Saturday, May 24, 2008

Making of a lively, liveable global city

Source : Straits Times - 24 May 2008

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Kallang Riverside: Beaches and waterfront homes at the edge of city

Over 10 years they will become lifestyle and commercial hubs

GOOD news, Kallang and Paya Lebar: It is your turn to shine.

The two sleepy industrial estates have been identified as Singapore’s next big urban hotspots, as the nation’s land planners draw up blueprints for the next 15 years.

Now colourless and underdeveloped, these towns will burst into full bloom over the next decade. Paya Lebar will be transformed into a thriving commercial and civic centre, while Kallang will become a residential and lifestyle hub with homes and offices set among green parks and sandy beaches.

They are the stars of the Urban Redevelopment Authority’s (URA) highly anticipated Draft Master Plan, which was released by National Development Minister Mah Bow Tan yesterday.

The Master Plan, which guides Singapore’s land use over the next 10 to 15 years, is revised every five years to provide more housing and leisure options and ensure that sufficient space is set aside to support a growing population.

The plan also continues a sustained effort to decentralise and reduce congestion in the Central Business District by building offices all across the island, bringing jobs closer to homes.

Some of the plan’s highlights, such as the new Jurong Lake District and the new MRT lines, have already been revealed.

Other plans were more fully fleshed out yesterday, such as the expansion of the city’s commercial centre, which will double in size to include Marina Bay and Tanjong Pagar, as well as the Beach Road/Ophir-Rochor corridor.

The Government also announced that it has earmarked enough land for 328,200 new homes around the island. More than a third will be in the central region bordered by Bishan, Sentosa, Marine Parade and Queenstown.

‘We have seen significant transformation of our city over the past 10 years,’ said Mr Mah yesterday.

‘The next 10 years can be just as exciting, if not more. Despite the current economic uncertainties, I am optimistic that we can grow from strength to strength.’

Property players were impressed by the new Master Plan, saying it proves Singapore can remain a sustainable global city and a promising investment destination.

Equally importantly, there is ‘a piece of action for every developer, no matter what kind of homes or offices or hotels they build’, said Mr Simon Cheong, chief of developer SC Global and president of the Real Estate Developers’ Association of Singapore.

Source : Straits Times - 24 May 2008

Kallang Riverside: Beaches and waterfront homes at the edge of city

Source : Straits Times - 24 May 2008

The area south of Kallang and Lavender MRT stations will be completely transformed

THE year is 2020. The place: Kallang.

Gone are the unsightly gas tanks and drab industrial factories that once marked this area. Instead, it is sparkling with modern high-rise buildings, cool green parks and beachfront homes.

Families stroll down the tree-lined paths and frolic by the river, which has been cleaned up and beautified with sandy beaches, waterfront hotels and energetic water sports.

In the distance looms the Sports Hub, an impressive cluster of world-class sporting facilities, just minutes away to the south of the area.

This is the new Kallang - at least, the way Singapore’s land planners envision it in 15 years.

Under the latest masterplan revealed by the Urban Redevelopment Authority (URA) yesterday, the area south of Kallang and Lavender MRT stations will be completely transformed.

The URA will do away with the prosaic industrial estate of Kallang Basin, the site of the former Kallang Gasworks and some of Singapore’s oldest public housing estates.

In its place will blossom the glamorous Kallang Riverside, an exclusive residential enclave, thriving commercial hub and nature-rich leisure seat at the edge of the city centre.

When the area takes shape, it could rival Novena and Sentosa as a prime living and working destination, property consultants said yesterday.

Kallang will have the added advantage of lush green parks and shimmering waterways to draw visitors, they added.

‘Kallang is like a hybrid of Marina Bay and Sentosa, unique in that it will have beaches and waterfront homes so close to the city,’ said Mr Chua Yang Liang, head of South-east Asia research at property firm Jones Lang LaSalle.

In all, the URA has set aside 64 hectares of land to be developed in the area - double the size of Raffles Place.

It will retain light industrial buildings that offer jobs in the neighbourhood, but eliminate Kallang’s old, grey, stodgy feel.

Four thousand new waterfront homes will be created on the west side of the river, all to be built by private developers, said the URA.

They will be set in The Green, a halcyon housing suburb arranged around a long strip of grassy park to the west of the Kallang River.

This park will link Lavender MRT station to the waterfront, providing a verdant thoroughfare for residents and visitors alike.

On the river’s east side, a commercial centre will spring up, with space for 400,000 sq m of offices, shops and entertainment venues. The offices here will allow businesses to expand outside the city and are envisaged as cheaper support offices for downtown firms, the URA said.

To accommodate overseas visitors, Kallang Riverside will host 3,000 hotel rooms in a tropical beachfront setting.

The river itself will realise its full potential as a recreational hub.

Already a popular dragon boating and waterskiing spot, it will also offer beachside lagoons for swimming and facilities for new sports such as boating or canoeing.

To top it all off, an extensive network of roads and walkways will be created to improve accessibility.

One is a sheltered walkway that will take pedestrians from Kallang MRT station all the way to the Sports Hub in air-conditioned comfort. This futuristic link will snake through the second storeys of office and entertainment buildings along the way.

A pedestrian bridge will also be constructed across the river, linking the mainly residential west bank to the commercial centre on the east.

But Kallang will not be all newfangled plans and sleek buildings. The URA stressed that care has been taken to preserve the area’s historic identity.

One of the key landmarks is the former Kallang Airport, opened in 1937 as Singapore’s first airport. The Art Deco-style building was once hailed as the ‘gem of the British empire’, with revolutionary facilities such as a circular aerodrome and a large open-air viewing gallery.

Increased air traffic led to the airport being closed in 1955 and replaced by Paya Lebar Airport. The runway was converted into a road and the airfield to a recreational area, but the terminal building still stands as the People’s Association headquarters.

Now, it will be one of the key development sites to be launched for sale in Kallang, along with the accompanying office buildings, former hangar, front lawn and other historic structures.

The blocks, centred around the historic Old Airport Square, will be conserved and adapted for new uses that could include a boutique hotel or a mall, said the URA.

It also intends to redevelop the bus interchange south of Kallang MRT station into high-rise buildings, and is studying whether to integrate the interchange into the new development or relocate it.

Minister for National Development Mah Bow Tan said yesterday that Kallang Riverside will be the next prime area on the edge of the city.

‘Together with the Sports Hub, Kallang Riverside will be a significant sports and lifestyle cluster with a slice of history, supported by attractive beachfront hotels,’ he said.


New office space will be snapped up: Mah

Source : Weekend Today - 24 May 2008

DON’T worry. The looming flood of new office space will be snapped up so Singapore won’t suffer from over-supply, says National Development Minister Mah Bow Tan.

“We take a medium-to-long term view of projections,” said Mr Mah. “All the supply will be taken up.”

As much as 10 million square feet of new office space could be available from 2010 to 2012, said Mr Donald Han, managing director of Cushman and Wakefield in Singapore, citing research from the Urban Redevelopment Agency.

However, annual demand for new office space over the past 10 years was 1.8 million to 2.2 million square feet, Mr Han said.

At the moment, demand is high and supply low. But this is about to change.

Occupancy costs rose to a record last year, boosted by demand from banking and business services and the limited supply of top-tier office space.

High rents prompted the Government to release more land for offices and developers to build as much as 6.5 million square feet of space that will be available in 2010 and 2011.

Despite the slowing economy and high inflation, CapitaCommercial Trust chief executive Lynette Leong said demand for office space remains strong.

“We have tenants who want more space but we can’t give it to them,” said Ms Leong. Most of these are financial institutions looking to expand, she said.

