Property investment in China ‘may grow by 30%’

Source : Straits Times – 5 Sep 2009

China’s property investment growth may rebound to around 30 per cent next year and support the nation’s economic recovery, central bank adviser Fan Gang said.

‘As property developers rush to buy land and plan construction this year, investment activities will soon pick up pace,’ he told the China CEO Forum in Beijing yesterday.

Mr Fan is the academic member of the monetary policy committee at the People’s Bank of China.

China’s property sales surged 60 per cent by value in the first seven months, and home prices in 70 major cities rose the most in nine months in July from a year earlier, as Premier Wen Jiabao’s US$585 billion (S$843 billion) stimulus and an explosion of lending spur home construction and purchases.

Still, the 11.6 per cent expansion of property investment in the first seven months was one-third the pace in 2007, before a housing slump started.

‘A rebound in real estate investment will be the next engine supporting economic recovery after the government-led infrastructure construction plays a dominant role stimulating growth this year,’ Mr Lu Zhengwei, an economist at Industrial Bank Co, said by phone in Shanghai.

‘Growth of 20 per cent to 25 per cent in real estate investment is healthy, whereas a 30 per cent pace may trigger concern about overheating in the property sector.’

Property investment accounts for a third of overall fixed-asset spending by China.

Tiong Bahru draws the inn crowd

Source : Straits Times – 5 Sep 2009

More hotels open in residential enclave, a draw with its rich heritage and location

The wallpaper is French, the bedsheets are Egyptian cotton, and the toiletries in the bathroom are Chopard.

But peer through the louvred shutters of the luxurious Nostalgia Hotel, and the view is undoubtedly Singaporean.

Located at 77 Tiong Bahru Road, the 50-roomer is the latest boutique hotel to call the sleepy, historical residential enclave home.

Singapore-based Lion Properties Group spent $20 million to build the mid-tier hotel, housed in two conserved shophouses and a four-storey extension built on a plot of land that once housed a Chinese temple and shops which sold songbirds.

Like others in its midst, such as Link Hotel, Hotel Re! and upcoming Wangz Hotel, location was the clincher.

‘It’s practically five minutes from Orchard, five minutes from Chinatown, and yet near the heartlands,’ said Mr John White, the group’s managing director.

Although Lion Properties has invested in industrial and commercial properties in Paya Lebar and Chinatown, this is its first hotel venture.

Opened last month, the boutique hotel will charge between $300 and $600 a night for a superior and balcony room respectively, although opening promotional rates are $190 to $480.

The rich heritage of the area has also been incorporated into the decor of the hotel. Guests who enter the lobby are greeted by a display of traditional items, including an old radio and green-and-white coffeeshop cups.

Hotels in the area are not worried about the newcomer.

‘We have a different concept and theme, and we’re catering to a different price range,’ said Ms Ariel Tan, marketing manager of Link Hotel, across the road from Nostalgia.

The 150-room hotel opened in 2007, and targets mainly tourists from China.

The rates for superior and deluxe rooms are $280 and $380 a night respectively.

Hotel Re!, a retro-themed hotel in Chin Swee Road, is also certain that there is enough business to go around.

‘Boutique hotels are still a new trend in Asia and are only more established in markets such as Hong Kong and Thailand,’ said Ms Jessica Loo, its marketing manager.

The hotel, which opened last year, has 140 rooms costing between $320 and $750 a night.

‘Also, boutique hotels are all very different, and we each have our own niche area.’

Residents of Tiong Bahru are similarly unfazed by the mushrooming of such inns in their backyard, with another, Wangz Hotel, under construction in Tiong Bahru Road.

Although there was a furore over the opening of Hotel 81 in the estate earlier this year, residents The Sunday Times spoke to said boutique hotels are different from budget types which charge hourly rates.

‘Maybe the guests constantly passing though the hotels will make our area more vibrant,’ said housewife S.H. Chia, 42, who has been living in Tiong Bahru for more than 10 years.

While upcoming hotels may lead to more hustle and bustle, analysts said they are unlikely to affect the prices of properties in the vicinity.

‘What they are likely to affect is the demography of the area, and F&B outlets. If that’s the case, then the value of properties surrounding the F&B outlets may rise,’ said Mr Ho Eng Joo, executive director of investment sales, Colliers International.

For Mr White, the local food and beverage outlets are part of what makes Tiong Bahru an attractive experience for tourists.

‘Although there’s a restaurant in the hotel, we’ll encourage our guests to go to the nearby Tiong Bahru market to eat, and we’ll even recommend them what’s good,’ he said.

Condo-style HDB flat prices going up

Source : Staits Times – 5th Sep 2009

PROPERTY developers have raised the prices of condominium-style public flats for the first time since their inception, in a bid to ride the mass market property boom.

A check by The Straits Times revealed that prices of flats at Natura Loft at Bishan and The Peak@Toa Payoh have risen by up to 3 per cent, or $20,000, depending on the attributes of the flats.

This move has surprised industry analysts, as buyers of such hybrid flats under the Housing Board’s Design, Build and Sell scheme (DBSS) have a fixed household income ceiling of $8,000.

‘The prices are higher but the income ceiling is still the same. These buyers are unlikely to have seen their wages rise, given the recent recession,’ said one industry analyst who declined to be named.

DBSS projects are designed, built and sold by private developers. They offer condominium-style fittings, layouts and facilities but are subject to public housing rules, such as the household income ceiling, ethnic quotas and a five-year minimum occupation period.

Developers told The Straits Times yesterday their move was in line with the booming market, with a stunning 2,767 private homes sold in July.

Mass market condominiums such as Centro Residences in Ang Mo Kio and Trevista in Toa Payoh have been launched in these mature HDB estates to good response; Centro reportedly sold at the $1,100 psf level and Trevista at $900 psf.

Three centrally located DBSS projects – The Peak@Toa Payoh, Park Central in Ang Mo Kio and Natura Loft at Bishan – priced slightly above $500 psf, have reported brisk sales, as demand for private homes has spilled into the HDB market.

Mr Zuo Hai Bin, managing director of Natura Loft developer QingJian Realty, said the 480-unit project is now more than 80 per cent sold, up from 75 per cent just a month or so ago.

Four-roomers are now all sold out, leaving five-room flats. QingJian has raised prices by between $5,000 and $20,000 on the back of an improved market, he said. But the firm has also been giving away free household appliances to attract buyers, he added.

The Peak’s developer, Hoi Hup Sunway, said prices had risen only for selected units by about 1per cent, or $5,000 to $7,000. ‘The public is still receptive to the development and demand is still strong,’ said its spokesman.

Other DBSS projects, like Park Central in Ang Mo Kio and Parc Lumiere in Simei, however, have maintained their prices.

Managing director David Liew, of Park Central developer United Engineers Developments, said prices had held at an average $500 psf as ‘DBSS housing is, after all, public housing’.

‘There’s an obligation by us to keep the selling price relatively affordable for the masses,’ he added.

From a commercial viewpoint, said PropNex chief executive Mohamed Ismail, it is ‘only natural that developers want to ride the market momentum’.

But others feel the real competition for DBSS flats is not mass market condominiums, but HDB resale flats.

‘The price gap between DBSS flats and resale HDB flats must not be too wide. Otherwise, developers will find it takes a long time to sell their flats and DBSS projects may not be viable in the future,’ said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.

