SINGAPORE SKYSCRAPERS

The Cosmopolitan (TOP soon!)

2007-07-06T14:48:00.001+08:00

THE COSMOPOLITAN, the latest creation from the developers of Ardmore Park and Grange Residences.

This freehold landmark development is just minutes away from Orchard Road, located in the prime River Valley district.

From the outstanding architecture with 7-storey high lobbies to give you a commanding cityscape view, to interior space and finishes that optimise your lifestyle, get ready to luxuriate in the high life.....

Developer: Wheelock Properties

Tenure: Freehold

Expected TOP: 31 March 2009 (probably Sep 2007)

Expected Date of Legal Completion: 31 March 2012

Facilities: 40m Lap Pool, Jacuzzi, Spa Deck, Sun Deck, BBQ Pits, Reflexology Path, Children's Pool, Children's Playground, Resident's Lounge, Reading Santuary, Indoor Gym.

Various units available...

For enquiries, please call Jazleen Leom @ (+65) 91514003 or email to jazleen.leom@gmail.com

Estilo @ Wilkie Road (Launching very soon!!)

2007-07-06T14:48:00.000+08:00

Estilo @ Wilkie:

- Near town/ SMU/ Nanyang Academy
- Wilkie Edge ( Capital Land's New shopping Mall)
- Short Distance to Town.
- The rising prices in 8 @ Mt Sophia /Parc Emily
- Potential Growth and good rental returns in this region
- 1st project along Wilkie.... 4 more projects coming up. One of which will be CDL's
- Away from the main road, very quiet estate.

Tenure: Freehold
Total Units: 55
1brm/2brm/3brm.
Apartment status... swimming pool/gym/bbq pit

To register your interest, please call Jazleen Leom @ (+65) 91514003 or email to jazleen.leom@gmail.com

Park Infinia @ Wee Nam

2007-07-06T11:53:00.000+08:00

Development comprising 2 blocks of 30-sty & 2 blocks of 31-sty residential buildings with full condominium facilities and basement carpark.

Park Infinia at Wee Nam is located at the junction of Wee Nam Road and Keng Lee Road, and is close to the Newton MRT station and the Orchard Road shopping belt. The development will comprise 486 apartments with full condominium facilities that will include a swimming pool, tennis courts and a gymnasium. The apartments will come in 1- to 4-bedroom units and exclusive penthouses, with floor areas ranging from 520 to 3,300 sf. When completed, Park Infinia at Wee Nam will be one of the largest condominium developments in the Newton area.

Developer: Keppel Land Realty Pte Ltd

Location: Keng Lee/Lincoln/Wee Nam/Suffolk Road

Tenure: Freehold

Expected TOP Date: 30 June 2009 (estimated early 2008)

Expected Legal Completion: Estimated to be 30 June 2012

Site Area: 233,937 sq ft

Plot Ratio: 2.8

Total Units: 486

Total Carpark Lots: 508

Facilities: Clubhouse with function room, Dance Studio, Music Room, A/V Room, Lounge, Changing Room, Gymnasium, Tennis Courts, Jungle Spa, Fitness Corner, Playground, Open Lawn, Bio Pond, Basketball Court (Half), "Volcano Island", BBQ Pavilion, Floating Pavilion

Units Available:

1 bdrm w/o HS - 570 sq ft (1 unit)

1 bdrm + HS - 560 sq ft (29 units)

2 bdrm w/o HS - 980 to 1001 sq ft (53 units)

2 bdrm + HS - 850 to 969 sq ft (89 units)

2 bdrm + study w/o HS - 1130 sq ft (27 units)

3 bdrm + utility w/o HS - 1410 to 1464 sq ft (162 units)

3 bdrm +HS - 1335 to 1582 sq ft (59 units)

4 bdrm + utility w/o HS - 1668 to 1690 sq ft (27 units)

4 bdrm + HS - 2002 sq ft (29 units)

Penthouses - 1916 to 3315 sq ft (10 units)

For enquiries, please call Jazleen Leom @ (+65) 91514003 or email to jazleen.leom@gmail.com

Business Times: East Coast site up for sale

2007-07-03T10:37:00.005+08:00

July 3, 2007

East Coast site up for sale

AN eight-unit freehold residential site in East Coast has been put up for collective sale with an asking price of $20 million.

The price for the land at 16-22A Pulasan Road, measuring 21,334 square feet, works out to $548 per sq ft per plot ratio, and includes a development charge of $56,000, said marketing agent Newman & Goh yesterday.

'Together with potential alienation of adjoining state lands totalling 6,826 sq ft, it can be built up to a gross floor area ceiling of 39,424 sq ft,' said Newman. The site can be redeveloped into about 36 units of boutique apartments averaging 1,100 sq ft per unit for an average price $1,050 psf, said Newman. The sale has received full approval from the owners.

The tender closes on July 20 at 3pm.

Straits Times: Several launches achieve prices close to records

2007-07-03T10:37:00.004+08:00

July 3, 2007

Several launches achieve prices close to records

THE roaring market shows no signs of easing, going by recent project launches. New developments around the country have started to reach prices not seen since the property peak of 1996.

Units in Duchess Residences in Bukit Timah, for instance, have crossed the $2,000 per sq ft (psf) mark - the first time homes in the area have done so in almost a decade. More than 80 per cent of the project's 120 units have been sold since they were put up for sale last week, with all the smaller three- and four-bedroom units sold, said developer UOL Group.

Singaporeans were the main buyers but 20 per cent of the homes were sold to buyers from Hong Kong, Malaysia and Indonesia, said UOL, adding that many of them were from the finance industry.

Developer Wing Tai, meanwhile, has quietly sold all 50 units it has released in Helios Residences in Cairnhill. The Straits Times understands that the units were priced at around $3,000 psf - also a benchmark for the area. Prices for two-bedroom apartments are believed to start from $3.51 million. Wing Tai said it would release the rest of the project's 140 units soon, although it did not specify a date.

But the central areas are not the only ones doing well. In the relatively quieter Kembangan, a 32-unit boutique project called D'Oasia had half its units sold for as much as $1,003 psf, said Savills Singapore, which is marketing the project at Lorong Melayu.

Despite prices in the area hovering around $700 psf or lower for several years, D'Oasia developer Monfort Land has managed to sell 15 units of the freehold project at an average of $950 psf. And strata-bungalow development Dunsfold 18 has enjoyed a good take-up in Lorong Chuan. Since mid-May, 10 of its 18 bungalows have been sold at prices ranging from $3.08 million to $3.56 million each, or an average price of $770 psf.

Straits Times: Prices in Bedok, West Coast, Thomson lagging behind market

2007-07-03T10:37:00.003+08:00

July 3, 2007

Prices in Bedok, West Coast, Thomson lagging behind market
By Fiona Chan, Property Reporter

HOME seekers need not despair at the rapid rise in home prices shown by the latest estimates released yesterday. They can turn to a number of residential areas and developments that are still lagging behind the market, with one area even falling in price, according to a study by Savills Singapore.

The property firm noted that in areas such as Bedok and the West Coast, average home prices have risen by less than 5 per cent over the last 12 months. In contrast, home prices across Singapore have surged by about 20.6 per cent in the same period, boosted by a 7.9 per cent jump in the last three months alone.

For suburban areas as a whole, home prices have gone up by slightly more than 11 per cent over the last year, according to figures released by the Urban Redevelopment Authority yesterday.

But Savills data shows that in Bedok, home prices inched up only 4.9 per cent in the period. In the West Coast, the increase was about 4.8 per cent. And in Upper Thomson, prices in the general area actually fell by 4.1 per cent, said Savills.

'There hasn't been much attention paid to these areas because there haven't been many new launches there,' said Mr Ku Swee Yong, director of marketing and business development at Savills Singapore.

Also, in areas such as Paya Lebar, home sales and prices have been affected because of the Circle Line MRT construction that has been going on for a few years, he pointed out. According to Savills, home prices in Paya Lebar have gone up by only about 7.5 per cent in the last year. 'If HDB flats can go to the $700,000 type levels, units in these areas are also good buys,' said Mr Ku. In a market where values of popular condominiums rise by the week, the slow price climb of developments in these areas serves as a reminder that there is no need to panic, he added.

'Many homebuyers don't bother to do their homework,' he said. 'If they haven't heard of a development, they just write it off even though it might be of good value.' Many of these more affordable projects are fairly new. Some are even freehold but have suffered from a lack of publicity. There are even developments in these and other areas that have fallen in price over the last 12 months. In the Upper Thomson area, Savills singled out Bullion Park in Lentor Loop, where average prices have slipped by 1 per cent from $520 per sq ft a year ago to $515 psf now. The Linear in Upper Bukit Timah has also seen average prices dip by 0.7 per cent in the same period, said Savills. Prices were about $564 psf a year ago but are $560 psf now.

Business Times: URA signals caution as rise in home prices spreads

2007-07-03T10:37:00.002+08:00

July 3, 2007

URA signals caution as rise in home prices spreads
Q2 private home prices surge 7.9%, with gains reaching mass market and HDB resale segments
By KALPANA RASHIWALA

(SINGAPORE) Official flash estimates show the rise in home prices spreading beyond the high-end to other parts of the market including private condos in the city fringe, mass market areas and even to the HDB resale market - prompting some words of caution from the Urban Redevelopment Authority (URA).

Market watchers say the trend is being driven by people who have sold their prime district homes through en bloc sales finding replacement properties further from prime locations.

The URA price index for private homes rose 7.9 per cent in the second quarter over Q1 - the biggest quarter-on-quarter gain since Q2 1999. The latest flash estimate shows a year-on-year gain of 20.6 per cent for Singapore as a whole. The biggest price gains were not in luxury homes, as reflected in URA's Core Central Region, covering districts 9, 10 and 11, Downtown Core (including Marina Bay), and Sentosa. While non-landed private home prices in this region increased by 7.6 per cent in Q2 over Q1, the Rest of Central Region (which covers places like Bukit Merah, Queenstown, Geylang, Toa Payoh and Katong) posted an even bigger 7.9 per cent gain over the same period.

Prices in the Outside Central Region - which covers suburban mass-market locations like Woodlands, Clementi, Jurong, Hougang, Tampines and Bedok - were 6.5 per cent higher in Q2 than in the first three months of the year.

The Housing & Development Board's resale flat price index registered a 2.9 per cent increase in Q2 over Q1, going by the board's latest flash estimate. This shows prices for public housing rising faster than before, as there was a quarterly gain of just 1.3 per cent in the index in Q1.

In a departure from recent tradition, the URA yesterday advised potential home buyers that they should take into account that there is 'sufficient pipeline supply of private housing, as well as the potential supply from Government Land Sales sites, when deciding to make a property purchase'. The URA reminded people that the Government will ensure there are sufficient homes to meet demand, saying that it will continue to monitor the market closely.

DTZ Debenham Tie Leung executive director Ong Choon Fah said: 'There has been a sense of urgency for some people to buy a home when they see the market going up. Obviously the Government is a little bit concerned, but this market is driven by fear and greed. Fear of missing the boat, and greed to make more. These are very emotional things, so people may not act rationally.'

Another property consultancy, CB Richard Ellis, noted that the URA's overall price index for private homes has increased 13.1 per cent in the first six months of this year. It predicts a full-year gain of 20 to 25 per cent for the whole of this year. ERA Singapore similarly forecasts an increase of 20 per cent or more for 2007. For the HDB resale flat price index, ERA predicts an increase for the whole year of about 8 to 10 per cent. PropNex also reckons the gain will be about 10 per cent.

Market watchers see yesterday's data as evidence that the recovery in the high-end residential sector is at last filtering through to other parts of the market.

Knight Frank managing director Tan Tiong Cheng says the key driver of this trend is the growing number of owners of prime district homes who went through en bloc sales and are priced out of the most expensive districts. 'They are instead forced to find replacement homes outside these locations, starting with city-fringe locations and even spreading to the suburbs,' Mr Tan said.

In some cases, especially en bloc sales of privatised HUDC estates, the replacement homes may even be HDB resale flats in Queenstown, Bukit Merah and other areas, Mr Tan reckons.

ERA Singapore assistant vice-president Eugene Lim reckons that fear among home buyers that they may miss the boat and lose out on good property buys is also fuelling the current buying frenzy.

'Everyone seems to want a piece of the action. Those who can't afford the high prices in prime locations are moving outwards,' Mr Lim added.

PropNex CEO Mohamed Ismail reckons the increases in the price indices for the Rest of Central Region and Outside Central Region are due to many buyers previously sitting on the fence deciding to buy out of fear that prices may escalate further.

CBRE executive director Li Hiaw Ho highlighted projects in several locations that saw new price levels being achieved in Q2, including Kallang (The Riverine By The Park, $1,400-1,500 psf), Novena (Novelis@Novena, $1,400 psf) and suburban areas (Botannia in the West Coast area, Casa Merah near Tanah Merah MRT Station, Northwood in Sembawang, and Parc Mondrian at Woodleigh Close, in the $600 to $720 psf range).

PropNex's Mr Mohamed warned that the 7.9 per cent hike in the private home price index for Q2 is 'bullish and if the growth continues at this pace, it is not healthy for the property market in the long run'.

Business Times: Several areas still buck trend of rising home prices

2007-07-03T10:37:00.001+08:00

July 3, 2007

Several areas still buck trend of rising home prices
Home prices in north, west remained flat or dropped: Savills
By UMA SHANKARI

(SINGAPORE) For property prices, this could be a tale of two cities. While housing prices in many parts of Singapore have shot up over the past two years, there are some places where they have only crept up, and others where they have even dropped.

While private home prices in general have climbed 27.9 per cent from the Q2 2005 to Q2 of this year, official estimates released yesterday showed, in some parts of the island the price increase has been marginal, or even negative.

Partly because of this, a range of units in projects across the island are still available for under $500 per square foot (psf).

Data from property firm Savills Singapore show that while prices for the rest of the island have climbed by as much as 40 per cent over the past 24 months - with home prices in the prime districts of 9, 10 and 11 climbing by over 50 per cent - housing prices in the north, north-east and west of the country have either remained flat, or dropped.

'Home prices in the north, north-east and west have dropped about 10 per cent on average over the past two years,' said Ku Swee Yong, director of marketing and business development at Savills Singapore.

Savills identified Districts 23, 25 and 27 - Bukit Batok, Choa Chu Kang, Hillview Avenue, Upper Bukit Timah, Admiralty, Woodlands, Sembawang and Yishun - as those that have seen price drops.

At Euphony Gardens at Jalan Mata Ayer, prices have dropped from $404 psf in the second quarter of 2005 to $362 psf in the second quarter of this year - a fall of 10.4 per cent. At Palm Gardens at Hong San Walk, the price has fallen by 4.6 per cent to $373 psf, from $391 psf two years ago. The supply of private homes in these areas still outstrips demand for them, Mr Ku said. 'Demand has not spilled over far enough from the core central region into these areas,' he said. It is then not surprising that a whole lot of projects going for under $500 psf can be found in these districts.

The data from Savills show that there are 65 properties - 14 freehold, 35 with 99-year leases and 16 executive condominiums - where units have transacted at under $500 psf over the past few months. Nineteen of these 65 projects are in Districts 23, 25 or 27.

The relatively low going rates means that buying a private condo in these projects might even be cheaper than picking up a HDB flat in a popular area. Last month, a 1,240 sq ft HDB flat at Kim Tian Place went for $720,000 - setting a record for five-room flats.

'At less than $500 psf, a 1,200 sq ft unit will sell for less than $600,000,' said Mr Ku. 'There are a lot of private units that are not as expensive as top-tier HDB flats.'

Mr Ku however pointed out that the comparison does not hold true when comparing a private condo and a HDB flat located in the same area, when the price fetched by the condo will always be higher.

Over the past two years, prices in the core central region of Singapore - which includes Districts 9, 10, 11, Marina Bay and Sentosa - have climbed much faster than in the rest of the island. The latest estimates by the Urban Redevelopment Authority put the increase of homes prices over the second quarter of this year at 7.6 per cent in the core central region, and a smaller 6.5 per cent in the 'outside central region' category.

As prices in the outlying areas of Singapore recover, property prices in Districts 23, 25 and 27 should see better growth, analysts said. And in line with this, the number of properties selling for under $500 psf can also be expected to drop.

Business Times: Govt to ensure sufficient supply of homes: URA

2007-07-03T10:37:00.000+08:00

July 3, 2007

Govt to ensure sufficient supply of homes: URA
By KALPANA RASHIWALA

(SINGAPORE) In a departure from tradition in recent years, the Urban Redevelopment Authority (URA) yesterday commented on the state of the private residential market when it released the latest price indices.

It also seemed to have some advice for potential home buyers who may be carried away by the current market frenzy.

The departure is seen in industry circles as reflecting official concern about the run-up in private residential prices which, as yesterday's flash estimates show, is no longer confined to just the luxury segment but has spread to other segments as well.

'The government will continue to monitor the market very closely,' URA said yesterday. Its subsequent elaboration dwelt on measures to ensure there is sufficient supply of homes, without even a hint of any possible measures to tackle demand, or subsales, market watchers noted.

URA said: 'The government will ensure that there will be sufficient supply of residential space to meet demand. The GLS (Government Land Sales) Programme for the 2nd half of 2007, which was just announced recently, comprises 20 residential sites and five other commercial and residential, and white sites which have a potential supply of about 8,000 units of private housing and executive condominium (EC) housing.'

The government has also re-introduced an EC site to give an additional housing option to Singaporeans. 'If necessary, the government will make available even more sites for private residential development through the GLS Programme next year,' URA said.

The authority reiterated that besides new GLS sites, there are some 42,200 new private homes slated for completion from H2 2007 to 2010. About 22,700 of these units have not been sold by developers yet. 'Prospective home-buyers should take into consideration the sufficient pipeline supply of private housing, as well as the potential supply from GLS sites, when deciding to make a property purchase,' URA said.

In its release, URA also gave its take on the rise in private home prices in recent quarters, which it said is 'in line with greater economic growth and rising confidence'.

'Private housing prices are now increasing at a faster pace because of good economic prospects going forward and the increasing attractiveness of Singapore as a global city,' it added.

Soleil @ Sinaran (Novena)

2007-06-27T11:45:00.000+08:00

Two iconic 40-storey towers located next to Novena Square Shopping Centre & Novena MRT.

live within proximity to food/shopping/entertainment outlets
minutes to Orchard/CBD
a lifestyle package offered with luxurious furnishing & fittings

Developer: Riverside Investments Pte Ltd (Frasers Centrepoint)

Tenure: 99 years

Expected TOP: 30th Sep 2012 (estimated)

Expected Legal Completion: 30th Sep 2015 (estimated)

Site Area: Approx 134,160 sq ft

Total Units: 427

Facilities: Recreational pool, 50m lap pool, Children's play area, Spa pavilion, Entertainment pavilion, Recreational tennis court, Reflective pool, Function room, Gym/Changing room, Outdoor/fitness areas.

Units Available:

1 bedroom - 504 to 579sf

2 bedroom - 929 to 958sf (109 units)

2 bedroom + study - 1110sf (60 units)

2 bedroom loft - 1370sf includes void (32 units)

3 bedroom - 1467sf (64 units)

4 bedroom - 1727sf (64 units)

5 bedroom penthouse - 4972 to 5262sf (4 units)

To register your interest, please call Jazleen Leom @ (+65) 91514003 or email to jazleen.leom@gmail.com

Straits Times: Seletar gets ready for makeover as aerospace hub

2007-06-27T11:13:00.010+08:00

June 27, 2007

Seletar gets ready for makeover as aerospace hub
Multimillion- dollar plan unveiled; tranquil nature of area to be retained
By Karamjit Kaur, Aviation Correspondent

THE blueprint for the multi-million dollar makeover of the sleepy surroundings of Seletar Airport into a major aerospace hub was unveiled yesterday. The new Seletar Aerospace Park will have a bigger airport and a longer runway, to handle larger aircraft.

New roads, better infrastructure and more than 100 football fields of space will also be available to the cluster of companies that design and manufacture aircraft components and small jets, as well as run training schools.

The park will be developed at a cost of more than $60 million. When completed by 2018, it will create 10,000 jobs and help double the output of Singapore's fast-growing aerospace sector, from last year's record $6.3 billion. The need for the park was clear, said Mr Leong Hong Yew, JTC Corporation' s deputy director for industrial development (East).

Aerospace activities are now carried out in Loyang and Changi North, but space is fast running out there, he explained. In finalising the masterplan for Seletar, however, his team retained, as much as possible, the idyllic, tranquil nature of the area with its more than 300 black-and-white colonial bungalows, old trees and open fields.

He said: 'This is not going to be another run-of-the-mill industrial park.' Of the 378 black-and-white bungalows in the area, 204 will be retained. Some will be converted into aerospace training schools and food and beverage outlets, while 131 units will be set aside for residential use. He said: 'The houses will be retained and conserved so the ambience of the environment is maintained.' For the same reason, more than 30 distinctive trees will not be cut down, he said.

The plans have been received well by industry, with one-fifth of the 120ha set aside for commercial use already booked. The first few tenants are expected to move in to their new premises in October, said Mr Leong. Among the front runners are Singapore Technologies Aerospace and Jet Aviation, both with plans to expand their current facilities at Seletar. For Jet Aviation, the location and timing made sense.

Vice-president and general manager for Asia, Mr Michael Sattler, said: 'Singapore is a very good location and offers many advantages. The upcoming integrated resorts are also expected to attract more corporate and business jets here.' Residents in the area were also briefed on the plans last night.

For some families there was good news, as they were told their homes were not affected and they will have the option to extend their current leases which expire at the end of next year, for a further two years. After that, it will be up to the Singapore Land Authority which owns the land, to decide on future plans for the area. The rest will have to move out when their leases expire next year.

There was some excitement at Seletar Base Golf Course where the briefing was held, when a few residents including children, turned up with signs protesting against the plans. But it ended without incident. Sales manager Jacqueline Tan, 38, who will have to move out of Seletar after living there for three years, will miss the greenery and close neighbours. She said: 'This place is unique... You can't find a place like this in Singapore. It's also a very close-knit community here. Everyone knows everyone.' It was a reponse Mr Leong had anticipated. 'We tried our best to balance the needs of industry and community, and at the same time attempted to integrate the surroundings of the area into the plan... But there will be some who will not be happy,' he said. __._,_.___

Straits Times: $128m en-bloc sale windfall for Hakka clan

2007-06-27T11:13:00.009+08:00

June 27, 2007

$128m en-bloc sale windfall for Hakka clan
By Lee Chee Keng

WHILE the recent en-bloc property boom is making a million or two each for home owners, one of Singapore's major Hakka clan associations has really hit the jackpot. The Char Yong (Dabu) Association will pocket a cool $128 million from the sale of the 93,300 sq ft Char Yong Gardens condominium in the Cairnhill area.

