The number of subletting transactions grew by 69 per cent to 6,600 in the first quarter. More HDB flats were also approved for subletting – from 24,300 in the previous quarter to 27,300.
HDB attributed the increase to more renewal cases, greater demand and public awareness of need to seek HDB authorisation to sublet entire flats.
Subletting cases have spiked since rules were relaxed in 2005, with property agents reporting part of the demand driven by foreigners and permanent residents.
But rents remained stable in the first quarter, with median prices for four- and five-room flats hovering just under $2,000 a month.
Source : Today – 24 Apr 2010
Saturday, April 24, 2010
Some COVs turn negative
Rising cash-over-valuations (COV) have been the gripe of home-hunters, but some have gotten lucky in Queenstown.
Between January and March, the median COV for executive flats there was a negative $6,000, meaning a buyer paid below valuation – a far cry from the $50,000 median COV for the same flat type in the same area, in the preceding quarter.
But the first-quarter median COV for executive flats in Toa Payoh was a staggering $63,500. This was the highest COV sum in the Housing and Development Board’s list released on Friday, which broke down flat prices for the first quarter. In all three instances, HDB noted, the figures should not be taken as representative as there were fewer than 20 resale transactions in those towns for those flat types.
Indeed, overall, the median COV for the first three months of the year stabilised at $25,000 after a marginal increase of just $1,000 – compared to the fourth quarter of last year which saw the COV double.
And the HDB’s resale price index rose more slowly as well, by 2.8 per cent, as the number of resale transactions slipped 5 per cent – in large part, some analysts noted, due to the huge cash-out-of-pocket sums being demanded by sellers.
Generally, resale flats in Bishan attracted the highest median COV of $32,000, followed by those in Punggol ($31,000) and Marine Parade, Central and Sengkang ($30,000).
The COV rose for three-, four- and five-room flat types in Kallang/Whampoa, where a five-room unit which previously drew a $16,600 COV now commanded $40,000. The trend was similar in Clementi.
“It could be that market is playing catch-up and that that people have bought flats in anticipation of the Circle Line,” said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
In general, “COVs are still going up but at a much slower pace and they might be starting to reach a ceiling”, he noted. But prices overall would continue to rise as “the valuation of resale flats will also rise”.
For those short on cash, Woodlands, Pasir Ris and Geylang were their best bets, with the median COV ranging from $20,000 to $22,000.
To meet demand, HDB said it plans to launch about 12,300 new Build-To-Order (BTO) flats by September, with 1,100 to be offered next month in Yishun and Jurong West. In addition, a Punggol executive condominium site on the Government’s Reserve List will be put up for tender early next month.
Source : Today – 24 Apr 2010
Between January and March, the median COV for executive flats there was a negative $6,000, meaning a buyer paid below valuation – a far cry from the $50,000 median COV for the same flat type in the same area, in the preceding quarter.
But the first-quarter median COV for executive flats in Toa Payoh was a staggering $63,500. This was the highest COV sum in the Housing and Development Board’s list released on Friday, which broke down flat prices for the first quarter. In all three instances, HDB noted, the figures should not be taken as representative as there were fewer than 20 resale transactions in those towns for those flat types.
Indeed, overall, the median COV for the first three months of the year stabilised at $25,000 after a marginal increase of just $1,000 – compared to the fourth quarter of last year which saw the COV double.
And the HDB’s resale price index rose more slowly as well, by 2.8 per cent, as the number of resale transactions slipped 5 per cent – in large part, some analysts noted, due to the huge cash-out-of-pocket sums being demanded by sellers.
Generally, resale flats in Bishan attracted the highest median COV of $32,000, followed by those in Punggol ($31,000) and Marine Parade, Central and Sengkang ($30,000).
The COV rose for three-, four- and five-room flat types in Kallang/Whampoa, where a five-room unit which previously drew a $16,600 COV now commanded $40,000. The trend was similar in Clementi.
“It could be that market is playing catch-up and that that people have bought flats in anticipation of the Circle Line,” said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
In general, “COVs are still going up but at a much slower pace and they might be starting to reach a ceiling”, he noted. But prices overall would continue to rise as “the valuation of resale flats will also rise”.
For those short on cash, Woodlands, Pasir Ris and Geylang were their best bets, with the median COV ranging from $20,000 to $22,000.
To meet demand, HDB said it plans to launch about 12,300 new Build-To-Order (BTO) flats by September, with 1,100 to be offered next month in Yishun and Jurong West. In addition, a Punggol executive condominium site on the Government’s Reserve List will be put up for tender early next month.
Source : Today – 24 Apr 2010
Private property prices continue to rise
Prices of Singapore’s private homes market defied recent property cooling measures and continued their upward climb in the first quarter of this year, even though the rate of growth has moderated slightly.
Statistics released by the Urban Redevelopment Authority (URA) on Friday show private residential properties prices rising to 175 points for the first quarter of this year, around 5.6 per cent higher than the previous quarter.
Analysts told MediaCorp that the whopping 7.4 per cent growth in private home prices in the fourth quarter of last year was “too high and unsustainable”.
“Although the price increase has dropped to 5.6 per cent this first quarter, it is still of the higher range”, said Mr Nicholas Mak, real-estate lecturer at Ngee Ann Polytechnic.
He said that if this trend continued, by year-end there could be a 22-per-cent jump in private home prices, reaching the peak level of 2008.
Real-estate agency ERA Asia Pacific said the market’s bullishness could be attributed to the opening of the two integrated resorts, as well as the Youth Olympic Games to be held in Singapore.
Singapore is becoming increasingly visible among international investors and high net worth individuals, said Mr Eugene Lim, associate director of ERA Asia Pacific.
According to the URA, prices of private homes on the city fringe during the first quarter rose the highest, by 7.9 per cent.
Prices of private homes located in the city climbed 4.4 per cent, while those in suburban areas rose 4.3 per cent. Rentals of private residential properties also increased 4.7 per cent.
URA statistics show a total of 4,372 uncompleted private residential units launched for sale by developers in the first quarter of the year – almost twice the 2,227 units released in the previous quarter.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, reckons that the increase in supply of private residential units may help temper prices further in the next quarter.
To lower inflation risks, Mr Tan said the healthy price growth for private homes should hover between 2 and 3 per cent every quarter.
In terms of sub-sales, the total number of such transactions was 806 in the first quarter, up from 771 in the previous quarter.
Sub-sales, or re-sales that occurred before the completion of a project, are usually used as an indicator of speculative activity.
Source : Today – 24 Apr 2010
Statistics released by the Urban Redevelopment Authority (URA) on Friday show private residential properties prices rising to 175 points for the first quarter of this year, around 5.6 per cent higher than the previous quarter.
Analysts told MediaCorp that the whopping 7.4 per cent growth in private home prices in the fourth quarter of last year was “too high and unsustainable”.
“Although the price increase has dropped to 5.6 per cent this first quarter, it is still of the higher range”, said Mr Nicholas Mak, real-estate lecturer at Ngee Ann Polytechnic.
He said that if this trend continued, by year-end there could be a 22-per-cent jump in private home prices, reaching the peak level of 2008.
Real-estate agency ERA Asia Pacific said the market’s bullishness could be attributed to the opening of the two integrated resorts, as well as the Youth Olympic Games to be held in Singapore.
Singapore is becoming increasingly visible among international investors and high net worth individuals, said Mr Eugene Lim, associate director of ERA Asia Pacific.
According to the URA, prices of private homes on the city fringe during the first quarter rose the highest, by 7.9 per cent.
Prices of private homes located in the city climbed 4.4 per cent, while those in suburban areas rose 4.3 per cent. Rentals of private residential properties also increased 4.7 per cent.
URA statistics show a total of 4,372 uncompleted private residential units launched for sale by developers in the first quarter of the year – almost twice the 2,227 units released in the previous quarter.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, reckons that the increase in supply of private residential units may help temper prices further in the next quarter.
To lower inflation risks, Mr Tan said the healthy price growth for private homes should hover between 2 and 3 per cent every quarter.
In terms of sub-sales, the total number of such transactions was 806 in the first quarter, up from 771 in the previous quarter.
