Saturday, July 18, 2009

There’s a silver lining in higher prices

Source : Straits Times – 18 Jul 2009

I REFER to Tuesday’s letter by Ms Tan Say Yin, ‘HDB valuation hike may have led to higher resale prices’. The writer was incorrect to have suggested that the HDB raises or reduces the value of flats to suit sellers or buyers.

HDB valuations are conducted by independent valuers who determine the value based on the condition of and existing demand for the property.

The valuation also considers the willingness of buyers to pay cash over valuation. So, it is understandable that resale prices have risen about 30 per cent since the beginning of 2007, despite the recession.

In an uncertain economy, public housing is always a popular choice and the recent statistics demonstrate just that.

Looking at it positively, the price increase also helps many Singaporeans who bought their HDB flats during the previous peak of 1996; they would have been holding on to a negative asset since then as the resale price index (RPI) for 1996 was much higher than any since then, even that of 2007.

In fact, prices dropped from 1996 by about 30 per cent, bottoming out in 2002. It is only due to the recent eclipse of the 1996 RPI – by prices in the third quarter of last year – that these Singaporeans now own a positive asset.

Even with the current increase in HDB resale prices, first-time HDB owners have various options of buying resale flats with their Central Provident Fund money and enjoying up to $80,000 in government grants, or purchasing new subsidised flats via the Build-To-Order scheme.

Adam Tan


Clearing a misconception


Source : Straits Times – 18 Jul 2009

‘It is incorrect to say that higher HDB valuations will lead to higher HDB resale prices.’

MS JANET HAN, Secretariat, Singapore Institute of Surveyors and Valuers: ‘I refer to Tuesday’s letter by Ms Tan Say Yin, ‘HDB valuation hike may have led to higher resale prices’. We would like to explain the misconception about valuation raised in her letter. The purpose of valuation is to determine the market value of the property. A common method is to use the prevailing market prices of similar properties in the locality as a basis to determine the market value of the subject property. Valuation reflects the state of the market and the demand and supply situation. In recent months, the property market has somewhat stabilised because of the improved sentiment in the economy. The professional valuer therefore reflects the sentiment of the rising market in the valuation, but does not dictate the market prices agreed by both the buyer and seller. Hence, it is incorrect to say that higher HDB valuations will lead to higher HDB resale prices.’


HDB flat valuations done by independent professionals


Source : Straits Times – 18 Jul 2009

I REFER to Tuesday’s letter by Ms Tan Say Yin, ‘HDB valuation hike may have led to higher resale prices’. Valuations are carried out by independent professional valuers, not HDB.

These valuers are members of the Singapore Institute of Surveyors and Valuers and are licensed by the Inland Revenue Authority of Singapore.

The valuation is based on actual transacted resale prices for similar flat types in the vicinity. This is a well-established industry practice and applies to both private and public housing valuation.

Resale prices are affected by many factors such as the overall economy, property market sentiment and flat attributes such as location, size and age.

To help flat buyers and sellers to make informed decisions, HDB provides the latest data on the HDB resale market online, including recent actual transacted resale prices and cash-over-valuation (COV) payments.

Ms Tan mentioned that the valuation of a four-room flat in Tampines is about $350,000, with $20,000 COV. According to HDB’s public housing data, the median transacted price for a four-room flat in Tampines was $331,000 in the first quarter of this year and the median COV amount was $4,000.

About 38 per cent of all resale transactions in the same quarter were transacted either at or below valuation. We advise Ms Tan to shop around for a flat that meets her budget and preferences and negotiate for the best possible price.

Chan-Wong Jee Choo Lily (Mrs)
Deputy Director, Policy and Property
Housing & Development Board


Push to certify real estate agents


Source : Straits Times – 18 Jul 2009

THE real estate industry is stepping up efforts to train and certify property agents in Singapore, after the Government expressed concern over the unscrupulous practices of rogue agents, highlighted in a recent spate of unsavoury incidents.

Singapore Accredited Estate Agencies (SAEA) said yesterday it aims to see at least half of the 30,000 or so agents here accredited by the year-end – a tough goal as the tally to date is only 6,000.

As an incentive, SAEA has persuaded the Workforce Development Agency (WDA) to subsidise most of the course fees for one of the exams till December.

Agents will be tested on property law, ethics and sales processes. The goal is to ensure that property buyers and sellers are able to engage only accredited agents trained in such transactions, said SAEA chief Tan Tee Khoon yesterday.

The Institute of Estate Agents said yesterday it would introduce in September a six-week entrance course for all new property agents. No such course is offered currently, so basic training is left to individual property agencies.

Accreditation is voluntary, as the Government has always said it prefers the sector to be self-regulated. There is no law requiring property agents in Singapore to be licensed or qualified. They are regulated by the agencies they work for.

However, this has led to some instances of buyers and sellers being cheated by unethical rogue agents or misled by ignorant ones. In February, a couple successfully sued estate agency ERA Realty Network because its agents had made a profit out of ‘flipping’ an apartment they were supposed to sell for the couple.

Following this, National Development Minister Mah Bow Tan said the current regulatory regime was not tenable, so the Government was considering tightening the rules governing agents.

In response, SAEA yesterday unveiled several steps to raise industry standards.

The first is to encourage more agents to obtain accreditation. To do so, they must pass an exam and belong to one of the 300 agencies accredited by SAEA.

They can take either the Common Examination for Housing Agents (CEHA) or the lower-level Common Examination for Salespersons (CES).

CEHA, which costs $315 and was introduced in 1996, is recognised by the Inland Revenue Authority of Singapore as a qualification for agents who want to start their own real estate firms.

CES, which costs $200 and consists of multiple-choice questions, was created last year for agents keen on simply buying and selling properties. This group makes up about two-thirds of agents here.

Yesterday, SAEA said WDA will subsidise 80 to 90 per cent of the course fees for CES takers until the end of the year.

Nine of the largest SAEA-accredited agencies – including PropNex, ERA, HSR and Dennis Wee – have pledged to get all their active agents to take the exams by the year-end. These agents do deals regularly and make up about half of all agents here. ERA associate director Eugene Lim, for instance, said the firm will send 50 to 80 agents to take the exams every month.

For agents keen to get further qualifications, SAEA is also tying up with Ngee Ann Polytechnic to introduce a new Certificate in Real Estate Marketing. The six-month course will cost about $1,500 and is slated to start in November.

In addition, SAEA is taking steps to improve its complaint procedures. Buyers and sellers who are unhappy with their accredited agents can lodge complaints with SAEA, which receives about 70 such complaints a year. Previously, the process was not made public, and there was no structured procedure to handle dispute resolution, said Dr Tan. Now, SAEA will provide greater transparency when dealing with complaints.

Dr Tan said these moves are a push by the industry to raise the competence and improve the conduct of real estate agents, but that help from the Government would also be appreciated.

‘I hope that some time next year, we will see an announcement by the Government on making accreditation compulsory for those who want to practise.’


Push to certify real estate agents


Source : Straits Times – 18 Jul 2009

THE real estate industry is stepping up efforts to train and certify property agents in Singapore, after the Government expressed concern over the unscrupulous practices of rogue agents, highlighted in a recent spate of unsavoury incidents.

Singapore Accredited Estate Agencies (SAEA) said yesterday it aims to see at least half of the 30,000 or so agents here accredited by the year-end – a tough goal as the tally to date is only 6,000.

As an incentive, SAEA has persuaded the Workforce Development Agency (WDA) to subsidise most of the course fees for one of the exams till December.

Agents will be tested on property law, ethics and sales processes. The goal is to ensure that property buyers and sellers are able to engage only accredited agents trained in such transactions, said SAEA chief Tan Tee Khoon yesterday.

The Institute of Estate Agents said yesterday it would introduce in September a six-week entrance course for all new property agents. No such course is offered currently, so basic training is left to individual property agencies.

Accreditation is voluntary, as the Government has always said it prefers the sector to be self-regulated. There is no law requiring property agents in Singapore to be licensed or qualified. They are regulated by the agencies they work for.

However, this has led to some instances of buyers and sellers being cheated by unethical rogue agents or misled by ignorant ones. In February, a couple successfully sued estate agency ERA Realty Network because its agents had made a profit out of ‘flipping’ an apartment they were supposed to sell for the couple.

Following this, National Development Minister Mah Bow Tan said the current regulatory regime was not tenable, so the Government was considering tightening the rules governing agents.

In response, SAEA yesterday unveiled several steps to raise industry standards.

The first is to encourage more agents to obtain accreditation. To do so, they must pass an exam and belong to one of the 300 agencies accredited by SAEA.

They can take either the Common Examination for Housing Agents (CEHA) or the lower-level Common Examination for Salespersons (CES).

CEHA, which costs $315 and was introduced in 1996, is recognised by the Inland Revenue Authority of Singapore as a qualification for agents who want to start their own real estate firms.

