Dec 04,2010
Gradual price rises work best for developers: Redas chief
By Cheryl Lim & Esther Teo
ROCKETING real estate prices might sound good for developers at first glance. But a calmer market, with values rising in a smooth line, works best, according to an industry leader last night.
Mr Simon Cheong, president of the Real Estate Developers' Association of Singapore (Redas), said at the body's 51st anniversary dinner that developers should welcome gradual price increases.
'It is in our interest to see a more graduated trend in value movements, in order to realise a sustainable environment for real estate development, rather than face the volatility from mismatched market forces,' he said.
Investors most want certainty, political stability and a stable policy framework: three attributes which the Singapore market has, he added.
Although many investors are concerned that real estate cycles are getting shorter and price swings are becoming more pronounced, they still believe that Singapore has sound fundamentals and a long-term policy framework to deal with the changes taking place, he said.
Mr Cheong also touched on the eventful year which developers have had.
Urban Redevelopment Authority (URA) statistics for the second quarter recorded a new peak in developers' sales, reaching 2,208 units in April alone, he said. In the same quarter, the URA property price index also surpassed its former all-time peak in the second quarter of 1996.
The Government Land Sales Programme has also added about $9.4 billion in revenue to state coffers - more than five times the $1.8 billion in sales recorded for the whole of last year.
But signs of a slowdown are appearing, he said, with prices moderating to 2.9 per cent in the third quarter from 5.3 per cent in the second quarter.
However, private home prices are still up 14.4 per cent for the first nine months of the year.
Mr Cheong is confident about the long-term prospects of developers.
'We are positive about the real estate market in Singapore, given the Government's continuous drive to reposition the economy. We believe that the market will continue to be underpinned by sound economic fundamentals and a favourable business environment,' he said.
Some experts say that while the market appears to have moderated after the Government introduced cooling measures in August, additional steps could be taken should prices and activity start to shoot up again.
At the dinner last night, Cushman & Wakefield Singapore vice-chairman Donald Han told The Straits Times that although transaction volumes have slowed, the Government might still step in if the pace of private home sales returns to the buoyancy of April.
But Knight Frank chairman Tan Tiong Cheng said that developers have already turned more cautious, as reflected in their more realistic bid prices for land: 'It's a sign that they feel the market won't be charging ahead. In such a scenario, there is no need to introduce measures to curb demand.'
Trade and Industry Minister Lim Hng Kiang was guest of honour at last night's dinner, held at The Ritz-Carlton, Millenia Singapore.
Thursday, December 9, 2010
ST : Refer a home buyer
Dec 04,2010
DEVELOPERS DANGLE GOODIES TO DRUM UP SALES
Refer a home buyer...
...he gets a discount on his purchase
... and you get a cash reward
By Cheryl Lim & Esther Teo
SOME developers are trying to lift sales by offering cash handouts and generous discounts if existing owners refer other people who then buy a flat in one of the company's condominiums.
The owner making the referral can get a cash reward - it could be as much as $7,500 if a $1 million flat is sold - while the referred buyer gets a discount on his new purchase.
Other developers are using inducements such as free air tickets and other gifts to entice buyers to sign up.
But there is a catch: incentives like discounts, rebates and gifts must be declared when a mortgage application is filed with the bank.
A spokesman for the Monetary Authority of Singapore (MAS) said that financial institutions are required to deduct benefits offered by the developer from the property's purchase price, and apply the loan-to-value (LTV) limit on this lower amount.
This housing loan rule applies to any benefit that reduces the purchase price of the property.
Several financial institutions, including OCBC and United Overseas Bank, require that clients declare any incentives received in cash or in kind.
One bank told The Straits Times that making a false application could even spell legal trouble.
But the tight rules have not stopped developers dangling carrots in front of buyers.
The Straits Times understands that Far East Organization's scheme rewards an existing Far East home owner making the referral and a buyer who signs up.
The kitty is 1.5 per cent of the initial purchase price of the new unit: the person making the referral gets 0.75 per cent, while the new buyer enjoys a 0.75 per cent cut in the price.
Assume the person you referred to Far East buys a $1 million home. You can get a cheque for $7,500 and he gets a $7,500 cut on the price.
Property developer EL Development also gives out similar 'goodwill discounts'. Managing director Lim Yew Soon said the initiative, which started in 2008, rewards buyers referred by friends or relatives with discounts of 0.5 per cent to 1 per cent of the purchase price.
But the scheme applies only to certain developments, including Rosewood Suites in Rosewood Drive and Steven Suites in Stevens Close.
Discounts are assessed on a case by case basis and only six clients have been approved, he added.
Last month, Wing Tai Holdings gave air tickets for a Hokkaido ski trip to buyers who bought units at its Ascentia Sky project in Alexandra View.
Industry experts said such schemes are not new and usually apply only to selected developments, such as those with units that need to be sold quickly.
ERA Asia Pacific associate director Eugene Lim said these strategies are also often used as a long-term game plan to buff up their customer loyalty and brand name.
Ms Wendy Tang, Knight Frank's director of residential services, added: 'Previous buyers make the best ambassadors because they will say, 'I've purchased it and I'm recommending it because I believe it's good'.'
Situations where buyers refer family and friends are also now a common occurrence - especially with the bigger developers, experts added.
'They might have sold (previous projects) to buyers and now they're selling to their children. Friends who like the idea of living together might also band together to purchase units near each other,' DTZ executive director Ong Choon Fah said.
But depending on such tactics could backfire on developers and ultimately affect their profit margins, said analysts. Still, they are seen as preferable to cutting prices, which can become a slippery slope.
'If you launch at this price from the onset and then reduce, buyers might expect prices to be slashed even further. Buyers might even expect (developers) to move their prices before they launch,' said OrangeTee research head Tan Kok Keong.
But Ms Tang pointed out that factors like price and location ultimately outrank incentives when it comes to making the final purchasing decisions.
cherlim@sph.com.sg
esthert@sph.com.sg
DEVELOPERS DANGLE GOODIES TO DRUM UP SALES
Refer a home buyer...
...he gets a discount on his purchase
... and you get a cash reward
By Cheryl Lim & Esther Teo
SOME developers are trying to lift sales by offering cash handouts and generous discounts if existing owners refer other people who then buy a flat in one of the company's condominiums.
The owner making the referral can get a cash reward - it could be as much as $7,500 if a $1 million flat is sold - while the referred buyer gets a discount on his new purchase.
Other developers are using inducements such as free air tickets and other gifts to entice buyers to sign up.
But there is a catch: incentives like discounts, rebates and gifts must be declared when a mortgage application is filed with the bank.
A spokesman for the Monetary Authority of Singapore (MAS) said that financial institutions are required to deduct benefits offered by the developer from the property's purchase price, and apply the loan-to-value (LTV) limit on this lower amount.
This housing loan rule applies to any benefit that reduces the purchase price of the property.
Several financial institutions, including OCBC and United Overseas Bank, require that clients declare any incentives received in cash or in kind.
One bank told The Straits Times that making a false application could even spell legal trouble.
But the tight rules have not stopped developers dangling carrots in front of buyers.
The Straits Times understands that Far East Organization's scheme rewards an existing Far East home owner making the referral and a buyer who signs up.
The kitty is 1.5 per cent of the initial purchase price of the new unit: the person making the referral gets 0.75 per cent, while the new buyer enjoys a 0.75 per cent cut in the price.
Assume the person you referred to Far East buys a $1 million home. You can get a cheque for $7,500 and he gets a $7,500 cut on the price.
Property developer EL Development also gives out similar 'goodwill discounts'. Managing director Lim Yew Soon said the initiative, which started in 2008, rewards buyers referred by friends or relatives with discounts of 0.5 per cent to 1 per cent of the purchase price.
But the scheme applies only to certain developments, including Rosewood Suites in Rosewood Drive and Steven Suites in Stevens Close.
Discounts are assessed on a case by case basis and only six clients have been approved, he added.
Last month, Wing Tai Holdings gave air tickets for a Hokkaido ski trip to buyers who bought units at its Ascentia Sky project in Alexandra View.
Industry experts said such schemes are not new and usually apply only to selected developments, such as those with units that need to be sold quickly.
ERA Asia Pacific associate director Eugene Lim said these strategies are also often used as a long-term game plan to buff up their customer loyalty and brand name.
Ms Wendy Tang, Knight Frank's director of residential services, added: 'Previous buyers make the best ambassadors because they will say, 'I've purchased it and I'm recommending it because I believe it's good'.'
Situations where buyers refer family and friends are also now a common occurrence - especially with the bigger developers, experts added.
'They might have sold (previous projects) to buyers and now they're selling to their children. Friends who like the idea of living together might also band together to purchase units near each other,' DTZ executive director Ong Choon Fah said.
But depending on such tactics could backfire on developers and ultimately affect their profit margins, said analysts. Still, they are seen as preferable to cutting prices, which can become a slippery slope.
'If you launch at this price from the onset and then reduce, buyers might expect prices to be slashed even further. Buyers might even expect (developers) to move their prices before they launch,' said OrangeTee research head Tan Kok Keong.
But Ms Tang pointed out that factors like price and location ultimately outrank incentives when it comes to making the final purchasing decisions.
cherlim@sph.com.sg
esthert@sph.com.sg
ST : Can our buildings withstand quakes?
Dec 04,2010
Can our buildings withstand quakes?
More time needed for studies on impact of regional tremors
By Christopher Tan
JUST how vulnerable buildings in Singapore will be to tremors from major earthquakes in the region is still being investigated.
Two studies commissioned two years ago, following the massive quakes that devastated nearby Sumatra in 2004, 2005 and 2007, have yet to be completed.
They were initially expected to be ready this year.
Among other things, the projects set out to determine whether Singapore's construction codes need to include provisions for tremors. This is a consideration that had never cropped up before because the island was long deemed quake-free.
One study is by the Building and Construction Authority (BCA), which commissioned Nanyang Technological University (NTU) to conduct an 'earthquake vulnerability' study.
The BCA told The Straits Times last month that the study will take 'at least another year' to complete.
The other study, also not completed, is by the Housing Board (HDB), which engaged the National University of Singapore (NUS) to develop 'cost-effective monitoring sensors' to be mounted on HDB blocks, said an HDB spokesman.
He said these sensors will enable the HDB to prioritise building inspections in the event of tremors, not to assess the vulnerability of buildings to tremors.
NUS researchers involved in the HDB study declined to talk about it, describing it as 'a very sensitive topic'.
One of them, Professor Koh Chan Ghee of NUS' Centre for Hazards Research, told The Straits Times two years ago that it is not uncommon for building codes to be revised, if necessary, given that a big earthquake is 'a low-probability but high-consequence event'.
Over at NTU, however, geologist Kerry Sieh, the director of the university's Earth Observatory of Singapore, predicts that a quake of 8.8 magnitude will hit north of Padang in Sumatra within the next few decades.
Such a quake, considered a 'great' quake, can affect buildings several hundred kilometres away. Singapore lies about 450km from the predicted zone.
Professor Sieh's colleague, Assistant Professor Kusnowidjaja Megawati, said a real worry for Singapore is for buildings which stand on marine clay and some reclaimed land. These soil types tend to amplify low-frequency vibrations from quakes hundreds of kilometres away.
These soft soils make up about a quarter of Singapore's land mass, mostly in the south-east, like in Kallang.
Prof Megawati explained that geologists use a measure called centimetre per second squared (cm/ss) to indicate the degree of 'shaking' felt on the ground.
Recent simulations have shown that an 8.8-magnitude quake in Sumatra will create 'ground acceleration' of plus-minus 10cm/ss in Bukit Timah - an area with underlying hard rock - and plus-minus 30 to 40cm/ss in Kallang, he said.
In the 8.4-magnitude Sumatran quake in 2007 - the most severe quake felt here in recent times - the ground acceleration was less than 1 cm/ss in Bukit Timah and 3cm/ss in Kallang, he noted.
Even at that level, buildings as far inland as Toa Payoh and Little India shook, so if Prof Megawati is right and 'the next big one' happens, the effects felt here could be 10 times that.
But the experts do not all agree on the extent of Singapore's risk exposure to quakes and how it should respond to them.
Professor Pan Tso-Chien, the dean of NTU's School of Engineering, for instance, believes Singapore should not rush to change its building codes to guard against earthquake damage.
He said: 'It's a major issue in addressing a code change. It's not only a question of science or technology any more, but economics and costs as well.'
Arguing against jumping into a code change, he said: 'Are our current codes enough protection? Will we be over-providing? Are you going to make it so safe that it's safer than crossing a street? You have other competing needs for your resources - like terrorism, road accidents and defence.'
Prof Pan, who is also director of the Institute of Catastrophe Risk Management, a research body co-funded by the Monetary Authority of Singapore, said the issue may well resolve itself over time, as buildings 'are always getting stronger because of better materials, better engineering, better accuracy in design'.
At best, he said, resources should go into strengthening buildings gradually over time, systemically, so 'there's no need to rush or worry'.
Asked about the 'next big one', Prof Pan said: 'Personally, I'm not in favour of earthquake predictions because it's very difficult - you have to involve not only a place, but also time. It's too much consequence for one to be correct or incorrect.'
He also pointed out that the majority of deaths from earthquakes have been in rural areas, not urban high-rise ones.
Meanwhile, the insurance industry has not decided to start charging for earthquake coverage, even after having mulled over it in the past few years.
General Insurance Association president Derek Teo said 'exposures are still within a tolerable range'.
He added: 'Nevertheless, tremors here will be monitored on frequency and severity before a rate charge is considered.'
christan@sph.com.sg
Can our buildings withstand quakes?
More time needed for studies on impact of regional tremors
By Christopher Tan
JUST how vulnerable buildings in Singapore will be to tremors from major earthquakes in the region is still being investigated.
Two studies commissioned two years ago, following the massive quakes that devastated nearby Sumatra in 2004, 2005 and 2007, have yet to be completed.
They were initially expected to be ready this year.
Among other things, the projects set out to determine whether Singapore's construction codes need to include provisions for tremors. This is a consideration that had never cropped up before because the island was long deemed quake-free.
