Wednesday, June 25, 2008

Nassim condo turns in surprisingly good sales

Source : Straits Times - 28 May 2008

A LUXURY condominium in the posh Nassim area has turned in surprisingly good preview sales, even as property analysts are predicting a sharp slowdown in the high-end home segment.

Buyers have taken up 38 units at Nassim Park Residences, forking out a whopping $10 million or more for each apartment, sources said.

The 100-unit development, which United Overseas Land (UOL) is building on the former Nassim Park site in Nassim Road, is understood to be priced upwards of $3,000 per sq ft (psf).

The project consists of only four-bedroom and penthouse apartments. Each of the four-bedders is believed to be at least 3,000 sq ft in size, while the penthouses are between 6,000 sq ft and 7,000 sq ft.

UOL declined to comment on the figures yesterday, but sources said the developer might not release some of the units and instead keep them for its own use.

Nassim Park Residences is the first major luxury development to be released for sale this year. Most other launches, especially large, high-end ones, have been held back as developers wait out the market gloom.

Elsewhere, some smaller projects have also seen brisk sales after discounts were offered. Over the Vesak Day weekend, Macly Group sold 60 per cent of the 102-unit Vutton in Novena at a 10 per cent discount off list prices, or about $1,100 psf to $1,400 psf.


Mid-tier, upscale hotels faring best: STB figures

Source : Straits Times - 28 May 2008

MID-TIER and upscale hotels have fared best among different types of hotels in the current tourism boom.

The Singapore Tourism Board (STB), releasing the latest tourism statistics here, has grouped the hotels into four classes and released figures on their performance for the first time.

The four are:

Luxury hotels: those in prime locations or historic buildings (4,500 rooms);

Upscale hotels: boutique hotels and those in prime locations, charging slightly lower rates (12,400 rooms);

Mid-tier hotels: those in commercial zones (9,500 rooms); and

Economy hotels: those with budget rooms in outlying districts (3,800 rooms).

The STB declined to cite examples of hotels in each category, but going by its descriptions of each, luxury hotels include the likes of The Ritz-Carlton Millenia; upscale ones include Orchard Hotel; mid-tier hotels cover Link Hotel in Tiong Bahru and economy hotels include Hotel Bencoolen.

Going by STB figures, upscale and mid-tier hotels did best in average room occupancy, average room rate and revenue per available room last month.

Among the four categories, upscale hotels saw the biggest jump in revenue from each available room - 27.9 per cent - from a year ago. Revenue per available room is calculated by multiplying average room occupancy by average room rate.

Mid-tier hotels had the biggest increase in average room rates, up 28.2 per cent over last April’s.

Mr Colin Tan, director of research and consultancy at Chesterton International, said the sound performance by mid-tier and upscale hotels could have come from the room crunch and higher demand for these hotels.

The average hotel occupancy rate stood at 84 per cent last month, at an average room rate of $254. Hotels are expected to earn $186 million from their rooms, up 30.1 per cent from last April.

Knight Frank director of research and consultancy Nicholas Mak, noting an uptrend across all four hotel categories, said that, by releasing such data, the STB is helping investors judge the industry’s state and decide which categories are worth putting money into.

Chesterton International’s Mr Tan surmised that the recent ‘no-bid’ situation for a 0.9ha Little India hotel site could have spurred the STB to make this information part of its monthly updates.

The plot above Little India MRT station made the news last week as the first instance in seven years where a government land tender failed to draw bids.

Mr Tan said one reason could be that the site is suitable for mid-tier or budget accommodation and developers had the idea returns on these types of hotels are lower.

However, he added, with STB information that all sectors are doing well, investors may be spurred to take up non-prime land to build non-luxury hotels.

The STB confirmed it made the data available ‘to facilitate their business and investment decisions’.

Fuelling the growth of hotels is a rise in the number of tourists. Last month was another sterling month, with 826,000 arrivals: Indonesians led the charge with 131,000, followed by 107,000 Chinese, 63,000 Australians and about the same number of Indians, and 53,000 Malaysians.


New flats under stricter rules in hot demand

Source : Straits Times - 28 May 2008

DEMAND has been strong for the latest batch of Housing Board (HDB) flats - despite new rules designed to prevent frivolous applications.

As at 5pm yesterday, 2,397 applications had poured in for the 1,485 premium flats launched by HDB just last Thursday.

Housing experts say demand looks likely to stay healthy, although the total number of applications
may drop as HDB’s new rules begin to deter time-wasting and frivolous applications.

The latest flats are likely to be three times oversubscribed, they say - a drop from comparable sales earlier this year, which were about five times oversubscribed.

HDB’s two newest projects - Compassvale Pearl in Sengkang and Punggol Sapphire - are being offered under HDB’s build-to-order (BTO) system, where flats are built only when a certain level of demand has been reached.

HDB tweaked its application process last week to address concerns over relatively low take-up rates for new flats despite thousands of applications.

Under the new rules, a first-time buyer who rejects an offer to buy a flat twice at HDB’s BTO or balloting sales exercises will lose his first- timer priorities for a year. That effectively puts him at the back of the queue with the second-timers.

The new rules raised fears that buyers offered leftover flats will be penalised. HDB has since said it may exercise flexibility if applicants at the back of the queue have good reasons for rejecting available flats.

Market watchers such as PropNex chief executive Mohamed Ismail told The Straits Times he estimates applications will drop by 40 per cent under the new rules.

‘But as new HDB flats are still the cheapest option for newlywed couples, demand should still be at the 70 per cent take-up rate,’ he said.

ERA Realty Network’s assistant vice-president Eugene Lim agreed. ‘The new rules cut out the time- wasters…what’s left is real demand.’

Earlier this year, BTO projects Punggol Spring and Jade Spring @ Yishun Phase 2 were about five times oversubscribed, HDB figures show. Mr Ismail said the latest projects are likely to be about three times oversubscribed, based on yesterday’s figures.So far, Punggol Sapphire is the more popular, with 1,824 applications for 1,065 homes, compared to 573 for 420 homes at Sengkang.

First-timers such as IT officer Chua Yong Kiat, 28, said it will not be a surprise if total numbers drop.

‘I’ll definitely only apply if I’m sure I would buy a flat at that location. If not, getting that dream home becomes much harder if you lose your first-timer priorities,’ he said.


Govt rolls out two industrial sites

Source : Business Times - 28 May 2008

THE government continues to roll out new sites for sale against the backdrop of a quieter market.

The latest to be offered are two industrial sites - a confirmed list plot in Woodlands with Business 2 zoning being launched for tender, and a smallish plot at Kallang Pudding Road for Business 1 use that is now open for application under the reserve list.

Both sites are being offered on 60-year leasehold tenures and have 2.5 plot ratio (ratio of maximum potential gross floor area to land area).

Colliers International director (industrial) Tan Boon Leong predicts the 61,757 sq ft Kallang Pudding site, located in the established MacPherson/Al- junied industrial belt, will attract more attention with bids likely to be around $90-100 per square foot of potential gross floor area.

In contrast, the 180,835 sq ft plot at Woodlands Industrial Park E5 may fetch bids of only about $20 to $25 psf per plot ratio (psf ppr), Mr Tan reckons.

