85% of units in CDL’s Cube 8 sold

Source : Channel NewsAsia – 25 Jan 2010

City Developments (CDL) said it has sold 85 per cent of the units in its Cube 8 development, located at the former Albany and Thomson Mansion site along Thomson Road.

Private previews for the former sites’ owners, directors and staff of CDL started last Thursday and the public preview began on Friday.

Over the weekend, all the one- and two-bedroom apartments have been sold.

Singaporeans made up the majority of buyers. Permanent residents and foreigners mainly from the region, India and Europe bought 25 per cent of the units.

The 36-storey freehold development comprises 177 units of one- to four-bedroom apartments and sky villas, ranging from 560 square feet to 3,229 square feet in size.

The launch was at an average price of S$1,250 per square foot, with a marginal increase of two to three per cent for subsequent release.

Mumbai selling office space at 2008 reserve price

Source : Business Times – 26 Jan 2010

Bids, with a floor of 300,000 rupees per square metre, open on March 3

India’s financial capital plans to sell office space in an emerging business district at a minimum price of 4.35 billion rupees (S$132 million) in a deal that may test demand for property amid an economic recovery.

The Mumbai Metropolitan Region Development Authority, or MMRDA, proposes to sell 14,500 square metres of built-up area on 3,162.5 sq m of land in Bandra-Kurla, where Citigroup Inc and the nation’s capital markets regulator are located.

The reserve price is 300,000 rupees per sq m, the authority said in an advertisement, unchanged from the last such offer in 2008.

The sale aims ‘to cater to the growing demand for business area’ in the north-central neighbourhood that was reclaimed from marshland, MMRDA said.

Indian and overseas companies in financial services, insurance, fund management, information technology, telecommunications, among others, can bid for the land, the advertisement said yesterday. Bids open on March 3.

Standard Chartered Plc and Nomura Holdings Inc are among companies expanding their India operations as consumer spending fuels growth in Asia’s third-biggest economy.

An 81 per cent rally in the benchmark stock index in 2009 has also revived developers’ interest, with Lodha Developers Ltd and Sahara Prime City Ltd among at least nine property companies planning to raise about 164 billion rupees in initial sale of shares.

Bandra-Kurla is centrally located in the Manhattan-shaped island-city and the authorities are increasing its access with a new Metro rail, in addition to the existing commuter train and road networks. The existing main business district in South Mumbai at the tip of the city lacks expansion space and stretches daily commuting to up to four hours for some.

The new business district is closer to the city’s two airports, compared with Nariman Point in South Mumbai, which is about 25 km from the closest domestic airport.

The last sale of land in 2008 attracted buyers for only three of the five plots on offer as the global economic slowdown dried up funds and demand for property. Jet Airways India Ltd then bidded 344,448 rupees per sq m for a land parcel with a maximum 24,000 sq m of development area.

India’s gross domestic product grew 7.9 per cent in the three months ended Sept 30, making it the fastest-growing major economy after China.

Finance Minister Pranab Mukherjee on Jan 8 forecast growth of as much as 7.75 per cent for the year ending March.

The Reserve Bank of India has slashed interest rates to a record low to shield India’s US$1.2 trillion economy from the global recession, fuelling demand.

US Dec home sales fall more than expected after 3-month surge

Source : Business Times – 26 Jan 2010

Sales of existing homes in the United States fell more than expected last December, by nearly 17 per cent, following a three-month surge driven by a government tax credit, an industry organisation said yesterday.

The National Association of Realtors (NAR) said sales fell 16.7 per cent to a seasonally adjusted annual rate of 5.45 million units, from 6.54 million in November.

The sharp decline was worse than an average analyst forecast of 5.9 million units and was the steepest monthly drop since NAR began tracking the data series in 1999.

The industry group said the decline was expected after sales surged from September through November as first-time buyers rushed to take advantage of federal tax credits originally due to expire on Nov 30.

Congress passed and President Barack Obama signed an extension of the first-time tax credit that expands it to include other home purchases made prior to April 30.

The December number was 15 per cent above the year-ago level of 4.74 million units.

‘It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,’ said Lawrence Yun, NAR’s chief economist.

‘We’ll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit. By early summer, the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010.’

First-time home buyers represented 43 per cent of the market in December, compared with 51 per cent the prior month.

The industry group noted that sales had risen every month since April, apart from a slight dip in August, and had often topped expectations.

For all of 2009, sales of existing homes totalled 5.156 million, a gain of 4.9 per cent from 2008.

‘It was the first annual sales gain since 2005,’ NAR said.

Next phase of Circle Line to open on Apr 17

Source : Channel NewsAsia – 26 Jan 2010

The second phase of the Circle Line will open to passengers on April 17. The 11-station stretch, from Bartley to Dhoby Ghaut stations, will start operations almost a year after the first five stations were opened to the public last May.

With this new opening, about half the Circle Line or about 16 stations will connect commuters to places like the new Sports Hub through Stadium Station, to Suntec via Promenade Station and the museums via Bras Basah Station.

Transport Minister Raymond Lim said: “This is a significant thing for us because now you have these direct connections. So if you are on the eastern side, north-eastern side, you have a direct line that connects you instead of having to go to the city centre.”

So a commuter going from, say, interchange station Paya Lebar to Bishan can shave off about 18 minutes or half his travelling time, said the Land Transport Authority. Commuters can bypass the busy City Hall and Raffles Place stations.

Building the Paya Lebar Station was not easy. One of the challenges that engineers faced in building this interchange station was that they had to connect an underground line to an existing above ground station.

For commuters who also had to endure congestion during road diversions, the opening has been welcomed.

Said one man in the street: “The transportation was very bad and there used to have jams all over and time taken from one place to another was very bad. Now of course, there are a lot of changes.”

“It saves time, like when we are rushing to meet friends and family, it will be much more better,” said another commuter.

Transport authorities now expect the Circle Line ridership to spike to about 200,000 daily.

Also operating will be the station that caused a delay to the opening of the Circle Line when the site at Nicoll Highway collapsed.

Sim Wee Meng, group director, Rail, Land Transport Authority, said: “Nicoll Highway, we have built at the new site which is 100 metres away from existing site. It’s now completed and will open as part of Circle Line 1 & 2.”

As for the possibility of bus rationalisation, Mr Lim said: “The LTA will have to work with the operators to see whether they need to streamline any of the services in order to feed into the Circle Line.”

The final phase of the Circle Line, which will link up the western parts of Singapore to the line with stops in places like Botanic Gardens and Holland Village, is expected to be ready next year.