One study is by the Building and Construction Authority (BCA), which commissioned Nanyang Technological University (NTU) to conduct an 'earthquake vulnerability' study.
The BCA told The Straits Times last month that the study will take 'at least another year' to complete.
The other study, also not completed, is by the Housing Board (HDB), which engaged the National University of Singapore (NUS) to develop 'cost-effective monitoring sensors' to be mounted on HDB blocks, said an HDB spokesman.
He said these sensors will enable the HDB to prioritise building inspections in the event of tremors, not to assess the vulnerability of buildings to tremors.
NUS researchers involved in the HDB study declined to talk about it, describing it as 'a very sensitive topic'.
One of them, Professor Koh Chan Ghee of NUS' Centre for Hazards Research, told The Straits Times two years ago that it is not uncommon for building codes to be revised, if necessary, given that a big earthquake is 'a low-probability but high-consequence event'.
Over at NTU, however, geologist Kerry Sieh, the director of the university's Earth Observatory of Singapore, predicts that a quake of 8.8 magnitude will hit north of Padang in Sumatra within the next few decades.
Such a quake, considered a 'great' quake, can affect buildings several hundred kilometres away. Singapore lies about 450km from the predicted zone.
Professor Sieh's colleague, Assistant Professor Kusnowidjaja Megawati, said a real worry for Singapore is for buildings which stand on marine clay and some reclaimed land. These soil types tend to amplify low-frequency vibrations from quakes hundreds of kilometres away.
These soft soils make up about a quarter of Singapore's land mass, mostly in the south-east, like in Kallang.
Prof Megawati explained that geologists use a measure called centimetre per second squared (cm/ss) to indicate the degree of 'shaking' felt on the ground.
Recent simulations have shown that an 8.8-magnitude quake in Sumatra will create 'ground acceleration' of plus-minus 10cm/ss in Bukit Timah - an area with underlying hard rock - and plus-minus 30 to 40cm/ss in Kallang, he said.
In the 8.4-magnitude Sumatran quake in 2007 - the most severe quake felt here in recent times - the ground acceleration was less than 1 cm/ss in Bukit Timah and 3cm/ss in Kallang, he noted.
Even at that level, buildings as far inland as Toa Payoh and Little India shook, so if Prof Megawati is right and 'the next big one' happens, the effects felt here could be 10 times that.
But the experts do not all agree on the extent of Singapore's risk exposure to quakes and how it should respond to them.
Professor Pan Tso-Chien, the dean of NTU's School of Engineering, for instance, believes Singapore should not rush to change its building codes to guard against earthquake damage.
He said: 'It's a major issue in addressing a code change. It's not only a question of science or technology any more, but economics and costs as well.'
Arguing against jumping into a code change, he said: 'Are our current codes enough protection? Will we be over-providing? Are you going to make it so safe that it's safer than crossing a street? You have other competing needs for your resources - like terrorism, road accidents and defence.'
Prof Pan, who is also director of the Institute of Catastrophe Risk Management, a research body co-funded by the Monetary Authority of Singapore, said the issue may well resolve itself over time, as buildings 'are always getting stronger because of better materials, better engineering, better accuracy in design'.
At best, he said, resources should go into strengthening buildings gradually over time, systemically, so 'there's no need to rush or worry'.
Asked about the 'next big one', Prof Pan said: 'Personally, I'm not in favour of earthquake predictions because it's very difficult - you have to involve not only a place, but also time. It's too much consequence for one to be correct or incorrect.'
He also pointed out that the majority of deaths from earthquakes have been in rural areas, not urban high-rise ones.
Meanwhile, the insurance industry has not decided to start charging for earthquake coverage, even after having mulled over it in the past few years.
General Insurance Association president Derek Teo said 'exposures are still within a tolerable range'.
He added: 'Nevertheless, tremors here will be monitored on frequency and severity before a rate charge is considered.'
christan@sph.com.sg
ST : Our First Home
Dec 04,2010
Our First Home
Measures to cool market put resale flats within reach of first-time buyers
By Jessica Cheam & Daryl Chin
RECENT measures to cool the property market have received mixed reactions from home owners, but one group that has emerged better off comprises the young, first-time home buyers.
Property agencies and agents interviewed by The Straits Times say this group is returning to the Housing Board resale market, lured by the softening of cash premiums asked by sellers.
Dennis Wee Group director Chris Koh said the number of young buyers approaching the company's agents has started to rise.
'Young buyers now seem more keen to commit to a resale flat, instead of only new flats,' he said.
PropNex chief executive Mohamed Ismail agreed, noting that more young buyers have approached his agents, as resale flats are now increasingly within their budgets.
'Before the measures, many sellers were quite unrealistic and asking for high cash premiums. Since then, they have become more reasonable in their prices,' he said.
The public housing boom of the past two years had priced many first-time buyers out of the resale market. Most opted to buy cheaper new flats directly from the Housing Board.
But the trend seems to be reversing somewhat.
Application numbers at fresh launches under the Housing Board's Build-To-Order scheme have been lower than those at the launches before the cooling measures were announced in August.
At the recently concluded sale of Yishun Greenwalk, for example, there were about three bids for every new flat - lower than the six bids on average seen at previous launches.
Analysts say the key reason for this is that cash-over-valuation (COV) figures have fallen. COV is the amount over and above the valuation of a Housing Board resale flat. This is payable only in cash, and a major financial barrier for young married couples eager to buy a home.
Agency bosses said that, based on the latest Housing Board figures, the median COV has declined from $30,000 for the third quarter to about $20,000 to $25,000 in October and last month, based on their resale sales data.
National Development Minister Mah Bow Tan confirmed last week that Housing Board figures show that the median COV fell to $25,000 in October.
Industry analysts say the fall in COVs is most pronounced in suburban estates like Yishun, Sembawang, Bukit Batok, Jurong East and Jurong West.
They are also coming down for bigger flat types, such as five-room and executive flats.
ERA Asia-Pacific associate director Eugene Lim said an executive flat in Jurong, for example, used to command from $40,000 to $45,000 cash upfront, but the figure has now gone down to $30,000.
Mr Kelvin Teo, 28, and his wife Alberta, 21, for example, recently managed to buy a four-room flat in Bukit Panjang at a COV of $11,000 - much lower than the median amount (see story above).
This is in stark contrast to just six months ago, when the recovery of the economy and the property market pushed median COV levels to as high as $50,000 to $60,000 in mature estates such as Queenstown, putting the flats out of reach of most first-time buyers.
This had prompted many such buyers to complain via letters to the press and online feedback about the affordability of Housing Board flats.
In late August, the Government moved to stabilise the market by tightening rules on financing and home ownership. For example, private property owners were no longer allowed to simultaneously own Housing Board flats.
But even though COV levels have softened, agency bosses warn that they have to fall further before more first- time buyers can benefit.
Even at COV levels of $20,000 to $25,000, some first-timers - who may be just starting out in their careers - still may not be able to afford resale flats, said Mr Lim.
'There's a limit to how much these young buyers can fork out, unless they have parental support,' he added.
The absolute price of a flat also counts.
'Even if COV decreased by about $10,000 or more, it's still only a marginal 1 per cent to 2 per cent decrease in Housing Board resale flat prices,' said Mr Ismail.
Manager Valda Lee, 28, and her fiance are one such couple still waiting for COVs to fall in the estates which they want to live in.
New flats are not an option for the couple because they exceed the $10,000 household income ceiling which makes them eligible for higher-end executive condos or Design, Build and Sell units offered by the Housing Board.
'We are basically stuck, because the COVs for the places I looked at are at killer levels - $40,000 or more,' she said.
But Mr Lim added that even though valuations have not fallen drastically, the recent measures have at least helped to allay concerns of first-timers.
'Runaway prices seem to have been kept in check for now,' he said.
jcheam@sph.com.sg
www.facebook.com/cheamjessica
darylc@sph.com.sg
Mr Kelvin Teo, wife Alberta and baby Lucius in front of their Bukit Panjang home, which they snagged at a low COV premium of $11,000. For more on the Teo family's journey, see Page B2 -- ST PHOTO: DESMOND FOO
Our First Home
Measures to cool market put resale flats within reach of first-time buyers
By Jessica Cheam & Daryl Chin
RECENT measures to cool the property market have received mixed reactions from home owners, but one group that has emerged better off comprises the young, first-time home buyers.
Property agencies and agents interviewed by The Straits Times say this group is returning to the Housing Board resale market, lured by the softening of cash premiums asked by sellers.
Dennis Wee Group director Chris Koh said the number of young buyers approaching the company's agents has started to rise.
'Young buyers now seem more keen to commit to a resale flat, instead of only new flats,' he said.
PropNex chief executive Mohamed Ismail agreed, noting that more young buyers have approached his agents, as resale flats are now increasingly within their budgets.
'Before the measures, many sellers were quite unrealistic and asking for high cash premiums. Since then, they have become more reasonable in their prices,' he said.
The public housing boom of the past two years had priced many first-time buyers out of the resale market. Most opted to buy cheaper new flats directly from the Housing Board.
But the trend seems to be reversing somewhat.
Application numbers at fresh launches under the Housing Board's Build-To-Order scheme have been lower than those at the launches before the cooling measures were announced in August.
At the recently concluded sale of Yishun Greenwalk, for example, there were about three bids for every new flat - lower than the six bids on average seen at previous launches.
Analysts say the key reason for this is that cash-over-valuation (COV) figures have fallen. COV is the amount over and above the valuation of a Housing Board resale flat. This is payable only in cash, and a major financial barrier for young married couples eager to buy a home.
Agency bosses said that, based on the latest Housing Board figures, the median COV has declined from $30,000 for the third quarter to about $20,000 to $25,000 in October and last month, based on their resale sales data.
National Development Minister Mah Bow Tan confirmed last week that Housing Board figures show that the median COV fell to $25,000 in October.
Industry analysts say the fall in COVs is most pronounced in suburban estates like Yishun, Sembawang, Bukit Batok, Jurong East and Jurong West.
They are also coming down for bigger flat types, such as five-room and executive flats.
ERA Asia-Pacific associate director Eugene Lim said an executive flat in Jurong, for example, used to command from $40,000 to $45,000 cash upfront, but the figure has now gone down to $30,000.
Mr Kelvin Teo, 28, and his wife Alberta, 21, for example, recently managed to buy a four-room flat in Bukit Panjang at a COV of $11,000 - much lower than the median amount (see story above).
This is in stark contrast to just six months ago, when the recovery of the economy and the property market pushed median COV levels to as high as $50,000 to $60,000 in mature estates such as Queenstown, putting the flats out of reach of most first-time buyers.
This had prompted many such buyers to complain via letters to the press and online feedback about the affordability of Housing Board flats.
In late August, the Government moved to stabilise the market by tightening rules on financing and home ownership. For example, private property owners were no longer allowed to simultaneously own Housing Board flats.
But even though COV levels have softened, agency bosses warn that they have to fall further before more first- time buyers can benefit.
Even at COV levels of $20,000 to $25,000, some first-timers - who may be just starting out in their careers - still may not be able to afford resale flats, said Mr Lim.
'There's a limit to how much these young buyers can fork out, unless they have parental support,' he added.
The absolute price of a flat also counts.
'Even if COV decreased by about $10,000 or more, it's still only a marginal 1 per cent to 2 per cent decrease in Housing Board resale flat prices,' said Mr Ismail.
Manager Valda Lee, 28, and her fiance are one such couple still waiting for COVs to fall in the estates which they want to live in.
New flats are not an option for the couple because they exceed the $10,000 household income ceiling which makes them eligible for higher-end executive condos or Design, Build and Sell units offered by the Housing Board.
'We are basically stuck, because the COVs for the places I looked at are at killer levels - $40,000 or more,' she said.
But Mr Lim added that even though valuations have not fallen drastically, the recent measures have at least helped to allay concerns of first-timers.
'Runaway prices seem to have been kept in check for now,' he said.
jcheam@sph.com.sg
www.facebook.com/cheamjessica
darylc@sph.com.sg
Mr Kelvin Teo, wife Alberta and baby Lucius in front of their Bukit Panjang home, which they snagged at a low COV premium of $11,000. For more on the Teo family's journey, see Page B2 -- ST PHOTO: DESMOND FOO
ST : More choices for 'sandwich class'
Dec 04,2010
More choices for 'sandwich class'
IT WAS a five-year wait that eventually bore fruit for Mr Ang Tiong Wei.
After unsuccessfully balloting for new flats directly from the Housing Board for the past few years, the 30-year-old finally clinched a unit at the newly launched Esparina Residences executive condominium in Sengkang last month.
Aggressive moves by the HDB to ramp up supply have seen new executive condominiums (ECs), such as Esparina and The Canopy in Yishun, launched recently.
The last EC launched was in 2005. There had been a hiatus in the building of ECs due to weak demand.
But the recent housing boom led the Government to release more land for ECs, which are a hybrid of public and private housing and include some condominium facilities. They are subject to HDB rules, such as a minimum five-year occupation period.
These units are targeted at helping the middle-income earners, also known as the sandwich class, by catering to households with a monthly income ceiling of $10,000.
Mr Ang, a teacher, said he gave up looking for resale flats as the cash upfront demanded by sellers, known as COV, was as high as $80,000 in some areas.
'I decided that an EC unit was the best choice, and I waited for the new supply,' he said.
The primary school teacher, whose wife is also a teacher, said he felt lucky to have secured a unit of his choice on the 14th storey.
'It was the first launch in a while, so the response was overwhelming,' he said. But the allocation of 95 per cent of the units for first-timers helped a great deal, he added.
'This measure helps because we don't have investors coming in to spoil the market.'
Prices, however, could have been lower, he felt. His three-bedroom, 1,184 sq ft unit cost $929,000 - or $899,000 after taking into account a Central Provident Fund housing grant of $30,000 that he received.
Executive condos such as Esparina Residences (above) and The Canopy are targeted at middle- income earners. --ST FILE PHOTOS
More choices for 'sandwich class'
IT WAS a five-year wait that eventually bore fruit for Mr Ang Tiong Wei.
After unsuccessfully balloting for new flats directly from the Housing Board for the past few years, the 30-year-old finally clinched a unit at the newly launched Esparina Residences executive condominium in Sengkang last month.