Sub-sales, or re-sales that occurred before the completion of a project, are usually used as an indicator of speculative activity.
Source : Today – 24 Apr 2010
Boutique developments: a new trend?
Boutique developments are the new buzzword among property investors who value privacy and exclusivity.
Unlike condominiums or landed properties, boutique developments offer a smaller but luxurious living space with high-quality furnishings, personalised amenities, sleek interiors and avant-garde facades, often in prime locations or scenic spots.
A key selling point is the sense of privacy afforded by such developments, which typically consists of only 20 to 40 units of one to four bedrooms.
And what these developments lack in size, they more than make up for in their unique features.
“Some locations lend themselves more readily to boutique developments, for example, projects in lush green areas, seafronts, on a hilltop, overlooking city lights or some other interesting features,” said Colin Tan, head of research and consultancy at Chesterton Suntec International.
“The other way to add exclusivity to boutique developments is to tie in with hotels for special concierge services, especially if the location does not have a natural advantage.
“Large apartment sizes can be a special feature in themselves but of course this reduces affordability,” he added.
Mr Tan said such developments don’t come cheap and are more likely to be bought by homeowners rather than investors. Such homeowners tend to be working couples or singles who earn between $5,000 to $6,000 a month, said Mr Dennis Yong, head of special projects at HSR International.
But investors are unfazed by the high prices. The Holland Collection was launched today (April 24), and its developers said it is likely to “attract sizeable interest among home owners and property investors.”
Developed jointly by Lippo Group and CLSA Capital Partners Real Estate Fund, the freehold Holland Collection is located in the prime district 10 location on Holland Road.
All 26 units are selling for an average of $2,000 per square foot (psf) and range from 1,281 square feet for a two-bedroom unit to 3,606 square feet for a four-bedroom penthouse.
Selling at about the same price are the 34-unit Ferrell Residences on Bukit Timah Road at $2,001 psf and the 15-unit Promont at Cairnhill Circle at $2,086 psf, according to statistics from the Urban Redevelopment Authority.
But given that such developments are niche investments, investors should be aware of the caveats especially if they are looking to sell.
“The marketing period will be much longer as the property is catering to a niche market. Hence panic-selling will not get you a good price. But price-wise, it will not be much worse off than other types of properties in property downturn,” said Chesterton’s Mr Tan.
Source : Today – 24 Apr 2010
Unlike condominiums or landed properties, boutique developments offer a smaller but luxurious living space with high-quality furnishings, personalised amenities, sleek interiors and avant-garde facades, often in prime locations or scenic spots.
A key selling point is the sense of privacy afforded by such developments, which typically consists of only 20 to 40 units of one to four bedrooms.
And what these developments lack in size, they more than make up for in their unique features.
“Some locations lend themselves more readily to boutique developments, for example, projects in lush green areas, seafronts, on a hilltop, overlooking city lights or some other interesting features,” said Colin Tan, head of research and consultancy at Chesterton Suntec International.
“The other way to add exclusivity to boutique developments is to tie in with hotels for special concierge services, especially if the location does not have a natural advantage.
“Large apartment sizes can be a special feature in themselves but of course this reduces affordability,” he added.
Mr Tan said such developments don’t come cheap and are more likely to be bought by homeowners rather than investors. Such homeowners tend to be working couples or singles who earn between $5,000 to $6,000 a month, said Mr Dennis Yong, head of special projects at HSR International.
But investors are unfazed by the high prices. The Holland Collection was launched today (April 24), and its developers said it is likely to “attract sizeable interest among home owners and property investors.”
Developed jointly by Lippo Group and CLSA Capital Partners Real Estate Fund, the freehold Holland Collection is located in the prime district 10 location on Holland Road.
All 26 units are selling for an average of $2,000 per square foot (psf) and range from 1,281 square feet for a two-bedroom unit to 3,606 square feet for a four-bedroom penthouse.
Selling at about the same price are the 34-unit Ferrell Residences on Bukit Timah Road at $2,001 psf and the 15-unit Promont at Cairnhill Circle at $2,086 psf, according to statistics from the Urban Redevelopment Authority.
But given that such developments are niche investments, investors should be aware of the caveats especially if they are looking to sell.
“The marketing period will be much longer as the property is catering to a niche market. Hence panic-selling will not get you a good price. But price-wise, it will not be much worse off than other types of properties in property downturn,” said Chesterton’s Mr Tan.
Source : Today – 24 Apr 2010
Friday, April 23, 2010
Price of private residential properties up by 5.6% in Q1 2010
Private home prices continue to rise first quarter this year but at a slower pace.
Final data released by the Urban Redevelopment Authority (URA) showed that prices were up 5.6 per cent slightly higher than the initial estimate of 5.1 per cent.
But the rate of price growth has moderated from the 7.4 per cent increase recorded in the fourth quarter last year.
URA said private home prices rose across all segments.
Those in the city cost 4.4 per cent more while prices of homes in the city fringe rose by 7.9 per cent.
Prices of suburban homes also climbed 4.3 per cent in the first quarter.
Meanwhile, URA said rentals of private residential properties increased by 4.7 per cent.
The first quarter also saw developers placing 4,372 new units for sale, almost twice the number of units launched in the previous quarter.
The number of sub-sales transaction also rose by 4.5 per cent on-quarter to 806 in the first quarter.
In percentage terms, sub-sales accounted for 8.5 per cent of all sale transactions in the first three months of the year, compared to 11.6 per cent in the previous quarter
Sub-sales, which refer to re-sales that occurred before the completion of a project, are usually used as an indicator of speculative activities.
Source : Channel NewsAsia – 23 Apr 2010
Final data released by the Urban Redevelopment Authority (URA) showed that prices were up 5.6 per cent slightly higher than the initial estimate of 5.1 per cent.
But the rate of price growth has moderated from the 7.4 per cent increase recorded in the fourth quarter last year.
URA said private home prices rose across all segments.
Those in the city cost 4.4 per cent more while prices of homes in the city fringe rose by 7.9 per cent.
Prices of suburban homes also climbed 4.3 per cent in the first quarter.
Meanwhile, URA said rentals of private residential properties increased by 4.7 per cent.
The first quarter also saw developers placing 4,372 new units for sale, almost twice the number of units launched in the previous quarter.
The number of sub-sales transaction also rose by 4.5 per cent on-quarter to 806 in the first quarter.
In percentage terms, sub-sales accounted for 8.5 per cent of all sale transactions in the first three months of the year, compared to 11.6 per cent in the previous quarter
Sub-sales, which refer to re-sales that occurred before the completion of a project, are usually used as an indicator of speculative activities.
Source : Channel NewsAsia – 23 Apr 2010
City Dev sells over 85% of launched Tree House units
Property developer City Developments said it sold over 85 per cent of the 350 units launched at its latest development, Tree House, during a private preview on Thursday.
Tree House is a 99-year leasehold condominium located within the Upper Bukit Timah and Chestnut Avenue private residential estate.
The development comprises four towers of 24-storey apartments with 429 units.
CDL said units from two to four bedrooms, including penthouses, were taken up at the event on Thursday.
The apartments are priced at about S$800 per square foot on average.
And those released for sale on Thursday ranged from S$640,000 for two-bedroom units to about S$2.4 million for the five-bedroom penthouses.
CDL said 80 per cent of the buyers are Singaporeans.
It added that it will launch the remaining units progressively this weekend.
CDL’s Group General Manager Chia Ngiang Hong said the group tendered for the land site last year because it saw potential for an eco-inspired residential development in the tranquil estate.
He added that Tree House appeals to buyers who are looking for value for money and high investment potential.
Source : Channel NewsAsia – 23 Apr 2010
Tree House is a 99-year leasehold condominium located within the Upper Bukit Timah and Chestnut Avenue private residential estate.
The development comprises four towers of 24-storey apartments with 429 units.
CDL said units from two to four bedrooms, including penthouses, were taken up at the event on Thursday.
The apartments are priced at about S$800 per square foot on average.
And those released for sale on Thursday ranged from S$640,000 for two-bedroom units to about S$2.4 million for the five-bedroom penthouses.
CDL said 80 per cent of the buyers are Singaporeans.