He notes that a 30-year leasehold site next door was sold last year for about $28 psf ppr but that was with a lower plot ratio of 1.0.

‘The latest plot has the highest plot ratio for an industrial site offered by the government in the Woodlands area since 2000. Industrialists generally don’t like operating in high-rise industrial facilities - because of the inconvenience and time consumed in moving goods and people up and down - especially in outlying areas like Woodlands and Tuas.

‘So the developer of this site may not be inclined to build up to the maximum plot ratio of 2.5, especially given rising construction costs. Any potential bidder will ask himself: ‘Should I bid high for the land and take a risk to build something industrialists may not like?’

With a Business 2 zoning, the site can be developed for a wide range of uses such as clean/light industry, general industry and warehouse.

‘The site is near established industries specialising in auto parts, hardware, furniture, scrap metal and waste management,’ Urban Redevelopment Authority said.

The tender for the Woodlands plot closes on July 22.

The Kallang Pudding Road plot, despite its triangular shape, is expected to be hotly contested.

‘It is suitable for development into an upscale flatted factory and sold on a strata-titled unit basis. The plot is very close to the main trunk road in the area - Aljunied Road,’ Mr Tan said.

The Business 1 zoned plot can be put to clean and light industrial, and warehouse use.


Picking the best home loan package

Source : Business Times - 28 May 2008

Be aware of your financial needs and risk appetite while weighing home loan packages, writes HELEN NEO

WHILE owning a home is high on the must-have list for Singaporeans, the fact is buying a property usually means signing on for a mortgage. As banks compete for a larger share of the home loan market, borrowers are sometimes overwhelmed by the multitude of home loan packages, with differing features that cater to the different needs of homebuyers.

Not all homebuyers are savvy about all these features. Thus, it has become challenging for homebuyers to decide which loan best suits their needs. Here we show what is available in the market and discuss the advantages and disadvantages of each type of loan package.

Interbank-pegged vs home loan board rate (variable)

Features of interbank-pegged home loan

Pegged to Singapore Interbank Offered Rate (Sibor) or Swap Offered Rate (SOR) plus margin.

The Sibor or SOR can be easily obtained from the newspapers.

Sibor or SOR will be fixed for a period depending on interest period used and will change at rollover/maturity date.

Pros

Transparent: Your home loan interest rate moves in line with the market interest rate.

Cons

Volatile: Although interbank rates move daily, interest rates will only be repriced according to the interest period used, eg, for a three-month Sibor repricing is done once every quarter.

Pre-payment and redemption inflexibility: Prepayment or redemption for interbank-pegged packages are usually permitted only on rollover/maturity dates. Otherwise, a break fund cost may be imposed. This applies even if you had taken up a package with no lock-in period.

Administrative hassle: For those using the Central Provident Fund to service their monthly instalments, there are administrative issues to consider. As interbank rates are subject to frequent rate adjustments, this results in frequent changes to monthly instalments. For each change, customers would have to instruct the CPF Board to revise the monthly CPF amount released for servicing the loan. This results in inconvenience to customers, particularly if CPF funds are used in full for the payment of monthly instalments. Customers may need to update the board as often as once every three months.

Features of home loan board rate (variable)

Not pegged directly to any interbank rates.

Derived from overall bank funding costs (including business costs) from different sources. Maybank’s home loan board rate is benchmarked against interbank rates, market conditions, as well as business costs. This may differ for other banks. How often it is revised depends on each individual bank’s review of its portfolio against its benchmarked/reference market rates and business costs.

Pros

Not as volatile as interbank-pegged home loan packages.

Cons

Not as transparent as interbank-pegged rates. Each bank has its own way of computing its board rate(s).

Multiple board rates: Different board rates may be introduced at different times.

Home loan board rate (variable) vs fixed rates

Features of home loan board rate (variable)

With or without lock-in, there is a margin charged on top of the respective banks’ board rate.
Favoured by rate sensitive customers who also prefer more certainty in rates.

Favoured by investors mostly on no lock-in variable packages so that they can get out of the loan anytime without any penalty.

Features of fixed rates

Banks generally offer a choice of fixed rates for one to three years.

Interest rate certainty during the fixed period.

Favoured by risk-averse customers and those too busy to monitor their loan.

Not all customers will choose the lowest home loan interest rate package since much will depend on the needs and risk profile of the customers. For example, a young couple with no children and few financial commitments may consider taking on more risks compared to another with more financial commitments.

As for the choice between board rates and interbank pegged rates, this is very subjective. Some borrowers do not like the interbank pegged rates due to their volatility, but some like it because it is transparent.

Board rates usually lag behind in adjustment compared to interbank pegged rates because the bank will adjust them only after serious consideration of all factors (including interbank rate movements).

Looking at risk appetite, a person who cannot tolerate risk is likely to select a fixed rate package where they are able to determine with certainty the total monthly instalments they have to pay. Those likely to fall into this category are:

Young couples starting a family with a relatively high level of gearing to manage.
Older borrowers who do not like uncertainty in their financial commitments.

On the other hand, a person is likely to select an interbank-pegged interest rate if he has a higher risk appetite. The interbank rates are currently low and hence attractive; but it is also subject to market forces.

This uncertainty is translated to a different monthly instalment every few months. The effect is a fluctuating financial commitment during the loan tenure. Over time, the averaging effect may neutralise the low interest rates currently enjoyed.

The key is the option to exit the home loan when interest rates are on the uptrend. However, this option is not always available due to considerations such as a lock-in period, claw back period, income stability, and loan quantum.

Our take is that every loan package is designed to meet the needs of a particular customer segment. As a home loan buyer, you are making a decision for a long-term loan of say, 20 to 30 years. Be aware of your own financial needs before committing to a loan. Banks are generally more than willing to explain the differences between various loan packages and to analyse which is more suitable for your needs.

Helen Neo is head, consumer banking, Maybank Singapore.

Local banks slow down loan activity

Source : Business Times - 28 May 2008

Foreign banks step in to fill the gap as their local counterparts become more circumspect in extending loans due to industry limits, writes SIOW LI SEN

A CURIOUS thing is happening among lenders in Singapore. The local banks are slowing down their loans activity while foreign banks have taken up the slack and are increasing their market share.

Latest data from the Monetary Authority of Singapore shows that industry loans at the end of the first quarter grew 6.9 per cent from the previous quarter and 23.9 per cent from a year ago.

Ng Wee Siang, BNP Paribas analyst, has projected that 2008 will see a robust 18 per cent in loans growth, led by building and construction loans.

Loans growth for March was fuelled by broad-based business loans driven by building and construction, up 54 per cent from a year ago and financial institution loans, up 23.3 per cent. Consumer loan growth, however, seems to have peaked.

DBS Group Holdings was the only bank which kept up with the buoyant system growth with loans up 8.5 per cent in Q1 from the previous quarter. ‘This means foreign banks are winning share,’ said Matthew Wilson, an analyst with Morgan Stanley.

Even DBS is expected to see its loans growth moderate for the rest of the year and is unlikely to repeat its 25.2 per cent increase in 2007, said Mr Ng.

