Developers must take own initiatives to go green: Leng Joo

Source : Business Times - 2 Aug 2008

CDL MD says it’s not sustainable to have long-term govt subsidies

Depending on the government for more subsidies to encourage developers to go green is not sustainable, said City Developments managing director Kwek Leng Joo.

‘I don’t think it’s sustainable to look to the government for grants and subsidies on a long-term basis,’ said Mr Kwek, who was speaking to reporters on the sidelines of the memorandum of understanding signed between the company and NUS School of Design and Environment’s Master of Science, Environmental Management (MEM) programme to work on green solutions for the building sector.

‘We have to make our own plans and it’s not a one-way street,’ he said, adding that while the returns may not be ‘direct and apparent’ now, green buildings will become more attractive to buyers who can lower their utility bills through green features such as photovoltaic cells when their prices fall over time.

City Developments currently audits the green practices of its contractors and those who score better stand a higher chance to bid for tenders for subsequent projects.

But Mr Kwek added that smaller developers are less likely to be able to influence construction and architectural firms to go green because they have little influence over the supply chain.

‘Perhaps if you are a very small developer. . . then you will not be in the position to influence, to help direct the other players in the whole value chain,’ said Mr Kwek. ‘But we can take up that role and we’ve been doing it.’

During the event, Tommy Koh, who chairs the MEM advisory committee, said he had proposed to the government in 1992 about the potential of solar energy, but the idea was shot down because it was not seen to be commercially viable.

‘How wrong they are,’ said Prof Koh, adding that Singapore is just at the beginning of its ‘green journey’.

‘We’ve not done a bad job in balancing the need to provide adequate housing for 4.6 million people and having room for garden, parks and nature,’ he said.

‘But we’ve also done some bad things. We’ve largely destroyed our mangrove forest. We need to reclaim land because we need additional space but in the process, we’ve destroyed most of our coral reefs,’ he added.

Balcony size: The bigger, the better

Source : Straits Times - 2 Aug 2008

If recent condominium project launches are anything to go by, expansive balconies are hot among homebuyers

ALL it took was one look at the big balcony spanning the living room and the master bedroom, and the deal was sealed for Mrs Jean Hong.

The 47-year-old company director bought a three-bedroom unit for close to $1,500 per square foot in the Parc Centennial condominium in Kampong Java Road three months ago and is still gushing about the large balcony to her friends.

BED AND BALCONY (left): Among the features of the 51-unit Parc Centennial condo is a balcony that spans from the bedroom to the living room (not shown). Located in Kampong Java Road, the project is expected to be completed in 2011. — PHOTOS: EL DEVELOPMENT, CITY DEVELOPMENTS LIMITED

She is planning to rent it out and feels expatriates will appreciate the balcony space.

‘There is enough space to put some chairs and a small table in the balcony, so that the tenant is able to have a drink or read there without cluttering the place unnecessarily,’ she said.

Parc Centennial is among a number of new condos that are bucking the trend of developments from the 1990s, which had balconies that were tiny corners with just standing space or irregular-shaped ones that nobody used.

In contrast, some of the new private housing projects today have large balconies that even extend to the master bedroom or outside the lift.

SOAK UP THE SCENERY: Cliveden at Grange Road, which offers three-, four- and five-bedroom units, comes with panoramic views of Orchard Road which can be enjoyed from the expensive balconies.

Projects with generous balconies include completed ones like Residences@Evelyn in Evelyn Road as well as those nearing completion such as Parc Centennial, JIA at 65 Wilkie Road, Lucida in Suffolk Road, Parc Mackenzie in Mackenzie Road and Cliveden at Grange in Grange Road.

Developers say that buyers prefer units with large balconies because the open space lets in natural light and ventilation and can be used as an alfresco dining area or just an outdoor area to relax in.

EL Development, the developer behind Parc Centennial, designed its units with large balconies because of the expansive views offered at the site: There are no tall buildings nearby so residents have good views of the surrounding greenery.

The balcony also serves to screen off the afternoon sun for the west-facing units.