The association - which owned 36 of the 106 units in the condominium sold to CapitaLand recently for $420 million - is now looking at how to best use the windfall. Discussions have started on enriching clan activities, developing its youth wing, providing better care for old or needy members, as well as expanding its charity work. The need for these talks nearly did not arise as some clan members had opposed the sale, despite the support of the 41-strong management council, said association president Lang Chin Ngau, 59.

If the dissenters had prevailed, the sale would have failed as the clan's 36 units gave it more than the 20 per cent of votes needed to scrap the deal. The opponents had noted that the flats sat on ancestral land and wanted it to stay that way. They also said a tree planted on the grounds in 1963 by Mr Lee Kuan Yew, now the Minister Mentor, should not be disturbed.

The issue was put to a vote in a special general meeting on Aug 27 last year. Of the 209 members who showed up, 168 voted for the sale and 23 opposed it. The other votes were declared void.

The Char Yong (Dabu) Association, founded in 1857, now has more than 2,000 members. It bought the land in 1947 to house its office and the Khee Fatt School founded in 1906. But pupil numbers kept dropping and the school was handed over to the Ministry of Education in 1985.

The same year, the clan struck a deal with DBS Land and Char Yong Gardens was built in 1991. The clan's 36 units were managed by The Ascott Group as service apartments, earning $4,000 a month each in 1995 - but rents slid to $1,500 in 2005. Talks to sell the property began the next year.

Although the deal has now been sealed, the clan's link to the land will not be completely lost

Said Mr Lang: 'CapitaLand will give us priority to buy a few units in the development before it is open to the public.' The tree planted by MM Lee will stay at the site or be relocated. The focus now is on how to best use the $128 million, which the clan will get in 11/2 years' time. Its constitution dictates that one-third will go to the association for its operations, activities and charity work. The rest will go to the Char Yong (Dabu) Foundation for educational and cultural work.

Every year, the association hands out $250,000 in scholarships to pupils from Qifa Primary and Da Qiao Primary schools, and to members' children. It also donates to charitable and cultural groups. It recently gave $300,000 to the Confucius Institute Fund, making it the largest donor to the fund set up this year to establish a World Chinese Literature Award, and to fund the institute's research projects and other events.

Mr Lang said plans to use and invest the money from the sale will be discussed thoroughly at management council and general meetings. The association has three other properties which it rents out

Straits Times: Time to ease curbs on foreign buying of landed homes: Report

2007-06-27T11:13:00.008+08:00

June 27, 2007

Time to ease curbs on foreign buying of landed homes: Report

SINGAPORE'S increasing popularity with foreigners could signal that it is time to relax restrictions on overseas ownership of landed properties, according to a Goldman Sachs report.

The giant investment bank said in a research note that if curbs are relaxed across the board, it could spur further foreign buying of private properties. It could also boost the residential property market by having 'positive spillover from rising landed property prices to condominiums and apartments'.

The United States bank said the average price of a top-end bungalow is 35 per cent lower than that of a comparable condominium, which sells for about $26.3 million.

'We think this price gap can narrow to parity or very close to it should the restrictions on foreign ownership of landed properties be relaxed,' it said.

Under the Residential Property Act, foreigners and permanent residents are forbidden from buying landed property without government approval. And a foreigner who does win approval can own only one landed property at a time and they must occupy the home, not rent it out. If the rules are relaxed, developers with land banks for landed projects would benefit, the bank said.

Meanwhile, all residential developers could also 'gain from even greater foreign buying interest given the positive message such a move would send'. A land bank is a stock of land with planning permission already granted but where development has yet to occur.

Goldman reasoned that removing such curbs would not hurt the national objective 'of giving Singaporeans a stake in the country by being able to buy and own residential properties at affordable prices'. It said the possibility that the Government would loosen its reins on the land restrictions is higher now.

Goldman cited its discussions with developers which have affirmed its view of foreign interest in landed property. The bank also referred to a change in the tone of government policy which has become firmly pro-immigration, it said.

'We think relaxing restrictions on foreigners buying landed property would accelerate Singapore's efforts to attract foreign talent,' Goldman said, though it acknowledged that for now, there is 'no certainty of any policy change'.

Goldman has estimated that about 2,800 landed homes with written permission for development will be let out into the market over the next few years.

Straits Times: Hong Leong in $77m tie-up to open budget hotels

2007-06-27T11:13:00.006+08:00

June 27, 2007

Hong Leong in $77m tie-up to open budget hotels
It partners AirAsia founders, Dubai fund to run hotels in region
By Joyce Teo, Property Correspondent

THE Hong Leong Group is linking up with a Dubai investment fund and Tune Hotels.Com to open around 30 budget hotels across South-east Asia, including Singapore.

Tune Hotels is a no-frills chain, created by AirAsia's founders Tony Fernandes and Kamarudin Meranun, offering rooms from RM9.99 (S$4.44) a night. The first hotel opened in Kuala Lumpur in April. Istithmar PJSC, the investment arm of the Dubai government, Hong Leong and the founding hotel company yesterday announced their US$50 million (S$77 million) joint venture. The move will allow the new property investment fund, called Tune Hospitality Investments, to tap into the tourism boom generated by the growing popularity of low-cost carriers such as AirAsia. 'The hotels sector is crying out for clean, safe, branded budget accommodation in major cities,' said Istithmar Real Estate's managing director, Mr Richard Johnson. Mr Dennis Melka, director of Tune Hotels.Com, said the joint- venture partners are talking to a few parties on a possible site in Singapore, where they see a strong market but challenges from rising land costs.

The chain's main focus for now is Malaysia and Thailand, though hotels are also being planned for Indonesia and the Philippines. Tune Hotels.Com is already developing six sites - in KL city and the airport, Penang, Kota Kinabalu, Johor Baru and Kuching. It will roll out another 30 hotels, together with its two new partners, over the next 24 months. Average room rates hover around US$15 and up, although advance booking rates can be as low as US$3.

Istithmar and Hong Leong, through its unit City e-Solutions, will each hold 40 per cent, with Tune Hotels.Com owning the rest. The partners aim to exit in about four to six years' time, possibly earlier. Options include an initial public offering or a sale to a related or third party such as CDL Hospitality Trusts, said Mr Vincent Yeo, chief executive of City e-Solutions.

Business Times: Office rents in S'pore to outstrip HK's by end-2008

2007-06-27T11:13:00.005+08:00

June 27, 2007

Office rents in S'pore to outstrip HK's by end-2008
Govt may move some public organisations out of CBD to free up space for private sector: sources
By UMA SHANKARI

(SINGAPORE) Office rents in Singapore will be higher than those in Hong Kong by the end of next year as supply here remains tight, a property firm said in a study released yesterday.

And industry sources said the overall rise in prime office rents may be serious enough for the government to see if it is worth moving some public organisations out of prime space in the Central Business District (CBD) so it can be freed for the private sector.

The move would also ease the upward pressure on rents and help Singapore stay competitive, the sources added.

Office rents in Singapore have been climbing at a fast clip and are set to overtake those in Hong Kong in about 18 months, according to property firm Savills.

Simon Smith, Savills' senior director for regional research and consultancy, expects the average rent in Singapore's 'core' areas - Raffles Place, City Hall, the Marina area, Shenton Way, Robinson Road, Tanjong Pagar and Orchard - to hit US$7.89 in the fourth quarter of 2008, up from US$5.10 in Q1 this year.

Average rents in Hong Kong's core locations, on the other hand, are expected to drop from US$6.61 in Q1 2007 to US$6.15 in Q4 2008. Savills defines Hong Kong's core areas as its CBD, Wan Chai and Causeway Bay and Tsim Sha Tsui.

Office rents in Singapore's non-core locations are also expected to be higher than those in non-core areas of Hong Kong.

Mr Smith said the supply of office space in Singapore is expected to be tight until at least 2009, whereas in Hong Kong about 4 million sq ft of space will come on stream next year.

'Singapore will not have any more major new Grade A office space this year,' he said. 'And all the activity driving up the demand for space - such as IPOs, M&A activities and private wealth management activities - are expected to continue growing.'

Demand for office space became more broad-based in the first half of 2007 after having been dominated by the financial and banking sector in the early part of the year, says property firm CB Richard Ellis (CBRE).

This has also put pressure on rents, it says. 'Tenants from the shipping, energy, oil-trading, law and IT sectors have been taking up office space in the core CBD area of Raffles Place, Marina Bay and Marina Centre. There are precious few office options for large occupiers over the next couple of years.

Market watchers say having higher office rents than Hong Kong could dent Singapore's competitiveness when it comes to drawing international firms, but point out that the overall cost of doing business here is still likely to be cheaper than in Hong Kong.

'When you consider overall costs, such as residential and transportation, Singapore is still cheaper than Hong Kong,' said Mr Smith.

The government is also aware of the space crunch and is doing its best to ease the problem. Besides seeing whether some operations can be moved out of the CBD, in May, the authorities called a halt to all conversion of offices in the central area to curb depletion of existing stock.

'The government policy reaction is now in full swing and we expect will pay dividends in redressing the supply-demand imbalance in the medium to long-term,' said Moray Armstrong, executive director for office services at CBRE.

Business Times: Hor Kew expects turnaround with new devts

2007-06-27T11:13:00.004+08:00

June 27, 2007

Hor Kew expects turnaround with new devts'Turnkey projects' at East Coast Rd, Kallang Pudding
By CHARMIAN KOK

HOR Kew Corporation expects a turnaround for the company with the launch of two new property developments at 42 East Coast Road and 66 Kallang Pudding, it said yesterday.

This is in addition to One Oxley Rise, which the company developed as well. Hor Kew, a building construction group which has been in the red in previous years, expressed optimism for its new developments.

'These are turnkey projects for the company. In the past, we have mainly concentrated on construction projects. Now, Hor Kew will undergo a facelift and move on the next level of expanding our property development business,' said group financial controller Lau Choon Hoong. The company believes that it will be able to ride on the recent property boom and expects both new developments to do well. The increase in number of expatriates and immigrants, together with the recent integrated resort projects, will continue to sustain the property market for another two to three years, the company expects. The development at 42 East Coast Road is a 17-storey freehold project situated next to Paramount Shopping Centre and Paramount Hotel, which was recently up for sale at around $200 million. With a total saleable area of 64,200 sq ft, it will comprise a mix of apartments, duplex units, penthouses and commercial units. Hor Kew estimates that units might sell at around $1,500 per sq ft. The property will be launched later this year or early next year.

Mr Lau cites the properties' prime locations as one of the drawing factors. 66 Kallang Pudding, a high-tech industrial development, is in close proximity to Aljunied MRT and a 10-minute drive from the city.

Although Hor Kew intends to lease the 47,000 sq ft development, it is also open to selling its units. Estimated prices lie between $3.50 and $4 per square feet for rental and $550 to $600 per sq ft for sale. Construction is expected to start early next year. Although not available on the market yet, both properties already have 'a long list of potential buyers', according to Mr Lau.

One Oxley Rise, Hor Kew's other property development, has received 87 per cent of bookings, of which 81 per cent are secured sales. The average selling price now is $2,000 per sq ft, the company said.

Business Times: Simon Cheong pays $7m for bungalow: sources

2007-06-27T11:13:00.003+08:00

June 27, 2007

Simon Cheong pays $7m for bungalow: sources
By KALPANA RASHIWALA

SC Global Developments boss Simon Cheong yesterday bought a freehold bungalow at Garlick Avenue for $7 million at auction, BT understands.

The price for 70 Garlick Avenue works out to $769 psf, based on the 9,100 sq ft of land. Bidding opened at $6.8 million and the property drew three would-be buyers.

The property is within an area zoned for Good Class Bungalow (GCB) use although its plot size is significantly shy of the minimum 1,400 sq metres (about 15,069 sq ft) required for a GCB.

There is a renovated, single-storey detached house in fairly good condition on the site, which was put up for auction by its mortgagee bank. The auction was conducted at Amara Hotel yesterday by DTZ Debenham Tie Leung.

Three other properties also changed hands at the auction. One was a three-bedroom apartment on the sixth storey of the freehold Avalon development at Anderson Road, which was sold by its owner for $2.7 million or $1,707 psf based on its strata area of 1,582 sq ft. A freehold maisonette at 104A Owen Road, near Farrer Park MRT Station, sold for $811,000 or $457 psf based on its strata area of 1,776 sq ft. A single-storey, freehold terrace house at 27 Casuarina Road off Upper Thomson Road fetched $700,000 or $467 psf based on its land area of 1,500 sq ft. The Owen Road and Casuarina Road properties were mortgagee sales.

A three-bedroom apartment at the freehold Eunos Mansion at Jalan Eunos which had been put up for auction by its mortgagee bank was withdrawn from sale yesterday morning on speculation that a collective sale could be in the works at the estate, which could result in the unit fetching a higher price, BT understands.

Business Times: Watten Estate Condo up for en bloc sale

2007-06-27T11:13:00.002+08:00

June 27, 2007

Watten Estate Condo up for en bloc sale

WATTEN Estate Condominium at Shelford Road off Dunearn Rd has been put up for collective sale through an expression of interest exercise.

So far, owners with more than 70 per cent of share values, but short of the minimum 80 per cent required, have signed the collective sale agreement, at a price believed to be around $400 million. This works out to $1,297 per square foot of potential gross floor area inclusive of development charges. The 220,241 sq ft freehold site is zoned for residential use with a 1.4 plot ratio (ratio of maximum potential gross floor area to land area) and a five-storey maximum height. No development charge is payable, according to DTZ Debenham Tie Leung, which is marketing Watten Estate Condo. The site can be redeveloped into a new condo with about 200 units averaging 1,500 sq ft, market watchers reckon.

Currently, Watten Estate Condo has a total of 104 units comprising a block of apartments and four blocks of townhouses. Property tycoon Ng Teng Fong, who controls Far East Organization, is believed to own two units in the development. The expression of interest for Watten Estate Condo closes on July 20.

The property is near Raffles Girls' Primary School, Nanyang Primary School, Hwa Chong Institution and National Junior College. The Botanic Gardens is a short drive away.

Lippo Realty recently paid $1,280 psf per plot ratio for Aura Park at Holland Road, which is also near Botanic Gardens.

Business Times: Leng Beng sees rising hotel rates

2007-06-27T11:13:00.001+08:00

June 27, 2007

Leng Beng sees rising hotel rates

SINGAPORE'S hotel room rates may rise by 'quite a bit' as the island-state draws more tourists, said Kwek Leng Beng, chairman of City Developments Ltd, one of the country's biggest hotel operators.

The city will be short of about 3,000 hotel rooms, Mr Kwek said, referring to the government's sale of land sites for new hospitality developments. Mr Kwek, who spoke at a briefing in yesterday, wasn't more specific on the time frame for the hotel room shortage.

Singapore, prospective host to Formula One's first night Grand Prix and two casino-resorts that will help draw more convention delegates, may face a shortage of hotel rooms as the government expects the number of visitors to double to 17 million by 2015.

'The meetings, incentives, conventions and exhibitions business is going forward, and with Formula One, rates will go up quite a bit,' Mr Kwek said.

Hotel operators may charge tourists an average $600 daily from $170 now as occupancy increases in the next eight years, according to Merrill Lynch & Co. About 3,300 rooms are expected to be added annually, falling short of the average 4,100 units needed, a team led by Merrill Lynch analyst Melinda Baxter wrote in a June 18 report.

Singapore is adding new attractions, including a Universal Studios theme park and the world's largest Ferris wheel, to tap an increase in global travel. The government expects to triple tourism spending to $30 billion by 2015.City Developments is the parent company of Millennium & Copthorne Hotels plc, the UK operator of the Biltmore in Los Angeles.

Business Times: Asia's real-estate comeback

2007-06-27T11:13:00.000+08:00

June 27, 2007

Asia's real-estate comeback

TEN years after the Asian financial crisis, Asia's real estate markets are bubbling again, led by Singapore. Given the key role overheated property played in that crisis, it bears asking, to what extent the current exuberance is a cause for concern this time around.

According to the Global Property Guide, Singapore experienced Asia's highest residential property price increases last year, with housing prices rising 9.5 per cent in real terms (although this masks higher percentage increases in prime market segments). Quite likely, it will be a similar story this year as well. Real estate markets in China, India, Korea and the Philippines have also witnessed sharp run ups - and in those countries too, prime segments have seen double digit price increases in percentage terms. Indeed, more and more real estate funds and other institutional investors are pouring money into Asian property. Some element of speculative activity is also evident.

How much should we worry about all this? In a study on Asia's real estate markets in April, the IMF took a generally sanguine view - although with qualifications. It pointed out that while property prices have been rising more rapidly than inflation, most Asian countries 'are not experiencing unusually rapid housing price hikes'. It noted that in many cases, the increases follow on the heels of extended declines (about eight years, in the case of Singapore). Moreover, housing prices have not risen exceptionally, compared with other asset prices. On average, housing price increases have run ahead of income gains in about half the 12 countries covered, but these average prices might mask affordability problems for some segments of the population. Apart from income gains, there are other reasons for property price run-ups: the proliferation of mortgage products and a rise in mortgage credit - especially in China and India; higher non-speculative foreign demand for housing and commercial space (which is true in Singapore as well) as well as an element of speculative capital inflows - though less than in the 1990s.

Given that the run-up in real estate prices represents a rebound after several years of decline or stagnation, it does not, as yet, create cause for concern. The fact that institutional investors are far more active players in Asia's (and particularly Singapore's) property markets this time than they were in the 1990s is also reassuring. They introduce an element of stability and resilience because they have greater financial holding power than individuals, and are less likely to engage in panic selling.

However, all that said, policymakers and banking regulators across the region need to be vigilant to ensure that lending standards do not become overly relaxed and that housing lenders are adequately provisioned against what the IMF calls 'a reasonable worst-case scenario of falling house prices'. The degree of household indebtedness - particularly in those segments of the population who are vulnerable to income shocks - is also an indicator that bears watching. But as of now, it is difficult to make the case that there are sufficient danger-signs to warrant government intervention in the market aimed at bringing property prices down.

Straits Times: Iconic buildings among 4 properties headed for collective sale

2007-06-26T10:07:00.003+08:00

June 26, 2007

Iconic buildings among four properties headed for collective sale
By Joyce Teo, Property Correspondent

TWO iconic buildings - The Riverwalk next to Boat Quay and Pearl Bank Apartments in Outram - could be torn down soon if their collective sales go through.

Elsewhere, two other residential developments - in Leonie Hill and Upper East Coast - were also put up for sale by tender yesterday. However, it is the pair of eye-catching landmarks that have attracted the most interest.

Jones Lang LaSalle yesterday put The Riverwalk, a mixed development in the central business district, up for sale through an expression-of-interest exercise that will close on July 26. The property, which houses businesses such as Home Club, has 181 commercial units ranging from 54 sq ft to 20,161 sq ft, plus 118 apartments ranging from 818 sq ft to 3,821 sq ft.

Jones Lang LaSalle said it is zoned for commercial use and can be redeveloped into a building with a gross floor area of up to 403,351 sq ft. Its regional director and head of investments, Mr Lui Seng Fatt, said developers could build shops, offices or small office, home office units. Apartments cannot be built for now, as the Government has temporarily halted the conversion of commercial space to flats in the central region until the end of 2009.

Owners of The Riverwalk want $700 million, up from the $500 million they asked for earlier. Developers will also have to pay a development charge and a premium to top up the lease, which could add up to about $70 million. The price, including the extra charges, could work out to $1,900 to $2,000 per sq ft (psf) of potential gross floor area, said market experts.

The 280-unit Pearl Bank Apartments, completed in 1976, could be put up for sale soon for more than $500 million, said market watchers. While some owners are keen on a sale, some architects hope the building will be preserved. One had reportedly said that it should be kept because it represents the emergence of modern architecture in Singapore.

The value of Pearl Bank has risen greatly recently, with a 1,323 sq ft two-bedroom unit sold last month at a record $1.07 million, said an ERA agent who brokered the deal. The property has an allowable plot ratio of 7.2 based on the 2003 masterplan, though some owners are hoping for a higher plot ratio to be approved, market sources said.

Pearl Bank has two-storey maisonettes, penthouses and shops. And the 74-unit Rivershire at Leonie Hill Road has been put up for sale by tender at a revised price of $348 million or $2,200 psf of potential gross floor area. There is no development charge payable on the freehold site. Its previous asking price was about $237 million and the tender closes on July 24.

At Upper East Coast Road, Credo Real Estate has put the 40-unit Rich East Garden up for sale, with an indicative price of $92 million to $95 million. This translates to $630 psf to $650 psf of potential gross floor area, including development charges. The tender closes on July 31.

Business Times: Call to allow foreigners to buy landed homes

2007-06-26T10:07:00.002+08:00

June 26, 2007

Call to allow foreigners to buy landed homes
By KALPANA RASHIWALA

(SINGAPORE) Goldman Sachs (Singapore) has argued a case for lifting restrictions on foreigners buying landed homes in Singapore, saying this would serve as a catalyst for further foreign buying of private homes and boost the current residential property upcycle.

Its analysis shows that the average price of a top-end bungalow (with a 15,000 sq ft land area) is about $17 million - or 35 per cent below that of a comparable condominium (a 7,500 sq ft unit priced at $3,500 psf), which goes for about $26.3 million. 'We think this price gap can narrow to parity or very close to it, should the restrictions on foreign ownership of landed properties be relaxed,' the bank said in a research note dated June 24.'

In the event of an across-the-board relaxation of restrictions for landed property, we believe the positive effects would be two-fold: (1) developers with landbank for landed developments would benefit; and (2) all residential developers could gain from even greater foreign buying interest given the positive message such a move would send,' it said.

Although the government has made no announcements on the subject, 'we see the possibility of the government relaxing restrictions on foreigners buying landed property as higher than previously, because: (1) discussions with developers have affirmed our view of foreign interest in landed property, and (2) the tone of government policy changes has been firmly pro-immigration ... We think relaxing restrictions on foreigners buying landed property would accelerate Singapore's efforts to attract foreign talent,' Goldman Sachs said in the research note.

'In our view, foreigners would like the flexibility of greater choice of housing and the positive signal of Singapore's open door policy emanating from such a move,' Goldman Sachs argued. It added that a relaxation on foreign buying of landed homes would not hurt the national objective of giving Singaporeans a stake in the country by being able to buy and own residential properties at affordable prices as the public housing market addresses this objective.