‘While the loan pipeline remains healthy, (DBS) management has guided that loan growth is set to moderate,’ said Mr Ng. ‘Management indicated that a 10-20 per cent loan growth is within reach,’ he added.

United Overseas Bank said its first quarter 2008 loan growth was only 1.8 per cent. Its management said that the bank has reached its internal limits for some exposures, and risk management guidelines are curtailing loan growth.

OCBC Bank reported quarter-on-quarter loan growth of 4 per cent and 19 per cent year-on-year. Its chief executive David Conner noted that the industry loans growth - which has been in the above 20 per cent range - is expected to come down. ‘It is bound to taper off,’ he said, adding: ‘It will come down to a low double-digit range.’

It is not surprising that the local banks would become more measured in selling loans given the economic uncertainties.

But this wasn’t supposed to happen. Late last year, some observers thought that 2008 would be the year of the local banks as they would gobble up loans and other banking business at the expense of the foreign banks which had been nipping at their heels.

The thinking was that foreign banks - nursing massive losses at home, and facing diminished capital bases at the group level - would have to pull back on their activities.

Local banks did have some exposure to the US sub-prime loans and collateralised debt obligations but their losses were very small and did not impact their capital.

Local bankers had another reason why they were looking forward to strengthening their position this year in spite of sliding interest rates as central banks eased. Foreign banks are typically able to sell more customer loans in Singapore when interest rates fall as they can borrow cheaply on the interbank.

This time round, local banks thought they would face less competitive pressure from the foreign banks which may be constricted by their smaller capital bases.

But not all foreign banks have been hurt by the sub-prime losses. Even those which have taken hits cannot afford to pull back in Asia which is showing strong growth.

Maybank, Malaysia’s largest bank, which recently released its nine months’ results, said loans growth at its Singapore operations grew 19.2 per cent. And Standard Chartered Bank said its Singapore operations will be expanding by nearly 11 per cent in 2008. Some 500 people will be hired in Singapore across the consumer and wholesale banking and support functions, mainly in sales and risk management positions. The bank employs some 4,700 people here.

In Singapore, liquidity is plentiful and local banks take in more deposits than they can lend out, but they have become more circumspect in extending loans as they are facing industry limits.

Section 35 of the Banking Act restricts property exposure to 35 per cent. Banks also have their own internal exposure limits. The local banks in the past couple of years have increased their loan books mainly by lending to the real estate sector.

Singapore continues to have some mega construction projects over the next few years but it looks like the foreign banks may get a bigger share in financing them.

Two local banks and 13 foreign banks participated in last month’s loan syndication of $4 billion credit facilities for the Sentosa integrated resort development, one of the largest loans ever undertaken in Singapore.

‘The bulls point to the very buoyant Singapore loans growth but only DBS is keeping up with system growth. Foreign banks are increasingly participating, as Asia has never been more important and the local banks are approaching their exposure limits,’ summed up Mr Wilson.


One-North: A place for a meeting of minds

Source : Business Times - 27 May 2008

one-north, encompassing Biopolis and Fusionopolis, is Singapore’s icon of the knowledge economy

THERE I was, standing in the middle of a gleaming complex of buildings, with blocks bearing names like Chromos, Proteos, Genome and Matrix. I was, of course, at Biopolis, conceived to put Singapore on the global map of the biomedical sciences industry. Biopolis itself is only one part of a vast development called one-north that is emerging around the Buona Vista area.

Brain space: Biopolis (left) was conceived to put Singapore on the global map of the biomedical sciences industry; global pharmaceuticals corporation Novartis houses its Novartis Institute for Tropical Diseases at Chromos. The institute ‘is dedicated to discovering treatments for diseases of the developing world, including tuberculosis, malaria and dengue fever’, says its chairman Paul Herrling

This 200 ha area is ‘Singapore’s icon of the knowledge economy’, according to the one-north website. It encompasses Biopolis and Fusionopolis, a sprawling area dedicated to the media and information businesses.

In its widest interpretation, one-north includes Rochester Park, Insead business school and one campus of the Nanyang Technological University. Clearly, it is planned to be a kind of ‘brain space’ and creative nerve for Singapore.

But does the talent really like working here? I approached a man and a woman chatting to each other and posed them that question.

The woman’s answer was emphatic. ‘Yes, it’s convenient. It’s got everything - there are restaurants, cafes, shops. There’s a shared system among all the corporations here, to take care of all our grocery and other needs.’ They declined to give their names but said that they work at the Institute of Bioengineering and Nanotechnology.

And for those who think that the location is somewhat out of the way, there is the view of Edison Liu, executive director of the Genome Institute of Singapore (GIS). one-north is practically ‘in the middle of the city’, he said, speaking to BT in a phone interview as he was travelling in the US.

‘We are only some 20 minutes from all the major hospitals and universities. It’s not like some other research centres, where you’re stuck in the outskirts of suburbia.’

GIS is the national flagship programme for genomic sciences, and occupies - of course - the Genome block at Biopolis.

‘Of course I’m biased, but we are always counted among the top 10 genome centres in the world,’ said Prof Liu. ‘Within a 25-hundred-mile radius in Asia, there is no centre with better firepower than us.’ He said that the institute has made its mark in the areas of stem cell genomics, systems pharmacology (which is research related to cancer) and genomic technology.

Slightly more than half of GIS staff is of foreign origin, said Prof Liu, who himself is from the US but is now a Singapore permanent resident. In that sense, the institute shares the international flavour of other big research institutes.

As I walked along the paved streets of Biopolis, it seemed to me that the place, barring the occasional person in a business suit, has the feel of a large university. There is a big food court for the more budget-minded, but also espresso pit-stops and several restaurants.

These eateries are not only great places to grab a meal, but also to swap ideas and contacts, according to Paul Chapman of GlaxoSmithKline. He is head of GSK’s Centre for Research in Cognitive and Neurodegenerative Disorders.

‘While it is certainly possible to have this kind of interaction if you are located on a separate campus, there is no substitute for bumping into someone at the food court or the cafe,’ he said. ‘Those casual interactions, where people get to know each other and then discover their mutual scientific interests, just happen more easily at a place like Biopolis.’

Opportunity for study

Novartis, another global pharmaceuticals corporation, houses its Novartis Institute for Tropical Diseases (NITD) at Chromos.

The institute ‘is dedicated to discovering treatments for the diseases of the developing world, including tuberculosis, malaria and dengue fever’, said Paul Herrling, NITD’s head of corporate research and chairman.

‘Biopolis’s location in Singapore, a place where dengue is endemic, gives researchers the opportunity to study first-hand the epidemiology of the disease, and enables access to affected patients.’

one-north is not entirely about the medical and biotech sectors. Swissnex Singapore describes itself as a platform of the Swiss Embassy, ‘facilitating knowledge and competencies’ in science, education, art and innovation between Switzerland, Singapore and South-east Asia.

‘Being at Biopolis brings us closer to the stakeholder,’ said executive director Suzanne Hraba-Renevey. ‘We are more visible and accessible to our users and have easy access to our partners from academia, research, government and business.’

The entire Biopolis project itself is yet to be completed, and consists of several phases. Across the road looms Fusionopolis 1, comprising 24 floors, two towers and 120,000 square metres of floor area.