CES, which costs $200 and consists of multiple-choice questions, was created last year for agents keen on simply buying and selling properties. This group makes up about two-thirds of agents here.

Yesterday, SAEA said WDA will subsidise 80 to 90 per cent of the course fees for CES takers until the end of the year.

Nine of the largest SAEA-accredited agencies – including PropNex, ERA, HSR and Dennis Wee – have pledged to get all their active agents to take the exams by the year-end. These agents do deals regularly and make up about half of all agents here. ERA associate director Eugene Lim, for instance, said the firm will send 50 to 80 agents to take the exams every month.

For agents keen to get further qualifications, SAEA is also tying up with Ngee Ann Polytechnic to introduce a new Certificate in Real Estate Marketing. The six-month course will cost about $1,500 and is slated to start in November.

In addition, SAEA is taking steps to improve its complaint procedures. Buyers and sellers who are unhappy with their accredited agents can lodge complaints with SAEA, which receives about 70 such complaints a year. Previously, the process was not made public, and there was no structured procedure to handle dispute resolution, said Dr Tan. Now, SAEA will provide greater transparency when dealing with complaints.

Dr Tan said these moves are a push by the industry to raise the competence and improve the conduct of real estate agents, but that help from the Government would also be appreciated.

‘I hope that some time next year, we will see an announcement by the Government on making accreditation compulsory for those who want to practise.’


Grangeford owner gets court order to recover units


Source : Straits Times – 18 Jul 2009

COVE Development, the property owner of Grangeford condominium in Leonie Hill, has obtained a court order to recover the 171 apartment units which were previously leased to Ideal Accommodation.

Ideal’s former tenants who are still staying there have until noon next Wednesday to move out or Cove will apply for a writ of possession.

This is the latest in the long-running saga between Cove and Ideal, which have been tussling over tenants since Cove terminated its master tenancy agreement with Ideal last month.

This was after the Urban Redevelopment Authority (URA) had found that Ideal had illegally partitioned 140 apartments into 600 units for subletting and ordered the units to be reverted to their original state by June 3.

But Ideal told the tenants only a few days before the deadline, creating an uproar among those living there.

In a press statement posted on the Singapore Exchange website yesterday, Cove said it had been ‘doing its utmost’ to meet URA’s deadline of July 27 to complete demolition works.

However, at the time of hearing of its court application on July 13, it had managed to recover only about 14 affected apartment units to carry out the works.

It had not been able to recover units still occupied by Ideal’s former tenants who have ’shown resistance in vacating Grangeford’.

It declined to say how many more apartment units it has been able to recover since the hearing.


Malls finding ways to give back to society

Source : Straits Times – 18 Jul 2009

MALLS are increasingly getting into action for charitable causes, to help the less fortunate and engage their shoppers.

At least five mall operators and retail groups have recently put in place community initiatives. They say that through such community projects, they can play their role as responsible corporate citizens by helping the less-privileged, and also bond with their shoppers.

New mall Tampines 1, for instance, will raise money today for the Operation Hope Foundation, a Singapore-based charity which helps orphans and the poor in Third World countries. It will collect $5 from each shopper that attends its ‘Swop Party’ – where participants bring along five or more fashion items for swopping with others. Each item gets the shopper a token that can be exchanged for others’ items.

Proceeds from the entry fees, and from items sold for $5 to those who have run out of tokens, will go to the charity.

AsiaMalls Management, which runs Tampines 1, wanted ‘a more meaningful way’ of marking the mall’s opening by raising funds for charity, said the company’s general manager Stephanie Ho.

VivoCity provides a venue at a nominal charge for the needy and disabled to sell art and craft works twice a month.

The former Paradiz Centre, now known as PoMo, reached out to its young neighbourhood – comprising art institutions like the School of the Arts and the Nanyang Academy of Fine Arts – by holding a sculpture- design contest with a $10,000 grant for the winner, and by providing a platform for budding musicians to showcase their talents.Centre managerJess Neo said: ‘It is in our interest to ensure that we continually engage the community through a variety of activities.’

On Thursday, the philanthropic arm of CapitaLand, the CapitaLand Hope Foundation (CHF), gave $1 million raised through its year-long recycling campaign to needy students from more than 150 primary schools. Last month, its staff took 200 children from Care Corner Singapore shopping for school necessities, using CHF vouchers.

Dairy Farm Singapore will launch its community campaign today which includes a step-aerobics session where the total number of steps taken by participants will translate into free bags of basic essentials for the needy from Dairy Farm.

Singapore Retailers Association executive director Lau Chuen Wei said that supporting charity can create a positive brand for a mall and show that ‘it’s not there solely for commercial gain’. She pointed out that the higher traffic to such events may not even necessarily bring higher sales, since genuine shoppers may be turned off by the crowds.

Consumers like marketing executive Gillian Khoo, 23, are glad shopping centres are giving back to society. She said: ‘Everyone benefits. The malls get to attract people, especially those who are conscious of social responsibility, the unfortunate get help, and shoppers like me get to do something fun and meaningful.’


Push to get property agents accredited


Source : Business Times – 18 Jul 2009

AN ESTATE agents’ group has launched a push to heighten the professionalism of property agents.

Singapore Accredited Estate Agencies (SAEA) wants all housing agents to have at least an entry-level Common Examination for Salesperson (CES) certificate. SAEA wants ‘to move the estate agency profession to the next lap’, said its recently appointed chief executive officer Tan Tee Khoon.

At present, about 6,000 out of 24,000 property agents at accredited agencies have either first-tier Common Examination for Housing Agents (CEHA) or second-tier CES certification.

Although SAEA wants all agents to be accredited, obtaining a certification will be voluntary and there will be no penalty should an agent choose to not be accredited. But property agencies and SAEA are confident that the agents will choose to be accredited ’since it will benefit them in the long run’, Dr Tan said.

To encourage them to obtain certification, SAEA has obtained funding from the Workforce Development Agency (WDA) for first-tier CES accreditation. The funding will cover up to 80-90 per cent of the course fee, which is about $350, excluding examination charges. Some agencies, such as HSR, will fully subsidise the remaining costs.

Another SAEA initiative will improve the procedure for dealing with complaints and disputes involving estate agencies.

Dr Tan said that the procedure has been enhanced to provide greater transparency for consumers, from the time that a complaint is lodged until when the matter is closed. SAEA will also work with CES external examiner Ngee Ann Polytechnic to introduce a Certificate in Real Estate marketing so that CEHA and CES holders can upgrade to a recognised professional qualification.

The first 120-hour course will run from November this year. SAEA and Ngee Ann Polytechnic are working on the prospect of getting funding from the Skills Development Fund for the course, which will cost $1,500 for six months.


Steven Choo brings a special touch to Redas


Source : Business Times – 18 Jul 2009

STEVEN CHOO, a former property consultant and university lecturer, will be taking on a new role soon – as chief executive officer of the Real Estate Developers Association of Singapore (Redas).

BT understands that his appointment begins on Aug 1.

Dr Choo, 57, will replace retiring Redas executive director Chia Hock Jin.

Market watchers suggest that Dr Choo’s appointment is part of efforts by the Redas council, led by president Simon Cheong, to spruce up the organisation and its image. Having someone who is also a well-respected professional as CEO would also bolster Redas’s credibility.

‘He was well liked by students when he was a university lecturer,’ a former colleague said when told about Dr Choo’s new job. ‘He’s also respected by people in the property industry as well as government officials. He talks sense and doesn’t push it too much.’

An industry observer said: ‘Redas needs someone knowledgeable like Dr Choo, who can hold discussions with the authorities and whom they can take with a certain seriousness. He’s someone more neutral and yet who knows the market. Of course, he’s also very good at doing research.’

The association is also expected to take more interest in training and development in the real estate industry, BT understands.

Analysts say that they would not be surprised if Dr Choo recruits fresh talent to boost the management team at Redas to help achieve these goals.

The former Catholic High School student holds a PhD in urban planning from the University of Washington.

He was a senior lecturer at the National University of Singapore’s School of Building & Estate Management before joining Richard Ellis Property Consultants (now known as CB Richard Ellis) in 1993. Dr Choo left the firm in 1995 to join rival Jones Lang Wootton, which later became Jones Lang LaSalle (JLL). In 2001, he left JLL, where he was last head of research and consultancy and regional research head.

Dr Choo later surfaced at CapitaLand, where the posts he held included senior vice-president of research and corporate development and also SVP of CapitaLand Residential’s Malaysia investment department.

He left the property giant a few years ago and has since been doing property consultancy stints in the Middle East, BT understands. Dr Choo is married and has a grown-up son.

He has also served on the boards of the Singapore Land Authority and JTC Corporation in the past. He was also deputy chairman of the Economic Review Committee’s Land Work Group.