“The big question is really what happens after 2010,” said Cushman’s Mr Han. “I think as long as developers and owners of office projects are realistic in terms of rents, there will be take-up, but the pricing will be on the side of the tenants.”

Landlords may have to settle for office rents as much as 20 per cent lower than the $18 to $20 per square foot currently paid for so-called Prime Grade A office space, Mr Han said. - Bloomberg


System should be based on preferences, not luck

Source : Straits Times - 24 May 2008

I REFER to yesterday’s front-page report about the refined application process for buying new Housing and Development Board (HDB) flats.

While the refinement of the balloting system is overdue, it does not address the fundamental problem. The problem is that the system is based largely on luck when it should be based on expectations or preferences.

Let me illustrate: Whenever there is a new build-to-order (BTO) project, I would check out the sales brochure, and appraise the layout of the different blocks and units, the surrounding amenities and future development of the area.

In the case of Jade @ Yishun Phase I, I had envisioned myself living in a unit on a high floor - that is, eighth floor and above - sipping a cuppa and enjoying the view of the reservoir or Yishun park.

But I was never given a chance at the ballot as my queue number exceeded twice the number of flats available. Subsequently, I was invited to select a flat from among the ones that were rejected. But all the units were on the second floor.

It is true that many applicants are choosy. But it is also a fact that the system can be fine-tuned to accommodate the genuine preferences of applicants.

After all, we are choosing a home, not a shelter.

The HDB should allow applicants to state their preferences for floor levels and block or unit numbers.

The system can then categorise applicants into groups with different balloting numbers. This is not only fairer but also more practical and accurate.

The current balloting system penalises many.

For instance, an applicant who has no preferences and whose sole desire is to obtain a flat as soon as possible, may repeatedly obtain a ballot number that puts him at the tail end. His chances of obtaining a flat anywhere will not improve appreciably despite repeated attempts.

On the other hand, another applicant who has specific preferences may fail in his objective as well. His queue number for flat selection may put him so far back that when his turn comes, he is left with flats in blocks or on floors that are not worth his while shelling out so much money for.

Tan Ai Li (Miss)


Property prices expected to moderate

Source : Straits Times - 24 May 2008

THE Singapore property market has peaked and prices can be expected to moderate in the next two years, the Government said yesterday.

Prices had surged in the past two years because of a supply-demand imbalance, said Mr Ravi Menon, the Second Permanent Secretary of the Ministry of Trade and Industry.

‘The market has been tight across various segments as supply was slow to respond when demand surged in the past couple of years,’ he said yesterday.

However, he felt that the market had already reached its peak.

‘There is supply coming online in the next few years that will offset some of the demand, and expectations are for moderation over the next one or two years.

‘This will provide some relief in terms of cost pressures, which is important when it comes to controlling inflation.’


More space, more buzz in expanded city centre

Source : Straits Times - 24 May 2008

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Kallang, Paya Lebar to be developed as new commercial hubs

Source : Channel NewsAsia - 23 May 2008

Kallang and Paya Lebar will be developed into new commercial hubs, just like the Jurong Lake District. This is part of the government’s Draft Master Plan, which charts land use over the next 10 to 15 years.

Marina Bay and the city centre will continue to be the key commercial node in Singapore. New growth areas like Tanjong Pagar, Beach Road and the Ophir-Rochor corridor will also be developed.

However, more commercial hubs will be needed outside the city, to offer alternatives to businesses and bring jobs closer to homes.

One regional centre will be in Paya Lebar. About 12 hectares of land are available for development, and half a million square metres will be set aside for office, hotel and retail spaces.

At least 1,400 hotel rooms can be built at the regional centre in Paya Lebar

The Urban Redevelopment Authority (URA) said at least 1,400 hotel rooms can be built in the area. And in the near future, residents will be able to shop and dine by the Geylang riverfront.

National Development Minister Mah Bow Tan said: “When the Marina Barrage is completed some time later this year, we will be able to stabilise the water levels in Geylang River.

“Around the Geylang River area, we will be able to integrate very attractive public spaces, malls and so on. The plan is to realign the Geylang River so that it runs through the new commercial developments.”

The proposals will build on the area’s distinctive Malay identity, so there will be a new Geylang Serai Market and Civic Centre. The Civic Centre will house a Community Club, community development offices and even a library.

Bazaars can be staged at the proposed new plaza next to the upcoming Paya Lebar MRT interchange

More activities and bazaars can also be staged at a new plaza, next to the upcoming Paya Lebar MRT interchange.

As for Kallang Riverside, it has been earmarked as the next lifestyle precinct. Urban planners said new parks, waterfront residences and recreational spaces can be developed at the 64-hectare area.


About 600,000 square metres of land will also be devoted to commercial use, with 3,000 new hotel rooms in the pipeline.

About 4,000 waterfront homes have been planned for the area. And the new properties will have a variety of storey heights, stepping down towards the waterfront. This will allow those living further inland to also enjoy the views of the waterfront.

Kallang Riverside

Parts of the historic Kallang Airport will also be conserved and redeveloped into a new entertainment and retail attraction. Also in the works are an integrated second-storey linkway to connect Kallang MRT station to the Old Airport Square and the future Sports Hub.

All in, URA said there are plans to add 327,200 new homes around the island over the next 15 years.

Members of the public can send their feedback on the Draft Master Plan through the URA website.

The Master Plan 2008 will be gazetted after incorporating views from the public at the Draft Master Plan exhibition at the URA Centre. - CNA/ms


Industry players upbeat about plans for 2 new commercial hubs

Source : Channel NewsAsia - 23 May 2008

Industry players are upbeat about the plans for two new commercial hubs, noting that both Kallang and Paya Lebar have great potential for growth, given their close proximity to the city.

However, they said the timing of the various projects will have to be calibrated carefully, so as not to place additional strain on the construction sector.

In the next 15 years, Singapore will have three new commercial hubs. Jurong Lake District, Paya Lebar Central and Kallang Riverside will cost billions of dollars to develop.

According to the National Development Minister, Mah Bow Tan, one or two sites in these new regional centres will be released for sale fairly soon. But market demand will mostly dictate the pace of the developments.

Industry players warn against over-developing and easing plot ratios, which they said could trigger another wave of en-bloc sales.

Simon Cheong, President, Real Estate Developers’ Association of Singapore, said: “We are one of the highest in the world - higher than Dubai, Tokyo, Sydney, New York and Hong Kong - in terms of construction costs. By not increasing the plot ratio, I think the government is giving some relief to the construction industry.”

The government has already announced that it will defer some S$3 billion worth of public sector projects. Other projects may also join the list.

Mr Mah said: “I’ve asked the public agencies to consider deferring more projects if necessary. It makes good sense, (with) construction cost being so high, you won’t get as much value for money.

“It also helps to even out the cycles - when construction demand in other areas goes down, this is one way for us to even out the cycle.”

Some infrastructural works have already started at the Jurong Lake District, which is being transformed into a regional centre for the western part of Singapore. - CNA/ms


Singapore property prices have peaked: MTI

Source : Business Times - 23 May 2008

Singapore’s booming property market has peaked and will continue to moderate over the next two years, the country’s trade ministry said on Friday.

Singapore’s central bank said that while the financial services industry could face some slowdown there was no evidence of a large job cuts.

‘There could be some slowdown, but not major slowdown. Anecdotal evidence shows that while financial institutions are reviewing headcounts and business lines, they are also looking at several areas of growth,’ Monetary Authority of Singapore Deputy Managing Director Ong Chon Tee told a news conference. — REUTERS


Singapore property prices have peaked: MTI

Source : Business Times - 23 May 2008

Singapore’s booming property market has peaked and will continue to moderate over the next two years, the country’s trade ministry said on Friday.