It added that it will launch the remaining units progressively this weekend.
CDL’s Group General Manager Chia Ngiang Hong said the group tendered for the land site last year because it saw potential for an eco-inspired residential development in the tranquil estate.
He added that Tree House appeals to buyers who are looking for value for money and high investment potential.
Source : Channel NewsAsia – 23 Apr 2010
HDB quarterly resale prices hit new record, but analysts say prices stabilising
HDB resale prices have hit a fresh record in the first quarter of this year rising by 2.8 per cent compared with the previous quarter. But the latest figures show signs of a market that’s finally stabilising after months of runaway prices.
Some analysts expect demand to continue to rise in the next few months but said cash premiums are unlikely to go much higher than the current median of S$25,000.
The official figures confirm estimates released earlier this month.
Resale transactions have dipped by about five per cent while median cash premiums, or COVs, have risen at a much slower pace than in previous quarters.
They went up S$1,000 in the last three months compared to the jump of S$12,000 between the third and fourth quarters last year.
They now stand at S$25,000, with flats in Bishan fetching the highest COVs, of about S$32,000.
Strong demand for newer estates has also translated into high premiums.
Towns like Punggol and Sengkang are seeing premiums of about S$30,000.
Eugene Lim, associate director, ERA Asia Pacific, said: “If you compare Punggol, Sengkang prices vis-a-vis mature HDB estates, they are still cheaper. Even though with high COVs of around S$30,000, you find that S$30,000 actually is the average COV nowadays for most flats. So, if you’re paying thereabouts, why not get something newer versus something older?”
Analysts said measures to cool the market have worked including the launch of more HDB projects.
Other measures include restricting the cash portion of the second concessionary home loan, channeling the loan through the buyer’s CPF account.
Moving forward, ERA’a Eugene Lim said the government may consider further measures to ease demand.
And while some observers say possible interest rate increases later this year will hit buyers’ pockets, others disagree.
Jeffrey Hong, executive director, HSR International Realtors, said: “In general they don’t look at, ‘At the end of 30 years of loan, how much do I actually pay for my flat?’ The first-time buyers are more concerned about how much they pay on a monthly basis. So if the increase in the interest is not much, the increment of the monthly payment is probably S$20 to S$50 a month more.”
In the rental market, demand between January and March increased sharply, with transactions up 69 per cent over the previous quarter.
The HDB said subletting transactions went up from 3,902 in the last three months of 2009, to 6,606 cases.
Analysts said this is partly driven by foreigners returning to Singapore to work as the economy improves.
However, rents remain relatively stable, with median prices for four- and five-room flats hovering just under S$2,000 a month.
Analysts said this is partly driven by foreigners returning to Singapore to work as the economy improves while the HDB said the spike is also due to an increase in renewals of rental flats.
In the last three months, 2,323 flatowners applied to continue renting their flats, 19 per cent more than the previous quarter.
The HDB added that more homeowners are also aware that they have to apply to the HDB for approval which could add to the increase.
However, rents remain relatively stable with median prices for four- and five-room flats hovering just under S$2,000 a month.
ERA’s Eugene Lim said strong demand will not likely translate into escalating rents because the supply of flats that can be subletted is high.
Under HDB rules, flats can be sublet after a minimum of three years.
But analysts said there is no similar jump in demand in the private rental market, suggesting that rental budgets remain low.
In the private residential market, prices were up 5.6 per cent, marginally higher than the 5.1 percent hike initially estimated.
Source : Channel NewsAsia – 23 Apr 2010
Some analysts expect demand to continue to rise in the next few months but said cash premiums are unlikely to go much higher than the current median of S$25,000.
The official figures confirm estimates released earlier this month.
Resale transactions have dipped by about five per cent while median cash premiums, or COVs, have risen at a much slower pace than in previous quarters.
They went up S$1,000 in the last three months compared to the jump of S$12,000 between the third and fourth quarters last year.
They now stand at S$25,000, with flats in Bishan fetching the highest COVs, of about S$32,000.
Strong demand for newer estates has also translated into high premiums.
Towns like Punggol and Sengkang are seeing premiums of about S$30,000.
Eugene Lim, associate director, ERA Asia Pacific, said: “If you compare Punggol, Sengkang prices vis-a-vis mature HDB estates, they are still cheaper. Even though with high COVs of around S$30,000, you find that S$30,000 actually is the average COV nowadays for most flats. So, if you’re paying thereabouts, why not get something newer versus something older?”
Analysts said measures to cool the market have worked including the launch of more HDB projects.
Other measures include restricting the cash portion of the second concessionary home loan, channeling the loan through the buyer’s CPF account.
Moving forward, ERA’a Eugene Lim said the government may consider further measures to ease demand.
And while some observers say possible interest rate increases later this year will hit buyers’ pockets, others disagree.
Jeffrey Hong, executive director, HSR International Realtors, said: “In general they don’t look at, ‘At the end of 30 years of loan, how much do I actually pay for my flat?’ The first-time buyers are more concerned about how much they pay on a monthly basis. So if the increase in the interest is not much, the increment of the monthly payment is probably S$20 to S$50 a month more.”
In the rental market, demand between January and March increased sharply, with transactions up 69 per cent over the previous quarter.
The HDB said subletting transactions went up from 3,902 in the last three months of 2009, to 6,606 cases.
Analysts said this is partly driven by foreigners returning to Singapore to work as the economy improves.
However, rents remain relatively stable, with median prices for four- and five-room flats hovering just under S$2,000 a month.
Analysts said this is partly driven by foreigners returning to Singapore to work as the economy improves while the HDB said the spike is also due to an increase in renewals of rental flats.
In the last three months, 2,323 flatowners applied to continue renting their flats, 19 per cent more than the previous quarter.
The HDB added that more homeowners are also aware that they have to apply to the HDB for approval which could add to the increase.
However, rents remain relatively stable with median prices for four- and five-room flats hovering just under S$2,000 a month.
ERA’s Eugene Lim said strong demand will not likely translate into escalating rents because the supply of flats that can be subletted is high.
Under HDB rules, flats can be sublet after a minimum of three years.
But analysts said there is no similar jump in demand in the private rental market, suggesting that rental budgets remain low.
In the private residential market, prices were up 5.6 per cent, marginally higher than the 5.1 percent hike initially estimated.
Source : Channel NewsAsia – 23 Apr 2010
Thursday, April 22, 2010
China set to launch Reits in H2
China is expected to launch its version of real estate investment trusts in the second half of this year, giving Chinese developers more access to capital and offering investors another way to put their money in property.
Shanghai could be the first to roll out an unlisted Reit of state-backed government groups such as Waigaoqiao, Lujiazui, Jinqiao and Zhangjiang, which own office buildings and warehouses in free trade zones.
Other cities preparing for a launch of unlisted Reits later this year include Beijing and Tianjin, which will pave the way for China to roll out listed Reits, valued at over US$100 billion in Asia-Pacific.
The first China Reits will be traded among domestic institutional investors in the interbank market, unlike typical listed Reits in Australia and Singapore, such as Westfield Group and Mapletree Logistics, that are open to retail and foreign investors.
‘I expect regulations to be announced at the end of the second quarter and once there is good response for the pilot Reits, more will come,’ said Chiu Kam-kuen, North Asia managing director at property services firm DTZ, which is involved in the valuation of Chinese Reits.
A real estate investment trust is a fund that invests in mainly commercial property. The collected rent from the properties goes to shareholders in the form of dividends. Thanks to this structure, Reit investment returns in Asia are usually in the 5-10 per cent range, much higher than yields of government bonds.
Source : Business Times – 22 Apr 2010
Shanghai could be the first to roll out an unlisted Reit of state-backed government groups such as Waigaoqiao, Lujiazui, Jinqiao and Zhangjiang, which own office buildings and warehouses in free trade zones.
Other cities preparing for a launch of unlisted Reits later this year include Beijing and Tianjin, which will pave the way for China to roll out listed Reits, valued at over US$100 billion in Asia-Pacific.
The first China Reits will be traded among domestic institutional investors in the interbank market, unlike typical listed Reits in Australia and Singapore, such as Westfield Group and Mapletree Logistics, that are open to retail and foreign investors.
