Saturday, August 8, 2009

Property craze sparks poem


Source : Straits Times – 8 Aug 2009

IN BETWEEN listening to the real estate agent’s spiel about the rainshower in the bathroom and studying the gleaming mahogany parquet flooring, Mr Toh Hsien Min started forming a poem in his head.

That visit to a condominium showflat resulted in Mr Toh, 34 – a leading member of the crop of English-language Singapore poets born after Independence – writing a poem for Insight.

He went down to The Peak@Balmeg showflat in Pasir Panjang with the sole purpose of doing research for the poem after spotting an advertisement for the condominium in the newspaper.

Showflat-viewing – a symbol of Singaporeans’ love affair with property – is the ‘classic Singaporean weekend activity’, declares Mr Toh as he explains his choice of subject matter.

‘There are people who spend all their weekends just going to showflat after showflat. It’s part of the fabric of our economy and society,’ he says drily.

When the poet and editor of Singapore’s premier literary journal QLRS uses words like ‘the economy’, he speaks as an insider who knows what he is talking about. He is a risk analyst for an international bank, and as conversant in the language of financial models as he is with Shakespearean sonnets.

‘It keeps life interesting. I need to exercise different parts of my brain,’ he says coolly – without any emphasis, elaboration or dramatic hand gestures – of his choice of both day job and vocation.

In person, Mr Toh is like his poetry: formal and controlled, at times glacially so, but with emotion and wit bubbling beneath the surface.

He needs to be prodded to reveal more about his interests outside of poetry, before he finally offers: ‘I don’t see how it would be relevant to your piece but I do a lot of wine tasting.’

He does not say so, but one wonders if this self-consciousness is due to the lingering sting from a review of his last collection of poetry Means To An End (2008).

In a review in QLRS, fellow poet Ng Yi-Sheng consigned Mr Toh’s work to the ‘reluctant yuppie’ school of poetry that he felt pervaded Singapore’s shelves.

This is, no doubt, in contrast to Mr Ng himself, who at 28 is a full-time writer.

Mr Toh’s track record as a serious poet and literary advocate speaks for itself.

He has three poetry collections to his name, including a maiden collection, Iambus (1994), which he published at the tender age of 19.

His work has also been published in international periodicals, such as the Atlanta Review and the London Review of Books. While a literature undergraduate at Oxford University, he was president of the university’s poetry society.

His love of verse stretches back into the mists of childhood, when ‘the earliest things I can remember writing were poems’.

‘When I was eight or nine, I had this great little book called Junior Poetry Workshop which showed you some simple poems and set simple exercises for you to do, and I loved it.’

This passion for poetry extends also to his belief that there should be debate and disagreement over it – at the risk of his own poems getting a bashing.

It was the dearth of literary criticism here that prompted him to start QLRS, an online literary journal, eight years ago. It now has 5,000 to 10,000 visitors a week, including readers from universities and libraries in the West.

Ultimately, he believes, Singapore literature can grow only if ‘others stand up and take a view of things, point out where we (writers) can improve’.

On Member of Parliament Irene Ng’s suggestion of publishing an anthology of poems about Singapore, he notes that there are already several such anthologies, such as No Other City, published by Ethos Books in 2000.

The best way of drawing society into a dialogue with its poets is to put more of Singapore literature on the school syllabus, he says.

‘I’m not sure forcing people to study it necessarily cultivates a love for it, but it would create awareness. It’s probably the best option we’ve got.’


SHOWFLAT ON PASIR PANJANG HILL

Toh Hsien Min

On sunlit Saturday afternoons

we see it starting up:

the white honeycomb

like so many scattered over the island.

Cars jam narrow lanes,

hand-gestured by sweaty men

playing runway controllers

to a landing in a hillside clearing

of hastily laid tarmac

chattering like crisp anticipation.

Entering the reception area

elicits a tanned and honeyed smile

and a brochure showing

views into the impossibly azure

reserved for an exclusive few

although no blazing sun

heats the still and humid air.

Maps proclaim an expressway

and uncluttered straightline roads

into the heart of town

or to prestigious institutions

and sparkling shopping malls

for those who eschew

the MRT station in the proximity.

The ones who do not believe

in the sagacity of a keen crowd

may see how all is given depth

by a beautiful scale model

whose swimsuited plastic figurines

recline on tiny deckchairs

beside the infinity pool

blending in with the water feature.

A swarm of flip-flops

point inwards from the patio

to the coolness of Italian marble

outlined by timber skirting,

while the air-conditioning

invades even the kitchen,

where the spice racks sit

beside an Australian cabernet.

In the rooms, queen-sized beds

do not swallow so much space

as to hide the parquet flooring

while the built-in wardrobes

are draped with satin dresses,

and the hotel-inspired bathroom

boasts a rainfall shower

and a deep designer sink.

No one will settle in this showflat

and sit out on the balcony,

yet its scrubbed ceramic tiles

witness a strange bonding,

families on the threshold

of attaining revivifying change:

the bewildered grandmothers

following their sons-in-law

and trying to hold on

to the grumpy children

while all the time each one

projecting the heft of happiness

upon emulsion paint

might not imagine their experience

repeating across the island

with the punching of calculators

and drone of floating rates

wherever apartments rise and fall,

but in this clamour

the capability for reinvention

and the aspiration of the tribe

are as clear as the view out to sea.

If this collective buzz seeks

to arrive at a destination

greater than any each may know,

and if the sense of ownership

lasts only as long as an unblocked

vista into the green crests

of Kent Ridge cannot be outbid

by a lofty en bloc offer,

we know that this coming together is

to build something real,

something more than high tensile steel

and concrete columns,

something we can hold

not in our hands but in our hearts:

perhaps a nation,

perhaps a community,

perhaps a home.


Kebun Bahru station? Where’s that?

Source : Straits Times – 8 Aug 2009

THE proximity of MRT stations to new housing projects has long been a selling point when developments are launched, and it is common to find condominium advertisements displaying ‘nearby’ train stations.

But a couple of developers have taken the sales pitch one step further: by pinpointing the sites of MRT stations which have not been confirmed.

In UOL Developments’ recent advertisement for Meadows@Pierce, a freehold condominium project in Upper Thomson Road expected to be ready around 2012, the developer ran a map showing station sites of the future Thomson Line, which will only be completed in 2018.

These include ‘Springleaf’, ‘Kebun Bahru’, ‘Venus Drive’ and ‘Sin Ming’ stations.

Another major developer, Far East Organization, showed the location of a ‘Marine Parade MRT’ station in an online page for its Silversea condo. The east coast development is expected to attain TOP in 2014.

The station is supposedly part of the Eastern Region Line, which will be completed in 2020.

The Land Transport Authority has not confirmed the alignment of the new rail projects, much less the location of stations. An LTA spokesman dismissed the developers’ information as ‘wild guesses’.

Far East Organization declined to comment; but Ms Claire Cher, spokesman at UOL Group, parent company of UOL Developments, said it got the location and names of the stations from singeo.com – an online map service.

According to the website, the names and locations of the supposed Thomson Line stations were suggestions from users.

Ms Cher nevertheless stood by the advertisement, saying ‘we’re not misleading, because we put the word ‘planned’ under each of the station site’.

The Consumers Association of Singapore does not quite agree.

Case executive director Seah Seng Choon said that it fell short of the advertising industry’s code of practice, which dictates that all advertisements should be ‘legal, decent, honest and truthful’.

‘In this case, the sites of the MRT stations as indicated in the advertisement are questionable when the LTA has not confirmed them. As such the advertisement could be misleading.’

Other developers interviewed said it is an occasional practice among some players to include hypothetical sites of new stations in their sales materials – although some frown upon it.

Mr Gerry de Silva, head of group corporate affairs at City Developments, said his company does not resort to this.

Ms Sarah Jane Smith, spokesman for SC Global Developments, said her company has never had to do so because ‘all our properties have been very centrally located, so all MRT stations and lines are well established’.

The inclusion of transit stations in property ads is tightly controlled in advanced countries. In Japan for instance, the Real Estate Fair Trade Council says ‘future lines or stations are not allowed to be presented in sales collaterals unless the plan is already announced to the public by the transportation company’.

Even so, the line’s planned start of operation has to be clearly stated. And the walking distance between MRT station and development has to be made known.


Nice hotel, very quiet neighbours


Source : Business Times – 8 Aug 2009

Aqueen sets up stall right next to Singapore Casket

IS it possible to sleep well knowing that your neighbours are also resting – not just peacefully but in peace? This is what guests will soon find out when they check in at Aqueen Hotel Lavender, which is right next to Singapore Casket.

The 105-room hotel on Lavender Street will be opening its doors in September. Its owner is Crescendas Group, which owns another three Aqueen sites.

Times have changed, said Crescendas CEO Lawrence Leow, when BT asked if travellers would be nervous about the funeral service provider nearby. ‘In this modern world … I’m not affected by the fact that it’s next to the Casket.’

In fact, the location could open the door to unique opportunities. Cushman & Wakefield managing director Donald Han noted that the hotel might draw people who need a place to rest while they attend to wakes.

Asked if this was a possible market segment, Aqueen Hotels’ general manager Albert Leong said: ‘We welcome all kinds of guests.’