HDB will construct its one millionth flat capping 50 years of achievements

Source : Channel NewsAsia – 26 Jan 2010

Is there a role for Singapore’s Housing and Development Board (HDB), now that the entire population has been housed?

Prime Minister Lee Hsien Loong said the answer is “Yes” as the HDB is still responsible for providing good public housing and fostering social integration.

Speaking at its 50th anniversary, Mr Lee also revealed the board will celebrate half a century of achievements by building its one millionth flat this year.

The HDB is a central part of the Singapore Story said Prime Minister Lee. Over half a century, it housed a growing population and was integral in nation-building.

PM Lee said: “Two generations of Singaporeans have grown up in HDB flats. Public housing helped to mould our unique national identity and collective experience as Singaporeans. It created and shaped our commu¬nities and provided the foundation for our social stability and economic growth.”

But Mr Lee notes the environment has changed and the aspirations of Singaporeans risen sharply.

He added: “Finding a roof over our heads is no longer the pressing requirement. The HDB flat is not just a shelter but also a key investment asset. People have many considerations in choosing their flats – they want the right flat, in the right locality, at the right time and at the right price.

“Such high expect¬ations are understandable since buying a flat is a major commitment for a young couple setting up a home together.”

And HDB is committed to providing high quality housing, even though it cannot accommodate every preference or expectation.

The Prime Minister also emphasised a point expressed several times by other Ministers and very much an ongoing concern amongst flat buyers in the rising property market. And that is the government’s commitment to keeping HDB flat prices affordable for Singa¬poreans.

But Mr Lee said the government has less control over prices in the resale market.

He explained: “These resale prices are set by individual households who transact flats on a willing-buyer, willing-seller basis, and are affected by movements and sentiments in the wider economy, including in the private property market. Hence, resale prices of HDB flats will fluctuate from year-to-year. But over the long term, the value of HDB flats depends on the strength of the Singa¬pore economy.”

So provided Singapore continues to do well, Mr Lee’s confident the flats will maintain their value and Singaporeans can enjoy an appreciating asset.

Overheated China real estate may hurt commodity producers

Source : Business Times – 27 Jan 2010

It will affect demand for building materials, says hedge fund manager

Raw materials producers that sell to China may be hurt by slowing demand because the nation’s real estate market is poised for a ’stumble’, according to hedge fund manager James Chanos.

A Chinese credit-driven property bubble with ‘far-reaching impact’ may be overheating, threatening demand for industrial materials used in buildings, Mr Chanos said.

‘One needs to look at building materials globally; increasingly they’re priced on the margin for the China bid,’ Mr Chanos, the founder of Kynikos Associates Ltd, said on Monday at a conference in London. ‘If the China bid turns into a China offer, there’s going to be an air pocket in the prices of many of these industrial commodities that are used in constructing homes and office buildings.’

China’s growth rate in the fourth quarter accelerated at the fastest pace since 2007, as the nation’s US$586 billion stimulus spending and record lending stoked car and property sales. That has raised concerns the government may increase interest rates or take other measures to curb inflation and limit asset bubbles.

Mr Chanos was one of the first investors to foresee the 2001 collapse of Houston-based energy company Enron Corp. His hedge fund is known for shorting stocks, or wagering on shares of companies he expects to fall. In a short sale, investors borrow shares with the intention of buying the stock back at a lower price and returning it to the lender.

‘This is not a call for an impending crash,’ Mr Chanos said. ‘What we are saying is that there are classic pockets of overheating and overindulgence.’

China’s property market data may be masking the degree that speculation is driving prices in some of the larger cities, Ardo Hansson, the World Bank’s chief economist for China, said on Monday in an interview. Government data this month showed Chinese real-estate prices climbed the most in 18 months in December, highlighting a struggle to rein in speculation while sustaining an economic rebound.

Steel prices in China, the world’s biggest producer of the metal, dropped the most in four months last week as inventories piled up and concerns grew that the government may curb lending.

Meanwhile, investor Mark Mobius said he still doesn’t believe China is experiencing a property market bubble.

‘If a property bubble means too high prices, you can see much higher prices in Australia or Hong Kong,’ Mr Mobius, who oversees US$34 billion of developing-nation assets at Templeton Asset Management Ltd, told investors on Monday in Bangkok.

HDB flats to stay affordable for Singaporeans: PM Lee

Source : Business Times – 27 Jan 2010

The government is committed to keeping public housing affordable for Singaporeans, said Prime Minister Lee Hsien Loong yesterday.

He was speaking at a gala dinner for the International Housing Conference, organised by the Housing and Development Board (HDB) to mark its 50th anniversary this year.

The message came on the back of recent HDB data, showing resale flat prices reaching a new high in Q4 2009. Cash premiums for resale flats also jumped.

Mr Lee noted that HDB prices its new flats so that the vast majority of Singaporeans would be able to purchase them. The agency will also build enough flats to meet demand from a growing population.

‘However, the government has less control over housing prices in the resale market,’ he said. These prices are reached on a willing buyer, willing seller basis, and are affected by other factors in the economy, including those in the private property market.

As a result, resale flat prices will fluctuate, Mr Lee said. ‘But over the long term, the value of HDB flats depends on the strength of the Singapore economy. Provided Singapore continues to do well, our flats will maintain their value, and Singaporeans can enjoy an appreciating asset.’

Click here to find out more!

Demand for resale flats was strong for most of 2009. HDB said last Friday that its resale price index hit 150.8 points in Q4, up 8.2 per cent from the previous year.

The median cash premium for all resale transactions doubled to $24,000 in Q4 from Q3. It has since dipped to $22,000 for the first half of this month. With a robust housing market, HDB will be launching 12,000 new build-to-order flats this year.

Today, more than eight in 10 Singaporeans live in HDB flats and nine out of 10 HDB households own their flats. The situation is markedly different from that in 1959, when less than 10 per cent of the population of 1.6 million owned a home.

There are now more than 900,000 flats across the island and HDB will be building the one millionth this year.

Mr Lee believes that HDB still has a role to play. While private housing has become more readily available, it caters mostly to higher-income groups – HDB still needs to provide good-quality public housing to most Singaporeans.

But he also recognised that Singaporeans’ aspirations have risen sharply, and a flat acts not just as a shelter, but also as a key investment asset. Home seekers now have many considerations in choosing a flat.

‘HDB is committed to providing Singaporeans with high quality public housing, even though I hope Singaporeans can understand that it cannot accommodate every preference and meet every expectation,’ he said.

Some 800 guests, including delegates and speakers attending the conference, former national development ministers and former HDB executives were at the dinner.

