PRICES of private residential properties have crossed the peak reached in 1996 in the second quarter, according to flash estimates by the Urban Redevelopment Authority (URA).
The private-residential-property price index, based on URA estimates, rose from 175.0 points in Q1 to 184.1 points in Q2.
While this increase of 5.2 per cent is lower compared with the 5.6 per cent rise in the previous quarter, the preliminary estimate of the Q2 residential price index, at 184.1 points, is higher than the market peak of 181.4 points back in Q2 1996, said Mr Joseph Tan, executive director (residential) at CB Richard Ellis.
Prices rose the most, by 5.7 per cent in the quarter, among non-landed private residential properties in the Outside Central Region.
“This could be attributed to the price points set by new launches such as Tree House and The Minton, as well as rising prices of resale transactions in locations where several sites from the government land sales (GLS) programme had been sold in the past six to nine months,” said Mr Tan.
It was reported last month in The Business Times that May’s top seller was The Minton in Hougang, with 204 units sold at a median price of $849 psf. Tree House in Chestnut Avenue was one of April’s top sellers, at a median price of $835 psf.
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Successful tenders for three residential GLS sites awarded in May were bullish. For example, Keppel Land (Mayfair), the developer which won the site located in Boon Lay Way/Lakeside Drive, bid $499 psf per plot ratio, which could translate into a break-even price of $800-$850 psf, said Ngee Ann Polytechnic real-estate lecturer Nicholas Mak. That would outprice other condominiums in the same vicinity by as much as 40 per cent.
In the Core Central Region (CCR), properties in the same category rose by 5.1 per cent and, in the Rest of Central Region (RCR), by 4.5 per cent.
Back in Q1 2010, it was the price index for the RCR which showed the highest increase of 7.2 per cent, followed by 4.5 per cent in the CCR and 3.9 per cent in the OCR, noted Mr Tan.
Mr Mak expects that home prices will rise at a slower pace this year, at a year-on-year rate of 12 to 18 per cent.
“By the fourth quarter of 2010, the overall price level in the high-end CCR may finally surpass the peak price level that was last seen in Q1 2008,” he said.
In the long term, ample supply of residential land by the Government through its land sales programme will ensure a more stable supply, said Mr Tan.
“As sales momentum becomes less frenzied, home prices will stabilise,” he said. Earlier this year, to discourage short-term speculative investment in property, the Government imposed a 1 per cent to 3 per cent tax on residential properties sold within one year of purchase and lowered the loan-to-value limit on private housing loans to 80 per cent, from 90 per cent.
It also said it would release more residential-development sites, as well as build more Housing Board flats, to meet demand and curb rising prices.
The property peak of 1996 had been fomenting in 1994 and 1995, when home prices raced ahead of gross domestic product growth. However, the Government’s anti-speculative measures and the Asian financial crisis reversed the rise in prices.
Source : my paper – 2 Jul 2010
Friday, July 2, 2010
Guthrie sells Amoy properties for S$24.5m
Guthrie GTS has sold its properties at 112 to 116 Amoy Street to Sun Venture Invesco for S$24.5 million.
The sale price was negotiated on a willing-buyer and willing-seller basis after taking into account current market conditions.
Guthrie expects to record a net surplus of S$1.85 million from the sale of the properties.
Guthrie said the Amoy Properties are not its core assets and the transaction will allow the Company to realise and unlock the value of the Amoy Properties.
Guthrie added that it intends to use the sale proceeds for working capital purposes and to fund any future capital investment that the Group may require.
Source : Channel NewsAsia – 2 Jul 2010
The sale price was negotiated on a willing-buyer and willing-seller basis after taking into account current market conditions.
Guthrie expects to record a net surplus of S$1.85 million from the sale of the properties.
Guthrie said the Amoy Properties are not its core assets and the transaction will allow the Company to realise and unlock the value of the Amoy Properties.
Guthrie added that it intends to use the sale proceeds for working capital purposes and to fund any future capital investment that the Group may require.
Source : Channel NewsAsia – 2 Jul 2010
Investors turning to commerical properties over residences in Asia: analysts
Observers say Korean pension funds have been aggressively investing in commercial real estate in Asia.
According to Woori Investment & Securities, the Korean National Pension fund has put nearly US$3 billion into real estate in the past six to nine months alone.
And it appears investors are favouring commercial properties over residential ones to get better returns.
Private home prices have enjoyed a good run-up in recent months in Asia.
For example, cost of private residential properties hit a record high in Singapore in the second quarter, rising by an estimated 5.2 per cent.
But investors and asset managers are expecting home prices to moderate across the region.
So, they are turing their attention to commercial properties instead.
Woori Investment & Securities, part of South Korea’s Woori Financial Group, has seen a growing outflow of Korean money seeking such opportunities.
Derek Wong, director, Real Estate Investment & Finance, Woori Investment & Securities, says: “We’re looking favourably at the commercial sector, mainly the office building and retail sector. As a whole maybe we are looking at a range of six to eight per cent minimum for a very safe country but if it’s a high risk country then we need to add in that spread.”
Despite concerns of a supply glut in the office segment in Singapore, Henderson Global Investors says the new buildings under construction in the city have already received 80-90 per cent commitment from tenants.
Hong Kong’s supply picture is also tightening as businesses add to their headcount.
Frankie Lee, head of Property Equities, Asia, Henderson Global Investors, says: “We only conservatively assume a 25 per cent increase in rents in both Singapore and HK this year and given the type of rent increase in the first half this will prove to be quite conservative. I think now we can safely say that 25 per cent this year in these two places for 2010 and perhaps another 15 per cent for 2011 is quite achievable.”
In view of this, Henderson recommends stocks such as Hong Kong Land and Keppel Land to take advantage of the uptick in rents.
It also looks on Industrial Real Estate Investment Trusts favourably, given Singapore’s strong economic growth.
Source : Channel NewsAsia – 2 Jul 2010
According to Woori Investment & Securities, the Korean National Pension fund has put nearly US$3 billion into real estate in the past six to nine months alone.
And it appears investors are favouring commercial properties over residential ones to get better returns.
Private home prices have enjoyed a good run-up in recent months in Asia.
For example, cost of private residential properties hit a record high in Singapore in the second quarter, rising by an estimated 5.2 per cent.
But investors and asset managers are expecting home prices to moderate across the region.
So, they are turing their attention to commercial properties instead.
Woori Investment & Securities, part of South Korea’s Woori Financial Group, has seen a growing outflow of Korean money seeking such opportunities.
Derek Wong, director, Real Estate Investment & Finance, Woori Investment & Securities, says: “We’re looking favourably at the commercial sector, mainly the office building and retail sector. As a whole maybe we are looking at a range of six to eight per cent minimum for a very safe country but if it’s a high risk country then we need to add in that spread.”
Despite concerns of a supply glut in the office segment in Singapore, Henderson Global Investors says the new buildings under construction in the city have already received 80-90 per cent commitment from tenants.
Hong Kong’s supply picture is also tightening as businesses add to their headcount.
Frankie Lee, head of Property Equities, Asia, Henderson Global Investors, says: “We only conservatively assume a 25 per cent increase in rents in both Singapore and HK this year and given the type of rent increase in the first half this will prove to be quite conservative. I think now we can safely say that 25 per cent this year in these two places for 2010 and perhaps another 15 per cent for 2011 is quite achievable.”
In view of this, Henderson recommends stocks such as Hong Kong Land and Keppel Land to take advantage of the uptick in rents.
It also looks on Industrial Real Estate Investment Trusts favourably, given Singapore’s strong economic growth.
Source : Channel NewsAsia – 2 Jul 2010
New 3G service will allow virtual tour of properties
Imagine viewing a showflat without actually being there. Well, a new 3G video application will let you do just that on your mobile phone.
Software company Oasis Systems is launching the world’s first mobile service for the real estate industry.
The application will debut in Australia in less than three months and could be made available in Singapore.
Take a “walk” around the living room, or visit other parts of the house. The new interactive dial-in software will allow home hunters to tour properties virtually.
Jeff Wise, vice president, Business Development, Oasis Systems, said: “We believe there is a lot of potential in interactive video, and so (we’re) providing interactive video for a market that is very much visual, a very emotive market – the real estate business.
Oasis Systems said companies like Youtube and Skype are also creating new software for smartphones to tap the growing 3G mobile market.
Research firm Frost and Sullivan said there are 3.4 million 3G mobile subscribers in Singapore as of May this year. And in 5 years, the number of subscribers could reach 6.7 million, or equivalent to a 90 per cent 3G penetration rate.
Eamonn Kearns, vice president, Asia Pacific, Dialogic, said: “Now as we move into a 3G enabled environment, where people have the ability to make and received video calls, it is a logical evolution that property developers will begin to use 3G as an extension of their print and online advertising campaign.”
The virtual real estate tour application is not available in Singapore just yet. But property agency Propnex said the take up rate is unlikely to be very high.
That is because many agents are still conservative when it comes to adopting such 3G technology, preferring more traditional advertising medium.
Meanwhile, HSR expects 6-in-10 agents in Singapore to make use of the mobile application when it becomes available. It is estimated to cost some S$360 a year per property listing.
Source : Channel NewsAsia – 2 Jul 2010
Software company Oasis Systems is launching the world’s first mobile service for the real estate industry.
The application will debut in Australia in less than three months and could be made available in Singapore.
Take a “walk” around the living room, or visit other parts of the house. The new interactive dial-in software will allow home hunters to tour properties virtually.
Jeff Wise, vice president, Business Development, Oasis Systems, said: “We believe there is a lot of potential in interactive video, and so (we’re) providing interactive video for a market that is very much visual, a very emotive market – the real estate business.
Oasis Systems said companies like Youtube and Skype are also creating new software for smartphones to tap the growing 3G mobile market.
Research firm Frost and Sullivan said there are 3.4 million 3G mobile subscribers in Singapore as of May this year. And in 5 years, the number of subscribers could reach 6.7 million, or equivalent to a 90 per cent 3G penetration rate.
Eamonn Kearns, vice president, Asia Pacific, Dialogic, said: “Now as we move into a 3G enabled environment, where people have the ability to make and received video calls, it is a logical evolution that property developers will begin to use 3G as an extension of their print and online advertising campaign.”
The virtual real estate tour application is not available in Singapore just yet. But property agency Propnex said the take up rate is unlikely to be very high.
That is because many agents are still conservative when it comes to adopting such 3G technology, preferring more traditional advertising medium.
Meanwhile, HSR expects 6-in-10 agents in Singapore to make use of the mobile application when it becomes available. It is estimated to cost some S$360 a year per property listing.
Source : Channel NewsAsia – 2 Jul 2010
Older units more affordable for some
With private property prices hitting their highest levels in the last two years, young professionals are feeling the pinch when it comes to buying their first home.
Mr John Ng, a newly-wed entrepreneur, said he is looking only at options that are within his means.
“We won’t be looking at brand new units because they are very expensive, we will be looking at 10 to 15 year-old units because they are still within our budget,” said Mr Ng, who has allocated $600,000 to $700,000 for a property in the suburbs.
Mr Colin Tan, head of research and consultancy at Chesteron Suntec International, suggested that someone like Mr Ng should consider older properties such as those with 10 to 15 years to the expiry of their lease tenure.