Singapore’s central bank said that while the financial services industry could face some slowdown there was no evidence of a large job cuts.

‘There could be some slowdown, but not major slowdown. Anecdotal evidence shows that while financial institutions are reviewing headcounts and business lines, they are also looking at several areas of growth,’ Monetary Authority of Singapore Deputy Managing Director Ong Chon Tee told a news conference. — REUTERS


Moody’s sees cloudy skies ahead for Singapore Reits

Source : Straits Times - 23 May 2008

They are given a negative outlook because of debt servicing concerns

MORE gloomy news has come in for the property sector, this time for Singapore-listed real estate investment trusts (S-Reits).

They have been stamped with a negative outlook by credit ratings agency Moody’s Investors Service.

While the trusts’ fundamentals remain solid, with their properties enjoying high occupancies and strong demand, Moody’s sees cloudy skies ahead for them in the next 12 to 18 months.

This means it thinks there are negative influences that may lead to a ratings review within that time. These ratings gauge a company’s ability to repay its debts.

Moody’s cited adverse sentiment and tighter liquidity in the market as the reasons for its change in outlook, saying these factors make it tougher for Reits to get funds just when they are most needed.

Several Reits are reaching a stage where they need to refinance their debts, but they are finding it more difficult and expensive to borrow funds, Moody’s said.

Despite this, some trusts have been forced to rely on bank loans to pay for acquisitions they have already committed to, it added.

This is also partly because the unit prices of many trusts have tumbled in recent months, making equity funding - raising money by issuing more units - an unattractive alternative.

‘Because S-Reits retain little cash, the primary source of repayment tends to come from either new debt, asset sales or equity,’ said Moody’s in a report yesterday.

‘When these markets tighten, this financial positioning exposes those Reits that have a high level of short-term debt and lack long-term, committed funding.’

Since January, Moody’s has downgraded one Reit twice, put two others on review for a possible downgrade and issued negative outlooks for another three.

The latest negative outlook rating came in yesterday for CapitaMall Trust, after it said it would pay $840 million to buy The Atrium@Orchard office building.

Moody’s has also given negative outlooks for Suntec Reit and Mapletree Logistics Trust because of financing pressures and high gearing, respectively.

The ratings agency downgraded Allco Commercial Real Estate Investment Trust in January and again in March on refinancing concerns.

CapitaCommercial Trust, which bought the 1 George Street office building for $1.2 billion in March, and Macquarie Meag Prime Reit, which owns stakes in the Wisma Atria and Ngee Ann City malls, are still on review and may be downgraded.

Moody’s also said it was possible that smaller Reits would be merged with their bigger rivals in the coming months.

‘Difficult access to funding and a diminished opportunity to grow will increase the likelihood of smaller Reits being acquired as the year proceeds,’ it said.

FINANCING SQUEEZE

‘Because S-Reits retain little cash, the primary source of repayment tends to come from either new debt, asset sales or equity. When these markets tighten, this exposes those Reits that have a high level of short-term debt and lack long-term funding.’

MOODY’S, on the risks some property trusts are facing


Singapore Reits face credit ratings pressure: Moody’s

Source : Business Times - 23 May 2008

They are affected by tighter conditions for borrowing

SINGAPORE’S real estate investment trusts’ (Reits) credit ratings will face pressure in the next 12 to 18 months because of their rising difficulty in raising funds from debt and equity markets, according to Moody’s Investors Service.

Moody’s has cut or put on review for possible downgrade the ratings of Allco Commercial Real Estate Investment Trust, Macquarie MEAG Prime Reit and CapitaCommercial Trust in the first quarter to reflect growing risk to the debt of the trusts.

‘Tighter conditions for borrowing has adversely affected both the availability and price of credit at a time when a number of Singapore Reits face imminent refinancing needs,’ Moody’s analysts led by Singapore- based Kathleen Lee write in a report.

‘In addition, the depressed unit prices of many trusts have reduced the attractiveness of equity funding.’

Unit prices of Singapore’s Reits have slumped to trade at 15 per cent to 30 per cent of their net- asset values, according to the rating assessor. Mapletree Logistics Trust, which owns industrial buildings, called off a plan to raise as much as $500 million through a rights offer in January because of volatile market conditions.

Singapore’s Reits are also paying more to get bank loans or sell bonds as the commercial mortgage- backed securities market remains shut.

In the first quarter, banks in Singapore raised interest spread by between 0.5 and one percentage point for short-term or refinancing loans, Moody’s said.

‘Many Singapore Reits are relying more heavily than in the past on bank lending,’ the analysts write.

‘Previously, some Singapore Reits had not spent sufficient time cultivating strong bank relationships because, in the past, they had enjoyed easy access to equity and commercial mortgage-backed securities funding.’

CapitaMall Trust and CapitaCommercial, both managed by CapitaLand Ltd, South-east Asia’s biggest developer, have sold six bond deals this year, raising a total of $1 billion at yields ranging from 2.8 per cent and 3.2 per cent, data compiled by Bloomberg show.

Suntec Real Estate Investment Trust, controlled by Hong Kong billionaire Li Ka-shing, raised $270 million from a five-year convertible bond sale in February, paying a 4.25 per cent yield, compared with its average financing cost of 3.1 per cent in 2007, Moody’s said.

Smaller Reits are becoming increasingly likely to be acquired by their bigger rivals in the remainder of the year because of limited access to funding, according to Moody’s.

‘Such a consolidation would leave a sector with the bigger entities having greater financial capacity to expand abroad,’ the analysts say. - Bloomberg


CapitaMall to buy S’pore property for US$619m

Singapore-listed Reit CapitaMall Trust (CMT) said it is buying office development, The Atrium@Orchard, for $839.8 million (US$619 million) from the government through its trustee HSBC Institutional Trust Services.

CMT said the total acquisition cost, including purchase price and fees, would be $850 million and would be funded by a mixture of debt and convertible bonds.

The development, of two office towers of seven and 10 storeys, is located at Singapore’s main shopping belt along Orchard Road, CMT said in a statement on Thursday.

It also has some ground floor retail space and is connected to a major train interchange.

Trading in shares of CMT was halted at 1400 (0600 GMT). — REUTERS

Source : Business Times - 22 May 2008

Paya Lebar: From quiet town to bustling cultural district

Source : Straits Times - 24 May 2008

The Paya Lebar area will become one of S’pore’s major commercial hubs under URA’s new plan

IT’S been the site of plantations and kampungs, witnessed political intrigue and riots, and remained a distinctive neighbourhood cherished by the local Malay community.

Under the latest masterplan announced by the Urban Redevelopment Authority (URA) yesterday, Paya Lebar will take on yet another incarnation as one of Singapore’s new commercial hubs.

Close to 500,000 sq m of office, retail and hotel space will be added to the area, bolstering the 200,000 sq m already available. ‘Over time, we hope to see Paya Lebar Central attracting small and medium-size enterprises, but we’ll have to see how things develop,’ said URA chief executive Cheong Koon Hean.

One of the first major changes to the area will be the new Paya Lebar MRT interchange station, ready by 2010, which will serve the Circle and East-West lines.

Land adjacent to both sides of nearby Tanjong Katong Road will be used for new developments that will feature office, retail and hotel space, including an outdoor pedestrian mall in Geylang Road.

The Geylang River, which is currently more of a canal, will be reconstructed and become a focal point for waterfront dining and shopping.

No date has been announced for the release of these land parcels for development under the Government Land Sale Programme.

But already, some of the neighbourhood’s most iconic institutions are being primed for the big Paya Lebar makeover.