In the first quarter of this year, foreigners accounted for 26 per cent of buyers of private homes, up from 23 per cent in 2006 and 21 per cent in 2005.

Under the Residential Property Act, foreigners (including permanent residents) are prohibited from buying landed property without prior approval from the government.

Foreigners have to be PRs before they can receive permission to buy landed homes on mainland Singapore; Sentosa Cove is the only location where foreigners who are not PRs are allowed to purchase landed property.

Foreigners, including PRs, can at any one time own only one landed home in Singapore and must occupy it themselves rather than rent it out.

Among the criteria that the Minister for Law will consider when asked to approve foreigners buying a landed home are the applicant's qualifications and whether the applicant has made, or will be able to make, adequate economic contribution to Singapore. However, foreign buyers may acquire an unlimited number of non-landed private homes - condominiums and apartments.

Goldman Sachs acknowledged that 'for now, we note there is still no certainty of any policy change and the nature of change could be restricted to select types of landed property like Good Class Bungalows or cluster housing'.

The bank's analysis of 36 landed property transactions at Sentosa Cove between January 2005 and May 2007 showed that Singaporean and foreign buyers each accounted for 44 per cent of purchases, with the balance accounted for by companies.

In contrast, Goldman Sachs' study of islandwide private home transactions between January and May this year showed that foreign buyers accounted for just 8 per cent of total landed property deals, lower than their 29 per cent share of non-landed home purchases over the same period. This suggests the scope for a higher share of foreign buying if the landed private housing sector is also opened to foreigners. 'We think relaxing restrictions on foreigners buying landed property would not adversely impact demand for condominiums and apartments, given the positive signal such a move would send to foreigners,' the bank said. 'Moreover, we look for a positive spill-over from rising landed property prices to condominiums and apartments.'

Goldman Sachs estimates about 2,800 landed homes with written permission for development, the bulk (2,565 units) of which have yet to be sold, will come on stream over the next few years.

This supply is almost 4 per cent of the current stock of landed homes in Singapore.

Among the developers with exposure to landbank slated for residential housing are Bukit Sembawang, Allgreen Properties, MCL Land, Fragrance Group, and Sing Holdings.

Business Times: CBD 'gem' Riverwalk, two residential sites up for sale

2007-06-26T10:07:00.001+08:00

June 26, 2007

CBD 'gem' Riverwalk, two residential sites up for sale
The residential sites are on Leonie Hill Rd and Upper East Coast Rd
By UMA SHANKARI

A PRIME commercial site and two residential sites have been put up for sale, the property firms marketing the sites said yesterday.

The Riverwalk, a commercial site in the heart of the central business district (CBD), is up for collective sale by expressions of interest, and market watchers estimate that the property could fetch about $700 million.

The price works out to about $1,900 per square foot per plot ratio (psf ppr), inclusive of the cost of topping up the lease on the site from its present 72 years to 99 years (estimated at $69 million-$70 million) as well as a development charge (DC) of about $1.2 million.

The 82,300-sq-ft site has a maximum plot ratio of 4.9 - giving it a maximum gross floor area of about 403,400 sq ft.

Right now, The Riverwalk consists of 181 commercial units and 118 apartments. Jones Lang LaSalle (JLL), which is marketing the site, said owners with a total 60-70 per cent of share value have agreed to the collective sale.

Under the rules, the property cannot be sold unless at least 80 per cent of owners agree to collective sale.

'Coupled with the soaring property market and shortage in office space, The Riverwalk is definitely a rare gem in the CBD,' said Lui Seng Fatt, regional director at JLL.

The expression of interest exercise will close at 3pm on July 26.

The 74-unit Rivershire on Leonie Hill Road is also up for sale - for the second time. Property firm Knight Frank expects that the property will fetch about $348 million, or $2,200 psf ppr. There is no DC payable.

The 56,400-sq-ft site was previously put on the market through an expression of interest exercise in April, where it was expected to fetch about $237 million - a land value of $1,500 psf ppr. But the asking price was not met. In addition, Knight Frank did not have the required 80 per cent owner consent then, the firm said. This time around, with the continued upturn in the property market and the 80 per cent-owner consent to the sale secured, Knight Frank is confident of getting the asking price.

Rivershire has a 2.8 plot ratio and a height control of 36 storeys. The successful developer would be able to build an estimated 88 units averaging 1,800 sq ft each.'The strong take-up rates for high-end condominiums in the vicinity such as The Trillium, Tribeca and St Thomas Suites should increase the site's attractiveness to developers,' said Knight Frank. The tender will close at 3pm on July 24.And a bit further away from the centre of town, Rich East Garden, a 40-unit development at Upper East Coast Road, has also been released for sale by tender. The indicative price for the site is $92 million-$95 million, which translates to a land rate of about $630-$650 psf ppr, including an estimated DC of $330,000.

The site has a land area of close to 105,000 sq ft and a 1.4 plot ratio, giving it a gross floor area of 147,000 sq ft. 'The site may be configured into approximately 83 apartment units with an average size of 1,200 sq ft, depending on layout and configuration, ' said Karamjit Singh, managing director of Credo Real Estate, which is marketing the property. The tender closes at 2.30pm on July 31.

Business Times: Tight supply could see lower sales in Q2: CBRE

2007-06-26T10:07:00.000+08:00

June 26, 2007

Tight supply could see lower sales in Q2: CBRE
Residential prices expected to continue rising 4-6%, says CBRE
By UMA SHANKARI

(SINGAPORE) The number of new homes sold in the second quarter of 2007 could exceed 4,300 units, but still less than the 4,800 homes sold in the first quarter, according to a new report released yesterday.

And third quarter sales are expected to be even lower than in the second quarter.

Property consultancy CB Richard Ellis (CBRE) expects the number of homes sold in the second quarter to fall - even as demand stays strong - mainly due to tight supply in the residential market.

Joseph Tan, CBRE's executive director for residential, attributed the lower home sales from April to June to fewer launches of larger projects, as well as fewer launches overall.

'There will be fewer launches,' Mr Tan said. 'Also, projects in the prime areas are getting smaller (in terms of the number of units) rather than larger.

'The drop in take-up rates for homes will continue into the third quarter, when the number of homes sold will exceed just 3,000, CBRE said.

Home prices, on the other hand, are expected to continue climbing in the second quarter.

'We expect the overall price increase in the Urban Redevelopment Authority (URA) residential price index to be around 4 per cent to 6 per cent for the second quarter,' CBRE said. The URA price index rose 4.8 per cent in the first quarter of 2007.

And CBRE also expects the positive uptrend to continue in the third quarter. Said Mr Tan: 'The take-up of new homes is likely to exceed 3,000 units while home prices may continue to head up by another 3 per cent to 5 per cent in the next quarter.

'Developers will offer a variety of projects as they take advantage of the strong demand for new homes over the next quarter, said CBRE. In the high-end segment, Hilltops, Scotts Square and a 99-year leasehold condominium at Marina Collection may be launched.

In the prime and mid-tier segments, condominium projects at Sinaran Drive (99-year leasehold), Jalan Mutiara (site of former Dragon View Park) and Meyer Road (site of former Eastern Mansion) are expected to be put on the market. Suburban projects such as the condominium on the former site of Westpeak in West Coast Walk and Versilia On Haig may also be launched.

Business Times: Property boom: will it last?

2007-06-25T13:06:00.002+08:00

June 25, 2007

THIS WEEK'S TOPIC
Property boom: will it last?
Is the property boom for real or is it a bubble? What does this say about prospects for the overall economy?

STRONG economic fundamentals, regional stability and positive economic performance in Asia have provided the environment to support continual investor confidence in Singapore.

While increases in prime residential and office nominal values have been substantial over the past 12 months, there was little growth over the nine years before. The effects of inflation over this period should be taken into account. High-end residential prices (in real terms) have increased 4.5 per cent per annum since 1997. This growth seems moderate when compared to Singapore's 10-year average economic growth rate of 5.24 per cent and growth in prime residential properties in other global cities during the same period.

After removing annual inflation of 0.73 per cent, average prime office rent of $11.80 psf has only shown an annual real growth of 0.6 per cent over the same 10-year period. Singapore's prime office rent, we believe, is still competitive compared to other global cities such as London, Tokyo and Hong Kong.

The fundamentals in 2007 are different from 1997's. Asia has restructured, with Singapore emerging in a much stronger position than before. Its in-migration friendly policy and pro-business tax structure further coalesce to support the demand for Singapore properties. Barring unforeseen circumstances, the outlook for the property market remains positive. - Christopher Fossick Managing Director - Singapore and South East Asia Jones Lang LaSalle

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Looks like the real thing

SINGAPORE'S economy is still slated to continue growing, year on year. With high-profile projects like Formula 1 and the integrated resorts leading the way, Singapore is gearing towards a level of global reach and relevance never before seen in its history. That is a development that is here to stay.

Because of the economic progression, the subsequent proliferation of property and its demand should be expected. The truth is, ever since its precipitous decline in 1996, the property market has not fully recovered until now. However, the reason why people are jittery is that property prices are recovering faster than most can adjust to.

Healthy moves like the release of land, as well as new developments in the pipeline, will hopefully help to cool the market. Demand needs to be eased so that the property market is steered into a more gradual, controllable and ideal growth. Then, we will see that the higher prices we are witnessing now are just one aspect of a promising economic future.- Annie Yap CEO The GMP Group

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THE property market is indeed flying.

Private residential property transactions with caveats lodged revealed higher transacted prices for districts 4, 9, 10, 11 and 15. These are the prime moving districts now, and I believe there is still a lot of room for prices to move up. Why? For every key event listed below, I expect an above-average movement of $100 per square foot in the districts mentioned to move alongside in the following years:

1. Year 2008 - First in the world! F1 night racing is coming to Singapore. The world will get invited to Singapore, interact with Singapore and invest in Singapore.

2. Year 2009 - First integrated resort to be completed with US$5 billion flowing into Singapore filled with the first wave of tourists which include participants in the Business Travel, Meetings, Incentives, Conventions and Exhibitions (BTMICE).

3. Year 2010 - Second integrated resort to be completed, with another US$5 billion flowing into Singapore filled with the second wave of tourists coming from destinations beyond the nine-hour flight radius of Singapore.

4. Year 2011 - General Election in Singapore: the government will introduce goodies to cultivate goodwill amongst voters to elect the next generation of leaders.

5. Year 2015 - Singapore celebrates her 50th birthday, which will fulfill our Prime Minister's vision for Singapore to become the jewel of the region.

If not now, then when? If not us, then who? Let's do our best to keep the property market flying high!- Clemen Chiang CEO Freely Business School

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I WISH I had a crystal ball to predict the property market. Not for gain or investment, but because I am caught in this boom just when I needed to consider a change in my residence. So I have been looking at it as a consumer.

Most of the conversations I have had these days is mainly about property prices, en-bloc deals, lack of units available and the what-if's. From meeting and chatting with various people, I gather most feel that there is still room for the per-square-foot price to move upwards. They give me the feeling that they are confident the economy is strong and sustainable.

The anticipation of the IRs does give the whole frenzy some kind of timeframe. The F1 buzz does give it an added layer of confidence. The ST Index keeps hitting record levels.

In my opinion, if no major disaster happens, I believe the property market and economic growth look likely to continue.- Joey Chang CEO/Founder AXS Infocomm

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THE property market will stay robust at least till 2012. The growth in the property market is thus backed by economic fundamentals of rising demand, income and jobs. If the overall economy continues to do well, the property market boom is likely to be sustained. Firstly, the Singapore economy has picked up and grows strongly. Our IR project further stimulates economic activities in the next few years. For the next five to 10 years, Asian economies will remain vibrant due to the Olympics 2008 in China, and the rise of Vietnam and India.

Most of the global investments will focus on the growth of the Asian economies. Singapore, being one of the financial centres and a politically stable country, will definitely reap the boom opportunity. Although the property boom reacted aggressively for the past one year, it has not reached the peak yet. I would think that the booming trend will still continue to be steadily up at least till 2012.- Dora Hoan Group CEO Best World International Ltd

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DRIVEN by excess liquidity, asset prices around the world have increased in value simultaneously since 2002. The property boom in Singapore started about a year ago, largely underpinned by the high-end segment, through the en-bloc sales fever. A property boomrequires cheap finance, excess savings in Asian economics, low long-term bond rates and an integrated international financial system. Money supply and credit must continue to grow at an accelerating rate in order to sustain the expansion.

There is no bubble ready to burst, as the boom is supported by a strong economy and political leadership, increased immigrants and foreign talents, perspectives of the IRs and a global city in the making, and a better working relationship with neighbouring countries.- Tan Kok Leong Principal TKL Consulting

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FOR those of us who saw the bubble deflated in the mid-90s, the thought of a bubble looms large on the horizon - and the speed at which prices have gone up seems to bolster this argument.

However this time around, besides the usual participants in the Singapore property market, there is participation from the Middle East, India and China which, together with good worldwide economic growth, excess liquidity and low interest rates, may make markets a bit more robust than before. There is also the IR factor plus the Formula 1 race coming into Singapore next year.

Of course the boom in the property sector brightens the prospects for the overall economy. The downside will be that the increasing rents that will accompany the property boom will push up the cost of doing business in Singapore, and there may be some businesses in Singapore which may find the cost of doing business out of and in Singapore prohibitively expensive. This is a call that they have to take.- Vijay Iyengar CEO Agrocorp International

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THE current property boom is a natural phenomenon in the economic cycle in Singapore as capital inflows from overseas soak up the prime real estate.

The impending opening of two integrated resorts in Singapore is a key booster to the property boom. Coupled with the government announcement to bolster the population from current 4.5 million to 6.5 million by 2020, this has spurred the developers' confidence of stepped-up demand for housing and office space as well as the increase in MRT and expressway networks.

Barring any unforeseen circumstances, we are not expecting any bust in the property market in the next five years. If any, it would merely be a technical correction.

I am confident that by 2015, when we celebrate the golden jubilee of the independence of our republic, our global city state will be among the top cities in the world.- Derek Goh Executive Chairman / Group CEO Serial System Ltd

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It's been said that growth in urbanisation, along with the emergence of real estate investment trusts (Reits), will be one of the defining characteristics of the property sector in Asia over the long term. And now, particularly with the imminence of the Bay area projects, Singapore's luxury property market has received yet another rejuvenating shot in the arm and will no doubt continue its bull run into the foreseeable future.

Like any staple industry, property and construction are subject to cyclical swings between peaks and ebbs, but as our economy fortifies itself from strength to strength and the people's spending power increases over the years, real estate developers can expect more high-end sales for a sustainable period of time, which readily reflects financial health and also brightens the general outlook.- T Chandroo Chairman/CEO Modern Montessori International Group

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THE soaring property prices are driven by high demand for land and office space due to the influx of foreign investors. Given such strong fundamentals, the current property boom is likely to be for real rather than a mere bubble.

Worth highlighting is the potentially adverse impact that this could have on local SMEs, including those which are providing value-added services to our community, such as childcare and eldercare. As such, the government should help ease the current skyrocketing property prices and in this respect, it is encouraging to note that more state land is being released.- Sam Yap Executive Chairman Cherie Hearts Child Development Pte Ltd

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THE property boom in Singapore is expected as the country will be a place of choice for many rich people in Asia. Multi-millionaires throughout Asia will love to have a residence here. The boom is real and not yet a bubble. The boom is not due to local needs but more from buyers abroad. Properties in the UK shot up for the similar reasons. Many rich English-speaking people throughout the world love to live in the UK too.The prices may appear to be high in Singapore, but they are not that high compared to prices of properties in London, New York and Hong Kong. The property boom will help to generate the growth of the Singapore economy. It will not affect locals who will enjoy the help of the government in building homes for them at reasonable prices.- Ng Kong Yeam Group Executive Chairman Sino-America Tours Corporation Pte Ltd

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WHETHER the property market can be sustained depends largely on the purchasing power of buyers and on government intentions.

Of late, money flowing in from oil-producing Middle Eastern countries and noveau riche Chinese has made credit cheaper. Singapore is seen as a safe haven to park their money, and buying into properties in an improving economy is one way to preserve capital.

I see the market having some legs and will be strong in the short term; thereafter if the market goes up too high, the government may step in to cool the market. High property prices affect the population's ability to produce more babies.- Tan Ser Giam Chairman Eastern Navigation Pte Ltd

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THE Singapore economy has been recovering for the last couple of years since the Sars outbreak in 2003 put a severe dent on the economy. On the other hand, the Singapore property market started recovering only in the last year or so. As such, I tend to believe that the Singapore economy has built a strong economic base to justify the current property boom. At the same time, the next few years will see huge investments in IRs, etc, and the re-inventing of the Singapore economic model.

The government has already upped the target population to 6.5 million. All this means that there will be more people - more expatriates, more immigrants and more high-net-worth individuals - coming to this island in the next few years. Of course, in any type of asset inflation, speculation cannot be avoided, and this is likely to form a part of any property boom. However, more importantly, there are likely to be many more genuine investors and home buyers who will be attracted to invest and to live in Singapore, and to be part of the new Singapore economic story. - Wee Piew CEO HG Metal Ltd

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Need for caution IF PRICES skyrocket too rapidly, or if we fail to balance the variables contributing to the economy, the property boom could potentially be a bubble.

Singapore's property market is artificially buoyed by foreign investors from countries such as Indonesia and Thailand leveraging Singapore's stable and growing economy. The last time the property bubble burst was due to the financial crisis, which removed this foreign investor support. This time round, we are not expected to experience the same monetary meltdown to threaten the boom. However, what we are seeing is an unrealistic expectation from sellers that their properties will keep achieving the stellar heights that everyone is talking about. With respect, perhaps an element of 'kiasu-ism' is clouding expectations. This causes an inconsistency in the market and is generally not positive. Growth is a positive attribute to any economy and it is much better for it to be based on fundamental economics.

When the different variables in an economy do not match up, a boom could well become a bust. We are already seeing rising rent rates, against a disproportionate rise in wages, becoming a deterrent to overseas working professionals. I trust the boom we are experiencing will plateau off and we will return to a steady positive growth period instead. - Charles Reed CEO interTouch

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ECONOMIC and infrastructure fundamentals support the Singapore story, and with it the long-term real estate market as a solid asset class for investors. Current speculation, however, is at a runaway pace. While I do not necessarily believe that a crash is looming, it will be inevitable that international companies will take a closer and more critical look when assessing the costs of operating in Singapore.If unchecked for long, it may drive certain firms away, to the detriment of Singapore. International professionals may also be unwilling to pay inflated rentals, nor do they wish to move every two years due to exorbitant rental increases - and all this because of speculators, many of whom do not even live here? Is that what Singapore wants?- John Jessen Co-Founder and Managing Director Smith & Jessen

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IT'S a bubble. While Singapore's economy is sound, recent real estate price increases have more than closed any 'valuation' gap and brought prices more than in line with their fair market value that is reflective of supply and demand.

Why is it a bubble? -1) too many success stories of people 'flipping' property within less than a year, 2) too many people buying 'without having seen the property', and 3) still supported by low interest rates - people are in search of alternatives.

Points 1) and 2) are pure signs of speculation and who doesn't know about the deep Chinese culture of always 'hunting' for a deal? It works as long as more people join in - but once the first stumbles the whole house of cards will come down. I am waiting for that day - and then might buy. But for ownership, not for speculation.- Berthold Trenkel Chief Operating Officer, Asia Pacific Carlson Wagonlit Travel

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THE lethal combination of the record-breaking rise of the stock market and the ongoing en-bloc fever will continue to drive property prices northwards. This strong push in property prices is indeed a direct reflection of the stellar performance of the stock exchange and the buoyant economy. However, as with all bull runs, what goes up must come down. With more projects scheduled for completion in 2009, there is bound to be a slight correction. The slight correction will however not be a sharp drop as observed in the interim years following 2001. I am concerned about the effect of having mainly foreign funds that are driving this steep surge in property prices. While we are all in awe of the latest blockbuster transaction pricing reported daily in the papers, we must not forget that the majority of Singaporeans still stay in government housing and this will not have much effect on them. En-bloc fever is also slowly destroying close-knit communities when most of the affected residents are forced to stay in another part of the island, as they will not be able to afford a similar place in the same area any more.- Benjamin Low Managing Director, Southeast Asia & India Secure Computing

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THE prices of property have been shooting up so fast that many ordinary middle-class Singaporeans thinking of upgrading or buying a new home are now priced out of their dream home. Developers of new property projects have found good demand from foreigners and high-net-worth Singaporeans. This all bodes very well for the developers, the contractors, the furniture and furnishing suppliers, and the economy. The upside is that the economy is growing, people are optimistic, and everyone gets a share of the pie.

The downside is that people who are not savvy property players get drawn into this feeding frenzy and may get burnt. This property boom is really a bubble created by savvy developers and people with deep pockets. Having seen the boom and bust of the property cycles in the past, I would advise people who think they can get a slice of this action to be extremely careful and to keep their ears close to the market.- Fong Loo Fern Managing Director CYC The Custom Shop Pte Ltd

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THE current property boom is a testament to the strength and resilience of the Singapore economy having recovered dramatically from the previous downturn. However, unless you're a property developer or a landlord, the boom can have an adverse effect on most businesses, due to rental being a major constituent of operational costs. From services companies to retail and manufacturing, the property boom is increasing the cost of doing business in Singapore, and if left unchecked can hamper the competitiveness vis-a-vis our neighbours in the region. Across the board, the rise in rents will most likely trickle down to be passed on to consumers. Consumer spending may be hit too as consumers scale back on big-ticket purchases or defer purchases. Ultimately, if left unchecked, inflation may creep in and become a dampener on the overall economy. Hence, the recent move by the government to closely monitor the price movements in the property sector for any possible signs of overheating is applauded.- J Anton Ravindran Group CEO & Co-Founder Genovate Solutions

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THE property market has always been cyclical. Having said that, what is important is not to get swayed away, but rather to remain prudent and invest sensibly. Globally, Singapore has been ranked as the 14th most expensive city to live in. While this is a strong indication of a positive and booming economy, it also implies that with the rising cost of living, Singapore may eventually lose its attractiveness as a city to work and live in.- Lars Ronning President, North & South East Asia, India, Australia & New Zealand Tandberg

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SINGAPOREANS will have to brace themselves to live with an appreciation in property prices for at least another six months to a year, and for those affected by en-bloc sales, to determine how to get the best out of this trend for another acceptable roof over their heads, moving forward.