He currently sits on the board of NTUC Choice Homes.


Property agents reach out with Facebook


Source : Business Times – 18 Jul 2009

FRIENDLY phone calls or e-mail just do not seem enough these days. Soon, more property agents may ’superpoke’ their clients when previews for the latest launches begin, or when choice units from existing developments surface.

Having carved out a stronghold in the classifieds, property agents are now expanding their reach to virtual networking site Facebook. Some set up profiles for upcoming projects, while many others leave their contact numbers on those pages for house hunters.

KF Property Network’s Tony Koe is one agent who has been actively promoting launches on Facebook. The general manager of the Knight Frank subsidiary has created profiles for Soilbuild Group’s Meier Suites off Meyer Road – for which there will be a preview this weekend – as well as for Far East Organization’s Silversea at Amber Road.

‘We have established a group of supporters, be they our fellow agents in the market or regular property purchasers,’ said Mr Koe. One reason is that they can obtain information on the projects quickly from Facebook, he explained.

For instance, visitors to the Silversea page will be able to view artist’s impressions of the development. They can also gauge how response to the launch has been by viewing photographs of the turnout at the showflat. The page boasts 197 ‘fans’, comprising what is likely to be a mix of agents and interested buyers.

Also, a Facebook profile is free, accessible by users from around the world, Mr Koe said. According to him, one of his agents was even asked to fly to Indonesia, at the request of a Facebook user and prospective investor there.

Word-of-mouth is also strong on Facebook and other networking sites, said Michael A Netzley, a corporate communications professor at Singapore Management University’s Lee Kong Chian School of Business. ‘A recommendation from a friend can have a strong impact on how others perceive the product or service.’

Besides property agents, at least one other developer has jumped on the Facebook bandwagon. Hong Leong Holdings recently set up a profile for its new project in the Upper Changi area, The Gale, and over 330 users have signed up as ‘fans’.

The page offers regular updates on sales. For instance, a post on Monday screamed: ‘More than 65 per cent sold in three days of preview!’

A user going by the name Yue HuiHui would also have found the page useful. No, there is no mini golf course at The Gale, said an agent in response to his question. But, there are 18 other facilities such as a bubble pool which he can ‘enjoy’.

A Hong Leong Group spokeswoman said that The Gale’s Facebook page has received ‘very encouraging’ response and there is a constant stream of posts. ‘It is highly probable that Hong Leong Holdings will promote future projects through Facebook and other Web 2.0 applications. Projects in the pipeline include its development at No 1 Balmoral Road and No 76 Shenton Way.’

For every popular Facebook page, however, there can be many others which stay unseen. Some agents attract barely a fan on pages which they create for certain developments.

KF Property Network’s Mr Koe points out that a site’s success also depends on the agent’s influence in the industry. ‘The person who set up the page must be a magnet himself,’ he said, adding that that person would still have to go out and gain contacts. ‘You can set up a very beautiful website, but if you can’t draw people’s eyeballs to you, that will defeat all the purpose.’

Herein lies the drawback of marketing through networking sites such as Facebook. According to Prof Netzley, relying on existing networks to spread the word means that outreach will be limited. ‘In exchange for the smaller reach, we expect a higher response rate,’ he said.

In contrast, messages spread through traditional media such as newspapers or television reach a much wider audience. In turn, the response rate to this mode of marketing is likely to be lower, he said.

For most companies, print advertising is unlikely to go out of style anytime soon. At Singapore Press Holdings’ Cats Classified, for instance, the average number of fresh listings has increased from January to June, reflecting the pick-up in market sentiment.

Many ‘property watchers’, in particular, rely on weekend editions of major newspapers to find out about launches, said the Hong Leong spokeswoman. ‘Perusing the advertisements from developers in the newspapers also allows them to easily compare the benefits of different developments.’


Surprising Serangoon


Source : Straits Times – 18 Jul 2009

Big changes are happening in Little India.

More than just Mustafa and foreign workers, it is now an enclave of arts spaces, boutique condominiums and hip eateries.

Yes, along the side streets off the main thoroughfare of Serangoon Road there is still the whiff of curry powder and the blare of Hindi music.

But new entrants adding a contemporary urban flavour have been popping up among the rows of terrace shophouses.

And such is the changing vibe with more new buildings coming up, including an 11-storey shopping mall and a hotel.

Buildings making their mark on the area include small condo developments with sleek, geometric designs and plenty of glass and steel, including Soho 188 and Soho@Farrer, both located along Race Course Road, and Residences@Somme in Petain Road.

There are the high-rise developments such as the 481-unit Kerrisdale in Sturdee Road and the 910-unit City Square Residences in Kitchener Road.

Developers spotted a niche opportunity in the area sited close to town and becoming a trendy destination.

Ms Jain Shu, project coordinator with Tania Developments, which is redeveloping three shophouses and building a six-storey extension for residential use in Roberts Lane, says: ‘The company already had the property for some time and we realise the Serangoon Road market is upcoming. We see a lot of potential in the area.’

A spokesman for City Developments, developer of City Square Residences and the upcoming 11-storey City Square Mall, says the shopping centre will redefine the shopping and entertainment experience in the precinct, adding that the two projects ‘along with other upcoming developments, will gentrify the Serangoon Road vicinity’.

Residential property prices here are comparable with those elsewhere. At Studios@Marne in Marne Road, the average apartment is priced at $1,000 per sq ft.

Mr Chris Koh, director at Dennis Wee Properties, says the pricing is reasonable as the apartments are close to Farrer Park MRT station.

‘Its convenient location is an attraction and buyers will not mind that the area is congested,’ he says.

Indeed, a Serangoon Road resident, who wanted to be known only as Mr Saji, 34, says he has seen more people moving into the area in the last three years.

‘People used to think that this area was crowded, but now they realise it is so central,’ he says.

Long-time resident Srikanth Rajah, 33, who owns a printing shop, has been living in an HDB flat in Buffalo Road for 25 years.

He says the demand for flats in the area has been high, even for old ones like his.

‘Property agents have been asking residents if they wish to sell,’ he says, adding that he notices more young couples moving into the area.

Appealing to the young and trendy would be the Little India Arts Belt in Kerbau Road, set up in 2002 by the National Arts Council. It is a row of shophouses rented out to arts groups such as Bhaskar’s Arts Academy and Sri Warisan Som Said.

Art galleries have also popped up in the area, such as Post-Museum in Rowell Road and Your Mother Gallery in Hindoo Road.

Backpacker hostels have opened here, set in old shophouses which give them a unique charm. Among them are The InnCrowd Backpackers Hostel and Prince of Wales Backpackers Pub, both in Dunlop Street.

As for hip eateries, they include Zsofi Tapas Bar in Dunlop Street, which serves Spanish nibbles such as ham-and-cheese potato fritters, a change from the area’s many Indian restaurants.

Expect more new properties in the area over the next year, such as a hotel, at least two low-rise condos, a 20-storey mixed development building and a six-storey extension to Mustafa Centre.

And by year-end, City Square Mall in Kitchener Road will open with more than 250 stores. Anchor tenants include Metro department store, FairPrice supermarket and electronics retailer Best Denki.

With new homes and businesses popping up, just what do residents and regular visitors to Little India think?

Madam Doris Lim, 39, who lives at City Square Residences, says she chose to live here because of the development’s convenient location. ‘It is close to Farrer Park and Little India MRT stations and the main bus routes,’ she says.

As for teacher Wendy Koh, 34, who has been living at Kerrisdale since 2006, she picked the place because she likes the condominium’s design ‘I didn’t really consider the surroundings,’ she says.

Mr Rajakumar Chandra, 50, chairman of the Little India Shopkeepers and Heritage Association, says the new entrants ‘make the area more bustling and not so quiet. There is more vibrancy now’.

The new additions aside, it is still the food that draws trading and operations executive Jayakumar Mannar, 60, to the area twice a week from his home in Eunos.

‘It’s the nasi briyani – I can’t find the same taste anywhere else.’

Dr Kevin Tan, 48, president of the Singapore Heritage Society, says the transformation of Serangoon Road is interesting and exciting.

But he adds: ‘Much of the area is still under conservation so I don’t see the character of the place changing too rapidly or radically.’

Student May Lam, 23, is a fan of Little India. ‘The place is always so alive, regardless of whether it’s day or night,’ she says.


‘Much of the area is still under conservation so I don’t see the character of the place changing too rapidly or radically’ – Dr Kevin Tan, president of the Singapore Heritage Society, on Serangoon Road’s transformation


Surprising Serangoon


Source : Straits Times – 18 Jul 2009

Big changes are happening in Little India.

More than just Mustafa and foreign workers, it is now an enclave of arts spaces, boutique condominiums and hip eateries.

Yes, along the side streets off the main thoroughfare of Serangoon Road there is still the whiff of curry powder and the blare of Hindi music.