The area is no stranger to change. Geylang Serai was first earmarked for the Malay community by the colonial authorities in 1840, and takes its name from the 19th-century lemon grass plantations here (serai being the Malay word for lemon grass).

Political parties United Malays National Organisation and Barisan Sosialis were once active in the area, and the 1964 racial riots broke out nearby.

In 1965, the flood-prone area’s kampungs began to be replaced with government-built flats. The now-trademark street lighting during Hari Raya was introduced in 1984, and planned developments such as pedestrian malls and arcades were announced by the URA as early as 1994.

Joo Chiat Complex, built in 1983, is expected to complete its current upgrading by August this year.

The new two-storey Geylang Serai market in Changi Road is expected to be completed next year and, at 9,300 sq m, will be twice as big as its famous predecessor.

The original market, which opened in 1964, was known as the Malay Emporium of Singapore and attracted busloads of regional tourists.

Ravaged by a fire in 1999, it was torn down in 2006. But the temporary market in Sims Avenue - which retains the tradition of selling only halal food - is still doing robust business.

But at least one neighbourhood landmark will not be part of the new Paya Lebar Central.

The Malay Village, in Geylang Serai Road, was set up in 1989 to showcase traditional Malay kampung life. Plagued by management changes, the attraction never really took off. But just last month, the current management team announced plans for a $50 million revamp.

The URA confirmed that the current site of the Malay Village, whose lease ends in 2011, will eventually be used for a new civic centre.

But the authorities maintain that the cultural heritage of the neighbourhood will play a key role in its redevelopment.

The proposed civic centre, which may include a library, could also feature a gallery showcasing the area’s history, said the URA. The building’s design may also be inspired by traditional Malay stylistic elements.

New plaza spaces near the Paya Lebar MRT station and the Geylang Serai market will provide more space for the area’s annual Hari Raya bazaar, as well as year-round grassroots events and cultural performances.

Madam Suriana Sabtu, 31, welcomed the prospect of larger bazaars with stalls concentrated in the two new plazas.

Introducing new shopping outlets will add diversity to the retail scene here, she felt. ‘It’s good to attract more people here, not just Malays.’

But if this neighbourhood is indeed about to become sleek and bustling, some hope it won’t be at the expense of its longstanding haphazard charms.

In its current pre-hub incarnation, old-school provision shops and textile stores still line its quiet streets and run-down shopping centres. Colours pop up in every corner, from festive fabrics in bandung-pink and Kickapoo-chartreuse, to the vials of scent with neon labels proclaiming names like Raja Musk and Amber Mecca.

Sipping teh tarik at the temporary Geylang Serai market, which he visits twice a month with his parents, national serviceman Mohd Farhan Abdul Rahman, 22, was candid: The neighbourhood could really use some sprucing up; the Malay Village is ‘too messy’, and he won’t be terribly sad to see it go.

But he hopes some things will remain. ‘Making this place a hub is great. But I hope the atmosphere here can still be retained. It’s still a part of my culture.’


Mega project slated for Johor

Source : Business Times - 23 May 2008

A multi-billion ringgit mixed-development project will be launched in Iskandar Malaysia this year, says a report in The StarBiz.

The project, to be called Airport City or Aeropolis, comes under an associate company of Senai Airport Terminal Services, which is linked to billionaire Syed Mokhtar Al-Bukhary.

The project, on 1,133.11 ha near Senai Airport, will comprise three main components - residential-commercial-hospitality amenities, an air cargo logistic centre and a high-tech park.

The first component will cover 323.74 ha while the other two will occupy 404.68 ha each.

‘The investment in infrastructure - power, water, roads and telecommunications - is estimated at about RM1 billion (S$422 million),’ a source told StarBiz.

The source said that utility providers must be committed in providing uninterrupted supply and services to users in the development area.

The area will be equipped with high-speed broadband for residents and companies to communicate with clients or business associates from all over the globe.

Other facilities will include private medical centres, international schools, hotels and retail malls.

It will be vital to have world-class and uninterrupted utilities and services as the development wants to attract investors from Europe, Japan, Taiwan and the US.

The source said that the company was engaging a consultant from Australia to undertake the master plan study.

The consultant is looking at several well-known high-tech parks in Australia and Taiwan in its study.

‘The high-tech park will be better than the Kulim Hi-Tech Park,’ the source said, adding that unlike the Kedah park, Senai would only engage in research and development activities.

When the master plan study is completed, probably next month, it will be presented to the Johor government and a ground-breaking ceremony should take place towards year-end.


Thursday, May 22, 2008

HDB revises flat application rules

Source : Channel NewsAsia - 22 May 2008

The Housing & Development Board (HDB) has revised the application process for its Build-to-Order (BTO) and Balloting Exercise (BE) modes of sale to address recent increases in non-selection of new HDB flats. The changes will take effect from the May 2008 BTO exercise.

Under the revision, first-timer applicants who reject two chances to select a flat will have their first-timer priorities removed for a one-year period in HDB’s sales exercises.

This means that they will be treated like second-timer applicants, and will no longer be able to ballot for the 90% of publicly available flats which HDB safeguards for first-timers. They will also not be eligible for the Married Child Priority Scheme which gives them two additional tries.

Additional chances for repeatedly unsuccessful first-timers - that is those not invited to select a flat - will be limited to only BTO exercises in non-mature estates. No additional chance will be accorded if they participate in the BE or the Quarterly/Half-Yearly Sales Exercise, where the supply of flats is limited.

The additional chances will be accorded to first-timer applicants who had been unsuccessful twice (that is, starting from the third try), instead of the existing practice where additional chances are only given starting from the fifth try.

HDB said the above measures will encourage applicants to consider their options carefully before participating in an HDB sale exercise. The measures will also help to minimize non-selection of HDB flats by applicants who repeatedly participate in sales exercises and thus divert HDB’s time and resources from those with urgent housing needs.

Recent launches of Build-to-Order flats have seen an overwhelming number of applications, especially those in mature estates, leading to speculation that there is a shortage of new flats. But HDB said, on the contrary, the bulk of applicants often do not end up making a purchase.

The recent Coral Spring project, for instance, saw about 30% of flats not taken up even after all applicants had been invited to book a flat.

HDB said in the last four Build-to-Order exercises, about 50 to 70 percent of applicants rejected their chance to book a flat, citing reasons like location and cost. However, HDB said such information was readily available to applicants when the projects were first announced.

It said it had considered other options - such as raising the administration fee and reverting to the old queue system. However, these measures are not necessarily effective deterrents, and in the case of the latter, may in fact lead to an over-supply.

Reactions to the changes were mixed, with most first-timers cheering the increased priority.

“For a first-time buyer, to get a flat is very important. For second-time buyers, maybe they already have a flat… but (for first-time buyers like us), we are just starting to build a family, so we should have more priority,” said a flat applicant.

For those who have rejected the allocated flats, some said the HDB should consider such applicants on a case-by-case basis.

Eric Chong, a first-time flat buyer, said: “There must be a reason why people want to reject, because they might not like a second-floor flat, or other reasons. I must purchase the one that I like most, because it’s a big investment.”

The new rules kick in with HDB’s latest BTO projects - Compassvale Pearl in Sengkang, and Punggol Sapphire. These will add another 1,485 new flats to the market.

Including upcoming projects in Punggol, Sengkang, Woodlands and Bukit Panjang, to be launched in the second half of this year, the total planned supply for 2008 is 8,000 flats. The number is more than the 6,000 in 2007 and 2,400 in 2006. - CNA/ir


Hopes of property market rebound fading

Source : Business Times - 22 May 2008

Uncertain economy, housing glut fears seen taking toll on developers

HOPES that a slowdown in Singapore’s property market is temporary are fading as an uncertain economic outlook and a looming housing glut threaten to plunge the sector into a prolonged downturn.