‘I expect regulations to be announced at the end of the second quarter and once there is good response for the pilot Reits, more will come,’ said Chiu Kam-kuen, North Asia managing director at property services firm DTZ, which is involved in the valuation of Chinese Reits.
A real estate investment trust is a fund that invests in mainly commercial property. The collected rent from the properties goes to shareholders in the form of dividends. Thanks to this structure, Reit investment returns in Asia are usually in the 5-10 per cent range, much higher than yields of government bonds.
Source : Business Times – 22 Apr 2010
China Asset Mgt buys developers
Mutual fund expects govt to withdraw stimulus policies gradually
China Asset Management Co, the country’s biggest mutual fund company, bought developers in its flagship fund in the first quarter, predicting ‘gentle’ tightening this year, according to the company’s Web site.
Wang Yawei cut the proportion of equities in his China AMC Large-Cap Select Fund, the best-performing China-based fund over the past five years, to 88.6 per cent as of March 31, compared with 93 per cent in the preceding quarter. He sold manufacturers as speculation increased that China may revalue its currency.
‘China will continue to exit its stimulus policies,’ said Mr Wang in the regulatory filing posted on its Web site. ‘Tightening will be gentle.’
China has ordered banks to set aside more deposits as reserves twice this year to slow record loan growth and curb property-price gains. A measure of real-estate stocks on the Shanghai Composite Index has declined 19 per cent this year, the worst performer among the five industry groups.
The fund’s top stock holding, Xinjiang Guanghui Industry Co, a real-estate developer and coal producer, jumped 4.7 per cent on Tuesday, extending this year’s gains to 45 per cent compared with the 9 per cent drop in the Shanghai Composite.
Mr Wang bought developers before the government recently announced more measures to curb property speculation. China on Tuesday ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging ‘abnormally high’ prices, stepping up efforts to prevent a property bubble.
Recent stock declines have made China’s developers ‘more attractive’ as the curbs on bank lending drove valuations to a year-low and made interest rate increases less likely, Chris Ruffle, who helps manage US$19 billion as China co-chairman of Martin Currie, said on Monday.
Morgan Stanley analyst Jerry Lou recommended on Monday that investors avoid property, banking and construction material stocks, saying the ‘austerity’ measures may be negative in the near term.
The focus on developers’ sales tactics adds to curbs on loans for third-home purchases, increased down payment requirements and higher mortgage rates announced in the past week.
China’s Cabinet has said stricter measures to control speculation are needed after property prices in 70 cities jumped a record 11.7 per cent in March.
Property stocks accounted for 15.7 per cent of the fund at the end of the first quarter, compared with 11.8 per cent at the end of the last year, according to the fund statement.
The sale of manufacturing stocks comes as speculation increased that China may revalue its currency, which has been pegged to the dollar at about 6.83 yuan since July 2008.
Source : Business Times – 22 Apr 2010
China Asset Management Co, the country’s biggest mutual fund company, bought developers in its flagship fund in the first quarter, predicting ‘gentle’ tightening this year, according to the company’s Web site.
Wang Yawei cut the proportion of equities in his China AMC Large-Cap Select Fund, the best-performing China-based fund over the past five years, to 88.6 per cent as of March 31, compared with 93 per cent in the preceding quarter. He sold manufacturers as speculation increased that China may revalue its currency.
‘China will continue to exit its stimulus policies,’ said Mr Wang in the regulatory filing posted on its Web site. ‘Tightening will be gentle.’
China has ordered banks to set aside more deposits as reserves twice this year to slow record loan growth and curb property-price gains. A measure of real-estate stocks on the Shanghai Composite Index has declined 19 per cent this year, the worst performer among the five industry groups.
The fund’s top stock holding, Xinjiang Guanghui Industry Co, a real-estate developer and coal producer, jumped 4.7 per cent on Tuesday, extending this year’s gains to 45 per cent compared with the 9 per cent drop in the Shanghai Composite.
Mr Wang bought developers before the government recently announced more measures to curb property speculation. China on Tuesday ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging ‘abnormally high’ prices, stepping up efforts to prevent a property bubble.
Recent stock declines have made China’s developers ‘more attractive’ as the curbs on bank lending drove valuations to a year-low and made interest rate increases less likely, Chris Ruffle, who helps manage US$19 billion as China co-chairman of Martin Currie, said on Monday.
Morgan Stanley analyst Jerry Lou recommended on Monday that investors avoid property, banking and construction material stocks, saying the ‘austerity’ measures may be negative in the near term.
The focus on developers’ sales tactics adds to curbs on loans for third-home purchases, increased down payment requirements and higher mortgage rates announced in the past week.
China’s Cabinet has said stricter measures to control speculation are needed after property prices in 70 cities jumped a record 11.7 per cent in March.
Property stocks accounted for 15.7 per cent of the fund at the end of the first quarter, compared with 11.8 per cent at the end of the last year, according to the fund statement.
The sale of manufacturing stocks comes as speculation increased that China may revalue its currency, which has been pegged to the dollar at about 6.83 yuan since July 2008.
Source : Business Times – 22 Apr 2010
New govt curbs won’t dampen demand: Mobius
Demand for housing in China will withstand government bank lending curbs, and further declines in the nation’s property stocks may be an opportunity to buy the shares, Templeton Asset Management’s Mark Mobius said.
‘We don’t see fundamentals of the property industry will change much because of these new policies,’ Mr Mobius, executive chairman at Templeton, said in response to questions.
‘We are in general still light on Chinese developers and if this correction brings valuations to more attractive levels, it would be a good opportunity for us to step up our positions.’
A measure of 34 property stocks on the Shanghai Composite Index has plunged 8.8 per cent this week after the government limited loans for third-home purchases, increased down payment requirements and raised mortgage rates. China’s cabinet has said stricter measures to control speculation are needed after property prices in 70 cities jumped a record 11.7 per cent in March.
Martin Currie’s Chris Ruffle said in an interview this week Chinese real estate stocks are becoming ‘more attractive’ as government measures drove valuations to a year-low and made interest rate increases less likely.
China Asset Management, the nation’s biggest mutual fund company, bought developers in its flagship fund in the first quarter, predicting ‘gentle’ tightening this year, according to its website.
Economists are split on the timing of the nation’s first interest rate increase since 2007. Royal Bank of Canada said higher rates are likely this quarter and could come this month, while Bank of America-Merrill Lynch sees no move until the fourth quarter.
The SE Shang Property Index has lost 19 per cent this year, the most among the five industry groups. It now trades at 22.8 times reported earnings, the lowest since March 2009, according to data compiled by Bloomberg.
China on Tuesday ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging ‘abnormally high’ prices, stepping up efforts to prevent a property bubble. The Ministry of Housing and Urban-Rural Development vowed to punish developers that ‘artificially’ create supply shortages.
China’s banking regulator also told larger banks to conduct quarterly stress tests on property loans and ensure the risks of such lending is strictly controlled, according to a statement on the China Banking Regulatory Commission’s website.
‘Recent policy changes on property and mortgages were introduced with the purpose of curbing speculation, but not hurting real demand,’ Mr Mobius said.
Shenyin & Wanguo Securities Co analysts led by Zhu Anping said on Tuesday investors should avoid property-related stocks because earnings at developers may deteriorate.
Mr Mobius said China will have ‘strong real housing demand growth’ over the next decade as more people move to the cities.
Source : Business Times – 22 Apr 2010
‘We don’t see fundamentals of the property industry will change much because of these new policies,’ Mr Mobius, executive chairman at Templeton, said in response to questions.
‘We are in general still light on Chinese developers and if this correction brings valuations to more attractive levels, it would be a good opportunity for us to step up our positions.’
A measure of 34 property stocks on the Shanghai Composite Index has plunged 8.8 per cent this week after the government limited loans for third-home purchases, increased down payment requirements and raised mortgage rates. China’s cabinet has said stricter measures to control speculation are needed after property prices in 70 cities jumped a record 11.7 per cent in March.