Although Crescendas’s Mr Leow could cast aside doubts about Aqueen Hotel Lavender’s location, he admits he can still be superstitious at times. For instance, he consulted a geomancer – who gave the Lavender site the all-clear – before entering the deal.

Also, there will not be rooms with the number ‘4′ or ‘14′ across all Aqueen hotels – not just the one at Lavender. This, according to him, is his personal preference.

Mr Leow, who is also president of the Association of Small and Medium Enterprises, knew the site’s previous owner. He visited the 8,338-sq-ft freehold plot, did the sums and Crescendas eventually invested about $17 million to buy the land and build the six-storey hotel.

According to Aqueen Hotels’ Mr Leong, the Lavender establishment’s target market will be no different from that of other mid-tier hotels – it aims to draw business travellers who want a clean, value-for-money and accessible place to stay.

The hotel fits these criteria, he added. It is a 10-minute walk from Lavender MRT Station and is near the Singapore-Malaysia Coach Terminal. There is no swimming pool but all rooms come with broadband and cable television. He also emphasised that Singapore Casket is relatively quiet and guests will not be disturbed.

Aqueen Hotel Lavender’s site poses a ‘good challenge’ and could be a ‘marketing point’, Mr Leong reckoned. Room rates have not been fixed but they should be close to those at Aqueen Hotel Balestier. It is the first of the chain to open in May – its occupancy rate exceeds 80 per cent and promotional room rates are above $88 per night.

Cushman & Wakefield’s Mr Han noted that more people have found Lavender’s proximity to town attractive. He illustrated this with a few examples: Other hotel chains such as Hotel 81 and Fragrance Hotel have set up shop there, and prices at Citylights near Lavender MRT Station have risen.

Condos at Citylights were first launched in 2004 at an average price of $590 per square foot (psf). Caveats show that prices last month ranged from $950 to $1,176 psf.

As for Aqueen Hotel Lavender, Mr Han felt that it should do well even if it is next to Singapore Casket – budget travellers are generally ‘less picky on location’ and ‘more picky on stretching their dollar’.

Apart from the Aqueen hotels in Balestier and Lavender, two more are coming up in Paya Lebar and the Tyrwhitt area. Crescendas hopes to start building Aqueen Hotel Paya Lebar in the next two months.

Altogether, the four hotels will have around 360 rooms and Crescendas will be investing about $75 million in them.

Crescendas plans to grow the Aqueen chain further and is looking for more sites along the fringe of the city. The target is to have 1,000 hotel rooms in Singapore in the next three years.

The company, which also has real estate, manufacturing, distribution and technology businesses, first ventured into the hospitality industry on the belief that there is a shortage of mid-tier hotels here.


Project may add to charms of Seletar Hills


Source : Business Times – 8 Aug 2009

URA to put commercial and residential site up for tender later this month

LOOKING for a new condominium project nestled in the quiet Seletar Hills Estate and in close proximity to roti prata outlets in the Jalan Kayu area, fish farms and The Animal Resort? A new condo with about 225 units could be ready for launch in about a year.

It will come up on a 99-year leasehold plot on the government’s reserve list that will be launched for tender by the Urban Redevelopment Authority in about a fortnight.

The 2.1 hectare site will also have a commercial component of up to 48,438 square feet gross floor area. Analysts say the commercial component, which could take the form of a small mall, would provide much needed shopping amenities in the vicinity.

The site at the corner of Seletar and Yio Chu Kang roads was once occupied by a wet market and HDB shops and was a convenient shopping haunt of Seletar Hills residents.

This is the third time in three weeks that a site on the government’s reserve list which can be developed into private homes has been triggered for launch after a successful application by a developer – reflecting developers’ hunger for land for mass-market condominium development in the face of a strong pick-up in home sales.

The identity of the developer that made the successful application for the launch of the latest site in Seletar was not revealed by the URA yesterday. However, the developer’s minimum bid price was made public – $40.5 million or $128 per square foot per plot ratio.

CB Richard Ellis executive director Li Hiaw Ho predicts strong interest in the plot with about six to eight bids likely, given the current pace of sales of suburban condominiums.

Top bids are expected to be in the $250-$300 psf ppr range – some 95 per cent to 134 per cent above the trigger price, he reckons.

‘Based on this land price, as well as the current resale prices of some of the newer condominium units in the Yio Chu Kang area which are between $600 psf and $700 psf, new apartments at this site should fetch prices of between $700 and $750 psf,’ he said.

However, Colliers International’s research and advisory director Tay Huey Ying expects just a handful of bids for the site, citing the lack of amenities in the vicinity and the fact that the site is not in close proximity to an MRT station. She also noted that older condos in the vicinity, such as Seletar Springs Condo, Serenity Park, Sunrise Gardens and Nim Gardens, fetched median prices of $480 psf to $520 psf in the first half of this year.

The site first appeared in the Government Land Sales Programme in the reserve list for second-half 2004.

At the time, it was much smaller, at 0.5 hectare. The plot was later expanded and in the second half of 2008 was moved to the confirmed list and slated for launch in November last year.

However, before that could happen, the government suspended confirmed list land sales in October last year during the global financial crisis. That was when the plot was moved to the reserve list where it had remained until it was triggered for launch.


Breath of fresh air in home loans market


Source : Business Times – 8 Aug 2009

Banks slash spreads on Sibor-pegged loans; 80 and 90% property financing now available

CREDIT conditions have eased markedly in the competitive home loans market, thanks to improved confidence and liquidity in the property sector. Banks have slashed the spreads they charge on Sibor-pegged loans, and mortgage brokers report the renewed availability of 80 and 90 per cent financing for property.

This is in sharp contrast to the backdrop that prevailed in the first quarter when amid gloom over the economic outlook and falling home price valuations, banks reportedly tightened lending criteria.

At that time, the spread on Sibor loans soared past 1.75 per cent depending on the loan-to-value ratio and whether the property is to be owner-occupied or for investment. For investment property, banks reportedly declined to offer financing higher than 70 per cent. Even for owner occupied home loans, 80 per cent was just about the maximum financing that banks would offer.

Now is a good time to secure fairly low interest rates, whether you’re in the market for a new loan or looking to re-price or refinance your current loan.

The three-month Sibor has been hovering at about 0.68 per cent for a few months, not far from the 10-year low of 0.56 per cent in 2003, based on Bloomberg data. The swap offer rate or SOR, which is used by banks such as OCBC stands at about 0.62 per cent.

Most observers do not expect interbank rates to trend up in the near term, particularly as the sustainability of the economic recovery remains in question. A UOB spokesman says: ‘Interest rates are anticipated to remain relatively flat at the current level in the months ahead. The trend for home loan rates will be dependent on market competition, cost-of-fund environment as well as global economic conditions.’

Based on rates obtained by Morgan Mortgage International, a mortgage consultancy, OCBC has some of the most attractive rates. Its variable rate package – home loans based on its ‘value rate’ or board rate – is quoted at 1.68 per cent for the first three years. While SOR loans with no lock-in are reportedly quoted at a spread of 1.25 per cent, those with a one-year lock-in charge an attractive spread of 0.85 per cent for the first year.

Fixed rate loans are also available with the first year rate quoted at below 2 per cent, for those who prefer certainty in their monthly payments.

Morgan’s Patrick Tan says that the firm has seen a 50 per cent increase in loan applications. ‘Refinancing activity is slowing down and making way for new loans . . . We believe we’ve reached the bottom in interest rates.’

The loan rates are supportive of an upturn in the property market, particularly as risk-free interest rates in terms of deposit rates and Singapore government bond rates remain low. A number of banks pay just 0.125 per cent for modest amounts. The yield on two-year SGS is quoted at 0.383 per cent, and five-year SGS at 1.34 per cent.

There are, of course, other factors that have buoyed sentiment, as reported in BT on Thursday. Pent-up demand is one factor, arising from the fact that current pricing is still below the 2007 peak. Yet another factor is a slowing of Housing & Development Board construction over the years.

Says Joseph Chong of New Independent: ‘The outlook is always uncertain, but it is less uncertain today than it was six months ago. We’re watching for policy errors like premature tightening. If there are no errors, the outlook is pretty good.

‘Right now, it’s not just rates that are low, but the availability of money is high. The asset cycle is turning and liquidity is plentiful.’

An OCBC spokesman says: ‘The housing market is currently very vigorous and we see great strength for new properties in the mass market. In the last few months, we’ve seen a lot of upgraders like young families entering the private property market.’

For now, it seems the bank sees little signs of froth. ‘We do not see great movements in the bigger priced properties, current movements are more or less limited to the mass market. We also do not see a great deal of speculation either as these transactions involve mostly owner-occupied homes.’


UK real estate market seems to be thawing


Source : Business Times – 8 Aug 2009

THERE are some encouraging signs coming from the feeble British housing market, where prices are down on average 15 per cent from their 2007 peak. In July, residential property prices rose for a third consecutive month after mortgage approvals hit their highest level in 14 months in June. New buyer inquiries also rose – many of them wealthy non-Britons looking to snap up bargains.