Properties without facilities, such as an old walk-up apartment, are also an option.
For someone with Mr Ng’s budget, some condo developments that remain affordable include: Double Bay Residences, Simei, $565 psf with unit sizes from 538 square feet; Rosewood Suites, Woodlands, $586 psf with unit sizes from 678 square feet; Elliot at the East Coast, Marine Parade, $842 psf with unit sizes from 506 square feet.
Source : Today – 2 Jul 2010
Mr John Ng, a newly-wed entrepreneur, said he is looking only at options that are within his means.
“We won’t be looking at brand new units because they are very expensive, we will be looking at 10 to 15 year-old units because they are still within our budget,” said Mr Ng, who has allocated $600,000 to $700,000 for a property in the suburbs.
Mr Colin Tan, head of research and consultancy at Chesteron Suntec International, suggested that someone like Mr Ng should consider older properties such as those with 10 to 15 years to the expiry of their lease tenure.
Properties without facilities, such as an old walk-up apartment, are also an option.
For someone with Mr Ng’s budget, some condo developments that remain affordable include: Double Bay Residences, Simei, $565 psf with unit sizes from 538 square feet; Rosewood Suites, Woodlands, $586 psf with unit sizes from 678 square feet; Elliot at the East Coast, Marine Parade, $842 psf with unit sizes from 506 square feet.
Source : Today – 2 Jul 2010
Thursday, July 1, 2010
Oversupply looming?
There’s an insatiable demand for owner-occupied property now, but what happens later?
The spectre of a possible looming oversupply in Singapore’s housing market – including both the private and public sectors – in the not-to-distant future was again brought back to the fore when the HDB announced on Wednesday its biggest launch ever of new Build To Order (BTO) flats.
The 2,696 flats offered brings the total number of new BTO flats launched to 8,828 flats for the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
At this rate, the HDB will likely double the number of BTO flats by the end of the year to about 17,000 units.
For the time being, demand for BTO flats appear insatiable. Unlike most purchases of private homes, this is real demand for owner occupation. It is just that rising resale prices and fears of further increases in flat prices drove many to book their flats many years in advance.
The widening price gap between new and resale flats coupled with many more innovative schemes such as the new eco-friendly Waterway Terraces have also added to the attraction of BTO flats.
If we tag these numbers to the robust sales of over 14,000 private homes each in 2007 and last year with a strong possibility that these numbers may yet be matched this year, are we looking at a looming housing oversupply within the next two to three years or even earlier?
The current strong demand for BTO flats is not sustainable. There will come a time when demand will drop off as those wanting to buy would have already secured their flats or have already booked theirs.
The rise in HDB resale flat prices may then plateau off. This may act as a cap on the future number of upgraders to the lower end of the private housing market particularly if private home prices continue to rise.
Do we then depend on foreigners to make up this shortfall? The percentage of foreign and permanent residents buying has certainly gone up in recent months but they are fair weather market participants. They can go as quickly as they come.
While discussing property at a recent business lunch, a few Hong Kong professionals told me laughingly that some of their friends are no longer able to visit Singapore as they are “wanted” people.
It transpired that these friends bought high-end properties in 2007 and chose to walk away when prices turned south.
Will recent buyers walk away again when things do not go their way?
If I were the owner who recently sold off his Sentosa Cove detached house for $36 million, I will put off celebrations until I actually have my hands on the money. Anything can happen between now and sale completion.
The greatest drawback in attacking the real estate bubble from the supply side is that it places a huge strain on the limited industry resources.
Lest we forget, the ramping up of supply in recent months have yet to make a dent in demand. If demand does not abate due to excessive liquidity, what happens then?
With the total number of homes – both private and public – sold having more than double in recent years, is the real estate industry particularly the construction sector able to similarly doubled its capacity.
Let us say we have the labour capacity, what about material costs? Even if we are prepared to pay more, are we able to get them? The problem of sand imports comes quickly to mind.
With such nagging problems, it is possible that we will see the return of ever rising construction costs and project delays.
It was not so long ago that skyrocketing construction prices and the credit crunch led to a indefinite postponement in the development of our Kallang Sports Hub.
It has since been revived but it had better take off quickly before the same problems resurface once again.
By Colin Tan, head of research and consultancy at Chesterton Suntec International
The spectre of a possible looming oversupply in Singapore’s housing market – including both the private and public sectors – in the not-to-distant future was again brought back to the fore when the HDB announced on Wednesday its biggest launch ever of new Build To Order (BTO) flats.
The 2,696 flats offered brings the total number of new BTO flats launched to 8,828 flats for the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
At this rate, the HDB will likely double the number of BTO flats by the end of the year to about 17,000 units.
For the time being, demand for BTO flats appear insatiable. Unlike most purchases of private homes, this is real demand for owner occupation. It is just that rising resale prices and fears of further increases in flat prices drove many to book their flats many years in advance.
The widening price gap between new and resale flats coupled with many more innovative schemes such as the new eco-friendly Waterway Terraces have also added to the attraction of BTO flats.
If we tag these numbers to the robust sales of over 14,000 private homes each in 2007 and last year with a strong possibility that these numbers may yet be matched this year, are we looking at a looming housing oversupply within the next two to three years or even earlier?
The current strong demand for BTO flats is not sustainable. There will come a time when demand will drop off as those wanting to buy would have already secured their flats or have already booked theirs.
The rise in HDB resale flat prices may then plateau off. This may act as a cap on the future number of upgraders to the lower end of the private housing market particularly if private home prices continue to rise.
Do we then depend on foreigners to make up this shortfall? The percentage of foreign and permanent residents buying has certainly gone up in recent months but they are fair weather market participants. They can go as quickly as they come.
While discussing property at a recent business lunch, a few Hong Kong professionals told me laughingly that some of their friends are no longer able to visit Singapore as they are “wanted” people.
It transpired that these friends bought high-end properties in 2007 and chose to walk away when prices turned south.
Will recent buyers walk away again when things do not go their way?
If I were the owner who recently sold off his Sentosa Cove detached house for $36 million, I will put off celebrations until I actually have my hands on the money. Anything can happen between now and sale completion.
The greatest drawback in attacking the real estate bubble from the supply side is that it places a huge strain on the limited industry resources.
Lest we forget, the ramping up of supply in recent months have yet to make a dent in demand. If demand does not abate due to excessive liquidity, what happens then?
With the total number of homes – both private and public – sold having more than double in recent years, is the real estate industry particularly the construction sector able to similarly doubled its capacity.
Let us say we have the labour capacity, what about material costs? Even if we are prepared to pay more, are we able to get them? The problem of sand imports comes quickly to mind.
With such nagging problems, it is possible that we will see the return of ever rising construction costs and project delays.
It was not so long ago that skyrocketing construction prices and the credit crunch led to a indefinite postponement in the development of our Kallang Sports Hub.
It has since been revived but it had better take off quickly before the same problems resurface once again.
By Colin Tan, head of research and consultancy at Chesterton Suntec International
Property auction market up 20% in H1
The Singapore property auction market rose 20 per cent on-year in the first half of this year to S$87 million, according to property consultants Colliers International.
A total of 440 properties were put up for auction, of which 378 properties were from property owners while only 62 were mortgagee sales.
Colliers said the sharp fall in the number of properties put up for mortgage sale is a reflection of the vastly-improved financial position of mortgagors.
April saw the highest value from auctions when 12 properties changed hands at a total value of more than S$24.4 million.
The lull period was in May, when only two properties were sold for S$6.89 million. This could be due to concerns over European debts, as well as the tension between North and South Korea which sent jitters through the stock market, said Colliers.
It added that buying interest at auctions will also remain keen as liquidity in the market is high and more investors are looking to real estate to hedge against inflation.
The sale of seven landed properties contributed 23.1 per cent or S$20.08 million to auction transactions during the six-month period.
Four out of the seven landed properties are located in the Bukit Timah vicinity.
Other types of properties sold in auctions are retail properties, which contributed S$20.07 million or 23.1 per cent to total sales; as well as high-end apartments which contributed S$13.38 million or 15.4 per cent.
Source : Channel NewsAsia – 30 Jun 2010
A total of 440 properties were put up for auction, of which 378 properties were from property owners while only 62 were mortgagee sales.
Colliers said the sharp fall in the number of properties put up for mortgage sale is a reflection of the vastly-improved financial position of mortgagors.
April saw the highest value from auctions when 12 properties changed hands at a total value of more than S$24.4 million.
The lull period was in May, when only two properties were sold for S$6.89 million. This could be due to concerns over European debts, as well as the tension between North and South Korea which sent jitters through the stock market, said Colliers.
It added that buying interest at auctions will also remain keen as liquidity in the market is high and more investors are looking to real estate to hedge against inflation.
The sale of seven landed properties contributed 23.1 per cent or S$20.08 million to auction transactions during the six-month period.
Four out of the seven landed properties are located in the Bukit Timah vicinity.
Other types of properties sold in auctions are retail properties, which contributed S$20.07 million or 23.1 per cent to total sales; as well as high-end apartments which contributed S$13.38 million or 15.4 per cent.
Source : Channel NewsAsia – 30 Jun 2010
SLA to re-launch tender of Old Admiralty House site in Sembawang
The Singapore Land Authority (SLA) will re-launch a tender for the Old Admiralty House, part of the former British naval base in Sembawang.
SLA has terminated its contract with YESS Resorts and Country Club, which had converted the national monument into a country club.
YESS had taken over the premises in 2007 for a monthly rent of $40,000.
This was also the first time a preserved monument was tendered out by the SLA.
YESS had proposed to transform the place into the multi-purpose Admiral Country Club, with family-oriented leisure and entertainment activities.
SLA said it had to terminate the contract after non-payment of rent, despite repeated warnings.
But it agreed to allow all six of sub-tenants to remain until early-2011 on compassionate grounds.
SLA will take over operations of place until the re-launch of the tender.
Source : Channel NewsAsia – 1 Jul 2010
SLA has terminated its contract with YESS Resorts and Country Club, which had converted the national monument into a country club.
YESS had taken over the premises in 2007 for a monthly rent of $40,000.
This was also the first time a preserved monument was tendered out by the SLA.
YESS had proposed to transform the place into the multi-purpose Admiral Country Club, with family-oriented leisure and entertainment activities.
SLA said it had to terminate the contract after non-payment of rent, despite repeated warnings.
But it agreed to allow all six of sub-tenants to remain until early-2011 on compassionate grounds.
SLA will take over operations of place until the re-launch of the tender.
Source : Channel NewsAsia – 1 Jul 2010
BTO project in Punggol 6 times oversubscribed a day after launch
The Housing and Development Board’s (HDB) latest Build-To-Order (BTO) project, Waterway Terraces in Punggol, is six times oversubscribed, just a day after applications opened.
Five-room flats are the most popular, receiving almost 1,800 applications for the 306 available flats.
Four-room and three-room units are also oversubscribed.
Four-room flats received 2,461 applications for 306 units, while 268 applications were received for the 178 available three-room units.
Waterway Terraces is Singapore’s first waterfront public housing project.
Industry watchers said they expect the project to be more than 10 times oversubscribed.
