proximity to amenities, and demand and supply conditions, he said.

Currently, some owners of one-bedroom and studio units in projects such as Kembangan Suites in Kembangan, Parc Imperial in Pasir Panjang and Soho 188 in Race Course Road are asking for rents of $2,000 to $3,600 a month.

In July, a 431 sq ft one-bedroom unit in Urban Lofts in Rangoon Road was leased out at $2,400 a month, while a similar-sized one-bedroom unit at Mountbatten Lodge in Mountbatten Road went for $2,300 a month.

Based on current valuations, indicative gross rental yields for shoebox units are estimated at 3 per cent to 5 per cent, said CBRE Research.

'These figures, however, do not take into account the utility and condo management fees, insurance, mortgage interest payments, property taxes and maintenance charges - all of which will make the net yield considerably lower,' said Mr Li.

ECG Property chief executive Eric Cheng said most people buy shoebox units to lease out but they should be aware that any rental projection given at the launch may not pan out.

For instance, when a project in the Thomson area was launched a few years ago, the rentals were projected at $3,500 to $4,500 a month, but the transacted rents now are more like $1,800 to $2,600 a month, he said.

Cushman & Wakefield's senior manager of Asia-Pac research, Mr Ong Kah Seng, said a large supply of shoebox apartments is scheduled for completion, and rents may come under pressure as leasing competition intensifies.

Also, while tiny apartments seem suitable for single expatriate tenants, not all will want to pay so much for a small unit unless it is in a prime area, or conveniently located near an MRT station, experts said.

Said Mr Ong: 'Owners of shoebox apartments... can at best rely on junior expatriates, besides local professionals.'

But since junior expatriates are cost-sensitive, they may be open to HDB flats which are conveniently located and offer a larger space for nearly the same rent as that for a shoebox apartment, he said.

Yet, CBRE Research found that more people are paying higher prices for a shoebox unit during new launches.

Buyers picked up 383 new shoebox units which cost $600,000 and above in the first nine months of this year, compared with 133 last year and 121 in 2008.

Experts said the question is whether these units can support even higher rentals when they are completed.

The introduction of cooling measures by the Government in late August has also affected the 'flippers'. Extending the imposition period of the sellers' stamp duty of about 3 per cent from one to three years makes it less lucrative for speculators to flip a unit, experts said.

Previously, investors could make significant capital gains from shoebox units with just a small investment sum and a short holding period.

Of the shoebox units launched last year, 66 units were sold in the first eight months of the year for capital gains of $6,400 to $232,000, said CBRE Research.

But for projects launched this year, only four units were sold and gains were in the $9,400 to $101,000 range, it said.

The 'already high buy-in prices' during a new launch might make it hard for an investor to sell it later at higher prices unless it is in a prime location, said Mr Li.

In the next few months, about 10 projects with mainly small-format units are expected to be launched. Apart from one in River Valley Road, the rest are in suburban areas such as Geylang and Eunos, said CBRE.

joyceteo@sph.com.sg


--------------------------------------------------------------------------------


Renting it out

'Owners of shoebox apartments...can at best rely on junior expatriates, besides local professionals.'

MR ONG KAH SENG, Cushman & Wakefield's senior manager of Asia-Pac research, who added that junior expatriates may also consider bigger HDB flats for the same rent



While buyers are paying more for shoebox apartments, rental projections at the launch may not always pan out. -- ST FILE PHOTO

ST Forum : Hard to spot home loan changes

Oct 2, 2010

Hard to spot home loan changes

IN MARCH 2004, I refinanced my HDB home loan with HSBC's Smartmortage package, which offered an interest offset feature with a linked current account.

I meticulously checked the loan terms with the bank officer and asked her why the agreement gave the bank a unilateral right to vary any condition, thereby defeating the purpose of signing a contract. Her reply was that it was industry practice.

Early last month, I wrote in to redeem the loan as I had sold my house. Later, I was puzzled to see interest debit costs charged to my account in my latest statement.

The bank replied that there was a standard term that allowed interest to be levied during the three-month redemption notice. I could not find such a condition in my loan agreement. On Wednesday, HSBC indicated where it was: in a few sentences included in several monthly statements in 2008, stating an amendment.