While the flurry of property transactions will fuel the already booming economy, my concern is the economy becoming overheated, driving up the costs of living and making it untenable for the ordinary man in the street. At the same time, there is the burgeoning prospect of our economy becoming uncompetitive, with all the concomitant negative effects of investments going elsewhere and ensuing unemployment. The government can try to regulate the property market to prevent this, but I feel the government can strengthen its approach by enforcing stricter regulations in a timely manner against rampant speculation. However, its hand is weak in relation to high-end luxurious properties, whose demand is price-inelastic, and so long as there are people willing to pay, this will continue to artificially fuel the steady increase in prices. - Lim Soon Hock Managing Director Plan-B Icag Pte Ltd

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MY CONCERN, if I were in the Singapore property market, would be understanding what is driving this boom. There seems to be a lack of fundamental economic criteria that can explain it. My second concern would be the size of the Singapore market - it is not big enough to sustain this growth. Having said that, I wish I had invested early on in the boom so that I would have had time to make some money!- Ross Wilson Managing Director, Consumer Products and Services, Apac Region Trend Micro (Singapore) Pte Ltd

Fontaine Parry (launching soon)

2007-06-25T13:06:00.000+08:00

A beautiful resort-styled development situated within the midst of landed properties at Poh Huat Road

Live within 1km to Rosyth School, with easy access to CTE and future Kallang Expressway

Developer: OUB Centre Ltd

Architect: ADDP Architects Pte Ltd

Tenure: 999 yrs

Expected TOP: TBA

Site Area: 9,798sqm / 105,466 sq ft

Total Units: 125

Total Carpark Lots: 136 (inclusive of 2 handicapped lots)

Facilities: Swimming pools, Gymnasium, Multi-Purpose Hall, Jacuzzi, Sauna, BBQ Pits, Jogging Track, Exercise Stations

Available Units:

2 bedroom - 850 to 915sf (31 units)

2 bedroom + PES - 1001 to 1270sf (9 units)

2 bedroom + RT - 1744sf (1 unit)

3 bedroom - 1184 to 1292sf (49 units)

3 bedroom + PES - 1302 to 1615sf (16 units)

3 bedroom + RT - 2303 to 2390sf (4 units)

3 bedroom + Attic - 1496sf (4 units)

4 bedroom + Attic - 1991 to 2121sf (11 units)

For enquiries, please call Jazleen Leom @ (+65) 91514003 or email to jazleen.leom@gmail.com

Business Times: Investment sales of property may hit $35b

2007-06-22T15:26:00.002+08:00

June 22, 2007

Investment sales of property may hit $35b
Total chalked up so far is $21.4b, says CBRE
By KALPANA RASHIWALA

(SINGAPORE) CB Richard Ellis is predicting that the level of investment sales of property may hit $35 billion for the whole of this year, after chalking up a figure of $21.4 billion so far this year. The figure for the whole of 2006 was $30.5 billion.

The value of $21.4 billion from Jan 1 to June 20 this year is about 48 per cent higher than that for the first-half of last year.

The strong level of investment sales reflects major property players' continued confidence in the mid-to-long- term prospects for the Singapore real estate sector.

CBRE's investment sales tally includes land deals, collective sales, transactions of entire office and other buildings, as well as strata-titled units above $5 million.

The residential sector accounted for the lion's share, with around $14.6 billion or 68 per cent of total investment sales in the first half of this year.

Residential land sales remained the focus of investment activity in the first half as developers have sought to replenish their landbanks for future development in the face of strong demand at their residential launches, despite higher selling prices, market watchers say.

executive director (investment properties) Jeremy Lake said: 'As long as response to new launches remains very positive, one can expect developers to continue to compete aggressively for sites. The question now is whether with a larger choice of suburban sites offered by the Government Land Sales (GLS) programme announced last week, developers now have an alternative source of residential land supply other than collective sales, which has been generating prime district residential sites for developers.'

Asked about the implication that the latest GLS programme may have on en bloc sales, Mr Lake said that while choice sites in the prime districts will continue to be sought after through en bloc sales, 'the market may overlook those sites that have overshot pricing expectations or are less appealing for whatever reasons'.

He said: 'Developers will become more choosy when picking sites through collective sales in the prime areas.'

Around $8 billion worth of collective sale deals have been struck so far this year. Big transactions include Leedon Heights ($835 million), Char Yong Gardens ($420 million) and The Ardmore ($262 million, reflecting a record unit land price of $2,337 psf per plot ratio).

Office properties contributed around $4.8 billion, or 23 per cent of the investment sales pie in the first half. Activity in this market segment is expected to remain buoyant on the back of robust rental growth due to a near-term shortage of office space.

For the second quarter of this year (up to June 20), the total investment sales tally was $9.67 billion, up 16 per cent from the figure of $8.34 billion in Q2 2006, after hitting $11.7 billion in Q1 2007. 'At this half-way point, there is every reason to expect that investment sales for the whole of 2007 will surpass the $30.51 billion set in 2006 and may hit $35 billion,' Mr Lake said.

While the private sector accounted for 86 per cent of total investment sales in H1 2007, with the rest contributed by GLS, the public sector is expected to make a strong showing in the second half.There is much speculation about two forthcoming GLS sites, at Beach Road and in the Marina Bay area, up for tender in Q3 and which are likely to yield over $2 billion of investment sales.

Business Times: Four developers pay $243m in joint buy

2007-06-22T15:26:00.001+08:00

June 22, 2007

Four developers pay $243m in joint buy
Koh Bros, Heeton, KSH, Lian Beng acquire freehold Lincoln Lodge
By UMA SHANKARI

PROPERTY developers Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group have joined hands to buy the freehold Lincoln Lodge for $243 million, the companies said in a joint statement yesterday. The four will hold equal stakes in the project.

The price for the site, located in the prime District 11 off Newton Road, works out to $1449.3 per square foot per plot ratio (psf ppr) including an estimated development charge of $413,000. The consortium is also 'quite confident' of acquiring a 3,358 sq ft plot of state land beside the property for about $3 million, said Koh Brothers chief executive Francis Koh.

If the four companies bag the state land, then the price paid for both sites will come to about $1,370 psf ppr, he said. Combined, the two sites will give the developers a total gross floor area of about 177,400 sq ft to work with. The partners intend to build a 36-storey residential project with 120 luxurious apartments averaging 1,600 sq ft. The project will be launched in the first half of 2008, at prices in the region of $2,500 psf, Mr Koh said. The break-even cost for the project is expected to be around $2,000 psf.

The site was put on the market in May with a reserve price tag of $188 million. The consortium's offer of $243 million was the highest of a few bids, BT understands.

Mr Koh said that the partners were willing to pay significantly more than the reserve price as they were 'very interested' in the site, and the upbeat property market means that they can be confident of making a profit even at higher break-even costs. 'I think at the moment, it is about how much you can sell for,' Mr Koh said. He cited the site's 'excellent location' as well as the rising rental market as reasons.

The project will mark the first time all four companies have come together to develop a property. Koh Brothers and Heeton Holdings have worked together in the past - they will soon launch The Lumos in the prime Leonie Hill area, probably in the first week of July. At the end of yesterday's trading, the companies' counters moved up as Koh Brothers' stock rose 1.5 cents to end at 55.5 cents, while Heeton's stock climbed 0.5 cents to close at 98.5 cents. Shares of KSH rose 4 cents to close 87 cents, while Lian Beng's stock ended the day 2.5 cents up at 44 cents.

Business Times: OUE 'inks deal' to buy Grangeford

2007-06-22T15:26:00.000+08:00

June 22, 2007

OUE 'inks deal' to buy Grangeford
It signs conditional put-and-call option to buy the site for $592m, say sources
By KALPANA RASHIWALA

OVERSEAS Union Enterprise (OUE), controlled by Indonesia's Lippo Group and Malaysian tycoon Ananda Krishnan, is believed to have inked a conditional put-and-call option to buy The Grangeford for $592 million or $1,810 per square foot (psf) of potential gross floor area, say sources.

The $1,810 psf per plot ratio (ppr) unit land price is inclusive of $87.8 million that the developer will have to pay the state to top up the site's remaining 66-year lease to 99 years.

CB Richard Ellis (CBRE) is brokering the deal.

The put-and-call option is subject to approval for the collective sale by owners controlling at least 80 per cent of share values in the District 10 property along Grange Road, just opposite the Indian High Commission.

BT understands that so far, approval from owners with 75 per cent share values has been secured. It will take another 10 owners to give the nod before the 80 per cent threshold is reached. In all, the development has 193 units. The option is valid for four weeks, BT understands.

The option can be exercised by both sides. That means that upon the minimum 80 per cent consent level being secured, either OUE can make the vendors sell The Grangeford or the vendors can make OUE buy.

The $1,810 psf ppr top price achieved for The Grangeford is the highest achieved on the island for a 99-year leasehold residential site. For a freehold site, the current benchmark, set late last week, was for SC Global's acquisition of The Ardmore for $2,337 psf ppr. The $1,810 psf ppr OUE has offered for The Grangeford also surpasses the $1,735 psf ppr it offered in December last year for the freehold Parisian at Angullia Park.

Based on OUE's bid price for Grangeford, market watchers reckon the breakeven cost for a new condo on the site could be around $2,400 to $2,500 psf. OUE is part of the Lippo Group, which has demonstrated a flair for developing high-quality residential projects like Newton One and Trillium.

Market watchers reckon the $1,810 psf ppr offer by OUE will also be closely watched by owners of the next door Horizon Towers, also a leasehold estate and which was sold for $800 psf ppr earlier this year and which is currently mired in uncertainty.

As for The Grangeford, if the deal with OUE is finalised, owners of two-bedroom units will receive $2.7 million per unit (or $2,302 psf based on the existing strata area of the apartment), while owners of three-bedders will walk away with $3.43 million or $1,955 psf. Market watchers note that based on the sales proceeds of $1,950 to $2,300 psf of existing strata area, The Grangeford's sellers have a good spread of replacement properties in the vicinity to pick, including The Imperial, Cosmopolitan and Trillium. Property agents reckon that resale units in these developments - all of which are freehold and new - can be bought for $1,700 to $2,150 psf range. The Grangeford has a land area of 130,982 square feet and under Master Plan 2003, is zoned for residential use with a 2.8 plot ratio and a 36-storey height limit. However, the assumption being made is that the authorities will allow a new development on the site to retain the current existing gross floor area of 375,466 sq ft, which reflects a 2.87 plot ratio.

CBRE has previously said that even if the developer builds an additional 10 per cent gross floor area allowed for balconies, no DC is payable as the development baseline is high - at 547,926 sq ft or an equivalent plot ratio of 4.18.

The Grangeford's reserve price has been revised upwards several times since last year from $280 million in 2006 to $350 million in Q1 this year to $550 million when the latest expression of interest was launched in April. That exercise closed in late May attracting four bidders, who were invited to resubmit bids. OUE emerged as the highest bidder.

Business Times: Foreign buyers sink $2.4b into office property

2007-06-21T12:43:00.004+08:00

June 21, 2007

Foreign buyers sink $2.4b into office invested so far this year outstrips the $1.9b for the whole of last year
By KALPANA RASHIWALA

(SINGAPORE) The shortage of office space on the island that has led to spiralling office rents and capital values has at the same time drawn more foreign investment into Singapore office blocks.

So far this year, foreign investors, including private equity groups and non-listed funds, have picked up about $2.4 billion worth of en bloc office buildings and sizeable strata office properties.

This surpasses the $1.9 billion for the whole of last year, which in turn was more than double the $733 million in 2005, according to latest data from CB Richard Ellis.

Also, the $2.4 billion of office buildings bought by foreign investors gave them a 69 per cent share of the $3.5 billion total in major office deals so far this year. The latter figure, for the period Jan 1 to June 8, 2007, is higher than the $3 billion chalked up for the whole of last year.

Big office acquisitions by overseas buyers this year include Macquarie Global Property Advisors' $1.04 billion purchase of Temasek Tower in March, the $525 million sale of SIA Building on Robinson Road to German Pension fund SEB, the $260 million purchase of Vision Crest's office block and The House of Tan Yeok Nee in the Penang Road/Clemenceau Avenue area by German fund manager Union Investment Real Estate AG (formerly known as Difa Deutsche Immobilien Fonds).

Local buyers have bought around $1.1 billion of office space so far this year, with the biggest deal being the $600 million collective sale of UIC Building at Shenton Way to United Industrial Corp. The mainboard-listed company itself owns 78.8 per cent of the property.

However, Singapore real estate investment trusts, or S-Reits, have not made any purchases of office blocks so far this year, after making acquisitions of over $700 million in each of the preceding three years.

CBRE excluded the Raffles City transaction in 2006 from its analysis as the apportionment of the value of the office space in the mixed development was not made public. The Raffles City complex also includes two hotels, convention facilities and a shopping centre, besides an office tower. Raffles City was purchased jointly by two Reits - CapitaCommercial Trust and CapitaMall Trust - for $2.1 billion. In its analysis, CBRE also excluded small strata office transactions.

Commenting on the big jump in the acquisition of office blocks by foreign buyers and falling purchases by S-Reits, CBRE executive director Jeremy Lake observed that while S-Reits are still bidding for office blocks in Singapore, they have not had much luck clinching acquisitions as the prices they can offer are constrained by the need for the acquisitions to be immediately yield-accretive to unit holders. Otherwise, there is a risk of the unit price of the Reit falling on the stock market.

On the other hand, foreign buyers, which are mostly private equity and unlisted funds, can bid more aggressively as they are looking at a total return story, Mr Lake said.

For instance, foreign buyers can offer a higher price for an office building that may reflect an initial yield, based on the building's existing rental income of, say, only 2 or 3 per cent, with the knowledge that as leases come up for renewal at higher market rents, the yield may then go up to, say, 5 per cent. Also, these players may be looking at selling the assets and crystallising a capital appreciation a few years down the road, Mr Lake said.

Looking ahead, Mr Lake expects foreign buyers will continue to remain dominant buyers of office blocks in Singapore. He also reckons that the office en bloc market on the whole will remain very active for the rest of the year. Asked if there is a sufficient stock of office buildings for sale, he said: 'When the market is strong, surprises come along the way. People whom you do not expect to sell their buildings will sell.'

CBRE data show that the average Grade A office rental value in prime locations has shot up 82 per cent over the past 12 months to $12.40 per square foot a month in Q2 this year.

The average capital value of prime office space has more than doubled over the past year to $2,500 psf in Q2, from $1,150 psf in the same period last year. At the trough of the current cycle, which stretched from Q3 2003 to Q2 2005, the figure was $980 psf.DTZ Debenham Tie Leung data released yesterday evening also show that the average monthly prime rent in Raffles Place rose 20 per cent quarter-on-quarter to $13.10 psf in Q2.

Average rents in the Raffles Place and Marina Centre areas have more than doubled from a year ago.

Business Times: SC Global sees Marq fetching $4,000 psf

2007-06-21T12:43:00.003+08:00

June 21, 2007

SC Global sees Marq fetching $4,000 psf
By UMA SHANKARI

BOUTIQUE property developer SC Global Developments yesterday said that it expects apartments in the first phase of its just-launched The Marq on Paterson Hill to fetch an average of $4,000 per square foot (psf).

The absolute prices for the units will work out to $12-30 million each, SC Global said. The company is now marketing about one-third of the 66-unit luxury development through private previews, which are 'by invitation only'.

The average price for the first phase is 'reflective of the unique and exquisite finishing and detailing of the apartments', SC Global said in a statement. 'The Marq is the most luxurious and ambitious of SC Global's developments to date.'

Located on the top of Paterson Hill, The Marq has two 24-storey towers. One of the towers will consist of 21 spacious 5-bedroom apartments averaging 6,195 square feet, with each unit spread out over an entire floor.

The other tower will feature 42 relatively smaller 4-bedroom apartments averaging 3,000 square feet. The development also has three penthouses, which are not being sold at the moment.

'We are excited about the debut of The Marq,' said SC Global chief executive Simon Cheong. 'It has been eagerly awaited by the market since we announced the development concept a few months ago and we have been meticulously refining the plans to perfect the details.'

SC Global first announced plans for The Marq in January this year, and Mr Cheong said then that homes in the project would be priced 'north of $3,000 psf'.The developer's stock climbed 10 cents to close at $6.25 yesterday. The company's share price has climbed 143.2 per cent since the start of the year.

Business Times: Horizon Towers sale: Sept hearing date not changed

2007-06-21T12:43:00.002+08:00

June 21, 2007

Horizon Towers sale: Sept hearing date not changed
By SIOW LI SEN

THE Strata Titles Board (STB) has not changed the September date for the appearance of objectors to the $500 million Horizon Towers en bloc sale which is after a crucial Aug 11 deadline.

Philip Fong, senior partner at Harry Elias, hired last week by five objectors to the en bloc sale, told BT yesterday that 'no fresh directions have been given from last Friday'. The STB last Friday had pencilled in an appearance of objectors to the sale in September, which was moved from initial tentative dates of July 25-29. This came after Mr Fong had told the registrar he needed more time for discovery and preparation.

But representation has since been made to move the date back to July, a very reliable source told BT.

Drew & Napier, which is handling the collective sale, is understood to have made the representation as the agreement with the buyer - Hotel Properties and two partners - says that the sellers have to apply for STB approval by Aug 11.

Under the agreement, if STB approval is not given by Aug 11, which is six months after the signing of the agreement on Feb 12, 2007, there is a provision for an extension of another four months which can be given by the sellers at their discretion. If the sellers, who are represented by Horizon Towers' sales committee, refuse to grant an extension, the deal could be off.

Said Mr Fong: 'Due process must be given. The objectors are really defending a legitimate interest which is their homes and they should be allowed to fully air their issues before the board, and should not be hurried,' said Mr Fong.

Meanwhile, a female security guard at the posh condominium has filed a police report against a resident for inappropriate behaviour.

The guard, Ms Tamilmani, told BT last night she has now been banned from Horizon Towers. 'My boss told me that I will be transferred temporarily for safety reasons. It is very unfair, I am the victim,' she said. A police spokesman told BT that 'a police report was lodged on 13 June 2007 at 8pm about a case of inappropriate behaviour by a man at an apartment along Leonie Hill. 'Police investigations are ongoing,' he added.

Business Times: Lippo's Riady may build resort at Changi

2007-06-21T12:43:00.001+08:00

June 21, 2007

Lippo's Riady may build resort at Changi
HG Properties was top bidder for site at Fairy Point Hill in Changi: URA
By ARTHUR SIM

LIPPO Group's Stephen Riady could be teaming up with Kechapi Pte Ltd to build a resort in Changi. Kechapi is controlled by the Chua Family who formerly held Cycle & Carriage here.

It was announced yesterday by the Urban Redevelopment Authority (URA) that HG Properties, a company linked to Mr Riady, emerged as the top bidder for a redevelopment site for a recreation club, hotel or holiday chalet at Fairy Point Hill in Changi.

Only two bids were received, with HG Properties offering $25.5 million - $144 per square foot per plot ratio for the 449,894 sq ft site.

The other bid of $10.68 million came from a Sino Land-linked entity called Precious Treasure.

Sino Land, the Hong Kong sister company of Far East Organization, owns the Fullerton Hotel here.

Mr Riady and Kechapi could not be reached for comment but it is understood that HG Properties is 40 per cent owned by Kechapi and 60 per cent owned by Haggai Institute for Advanced Leadership Training Ltd (HIALTL) in which Mr Riady is a shareholder.

It is understood that HIALTL is an executive training and evangelical institute.

The site has a permissible gross floor area of 179,337.3 sq ft and a height restriction of about three storeys.

sources say that the site can support a hotel with about 300 rooms or possibly 100 chalets.

If HG Properties does get awarded the site, HIALTL's involvement could however see the site developed as a recreation club for its members or alumni.

Kechapi's experience in the hospitality sector could also be useful. Kechapi sold the Garden Hotel to City Developments Ltd in 1999 for $108 million.

Kechapi still operates the hotel but the site is slated for redevelopment.

Business Times: For sale: Mountbatten conservation bungalow

2007-06-21T12:43:00.000+08:00

June 21, 2007

For sale: Mountbatten conservation bungalow
Freehold property to be auctioned, with indicative price of $10m
By KALPANA RASHIWALA

A CONSERVATION bungalow at 781 Mountbatten Road is going under the hammer on June 29 with an indicative price of $10 million.

The freehold property has a land area of 20,222 square feet and the single-level bungalow with an outbuilding has a total floor area of 3,444 sq ft.

The main building has five bedrooms, while the outbuilding has two bedrooms.

'The existing bungalow has to be restored but there's sufficient vacant land for the new owner to build additional residential buildings,' said Knight Frank auctioneer Mary Sai, who is handling the sale of the property that has been offered by the administrator of the estate of Teo Koh Seng, also known as Teo Keng Seng.

Ms Sai drew a parallel between 781 Mountbatten Road and Simon Cheong's '5 Legends of Mountbatten' development.

Mr Cheong bought the 55,000 sq ft sprawling grounds on which Chansville - the former home of the late champion swimming trainer Chan Ah Kow - was located, at 745 Mountbatten Road, for $11.05 million in 2004.

He restored Chansville and built four more new bungalows on vacant space on the property.

All five bungalows have been sold. Chansville, with a 22,979 sq ft land area, fetched $13 million or $566 psf. The other four bungalows fetched between $5.1 million and $6.3 million, or $619 to $965 psf.

Chansville was sold this year while most of the other four houses were sold last year. All five bungalows are two-storeys high, have roof terraces and come with pools in lush landscaping.

The project was designed by award-winning architect Mok Wei Wei of W Architect.

781 Mountbatten Road is classified as an 'Early Bungalow' characterised by a simple facade and a building constructed on brick piers.The property, like Chansville, is one of just 15 bungalows along Mountbatten Road gazetted for conservation by the Urban Redevelopment Authority in 1993.

Knight Frank could not confirm just how old 781 Mountbatten Road is but an index of lands register shows that the earliest entry for the property, at the time with an address of 785 Grove Road, was in 1927.

Names of parties registered include Charles James Lacey, Robert Dunman, Meyer-Hyeem Sassoon, and Richard Lake.

Sometime in the 1950s, ownership of the bungalow passed into the hands of Mr Teo. The property is currently being sold by the administrator of his estate. Knight Frank's June 29 auction at Carlton Hotel begins at 2.30 pm.

Sunday Times: Hot spot: East Coast Road

2007-06-07T17:31:00.000+08:00

June 3, 2007

PROPERTY
Hot spot: East Coast Road
The Sunday Tims takes a look at this coveted residential district in the east.
Joyce Teo and Ng Sook Zhen walk you through this area.