Aggressive moves by the HDB to ramp up supply have seen new executive condominiums (ECs), such as Esparina and The Canopy in Yishun, launched recently.
The last EC launched was in 2005. There had been a hiatus in the building of ECs due to weak demand.
But the recent housing boom led the Government to release more land for ECs, which are a hybrid of public and private housing and include some condominium facilities. They are subject to HDB rules, such as a minimum five-year occupation period.
These units are targeted at helping the middle-income earners, also known as the sandwich class, by catering to households with a monthly income ceiling of $10,000.
Mr Ang, a teacher, said he gave up looking for resale flats as the cash upfront demanded by sellers, known as COV, was as high as $80,000 in some areas.
'I decided that an EC unit was the best choice, and I waited for the new supply,' he said.
The primary school teacher, whose wife is also a teacher, said he felt lucky to have secured a unit of his choice on the 14th storey.
'It was the first launch in a while, so the response was overwhelming,' he said. But the allocation of 95 per cent of the units for first-timers helped a great deal, he added.
'This measure helps because we don't have investors coming in to spoil the market.'
Prices, however, could have been lower, he felt. His three-bedroom, 1,184 sq ft unit cost $929,000 - or $899,000 after taking into account a Central Provident Fund housing grant of $30,000 that he received.
Executive condos such as Esparina Residences (above) and The Canopy are targeted at middle- income earners. --ST FILE PHOTOS
ST : Couple snag affordable unit after two-year quest
Dec 04,2010
Couple snag affordable unit after two-year quest
CIVIL servant Kelvin Teo and his wife have been looking for their dream home for almost two years.
But the experience was discouraging, with flat sellers wanting high cash amounts upfront, also known as cash-over-valuation (COV).
But that was before Aug 30, when cooling measures kicked in. These have shifted market dynamics in the couple's favour.
Mr Teo, 28, and his wife Alberta, 21, finally snagged a four-room unit in Bukit Panjang in September for $340,000. The price included a low $11,000 premium.
They preferred resale flats over new ones because those under the HDB's build-to-order (BTO) scheme typically take three years to finish, a wait they felt was too long.
Said Mr Teo: 'The major hindrance was the COV. Flipping through the papers, I could see some of the numbers were getting ridiculous, at more than $50,000.'
They grabbed the four-room flat in Bangkit Road when it came along. 'Though it was more than 20 years old, it was decent and something we could afford,' he said.
The couple, who have a seven-month-old son and a monthly household income of less than $3,500, also had additional help from the Government in the form of a $50,000 housing subsidy.
Mr Teo said the measures to curb speculation in the resale market had helped: 'Before the new measures, high COVs were common. But now I see maybe about three out of 10 sellers demanding a COV of less than $15,000. And that's a good sign.'
DARYL CHIN
Couple snag affordable unit after two-year quest
CIVIL servant Kelvin Teo and his wife have been looking for their dream home for almost two years.
But the experience was discouraging, with flat sellers wanting high cash amounts upfront, also known as cash-over-valuation (COV).
But that was before Aug 30, when cooling measures kicked in. These have shifted market dynamics in the couple's favour.
Mr Teo, 28, and his wife Alberta, 21, finally snagged a four-room unit in Bukit Panjang in September for $340,000. The price included a low $11,000 premium.
They preferred resale flats over new ones because those under the HDB's build-to-order (BTO) scheme typically take three years to finish, a wait they felt was too long.
Said Mr Teo: 'The major hindrance was the COV. Flipping through the papers, I could see some of the numbers were getting ridiculous, at more than $50,000.'
They grabbed the four-room flat in Bangkit Road when it came along. 'Though it was more than 20 years old, it was decent and something we could afford,' he said.
The couple, who have a seven-month-old son and a monthly household income of less than $3,500, also had additional help from the Government in the form of a $50,000 housing subsidy.
Mr Teo said the measures to curb speculation in the resale market had helped: 'Before the new measures, high COVs were common. But now I see maybe about three out of 10 sellers demanding a COV of less than $15,000. And that's a good sign.'
DARYL CHIN
CNA : HDB valuation, resale applications to go fully electronic
HDB valuation, resale applications to go fully electronic
By Mustafa Shafawi | Posted: 03 December 2010 1235 hrs
SINGAPORE : Valuation and resale applications to the HDB will go fully electronic from January 3 next year.
Currently, the majority of these applications are handled by housing agents and more than 85 per cent of all requests are already made online.
HDB said with full electronic submission, customers will benefit from the lower online fees.
The housing board said the move towards 'paper-less' transactions is also more environmentally friendly.
In moving towards full e-submission, HDB has made several enhancements to its ResaleNet system.
It will allow all users to book the First Appointment.
Housing agents who do not subscribe to the ResaleNet system can make use of e-Resale system to submit resale applications and valuation requests.
From January 3, HDB will also allow the buyer and seller, or their agents, to submit their portions of the resale application separately.
The move to allow separate application is also in line with the Estate Agents (Estate Agency Work) Regulations 2010 which disallow the same housing agent to be engaged by both the buyers and sellers in a transaction.
HDB will no longer accept hardcopy applications from 3 January 2011.
Those without Internet access can submit their online applications at the e-Lobby at HDB Hub, or at any HDB Branch Office.
- CNA /ls
By Mustafa Shafawi | Posted: 03 December 2010 1235 hrs
SINGAPORE : Valuation and resale applications to the HDB will go fully electronic from January 3 next year.
Currently, the majority of these applications are handled by housing agents and more than 85 per cent of all requests are already made online.
HDB said with full electronic submission, customers will benefit from the lower online fees.
The housing board said the move towards 'paper-less' transactions is also more environmentally friendly.
In moving towards full e-submission, HDB has made several enhancements to its ResaleNet system.
It will allow all users to book the First Appointment.
Housing agents who do not subscribe to the ResaleNet system can make use of e-Resale system to submit resale applications and valuation requests.
From January 3, HDB will also allow the buyer and seller, or their agents, to submit their portions of the resale application separately.
The move to allow separate application is also in line with the Estate Agents (Estate Agency Work) Regulations 2010 which disallow the same housing agent to be engaged by both the buyers and sellers in a transaction.
HDB will no longer accept hardcopy applications from 3 January 2011.
Those without Internet access can submit their online applications at the e-Lobby at HDB Hub, or at any HDB Branch Office.
- CNA /ls
ST : Land swop deal: Joint team holds 4th meeting
Dec 03,2010
Land swop deal: Joint team holds 4th meeting
OFFICIALS from Singapore and Malaysia met here earlier this week to discuss the implementation details arising from an agreement on Malayan Railway land.
It is the fourth meeting of the Malaysia-Singapore Joint Implementation Team, set up in May after breakthrough negotiations between the two countries' prime ministers. The team also met in July, August and October.
Prime Minister Lee Hsien Loong and Malaysian Prime Minister Najib Razak agreed in May to move forward on issues arising from the 1990 Points of Agreement on Malayan Railway land.
These included relocating the Malayan Railway train station from Tanjong Pagar to Woodlands. In September, both countries agreed to a land swop deal.
It involved a swop of six parcels of land in the Marina South and Ophir-Rochor areas in exchange for three parcels of railway land in Tanjong Pagar, Woodlands and Kranji and another three in Bukit Timah.
The Marina South and Ophir-Rochor land will be developed by M-S Pte Ltd, which is 60 per cent owned by Malaysia's Khazanah Nasional and 40 per cent owned by Singapore's Temasek Holdings.
The meeting was held 'in a cordial atmosphere', and both sides were pleased with the progress made by the sub-committees and working groups, a joint press statement said.
Foreign Affairs Ministry Permanent Secretary Bilahari Kausikan led the Singapore delegation, while Foreign Affairs Ministry secretary-general Mohd Radzi Abdul Rahman led the Malaysian team.
The team will next meet in Kuala Lumpur later this month, and complete its work by the end of the year.
Land swop deal: Joint team holds 4th meeting
OFFICIALS from Singapore and Malaysia met here earlier this week to discuss the implementation details arising from an agreement on Malayan Railway land.
It is the fourth meeting of the Malaysia-Singapore Joint Implementation Team, set up in May after breakthrough negotiations between the two countries' prime ministers. The team also met in July, August and October.
Prime Minister Lee Hsien Loong and Malaysian Prime Minister Najib Razak agreed in May to move forward on issues arising from the 1990 Points of Agreement on Malayan Railway land.
These included relocating the Malayan Railway train station from Tanjong Pagar to Woodlands. In September, both countries agreed to a land swop deal.
It involved a swop of six parcels of land in the Marina South and Ophir-Rochor areas in exchange for three parcels of railway land in Tanjong Pagar, Woodlands and Kranji and another three in Bukit Timah.
The Marina South and Ophir-Rochor land will be developed by M-S Pte Ltd, which is 60 per cent owned by Malaysia's Khazanah Nasional and 40 per cent owned by Singapore's Temasek Holdings.
The meeting was held 'in a cordial atmosphere', and both sides were pleased with the progress made by the sub-committees and working groups, a joint press statement said.
Foreign Affairs Ministry Permanent Secretary Bilahari Kausikan led the Singapore delegation, while Foreign Affairs Ministry secretary-general Mohd Radzi Abdul Rahman led the Malaysian team.
The team will next meet in Kuala Lumpur later this month, and complete its work by the end of the year.
ST : Singapore now more expensive for expats
Dec 03,2010
Singapore now more expensive for expats
It moves from 9th to 8th position in Asia, and 79th to 42nd globally: Survey
By Yasmine Yahya
OVER the past six months, Singapore has become even more expensive for expatriates to live in, climbing from ninth spot in Asia to No. 8, said the latest cost of living survey from ECA International.
Rising prices and the strengthening of the Singapore dollar against major currencies propelled Singapore in the cost of living stakes from 79th position globally to 42nd over the past year.
That means it is more expensive for expatriates to live in Singapore than Central London which is ranked 50th worldwide, but not New York, which came in at No.39, based on ECA's latest twice-yearly survey, released yesterday.
However, it is not all doom and gloom. ECA International regional director for Asia Lee Quane said the rise in Singapore's cost of living is a double-edged sword.
'For companies bringing senior talent into Singapore, the cost of an assignment will increase as higher allowances are required to maintain employees' purchasing power. On the other hand, companies sending employees out of Singapore can apply lower cost of living allowances and still provide sufficient remuneration to maintain a good standard of living.'
The difference between the cost of living in Singapore and that of Hong Kong, the sixth most expensive city in Asia, is also rapidly narrowing, he noted. Two years ago there was a 15 per cent gap in the cost of living between Hong Kong and Singapore. This gap fell to 7 per cent a year ago and now stands at just 2 per cent.
TV producer Sha Liang, 23, who hails from the United States, told The Straits Times that she does feel that certain costs in Singapore are high. Her monthly rent, for example, takes up a third of her salary.
However, an expatriate's cost of living will largely depend on his or her lifestyle, she added. 'If you eat at hawker centres every day, that's affordable. But if you go out with friends a lot and go to nice restaurants, then those bills do add up quickly.'
Overall, Tokyo maintained its position as the most expensive location in Asia and worldwide for expatriates. In fact, ECA International noted that the gap between Tokyo and other locations in the region is widening: a year ago, the difference in cost of living between Tokyo and Hong Kong was 45 per cent. Today, it is 55 per cent.
Stronger currencies have led to HR managers having to increase their cost of living allowances for those in Seoul and Tokyo. Even in typically low-cost locations such as Bangkok and Jakarta, where the relative low cost of living has increased recently, HR managers are having to consider introducing allowances. Equally, the weakening of the euro has seen the cost of living in Dublin plunge.
Worldwide, Luanda in Angola was the second most expensive place after Tokyo. The Japanese city of Nagoya came third.
The survey calculates cost of living allowances for employees assigned around the world. It compiles data on allowances for goods and services consumed by them, such as food, drinks, tobacco and clothing.
yasminey@sph.com.sg
--------------------------------------------------------------------------------
Most expensive Asian cities
1. Tokyo
2. Nagoya
3. Yokohama
4. Kobe
5. Seoul
6. Hong Kong
7. Shanghai
8. Singapore
9. Beijing
10. Busan
Singapore now more expensive for expats
It moves from 9th to 8th position in Asia, and 79th to 42nd globally: Survey
By Yasmine Yahya
OVER the past six months, Singapore has become even more expensive for expatriates to live in, climbing from ninth spot in Asia to No. 8, said the latest cost of living survey from ECA International.
Rising prices and the strengthening of the Singapore dollar against major currencies propelled Singapore in the cost of living stakes from 79th position globally to 42nd over the past year.
That means it is more expensive for expatriates to live in Singapore than Central London which is ranked 50th worldwide, but not New York, which came in at No.39, based on ECA's latest twice-yearly survey, released yesterday.
However, it is not all doom and gloom. ECA International regional director for Asia Lee Quane said the rise in Singapore's cost of living is a double-edged sword.
'For companies bringing senior talent into Singapore, the cost of an assignment will increase as higher allowances are required to maintain employees' purchasing power. On the other hand, companies sending employees out of Singapore can apply lower cost of living allowances and still provide sufficient remuneration to maintain a good standard of living.'
The difference between the cost of living in Singapore and that of Hong Kong, the sixth most expensive city in Asia, is also rapidly narrowing, he noted. Two years ago there was a 15 per cent gap in the cost of living between Hong Kong and Singapore. This gap fell to 7 per cent a year ago and now stands at just 2 per cent.
TV producer Sha Liang, 23, who hails from the United States, told The Straits Times that she does feel that certain costs in Singapore are high. Her monthly rent, for example, takes up a third of her salary.
However, an expatriate's cost of living will largely depend on his or her lifestyle, she added. 'If you eat at hawker centres every day, that's affordable. But if you go out with friends a lot and go to nice restaurants, then those bills do add up quickly.'
Overall, Tokyo maintained its position as the most expensive location in Asia and worldwide for expatriates. In fact, ECA International noted that the gap between Tokyo and other locations in the region is widening: a year ago, the difference in cost of living between Tokyo and Hong Kong was 45 per cent. Today, it is 55 per cent.