When contacted, HDB said that, while developers can decide and adjust selling prices, they should ensure that prices are affordable to the target group of buyers.

‘If they overprice DBSS flats, they face the risk of poor demand and having to hold onto vacant flats. Therefore, it is in their own interest to set appropriate pricing in order to sell their flats,’ said an HDB spokesman.

Home buyer Cheow Kai Ying, 27, is one who feels that couples with an $8,000 income ceiling are unlikely to be able to afford such upmarket HDB flats if prices increase any further.

‘Public flats are, after all, meant to be subsidised,’ said Mrs Cheow.

Do the criteria reflect reality?

Source : Straits Times 5th Sep 2009

I REFER to Monday’s letter by the Housing Board, ‘How HDB keeps it affordable’.

The HDB states that flat prices are determined by willing buyers and willing sellers. In land-scarce Singapore, the notion of ‘willing buyer, willing seller’ has little practical meaning.

Suppose I want to buy a flat in Ang Mo Kio to live close to my parents but the HDB is not building any new flats there. I have no choice but to buy from Ang Mo Kio resellers.

Suppose too, I need to set up a family now and cannot wait for the build-to- order scheme to kick in, what choice do I have but to buy from the resale market?

So ‘willing buyer, willing seller’ is not a realistic picture of what is happening now.

If there are sufficient new flats available for people to choose from, where and when they like, who would be ‘willing’ to buy from the resale market?

Thus, the notion of ‘willing’ buyers stems from the reality that the HDB is not building enough new flats where Singaporeans want them.

The reply also stated that the market value of flats is determined by professional valuers. Is this realistic either?

Valuers base their valuations on recent transactions, which is as good as being determined by ‘willing buyer, willing seller’, with all its associated problems I have described.

In explaining how it arrives at its criteria for supplying new flats, it would be helpful if the HDB could detail how it takes into account the number of immigrants Singapore has admitted, as well as the number of marriages over the period in question.

The inclusion of these statistics will help answer the question of whether supply can meet demand, which Monday’s reply did not address.

The HDB uses the international affordability benchmark to rationalise affordability and concludes that homes are priced reasonably.

The international poverty line is commonly defined as US$1 (S$1.44) per day. If Singaporeans earned US$10 per day, would we consider Singaporeans to be well above poverty levels?

Clearly, US$10 per day is extreme poverty by Singapore standards, yet it is well above the international poverty line.

A more realistic benchmark would be to use international city rankings of house price-to-income ratio which is an affordability measure similar to the one used by the HDB.

As the accompanying table illustrates, Singapore has one of the priciest property markets in the world, relative to income – even dearer than Tokyo, Toronto and New York.

Ban It

Source : Straits Times – 5th Sep 2009

‘The issue here is cash over valuation.’

MR JASON ZHENG: ‘As a young couple, my fiancee and I cannot compete against buyers with access to cash, which is what most sellers ask for now. I have failed in my attempts at half-yearly sales, so the only option is resale flats. The issue here is cash over valuation (COV). The HDB discourages it because of financial prudence, and refuses loans to cover it. Yet most sellers demand substantial COV. Given the situation, why not ban COV? Alternatively, let HDB loans cover COV.’

Undersupply

‘Should the HDB build 19,000 flats a year instead?’

MR STEVEN YEO: ‘How did the HDB determine that building 8,000 new flats a year is sufficient to meet demand? There are seven applicants for each new flat. For example, there were about 24,000 marriages last year, which means only one-third of newlyweds will get a new flat. The other 16,000 must buy resale or private property. If 80 per cent of the population qualify for subsidised flats, should the HDB build 19,000 flats a year instead?’

Three-room flat

‘What percentage of income will a single Singaporean earning $2,500 a month pay?’

MR LOO FOOK KAY: ‘The HDB said a household with a monthly income of $10,000 uses only 15 per cent to service the loan on a $364,000 HDB flat. As the cheapest three-room flat costs about $200,000, what percentage of income will a single Singaporean earning $2,500 a month pay to service his loan?’

Missing factors

‘Home affordability fails to factor in opportunity costs.’

MR HOON TZE MING: ‘Home affordability, when computed based on a cost-to-income ratio, fails to factor in opportunity costs associated with access to employment, quality of public schools and environmental conditions. For example, a flat in Woodlands may be ‘affordable’ according to traditional calculation, but opportunity costs like transport cost and travel time are not factored in. The HDB might consider adopting the Massachusetts Institute of Technology Centre for Real Estate’s Housing Affordability Index, which takes these factors into account.’

Facelift for 13 more HDB estates

Source : Straits Times -5th Sep 2009

ABOUT 23,000 households across 13 HDB estates islandwide will soon see improvements to their neighbourhoods, from new covered linkways and drop-off porches to new playgrounds and letter boxes.

The Housing Board yesterday announced the rejuvenation of these estates at a cost of $86.1 million under its Neighbourhood Renewal Programme (NRP).

Under the scheme, residents have a big say in determining the look and feel of their estates by giving feedback to their town councils before such plans are set in stone.

For example, Tampines residents will be given three architectural designs to choose from and provide feedback on. At least 75 per cent of residents must vote for the final design in order for work to proceed.

Tampines was one of the first sites selected for the NRP exercise. Full details of the newly selected 13 sites will be announced over the next few months, said HDB.

National Development Minister Mah Bow Tan said yesterday that the Government is committed to rejuvenating HDB estates even during times of economic uncertainty.

He noted that the number of projects selected this year is almost double the earlier batch of seven last year.

‘Since the NRP was introduced… (it has) received strong support from residents, with high support levels averaging around 89 per cent,’ said Mr Mah, who was at the launch of Tampines’ NRP exercise last night. The event features a three-day exhibition of the designs for residents.

The NRP site launched at Tampines N9 yesterday is the largest to date, involving 38 blocks at a cost of $10 million.

The winning design will be announced at the year-end and more than 3,300 households will benefit from the improvements, said HDB.

Mr Masagos Zulkifli, Senior Parliamentary Secretary for Education and Home Affairs, said yesterday that the grassroots community had worked hard to get the approval for Tampines N9.

‘I am excited about this collective exercise not because it is the biggest NRP in Singapore, but more importantly because of the extent of involvement of the residents in deciding their own future,’ said Mr Masagos, who is also chairman of the Tampines Town Council.

Prime Minister Lee Hsien Loong first announced the NRP during his National Day Rally speech in August 2007. It is part of a key HDB initiative to renew middle-aged towns such as Yishun and Tampines.

Since then, 32 sites have been selected, of which 10 have carried out public consultations. The upgrading works are fully funded by the Government with no costs borne by the residents.

Public relations consultant Ng Mei Yan, 26, who just bought a five-room flat in Tampines, said she was thrilled to see the rejuvenation plans.

‘It’s quite timely because Tampines is quite a mature town, and it’s good that we can have a say before the plans go ahead,’ she added.