When a customer receives a monthly statement, his focus will be on checking the accuracy of the figures. Now he must check for amendments to the loan agreement as well.

Signing a long-term loan, such as a home loan, with a bank seems like signing a blank sheet of paper where the bank can change the conditions unilaterally at any time.

Mohamed Rafiq Hamjah

ST Forum : Market will fix commission rates

Oct 2, 2010

Market will fix commission rates

WE THANK Miss Koh Wee Leng for her feedback ('Confused over stand on fixed commission rates'; Sept 18). The Council for Estate Agencies, when it is set up, will not prescribe commission rates, but will instead allow them to be determined by market forces. Estate agents will then have the right incentive to price their services competitively, and consumers can negotiate the best rates.

In general, the Competition Act prohibits market players from fixing prices. The Competition Commission of Singapore ruled earlier that the Institute of Estate Agents' guidelines for professional fees, commission for estate agents and salespersons would likely infringe the Act, and advised that estate agents and salespersons set their fees and fee structures independently.

Although the guidelines are non-binding, they may still discourage price competition below the recommended rate and facilitate price coordination. More efficient estate agents, who can charge lower rates, would then have little incentive to do so. The institute voluntarily withdrew the guidelines shortly after the ruling.

Consumers should compare fees and services before deciding on their choice of agent and negotiate fees and terms to facilitate and encourage competition. To let consumers make informed choices, agents can provide a breakdown of their fees vis-a-vis the level of services and options they provide.

Cheryl Lim (Ms)
Deputy Director
(Regulatory Control)
Ministry of National Development

ST : Private home prices rise at slower rate

Oct 2, 2010

Private home prices rise at slower rate

High asking prices put off buyers even before govt measures kicked in

By Joyce Teo

THE heat started coming out of the private homes market even before the Government imposed cooling measures on Aug 30.

Some buyers have been holding fire for a couple of months at least, deterred by sky-high asking prices, especially in the mass market.

Private home prices rose 3.1 per cent in the three months to Sept 30, according to flash estimates from the Urban Redevelopment Authority (URA) yesterday, down on the 5.3 per cent increase in the previous quarter.

The estimates capture mainly transactions in July and August before the measures took effect. The data will be updated four weeks later.

Price rises have moderated over the past four quarters, but private home prices are still up 14.7 per cent in the first nine months of the year.

This puts the URA residential price index at 4.7 per cent above its all-time peak in the second quarter of 1996.

CBRE Research said the continuing upward trend in prices was 'probably due to the strong sales momentum in July and August, as the market slowed down from September after the government introduced the property measures'.

Yesterday's flash estimates showed that prices of non-landed private homes rose by 1.6 per cent in the city centre and 2.4 per cent in the city fringes and suburban areas.

City fringe prices have shot up 15.6 per cent this year while they are up 12.9 per cent in suburban spots and 11.7 per cent in the city centre.

CBRE Research said the stronger price growth in the city fringes and suburban areas could be due to the higher price benchmarks set by successful new launches such as The Scala, The Greenwich, Viva Vista and NV Residences.

But overall, buyers have become more price-resistant in the mass market segment, say experts.

Colliers International's director for research and advisory, Ms Tay Huey Ying, said the Aug 30 measures were more pre-emptive in nature and would hit sales numbers first.

Indeed, Jones Lang LaSalle (JLL) said that sales volume seems to be consolidating, with private home transactions in the third quarter possibly dropping by about 30 per cent from the second quarter.

The latest cooling measures will be more effective in shrinking demand and so are expected to curb overall price growth, said JLL's head of research for South-east Asia, Dr Chua Yang Liang.

The number of home sales in the fourth quarter will be far lower than in the first three quarters of the year, said CBRE Research.

But new projects near MRT stations are still expected to do well and prices overall will still be up about 15 per cent for the year, it added.

Ms Tay reckons that prices may stay flat or rise by just 2 per cent in the fourth quarter and be stable in the first quarter of next year.

'Price resistance is still there and there's the traditional slowdown during the year-end period, compounded by the cooling measures,' she said.

joyceteo@sph.com.sg


--------------------------------------------------------------------------------


Prices may stay flat or rise by just 2 per cent in the fourth quarter and be stable in the first quarter of next year, said Colliers International's director for research and advisory, Ms Tay Huey Ying.