GREEN VIEWS: Located off Bukit Timah Road, the Shelford Suites condominium project has 77 units, all of which look out to lush greenery. Its targeted completion date is 2011.

Similarly for developer City Developments Limited (CDL), the decision to incorporate balconies into the projects depends on their location.

‘Typically, buyers would like a balcony where there are good views of the surroundings, such as the lush greenery which residents of Shelford Suites or Cliveden at Grange can enjoy, or if there are waterfront views that can be appreciated, which is the case with One Shenton and The Oceanfront@Sentosa Cove,’ said Mr Chia Ngiang Hong, group general manager of CDL.

Larger balconies are also good for homeowners to keep in touch with their surroundings, says developer SDB. Its first local project here, JIA, is only seven storeys high so owners get to enjoy the greenery nearby from their balconies.

The developer also designed the balconies with enough depth to put a coffee table.

‘Enjoying the outdoors from the balcony means being able to have a relaxing cup of tea comfortably seated,’ said Ms Leon Kim Yoke, senior manager of SDB Properties.

The developer has also included ‘fold and slide’ screens at the balconies to provide privacy when required. They double as safety features.

Their two-bedroom units even have the lift opening directly into the balcony.

‘Large balconies are targeted at those who enjoy the outdoors and do not want to be confined to indoor spaces only. Anyone downsizing from a landed property to an apartment would particularly appreciate such features,’ Ms Kim Yoke added.

Mrs Hong, who lives in Serangoon Gardens, agrees.

‘In my house, I can take a walk around my garden or koi pond, but in a condo, you have only your bedrooms and living room to turn to, so having a balcony helps.

‘Even some HDB flats are getting their own balconies too nowadays. With large balconies, I am able to get higher rents for my unit,’ she said.

About 70 to 80 per cent of expatriates opt for large balconies, according to Mr John Koh, 60, associate director of Huttons real estate group.

‘Singaporeans are quite kiasu. Some think it is a waste of space and don’t want to pay for it,’ he said.

Senior executive Kelvin Ho, who bought a flat in Parc Mackenzie, begged to differ.

‘I don’t understand why people don’t want balconies. I like the open air, space, lights, breeze and view. I think it is usable space,’ he said.

It is opportune that buyers like him have secured units that come with large balconies as they may become a thing of the past with the recent announcement by the Urban Redevelopment Authority.

From Oct 7, features such as bay windows, balconcies and planter boxes are no longer exempt from the gross floor area (GFA) calculations.

This means that developers may scale down balcony sizes since they will be charged for the area, unlike now.

‘I think it’s scary if the sizes of balconies shrink in future as Singapore is going to be one large concrete jungle,’ said Mrs Hong.

‘Personally, I do not mind paying for the space if the design is nice and it is functional.’

PropNex expands into auction, management

Source : Business Times - 1 Aug 2008

It’ll focus on private homes, commercial realty for auction

REAL estate firm PropNex is adding auction and management consultancy services to its repertoire in a bid to diversify its revenue stream, it said yesterday.

PropNex’s auction division, set up three months ago, will conduct its first auction in September. The firm will focus on private homes and commercial properties, said PropNex chief executive Mohamed Ismail.

And to provide a comprehensive suite of real estate services to its clients, PropNex will begin providing management services.

The firm bought Oracle Property Consultants Pte Ltd two months ago and set up its own unit to address the growing demand for professional property management services. Some properties in PropNex’s portfolio include The Ladyhill and 1 Moulmein Rise.

The firm currently earns more than 80 per cent of its income from brokering residential sales. According to Mr Ismail, PropNex has 38 per cent market share in the public housing market, as well as 33 per cent of the private home secondary market.

The other 20 per cent of the revenue comes from the firm’s commercial, investments and project marketing divisions.

But in three years’ time, Mr Ismail hopes that brokering residential deals will account for just 50 per cent of revenue as the firm grows its other business segments, including the new auction and management divisions.