The building, which represents phase one of the Fusionopolis project, is dedicated to infocomms, or media-related firms that use the latest in technology. It is equipped with satellite access and the necessary power and bandwith for intensive computer use. There are also service apartments, a roof-top swimming pool and a performance theatre.

Fusionopolis 1 has just opened its doors to tenants, and Asian Food Channel was the first to make it its home. When I visited the premises of the cable-and-satellite channel on the 12th floor, there were still boxes to be unpacked and everything was spanking new.

‘We think three to five years ahead,’ said managing director Hian Goh. ‘In 12 months’ time, there’s going to be an MRT at the bottom of this building. There will be a Cold Storage and shops. There’s a sky garden - it’s beautiful.’

The new office is bright, airy and full of glass partitions. There is a room at the rear to be turned into a kitchen-cum-studio.

‘That’s where we’ll have people like Gordon Ramsay doing his shows,’ said Maria Brown, managing director of acquisitions and programming. ‘We’ll also be able to invite people over.’

I imagined the celebrity chef, brow furrowing, expletives flying, sticking a knife in a roasted carcass and calling it done.

‘Please invite me,’ I said

Katong Mall on sale for up to $250m - amid controversy

Source : Straits Times - 27 May 2008

Public tender comes after a contentious collective sale approval last year

ONE of the landmarks of the east, Katong Mall, was put up for sale yesterday at an indicative price of $220 million to $250 million - amid some controversy.

The 99-year leasehold property comprises strata-titled commercial units used as shops and other businesses.

But the site can be rebuilt into a mixed development comprising residential and commercial units, said its marketing agent Jones Lang LaSalle (JLL).

Its public tender comes after a contentious collective sale approval process in September last year.

About 35 minority owners claimed they were not consulted in the drawing up of the sale agreement, and that the sale process was conducted under the old rules and not the new, stricter ones that took effect in October.

They also complained of a low reserve price, and said some majority owners had a potential conflict of interest as they were property developers - Nustavino and Habitat Properties - that could bid for the property.

Whether the consent of owners representing 80 per cent of the share value required for the sale had been obtained was also called into question yesterday.

One minority owner, Mr Robert Ong, told The Straits Times that five owners had withdrawn their signatures before the new laws kicked in on Oct 4.

‘This means the signatures collected could have fallen below the 80 per cent threshold,’ he said.

When contacted, JLL’s local director for investments, Ms Stella Hoh, said that the firm had the 80 per cent level to proceed with the sale.

On the conflict of interest issue, she said that even if the sale committee members were developers by trade, they were legally allowed to bid as long as they declared their position.

They would not take part in the tender decision-making and voting process, she added.

‘We believe this site will attract a lot of parties despite the current market, given that there are few private land sites for sale in this area.’

The four-storey mall has a land area of 78,158 sq ft with a gross plot ratio of 3.6. This works out to a gross floor area of 281,369 sq ft - an indicative sale price of $782 per sq ft (psf) to $888 psf per plot ratio.

Developers have an extra option: JLL said it has also obtained outline planning permission for a mixed development with an approved plot ratio of three - a gross floor area of up to 234,474 sq ft. This is subject to the relevant authorities’ approval and payment of a development charge.

Located at the junction of East Coast Road and Joo Chiat Road, the project could yield about 490 commercial units of 400 sq ft each, or 100 residential homes and 185 commercial units of 1,200 sq ft and 400 sq ft, respectively.

Savills Singapore director (business development) Ku Swee Yong said the site was an attractive location, with an increasing population catchment with upcoming condominiums nearby.

‘But given the current market, it remains to be seen whether there will be takers.’

Meanwhile, all eyes will be on the results of the public tender, which closes at 3pm on June 25.


Katong Mall up for sale with $220m-$250m tag

Source : Business Times - 27 May 2008

KATONG Mall has been put up for collective sale at the indicative price of $220 million to $250 million.

Katong Mall: The 78,158 sq ft site could yield up to 100 residential and 185 commercial/retail units

The 78,158 sq ft site is zoned for commercial use and has a plot ratio of up to 3.6.

According to marketing agent Jones Lang LaSalle (JLL), the strata-titled 258-unit mall can be redeveloped into a commercial or retail project with a gross floor area (GFA) of up to 281,369 sq ft, subject to official approval and payment of development charge if applicable.

Based on this GFA, the unit land price works out to be between $782 and $888 per sq ft per plot ratio (psf ppr).

JLL local director (investments) Stella Hoh estimates the site could yield up to some 490 commercial/ retail units of an average size of 400 sq ft.

Ms Hoh also said outline planning permission has been obtained for a mixed residential and commercial development, with an approved plot ratio of up to 3.

This translates to a GFA of up to 234,474 sq ft, subject to official approval and payment of development charge if applicable, and could yield up to 100 residential and 185 commercial/retail units of average sizes of 1,200 sq ft and 400 sq ft respectively.

‘This scheme would appeal to developers who are looking to capitalise on the demand for residential units in the established Marine Parade enclave,’ Ms Hoh said.

In September 2007 it was reported that a majority owner held 72 per cent of Katong Mall, with the rest divided among about 100 owners. It was also reported that some minority owners were unhappy about a collective sale.

But Ms Hoh reiterated that 80 per cent approval for the collective sale has been received.


Katong Mall up for collective sale by tender

Source : Channel NewsAsia - 26 May 2008


Katong Mall is up for collective sale by tender.

Under the Master Plan, the 99-year leasehold 78,158 square foot commercial development site has a gross plot ratio of up to 3.6, with an allowable building height subject to evaluation.

It has the potential to be redeveloped into a commercial or retail development with a gross floor area (GFA) of up to 281,369 square feet, subject to relevant authorities’ approval.

To give developers more redevelopment options for the site, Outline Planning Permission has also been obtained for a mixed redevelopment of residential cum commercial development, with an approved plot ratio of up to 3.

This translates to a permissible GFA of up to 234,474 square feet, and could yield up to some 100 residential and 185 commercial/retail units with an average size of 1,200 square feet and 400 square feet respectively.

Sole marketing agent Jones Lang LaSalle said the tender will close at 3pm on June 25. - CNA/ms


Tuesday, June 24, 2008

Kranji’s growing needs

Source : Sunday Times - 25 May 2008

Farmers need more help to thrive if area is to fulfil its potential as a countryside draw

Trying to get out of the Kranji countryside without a car of your own used to require a mixture of charm and luck. Since there were no bus services, and no taxi driver would take a booking from that far-flung corner of Singapore, I had to beg for rides out from other farm visitors.

Today, the farmers run a minibus service from the nearby Kranji MRT Station, and growing public interest has been mirrored by increasing development of farms that incorporate facilities such as farmstays and cafes.

To cap it off, the Urban Redevelopment Authority (URA) unveiled plans last week for 21ha of new parkland, walking trails as well as more farming plots with space for leisure facilities there. It declared that the 1,400ha Kranji and Lim Chu Kang area - dotted with 115 farms - has potential to be ‘a unique countryside destination close to nature’.

But farmers from the Kranji Countryside Association will tell you that it has been a long, hard slog to get the authorities to recognise the gem in this north-western district - and how, despite this recent vindication, it will continue to be so.