En bloc fever (or jitters)

Source : Straits Times – 5th Sep 2009

THE sprawling Laguna Park condominium estate in Marine Parade, up for en bloc tender at $1.2 billion, is only the second offering in collective sales this year. The first was the smallish Dragon Mansion in Spottiswoode Park Road, asking for $120 million. In all of last year, only seven deals eventuated, for $371 million. Contrast the poverty with boom year 2007, when 111 developments were sold to fetch a pot of $12.4 billion for the mostly satisfied sellers. Many of these cashed-up people are behind the active condo sales of the past two months. Good for them, their living standards are rising.

At the slow rate collective-sale endeavours are emerging and taking into account some property specialists’ reservations about whether the present recovery has a solid basis, there seems little likelihood Singaporeans will be consumed again soon by en bloc fever, with all the contrasting connotations it entails. Negative emotions bubbled up in the last frenetic round: a backlash against perceived avarice; loss of rootedness in an inconstant landscape; the angst of elderly residents and those who valued a settled community; the underhand means some professional advisers and sales committees resorted to in rushing deals through.

This is not a criticism of collective sales. They are a democratic means of effecting urban renewal to make Singapore looking always posh. They distribute wealth among people who have little hope of acquiring riches. For planners, the higher-density building created is necessary to house a projected optimal population by mid-century.

What has changed the outlook of the issue is that, first, the Government intervened to exact more accountability of the principals and processes involved so as to better protect minority interests. An amendment gives owners a five-day cooling-off period to reconsider consent, after a sales agreement has been signed. Second, the Court of Appeal’s quashing of the Horizon Towers deal demanded of sales committees a higher degree of care and diligence in executing the consent process. This should put the last of the cowboys to flight. Most pointedly, the court said of the Strata Titles Board – which rules on en bloc matters – that it had ‘a significant inquisitorial role’ beyond sifting through the facts presented when hearing disputes.

Orderly conversion of built-up land to better use is never in dispute as a planning policy. The appeals judges’ opinions have served to emphasise the need for care. Now, it is almost certain government land sales will be speeded up to meet building demand. Considering these factors, a collective dash to tear buildings down is unlikely to be repeated to the same old degree.

CapLand to unveil 2 more home launches

SINGAPORE’S largest property developer CapitaLand is set to roll out two more residential launches this year – the 1,040-unit The Interlace on the site of the former Gillman Heights, and a 165-apartment luxury project in Cairnhill Road on the site of the former Char Yong Gardens.

The company yesterday unveiled the design for the The Interlace, which it is developing with Hotel Properties Ltd. The project will cost about $1.4 billion all up, including the $548 million – or $363 per sq ft of potential gross floor area – paid for Gillman Heights in 2007.

Prices could start from about $700,000 for a two-bedroom apartment, CapitaLand said. The project will be launched next month.

The Interlace was designed by Ole Scheeren, a partner at the Office for Metropolitan Architecture – the firm behind the design of the distinct 54-storey China Central Television Station headquarters in Beijing. For The Interlace, Mr Scheeren wanted to break away from the standard kind of residential project in Singapore comprising a cluster of isolated, vertical towers.

Instead, the design for The Interlace explores a new take on tropical living with an expansive and interconnected network of communal spaces. Thirty-one apartment blocks, each six stories tall, will be stacked in a hexagonal arrangement to form eight large-scale courtyards. The interlocking blocks will resemble a ‘vertical village’ with cascading sky gardens and private and public roof terraces.

‘This is a great opportunity to create and build a residential destination at the Gillman Heights site that will challenge the present architectural definition of the living space,’ said Patricia Chia, chief executive of CapitaLand Residential Singapore.

The Interlace will offer a variety of homes, from two and three-bedroom units to penthouses, when sales start in October. CapitaLand declined to say how the apartments will be priced in psf terms, but said that the construction cost for The Interlace will be around $250-$270 psf.
It added that it will not be ‘greedy’ when it comes to the profit margin it is looking for and that homes will be ‘affordable’. Analysts have previously estimated a breakeven cost of around $750 psf for the site, with an average selling price of $900 psf.

The next launch for CapitaLand is the 165-unit freehold condominium at the former Char Yong Gardens, which will be rolled out before the end of this year. The project, designed by Kerry Hill Architects, will be a luxury development, said CapitaLand chief executive Liew Mun Leong.

CapitaLand bought Char Yong Gardens for $1,788 psf of potential gross floor area, including development charges payable to the state, at the height of the property boom in 2007.

More launches are planned for 2010, including one at Farrer Road on the former Farrer Court site. CapitaLand forked out a record $1.3 billion for that site in a collective sale in 2007.

However, the en bloc market is unlikely to rebound to such levels again in the near future, Mr Liew said. The Laguna Park development on the East Coast is currently being offered for $1.2 billion, which would be the second-highest price ever for such a transaction.

Mr Liew said: ‘Given the cost of the land, given the construction cost and given the demand, it is too early for developers to confidently say the world economy has recovered and there will be buyers who can afford the price.’

He also said that a 5 to 15 per cent increase in private home prices here would be ‘reasonable’ given pent-up demand and the low interest rates. ‘(But) if it jumps 30 per cent, then I will be a little bit concerned about whether it is sensible,’ he added.

Private home sales in Singapore jumped 52 per cent month-on-month in July to 2,767 units. A record 1,825 units were sold in June – but that number was easily surpassed just a month later. And prices are beginning to edge up. New projects released in recent weeks have been priced higher than in early 2009.

Source : Business Times – 5th Sep 2009

Preventing a property market bubble

Source Business Times – 4th Sep 2009

THAT the government is sending a second signal in the space of two months that it is watching developments in the property market underscores its unease over the current real estate boom. And this time, the government has upped the ante a notch, after the earlier caution appeared to have made little impact on the market.

On Wednesday, Minister for National Development Mah Bow Tan said that there is a ‘definite possibility’ that the government will re-introduce land sales through its confirmed list system from next year – thus increasing the potential supply of homes – and that it was ‘a question of how much we put on the confirmed list’. Sale of state land under the confirmed list was suspended for the first half 2009 Government Land Sales Programme to help stave off oversupply risk as the property market here was then on a downtrend. This came after Mr Mah warned earlier in late July that speculation was trickling back into the property market. The government was watching the situation closely, he said then, and will take action should the market overheat. But that seemed to have made little impression on sentiment, and was followed by several ‘hot’ property launches where queues formed and units were snapped up immediately.

It is clear that the government’s central concern remains: a galloping property market that is out of sync with Singapore’s deepest recession. In July, developers sold a whopping 2,767 units of new private homes, smashing the record of 1,825 units set only in June. These are numbers that have never been seen in Singapore – not even during the height of the last property boom which took place during a period of economic growth. In just two months this year, developers have sold 328 more homes than in the whole of last year.

To be sure, things are looking up for the economy. According to the latest Monetary Authority of Singapore survey, the median forecast for this year is now a 3.6 per cent contraction in GDP, a much brighter outlook than the 6.5 per cent decline forecast in June. Expectations for next year’s GDP growth have risen to 4.5 per cent as well. But economists are still warning that this is a nascent recovery still, subject to risks, and that a clearer picture will form only several months down the road. And while the jobs front has held up better than expected, this is due in large measure to the government’s schemes to support employment, rather than a recovery in orders.