Horizon Twrs defendant moves to strike out suit

Source : Business Times – 27 Jan 2010

Says he was not a key player in en bloc deal sales committee

The newest instalment of the Horizon Towers saga has taken a fresh turn, with one of the parties being sued now applying for the lawsuits against him and another to be struck out.

Tan Kah Gee, a member of the original sales committee being sued by a group of minority owners, yesterday applied to the High Court for the suit to be struck out – saying the action was ’scandalous, frivolous (and) vexatious’.

He also filed his defence against the claims made against him, saying he was not a key player in the sales committee which brokered the en bloc sale of the development.

Mr Tan – and former sales committee chairman Arjun Samtani – are being sued by three sets of minority owners, who are looking to reclaim close to $1 million in legal and administrative costs which they say they incurred during the lengthy fight to keep their homes.

The minorities say they were made to defend their homes against an en bloc process actuated by a lack of good faith on the part of the sales committee, and had to spend much for their effort.

The collective sale of Horizon Towers was an affair which spanned more than two years and involved two Strata Titles Board (STB) hearings and two High Court hearings before finally being decided in the Court of Appeal.

The Court of Appeal ruled against the sale of the development in April last year, saying the sales committee failed to get the best price possible for Horizon Towers. It awarded costs for the second High Court hearing, the second STB hearing and the Court of Appeal hearing to the minority owners who had objected to the sale.

But the minority owners are now suing Mr Tan and Mr Samtani to claim sums which they said they had spent in excess of what the Court of Appeal has awarded them. The three sets of owners are seeking between $117,000 and $370,000 in costs – making for a total of more than $800,000.

But Mr Tan – through his lawyers Senior Counsel Tan Cheng Han and Ian Lim of TSMP Law Corporation – has moved to strike out their claim. He says the entire remedy sought by the minorities was already dealt with by the Court of Appeal last April, when it decided on how it would award costs to the various parties. He said their claim ‘does not form a legitimate item of damage in a separate cause of action’, neither does it ‘flow from a different and additional wrong’ from the Court of Appeal judgment.

Mr Tan also responded to allegations made by the minorities that he was one of the ‘key players in the process leading up to the commencement, facilitation, management and finalisation of the collective sale process’.

In his defence, he claimed he was ‘not a key player’ and cited various correspondence and minutes of sales committee meetings which he said showed that he did not play a major role in the various aspects of the collective sale.

He also responded to the minorities’ claim that he and Mr Samtani ‘pushed for a quick sale of the property for their personal benefit’ because both had bought additional units in Horizon Towers, at the start of the collective sale process, and were keen to profit from that.

Mr Tan’s defence was that he bought a second unit because the location and price were very attractive, and that he had acted in good faith at all times. He said he disclosed his purchase of a second unit to the rest of the sales committee, as well as to one of the minority owners now suing him. He claims he also disclosed the purchase to the sales committee’s legal advisers and was told that he did not have to disclose the purchase of this unit.

The minorities had also claimed, in their suit, that the sales committee had failed to follow up on alternative offers for Horizon Towers, including a higher offer from a Vineyard Holdings. They cited the Court of Appeal judgment, which ruled that the sales committee had failed ‘to proactively follow up on the Vineyard offer and other expressions of interest’.

Mr Tan said Vineyard’s and other expressions of interest ‘never substantively materialised’ and that the sales committee had ‘questioned the credibility of the expression of interest from Vineyard and their level of seriousness given that Vineyard was a Hong Kong company that was not well known and its lawyers were not from a Singaporean firm, but from a small Malaysian law firm’.

He claims he suggested waiting for a higher offer, but that the majority of the sales committee did not agree. He said the sales committee genuinely felt they would not get a better offer than the one by Hotel Properties Ltd (HPL), and that they had been advised by their lawyers to accept the offer.

The minorities will have 14 days to respond to Mr Tan’s defence – and 14 days to respond to Mr Samtani’s defence, which was filed last Wednesday. The court will also convene a date for the hearing of Mr Tan’s striking-out summons.

The minority owners are represented by Kannan Ramesh of Tan Kok Quan Partnership. Mr Samtani is represented by N Sreenivasan from Straits Law Practice.

Heat on China to act fast on housing prices

Source : Straits Times – 27 Jan 2010

LAST week, the blockbuster Avatar was pulled from China’s cinemas after topping the box office for three weeks. It was getting too popular.

The movie had struck a chord with viewers all too familiar with residents being forced out of their homes by unscrupulous developers in cahoots with corrupt officials. Skyrocketing housing prices in China have led to much unhappiness.

But yanking a film is the easy part. To manage the inflated real estate prices in China is far trickier. The government must deal with the nub of the problem: the incestuous relationship between property developers and officials who exploit the government’s monopoly over land supply.

In some cases, the relationship is as sleazy as the affairs that a beautiful Qingdao real estate tycoon had with three top officials – Qingdao mayor Du Shicheng, former finance minister Jin Renqing and state-owned oil giant Sinopec’s former chairman Chen Tonghai – to clinch lucrative land deals at below-market prices. Hauled in by investigators last year, the mistress ratted on the three officials.

But most times, the collusion between developers and officials is not so easy to stamp out as it is embedded in the land reserve system. Local governments have the power to determine how much land can be acquired forcibly from residents or how much reserve land can be released and sold to private developers in a competitive bidding system.

Chinese developers tend to hold the land they buy until it rises in value before they build. But as Beijing itself has acknowledged over the past two years, many developers are actually hoarding land to limit supply of housing, thus driving up prices of existing property and creating panic among home-buyers.

According to Beijing-based Soho China’s chairman Pan Shiyi, about one-third of developers reap most of their profits from holding onto land until it rises in value before selling the land for a profit or building properties that they can then sell for a much higher price.

Until this year, the authorities also closed one eye to developers who had long flouted the rule of paying a 20 per cent fee on the transaction price of land left idle for more than one year.

Beijing knows only too well that housing woes – cited by the Chinese as one of their top ’sources of pressure’ this year in a recent nationwide poll – present a key threat to social stability. It is finally getting tough on this longstanding problem of land hoarding.

This year, with some 10,000ha of land approved by the government for real estate development still unused, Beijing said it will enforce the 20 per cent rule. Land plots left idle for more than two years will also be reclaimed by the government, it declared earlier this month.

Local analysts have called this a big step in reining in China’s runaway housing prices, which shot up in December by 7.8 per cent across the country – its most frenetic pace in 18 months.

But this affects only the private developers. For officials in local governments – the other partner in the collusion that keeps property prices high – the incentive to collude with developers is not affected.