Stronger currencies have led to HR managers having to increase their cost of living allowances for those in Seoul and Tokyo. Even in typically low-cost locations such as Bangkok and Jakarta, where the relative low cost of living has increased recently, HR managers are having to consider introducing allowances. Equally, the weakening of the euro has seen the cost of living in Dublin plunge.
Worldwide, Luanda in Angola was the second most expensive place after Tokyo. The Japanese city of Nagoya came third.
The survey calculates cost of living allowances for employees assigned around the world. It compiles data on allowances for goods and services consumed by them, such as food, drinks, tobacco and clothing.
yasminey@sph.com.sg
--------------------------------------------------------------------------------
Most expensive Asian cities
1. Tokyo
2. Nagoya
3. Yokohama
4. Kobe
5. Seoul
6. Hong Kong
7. Shanghai
8. Singapore
9. Beijing
10. Busan
ST : $21m facelift for six private estates
Dec 03,2010
$21m facelift for six private estates
Another $3m will fund small-scale upgrades to benefit 200,000 homes
Mr Mah checking out a scarecrow created by residents in Jalan Remanja Park, during a visit to Hillview estate yesterday to view its upgraded facilities. With him are Hong Kah GRC MP Ang Mong Seng (second from right) and Sembawang GRC MP Maliki Osman (third from right). --ST PHOTO: NEO XIAOBIN
By Esther Teo
MORE than 5,000 private households are set to benefit from a $21 million facelift under the Government's Estate Upgrading Programme (EUP).
The properties, spread across six private estates, will see the money spent on the upgrading of parks, playgrounds and drainage infrastructure. Work is expected to be completed in three years.
The Ministry of National Development (MND) announced yesterday that the Jalan Mata Ayer, Faber Hills, Roxy, Lucky Heights and Cambridge estates, plus the Beng Wan, Moonstone Lane and St Michael's estate, have been selected to benefit from the seventh EUP.
An additional $3 million has been approved under the Interim EUP (I-EUP), which targets small-scale and timely improvements, to benefit an additional 200,000 private residential homes.
National Development Minister Mah Bow Tan said yesterday during a site visit to Hillview estate in Upper Bukit Timah that EUP improvements have helped bring residents together. The estate was in the fourth EUP batch and upgrading works were completed in July.
'It's not just the physical improvements... You provide the facilities, then you have an active neighbourhood community, and together they'll use these facilities properly and bring new residents in to take part in activities.'
The EUP was launched in 2000 and is targeted at older private estates, often more than 30 years old and with scope for enhancement.
The MND spent $117 million in upgrading 35 private estates, comprising more than 29,000 households, in its six previous batches. And between five and eight estates are expected to be selected every 11/2 to two years for the EUP.
The three-year I-EUP pilot scheme - which was launched in June last year - will look at providing faster upgrades of features such as footpaths, rain shelters, covered linkways and directional signs.
The initial $3 million will benefit private estates under 49 of the 68 eligible Citizens Consultative Committees (CCCs), with $25 million in total set aside over a three-year period.
Mr Mah said that as the I-EUP is a newly introduced programme, publicity for the initiative will be boosted so that more CCCs become familiar with it.
Residents in line to benefit from the I-EUP can look forward to using the new facilities as early as the second quarter of next year once building works are completed, MND said.
MND is also collaborating with national water agency PUB to integrate 'active, beautiful, clean waters' design features such as rain gardens and wetlands into the overall EUP upgrading plans.
And Windsor Park estate in Upper Thomson, which was in the EUP's sixth batch, has been selected for a pilot project.
Mr Mah said opposition wards will not be left out of the upgrading programme, noting that Sennett estate in Potong Pasir had been selected for the EUP's third batch in 2003.
'We select them based on criteria. We've already selected Potong Pasir. I don't see any reason why we cannot select Hougang, but the main thing is if they satisfy the criteria,' he added.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Previous batches
ESTATES that had been selected for the Estate Upgrading Programme in earlier batches include:
BATCH 5 (FEBRUARY 2007)
Happy Park
Yew Lian and Thomson Park
Mount Sinai
Chestnut
East View Garden
Opera Estate
Braddell Heights
BATCH 6 (NOVEMBER 2008)
Seletar and Gerald Drive
Kebun Bahru Villas
Windsor Park and Thomson Ridge
Charlton Park
Sembawang Springs
Jalan Bunga Rampai
Lorong Melayu
Phoenix
$21m facelift for six private estates
Another $3m will fund small-scale upgrades to benefit 200,000 homes
Mr Mah checking out a scarecrow created by residents in Jalan Remanja Park, during a visit to Hillview estate yesterday to view its upgraded facilities. With him are Hong Kah GRC MP Ang Mong Seng (second from right) and Sembawang GRC MP Maliki Osman (third from right). --ST PHOTO: NEO XIAOBIN
By Esther Teo
MORE than 5,000 private households are set to benefit from a $21 million facelift under the Government's Estate Upgrading Programme (EUP).
The properties, spread across six private estates, will see the money spent on the upgrading of parks, playgrounds and drainage infrastructure. Work is expected to be completed in three years.
The Ministry of National Development (MND) announced yesterday that the Jalan Mata Ayer, Faber Hills, Roxy, Lucky Heights and Cambridge estates, plus the Beng Wan, Moonstone Lane and St Michael's estate, have been selected to benefit from the seventh EUP.
An additional $3 million has been approved under the Interim EUP (I-EUP), which targets small-scale and timely improvements, to benefit an additional 200,000 private residential homes.
National Development Minister Mah Bow Tan said yesterday during a site visit to Hillview estate in Upper Bukit Timah that EUP improvements have helped bring residents together. The estate was in the fourth EUP batch and upgrading works were completed in July.
'It's not just the physical improvements... You provide the facilities, then you have an active neighbourhood community, and together they'll use these facilities properly and bring new residents in to take part in activities.'
The EUP was launched in 2000 and is targeted at older private estates, often more than 30 years old and with scope for enhancement.
The MND spent $117 million in upgrading 35 private estates, comprising more than 29,000 households, in its six previous batches. And between five and eight estates are expected to be selected every 11/2 to two years for the EUP.
The three-year I-EUP pilot scheme - which was launched in June last year - will look at providing faster upgrades of features such as footpaths, rain shelters, covered linkways and directional signs.
The initial $3 million will benefit private estates under 49 of the 68 eligible Citizens Consultative Committees (CCCs), with $25 million in total set aside over a three-year period.
Mr Mah said that as the I-EUP is a newly introduced programme, publicity for the initiative will be boosted so that more CCCs become familiar with it.
Residents in line to benefit from the I-EUP can look forward to using the new facilities as early as the second quarter of next year once building works are completed, MND said.
MND is also collaborating with national water agency PUB to integrate 'active, beautiful, clean waters' design features such as rain gardens and wetlands into the overall EUP upgrading plans.
And Windsor Park estate in Upper Thomson, which was in the EUP's sixth batch, has been selected for a pilot project.
Mr Mah said opposition wards will not be left out of the upgrading programme, noting that Sennett estate in Potong Pasir had been selected for the EUP's third batch in 2003.
'We select them based on criteria. We've already selected Potong Pasir. I don't see any reason why we cannot select Hougang, but the main thing is if they satisfy the criteria,' he added.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Previous batches
ESTATES that had been selected for the Estate Upgrading Programme in earlier batches include:
BATCH 5 (FEBRUARY 2007)
Happy Park
Yew Lian and Thomson Park
Mount Sinai
Chestnut
East View Garden
Opera Estate
Braddell Heights
BATCH 6 (NOVEMBER 2008)
Seletar and Gerald Drive
Kebun Bahru Villas
Windsor Park and Thomson Ridge
Charlton Park
Sembawang Springs
Jalan Bunga Rampai
Lorong Melayu
Phoenix
ST : Bukit Panjang EC site: CDL unit places top bid
Dec 03,2010
Bukit Panjang EC site: CDL unit places top bid
By Cheryl Lim
CITY Developments (CDL) unit Grand Isle Holdings has emerged as the top bidder for an executive condominium (EC) site in Segar Road.
Yesterday's tender results saw CDL's top bid of almost $182 million, or $271 per square foot per plot ratio (psf ppr), coming in 15.5 per cent ahead of the second-highest offer of $157.5 million, or $234 psf ppr, submitted by EL Development.
Three other bids were submitted - Opal Star and Lum Chang Building Contractors sent in a joint offer of $128.3 million, Pinnacle Realty bid $120 million, and Sim Lian Land came in with the lowest tender at $113 million.
A CDL spokesman said the developer has plans to build a 15- to 17-storey EC on the 1,936 sq ft site and, if awarded, it would be CDL's fourth EC project.
Previous ECs developed by CDL were The Esparis in Pasir Ris, The Florida in Hougang, and Nuovo in Ang Mo Kio.
Located in Bukit Panjang, the 99-year leasehold Segar Road site has a plot ratio of 3 and a maximum gross floor area of 5,806.6 sq ft. It can potentially yield an estimated 570 units.
Mr Joseph Tan, CBRE's residential executive director, said CDL's bid translates to a breakeven cost of $570 psf to $590 psf.
He added that there will be a market for the new EC project if it is priced
20 per cent to 25 per cent lower than nearby private condo Tree House, which sold at an average price of $830 psf in the second quarter of this year.
ECs are a hybrid of public and private housing with ownership and resale restrictions applying in the first 10 years, after which they are fully privatised.
Boasting private condo facilities, they are an attractive housing option for buyers who meet the eligibility criteria, including a monthly household income ceiling of $10,000.
Under the current Residential Property Act, foreign developers are subject to the stipulated project completion period of five years.
This rule, however, does not apply to local developers.
Bukit Panjang EC site: CDL unit places top bid
By Cheryl Lim
CITY Developments (CDL) unit Grand Isle Holdings has emerged as the top bidder for an executive condominium (EC) site in Segar Road.
Yesterday's tender results saw CDL's top bid of almost $182 million, or $271 per square foot per plot ratio (psf ppr), coming in 15.5 per cent ahead of the second-highest offer of $157.5 million, or $234 psf ppr, submitted by EL Development.
Three other bids were submitted - Opal Star and Lum Chang Building Contractors sent in a joint offer of $128.3 million, Pinnacle Realty bid $120 million, and Sim Lian Land came in with the lowest tender at $113 million.
A CDL spokesman said the developer has plans to build a 15- to 17-storey EC on the 1,936 sq ft site and, if awarded, it would be CDL's fourth EC project.
Previous ECs developed by CDL were The Esparis in Pasir Ris, The Florida in Hougang, and Nuovo in Ang Mo Kio.
Located in Bukit Panjang, the 99-year leasehold Segar Road site has a plot ratio of 3 and a maximum gross floor area of 5,806.6 sq ft. It can potentially yield an estimated 570 units.
Mr Joseph Tan, CBRE's residential executive director, said CDL's bid translates to a breakeven cost of $570 psf to $590 psf.
He added that there will be a market for the new EC project if it is priced
20 per cent to 25 per cent lower than nearby private condo Tree House, which sold at an average price of $830 psf in the second quarter of this year.
ECs are a hybrid of public and private housing with ownership and resale restrictions applying in the first 10 years, after which they are fully privatised.
Boasting private condo facilities, they are an attractive housing option for buyers who meet the eligibility criteria, including a monthly household income ceiling of $10,000.
Under the current Residential Property Act, foreign developers are subject to the stipulated project completion period of five years.
This rule, however, does not apply to local developers.
Friday, December 3, 2010
ST : Court clears sale of $37m bungalow
Dec 02,2010
RIDOUT PROPERTY BATTLE
Court clears sale of $37m bungalow
Judge rules against group that claimed it had $20m deal to buy property
The purchase of the Ridout Road bungalow is expected to be concluded some time this month. But EC Investment Holding has filed an appeal to overturn the sale. -- ST PHOTO: CAROLINE CHIA
By Gabriel Chen
A COURT has ruled against a group who claimed they had a deal to buy a Ridout Road bungalow for $20 million. The move paves the way for the owner, Indonesian-born businessman Agus Anwar, to sell the house for $37 million to a banker who served the late Nina Wang, who was Asia's richest woman.
Two parties - EC Investment Holding, owned by Mr Tan Koo Chuan of Yi Kai Group and Mr Melvin Poh of Fission Group, and former Goldman Sachs banker Thomas Chan - were fighting for control of the house at 39A Ridout Road that Mr Agus bought in 2006.
But three months ago, the High Court ordered the sale of the property in the upmarket Holland district to Mr Chan for $37 million.
The purchase of the two-storey property by Mr Chan - which sits on a 40,600 sq ft plot, complete with a tennis court and swimming pool in the good-class bungalow area - is expected to be concluded some time this month.
But the story may not be over yet. EC Investment Holding has filed an appeal to overturn the sale with the hearing expected to be held in March, sources say.
Mr Agus originally acquired the 40,600 sq ft house for $28 million in 2006. He had paid $11 million and the stamp duty of over $744,000 from his own funds, and taking the balance of $17 million from a $30 million facility extended to him by Hong Leong Finance.
However, the financial crisis hit his finances and, on May 16, 2008, Hong Leong Finance recalled the loan and terminated the facility after Mr Agus failed to make his payments.
'Agus Anwar was coming under increasing financial pressure. His investments were then badly hit by the global financial crisis sparked off by the collapse of Lehman Brothers in September 2008,' according to a High Court judgment dated September this year.
EC Investment Holding claims that in the terms of a deal dated June 8 last year, it was granted an option to buy Mr Agus' property for $20 million, in exchange for a $1.5 million option fee. Mr Chan also obtained an option to buy the property for $37 million on Oct 8 last year.
Justice Quentin Loh, in his September judgment, noted that EC Investment knew before it entered into the transaction that Mr Agus was desperate for a short-term loan.
He said that EC Investment Holding's Mr Tan 'feigned ignorance on many things and kept up the simple mantra that he was only interested in property, smelt a good deal and went after it'.
Based on the evidence, the court did not grant EC Investment's request that the sale be completed.
EC's Yi Kai and Fission are behind the development Alexis along Alexandra Road.