HDB’s other new BTO projects – Rivervale Arc and Fernvale Foilage, both in Sengkang – were less popular.
About half of the units in these projects received applications.
Source : Channel NewsAsia – 1 Jul 2010
Five-room flats are the most popular, receiving almost 1,800 applications for the 306 available flats.
Four-room and three-room units are also oversubscribed.
Four-room flats received 2,461 applications for 306 units, while 268 applications were received for the 178 available three-room units.
Waterway Terraces is Singapore’s first waterfront public housing project.
Industry watchers said they expect the project to be more than 10 times oversubscribed.
HDB’s other new BTO projects – Rivervale Arc and Fernvale Foilage, both in Sengkang – were less popular.
About half of the units in these projects received applications.
Source : Channel NewsAsia – 1 Jul 2010
Older units more affordable for some
The Housing and Development Board, HDB, has launched three sites for sale by tender under the second half of the Government Land Sales or GLS Programme.
Two of them are residential sites and one is a mixed commercial-residential site.
The mixed development site is located at the junction of New Upper Changi Road and Bedok North Drive.
One of the residential sites in Jurong West is meant for an executive condominium development.
The other site at Miltonia Close in Yishun is slated for strata housing.
HDB says the three sites can potentially yield about 1,300 housing units of which about 460 are Executive Condominium (EC) units.
In addition to the three sites released by HDB today, URA will also be launching another three sites with residential component in the later part of this month.
These include a residential site at Jalan Eunos/ Foo Kim Lin Road, and a white site at Peck Seah Street/ Choon Guan Street which are released for sale under the Confirmed List.
Another residential site at Buangkok Drive/ Sengkang Central will be made available for application under the Reserve List.
The GLS Programme for the second half of this year comprises 27 residential sites and four mixed-use sites where private residential housing can be built.
The total potential supply quantum of 13,905 private residential units is the highest potential supply quantum from any half yearly GLS Programme since the Confirmed List/Reserve List system started in second half of 2001.
Source : Channel NewsAsia – 1 Jul 2010
Two of them are residential sites and one is a mixed commercial-residential site.
The mixed development site is located at the junction of New Upper Changi Road and Bedok North Drive.
One of the residential sites in Jurong West is meant for an executive condominium development.
The other site at Miltonia Close in Yishun is slated for strata housing.
HDB says the three sites can potentially yield about 1,300 housing units of which about 460 are Executive Condominium (EC) units.
In addition to the three sites released by HDB today, URA will also be launching another three sites with residential component in the later part of this month.
These include a residential site at Jalan Eunos/ Foo Kim Lin Road, and a white site at Peck Seah Street/ Choon Guan Street which are released for sale under the Confirmed List.
Another residential site at Buangkok Drive/ Sengkang Central will be made available for application under the Reserve List.
The GLS Programme for the second half of this year comprises 27 residential sites and four mixed-use sites where private residential housing can be built.
The total potential supply quantum of 13,905 private residential units is the highest potential supply quantum from any half yearly GLS Programme since the Confirmed List/Reserve List system started in second half of 2001.
Source : Channel NewsAsia – 1 Jul 2010
HDB resale prices climb 3.8% in Q2
Prices of resale HDB flats went up for the fifth consecutive quarter to surpass the 1996 peak by nearly 18%.
HDB’s flash estimate for the second quarter showed the Resale Price Index (RPI) rise 3.8% on-quarter to 160.9, surpassing the 1996 peak of 136.9 points.
Some analysts said the second quarter tends to see the strongest activity as many home buyers leave their flat purchases till after the Lunar New Year.
But others didn’t expect resale prices to rise so quickly, because of the government’s aggressive launch of new flats this year.
The government on Wednesday announced its single largest launch of HDB flats and said if demand continues it will add more units for sale, bringing the total to 16,000 for the whole of this year.
Analysts said this will help assure home buyers there are enough flats to go around, and will in the long-term, moderate prices of resale flats.
But over the next few months, they do not expect any let-up either in resale demand or price.
Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic, said: “In the HDB market, although the slowdown might be more in terms of the Cash Over Valuation, or the seller’s expectations, the buyers, I think, are fairly bullish because in a way, the HDB public housing market forms the very base, the cheapest form of housing to anyone in Singapore.”
Furthermore, analysts said mass market condominiums are still out of the reach of most buyers.
Despite a slowdown in sales in recent months, private home prices have remained firm, increasing at 5.2 percent in the second quarter.
This is slightly smaller than the 5.6 percent rise in the first three months of this year.
It is also one of the smallest rate of increases in the last 12 months.
ERA Asia Pacific’s Associate Director Eugene Lim added that developers “are not likely to cut prices to move sales, as most of them have strong balance sheets.”
Chris Koh, Director of Dennis Wee Group, estimated that private home transactions have gone down by about 20 percent in recent months.
He said: “You speak to some of us who do private property transactions, we will tell you, yeah, the market is correcting a bit.
“We’re not seeing a steep rise in prices anymore for the private market. Instead private property prices have only inched one, two percent up and you can see that it’s more or less starting to plateau out.
“If that happens maybe the HDB market will mirror it….but at the moment I’m not seeing that in the HDB market yet.”
Overall, market watchers expect resale prices for 2010 to increase by 8 to 15 percent.
On Thursday, the government announced three more land parcels for sale, which could yield about 1,300 residential units, including 460 Executive Condominium flats.
The Urban Redevelopment Authority will also launch another three sites later this month, which will include sites for residential purposes.
In total, the Government Land Sales (GLS) Programme for the second half of 2010 comprises 27 residential sites and four mixed-use sites where private residential housing can be built.
The total potential supply of 13,905 private residential units is the highest potential supply quantum from any half yearly GLS Programme since the Confirmed List/Reserve List system started in the second half of 2001.
Source : Channel NewsAsia – 1 Jul 2010
HDB’s flash estimate for the second quarter showed the Resale Price Index (RPI) rise 3.8% on-quarter to 160.9, surpassing the 1996 peak of 136.9 points.
Some analysts said the second quarter tends to see the strongest activity as many home buyers leave their flat purchases till after the Lunar New Year.
But others didn’t expect resale prices to rise so quickly, because of the government’s aggressive launch of new flats this year.
The government on Wednesday announced its single largest launch of HDB flats and said if demand continues it will add more units for sale, bringing the total to 16,000 for the whole of this year.
Analysts said this will help assure home buyers there are enough flats to go around, and will in the long-term, moderate prices of resale flats.
But over the next few months, they do not expect any let-up either in resale demand or price.
Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic, said: “In the HDB market, although the slowdown might be more in terms of the Cash Over Valuation, or the seller’s expectations, the buyers, I think, are fairly bullish because in a way, the HDB public housing market forms the very base, the cheapest form of housing to anyone in Singapore.”
Furthermore, analysts said mass market condominiums are still out of the reach of most buyers.
Despite a slowdown in sales in recent months, private home prices have remained firm, increasing at 5.2 percent in the second quarter.
This is slightly smaller than the 5.6 percent rise in the first three months of this year.
It is also one of the smallest rate of increases in the last 12 months.
ERA Asia Pacific’s Associate Director Eugene Lim added that developers “are not likely to cut prices to move sales, as most of them have strong balance sheets.”
Chris Koh, Director of Dennis Wee Group, estimated that private home transactions have gone down by about 20 percent in recent months.
He said: “You speak to some of us who do private property transactions, we will tell you, yeah, the market is correcting a bit.
“We’re not seeing a steep rise in prices anymore for the private market. Instead private property prices have only inched one, two percent up and you can see that it’s more or less starting to plateau out.
“If that happens maybe the HDB market will mirror it….but at the moment I’m not seeing that in the HDB market yet.”
Overall, market watchers expect resale prices for 2010 to increase by 8 to 15 percent.
On Thursday, the government announced three more land parcels for sale, which could yield about 1,300 residential units, including 460 Executive Condominium flats.
The Urban Redevelopment Authority will also launch another three sites later this month, which will include sites for residential purposes.
In total, the Government Land Sales (GLS) Programme for the second half of 2010 comprises 27 residential sites and four mixed-use sites where private residential housing can be built.
The total potential supply of 13,905 private residential units is the highest potential supply quantum from any half yearly GLS Programme since the Confirmed List/Reserve List system started in the second half of 2001.
Source : Channel NewsAsia – 1 Jul 2010
Private home prices up 5.2% in Q2
Private home prices remained firm in the second quarter, sending the residential property price index to a record high of 184.1 points.
Private residential prices increased by 5.2 percent quarter-on-quarter in the April-June period, according to flash estimates released by the Urban Redevelopment Authority (URA) on Thursday.
The figure beats the 3 percent rise forecast by some analysts. But market watchers do not expect further anti-speculative measures to be implemented by the government.
Sales-wise, industry figures showed that the number of caveats lodged in Q2 fell by 19.2% on-quarter to 7,041.
While sales volume moderated, prices continued to grow, albeit at a slower pace.
Private home prices were up 5.2 percent in Q2, after rising 5.6 percent in the first three months of this year.
The rise in Q2 pushed the residential property price index to an all-time high, surpassing the market peak (181.4 points) in Q2 of 1996.
Still, analysts said it is too early to call for additional cooling measures.
Liang Thow Ming, from Credo Real Estate, said: “Compared to 1996, I think we are a little bit above in terms of prices, especially in mass-market (homes). However in terms of income, I think we are also well above the 1996 level. So in that sense where affordability is concerned, it’s still pretty well-maintained. So I don’t think there is a bubble over here.”
In Q2, prices for mass-market homes (those outside the central region) showed the highest growth of 5.7 percent, partly due to price points set by new projects like Tree House and The Minton.
Consultancy firm CB Richard Ellis said another reason for the increase is the rising prices of resale transactions in locations where several sites from the government land sales programme had been sold in the past six to nine months.
Meanwhile, private homes in the city and prime districts (core central region) cost 5.1 percent more. And those in the city fringe (the rest of central region) saw price increases of 4.5 percent.
In comparison, for the first quarter of 2010, prices of non-landed private residential properties increased by 4.4 percent in the core central region, 7.9 percent in the rest of the central region and 4.3 percent in the outside central region.
Home prices are also expected to soften as the government rolls out more state land for tender in the second half.
Jones Lang LaSalle’s Head of Research (Southeast Asia), Dr Chua Yang Liang, said: “Prices are likely to remain stable or grow very moderately for the next few quarters. This is given that transaction volumes have come off in the earlier quarters and the few months that we’ve seen. And usually going by the long-term trend, as transaction volume comes down, prices will follow suit. In terms of the rate of increase, it will slow down or remain stable.”
Observers expect prices to grow by up to 3% for the next two quarters, bringing the full-year price increase to 20 percent.
Source : Channel NewsAsia – 1 Jul 2010
Private residential prices increased by 5.2 percent quarter-on-quarter in the April-June period, according to flash estimates released by the Urban Redevelopment Authority (URA) on Thursday.
The figure beats the 3 percent rise forecast by some analysts. But market watchers do not expect further anti-speculative measures to be implemented by the government.
Sales-wise, industry figures showed that the number of caveats lodged in Q2 fell by 19.2% on-quarter to 7,041.
While sales volume moderated, prices continued to grow, albeit at a slower pace.