Martin Currie’s Chris Ruffle said in an interview this week Chinese real estate stocks are becoming ‘more attractive’ as government measures drove valuations to a year-low and made interest rate increases less likely.
China Asset Management, the nation’s biggest mutual fund company, bought developers in its flagship fund in the first quarter, predicting ‘gentle’ tightening this year, according to its website.
Economists are split on the timing of the nation’s first interest rate increase since 2007. Royal Bank of Canada said higher rates are likely this quarter and could come this month, while Bank of America-Merrill Lynch sees no move until the fourth quarter.
The SE Shang Property Index has lost 19 per cent this year, the most among the five industry groups. It now trades at 22.8 times reported earnings, the lowest since March 2009, according to data compiled by Bloomberg.
China on Tuesday ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging ‘abnormally high’ prices, stepping up efforts to prevent a property bubble. The Ministry of Housing and Urban-Rural Development vowed to punish developers that ‘artificially’ create supply shortages.
China’s banking regulator also told larger banks to conduct quarterly stress tests on property loans and ensure the risks of such lending is strictly controlled, according to a statement on the China Banking Regulatory Commission’s website.
‘Recent policy changes on property and mortgages were introduced with the purpose of curbing speculation, but not hurting real demand,’ Mr Mobius said.
Shenyin & Wanguo Securities Co analysts led by Zhu Anping said on Tuesday investors should avoid property-related stocks because earnings at developers may deteriorate.
Mr Mobius said China will have ‘strong real housing demand growth’ over the next decade as more people move to the cities.
Source : Business Times – 22 Apr 2010
Sibor and SOR fall, but home loan rates rise
TWO key interest rates that determine how much your home loan costs are near their all-time lows but borrowers taking out new mortgages may not be better off.
Borrowers usually benefit when these measures drop but this time banks are responding to the riskier economic climate and surging property market by charging more for loans.
The most well-known of these measures – the three-month Singapore Interbank Offered Rate, or Sibor – fell below 0.6 per cent on Tuesday. This brought it near the all-time low of 0.56 per cent struck in June 2003.
Another popular benchmark rate – the Singapore dollar Swap Offer Rate (SOR) – hit 0.307 per cent last Thursday. This was the lowest level in at least a decade, according to Bloomberg data.
The rates, already low as they track prevailing United States rates, which are at rock bottom, fell further last week after the Singdollar rose.
Borrowers can take out mortgages pegged to these measures but those who expect these loans will follow the two rates down will be disappointed. Some banks have upped the spreads that they charge above Sibor and SOR, making loans linked to the rates more expensive.
‘Property prices have gone up to previous highs and the risk of financing a property has gone up, so banks are pricing this risk into their margins,’ said a consumer banker.
At DBS Bank, a home buyer taking a loan of 80 per cent of his property’s value around March would have paid a rate of Sibor plus 0.5 percentage points for the first year and Sibor plus 0.75 percentage points for the second.
A buyer opting for this DBS package now will have to pay Sibor plus 1 percentage point for the first two years.
Standard Chartered Bank has also revised spreads for its three-month Sibor-pegged loan. It is now charging Sibor plus 1.25 percentage points, compared with 1 percentage point in March.
Loans pegged to the SOR have also been hit by the increasing spreads.
For example, the margins for OCBC Bank’s two-year packages linked to the SOR have shot up from March to April, with a rise of 0.25 percentage points for its one- and two-year packages.
The higher spreads will affect a growing number of borrowers as Sibor-linked loans have become increasingly popular since their launch about three years ago.
Mr Dennis Ng, spokesman for www.HousingLoanSG.com – a mortgage consultancy portal – said lenders on the new DBS package will fork out more each month than those on the older deal. Mr Ng calculated that borrowing $500,000 over 20 years at a constant Sibor rate of 0.7 per cent will cost $115 more in monthly instalments during the first year, and $58 a month more in the second.
Sibor is very low now as it tracks the US Federal Reserve Fed funds target rate, which is near zero.
SOR comprises the bank’s prevailing lending costs plus Sibor.
Both Sibor and SOR, both already low, dropped over the last week after the Monetary Authority of Singapore tightened the Singapore dollar. The appreciation of the Singdollar is likely to attract capital inflows, which means banks have plenty of cash to lend.
‘When you have excess liquidity, this will typically drive down short-term interest rates,’ said OCBC economist Selena Ling.
With higher interest rates expected in the later part of this year, home buyers opting for floating rate packages such as Sibor-pegged mortgages could end up paying more – assuming bank loan spreads do not change.
‘I think Sibor will likely creep slightly higher in a fairly gradual and incremental fashion from current levels towards the 0.8 per cent to 1 per cent range in the second half of this year,’ Ms Ling added.
The increasing spreads that banks charge above Sibor and SOR are unlikely to affect the property market for now at least, say real estate experts.
‘The perceived returns and profits from investing in property are still higher and can justify the interest rate,’ said Mr Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic.
DBS said it offers competitively-priced deals with different features. StanChart and OCBC said their rates were reviewed periodically so that they moved in line with the industry, the general interest rate environment and business considerations.
Other banks including UOB, Citi, Maybank, HSBC, and Hong Leong Finance did not comment on whether any changes would be made to their interest rates in the future.
Source : Straits Times – 22 Apr 2010
Borrowers usually benefit when these measures drop but this time banks are responding to the riskier economic climate and surging property market by charging more for loans.
The most well-known of these measures – the three-month Singapore Interbank Offered Rate, or Sibor – fell below 0.6 per cent on Tuesday. This brought it near the all-time low of 0.56 per cent struck in June 2003.
Another popular benchmark rate – the Singapore dollar Swap Offer Rate (SOR) – hit 0.307 per cent last Thursday. This was the lowest level in at least a decade, according to Bloomberg data.
The rates, already low as they track prevailing United States rates, which are at rock bottom, fell further last week after the Singdollar rose.
Borrowers can take out mortgages pegged to these measures but those who expect these loans will follow the two rates down will be disappointed. Some banks have upped the spreads that they charge above Sibor and SOR, making loans linked to the rates more expensive.
‘Property prices have gone up to previous highs and the risk of financing a property has gone up, so banks are pricing this risk into their margins,’ said a consumer banker.
At DBS Bank, a home buyer taking a loan of 80 per cent of his property’s value around March would have paid a rate of Sibor plus 0.5 percentage points for the first year and Sibor plus 0.75 percentage points for the second.
A buyer opting for this DBS package now will have to pay Sibor plus 1 percentage point for the first two years.
Standard Chartered Bank has also revised spreads for its three-month Sibor-pegged loan. It is now charging Sibor plus 1.25 percentage points, compared with 1 percentage point in March.
Loans pegged to the SOR have also been hit by the increasing spreads.
For example, the margins for OCBC Bank’s two-year packages linked to the SOR have shot up from March to April, with a rise of 0.25 percentage points for its one- and two-year packages.
The higher spreads will affect a growing number of borrowers as Sibor-linked loans have become increasingly popular since their launch about three years ago.
Mr Dennis Ng, spokesman for www.HousingLoanSG.com – a mortgage consultancy portal – said lenders on the new DBS package will fork out more each month than those on the older deal. Mr Ng calculated that borrowing $500,000 over 20 years at a constant Sibor rate of 0.7 per cent will cost $115 more in monthly instalments during the first year, and $58 a month more in the second.
Sibor is very low now as it tracks the US Federal Reserve Fed funds target rate, which is near zero.
SOR comprises the bank’s prevailing lending costs plus Sibor.
Both Sibor and SOR, both already low, dropped over the last week after the Monetary Authority of Singapore tightened the Singapore dollar. The appreciation of the Singdollar is likely to attract capital inflows, which means banks have plenty of cash to lend.
‘When you have excess liquidity, this will typically drive down short-term interest rates,’ said OCBC economist Selena Ling.
With higher interest rates expected in the later part of this year, home buyers opting for floating rate packages such as Sibor-pegged mortgages could end up paying more – assuming bank loan spreads do not change.
‘I think Sibor will likely creep slightly higher in a fairly gradual and incremental fashion from current levels towards the 0.8 per cent to 1 per cent range in the second half of this year,’ Ms Ling added.