But new entrants adding a contemporary urban flavour have been popping up among the rows of terrace shophouses.

And such is the changing vibe with more new buildings coming up, including an 11-storey shopping mall and a hotel.

Buildings making their mark on the area include small condo developments with sleek, geometric designs and plenty of glass and steel, including Soho 188 and Soho@Farrer, both located along Race Course Road, and Residences@Somme in Petain Road.

There are the high-rise developments such as the 481-unit Kerrisdale in Sturdee Road and the 910-unit City Square Residences in Kitchener Road.

Developers spotted a niche opportunity in the area sited close to town and becoming a trendy destination.

Ms Jain Shu, project coordinator with Tania Developments, which is redeveloping three shophouses and building a six-storey extension for residential use in Roberts Lane, says: ‘The company already had the property for some time and we realise the Serangoon Road market is upcoming. We see a lot of potential in the area.’

A spokesman for City Developments, developer of City Square Residences and the upcoming 11-storey City Square Mall, says the shopping centre will redefine the shopping and entertainment experience in the precinct, adding that the two projects ‘along with other upcoming developments, will gentrify the Serangoon Road vicinity’.

Residential property prices here are comparable with those elsewhere. At Studios@Marne in Marne Road, the average apartment is priced at $1,000 per sq ft.

Mr Chris Koh, director at Dennis Wee Properties, says the pricing is reasonable as the apartments are close to Farrer Park MRT station.

‘Its convenient location is an attraction and buyers will not mind that the area is congested,’ he says.

Indeed, a Serangoon Road resident, who wanted to be known only as Mr Saji, 34, says he has seen more people moving into the area in the last three years.

‘People used to think that this area was crowded, but now they realise it is so central,’ he says.

Long-time resident Srikanth Rajah, 33, who owns a printing shop, has been living in an HDB flat in Buffalo Road for 25 years.

He says the demand for flats in the area has been high, even for old ones like his.

‘Property agents have been asking residents if they wish to sell,’ he says, adding that he notices more young couples moving into the area.

Appealing to the young and trendy would be the Little India Arts Belt in Kerbau Road, set up in 2002 by the National Arts Council. It is a row of shophouses rented out to arts groups such as Bhaskar’s Arts Academy and Sri Warisan Som Said.

Art galleries have also popped up in the area, such as Post-Museum in Rowell Road and Your Mother Gallery in Hindoo Road.

Backpacker hostels have opened here, set in old shophouses which give them a unique charm. Among them are The InnCrowd Backpackers Hostel and Prince of Wales Backpackers Pub, both in Dunlop Street.

As for hip eateries, they include Zsofi Tapas Bar in Dunlop Street, which serves Spanish nibbles such as ham-and-cheese potato fritters, a change from the area’s many Indian restaurants.

Expect more new properties in the area over the next year, such as a hotel, at least two low-rise condos, a 20-storey mixed development building and a six-storey extension to Mustafa Centre.

And by year-end, City Square Mall in Kitchener Road will open with more than 250 stores. Anchor tenants include Metro department store, FairPrice supermarket and electronics retailer Best Denki.

With new homes and businesses popping up, just what do residents and regular visitors to Little India think?

Madam Doris Lim, 39, who lives at City Square Residences, says she chose to live here because of the development’s convenient location. ‘It is close to Farrer Park and Little India MRT stations and the main bus routes,’ she says.

As for teacher Wendy Koh, 34, who has been living at Kerrisdale since 2006, she picked the place because she likes the condominium’s design ‘I didn’t really consider the surroundings,’ she says.

Mr Rajakumar Chandra, 50, chairman of the Little India Shopkeepers and Heritage Association, says the new entrants ‘make the area more bustling and not so quiet. There is more vibrancy now’.

The new additions aside, it is still the food that draws trading and operations executive Jayakumar Mannar, 60, to the area twice a week from his home in Eunos.

‘It’s the nasi briyani – I can’t find the same taste anywhere else.’

Dr Kevin Tan, 48, president of the Singapore Heritage Society, says the transformation of Serangoon Road is interesting and exciting.

But he adds: ‘Much of the area is still under conservation so I don’t see the character of the place changing too rapidly or radically.’

Student May Lam, 23, is a fan of Little India. ‘The place is always so alive, regardless of whether it’s day or night,’ she says.


‘Much of the area is still under conservation so I don’t see the character of the place changing too rapidly or radically’ – Dr Kevin Tan, president of the Singapore Heritage Society, on Serangoon Road’s transformation


Reits seen posting lacklustre Q2 results


Source : Business Times – 18 Jul 2009

REAL estate investment trusts (Reits) are expected to report lacklustre earnings for the second quarter on the back of falling occupancies and rents across their portfolios.

And Reits that have made rights issues – such as CapitaMall Trust, CapitaCommercial Trust and Ascendas Real Estate Investment Trust – will also see year-on-year falls in distribution per unit (DPU) on the back of earnings dilutions.

But not all Reits will be hurt equally. How well a Reit fares depends on its sector, as well its tenant base.

Sector-wise, the consensus among analysts is that hospitality Reits will be hit the hardest.

Kim Eng analyst Anni Kum believes that CDL Hospitality Trusts could see its net property income (NPI) fall. ‘Given the impact of H1N1 and the weak tourist numbers, we can expect a weak Q2 and Q3,’ she said.

The trust, which is a unit of City Developments, saw NPI fall 21 per cent for the quarter ended March 31 on the back of softening tourist, MICE (meetings, incentives, conventions and exhibitions) and business travel arising from the global economic slowdown.

Analysts also reckon that Ascott Residence Trust could see NPI fall on the back of lower rents, although occupancies at its properties have not been affected too badly, as its model is based on longer-term leases.

Office and industrial Reits will not be spared, analysts feel. ‘Amid a rapid deterioration in the economy, the office sector has seen a faster-than-anticipated contraction in occupancy and a greater decline in office rents than previously thought,’ Nomura Research said in a recent report.

DTZ Research reported recently that office rents in Raffles Place fell 19 per cent in Q2, after sinking 25 per cent in Q1.

But many office and industrial landlords here are still charging passing rents that are lower than market rents, which means that new leases could still be signed at higher rates than Reits were charging before. This should cushion a fall in NPI.

However, occupancy rates fell further in Q2. DTZ’s data also showed that office occupancies were hit further, though at a slower rate than in Q1. DTZ said that the island-wide average office occupancy rate eased 0.9 of a percentage point to 92.8 per cent – less than the 1.9 percentage point contraction in Q1.

This is where a Reit’s tenant portfolio can make a difference, said one analyst. Office Reits with just a few leases up for renewal this year will be better off than those that will see a large proportion of their tenants reach the end of their leases. The same applies for industrial Reits.

Retail Reits, in contrast, seem to be better off. While retail sales here have been hit and rents have fallen since the start of the year, vacancy rates in the retail sector remain low. Mall owners have also pointed out that the pace of rental decline slowed in Q2. Data from DTZ, for example, shows that prime first-storey rents in the Orchard/Scotts Road area fell 0.8 per cent in Q2, a slower pace of decline after their 4.8 per cent dip in Q1.

One bright spot in the Reit sector is that trusts that started asset enhancement works during the property boom years could see some pay-off from their investments soon.

Frasers Centrepoint Trust (FCT), for example, started asset enhancement works at Northpoint last year. These are expected to be completed soon, as tenants are now fitting out their premises. Post-completion, FCT’s NPI will be lifted 7 per cent from FY 2010 onwards, DBS Vickers estimates.

Of course, for most Reits, the danger of further asset writedowns remains, as capital values keep falling. A few Reits are due to do their semi-annual valuations in Q2.


Friday, July 17, 2009

Push to certify agents

Source : Straits Times – 17 Jul 2009

THE real estate industry is stepping up the fight to get all the 30,000 or so property agents in Singapore properly trained and certified as soon as possible, in the aftermath of several highly-publicised ‘rogue agent’ cases.

The SAEA, one of the bodies that regulates property agents, is pushing for at least all “active” agents – about half the total number – to take an examination by the end of the year. –PHOTO: ERA REALTY NETWORK

The Singapore Accredited Estate Agencies (SAEA), one of the bodies that regulates property agents, is pushing for at least all ‘active’ agents – about half the total number – to take an examination by the end of the year.

There are two examinations: the Common Examination for Housing Agents (Ceha), which costs about $320, or the lower-level Common Examination for Salespersons (CES), which costs $200. The latter, introduced last year, is the basic exam for agents, while the former is for agents who ‘have ambitions to become agency bosses’, said SAEA’s chief executive Dr Tan Tee Khoon.

As an incentive, SAEA has managed to get the Workforce Development Agency (WDA) to fund part of the course fees for the CES, which amount to about $350. WDA will pay about 80 or 90 per cent of the course fee, said Dr Tan in a press conference on Friday.