Private home prices were up 5.2 percent in Q2, after rising 5.6 percent in the first three months of this year.
The rise in Q2 pushed the residential property price index to an all-time high, surpassing the market peak (181.4 points) in Q2 of 1996.
Still, analysts said it is too early to call for additional cooling measures.
Liang Thow Ming, from Credo Real Estate, said: “Compared to 1996, I think we are a little bit above in terms of prices, especially in mass-market (homes). However in terms of income, I think we are also well above the 1996 level. So in that sense where affordability is concerned, it’s still pretty well-maintained. So I don’t think there is a bubble over here.”
In Q2, prices for mass-market homes (those outside the central region) showed the highest growth of 5.7 percent, partly due to price points set by new projects like Tree House and The Minton.
Consultancy firm CB Richard Ellis said another reason for the increase is the rising prices of resale transactions in locations where several sites from the government land sales programme had been sold in the past six to nine months.
Meanwhile, private homes in the city and prime districts (core central region) cost 5.1 percent more. And those in the city fringe (the rest of central region) saw price increases of 4.5 percent.
In comparison, for the first quarter of 2010, prices of non-landed private residential properties increased by 4.4 percent in the core central region, 7.9 percent in the rest of the central region and 4.3 percent in the outside central region.
Home prices are also expected to soften as the government rolls out more state land for tender in the second half.
Jones Lang LaSalle’s Head of Research (Southeast Asia), Dr Chua Yang Liang, said: “Prices are likely to remain stable or grow very moderately for the next few quarters. This is given that transaction volumes have come off in the earlier quarters and the few months that we’ve seen. And usually going by the long-term trend, as transaction volume comes down, prices will follow suit. In terms of the rate of increase, it will slow down or remain stable.”
Observers expect prices to grow by up to 3% for the next two quarters, bringing the full-year price increase to 20 percent.
Source : Channel NewsAsia – 1 Jul 2010
Wednesday, June 30, 2010
Sentosa Cove drowning death house goes on sale
Despite the gristly events that occurred at this Sentosa Cove bungalow, some 20 people attended its open house last weekend.
The Straits Times reported that the house where 24-year-old Chinese national Li Hong Yan was found dead floating in its pool is being put up for sale or rental.
A small A4-sized advertisement was placed on one of the front windows of the house by an agent from HSR.
The asking rental price is $28,000 per month, while the owner is willing to let the 8,000 sq ft property go for below its valuation of $17 million at $15.8 million.
Owner Mr Adrian Chua Boon Chye, 39, chief executive and founder of Roundhill Capital is currently based in Tokyo.
Ms Li Hong Yan’s death after spending the night at the bungalow remains unexplained.
Source : AsiaOne – 30 Jun 2010
The Straits Times reported that the house where 24-year-old Chinese national Li Hong Yan was found dead floating in its pool is being put up for sale or rental.
A small A4-sized advertisement was placed on one of the front windows of the house by an agent from HSR.
The asking rental price is $28,000 per month, while the owner is willing to let the 8,000 sq ft property go for below its valuation of $17 million at $15.8 million.
Owner Mr Adrian Chua Boon Chye, 39, chief executive and founder of Roundhill Capital is currently based in Tokyo.
Ms Li Hong Yan’s death after spending the night at the bungalow remains unexplained.
Source : AsiaOne – 30 Jun 2010
CBRE forecasts fewer private homes sales in Q2
The private property market saw some slowing down during the second quarter of the year.
Property consultant CB Richard Ellis (CBRE) forecast that about 4,000 new homes were sold in the second quarter, lower than the previous quarter’s figure of 4,380 units.
Also, in the resale market, CBRE estimated that 3,400 to 3,600 resale homes were sold in the second quarter.
If confirmed, that would be 15 to 20 per cent lower than the 4,261 resale homes sold in the previous quarter.
Sub-sales numbered about 500, down from 806 in the previous quarter as the market became less bullish, the report said.
Sellers were also mindful of the stamp duty payable if they sold their property within a year of purchase. In addition, the number of HDB upgraders buying private homes fell.
About 33.7 per cent of new home buyers in the second quarter this year had HDB addresses, lower than the 37.9 per cent figure of the previous quarter.
CBRE said the reduction could be attributed to a smaller supply of mass-market projects being launched in the second quarter. Nevertheless, CBRE said that about 8,300 new homes were sold in the first half of this year. This is more than half or 56.5 per cent of the 14,688 new homes sold for all of last year.
CBRE predicted that overall home prices in the second quarter could reflect a rise of between 2 per cent and 3 per cent on-quarter.
Source : Today – 30 Jun 2010
Property consultant CB Richard Ellis (CBRE) forecast that about 4,000 new homes were sold in the second quarter, lower than the previous quarter’s figure of 4,380 units.
Also, in the resale market, CBRE estimated that 3,400 to 3,600 resale homes were sold in the second quarter.
If confirmed, that would be 15 to 20 per cent lower than the 4,261 resale homes sold in the previous quarter.
Sub-sales numbered about 500, down from 806 in the previous quarter as the market became less bullish, the report said.
Sellers were also mindful of the stamp duty payable if they sold their property within a year of purchase. In addition, the number of HDB upgraders buying private homes fell.
About 33.7 per cent of new home buyers in the second quarter this year had HDB addresses, lower than the 37.9 per cent figure of the previous quarter.
CBRE said the reduction could be attributed to a smaller supply of mass-market projects being launched in the second quarter. Nevertheless, CBRE said that about 8,300 new homes were sold in the first half of this year. This is more than half or 56.5 per cent of the 14,688 new homes sold for all of last year.
CBRE predicted that overall home prices in the second quarter could reflect a rise of between 2 per cent and 3 per cent on-quarter.
Source : Today – 30 Jun 2010
Lian Beng wins S$88m contract from UOL Development
Construction company Lian Beng has clinched a S$88 million contract to build a condominium development at Spottiswoode Park Road.
Awarded by UOL Development, the contract will cover the construction of a 36-storey residential tower, and other ancillary facilities.
This marks the Group’s fourth building contract from the private residential sector since March.
This latest contract will boost Lian Beng’s order book to approximately S$940 million.
Work on the development is scheduled to begin in July, and is expected to be complete by the second quarter of 2013.
For the nine months ended 28 February 2010, Lian Beng reported a 52 per cent growth in net profit to S$17.4 million.
This came on the back of a 4.5 per cent improvement in revenue to S$240.5 million.
The Group will be reporting its full year results at the end of July.
Source : Channel NewsAsia – 30 Jun 2010
Awarded by UOL Development, the contract will cover the construction of a 36-storey residential tower, and other ancillary facilities.
This marks the Group’s fourth building contract from the private residential sector since March.
This latest contract will boost Lian Beng’s order book to approximately S$940 million.
Work on the development is scheduled to begin in July, and is expected to be complete by the second quarter of 2013.
For the nine months ended 28 February 2010, Lian Beng reported a 52 per cent growth in net profit to S$17.4 million.
This came on the back of a 4.5 per cent improvement in revenue to S$240.5 million.
The Group will be reporting its full year results at the end of July.
Source : Channel NewsAsia – 30 Jun 2010
Real estate ex-staffer jailed for forging signatures to get cash from condo MC
A former employee of a real estate company has been sentenced to four-and-a-half years’ jail for withdrawing more than half a million dollars from the bank accounts of a condominium management committee.
Chew Swee Siong, 31, from Kenwood Property Consultants used to be based at West Bay Condominium at West Coast Crescent when he committed the offences between 18 November 2006 and 10 July 2007.
He pleaded guilty to 28 charges in May this year while another 158 were taken into consideration.
Chew told the authorities that he had made off with more than S$1.5 million in all, over a space of 18 months.
To feed his gambling habit, he had forged the signatures of two people to get the cash.
Chew could have been jailed up to seven years and fined.
Source : Channel NewsAsia – 30 Jun 2010
Chew Swee Siong, 31, from Kenwood Property Consultants used to be based at West Bay Condominium at West Coast Crescent when he committed the offences between 18 November 2006 and 10 July 2007.
He pleaded guilty to 28 charges in May this year while another 158 were taken into consideration.
Chew told the authorities that he had made off with more than S$1.5 million in all, over a space of 18 months.
To feed his gambling habit, he had forged the signatures of two people to get the cash.
Chew could have been jailed up to seven years and fined.
Source : Channel NewsAsia – 30 Jun 2010
Far East Organization launches ultra luxury development arm
Market players believe more home hunters and investors are going up-market.
To tap opportunities in this segment, developer Far East Organization has launched a series of luxurious apartments under a brand called Inessence.
Industry figures show that some 240 ultra high-end homes were sold in the first half of this year, and observers said there is more upside ahead.
Living it up at Boulevard Vue will come with a big price tag.
An apartment here costs about S$3,700 per square foot, and that is just the starting price.
About one-third of the project has been snapped up, with the penthouse sold for about S$34 million recently.
Boulevard Vue is among four bespoke residences under the Inessence brand.
Its developer Far East Organization said the properties are all located in the Orchard Road area.
So far, about six-in-10 of the available units are taken up by foreigners.
Chia Boon Kuah, executive director, Far East Organization, said: “With the increase in interest in Singapore, especially from the Chinese, from Malaysians, from Indonesians, and we expect also the Indians to be arriving and buying such luxury properties…with these people, with the new money and the new customers coming to Singapore, we believe these products will be taken up.”
According to recent studies by Cap Gemini and Merrill Lynch, global wealth increased by about 19 per cent to US$39 trillion to close in on the pre-crisis peaks of 2007. The Asia Pacific led the growth in wealth, outpacing Europe for the first time.
Observers said foreigners are also attracted to properties in Singapore because they are relatively cheaper.
The peak price for luxury homes was about S$4,500 per square foot in 2008.
Donald Han, managing director, Cushman & Wakefield, said: “If you look at the ultra high end pricing wise, it is hovering about 18 to 20 per cent off from peak of the residential market, which is defined as the first quarter of 2008.
“There is a lot for the ultra high-end market to pick up, and values are deemed quite compelling to some of our neighbouring cities like Hong Kong, Shanghai or even Beijing, which is all pretty toppish – at market peaks in that sense.”
In the first half of this year, some 240 luxury apartments were sold in Singapore, at a total value of S$1.4 billion.
And Far East Organization believes there is room for growth, as sales are still below the peaks in 2007 when 1,000 units were sold that year, at a total value of S$6.4 billion.
Source : Channel NewsAsia – 30 Jun 2010
To tap opportunities in this segment, developer Far East Organization has launched a series of luxurious apartments under a brand called Inessence.
Industry figures show that some 240 ultra high-end homes were sold in the first half of this year, and observers said there is more upside ahead.
Living it up at Boulevard Vue will come with a big price tag.
An apartment here costs about S$3,700 per square foot, and that is just the starting price.
About one-third of the project has been snapped up, with the penthouse sold for about S$34 million recently.
Boulevard Vue is among four bespoke residences under the Inessence brand.
Its developer Far East Organization said the properties are all located in the Orchard Road area.
So far, about six-in-10 of the available units are taken up by foreigners.