After all, they rely heavily on revenues derived from real estate. Local governments reap about 40 per cent of their total revenue from the sale of land and property development taxes, some local economists estimate.

For example, for Hangzhou’s local governments, income from land sales may even be twice their tax revenues last year, reported 21st Century Business Herald.

Beijing has tried to control how local officials sell land with a new rule requiring them to apply annually to the central government for land allocation with a proposal on land use. Once approved, the local officials distribute the land for different purposes, such as housing, commercial and industrial uses.

But there are loopholes. Local officials can claim that the land is meant for, say, a business park or public sports centre, but auction the land off for a package deal with a lucrative residential component.

As prominent Chinese economist Zhou Tianyong pointed out, the only way to cut the costs of building affordable homes for ordinary Chinese is to ‘cut out the root of the problem’ – the government’s lucrative land monopoly.

One way is to liberalise the land supply market, he said. Allow individuals or groups of land owners to sell the land themselves rather than surrendering it to local officials. This may close the loophole for unscrupulous officials to forcibly evict residents.

But this would mean an overhaul of China’s property rights laws, which could take years.

And the coffers of local governments, already burdened with a big bill for last year’s stimulus measures to spur an economic recovery, would also be hit if land sales cease to be a major source of income.

So Beijing would also have to look at ways to help local governments further diversify their funding, using more instruments like bonds. But can the masses of Chinese saddled by housing woes wait this long for a solution?

Not that long, if Avatar’s popularity and its depiction of an uprising that booted out the powers-that-be is any indication. The Chinese government knows that it has to act – fast.

New flats will stay affordable: PM Lee

Source : Straits Times – 27 Jan 2010

WHILE the Government will keep the prices of new Housing Board flats in check, it has less control over prices in the resale market.

This state of affairs was highlighted by Prime Minister Lee Hsien Loong last night when he commented for the first time on what has been one of the hottest topics of discussion.

Speaking at a gala dinner to mark the HDB’s 50th anniversary, Mr Lee stressed the Government was committed to keeping HDB flats affordable and that its new flats are priced within the means of the vast majority of Singaporeans.

On top of that, it would also build enough new flats to cater to demand as the population grows. In fact, to cap its 50th year, the HDB will build its one millionth flat this year.

However, the Government does not have control over the prices of resale flats, he said.

His explanation: ‘These resale prices are set by individual households who transact flats on a willing buyer, willing seller basis, and are affected by movements and sentiments in the wider economy, including the private property market.

‘Hence, resale prices of HDB flats will fluctuate from year to year.’

Despite these short-term fluctuations, Mr Lee said these flats would still hold their value in the long run.

‘Over the long term, the value of HDB flats depends on the strength of the Singapore economy. Provided Singapore continues to do well, our flats will maintain their value, and Singaporeans can enjoy an appreciating asset,’ he said.

The affordability of resale HDB flats has been in the spotlight, following a slew of reports showing a surge in prices.

Latest HDB data show resale prices rising 3.9 per cent in the final three months of last year to hit a fresh record, bringing the full-year increase to 8.2 per cent.

Similarly, the median Cash-over-Valuation (COV) paid for HDB flats in that period was $24,000 – double the $12,000 median in the third quarter last year. COV refers to the cash a buyer pays over and above a flat’s valuation.

Price discussions aside, Mr Lee, in his address, looked back at the 50-year history of the HDB, starting from 1960 when it was formed to tackle Singapore’s housing crisis to the present day when it is the provider of quality housing to most Singaporeans.

As he reflected on its successes, he threw up an interesting poser: Given that the entire population is housed, and the HDB has fulfilled its original mission, does it still have a role to play?

His reply: ‘I have no doubt the answer is ‘yes’.’

He explained that the HDB would remain relevant because it performs a crucial dual role: a housing and a social role.

‘It is both a matter of capability – who can build, plan and manage these estates – and also a matter of social policy.

‘Nobody else but the Government can build houses not just to achieve a housing objective, but to achieve a social goal – racial integration, community bonding, establishing and upgrading and maintaining a high quality living environment for the whole community,’ he said.

But the environment the HDB is working in now has changed, as with the expectations of the people, he said.

‘Singaporeans’ aspirations have risen sharply. Finding a roof over our heads is no longer the pressing requirement. The HDB flat is not just a shelter, but also a key investment asset,’ he noted.

So, when people look for a flat now, many more considerations are involved, he said: ‘They want the right flat, in the right locality, at the right time and at the right price. Such high expectations are understandable, since buying a flat is a major commitment for a young couple setting up a home together.’

He stressed the HDB is committed to providing Singaporeans with high quality public housing, although it cannot accommodate every preference and meet every expectation.

The gala dinner also launched the International Housing Conference, which will run till Friday. Some 500 local and foreign delegates, as well as housing experts, are here to discuss such housing issues as urban planning and environmental sustainability.

JTC to expand Biopolis, build new cluster for med-tech

Source : Straits Times – 26 Jan 2010

SINGAPORE’S thriving biomedical sciences sector is set to get a boost of up to $180million this year for the expansion of buildings and other related facilities.

This will cater to the growing number of companies that need more space for their cutting-edge work in creating new drugs and medical equipment.

The nation’s premier biomedical research hub, Biopolis, near Buona Vista, will be expanded at an estimated cost of about $80million to $100million, providing 40,000sqm of new space.

The plan was announced yesterday by industrial developer and landlord JTC Corporation, which said separately that it will launch a medical technology cluster in Jurong.

This cluster will bring major industry players together in a new facility that will cost $60million to $80million to build initially. It will enable firms there to collaborate and cut costs through cooperation.

Mr Heah Soon Poh, JTC’s director, biomedical and chemicals cluster, said yesterday that the Biopolis expansion would include laboratory design improvements to support the growth of clinical trials.

This new phase – the fourth for Biopolis – follows on the heels of Biopolis3, which is due for completion by year-end.

It brings the total cost of Biopolis to about $700million.

Companies setting up shop in the newly expanded facility can look forward to new facilities such as fitted out laboratories and shared facilities such as air-conditioning.

‘This helps to lower the upfront costs for small and medium enterprises. We are moving up in the value creation for companies,’ said Mr Heah.

The expansion is set to be completed by 2012 to 2013.

Biomedical sciences, though a volatile performer during the recent economic recession, is an increasingly important pillar of the local economy, said research house CIMB-GK regional economist Song Seng Wun.

‘The performance of this sector was quite good through the recession. It had a weak start, then a strong quarter, and even though it had a soft end to the year, we are still seeing companies interested to come into Singapore,’ he said, referring to last year.