The market is taking comfort in the government’s graduated response so far, but there is no doubting that it will take stronger action if it deems necessary. While the measures indicated now are supply-oriented, demand-side measures, such as curbs on mortgages, cannot be ruled out if there is real danger of a property bubble forming. Much will depend on the level of competition of bids for government sites going forward, the take-up of mid and mass-market projects, as well as macroeconomic indicators. The property market has been sufficiently warned

Deals stay hot on bungalow fever

Source : Business Times – 4th Sep 2009

Good times continue to roll for the Good Class Bungalow (GCB) market, with some high-profile business personalities involved in the latest transactions. They include palm oil giant Wilmar International’s chairman and CEO, Kuok Khoon Hong, and Prima Group boss Bernard Cheng.

The latest deals have boosted the volume of GCB transactions between January and August this year to about 60 deals with a total value of around $900 million, surpassing the $830 million transacted in the whole of last year, latest figures from CB Richard Ellis (CBRE) show. The actual year-to-date numbers could be higher if caveats for some deals done in August have still not been lodged, suggest property market watchers.

CBRE’s director, luxury homes, Douglas Wong is now predicting record GCB sales totalling $1.2 billion to $1.4 billion for the whole of this year, encompassing 80-90 transactions – up from his earlier forecast of around $1.1 billion-$1.2 billion made just three weeks ago. Up to now, the highest full-year value of GCB transactions was achieved in 2006 – involving $1.23 billion across 119 deals.

Savills Singapore director of investment sales & prestige homes Steven Ming said that while the GCB market remains active, ‘buyers continue to approach purchases with measured optimism and are sensitive to price increases’.

Wilmar’s head honcho, Mr Kuok, and his wife are said to have bought two adjoining GCB properties on Victoria Park Road last month for a total of about $44.17 million. The couple paid about $24.5 million for No. 35 Victoria Park, a two-storey bungalow with a swimming pool; the price works out to $750 per square foot (psf) based on the land area of 32,688 square feet. The sellers are believed to be members of the Khoo family linked to Kimly Construction.

Mr Kuok and his wife also picked up the next-door property at 37 & 39 Victoria Park, an old single-storey bungalow, for $19.65 million or about $660 psf. The seller is said to be Ng Cheong Bian, son of the late Ng Bok Eng, dubbed ‘king of cloves’.

Both properties – Nos. 35 and 37/39 Victoria Park – have 999-year-leasehold tenure.

Bungalow market watchers say they would not be surprised if the Kuoks amalgamate the two plots for redevelopment into a plush new GCB on sprawling grounds of more than 60,000 sq ft.

DTZ is understood to have brokered the sale of both properties.

Last month, Prima Group boss Bernard Cheng is believed to have sold his freehold bungalow at Queen Astrid Park for $24 million or about $877 psf to Zain Fancy. A person bearing the same name was formerly head of Morgan Stanley Real Estate Investing for Asia Pacific and who late last year joined Och-Ziff Asia Real Estate as executive managing director and is based in Singapore. The entity is part of New York-based fund management giant Och-Ziff Capital Management Group.

Ho Tian Yee, managing director of Pacific Asset Management, is said to have picked up a bungalow at Astrid Hill in July for $20.5 million or $654 psf on its land area of about 31,360 sq ft. Meanwhile, 12 Bishopsgate, with a land area of around 16,550 sq ft, changed hands last month for slightly more than $19 million or about $1,150 psf.

The year began slowly for the GCB market with just three deals worth about $27.5 million in the first quarter. However, things soon gained momentum with around $432 million worth of deals done in Q2 and about $436 million in July and August.

GCBs are the creme de la creme of Singapore’s housing market, with stringent planning requirements. There are only about 2,400 such bungalows in Singapore’s 39 gazetted GCB Areas. ‘Liquidity, cheap financing and the general belief that the worst of the economic crisis is over are fuelling this run,’ says Savills’ Mr Ming.

‘Furthermore, it appears the wealthy are allocating a greater proportion of their investments to real estate. GCBs, being limited in nature but highly desired amongst the rich, become highly sought after.

Chiu family is top bidder for New Bridge Road Hotel Site

Source : Business Times – 4th Sep 2009

THE Chiu family of Hong Kong that used to run the former Tang Dynasty City attraction in Jurong is poised to make a comeback on the Singapore hospitality scene.

A unit linked to the family emerged as top bidder yesterday in a state tender for a 99-year leasehold hotel site at New Bridge Road, near Outram Park MRT Station, Pearl’s Centre and Singapore General Hospital (SGH).

The top bid of about $67.7 million works out to almost $401 per sq ft (psf) of potential gross floor area.

Dennis Chiu, a director of Leedon Investments, which placed the highest bid, told BT the group hopes to develop a boutique business hotel with about 300-400 rooms.

The development cost could be in the order of $400,000 to $500,000 a room, he said. Details were still being worked out.

A spokeswoman for the group said construction costs for the hotel could be around $70-80 million.

The proposed hotel will be linked to the current exit on the site linked to Outram Park MRT Station.

The Chiu family also owns more than half of Parkway Centre in Marine Parade and the entire office block and car park at Pearl’s Centre.

It controls the Far East Consortium International Ltd (FECIL) group in Hong Kong – no relation to Singapore property giant Far East Organization which is controlled by tycoon Ng Teng Fong.

FECIL owns and operates hotels in China, Hong Kong, Macau and Malaysia under the Dorset and Cosmo brands. It also owns the Lan Kwai Fong Hotel in Hong Kong, a hip boutique establishment.

Jones Lang LaSalle Hotels executive vice-president Chee Hok Yean said that the New Bridge Road site in Singapore has a convenient CBD-fringe location.

‘A hotel on the site may also cater to medical tourism given its proximity to SGH, and it will be close to the Sentosa integrated resort,’ she said.

CB Richard Ellis director Leonard Tay said that the location ‘capitalises on the traditional ambience of Chinatown area, a historic draw for tourists who prefer an alternative to the main Orchard Road hotel belt’.

Yesterday’s state tender for the 0.45-hectare site drew six bids. The top bid was 5.9 per cent above the next highest offer of about $63.9 million or $378 psf per plot ratio (psf ppr) from New Bridge Development.

That company is controlled by Tan Koo Chuan of Yi Kai group, Melvin Poh of Fission group – the two teamed up to develop the Alexis condo that sold like hot cakes earlier this year – and Indonesian investors.

Other bidders for the site included Roxy-Pacific Developments (about $53.9 million), DS Lee Singapore General (almost $52 million), Hotel Royal Investment ($48.29 million) and Kah Motor Co Sdn Bhd ($45 million).

The Urban Redevelopment Authority launched the plot for tender from the reserve list after it received an application with a minimum bid price of $43.89 million or $259.92 psf ppr.

In June this year, a tender for a hotel site in Short Street in the Selegie Road area drew a whopping 15 bids. Fragrance Group won the site with its $15.51 million ($353 psf ppr) top bid.

A smaller pool of bidders participated in yesterday’s tender for the New Bridge Road site, as it is larger and involves a much bigger outlay, analysts say.

410 units snapped up at Trevista preview

NTUC Choice Homes has sold 410 of the total 460 units it released for the preview of its Trevista condo in Toa Payoh last week. The co-operative is expected to release more units in the 590-unit project this weekend when it does an official launch, accompanied by an advertising campaign, for the project.

Singaporeans picked up 87 per cent of the total 410 units. Permanent residents made up 7 per cent and non-PR foreigners, 6 per cent, of buyers.