Like on the PDF below to view the map of this area.
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AMBER ROAD
Sweeping away the old

A WAVE of collective sales is gradually sweeping old properties out of the area, to make room for high-style condos that will give the street a brand-new look. This enclave is becoming the hottest on East Coast Road as buyers snap up units at yet-to-be-completed , relatively large condos, jacking up the area's value.

Prices averaged $850 to $1,000 per sq ft (psf) in the first quarter, up 40 to 45 per cent from $600 to $700 psf a year ago, said consultancy CB Richard Ellis (CBRE).

Condos under construction include Wheelock Properties' 546-unit The Sea View; MCL Land's 400-unit The Esta; the 562-unit One Amber from United Industrial Corp and United Overseas Land; and Ho Bee's 42-unit Vertis.

The three large freehold condos have seen active sub-sales, said CBRE. They are popular for the location, facilities and well-known developers, said a consultant.

Recent deals for The Sea View were done near $1,000 psf on average. Buyers will soon have more choices. A new project is earmarked for the sites now housing Amber Lodge and Jin Fu Apartments. Voda Land bought these estates en bloc in a private treaty at an undisclosed price and aims to launch Amber Residences in about three months. It will be an 'upper mid-market' condo with 114 units in one 21-storey block, said Savills Singapore.

More condos will come when Far East Organization redevelops Amberville and Rose Garden, which it bought in collective sales last year. For now, while construction roars ahead, the existence of older estates like Rose Garden makes for a noisy juxtaposition of past and future.

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MARINE PARADE
Heart of the district with sea-front housing

MARINE Parade is the heart of the entire East Coast Road district and is a textbook example of how to develop reclaimed land. It brings together a popular shopping mall, schools and sea-front housing all within a linear stretch.

Public housing dominates, though older, large condos such as Mandarin Gardens and Neptune Court also enjoy the sea breeze and East Coast Park is just a stroll away. It is no wonder the HDB flats here, particularly those with sea views, have always commanded a premium.

And recently, they have benefited further from the robust activity in the private residential market, said CBRE. Prices of five-room flats hit $358 per sq ft (psf) or some $467,000 on average in the first quarter, up 13.5 per cent from a year ago.

This compares with a 7 to 8 per cent rise in prices of three- and four-room flats in the same period. A four-room flat costs about $334 or some $305,000 on average, up nearly 7 per cent from a year ago.

But when it comes to rental, the four-roomers seem to be the most sought after. Average monthly rents of four-roomers rose by a hefty 47 per cent to $1.47 psf in the first quarter. This compares with a 23 per cent rise to $1.62 psf for three-roomers and a 7 per cent rise to $1.19 psf for five-roomers, said CBRE.

Private home prices in the area have risen by 20 to 40 per cent to $700 to $800 psf over a 12-month period as of the first quarter, said CBRE. The area's newest large condo is the 99-year leasehold Cote D'Azur.

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KATONG
Oozing old-world charm

RUSTIC shophouses, good food and a strong Peranakan heritage make Katong a real gem in the East Coast area.

The housing developments are mostly low-rise, with shophouses and boutique condominiums the mainstay, although there are quaint colonial houses for lease along Kuo Chuan Avenue.

Apart from the old-world charm, there is 24/7 shopping at Cold Storage in Katong Mall. There are few new developments, though more may come as there have been several collective sale targets.

Breeze Apartments was sold en bloc and should become an 88-unit project while a 229-unit condo in Jago Close is also expected, said CBRE. Most of the properties here are small and rather old, so interest has not been very strong, with prices done in the past year or so at between $400 and $787 psf, said CBRE.

Developments such as Ceylon Crest and Katong Gardens transacted recently at about $540 to $550 psf on average. Others such as East Galleria and Bellezza @ Katong go for about $650 psf on average.

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ST PATRICK'S
Sleepy stretch enjoys new lease of life

IF YOU are looking for some peace and quiet in the East Coast locale, then the St Patrick's area might be just your cup of tea. The many boutique apartments, nestled alongside schools including St Patrick's Secondary School and CHIJ Katong Primary, enjoy a special serenity that even the construction work at Grand Duchess at St Patrick's and St Patrick's Loft cannot disrupt.

The sleepy area has seen three launches recently. One was the 37-unit St Patrick's Loft - marketed late last year at over $600 per sq ft (psf). Then came the fast sell-out of the 121-unit Grand Duchess, which created a stir. This project, which sold at $740 psf on average, further raised the area's value.

Just a year ago, average levels were at just below $500 psf. Five Grand Duchess sub-sales were done at $700 psf to $900 psf, said CB Richard Ellis (CBRE).

MCL Land's recently sold-out Tierra Vue rode on the success of Grand Duchess and started sales at $800 psf. One 1,270 sq ft unit was said to have been sold at $1,051 psf, a record for the area, said CBRE. More new projects are expected for the area.

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JOO CHIAT/TELOK KURAU
Steady stream of small projects

THE sleaze of Joo Chiat is often put in the spotlight but beyond the colourful nightspots, the area is a quiet residential zone dominated by low-rise boutique developments and terrace houses.

A sprinkling of amenities such as schools, a medical centre, a park and good food also make this a conducive residential district. Home prices rose to $600 to $700 per sq ft (psf) on average in the first quarter of the year, up from $450 to $550 psf a year ago, said CBRE.

There has been a steady stream of small apartments launched, with projects like Le Merritt selling for $650 psf this year. Last month, a 1,626 sq ft terrace house went for $1.2 million while a 2,190 sq ft semi-detached home went for $1.51 million. Sim Lian Land bought Wen Yuan Court, K Gardens and Leyuke Apartments last year, but will launch its new project for sale only next year.

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SIGLAP/FRANKEL
Cafes give quiet area some buzz

THE hub of activity in the otherwise homogeneous area of bungalows and semi-detached houses is the Siglap Road and East Coast Road junction. Siglap Shopping Centre and rows of cafes and eateries give the otherwise quiet area some buzz, upping the area's hip quotient.

With few new projects, Axis @ Siglap, a 40-unit boutique condo marketed earlier this year, sold out in a matter of weeks at an average price of nearly $800 per sq ft (psf). This was above the range of $600 to $700 psf for most properties in the area, Savills had said.

The strong demand is good news to developers who have bought sites in the area. Sing Holdings and a fund will redevelop Finland Gardens while Frasers Centrepoint will redevelop Flamingo Valley.

Prices for landed homes tend to vary widely, though they have moved up moderately. In May, a 4,700 sq ft bungalow on Siglap Road sold for $1.9 million while a 9,586 sq ft bungalow on the same stretch sold for $5 million.

Business Times: Tan Chin Tuan Mansion adds a luxury condo

2007-06-01T17:16:00.008+08:00

June 1, 2007

Tan Chin Tuan Mansion adds a luxury condo
12 of the 16 units in the 20-storey condo will be leased out
By ARTHUR SIM

(SINGAPORE) Tan Chin Tuan Mansion has been restored and redeveloped to include a luxury 20-storey condominium. But most of the units will only be for lease.

Four of the 16 units will be kept by the family of the late Tan Chin Tuan. Based on the current benchmark price of about $2,500 psf for Suites @ Cairnhill, the remaining 12 have a market value of about $120 million.

The property has been redeveloped by a business entity called Cairnhill Rock and Chew Gek Khim, granddaughter of Tan Chin Tuan. 'It has always been the intention of the private company to keep the entire building for sentimental and historical reasons,' she said.

The units are large at almost 4,000 sq ft each. Rents have not been fixed. Ms Chew said they will be benchmarked to market rates. 'But we will be very selective in our choice of tenants, given the small number of units for lease and the fact that they will be living in close proximity to my family members.

'The development is being marketed by Knight Frank and temporary occupation permit (TOP) is expected by mid-2007.

Leasing is not without its upside.

For Q1 2007, the official rental index (non-landed) increased 8 per cent quarter on quarter and 23 per cent year on year.

A good indicator of possible rents is the recently launched Orchard Scotts Residences by Far East Organization (FEO) nearby. A spokesman for FEO said monthly rents range from about $8,300 for a 538 sq ft unit to $30,000 for a 3,810 sq ft unit, including a range of services.

Orchard Scotts comprises three blocks. And one of these - or 206 of the 387 units in the whole development - is reserved as serviced residences.

Keppel Land is another developer that has held on to units to rent instead of sell. A Keppel Land spokesman said the 168 corporate residence units within the 969-unit Caribbean at Keppel Bay have been close to full occupancy since operations started in 2005.

Explaining its rationale, Keppel Land said: 'The residences were set aside to cater to the growing number of international travellers here, especially foreigners who are drawn to the world-class waterfront lifestyle we are offering.'

Keppel Land may consider renting units at its new Reflections at Keppel Bay too. Keppel Land said: 'We have successfully launched our first phase of Reflections at Keppel Bay and are planning for our second phase. As the completion of Reflections at Keppel Bay will take a few years, our options are open at this point in time.'

Straits Times: Property speculators: the 7 types among us

2007-06-01T17:16:00.007+08:00

June 1, 2007

FRIDAY MATTERS
Property speculators: the 7 types among us
By Chua Mui Hoong, Senior Writer

FEVER'S BACK...: Many people who buy property never intend to live in it. Instead, they view property as a speculative instrument.

LATELY, I have found myself sucked into an old hobby: scanning property advertisements compulsively, circling those that sound promising and chasing down the leads. I'm not a property speculator or investor. But I've been observing the property scene since the 1990s, and am always mildly infected when property fever hits town.

As an observer from the sidelines, I know the property speculators are back in action. The action has also filtered down, from the top-end luxury condo market, to the mass market, and is now reaching the Housing Board resale market.

Over the past couple of weeks, I've rung up many agents about the units they have on offer. Three times last weekend, I rang to inquire about HDB units advertised, only to be told they were already snapped up the same day the ad appeared. No wonder there's a spring in the steps of nearly every property agent.

The mystery of property fever in Singapore has always been why a population with 90 per cent already owning a home, should be so obsessed with property. There are many theories: that it's an 'Asian' thing; it's a 'Chinese' thing; it's due to scarcity of land in Singapore.

My addition to these theories is that buying property is rather like gambling, another obsession with many Singaporeans. You spot the right unit, you buy low, sell high - bingo, you make a big profit.

Many people who buy property never intend to live in it. Instead, they view property as a speculative instrument. Who are these speculators? Here's a completely unscientific snapshot, from stories of friends and friends of friends.

1. The speculator wannabe
THIS young executive joined others in the queue for a new development. He couldn't believe his luck when he got into the queue before units were sold out. He maxxed out his credit cards to put down the option money for a condominium.
When the time came to put down the downpayment a few weeks later, he considered borrowing to pay up, but then got cold feet. He lost several thousands in option money, but saved himself years of debt and worry.

2. Buy and hold
THEY spot properties with good value, make friends with the right agents and get invited to previews. Their strategy is to buy and hold for a few years, for capital gains.
Developments in districts 9, 10 and 11, and new hot spots like the financial district, are their choices.

3. The trader
A BUSINESSMAN bought into shophouses before they became hot properties and sold them for profit of a few million.
With a chronic shortage of office space in the Central Business District, savvy investors will be looking at how to maximise gains in that sector.

4. Consortium approach
THEY get together with a group of trusted friends to pool money and risks. Property agents with the time and information to sniff out the best deals, may form their own consortiums with their friends.
Strategies may differ: from longer-term holds to shorter-term punts of a few properties a year. They may buy iconic developments like Marina Bay Residences, banking on its rise in value in two years' time when the integrated resorts open. Another group may specialise in suburban 99-year-old condominiums, figuring there is still some upside in price in that segment.

5. Original is best
SOME 'specuvestors' look out for old landed homes in original condition which they can buy cheap. Many buyers shun such properties as they don't want to spend time and money renovating an old property.
With a smaller potential market of buyers, the price of such properties is often lower than expected for a home in a particular location. Smart agents tie up with architects, interior decorators and renovation contractors for good deals to rebuild homes.
They buy an old place, refurbish it and sell it quickly for a profit. In a rising market, they may hold the property and wait for prices to rise before letting it go.
A variation of this group are those who buy old condos they think have good potential for en bloc redevelopment.

6. The Johnny-come- lately
THIS group didn't have the foresight to start hunting and accumulating assets last year, before the property boom really took off. Better late than never, they reckon, and they want a piece of the property action before it's too late. Their theory is that the market may be high now, but there's still some upside potential in many areas. The trick is to identify the 'undervalued' properties and make a bid for them, and then hope to sell them off a year or two later for a profit when the market climbs further. The problem is that owners are fully aware of the bullish state of the market, and asking prices have accordingly soared. Many owners in fact are treating their properties like futures, asking prices they think the property can fetch a few months down the road, not today's.

7. The armchair speculator
THESE are people like me, who follow the property market and spot trends they don't act on. Two years ago, I could have told anyone who asked that Newton/Novena was a good buy at about $800 psf. A year ago, I knew those old River Valley condos would rise in value.
Alas, I never put my money where my hunches were. Now? I think Bukit Timah is undervalued. Will I plonk down $1 million I don't have on that bet? It's academic. Armchair speculators don't actually like to risk their money on anything. They just like the satisfaction of saying: Mmm, I could have told you so.

Business Times: Property cycles remain alive and well

2007-06-01T17:16:00.006+08:00

May 31, 2007

Property cycles remain alive and well

THE property market's ascent is welcome news to anyone who has lived through the boom and painful bust cycle of the 1990s. The relief would be acute for those who endured the black hole that a mortgaged property in negative equity would have put them. How long can this bull cycle last? For now, the signs are encouraging.

Plans to turn Singapore into a tourist capital, most visibly headlined by the billion dollar integrated resorts projects; coupled with the ongoing push to become a hub for private wealth management, higher education and various other initiatives are set to unleash structural changes that provide a solid underpinning for property values. These changes include new jobs and new expatriate residents who will be looking for homes.

After all, Singapore's home prices and rents, even with the recent spike, still lag those of developed markets.

The financial backdrop is also conducive. A thriving economy, relatively low interest rates and a buoyant stock market are conspiring to make risk taking seem a pretty easy proposition. The appetite for leverage, in particular, is growing, and recent data on home loans attest to this.

In March, housing loans grew 3.6 per cent, the strongest pace in a year. The Credit Bureau's preliminary data show a trend towards larger loans and banks report a rise in the number applying for second or third mortgages.

For those who have invested and still are investing in property, the going looks good. Rising rents can easily cover loan instalments, and a reasonable holding period can produce profits in the triple digits. But those who think that 'this time is different' could rue their words. There are clearly a number of risks that could mar the Goldilocks scenario, even if these seem remote for now.

Rising interest rates and job uncertainty can easily cause a heavily geared balance sheet to come undone. Risk management is key, particularly for those who do not have the resources to hold the properties in the event of a downturn.

A substantial number is likely to have bought uncompleted properties on deferred payment schemes and will be looking for a profitable exit. Timing will be critical, and yet timing is something even veteran fund managers get wrong. This is particularly so for individuals who tend to develop attachments to their investments.

The onus is then on individuals to exercise restraint. In this context, the recent move by the government to improve the transparency of the property market will be critical, as individuals count on publicly available data for their decisions.

At the moment, developers often highlight record prices of homes sold, when average prices could present a far different picture. Details are currently being worked out by the Urban Redevelopment Authority.

Meanwhile, individuals would do well to remember that cycles are alive and recurring, even if the good times seem extended. Throwing prudence to the wind risks a recurrence of the black hole of negative equity, a prospect that is surely to be avoided.

Business Times: STI may reach near 4,200-level by year-end: Credit Suisse

2007-06-01T17:16:00.005+08:00

May 30, 2007

STI may reach near 4,200-level by year-end: Credit SuisseReport sees all 3 S'pore banks outperforming broader market
By CONRAD TAN

THE Singapore stock market is expected to grow by a further 19 per cent by year-end, driven by strong corporate earnings amid robust growth in the broader economy, Credit Suisse said in a report this week.

Although the benchmark Straits Times Index (STI) has risen some 18 per cent since the start of the year and hit an all-time high just last week, Credit Suisse said its own estimates suggest that valuations for the Singapore market 'are not excessive, compared to historical levels'. 'In particular, we remain positive on the Singapore banks,' it said. It expects the STI, which ended 0.4 per cent higher at 3,527.08 points yesterday, to reach 4,194 points by year-end.

The report said the strong performance in the index has been driven by the improving economic environment, strong earnings by companies, and rising liquidity in the capital markets.

'In our view, earnings momentum for Singapore should remain strong, with economic growth projected to remain robust,' said Credit Suisse. It expects corporate earnings here to grow at an average rate of 13 per cent a year over the next three years.

Aggressive corporate restructuring, capital management, overseas expansion and earnings growth have improved the returns generated by firms here in recent years, justifying higher valuations for their shares, it said.

Given its bullish view of the Singapore economy, Credit Suisse said it continues to favour stocks that stand to benefit from economic growth here, especially the three Singapore-listed banking groups. It expects all three to outperform the broader stock market.

'UOB remains our top pick on a 12-month view,' it said, citing high projected earnings growth for the bank. UOB's share price ended 1.3 per cent higher at $23.40 yesterday, up 20.6 per cent from the start of the year.

'On a six- to nine-month view, we advise a switch from OCBC into DBS,' added Credit Suisse. DBS' share price has risen just 5.3 per cent this year compared to 24 per cent for OCBC, based on yesterday's closing prices of $23.80 for DBS and $9.55 for OCBC.

Although Credit Suisse analyst Sanjay Jain expects DBS' net interest margin - the difference between what the bank earns on loans and pays on deposits - to narrow later this year, he believes its current share price already reflects such concerns. 'DBS is the cheapest Singapore bank,' he wrote.

But Credit Suisse also said it expects the key three-month Singapore interbank offered rate (Sibor) to remain low for now. Last week, the rate - which affects the three banks' net interest margins because most of their Sing-dollar corporate and small business loans are linked to it - fell to its lowest level since September 2005.

'The earliest we expect a pick-up in the three-month Sibor is Q3 2007,' said Credit Suisse.

Macquarie Group's Singapore-based analysts said in a report last week that interest margins would determine how the banks fare in the coming quarters. Following the release of the banks' results earlier this month, 'our order of preference is DBS, UOB and OCBC', said Macquarie.

In its report yesterday, Credit Suisse also recommended land transport operator ComfortDelGro, contract manufacturer Hi-P International and school operator Raffles Education Corp.

It expects ComfortDelGro to benefit from efforts by the government to promote the use of public transport, and its growing overseas operations, and Hi-P to see higher revenue from new customers. Raffles, meanwhile, is expected to see its student enrolment triple by end-2009 with recent investments in China, driving up its earnings.

Straits Times: Condo-like public housing: $170m bid for 2nd site

2007-06-01T17:16:00.004+08:00

May 30, 2007

Condo-like public housing: $170m bid for 2nd site
Top bid from group linked to Straits Construction for 1.8ha Boon Keng Road site
By Tan Hui Yee, Housing Correspondent

A CONSORTIUM linked to established contractor Straits Construction yesterday emerged tops in the tender for the second site for public housing to be built and sold by private developers.

The group, comprising Straits' subsidiary Hoi Hup Realty, Sunway Concrete Products and Oriental Worldwide Investments, submitted the highest bid - of $170.2 million - among six parties for the 1.8ha site in Boon Keng Road.

The next highest bid of $128.2 million was submitted by Sim Lian Land, which is developing the first such project in Tampines called The Premiere@Tampines. The other bidders were Chng Gim Huat, Boon Keng Development, CEL Development and a team comprising SP Development and Greatearth Developments.

The site, which consultants say can accommodate an estimated 600 flats, comes with a 103-year lease. It was put up for sale in March after the pilot Tampines project drew almost 6,000 applications for its 616 units.

Under this particular public housing programme, private developers are free to design, build, price and sell the flats. But they can sell the homes to only people who qualify for public housing.

This means that they have to be bought by family units, the ethnic quota has to be maintained, and the buyers' monthly household income cannot exceed $8,000.

The Housing Board will evaluate the tender and is expected to announce the successful bidder in the next two weeks. The eventual winner will have to set aside at least 30 per cent of the flats for four-room or smaller units.

The Premiere was known for its condominium- like features - generous balconies, floor-to-ceiling wardrobes and air-conditioning units - which set it apart from typical public housing developments. The general manager of Straits Construction, Mr Kenneth Loo, told The Straits Times yesterday that his company also plans to introduce 'condo-like' flats at the Boon Keng site, with a 'bit more refinement' than the ones in the Tampines project.

Straits Times: Changi's Terminal 3 to start ops on Jan 9

2007-06-01T17:16:00.003+08:00

May 30, 2007

Changi's Terminal 3 to start ops on Jan 9
By Karamjit Kaur, Aviation Correspondent

CHANGI Airport's new $1.75 billion Terminal 3 is completed. It will start operations on Jan 9, but before that, rigorous testing and final preparations will take place.

Over the next seven months, airlines, airport agencies, ground handlers and shop tenants will move in to the new terminal, built to handle 22 million passengers a year.

Flight trials will start in July, and the public can look forward to an open house later in the year.

Announcing the Jan 9 opening date after touring the terminal yesterday was Transport Minister Raymond Lim. He said: 'This is an important milestone we have achieved. Terminal 3 will help us to strengthen and consolidate our regional hub position and at the same time enhance customer experience.'

At 380,000 sq m, Terminal 3 is Changi's biggest. Terminal 2 is 358,000 sq m, and Terminal 1, just over 280,000 sq m. Together, all three terminals will allow Changi to handle about 70 million passengers a year.

This will keep it ahead of regional airports like Hong Kong's Chek Lap Kok, which handles 45 million passengers, and in step with emerging air hubs like Dubai International Airport, which also plans for 70 million passengers by next year.

To out-do the competition, T3 will offer visitors 100 shops and more than 30 food and beverage outlets, as well as a 350-room airport hotel with a swimming pool, restaurants, conference rooms and a spa, among other facilities. This is in addition to the combined 160 shops and 80 food outlets in T1 and T2.

T3's anchor tenant will be Singapore Airlines, which plans to move more than half its operations from Terminal 2, where it is currently housed. Passengers who have to move between terminals to catch connecting flights can transfer via the airport's new People Mover System.

The $135 million system, comprising 6.5km of separate train tracks running through the restricted and public areas, will take passengers between Terminals 2 and 3 in three minutes.

Another train will run between Terminals 1 and 3. T3 boasts unique design features, including skylights on the 300m by 200m roof which are equipped with 'intelligent' reflectors that let in light but block out heat depending on the amount of sunlight and cloud cover. Artificial lights come on automatically when necessary.