As for Mr Chan, Justice Loh said that 'everyone accepted that he had innocently walked straight into this melee'. Mr Chan had wanted to buy a bungalow and after being introduced to the property, acted decisively in putting down an option fee. He did not meet Mr Agus at all and was unaware of the earlier option.
Mr Agus, said to be in his late 50s and now a Singaporean, is no stranger to court battles.
In January, he was ordered by the High Court to make good on the payment of a $10.5 million loan he received two years ago from an investment firm while in financial difficulty.
Mr Agus was once a significant shareholder in two Indonesian banks, PT Bank Kredit Asia and PT Bank Pelita, but there was a run on these banks during the 1997 financial meltdown and they were taken over by the Indonesian Bank Restructuring Agency.
Mr Agus came to Singapore in 2000 and became a citizen in 2004 - the same year he made headlines for allegedly owing the Indonesian government 3.2 trillion rupiah, or $467 million.
The $37 million will help him clear more of his debt - as of the middle of this year, he had personal available assets of nearly $60 million, but owed creditors $103.3 million.
But, with March's appeal hearing on the horizon, the wrangle over the Ridout property could drag on.
gabrielc@sph.com.sg
---------------------------------------------------
Who is Thomas Chan?
THE buyer of the house in Ridout Road, Mr Thomas Chan, is a high-flying banker, hailing from the investment management division at Goldman Sachs. He left the American firm earlier this year and has since started his own advisory practice here.
According to those who know him, he is a low-key character who, although wealthy, does not brag about his possessions.
'He's very quiet, polished, and almost like a loner,' said a banker who caught up with him earlier this year. 'He has a couple of cars, but you'll never know he has several because he doesn't talk about them.'
Mr Chan is apparently a Singaporean, but hails originally from Hong Kong. Said to be in his 40s, he helped the late Hong Kong billionaire Nina Wang with her share transactions.
A keen investor in luxury properties, he is said to have picked up a property at Queen Astrid Park for about $28.3 million from Mr Zain Fancy, formerly head of Morgan Stanley Real Estate Investing for Asia Pacific, earlier this year.
And last year, Mr Chan sold a site in Dalvey Road for $27.01 million. He is also reported to have bought a bungalow in Belmont Road for $30.5 million from Mr Ong Kok Thai, managing director of Vanguard Interiors and the Peranakan Place Group, also last year.
Court documents say Mr Chan plans to build a new bungalow at Ridout Road for himself and his family.
GABRIEL CHEN
RIDOUT PROPERTY BATTLE
Court clears sale of $37m bungalow
Judge rules against group that claimed it had $20m deal to buy property
The purchase of the Ridout Road bungalow is expected to be concluded some time this month. But EC Investment Holding has filed an appeal to overturn the sale. -- ST PHOTO: CAROLINE CHIA
By Gabriel Chen
A COURT has ruled against a group who claimed they had a deal to buy a Ridout Road bungalow for $20 million. The move paves the way for the owner, Indonesian-born businessman Agus Anwar, to sell the house for $37 million to a banker who served the late Nina Wang, who was Asia's richest woman.
Two parties - EC Investment Holding, owned by Mr Tan Koo Chuan of Yi Kai Group and Mr Melvin Poh of Fission Group, and former Goldman Sachs banker Thomas Chan - were fighting for control of the house at 39A Ridout Road that Mr Agus bought in 2006.
But three months ago, the High Court ordered the sale of the property in the upmarket Holland district to Mr Chan for $37 million.
The purchase of the two-storey property by Mr Chan - which sits on a 40,600 sq ft plot, complete with a tennis court and swimming pool in the good-class bungalow area - is expected to be concluded some time this month.
But the story may not be over yet. EC Investment Holding has filed an appeal to overturn the sale with the hearing expected to be held in March, sources say.
Mr Agus originally acquired the 40,600 sq ft house for $28 million in 2006. He had paid $11 million and the stamp duty of over $744,000 from his own funds, and taking the balance of $17 million from a $30 million facility extended to him by Hong Leong Finance.
However, the financial crisis hit his finances and, on May 16, 2008, Hong Leong Finance recalled the loan and terminated the facility after Mr Agus failed to make his payments.
'Agus Anwar was coming under increasing financial pressure. His investments were then badly hit by the global financial crisis sparked off by the collapse of Lehman Brothers in September 2008,' according to a High Court judgment dated September this year.
EC Investment Holding claims that in the terms of a deal dated June 8 last year, it was granted an option to buy Mr Agus' property for $20 million, in exchange for a $1.5 million option fee. Mr Chan also obtained an option to buy the property for $37 million on Oct 8 last year.
Justice Quentin Loh, in his September judgment, noted that EC Investment knew before it entered into the transaction that Mr Agus was desperate for a short-term loan.
He said that EC Investment Holding's Mr Tan 'feigned ignorance on many things and kept up the simple mantra that he was only interested in property, smelt a good deal and went after it'.
Based on the evidence, the court did not grant EC Investment's request that the sale be completed.
EC's Yi Kai and Fission are behind the development Alexis along Alexandra Road.
As for Mr Chan, Justice Loh said that 'everyone accepted that he had innocently walked straight into this melee'. Mr Chan had wanted to buy a bungalow and after being introduced to the property, acted decisively in putting down an option fee. He did not meet Mr Agus at all and was unaware of the earlier option.
Mr Agus, said to be in his late 50s and now a Singaporean, is no stranger to court battles.
In January, he was ordered by the High Court to make good on the payment of a $10.5 million loan he received two years ago from an investment firm while in financial difficulty.
Mr Agus was once a significant shareholder in two Indonesian banks, PT Bank Kredit Asia and PT Bank Pelita, but there was a run on these banks during the 1997 financial meltdown and they were taken over by the Indonesian Bank Restructuring Agency.
Mr Agus came to Singapore in 2000 and became a citizen in 2004 - the same year he made headlines for allegedly owing the Indonesian government 3.2 trillion rupiah, or $467 million.
The $37 million will help him clear more of his debt - as of the middle of this year, he had personal available assets of nearly $60 million, but owed creditors $103.3 million.
But, with March's appeal hearing on the horizon, the wrangle over the Ridout property could drag on.
gabrielc@sph.com.sg
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Who is Thomas Chan?
THE buyer of the house in Ridout Road, Mr Thomas Chan, is a high-flying banker, hailing from the investment management division at Goldman Sachs. He left the American firm earlier this year and has since started his own advisory practice here.
According to those who know him, he is a low-key character who, although wealthy, does not brag about his possessions.
'He's very quiet, polished, and almost like a loner,' said a banker who caught up with him earlier this year. 'He has a couple of cars, but you'll never know he has several because he doesn't talk about them.'
Mr Chan is apparently a Singaporean, but hails originally from Hong Kong. Said to be in his 40s, he helped the late Hong Kong billionaire Nina Wang with her share transactions.
A keen investor in luxury properties, he is said to have picked up a property at Queen Astrid Park for about $28.3 million from Mr Zain Fancy, formerly head of Morgan Stanley Real Estate Investing for Asia Pacific, earlier this year.
And last year, Mr Chan sold a site in Dalvey Road for $27.01 million. He is also reported to have bought a bungalow in Belmont Road for $30.5 million from Mr Ong Kok Thai, managing director of Vanguard Interiors and the Peranakan Place Group, also last year.
Court documents say Mr Chan plans to build a new bungalow at Ridout Road for himself and his family.
GABRIEL CHEN
ST : Lion City Hotel site up for sale
Dec 02,2010
Lion City Hotel site up for sale
Freehold plot may get bids of $300m for residential, commercial development
The site of the Lion City Hotel and neighbouring Hollywood Theatre, near Paya Lebar MRT station, is set to be redeveloped for both residential and commercial use. -- PHOTO: KNIGHT FRANK
By Esther Teo
THE iconic Lion City Hotel and the adjoining Hollywood Theatre site have been put up for sale and could be in line for redevelopment into swanky new homes and shops.
The 147,909 sq ft freehold plot, which has been launched for tender with a closing date of Jan 6, is expected to attract bids topping $300 million from developers.
Once sold, it is likely that the land will host retail shops or offices and more than 200 new homes - the first time a large project of more than 100 units has been developed in the area since Sims Residences and Vistaya View were completed in 2003.
Such a project will further boost the rejuvenation of the area and is in line with the Government's plans for Paya Lebar Central to be developed into a 'lively, pedestrian-friendly commercial hub with a distinct cultural identity'.
Including an estimated development charge of $77.8 million payable for the re-zoning on top of the projected price of $300 million, developers can expect to foot $753 per sq ft (psf) per plot ratio.
The site, located within 350m of Paya Lebar MRT Station, is zoned for hotel and commercial use in the 2008 Masterplan.
But the Urban Redevelopment Authority has granted approval for it to be redeveloped into a mix of residential and commercial developments up to a gross plot ratio of 3.39, according to joint marketing agents Landmark Property Advisers and Knight Frank.
The plot consists of 243,805 sq ft of residential gross floor area (GFA) and 264,119 sq ft of commercial GFA, which will allow for a shopping centre similar to that of Katong Mall and some 240 apartments of an average size of 1,000 sq ft, the marketing agents said.
The GFA, however, includes a substation site of about 2,048 sq ft currently owned by SP PowerAssets.
Mr Colin Tan, research and consultancy director of property firm Chesterton Suntec International, said the residential segment is likely to perform well since it is close to the MRT station. The long-term potential of the Paya Lebar area might also appeal to buyers, he added.
Paya Lebar Central is one of the three commercial hubs selected to provide alternative locations for businesses and to bring jobs closer to homes as part of the Urban Redevelopment Authority's decentralisation strategy. The other two are Jurong Lake District and Kallang Riverside.
The Lion City Hotel was built by the late property magnate Wee Thiam Siew some 40 years ago and the Wee family has been operating it ever since.
The old Hollywood Theatre used to be the location of City Harvest Church, but it has since been leased to Sheng Siong supermarket.
With the site now being allowed to switch to residential and commercial uses, the family has decided to divest this asset as property development is not their core business, the statement from the marketing agents said.
'We expect keen interest from developers as it is seldom Singapore has a freehold site in single ownership suitable for large-scale development being offered for sale,' the marketing agents added.
esthert@sph.com.sg
Lion City Hotel site up for sale
Freehold plot may get bids of $300m for residential, commercial development
The site of the Lion City Hotel and neighbouring Hollywood Theatre, near Paya Lebar MRT station, is set to be redeveloped for both residential and commercial use. -- PHOTO: KNIGHT FRANK
By Esther Teo
THE iconic Lion City Hotel and the adjoining Hollywood Theatre site have been put up for sale and could be in line for redevelopment into swanky new homes and shops.
The 147,909 sq ft freehold plot, which has been launched for tender with a closing date of Jan 6, is expected to attract bids topping $300 million from developers.
Once sold, it is likely that the land will host retail shops or offices and more than 200 new homes - the first time a large project of more than 100 units has been developed in the area since Sims Residences and Vistaya View were completed in 2003.
Such a project will further boost the rejuvenation of the area and is in line with the Government's plans for Paya Lebar Central to be developed into a 'lively, pedestrian-friendly commercial hub with a distinct cultural identity'.
Including an estimated development charge of $77.8 million payable for the re-zoning on top of the projected price of $300 million, developers can expect to foot $753 per sq ft (psf) per plot ratio.
The site, located within 350m of Paya Lebar MRT Station, is zoned for hotel and commercial use in the 2008 Masterplan.
But the Urban Redevelopment Authority has granted approval for it to be redeveloped into a mix of residential and commercial developments up to a gross plot ratio of 3.39, according to joint marketing agents Landmark Property Advisers and Knight Frank.
The plot consists of 243,805 sq ft of residential gross floor area (GFA) and 264,119 sq ft of commercial GFA, which will allow for a shopping centre similar to that of Katong Mall and some 240 apartments of an average size of 1,000 sq ft, the marketing agents said.
The GFA, however, includes a substation site of about 2,048 sq ft currently owned by SP PowerAssets.
Mr Colin Tan, research and consultancy director of property firm Chesterton Suntec International, said the residential segment is likely to perform well since it is close to the MRT station. The long-term potential of the Paya Lebar area might also appeal to buyers, he added.
Paya Lebar Central is one of the three commercial hubs selected to provide alternative locations for businesses and to bring jobs closer to homes as part of the Urban Redevelopment Authority's decentralisation strategy. The other two are Jurong Lake District and Kallang Riverside.
The Lion City Hotel was built by the late property magnate Wee Thiam Siew some 40 years ago and the Wee family has been operating it ever since.
The old Hollywood Theatre used to be the location of City Harvest Church, but it has since been leased to Sheng Siong supermarket.
With the site now being allowed to switch to residential and commercial uses, the family has decided to divest this asset as property development is not their core business, the statement from the marketing agents said.
'We expect keen interest from developers as it is seldom Singapore has a freehold site in single ownership suitable for large-scale development being offered for sale,' the marketing agents added.
esthert@sph.com.sg
ST : Condo-style public housing plot attracts only two bids
Dec 01,2010
Condo-style public housing plot attracts only two bids
By Daryl Chin
A COMPANY linked to construction firm Low Keng Huat yesterday put in the top bid for a public housing site under the Design, Build and Sell Scheme (DBSS) for condo-style public flats.
But there was not much competition: only one other bid came in for the plot at Upper Serangoon Road opposite Serangoon Secondary School, the Housing Board said yesterday. This is the weakest reception for a DBSS tender since 2008.
Kwan Hwee Investment beat the other contender, Sim Lian Land, with a bid of $155.23 million. The company came in second in a tender last month for a DBSS site at Bedok Reservoir Crescent.
The Upper Serangoon plot measures 215,278 sq ft and has a maximum gross floor area of 753,474 sq ft. This works out to be about $206 per square foot per plot ratio (psf ppf).
The site is estimated to yield 630 dwelling units.
Mr Nicholas Mak, research executive director for SLP International Property Consultants, said the recent slew of sites announced for sale by the Government could be one of the reasons for the low number of bids for this plot.
The Government Land Sales programme for the first half of next year will have a total of 30 sites that can generate a record 14,300 residential units - higher than the 13,900 residential units offered for the second half of this year.