The sector contributed $19billion, or 4.3per cent, of Singapore’s economic output in 2008, the latest available figures show, and provided 16,000 jobs.

Mr Song added: ‘It could become a bigger, more productive industry.’

Mr Heah said that looking ahead, the sector is expected to continue expanding, and JTC will provide the real estate to support this growth.

Within the sector, the medical technology sector (med-tech) is expected to drive the rapid growth. It manufactures equipment used in the industry, such as syringes and medical test-kits.

Singapore’s manufacturing output of med-tech products is expected to increase from $2.9billion in 2008 to $5billion by 2015, said Mr Heah.

Med-tech employs the majority – two-thirds – of those in the biomedical science sector, as it is more labour intensive than pharmaceutical production, for instance.

This is why JTC is driving the new med-tech cluster, at Jalan Tukang in Jurong, at which all the main players in the industry will be located – ‘in the same space, creating synergies and reducing costs’, said Mr Heah.

This means manufacturers, suppliers, logistics firms, sterilisation firms and support services will be located fairly close to each other, and will therefore be able to complement one another’s efforts.

The first phase of this cluster, with a built up area of 40,000sqm, is expected to be built by the end of 2013; a second phase of 40,000sqm will be built later.

JTC is also in the midst of discussions for a new biologics facility, which will take up less land because it will be built upwards, said Mr Heah.

Biologics refers to medicinal products produced through biological methods rather than chemical ones.

Irish firm PM Group, which specialises in servicing the pharmaceutical and food industries, is advising JTC on the project.

JTC says it is currently in talks with potential companies to locate to both the new med-tech and biologics facilities.

It plans to launch tenders for both the Biopolis and med-tech cluster expansions for private developers to bid sometime this year.

HDB flats: Why did supply fail to keep up with population growth?

Source : Straits Times – 26 Jan 2010

WITH reference to the Housing and Development Board’s (HDB) reply last Thursday (‘Income ceiling helps ensure neediest get subsidised flats’), my sense is that the HDB underestimated the social ramifications of the resale policy to permanent residents (PRs), while it failed to maintain the Home Ownership Scheme for the people to balance demand of rapid population growth during the past 20 years. As a result, low- and middle-income households have suffered.

The ceiling of $3,000 and $2,000 for three- and two-room flats did not help as HDB did not build enough units to meet the market, citing low demand. This drastic reduction in the number of flats built is detrimental to the ageing population in the rental and sales market.

The policy to allow 533,000 PRs to buy resale HDB flats works against citizens. It is difficult to comprehend why HDB began to wind down the momentum to build more flats during the 1990s when the population ballooned from 3.047 million to 4.027 million by the end of 2000.

The yearly average peak of 30,900 HDB flats built during the 1980s corresponded with the population growth meeting the Home Ownership Scheme. However, during the 1990s when one more million people were added, HDB began to taper down to 25,700. What puzzles me most is that by 2008, when another 810,000 people were added to the population, HDB built only 8,260 units. Why the paradigm shift?

Take the example of a Queenstown five-room flat at $619,000. Single-income families earning $6,000 with two children cannot afford to pay 50 per cent of their income to buy such a flat. Can the $30,000 subsidy help them? Combined-income families with two children earning $8,000 may falter to commit 38 per cent for such flats. These groups are the ‘neediest’ for bigger flats, yet the Home Ownership Scheme eludes them.

Paul Chan

Keppel Land to launch 5,500 homes in Asia

Source : Business Times – 26 Jan 2010

Fourth quarter net profit jumps 56%; group on the prowl for more land

KEPPEL Land, which saw fourth-quarter earnings jump 56 per cent as property markets across Asia recovered, said it plans to launch more than 5,500 homes across the region for sale this year.

‘Keppel Land is moving into 2010 with optimism on the back of its stronger financial position, improving residential sales and office space take-up together with expectations of continued recovery of Asia and a return of capital flows from the West,’ chief executive Kevin Wong said yesterday.

In Singapore, KepLand will sell more units in two upmarket projects – Marina Bay Suites and Reflections at Keppel Bay – to capitalise on the opening of the integrated resorts, which is expected to boost the high end market.

And in China, the group will launch two projects in Shanghai as well as phase one (comprising about 1,700 units) of its 35.4 ha project in the Sino-Singapore Tianjin Eco City.

The developer yesterday reported that net profit for the quarter ended Dec 31, 2009, rose to $106.9 million from $68.5 million a year ago. Revenue rose 52 per cent to $300.5 million from $197.4 million.

‘Residential sales in Singapore and overseas have recovered, encouraged by signs of economic recovery and improved market sentiments,’ Keppel Land said. Revenue rose as the company saw progressive revenue recognition from the newly launched Madison Residences and The Promont in Singapore.

Higher revenue was also recognised for projects in Vietnam, India and China. Riviera Cove in Ho Chi Minh City has also recorded robust sales since its launch in November 2009, KepLand said.

The property group, however, recorded a net fair value loss of $12 million at the pre-tax level for fourth quarter 2009, mainly from completed investment properties owned by its listed office trust K-Reit Asia.

For the full year, Keppel Land’s profit rose 23 per cent to $280.4 million from $227.7 million in 2008. Revenue rose 10 per cent to $923.9 million compared with $842.2 million for 2008 on the back of higher sales.

Earnings per share for the full year rose to 24.2 cents from 22.4 cents in 2008.

Keppel Land is on the lookout for land to purchase. The company last year carried out a rights issue which raised gross proceeds of $708 million. ‘This ensures the group is well-positioned to capitalise on opportunities to acquire attractive assets at competitive prices in Singapore and overseas,’ it said.

The company also said the commercial segment is showing signs of bottoming out.

‘A flight to quality has been observed with Marina Bay Financial Centre (MBFC) and Ocean Financial Centre (OFC) chalking increased pre-commitment occupancy rates,’ Keppel Land said. MBFC saw a take-up of about 213,000 sq ft in 2009. Phase One of MBFC is now 79 per cent pre-committed and the overall occupancy for the entire MBFC stands at 68 per cent.

UBS Investment Research on Jan 22 issued a fresh ‘buy’ call on KepLand and upgraded the stock’s target price to $4.38 from $3.50.

‘On account of the higher office and luxury residential price assumptions, we upgrade our RNAV (revalued net asset value) estimate for Keppel Land by 25 per cent to $4.40 a share,’ said analyst Regina Lim.

Keppel Land shares gained one cent to end at $3.44 yesterday.