At yesterday's event, Mr Lim was asked for an update on Singapore-Malaysia air talks. He said that when transport officials from both sides met earlier this month, there was consensus that air links between both countries should be expanded, but there was no talk of a possible time frame for the opening. Such details will be ironed out during the next round of official talks, which The Straits Times understands is likely to be in September, at the earliest.

On conflicting reports in Malaysia recently on the subject, he said: 'Different people say different things, so I think it is best to wait for the formal talks itself.' Malaysia's Deputy Prime Minister Datuk Seri Najib Tun Razak said in Kuala Lumpur last week that the lucrative Singapore-Kuala Lumpur route is unlikely to open up before the Asean deadline of unrestricted capital-to-capital flights by the end of next year. Two days later, Malaysian budget carrier AirAsia chief Tony Fernandes said at a conference in Singapore that he remains optimistic the route will be opened to low-cost airlines - possibly as soon as September.

Business Times: Expression-of-interest may get Tulip Garden higher sale price

2007-06-01T17:16:00.002+08:00

May 29, 2007

Expression-of- interest may get Tulip Garden higher sale price
By ARTHUR SIM

COLLECTIVE sale via the 'expression- of-interest' route can help owners seek better prices for their homes as evidenced by an almost 40 per cent increase in the asking price for Tulip Garden.

The condominium, which is at the junction of Holland Road and Farrer Road, was put on the market through an expression-of- interest exercise in January with an indicative price of $900 per square foot per plot ratio (psf ppr), including development charge.

The 316,709 sq ft site was, however, relaunched yesterday with the new indicative price of $1,250 psf ppr, including development charge.

Based on a plot ratio of 1.6 and a maximum gross floor area of 506,734.4 sq ft, the site could fetch over $633 million.

Steven Ming, director of investment sales at Savills Singapore, which is marketing the site, said: 'We received pretty attractive offers - what would had been benchmark prices for the location. Unfortunately, we were not able to consider them further as we did not have the requisite 80 per cent mandate to do so.'

Heartened by earlier expressions of interest though, 80 per cent of owners at Tulip Garden have now agreed to proceed with a collective sale if its target price is met.

Savills also remains confident that the new, higher, indicative prices could be met. This, despite some developers becoming increasingly wary of owners' price expectations.

'It's a different Singapore today and developers still remain bullish about prospects for the upper end residential sector. For as long as they continue to sell and get good prices for their products, it is unlikely that they will find prices getting too high,' said Mr Ming.

Last month, Guocoland bought neighbouring Leedon Heights for $835 million or about $1,062 psf ppr, including a development charge.

Next door, Farrer Court was put on the market this month for about $1.5 billion. Including development charge and topping up the 99-year lease, the price works out to be around $850 psf ppr.

It was also reported this month that the asking price for Farrer Court was $900 million three months earlier.

There appears to be sufficient demand for prime sites. BT understands that as many as five developers had earlier expressed interest in Tulip Garden.

Business Times: Condo on Hotel Asia site to boast parking in each unit

2007-06-01T17:16:00.001+08:00

May 29, 2007

Condo on Hotel Asia site to boast parking in each unit
By ARTHUR SIM

LET it not be said that Singapore is behind on any of the latest property trends.

Hotel Asia, which will be redeveloped into a 30-storey luxury condominium, will have private car-parking in each unit, the most recent fad in luxury high-rise homes. The price is around $4,000 psf.

A new entrant to the Singapore market, Hayden Properties, bought Hotel Asia from the Ascott Group only in February for $147 million.

Ascott in turn bought Hotel Asia in July 2005 for $108 million, including $4.3 million for the hotel management company.

Hayden Properties is a joint venture set up in October 2006 between Singapore-based KOP Capital Pte Ltd (previously known as Koh Ong & Partners Management Services) and Emirates Tarian Pte Ltd.

Hayden Properties will also redevelop Horizon View in Cairnhill. Horizon View was acquired through a collective sale for $113 million in October 2006. Details are expected soon.

There is no name yet for the Hotel Asia project, although the development could be launched as early as the end of this year.

Hayden Properties director Leny Suparman said that the project would be the world's tallest development with integral car porches. The property will have 54 condominium units and two penthouses. Units will have an average of two car porches and additional basement car park space.

The architect for the new development is Singapore firm Eco.id Architect and Design Consultancy which recently won the Best Design and Architecture Award 2007 for Starwood Group's W Retreat & Spa on Fesdu Island in the Maldives.

Emirates Tarian is a subsidiary investment company of the Emirates Investment Group (EIG) which has other real estate investments including Palazzo Versace Gold Coast, Palazzo Versace Dubai and Emirates Financial Towers.

In an interview late last year, EIG chairman Sheikh Tariq bin Faisal Al Qassimi said that it was at a 'crucial stage' of discussions to conclude an investment here, estimated to be in the region of at least $1 billion. Sources had said then that it could be an ultra-luxurious Versace hotel.

BT: Horizon Towers dispute goes before strata board for mediation today

2007-06-01T17:16:00.000+08:00

May 29, 2007

Horizon Towers dispute goes before strata board for mediation today
Some owners want to remove sales committee
By SIOW LI SEN

(SINGAPORE) A mediation hearing before the Strata Titles Board opens today, with the task of trying to bring together warring neighbours who have sold their apartments at Horizon Towers on Leonie Hill en bloc for $500 million.

Far from coming together, the various sides have hired top-notch lawyers to fight for them. The mediation is set to last for two days, and if there is no agreement possible, the case will go for a full hearing before the Strata Titles Board.

The dispute goes back to January, when almost 84 per cent of owners signed the agreement to sell Horizon Towers to Hotel Properties and two foreign funds for $500 million. That meets the legal requirement of more than 80 per cent of owners assenting to a sale in the case of properties more than 10 years old. It means each owner of the condo's 199 units will get about $2.3 million, and the 11 penthouse owners will receive sums of at least $4 million, rising to $6.28 million for the largest unit, of 890 sq m.

A group of 42 unhappy owners who had consented to the sale has called for an extraordinary general meeting (EGM) to remove the sales committee which negotiated and finalised the collective sale. The 42 are calling for a new sales committee to be elected, and they have hired the Wong Partnership law firm to advise them.

A Wong Partnership spokesman confirmed to BT that 'it is advising some of the subsidiary owners who would like the sales committee changed'. The 42 say they are not satisfied with the sales committee's performance, and complain about the committee not canvassing the views of the rest of the owners prior to the sale, despite the improved market conditions. The unhappy group members pointed out that nine months had passed from the time the sales committee had been elected to negotiate the sale and its eventual agreement.

'Before signing the option, it would be in their (sales committee) interests as well, and since there was a window of opportunity, they could have held a meeting with the owners again and see if we could have concluded a better agreement,' said one of the 42 owners. But law firm Drew & Napier, which is handling the collective sale of Horizon Towers, has written a letter to advise the owners that an EGM would not have the power to remove the current sales committee.

And even if a new sales committee is appointed, nothing significant can be or needs to be done by the new sales committee which will have a bearing on the proceedings before the Strata Title Board, the lawyers' letter said.

Jimmy Yim, senior counsel at Drew & Napier, told BT that in his opinion, an EGM does not have the power to remove the sales committee and since it is now at an advanced stage, there is 'little more the sales committee can do'.

It is not these two sides alone which need mediation. There are those who have always stood out against the sale, and three of them, including one penthouse owner, have hired Tan Kok Quan Partnership to represent them at the hearing.

Another penthouse owner, Wong Siew Fang, who has been bitterly opposed to the sale from the very beginning, is doing without lawyers and will be presenting her own case at the hearing.

Ms Wong said she will argue that the apportionment of the sales proceeds was not equitable.

'When you buy property, you pay according to area,' said Ms Wong who bought her home in 1983. She will get $4 million for her 493 sq m penthouse while those owning 220 sq m will get $2.3 million. Many of the penthouse owners are resigned to their plight being disregarded just because they are seen as millionaires.

But one question has been answered already. One bit of legal advice sought was whether going against an en bloc sale would somehow be construed as being 'anti Singapore' which could in some way see some of those involved lose their permanent residence status.

They have been instructed that in Singapore, 'you're entitled to exercise your commercial rights'.

Straits Times: Hefty rents force expats here to downgrade or buy

2007-05-28T12:51:00.008+08:00

May 28, 2007

Hefty rents force expats here to downgrade or buy
Some landlords want hikes of 100% or more to renew leases
By Joyce Teo, Property Correspondent

RENTS of private homes are rising so fast that some expatriates are being forced out of prime areas, sometimes into HDB flats, while others are choosing to buy instead.

Expats have been complaining about soaring rents since late last year, with some facing rises of 50 to 100 per cent or more when their leases come up for renewal.

'I entered this (business) at the end of 1993 and I have never seen such huge rental increases,' said leasing agent Raymond Han. Savills Singapore's director of corporate real estate, Mr Simon Hill, said most of his firm's recent deals in districts 9, 10 and 11 were at significantly higher rental levels.

'Certainly, there were no deals done at below a 50 per cent rise in rent,' said Mr Hill. An Australian who faced a 66 per cent rent hike for his 1,250 sq ft apartment in Newton recently moved into a HDB flat, preferring that to a condo unit in poor condition. He now pays $1,500 for a five-room flat in Ang Mo Kio, well under the $1,800 he was paying on his old lease.

'There is a perception that expats come here on huge salary packages,' said the expat, who is a teacher. 'Many are lower-rank professionals like me. So this rental issue just doesn't come down to a need to revise salary packages.' He said his colleagues are also reporting exorbitant rent increases. 'But our rental assistance has increased by only $100 or $200 a month,' he added.

Official data shows that rents of non-landed homes rose by 8.1 per cent in the first quarter this year, up from a 5.3 per cent rise in the last three months of 2006. Overall, residential rents remain about 29 per cent below the 1996 peak.

But market watchers say the data reflects the situation in the whole market, not just recent renewals or deals in coveted condos and prime areas. Asking rents at Ardmore Park in the Orchard Road area, for instance, have shot up to between $17,000 and $18,000, from $14,000 to $15,000 a year or two ago. But some tenants with ongoing leases at the posh estate could still be paying as little as $12,000 a month.

'I would say the huge increases started only in January,' said Mr Han. He is helping an Australian banker find another home, after the expat's landlord demanded $6,500 a month more for his four-bedroom bungalow in Bukit Timah. That would have meant a monthly rent of $18,000.

The hefty rises have also prompted some frustrated expats to buy instead of rent, said property agents. Housewife Cara Killham and her husband, a teacher, chose to buy after rental demands for their Clementi condo became too extreme. 'The rise in rentals got us looking for a place. That was the tipping point,' said Ms Killham, a British citizen who came here eight years ago. The couple recently decided on a unit of about 1,600 sq ft in Dairy Farm Estate on Dairy Farm Road. 'Our mortgage and condo fees would still be less than the monthly rent,' she said.

Mr Hill of Savills Singapore told The Straits Times: 'What we are seeing is a massive resistance building against the rental increase. 'Either companies won't bring in so many expats, or expats will move out of districts 9, 10 and 11.' Yet, there are still expats, mostly those new to Singapore, willing to take up the new rental offers, agents said.

Apart from strong demand, rents have also risen as a result of tight supply caused by the many collective sales. It means a double whammy for companies, as rents for quality office space have risen sharply as well. 'Finding a new place is very difficult,' said an expat in the technology sector. 'We have made a number of offers and had cheques cashed, only to be told that the landlords had changed their minds.' 'It has been very stressful, and has forced us to reconsider our future in Singapore.'

Business Times: Wheelock to set up art gallery at Scotts Square site

2007-05-28T12:51:00.007+08:00

May 28, 2007

Wheelock to set up art gallery at Scotts Square site
By UMA SHANKARI

INSTEAD of the usual construction hoardings, Wheelock Properties is setting up an art gallery to promote contemporary Singapore artists at the site where it is building Scotts Square, a luxury 43-storey residential and retail development.

The Wheelock Art Gallery, situated along the Scotts Road shopping belt, will feature 12 exhibitions by mainly Singaporean artists for two years starting from Aug 17 this year. Situated on the ground level with access to the pedestrian walkway between the Grand Hyatt Hotel and Marriot Hotel, the gallery will be open to the public free.

'We want to make art more accessible to the man-in-the-street, ' said Tan Bee Kim, an executive director at Wheelock. 'Instead of just having an interesting and attractive hoarding while Scotts Square is being built, as developer of this luxury residential and retail project, we decided on a community project that promotes local art.'

The project also supports the Urban Redevelopment Authority's efforts to introduce art into the Orchard and Scotts Roads shopping belt, extending the art and cultural district from the Bras Basah area, Ms Tan added.

Wheelock has appointed a team of three curators on the project. The inaugural exhibition will feature the work of Singaporean urban artist Zul Othman @ Zero, called Ephemural Space. This will be followed by a showcase of Ketna Patel's Asia Pop, then an installation by Lim Shing Ee, a Singapore artist now based in Tokyo. Nine other exhibitions will feature largely Singapore artists, with a handful from other South-east Asian and Asian countries.

'Through the two years, we will be commissioning contemporary artists from Singapore and the region to make exciting new works with a 'shopping' theme', said Joanna Lee, the artistic director of the whole project. 'Many of the artworks will relate to popular culture and the lifestyle in the area.'

Business Times: Cho Yaw's firms are top en bloc buyers

2007-05-28T12:51:00.006+08:00

May 28, 2007

Cho Yaw's firms are top en bloc buyers
UOL, Kheng Leong, UIC, SingLand have spent $1.84b since 2005: study
By KALPANA RASHIWALA

(SINGAPORE) Companies controlled by Wee Cho Yaw have been the biggest buyers of collective sale sites since 2005.

The companies - UOL Group, Kheng Leong, United Industrial Corporation and Singapore Land - have bought a combined 2.3 million sq ft of land through collective sales for a total $1.84 billion between Jan 1, 2005 and May 15, 2007, according to a study by Jones Lang LaSalle.

And that did not even include UIC's $600 million acquisition of UIC Building on Shenton Way under a collective sale last month as JLL's study focused on collective sales of developments that involved a residential component.

In any case, market watchers note that UIC already owned 78.8 per cent of the building even before the en bloc sale was sealed.

Other big land buyers in the latest wave of en bloc sales include property magnate Ng Teng Fong's Far East Organization, which picked up around 1.7 million sq ft of land through en bloc sales for $1.25 billion, and Frasers Centrepoint, which clinched 1.2 million sq ft costing $845 million.

Hong Leong Group, including listed City Developments, snapped up around 1.13 million sq ft for $1.7 billion. GuocoLand was not far behind with 1.06 million sq ft land bought for $1.42 billion.

Jones Lang LaSalle's regional director and head of investments, Lui Seng Fatt, points out that these top five buyers - Wee Cho Yaw-controlled entities, Hong Leong Group, Far East, Frasers Centrepoint and GuocoLand - together bought 7.4 million sq ft or slightly over 50 per cent of the nearly 14 million sq ft of land that changed hands through collective sales during the period of study. 'This reflects the big players continue to be confident in the Singapore property market,' Mr Lui said.

Within Mr Wee's stable of companies, UOL was the biggest buyer, with 944,011 sq ft of land costing $819 million, followed by Kheng Leong, with 623,428 sq ft costing $368 million. UIC spent $238 million buying 445,363 sq ft of land through en bloc sales while the figures for SingLand were 281,756 sq ft and $419 million.

An industry observer noted that UOL was a significant residential property developer in the Singapore market back in the 1970s and 1980s although it missed out on the 1990s property bull run.

'This time round, it looks like they want to make sure they don't miss out,' he added.

What some analysts also noted is that with the exception of Nassim Park, the collective sale sites that the Wee-controlled companies are buying are mostly not in the super-luxury prime locations.

'UOL, for instance is buying mostly mid-upper type sites in central locations like Novena and Bukit Merah/Kim Tian that they are familiar with,' said a market watcher. 'That's probably where stable growth will be well supported from demand from en bloc sellers looking for replacement homes - rather than the high-end where the market has gone a little crazy,' he added.

City Developments has taken a liking for the Balestier/Thomson area in recent months, having acquired a large tract of land there through collective sales like Lock Cho Apartments, Concorde Residences, The Albany and Thomson Mansions.

'This helps provide some balance to their landbank, which also includes some high-end acquisitions earlier like Lucky Tower at Grange Road and Futura at Leonie Hill Road,' an analyst notes.

And as high-end residential prices have shot up sharply, it makes sense for developers to reduce their risk profile by increasing their exposure to the upper-mid market which may be less risky, some industry players reckon.

The $1.7 billion that Hong Leong Group has invested in collective sale sites in the Jan 1, 2005 to May 15, 2007 period places it in second spot going by dollar investment, after the $1.8 billion chalked up by entities controlled by Mr Wee.

Other big buyers included CapitaLand, with 600,588 sq ft costing $563 million, Ho Bee, which picked up 452,699 sq ft for $654 million, and SC Global, which has invested $648 million in two locations - Paterson Hill and Cairnhill Circle.

JLL's analysis also shows that nearly 30 per cent of the $16.2 billion total in collective sale deals transacted during the study period involved acquisitions by joint ventures. Going by land area, too, the 4.3 million sq ft bought by joint ventures reflected roughly 31 per cent of the nearly 14 million sq ft of en bloc sale sites that changed hands during the period.

For acquisitions made by joint ventures, JLL has split the partners' proportionate shares of site area and investment to arrive at the numbers in the study.

Sunday Times: He sets aside 3 years' worth of mortgage payments

2007-05-28T12:51:00.005+08:00

May 27, 2007

He sets aside 3 years' worth of mortgage payments

MR S. Cai, 50, sleeps soundly every night even though he has taken on two mortgages totalling more than $1.3 million after snapping up two investment properties recently.

The businessman, who is 'very bullish' on the property market, has sold most of his share portfolio and is ploughing a considerable sum, including savings, into property. But he breezily declares he 'wouldn't lose a wink of sleep even if the market crashed'. This is because he swears by what he calls the 'first rule of property investing' - ensure you do not overstretch yourself.

'Generally, people should keep aside enough cash to cover one year's worth of mortgage payments. But I set aside three years' worth just to play it safe,' says Mr Cai, who runs a construction firm and two bakeries. Banks were still willing to grant him approval for his second home loan not just because he earns a six-digit annual salary, but also because he has more than enough cash stowed away for a rainy day.

Mr Cai, who lives in an HDB executive flat, took out a $350,000 loan to buy an apartment at Pearl Bank near Chinatown in September last year. Two weeks ago, he zoomed in on an old apartment in Goodwill Mansions in Balestier requiring an extra home loan. He has applied for a loan that covers 80 per cent of the valuation of the unit, but declined to name the total amount.

These two investments may not have the speculative appeal of high-end units in Marina Bay, but they caught Mr Cai's eye because of their 'attractive rental yield and potential for collective sales'. 'The rental yields are easily 4.5 per cent, even in bad times, so they will cover interest payments.

For the Pearl Bank unit, which has a higher potential of going en bloc, I applied for a loan that has a one-year penalty, so that I would not have to pay as much interest.'

Sunday Times: Only 35 and holding 2 home loans worth $1.2m

2007-05-28T12:51:00.004+08:00

May 27, 2007

Only 35 and holding 2 home loans worth $1.2m

MR PETER Seow, 35, is convinced he is young enough to risk it all on the current property market boom - even if it means chalking up a debt of $1.2 million.

Last month, he took out a second loan of $600,000 to buy a freehold four-room condominium in East Coast, hoping to 'make big bucks in a few years'. His first loan is for a three-room condo in the Thomson area.

The engineer, who works in a multinational firm, acknowledges he has a relatively modest annual income 'in the high five digits'. 'I was initially worried I would not get my second loan approved because I heard from my banker friends that banks usually grant loans only to those with six-figure incomes,' he said.

But he also had trump cards that convinced the bank to grant him the much-needed mortgage - his youth, clean bill of credit health and a handy stash of cash. 'Since I am 35, I am able to stretch the loan over 30 years so that I can pay a smaller loan instalment each month,' he said.

He had to fork out several thousand dollars to refurbish his condo unit, but hopes to use the monthly rental income of under $2,500 a month to cover his interest payments in future. He also paid up his car and personal loans, as well as all his credit card bills, before applying for the loan.

This means his income is set aside to cover only living expenses and the home loans. Mr Seow also has combined CPF and bank savings with his wife of $100,000. Part of this came from his 14-month bonus and unit trust investments. 'I was pleasantly surprised I didn't have any difficulty getting the loan. The economy is doing well so perhaps the banks are also more willing to lend even to middle-income people like me.'

Sunday Times: Can you afford that second home loan?

2007-05-28T12:51:00.003+08:00

May 27, 2007

Can you afford that second home loan?
Before you jump on the red-hot property-investing bandwagon, know what criteria banks look at when granting a second mortgage
By FINANCE REPORTER, Grace Ng

WHEN Mr Andrew Ang, a manager in his 40s, went around the banks last month scouting for a second home loan, for an investment property, he was surprised to discover that 'everyone and his mother-in-law' seemed to be doing the same.

'I bumped into so many people - my army buddies, colleagues, even my own mother-in-law - who were all asking if they qualified for another home loan,' he said, and laughed.

The reason is simple. The dazzling property market rebound has enticed growing numbers of buyers into snapping up a second or even third home for investment.

These investors had initially focused on the higher-end districts 9,10 and 11, but interest has spread to other areas, including East Coast, Newton, Meyer Road and Thomson in recent months, said Mr Tan Chia Seng, Citibank's business director.

These buyers are seeking properties with a good rental yield as well as the potential for a collective sale - or one-off sale - at a tidy profit if the property boom is sustained. Figures from Credit Bureau Singapore reflect this trend: The number of home owners with at least two home loans more than doubled to 41,078 as at March from 19,901 two years earlier.

Banks such as United Overseas Bank, DBS Bank and Standard Chartered Bank (Stanchart) have noticed more customers seeking second mortgages lately. Citibank has seen one in 10 mortgage customers apply for a second home loan, for a second property. Most of these borrowers tend to be higher-income customers with comfortable six-figure annual salaries, say banks. So they can easily meet the requirements for a second or third home loan.

But those in the middle-income brackets, such as Mr Ang, have also been swept up in the investment property buzz, and are knocking on banks' doors for a second home loan as well. Financial advisers urge caution when making such a major financial commitment.

'Overstretching your financial limits can be disastrous. A property correction can potentially lead to bankruptcy,' warned Ms Tang Yin Fon of independent financial advisory firm Providend.