Homebuilders such as CapitaLand, Keppel Land and GuocoLand have delayed launching new projects in the moribund market, taking a hit to first-quarter earnings as they hoped for a rebound later this year.

Prospects could be dented further in coming months if smaller developers face financing troubles and have to unload properties at massive discounts. Some have gorged themselves on expensive land acquisitions over the past two years.

With home prices expected to fall 30 to 40 per cent over the next three years, Singapore’s developers could be badly hit and analysts may slash their earnings estimates further.

‘This is the start of a multi-year price correction. Private residential property prices could easily fall by up to 30 per cent by 2010,’ said Barclays Capital economist Leong Wai Ho.

Credit Suisse in a report this month saw rents and property prices falling even more steeply by as much as 40 per cent, and downgraded its investment recommendation for the sector to ‘underweight’.

Warning signs have been flashing as first quarter 2008 sales volumes slumped to the lowest in five years and price growth slowed for two straight quarters, with concerns about a global economic slowdown and the US sub-prime mortgage crisis scaring off potential homebuyers.

Mr Leong said an impending oversupply will worsen the problem, with 66,000 new homes expected to be completed over the next four years, against forecast demand for 50,000 in the same period.

The three-month Singapore Interbank Offered Rate - a benchmark for mortgage loans - has fallen to near record lows below 1.3 per cent, but that may not be enough to revive buyers’ flagging confidence, economists say.

‘Negative real interest rates will be at best a cushion, rather than a boost to housing demand in the near term, although they could lift property demand if and when sentiment turns,’ said Citi analyst Kit Wei Zheng.

‘The worst is yet to come and price cuts are imminent,’ said ABN Amro analyst Fera Wirawan.

BNP Paribas has flagged high financial risks for small developers including Bukit Sembawang, Low Keng Huat and Lian Beng, which have almost all their debts due within a year. Even major builders such as Allgreen, Keppel Land and GuocoLand could face difficulties after steep drops in profit in the last quarter as they launch fewer projects, analysts say.

Slower sales and rising costs could raise developers’ gearing or debt-to-equity ratio to dangerous levels above 70 per cent, up from the industry average of about 62 per cent.

‘We identify three developers, namely Allgreen, GuocoLand and Keppel Land, that could face some pressures on cash flow,’ JPMorgan analyst Christopher Gee said in a report, noting that gearing levels could be pushed up to between 80 and 130 per cent.

The risk of price falls has been heightened by property speculators buying in recent years with little upfront cash, relying on a deferred payment scheme. The government scrapped the scheme last October in a bid to cool down the sector.

Analysts expect speculators will dispose of about 700 units on the cheap this year, and another 2,000 next year, as the properties near completion and instalments are due.

Some developers are still counting on home prices in the city state to rise for at least another year, as they see the market in the middle of an upswing even as the US housing market grapples with its worst downturn since the Great Depression.

‘This is a temporary hiccup. We just had a boom starting in 2006 and it’s usually a seven-year cycle,’ property tycoon Kwek Leng Beng, who heads Singapore’s No 2 developer City Developments, told Reuters. The property market will be supported by greater foreign investments as Singapore sees the completion of two casino projects and the influx of major events such as Formula One races and the Youth Olympics over the next few years, Mr Kwek argued.

But Barclays’ Mr Leong said his bearish scenario, which calls for a near one-third drop in property value, already takes into account any boost resulting from these economic developments. ‘It’s not the worst-case scenario. This is the most likely scenario based on the numbers,’ he said. — Reuters



Singapore luxury homes ninth most expensive globally

Source : Business Times - 22 May 2008

Market supported by jet-setting high net-worth individuals: report

LUXURY homes in Singapore are the second most expensive in Asia and the ninth most expensive in the world.

According to a report by Citi and Knight Frank, luxury home prices here are now US$2,423 per sq ft.

The only place in Asia where they are more expensive is Hong Kong, where they cost US$4,507 psf. Even Tokyo is cheaper than Singapore, coming in third most expensive at US$2,334.

Worldwide, London is the most expensive, followed by Monaco and St Jean Cap Ferrat (France) at US$6,191, US$5,888 and US$5,853 psf respectively.

The global luxury home market is supported by jet-setting high net-worth individuals who think nothing of owning homes on every continent.

As an example, the report describes a Brazilian/Russian family that owns apartments in New York, Geneva, Ibiza and, until recently, Singapore.

The family reportedly spends equal periods at each property, with business and social ties meaning they find it possible to change location for long or short periods with ease.

‘In many ways, none of their properties is regarded as either a primary or secondary residence,’ the report says. ‘In fact, they feel equally at home in all of them.’

The report ranks high net-worth individuals in four categories - those with US$1 million to US$10 million; US$10 million to US$100 million; US$100 million to US$1 billion; and more than US$1 billion.

It found that 15.7 per cent of entry-level high net-worth individuals own four or more homes. In the second, third and fourth (the richest) categories, the respective percentages increased to 23.3, 31.5 and 60 per cent.

Importantly, the report found that in both developed and emerging economies, uncertain economic and political conditions did not affect the growth in numbers of high net-worth individuals, with the growth of their wealth, ’similarly undimmed throughout 2007′.

Citing data from Scorpio Partnership, the report says the most significant growth in 2007 was in the US, where the number grew almost 120,000 to 3.1 million. China had the second-largest increase, with the figure rising almost 46,000 to 373,000 - almost as many as Germany.

‘Despite the credit crunch, extraordinary wealth creation has continued across the global oil and commodity sectors,’ the report says.

An example of the strength of the global luxury home market is that in London the number of £10 million-plus sales in Chelsea, Knightsbridge and Belgravia rose 190 per cent in the six months to January 2008 from the same period a year earlier.

In the US, where prices fell 4.5 per cent over the past year and 4.2 per cent in New York generally, prices for prime Manhattan properties rose 25 per cent.

Knight Frank’s head of residential research Liam Bailey said: ‘Prime locations have held their own. London, New York, Shanghai and others are proving that almost any residential market tied to the global economy maintains confidence among purchasers.’


Landscape design contest for Punggol waterway

Source : Business Times - 22 May 2008

Competition includes design of Punggol Town Park

FOLLOWING its announcement to develop Punggol into a modern waterfront town, HDB is also engaging with the private sector to design the landscaping of the Punggol waterway through a Landscape Masterplan Design Competition for the Waterway.

The competition aims to draw on fresh and innovative ideas for the landscaping of the 4.2 km waterway, and also includes the designing of the Punggol Town Park - a 10.6 ha land that will provide a range of water-based activities and facilities.

Tapping talent: The winner of the competition will receive $300,000, which will form part of the professional fee to be paid to the appointed firm or team

Besides proposing the landscape design development direction of the waterway, entrants to the competition can also actively participate in creating the communal and commercial spatial typologies along the waterway.

Proposals for the competition are expected to introduce new sustainable development concepts and features, in line with HDB’s concept of ‘green living by the waters’.

According to HDB, response to the competition has been good, with 17 firms registered as of yesterday.

Design Link Architects is one such company, and its director Mabel Goh said: ‘We feel that this project is quite innovative. So far, waterfront housing has been largely limited to the East Coast side, but this is an innovative attempt to integrate the water body with public housing.’

Another firm, Atelier Dreiseitl Asia, which has years of experience in landscape architecture and urban hydrology, is evaluating the competition brief and its director Leonard Ng has expressed interest in the project.

‘Right now, it’s a clean slate and it gives you the potential to work out a complete approach to design, being sensitive to all the aspects of an urban environment. If that’s taken into consideration, it can have a cutting edge design that integrates the urban fabric with the waterway.’