ST : HDB resale deals fall 25% after new rules

Oct 2, 2010

HDB resale deals fall 25% after new rules

Fewer homes changed hands last month compared to August

By Jessica Cheam



NEW measures to cool the sizzling property market have already made an impact with sales down, prices and cash-over-valuations (COVs) moderating and buyers taking a breather.

Official estimates released yesterday point to a slowing market in both the private and Housing Board (HDB) segments with experts tipping that the pace will slow further as the year draws to a close.

HDB said yesterday that 'the impact of the measures is not fully reflected in the data yet' as most of its third-quarter transactions were submitted before the new rules were announced.

Nonetheless, it estimated that transactions of HDB resale flats fell an estimated 25 per cent last month compared with August. As a result, an estimated 8,200 homes changed hands in the three months to Sept 30, or 10 per cent fewer than the previous quarter.

The measures cooled a market that rose 4 per cent to another new record in the two months before the latest measures were announced.

The market has now seen nine straight quarters of record prices. Prices had risen 4.1 per cent in the second quarter compared to the first.

There was no official indication yesterday as to what happened to prices last month. But one agency boss reckoned they had softened about 5 per cent.

The story is more sombre in the private property market, with price rises moderating even before the measures were implemented.

Urban Redevelopment Authority (URA) estimates showed prices rose 3.1 per cent in the third quarter, down from a 5.3 per cent rise in the previous quarter.

Property agencies said their own data confirmed last month's slowdown in the HDB resale market.

ERA Asia Pacific's sales volume last month fell by almost 30 per cent over August while at PropNex, third-quarter volumes fell 35 per cent compared with the second.

Agency bosses say the new rules have hit demand in the resale market as permanent residents and private property owners have been effectively shut out of the sector by tough ownership restrictions.

HSR Property Group chief executive Patrick Liew said sales at his agency dipped 10 per cent in the past month while cash upfront asked by sellers, or COVs, have dropped 15 per cent.

'Sales have slowed because while people are waiting on the sidelines for prices to become clearer, sellers are also not desperate to sell,' he said.

ERA Asia Pacific associate director Eugene Lim said its data showed median COV for resale flats hit a high of $35,000 in August before dropping to $28,000 last month.

The median COV for the second quarter was $30,000, according to the HDB.

Mr Lim added the falling COVs implied they had softened about 5 per cent.

The new rules, which are aimed at halting a property bubble, tighten financing and restrict ownership of HDB flats.

PropNex chief executive Mohamed Ismail added: 'Many upgraders have been stumped by the higher downpayment needed for a second home now.'

Mr Lim estimates that COV could go as low as $10,000 by the end of the year while PropNex's Mr Ismail tips $22,000.

He feels that when the median COV dips below $20,000, buyers will be tempted to return to the resale market.

COV was a major factor for engineer Hildya Yong, 26, and her fiance. They bought a new five-room flat in Sengkang directly from the HDB last week.

'Even though COV is coming down, we still cannot afford it. So we decided to go with a new flat instead,' she told The Straits Times.

The full impact of the measures will be seen only in the fourth quarter, say industry analysts. HSR's Mr Liew predicts that sales and prices will stay flat before picking up next year.

But Mr Nicholas Mak, the executive director of SLP International Property Consultants, said the drop in resale flat sales will hit prices in coming months.

'The impact of the property measures will continue to be felt next year,' he said. 'They are not expected to directly cause prices to fall. However, they could be the catalyst of a decline in prices if there was any weakness in the Singapore economy in the coming year.'

Meanwhile, the HDB will launch 3,400 new flats before the year end and 5,000 in the first quarter of next year.

jcheam@sph.com.sg

ST : Pasir Ris condo plot receives four tenders

Oct 1, 2010

Pasir Ris condo plot receives four tenders

By Joyce Teo

A CONDOMINIUM plot in Pasir Ris attracted four bidders, though the offers were relatively conservative.

The top tender - from a joint venture between Frasers Centrepoint and Far East Organization - came in slightly lower than expected at $151.38 million, or $334.85 per sq ft (psf) per plot ratio (ppr).