PropNex saw its revenue grow to $28 million in Q2 2008, from $24 million a year ago. For the whole of 2007, revenue came to $108 million, up from $60 million in 2006.

The firm made news recently when it announced that it was firing about 2,800 agents who have been with the firm for over a year, but did not record a single transaction.

The move, said Mr Ismail, was part of PropNex’s attempts to clean up a largely unregulated industry.

Yesterday, PropNex also unveiled several other new initiatives to boost self-regulation.

Among other measures, all PropNex agents will now have to sign up for compulsory professional indemnity insurance and new agents will have to take a proficiency test.

PropNex takes new measures to raise benchmark for agents

Source : Straits Times - 1 Aug 2008

PROPERTY agency PropNex has unveiled a range of initiatives aimed at improving the quality of its agents.

The measures range from ensuring that agents are properly insured to proficiency tests covering subject like ethics and HDB regulations.

PropNex chief executive Mohamed Ismail said the new benchmark could result in 500 below-par agents being sacked by the end of the year.

This will be in addition to its drastic axing of 2,800 inactive agents last week.

‘It’s no longer a numbers game,’ said Mr Ismail yesterday. ‘We’re focusing on quality rather than quantity. We want to help move the industry towards professionalism.’

PropNex’s actions follow a spike in consumer complaints about estate agents which has resulted in the profession being labelled a ‘cowboy industry’.

Consumers lodged 1,113 complaints about the property industry last year, up from 991 in 2006 and 672 the year before.

The PropNex measures include a new in-house practising certificate, compulsory for all agents operating under the firm’s name.

Agents must also take out professional indemnity insurance that protects them against the cost of lawsuits and offers consumers compensation when agents mess up. New entrants and inactive agents must also pass a new proficiency test - in the form of a multiple-choice exam - that will cover subjects like code of conduct and ethics, the HDB and private property markets.

PropNex’s move is the latest in a series of industry initiatives aimed at raising the bar for agents.

The Institute of Estate Agents (IEA) launched a new practising certificate for members last year. The IEA represents about 1,600 agents and aims to act for the entire industry eventually.

There is also a three-year-old Singapore Accredited Estate Agencies scheme, which conducts the original Common Examination for House Agents (Ceha).

A scaled-down version of the Ceha was launched recently, backed by the newly formed Association of Singapore Estate Agencies. This aims to rally bosses to raise standards.

Industry players say there are just too many schemes and none is compulsory.

Agency boss Albert Lu of C&H Realty said the certificates ‘won’t make a difference if an agent is intent on illegal activities’.

The solution is to have a central body that functions like the Law Society with the power to discipline members. ‘Rogue agents can then be fined or suspended; it solves a lot of problems in the industry,’ said Mr Lu.

ERA Realty and HSR Property Group say they already have in place high standards for their agents.

ERA has about 2,800 agents, all of whom must go through a training regime. It also terminates about 500 inactive agents a year.

Neither ERA nor HSR requires agents to have indemnity insurance.

There are an estimated 30,000 agents in the market - all unregulated. The Inland Revenue Authority of Singapore vets only estate agencies, but not individual agents.

HDB flats: Low figure is building costs alone Fri, Aug 01, 2008

Fri, Aug 01, 2008 The Straits Times

REFER to the letter, 'Affordable HDB flats: Costings don't add up' by Mr Steven Yeo (July 22). Mr Yeo cited a Forum page letter published on July 12, 2004, where the writer gave the construction cost of a new flat as $50,400. This does not give the full picture of how much it costs to build flats. As HDB explained in its reply of July 23, 2004, the figures cited relate only to building works. The total construction cost of flats includes other costs such as infrastructure, piling works, lift installation, consultancy and project management, financing and purchase of land. We have explained before in previous letters that the total cost of development in the current market is about $300,000 for a four-room flat in Punggol-Sengkang New Town. This is significantly higher than the subsidised price of a four-room flat in Punggol-Sengkang sold by HDB at about $200,000 to $260,000. Kee Lay Cheng (Ms) Deputy Director (Marketing and Projects) for Director (Estate Administration and Property) Housing and Development Board

The bigger, the better

Fri, Aug 01, 2008 The Straits Times

ALL it took was one look at the big balcony spanning the living room and the master bedroom, and the deal was sealed for Mrs Jean Hong.