Chia Boon Kuah, executive director, Far East Organization, said: “With the increase in interest in Singapore, especially from the Chinese, from Malaysians, from Indonesians, and we expect also the Indians to be arriving and buying such luxury properties…with these people, with the new money and the new customers coming to Singapore, we believe these products will be taken up.”
According to recent studies by Cap Gemini and Merrill Lynch, global wealth increased by about 19 per cent to US$39 trillion to close in on the pre-crisis peaks of 2007. The Asia Pacific led the growth in wealth, outpacing Europe for the first time.
Observers said foreigners are also attracted to properties in Singapore because they are relatively cheaper.
The peak price for luxury homes was about S$4,500 per square foot in 2008.
Donald Han, managing director, Cushman & Wakefield, said: “If you look at the ultra high end pricing wise, it is hovering about 18 to 20 per cent off from peak of the residential market, which is defined as the first quarter of 2008.
“There is a lot for the ultra high-end market to pick up, and values are deemed quite compelling to some of our neighbouring cities like Hong Kong, Shanghai or even Beijing, which is all pretty toppish – at market peaks in that sense.”
In the first half of this year, some 240 luxury apartments were sold in Singapore, at a total value of S$1.4 billion.
And Far East Organization believes there is room for growth, as sales are still below the peaks in 2007 when 1,000 units were sold that year, at a total value of S$6.4 billion.
Source : Channel NewsAsia – 30 Jun 2010
3 new BTO projects launched offering 2,696 flats
The Housing and Development Board (HDB) launched three new Build-To-Order (BTO) projects in Punggol and Sengkang on Wednesday.
The projects are Waterway Terraces in Punggol, Fernvale Foliage and Rivervale Arc in Sengkang.
A total of 2,696 flats will be offered.
HDB says this is the largest number of BTO flats offered in a single launch so far.
They comprise 238 units of 2-room, 399 units of 3-room, 1,585 units of 4-room and 474 units of 5-room flats.
95 per cent of the public supply will be set aside for first-timers.
HDB says that with the latest launch, it would have offered a total of 8,828 new BTO flats for sale in the first six months of this year.
This is equivalent to the BTO supply for the whole of last year.
Waterway Terraces in Punggol will be the first waterfront housing project.
It offers 1,072 premium flats and boasts eco-friendly features which include solar power to supplement lighting needs in common areas.
Prices of the three-room units start from S$186,000. Four- and five-room units start from S$300,000 and S$374,000 respectively.
Fernvale Foliage in Sengkang offers 504 standard flats and Rivervale Arc, also in Sengkang, offers 1,120 standard flats.
They are priced lower than the flats in Waterway Terraces. Prices range from S$68,000 to $279,000.
HDB says it plans to launch at least 12,000 new BTO flats by September and more if there is demand.
The upcoming projects will be in Bukit Panjang, Jurong West, Yishun and Woodlands.
In July, flat buyers can look forward to the launch of about 1,000 BTO flats in Bukit Panjang and Jurong West.
Source : Channel NewsAsia – 30 Jun 2010
The projects are Waterway Terraces in Punggol, Fernvale Foliage and Rivervale Arc in Sengkang.
A total of 2,696 flats will be offered.
HDB says this is the largest number of BTO flats offered in a single launch so far.
They comprise 238 units of 2-room, 399 units of 3-room, 1,585 units of 4-room and 474 units of 5-room flats.
95 per cent of the public supply will be set aside for first-timers.
HDB says that with the latest launch, it would have offered a total of 8,828 new BTO flats for sale in the first six months of this year.
This is equivalent to the BTO supply for the whole of last year.
Waterway Terraces in Punggol will be the first waterfront housing project.
It offers 1,072 premium flats and boasts eco-friendly features which include solar power to supplement lighting needs in common areas.
Prices of the three-room units start from S$186,000. Four- and five-room units start from S$300,000 and S$374,000 respectively.
Fernvale Foliage in Sengkang offers 504 standard flats and Rivervale Arc, also in Sengkang, offers 1,120 standard flats.
They are priced lower than the flats in Waterway Terraces. Prices range from S$68,000 to $279,000.
HDB says it plans to launch at least 12,000 new BTO flats by September and more if there is demand.
The upcoming projects will be in Bukit Panjang, Jurong West, Yishun and Woodlands.
In July, flat buyers can look forward to the launch of about 1,000 BTO flats in Bukit Panjang and Jurong West.
Source : Channel NewsAsia – 30 Jun 2010
Mapletree Investments hopes to list two REITs soon
Mapletree Investments, the real estate arm of Temasek Holdings, has said it hopes to list two real estate investment trusts (REITs) soon.
One of them is an industrial REIT with S$1.73 billion in assets to be listed on the Singapore Exchange by the end of the year.
These plans were revealed at the sidelines of Mapletree’s results briefing on Wednesday.
Mapletree Investments has seen its net profit surge 87 per cent on-year to nearly S$400 million in financial year 2009.
It attributed the increase to new developments and revaluation gains from its existing properties.
Despite the tough economic conditions last year, Mapletree Investments said revenue was up by 2 per cent to S$453.5 million in the year.
Wong Mun Hoong, group chief financial officer, Mapletree, said: “We have shown improved performance and grown our assets, local and equity perspective from S$2.5 billion to over S$5 billion now. This is without any additional contribution from our shareholders.”
Over the last four years, the group has grown its real estate assets by almost three times to S$12.9 billion in financial year 2009.
The company, which recently launched its Mapletree Business City, said it is optimistic about growth in the year ahead.
It hopes to list an industrial REIT this year.
Another REIT to be listed is Mapletree Commercial Trust, whose portfolio includes VivoCity.
Mr Wong said: “We are still going through the portfolio and the more assets we put into it, of course it will be larger. But we are now at the stage of thinking of having it as a retail and office REIT…VivoCity alone is worth about S$2 billion, so it will be slightly larger than that. “
Mapletree Investments said it is also considering getting listed in the near future.
Mr Wong said, “At an appropriate time, we will discuss with our board and our shareholders, and whether it is appropriate for us to be listed on the stock exchange.”
Additionally, it hopes to roll out two private funds within two years, focusing on China and Vietnam.
The China-focused fund expects to invest in a wide range of property assets, while the Vietnam fund already has a pipeline of commercial and residential projects.
Source : Channel NewsAsia – 30 Jun 2010
One of them is an industrial REIT with S$1.73 billion in assets to be listed on the Singapore Exchange by the end of the year.
These plans were revealed at the sidelines of Mapletree’s results briefing on Wednesday.
Mapletree Investments has seen its net profit surge 87 per cent on-year to nearly S$400 million in financial year 2009.
It attributed the increase to new developments and revaluation gains from its existing properties.
Despite the tough economic conditions last year, Mapletree Investments said revenue was up by 2 per cent to S$453.5 million in the year.
Wong Mun Hoong, group chief financial officer, Mapletree, said: “We have shown improved performance and grown our assets, local and equity perspective from S$2.5 billion to over S$5 billion now. This is without any additional contribution from our shareholders.”
Over the last four years, the group has grown its real estate assets by almost three times to S$12.9 billion in financial year 2009.
The company, which recently launched its Mapletree Business City, said it is optimistic about growth in the year ahead.
It hopes to list an industrial REIT this year.
Another REIT to be listed is Mapletree Commercial Trust, whose portfolio includes VivoCity.
Mr Wong said: “We are still going through the portfolio and the more assets we put into it, of course it will be larger. But we are now at the stage of thinking of having it as a retail and office REIT…VivoCity alone is worth about S$2 billion, so it will be slightly larger than that. “
Mapletree Investments said it is also considering getting listed in the near future.
Mr Wong said, “At an appropriate time, we will discuss with our board and our shareholders, and whether it is appropriate for us to be listed on the stock exchange.”
Additionally, it hopes to roll out two private funds within two years, focusing on China and Vietnam.
The China-focused fund expects to invest in a wide range of property assets, while the Vietnam fund already has a pipeline of commercial and residential projects.
Source : Channel NewsAsia – 30 Jun 2010
Tuesday, June 29, 2010
Unit at Double Bay Residences sells for $821 psf
It may be three years before Double Bay Residences is completed, but some buyers of the sold-out, 646-unit condominium at Simei Street 4 have already cashed out for a profit.
The 99-year leasehold project was launched in March last year amid much uncertainty in the property market. Units went for as low as $409 psf, with the average selling price in the $600 to $650 psf range. With the property market recovering in 2H2009 and the first four months of this year, prices have escalated, hitting a high of $981 psf in March, when a 538 sq ft unit on the seventh floor was disposed of for $528,000.
The condo, developed jointly by UOL Group and Kheng Leong (a private property arm of banking magnate Wee Cho Yaw and his family), comprises nine 12-storey blocks and five 13-storey blocks. It is just a short walking distance to the Simei MRT station, and Eastpoint Mall is near schools like Changkat Changi Secondary School and ITE College East.
Noelle Lim of PropNex says new developments in the area like the upcoming university and new offices at Changi Business Park yield and capital appreciation. There is also a lot of interest from HDB upgraders who are looking for something affordable.”
With another upcoming private condo launch in the pipeline, homebuyers are expecting prices in the neighbourhood to receive another boost. Last month, the tender for a 99-year leasehold government land parcel of 126,940 sq ft site at Simei Street 3 attracted a record number of 18 bids. Chip Eng Seng Corp won the site with a bid of $152.7 million, or $523 psf per plot ratio (psf ppr), based on a maximum gross floor area of 291,963 sq ft. The proposed development will be a 280-unit condo, and based on the price psf ppr, property consultants expect the breakeven price to be $860 to $900 psf, and the selling price of the project to be around $1,000 psf when it is launched in 1H2011.
At Double Bay Residences, there were three transactions ranging from $812 to $821 psf from May 25 to June 1, according to caveats lodged with URA Realis. A 936 sq ft two bedroom unit on the ninth floor was sold for $760,000, or $812 psf. That’s a 20% gain in slightly over a year for the original owner, who bought it for $630,867, or $674 psf, from the developer last April.
In another block, a 1,001 sq ft two-bedroom apartment on the seventh floor went for $820,000, or $819 psf. The owner had purchased it for $690,378, or $690 psf, in March last year, reaping an 18.8% gain in over a year.
In the same block, another 1,001 sq ft unit on the 12th floor was sold for $821,888, or $821 psf. This represents a 14% gain for the seller, who purchased it for $717,683, or $717 psf, in April last year.
Double Bay Residences’ launch has also lifted the prices of other 99-year leasehold condos in the neighbourhood, with some hitting new highs. Located next door is Simei Green, an 11-year-old executive condo developed by NTUC Choice Homes. A high of $692 psf was achieved in May there, when a 968 sq ft unit on the eighth floor was sold for $670,000. The 602-unit executive condo was completed in 1999. Under HDB rules, executive condos can only be sold to a Singaporean five years after completion, but they can be traded like private condos (allowed to be sold to locals and foreigners) after 10 years.
Further up along Simei Street 4 is another Choice Homes development —the 242-unit private condo Tropical Spring. A 1,335 sq ft unit in one of the blocks was sold for $940,000 ($704 psf), according to a May 3 caveat. The property last changed hands a decade ago for $775,218 ($581 psf). Meanwhile, a 1,926 sq ft unit on the first floor went for $1.5 million, or $779 psf, in April. The property was last transacted at $860,000 ($446 psf) in December 2006, hence the owner saw a 74.4% gain in less than 3½ years.