For that reason, said Mr Mak, some developers may be conserving their residential resources for upcoming land tenders.
'Another reason is that some developers may also be concerned that the HDB resale market may cool, thereby reducing the demand for DBSS flats,' he said.
He estimates that Kwan Hwee Investment's bid could translate to a break-even cost of about $420 to 450 psf. He added that this would mean a five-room flat in the project could be launched at a price of $500,000 to $535,000.
Meanwhile, Punggol will soon see the launch of its first executive condominium, located in Punggol Central.
Prices at Prive will average between $660 and $690 psf, said NTUC Choice Homes Co-operative in a press release yesterday. It is jointly developing the project with CEL Development.
The four-tower development will comprise 680 apartments, ranging from two- to four-bedroom units.
Apartment sizes start from 775 sq ft for a two-bedder to 1,442 sq ft for a four-bedroom unit.
Viewing and e-application start from Friday, while sales bookings start from Dec 10.
Additional reporting by Cheryl Lim
At another development Prive the first executive condominium in Punggol, prices will average between $660 and $690 psf for the 680 apartments. --PHOTO: NTUC CHOICE HOMES
Condo-style public housing plot attracts only two bids
By Daryl Chin
A COMPANY linked to construction firm Low Keng Huat yesterday put in the top bid for a public housing site under the Design, Build and Sell Scheme (DBSS) for condo-style public flats.
But there was not much competition: only one other bid came in for the plot at Upper Serangoon Road opposite Serangoon Secondary School, the Housing Board said yesterday. This is the weakest reception for a DBSS tender since 2008.
Kwan Hwee Investment beat the other contender, Sim Lian Land, with a bid of $155.23 million. The company came in second in a tender last month for a DBSS site at Bedok Reservoir Crescent.
The Upper Serangoon plot measures 215,278 sq ft and has a maximum gross floor area of 753,474 sq ft. This works out to be about $206 per square foot per plot ratio (psf ppf).
The site is estimated to yield 630 dwelling units.
Mr Nicholas Mak, research executive director for SLP International Property Consultants, said the recent slew of sites announced for sale by the Government could be one of the reasons for the low number of bids for this plot.
The Government Land Sales programme for the first half of next year will have a total of 30 sites that can generate a record 14,300 residential units - higher than the 13,900 residential units offered for the second half of this year.
For that reason, said Mr Mak, some developers may be conserving their residential resources for upcoming land tenders.
'Another reason is that some developers may also be concerned that the HDB resale market may cool, thereby reducing the demand for DBSS flats,' he said.
He estimates that Kwan Hwee Investment's bid could translate to a break-even cost of about $420 to 450 psf. He added that this would mean a five-room flat in the project could be launched at a price of $500,000 to $535,000.
Meanwhile, Punggol will soon see the launch of its first executive condominium, located in Punggol Central.
Prices at Prive will average between $660 and $690 psf, said NTUC Choice Homes Co-operative in a press release yesterday. It is jointly developing the project with CEL Development.
The four-tower development will comprise 680 apartments, ranging from two- to four-bedroom units.
Apartment sizes start from 775 sq ft for a two-bedder to 1,442 sq ft for a four-bedroom unit.
Viewing and e-application start from Friday, while sales bookings start from Dec 10.
Additional reporting by Cheryl Lim
At another development Prive the first executive condominium in Punggol, prices will average between $660 and $690 psf for the 680 apartments. --PHOTO: NTUC CHOICE HOMES
ST : Developers may baulk at price tags
Dec 01,2010
COLLECTIVE SALES
Developers may baulk at price tags
Larger plots going on the market but reserve price may prove sticking point
By Esther Teo
MORE and larger collective sales are in the pipeline as home owners attempt to cash in on the hot property market - but experts say the actual number of successful sales might just disappoint.
Hawaii Tower along Meyer Road is among those in the latest batch to have secured the necessary 80 per cent approval from residents, along with former HUDC estate Pine Grove. And more than 53 per cent support has been secured so far in the collective sale process for Pearl Bank apartments in Outram.
The Straits Times understands that the reserve price for Hawaii Tower's 192,340 sq ft plot, which was originally developed in 1984, has been set at $700 million.
This excludes a development charge of $55 million which, when included, works out to about $1,402 per sq feet per plot ratio. This is believed to be the freehold development's third collective sale attempt.
Marketing agent CB Richard Ellis (CBRE) said in a notice posted at the District 15 development that owners of 110 of the 135 apartments had signed the collective sale agreement (CSA) as of Nov 24.
This equates to 80.93 per cent of the share values and 80.2 per cent of the strata area, CBRE stated.
Owners of the three-bedroom units of about 2,200 sq ft each are expected to pocket an average of just over $5 million, while owners of the six 4,300 sq ft penthouses can expect a windfall of $8.8 million if the reserve price is met. The tender is expected to open early this month and close at the end of next month.
Pine Grove was previously reported to have been put up for collective sale at a record-breaking $1.7 billion reserve price, after it achieved the crucial 80 per cent approval last month.
After the five-day cooling-off period, 534 out of 660 units - making up 80.9 per cent of the total share values and 80.63 per cent of the total strata area of the development - had signed the CSA.
Although more collective sale tenders are expected to come on the market in the first half of next year, experts say a wide gulf could be opening up between owners' asking price expectations and what developers are willing to pay.
They add that high reserve prices and the bumper release of state land in the government land sales programme might reduce demand from developers cautious after the Government's recent property cooling measures.
Mr Karamjit Singh, managing director of Credo Real Estate, said that while some collective sale projects set reserve prices in line with the market, others could seek the comfort of higher prices to assure themselves of sufficient profit to purchase replacement homes.
Even then, those that start off realistically may find themselves needing to raise the reserve price midway to win the 80 per cent approval, he added.
EL Development managing director Lim Yew Soon said that large quantums for mega sites were risky for single developers and would mostly price out small to mid-sized developers.
Development charges have increased substantially and the new rules regarding the completion period for developers with foreign shareholders would place further downward pressure on what developers are willing to bid, he added.
The proposed amendment to the Residential Property Act, which is expected to take effect early next year, will apply to private projects developed by developers with at least one foreign shareholder or foreign director - effectively covering most listed developers.
Such projects, built on residential sites bought from private-sector sources including collective sales, will in future have to be completed within a stipulated period. If not, developers could not only lose their bankers' guarantees, as is the case now, but would also have to pay the state for any time extension.
DMG & Partners property analyst Brandon Lee said these amendments are more likely to affect prospective collective sales.
'Developers who now acquire (collective sale) sites will effectively have their building period cut down from seven to five years. As such, we reckon this could act as a further dampener to the still-sluggish (collective sale) market, where developers replenish their mid- and high-end land bank,' he noted.
But property market watchers say developers are often keen on such sites as they provide an opportunity to purchase freehold land in prime locations, unlike those from the government land sales programme, which are on 99-year leases.
CapitaLand Group chief executive Liew Mun Leong said last week that it was 'a possibility' that CapitaLand could be interested in bidding for the Pine Grove site.
Although the plot is attractive, the price tag of $1.7 billion is a hefty one, he said, and the group might consider tying up with partners to bid for the site.
esthert@sph.com.sg
COLLECTIVE SALES
Developers may baulk at price tags
Larger plots going on the market but reserve price may prove sticking point
By Esther Teo
MORE and larger collective sales are in the pipeline as home owners attempt to cash in on the hot property market - but experts say the actual number of successful sales might just disappoint.
Hawaii Tower along Meyer Road is among those in the latest batch to have secured the necessary 80 per cent approval from residents, along with former HUDC estate Pine Grove. And more than 53 per cent support has been secured so far in the collective sale process for Pearl Bank apartments in Outram.
The Straits Times understands that the reserve price for Hawaii Tower's 192,340 sq ft plot, which was originally developed in 1984, has been set at $700 million.
This excludes a development charge of $55 million which, when included, works out to about $1,402 per sq feet per plot ratio. This is believed to be the freehold development's third collective sale attempt.
Marketing agent CB Richard Ellis (CBRE) said in a notice posted at the District 15 development that owners of 110 of the 135 apartments had signed the collective sale agreement (CSA) as of Nov 24.
This equates to 80.93 per cent of the share values and 80.2 per cent of the strata area, CBRE stated.
Owners of the three-bedroom units of about 2,200 sq ft each are expected to pocket an average of just over $5 million, while owners of the six 4,300 sq ft penthouses can expect a windfall of $8.8 million if the reserve price is met. The tender is expected to open early this month and close at the end of next month.
Pine Grove was previously reported to have been put up for collective sale at a record-breaking $1.7 billion reserve price, after it achieved the crucial 80 per cent approval last month.
After the five-day cooling-off period, 534 out of 660 units - making up 80.9 per cent of the total share values and 80.63 per cent of the total strata area of the development - had signed the CSA.
Although more collective sale tenders are expected to come on the market in the first half of next year, experts say a wide gulf could be opening up between owners' asking price expectations and what developers are willing to pay.
They add that high reserve prices and the bumper release of state land in the government land sales programme might reduce demand from developers cautious after the Government's recent property cooling measures.
Mr Karamjit Singh, managing director of Credo Real Estate, said that while some collective sale projects set reserve prices in line with the market, others could seek the comfort of higher prices to assure themselves of sufficient profit to purchase replacement homes.
Even then, those that start off realistically may find themselves needing to raise the reserve price midway to win the 80 per cent approval, he added.
EL Development managing director Lim Yew Soon said that large quantums for mega sites were risky for single developers and would mostly price out small to mid-sized developers.
Development charges have increased substantially and the new rules regarding the completion period for developers with foreign shareholders would place further downward pressure on what developers are willing to bid, he added.
The proposed amendment to the Residential Property Act, which is expected to take effect early next year, will apply to private projects developed by developers with at least one foreign shareholder or foreign director - effectively covering most listed developers.
Such projects, built on residential sites bought from private-sector sources including collective sales, will in future have to be completed within a stipulated period. If not, developers could not only lose their bankers' guarantees, as is the case now, but would also have to pay the state for any time extension.
DMG & Partners property analyst Brandon Lee said these amendments are more likely to affect prospective collective sales.
'Developers who now acquire (collective sale) sites will effectively have their building period cut down from seven to five years. As such, we reckon this could act as a further dampener to the still-sluggish (collective sale) market, where developers replenish their mid- and high-end land bank,' he noted.
But property market watchers say developers are often keen on such sites as they provide an opportunity to purchase freehold land in prime locations, unlike those from the government land sales programme, which are on 99-year leases.
CapitaLand Group chief executive Liew Mun Leong said last week that it was 'a possibility' that CapitaLand could be interested in bidding for the Pine Grove site.
Although the plot is attractive, the price tag of $1.7 billion is a hefty one, he said, and the group might consider tying up with partners to bid for the site.
esthert@sph.com.sg
BT : New rule may weigh on prices of luxury condos
Business Times - 30 Nov 2010
New rule may weigh on prices of luxury condos
Developers lose flexibility to time their construction as delays could spell big payouts on their part
By KALPANA RASHIWALA
(SINGAPORE) The prices of luxury condos have continued to rise this year but a new rule may soon tie the hands of the developers.
Till now, many have picked their time to launch developments when sentiments are good and decent prices can be charged. But under the rule changes which are expected to kick in early next year, they may lose this luxury.
If they bust the project completion period on sites bought from private sector sources, they stand to lose not just the 10 per cent bankers' guarantee for land cost, but could also end up making huge payments for time extension.
All this could force them to launch earlier than they might like and affect prices, market watchers said.
The median price of new luxury condo transactions stood at $3,265 per square foot in Q3 this year, an increase of 18.7 per cent year to date, according to CB Richard Ellis' analysis. However, the figure is still about 13 per cent shy of the peak achieved in Q4 2007.
A question mark now hangs over whether the previous peak median price of $3,750 psf can be scaled next year.
CBRE's compilation shows about 1,500-odd luxury non-landed homes could be generated on projects that have received planning approval from Urban Redevelopment Authority and which have yet to be launched. These include five projects in the Ardmore Park area alone, the Westwood site at Orchard Boulevard, the former Parisian plot at Angullia Park and Ho Bee's and IOI's 302-unit condo on the Pinnacle Collection plot at Sentosa Cove.
CBRE executive director (residential) Joseph Tan says: 'Developers' strategy in the first instance, would be to hold off launching these projects as long as they can until sentiment improves further in this segment.'
Agreeing, Wheelock Properties (Singapore) CEO David Lawrence says: 'Traditionally, developers know that for really high-end projects on very good sites like Ardmore Park, if you just keep them in your pockets, eventually prices will come up and they make money. But developers can't do that anymore.'
The catch is the amendment to the Residential Property Act that will apply to private residential projects undertaken by foreign housing developers with Qualifying Certificates (QCs), a category which effectively covers all listed developers.
Such projects, built on residential sites bought from private-sector sources, will in future have to be completed within the stipulated project completion period (PCP). Otherwise, the developers may not only lose their bankers' guarantees as is the case currently but also have to pay the state for any time extension.
This is similar to the scheme for sites sold through the Government Land Sales Programme. Developers have to pay 8 per cent of the tendered land price for the first year of PCP extension. They must pay 16 per cent for the second year's extension and 24 per cent per annum for the third and subsequent years.
CBRE's Mr Tan estimates that since it takes 30-36 months to complete a typical high-rise condo, and assuming developers need to attain Temporary Occupation Permit (TOP) by 2014-2015, construction would have to begin around 2011-2012.
That still leaves some room to avoid a bunching of project launches given that on average, developers have been able to sell an average of about 650 non-landed homes per year at above $2,000 psf over the past five years.
One way that deep-pocketed developers may get out of the bind is to build their projects first - and meet PCP deadlines - but launch them for sale only when the sentiment is good.
For this reason, most property consultants don't expect developers to drop prices. 'But there's a good chance they may have to reduce their profit expectations if they wish to clear the units,' says Knight Frank managing director (residential services) Peter Ow. While he's betting there's a fair chance that the market could revisit the 2007-high in luxury condo prices next year, others are less sanguine.