The 47-year-old company director bought a three-bedroom unit for close to $1,500 per square foot in the Parc Centennial condominium in Kampong Java Road three months ago and is still gushing about the large balcony to her friends.

She is planning to rent it out and feels expatriates will appreciate the balcony space.

'There is enough space to put some chairs and a small table in the balcony, so that the tenant is able to have a drink or read there without cluttering the place unnecessarily,' she said.

Parc Centennial is among a number of new condos that are bucking the trend of developments from the 1990s, which had balconies that were tiny corners with just standing space or irregular-shaped ones that nobody used.

In contrast, some of the new private housing projects today have large balconies that even extend to the master bedroom or outside the lift.

HDB rents still well on the rise

Fiona Chan, Property Correspondent Rents at many condominiums in Singapore appear to be peaking, but landlords of Housing Board flats are still riding the cash wave. HDB rents continued their steady rise in the second quarter of this year, increasing across all flat types and most towns as renters sought cheaper alternatives to increasingly costly condos. Owners of four-room flats benefited the most, with average monthly rents climbing almost 10 per cent to $1,750, from $1,600 in the previous three months, according to the latest data from HDB. In terms of towns, Bukit Batok, Central, Serangoon and Hougang saw major rent rises across all flat types. Generally, HDB rents have been increasing because rents of private apartments 'have hit a level too high for many to afford', said Mr Chris Koh, director of real estate agency Dennis Wee Properties. 'Those who used to be renting a condo at $2,000 to $2,500 a month find they have very few options when they want to renew their lease because their landlords have increased rents to $3,000 to $3,500.' Many of these displaced tenants work for smaller firms and do not have the flexibility of higher rent budgets, so they turn to HDB flats, Mr Koh said. Some new tenants are also S-pass holders with smaller budgets that can only fit HDB flats rather than condos, added Dr Tan Tee Khoon, head of KF Property Network, a subsidiary of Knight Frank. He also noted that the stock of HDB flats for rent remains fairly constant, unlike that of condos. Supply of HDB flats is also limited because of the conditions imposed on owners who want to lease out their flats. Rising across the board Between April and June, eight out of every 10 towns saw higher rents for four-room flats, with Jurong East experiencing jumps of up to 21 per cent. The priciest place to rent a four-room flat is now Bukit Merah, where the average monthly rent is $2,300. Close behind are flats in the Central area, Toa Payoh and Bishan, which command $2,000 or more. 'Bukit Merah has become popular with foreign nurses who work at Singapore General Hospital, and Jurong East is getting a lot of foreign students from Nanyang Technological University and foreign factory workers working in the west,' explained Mr Koh. He added that Toa Payoh seems to attract expatriates working in the city as well as foreign nurses from Thomson Medical Centre and Mt Alvernia Hospital. Landlords of other types of HDB flats are also seeing a tidy profit. Monthly rents of three-room and five-room flats went up by $100 on average to $1,500 and $1,900 respectively. For three-room flats, the biggest growth was in Hougang, where rents soared 40 per cent to $1,400 a month. They also saw sizeable increases of more than 10 per cent in Geylang, Bukit Batok, Ang Mo Kio, Serangoon and the Central area. For five-room flats, Bukit Timah, Jurong West and Hougang were especially in demand. But the most expensive five-room flats are still in Marine Parade and Central, where they go for $2,550 and $2,400 a month, respectively. Steady in the short term Rentals for HDB flats are likely to hold steady or even rise for the rest of the year as they remain much more affordable than condos, predicted Mr Koh. KF's Dr Tan also believes HDB rents will rise a further 10 to 15 per cent in the next six months. 'As more new condos are completed next year and the year after, rents of condos will ease and then only will we see HDB rents easing off as tenants will have more choices,' Mr Koh said.