The majority of PRs and non-PR foreigners were from China; some were also from Indonesia and Malaysia; there were also a few Swiss nationals, an NTUC Choice Homes spokeswoman said.

She said 70 per cent of the buyers have HDB addresses and the other 30 per cent, private addresses.
About 80 per cent of buyers purchased on the normal progress payment scheme. The remaining 20 per cent who opted for interest absorption scheme are being charged a 2 per cent price premium, the Choice Homes spokeswoman said.

When sales in the 99-year leasehold condo began on Friday morning for the first batch of 210 units, the average price was $898 per square foot, but with two subsequent batches of additional units released, prices were adjusted marginally upwards, although this also had to do with the newer units being on higher floors and having better orientation.

The average price currently is understood to be around $920 psf.

What’s left are a limited number of two-bedroom units, with the majority of what’s available being three- and four-bedroom apartments, BT understands. The remaining 130 units in the condo are expected to be released this weekend and they include prime pool-fronting units.

Trevista is being marketed by CB Richard Ellis and ERA.

Over at Ridgewood Close in the Mount Sinai area, Singapore Land is understood to have sold slightly more than 100 units at its preview of Trizon, a 289-unit freehold condo.

Two of the project’s three blocks have been released for sale. The units were priced between $1,250 psf and $1,550 psf and buyers are understood to be mostly Singaporeans with some foreigners (predominantly Indonesians).

A typical three-bedroom unit of 1,550 sq ft costs about $2.12 million.
SingLand is selling the 24-storey project with only the normal progress payment scheme. It will hold an official launch of Trizon this weekend

Source : Business Times – 1 Sep 209

Property run-up may end in 2010: UK Group

Source : Straits Times – 2 Sep 2009

THE run-up in Singapore’s private home prices may
fizzle out next year, as several obstacles are still impeding global growth
momentum.That is the view of London-headquartered Royal Institution of
Chartered Surveyors (Rics), which represents and regulates property
professionals and surveyors. It issued a report on Monday concluding
that the sharp residential market rebound here may peter out. It cited higher
unemployment in Singapore as a potential risk factor that could undermine the
property rebound here.In contrast, top local developer CapitaLand
remains bullish in its outlook for Singapore, and will soon launch a 1,000-unit
condo in Gillman Heights and 165 resort-style homes at the former Char Yong
Gardens site. CapitaLand’s upbeat outlook on the market here was reflected in
slides presented by its vice-president of investment Anson Lim at a CapitaLand
CEOs forum held yesterday.

The current market upswing is being driven
by positive sentiment and supported by long-term fundamentals, according to the
slides. CapitaLand expects the Urban Redevelopment Authority price index to
recover between 5 per cent and 10 per cent for the rest of this year, from the
trough in the second quarter. The index showed a fall of 4.7 per cent in the
second quarter. The Rics report was rather less optimistic. It said
while an upturn in activity is already well under way in the residential
market, significant risks present a challenge to the market in the medium
term.

‘Labour market indicators, such as unemployment, certainly point
to a less benign story,’ it said. Unemployment in Singapore looks set to rise
sharply in the coming quarters. Based on previous relationships with the world
trade index, unemployment could easily climb to 5 per cent before the year is
up, it said.

Singapore’s unemployment rate was 3.3 per cent in June.
Labour chief Lim Swee Say said last month that the jobless rate this year was
unlikely to match the peaks of past downturns. The rate peaked at 4.3 per cent
in 2003.In the short term, residential prices may be propelled higher
on an improved global economy into the fourth quarter, said the Rics report.

However, the duration of previous downturns indicates further declines
in prices may well occur, should global trade momentum fall short in the medium
term as high debt and rising real interest rates weigh on the strength of the
global growth recovery, it said.This, it added, would temper buoyancy
in the Singapore labour market and in turn would prevent a return to previous
highs in the property sector. The Rics report also noted that the
run-up in office prices has been less acute, compared with residential prices’.

‘Despite improved signs that economic activity in Singapore has passed
its worst point in the cycle, the global economy will once again be pivotal in
dictating the sustainability of that upturn, with real property prices unlikely
to surpass recent highs in the coming quarters,’ it said.

Joo Chiat Hotel put up for sale

Source : Straits Times – 2 Sep 2009

A SMALL low-rise hotel in Joo Chiat Road is up for
sale at an asking price of $20 million to $22 million. Its owner, a local investment firm formed by a group of individual investors, is looking to sell now as market conditions are ripe, said Ms Yong Choon Fah, executive
director of Credo Real Estate, which is marketing the property.

Joo Chiat Hotel, previously known as Astro Hotel, was put up for sale in a tender in 2004. The asking price was up to $9 million, though market watchers reportedly expected bids of only about $7 million. There were no bids. The
three-storey property – a conserved building approved for hotel use in the conservation district of Joo Chiat – has 68 guest rooms and one pub. Both are leased by operators at a total gross annual rental revenue slightly in excess of $1 million, she said. At $20 million, the buyer would secure a rental yield of 5.25 per cent for at least another year. The $20 million price works out to about $294,000 a room, slightly above the market rate of about $250,000 a room for similar-grade hotels. The property has a lease of 99 years starting from June 1995 and the total gross floor area is about 22,925 sq ft. The rooms go for about $60 to $80 a day. The sale tender comes about eight months after a ban on offering hourly hotel rates was put in place in Joo Chiat. While the area boasts a rich cultural heritage, it has been tainted by vice activities.

Joo Chiat Hotel is one of the nine hotels in the area affected by the ban but Ms Yong said the owner’s decision to sell has nothing to do with the ban. She said the asking price takes into account the limited supply of hotels in the area. Also, the property is near the growth area of Paya Lebar Central and has ‘great potential for the realisation of an improved stream of revenue income and capital appreciation’, she said.The tender closes on Oct 6.

SLA to auction plot at Defu Lane

Source : Business Times – 2 Sep 2009

THE Singapore Land Authority (SLA) is set to auction a site for heavy vehicle parking at 42 Defu Lane 7. The 21,058
sq m plot will be offered on a three-year lease with an option to renew for a further two years. The specified minimum deposit is $39,000. Two site visits will be conducted at 4pm on Sept 8 and 9. Only heavy vehicles with a maximum laden weight exceeding 5 tonnes, such as buses and trailers, can park at the site. SLA has appointed Colliers International (Singapore) the auctioneer. The public auction will be held at 2.30pm on Sept 23 at Amara Hotel.

How HDB keeps it affordable

Source : Straits Times – 31 Aug 2009

WE REFER to the letters, ‘High HDB prices: Squeezed even harder’ and ‘Two shortcomings: Public housing too correlated to private market, and HDB has not regulated supply’ (both Aug 22); and ‘Flat hunting: Why was cash over valuation ever introduced?’ (Aug 20).

Cash over valuation: Resale flat prices are the result of negotiations between willing buyers and sellers. Cash over valuation (COV) arises when buyers are willing to pay more than the market value of the flat, as determined by professional valuers.

However, for financial prudence, HDB and the banks will provide a loan of only up to 90 per cent of the market valuation. Therefore, if a buyer is willing to pay more than the valuation, the excess will need to be paid in cash, thus the term cash over valuation.