That was 7.6 per cent above the $140.69 million offered by a tie-up between Hoi Hup Realty, Sunway Developments and SC Wong Holdings.

Allgreen Properties was next with $131.89 million, with Meadows Investment, a firm owned by Tiong Aik Group executive director Neo Tiam Boon, in fourth place with $106 million.

Property experts said the response shows that developers who lodged bids were in two minds - cautious following the August cooling measures but fairly keen on this particular site even though it is not near an MRT station.

The 99-year leasehold plot at the junction of Pasir Ris Drive 3 and Pasir Ris Drive 4 is a 10-minute walk from the Downtown East lifestyle and entertainment hub. It has a site area of about 20,000 sq m and an allowable gross floor area of 42,000 sq m.

If successful, Frasers Centrepoint and Far East plan to build a 12-storey condo with 11 blocks comprising 400 to 450 units in all and aimed at HDB upgraders.

'The quantum of the bids indicates that the developers are optimistic about this site, given the strong sales at the recently launched NV Residences in Pasir Ris Drive 1, in addition to the sea view for units on the higher floors,' said CBRE Research executive director Li Hiaw Ho.

Before the August cooling measures were introduced, industry sources said the site might not attract strong bids as it was not near an MRT station. One forecast bids of between $350 and $390 psf ppr, although even that proved optimistic.

The bid from Frasers and Far East translates into a break-even cost of $650 to $680 psf, according to CBRE Research. Units in the new project on the site would possibly sell for about $800 psf.

NV Residences nearby reportedly sold around 350 units at the average price of $835 psf last month, it added.

Units in Livia, adjacent to NV Residences, were sold at between $720 and $840 psf in the July to September period.

And units at Oasis @ Elias in Elias Road sold for between $650 and $740 psf in the same period, noted Mr Li.

The Frasers and Far East joint offer was similar to the highest bid some executive condominium sites received in the first half, noted Cushman & Wakefield's senior manager of research, Asia Pacific, Mr Ong Kah Seng.

Lower prices are ultimately beneficial for developers as the break-even price will be lower, he added.

The potential for better profit margins is there should prices not fall significantly, he said.

Developers are increasingly cautious given an expected economic slowdown after robust first-half growth, uncertainties in the wider economy and a temporary slowdown in buying interest, he added.

The HDB said it will evaluate the tender bids and announce the results within two weeks.

ST : Foreigners parking assets for PR must invest $10m

Oct 1, 2010

Foreigners parking assets for PR must invest $10m

Minimum asset value to double from next year under MAS investor scheme

By Teh Joo Lin

FOREIGNERS aiming to become permanent residents in Singapore through a government scheme will have to double the minimum value of assets they park here to $10 million.

The Monetary Authority of Singapore's (MAS) Financial Investor Scheme (FIS) is the second permanent residency programme targeted at wealthy foreigners which has tightened its qualifying criteria recently.

Stricter rules for the Economic Development Board's Global Investor Programme (GIP), some of which kick in today, were reported early this week.

These moves come as the Government acts to better manage the pace and flow of immigrants to address concerns among Singaporeans.

The new FIS rules, effective from Jan 1 next year, require applicants to place at least $10 million in assets for a continuous period of five years, up from a minimum of $5 million previously. The assets must be placed with a financial institution regulated by the MAS, although a portion - up to $2 million - can be used to buy private residential properties.

The MAS declined to comment on the changes. But The Straits Times understands that some banks were notified of the new rules about a month ago.

While the more stringent criteria may dampen response for the PR scheme in the short run, analysts are confident that over time, wealthy individuals will still be attracted to park their funds and settle here.

Bank of Singapore's executive director Lee Woon Shiu told The Straits Times they will 'realise Singapore is a serious private wealth banking hub which doesn't want to attract just a quick inflow of funds'.

'Ten million is a fair amount to attract the right pedigree of clients - not just the newly minted crowd who have struck the jackpot once,' he said.

Other changes to the FIS scheme include allowing the applicant's parents and parents-in-law to apply only for five-year long-term visit passes. Currently, they can be included as part of his PR application if he puts up $2.5 million per parent.