In a further indication of an incipient recovery, foreign lenders like the Bank of China have also started to expand their mortgage offerings in Britain, while local banks are limiting their lending to repair their balance sheets, either voluntarily or under government pressure.

‘It’s a great time to lend if you can and they’ve clearly got money to lend,’ said Mark Harris, a mortgage broker at Savills, a real estate company based in London.

House prices were still 6.2 per cent lower in July than a year ago, but that is less than the 9.3 per cent year-over-year decline a month earlier, according to a survey by the Nationwide Building Society, a bank. Prices have risen 1.3 per cent since the beginning of the year, the survey found.

Analysts said it was too early to predict a housing recovery in Britain, especially because unemployment was not expected to peak until the end of this year. But the recent housing data suggests that prices could at least be stabilising, and some economists see it as a sign that the market has reached a bottom.

‘There is now a reasonable chance that prices could end the year slightly higher,’ Martin Gahbauer, chief economist for Nationwide, said. ‘Only a few months ago, such an outcome would have appeared unthinkable.’

The increase in housing prices, helped by purchases in prime areas of London like Chelsea and Knightsbridge, is mainly a result of a shortage of properties. Liam Bailey, head of residential research in London at Knight Frank, said the number of properties for sale fell by half during the last 12 months because homeowners were waiting for a recovery.

Some real estate agents also saw more interest from non-British buyers seeking an attractive investment. They were lured by a combination of lower prices, a beneficial exchange rate and low interest rates.

A similar situation in the early 1990s started a slow housing market recovery in Britain that stretched over several years. Peter Spencer, author of the Item Club forecast on the British economy, said the housing market played a larger role in the country’s economic ups and downs than in most other parts of Europe or even in the US.

‘A relatively high proportion of people in Britain own houses, and unlike Americans, we mainly have variable rate mortgages, which means that income flows vary and there’s a more direct link to consumption levels,’ he said.

While the latest numbers were ‘quite encouraging’, Mr Spencer cautioned: ‘The question is how sustainable they are if they’re mainly based on cash buyers, some of them from overseas.’

Andrew Weir, central London area director for Foxtons, a large real estate agency, estimated that about 65 per cent of his current customers were not British. He said he was being contacted more often by wealthy Italians, Greeks and Spaniards. ‘They mainly buy for investment reasons,’ he said.

A small number of overseas banks are also looking for opportunities. ‘Given that our mortgage products and criteria are very competitive in the market now, it is a good opportunity for us to grow our loan book,’ said Lan Xiong, a spokeswoman for the Bank of China.

The bank catered exclusively to the Chinese community in Britain but now plans to broaden its customer base by offering mortgage rates that undercut British competitors. Bank Leumi of Israel and Handelsbanken of Sweden also offer mortgages below the rates of some British banks, focusing on wealthier clients. All the loans are in offered in pounds.

But for the average person, especially first-time buyers, getting a mortgage remains a major obstacle. Most banks ask for a 25 per cent deposit, a hefty sum, considering that the average house price in Britain is £158,871, or about S$383,524, and the average annual salary is £31,300.

The hope is that once the top mortgage market becomes crowded, some banks will start to take on more risk and lower the required deposit, said Mr Harris, the broker at Savills.


3rd site triggered for sale in 3 weeks


Source : Straits Times – 8 Aug 2009

YET another government land parcel has been triggered for sale after a developer committed to bid at least $40.5 million for the site at the corner of Yio Chu Kang and Seletar roads.

The site is the third government plot triggered for sale in as many weeks after developers tendered bids on land in Dakota Crescent and Chestnut Avenue.

‘Developers are looking at the market two years down the road,’ said Jones Lang LaSalle’s head of South-east Asia research Chua Yang Liang.

‘We are still in a contraction mode but the global credit crunch has eased somewhat in Singapore and there is more certainty that we’ve seen the worst.’

The recent run-up in demand also points to a more positive mood, he said.

The latest land parcel is a 2.1ha commercial and residential site located within the established residential area at Seletar Hills and near the future Seletar Aerospace Park.

With a gross plot ratio of 1.4, it can generate a maximum permissible gross floor area of about 29,400 sq m.

The Urban Redevelopment Authority (URA) estimates the site can accommodate 225 housing units.

Shops and food and beverage outlets can be built on 4,500 sq m of commercial space within the proposed development.

Interest in the site is likely to be strong, given the high demand for suburban condos, experts said.

‘Given the current pace of sales for suburban condominiums now, the interest for land sites is high and the response to this site should be strong, with likely six to eight bidders,’ said the executive director of CBRE Research, Mr Li Hiaw Ho.

Bids are expected to range from $250 to $300 per sq ft per plot ratio, he said.

At that level, they will be about 95 per cent to 134 per cent above the trigger price, which works out to $128 psf per plot ratio.

Mr Li said new apartments on the site should fetch prices of between $700 and $750 psf.

This is based on the expected bids and the resale prices of some of the newer condominium units in the Yio Chu Kang area, which are going at between $600 and $700 psf.

The site was made available for sale via the reserve list system.

Under this sale method, a site goes up for tender only if developers indicate interest by committing to a minimum bid.

There had been much uncertainty in the market earlier, with developers showing little interest in buying sites, but the pick-up in recent months has been fast and furious.

Chesterton Suntec International research and consultancy director Colin Tan said the triggering of the Seletar site is another sign of the strong demand out there.

‘Even the developers feel that there is enough demand out there. It’s the market talking,’ said Mr Tan.

‘If the demand from investors is so strong…, then the Government should announce immediately that it will be activating the confirmed list once again at the next review,’ he said.

This should cool the market by telling investors that, with more supply coming up, the potential for higher profits will not be there, he said.

Under the confirmed list, sites are put up for tender at scheduled dates, regardless of developers’ interest.

The URA said it will launch the tender for the Seletar Road site in about two weeks. The date will be announced later.


Friday, August 7, 2009

Fragrance buys property at Changi Road


Source : Channel NewsAsia – 7 Aug 2009

Singapore Exchange’s Mainboard-listed Fragrance Group said one of its subsidiaries plans to buy a property at Changi Road for S$33.5 million.

The freehold property has a land area of 28,500 square feet. It can yield a maximum permissible gross floor area of around 60,000 square feet.

Fragrance said it plans to develop the land into a five-storey mixed development comprising commercial space and residential apartments.

It will fund the acquisition and development through internal funds and bank borrowings.

Construction of the project is expected to start in the second half of the financial year.


URA launches site at Yio Chu Kang/Seletar roads for tender


Source : Channel NewsAsia – 7 Aug 2009

The Urban Redevelopment Authority (URA) is launching a 2.1-hectare parcel of land at Yio Chu Kang/Seletar roads for public tender in about two weeks.

The URA says this follows a commitment from a developer to bid at least S$40.5 million for the site.

The land parcel is located within the residential area at Seletar Hills and near the future Seletar Aerospace Park.

It will be available for development for commercial and residential purposes.

The site will be able to generate a maximum permissible gross floor area of about 29,400 square metres, with a lease period of 99 years.

It was made available for sale under the reserve list of the Government Land Sales programme.

Under the reserve list system, a site will only be put up for sale if a developer commits to bid at, or above, the minimum price which is acceptable to the government.


Work begins on URA Concept Plan 2011


Source : Channel NewsAsia – 7 Aug 2009

The Urban Redevelopment Authority (URA) of Singapore has begun work on preparing the next Concept Plan.

National Development Minister Mah Bow Tan announced at his ministry’s National Day Observance Ceremony on Friday.

Concept Plan 2011 will be a major review of Singapore’s long-term land use plans and strategies to cater to the changing needs of a growing economy and population.

Mr Mah said: “This is a very important exercise because from this concept plan we will derive some of the more detailed land use plans. We will determine what are the areas, in which areas will Singapore be concentrating on, how do we work, how do we play, how do we make this an even better Singapore.”

URA will seek the public’s views to ensure that the plans are in sync with the evolving lifestyles and aspirations of Singaporeans.

Mr Mah said a key focus of Concept Plan 2011 is to plan for sustainable growth.

The minister explained: “So that even as we grow economically, this has to be done in a way that is sustainable, that will make sure that our resources can be best used, not for just this generation but for the generations to come.”

He said the Sustainable Singapore blueprint, which was launched in April, provides a good foundation, and the concept plan will build upon that.

Mr Mah added that keeping public housing affordable is also a priority.

“There’s plenty of housing available. Old ones, resale ones, new ones under the BTO (Build-To-Order). It’s like going to a supermarket, (there are) different types of housing available. Each one of them has its price, and you choose the one that you’re able to afford,” he said.

At the National Day Observance Ceremony, Mr Mah met some new citizens and he spoke of the need for them to make an effort to integrate.

Some new citizens said they were drawn to Singapore because of its emphasis on ability.

“It’s because of the equal opportunities, and the system of meritocracy, and the open arms of the government for foreign talent. So long as you can contribute, I believe the Singapore government will welcome us,” said Dr Wong Siew Heng, a new citizen who has lived in Singapore for 20 years.


Homes from sold-out projects back on market


Source : Business Times – 7 Aug 2009

Speculators a minority as they shoot for small flipping gains

Some buyers who managed to lay their hands on units at projects sold out recently are trying to get lucky for the second time – by selling what they snapped up, for a profit.