The winner of the competition will receive $300,000, which will form part of the professional fee to be paid to the appointed firm or team. The professional fee will be fixed at 3.68 per cent of the total construction costs of the landscape development. In addition, two merit prizes of $50,000 each will be awarded.

The competition is opened to urban planners, architects and landscape architects from May 17 to September 16 and registration closes on July 16.



No takers at all for hotel site in Little India

This is the first time in 7 years a govt land tender has failed to draw any bids: URA

A HOTEL site on top of the Little India MRT station had yet to attract a single offer by the time its tender closed yesterday.

This is the first time in seven years that no bid has come in for a government land site, the Urban Redevelopment Authority (URA) said.


It released the 0.9ha plot at the junction of Race Course Road and Bukit Timah Road for sale in February, touting it as a parcel located within a historic and vibrant tourist destination.

Property consultants offered several reasons for the lack of interest in the site, ranging from its less-than-desirable location in Little India to the cheerless mood prevailing in the property market.

Mr Colin Tan, the head of research and consultancy at Chesterton International, suggested that the Little India site failed to draw bids because of the area’s ‘image problem’ and the crowds.

‘The hotel sector is one of the brightest spots in the market, so I see no other reason the site should have no bids,’ he said.

But Mr Ku Swee Yong, the director of business development and marketing at Savills Singapore, said the problem might lie with ‘budget’ hotel plots.

‘Because of higher construction costs, it’s getting tougher to generate good profits for three- and four-star hotels,’ he said.

Prospects for the hotel industry remain strong, with visitor arrivals expected to rise because of the upcoming Formula One Grand Prix and the integrated resorts.

But even the hotel sector could be affected by the overall gloomy market sentiment, said some experts.

‘The last time we saw no bids for a site was when the market was very weak; it’s usually a sign of poor sentiment,’ said Mr Nicholas Mak, the director of research and consultancy at Knight Frank.

‘The overall property market is getting more uncertain, and developers or investors may think that it’s too risky to commit right now.’

He also suggested that the market could be saturated with hotel sites. Since January last year, the URA has sold five parcels and made seven more available for applications from interested parties.

The Little India site is one of two hotel plots on the URA’s ‘confirmed list’ of land sales for the first half of this year, which means the site was launched for outright sale rather than put on the ‘reserve list’ for developers to indicate interest.

All eyes are now on the other hotel site on the confirmed list, at Balestier Road, which was launched for outright sale in March. The tender closes on July 16.

Market watchers said the lack of response to yesterday’s tender could lead the URA to put fewer sites on the confirmed list next month, when it announces its land sales programme for the rest of the year.

The last time a URA site closed without any bids was in February 2001, when two residential plots in Lengkong Empat and Geylang drew no interest at all.

Source : Straits Times - 22 May 2008


Leisure Island

Source : Straits Times - 22 May 2008

NOTHING to do on the weekends in Singapore? Not if its city planners can help it.

Yesterday, the Urban Redevelopment Authority (URA) revealed an ambitious blueprint to make Singapore a great place to work, live and have fun in.

Under its Leisure Plan, 900ha of new park space and 260km of park connectors will be added in the next 10 to 15 years.


The plan also includes an uninterrupted 150km round-island cycling and jogging route.

‘I think we may be the first and only people in the world to be able to take a walk, relatively easily, around our whole country,’ said Minister for National Development Mah Bow Tan, unveiling the plan at the Singapore Institute of Architects’ 47th annual dinner last night.

He added that Singaporeans need not worry that higher economic and population growth will come at the expense of space and greenery.

The URA plan also earmarks six areas to be developed into leisure hotspots.

Five have been previously announced. Last night, Mr Mah added the sixth - the Kranji and Lim Chu Kang areas which will become a ‘countryside’ retreat for urban dwellers.

Boating activities such as kayaking will be permitted at the Kranji Reservoir and new parkland and nature trails will allow better access to the Kranji Marshes and the wetlands in Sungei Buloh.

A final plank in the plan is to inject more buzz into the city, especially at night. The URA is relooking everything from night lighting to street fixtures, and hopes to kick-start these after-dark activities with a new Night Festival in July.

The Leisure Plan is part of a bigger blueprint, the 2008 URA Draft Master Plan, which will be revealed tomorrow.

For ideas, URA planners combed the island looking for leisure opportunities for the young and old, said URA chief executive officer Cheong Koon Hean.

‘We want to ensure that even as we continue to grow, we can still enjoy a very good quality of life,’ she said.


Why massive Tekka Centre needs 16 months to upgrade

Source : Straits Times - 22 May 2008

I REFER to Mr David Soh’s letter ‘Why so long for simple repair jobs?’ (May 9). In every project under the Hawker Centres Upgrading Programme, the National Environment Agency engages professional building consultants to undertake project management.

For Tekka Centre, our consultant had determined that 16 months was necessary for the upgrading in view of the centre’s size and the scope of work needed. Tekka Centre is one of the biggest hawker centres in Singapore with more than 550 hawker stalls and HDB shops.

The project was contracted out with the upgrading period stipulated in the tender. Apart from the work mentioned by Mr Soh, the upgrading encompasses reconfiguring the market section and building bigger slab stalls, upgrading toilet facilities and expanding their capacity, building a new central dishwashing and hand-washing area, replacing floor tiles, wall tiles and sanitary pipes, electrical rewiring, enlarging the existing bin centre, upgrading the lift system and more. Structural works such as piling and beam-strengthening works are also required.

This being so, we seek the public’s patience and understanding. The public can patronise the temporary centre located between Northumberland Road and Race Course Road for their marketing and dining needs.

We assure Mr Soh that the agency will ensure an optimal timeline for each upgrading project, and we thank him for his feedback.

Chan Wai San (Ms)
Director, Hawkers Department, National Environment Agency

No bids received for Race Course Rd/ Bukit Timah Rd hotel site

The Urban Redevelopment Authority (URA) has said it did not receive any bids for the hotel site at Race Course Road/Bukit Timah Road when the tender closed at noon on Wednesday.

URA added that it will announce its plans for the site after a decision has been made.

URA launched the hotel site for sale by public tender in February this year.

It was one of the two hotel sites to be sold through the confirmed list under the Government Land Sales Programme for the first half of this year.

URA said the site is located above the Little India MRT station and has an area of about 0.9 hectare and a maximum permissible gross floor area of 31,440 square metres. - CNA/ms

Source : Channel NewsAsia - 21 May 2008

Leisure Plan drawn up to enhance recreational options in Singapore

Source : Channel NewsAsia - 21 May 2008

In the near future, one will be able to stroll, jog or cycle around the whole of Singapore just by following an extensive route.

The Urban Redevelopment Authority (URA) is developing a 150-kilometre round-island path as part of its Leisure Plan.

Overview of Gardens by the Bay site

National Development Minister Mah Bow Tan revealed details of new recreational options at the Architectural Design Awards 2008 ceremony on Wednesday.

The round-island route will be developed over the next 10 to 15 years, but up to two-thirds of the path – which includes the Punggol Coastal Promenade – could be ready in just five years.

At three and a half times the length of the Pan-Island Expressway (PIE), the route will comprise existing and new park connectors, waterfront promenades and other trails.

It will also cover leisure destinations at the Marina Bay, Changi Point and the upcoming Jurong Lake District.

Mr Mah said: “We may be the first and only people in the world to be able to take a relatively easy walk around our whole country. You can spend a morning with your family at East Coast Park, enjoy the sea breeze at the new coastal promenades at Punggol and Woodlands, or take an evening stroll through our hilltops at the Southern Ridges.”