Banks and immigration specialists The Straits Times spoke to expect a surge in applications from China, Taiwan and Indonesia before the changes take effect.

For many prospective FIS applicants, the raised bar was an issue of willingness, not affordability, said Mr Pearce Cheng, an immigration and relocation specialist.

Noting that current applicants generally need a personal net worth of $20 million, he said: 'It could be a turn-off for them to park so much money and be locked in for five years, because there are many other options such as Canada and the United States.'

Sociologist Tan Ern Ser said: 'The point is how you balance the need for good global talent while satisfying local citizens, so maybe they did some linear programming and found this is the optimum solution.'

joolin@sph.com.sg

ST : New Buangkok EC attracts keen interest

Oct 1, 2010

New Buangkok EC attracts keen interest

300 at showflat viewing of first new executive condo project in 5 years

By Esther Teo

HOME buyers showed keen interest at a viewing of Esparina Residences near Buangkok MRT Station yesterday - the first new executive condominium (EC) up for sale in five years.

Despite light rain, more than 300 potential buyers visited the showflat yesterday, with 220 registering interest in a ballot next Friday to book a preferred unit.

They came in droves even though new rules allow the so-called sandwich class - households earning between $8,000 to $10,000 - to also buy the cheaper design, build and sell scheme (DBSS) flats.

The EC is among the first new housing projects to hit the market since new rules unveiled in August to curb speculation.

Experts say the keen interest was due to the limited supply of ECs, pent-up demand from first-time home buyers, and affordable price tags for smaller units.

These flats boast condo-like facilities and were once the only way the sandwich class - ineligible for build-to-order (BTO) flats - could buy new HDB flats.

But they can now buy DBSS flats after the Government raised the income cap for these homes to $10,000. The last DBSS project launched was Parc Lumiere in Simei in April last year.

Esparina developer Frasers Centrepoint Homes said many of those visiting yesterday were young couples, young families and professionals under 40.

The 99-year leasehold project with 573 units will be the first EC launched since Far East's La Casa in Woodlands in 2005. Units range from 829 sq ft for a two-bedroom flat to 2,583 sq ft for a four-bedroom penthouse, with prices ranging from $730 to $750 per sq ft on average, Frasers said.

Two-bedders will be sold for between $590,000 and $723,000, three-bedders for between $697,000 and $981,000, and four-bedders at $1.005 million to $1.181 million. Penthouse prices will range from $864,000 to $1.3 million.

Frasers will also offer 71 dual-key units - a studio attached to either a two- or three-bedder - to cater to extended families who want to live close together.

Frasers chief operating officer Cheang Kok Kheong said the keen interest was driven by a sandwich class aspiring to the lifestyle element that an EC offers: 'The sandwich class is very interesting because with their income at $10,000, they must be rising up the corporate ladder somehow, or having their own businesses, so their expectations are high but yet they want something to start with first.'

Although up to 30 per cent might be interested in DBSS flats, the other 70 per cent like condo facilities, and this would sustain demand, Mr Cheang said.

ERA Asia-Pacific associate director Eugene Lim said that demand was expected to be strong since it was the logical and affordable choice for the sandwich class.

'DBSS flats might be priced lower but they lack facilities; an EC is more lifestyle-driven and many home buyers aspire to live in condos,' he added.

But one industry player said that the pricing of Esparina was on the high side. ECs are usually about 20 per cent below private condos to make up for their sale restrictions, he said. 'With NV Residences in Pasir Ris selling at $830 psf, the pricing here might not be that attractive.'

One potential buyer, who wanted to be known only as Mrs Ong, said she and her husband of two years will apply for Esparina's ballot as they had been unable to get a flat through the BTO scheme. They are now above the $8,000 income ceiling.

'Compared with an HDB resale flat, we feel an EC provides more value for money,' she said, adding the facilities would be good as they have a child.

esthert@sph.com.sg



More than 300 attended an Esparina Residences viewing yesterday, even though new rules allow the 'sandwich' class to also buy design, build and sell scheme flats. -- ST PHOTO: CHEW SENG KIM

ST : Shatec in $4m rental dispute

Oct 1, 2010

Shatec in $4m rental dispute

Company sues tourism training school over lease on building space

By Selina Lum



HOSPITALITY and tourism training school Shatec is being sued for nearly $4million in a rental dispute.