But the nine property agencies that are accredited by SAEA – which include big employers such as PropNex, ERA, HSR and Dennis Wee – have said they will try to get at least all their active agents to take the exams. Some, such as HSR, will subsidise the remaining course fees not paid by WDA.

For agents who want to go a step further, SAEA is also tying up with Ngee Ann Polytechnic to introduce a new Certificate in Real Estate Marketing. The six-month course is targeted to start in November this year.

SAEA’s actions come after the Government expressed concern earlier this year about the unethical and ignorant practices of some housing agents in Singapore.

In March, Minister for National Development Mah Bow Tan said the current situation of self-regulation is ‘not tenable’. Each property agency controls their own agents, and there is nothing preventing unaccredited agents from doing business.

The Government has also said it is considering tightening the rules governing property agents, including compulsory licensing of all individual real estate agents.


HDB’s priority: Help those who need subsidised housing the most


Source : Straits Times – 17 Jul 2009

I REFER to the letters by Mr Anthony Koh (’Scrap 2-year wait to buy flat to aid retirees’, July 9) and Mr Patrick Sio (’HDB should review waiting time for ex-owners of private property’, Forum Online, July 10).

New HDB flats are heavily subsidised and the board’s priority is to help those who need such housing the most, such as those who are buying a flat for the first time and families who cannot afford private housing.

Hence, there is a 30-month waiting period for new HDB flats to ensure that former private property owners do not compete with families who have more pressing needs for subsidised public housing.

Generally, those who have sold a private property will have sufficient proceeds to consider various housing options. Those who do not wish to wait can purchase HDB resale flats. There is no 30-month waiting period for those who want to buy resale flats. They can also consider buying a studio apartment, if they meet the age criteria.

We thank the writers for their feedback.

Chan-Wong Jee Choo Lily (Mrs)
Deputy Director (Policy & Property)
for Director (Estate Administration and Property)
Housing and Development Board


Focusing on its core competence


Source : Business Times – 17 Jul 2009

PROPERTY development and investment group Sing Holdings believes in focusing on – but expanding within – its core competence.

Ranked fifth on DP Info’s list of 50 fastest-growing companies, with a CAGR of 312.30 per cent, the company has so far achieved success through its ‘in-depth knowledge of the business, effective management team, discipline and focus on its core competence’ says chief executive Lee Sze Hao.

Although the company is a ‘pure, focused property developer’ it looks into a ‘mix’ of sectors to diversify risk, and into high-yielding properties and projects for growth.

The company’s history underscores this. Sing Holdings was founded in 1964 by Mr Lee’s father, Lee Fee Huang, who is currently chairman. Although it focused initially on residential property, it began to undertake industrial and commercial projects in the 1980s.

Examples of recent projects include the Meyer Residence condominium and the EastGate industrial complex.

In 2006, Sing Holdings was listed on the Singapore Exchange – a testament to its continued success.

After the first quarter of 2009, the value of the company’s assets was $519 million – an increase of $14 million and $370 million from 2007 and 2006 respectively.

Revenue also grew, from $16.8 million in 2006 to $20.7 million in 2008.

Besides being active in different sectors, the company has income streams from various sources.

For instance, it developed the Ocean Towers office complex in Shanghai, which it sold in 2006 for a $48.8 million profit.

Due to the cyclical nature of property development, the company needs ’stable recurring income’ to maintain healthy profits, Mr Lee says.

The company’s BizTech Centre – an office complex with a lettable area of 75,000 sq ft – therefore needs to maintain a ‘high occupancy rate’ to provide constant cash flow.

Such recurring income is especially crucial in today’s recessionary climate. Mr Lee admits that Sing Holdings has had to ‘adapt to the different business environment’ by cutting costs and ‘generating healthy cash flows’.

The company has had to ‘adjust its asking prices’ to keep sales up. Thanks to price cuts, its BelleRive condominium, launched in May 2009, is 85 per cent sold.

Sing Holdings’ ‘flat organisational structure’ has helped the company make such decisions quickly and stay ‘ahead of the curve’. Besides weekly meetings, employees give feedback direct to Mr Lee, fostering effective communications.

Also, several executives have been ‘working as a team for more than 10 years’ at the company. This has ensured ‘a good understanding of management objectives’ and ‘effective execution’ of decisions.

Sing Holdings is preparing for growth as economic sentiment improves. The Laurels, a residential project in Cairnhill Road, is in the planning stage and expected to be launched late this year or early next.

‘The company is ready to expand its business and is cautiously exploring new land acquisition opportunities,’ Mr Lee says.


Horizon brightens for property groups


Source : Business Times – 17 Jul 2009

THE outlook is more sanguine, as listed property developers get ready to announce their financial results for the six months ended June 30. The strong pick-up in private home sales in the past five months – and a nascent recovery in prices – is providing cheer, contrasting with the gloom that lasted until the early part of 2009 after the financial meltdown.

JP Morgan analyst Christopher Gee is tracking ‘if developers’ own outlooks and strategies have changed as a result of the upturn in home sales and general economic prospects’.

Against a brighter horizon, some concerns prevalent among property analysts six months ago have lessened. The pressure on developers to write down the values of their Singapore residential sites has abated. So too has the risk of buyers who bought on deferred payment schemes (DPS) not completing their purchases.

‘The secondary market is getting more active, so it should be easier for DPS buyers to sell their properties before the projects receive Temporary Occupation Permit,’ says DMG & Partners Securities analyst Brandon Lee.

Macquarie Securities research head Soong Tuck Yin says an interesting development to watch out for is an amendment to Financial Reporting Standard FRS 40 requiring that investment properties under construction be valued, and the increase or decrease be taken to the income statement.

The change took effect at the start of this year, and with many major listed companies doing valuations at half-year and full-year, there could be bottomline implications for the likes of CapitaLand for its ION Orchard mall and Vista Xchange at one-north for instance; and Keppel Land for its Ocean Financial Centre and Marina Bay Financial Centre projects, Mr Soong suggests.

Before the rule change, these companies were required to state only their completed investment properties at fair value. KPMG Singapore’s head of real estate Yap Chee Meng explains: ‘In the past, investment properties under construction were carried at cost unless there was impairment. Financial Reporting Standards now require these to be fair-valued where the fair-value model is used for investment properties, and where the fair value can be reliably determined.

‘For Singapore, this was effective from Jan 1, 2009. I would expect property companies to start reflecting it in their income statements from this current reporting season (the quarter ended June 30), as property companies normally revalue their investment properties once or twice a year.’

Analysts say City Developments’ bottom line is unlikely to be affected by the change to FRS 40 as it currently accounts for all its investment properties using the cost model.

For other listed developers that use the fair-value model, there is also the issue of how aggressively they will write down valuations of completed investment properties, particularly office blocks. ‘Asset write-downs, especially for commercial assets, have not materialised in a meaningful way,’ says CIMB-GK analyst Donald Chua. ‘With rents and occupancies falling, it will be interesting to see if property groups devalue their assets more aggressively this reporting season.’

Mr Gee, however, notes that the policy of stating investment properties, completed or otherwise, at fair value affects a developer’s accounting bottomline – but does not have any real cashflow impact.

As for profit from residential projects, Mr Soong says that strong home sales by developers lately will translate into profits to be recognised, although for projects in the initial stage of construction, earnings may be booked only in the current second half or next year.

CIMB-GK’s Mr Chua expects developers’ latest report cards to show declines in gearing ratios. Some of the bigger boys have recapitalised through rights issues, he says. Smaller players should also be able to use proceeds from strong home sales recently to pare debt.

A key thing to monitor in H2 is whether residential sales momentum continues. Mr Chua is keeping tabs on ‘prices and take-up rates at the high end and the level of foreign demand, especially as we draw closer to the opening dates of the integrated resorts’. ‘It may be interesting to see if projects on Sentosa Cove are released closer to the end of the year.’

Home buyers defaulting on purchases or returning options issued on high-end projects sold in the past month will also be on his watch-list.

DMG’s Mr Lee expects developers to launch more mid and prime sector projects in H2 and to start buying residential sites again, ‘especially those with drying land banks’.

JP Morgan’s Mr Gee said stockmarket investors are looking out for sustained increases in physical property prices and upgrades in revalued net asset values for listed property groups.


Collective sales to trickle back into market, says Credo


Source : Business Times – 17 Jul 2009

PROPERTY consultancy firm Credo Real Estate expects collective sales to resurface this year or next, but not with the same intensity as in the boom years of 2006 and 2007.

Some 5-10 collective sales may happen this year, said Credo’s managing director Karamjit Singh. But they will probably involve small to mid-sized sites, as these tend to reach the market faster, he added.

This week, 72-unit Dragon Mansion became the first property launched for collective sale this year. There were more than 100 such transactions in 2007.