Another 99-year leasehold project on Simei Street 4 is Modena, a 230-unit private condo developed and completed by OUB Centre nine years ago. The most recent transaction there was for a 1,561 sq ft, eighth-floor unit that was sold for $1.1 million ($705 psf). The previous owner had purchased the unit in 2002 for $$770,000 ($493 psf), hence seeing a 43% appreciation in the last eight years. The highest price achieved to date in terms of price was $752 psf for a 957 sq ft unit on the seventh floor.
Suburban condos located near MRT stations like Double Bay Residences are seeing strong homebuyer interest even though the market has become more subdued in the past month. Property consultants expect prices to hold for now.
The 99-year leasehold project was launched in March last year amid much uncertainty in the property market. Units went for as low as $409 psf, with the average selling price in the $600 to $650 psf range. With the property market recovering in 2H2009 and the first four months of this year, prices have escalated, hitting a high of $981 psf in March, when a 538 sq ft unit on the seventh floor was disposed of for $528,000.
The condo, developed jointly by UOL Group and Kheng Leong (a private property arm of banking magnate Wee Cho Yaw and his family), comprises nine 12-storey blocks and five 13-storey blocks. It is just a short walking distance to the Simei MRT station, and Eastpoint Mall is near schools like Changkat Changi Secondary School and ITE College East.
Noelle Lim of PropNex says new developments in the area like the upcoming university and new offices at Changi Business Park yield and capital appreciation. There is also a lot of interest from HDB upgraders who are looking for something affordable.”
With another upcoming private condo launch in the pipeline, homebuyers are expecting prices in the neighbourhood to receive another boost. Last month, the tender for a 99-year leasehold government land parcel of 126,940 sq ft site at Simei Street 3 attracted a record number of 18 bids. Chip Eng Seng Corp won the site with a bid of $152.7 million, or $523 psf per plot ratio (psf ppr), based on a maximum gross floor area of 291,963 sq ft. The proposed development will be a 280-unit condo, and based on the price psf ppr, property consultants expect the breakeven price to be $860 to $900 psf, and the selling price of the project to be around $1,000 psf when it is launched in 1H2011.
At Double Bay Residences, there were three transactions ranging from $812 to $821 psf from May 25 to June 1, according to caveats lodged with URA Realis. A 936 sq ft two bedroom unit on the ninth floor was sold for $760,000, or $812 psf. That’s a 20% gain in slightly over a year for the original owner, who bought it for $630,867, or $674 psf, from the developer last April.
In another block, a 1,001 sq ft two-bedroom apartment on the seventh floor went for $820,000, or $819 psf. The owner had purchased it for $690,378, or $690 psf, in March last year, reaping an 18.8% gain in over a year.
In the same block, another 1,001 sq ft unit on the 12th floor was sold for $821,888, or $821 psf. This represents a 14% gain for the seller, who purchased it for $717,683, or $717 psf, in April last year.
Double Bay Residences’ launch has also lifted the prices of other 99-year leasehold condos in the neighbourhood, with some hitting new highs. Located next door is Simei Green, an 11-year-old executive condo developed by NTUC Choice Homes. A high of $692 psf was achieved in May there, when a 968 sq ft unit on the eighth floor was sold for $670,000. The 602-unit executive condo was completed in 1999. Under HDB rules, executive condos can only be sold to a Singaporean five years after completion, but they can be traded like private condos (allowed to be sold to locals and foreigners) after 10 years.
Further up along Simei Street 4 is another Choice Homes development —the 242-unit private condo Tropical Spring. A 1,335 sq ft unit in one of the blocks was sold for $940,000 ($704 psf), according to a May 3 caveat. The property last changed hands a decade ago for $775,218 ($581 psf). Meanwhile, a 1,926 sq ft unit on the first floor went for $1.5 million, or $779 psf, in April. The property was last transacted at $860,000 ($446 psf) in December 2006, hence the owner saw a 74.4% gain in less than 3½ years.
Another 99-year leasehold project on Simei Street 4 is Modena, a 230-unit private condo developed and completed by OUB Centre nine years ago. The most recent transaction there was for a 1,561 sq ft, eighth-floor unit that was sold for $1.1 million ($705 psf). The previous owner had purchased the unit in 2002 for $$770,000 ($493 psf), hence seeing a 43% appreciation in the last eight years. The highest price achieved to date in terms of price was $752 psf for a 957 sq ft unit on the seventh floor.
Suburban condos located near MRT stations like Double Bay Residences are seeing strong homebuyer interest even though the market has become more subdued in the past month. Property consultants expect prices to hold for now.
MOM to move main services to Bendemeer Rd building in 2 years’ time
Most of the frontline services of the Manpower Ministry (MOM) will come under one roof at its new S$73m building in Bendemeer Road in about two years’ time. These services are currently spread over three locations.
Officiating at the groundbreaking ceremony for the new building on Tuesday, Minister Gan Kim Yong said that with most of the frontline operations housed under the same roof, MOM will be able to streamline and integrate its operations, delivering seamless service to its customers.
He said: “An employer who would like to submit a manual work permit application would need to go to our Work Pass Services Centre at Tanjong Pagar. But if he would like to enquire about the employment rights of his workers, he would need to meet MOM officers at Havelock office. All these will change by mid-2012. The MOM Bendemeer office will consolidate the services into a centre that serves the wide-ranging needs of our customers.”
This is expected to save time and effort for some 30,000 people that MOM serves every month.
The four-storey Bendemeer building, when ready by mid-2012, will house MOM’s main business divisions: Labour Relations & Workplaces, Occupational Safety & Health and Foreign Manpower Management, as well as the Work Pass Services Centre.
A Customer Service Centre will also be set up to provide services such as consultation and inquiry on employment and work injury compensation matters.
The Workplace Safety & Health Council will also be relocating from the Ministry of National Development Complex to the new building.
However, the MOM headquarters will remain at Havelock Road.
MOM said the move to consolidate its services was also prompted by the fact that the lease for its Kim Seng office and Work Pass Services Centre at Tanjong Pagar Complex will expire.
The Kim Seng office will be returned to the Singapore Land Authority while the Work Pass Services Centre at Tanjong Pagar Complex will be returned to PSA Corporation Limited. The move would also free up space in the central areas.
About 1,100 staff will move to the new building at Bendemeer.
Mr Gan also launched the revamped MOM website – which attracts more than eight million page views every month. It now boasts of new features, one of which is iSubmit – an online portal where customers can enjoy greater convenience and reduce transaction time through online document submissions, 24/7.
The MOM has also set up a Corporate Blog as well as a Facebook Page to further facilitate a two-way communication with its customers.
Source : Channel NewsAsia – 29 Jun 2010
Officiating at the groundbreaking ceremony for the new building on Tuesday, Minister Gan Kim Yong said that with most of the frontline operations housed under the same roof, MOM will be able to streamline and integrate its operations, delivering seamless service to its customers.
He said: “An employer who would like to submit a manual work permit application would need to go to our Work Pass Services Centre at Tanjong Pagar. But if he would like to enquire about the employment rights of his workers, he would need to meet MOM officers at Havelock office. All these will change by mid-2012. The MOM Bendemeer office will consolidate the services into a centre that serves the wide-ranging needs of our customers.”
This is expected to save time and effort for some 30,000 people that MOM serves every month.
The four-storey Bendemeer building, when ready by mid-2012, will house MOM’s main business divisions: Labour Relations & Workplaces, Occupational Safety & Health and Foreign Manpower Management, as well as the Work Pass Services Centre.
A Customer Service Centre will also be set up to provide services such as consultation and inquiry on employment and work injury compensation matters.
The Workplace Safety & Health Council will also be relocating from the Ministry of National Development Complex to the new building.
However, the MOM headquarters will remain at Havelock Road.
MOM said the move to consolidate its services was also prompted by the fact that the lease for its Kim Seng office and Work Pass Services Centre at Tanjong Pagar Complex will expire.
The Kim Seng office will be returned to the Singapore Land Authority while the Work Pass Services Centre at Tanjong Pagar Complex will be returned to PSA Corporation Limited. The move would also free up space in the central areas.
About 1,100 staff will move to the new building at Bendemeer.
Mr Gan also launched the revamped MOM website – which attracts more than eight million page views every month. It now boasts of new features, one of which is iSubmit – an online portal where customers can enjoy greater convenience and reduce transaction time through online document submissions, 24/7.
The MOM has also set up a Corporate Blog as well as a Facebook Page to further facilitate a two-way communication with its customers.
Source : Channel NewsAsia – 29 Jun 2010
Singapore is safest place for business in Asia, says Coface
French trade credit insurer Coface said Singapore is the safest place for business in Asia.
It has upgraded Singapore’s country rating to A1 to better reflect the financial commitments of local corporates to repay their debts. This is up from a rating of A2 during the financial crisis last year.
Ports are seeing more activity as global trade improves.
Experts said corporates are also in a better position to repay their debts and obligations.
At its first Country Risk Conference in Singapore, Coface said corporate non-payments have improved to about S$100 million a month currently.
That’s down from S$376 million a month last year.
Jerome Cazes, CEO, Coface, said: “We decided to upgrade Singapore to A1. A1 being the best in our grades, it means that Singaporean corporates are excellent among corporates. They are highly likely to repay what they owe you. Before the crisis, Singapore was already A1, it was moved to A2 and then A2+ and now A1.”
Coface also upgraded Japan to A1 but left Hong Kong and China on A2 and A3 respectively.
The firm said its A3 rating on China shows that there are fragilities among corporates as a result of expected credit tightening by the Chinese authorities this year.
Coface added that the appetite for risk mitigation tools among Asian corporates has grown.
Its credit covers on Asian companies have risen by 34 per cent from last December to S$58 billion in April this year.
Speaking at the event, Singapore’s Minister for Trade and Industry, Lim Hng Kiang said Singapore is set to facilitate more risk insurance to companies.
He said: “Asia alone will require almost US$8 trillion in infrastructure investments over the next 10 years. Singapore can play a key role in providing political risk insurance to companies engaged in cross border investments in the region.
“We have therefore made efforts to boost capacity and attract expertise in the underwriting of specialised risks including areas such as trade credit and political risks insurance.”
Coface facilitates trade by underwriting credit in global trade deals.
In ASEAN, Coface guarantees S$12.8 billion of supplier credit on 28,000 companies.
Among them, 8,000 Singapore companies accounted for S$4.6 billion.
Source : Channel NewsAsia – 29 Jun 2010
It has upgraded Singapore’s country rating to A1 to better reflect the financial commitments of local corporates to repay their debts. This is up from a rating of A2 during the financial crisis last year.
Ports are seeing more activity as global trade improves.
Experts said corporates are also in a better position to repay their debts and obligations.
At its first Country Risk Conference in Singapore, Coface said corporate non-payments have improved to about S$100 million a month currently.
That’s down from S$376 million a month last year.
Jerome Cazes, CEO, Coface, said: “We decided to upgrade Singapore to A1. A1 being the best in our grades, it means that Singaporean corporates are excellent among corporates. They are highly likely to repay what they owe you. Before the crisis, Singapore was already A1, it was moved to A2 and then A2+ and now A1.”