The company that has filed the lawsuit, multimedia products manufacturer and distributor General Magnetics, claims it had leased out space in its building in Toa Payoh to Shatec, but the school repeatedly pushed back the handover date.

It also refused to take over the premises or to formalise the tenancy agreement, said General Magnetics. The company, in its suit filed last week in the High Court, is claiming $3.98 million in rent from August last year to 2012.

In the second half of 2008, it appointed Savills to handle the leasing out of the first three storeys of its five-storey GenMag building in Lorong 4 Toa Payoh.

It said in court filings that around October, Shatec - set up in 1983 as the training arm of the Singapore Hotel Association - indicated through Savills that it was keen to rent the space and use it as a food catering and ancillary training centre.

General Magnetic, represented by Mr Adrian Wong, claims there was an agreement to lease out the premises to Shatec. A letter dated Nov 3, 2008 offered Shatec the five floors, totalling 104,185 sq ft, at $1.30 per sq ft.

The rent for the first three floors, about $86,000, was payable in advance, while that for the fourth and fifth floors was to be paid on handover.

General Magnetics claims that the terms and conditions were 'unconditionally and irrevocably' accepted by Shatec. To formalise the lease, draft agreements were circulated.

In March last year, General Magnetics told Shatec that it was ready to hand over the first three floors, but Shatec refused to take delivery until approvals from the relevant authorities were obtained.

It was later agreed that the first three floors would be handed over on the Housing Board's approval, and the fifth floor, two months after that.

On April 23, General Magnetics received in-principle approval from HDB to change the use of the premises to a food catering and training centre, and told Shatec it would hand over the building by May 1.

Shatec asked for this to be delayed until May 30. General Magnetics delayed the handover to May 15, and a draft agreement with this new date was sent to Shatec, but it went unsigned.

Later, the handover was again pushed to June 29, and still Shatec asked for another extension.

On July 13, when the school was asked again to finalise the tenancy agreement, it said the document had to be cleared by its board, which would take a few weeks.

After the board meeting, the two sides could not agree on the issues of the capping of rent and the availability of the fourth floor.

General Magnetics then pressed Shatec to sign the agreement by Aug 25. The school brought up three matters to be resolved, and the deadline was pushed to Sept 1.

That day, Shatec asked for two more rent-free months to fit out the building, but General Magnetics rejected this.

At a meeting on Sept 9, Shatec asked General Magnetics to waive a month's rent. The company said it would waive half a month's rent if Shatec returned a signed copy of the agreement.

The school asked for more time. In its suit, General Magnetics said it has not received a signed agreement from Shatec.

Contacted by The Straits Times, Shatec said it will be 'vigorously defending the claim'.

selinal@sph.com.sg


--------------------------------------------------------------------------------

Key dates

· October 2008: Shatec indicated it was keen to rent General Magnetics' five-storey building in Toa Payoh.

· March 2009: General Magnetics told Shatec it was ready to hand over the first three floors, but Shatec refused to take delivery.

· April 2009: General Magnetics received in-principle approval from the HDB to change the use of the premises to a food catering and training centre.

· July 2009: When Shatec was again asked to finalise the tenancy agreement, it said the agreement had to be approved by its board.

· Sept 1, 2009: Shatec asked for two more months rent-free so it could fit out the building, but General Magnetics rejected this.

· Sept 9, 2009: At a meeting Shatec asked General Magnetics to waive a month's rent, and again asked for more time.

BT : China's property stocks jump despite new curbs

Business Times - 01 Oct 2010

China's property stocks jump despite new curbs

Rally likely to be short-lived because of sector's cloudy outlook: traders

(SHANGHAI) China's property shares unexpectedly soared yesterday, a day after the government announced fresh measures to subdue bubbly real estate prices.

Shanghai's property sub-index closed up 3.9 per cent, with one major developer, Poly Real Estate Group Co Ltd, climbing 8.9 per cent.

Traders said investors were jumping back into the market after a slump in property shares since mid-April, in response to a clampdown on real estate speculation.

But they cautioned that the rally was likely to be short-lived because of a cloudy outlook for the sector.