Horizon Towers saga roars back to life with new lawsuit

Source : Business Times – 26 Jan 2010

Suit filed against some members of original sales panel

A fresh lawsuit has just been filed over the failed en bloc sale of Horizon Towers – and a new chapter in the long-running saga is about to begin.

It’s a suit that’s set to be a closely watched one in Singapore, seen as a litmus test for the possible legal action that can be brought to bear against those involved in this, as well as all other, en bloc sales.

A group of Horizon Towers’ minority owners – those who had originally opposed the sale of the Leonie Hill development – are now suing some members of the original sales committee for their handling of the en bloc sale.

According to documents filed with the High Court, these minority owners are looking to reclaim close to $1 million in legal and administrative costs which they say they’ve incurred during the lengthy fight to keep their homes.

The sale of Horizon Towers – first tabled for $500 million to Hotel Properties Ltd (HPL) in January 2007 – has been one of the most dramatic and long-drawn- out en bloc battles in Singapore’s history. The whole affair spanned more than two years and went back and forth between the Strata Titles Board (STB) and the High Court twice before finally being decided in the Court of Appeal.

The Court of Appeal ruled in April last year that the deal could not go through because the development’s sales committee had failed to fulfil its duty on several counts.

And now, three sets of minority owners – represented by Kannan Ramesh of Tan Kok Quan Partnership – have cited that landmark judgment, as a basis on which to seek reimbursement for the hundreds of thousands they have each spent in this battle.

They have served writs on former sales committee chairman Arjun Samtani and member Tan Kah Gee, alleging that they were ‘key players in the process leading up to the commencement, facilitation, management and finalisation of the collective sale process’.

The minorities, in their claim, allege that Mr Samtani and Mr Tan had ‘pushed for a quick sale of the property for their personal benefit’, because both had bought additional units in Horizon Towers, at the start of the collective sale process, and were keen to profit from that.

Their statement of claim frequently cites the Court of Appeal judgment which had accepted, as facts of the case, that:

# Mr Samtani and Mr Tan had bought additional units in the development;

# The sales committee had received an alternative higher offer of $510 million from Vineyard Holdings, one day before HPL verbally indicated it was willing to purchase the development for $500 million; and

# The sales committee agreed to go ahead and sell Horizon Towers to HPL, in spite of a suggestion from one committee member that it seek the approval of the other consenting owners because property prices had shot up, because it was concerned that the deal would fall through if the other owners were consulted.

Justice Rajah, in his judgment, had also ruled that HPL and the estate’s majority owners should share the legal costs for the second High Court hearing, as well as the Court of Appeal hearing – and that the majority owners should bear the costs for the second STB. He also allowed two minority objectors who did not participate in the final appeal to be given 80 per cent of the costs incurred in the second STB and High Court hearings.

The minority owners are now seeking compensation for the sums not covered by Justice Rajah’s judgment. The three sets of owners are seeking between $117,000 to $370,000 in costs – making for a total claim of more than $800,000.

In his defence, filed with the High Court, Mr Samtani states repeatedly that he was not alone in driving the sale process. He said ‘each and every member of the SC (sales committee) played an equally important role’ and that he ‘did not have any special powers’ that could influence the committee’s decisions.

Mr Samtani also claimed that the committee ‘followed up on all expressions of offer’ for Horizon Towers and that it received no offer better than HPL’s at the relevant time. He said that, on the advice of the committee’s lawyers, Drew & Napier, the committee proceeded with the HPL offer.

As for the additional unit he purchased, Mr Samtani said that it ‘was not for investment, instead it was for use by his son’. He claimed he had disclosed the purchase of an additional unit to Drew, and was not advised by Drew that he had to announce it to the other consenting owners.

Mr Tan, who is represented by TSMP Law Corporation, has requested an extension of time to file his defence. Mr Samtani is represented by N Sreenivasan from Straits Law Practice.

Signs of a mild property fever as private home sales gather pace

Source : Business Times – 26 Jan 2010

Developers have sold over 900 units this month as bullish sentiment returns

Developers have sold more than 900 private homes so far this month – based on BT’s poll of developers and property agents – and with another week to go, the tally is easily expected to cross 1,000 units by month’s end.

Besides Allgreen Properties’ Holland Residences, which will be previewed this week, Wing Tai is said to be at an advanced stage of preparation for an imminent preview for L’Viv at Newton Road. The average price is touted at about $1,900-$2,000 per square foot (psf) – significantly higher than the $1,700 psf average price at which Ho Bee is selling its Trilight condo nearby.

Wing Tai is eyeing a higher per square foot price by offering smallish units (thus keeping the absolute lump sum price per unit ‘affordable’ to potential buyers). The developer is said to be packaging its project with Deferred Payment Scheme as it had clinched approval for it before the scheme was scrapped in 2007.

L’Viv comprises a total of 147 units – 72 units have one bedroom and a study and these come in two sizes, both 600-sq ft plus; another 72 units have two bedrooms and a study (all about 1,000 sq ft); and there are three penthouses (all three bedders).

Trilight does not have any one-bedders. It has two, three and four bedders as well as penthouses. Two bedders range from 1,100 to 1,200 sq ft.

Fortune Development is also slated to begin previewing this week RV Edge in the River Valley/Shanghai Road vicinity. The 108-unit freehold project, being marketed by Huttons, comprises mostly smallish apartments ranging from one-bedders to two-bedroom with study units. The smallest unit is about 400 sq ft. Prices are expected to start from $600,000-plus per apartment.

City Developments Ltd (CDL) said yesterday evening that it has sold about 85 per cent or about 150 of the the total 177 units at its Cube 8 condo at Thomson Road, which it began previewing last week.

Singaporeans bought 75 per cent of the units sold. The other 25 per cent were picked up by permanent residents (PRs) and other foreigners – mainly from Malaysia, Indonesia, Hong Kong, Korea, India, China and Europe.

The District 11 freehold project was initially priced at $1,250 psf on average but prices were upped 2-3 per cent for subsequent releases.

CDL group general manager Chia Ngiang Hong said in a statement that the buyers were an ‘equal mix of owner-occupiers and investors’ and that this pointed to the development’s appeal to both home owners and investors.

Some market watchers suggest, however, that the project has probably also drawn a fair number of specuvestors. Slightly over half of the total 177 units comprised one and two bedders and these were the first to go, mirroring the pattern for other projects that were launched in Districts 9, 10 and 11 last year.

In addition to the buying buzz created this month from the release of new projects, some developers have been pleasantly surprised with a steady stream of activity even for existing projects that have been on the market for at least a few months. For instance, Ho Bee Investment has sold about 60 units at its Parvis condo at Holland Hill and 10 units at Trilight since the start of the year.