They tried selling this concept of ‘agri-tainment’ to the authorities in 2003. This marriage of agriculture and entertainment on farmland, they said, could be used to bolster farms’ income and nurture greater interest in local produce.

In 2005, the URA eased its rules to let farms open shops and restaurants, and offer farmstays. The Singapore Land Authority followed that up the following year by putting up new farmland for tender for ‘agri-tainment’ uses.

By then, the farmers’ continual promotion - driven by the flamboyant former Netball Singapore chief Ivy Singh-Lim and fourth-generation farmer Kenny Eng - had generated enough attention for even listed firms to muscle in on the action.

HLH Agri R&D, a subsidiary of mainboard-listed PDC Corp, is now developing 20 farm villas, a restaurant and beer garden just behind Mrs Singh-Lim’s organic vegetable farm, Bollywood Veggies, off Neo Tiew Road.

But the grand plans to turn Kranji into a rustic haven belie the continual problems the farmers face.

There is still no proper bus service. SMRT service 925 - the only one that goes anywhere near - ventures only to the tip of the farming area in Neo Tiew Crescent on Sundays and public holidays.

The association’s farmers pay about $7,000 a month to run an hourly minibus service plying the inner sections of the countryside. They charge $2 a ride, which barely covers half their costs.

A bus service is a lifeline for lower-income folk who otherwise cannot afford to visit the area. But the farmers’ repeated appeals for a proper service, which they have offered to subsidise, have not borne fruit.

Until the authorities and bus companies relent, they will have to dig deep into their pockets to keep that private service going.

Indeed, up till last week, one could be forgiven for thinking that the Kranji farmers were pretty low on the nation’s priority list.

The area was unceremoniously picked for a granite stockpile last year to stabilise the supply of construction materials after Indonesia imposed a ban on land sand exports and detained barges shipping granite to Singapore.

Explaining its move, the Building and Construction Authority said the area was ‘away from built-up areas’ which, ironically, was one of the main reasons for its appeal to locals and tourists alike.

The stockpile remained, despite a 1,000-signature petition and a protest by 20 farmers. And the signs are that it will stay even in view of the longer-term plans to develop Kranji as a leisure destination.

Perhaps an even bigger issue is the short lease of farmland in Singapore. While developers downtown have the luxury of 99-year leases, farmland is leased out for 20 years at a stretch. This policy betrays the transient nature of farmland in Singapore - and bolsters the perception that land can be used for agriculture only until a more pressing or profitable use comes along.

While it is hard to justify shielding farmers from rising land costs when the rest of Singapore feels the pinch, it wouldn’t hurt to give them a greater sense of certainty now that Kranji has been earmarked as a countryside destination.

It need not be a massive gesture. Simply letting the farmers renew their leases a few years before they run out - similar to letting owners of downtown developments ‘top up’ their 99-year leases before a collective sale - can help spur hesitant farmers to develop more visitor facilities.

It would also help stave off developers with deep pockets but little interest in farming who snap up land to build commercial facilities surrounded by token planting.

Agriculture is the lifeblood of Kranji, and the farms need to thrive if the area is to fulfil its newly minted role as Singapore’s next big countryside attraction.

Lose them, and we will be left with nothing but a theme park.


Malay Village’s demise: ‘It’s time’

Source : Sunday Times - 25 May 2008

Community says place has seen its best days, but hopes redevelopments will retain area’s traditions

After years of being branded a ‘white elephant’, the death knell has finally sounded for the Malay Village in Geylang Serai.

No one seems particularly upset to see it go - not even those who mooted the idea or some of its current tenants.

‘There’s no point keeping it if we’re not able to sustain it. It has become an eyesore. Each time I pass by the place, I feel my heart breaking,’ said Major Ibrahim Bulat, 63, who was one of five members of the Malay Village advisory committee set up in 1992.

Since the 2.2ha development - about the size of two football fields - was first approved by the Ministry of National Development in 1981 to showcase Malay traditional kampung living, it has been plagued with problems and never lived up to its billing.

Of the 80 shop units, fewer than 10 are open daily even though Malay Village Pte Ltd, its current management company, said 70 of them are leased out.

Many of them are used as storage facilities by businesses.

About 1,800 tourists visited its museum last year, said Malay Village. But when The Sunday Times dropped in on Friday, its doors were shut. A security guard appeared after we told him over an intercom that we wanted to tour it.

Visitors who step into the two- storey museum, are often greeted by a whiff of cat urine and bat droppings on the floorboards as they pass dusty artefacts such as old musical instruments, cooking appliances, traditional games and a replica of a Malay wedding hall.

The guard, who doubles as the museum’s guide, said the place is kept locked unless a visitor drops in. Visitors have to pay an entrance fee of $5 and a tour of the museum takes about an hour.

Mr Dai Foh Chin, 80, one of the village’s few tenants who stay open, lamented: ‘People call this the Malay Village; I call this place a holiday resort. I open my shop from 7am to 7pm daily, but there are hardly any customers,’

The provision shop owner, who has been there for a year and pays under $3,000 in rent, said he has been making a loss of $1,000 a month.

Business is so bad that he gets his children to take his goods to be sold elsewhere.

A more recent addition to the village is Ms Siti Suhaila Yahya, 30, who opened a foot spa there three weeks ago. She spent $250,000 to set it up, but was unperturbed by news that the place will be demolished.

‘It is the norm in the retail industry for the tenancy period to be three years with no guarantee of subsequent renewal. The fact that I have until 2011 is already beyond the normal duration of tenancy,’ said Ms Siti who is already shopping around for a new location within the Geylang Serai area.

Revamp in the works

Under a new draft Master Plan unveiled by the Urban Redevelopment Authority (URA) last Friday, the Malay Village will make way for a new civic centre and plaza as part of the Government’s efforts to rejuvenate the area while preserving its local character.

The civic centre - which could take on Malay design elements - will house a community club, Community Development Council offices and possibly a library and gallery showcasing the area’s history.

Proposed pedestrian malls leading up to the Paya Lebar MRT station will also mean more space for bazaars and cultural performances.

Going too, will be Tanjong Katong Complex farther up from Malay Village.

The URA told The Sunday Times the development date for the complex, a state property managed by the Singapore Land Authority, has not been fixed but will take place after the current leases - all short-term - run out and when the land is needed.

Crucial to retain culture

But with village’s demise, will a slice of Malay history also be lost?

At least one person spoke up for the beleaguered landmark.

Associate Professor Hadijah Rahmat, head of the Malay language department at the National Institute of Education, thinks the concept behind the Malay Village is still valid and the authorities may be too hasty in wanting to demolish it.

There is a need to show how rural Malays used to live and the Malay Village still fulfils the criteria, she said.

‘But we should study how the place can be made more vibrant and dynamic. Heritage centres cannot be 100 per cent commercially run. Usually, the authorities will give a helping hand.’

The company behind the project, Malay Village Pte Ltd, still believes it can make a go of it and may appeal to have its lease extended beyond 2011.

General manager Jeffrey Chan, 35, said the company’s plans for a $50 million revamp of the village are on hold until he sees the URA blueprint for the area.

He said he had submitted a draft proposal to the authorities last month to rebuild it with a similar ‘kampung ambience’ and with 20 per cent more retail space.