The increasing spreads that banks charge above Sibor and SOR are unlikely to affect the property market for now at least, say real estate experts.
‘The perceived returns and profits from investing in property are still higher and can justify the interest rate,’ said Mr Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic.
DBS said it offers competitively-priced deals with different features. StanChart and OCBC said their rates were reviewed periodically so that they moved in line with the industry, the general interest rate environment and business considerations.
Other banks including UOB, Citi, Maybank, HSBC, and Hong Leong Finance did not comment on whether any changes would be made to their interest rates in the future.
Source : Straits Times – 22 Apr 2010
IMF flags ‘bubble trouble’ in Asia
Many property markets overheating and correction fears loom; S’pore sees big share of new bank lending going into real estate
The International Monetary Fund warns that residential real estate markets in East Asia are overheating and that by some measures, valuations are stretched.
In its just-released Global Financial Stability report (April 2010), the IMF notes that since the second half of 2009, housing prices – especially at the high-end of the market – have rebounded quickly in China, Hong Kong, South Korea, and Singapore as well as Australia and New Zealand. In many markets, prices now exceed their 2008 peaks.
The rebound has been mainly driven by ‘unprecedented policy measures to mitigate the impact of the global financial crisis and the ensuing return of risk appetite’.
# Mortgage rates are at historical lows as central banks around the globe have cut policy rates.
# Real estate loan growth has been revived. So has the proportion of real estate loans to total bank lending, which in Singapore was close to 80 per cent in Q4 2009. This is the highest among the markets highlighted in the report. In percentage terms, year-on- year, the real estate loan growth has picked up most sharply in China.
# Governments in China and Korea introduced housing-related tax breaks in late 2008 to help boost their property markets.
# Capital inflows have further fuelled property price increases, particularly in Hong Kong and Singapore.
In Singapore, foreigners and companies accounted for 12.5 per cent of the third-quarter home purchases in 2009, compared with 8 per cent in the previous quarter.
The Fund cautions that by some measures, housing valuations are stretched. Although the average price-to-income ratio has risen modestly, in some markets – notably, China, Hong Kong, Singapore and Korea – price-to-rent ratios are ‘elevated’. It adds that many purchasers have been buying ‘in the expectation of price appreciation, rather than simply for dwelling purposes’.
The region’s booming real estate markets may pose risks to financial stability in the future, according to the IMF. Banks are ‘increasingly vulnerable’ to a price correction. Moreover, as most mortgage loans in Asian economies carry floating rates, ‘the widely anticipated rate hikes in the region will increase the burden on household balance sheets’.
The Fund acknowledges that governments in the region have taken measures to cool real estate markets, including tighter requirements on mortgage lending, increased land supply, and the reimposition of higher transaction taxes, such as stamp duties.
In Hong Kong, the average loan-to-value ratio of new mortgage loans has dropped significantly from its peak in June 2009, and banks in mainland China have started to tighten their mortgage criteria. In response to such measures, the growth rates of transaction values have declined, including in Singapore.
However, the full effects of the cooling measures ‘are still to be seen in the coming quarters’, says the Fund. It also suggests that governments may need to fine-tune their policies ‘to maintain a delicate balance between leaning against housing bubbles and ensuring a solid economic recovery’.
Source : Business Times – 22 Apr 2010
The International Monetary Fund warns that residential real estate markets in East Asia are overheating and that by some measures, valuations are stretched.
In its just-released Global Financial Stability report (April 2010), the IMF notes that since the second half of 2009, housing prices – especially at the high-end of the market – have rebounded quickly in China, Hong Kong, South Korea, and Singapore as well as Australia and New Zealand. In many markets, prices now exceed their 2008 peaks.
The rebound has been mainly driven by ‘unprecedented policy measures to mitigate the impact of the global financial crisis and the ensuing return of risk appetite’.
# Mortgage rates are at historical lows as central banks around the globe have cut policy rates.
# Real estate loan growth has been revived. So has the proportion of real estate loans to total bank lending, which in Singapore was close to 80 per cent in Q4 2009. This is the highest among the markets highlighted in the report. In percentage terms, year-on- year, the real estate loan growth has picked up most sharply in China.
# Governments in China and Korea introduced housing-related tax breaks in late 2008 to help boost their property markets.
# Capital inflows have further fuelled property price increases, particularly in Hong Kong and Singapore.
In Singapore, foreigners and companies accounted for 12.5 per cent of the third-quarter home purchases in 2009, compared with 8 per cent in the previous quarter.
The Fund cautions that by some measures, housing valuations are stretched. Although the average price-to-income ratio has risen modestly, in some markets – notably, China, Hong Kong, Singapore and Korea – price-to-rent ratios are ‘elevated’. It adds that many purchasers have been buying ‘in the expectation of price appreciation, rather than simply for dwelling purposes’.
The region’s booming real estate markets may pose risks to financial stability in the future, according to the IMF. Banks are ‘increasingly vulnerable’ to a price correction. Moreover, as most mortgage loans in Asian economies carry floating rates, ‘the widely anticipated rate hikes in the region will increase the burden on household balance sheets’.
The Fund acknowledges that governments in the region have taken measures to cool real estate markets, including tighter requirements on mortgage lending, increased land supply, and the reimposition of higher transaction taxes, such as stamp duties.
In Hong Kong, the average loan-to-value ratio of new mortgage loans has dropped significantly from its peak in June 2009, and banks in mainland China have started to tighten their mortgage criteria. In response to such measures, the growth rates of transaction values have declined, including in Singapore.
However, the full effects of the cooling measures ‘are still to be seen in the coming quarters’, says the Fund. It also suggests that governments may need to fine-tune their policies ‘to maintain a delicate balance between leaning against housing bubbles and ensuring a solid economic recovery’.
Source : Business Times – 22 Apr 2010
Wednesday, April 21, 2010
URA launches tender for commercial site at Stamford Road and North Bridge Road
The Urban Redevelopment Authority (URA) is launching a closely-watched commercial site at Stamford Road and North Bridge Road for sale by public tender.
The URA is launching the sale after a developer committed to bid at least S$100 million dollars for the 99-year-leasehold site, which was placed on the Reserve List system.
URA says the land parcel, which is 1.43 hectares in size, is slated for commercial use with a hotel component.
It contains a cluster of three historically and architecturally significant buildings, namely Capitol Theatre, Capitol Building and Stamford House.
As part of the redevelopment, those buildings must be retained and restored for adaptive reuse.
The site will be sold together with a subterranean parcel below North Bridge Road that provides seamless access to the City Hall MRT station.
The maximum permissible gross floor area for the development is close to 50,500 square metres.
Of that space, a minimum of 25 per cent is to be set aside for hotel use.
The land parcel is envisaged to also feature other uses like retail, food and beverage, art and entertainment facilities.
The tender will close on 18th August.
Source : Channel NewsAsia – 21 Apr 2010
The URA is launching the sale after a developer committed to bid at least S$100 million dollars for the 99-year-leasehold site, which was placed on the Reserve List system.
URA says the land parcel, which is 1.43 hectares in size, is slated for commercial use with a hotel component.
It contains a cluster of three historically and architecturally significant buildings, namely Capitol Theatre, Capitol Building and Stamford House.
As part of the redevelopment, those buildings must be retained and restored for adaptive reuse.
The site will be sold together with a subterranean parcel below North Bridge Road that provides seamless access to the City Hall MRT station.
The maximum permissible gross floor area for the development is close to 50,500 square metres.
Of that space, a minimum of 25 per cent is to be set aside for hotel use.
The land parcel is envisaged to also feature other uses like retail, food and beverage, art and entertainment facilities.
The tender will close on 18th August.
Source : Channel NewsAsia – 21 Apr 2010
Boon Keng Devt puts in top bid for Woodlands industrial site
Boon Keng Development has submitted the highest bid of S$65.2 million for an industrial site at Woodlands Avenue 12.
The price translates to about S$75 per square foot per plot ratio.
The top bid is some 29 per cent higher than the second highest offer of S$50.6 million from Affluence Resource.
Whye Wah Group put in the lowest bid of S$31 million.
All in, the Urban Redevelopment Authority (URA) received six bids for the site.