This brings to mind the government’s warning last week – that some element of speculation is back in the property market. Industry watchers say, however, that subsales are common for fully sold projects and speculation still remains mild.

Advertisements for subsales at Optima@Tanah Merah have surfaced in the last few days – with owners seeking prices which are at least 5 per cent more than what they paid.

This comes less than a week after all 297 units at the 99-year-leasehold project were taken up in just three days.

Developer TID sold the units at an average price of about $810 per square foot (psf). It had to conduct two rounds of balloting as home seekers descended upon the showflat in droves.

There are also offers for subsales at 8@Woodleigh. Frasers Centrepoint sold all 330 units at the 99-year-leasehold project over a few weeks in June.

According to industry watchers, sellers in the subsale market need to charge a premium of at least 5 per cent to break even. This would cover stamp duty, legal fees and any agent’s commission. To earn more, some may set prices which are up to 10 per cent more than what they paid.

But given the market today, those flipping properties would be glad to come out of the deal with $50,000 to $80,000, said ERA Asia Pacific associate director Eugene Lim.

He pointed out, though, that speculation today is ‘not excessive’. Every new project will attract a small number of speculators but most buyers today are ready to keep and lease out the property, he explained.

It is when the project is sold out that these buyers may change their minds, he added. ‘While some people buy with a medium-term view, because the project is sold out, it presents an opportunity for them to make a quick gain.’

Savills Residential director Phylicia Ang also believes that most buyers do not plan to ‘flip’ their properties initially. But she noted that if there is profit to be made, some are willing to hear out the offer and may sell later.

She also suggested that not all advertisements may be placed by owners – some property agents may take the initiative to promote units, test market interest and ‘gather more leads’.

Both Mr Lim and Ms Ang highlighted that speculation is nowhere as feverish as it was some two years ago. According to Mr Lim, buyers in the subsale market today are more particular – probably looking out for specific units they could not get during the launch.

Rising optimism in the property market seems to be benefiting older projects as well. Casa Merah – which is near Optima and will receive Temporary Occupation Permit soon – has seen prices at its units rise in the last few months. While caveats lodged for units there in February reflected prices of $631-$665 psf, those in July showed prices of $699-$751 psf.

Meanwhile, new launches continue to do well. The 70-unit Airstream at St Michael’s Road, for instance, was fully sold through balloting on Wednesday. Previews for Keppel Land’s 56-unit Madison Residences have begun, while previews for Allgreen’s Viva in Novena will start this weekend.


Demand for private homes on an upward curve


Source : Business Times – 7 Aug 2009

‘Natural demand’ may be higher as immigrants step in; supply not a nagging issue

Even as Urban Redevelopment Authority yesterday launched the tender for a plum 99-year leasehold site for condo development at Dakota Crescent, expectations are running high that developers will trigger the launch of more housing sites from the government’s reserve list in the coming months.

This is against a backdrop of strong sales for mass-market projects, the latest being the Optima condo next to Tanah Merah MRT Station.

Mass-market home prices have risen about 10 to 20 per cent from the recent low in Q1, according to property consultants.

One concern is whether the market is running out of supply of mass-market condos and whether this will set the base for further price hikes.

The current pipeline has about 7,500 mass market homes yet to be launched on sites sold in the past, according to CB Richard Ellis data. These include three 99-year leasehold condo projects in Toa Payoh, Yishun and West Coast Crescent on earlier sites sold by the government.

The rest include 99-year projects by Hong Leong Group on a large historic landbank in Pasir Ris, projects by Far East Organization and Frasers Centrepoint on remaining land on the former Waterfront site along Bedok Reservoir, and a host of freehold projects by various developers in places like West Coast Road, Tampines Road, Yio Chu Kang Road, Toh Tuck Drive and Hillview Avenue.

After the recent launch of two housing sites (at Dakota Crescent and Chestnut Avenue) from the government reserve list following successful applications by developers, this list still has sites that can potentially generate a total of about 5,800 private homes. Some are attractively located near MRT stations in places like Bishan, Serangoon Ave 3, Bartley Road and Bedok. The last two sites will be ready for application by developers in November and December respectively.

The government could add more sites to its reserve list for first-half 2010, or even reintroduce the confirmed list, where sites are launched according to a prestated schedule, unlike reserve list sites, which are launched for tender only upon successful application by developers undertaking to offer minimum bids acceptable to the state.

It will take some time for site launches to translate to new condo launches. However, ensuring there’s enough supply should not be a nagging issue.

But beyond looking at supply, one needs to also understand why demand has spiked since February. Developers have sold a total of 7,250 private homes in the first six months of 2009 – exceeding the 4,264 units sold in the whole of last year. Some consultants are predicting the number for the whole of this year may reach the record of 14,811 units set in 2007.

The current home buying wave began in the mass-market segment, then permeated upwards. Some of the buying represents pent-up demand. People are also taking the opportunity to pick up their dream home at current prices – which despite recent price hikes are still below peak-2007 levels – for fear of missing the boat as they did during the property run-up in 2006 and 2007.

Property speculators are also busying themselves.

But other factors are also at play that are creating a paradigm shift which could suggest that ‘natural demand’ henceforth may be higher than the average 8,000 private homes developers sold annually over the past 10 years (between 1999 and 2008).

These include an increase in immigration into Singapore over the past few years as it embraces foreign talent and wealth and a gradual ‘internationalisation’ of the Singapore property market as foreigners are drawn by Singapore’s emergence as a global city.

Another point to consider when understanding why there could be higher natural demand for private homes is to look at the public housing segment.

The Housing & Development Board’s construction of new flats has slowed down over the years. During 1981-85, an average of about 37,000-plus flats were built by HDB per year. In 1998 too, some 36,600 new flats were built. Later in the face of a supply glut, HDB scaled back building new flats; the figure eased to about 10,000 units a year completed in 2002 and 2003, and fell further to about 5,000 units completed in 2007.

A smaller supply of new HDB homes has made it easier for HDB residents to sell their flats in the resale market and upgrade to entry-level private homes in the suburbs.

Incomes of Singaporeans have grown over the decade, making more aspire to own a private home.

The low-interest rate policies adopted by governments around the world to cope with the global financial meltdown have translated to near-zero returns on fixed deposits and low mortgage rates – making property an attractive investment option. The strong distaste for structured financial products post-Lehman has made property more sought-after.

The home-buying frenzy of late has also come about due to a confluence of two important factors – a recognition of value by buyers (following price chops by developers in Q1) and an improvement in sentiment.

More value-recognition will emerge for real estate as Singapore’s railway network is doubled to 278 km by 2020, boosting connectivity and cutting travel time from homes in locations once called suburbs to the city.

Perhaps we should not be too surprised if strong demand for private residential properties persists. Of course, if another international disaster takes place and foreign property investors again exit, demand could dive, like it did last year during the global financial crisis.

Spikes and dips in home buying and property prices could become more pronounced by virtue of Singapore’s real estate market becoming more international.


Thursday, August 6, 2009

Update law to deal with recalcitrant condo residents


Source : Straits Times – 6 Aug 2009

I REFER to last Saturday’s report, ‘It’s my condo and I do what I want’. I am perturbed to hear about a council member refusing to pay the monthly $65 fee levied on those who park their second car in the estate.

I am the chairman of another condominium’s management council, and we have faced a similar problem in the past two years. Our estate has about 50 owners who own more than one car. In 2006, it was decided at an annual general meeting that the management council would determine the terms and conditions and fees on issuance of carpark permits in the estate. In 2007, the management council imposed a monthly fee of $15 for parking a second car in the estate.

Although we sent numerous letters and got council members to persuade one resident to pay up, the issue is still not resolved. I believe other condos face similar problems with errant residents – such as littering, wearing improper swimming attire and hanging laundry in an unsightly manner.

Veteran condo residents know the managing agent is just a contractor employed by the residents and is powerless to fine or penalise them. Furthermore, taking legal action against a neighbour will not only cost thousands of dollars, but also most likely incur the wrath of the court.

I urge the Building and Construction Authority to review such problems with managing agents as well as management councils, and update the Building Maintenance and Strata Management Act so the standard of condo living can be maintained.

Henry Ng


OpenNet to start residential fibre-point installation


Source : Business Times – 6 Aug 2009

THE mammoth task of wiring up Singapore for ultra high-speed broadband access has entered the home stretch with the start of residential installation works by project winner OpenNet.

In this phase of the project, the firm extends its new underground fibre-optic cables to all local homes. A new plastic ducting system and wall plate will be installed in each residential unit, much like how Singapore Telecom’s fixed-line telephone wiring and StarHub’s cable infrastructure reaches homes today.

Some 32,000 residential premises are expected to be fitted with the new fibre-optic links during initial deployment. These are spread across areas such as Tanjong Pagar, Jurong, Macpherson, Pasir Ris, Holland Road and Pasir Panjang.

OpenNet will start sending letters to homeowners from next week to request an installation appointment.

‘It is important that homeowners work with OpenNet to make sure this is implemented smoothly because the first pass is free,’ said Acting Minister for Information, Communication and the Arts Lui Tuck Yew.