A borrower should ensure that his total loans do not exceed 50 per cent of his total assets, which include salary, savings and equities. Ms Elaine Heng, Stanchart's general manager for mortgage and car loans, advised customers to consider four factors before committing to a home loan.

They are: employment stability, current cash flow, long-term wealth management goals and view on the long-term interest rate environment. Borrowers may also wish to 'maintain a surplus or savings buffer in your Central Provident Fund account to service one to two years of monthly instalments' in case of an unforeseen temporary financial crunch, said Mr Koh Kar Siong, DBS' head of home loans.

And of course, having ensured that they have the financial muscle to handle a second or third home loan, borrowers need to cross another hurdle - getting approval from the banks. What banks look for

* Repayment ability
The key factor that banks look at is the customer's debt servicing ratio, said Stanchart's Ms Heng. This refers to the customer's ability to service all his loans, which include existing home loans, car and personal loans, as well as credit cards. The ratio that banks accept normally ranges from 40 to 60 per cent, said DBS' Mr Koh. This represents the proportion of a borrower's monthly income taken up by total monthly loan payments. Income may include rental from investment property.

* Loan amount
Banks also assess the loan amount that they can grant to customers by considering the valuation of the investment property. They use a measure called a loan to valuation ratio: the home loan value divided by the property valuation. Banks say they typically do not grant loans of more than 80 per cent of an investment property's value.

* Steps you can take
There are some steps that you, the borrower, can take to endear yourself to the bank to get your investment home loan approved without too much hassle. Here are some tips to boost your chances:

* Keep debt servicing ratio at or below 50 per cent
If you have enough cash, you can choose to pay off your car loan, and wipe your slate clean in terms of personal loans and credit cards, said Mr Dennis Ng of mortgage consultancy portal www.HousingLoanSG. com. This may boost your chances of getting approval for a higher loan value even if your income is relatively low.

* Maintain a good credit history
Stanchart's Ms Heng noted that banks assess customers' credit reports over the previous 12 months or longer, to find out if customers pay their credit card bills and monthly mortgage instalments on time. A good credit history over the previous 12 months is a plus factor when the bank is considering whether to grant a second loan, said Citibank's Mr Tan.

* Show a commitment to repay
One way to show your commitment to repaying your mortgage is to opt for a shorter loan tenure than you are entitled to, said Mr Koh. This may signal that you are prepared to pay up the principal sum as well as the interest on your property, that you are not just servicing the interest until the market is hot enough to allow you to sell off your unit. Also, if you feel comfortable doing so, tell the bank how much you have squirrelled away in your CPF accounts, unit trusts and bank savings accounts. This may reassure the bank that you have enough funds to pay your instalments if rental income from your investment property dries up in a market downturn.
Cultivate a stronger and longer relationship with your bank If you have several products such as savings accounts, home loans and unit trusts with the bank, this may boost the debt servicing ratio it grants to you - lifting your chances of getting a higher loan value. And it also pays to be a loyal customer. The longer your relationship with the bank, the more leeway you may get.

'Two years and above is already quite telling for the quality of the relationship, ' said Mr Tan. 'You don't necessarily need to have had a loan relationship with the bank previously. Investments with the bank can also help it to gauge your repayment ability and creditworthiness better.'

* Make sure your rental income more than covers your interest instalments
One common misconception among investors is that banks take into account the entire rental income from the property when granting a second or third home loan. Banks actually look at a portion - possibly 50 to 70 per cent - of monthly rental as they also consider the fluctuations and sustainability of this cash flow in covering monthly loan payments, said Mr Ng.

* Try not to opt for interest-servicing loans
Such loans allow customers to service only the interest but not pay up the principal amount borrowed. By paying interest only, you are ultimately paying more interest over the long run. DBS said it offers this option only 'to assist customers during a transition period in order to manage cash flow'. Thus, such loans will usually be offered only on a short-term basis. Financial advisers also note that banks are unlikely to grant approval for such loans to customers unless they are high net-worth individuals who are savvy property investors. What may crop up

*Extra charges
You may need to set aside extra funds to pay for maintenance, income tax and stamp duty for your second property, said Mr Ng. Investment properties, especially older condos, may also require refurbishment expenditure.

* Unfavourable property cycles
Mr Tan cautioned: 'If there is an economic downturn, the rental rates may fall faster than your mortgage interest rate, especially for fixed rates. 'Be prepared with enough cash to top up the difference for the monthly instalment.'

* Higher interest rates
Customers should also take note that investment property generally has a higher mortgage rate compared with residential property, said Prudential financial adviser Lim Szer Khee. He explained: 'Investment property generally has a shorter loan life span as there is a greater tendency to sell the property, so the banks may make less money from lending to finance investment properties.'

Sunday Times Forum: Do I still own joint property as a bankrupt?

2007-05-28T12:51:00.002+08:00

May 27, 2007

Do I still own joint property as a bankrupt?

Question:I HAVE been a bankrupt since Aug 8, 2003. I still own a property as a joint tenant with my former wife. Under the Decree Nisi, it was to be transferred to me 100 per cent, with me assuming the balance in liability. I was unable to do the transfer then due to refinancing problems.
Before my bankruptcy about 1 1/2 years later, in order for the bank not to go after my former wife for the deficit, we did a reverse mortgage that resulted in the bank having priority over the Central Provident Fund (CPF) Board. We had also made a variation to the Decree Nisi that the property was to be sold on the open market at a mutually agreed upon price and time. Until then, I would pay the monthly loan instalment from my CPF account. If there was not enough money in my account, my former wife would pay.
When the property is sold, the proceeds will first be used to pay any outstanding debts to the bank and then go to the respective CPF accounts. Any excess is to be shared equally. I have since remarried and now have three children. My questions are:
a) Upon my death, does the property automatically go to my former wife under joint tenancy law or the Official Assignee (OA)? If it goes to the OA, will the OA get 50 or 100 per cent?
b) If I sign a sale and purchase agreement, but it has not reached completion, upon my death, what will the distribution status be?

Answer:As you are a bankrupt, all of your property vests automatically in the OA without the need for any further conveyance, assignment or transfer. In short, you no longer own anything in your property, and any attempt by you to dispose of your property would be void because you have no title to pass or give. Therefore, any share that you have in the property will form part of your estate available for distribution to creditors. However, HDB flats are exempted, provided both owners are Singapore citizens. If the HDB flat is wholly- or jointly-owned by a permanent resident, then the bankrupt's interest will vest in the OA as well. As your interest was already vested in the OA when you were made a bankrupt, your former wife has really no right of survivorship to whatever might have been your share. You should also not sign any sale and purchase agreement without the OA's consent as you really have no capacity to contract and to pass title. If there is any refund to your CPF account upon the sale of the property, the CPF Act affords considerable protection in the event of bankruptcy. Under the Act, a person's CPF monies do not vest in the OA. If you are an undischarged bankrupt upon reaching 55, withdrawal of your CPF monies would be at the discretion of the Board. Generally, you would be allowed to withdraw a lump sum less the Minimum Sum, Medisave and any other sum you might be required to set aside, subject to the Manpower Minister's approval. If there is insufficient money in your CPF account even for the Minimum Sum and Medisave, then you would be allowed to make monthly withdrawals instead of a lump sum.

Amolat Singh
Lawyer Amolat & Partners

Sunday Times: No roof for expats

2007-05-28T12:51:00.001+08:00

May 27, 2007

No roof for expats With HDB flats in great demand, those without housing allowance find high rents hard to bear
By Nur Dianah Suhaimi & Cheryl Tan

RENTING a home is becoming near impossible for many expatriates. Spikes in property rentals - especially for government housing - have mostly affected those who do not receive housing allowance and generally make less than $5,000 a month.

It does not seem to matter if units are in far-flung locations, nowhere near amenities, and far from MRT stations.

The situation has got to such a point that it is driving some, such as Indian national Yogesh Powale, to give up altogether and send his family back to India. But not for want of trying. Mr Powale spent three months searching for a rental flat when he arrived in November last year. He found a three-room Housing and Development Board (HDB) flat in Bishan, which he rented for $1,500 in January. But after four months of living there, the 37-year-old IT consultant has found costs too high. 'I'm earning $4,000 and paying $1,500 for rent alone. It's not feasible,' he explained. Now, without his wife and one young daughter, he has moved to another Bishan three-room HDB flat, which he shares with two other friends, and pays $450 of the $1,350 monthly rent.

Like Mr Powale, others too are having problems finding rentals within their means. Property agents say they are mostly from China, India and the Philippines, and are usually here with their families. The problem is supply.

Since HDB eased rules to enable more residents to rent out their flats in March, as many as 1,780 home owners were given approval - 570 more than would have been allowed to do so under the old policy.

However, newly arriving expatriates have increased demand for such flats. Last year alone, the expat population here grew by 9.7 per cent from 798,000 to 875,500. Not all can afford to rent private properties, which are in abundance, because rental options can cost more than their wages.

A 760 sq ft apartment in the East Coast - puny for families - can start at about $2,500, while a two-bedroom Jurong apartment can easily cost $3,000 a month. As many as 20 property agents reported that demand for HDB is now so high, they sometimes have trouble coping with calls, which can number as many as 30 in an hour. Units are snapped up within two days of being advertised in The Straits Times, and interested parties start calling as early as sunrise.

Property agent S.C. Ong said: 'Even when the flat is in Jurong, my phone can start ringing from as early as 7.30am.' Singaporeans themselves are competing for HDB rental units, many sold their private property to make a quick buck from the boom and are looking for a place to live, said Ms May Tan, a rental specialist. 'They are waiting for prices to dip before buying a new house. While waiting, they rent HDB flats,' she explained.

Exacerbating the problem are picky landlords, who reject potential tenants based on where they are from. Mr Willy Chua, a property agent who has been distributing fliers door-to-door to encourage people to let their homes, said: 'Some landlords claim they don't recognise their houses after letting them to people of certain nationalities. '

Until more flats come up for rental, finding a place to stay will remain tough. Indian national Raj Ragavan, a project manager, spent two months searching before landing himself a three-room flat in Bedok. Said the 42-year-old: 'Whenever I viewed flats, there would be at least 10 other expats viewing the same unit at the same time.'

Sunday Times: En bloc investors or just vultures?

2007-05-28T12:51:00.000+08:00

May 27, 2007

En bloc investors or just vultures?
Traders who sniff out old units and push hard for collective sale stir up mixed emotions among residents
By Tan Dawn Wei

THEY call themselves 'investors', but property agents prefer to label them 'speculators' . Residents, rather less politely, describe them as 'agitators'.

The en bloc fever has spawned a small but growing number of entrepreneurs who sniff out old property developments and then gun for a collective sale. They wheedle their way onto estate sale committees and fight to push a sale through, in the hope of pocketing some good money in these good times.

One man who was on two sale committees was upfront about his intentions, which grated on some of his neighbours. He got booted out of one. 'They were saying people like us have no emotion. We just want to make money and run,' he said. And so it is. 'I just want to make money.'

Such traders usually jump into an estate late, buying units from sellers who do not want to wait for a collective sale to come through and are looking for a price 'somewhere between individual value and collective sale value', said Mr Jeremy Lake, executive director of investment properties at CB Richard Ellis.

Depending on when they bought the units, they can make between 20 and 80 per cent profit over what they paid for, said Mr Ho Eng Joo, director of investment sales at property firm Colliers International.

Collective sale trading has made Mr Mark Chow quite a tidy sum in the last three years. In 2004, the 44-year-old oil and gas engineer bought two units at Phoenix Mansion in Cairnhill, which was sold en bloc less than a year later. It netted him close to $1 million in what he called 'purely a gamble', given that the 40-year-old apartment block had poor rental returns.

He is now sitting on two sale committees - at Pearl Bank Apartments near Chinatown, and Tulip Garden in Farrer Road where a collective sale now could earn him $1.8 million, almost double what he paid for it. Mr Chow admitted that some residents view him with suspicion - not surprising given that some of these amateur traders are aggressive in forcing a sale through. He sees himself differently; he is merely sharing his experience.

'The most important thing is that you must be responsible and have ethics. Get the best value out of it for everyone,' he said.

Businessman Lee Peng Shu, 57, said such traders do have something to offer. He had a trader on the sale committee he was heading at Jervois Court, which was sold four years ago. 'He was very aggressive, very clear about the en bloc situation and all the rules,' he said. 'But that was good too because his experience helped, since many of us were first-timers. '

Disagreeing, a senior property consultant said their rush to cash in can create problems for residents who cannot find comparable replacement homes in time. 'They don't consider the social needs of residents. They are troublemakers, ' he said.

Property agents who advertise sales of homes said they receive more calls when they include the words 'en bloc potential' in their ads. 'There's always interest in anything that's old,' said one property agent who has been advertising a unit in a River Valley condominium that is more than 30 years old. He is getting as many as 30 calls a day and is quite close to sealing a deal.

Insiders say even some property agents are getting in on the act, sometimes using their family members' names to purchase apartments with collective sale potential. The frenzy is getting too much for retired librarian Dev Nair, 66, who gets mail and phone calls every day from property agents asking if she wants to sell her 32-year-old Neptune Court apartment. The 752-unit estate in Marine Parade got the ball rolling for a collective sale last year. 'I ask them why they are so keen to buy. They pretend they don't know about the collective sale,' she said. One agent even offered her $1 million, which tops the latest sale transaction - at $975,000 - in that estate this month. 'These must be speculators but we don't have proof,' she said.

Straits Times: Parkway sets up Reit worth at least $765m

2007-05-26T15:51:00.000+08:00

May 26, 2007

Parkway sets up Reit worth at least $765m
It places its three hospitals into Asia's largest health-care Reit
By Joyce Teo

HEALTH-CARE group Parkway Holdings is injecting its three hospitals into what will be Asia's largest health-care real estate investment trust (Reit).

The Parkway Life Reit will hold Mount Elizabeth, Gleneagles and East Shore Hospitals, with a total value of not less than $765 million. It will be the second Reit in Singapore with health-care assets, once it lists on the mainboard.

Indonesia's Lippo Group listed First Reit last December. Parkway Holdings had noted as far back as 2005 that it was considering a health-care Reit. The catalyst for its move now was its acquisition in May of a stake in a group of medical centres in Shanghai, which will act as a springboard for its China growth, said group managing director Lim Cheok Peng.

Parkway paid US$42 million (S$64 million) for Medical Resources International, which owns 60 per cent of World Link Medical and Dental Centres. The group said its property portfolio would form a ready pipeline of assets for the Reit. It plans to grant a right of first refusal over future asset sales to the Reit, while the group will have a reciprocal right of first refusal to lease and run assets the Reit buys.

Parkway's overseas network of hospitals and medical centres consists of single establishments in Brunei, China and India, and 10 set-ups in Malaysia. The group intends to use the net proceeds of about $575 million from the sale of its hospitals to the Reit to invest further in the Asia-Pacific. It is keen to tender for hospital sites in favourable areas here if they are released by the Government, said its group senior vice-president for strategic planning and business development, Ms Choo Oi Yee.

Dr Lim said the Reit's set-up will spur the acquisition of hospitals and health-care- related assets such as laboratories and X-ray centres. This would allow Parkway to expand its regional presence and position itself for growth, he said.

Parkway is proposing a sale and leaseback arrangement under which it will grant the Reit long-term leases in the three hospitals. It will then lease the properties back for an initial term of 15 years, with an option to extend for a further 15 years. It will pay a fixed rent of $30 million in the first year for all three properties. It will also pay a variable portion of a percentage of the hospitals' revenue or $15 million, whichever is higher.

Mount Elizabeth Hospital, which includes 30 of its 232 medical and retail units, has a lease of 67 years. Gleneagles Hospital is freehold, and includes 10 of its 164 medical and retail units. Parkway will transfer a lease of 75 years to the Reit. The Reit will be granted the same lease period for the freehold East Shore Hospital, which includes 28 medical offices. It is expected to be managed by a wholly-owned unit, Parkway Trust Management, which is known now as PHR Management.

'We would like to retain at least 30 per cent in the Reit,' said Ms Choo. That would allow the group to enjoy a steady distributable income. 'With the establishment of Parkway Life Reit and the appointment of a dedicated Reit manager, we anticipate that asset enhancement will be among the various value-added initiatives undertaken,' she added.

Business Times: Paramount Hotel site being sold for $200m

2007-05-26T15:47:00.000+08:00

May 24, 2007

Paramount Hotel site being sold for $200m
By ARTHUR SIM

PARAMOUNT Hotel and Paramount Shopping Centre are up for sale at an indicative price of $200 million through a public tender exercise.

The property has a combined land area of about 102,710 square feet and a plot ratio of 3.0 with a maximum gross floor area of 308,130 sq ft. At the indicative asking price, this works out to about $650 per square foot per plot ratio.

The site is being marketed by Cushman & Wakefield, whose managing director Donald Han said it can be developed into a retail and hotel development with 450-600 rooms.

Perhaps even more attractive to potential developers is the fact that the site is under the government's 'safeguard list'. This means there is a possibility of converting the site to residential development instead.

Indeed, Mr Han believes that based on current prices for new property launches in the East Coast area, this could prove to be the better option. 'Prices for recent residential projects like CapitaLand's The Seafront on Meyer and GuocoLand's The View @ Meyer transacted between $1,500 and $1,800 psf, reflecting a new high in the Katong, Meyer and Amber Road residential enclave,' he said.

Based on the possible redevelopment of the site into a condominium with a plot ratio of about 2.1, Mr Han estimates that a developer might pay $830 psf per plot ratio for the site. 'The breakeven cost could be around $1,100 psf,' he added.

There is also potential for a hotel development. 'The property is situated next to Grand Mercure Roxy Hotel, which is operated by the Accor Group. Accor recently announced that they will be relocating their Asian headquarters from Sydney to Singapore to take advantage of the growing tourism market in Singapore and in the region,' noted Mr Han.

Business Times: 4 of Asia's top 10 property investment sales in S'pore

2007-05-26T15:46:00.000+08:00

May 24, 2007

4 of Asia's top 10 property investment sales in S'pore
This indicates investor confidence in Singapore's strong economy
By KALPANA RASHIWALA

SINGAPORE accounted for four of the 10 biggest property investment sales deals across Asia in the first three months of this year, according to CB Richard Ellis.

These were the $1.04 billion sale of Temasek Tower - which was ranked the top deal in Asia in Q1 - and the collective sales of Gillman Heights ($548 million), Horizon Towers ($500 million) and Anderson 18 ($477.7 million), which were ranked fourth, sixth and seventh.

'That four of the 10 largest real estate investment deals in Asia are Singapore properties is a very clear signal that investors are confident of Singapore's strong economic fundamentals, ' CB Richard Ellis (CBRE) executive director (investment properties) Jeremy Lake said yesterday.

'Property funds and overseas institutional investors anticipate further capital value and rental appreciation. 'The firm's updated estimate of Q1 2007 investment sales in Singapore is $11.16 billion. 'If the pace continues for the rest of the year, we'll see $44 billion for the whole of 2007, which would be higher than the $29.92 billion achieved for 2006,' said Mr Lake.

The $11.16 billion figure for Q1 is an 86 per cent increase from a year earlier, due mainly to the large number of development sites sold this time around. The residential sector accounted for 62 per cent of Q1 2007 investment sales, followed by the office sector at 27 per cent.

CBRE only includes transactions of at least $5 million as investment sales, and these include land, en bloc sales and strata-titled units such as office units and apartments.

Business Times: En bloc deals hit $6.38b - nearly topping all of last year's

2007-05-26T15:43:00.000+08:00

May 24, 2007

En bloc deals hit $6.38b - nearly topping all of last year'sTransactions for barely five months are just 18% short of the $7.75b for whole of 2006
By KALPANA RASHIWALA

(SINGAPORE) A total of 39 collective sale sites have been sold for some $6.38 billion since the start of this year, up to May 15 - just 18 per cent shy of the $7.75 billion record achieved last year, show latest figures from Jones Lang LaSalle.

The property consulting firm's regional director and head of investments, Lui Seng Fatt, expects the momentum of en bloc sales to continue for the rest of this year, predicting a $10 billion figure being hit for the full year, assuming prices hold.

Mr Lui attributes the buoyant collective sales figure so far this year to the trend of mega sites being sold, as well as rising unit land prices as developers race to replenish their high-end residential landbanks in the face of strong sales of their luxury housing projects.

'In addition, several new players from overseas are coming in, mostly foreign funds partnering local developers,' he said.

These include the likes of Morgan Stanley Real Estate Fund, Qatar Investment Authority and Forum Partners.

The current benchmark price for residential land, of $1,735 psf per plot ratio, was set when Overseas Union Enterprise exercised an option to buy The Parisian at Angullia Park in January this year. This is almost double the $876 psf ppr fetched for Habitat II in the prime Ardmore/Draycott area in September 2005. 'Following the quantum jump in land prices achieved over the past 12 to 24 months, prices could still go up but further increases are likely to be more moderate,' Mr Lui reckons. 'Current price levels will comfortably hold for the rest of the year.'

Market watchers expect more big en bloc sale sites to be transacted in the coming months. Farrer Court, with a whopping 838,488 sq ft land area and $1.2 billion reserve price, was launched just last week. More billion dollar sites are expected to be offered, including The Claymore.

Among the big transactions so far this year are Leedon Heights ($835 million), Gillman Heights (sold for $548 million), Horizon Towers ($500 million) and Tampines Court ($405 million).JLL's analysis shows that the $6.38 billion worth of en bloc sale transactions sealed in the first four and a half months of this year included 39 transactions, whereas the $7.75 billion for the whole of last year covered a much larger number of deals - 62.

That shows that the size of deals has shot up, as there have been more mega sites as well as the increase in unit land prices.

Straits Times: Orchard Plaza explores avenues for collective sale

2007-05-26T15:31:00.000+08:00

May 24, 2007

Orchard Plaza explores avenues for collective sale

THE ageing Orchard Plaza - once dubbed the most dismal building on Orchard Road - may become the next mall to head down the collective sale route.

Sources said owners of the strata-titled mall next to the Le Meridien Singapore hotel gave the thumbs up to explore sale opportunities at an extraordinary general meeting held about two weeks ago.

This led to a sales committee being formed last Saturday, which has already invited proposals from marketing agents, they added. Although no indicative prices have been mooted, The Straits Times understands that a figure in the region of $500 million is being bandied about.

This would work out to just under $2,000 per sq ft per plot ratio (psf ppr) for the nine-storey mall, which has a gross floor area of about 260,000 sq ft. But market watchers said they would not be surprised if the eventual asking prices were higher, at between $2,000 and $3,000 psf ppr.