As Mr Lawrence puts it: 'Prime property in the long term will still do very well in Singapore, but it's a difficult period at the moment. There's plenty of demand. I think prices won't come down much, but they won't go up to the level that developers are expecting; perhaps (they'll have to) make much finer profit margins.'
There have been 'one-off' cases of high-priced transactions lately - such as a high-floor apartment at Boulevard Vue that Far East Organization sold last month for $4,800 psf reportedly to a foreign buyer. 'However, we'll need to see more foreign money flowing into Singapore. Right now, Singapore luxury condo prices are still below those in other major cities including London, where prime apartments are going for about £pounds;2,500-4,000 psf' (S$5,205-8,329) says CBRE's Mr Tan.
DTZ South-east Asia research head Chua Chor Hoon said: 'With the major economies still weak, foreign buyers have not come back to Singapore in a big way yet.'
Knight Frank's Mr Ow is hopeful that 'property curbs in China and Hong Kong could divert some moneys to Singapore and boost our high-end market'.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New rule may weigh on prices of luxury condos
Developers lose flexibility to time their construction as delays could spell big payouts on their part
By KALPANA RASHIWALA
(SINGAPORE) The prices of luxury condos have continued to rise this year but a new rule may soon tie the hands of the developers.
Till now, many have picked their time to launch developments when sentiments are good and decent prices can be charged. But under the rule changes which are expected to kick in early next year, they may lose this luxury.
If they bust the project completion period on sites bought from private sector sources, they stand to lose not just the 10 per cent bankers' guarantee for land cost, but could also end up making huge payments for time extension.
All this could force them to launch earlier than they might like and affect prices, market watchers said.
The median price of new luxury condo transactions stood at $3,265 per square foot in Q3 this year, an increase of 18.7 per cent year to date, according to CB Richard Ellis' analysis. However, the figure is still about 13 per cent shy of the peak achieved in Q4 2007.
A question mark now hangs over whether the previous peak median price of $3,750 psf can be scaled next year.
CBRE's compilation shows about 1,500-odd luxury non-landed homes could be generated on projects that have received planning approval from Urban Redevelopment Authority and which have yet to be launched. These include five projects in the Ardmore Park area alone, the Westwood site at Orchard Boulevard, the former Parisian plot at Angullia Park and Ho Bee's and IOI's 302-unit condo on the Pinnacle Collection plot at Sentosa Cove.
CBRE executive director (residential) Joseph Tan says: 'Developers' strategy in the first instance, would be to hold off launching these projects as long as they can until sentiment improves further in this segment.'
Agreeing, Wheelock Properties (Singapore) CEO David Lawrence says: 'Traditionally, developers know that for really high-end projects on very good sites like Ardmore Park, if you just keep them in your pockets, eventually prices will come up and they make money. But developers can't do that anymore.'
The catch is the amendment to the Residential Property Act that will apply to private residential projects undertaken by foreign housing developers with Qualifying Certificates (QCs), a category which effectively covers all listed developers.
Such projects, built on residential sites bought from private-sector sources, will in future have to be completed within the stipulated project completion period (PCP). Otherwise, the developers may not only lose their bankers' guarantees as is the case currently but also have to pay the state for any time extension.
This is similar to the scheme for sites sold through the Government Land Sales Programme. Developers have to pay 8 per cent of the tendered land price for the first year of PCP extension. They must pay 16 per cent for the second year's extension and 24 per cent per annum for the third and subsequent years.
CBRE's Mr Tan estimates that since it takes 30-36 months to complete a typical high-rise condo, and assuming developers need to attain Temporary Occupation Permit (TOP) by 2014-2015, construction would have to begin around 2011-2012.
That still leaves some room to avoid a bunching of project launches given that on average, developers have been able to sell an average of about 650 non-landed homes per year at above $2,000 psf over the past five years.
One way that deep-pocketed developers may get out of the bind is to build their projects first - and meet PCP deadlines - but launch them for sale only when the sentiment is good.
For this reason, most property consultants don't expect developers to drop prices. 'But there's a good chance they may have to reduce their profit expectations if they wish to clear the units,' says Knight Frank managing director (residential services) Peter Ow. While he's betting there's a fair chance that the market could revisit the 2007-high in luxury condo prices next year, others are less sanguine.
As Mr Lawrence puts it: 'Prime property in the long term will still do very well in Singapore, but it's a difficult period at the moment. There's plenty of demand. I think prices won't come down much, but they won't go up to the level that developers are expecting; perhaps (they'll have to) make much finer profit margins.'
There have been 'one-off' cases of high-priced transactions lately - such as a high-floor apartment at Boulevard Vue that Far East Organization sold last month for $4,800 psf reportedly to a foreign buyer. 'However, we'll need to see more foreign money flowing into Singapore. Right now, Singapore luxury condo prices are still below those in other major cities including London, where prime apartments are going for about £pounds;2,500-4,000 psf' (S$5,205-8,329) says CBRE's Mr Tan.
DTZ South-east Asia research head Chua Chor Hoon said: 'With the major economies still weak, foreign buyers have not come back to Singapore in a big way yet.'
Knight Frank's Mr Ow is hopeful that 'property curbs in China and Hong Kong could divert some moneys to Singapore and boost our high-end market'.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Bukit Panjang LRT and MRT to be linked
Nov 30,2010
Bukit Panjang LRT and MRT to be linked
New bus interchange to provide seamless transfer
By Goh Chin Lian
A NEW bus interchange between the existing LRT station and a new station on the Downtown MRT Line in Bukit Panjang will allow commuters to seamlessly transfer from either line.
The interchange - which may be air-conditioned - will be integrated with residential and commercial developments on a site in Jelebu Road and Petir Road.
The 1.89ha site, now partly occupied by an open-air bus interchange, was offered up for sale last Friday by the Urban Redevelopment Authority (URA).
The Downtown Line, scheduled to come up in 2015, is to be situated 120m from the LRT line, making transfers inconvenient. The bus interchange will provide a seamless link.
In addition, a new, elevated 120m covered linkway will also link the mezzanine level of the LRT station to the entrance of the MRT station, the Land Transport Authority (LTA) and the URA said.
The site on sale has a 99-year lease with a maximum permissible gross floor area of 56,864 sq m, with at least 35per cent of this area set aside for commercial use, the URA said.
The move follows an increase in the frequency of bus services to make life easier for commuters in the area.
Residents had asked for better connectivity from the bus interchange and Bukit Panjang LRT station to Bukit Panjang MRT station.
The MRT station, scheduled to open by 2015, is part of the Downtown Line that will run to the city centre, to places such as Bugis and Marina Bay.
Bukit Panjang MP Teo Ho Pin and Holland-Bukit Timah GRC MPs Vivian Balakrishnan and Liang Eng Hwa had proposed moving the MRT station closer to the LRT station, 70m apart from each other, to allow for easier transfers.
Their wish has been partly granted: The MRT station cannot be moved because of technical difficulties. The underground MRT line cannot swing sharply to meet the LRT station and return to Woodlands Road since the distance was too short, the LTA had said.
The Bukit Panjang development is in line with efforts to make public transport attractive, by making transfers seamless between bus and rail, as well as to link commuters to commercial activities.
Similar public transport hubs operate in Toa Payoh, Sengkang, Ang Mo Kio and Boon Lay. Two others, in Serangoon and Clementi, are due to open by next year.
MPs like Dr Teo and Mr Liang were cheered by the latest announcement.
Dr Teo said the area needed a town centre, with more food and beverage and entertainment outlets than those at the present Bukit Panjang Plaza.
Mr Liang had also raised another transport issue in Parliament last week, that of raising the capacity of Bukit Panjang LRT trains as more flats are built in the area.
In a written answer, Transport Minister Raymond Lim noted that the trains and station platforms had become more crowded, especially during peak hours.
While LRT daily ridership rose by about 2.2 per cent a year from 2001 to this year, it grew by more than 7 per cent in recent years.
He said the LTA was working with LRT operator SMRT to improve train capacity.
Bus capacity and frequencies have also been increased for seven bus services, including service 922, which was re-routed to serve two more areas in the estate, Jelapang and Bangkit.
Also under study are bus services that will give Bukit Panjang residents more direct transport options to the city, he said.
chinlian@sph.com.sg
Bukit Panjang LRT and MRT to be linked
New bus interchange to provide seamless transfer
By Goh Chin Lian
A NEW bus interchange between the existing LRT station and a new station on the Downtown MRT Line in Bukit Panjang will allow commuters to seamlessly transfer from either line.
The interchange - which may be air-conditioned - will be integrated with residential and commercial developments on a site in Jelebu Road and Petir Road.
The 1.89ha site, now partly occupied by an open-air bus interchange, was offered up for sale last Friday by the Urban Redevelopment Authority (URA).
The Downtown Line, scheduled to come up in 2015, is to be situated 120m from the LRT line, making transfers inconvenient. The bus interchange will provide a seamless link.
In addition, a new, elevated 120m covered linkway will also link the mezzanine level of the LRT station to the entrance of the MRT station, the Land Transport Authority (LTA) and the URA said.
The site on sale has a 99-year lease with a maximum permissible gross floor area of 56,864 sq m, with at least 35per cent of this area set aside for commercial use, the URA said.
The move follows an increase in the frequency of bus services to make life easier for commuters in the area.
Residents had asked for better connectivity from the bus interchange and Bukit Panjang LRT station to Bukit Panjang MRT station.
The MRT station, scheduled to open by 2015, is part of the Downtown Line that will run to the city centre, to places such as Bugis and Marina Bay.
Bukit Panjang MP Teo Ho Pin and Holland-Bukit Timah GRC MPs Vivian Balakrishnan and Liang Eng Hwa had proposed moving the MRT station closer to the LRT station, 70m apart from each other, to allow for easier transfers.
Their wish has been partly granted: The MRT station cannot be moved because of technical difficulties. The underground MRT line cannot swing sharply to meet the LRT station and return to Woodlands Road since the distance was too short, the LTA had said.
The Bukit Panjang development is in line with efforts to make public transport attractive, by making transfers seamless between bus and rail, as well as to link commuters to commercial activities.
Similar public transport hubs operate in Toa Payoh, Sengkang, Ang Mo Kio and Boon Lay. Two others, in Serangoon and Clementi, are due to open by next year.
MPs like Dr Teo and Mr Liang were cheered by the latest announcement.
Dr Teo said the area needed a town centre, with more food and beverage and entertainment outlets than those at the present Bukit Panjang Plaza.
Mr Liang had also raised another transport issue in Parliament last week, that of raising the capacity of Bukit Panjang LRT trains as more flats are built in the area.
In a written answer, Transport Minister Raymond Lim noted that the trains and station platforms had become more crowded, especially during peak hours.
While LRT daily ridership rose by about 2.2 per cent a year from 2001 to this year, it grew by more than 7 per cent in recent years.
He said the LTA was working with LRT operator SMRT to improve train capacity.
Bus capacity and frequencies have also been increased for seven bus services, including service 922, which was re-routed to serve two more areas in the estate, Jelapang and Bangkit.
Also under study are bus services that will give Bukit Panjang residents more direct transport options to the city, he said.
chinlian@sph.com.sg
Tuesday, November 30, 2010
ST : Major facelift for three more estates
Nov 29, 2010
Major facelift for three more estates
They will be revamped under Remaking Our Heartland scheme; more details to be out soon
By Rachel Chang
THREE more towns will soon be given wholesale facelifts under the Housing Board's masterplan to rejuvenate housing estates, said Prime Minister Lee Hsien Loong at the People's Action Party conference yesterday.
This follows the progress made on the initiative's first three pilot towns - Punggol, Yishun and Dawson - where waterfront parks, cycling paths and designer HDB blocks are now being built.
He did not elaborate further, saying only that the names of the three estates would be announced soon.
Contacted by The Straits Times, the Ministry of National Development said more information would be announced 'within the coming weeks'.
During his speech, Mr Lee dwelt at length on this initiative, known as Remaking Our Heartland (ROH), which was first announced in the 2007 National Day Rally.
'Those were slides,' he recalled, referring to the artists' impressions he showed the audience then. 'Now we have the reality.'
Beyond standard HDB flat upgrading works such as new doors and better bathrooms, the ROH programme visualises a holistic transformation of the neighbourhood, building on qualities unique to that town's history and geography.
For example, in Dawson, which was the first public housing estate built in the 1970s, a canal park lined with heritage boards will link up the estate's new HDB blocks.
The boards will incorporate Dawson memorabilia collected from the community, such as a pair of 1973 cinema ticket stubs from one of Queenstown's first movie theatres.
Punggol, which is set to be Singapore's first 'eco-town', will have solar panels and rainwater recycling facilities, as well as a 4.2km waterway running through the neighbourhood on which residents can canoe. And in Yishun, a middle-aged town, a waterfront park will be built by Yishun Pond, and its existing amenities such as the library will be upgraded.
Under the ROH initiative, award-winning architecture firms have been enlisted to design these new developments.
In announcing the expansion of the programme, Mr Lee said he had 'every confidence that we will deliver on these plans, and build a first-class city and a first-class home'.
This is 'provided Singaporeans support the plans, support the Government, work with us, make it happen,' he added. 'And it will happen.'
'Then we will make this one of the best countries in the world to live, to work, to play and to retire in.'
rchang@sph.com.sg
--------------------------------------------------------------------------------
VISION TURNED REALITY
'Those were slides. Now we have the reality.'
PM Lee Hsien Loong, referring to the artists' impressions he showed the audience at the 2007 National Day Rally
Children enjoying the playground facilities (above) at Dawson Estate in Queenstown last week. -- PHOTOS: LIANHE ZAOBAO,HDB
Major facelift for three more estates
They will be revamped under Remaking Our Heartland scheme; more details to be out soon
By Rachel Chang
THREE more towns will soon be given wholesale facelifts under the Housing Board's masterplan to rejuvenate housing estates, said Prime Minister Lee Hsien Loong at the People's Action Party conference yesterday.
This follows the progress made on the initiative's first three pilot towns - Punggol, Yishun and Dawson - where waterfront parks, cycling paths and designer HDB blocks are now being built.
He did not elaborate further, saying only that the names of the three estates would be announced soon.
Contacted by The Straits Times, the Ministry of National Development said more information would be announced 'within the coming weeks'.