Besides visiting the rustic countryside and farms at Lim Chu Kang, the more adventurous will also be able to trek along new nature trails to the 17-hectare Kranji Marshes.

Furthermore, the National Parks Board will be launching a Wetland Master Plan in the Sungei Buloh area to promote “bio-learning” activities.

Cheong Koon Hean, CEO of URA, said: “We already have the very beautiful Sungei Buloh Wetland Reserve, which we will enhance. We will add 21 hectares of park land around it to protect the ecology of the entire system.

“The agri-tainment sites have been introduced because a lot of people just want to get away and experience farmstays, so we are creating opportunities to do that. Some sites will be tendered out for agri-tainment use.”

Singaporeans can also look forward to more quiet retreats, which will be made available with 900 hectares of new green spaces, including the new Gardens by the Bay and the Diary Farm Nature Park.

Authorities also plan to triple the existing park connector network from the current 100 kilometres to 360 kilometres within 15 years.

Waterways like the one in Bukit Chermin will be made more accessible. At the same time, urban planners are considering converting some of the black-and-white bungalows there into boutique hotels or spas.

The URA has also come up with ideas to transform Singapore into a 24/7 city. One way is to create more lifestyle hotspots like the one at Dempsey Hill. In the years ahead, new chill-out places will be found at the Lakeside Village in Jurong and Kallang Riverside.

Some other leisure plans will be happening much sooner this year. Come July, the National Heritage Board is holding a Night Festival at the Bras Basah area, followed by the Singapore Tourism Board’s Singapore River Festival in September.

Besides hosting more programmes, URA said improvements like better night-lighting, new street furniture and more attractive activity spaces will be introduced to create a better ambience for people to enjoy the nightlife in Singapore. - CNA/so


Government to spend S$30m on Punggol Waterfront Town

Source : Channel NewsAsia - 21 May 2008


The government will spend about S$30 million to develop key features of the new Punggol Waterfront Town.

Most of that amount - S$25 million - will go towards the man-made Punggol Waterway, which will be constructed next year.

The waterway will be the focal point of activities, according to plans by the Housing and Development Board (HDB).

Professional planners have been invited to submit designs and concepts to develop the areas along the waterway.

Punggol residents have a lot to look forward to. They will soon have plenty of activities that are centred around a new 4.2-kilometre waterway.

The waterway will connect Sungei Serangoon and Sungei Punggol. It will snake through various areas, including the proposed Town Centre - bringing water and water activities closer to residents.

Dr Johnny Wong, Deputy Director, Building Technology Department, HDB, said: “We are hoping that it will promote activities like canoeing, some passive walking along the waterways, and even alfresco dining. So we are quite excited about this project.”

Architects, engineers and landscape planners have been invited to enter the Punggol Waterway Landscape Masterplan Design Competition. Interested groups were brought to the sites of some of the developments - including the waterway - on Wednesday.

The waterway will be built mostly on vacant land, so that there will be minimal disruption to the surrounding areas.

Mabel Goh, Director, Design Link Architects, said: “We have done quite a fair bit of public housing and it’s not new to us. The exciting thing is to redesign public housing with spaces, balconies overlooking the waterways and even private space to integrate with the waterways…”

Leonard Ng, Landscape Architect, Atelier Dreiseitl Asia, said: “It has to be considered in the urban context. We have to relate it to the buildings around it, to the open spaces, the parks around, and how the edge of the river can connect the people and engage the people.

“And so the challenge would be how to carry that out while still being mindful about the safety and security aspects.”

The winner of the competition will be announced in November and stands to win S$300,000 and will work with the HDB to develop the Punggol area.

Punggol Town will have 96,000 housing units eventually, with 60 percent allocated for public housing and the rest for private housing.

The residential areas will also house eco-friendly features and be a showcase for green technology. - CNA/ms


New foreign brands to set up shop at 313@Somerset in 2009

Source : Channel NewsAsia - 21 May 2008

Some popular international brands will come to Singapore by the end of 2009 when 313@Somerset opens its doors to shoppers for the first time.

The new mall opposite Centrepoint is being developed by Australia’s Lend Lease, which had put in a record bid for the site.

Now, six months into its leasing campaign, Lend Lease said that interest from both local and foreign retailers has been overwhelming. Work is still in progress, but about 200 local and foreign brands are waiting to call the place home.

Lend Lease is not revealing just yet about who are coming to town, but it said the names will be big.

Mike Kenderes, Development Director, Lend Lease Retail, said: “We are in very close discussions with major fashion retailers in the mid-range offer. We’re also looking to secure some international brands that are new to this market - which are taking a little longer.”

Lend Lease is putting together a strong fashion mix in the mid to upper mid-range price bracket. It hopes this will go some way in turning the spotlight onto the Somerset stretch, which has in recent months fallen behind new malls down the road.

Mr Kenderes continued: “There’s three shopping centres being developed at the moment. We’re excited as there will be a new critical mass at this end of Somerset Road.

“There are key department stores already existing - John Little, Marks & Spencer, Robinsons. We think they anchor the area and that’s why our offer is very much suited around speciality retail.”

Lend Lease is not planning to have an anchor tenant. Instead, it said that its largest space will go to a ‘food loft’. And already, four of Singapore’s main food outlet operators are competing to run it.

Lend Lease said that despite the number of recent retail developments here, Singapore still has the capacity for more.

Lend Lease also owns and manages Parkway Parade and said that it is open to looking at more opportunities around the island. - CNA/vm


Genting says S’pore IR costs under control

Source : Business Times - 21 May 2008

Malaysian casino operator Genting does not expect further cost over-runs for the integrated resort (IR) it is building on Singapore’s resort island of Sentosa, the company’s chief executive said on Wednesday.

Resorts World at Sentosa, a wholly owned unit of the Singapore-listed arm, Genting International, is building the IR at a cost of up to $6 billion (US$4.4 billion), about $800 million, or 15 per cent, above its initial budget, due mainly to higher construction expenses.

‘At this point, we are staying at $6 billion. Concerns about cost over-runs for the project are unsubstantiated,’ Lim Kok Thay, Genting’s chairman and CEO, said on the sidelines of a tech conference.

‘Costs are under control despite high oil prices,’ he added.

Genting unveiled the higher price tag for the casino project last November and said it would cover the additional expenses through project financing at the resort level.

The raised budget covers the cost of six new attractions as well as improvements to transportation and access infrastructure, with higher building costs accounting for half of the increase.

Mr Lim said there was no need to raise any more funds for the project.

‘The recent financing we announced has catered for the increase in construction costs. All the financing are in place, there is no need for further financing,’ he said.

In April, Resorts World at Sentosa said it had obtained a $4 billion syndicated loan to fund the IR project.

In December last year, Genting International and sister company Star Cruises won the right to build and operate Singapore’s second IR resort.

The 49-hectare project will include a Universal Studios theme park, a giant oceanarium with 700,000 aquatic creatures, and six hotels with more than 1,800 rooms. The resort is scheduled to be completed in 2010.

Singapore’s first IR site, a 20.6-hectare piece of waterfront land at Marina Bay near the financial district, was awarded to Las Vegas Sands in May 2006.

The republic legalised casino gaming in 2005 as part of its ambitious plans to double visitor arrivals to 17 million by 2015. — REUTERS

Wednesday, May 21, 2008

Banks see plunge in home prices in next two years

Source : Straits Times - 21 May 2008

New homes, rising vacancy rates, unsold condos and fewer rental deals cited as reasons

THE slowdown in the Singapore housing market has prompted two banks to predict a dramatic plunge in home values in the next two years.

In two starkly bearish reports, Barclays Capital and Credit Suisse have forecast drops of up to 40 per cent in home rents and prices, as demand and supply dynamics move in favour of buyers.