The land parcel, which has a lease period of 60 years, has a site area of about 3.2 hectares and a maximum gross plot ratio of 2.5.
It can be developed for a variety of uses under “Business 1″ zoning.
The site had previously been placed on the reserve list in December 2009.
Consultant CB Richard Ellis said the breakeven cost for the development is estimated to be about S$240-S$260 per square foot.
Source : Channel NewsAsia – 21 Apr 2010
The price translates to about S$75 per square foot per plot ratio.
The top bid is some 29 per cent higher than the second highest offer of S$50.6 million from Affluence Resource.
Whye Wah Group put in the lowest bid of S$31 million.
All in, the Urban Redevelopment Authority (URA) received six bids for the site.
The land parcel, which has a lease period of 60 years, has a site area of about 3.2 hectares and a maximum gross plot ratio of 2.5.
It can be developed for a variety of uses under “Business 1″ zoning.
The site had previously been placed on the reserve list in December 2009.
Consultant CB Richard Ellis said the breakeven cost for the development is estimated to be about S$240-S$260 per square foot.
Source : Channel NewsAsia – 21 Apr 2010
Residents have power to deal with MC members
MS Florence Tan (‘Keep members of MC, sales committee distinct’, BT, April 15) suggests that members of management committees (MC) be distinct from members of en bloc sale committees (SC).
Ms Tan is of the view that there will be a conflict of interest when members of the MC, whose main role is to oversee maintenance of the estate, are also tasked with the responsibility for an en bloc sale.
Separating the members of an MC and SC may not be very practical for smaller estates if insufficient persons come forward to form two separate committees. The Land Titles (Strata) Act allows owners to elect who they feel are best suited to represent their interests into the SC. The Act also allows owners to remove any SC member or even the entire SC if they are of the opinion that they are not discharging their duties in a fitting manner.
Under the Building Maintenance and Strata Management Act, the MC is duty-bound to ensure the estate is well maintained and kept in a state of good and serviceable repair. Should the MC fail to perform its duties as imposed by law, residents can seek redress through the Strata Titles Board or the Court to compel the MC to perform its duties. If residents are unhappy with the performance of council members, they can consider removing the council members concerned by way of an ordinary resolution at a general meeting on grounds of neglect of duty.
Thus, it is entirely within the powers of the majority of the residents to deal with errant MC members.
Chong Wan Yieng (Ms)
Head, corporate communications Ministry of Law
Source : Business Times – 20 Apr 2010
Ms Tan is of the view that there will be a conflict of interest when members of the MC, whose main role is to oversee maintenance of the estate, are also tasked with the responsibility for an en bloc sale.
Separating the members of an MC and SC may not be very practical for smaller estates if insufficient persons come forward to form two separate committees. The Land Titles (Strata) Act allows owners to elect who they feel are best suited to represent their interests into the SC. The Act also allows owners to remove any SC member or even the entire SC if they are of the opinion that they are not discharging their duties in a fitting manner.
Under the Building Maintenance and Strata Management Act, the MC is duty-bound to ensure the estate is well maintained and kept in a state of good and serviceable repair. Should the MC fail to perform its duties as imposed by law, residents can seek redress through the Strata Titles Board or the Court to compel the MC to perform its duties. If residents are unhappy with the performance of council members, they can consider removing the council members concerned by way of an ordinary resolution at a general meeting on grounds of neglect of duty.
Thus, it is entirely within the powers of the majority of the residents to deal with errant MC members.
Chong Wan Yieng (Ms)
Head, corporate communications Ministry of Law
Source : Business Times – 20 Apr 2010
HDB launches over 1,400 new BTO flats
THE Housing and Development Board (HDB) yesterday launched two new build-to-order (BTO) projects in Punggol, offering a total of 1,429 flats.
Both projects will be near the Punggol MRT Station, bus interchange and the future Punggol town centre.
Punggol Emerald, at the junction of Punggol Way and Punggol Central, will have 856 standard flats. These consist of 188 studio apartments, 96 three-roomers, 350 four-roomers and 222 five-roomers.
A five-room flat in this estate will sell for $333,000 to $403,000. According to HDB, the price of a comparable five-room resale flat in the vicinity is $412,000 to $471,000.
The other project, Punggol Waves, will be at Punggol Walk. It will offer 573 flats comprising 105 three- roomers, 259 four-roomers and 209 five-roomers.
A five-room flat here will cost $330,000 to $385,000, slightly less than one at Punggol Emerald. HDB notes that a comparable five-room resale flat in the vicinity would go for $415,000 to $471,000.
Both Punggol Emerald and Punggol Waves will have eco-friendly features, allowing them to qualify for Green Mark certification. This is part of HDB’s plans to develop Punggol as an eco-town.
These features will boost energy efficiency and indoor environment quality. The estates will also be built using precast construction methods to reduce wastage.
Applications for flats at Punggol Emerald and Punggol Waves will close on May 3.
Including units from the latest two projects in Punggol, HDB would have offered 5,082 new BTO flats in the first four months of this year. Home seekers can look forward to another 1,100 BTO flats in Yishun and Jurong West next month.
From May to September, HDB will launch 7,400 BTO flats, bringing the total number of flats introduced in the first three quarters of the year to about 12,000.
More flats are in the pipeline through the Design, Build and Sell scheme – a site in Yishun which can yield around 700 units is currently up for tender.
Source : Business Times – 20 Apr 2010
Both projects will be near the Punggol MRT Station, bus interchange and the future Punggol town centre.
Punggol Emerald, at the junction of Punggol Way and Punggol Central, will have 856 standard flats. These consist of 188 studio apartments, 96 three-roomers, 350 four-roomers and 222 five-roomers.
A five-room flat in this estate will sell for $333,000 to $403,000. According to HDB, the price of a comparable five-room resale flat in the vicinity is $412,000 to $471,000.
The other project, Punggol Waves, will be at Punggol Walk. It will offer 573 flats comprising 105 three- roomers, 259 four-roomers and 209 five-roomers.
A five-room flat here will cost $330,000 to $385,000, slightly less than one at Punggol Emerald. HDB notes that a comparable five-room resale flat in the vicinity would go for $415,000 to $471,000.
Both Punggol Emerald and Punggol Waves will have eco-friendly features, allowing them to qualify for Green Mark certification. This is part of HDB’s plans to develop Punggol as an eco-town.
These features will boost energy efficiency and indoor environment quality. The estates will also be built using precast construction methods to reduce wastage.
Applications for flats at Punggol Emerald and Punggol Waves will close on May 3.
Including units from the latest two projects in Punggol, HDB would have offered 5,082 new BTO flats in the first four months of this year. Home seekers can look forward to another 1,100 BTO flats in Yishun and Jurong West next month.
From May to September, HDB will launch 7,400 BTO flats, bringing the total number of flats introduced in the first three quarters of the year to about 12,000.
More flats are in the pipeline through the Design, Build and Sell scheme – a site in Yishun which can yield around 700 units is currently up for tender.
Source : Business Times – 20 Apr 2010
Upper Serangoon, Hougang sites up for public tender
Bids seen coming in at up to $560 psf ppr and $350 psf ppr respectively
TWO more 99-year leasehold residential plots were launched for sale by the government yesterday – one at Upper Serangoon Road from the confirmed list and the other at Hougang Avenue 2 from the reserve list.
The Hougang Avenue 2 site was triggered by a developer who agreed to bid at least $109.9 million for it, which works out to $241 per square foot per plot ratio (psf ppr), the Urban Redevelopment Authority said on April 7.
Analysts said then that the top bid for the site could come in at $310-350 psf ppr once the tender is launched.
The second site, between Upper Serangoon Road and Pheng Geck Avenue, is being launched in line with the schedule announced for the first-half 2010 government land sales (GLS) programme.
The site has a maximum gross floor area of 187,313 sq ft. Analysts say that it could fetch $450-560 psf ppr, which works out to a land cost of $84-105 million.
The site can be developed into a part low-rise (up to five-storeys) and part mid-rise (around 18 storeys) condominium comprising at least 150 units, said Li Hiaw Ho, executive director of CBRE Research.