CDL is also understood to have sold more than 50 units at its Livia condo in Pasir Ris this month and the 724-unit project is now left with about 10 units.

‘Sentiment has picked in the mid and high-end markets because of the improvement in the economy; the imminent opening of the two integrated resorts (IRs) may also have given a psychological boost to foreign buying interest, which seems to be returning,’ says Ho Bee executive director Ong Chong Hua.

Agreeing, a fellow developer said: ‘We’re seeing a bigger variety of buyers from the region this round – including markets like Myanmar and Laos.’

UOL Group has sold this month 25 units at Double Bay Residences in Simei and 18 units at Meadows @ Peirce along Upper Thomson Road. The group plans to launch two projects in the first half of this year – a 99-year-leasehold condo with about 600-plus units at Dakota Crescent and a project with some 170 units on the Rainbow Gardens site in the Toh Tuck area. The latter will be a joint development with LaSalle Asia Opportunity II fund.

Developers’ home sales slipped below the 1,000-unit per month mark in Q4 last year as they wound down their launch activities towards year-end. Some potential buyers had also grown cautious following the government’s measures in September to cool the property fever.

However, fear of missing the boat appears to be re-igniting with strong signs of another round of price hikes this year.

‘For the economy, the worst is over and much of the physical infrastructure investment like the IRs is close to completion,’ says Knight Frank chairman Tan Tiong Cheng.

Asked if the authorities are likely to come up with fresh measures to cool the market if another wave of buying frenzy builds up, Mr Tan said: ‘Frankly, it’s very hard to deter people from buying, if you look at how strong the HDB resale market is. There’s very strong bottom-up support.’

Majority get bad service from property agents: survey

Source : Business Times – 25 Jan 2010

A NEW survey shows that 80 per cent of all real estate transactions in Singapore are done through real estate agents and most of these end with customers encountering some sort of ‘bad service’.

Respondents disappointed with services of estate agents highlighted ‘bad or wrong advice’ as well as the failure to get favourable prices to be the key problems they had with the agents.

This was a part of the findings by final-year Diploma in Real Estate Business students of Ngee Ann Polytechnic in their recent research project on the public’s perception and expectations of property agents.

The survey covered 1,014 respondents from diverse age groups, professional and educational backgrounds.

Giving details, Nicholas Mak, real estate lecturer at the tertiary institution who helmed the survey, noted that eight out of every 10 property transactions in Singapore are done through an estate agent and 77 per cent of those who use estate agents encountered ‘bad service’ of some sort.

The survey also showed that 73 per cent of the respondents felt that accreditation of the profession is necessary with two-thirds of them expressing their satisfaction with the current accreditation scheme.

Mr Mak added that 97 per cent of those who indicated that accreditation is necessary for every agent also wanted some form of government intervention.

He felt that the findings are well timed with the new regulatory framework for estate agents, which the government is planning to put in place soon.

‘This survey was initiated with the objectives of finding out consumer opinion of real estate agents and improving the existing accreditation system,’ Mr Mak noted.

The lecturer noted that those disappointed with services of estate agents had highlighted ‘bad or wrong advice’ as well as the failure to obtain favourable prices to be the key problems they had with the estate agents.

‘Some of them also felt that their real estate agents neglected their opinions or suggestions,’ he added.

The survey also covered the public’s views on the following issues:

# What ought to be the minimum qualification of estate agents and if that affects their competency

# Consumers’ expectations of services from property agents

# Whether experience and qualification equally matter in the choice of an estate agent

# Suggestions for government action.

Let’s hear views to refine property fund safety rules

Source : Straits Times – 25 Jan 2010

I REFER to last Thursday’s Forum Online letter by Mr Paul Chan, ‘New rules on property funds not safe enough’. Mr Chan’s main concern is the role of stakeholder that lawyers play, which allows them to hold conveyancing money pending completion.

The proposed regime of measures offers alternatives for consumers who hold the same view as Mr Chan. In situations where the conveyancing process requires a third party to hold money for the buyer and seller, the Singapore Academy of Law (SAL) will offer a stakeholding service. Buyers may also choose to make payment of transaction proceeds directly to sellers.

Escrow arrangements, where a bank holds money on behalf of both parties, will also be available where it is commercially feasible for the bank to offer the service.

Those who wish to be assisted by their lawyers for commercial convenience can do so using the conveyancing accounts of the law firms under the proposed arrangement. Lawyers will not have unilateral control over the release of money held in the conveyancing accounts. Both sets of lawyers will have to sign off before payment can be made from these accounts.

We are working with lawyers, banks, SAL and other stakeholders to ensure that the new system will not be more time-consuming nor cumbersome for the consumer.

We thank Mr Chan for his feedback, and welcome further views which will help us refine the proposed measures. The public consultation materials are at the Ministry of Law’s website (www.minlaw.gov.sg) and the Reach portal (www.reach.gov.sg).

Chong Wan Yieng (Ms)
Head, Corporate Communications
Ministry of Law

Serangoon Gardens site to be used for arts, sports

Source : Straits Times – 25 Jan 2010

ARTS studios and sports facilities will occupy three buildings at the site next to the workers’ dormitory in Serangoon Gardens.

The blocks were originally meant to form a buffer zone between the dormitory and the estate’s residential areas, to ease residents’ concerns about the workers living there.

The buildings are part of the former Serangoon Gardens Technical School along Burghley Drive.

Now, the Singapore Land Authority is tendering the blocks out on its website for use as arts, dance or drama studios and schools, or interim facilities for sports such as tennis, squash or badminton.

The blocks, with a gross floor area of 1,935 sq m, will be rented out at $14,500 a month for two years.

The website of Aljunied GRC, which administers the estate, also carried an announcement about the upcoming tender, which is expected to open later this month or next.

The tender results will be announced by April or May, according to the website.

Aljunied GRC MP Lim Hwee Hua said on Saturday that the area had already been zoned for use as a school, so it was feasible to use the site as an arts and drama studio or sports facility.

She made the remarks on the sidelines of a community programme to encourage more women to go for breast cancer screening.

Estate residents welcomed the prospective use of the buildings.

Mr John Leow, 69, who chaired a residents’ committee on the dormitory issue, said he was not worried about the buildings’ proximity to the dormitory because they could not be accessed from the dormitory.

‘Arts or sports facilities will enrich the community,’ he said.

When the workers’ dormitory, now called the Central Staff Apartments, was proposed in 2008, upset residents voiced concerns about security, safety and traffic congestion.