The outlook for 2010 is brighter, when some 30-40 estates may be sold en bloc, said Mr Singh. A collective sale is financially feasible when the land value exceeds the total value of individual units in the open market. Right now, this situation has yet to occur for most estates, he explained.

But even when the collective sale market picks up, it is unlikely to rebound to earlier levels. Owners may also have to trim their price expectations 20-25 per cent from peak levels, according to Mr Singh.

Owners may start asking for more if recovery in the property market accelerates, he said. Since February, private home sales have been buoyant, leading to greater optimism in the industry. Developers sold 1,825 new units in June – more than double the number sold a year ago.

As more stock is cleared, developers will want to replenish their land banks and that will drive collective sales, said Mr Singh. According to him, small developers in particular have started looking for smaller sites.

Calmer markets today are less likely to create contention in collective sales, much of which arose because of steep increases in land values, he said.

But new challenges have emerged. For instance, new legislation governing such deals may make it costlier and more time-consuming for estates to reach the market. Also, fewer owners may volunteer to join sale committees now that the law has spelt out their responsibilities clearly.


Frasers launches new service residence brand


Source : Business Times – 17 Jul 2009

FRASERS Hospitality yesterday launched Modena – a new line of service residences which cater to a budget-conscious and highly mobile group of business travellers.

Room rates at Modena will be around 20 per cent lower than those at properties under the existing Fraser brands. Some 1,000 apartments across five Modena properties will come on-stream in the next three years.

The launch is timely ‘because companies are really looking at cost-cutting measures’ and Modena will be ‘a lot more palatable’ for them, said Frasers Hospitality CEO Choe Peng Sum, who was in Tianjin, China yesterday to launch the brand. He heads the hospitality arm of Frasers Centrepoint, which is part of local conglomerate Fraser and Neave.

Apartments at Modena will be smaller than those under the Fraser brands. But Modena properties will have various facilities catering to ‘road warriors’ on the go, such as lobbies supplied with food and groceries, and 24-hour play rooms with gymnasiums and electronic game machines.

The first Modena property, with 272 units, will open its doors in Tianjin towards the end of this year or early next year. The second will be in Shanghai and another two will be in Suzhou. Frasers Hospitality will run them through management contracts.

The fifth Modena property – and also the flagship – will be ready in Singapore’s Changi Business Park in Q1 2012. Frasers Hospitality will own and manage the 300-unit Modena Singapore, which is under construction at a cost of $124 million.

Guests could come from the business park, Singapore Expo and the fourth university which is under development at Changi.

Modena Singapore will be part of a 4.7 ha integrated business and lifestyle development – a $500 million joint venture between Frasers Centrepoint and Ascendas.

The economic downturn has not curbed Frasers Hospitality’s ambitions for Modena. Negotiations are underway to expand the brand in Asia and Europe, and countries that it is interested in include India, France, the UK and Qatar.

Frasers Hospitality has also set itself a target of managing around 8,000 service apartments by 2010 and perhaps 10,000 apartments by 2012.

‘In this economic downturn, we have a very contrarian view – we see this as an opportunity for step-up,’ said Mr Choe. Modena for instance, may appeal to companies tightening their budgets, he explained.

Nonetheless, the picture for the service residences industry is not all rosy. In China and Singapore for instance, the economic downturn has pushed rates at Frasers Hospitality’s apartments down by 15-20 per cent. Occupancy rates have remained relatively stable, in the 80-90 per cent range.

Frasers Hospitality has also shelved plans to set up a real estate investment trust for ‘a few years’ until the ‘market is a lot more conducive’, Mr Choe said. For similar reasons, it has postponed plans to set up private equity funds to invest in service residences.


CDL launching Balmoral Rd condo project


Source : Business Times – 17 Jul 2009

AFTER holding on to its Garden Hotel property at Balmoral Road for 10 years, City Developments Ltd (CDL) is finally launching an 85-unit condo project on the site.

A preview for staff and directors began yesterday, while sales to invited guests are slated to begin today.

The average price of the 12-storey freehold condo Volari@Balmoral is understood to be about $2,000 per square foot (psf) for early birds. Market watchers say this is about 20-25 per cent below peak 2007 prices in the location.

The condo comprises two, three and four-bedroom units and penthouses. The two-bedders are about 1,325 sq ft, and based on the $2,000 psf average price, the lump sum investment would be about $2.7 million.

At Bedok Reservoir, Far East Organization and Frasers Centrepoint are expected to preview Waterfront Key today to staff, business associates and buyers who have registered interest.

Waterfront Key is a 99-year-leasehold condo with 437 units. Prices had not been finalised by last night, but market watchers reckon the cue will be taken from current pricing for the developers’ Waterfront Waves next door, which they are selling at $680-$700 psf on average.

The 405-unit condo, released early last year, is 78 per cent sold.

Back at Balmoral Road, it has been a decade-long wait for CDL, which bought Garden Hotel in June 1999 for $108 million from Kechapi Pte Ltd, controlled by the Chua family that once controlled Cycle & Carriage – now known as Jardine Cycle & Carriage. Garden Hotel comprises two four-storey wings. The original building was built in the early 1970s and the other wing was completed in 1983. The show suite for the Volari condo that CDL will develop on the site is on the fifth-floor rooftop of Garden Hotel, which is still operating but is likely to shut later this year.

Garden Hotel has a site area of 102,200 sq ft.


ERA issues final warning to agents who pull commission ruse


Source : Channel NewsAsia – 17 Jul 2009

For every property deal they close, their agencies would take a cut of their commission, and how much would depend on the productivity and seniority of the real estate agent. But some agents are getting around this commission system — prompting one agency to issue a “final warning” to all its agents on Tuesday.

In an email, ERA said it had discovered that some agents under a “80/20 scheme” — where one has to give a 20-per-cent cut of the commission to the company — have been submitting their transactions under the names of more experienced colleagues who come under a “90/10” scheme.

This lets them keep a bigger share of the money and, according to some housing agents Today spoke to, the senior agent is likely to pocket a cut from his colleague for the help.

Apart from how this “creates unfair competition among associates”, ERA said in the email, it amounts to cheating — and “if caught, the company will not hesitate to terminate” the culprits.

“More importantly, there is the more serious legal implications involved should the transaction go awry,” ERA noted. Both agents involved could face legal action from their clients and, in the case of an HDB transaction, the Housing and Development Board. They would also be liable to indemnify the affected parties.

ERA agents Today contacted were reluctant to discuss the email, but Mr Jeff Foo, president of the Institute of Estate Agents, noted that such a practice was “prevalent” and happened in other agencies too.

In every property sale, he said: “There are a lot of pre-qualifications that agents have to check. If this agent fails to check and if the other agent lends his name to make a quick buck, not only will the agents get involved, the consumer will suffer.”

But the buyer and seller can rest assured that if the papers are in order, the deal can still go through even if the agents in cahoots are exposed.

Punishing the agents responsible would not help because they can always join another agency and carry out the unfair practice, Mr Foo added.


Cove Developments gets court order to clear illegal partitions in 171 Grangeford units


Source : Channel NewsAsia – 17 Jul 2009

Cove Development, which owns the GrangeFord condominium, has obtained a court order to reclaim some 171 apartments in the condominium.

Cove has given tenants in these units till July 22 to vacate the apartments.

This is to allow demolition works to be carried out on illegal partitions in the units.

Grangeford made headlines last month when property leasing firm Ideal Accommodation, which had been contracted to lease out the condominium, illegally converted some 141 units into 600 rooms.

Cove said it has only managed to take possession of 14 affected apartments so far, as some residents have resisted moving out.

The firm also said it will be updating authorities on the legal proceedings as well as the situation leading up to the July 27 deadline set for tearing down all the unauthorised partitions.


Tampines 1 mall has attracted over 6m people since it opened


July 17, 2009

The Tampines 1 mall has attracted over six million visitors since it opened its doors about three months ago, according to property manager Asiamalls.

The latest mall addition to the Tampines central area celebrates its official opening on Friday, which also marks its 100th day of business.

The S$450 million mall is situated beside the Tampines MRT station.

It has 173 tenants including Uniqlo, the Japanese retailer’s first outlet in Singapore.

Other tenants include IT shop Challenger and Topshop.

Tampines 1 joins two other malls – Tampines Mall and Century Square – in that area.

Plans underway to ensure property agents have proper accreditation by year-end

Source : Channel NewsAsia – 17 Jul 2009

Plans are underway to ensure that all property agents in Singapore have proper accreditation by the end of this year.

According to the Singapore Accredited Estate Agencies (SAEA), it is working with the Workforce Development Agency (WDA) to equip more agents with a formal certification.

Out of 30,000 property agents in Singapore, only about 6,000 have sat for exams.