At least half of the 40 Geylang Serai residents, shopkeepers and hawkers The Sunday Times spoke to said they hoped to see some elements of Malay tradition preserved in the redevelopment.

Just as many, however, said they want a mall in its place, with a supermarket; even better if it comes with a movie theatre.

‘The place was supposed to remind people of the kampung days so that our future generations will know what it was like in the old days,’ said Malay grassroots group Majlis Pusat president and former MP, Mr Zulkifli Mohammed, 60. He was also was one of the MPs who supported the idea of setting up the Malay Village.

‘Now, they will probably have to go to Malaysia or the Riau Islands to see what a kampung looks like.’

But he did agree that it is no longer viable to keep the Malay Village as it is.

‘It has not achieved the objective of showcasing Malay culture. I think the Malay Heritage Centre in Kampong Glam has taken over that role,’ said Mr Zulkifli.

He held out hope that the proposed gallery at the civic centre would offer a link to the area’s history.

The MP for the area, Dr Fatimah Lateef, 42, said while redevelopment is necessary, new structures that will be introduced, be they malls or civic centres, should ‘keep the Malay identity to a certain extent’.

Beyond incorporating Malay aesthetic elements into the designs, she hopes the new civic centre can exhibit Malay culture amid its other necessary functions, like a library and community club.

Referring to the Malay Heritage Centre, she said: ‘People may not specifically go to look for it. But if you reach out to them at the civic centre where they go to for community services, you’re bringing it out to the community rather than keeping it within four walls.’

An idea that didn’t click

1970s: The idea of having a Malay village is mooted by Majlis Pusat, the umbrella body for Malay cultural groups. There are two aims: to showcase Malay culture to visitors and to provide a place for selling Malay souvenirs. The suggested location is Pasir Panjang, with its many beachfront kampungs.

August 1980: Minister-in-charge of Muslim Affairs Ahmad Mattar announces plans for the village.

November 1981: Minister for National Development Teh Cheang Wan gives approval in principle. Dr Mattar suggests that the facility be run 100 per cent by Malays.

February 1984: The Government gives the official approval. Geylang Serai is now the chosen site.

1986: Construction begins. The Housing Board spends $10 million.

November 1989: The Malay Village is completed.

February 1991: HDB sets conditions on managing the village. Among them is a 25 per cent limit on the number of non-Malay tenants.

September 1991: Ananda group of companies, run by Hong Kong businessman Clarence Cheung, wins the tender to run the Malay Village. The tender is worth $3.8 million. It announces plans to build a high-tech Islamic cultural museum worth $10 million in the village. This never materialises.

February 1992: Tender for shops opens.

March 1992: Of the 70 shops, only eight open.

May 1992: Seven out of 45 successful bidders pull out.

June 1992: Advisory panel is formed.

June 1994: Plans for an aggressive promotion campaign with an estimated cost of $1 million are outlined.

November 1994: Ethnic ratio of tenants is removed.

April 2006: A new management, Malay Village Pte Ltd, takes over and makes a police report regarding the Malay Village’s accounts. By then, it has only a few thousand dollars in its coffers and has chalked up a six-digit debt.

April 2008: Malay Village Pte Ltd announces plans to pump in as much as $100 million to revive the place.

May 2008: URA announces plans to demolish the Malay Village after its lease ends in 2011 and to build a civic centre there in its place.


Malay Village to be torn down in 2011, but stallholders remain upbeat

Source : New Paper - 24 May 2008

‘There is a bright future’

The Malay Village is to be torn down in 2011, but some of the current stall holders were upbeat about the changes.

Malay Village Pte Ltd’s general manager Jeffrey Chan told The New Paper that he welcomed the news.

In a report in The New Paper on 12 Apr, Mr Chan, 35, said he had submitted a $50 million plan to the Housing Board (HDB) to revamp the village.

He said: ‘The plans we submitted to HDB last month seems close to what the URA (Urban Redevelopment Authority) wants. We are happy to hear that there will be a civic centre and space for cultural performances because it goes with what we plan to offer.’

He said his company wants to amend and resubmit its plans within two weeks to HDB.

When asked if he is confident of getting an approval, he would only say that he ‘remains positive’.

This despite being aware that the commercial use of the land might be shelved, which means that his plans may not be usable.

Mr Chan said that URA’s plans are not set in stone yet. ‘So we hope that when a decision on usage of the space is finally made, HDB will approve our commercial plans.’

The Malay Village was set up in 1989 to showcase traditional Malay village life but, over time, it has been labelled a white elephant.

Presently, its tenants are an odd mix of shops selling anything from traditional Malay clothes and woodcraft to frozen meat and fruits.

Despite the news that she has only three years left for business, Ms Siti Suhaila Yahya of Wayan Retreat Balinese Spa said that she is hopeful of remaining in the area beyond 2011.

The spa owner spent $250,000 to renovate her spa and hire more employees early this month.

The 30-year-old said: ‘I look forward to making the best use during this period, but I would like to assure the Malay community that we will retain our presence in Geylang Serai.’

She has another branch in Bussorah Street, off Arab Street.

She said: ‘I hope that URA will engage the existing tenants and give us priority (to be involved) in their redevelopment plans.’

Staying On

Other tenants expressed similar interest in staying on.

One of them is Mrs Ramlah Karim, 63, who shifted her bridal outfit shop to Malay Village in January due to lower rents there. Her shop used to be at Jalan Pisang off Arab Street.

She said: ‘True, there’s not much walk-in traffic and I get by on my regulars, but the place is growing on me… I like the richness of culture here and I believe there is a bright future for business when the new market and mall are ready next year.’

Nigerian tourist Lawal Musawa, 46, who was shopping with his wife at a boutique selling traditional clothes, felt the Malay Village was a ‘natural setting’ that the Malays should be proud of.

When told it will be torn down, he said: ‘This is one of the places in Singapore to see what a Malay settlement is like. If it looks too new, I don’t think tourists like me will appreciate the culture, even if there are performances.’

The Changes

UNDER the Urban Redevelopment Authority’s Draft Masterplan 2008, the estimated 2.2-ha area of the Malay Village:

  • Will be incorporated as part of a larger Paya Lebar Central area.
  • Will be transformed into a civic centre, a plaza and a pedestrian mall, but will keep the culture and heritage of the area.
  • Will house a community club, a Community Development Council office and, maybe, a community library in he civic centre.
  • Will have more space for stalls during the Hari Raya bazaar at the pedestrian mall.
  • Will have open spaces for stalls and activities in front of the civic centre, about the size of HDB Hub in Toa Payoh.


‘Kitschy’ Chinatown, authentic Little India

Source : Sunday Times - 25 May 2008


CHINATOWN

The Singapore Tourism Board’s latest numbers show that Chinatown ranks as Singapore’s second most popular free attraction after Orchard Road, drawing 51 per cent of all visitors in 2006.

Little India was third with 36 per cent while Kampong Glam, Singapore’s other Malay and Islamic enclave, drew 8 per cent.

While Chinatown is certainly more successful than the Malay Village, its critics have accused it of being too artificial following the nearly $100 million spent revitalising it in the late 1990s.