The reports, issued in the last two weeks, pointed to the malign cocktail of a flood of new homes coming on the market, climbing vacancy rates, a rising number of unsold condominiums and fewer rental transactions.

They also raised concerns about the possible dumping of units by speculators. Barclays said that should this happen, private home prices could slide 28 per cent to 30 per cent by 2010.

Credit Suisse predicted a possible 40 per cent drop in rents and prices. Its analysis showed that sub-sale prices recently started to dip at several developments.

Both banks also noted that developers were now more generous with price cuts, stamp duty rebates and agent commissions in an effort to move units. They warned that smaller developers were likely to ‘break’ first.

‘Just six months ago, City Developments and a few others gave zero commissions to agents,’ Credit Suisse said. By March, most were giving 1 per cent to 5 per cent, an increase of three to 10 times in just six months.

‘When Singaporean developers start to reach out to agents with higher commissions, you know they are feeling the pain,’ it said.

The pain is coming from slower growth in home rents and prices, as the effects of the United States sub-prime mortgage crisis takes its toll on market sentiment in Singapore.

Private home prices rose a smaller-than-forecast 3.7 per cent in the first quarter. Even then, Barclays analysts said this could have been boosted by a handful of high-priced transactions and ‘may not reflect the depth of pessimism in the market’.

Sales and launches of new homes also fell sharply last month, extending the slump.

Mr Colin Tan, the head of research and consultancy at Chesterton International, agreed with the Barclays report about a correction in prices.

As more new homes are completed over the next few years, he said, rents will feel the pressure and prices will start to fall.

Not all property analysts, however, have such a gloomy take on the housing sector.

Kim Eng analyst Wilson Liew believes the oversupply situation may be overstated. While there are 32,000 units being built and 42,000 more in the pipeline, current market sentiment could help slow the rate at which the planned units come onstream.

‘It is likely that most of these units would be deferred indefinitely until sentiment returns or when construction resources ease,’ he said.

Developers could also keep lands in their landbank rather than develop them if there is no demand, suggested Macquarie Securities’ head of Asean research, Mr Soong Tuck Yin.

Both he and Mr Liew believe the upcoming integrated resorts will give Singapore a boost and, while there may be a temporary weakness, home prices are unlikely to collapse.

Mr Soong also said developers had stronger balance sheets now than in previous market troughs, and the current low interest rates and high inflation could lead people to buy properties as a hedge against inflation.

The Credit Suisse report, however, said negative real interest rates - often touted as a driver for property purchases - had not historically helped home sales. It also said that even with construction delays, actual completions had usually come in higher than forecast.

Seletar’s colonial houses in demand as bulldozers roll in

Source : Straits Times - 21 May 2008

Rentals have soared for the 131 units that will remain even after area’s development as aerospace hub

WHEN it was a verdant oasis of calm and tranquillity, not many people wanted to live in the former Seletar airbase.

But now that the bulldozers have rolled in to turn the area into Singapore’s key aerospace hub, monthly rentals for the colonial houses sitting on streets with quaintly English names have shot through the roof.

TRANQUIL ABODE: Residents have so far been paying under $3,000 for such homes. — ST PHOTO: FRANCIS ONG

In some cases, they have just about doubled.

Never mind that the din and dust will be a fixture until 2018, when the 300ha Seletar Aerospace Park - including the existing airport and runway - is ready.

The higher rents reflect the current market conditions, said a spokesman for the Singapore Land Authority (SLA), in response to queries from The Straits Times.

Of the 378 Seletar houses, 204 will be retained, and 174 demolished. Of those to be left standing, 131 will be retained as homes, and the remaining 73 redeveloped for non-residential use - for example, to house aerospace training schools and food and beverage outlets.

Two-year leases for the properties have all either expired or will expire soon.

Those living in the units to be demolished or redeveloped must move out by year-end.

If their leases expire before then, these residents have the option to extend them for these last few months - but they will have to pay between 16 and 33 per cent more in rent.

The SLA spokesman said: ‘For each of such renewals, the rental rates will have to be revised to reflect market rates, as advised by professional valuers.’

Islandwide, rental rates jumped 69 per cent between the first quarter of 2006 and the first quarter of this year, she noted.

Rental hikes for the units unaffected by the development are a lot steeper - more than 100 per cent in some cases, residents said.

The SLA did not provide data on this, but said the increases were ’still lower than the bids which we have received for the units’.

As and when leases have expired for units whose residents have opted against renewing them, the properties have been put up for public bidding.

In one such case, a two-storey terrace house recently attracted a bid of $5,000 - more than three times the recommended rent of $1,500 set by the SLA, its spokesman said.

Seletar residents, some of whom have lived there for more than 20 years, paying under $3,000 for a house with a garden, have been taking the impending changes in their stride.

But they are sorry to leave behind what they admit is a great deal.

Ms Edith Kraayeveld, 39, an airline marketing and sales manager and mother of two preschool children, pays $2,650 a month for her three-bedroom house with a garden.

She said: ‘Yes, we realise we have been incredibly lucky all these years. But it is not quite our fault that nobody wanted to live here. We just managed to find the deal and saw the opportunity.’

She and her husband, the managing director of a sports company, have to move by year-end, after 14 years there.

She said: ‘It is a great community of people who live here and everyone is so upset about leaving. I have two golden retrievers and two young children who have grown up amid the lush greenery and fruit trees.

‘If need be, we will move across the Causeway after moving out of Seletar.’

Thakral to give up electronics to focus on real estate

Repositioning of its principal business will be subject to shareholders’ nod

AFTER years of suffering heavy losses, dealing with growing competition and fighting an uphill battle against rampant piracy, Thakral Corp appears to have finally thrown in the towel.

In a surprise announcement posted on the Singapore Exchange last night, the company said that it plans to move away from its principal business of consumer electronics distribution, and move into the real estate industry instead.

Its board of directors, which met yesterday, will look to tap the ’significant expertise and deal flow of its key shareholders, who have extensive expertise in real estate and infrastructure not only regionally, but also globally’.

The repositioning of Thakral’s principal business will be subject to shareholders’ approval.

Without elaborating, Thakral added that going into real estate and related infrastructure investment in the pan-Asian region ‘is expected to offer attractive returns to shareholders in the foreseeable future’.

It was also decided that Thakral could divest those assets that would no longer form part of the company’s core activities, including listed securities it currently holds.

While it prepares for this major transition, Thakral assured that its high-end consumer electronics distribution business would continue as normal. The board promised to achieve the best value possible for the company’s shareholders in divesting the core business.

Efforts to reach Thakral’s management at their Upper Circular Road office were unsuccessful.

In the issued statement, the Thakral board said that it had appointed a committee of directors - comprising vice-chairman Natarajan Subramaniam and non-executive directors Lee Ying Cheun and Andrew James Schwartz - to submit proposals and recommendations on how best to move forward with the proposed change of business.

An extraordinary general meeting of shareholders will be convened, although no time frame was specified.

‘The board believes that the current volatile capital market conditions could throw up significant opportunities which could potentially deliver attractive returns to shareholders,’ said the statement.

Thakral’s latest financial results for the three months ending March 31, 2008 saw it suffer a net loss attributable to shareholders of $535,000 versus a net profit of $217,000 a year ago. This is despite its revenue for the first quarter rising 85 per cent to $88.9 million.

In 2006, Thakral announced its exit from the flagging home entertainment business segment, which was continually held hostage to piracy in China.

And back in 1999, the company was badly hit by a $220 million loss that was then largely blamed on over-hedging against the Japanese yen.

Source : Business Times - 21 May 2008