COV is not determined nor imposed by the Government. However, we can expect a flat seller to ask for as high a price as possible. On their part, buyers should first arm themselves with relevant information before negotiating with flat sellers.

To help buyers and sellers make informed decisions, HDB provides information on recently transacted resale prices and COV on its website. In July this year, 31 per cent of resale transactions were conducted with no COV. The median COV level was $7,000. Given the wide range of flats in the resale market, flat buyers should buy a flat they can afford.

Supply of new flats: Besides resale flats, new flats form another part of the housing supply to meet demand. In response to rising demand, HDB has steadily increased the supply of new flats. From just 2,400 new flats in 2006, in the first half of this year alone, 4,300 new flats were offered. Given the continuing strong demand, HDB will increase the new flat supply under the Build-To-Order (BTO) system this year to at least 8,000 units.

Affordability: HDB aims to make public housing affordable for eligible first-time households. These households are generously subsidised for their purchase of new or resale flats. On average, first-time households used 21 per cent and 25 per cent of their monthly income to service their loans on new and resale HDB flats respectively in non-mature estates. These figures are well below the international affordability benchmark of 30 per cent.

The monthly household income ceiling of $8,000 allows a vast majority of Singaporean households – about 80 per cent – to qualify for subsidised housing. Households whose income exceeds this ceiling can buy resale flats, where there is a wide range of supply to suit varying budgets.

For example, if a household with a monthly income of $10,000 buys a five-room resale flat in a non-mature estate at the average price of $364,000, it would need only about 15 per cent of its income to service its loan.

Tech platform boost for property transactions

Source : Business Times – 31 Aug 2009

PROPERTY buyers hunting for their dream Housing Development Board (HDB) flat could find their task made easier when a project by the Singapore Land Authority (SLA) to computerise 800,000 HDB titles and 3,300,000 HDB documents comes online.

The $8.2 million undertaking, called Singapore Titles Automated Registration System 21 (STARS21), will also benefit lawyers, property agents and the general public, said Bryan Chew, SLA director of Regulatory Division and senior deputy registrar of titles.

Speaking to BizIT last week in an interview, Mr Chew said convenience and time-savings will be the key benefits of this system, which is expected to be completed by end-2013.

SLA, a statutory board that oversees land sales, leases, acquisitions and allocation and other land-related duties in Singapore, currently operates a computerised land registration system for private properties but upkeeps its far-larger crop of HDB titles and documents as physical records. Its current database of 800,000 HDB titles and 3,300,000 HDB documents form about 80 per cent of its registry’s records.

With STARS21, SLA is set to create a single computerised and integrated platform that encompasses both private and HDB properties. Tasks associated with the transaction of properties, like title search, lodgement and registration of properties, are expected to be significantly boosted under the new platform.

Presently, searches on property details of HDB flats typically takes 10 to 15 minutes. This process involves SLA staff retrieving hardcopy leases or documents, making copies of them and then faxing or posting them to the customer.

In future, search results can be immediately and automatically dispatched over the Internet.

While the ease and speed of the title searches will not by themselves shorten the transaction process, they could help buyers in their search. ‘Before placing a deposit, buyers can always go online and search that the owners are who they profess to be,’ Mr Chew said.

For lawyers, key benefits include time savings and convenience as they will be able search for information faster, as well as lodge HDB caveats, transfers and mortgages electronically, without leaving their offices and at any time of the day.

SLA, too, is expecting to reap rewards from its investment.

According to an SLA, there are an average of 5,500 searches for HDB flats each month, based on figures collated from the first seven months this year. Extrapolating the numbers give an annual average of around 66,000 searches for 2009.

This means a saving of over 450 man-days, taking into account the estimate of around 10 to 15 minutes to process each search request.

STARS21 was unveiled earlier this month by Singapore Technologies Engineering (ST Engineering), which announced at the time its electronics arm ST Electronics had won the contract. The system is being built around Hewlett-Packard equipment and software, and employs a technology concept known as Service-Oriented Architecture.

Next big power stations to be sited in eastern Singapore

Source : Business Times – 31 Aug 2009

SINGAPORE’S next big power stations will be built in the eastern part of the island. Potential sites will be set aside and further information on them could be released to investors within months.

With most of the existing power stations in the west, apart from Senoko in the north, ‘we think there are benefits for a power station in the east’, said Energy Market Authority CEO Lawrence Wong.

‘It’s not just about security or strategic reasons,’ he said. ‘Having electricity generation closer to the load or demand as new industries or clusters grow in the east makes a lot of sense in terms of reducing transmission losses.’

‘We have looked at possible plots in the east that can be set aside for power stations and will be putting out some of this information in due course so investors looking at new generating plants can consider these as possibilities.’

EMA is looking at releasing information on the sites either in October or November this year as part of its annual Statement of Opportunities report, or in next year’s report, depending on when it is ready.

At present, two of the three biggest power plants here, PowerSeraya with 3,100 megawatts (MW) and Tuas Power with 2,670MW, are located in the West, along with Sembcorp Cogen (815MW) and Keppel Merlimau Cogen (498MW) on Jurong Island. Only the 3,300MW Senoko Power is in the north.

The move east – where there are still large plots available for large-scale power generation – is logical given the shortage of land in the west, especially on Jurong Island.

‘In the end, it’s all about land availability,’ said Mr Wong. ‘It depends on what sort of plant the investor is looking at. For example, a cogeneration plant producing both electricity as well as steam for industries is different from a stand-alone power generation plant.

‘If you are talking solely about power generation, there are not many sites available on Jurong Island for such a facility. So that’s a constraint.’

Given the general shortage of land, JTC Corporation has also embarked on an island-wide underground feasibility study, with underground power stations a potential application.

On this, Mr Wong said: ‘There is an inter-agency process going on within the Trade and Industry Ministry and we’re not ready to talk about details yet.’

Underground plants are possible and ‘already being done elsewhere’, he said, recounting a recent visit he made to two underground hydro-power stations at Manapouri in New Zealand that generate about 850MW.

‘But whether the idea is applicable here, given our geological considerations and our circumstances, that’s a question that remains,’ Mr Wong said.

Construction firms ride on previously won contracts

Source : Business Times – 31 Aug 2009

THE construction industry was the only sector of the economy that continued to grow in the second quarter. And some listed contractors here, riding on contracts secured earlier, have reported increased revenues and earnings for the quarter or half year ended June 30, 2009.

But cracks are beginning to show: Other construction companies, hit by the economic downturn, posted weaker numbers than a year ago.

Figures from the Ministry of Trade and Industry show that the construction sector grew nearly 19 per cent year-on-year in Q2 2009 – the sole bright spot amidst an overall 3.5 per cent decline in GDP in the quarter.

The positive growth is expected to continue into the second half of the year, with the Building and Construction Authority forecasting total construction sector demand of $22-28 billion this year.

On the back of the uptrend, several listed contractors reported higher revenue and earnings for the recently-ended quarter.

Koon Holdings, a civil engineering, reclamation and shore protection specialist, reported a net profit of $4.7 million for the six months ended June 30, 2009 – a turnaround from a net loss of $3.5 million in H1 2008. The surge in net profit was fuelled by a 27 per cent increase in revenue to $70.1 million in H1 2009.