Coface also upgraded Japan to A1 but left Hong Kong and China on A2 and A3 respectively.
The firm said its A3 rating on China shows that there are fragilities among corporates as a result of expected credit tightening by the Chinese authorities this year.
Coface added that the appetite for risk mitigation tools among Asian corporates has grown.
Its credit covers on Asian companies have risen by 34 per cent from last December to S$58 billion in April this year.
Speaking at the event, Singapore’s Minister for Trade and Industry, Lim Hng Kiang said Singapore is set to facilitate more risk insurance to companies.
He said: “Asia alone will require almost US$8 trillion in infrastructure investments over the next 10 years. Singapore can play a key role in providing political risk insurance to companies engaged in cross border investments in the region.
“We have therefore made efforts to boost capacity and attract expertise in the underwriting of specialised risks including areas such as trade credit and political risks insurance.”
Coface facilitates trade by underwriting credit in global trade deals.
In ASEAN, Coface guarantees S$12.8 billion of supplier credit on 28,000 companies.
Among them, 8,000 Singapore companies accounted for S$4.6 billion.
Source : Channel NewsAsia – 29 Jun 2010
More signs of slowdown in Singapore property market
There’s been more signs of a slowdown in the private property market here in the second quarter.
Property consultant CB Richard Ellis (CBRE) forecasts some 4,000 new homes were sold in the second quarter, lower than the previous quarter’s figure of 4,380.
In the resale market, CBRE estimates some 3,400 to 3,600 resale homes were sold in the second quarter.
If confirmed, that would be 15 to 20 percent lower than the 4,261 resale homes sold in the previous quarter.
Sub-sales numbered around 500, down from 806 in the previous quarter as the market became less bullish.
Sellers were also mindful of the stamp duty payable if they sold their property within a year of purchase.
In addition, the number of HDB upgraders buying private homes slipped.
About 33.7 per cent of new home buyers in the second quarter this year had HDB addresses. That’s lower than the 37.9 per cent of HDB upgraders making up the buyers of new homes in the previous quarter.
CBRE said the reduction could be attributed to a smaller supply of mass-market type of projects being launched in the second quarter.
Nevertheless, CBRE forecasts about 8,300 new homes were sold in the first half of this year. This is about 56.5 per cent of the 14,688 new homes sold for all of last year.
The projects that sold well in the second quarter were mostly in the low- to mid- tier price range projects like the Tree House condominium in Chestnut Avenue and The Minton in Hougang.
CBRE predicts that overall home prices in the second quarter could reflect a rise of between 2 and 3 per cent on-quarter.
Source : Channel NewsAsia – 29 Jun 2010
Property consultant CB Richard Ellis (CBRE) forecasts some 4,000 new homes were sold in the second quarter, lower than the previous quarter’s figure of 4,380.
In the resale market, CBRE estimates some 3,400 to 3,600 resale homes were sold in the second quarter.
If confirmed, that would be 15 to 20 percent lower than the 4,261 resale homes sold in the previous quarter.
Sub-sales numbered around 500, down from 806 in the previous quarter as the market became less bullish.
Sellers were also mindful of the stamp duty payable if they sold their property within a year of purchase.
In addition, the number of HDB upgraders buying private homes slipped.
About 33.7 per cent of new home buyers in the second quarter this year had HDB addresses. That’s lower than the 37.9 per cent of HDB upgraders making up the buyers of new homes in the previous quarter.
CBRE said the reduction could be attributed to a smaller supply of mass-market type of projects being launched in the second quarter.
Nevertheless, CBRE forecasts about 8,300 new homes were sold in the first half of this year. This is about 56.5 per cent of the 14,688 new homes sold for all of last year.
The projects that sold well in the second quarter were mostly in the low- to mid- tier price range projects like the Tree House condominium in Chestnut Avenue and The Minton in Hougang.
CBRE predicts that overall home prices in the second quarter could reflect a rise of between 2 and 3 per cent on-quarter.
Source : Channel NewsAsia – 29 Jun 2010
S’pore emerges as most liveable Asian city in new Global Liveable Cities Index
Singapore has emerged as the most liveable Asian city in a new index. It was ranked third worldwide coming in behind Geneva and Zurich in the Global Liveable Cities Index.
Published by Singapore’s Centre for Liveable Cities, the index looked at 64 cities including 36 from Asia.
When it comes to liveability, Singapore has been ranked up there with some of Europe’s best cities.
In individual rankings, it came in first for domestic security and stability and third for good governance and leadership.
And it ranked 5th for economic vibrancy and quality of life.
But Singapore paled in the area of eco-friendliness and sustainability which looked at things like pollution and environmental initiatives.
Dr Tan Khee Giap, lead researcher, Global Liveable Cities Index, said: “We did very well on water management but this data is not available to most cities. Data which is available in Singapore but not available in most of the 64 cities we studied, will not be used.”
Dr Tan said cities can work with the centre if they want to improve their ranking.
He said: “We do simulations by looking at cities and identify 20 weakest indicators among the more than 100 indicators we have. And hypothetically, if you improve your weakest 20%, how would your ranking be raised? So in that sense, it is more constructive than just doing a ranking which can be a beauty contest.”
These preliminary findings of the index were unveiled at the World Cities Summit on Tuesday.
The Centre for Liveable Cities said the index is still a work in progress.
While the index is comprehensive and covers 135 indicators, it is by no means complete.
Dr Tan said that they may be looking to include more factors such as gender bias.
Other cities, such as Penang and Tatarstan, have also indicated interest in being included in the index.
The index’s framework will be put up for further discussion during a workshop at the summit on Wednesday.
The Centre for Liveable Cities said its index stands out from other current rankings as it takes a more balanced approach.
But the way it’s computed will be discussed and refined further.
Andrew Tan, director, Centre for Liveable Cities, said: “In terms of looking at liveability from a more holistic and balanced framework, I think there are probably very few, if any, such set of indicators around.”
Separately, National Development Minister Mah Bow Tan also proposed a “Learning Network for Cities,” to share the best practices in building a liveable city.
He said: “Cities differ from one another in size and character. They are shaped by their own demographics, cultures and traditions, their history and geography.
“But there are some recurring themes in the sustainable development practices of successful cities. These themes include strong governance, citizen engagement, balancing development and the environment, and international collaborations.”
The push for sustainable urban living comes at a time when cities are growing at an unprecedented rate.
Every day, about 200,000 people move in cities and towns and by 2050, seven in 10 people will live in cities.
This presents challenges for governments to provide access to clean water, affordable housing and good sanitation.
Source : Channel NewsAsia – 29 Jun 2010
Published by Singapore’s Centre for Liveable Cities, the index looked at 64 cities including 36 from Asia.
When it comes to liveability, Singapore has been ranked up there with some of Europe’s best cities.
In individual rankings, it came in first for domestic security and stability and third for good governance and leadership.
And it ranked 5th for economic vibrancy and quality of life.
But Singapore paled in the area of eco-friendliness and sustainability which looked at things like pollution and environmental initiatives.
Dr Tan Khee Giap, lead researcher, Global Liveable Cities Index, said: “We did very well on water management but this data is not available to most cities. Data which is available in Singapore but not available in most of the 64 cities we studied, will not be used.”
Dr Tan said cities can work with the centre if they want to improve their ranking.
He said: “We do simulations by looking at cities and identify 20 weakest indicators among the more than 100 indicators we have. And hypothetically, if you improve your weakest 20%, how would your ranking be raised? So in that sense, it is more constructive than just doing a ranking which can be a beauty contest.”
These preliminary findings of the index were unveiled at the World Cities Summit on Tuesday.
The Centre for Liveable Cities said the index is still a work in progress.
While the index is comprehensive and covers 135 indicators, it is by no means complete.
Dr Tan said that they may be looking to include more factors such as gender bias.
Other cities, such as Penang and Tatarstan, have also indicated interest in being included in the index.
The index’s framework will be put up for further discussion during a workshop at the summit on Wednesday.
The Centre for Liveable Cities said its index stands out from other current rankings as it takes a more balanced approach.
But the way it’s computed will be discussed and refined further.
Andrew Tan, director, Centre for Liveable Cities, said: “In terms of looking at liveability from a more holistic and balanced framework, I think there are probably very few, if any, such set of indicators around.”
Separately, National Development Minister Mah Bow Tan also proposed a “Learning Network for Cities,” to share the best practices in building a liveable city.
He said: “Cities differ from one another in size and character. They are shaped by their own demographics, cultures and traditions, their history and geography.
“But there are some recurring themes in the sustainable development practices of successful cities. These themes include strong governance, citizen engagement, balancing development and the environment, and international collaborations.”
The push for sustainable urban living comes at a time when cities are growing at an unprecedented rate.
Every day, about 200,000 people move in cities and towns and by 2050, seven in 10 people will live in cities.
This presents challenges for governments to provide access to clean water, affordable housing and good sanitation.
Source : Channel NewsAsia – 29 Jun 2010
Private home price hikes expected to soften in Q2
Increases in private home prices are expected to slow down in the second quarter after climbing 5.6 percent in the first quarter.
Colliers International said suburban homes could cost 2 to 3 percent more on average for the next two quarters.
Prices of suburban homes have already surpassed the peak by about 10 percent.
Meanwhile prices in the luxury segment have been projected to grow by up to 20 percent for the whole of 2010.
High-end homes are now just 8 percent off the record prices set in 2008.
And with the softening in price increases, analysts do not expect the government to roll out more measures to cool the property market.
Still, they believe high-end home prices could continue to push upwards, supported by foreign demand.
Properties in Sentosa Cove are among the priciest on the market. But many foreign buyers are still snapping them up, with a unit there being sold to a Chinese national for S$36 million.
With cooling measures implemented in several Asian cities, observers said more foreigners will dip into the Singapore property market.
Colliers International’s director (Research & Advisory), Tay Huey Ying, said: “Foreign buyers are certainly on the comeback. For the first five months alone, based on the caveats lodged, the number of foreign purchasers has already exceeded 55% of what we saw for the whole of last year.
“With the recovery of the economy gaining traction, we expect to see more of them coming into Singapore, especially given the cooling measures that the governments of Asian cities have put in place for their respective markets.
“We see some of those interest flowing into Singapore, and of course the appreciation of the renminbi will also contribute to the growing foreign buying population in the second half of the year.”
Property consultancy CB Richard Ellis estimates that some 4,000 new homes have been sold in the second quarter. That brings the first-half sales figure to 8,300 units, about 57 percent of new homes sold last year.
For the second half of 2010, market watchers expect 1,000 new units to change hands each month.
Despite the drop in sales volume, they said the strong numbers from the first five months of the year will ensure total sales for 2010 keep up with the transactions recorded in 2009.
Colliers International added that there will be fewer property launches as developers are running low on launch ready projects, especially in the mass market segment.
With signs of a slowdown in the property market, some analysts said that the government is unlikely to introduce more anti-speculative measures, unless prices rise sharply.