Famous architect Tay Kheng Soon, for instance, had described it as ‘kitsch’.

While facades of pre-war shophouses from Mosque Street to Neil Road were preserved under the Urban Redevelopment Authority’s conservation movement, many lament that the enclave has lost its original flavour and soul.

Today, souvenir shops and stands dot the focal areas in Pagoda Street and Trengganu Street while the other streets are filled with outlets like restaurants, antique shops and beauty parlours.

A Chinatown Heritage Centre, food street and night market are also frequented by mostly tourists.

Nearly all 10 shopkeepers interviewed agreed Chinatown no longer retains its character.

‘It’s too tailored for tourists. We go overseas, to Malaysia and China, to find the Chinese ambience,’ said Mr Gary Kor, 33, who runs Isle boutique in Pagoda Street.

Tourists say that they do not get a sense of local Chinese heritage.

Said South African tourist Gus Greeff: ‘The shops are too similar, and I don’t think they are really helpful in improving my knowledge of the Chinese culture here.’

LITTLE INDIA

Keep the old trades, let businesses sprout on their own, cater to locals and tourists. That is its success formula as an ethnic enclave.

Mr A. Jothilingam, 30, owner of textile shop Nalli, said Little India works because of its variety of traditional trades and goods and its celebration of Indian festivals.

‘The Indians will always have a reason to come back, to buy flowers and traditional textiles for weddings,’ he said.

Little India Shopkeepers and Heritage Association chairman Rajakumar Chandra hopes to retain the area’s buzz, while it is being spruced up with pedestrian streets and improved sidewalks. There are also plans for a heritage centre.

‘We don’t want it to become like Chinatown with those umbrella shops,’ he said about plans to turn Campbell Lane into a pedestrian street.

Even without a heritage centre, Mr Rajakumar, in his late 40s, feels the area showcases local Indian culture. He said: ‘You still see the old Indian goldsmiths at work, merchants grinding spices…It looks untidy but it adds colour to the area.’

As for the $180 million Tekka Mall, touted as ‘the jewel of Little India’ by its owner DRB-Hicom, it has not lived up to expectations.

Businesses were supposed to have a distinctly ethnic flavour. Instead, Sheng Siong supermarket and Guardian Pharmacy are there.Ms Sakunkhala Elizabeth, 51, who has run a beauty salon there since the mall opened in 2003, said business at her Buffalo Road outlet is brisker. ‘There’s nothing uniquely Indian about Tekka Mall.’

It is understood DRB-Hicom plans to spend between $4 million and $9 million to rebrand the six-storey mall located between Serangoon and Sungei roads.

Central: More hotels

Source : Straits Times - 24 May 2008

LIVE

  • 130,900 new homes, in towns such as Toa Payoh, Queenstown, Bukit Merah and Boon Keng, as well as at Kallang Riverside, Tanjong Rhu, Singapore River and Sentosa
  • WORK

  • Extension of the Central Business District at Marina Bay and along Beach Road/Ophir-Rochor Road
  • New offices at Paya Lebar Central
  • Further development of office and business parks at one-north
  • PLAY

  • New hotels at Chinatown, Tanjong Pagar, Singapore River, Kampong Glam, Little India, Farrer Park, Paya Lebar, Kallang Riverside, Balestier and Sentosa
  • Sports Hub at Kallang will have a National Stadium, aquatic and water leisure centre, multi-purpose indoor arena, sports library and museum
  • New park connectors and Labrador boardwalk linking Southern Ridges to VivoCity, HarbourFront and Southern Waterfront
  • New events at Singapore River

  • West: More greenery

    Source : Straits Times - 24 May 2008

    LIVE

  • 46,000 new homes near MRT stations, parks and waterbodies, such as at Jurong East, Jurong West, Hillview and Choa Chu Kang
  • A new general hospital in the Jurong Lake District by 2015
  • A shopping mall with a library and bus interchange at Clementi town centre
  • New campuses for the Canadian International School and River Valley High School in Jurong West by next year and 2015, respectively
  • Third Institute of Technical Education regional campus in 2010
  • WORK

  • 2,500ha of land set aside in Jurong and Tuas for industrial uses
  • 750,000 sq m of commercial space for offices, shops and restaurants in Jurong Gateway
  • TRAVEL

  • The East-West MRT line will be extended west
  • The Downtown Line 2 will connect parts of the region to the city centre
  • PLAY

  • Jurong Lake District will have edutainment attractions, dining and lifestyle destinations and a new park by the lake
  • World-class Science Centre next to Chinese Garden MRT Station
  • Interpretative Centre and boardwalk at the Bukit Timah Nature Reserve
  • Boardwalks and boating activities at Jurong Lake and Pandan Reservoir
  • Singapore’s first motocross venue at Tuas
  • More parks and park connectors

  • Making of a lively, liveable global city

    Source : Straits Times - 24 May 2008

    URA’s Master Plan looks at softer features of urban life and new needs like population growth

    EVERY five years, Singapore’s city planners draw up a plan that will change the face of the island and affect the lives of everyone living and working here.

    It is a gargantuan undertaking, ironically made more difficult by the country’s small size.

    This is because the Urban Redevelopment Authority (URA) needs to pack a good number of objectives into planning for a space that is just 704 square km.

    It needs to ensure, for example, that there is enough space for companies and businesses to site offices and factories. Otherwise, land cost issues could deter them from locating here and crimp economic growth.

    But it also needs to pay attention to the living environment. This means setting aside land for homes in attractive surroundings and ensuring that there are enough leisure options to keep the island’s residents entertained.

    It is these principles that have guided the 2008 URA Draft Master Plan, released by Minister for National Development Mah Bow Tan yesterday.

    ‘The challenge for our planners is to make it possible for this vision to be realised given our limited land resources,’ he said.

    And getting the balance right is crucial in what is increasingly becoming a high-stakes contest between global cities to attract investment and top talent.

    ‘You have cities that are very environmentally friendly, but tend to be very boring,’ said Mr Mah.

    ‘Or, you have cities that are very lively, very vibrant but not so liveable…the air quality is not so good.’

    This is why the theme of URA’s new master plan is ‘Where our future is. Great opportunities, good life’, he added.

    The plan envisions Singapore in 2020 as a city that is ‘distinctive in its ability to offer a unique combination of economic opportunity, vibrant lifestyle and quality environment, for a cosmopolitan population’.

    Urban planning is not new in Singapore and started before the country gained independence in 1965.

    The first master plan was forged in 1958 by the British colonial government. It regulated land use by zoning areas and introducing land density and plot ratio controls that dictated how much built-up space would be allowed in a given area.

    Land was reserved for schools, infrastructural facilities and other community uses. New satellite towns away from the city centre were also planned.

    Since then, the master plan has undergone eight reviews and various amendments.

    The most significant was in 1998, when the Government implemented major plot ratio changes in a forward-looking plan to make better use of land.

    ‘There was a fundamental change in thinking in 1998. The Government put out 55 development guide plans, which gave a clear idea of its development directions for each region,’ said Knight Frank’s managing director Tan Tiong Cheng.

    With that understanding, land owners and developers could, for the first time, plan confidently. They knew, for instance, what type of developments were slated for which site and how high the buildings could go.