When the time window for complimentary installation lapses, apartment owners will have to pay $220 to get a fibre-optic connection, while the fee for wiring landed property is $450.

Once the fibre-optic wall plate is in place, Singaporeans will be able to subscribe to new bandwidth- sapping services such as high-speed Internet packages that will allow a full-length movie to be downloaded in seconds instead of hours. Such offerings could make their debut as early as next year, according to Mr Lui.

‘We hope, by the end of the first half of 2010, we will see commercial services being made available,’ he told reporters during a tour of some fibre-ready apartment blocks in Cantonment Close yesterday.

According to OpenNet’s project and operations director Tiong Onn Seng, 1,200 workers will be deployed to wire up residences over the next few months, but the number could be increased to meet the company’s installation schedule.

OpenNet – a joint venture between Canadian firm Axia Netmedia, SingTel, Singapore Press Holdings and Singapore Power unit SP Telecom – expects to achieve 15 per cent coverage by the end of this year.

More than half of local homes will be fibre-ready by 2010 and nation-wide rollout is expected to be completed by the end of 2012.


Swissotel Merchant Court hotel may be sold soon


Source : Business Times – 6 Aug 2009

TA Enterprise Bhd is proposing to buy both the hotel and its business

Swissotel Merchant Court hotel in the Clarke Quay area is expected to change hands soon. Bursa-listed TA Enterprise Berhad said last week that it’s proposing to buy the 476-room hotel.

It did not reveal the price but market watchers say that it is likely to be in the mid-$250 million range.

TA Enterprise is proposing to buy both the hotel and its business. The hotel will be sold subject to a management contract with Swissotel, part of Fairmont Raffles Hotels International. Jones Lang LaSalle Hotels is said to be brokering the deal.

TA Enterprise – controlled by Tony Tiah and his wife Alicia – owns Westin Hotel Melbourne, Radisson Plaza Hotel in Sydney and the Aava Whistler Hotel in Canada, according to its website.

In an announcement last week, the group said that it had struck a deal with LaSalle Asia Opportunity II SARL to buy the entire issued shares of Quayside Gem Limited, which owns the hotel and business of Swissotel Merchant Court Singapore.

TA has secured an exclusivity agreement to perform due diligence on the property. The company has paid a deposit of $5 million, which will be forfeitable, if TA withdraws from the negotiations for the proposed acquisition or does not enter into a sale and purchase agreement with the seller by Aug 25, 2009.

During the exclusivity period, the seller will not sell, negotiate or solicit any invitations or bids for the sale of the hotel with any other parties.

Seller LaSalle Asia Opportunity II bought the hotel in 2006 from Fairmont Raffles Hotels International (owned by Kingdom Hotels International and Colony Capital), which had in turn acquired it as part of the entire hotel business of Raffles Holdings in 2005.

The hotel is on a site with a remaining lease of about 84 years. It was put up for sale a year ago, but a deal did not materialise then as sentiment worsened due to the global financial crisis.


URA launches residential site at Dakota Crescent for public tender


Source : Channel NewsAsia – 6 Aug 2009

The government has launched a residential site at Dakota Crescent for public tender.

This comes after a developer said it would bid at least S$130 million for the site two weeks ago.

The land parcel, which was made available for sale through the Reserve List System, has a site area of 1.7 hectares.

The 99-year site, which is located near Old Airport Road, can generate a maximum permissible gross floor area of 647 thousand square feet.

The tender closes on September 8.

The Urban Redevelopment Authority (URA) said Thursday the selection of the successful bidder will be based on the tendered land price only.

The minimum bid price for the site is S$130 million.


Domestic investors drive Asia investment deals


Source : Business Times – 6 Aug 2009

H1 investment sales in region fall 58% to US$12.4b as global institutions sidelined

Domestic investors played a bigger role in Asian property investment sales in the first half of this year as global institutional investors and property funds stayed mostly on the sidelines, says CB Richard Ellis.

Domestic investors were involved in nine of the 10 largest real estate investment deals in the region in H1. The 10 biggest deals totalled US$5.1 billion – a 46 per cent drop from H1 2008.

Overall, inter-regional cross-border investment accounted for only 8 per cent of total Asian investment sales of US$12.4 billion during the first half, down from a 30 per cent share in H1 2008.

The total value of property investment deals in Asia in H1 this year was down 58 per cent from US$29.5 billion in H1 2008. In the second quarter of 2009, US$7.3 billion of deals were sealed, up 41 per cent from US$5.1 billion in Q1.

Looking ahead, CBRE Research Asia’s executive director Andrew Ness says: ‘Cash-rich local investors are most likely to be the main drivers of the investment market over the short to medium term, as many of them are interested in purchasing quality assets for long-term investment. However, it is possible that even domestic investors will find it difficult to find suitable investment opportunities due to the shortage of quality properties put up for sale during the current downturn.’

CBRE’s figures are preliminary and include land transactions.

The biggest transaction in H1 was the sale of AIG Otemachi Building in Tokyo for about US$1.2 billion. Prime office properties continued to attract the strongest interest from investors, accounting for six of the 10 largest deals in the region.

The improved market in Q2 was driven to some extent by debt-funded investors compromising at current price levels and liquidating assets to service near-term debt obligations, CBRE says. Investor sentiment generally turned more positive as the first half of the year progressed.

Hong Kong, Singapore and Taiwan experienced the largest quarterly rebound in transaction volume, up 302 per cent, 297 per cent and 151 per cent respectively in Q2. There was also an increase in land acquisitions in China during the quarter, as big local developers scrambled to snap up sites in anticipation of imminent appreciation in prices.

Foreign institutional investors remained inactive, discouraged by the lack of further discounting, while local investors were more active on account of their easier access to domestic credit. India and Taiwan ended the six-month period with positive year-on-year growth of 339 per cent and 12 per cent respectively.

‘The change in investor sentiment in Taiwan primarily resulted from the expected opening of the domestic market to mainland Chinese investment,’ says CBRE.

‘Meanwhile, the formation of a stable government in India coupled with the utilisation of Qualified Institutional Placement (QIP) by real estate companies to raise new funds provided a boost to the Indian property investment market.’

Tokyo emerged as the location with the largest number of distressed or potentially distressed real estate assets in the region in Q2. Owners came under pressure to refinance deals that have fallen to well below the original loan-to-valuation ratios prescribed by their loan covenants.

‘The period saw a number of major office transactions concluded at US$50 million and above, with Japanese investors and investment institutions accounting for virtually all transactions, proving that appetite still persists in Japan for acquiring quality assets,’ says CBRE.

Don’t write off old bungalows


Source : Business Times – 6 Aug 2009

You can always ask an architect to see how rooms and spaces can be transformed with simple changes

WHEN one buys a landed property, it is more than likely that it will come with a house attached.

Quite often, however, new owners will demolish the existing house and build a new one from scratch, adding to the money invested in the property. And at an average of $500 psf for construction cost, this can add up to quite a hefty sum. So it may pay to consider the potential of the existing old bungalow instead.

Anyone with a good eye for architecture should be able to see how rooms and spaces can be transformed with simple changes. But for those without, the best person to ask is an architect.

Transforming old buildings is something architect Mink Tan has had experience with, having won the URA Heritage Award for the Waterboat House on Fullerton Road in 2004.

By reconfiguring the spaces and adding some new ones, he converted the formerly dark and airless Waterboat House into a light and airy lifestyle F&B destination.

Similarly, when Mr Tan was shown around a 14 year old colonial style bungalow that a client was interested in, he could see that it was a building that had potential.

The large house has a built-up area of about 7,500 sq ft house and sits on nearly 16,000 sq ft of prime land. But with a house of this size and design, the rooms tend to be dark.

To address this, Mr Tan simply replaced many of the windows with French windows which are just glass-panel doors that can be opened to let more light in.

‘The spaces also didn’t feel right,’ says Mr Tan. So he created an ‘enfilade effect’ by opening up the rooms and establishing view corridors that did not exist before.

By simply knocking down some of the bedroom walls to give access to existing ledges, the architect also converted ‘dead space’ into balconies. Even the roof of the car porch was converted into a terrace simply by introducing new doors.

In other areas of the house, like the kitchen, all it took was some space-planning to turn what was previously a small kitchen into a bigger, wet and dry kitchen.

Not all houses will be as easy to transform, especially if the house happens to be gazetted for conservation, as many of Singapore’s grandest bungalows are.

Old bungalows that have been gazetted for conservation can be transformed and remodelled but strict guidelines set by the Urban Redevelopment Authority (URA) must be adhered to.

Many of the conserved bungalows are within the Good Class Bungalow Areas of Chatsworth Park, Holland Park/Ridout Road and Nassim Road/Whitehouse Park and Mountbatten Road.

Bungalows usually consist of the main building and an outhouse for the kitchen, toilets and servants’ quarters. For conserved bungalows, only the main house needs to be retained. The outhouse can be demolished to make way for new extensions to the main house.

New extensions may be permitted for additional floor area but this will be subject to Development Control guidelines, the allowable building height of the area, and the requirements of relevant technical departments.

The potential of some of these conservation bungalows also lies in the land on which it is built. Often, the land area can be large enough to be subdivided into smaller plots.