The SAEA plans to introduce an entry-level certification for property agents called the Common Examination for Salespersons.

Under the plan, WDA will subsidise 80 to 90 percent of the course fee until the end of the year.

According to the SAEA, the move is in response to the increasing number of consumer complaints against property agents.

Tan Tee Khoon, CEO, Singapore Accredited Estate Agencies, said: “It calls for the industry to re-look the accreditation of agents. At one time maybe they felt that there was no need for it, because the public is well informed, they know what they are doing and therefore they can fend for themselves.

“But in reality, if we look at the number of scams that have taken place, the consumers need some form of protection. They need to be aware and they need to know that there is an accreditation body that they can deal with. And they also need to know that dealing with accredited agents gives them a sense of security.”

But Dr Tan admitted that without laws in place, the body does not have the power to penalise agents if they still do not want to get accredited.

He said that SAEA is pushing for such laws to be implemented, following the government’s decision earlier this year to undertake a review of the real estate industry, including agent qualifications and training standards.

For agents who want to go further than getting basic accreditation, SAEA has teamed up with Ngee Ann Polytechnic to offer a diploma course in Real Estate Marketing.

The course will begin in the fourth quarter of the year and SAEA is seeking funding support from the government to subsidise the fees.

Consumers can now file complaints against property agents via email, and once their complaint is received, they will be assigned a duty officer, who will take charge of the case and whom they can contact for queries and updates.

The SAEA is a body representing the major property agencies in Singapore.


New hotel with luxury shopping outlets to replace former Crown Prince Hotel


Source : Channel NewsAsia – 17 Jul 2009

A new five-star hotel with luxury shopping outlets will soon replace the former Crown Prince Hotel along Orchard Road.

Set to open next year, the Grand Park Orchard Hotel and the Knightsbridge retail space linked to it will add to the buzz along the rejuvenated shopping district.

Its retail space will almost double to about 83,000 square feet.

It is part of Park Hotel Group’s plan – which was conceived in 2005 when it first bought the property – for a flagship property in its portfolio.

Allen Law, director, Park Hotel Group, said: “When we evaluate the concept of our mall, we look at our hotel portion as well. We are targeting this property to be our flagship property in our portfolio. We want to have some statement as of how our hotel group can transform an…old hotel into something totally new…So, first of all, that is our consideration.

“And, looking at the retail podium, we want to embark on a concept that is not so conventional in the Singapore context yet. But we do see this concept in places like Hong Kong, Japan, and even London. So, we have a concept that captures all the flagship brands and it is a collection of street front flagship stores…”

Knightsbridge tenants will have a double-storey facade facing Orchard Road.

About 50 per cent of space has been leased out, mainly to fashion brands.

Park Hotel Group said demand is strong despite the poor economic environment, but other challenges persist.

Mr Law said: “In terms of the economic outlook, it does affect the timeline in terms of the decision-making process. Our project has no difficulty in garnering interests from all these international branches.

“However due to their, maybe difficulties in other operations in different parts of the world, it may affect their decision-making in opening a store in Singapore. They are more careful in the sense that they look at their overall portfolio, and have to take a little bit more time…to make the commitment.”

The Knightsbridge stretch of retail outlets will link to the new Grand Park Orchard Hotel. Park Hotel Group is revamping the entire look of the building, noting that the original is almost 20 years old. It added that it sees a lack of rooms along Orchard Road, and expects strong demand when it opens for business.


Have train, will reside


Source : Straits Times – 17 Jul 2009

Looking for flats with high resale value and rental potential? Check out these key considerations.

It doesn’t matter if you’re black or white. And it doesn’t matter if you reside in Neverland or Disneyland. (You probably won’t need to worry about property/financial issues if you own just a fraction of said places; but that’s another story.) As long as you’re based in Singapore, you should instead be asking this question when it comes to acquiring a house: is your dream abode located close to an MRT?

• The reason for this is because there is generally a greater demand for homes near MRTs & LRTs. These apartments can respectively cost five and 20 per cent more than those that are 15 minutes’ walk away.

• The price also goes up by another 5 per cent if the flat is located near interchange MRT stations that serve more than one line, such as Bishan MRT that serve the North-South and North-East directions (via the Circle Line). Units at the estate usually command the biggest premium as residents are paying more for the convenience, accessibility and shorter travelling time.

• In addition, when it comes to selling these units when the property market is soft, they will fetch a higher price as compared to those situated in outlying areas. The same applies to the rental market. A good location means that the value of the place will hold better in the long run.

But on the other hand, there are others who feel that such premiums are overrated.

• While some believe that living near an LRT is akin to living near a feeder bus stop and that as more stations are built; there could be a downward effect that balances out the premium and not all home-seekers will be keen to pay the extra sum after all.

• And for those who value quality of life, the construction of an MRT station – with dust, noise, detours and all – could take a few good years to complete. These people may not view the pot of gold at the end of the rainbow as an incentive if they have to face numerous storms prior.

It all boils down to what you value in a property.

The MRT aside, there are also other factors one should consider before putting down that deposit for a flat:

• Choose a higher floor. They are easier to sell because it’s windier and usually has a better view.

• Avoid the afternoon sun. No matter what they say about how certain glass can reflect heat, the heat will still get into the flat.

• Look out for amenities nearby, such as markets, shops and schools.

• Choose a flat near the city or in a more matured estate. The premium for a location near Ang Mo Kio or Toa Payoh could outset one that’s near an MRT but in a far-flung area such as Boon Lay.

Use these points as a guide when you embark on your home search trail and may you locate your very own Neverland or Disneyland right here in Singapore.


Plans underway to ensure property agents have proper accreditation by year-end


Source : Channel NewsAsia – 17 Jul 2009

Plans are underway to ensure that all property agents in Singapore have proper accreditation by the end of this year.

According to the Singapore Accredited Estate Agencies (SAEA), it is working with the Workforce Development Agency (WDA) to equip more agents with a formal certification.

Out of 30,000 property agents in Singapore, only about 6,000 have sat for exams.

The SAEA plans to introduce an entry-level certification for property agents called the Common Examination for Salespersons.

Under the plan, WDA will subsidise 80 to 90 percent of the course fee until the end of the year.

According to the SAEA, the move is in response to the increasing number of consumer complaints against property agents.

Tan Tee Khoon, CEO, Singapore Accredited Estate Agencies, said: “It calls for the industry to re-look the accreditation of agents. At one time maybe they felt that there was no need for it, because the public is well informed, they know what they are doing and therefore they can fend for themselves.

“But in reality, if we look at the number of scams that have taken place, the consumers need some form of protection. They need to be aware and they need to know that there is an accreditation body that they can deal with. And they also need to know that dealing with accredited agents gives them a sense of security.”

But Dr Tan admitted that without laws in place, the body does not have the power to penalise agents if they still do not want to get accredited.

He said that SAEA is pushing for such laws to be implemented, following the government’s decision earlier this year to undertake a review of the real estate industry, including agent qualifications and training standards.

For agents who want to go further than getting basic accreditation, SAEA has teamed up with Ngee Ann Polytechnic to offer a diploma course in Real Estate Marketing.

The course will begin in the fourth quarter of the year and SAEA is seeking funding support from the government to subsidise the fees.

Consumers can now file complaints against property agents via email, and once their complaint is received, they will be assigned a duty officer, who will take charge of the case and whom they can contact for queries and updates.

The SAEA is a body representing the major property agencies in Singapore.


New hotel with luxury shopping outlets to replace former Crown Prince Hotel


Source : Channel NewsAsia – 17 Jul 2009

A new five-star hotel with luxury shopping outlets will soon replace the former Crown Prince Hotel along Orchard Road.

Set to open next year, the Grand Park Orchard Hotel and the Knightsbridge retail space linked to it will add to the buzz along the rejuvenated shopping district.

Its retail space will almost double to about 83,000 square feet.

It is part of Park Hotel Group’s plan – which was conceived in 2005 when it first bought the property – for a flagship property in its portfolio.

Allen Law, director, Park Hotel Group, said: “When we evaluate the concept of our mall, we look at our hotel portion as well. We are targeting this property to be our flagship property in our portfolio. We want to have some statement as of how our hotel group can transform an…old hotel into something totally new…So, first of all, that is our consideration.

“And, looking at the retail podium, we want to embark on a concept that is not so conventional in the Singapore context yet. But we do see this concept in places like Hong Kong, Japan, and even London. So, we have a concept that captures all the flagship brands and it is a collection of street front flagship stores…”

Knightsbridge tenants will have a double-storey facade facing Orchard Road.

About 50 per cent of space has been leased out, mainly to fashion brands.

Park Hotel Group said demand is strong despite the poor economic environment, but other challenges persist.

Mr Law said: “In terms of the economic outlook, it does affect the timeline in terms of the decision-making process. Our project has no difficulty in garnering interests from all these international branches.