‘It will be popular with home buyers and developers because of its location and proximity to an MRT station,’ Mr Li said. ‘As developers are still interested in acquiring sites, we expect it to be able to attract about 10 bids.’
Chua Chor Hoon, head of DTZ’s South-east Asia research team, said: ‘The successful tenderer is likely to build mainly small units on the site to capitalise on its proximity to the MRT. Investors would be attracted to buy them for leasing.’
Recent sub-sales at 28 Woodsville and 8@Woodleigh ranged from $884 psf to $905 psf, she said.
Eight major GLS residential sites, including an executive condominium site, will be sold between now and June 2010. In addition, two tenders set to be launched soon could close by end-June.
Analysts say that this is the highest concentration of GLS development land parcels in different locations offered for sale within a four-month period since the reserve list system was introduced in 2001.
‘The jury is still out on whether these 10 land tenders can continue to attract bullish bids or whether developers experience fatigue,’ said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. ‘If the highest bids in subsequent tenders display a declining pattern, the government may have achieved the first step towards moderating private home prices by using supply-side measures.’
The tender for the Hougang Avenue 2 site closes on May 20, while that for the Upper Serangoon Road/Pheng Geck Avenue plot closes on June 2.
Source : Business Times – 20 Apr 2010
TWO more 99-year leasehold residential plots were launched for sale by the government yesterday – one at Upper Serangoon Road from the confirmed list and the other at Hougang Avenue 2 from the reserve list.
The Hougang Avenue 2 site was triggered by a developer who agreed to bid at least $109.9 million for it, which works out to $241 per square foot per plot ratio (psf ppr), the Urban Redevelopment Authority said on April 7.
Analysts said then that the top bid for the site could come in at $310-350 psf ppr once the tender is launched.
The second site, between Upper Serangoon Road and Pheng Geck Avenue, is being launched in line with the schedule announced for the first-half 2010 government land sales (GLS) programme.
The site has a maximum gross floor area of 187,313 sq ft. Analysts say that it could fetch $450-560 psf ppr, which works out to a land cost of $84-105 million.
The site can be developed into a part low-rise (up to five-storeys) and part mid-rise (around 18 storeys) condominium comprising at least 150 units, said Li Hiaw Ho, executive director of CBRE Research.
‘It will be popular with home buyers and developers because of its location and proximity to an MRT station,’ Mr Li said. ‘As developers are still interested in acquiring sites, we expect it to be able to attract about 10 bids.’
Chua Chor Hoon, head of DTZ’s South-east Asia research team, said: ‘The successful tenderer is likely to build mainly small units on the site to capitalise on its proximity to the MRT. Investors would be attracted to buy them for leasing.’
Recent sub-sales at 28 Woodsville and 8@Woodleigh ranged from $884 psf to $905 psf, she said.
Eight major GLS residential sites, including an executive condominium site, will be sold between now and June 2010. In addition, two tenders set to be launched soon could close by end-June.
Analysts say that this is the highest concentration of GLS development land parcels in different locations offered for sale within a four-month period since the reserve list system was introduced in 2001.
‘The jury is still out on whether these 10 land tenders can continue to attract bullish bids or whether developers experience fatigue,’ said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. ‘If the highest bids in subsequent tenders display a declining pattern, the government may have achieved the first step towards moderating private home prices by using supply-side measures.’
The tender for the Hougang Avenue 2 site closes on May 20, while that for the Upper Serangoon Road/Pheng Geck Avenue plot closes on June 2.
Source : Business Times – 20 Apr 2010
Punggol gets two new HDB projects
ANOTHER 1,429 flats will be up for grabs in fast-developing Punggol after the HDB launched two new build-to-order (BTO) projects yesterday.
The developments – Punggol Emerald and Punggol Waves – will deliver 188 studio apartments, 201 three-room units, 609 four-room units and 431 five-room units to eager home buyers.
Yesterday’s launches are part of a broader HDB plan to launch 12,000 flats in the first three quarters of this year amid strong buyer demand. In the first four months of the year, 5,082 flats have been offered. A further 1,100 BTO units will be launched in Yishun and Jurong West next month.
More future launches have been earmarked for estates such as Bukit Panjang, Sengkang and Woodlands. Construction of BTO projects is triggered once a certain level of sales has been achieved.
Punggol Emerald – located at the junction of Punggol Way and Punggol Central – will boast 188 studio apartments, 96 three-roomers, 350 four-roomers and 222 five-roomers.
Punggol Waves, located in Punggol Walk and south of the future Punggol Town Centre, will consist of 105 three-room flats, 259 four-room flats and 209 five-room flats.
Three-roomers of 65 sq m area at Punggol Emerald are priced at $166,000 to $200,000 while those at Punggol Waves will go for $150,000 to $186,000.
Four-room flats of 90 sq m area in Punggol Emerald are going for $262,000 to $323,000 while those at Punggol Waves will cost $243,000 to $301,000.
Five-roomers of 110 sq m area will cost between $333,000 and $403,000 at Punggol Emerald and between $330,000 and $385,000 at Punggol Waves.
Studio apartments at Punggol Emerald ranging from 35 to 45 sq m will cost $73,000 to $102,000.
Both developments will incorporate eco-friendly features to achieve energy efficiency, environmental protection and other green features, such as a secondary roof system to reduce heat, as part of plans to develop Punggol as an eco-town, HDB said.
It added that the BTO supply will also be supplemented by flats under the Design, Build and Sell Scheme, with the tender of a Yishun site closing on May 18 expected to yield about 700 units.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said both projects will probably be oversubscribed, with demand among home buyers still strong.
‘Although it is not as popular as the mature estates, Punggol as a new town is growing in popularity.’ He added, however, that Punggol Waves was next to the Tampines Expressway and might therefore attract a lower subscription rate than Punggol Emerald.
Applications for the new BTO flats can be made online at www.hdb.gov.sg until May 3.
Source : Straits Times – 21 Apr 2010
The developments – Punggol Emerald and Punggol Waves – will deliver 188 studio apartments, 201 three-room units, 609 four-room units and 431 five-room units to eager home buyers.
Yesterday’s launches are part of a broader HDB plan to launch 12,000 flats in the first three quarters of this year amid strong buyer demand. In the first four months of the year, 5,082 flats have been offered. A further 1,100 BTO units will be launched in Yishun and Jurong West next month.
More future launches have been earmarked for estates such as Bukit Panjang, Sengkang and Woodlands. Construction of BTO projects is triggered once a certain level of sales has been achieved.
Punggol Emerald – located at the junction of Punggol Way and Punggol Central – will boast 188 studio apartments, 96 three-roomers, 350 four-roomers and 222 five-roomers.
Punggol Waves, located in Punggol Walk and south of the future Punggol Town Centre, will consist of 105 three-room flats, 259 four-room flats and 209 five-room flats.
Three-roomers of 65 sq m area at Punggol Emerald are priced at $166,000 to $200,000 while those at Punggol Waves will go for $150,000 to $186,000.
Four-room flats of 90 sq m area in Punggol Emerald are going for $262,000 to $323,000 while those at Punggol Waves will cost $243,000 to $301,000.
Five-roomers of 110 sq m area will cost between $333,000 and $403,000 at Punggol Emerald and between $330,000 and $385,000 at Punggol Waves.
Studio apartments at Punggol Emerald ranging from 35 to 45 sq m will cost $73,000 to $102,000.
Both developments will incorporate eco-friendly features to achieve energy efficiency, environmental protection and other green features, such as a secondary roof system to reduce heat, as part of plans to develop Punggol as an eco-town, HDB said.
It added that the BTO supply will also be supplemented by flats under the Design, Build and Sell Scheme, with the tender of a Yishun site closing on May 18 expected to yield about 700 units.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said both projects will probably be oversubscribed, with demand among home buyers still strong.
‘Although it is not as popular as the mature estates, Punggol as a new town is growing in popularity.’ He added, however, that Punggol Waves was next to the Tampines Expressway and might therefore attract a lower subscription rate than Punggol Emerald.
Applications for the new BTO flats can be made online at www.hdb.gov.sg until May 3.
Source : Straits Times – 21 Apr 2010
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