According to the conservation guidelines, in the Good Class Bungalow Areas, a concession to facilitate the subdivision of land allows for one sub-standard plot size of not less than 1,000 sq m to be considered provided the total land area together with the conservation bungalow plot is not less than 2,800 sq m.

Perhaps the most challenging aspect of owning a conservation bungalow is restoring it.

Architect Chan Soo Khian of SCDA Architects has restored several conservation homes and he advises that potential conservation home owners should be happy with the overall spatial quality of the building before buying it because quite often, the buildings are too old to undergo extensive construction work. ‘Quite a few of the colonial bungalows have load bearing brick walls on footings that have constrains from guidelines and a structural point of view,’ he explains.

The guidelines on conservation are extensive. Apart from restoring design features in the facade, it could also include having to restore original windows, doors, balustrades and even roof tiles.

Even the existing structural system has to be retained and restored.

However, as Mr Chan points out, many are prepared to pay a premium for these old bungalows. ‘The clients that buy the conservation properties do so because they love aspects of the heritage properties such as the mature landscape that usually surround the properties,’ he adds.

Indeed, such bungalows fall into a niche market that is popular with discerning home buyers. It is a niche that some developers have begun to take notice of.

Boutique developer Satinder Garcha’s company Elevation focuses on unique properties in very prime locations. One such property it has recently restored is at Swettenham Road.

The old bungalow was designed by Frank Brewer and built in Late Arts and Crafts style during the colonial era. Frank Brewer incidentally also built the late president Ong Teng Cheong’s house in Dalvey Estate.

Mr Garcha added that these old bungalows do certainly have investment potential, more so than regular Good Class Bungalows, ‘because of the rarity value and the desirability of these bungalows, especially by foreigners and now increasingly Singaporeans’.

He added that the most coveted are those which are conserved with historic value but restored and modernised with modern conveniences – offering the best of old and new.


Balmoral, Tagore sites for sale

Source : Business Times – 6 Aug 2009

SAVILLS Singapore has launched for sale two residential properties – the freehold No 3 Balmoral Road with an indicative price of $65 million; and an 86,402 square foot plot at No 162 Tagore Avenue, within the Teachers Housing Estate, with an indicative price of $15 million. The latter is being sold on a 99-year leasehold tenure by the Singapore Teachers’ Union, which holds the freehold interest in the property.

No 3 Balmoral Road currently comprises a development of 11 apartments, all leased out, but Savills is marketing the property for its redevelopment potential. The property is owned by an investment company and has a land area of 23,821 sq ft, a permissible plot ratio (ratio of maximum gross floor area to land area) of 1.6 and a height restriction of 12 storeys.

The site has been granted written permission by the Urban Redevelopment Authority for the development of 30 residential units. Savills said that such a development would have an estimated total potential saleable area of about 45,000 sq ft. The figure is understood to include bay windows and planter boxes. Development charge has been fully paid, up to a gross floor area (GFA) of about 41,918 sq ft, which includes 10 per cent additional GFA allowed for balconies.

The $65 million price works out to $1,705 per square foot per plot ratio (psf ppr) based on the 1.6 plot ratio. However, inclusive of the balcony allowance, the land price translates to a lower $1,551 psf ppr. Savills said that the $65 million works out to about $1,450 psf on the 45,000 sq ft potential saleable area.

Market watchers note that Keppel Land’s 18-storey Madison Residences on the former Naga Court site along Bukit Timah Road, which starts selling today, is expected to be priced at about $1,700 psf on average.

The Tagore Avenue site, although currently zoned as ‘civil & community institution’, has approval for a three-storey mixed landed development, allowing a potential development of either 33 landed homes or 40 cluster houses. The tender for this site closes on Sept 1 while the expression of interest for the Balmoral property closes on Sept 3.


Green island living


Source : Today – 6 Aug 2009

LUXE does not have to mean excessive, as Sentosa Cove demonstrates with environmentally-friendly initiatives that characterise the exclusive residential enclave.

“From the onset, Sentosa Cove was designed (in 1996) with the natural environment in mind – approximately 40 per cent of our development is dedicated to landscaping and waterbodies,” said Mr Jason Yeo, general manager of Sentosa Cove Resort Management.

Tan Hui Leng (huileng@mediacorp.com.sg) takes you on a quick tour of the Cove’s green features.

Homes

As of today, three out of 10 Cove projects have received the Building and Construction Authority’s Green Mark award given to buildings that adopt green practices in its design and construction.

Ponds

The numerous ponds around the island are not just eye-pleasing water features. They also double as water catchment areas for irrigation of all the landscape in North and South Cove, and the commercial precinct within Sentosa Cove.

Bio-retention swale

Designed to accumulate rain and hold it for gradual infiltration into the soil, the swale – a low-lying or depressed stretch of land – is located along the base of hillside bungalow plots.

Sluices

The Cove’s waterways are refreshed daily via sluices, i.e. gate-controlled water channels. During high tide, waters are channelled from the sea to the waterways and at low tides, the sluices are opened to let the water out to the sea.

Trees

Planted along a common strip on the seashore, the trees do not just provide shade but also help reduce ultra-violet rays and bring down temperatures. Furthermore, they reduce salt spray that is detrimental to buildings with metal structures and absorb emissions from passing ships.

Recycling bins

Recycling bins for plastic, paper and cans are available at the Sentosa Cove Arrival Plaza bus bay.

Bio-degradable dog poo bags

These eco-friendly dog poo bags are available around the Cove.

Wednesday, August 5, 2009

M’sia launches east coast special economic zone


Source : Business Times – 5 Aug 2009

Terengganu-Pahang SEZ may offer perks customised for investors: Najib

IN a bid to hasten developmental activities in Malaysia’s eastern economic corridor, Prime Minister Najib Razak has announced the establishment of a special economic zone (SEZ) stretching from Kertih in Terengganu to Pekan in Pahang.

‘For the first time, investors will be offered incentives that can be customised specially for them,’ Mr Najib said yesterday in Pekan at the launch of the SEZ.

He did not specify the incentives, but The Star reported that they include a 10-year tax exemption, 100 per cent investment tax allowance, and exemptions from import and export duties.

Malaysia is banking on the ‘integrated SEZ’ which would be served by four ports and two airports – Kuantan port acting as the main gateway – to attract investments of some RM90 billion (S$37 billion) and over 200,000 new jobs by 2020.

The SEZ covers only 6 per cent of the land mass in the Eastern Corridor Economic Region (ECER), a 12-year development masterplan which covers the states of Kelantan, Terengganu, Pahang and the district of Mersing in Johor, launched in 2007 to bring development to the rural east.

Petrochemicals, manufacturing and agro-based industries, tourism, and education, are the ECER’s focus sectors but given that national petroleum company Petronas is overseeing the master-plan, most analysts view petrochemicals as the sector with the greatest chance of success.

RAM Holdings chief economist Yeah Kim Leng said the new incentives could result in a loss of revenue to the government, but would be helpful in attracting companies, especially those in the downstream processing activities, to establish their operating or research and development centres in the SEZ.

The ECER said it is also exploring the possibility of a second SEZ near the Tok Bali-Besut area along the Kelantan-Terengganu border.

Malaysia has been looking at areas to draw new investments following the global economic slump which has led to a dramatic fall in foreign direct investments and a near collapse in exports, and appears more prepared to forgo a part of taxes if it brings investments and jobs.

Earlier this year, the government embarked on a gradual liberalisation of the services sector and recently made it more attractive for companies to list and easier for foreigners to buy commercial property.

Over the past few years, the country has launched five ambitious regional development corridors to attract hundreds of billions of dollars over the next decade or two, with Iskandar Malaysia in South Johor seen as the likeliest to get off the ground owing to its proximity to Singapore.

Government officials say that Iskandar Malaysia which fancies itself as a potential financial centre has attracted over RM40 billion in planned investments, and the ECER RM25 billion to date.

However, many are anxious to see when the proposed investments will be implemented. ‘Even in normal times studies show only 85 to 90 per cent of approved investments are implemented. During an economic slowdown it’s closer to 70 per cent,’ Dr Yeah said.

In addition to basic incentives, the federal government does provide wider incentives, the extent often depending on the size and value-added of the planned investment.

It is unclear how different the SEZ incentives are from those extended to Iskandar Malaysia investors who if they invest in the five specified areas of creative, education, financial advisory and logistics, receive a 10-year corporate tax exemption and the sourcing of foreign workers without restriction.


Trump regains control of three casinos in Atlantic City


Source : Business Times – 5 Aug 2009

Real estate mogul Donald Trump, his daughter Ivanka and Dallas-based Beal Bank have successfully fought off competition from bondholders in bankruptcy court to purchase the Atlantic City casino company he once ran and that has always borne his name.

Trump Entertainment Resorts Inc chose Donald Trump’s US$100 million cash offer late Monday night. The Trumps and an affiliate of Beal Bank Nevada will take the company private.

The deal still must be approved by a bankruptcy judge.

Mr Trump’s bid topped a competing bid backed by bondholders, whose refusal to deal with him in February led him to resign as chairman of the company and launch a drive to regain power.