“However due to their, maybe difficulties in other operations in different parts of the world, it may affect their decision-making in opening a store in Singapore. They are more careful in the sense that they look at their overall portfolio, and have to take a little bit more time…to make the commitment.”

The Knightsbridge stretch of retail outlets will link to the new Grand Park Orchard Hotel. Park Hotel Group is revamping the entire look of the building, noting that the original is almost 20 years old. It added that it sees a lack of rooms along Orchard Road, and expects strong demand when it opens for business.


Thursday, July 16, 2009

Record private home sales

Source : Straits Times – 16 Jul 2009

1,825 sold in June even higher than during peak of the boom in Aug 2007

IT WAS another electrifying month for the private home market, with sales last month surpassing even levels seen at the height of the boom two years ago.

The recession-defying numbers for yet another month point to surging confidence among buyers and sellers, and signal that the worst is likely over.

– PHOTO: ALLGREEN

Developers sold 1,825 units last month, up from the 1,673 moved in May and almost 100 more than the number shifted in August 2007, the peak of the boom.

Even more remarkable, the April to June sales of 4,714 units surpassed the total of 4,264 new private flats sold last year, said CB Richard Ellis.

It felt like the good old days were back for developers last month, with 1,637 units launched, 475 more than in May, Urban Redevelopment Authority data showed yesterday.

That was the second highest number of launches since August 2007.

Values are also responding to the heightened activity, with median prices at some projects last month higher than in May.

Property consultants cite the continued strong demand since February and June’s record sales to tip that the worst appears to be over. Some also expect a price recovery soon.

Colliers International’s Tay Huey Ying reckons that last month’s record number of primary home sales was driven by pent-up demand from both owner-occupiers and investors. This was helped by prices that remained largely at a discount from peak prices, even if they may have strengthened recently.

Knight Frank chairman Tan Tiong Cheng said the market had been shell-shocked for a period and sales fell off a cliff last year, but the perception now is that the worst is over.

‘Although it may still take a while for the economy to find its feet, as the Government has suggested, buyers are now prepared to make a decision,’ he said.

‘They feel that this is a window to buy. Interest rates are at the lowest ever, and there is a good selection of condos out there. Things are not getting better, but they are not getting worse.’

CBRE Research executive director Li Hiaw Ho added: ‘While 2007 was the climax of the bull-run in terms of sales volume, 2009 likely represents the turning point at the trough of the market.’

If the buying momentum is sustained and the economy strengthens gradually, the take-up for the whole year could reach up to 14,000 units, higher than the 2006 level of 11,147 units, he said. Sales in 2007 were a record 14,811 units.

The sales drive could also send prices up from a low in the second half of the year, added Mr Li.

City-fringe homes were the most popular last month, with 867 sold, including the 330-unit 8@Woodleigh in Woodleigh Close, which sold out at a median price of $804 per sq ft. The only sell-out project in June, its small, affordable units were a key attraction, experts said.

Large units are generally moving slower than the small ones, they said, due to the higher quantum price.

The return of interest in high-end deals priced above $2,000 psf was also noted last month, said CBRE Research.

A unit in the Ritz-Carlton Residences went for $3,404 psf, while one in The Orchard Residences was sold for $3,299 psf.

These made up the 23 high-end deals last month, up from 15 in May. That is still a very small number, but ‘a sign that there are high net worth individuals out there who are prepared to buy investment-grade properties despite uncertainties in the economy’, said Mr Li.

Jones Lang LaSalle said it was starting to see a return of interest from foreigners seeking opportunistic buys.

The narrower price gap is a major factor behind the bullish sentiment, especially among HDB upgraders, said Dr Chua Yang Liang, the firm’s head of research for South-east Asia and Singapore.

Its number-crunching shows that the price gap between non-prime residential projects and HDB resale flats are now similar to 2004.

‘As long as this gap remains tight, this stream of HDB upgraders into the private residential market is likely to continue,’ he said.

Nevertheless, these buyers are very price-sensitive. ‘There is some upward price movement, but there is no shortage of supply,’ said one expert.

DTZ’s head of South-east Asia research, Ms Chua Chor Hoon, added: ‘As the economy has not recovered, and many have taken pay cuts or were retrenched, demand, especially in the mass-market segment, is likely to be sensitive to price increases.’


Good Class Bungalows: In a class of their own

Source : Business Times – 16 Jul 2009

Some 1,000 Singaporeans are said to own the majority of Good Class Bungalows here

VERY few people live in landed homes in Singapore and even fewer live in Good Class Bungalows (GCBs), which probably explains why they are so desirable. There are about one million or so homes here. These comprise terrace houses, semi-detached houses, bungalows and of course high-rise homes – condominiums, apartments and public housing flats.

Exclusive: While it is not inconceivable that there could be more GCB areas added in the future, given the need to intensify land use in Singapore, the likelihood is slim

But GCBs stand quite far apart from all of these in that they not only have to sit on land that is of a certain size – not less than 1,400 square metres – but also have to be located in areas that have been specially designated for them. Indeed, there are estimated to be less than 2,500 GCBs in Singapore.

GCB areas were officially gazetted in 1980 with 39 areas formally safeguarded. A spokesman for the Urban Redevelopment Authority (URA) explained that the purpose of the gazette was to ‘protect the high environmental quality of these established large bungalow areas from the intrusion of more intensive forms of housing such as semi-detached or terrace houses’.

Walk or drive around these GCB areas and often you will notice not only stately houses but stately trees as well with many protected for posterity. There are two zones in Singapore under the National Parks Board’s Tree Conservation Areas with the main zone covering central Singapore where most of the GCBs are located.

To control development in these areas, URA set certain guidelines for planning purposes. For instance, the minimum plot size for any newly created bungalow within the 39 GCB areas must be at least 1,400 sq m. For this reason, a GCB plot cannot be developed to accommodate more intensive forms of housing. And unless it is at least 2,800 sq m in size, it cannot be sub-divided into two GCB plots either.

Of the GCB areas, the best known are the Nassim, Cluny, Bishopsgate and White House Park estates. While it is not inconceivable that there could be more GCB areas added in the future, given the need to intensify land use in Singapore, the likelihood is slim.

URA’s spokesman said: ‘In drawing up our land use plans for Singapore, we aim to provide a variety of housing options for Singaporeans, from waterfront housing to garden living to city living. This includes low-density and landed housing, such as those found within existing GCB areas. The detailed housing form for future landed housing areas will be determined when the area is ready to be developed.’

URA said that there are currently no plans to release new sites or designate new areas as GCB areas. ‘Nevertheless, there is scope for the number of GCB plots within existing GCB areas to increase, for example through sub-division of larger GCB plots into several GCB plots, so long as each bungalow plot meets the minimum land size of 1,400 sq m,’ URA added.

Big GCB plots do not come by often. In 1994, a plum site in the Tanglin GCB area came up for sale by public tender. The 194,000 sq ft parcel was the official residence of the Australian high commissioner at White House Park/Dalvey Road. Property valuers had estimated that the site could fetch as much as $70 million, or around $400 per square foot (psf). The site eventually sold for $98 million or $505 psf.

In 1997, developer Wharf Group sold five units of the 11-unit development of GCBs at an average of $14.1 million each. Ten years later, in 2007, a house in this development sold for $28.8 million. There have been other public tenders of large sites.

In 2000, Hongkong and Shanghai Banking Corporation (HSBC) sold a 201,782 sq ft freehold bungalow site it owned since the 1960s in Jervois Road for $60 million, or slightly over $330 psf. Then in 2003, HSBC sold a 276,112 sq ft site at Bishopsgate for $69.8 million. Together, all three sites would have yielded less than 40 new GCBs.

Occasionally, individual GCB sites will come up for auction. In 2008, the Singapore Land Authority auctioned a site at Ridout Road which saw 34 bids lodged by three prospective buyers. The winning bid came in at $8.96 million or $579.55 psf. This was 22.6 per cent above the opening bid of $7.31 million or $473 psf. Being fresh government land sale sites, however, it came with a 99-year lease.

SLA also said that recently, three parcels of land have been sold under the Sale of Infill Sites programme on 99-year leases. ‘The owners have to comply with URA’s GCB guidelines as the land parcels are within GCB areas,’ it added.

Because the environment is an important factor in GCB areas, there are guidelines that control how big the house can be. For instance, the house cannot cover more than 35 per cent of the site. This is to ensure that there are adequate green buffers between each house.

There are also more prosaic restraints – childcare centres are not allowed in GCB areas for instance. But perhaps the most important constraint on GCB ownership to note is that foreigners are not allowed to own these, thus reducing the buying pool of GCBs.

Some 1,000 Singaporeans are said to own the majority of GCBs here and are mostly intent on holding on to them as long-term investments. If you have bought one through the open market, you can count yourself lucky indeed.