Chesterton Suntec International’s director and head for research and consultancy, Colin Tan, said: “It all depends on what’s the official price increase in the 2nd quarter. If it’s more than 5%, it’s likely that we may see more cooling measures….(one) of these measures could be lowering the
loan-to-value ratio from 80% to 75% or 70%.”
The Urban Redevelopment Authority (URA) is expected to release the data for Q2 on Thursday.
Source : Channel NewsAsia – 29 Jun 2010
Colliers International said suburban homes could cost 2 to 3 percent more on average for the next two quarters.
Prices of suburban homes have already surpassed the peak by about 10 percent.
Meanwhile prices in the luxury segment have been projected to grow by up to 20 percent for the whole of 2010.
High-end homes are now just 8 percent off the record prices set in 2008.
And with the softening in price increases, analysts do not expect the government to roll out more measures to cool the property market.
Still, they believe high-end home prices could continue to push upwards, supported by foreign demand.
Properties in Sentosa Cove are among the priciest on the market. But many foreign buyers are still snapping them up, with a unit there being sold to a Chinese national for S$36 million.
With cooling measures implemented in several Asian cities, observers said more foreigners will dip into the Singapore property market.
Colliers International’s director (Research & Advisory), Tay Huey Ying, said: “Foreign buyers are certainly on the comeback. For the first five months alone, based on the caveats lodged, the number of foreign purchasers has already exceeded 55% of what we saw for the whole of last year.
“With the recovery of the economy gaining traction, we expect to see more of them coming into Singapore, especially given the cooling measures that the governments of Asian cities have put in place for their respective markets.
“We see some of those interest flowing into Singapore, and of course the appreciation of the renminbi will also contribute to the growing foreign buying population in the second half of the year.”
Property consultancy CB Richard Ellis estimates that some 4,000 new homes have been sold in the second quarter. That brings the first-half sales figure to 8,300 units, about 57 percent of new homes sold last year.
For the second half of 2010, market watchers expect 1,000 new units to change hands each month.
Despite the drop in sales volume, they said the strong numbers from the first five months of the year will ensure total sales for 2010 keep up with the transactions recorded in 2009.
Colliers International added that there will be fewer property launches as developers are running low on launch ready projects, especially in the mass market segment.
With signs of a slowdown in the property market, some analysts said that the government is unlikely to introduce more anti-speculative measures, unless prices rise sharply.
Chesterton Suntec International’s director and head for research and consultancy, Colin Tan, said: “It all depends on what’s the official price increase in the 2nd quarter. If it’s more than 5%, it’s likely that we may see more cooling measures….(one) of these measures could be lowering the
loan-to-value ratio from 80% to 75% or 70%.”
The Urban Redevelopment Authority (URA) is expected to release the data for Q2 on Thursday.
Source : Channel NewsAsia – 29 Jun 2010
Govt launches industrial land sales programme for 2H10
The Ministry of Trade and Industry (MTI) has launched its Industrial Government Land Sales programme for the second half of 2010.
There will be three sites in the Confirmed List and seven sites in the Reserve List, with a total site area of 19.92 hectares.
The three sites on the Confirmed List are at Kaki Bukit Avenue 4, the site at the junction of Yishun Street 23 and Yishun Avenue 9, and the land parcel at the junction of Old Toh Tuck Road and Toh Tuck Avenue.
MTI will also introduce four new sites on the Reserve List, at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62.
In addition, three sites from the first half of the 2010 Reserve List will be carried forward to the second half of the year.
Source : Channel NewsAsia – 29 Jun 2010
There will be three sites in the Confirmed List and seven sites in the Reserve List, with a total site area of 19.92 hectares.
The three sites on the Confirmed List are at Kaki Bukit Avenue 4, the site at the junction of Yishun Street 23 and Yishun Avenue 9, and the land parcel at the junction of Old Toh Tuck Road and Toh Tuck Avenue.
MTI will also introduce four new sites on the Reserve List, at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62.
In addition, three sites from the first half of the 2010 Reserve List will be carried forward to the second half of the year.
Source : Channel NewsAsia – 29 Jun 2010
Monday, June 28, 2010
Industrial rents rise for first time since falling from peak in Q3 2008
Rents for industrial space rose for the first time after falling from its peak in the third quarter of 2008.
According to DTZ Research, average monthly rents of first-storey private industrial space rose 2.6 per cent quarter-on-quarter to S$2 per square foot, while upper-storey space rose 3.2 per cent quarter-on-quarter to S$1.60 per square foot per month.
Rents for hi-tech industrial properties, however, were unchanged at S$3.15 per square foot per month in the second quarter of this year.
According to Chua Chor Hoon, head of DTZ’s Southeast Asia Research, industrial rents are likely to continue to rise but at a slow pace given the stream of private industrial space coming onboard within the next 18 months.
However, hi-tech rents are expected to be largely unchanged due to a large amount of business park developments expected to be completed in the second half of the year.
Source : Channel NewsAsia – 28 Jun 2010
According to DTZ Research, average monthly rents of first-storey private industrial space rose 2.6 per cent quarter-on-quarter to S$2 per square foot, while upper-storey space rose 3.2 per cent quarter-on-quarter to S$1.60 per square foot per month.
Rents for hi-tech industrial properties, however, were unchanged at S$3.15 per square foot per month in the second quarter of this year.
According to Chua Chor Hoon, head of DTZ’s Southeast Asia Research, industrial rents are likely to continue to rise but at a slow pace given the stream of private industrial space coming onboard within the next 18 months.
However, hi-tech rents are expected to be largely unchanged due to a large amount of business park developments expected to be completed in the second half of the year.
Source : Channel NewsAsia – 28 Jun 2010
In love with Sentosa Cove
A house in his neighbourhood was sold for $36 million and sales in the quiet and exclusive Sentosa Cove continue unabated, but shipping magnate Mahesh Iyer has no intentions of selling the bungalow he bought for just $6.8 million three years ago.
“Even if I sold it, where will I find another place like this?” he said.
Indeed, how many homes in Singapore have a yacht docked along a watercourse running in their backyard?
Coral Island, an enclave of 21 homes inside Sentosa Cove, looks like any other upper-middle class Sydney or Melbourne suburb. The absence of front gates – together with the low perimeter walls that separate the closely-built houses – lend the neighbourhood a cosy and relaxed air.
The Maheshes, who hail from Mumbai but have lived in Singapore for 11 years, will become Singapore citizens today.
When Today interviewed Mr Mahesh and his wife, Mala, three years ago, they were just about to move into their 10,000 sq ft bungalow with their two teenage children and one of the few families to move into Sentosa Cove.
“When we first moved in, we tried to order McDonald’s and Pizza Hut, but they told us they don’t deliver to our area. But now they do,” said Mr Mahesh’s daughter, Mithila, 18.
In spite of the property fever that is abuzz, most of their neighbours – including Singaporeans and those who are in banking, shipping and retail – are still living in their homes, Mr Mahesh told MediaCorp.
“We have no intention of selling. This is our home,” said the 42-year-old managing director of Orient Express Lines.
The red-hot prices of Sentosa Cove’s property prices do not surprise him as “supply is so little”. All things considered, Singapore is still “positively cheaper” than other locations like New York and Tokyo, he added.
“We enjoy open spaces and like to walk, so Singapore offers lots of greenery and clean, unpolluted air. Also, it’s safer here,” said Mrs Mahesh, 42.
Waterfront living presents the family with many recreational perks – the Maheshes unwind by taking their yacht out to the Southern Islands.
With more young people in the neighbourhood, Mr Mahesh’s 15-year-old son Murli and his friends relish biking over the island, and heading to Wave House, a surf and party hangout, to chill.
Since the integrated resort opened on the island, more people have moved into Sentosa Cove.
“It is a lot busier, but not in a bad way,” said Murli.
Source : Today – 28 Jun 2010
“Even if I sold it, where will I find another place like this?” he said.
Indeed, how many homes in Singapore have a yacht docked along a watercourse running in their backyard?
Coral Island, an enclave of 21 homes inside Sentosa Cove, looks like any other upper-middle class Sydney or Melbourne suburb. The absence of front gates – together with the low perimeter walls that separate the closely-built houses – lend the neighbourhood a cosy and relaxed air.
The Maheshes, who hail from Mumbai but have lived in Singapore for 11 years, will become Singapore citizens today.
When Today interviewed Mr Mahesh and his wife, Mala, three years ago, they were just about to move into their 10,000 sq ft bungalow with their two teenage children and one of the few families to move into Sentosa Cove.
“When we first moved in, we tried to order McDonald’s and Pizza Hut, but they told us they don’t deliver to our area. But now they do,” said Mr Mahesh’s daughter, Mithila, 18.
In spite of the property fever that is abuzz, most of their neighbours – including Singaporeans and those who are in banking, shipping and retail – are still living in their homes, Mr Mahesh told MediaCorp.
“We have no intention of selling. This is our home,” said the 42-year-old managing director of Orient Express Lines.
The red-hot prices of Sentosa Cove’s property prices do not surprise him as “supply is so little”. All things considered, Singapore is still “positively cheaper” than other locations like New York and Tokyo, he added.
“We enjoy open spaces and like to walk, so Singapore offers lots of greenery and clean, unpolluted air. Also, it’s safer here,” said Mrs Mahesh, 42.
Waterfront living presents the family with many recreational perks – the Maheshes unwind by taking their yacht out to the Southern Islands.
With more young people in the neighbourhood, Mr Mahesh’s 15-year-old son Murli and his friends relish biking over the island, and heading to Wave House, a surf and party hangout, to chill.
Since the integrated resort opened on the island, more people have moved into Sentosa Cove.
“It is a lot busier, but not in a bad way,” said Murli.
Source : Today – 28 Jun 2010
URA launches tender for Clemenceau Ave hotel site
The Urban Redevelopment Authority (URA) has launch a hotel site at the junction of Clemenceau Avenue and Havelock Road for tender.
A developer showed interest in the 99-year site, next to Central Mall, committing to pay at least $40.8 million or $328 per sq ft per plot ratio (psf ppr) for it.
The site is within walking distance to the Singapore River and the popular entertainment, food & beverage and lifestyle outlets at Clarke Quay, Boat Quay and Robertson Walk. It is also a short distance away from the heart of the city’s business and financial centre in Raffles Place and Marina Bay.
The land parcel was made available for sale through the Reserve List system on March 26 2008. It measures 0.55 ha, has a maximum permissible gross floor area of 124,377 sq ft, and can accommodate a development of up to seven storeys high.
The URA estimates that some 195 hotel rooms can be built on the site.
Tender for the site will close on Aug 31, 2010.
A developer showed interest in the 99-year site, next to Central Mall, committing to pay at least $40.8 million or $328 per sq ft per plot ratio (psf ppr) for it.
The site is within walking distance to the Singapore River and the popular entertainment, food & beverage and lifestyle outlets at Clarke Quay, Boat Quay and Robertson Walk. It is also a short distance away from the heart of the city’s business and financial centre in Raffles Place and Marina Bay.
The land parcel was made available for sale through the Reserve List system on March 26 2008. It measures 0.55 ha, has a maximum permissible gross floor area of 124,377 sq ft, and can accommodate a development of up to seven storeys high.
The URA estimates that some 195 hotel rooms can be built on the site.
Tender for the site will close on Aug 31, 2010.
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