BBR Holdings likewise reported better-than-expected results in Q2 2009. Revenue came in at $53.8 million, down 41 per cent from $91.7 million in Q2 2008. This was mainly attributable to substantial completion of a few key construction projects in Q2 2009. And net profit declined a milder 12 per cent year-on-year to $1.8 million in Q2 2009 on the back of lower contributions from its associates.

But other companies have not fared as well.

Crane operator Tat Hong Holdings reported a 37 per cent year-on-year decline in revenue to $120 million for the three months ended June 30, 2009 (which is the first quarter of the company’s 2010 financial year) as equipment sales plunged 60 per cent because customers remained cautious on spending.

‘The group continued to suffer the impact of the global economic crisis in Q1 2010 as customers remained cautious in their capital expenditure amidst the tight credit environment,’ said Tat Hong chief executive Roland Ng in a statement. ‘Compared with the record performance in Q1 FY2009, group revenue and net profit reflected significant declines.’

Most firms here said that they were cautiously optimistic. Especially upbeat were companies that have secured projects earlier this year, and will now start to book revenues from these projects.

Koon Holdings, for example, has secured three projects worth about $63.0 million so far this year, aided by the influx of public sector construction projects. These projects will contribute to Koon’s topline from the second half of this year, the company said.

BBR also has healthy order books of close to $400 million, which includes the $104.2 million project secured from HDB – a first for BBR. The contract runs until January 2012.

Sub-sales triple in second quarter

Source : Sunday Times – 30 Aug 2009

Mass-market and mid-tier projects are hot, but it is taking longer to sell investment properties

The upbeat sentiment in the new private home market has lured out the sellers in the sub-sale market.

Sub-sales – the sale of uncompleted homes by their buyers – of non-landed private properties tripled to 1,200 units in the second quarter, according to a DTZ quarterly report.

This time, though, it is mainly the mass-market and mid-tier projects that are popular sub-sales. In 2007, it was the higher-end projects that found favour with buyers.

Also, the sellers are taking longer to sell their investment properties.

The DTZ study found that a few mass-market projects made their way to the Top 10 list of projects with the most sub-sales. These included Casa Merah, located near the Tanah Merah MRT Station, The Centris in Jurong West and The Quartz in Compassvale.

For instance, there were 54 sub-sales in Casa Merah in the second quarter, and the median sub-sale price rose from $658 psf in the first quarter to $734 psf in July and August.

The most popular sub-sale project in the second quarter was Rivergate, located at Robertson Quay.

The median price of its sub-sale units rose from $1,200 psf to $1,400 psf, and 105 of its 545 units changed hands in the second quarter alone. Prices have since risen further – deals done in July and August ranged from $1,400 to $1,880 psf, according to caveats lodged.

Two perennial favourites are The Sail @ Marina Bay and Icon, prime projects in the central locations of Marina Bay and Tanjong Pagar respectively.

Despite being launched between 2003 and 2005, they still remain popular in the sub-sale market. Their median prices rose 27 per cent and 17 per cent respectively from the last quarter.

Sub-sale buyers tend to be true investors, said HSR Property Group executive director Eric Cheng.

Upgraders, he said, prefer not to buy sub-sales as they do not wish to pay a premium. Those who do, however, find mass- to mid-tier market projects more affordable.

Analysts say that the higher number of sub-sales could be due to the many units that were completed this year.

Ms Chua Chor Hoon, DTZ’s head of South-east Asia research, says there is normally a high level of sub-sales for a project when it is nearing, or just after, completion.

‘In 2006, 6,250 units were completed. This year, 11,367 units are expected to be completed,’ she said.

Mr Cheng pointed out that projects sell out very quickly in today’s market, and some buyers who missed out on the chance of buying a unit do not mind paying a small premium to get a unit if the price is not too far away from the launch price.

These buyers often have compelling reasons, said Mr Cheng. They might have family living nearby, or even on the same unit level.

Despite the higher number of sub-sales now, the number of properties bought and sold within a short span of time is not as high as during 1996 or 2007, said Ms Chua.

‘The number and percentage of units bought and sold within a six-month period in the first half of the year is a lot less than those in 2007 and 1996,’ she said.

Citing data from Realis, she said 88 units were ‘flipped’ in the first half of this year, compared to 517 in 1996 and 835 in 2007.

Flipping occurs when someone buys a property and resells it quickly for a profit.

‘Buyers now tend not to buy another unit so quickly because they often have a choice of other surrounding units that are being sold as well,’ said Mr Cheng.

‘There are a lot of short-term investors who would like to resell for a profit, but might not be able to because they ask for too much. There are also a lot of launches coming up.

‘Market fundamentals are not that strong even though market sentiment is, and we might see a pull-back effect,’ he said

Purr-fect end to en bloc tale

Source : Sunday Times – 30 Aug 2009

Two years ago this month, Singapore was in the grip of en bloc fever. Condominiums were being sold for redevelopment faster than you could say Strata Titles Board.

The frenzy resulted in a flood of dispossessed tenants having to search for somewhere new to live. The mass move still has ripples today. In my own small world, it set the cat among the pigeons, literally. This is the tale of my tabby cat, Poppet.

Our family had been renting the same condo unit for eight years when suddenly our landlady phoned to say that the condo apartment that she herself had been renting – a nicer, bigger place close to town – had gone en bloc. She had tried to find somewhere comparable to live, but buildings all around her were also undergoing collective sales, and at those that hadn’t, the rents had gone through the roof.

As a result, she was going to have to move to our small unit and make do there. She did not want to come, and we did not want to go. But move we all had to.

Luckily, I managed to find somewhere to live within the same condo, but on the other side of a steep hill.

I worried how our nervous cats, Charli and Poppet, would cope with the move.

The pair were trouble at the best of times. We had selected Poppet from the Society for the Prevention of Cruelty to Animals (SPCA) as a companion for Charli, who, alas, detested her at first sight, and their relationship was one of benign mutual loathing.

At the new apartment, Charli ambled in and made herself at home. But pesky Poppet escaped as soon as she found an open door. Two days later, she turned up at our old place. She had crossed two internal roads, evaded numerous dogs and climbed down scores of steps to get there. I bundled her up and brought her back.

This to-ing and fro-ing went on over several weeks. I tried locking Poppet in our place, but she yowled non-stop for days until I either had to let her out, or go mad. Once out, she was off, drawn by some homing instinct back to her familiar territory. A distinct look of triumph glinted in Charli’s green eyes whenever Poppet made a dash for it.

At the old place, another problem emerged. Our former landlady complained that Poppet was a nuisance, often caterwauling incessantly to be let inside. Once she weakened and let Poppet in, only to have kitty bite her hand when she fed her fancy tuna. The bite required tetanus injections, and many apologies from me.

I made the sad decision to take Poppet back to the SPCA. Several times I went over with a cat carrier, and cunning Poppet hid from sight. Then, one day, I got her. But as I turned to cart her away, the landlady’s maid rushed out and begged me to let the cat stay. Imelda had taken a liking to Poppet, and said she would persuade our former landlady to get used to her. This was as long as I paid for the cat food and kitty litter.

So for two years, I took food or money over once a week. Poppet adored Imelda, who renamed her Princess. The fortunate feline enjoyed being pampered and fussed over. Sometimes I glimpsed her fluffy, well-fed form sprawling on a Persian rug. I once called to her, and the ungrateful creature lifted her head, glanced at me blankly, and turned away.