The dormitory now houses more than 100 workers from China, India, Malaysia and Bangladesh. The number will rise to 600 by mid-year.

Mrs Lim noted there had been no issues with the workers since they moved into the buildings last month.

80% of those who used housing agents saw “bad service” of some sort: survey

Source : Channel NewsAsia – 25 Jan 2010

A survey has found that almost eight in 10 people who used housing agents here encountered “bad service” of some sort.

The survey by Ngee Ann Polytechnic found that 77 per cent of respondents said they met with bad service from their agents.

Some of the respondents’ top grouses were that their agents failed to negotiate a good price, that they gave the wrong advice and that they were late for appointments.

Other less common bad service include aggressive property agents, negligent agents and agents who were dishonest or unfamiliar with the transaction procedures.

Generally, however, respondents were content their agents’ services, with 65 per cent being either satisfied or very satisfied.

At the same time, 73 per cent of those surveyed felt that accreditation of the profession is necessary.

In addition, 97 per cent of those who indicated that accreditation is necessary for every agent also wanted some form of government intervention.

1,041 people took part in the survey.

Good time to buy London properties

Source : Sunday Times – 24 Jan 2010

For Singaporeans looking to invest in property, the home market is just one option.

Ms Jacqueline Wong, head of residential at Jones Lang LaSalle (JLL), says that as prime residential properties in Singapore become more expensive, investing overseas becomes an affordable option.

This year, investors may want to venture further – particularly to Britain and Australia, cited as main picks for the year by industry experts. In Britain, London appears strongly on the radar.

Industry players share the view that a depreciated currency and a devalued market make London properties a worthy investment.

The managing director of DST International Property Services, Mrs Doris Tan, believes ‘it’s a good time for investment both for capital appreciation and currency appreciation’. Aside from potential capital gains, investors can also look forward to reaping good yields.

Mrs Tan adds that returns for commercial properties in London are still decent, amounting to a net of 6 per cent to 8 per cent per annum. The good yields are not limited to commercial properties; residential ones offer the same advantage.

The regional director of international properties at Colliers Darien Bradshaw believes that yields of close to 5 per cent to 6 per cent can be achieved in upcoming areas like Canary Wharf in East London, commonly referred to as London’s main office and financial district, where demand was hit hard due to the credit crunch last year.

Still, two of Colliers International’s best-selling projects last year were Maple Quay and Dalston Square, both in the vicinity of Canary Wharf.

Mr Tim Murphy, managing director of IP Global, however, believes yields may be lower at Canary Wharf because of the large supply of developments there. He is more positive about areas in Central Eastern London, where good deals in the &pound300,000 (S$680,000) range can be found, and North London, in particular, Islington and Hoxton.

These locations represent new avenues for Singaporeans to invest in, besides the key prime locations. The ease of buying and transparency are further plus points for buying properties in Britain, say industry experts.

Mr Bradshaw notes: ‘Record-low interest rates, low stamp study rates, no capital gains tax, a good rental and resale market and no restrictions on foreign ownership are some of the main pull factors for London.’

Mr Murphy warns, however, that buyers should be buying completed and not planned properties to eliminate currency risks if and when rates change adversely.

Singaporeans who plan to send their children for education in Britain have a reason to invest in a property in London.

St James Urban Living is the developer of Silkworks, a 330-apartment complex in Lewisham, on the outskirts of south-east London, with prices starting from &pound199,000.

It held two exhibitions in Singapore last year and received 40 reservations from Singaporean parents, according to Mr Tim Reid, account director at TTA Public Relations in Britain for whom the developer is a client.

Parents who plan to send their children to Australia likewise are keen to buy properties Down Under.

Stronger interest from Singapore in residential and commercial properties has been noticed, says the head of Asia-Pacific research at DTZ, Mr David-Green Morgan. From the end of 2008 to last year, The National Australia Bank (NAB) saw a 20 per cent increase in its Australian loan book, says NAB’s country head in Singapore, Ms Vivien Koh.

The appreciation in the Australian dollar against most currencies – it is now A$1.25 against the Singapore dollar – is not putting investors off, according to Mr Morgan.

He says: ‘Investors overseas may see it as a strength in the economy and consider this a good time to get in.’

Melbourne, especially, has been a very popular choice, says Mr Sean Parker, project consultant at JL Property Group.

‘It (Melbourne) is still perceived as being affordable and almost all properties are freehold. Rental yields are at an all-time high as stock is low,’ he says.

He adds that returns on residential properties are around 5 per cent to 6 per cent while those on commercial properties are around 7 per cent to 9 per cent.

Despite an advantageous tax structure – investors get the same tax benefits as locals – Australia may not be free of regulatory hurdles. There are some restrictions on foreign ownership and purchasers who are foreign residents can buy only primary or first-hand property, Mr Bradshaw points out.

Looking ahead, positive sentiments in the Australian economy are likely to bring about more rewards for investors.

‘As sentiments continue to improve for Melbourne, Sydney, Perth and Brisbane, coupled with a major investment of US$50 billion (S$70 billion) in natural resources from China in August last year, there is sufficient stimulation that could lead to more positive gains in 2010 to 2012,’ he says.

Other markets such as Thailand, China and India are also attracting interest from Singapore investors, albeit at a slower pace.

Existing policies, tax regulations and prohibitions of ownership in these countries can sometimes deter purchasing. In India, for example, a lack of familiarity, bureaucracy and greater barriers to entry make acquiring property difficult, says Mr Morgan.

This year will see a wide array of overseas property launches. From London, DST has introduced Baltimore Wharf in Canary Wharf. London properties will also dominate Colliers’ overseas projects, including Lanterns Court, also in Canary Wharf.

In the first quarter of this year, Savills will showcase two projects in Sydney, one in Auckland, a group of good class bungalows in Kuala Lumpur and two developments in London.

JLL will be showcasing two projects – Firstlight Noosa in Queensland, Australia, and the yooPhuket, in Phuket, Thailand.

This weekend, Eastern and Oriental Berhad, a Malaysian property developer, is introducing the Quayside – water-themed luxury condominiums in Penang – to Singaporeans for the first time. The event, which started yesterday, is held at the St Regis hotel where the Quayside’s largest one-bedroom suites starting from 1,137 sq ft are featured.

Consumers are spoilt for choice – all the more reason to be wise and well-informed before making decisions. Ms Wong says: ‘Investors should study details like types of ownership, types of land titles (freehold or leasehold), taxation and acquisition fees, ownership and selling restrictions, before making an investment decision.’