During his speech, Mr Lee dwelt at length on this initiative, known as Remaking Our Heartland (ROH), which was first announced in the 2007 National Day Rally.
'Those were slides,' he recalled, referring to the artists' impressions he showed the audience then. 'Now we have the reality.'
Beyond standard HDB flat upgrading works such as new doors and better bathrooms, the ROH programme visualises a holistic transformation of the neighbourhood, building on qualities unique to that town's history and geography.
For example, in Dawson, which was the first public housing estate built in the 1970s, a canal park lined with heritage boards will link up the estate's new HDB blocks.
The boards will incorporate Dawson memorabilia collected from the community, such as a pair of 1973 cinema ticket stubs from one of Queenstown's first movie theatres.
Punggol, which is set to be Singapore's first 'eco-town', will have solar panels and rainwater recycling facilities, as well as a 4.2km waterway running through the neighbourhood on which residents can canoe. And in Yishun, a middle-aged town, a waterfront park will be built by Yishun Pond, and its existing amenities such as the library will be upgraded.
Under the ROH initiative, award-winning architecture firms have been enlisted to design these new developments.
In announcing the expansion of the programme, Mr Lee said he had 'every confidence that we will deliver on these plans, and build a first-class city and a first-class home'.
This is 'provided Singaporeans support the plans, support the Government, work with us, make it happen,' he added. 'And it will happen.'
'Then we will make this one of the best countries in the world to live, to work, to play and to retire in.'
rchang@sph.com.sg
--------------------------------------------------------------------------------
VISION TURNED REALITY
'Those were slides. Now we have the reality.'
PM Lee Hsien Loong, referring to the artists' impressions he showed the audience at the 2007 National Day Rally
Children enjoying the playground facilities (above) at Dawson Estate in Queenstown last week. -- PHOTOS: LIANHE ZAOBAO,HDB
ST : 48 units sold at preview for d'Leedon condo
Nov 29, 2010
48 units sold at preview for d'Leedon condo
By Cheryl Lim
SALES of CapitaLand's latest development d'Leedon got off to a modest start over the weekend, with 48 units sold at a preview launch for a select group of buyers.
This was 24 per cent of the 200 units that were available at the preview, which was open exclusively to former owners of Farrer Court units. D'Leedon sits on the site of the former Farrer Court, which was sold en bloc in 2007.
The units that were on offer ranged from one- to three-bedroom apartments. They were priced at an average of $1,680 per sq ft (psf).
That makes the cheapest apartments - 635 sq ft units with a bedroom and study - less than $1 million each. A typical two-bedder of 1,055 sq ft would set a buyer back $1.5 million.
CapitaLand yesterday said owners from 266 Farrer Court units visited the show gallery over the weekend. The developer will begin public sales of the condominium on Thursday.
A former resident of Farrer Court, who declined to be named, felt the sale prices of d'Leedon were 'a little on the high side' for a 99-year leasehold project.
He said that units at nearby Waterfall Gardens, a new freehold development, were being sold at a comparative price. Still, he bought a $1.9 million three-bedroom unit at the d'Leedon.
'Two of my neighbours also felt (prices were a bit high),' he told The Straits Times.
'But we bought (units in) this place for sentimental reasons; we've lived in the area for so many years... You can't find other developments with these kinds of views.'
Another former resident, who gave her name only as Mrs Wong, purchased a studio apartment for slightly more than $1 million and said she felt prices were reasonable. 'It's not cheap but it's not expensive. Considering that the development looks quite nice and there is generous space offered, as well as the location and facilities, it's kind of a fair price to pay,' she said.
D'Leedon sits on a huge site of more than 840,000 sq ft, with 22 per cent of the land area being taken up by the 1,715 homes in the project.
The rest is slated for gardens, facilities such as two swimming pools and a gym, and retail outlets which could include restaurants, a laundromat and a clinic.
Buyers The Straits Times spoke to said they are confident the prices for units at d'Leedon will appreciate in the coming months.
Separately, property developer UOL Group said it has sold 252 of the 320 units released to date at its Spottiswoode Residences near Tanjong Pagar. A UOL spokesman said sales of the three-bedroom units were good and almost all of the development's seven penthouses have been sold.
Another developer, MCC Land, said nearly half of all the units at its executive condominium project The Canopy have been sold. Since its launch last month, the development located in Yishun Avenue 11 has sold 188 of the 406 units available.
48 units sold at preview for d'Leedon condo
By Cheryl Lim
SALES of CapitaLand's latest development d'Leedon got off to a modest start over the weekend, with 48 units sold at a preview launch for a select group of buyers.
This was 24 per cent of the 200 units that were available at the preview, which was open exclusively to former owners of Farrer Court units. D'Leedon sits on the site of the former Farrer Court, which was sold en bloc in 2007.
The units that were on offer ranged from one- to three-bedroom apartments. They were priced at an average of $1,680 per sq ft (psf).
That makes the cheapest apartments - 635 sq ft units with a bedroom and study - less than $1 million each. A typical two-bedder of 1,055 sq ft would set a buyer back $1.5 million.
CapitaLand yesterday said owners from 266 Farrer Court units visited the show gallery over the weekend. The developer will begin public sales of the condominium on Thursday.
A former resident of Farrer Court, who declined to be named, felt the sale prices of d'Leedon were 'a little on the high side' for a 99-year leasehold project.
He said that units at nearby Waterfall Gardens, a new freehold development, were being sold at a comparative price. Still, he bought a $1.9 million three-bedroom unit at the d'Leedon.
'Two of my neighbours also felt (prices were a bit high),' he told The Straits Times.
'But we bought (units in) this place for sentimental reasons; we've lived in the area for so many years... You can't find other developments with these kinds of views.'
Another former resident, who gave her name only as Mrs Wong, purchased a studio apartment for slightly more than $1 million and said she felt prices were reasonable. 'It's not cheap but it's not expensive. Considering that the development looks quite nice and there is generous space offered, as well as the location and facilities, it's kind of a fair price to pay,' she said.
D'Leedon sits on a huge site of more than 840,000 sq ft, with 22 per cent of the land area being taken up by the 1,715 homes in the project.
The rest is slated for gardens, facilities such as two swimming pools and a gym, and retail outlets which could include restaurants, a laundromat and a clinic.
Buyers The Straits Times spoke to said they are confident the prices for units at d'Leedon will appreciate in the coming months.
Separately, property developer UOL Group said it has sold 252 of the 320 units released to date at its Spottiswoode Residences near Tanjong Pagar. A UOL spokesman said sales of the three-bedroom units were good and almost all of the development's seven penthouses have been sold.
Another developer, MCC Land, said nearly half of all the units at its executive condominium project The Canopy have been sold. Since its launch last month, the development located in Yishun Avenue 11 has sold 188 of the 406 units available.
Monday, November 29, 2010
ST : Cooling measures working
Nov 27, 2010
PROPERTY MARKET COOLING MEASURES
Cooling measures working
By Elgin Toh
In the private property market, prices are still rising but the increases have moderated, Mr Mah pointed out. -- PHOTO: WANBAO
Signs are emerging in the public and private housing markets that the Government's three-month- old price stabilisation measures are working, says National Development Minister Mah Bow Tan.
The effect is more pronounced in the resale Housing Board market, where median cash over valuation (COV) payments in October fell to $25,000, from $30,000 in the previous quarter, Mr Mah said yesterday.
And COV numbers for November transactions so far indicate a further decrease, he added. COV, which is the cash premium paid by a buyer over and above the valuation of a flat, is one measure of how hot the demand for HDB resale homes is.
Transactions in the HDB market have fallen by 30 per cent in the fourth quarter thus far, against the previous quarter.
In the private property market, prices are still rising but the increases have moderated, Mr Mah pointed out.
Last month, the Urban Redevelopment Authority announced that private residential prices rose 2.9 per cent in the third quarter of this year. This represented a step-down from the previous quarter, when prices jumped 5.3 per cent.
'So, all in all, I would say the cooling measures are starting to take effect, but the overall impact is still too early to tell,' he said.
Mr Mah was speaking to reporters on the sidelines of a groundbreaking event for new HDB flats in the Dawson estate.
The Government announced a slew of measures on Aug 30 to rein in record-high prices in the housing market. These included lower bank loan limits for second properties and tighter ownership rules for buyers of HDB flats.
Yesterday, the minister, who has had to face criticism from opposition parties on the housing affordability issue, said the steps taken have achieved the desired effect of discouraging potential HDB flat buyers not in urgent need of housing, including those who already own private property.
A less feverish market will make it easier for more first-time buyers to purchase resale flats, he said.
However, Mr Mah was also quick to flag a few concerns.
Low interest rates and an abundance of investor liquidity elsewhere, for example, could yet push real estate prices back up.
Furthermore, anti-speculation measures in property markets like Hong Kong, Taiwan, mainland China and South Korea - some more restrictive than the ones here - may result in a 'diversion of funds into Singapore'.
In view of this, the Government will introduce more measures to curb property prices if there is a need to, said Mr Mah.
But he stressed that the Aug 30 measures had just been implemented, so the Government would simply continue monitoring the market for now.
'We're watching it constantly, watching it like a hawk, let me assure you,' he said.
Yesterday, Mr Mah also reiterated the Government's overall policy on handling housing prices.
Its approach, he said, was to pre-empt the growth of bubbles by deflating them slowly, rather than bursting them suddenly. He likened the calibrated steps by the Government to tapping on the brakes of a car.
'If we slam on the brakes all at once, then people may get thrown out of the window, people may get hurt, and worse still, the engine may stall,' he said.
The current approach differs from 1996's more drastic measures - including a capital gains tax - that caused the market to crash.
He added that the Government's goal was not to avoid price increases entirely, but to make sure that property market prices do not outstrip economic fundamentals.
Real estate agents contacted yesterday said the overall declines in COV and HDB flat transactions mentioned by the minister echoed what they have been seeing in the deals they have been involved in.
But they also said that private housing was unlikely to become cheaper any time soon.
Mr Eugene Lim, associate director of ERA Asia Pacific, said: 'The cost of financing remains cheap, and the strong currency is also attracting foreigners. While the Government is doing a lot to moderate the private property market, I don't expect prices to dip unless there's a recession.'
And despite the cooling, at least one potential first-time HDB buyer is still adopting a wait-and-see attitude.
Engineer Darren Lim, 27, who lives with his parents, said: 'COV may have fallen, but the total sale price is still too high. I will enter the market if COV falls by another $10,000.'
elgintoh@sph.com.sg
PROPERTY MARKET COOLING MEASURES
Cooling measures working
By Elgin Toh
In the private property market, prices are still rising but the increases have moderated, Mr Mah pointed out. -- PHOTO: WANBAO
Signs are emerging in the public and private housing markets that the Government's three-month- old price stabilisation measures are working, says National Development Minister Mah Bow Tan.
The effect is more pronounced in the resale Housing Board market, where median cash over valuation (COV) payments in October fell to $25,000, from $30,000 in the previous quarter, Mr Mah said yesterday.
And COV numbers for November transactions so far indicate a further decrease, he added. COV, which is the cash premium paid by a buyer over and above the valuation of a flat, is one measure of how hot the demand for HDB resale homes is.
Transactions in the HDB market have fallen by 30 per cent in the fourth quarter thus far, against the previous quarter.
In the private property market, prices are still rising but the increases have moderated, Mr Mah pointed out.
Last month, the Urban Redevelopment Authority announced that private residential prices rose 2.9 per cent in the third quarter of this year. This represented a step-down from the previous quarter, when prices jumped 5.3 per cent.
'So, all in all, I would say the cooling measures are starting to take effect, but the overall impact is still too early to tell,' he said.
Mr Mah was speaking to reporters on the sidelines of a groundbreaking event for new HDB flats in the Dawson estate.
The Government announced a slew of measures on Aug 30 to rein in record-high prices in the housing market. These included lower bank loan limits for second properties and tighter ownership rules for buyers of HDB flats.
Yesterday, the minister, who has had to face criticism from opposition parties on the housing affordability issue, said the steps taken have achieved the desired effect of discouraging potential HDB flat buyers not in urgent need of housing, including those who already own private property.
A less feverish market will make it easier for more first-time buyers to purchase resale flats, he said.
However, Mr Mah was also quick to flag a few concerns.
Low interest rates and an abundance of investor liquidity elsewhere, for example, could yet push real estate prices back up.
Furthermore, anti-speculation measures in property markets like Hong Kong, Taiwan, mainland China and South Korea - some more restrictive than the ones here - may result in a 'diversion of funds into Singapore'.
In view of this, the Government will introduce more measures to curb property prices if there is a need to, said Mr Mah.
But he stressed that the Aug 30 measures had just been implemented, so the Government would simply continue monitoring the market for now.
'We're watching it constantly, watching it like a hawk, let me assure you,' he said.
Yesterday, Mr Mah also reiterated the Government's overall policy on handling housing prices.
Its approach, he said, was to pre-empt the growth of bubbles by deflating them slowly, rather than bursting them suddenly. He likened the calibrated steps by the Government to tapping on the brakes of a car.
'If we slam on the brakes all at once, then people may get thrown out of the window, people may get hurt, and worse still, the engine may stall,' he said.
The current approach differs from 1996's more drastic measures - including a capital gains tax - that caused the market to crash.
He added that the Government's goal was not to avoid price increases entirely, but to make sure that property market prices do not outstrip economic fundamentals.
Real estate agents contacted yesterday said the overall declines in COV and HDB flat transactions mentioned by the minister echoed what they have been seeing in the deals they have been involved in.
But they also said that private housing was unlikely to become cheaper any time soon.
Mr Eugene Lim, associate director of ERA Asia Pacific, said: 'The cost of financing remains cheap, and the strong currency is also attracting foreigners. While the Government is doing a lot to moderate the private property market, I don't expect prices to dip unless there's a recession.'
And despite the cooling, at least one potential first-time HDB buyer is still adopting a wait-and-see attitude.
Engineer Darren Lim, 27, who lives with his parents, said: 'COV may have fallen, but the total sale price is still too high. I will enter the market if COV falls by another $10,000.'
elgintoh@sph.com.sg
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