Surging property prices that are unbalancing the economy have become a serious headache for the government and pose a potential threat to social stability. Prices are beyond the reach of large segments of the population.

Following up on its April campaign, Beijing on Wednesday instructed banks to demand a downpayment of at least 30 per cent from all mortgage applicants and to restrict loans to buyers of third homes.

'The market was expecting negative news on new property controls, so now that the information is out, property companies like Vanke which have been in a continuous slump are able to gain,' said Ren Chengde, an analyst at Galaxy Securities in Shanghai.

Shanghai's stock market, one of the world's worst-performing bourses, gained 11 per cent in the third quarter but is still down nearly 21 per cent so far this year. China's restrictions on bank lending and the property market have taken a toll despite robust economic growth.

Industry experts said the government had responded to a rebound in property transactions and prices, worrying that they could set the stage for a new flurry of speculative buying.

'The new steps were taken at the perfect time, when potential buyers are hesitating whether to enter the market,' said Liu Yuan, a senior research manager at the Centaline Group, a leading domestic property service and research institution.

Property companies helped the Shanghai market close up 1.7 per cent at a three-week high.

The country's largest listed developer, China Vanke Co Ltd jumped 7.6 per cent, while Gemdale Corp rose 5.3 per cent.

China's property inflation slowed to 9.3 per cent in the year to August, down from a peak of 12.8 per cent in April. But real estate investment has remained buoyant, with growth picking up to 34.1 per cent in the year to August from 33 per cent in July.

'These gains may just be a short-term burst. I expect property shares could gain a maximum of 10-15 per cent,' said Zheng Weigang, a senior trader at Shanghai Securities. -- Reuters

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : CDL sells The Corporate Office for $215m

Business Times - 01 Oct 2010

CDL sells The Corporate Office for $215m

Price around $1,956 psf of net lettable area; buyer led by Oxley Holdings

By KALPANA RASHIWALA

(SINGAPORE) City Developments Ltd (CDL) is said to be selling a 21-storey freehold office block at the corner of Robinson Road and McCallum Street for $215 million.

The buyer of The Corporate Office is understood to be a consortium led by Oxley Holdings group. The price works out to $1,956 per square foot based on the building's net lettable area of 109,920 sq ft.

The Corporate Office, which is about 25 years old, has 112 carpark lots, something of a rarity in office towers in that part of the CBD. About 15 per cent of the building's net lettable area is currently vacant and the lease for a further 7-8 per cent of space is said to expire early next year. But that's not necessarily a bad thing for the buyers.

Sources suggest that Oxley - which is headed by Ching Chiat Kwong - is looking to move its headquarters into The Corporate Office. The group currently operates out of Singapore Land Tower in Raffles Place and is said to be gunning for an initial public offer by year end. Oxley has been in the news lately for developing projects with shoebox apartments, including Suites@Guillemard and VivaVista in Pasir Panjang.

On the group's purchase of The Corporate Office along Robinson Road, market watchers suggest that in the medium term, Oxley and its partners may consider redeveloping the property, which has a land area of 16,032 sq ft, into a residential project with commercial use on the first storey or into a commercial-residential development. Under Master Plan 2008, the site is zoned for commercial use with an 11.2+ plot ratio (ratio of maximum potential gross floor area to land area). The site can be developed up to 35 storeys high. The Corporate Office's existing gross floor area is said to reflect a plot ratio of about 9.27, which points to some unutilised plot ratio.

DTZ is thought to have brokered the sale of The Corporate Office through a private treaty deal. The property consultancy also brokered the sale of Chow House next door a couple of months ago for $101 million to a group led by WyWy Group' founder, YY Wong.

The price for Chow House, a six-storey freehold office block which has redevelopment potential, is said to work out to about $1,300 per square foot per plot ratio assuming it is redeveloped into apartments. The site has a land area of 9,084 sq ft and is zoned for commercial use with an 11.2+ plot ratio under Master Plan 2008. However, outline planning permission has been granted to redevelop the Chow House site into residential use with commercial use on the first storey.

Chow House sits between The Corporate Office and another CDL-owned property - The Corporate Building.