    ‘That was the first new Master Plan, so major changes were made then,’ recalled Mrs Cheong Koon Hean, chief executive officer of the URA.

    Before that, the planners made updates to the plan, rather than relook it from a fresh perspective, she said.

    The next master plan review in 2003 was a broader, large-scaled plan that focused on parks and waterbodies as well as identity and heritage.

    It was not a significant departure from before, as major changes had already been introduced in 1998.

    Experts say this year’s master plan review is more focused. Apart from detailed plans for Jurong, Kallang and Paya Lebar, the emphasis was also on the softer features of urban life and new needs like population growth.

    In 2005, the URA started drawing up a plan for more leisure offerings.

    ‘We were looking into how else to make Singapore an even more fun and restful place,’ said Mrs Cheong.

    URA planners looked at the whole island, took stock of what Singapore already had and acted on the results of a lifestyle survey which showed, for instance, that people liked to see parks near their homes.

    Then, they worked out a plan - the first islandwide one - that capitalised on Singapore’s green assets.

    The resulting Leisure Plan, unveiled earlier this week, adds 900ha of park land and triples the size of Singapore’s park connector network. One result: A stunning new 150km round-island cycling route.

    In the North and West regions, for example, many of the new homes planned will be located near reservoirs and parks such as Jurong Lake and Lower Seletar Reservoir.

    But the URA also looked carefully at each of Singapore’s five regions.

    A team of six key planners worked on the proposals for each region, while teams of around 10 key planners drew up the detailed plans for the new growth areas such as Kallang Riverside.

    In all, more than 300 officers comprising urban planners, architects and technical staff got involved.

    Hours were spent walking the ground to get a feel for the areas under study. And the URA went overseas to get ideas.

    ‘We looked to cities like New York for its exciting nightlife and rich arts scene and to Seoul for its success in creating beautiful urban waterways,’ a URA spokesman told The Straits Times.

    The plans for Kallang Riverside, for example, have their roots in waterfront housing and hotel developments in the United States city of Miami as well as Barcelona, Spain.

    Another theme that runs clearly through the 2008 Master Plan is the decentralisation of urban activity to commercial nodes outside the Central Business District.

    It is a strategy that first made an appearance in the URA’s 1991 concept plan, with the Tampines Regional Centre identified as the first decentralised commercial hub.

    Today, Tampines is dubbed the ‘Shenton Way of the East’, with many banks having set up backroom operations there.

    The idea, as Mr Mah puts it, is to ‘bring jobs closer to homes and homes closer to jobs’.

    Therefore, under this year’s plan, Paya Lebar Central will be further developed and more jobs will be introduced to the North, North-east and East regions in various business and manufacturing parks.

    Conversely, more housing will be introduced in the West region, which traditionally has been an industrial stronghold, in areas like the Jurong Lake District, Hillview and Choa Chu Kang.

    With leisure amenities also coming up in all these regions, and transport links between the regions strengthened, the hope is that people will need to travel less to the city. And this will reduce the burden on the country’s transport infrastructure.

    Finally, with tourism now being a key pillar of growth, the new master plan has set aside more land for hotels to cater to tourists coming here to enjoy the attractions.

    New hotels have been planned for areas such as Chinatown, Singapore River, Paya Lebar and Sentosa.

    Initial reactions to the plan have been favourable, with developers applauding the clarity of the plans.

    ‘It gives you a good idea of what the Government will be doing in the next five to 10 years and gives us investors more confidence,’ said Mr Allen Law, director of the Park Hotel Group.

    ‘In less developed countries, you don’t know what type of supply may spring up next to your development.’

    And for all the proposals for change mooted, some appreciated that certain policies would not change.

    For example, there are no major plot ratio changes this year, which developers said may be a good thing, given the current market uncertainty.

    The property market has had its quietest period in years as many buyers kept to the sidelines this year.

    The URA has also pledged to release new land parcels at a pace that is in line with market demand and conditions.

    Overall, Mr Simon Cheong, president of the Real Estate Developers’ Association of Singapore, said the 2008 Master Plan provides for a very sustainable global city, which will offer a lot of opportunities for developers.

    ‘It’s very comprehensive and not a cut-and-paste approach,’ added Mr Cheong. ‘There’s already a soul in Singapore and you want to maintain that.’

    The public is invited to give its feedback on the 2008 Draft Master Plan at an exhibition being held at the URA Building in Maxwell Road until June 20. It is open between 9am and 7pm from Monday to Friday and 9am to 1pm on Saturdays. Admission is free.

    More space, more buzz in expanded city centre

    Source : Straits Times - 24 May 2008

    Size will double with 23,000 new homes; wider lifestyle, leisure and business options

    THE heart and soul of Singapore is about to get bigger - and you might get to live closer to it.

    The city centre is set for an injection of 23,000 new homes in the next decade, as the , (CBD) doubles in size to dwarf even that of London’s famed Canary Wharf financial district.

    In particular, Tanjong Pagar has been identified for rejuvenation, which will see new hotels, and commercial and residential sites being developed as the district becomes the ‘Southern Gateway’ to the city centre.

    Plans for a bigger, bolder city centre - which will offer more lifestyle, business and leisure options - were released by Singapore’s urban planners under the latest draft Masterplan 2008 yesterday.

    Marina Bay will remain the mainstay of supply for Singapore’s growing demand for office space. At 129ha and offering 2.82 millionsqm of office space, it will be the equivalent of Hong Kong Central, the city’s main business district, said the Urban Redevelopment Authority (URA).

    While Marina Bay and the city centre will be the key commercial districts to meet demand, new ‘commercial nodes’ outside the CBD will offer attractive alternatives to businesses, said National Development Minister Mah Bow Tan yesterday at the launch.

    This includes the Beach Road/Ophir-Rochor district, which will undergo a makeover previously announced by URA to become the ‘Northern Gateway’ to the city. Already under way is the development of the eco-friendly South Beach project designed by world-renowned British architect Norman Foster and his partners.

    The development includes two towers of up to 45 storeys high, linked to the conserved military buildings of the old Beach Road camp. There will also be premium office space, two luxury hotels offering up to 700 rooms, service apartments and shops on the 3.5ha site.

    In Tanjong Pagar, several sites have been sold in the past year for the development of new offices, hotel rooms and high-rise residential projects such as Pinnacle@Duxton and the Icon.

    All this and more will further enhance the vibrancy and activities of the Tanjong Pagar commercial district, said URA.

    In the broader central region, another 130,900 homes have also been planned, adding to the existing 335,400 units in the area.

    These include new abodes in established towns Queenstown, Toa Payoh and Kallang. The proliferation of homes located close to commercial centres is also part of the strategy to ‘reduce commuting by bringing jobs closer to home’, said Mr Mah.

    Public infrastructure, especially in transport, will be enhanced in the area, with the new Downtown and Thomson MRT lines and the Marina Coastal Expressway serving the expanded city centre.

    Mr Danny Yeo, deputy managing director of property consultancy Knight Frank, said the latest plans will help alleviate some of the city’s traffic problems.

    ‘The increased residential component will also inject a lot more nightlife, and bring people closer to towns, reducing the need for travelling,’ said Mr Yeo.