Ironically, Mr Trump, who is also a reality TV star, regained control of the company the same way he lost it four years ago: through bankruptcy. He was forced to relinquish operational control of the company and its three casinos as part of its emergence from its second bankruptcy in 2005.

‘My daughter Ivanka and I will work tirelessly to make this company great again,’ Mr Trump said. ‘As I have done in the past, we will make Atlantic City hot once more.’

Trump Entertainment Resorts filed for Chapter 11 bankruptcy protection in February – the third time the company or its previous incarnations had done so.

Its petition listed US$2.06 billion in assets and more than US$1.74 billion in liabilities. Ivanka Trump said the new company, which she expected to keep the same name, would carry about US$486 million in debt – a far cry from the US$1.7 billion that forced it into bankruptcy earlier this year. ‘This is a great day,’ she said. ‘We are very excited about being back in Atlantic City.’

She and her father had resigned from the company in February after bondholders spurned his offer to buy the company.

Crushing debt has long held the Trump casinos back in dealing with the rapidly changing Atlantic City market, which is dominated by newer high-end casinos like the Borgata Hotel Casino & Spa and Harrah’s Resort Atlantic City.

In recent years, the company has concentrated on its largest and newest casino, the Trump Taj Mahal Casino resort, which now ranks among Atlantic City’s better performers. But the company’s other two casinos – Trump Plaza Hotel and Casino, and Trump Marina Hotel Casino – have lagged.

Last week, New York developer Richard Fields, who had planned to buy Trump Marina, sued the company, claiming Trump Entertainment let the property deteriorate so badly that no lender would finance it.



HDB spaces: No subletting rule observed in the breach


Source : Straits Times – 5 Aug 2009

THE Housing Board’s reply, ‘HDB shop corridor area cannot be sublet’ (July 21), stated that HDB corridor areas should not be sublet by shop owners to third parties.

This may be the rule, but in my experience, it is often breached.

We operate shops dealing in mobile phones in Clementi and Bedok Central. A 100 sq ft ‘hole in the wall’ in these locations costs up to $7,000 a month to rent.

However, there are many fly-by-night mobile phone operators who set up shop in the yellow boxes in these areas and pay about $2,000 a month to rent the space. In Bedok Central, town council officers periodically patrol the neighbourhood to check on illegal peddlers. However, enforcement of the rule has been inconsistent.

A retailer selling accessories in a block there now rents out a small space inside the shop to a mobile phone retailer who then uses ‘her’ yellow box to sell mobile phones.

When we did the same thing a few months ago by renting a space within a provision shop in the same block and used the outside yellow box, we were told by the town council to vacate the outside area or face stern penalties. We understand that the landlords for both shops pay the same monthly fee to the town council for use of the yellow boxes.

To complicate matters, another retailer selling watches and optical wear in the same block also sells mobile phones in the yellow box space in front of his shop.

As this retailer owns and manages three different types of businesses, is he then allowed to use his yellow box to sell mobile phones?

What if that retailer selling accessories in her store claims that the mobile phone business belongs to her?

At Clementi Central, the situation is blatant. Over the years, legitimate mobile phone retailers have been vacating the area because of intense competition from illegal peddlers who sell the same products but pay a fraction of the rental.

The town council has not acted against such rental abuses. Now, there are at least eight illegal mobile phone retailers operating out of yellow boxes in Clementi Central.

Such inconsistent application of the rules runs contrary to efforts by the merchants associations to rejuvenate HDB areas and attract shoppers. We urge the HDB and respective town councils to be more diligent and consistent in checks of these illegal peddlers.

Hong Ghim Phong


National standard for hotel security in pipeline


Source : Straits Times – 5 Aug 2009

GUIDELINES defining the nuts and bolts for a national standard in hotel security are being drawn up, so hotels can benchmark their security measures against them.

They cover, among other things, access, electronic surveillance and the quality of security personnel.

More details of the Singapore Standard for Hotel Security, being drafted jointly by the public and private sectors, will be unveiled at a hotel security conference this month.

Announcing this yesterday, Senior Minister S. Jayakumar said it will ‘bolster Singapore’s reputation as a secure business and tourism destination’.

The minister, who is also the Coordinating Minister for National Security, urged all businesses to look at security as an investment, not a cost.

In these times marked by concern over the risk of terrorist attacks, security has become a key factor in decisions on where to hold international events, he noted.

‘Also, as travellers become more security conscious, they will look for destinations and hotels that have good records of security,’ he said to about 650 members of the business community at a security dialogue held by the Singapore Business Federation (SBF) in Orchard Hotel.

Reminding them of the recent hotel bombings in Jakarta, he said: ‘Just as an eerie calm can precede a tsunami, peace and quietness over a few years should not lull us into believing that it means the absence of risks.’

Security managers from top-tier hotels here said they already have a slew of security measures in place.

Mr J. Benjamin Charles, who oversees safety and security at the Conrad Centennial here, said cameras sweep all the vulnerable areas. Also, delivery workers entering the hotel are screened and monitored.

Dialogue participant Karambir Singh Kang, general manager of India’s Taj Mahal Palace & Tower, offered a perspective from experience. Staff at his hotel, the target of last November’s attacks on Mumbai, now know the importance of everyone down the line having a security mindset.

In his speech, Professor Jayakumar urged businesses to step up their capacity to cope with emergencies like terrorist attacks and pandemics – by forming security watch groups, for example.

Building owners and managers who did well in the security department received awards yesterday.

The SBF said it will launch a website by the year endto enable companies to assess their business continuity management levels.


Office leasing scene – musical chairs with extra seats

Source : Business Times – 5 Aug 2009

Some tenants factor in higher headcount as they move to new locations

There’s a buzz in the office leasing market. Many new leasings are at the expense of space being given up in existing locations as occupiers are drawn to better-value propositions in newer buildings. But a few are taking up more space in their new locations than what they are giving up in their existing premises to cater to future increases in headcount.

‘It’s not all musical chairs. There’s also a smattering of improved headcount numbers, even as most occupiers chase lower cost, better value locations,’ a seasoned office property consultant said.

Another office consultant, Knight Frank director of office leasing Agnes Tay, said: ‘I don’t expect net office demand to turn positive this quarter, but the negative demand will be smaller in the second half of this year. Companies in general are more optimistic now compared to the end of last year. More of them are now taking a position on headcount and real estate requirements and a few are even making plans for future growth.’

Much of the leasing activity has centred on new buildings – including Mapletree Anson and Straits Trading Building.

More than 80 per cent of Straits Trading Building is said to be let out, ahead of its completion later this year.

Tenants are said to include Rajah & Tann (which is understood to be taking up at least 80,000-90,000 sq ft), overseas law firm Conyers Dill & Pearman and serviced office operator Asia-Pacific Business Centre. Colliers International is said to have brokered these leasing deals.

Rajah & Tann is expected to move from its existing premises at Bank of China Building nearby; Conyers, which is leasing a floor at Straits Trading Building, will move from Singapore Land Tower.

Over in the Anson Road/Tanjong Pagar corner of the CBD, Mapletree Anson, which received Temporary Occupation Permit recently, is said to be 35 per cent let out, with more than 100,000 sq ft leased. Tenants include AON, QBE (both involved in the insurance and reinsurance business) and a Japanese MNC, understood to be Sumitomo.

AON is moving from Singapore Land Tower, QBE from OCBC Centre and Sumitomo from Equity Plaza. CB Richard Ellis is said to have brokered the three leasing deals in the project.

Tenants are said to have been drawn to Mapletree Anson’s efficient floor plates, with column-free space of 20,000 sq ft per floor allowing more effective layout of workstations.

A stone’s throw away, a La Salle Investment Management fund will be completing its 20 Anson Road project in a few months.

Both office buildings have attained Singapore’s highest green building certification of Green Mark Platinum.

An office developer said: ‘Most of the leasing deals in the past six to nine months involve relocations or consolidation from several buildings into a single location. In contrast, 12 to 24 months ago, leasing deals involved occupiers upsizing their space requirements.’

Jones Lang LaSalle’s head of markets, Singapore, Chris Archibold said: ‘2009 will be a negative take-up year but in terms of market activity, leasing deals will be higher in the second half of this year. A lot of relocation is being driven by consolidation or downsizing rather than expansion. Hopefully, expansion will come back next year. There are tenants with passing rents below current market rents and who are therefore looking for cheaper alternatives like new buildings in peripheral CBD locations.’

Office consultants expect office rents to continue easing for the rest of this year – but at a slower pace. The demand is still weak but there is substantial supply coming on the market in the next few years.

According to government figures, the pipeline supply for the office sector stood at about 13.3 million sq ft gross floor area as at end-Q2 2009, of which about 12 million sq ft is slated for completion by 2012.

JLL’s average monthly rental value for prime Grade A Raffles Place (small space) stood at $9.50 psf in Q2 2009, about half the peak figure of $18.40 psf in Q3 last year.


Tuesday, August 4, 2009

Ex-million dollar agent dreams of comeback

Source : Business Times – 4 Aug 2009

Heavily in debt, Carlos Justo plans to create billion-dollar real estate team

It’s the perfect Miami morning at Carlos Justo’s penthouse – warm and bright, with luxury yachts powering through the sparkling blue Atlantic Ocean some 30 stories below.