The property giant's sale of The Corporate Office is its latest divestment of non-core assets. In recent years, CDL has also sold North Bridge Commercial Complex (near Bugis Junction), The Office Chamber along Jalan Besar, Chinatown Point mall, and Commerce Point near Raffles Place MRT Station.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Frasers C'point launches Esparina Residences EC

Business Times - 01 Oct 2010

Frasers C'point launches Esparina Residences EC

FRASERS Centrepoint's new 573-unit executive condominium (EC), Esparina Residences, drew more than 300 visitors who took up 230 ballot numbers at the project's launch yesterday.

Apartment sizes at the Sengkang project range from 829 square feet for a two-bedroom flat to 2,583 sq ft for a four-bedroom penthouse. Prices range from $590,000 to $723,000 for a two-bedder; $697,000 to $981,000 for a three-bedder; and $1 million to $1.18 million for a four-bedroom unit. Penthouses are priced at between $864,000 and $1.3 million. Applications are open until Oct 5. Successful applicants will be issued a ballot number. On Oct 8, they will get priority to enter the showflat for the balloting and booking of units. Those without a ballot number will be admitted to the showflat only after all ballot numbers have been processed.

Frasers Centrepoint, which is the property arm of Fraser and Neave, said 71 units - or 12 per cent of all apartments - at Esparina Residences will be dual-key units. This means they can be divided into two separate apartments with different entrances. The design was conceptualised and introduced at Frasers Centrepoint's Caspian and 8@Woodleigh condominiums. More such units are available at Esparina Residences due to their past popularity, said Cheang Kok Kheong, chief executive of Frasers Centrepoint Homes. 'These dual-key units were snapped up very quickly in our previous launches,' he said.

There will also be seven thematic spas in the development. ECs are a hybrid of public and private housing. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing, but these restrictions cease to apply after 10 years.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Top bid for Pasir Ris site from Frasers Centrepoint, Far East

Business Times - 01 Oct 2010

Top bid for Pasir Ris site from Frasers Centrepoint, Far East

FRASERS Centrepoint and Far East Organization have jointly put in the top bid of $151.4 million, or $335 per square foot per plot ratio (psf ppr) for a residential site at Pasir Ris.

Just four bids were received for the 99-year leasehold site at the junction of Pasir Ris Drive 3 and Pasir Ris Drive 4 at close of the state tender yesterday.

Frasers Centrepoint and Far East plan to build a project with 400-450 units through a 50:50 joint venture if the site is awarded to them. The project, which will be completed in about five years, will target HDB upgraders in the east and the vicinity.

The offer by the two developers was 8 per cent above the second-highest offer of $140.7 million or $311 psf ppr from Hoi Hup Realty, Sunway Developments and SC Wong Holdings.

The two other bids came from Allgreen Properties ($131.9 million or $292 psf ppr) and Meadows Investment ($106 million or $234 psf ppr).

The tender result mirrors that for an executive condominium site at Punggol which closed on Sept 23 and drew just four bids.

Since the government introduced new measures to cool the property market on Aug 30, developers have been increasingly cautious with land tender bids, said Nicholas Mak, executive director of SLP International Property Consultants.

He also noted that in the current second half-year, no Reserve List site has been triggered for tender as the government is pushing out a large supply of land under the Confirmed List.

The top bid of $335 psf ppr for the Pasir Ris site translates to a breakeven cost of $650-$680 psf, said Li Hiaw Ho, executive director of CBRE Research. He expects that units in the new residential project could sell for about $800 psf.

CBRE's data shows that private homes nearby have been selling for around that price.

Around 350 units at the nearby NV Residences have reportedly been sold at an average price of $835 psf in the past month. And units at Livia, adjacent to NV Residences, went for between $720 psf and $840 psf between July and September. Over at Elias Road, units at Oasis@Elias sold at between $650 psf and $740 psf in the same period.

Separately, the Urban Redevelopment Authority yesterday released detailed sale conditions for an industrial site at Woodlands Avenue 12.

Developers interested in purchasing the site can now apply to URA for it to be put up for tender.

The 60-year leasehold parcel - the first of four new sites to be released for sale under the Reserve List of the government's H2 2010 industrial land sales programme - covers about 2.1 ha and has a gross plot ratio of 2.5.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.