But then came new housing anxiety. Singapore’s property market suddenly took off. Someone made a nice offer to buy our former home, and our former landlady sold up, and moved overseas with Imelda. The old place has been empty for a month now, and I have tried to rehouse Poppet with us.

But still, she kept returning to the empty home. For a while, the cunning critter ensconced herself within a large prickly bush nearby, which kept her safe from stray cats there. I went back once a week to feed her. One day, a security guard came upon a huge python devouring one of the strays – he photographed the cat’s furry remains with his camera phone – and I knew I had to find Poppet a safe home with someone who loved her – yowls, Princess airs and all.

I placed advertisements around the estate, and last week I carried Poppet to her new owner, a Singaporean who has renamed her Karunaa, the Buddhist word for compassion. I certainly hope Poppet/Princess/Karunaa enjoys some Zen moments after all this.

The writer is a copy editor with the Life! section of The Straits Times. She is a New Zealander who has lived here for 16 years

Lights, action and more ads

Source : Sunday Times – 30 Aug 2009

Imagine Bugis resembling Tokyo’s Shinjuku or New York’s Times Square – commercial signs throbbing with lights, music blaring from every corner and crowds thronging the sidewalks.

This could be a reality soon with the Urban Redevelopment Authority’s (URA) push for the area, earmarked as Singapore’s entertainment hub, to cultivate some vibrancy and verve.

Orchard Road and Chinatown too have been singled out by the authority for some bright lights and action.

It is wrapping up a review of its guidelines on advertising signs and is expected to relax existing rules before the year end.

Changes it will likely roll out: expanding the areas where signs are allowed in Bugis, Orchard and Chinatown, and allowing advertising signs to go higher on buildings fronting strategic road junctions in Orchard and Bugis.

This means lifting the height restriction of 30m, or about six storeys. ‘At key road junctions, signs can be a bit higher. Then, you can mark that as a gateway or node for that area,’ said Mr Andrew David Fassam, URA’s director of urban planning.

But it will not budge on its ban on free-standing billboards, signs on rooftops or in residential areas, or anything high enough that can be seen from other parts of the city.

These advertising formats, once a significant part of Singapore’s cityscape, were outlawed in 1993 because the authorities felt they marred the city’s image.

That clean-up drew mixed reactions from the public. Some accused the authorities of overly sanitising the city, making it dull compared to Tokyo, Hong Kong and Shanghai. But others welcomed the uncluttering.

‘From an advertiser’s point of view, you get maximum exposure with these signs. But what is their impact on the city? At night when they are all lit up, it may look attractive. But you don’t see the steel structures behind them,’ said Mr Fassam.

Anyone – landlords, advertisers or contractors – who wishes to put up an outdoor advertising sign has to apply for a licence from the Building and Construction Authority (BCA).

The statutory board grants about 30,000 licences a year. Nearly half are for company signboards. Another 46 per cent are for advertisements while 5 per cent are for banners.

Those who flout regulations can be fined up to $5,000. URA has been loosening the reins over the past decade. In 1997, it introduced guidelines to allow advertisement signs in Orchard, New Bridge Road and Eu Tong Sen Street, and Bugis.

In 2001, it included three more areas: Raffles Place, Marina Centre and Singapore River. In 2002, flicker lights made a comeback.

The URA benchmarked itself against cities like Sydney, New York, London, Shanghai, Hong Kong and Seoul. They had one thing in common: guidelines varied from district to district.

While they encouraged advertising signs in shopping and entertainment precincts, they generally frowned on signs in business, residential and heritage areas.

In New York, Wall Street is largely devoid of garish advertising signs while Times Square swings the other way. In fact, the latter’s vibrancy is carefully orchestrated, said Mr Fassam, adding that the authorities mandate that every building owner there puts up signs.

Experts say billboards can be an eyesore, but given the right touch, they can also enhance the streetscape. ‘The principle behind the guidelines is to be sensible and sensitive to the architecture of the city,’ said architect Tan Kay Ngee.

He thinks the skyline can be made more attractive if elegant signs are allowed on top of certain skyscrapers in the Central Business District, ’so the city is not so sleepy’.

Another issue concerns trees. Said architect Wong Mun Summ: ‘One of the things that have to be tackled is, while we want to support all this, the trees are in the way. If we want designated bright lights, we need to make sure the signs are visible.’

In Bugis where there are many proper walkways, trees can be smaller so they do not block signs. In Orchard where big trees provide shade and shelter, guidelines should allow for signs to be seen through the trees either at the bottom or the top, suggested Mr Wong.

URA has urged landlords to consider incorporating ad space or lights into the building’s architecture.

Outdoor media firms welcome the changing signs of the times.

There is a shortage of outdoor advertising space, said Mr Edward Tang, general manager of SPH

MediaBoxOffice. It operates digital screens both indoors and outdoors as well as billboards and banners.

‘We’ve been waiting for this for a long time,’ he added.

Stages 1 & 2 of Circle Line to open in first half of 2010

Source : Channel NewsAsia – 30 Aug 2009

The next phase of the Circle Line – Stages 1 and 2 – will start operations in the first half of 2010. Transport Minister Raymond Lim revealed this at a dialogue session in Bukit Panjang on Sunday.

Its exact opening date, however, will only be finalised after engineers complete the necessary tests.

The first five stations on the Circle Line opened for service on May 28. Even though ridership has not been as high as initially projected on the 5.7-kilometre stretch, this could change with the opening of 11 new stations next year.

Stage 1 of the Circle Line starts from Dhoby Ghaut, through MRT stations like Esplanade and Nicoll Highway, and ends at Stadium, while Stage 2 starts from Mountbatten, through interchange station Paya Lebar, and ends at Tai Seng.

The other 13 stations from Marymount to Harbourfront will be ready by 2011. Daily ridership of this 33.3-kilometre line is estimated to be close to half a million when it is fully operational.

As for buses, the Land Transport Authority (LTA), which is taking over the role of central bus network planner from year’s end, will consult grassroots leaders islandwide on how to improve the bus network from next month.

Mr Lim said: “Rather than do a major overhaul of the existing system which may actually lead to people being worse off, (we want to) get a feel of how residents want this because really, there is no right or wrong answer here. Different people have different needs and want it done differently.”

LTA hopes to complete this consultation exercise by end-March next year.

A Bukit Panjang resident, whose child has to endure long bus rides to school, said: “Because there are no direct buses, it takes three hours of travelling time, to and fro, from our constituency to Nanyang Technological University.”

Another resident has a grouse on the location of a new MRT station which is to be built in Bukit Panjang as part of the new Downtown Line.

“All of us are very happy about that, but the location isn’t very convenient because it’s not linked to the LRT and is far away from the interchange,” he said.

Responding to this, Mr Lim said there are technical constraints in the area, but the LTA is looking for a better solution.

What Bukit Panjang’s grassroots leaders hope to achieve in their talks with the LTA is to move the bus interchange from its current premises closer to the new MRT station of the Downtown Line.

This would then link all three transport nodes – MRT, LRT and buses – within a 70-metre radius. Currently, the proposed new MRT station is 120 metres away from the bus interchange.