Mr Justo, a 53-year-old real estate agent, has been awake since 3.30am but he shows no sign of fatigue. His eyes scan back and forth, from the high rise condos, to the water, and back to the condos.

An assistant, sitting at a glass table with her back to the stunning view, is talking business. She wants to know whether he will receive any commissions or checks anytime soon.

‘Right now, we don’t have any money,’ Mr Justo says. He continues talking. Fast. Pacing back and forth, he gazes out the window.

‘There’s money to be made,’ he says, grinning. ‘I’m creating the team. I’m creating the billion-dollar real estate team.’

In fact, Mr Justo is US$20 million in debt. He is five months into a massive bankruptcy filing. The IRS is after him for US$6 million.

And yet, he dreams.

A Cuban immigrant who came to the United States with nothing, Mr Justo’s is a rags-to-riches-to-rags story, a peculiarly American dream.

Once, he starred on the TLC network programme Million Dollar Agents. There was a time when he appeared in social columns for brokering real estate deals for one-name celebrities such as J-Lo, Shaq, Versace, and two-name notables such as Gloria Estefan, Sylvester Stallone, Rosie O’Donnell.

Like so many of our modern titans – think Donald Trump – he inspires both admiration and contempt. Greed, he acknowledges, fuelled his rise. Hubris ensured his fall.

Next time, he says, it will all be different.

Living among the wealthy didn’t come naturally to Mr Justo; he was born in Cuba, and as a child, lived without electricity, running water or plumbing.

His family came to Miami in 1967 when he was 11. He got his GED at night school but by the time he was 19, Mr Justo had learned English and bought his first home – a modest, stucco triplex – for US$20,000 with money he made as a janitor.

For the man who grew up with so little, talking about homes came easily. So he got his real estate licence. Early on, he targeted the top end of Miami’s real estate market, the places most folks see on TV: mansions accessorised with palm trees, sugar-sand beaches and turquoise waters.

In 2000, he brokered the US$19 million sale of the area’s most famous home, the Ocean Drive mansion where fashion designer Gianni Versace was killed.

Mr Justo’s success was astronomical, the product of his aggressive enthusiasm, uncanny knowledge of the ultra-rich and a phenomenal real estate market.

In 2005, Mr Justo was worth US$20 million. He and the agents who worked for him sold US$200 million in real estate in a single year. He was also the owner of 12 multi-million dollar estates in the county’s most exclusive enclaves; he intended to eventually flip them and make a profit. Mr Justo and his business partner, Irving Padron, were awarded a prestigious Sotheby’s franchise and opened its offices in one of the few historic mansions in downtown Miami.

His strategy seemed like a sure thing in a city filled with speculation.

Unlike most other brokers in Miami at the time, Mr Justo never dealt in new condominiums – he thought that they were too risky. In 2005, he was quoted in the Miami Herald as saying, ‘I refuse to sell condos; I think it’s irresponsible. They will end up falling on their asses.’

Those were the days when Americans were addicted to real estate.

It seemed like on every cable channel, there was a different programme featuring the nation’s collective obsession. Mr Justo was in the middle of it all; a promo for Million Dollar Agents described him as ‘the biggest fish in Miami’s shark-infested pool of real estate’. Crews filmed him racing maniacally around Miami, showing luxury homes by day (from a helicopter) and going to parties at night (in a chauffeured Rolls Royce). Cameras captured his unorthodox methods of doing business: using a lunar calendar to plan deals, going barefoot during meetings, meditating with his sales team.

Mr Justo was a natural on TV, with his amber eyes, bald head and perpetual tan. His custom-made, silk suits – white or black or occasionally red – looked suspiciously like pyjamas, which he wore to closings and clubs alike.

Mr Justo spent US$1,000 on sushi lunches, US$3,000 a month on life coaching. He didn’t accumulate many things – he enjoyed sparsely decorated, all-white furniture and rooms – and freely let his friends stay in the various homes that he owned.

Mr Justo says that during those years, he ‘wasn’t operating out of integrity’ – and that many of the people surrounding him weren’t, either. Greed and ego were his motivation. He took advice, he says, from the wrong people and didn’t pay attention to details.

He also didn’t make many friends, says Kevin Tomlinson, a real estate blogger and Miami Beach agent who says that Mr Justo stole one of his clients in the late 1990s.

‘When I got into the business, he was the king. He was the legend that everybody looked and aspired to be,’ Mr Tomlinson said.

‘But over the years, his reputation within the broker industry is a mixture of people being afraid or intimidated by him and his success or downright loathing.’

Mr Justo took out mortgages he couldn’t afford, tapped into equity, splurged with credit cards. He didn’t diversify his portfolio and didn’t save a penny.

‘I knew the market was going to crash,’ he said. ‘It was irresponsible what we did, what all of us did, in the United States.

On Feb 13 this year, a clerk at the federal court in Miami stamped ‘RECEIVED’ on Mr Justo’s bankruptcy filing.

For three years, Mr Justo had tried to avoid filing Chapter 7, even borrowing US$15,000 from his 85-year-old mother and US$75,000 from his 83-year-old aunt to pay his monthly debts. But he was underwater on too many mortgages. There were other creditors, too, including the IRS, which claimed that he should have filed his taxes in the United States, not in the US Virgin Islands, which Mr Justo says is his principal residence.

He was named in two lawsuits, one filed by a former real estate agent who worked for his team, and another by Mr Padron, his former business partner. Both sought hundreds of thousands of dollars, alleging that Mr Justo didn’t pay commissions on various deals.

Mr Justo had no savings, no stocks and no bonds.

His checking account hit bottom at US$49.73. His financial picture was summed up in one dry sentence in the bankruptcy filing: ‘At the current time, the debtor has no income due to the state of the real estate market.’

That week, at the urging of a friend, Mr Justo had offered his penthouse as a crash pad to a group of travelling Buddhist monks from Tibet. As the monks chanted in an even baritone, Mr Justo’s mind reeled in turmoil.

‘What happens if everything is gone?’ he thought.

He wrote a US$3,000 check as a donation to the Buddhist monks. It bounced.

Sparked by a former co-worker, Mr Justo had studied New Age and Buddhist philosophy for years, visiting meditation retreats, spiritual centres and monasteries. But somehow, he said, the concepts of attachment and greed never really sank in until he went bankrupt.

It was the scariest thing he had ever done; scarier than meeting Fidel Castro twice in the mid 1990s, more daunting than coming out as a gay man to his parents.

‘Fear is not something I’m familiar with,’ he says.

It was scary, he said, because it forced him to confront the truth: He had failed. He had come close to bankruptcy before, always somehow pulling himself back from the brink by selling a property or getting a loan. There was no safety net this time, not in this economy.

When he first realised that he was about to lose everything, Mr Justo wondered whether it was better not to exist at all. It was the first time, he says, that he had ever considered suicide.

‘Then I thought, I’m alive, I love my life. I have my health. I don’t have cancer,’ he says. ‘I started to realise how little I need to really live.’

As he sheds mansions (five have already been taken by the bank, and it seems like the penthouse will be gone soon, as well) and possessions (he owns about US$6,000 worth of stuff, including furniture, clothing and, some Buddhist art), Mr Justo insists that material possessions mean nothing to him.

And if he manages to make money again, he insists he won’t be foolish with it.

‘I’m creating a real estate empire based on love,’ he says, adding that he plans to give large chunks of his cash away to charity – once he puts a million dollars each in the bank accounts of his mother and aunt.

‘In the past, I created my own hell. I needed to be brought to my knees,’ he says. ‘Whatever you believe, you create. Today, I live in a world with all possibilities.’

But for Mr Justo, those possibilities still include luxury. ‘I’ve been rich and I’ve been poor, and I like being rich a lot better,’ he says.

He says that after he pays his family back, he wants a yacht. And maybe a personal chef.

Which begs the question: Has he really learned from his mistakes?

It’s 8.30am on a bright Miami morning and Mr Justo has assembled a dozen people in his penthouse. They sit in a circle facing the boss and drinking coffee.

Four of Mr Justo’s ‘Billion-Dollar Team’ are in attendance. One of his lawyers is there. So is his masseuse. And a banker who is foreclosing on the penthouse. There’s also an interior designer, a former client who owns a US$12 million estate and the architect who is designing Michael Jordan’s Florida home.

Mr Justo talks, non-stop, for nearly two hours. The message: He’s back and ready to sell. If he is afraid of the future – one in which he has to borrow money to pay his bankruptcy attorney, his cell phone bill and food – he’s not showing it. It seems as though Mr Justo is actually having fun talking about his troubles.

It’s Mr Justo’s acceptance of his failure that will propel him back to the top, his friends say.

‘I fully expect him to land on his feet,’ says Jeffrey Rubenstein, one of his lawyers. ‘He owns what has happened to him, In this day and age and particularly in Miami, that’s a very unusual thing.’

But his brother, Alex Justo, is worried.

‘To me, I don’t think my brother needs what he’s trying to build again,’ he said, thinking that his brother should focus on what he’s good at – selling – and not involve others in his success. ‘Forget about making this billion dollar whatever. There’s no other Realtor in town that does what my brother does. He’s a genius.’

Source : Business Times – 4 Aug 2009