This compares with the $1,455 psf ppr paid for the Somerset Central site across the road last August. One unit owner at Orchard Plaza said the sharp rise in property prices since then has made it unlikely that the mall's owners would agree to the building being sold en bloc for anything below $2,000 psf ppr.

'They will probably try and ask for closer to $3,000 psf ppr,' he told The Straits Times.

Orchard Plaza has a mix of restaurants, massage parlours and KTV pubs. It was developed more than 20 years ago by Far East Organization, which is believed to be still holding on to about 30 per cent of the units. Its first step towards going for a collective sale comes a week after reports that Orchard Towers, opposite Forum the Shopping Mall, is considering a collective sale at expected prices of about $1,800 psf ppr.

Two other collective sales were also announced yesterday. Ruby Plaza and the adjoining Balestier Towers went on the market at minimum prices of $79 million and $60.3 million respectively. This works out to at least $670 psf ppr for the combined properties, said Realtorhub Real Estate, which is marketing the buildings. The have a combined site area of 69,481 sq ft and a gross floor area of 208,443 sq ft. A buyer could potentially redevelop the properties into a hotel of at least 20 storeys or a block of medical suites, subject to the planning approval, said Realtorhub.

The owners of Paramount Hotel and Paramount Shopping Centre in Katong have also put the freehold property up for tender. They hope to get more than $200 million for the site, which has a combined land area of about 102,710 sq ft and a gross floor area of 308,130 sq ft. Outline approval has been obtained to convert the retail portion to hotel use, said Cushman & Wakefield, which is conducting the tender exercise.

The existing hotel has 229 rooms but can be expanded to accommodate 450 to 600 rooms. The price works out to about $650 psf ppr, said Mr Donald Han, the managing director of Cushman & Wakefield. Previous hotel site transactions have been done at about $500 psf ppr or more. But Mr Han said prices have moved up since then and Paramount should attract more interest, as freehold hotel properties are relatively rare.

Ardmore II

2007-05-25T21:02:00.000+08:00

Two distinctive towers located in Ardmore Park

Tenure: Freehold

Developer: Wheelock Properties Ltd

Expected TOP: 31st December 2010

Expected Date of Legal Completion: 31st December 2013

Total units: 118

Facilities: 50m lap pool, sun deck, 25m resort pool, junior pool, poolside pavillion, landscaped gardens, residents' lounge, indoor gym, barbeque deck, play area, changing rooms, porte cochere

4 bedrooms available (2,023 sq ft each)

FOR MORE DETAILS, PLS CALL JAZLEEN LEOM @ (+65) 91514003 OR EMAIL TO JAZLEEN.LEOM@GMAIL.COM

Straits Times: S'pore home rents 15th highest globally

2007-05-23T18:59:00.000+08:00

May 23, 2007

EXPAT HOUSING SURVEY
S'pore home rents 15th highest globally

HOME rents in Singapore have become the 15th most expensive in the world and the eighth highest in Asia. This is due to a 15 per cent jump in rents here last year over 2005, according to a survey done by human resources research firm ECA International.

In 2005, Singapore was ranked 18th in the world and ninth in Asia. Now, the Republic has overtaken Jakarta, Milan and Rome, ECA said yesterday.

Its study found that a three-bedroom apartment in 'popular expatriate areas' in Singapore cost US$3,364 (S$5,129) a month on average last year, up from an average of US$2,915 in 2005.

These areas include districts 9, 10 and 11, as well as the East Coast. ECA's general manager in Hong Kong, Mr Lee Quane, attributed the increasing rents in Singapore to an influx of expats, which has pushed up demand for high-end accommodation. Even with this rise, however, rents here are still 150 per cent lower than in Hong Kong and 120 per cent lower than in Tokyo, Mr Quane noted.

These two cities hold the top spots for the highest rents worldwide. They are followed by New York, Moscow, Seoul, London, Mumbai, Shanghai, Ho Chi Minh City and Dubai, among others.

Business Times: Singapore's real estate bubble won't be pricked

2007-05-23T18:51:00.000+08:00

May 23, 2007

Singapore's real estate bubble won't be pricked
By ANDY MUKHERJEE

ASSET-BUBBLE vigilantes will find little to cheer about with Singapore's falling interbank lending rate. They will be partly right: Cheaper capital is about the last thing the island's frenzied property market needs.

Housing loans by Singapore banks reached $64.3 billion in March. That's the highest on record. With prices of private homes surging the most in seven years in the first quarter, and with rents having already climbed to levels not seen since 1998, it isn't surprising that more people are rushing to take out mortgages.

The trend may amplify if borrowing costs fall: The key three-month interest rate was at a 19-month low of 2.25 per cent on Monday, a percentage-point drop since the end of February. It might be a matter of time before long-term rates follow suit.

Singapore on Monday reported that the economy expanded at a faster-than-expected annualised 7.6 per cent pace in the first quarter. The momentum is coming from a revival in construction, which grew at its briskest rate in nine years.

If the US economy rebounds in the second half of 2007, Singapore's flagging electronics exports may get a boost. That will be a bonus. In such a scenario, cheap money will appear both incongruous and dangerous.

Yet, bubble vigilantes will also be wrong.

Singapore's monetary policy should respond purely to a growth-inflation trade-off. Asset prices are incidental; if the financial system can withstand the risk of exuberance - as Singapore's surely can - the central bank will be unfair to the broader economy by stifling growth too early.

This boom may still have a couple of years to run. With no let-up in global risk appetite, there isn't a dearth of investors willing to take a bet on this emerging Asian play ground of the well-heeled. Singapore will have two casinos by 2010; it's also building the world's largest Ferris wheel; the Public Utilities Board is going all out to turn the city's reservoirs and canals into hotspots for kayaking and waterfront living. Formula One racing is coming to the Central Business District. It's a perfect backdrop for a property boom to run ahead of itself. Indeed, not a day passes without news of an older block of apartments being torn down to be replaced by newer construction. The resulting supply shortage is squeezing the expatriate population - most local Singaporeans live in public housing - by pushing up rents even further. Yet, it isn't stopping a steady inflow of new arrivals. Land owners are tizzy with excitement.

All of this begs the question: Shouldn't monetary policy be playing a cautionary role by leaning against the wind?

The Monetary Authority of Singapore (MAS) doesn't manage interest rates. It buys and sells the Singapore dollar to keep it anchored against an undisclosed basket of trading partners' currencies. The monetary stance, since April 2004, has been one of 'modest and gradual appreciation' in the home currency.

Singapore's foreign exchange reserves have risen by more than US$12 billion in the past year, restricting gains in the currency to less than 4 per cent against the US dollar. Rather than remove the additional liquidity from the banking system by selling bonds and bills, which is what other Asian central banks do to maintain control over money supply in the face of strong capital inflows, MAS follows a more hands-off approach. That's because domestic money supply doesn't have much impact on consumer price inflation in an island of 4.5 million people.

From an asset bubble perspective, the strategy isn't without its risks. If property is hot, stocks are no less so. The benchmark Straits Times Index rose to a record on Monday.

'Sustained liquidity expansion could exert undesirable macro effects in the medium term,' Yen Ping Ho, a JPMorgan Chase & Co currency strategist, said in a May 18 note. 'While inflation remains low, rising financial asset prices and booming housing activity should increasingly be a source of concern.'

There is talk that Singapore is intentionally targeting lower interest rates because it wants to avoid becoming a target of carry traders by offering them high yields.

The MAS issued a clarification on Monday, denying that the fall in local interest rates was deliberate. 'Recent movements reflect market forces,' it said.

Those who believe all central banks should be in the business of pricking bubbles will find the Singapore authority's stance unsatisfactory. But the MAS will be prudent to react only if runaway asset prices spill over into consumer prices. That is what it did between 1991 and 1994. Capital is under-priced on a global scale. A small, open economy like Singapore can't buy insurance against an eventual return of financial risk. Vigilantes should look elsewhere. - BloombergAndy Mukherjee is a Bloomberg News columnist. The opinions expressed are his own.

Business Times: HGC tops bids for Little India site with $48.89m

2007-05-23T18:28:00.000+08:00

May 23, 2007

HGC tops bids for Little India site with $48.89m
Its proposed development is a 350-400 room hotel with retail space
By KALPANA RASHIWALA

THE sizzling hot Singapore hotel market has drawn out listed Hotel Grand Central Ltd (HGC) - which, to date, owns only one hotel here - to emerge as the top bidder for a 99-year leasehold 'white' site at Belilios Road in the Little India area with a $48.89 million bid.

Assuming it is awarded the site, the group plans to develop a 350 to 400-room hotel targeted at the 'mid-market segment of travellers who seek value', an HGC spokesman told BT yesterday.

The group is also planning to include some retail space for its proposed development, possibly on the ground floor on the side facing Serangoon Road, he added.

He declined to give any estimate for the all-in investment in the project, but said HGC hopes to complete the development around early 2009.

The other four bidders for the site, which was offered under a state tender that closed yesterday were: a Hotel Royal Ltd subsidiary ($43.39 million); Soilbuild Group ($41.86 million); Bishopsgate Developments, part of the BS Capital group ($35.18 million); and Lee Han Boon ($29.9 million).

Assuming the Urban Redevelopment Authority (URA) awards the site to HGC, it will be the group's first major hotel investment in Singapore in around 30 years. It currently owns just one hotel in Singapore - the namesake Hotel Grand Central at Kramat Lane in the Orchard Road vicinity, behind Le Meridien - which it completed in the early 1970s and expanded in two later phases.

'Our bid for the Belilios Road site reflects our confidence in the Singapore tourism sector,' HGC's spokesman noted.The group's proposed hotel at Belilios Road will target primarily Indian travellers but HGC is also gunning for other Asian travellers, including those from Indonesia and the Philippines. Another group will be travellers from Australia, New Zealand and the United Kingdom 'who wish to sample Indian culture without going to India'.

'The site is in a really interesting location which will appeal to tourists. Belilios Road was named after a cattle rancher from Calcutta and it is also next to a Hindu temple dedicated to the goddess Kali,' HGC's spokesman said. The site can be developed into a project with a maximum gross floor area of 116,282 sq ft. As a 'white' site, the possible range of uses allowed for the plot include hotel, retail, dining, entertainment, office and residential, URA had said earlier.

Although mainboard-listed HGC now has just one hotel in Singapore, it has a sizeable chain overseas, comprising more than 20 hotels in Australia, New Zealand and Malaysia, most of which are owned and managed by the group under brand names like Hotel Grand Chancellor and Hotel Grand Continental.

Straits Times: Wider roads to Sentosa

2007-05-23T18:22:00.000+08:00

May 22, 2007

Wider roads to Sentosa

ROADS leading to Sentosa could be widened by 2010 when the integrated resort (IR) on the island opens. They include Sentosa Gateway, Telok Blangah Road and Kampong Bahru Road.

An extra two lanes may also be added to the four-lane Sentosa causeway and dedicated lanes set aside for traffic moving in and out of the IR, known officially as Resorts World. These are among the road improvements being considered, said Minister of State (Transport) Lim Hwee Hua yesterday. She was replying to Dr Lam Pin Min (Ang Mo Kio GRC), who asked whether the transport network was being improved to cater to the expected swell in tourists and vehicles with the opening of Resorts World.

The Sentosa Development Corporation is also looking at ways to encourage people to use public transport, she added. These plans are in addition to Resorts World's plans, announced in March, to build a new, three-lane bridge running parallel to the existing causeway.

Business Times: Gilstead View sold for $96.5m

2007-05-23T18:16:00.000+08:00

May 22, 2007

Gilstead View sold for $96.5m
Price is $1,070 ppr, inclusive of a development charge of $10m
By KALPANA RASHIWALA

GILSTEAD View has been sold for $96.5 million, which works out to about $1,070 psf of potential gross floor area, inclusive of an estimated $10 million development charge (DC).

Jones Lang LaSalle, which brokered the collective sale of the 35,510 sq ft freehold site, said this is a new benchmark in the Newton area. It also revealed the buyer is Chedstone Investment, which it said is an associate company of Selangor Dredging Bhd. Industry sources said that Singapore construction and property group Tiong Aik also had some role, but JLL declined to comment on this.

Selangor Dredging's current developments include Park Seven, a high-end condo in Kuala Lumpur, and a 21-bungalow project at Damansara Heights, also in the Malaysian capital.

JLL estimates the break even cost for a new project on the Gilstead View site is about $1,600 psf. The site is zoned for residential use, with a 2.8 plot ratio (ratio of maximum potential gross floor area to land area) and 36-storey height limit. The site is big enough to house a new project with about 75 apartments averaging 1,300 sq ft.

Meanwhile, collective sale sites continue to be launched for sale. Casa Nassau at Upper East Coast Road is being offered, together with an adjoining bungalow. The two properties have a combined land area of 65,110 sq ft and are zoned for residential use with a 1.4 plot ratio and five-storey height limit. The indicative price range for the combined site listed by the properties' marketing agent, Credo Real Estate, is $47 million to $51 million, which reflects a unit land price of about $580 to $620 psf per plot ratio (psf ppr) inclusive of estimated DC of $5.63 million.

Also in the eastern part of Singapore, Colliers International has launched St Patrick's View, with an indicative land value of $63 million, or $544 psf ppr, including DC for the 83,013 sq ft freehold site. The plot has 1.4 plot ratio.

Business Times: Soilbuild to sell penthouses, sky villa via auction

2007-05-23T18:12:00.000+08:00

May 22, 2007

Soilbuild to sell penthouses, sky villa via auction

SOILBUILD will sell a 'sky villa' and two penthouses in its freehold 44-unit Leonie Parc View through an auction by Christie's and Colliers International, the developer said yesterday.

'We expect the sky villa and penthouses to appeal to both foreign and local investors, commanding prices in the region of $3,200 to $3,600 per square foot (psf),' said Grace Ng, Colliers International' s auctioneer.

Colliers will jointly conduct the auction with Christie's Great Estates exclusive affiliate Ken Jacobs.

Leonie Parc View is located on Leonie Hill Road in the prime District 9. The development comprises one sky villa, three penthouses and 40 four-bedroom units.

The project has been previewing overseas since late April. Following roadshows in Hong Kong and Indonesia, 18 of the 20 units released were sold through private placements to overseas buyers, with prices ranging from $2,600 to $3,000 psf, said Jerry Tan, managing director of property firm JTResi, which is handling the preview sales.

The rest of the units will be released at a later date, Soilbuild said.

The double-storey sky villa is an expansive 7,000 sq ft and comes with a private lap pool on its upper level. The other two penthouses are 2,900 and 3,000 sq ft. The by-invitation- only auction is slated for June 8 at 3pm at the Raffles Hotel.

Low Soon Sim, executive director of Soilbuild, said: 'Through this auction, we intend to reach out to a wider group of international investors seeking a presence in a global city like Singapore.'

Straits Times: Grange Rd condo tops $4,000 psf benchmark

2007-05-23T18:03:00.000+08:00

May 22, 2007

Grange Rd condo tops $4,000 psf benchmark
By Fiona Chan

A SMALL condominium on Grange Road has broken the $4,000 per sq ft (psf) price barrier at one of its units. This makes Parkview Eclat only the second development in Singapore to reach these heights, after CapitaLand's high-profile Orchard Residences at Orchard Turn.

The remaining units that have been sold so far fetched lower prices, bringing the 35-unit project's average price to date to about $3,000 psf.

Developer Chyau Fwu Group sold one four-bedroom apartment over the weekend for 'almost $4,200 psf', it said yesterday.

The 16th-floor unit has an area of about 3,300 sq ft, taking the total price close to $13 million, Chyau Fwu senior executive Eddie Chow told The Straits Times. Asking prices have risen by about 20 per cent since Parkview Eclat was first marketed six weeks ago - 'in line with the market', said Mr Chow.

Eighty to 90 per cent of buyers so far are foreigners, living either overseas or in Singapore. Among them are buyers from Indonesia, Hong Kong and Japan. At least one buyer has purchased more than one unit, added Mr Chow.

Chyau Fwu is holding back the 10,000 sq ft super penthouse - and hopes to auction it off later at 'more than $5,000 psf', he said. Another two duplex units, at 5,000 sq ft each, have price tags of nearly $5,000 psf.

Meanwhile, another luxury development in Leonie Hill Road is going down the auction route next month. Three of the units on the top floors of Leonie Parc View will go under the hammer on June 8, developer Soilbuild Group Holdings said yesterday.

One is a 6,975 sq ft 'sky villa', while the other two are penthouses, of 2,906 sq ft and 3,003 sq ft.

The auction will be conducted by Colliers International and Christie's Great Estates exclusive affiliate Ken Jacobs, which in April successfully auctioned off 12 units of Botanika on Holland Road.

Colliers said yesterday that it expects the Leonie Parc View units to fetch between $3,200 psf and $3,600 psf, which will be a record for the Leonie Hill area. So far, 18 of the condominium' s 44 units have been sold at prices ranging from $2,600 psf to $3,000 psf, Soilbuild said.

Leonie Parc View will be the second uncompleted condominium to have units sold at an international auction, after Botanika. Another developer, SC Global, has also said it will sell its last BLVD penthouse via auction at a later date

The Cascadia (Launching soon)

2007-05-17T21:32:00.000+08:00

13 blocks of 10-storey condominium development located at 947 Bukit Timah Road (next to Tan Chong car showroom)

Developer: Allgreen Properties Ltd

Tenure: Freehold

Expected TOP: 31st December 2011

Expected Date of Legal Completion: 31st December 2014

Site Area: 27,570.90sqm / 296,773sq ft

Total units: 536

Total Carpark Lots: 567

Facilities: 50m lap pool, children's pool, fun pool, jacuzzi, jacuzzi lounge, in-water lounge, pool deck, eco-koi pond, water features, children's play area, garden pavilions, barbeque arbor, adult/elderly fitness area, basketball practice area, badminton court, tennis court, loop jogging path, waiting shelter, porte cochere, feature arbor, clubhouse/multi function room, gymnasium, male/female changing rooms

Neighbourhood schools: Hwa Chong High, Henry Park Primary, Raffles Junior College, Nanyang Girl's High, National Junior College, Raffles Girls Primary, Ngee Ann Polytechnic, National University of Singapore (Bt Timah Campus)

Shopping Centres: Coronation Plaza, Holland Village, Serene Centre, Bt Timah Plaza, Beauty World Plaza, King Albert Park

Easy access to PIE/BKE/Bukit Timah Road, and proximity to Botanic Gardens/Bt Timah Natural Reserve

Orientation: Majority with North-South orientation

Units Available: 1-4 bedrooms, penthouses

For more details, please contact Jazleen Leom @ (+65) 91514003 or email to jazleen.leom@gmail.com

Straits Times: PRICIEST COLLECTIVE SALE?

2007-05-17T20:08:00.000+08:00

May 17, 2007
PRICIEST COLLECTIVE SALE?
Cairnhill condo seeks $2,200 psf ppr

THE owners of a Cairnhill Road estate are trying to set yet another record for the priciest collective sale. Trendale Tower has gone on the market with an indicative price of $160 million, or about $2,200 per sq ft per plot ratio (psf ppr). This beats the highest asking price to date of Elizabeth Heights, which went up for sale last month at $2,100 psf ppr.

The record for a done deal is held by The Parisian, which was sold last year for $1,735 psf ppr.

Trendale Tower sits on a 21,709 sq ft site that can be built up to 36 storeys. It can be redeveloped into a block with about 36 units of 2,000 sq ft each. No development charge is payable for the 25-year-old freehold estate, said Savills Singapore, which is inviting expressions of interest until June 20.

Savills is also working to bring Ridgewood Condo in Mount Sinai on the market. Its reserve price is about $1.27 billion, The Straits Times understands. If the sale succeeds, it would become the most expensive collective sale in terms of absolute price. But it could be beaten by Farrer Court, which went on sale on Monday with a record price tag of $1.5 billion.

The record now stands at $835 million for Leedon Heights, which was sold en bloc last month.

Meanwhile, Lincoln Lodge off Newton Road was also put on the market yesterday for $188 million, or $1,122 psf ppr. A development charge of about $413,000 is payable for the 59,984 sq ft site.

Business Times: Two more central sites up for en bloc sale

2007-05-17T19:54:00.000+08:00

May 17, 2007
Two more central sites up for en bloc sale

TRENDALE Tower at Cairnhill Road and Lincoln Lodge, off Newton Road, have been put up for collective sale.

For Trendale Tower, the indicative guide price stated by marketing agent Savills Singapore is $160 million, or $2,200 per square foot of potential gross floor area. However, the reserve price set by the owners is said to be around $150 million, which works out to about $2,064 psf per plot ratio. No development charge is payable for the 21,709 sq ft freehold site at 79 Cairnhill Road.

'Subject to approval from relevant authorities, the redevelopment site will enjoy a permissible gross floor area of 6,753.2 square metres (72,691 sq ft), exceeding the permissible plot ratio of 2.8 as indicated in the 2003 Master Plan. Therefore, no development charges are payable,' according to Savills.

The Trendale Tower site can be redeveloped into a new 36-storey project with about 36 units averaging 2,000 sq ft.

The expression of interest for Trendale Tower closes on June 20.

As for Lincoln Lodge, it has a $188 million price tag, reflecting a unit land price of $1,122 psf of potential gross floor area inclusive of an estimated $413,000 development charge.

Lincoln Lodge, just behind United Square, has a freehold land area of 59,984 sq ft and is zoned for a 2.8 plot ratio (ratio of maximum potential gross floor area to land area). It has a 36-storey height limit.

The buyer of Lincoln Lodge could potentially apply to purchase adjoining state land totalling 2,405 sq ft, which would lower the overall unit land price to around $1,100 psf per plot ratio, according to Newman & Goh, which is marketing Lincoln Lodge. The tender for Lincoln Lodge closes on June 20.

Business Times: MAS outlines next big investment flow

2007-05-17T19:49:00.000+08:00

May 16, 2007
MAS outlines next big investment flow
It sees tremendous potential for property and infrastructure finance throughout Asia
By WONG WEI KONG

(SINGAPORE) Infrastructure and property finance is the next big area identified for the country by the Monetary Authority of Singapore (MAS). A senior MAS official has told BT that Singapore can act as a conduit for regional and global investors to access opportunities throughout Asia.

In response to the growing demands for infrastructure finance, the Singapore bond market is already developing project bonds - instruments backed by the underlying cash flows of infrastructure projects instead of by an entire corporate body.

Kola Luu, executive director for financial markets strategy at MAS, told BT: 'We believe that there is tremendous potential for both property and infrastructure finance in the region, fuelled by Asia's strong and sustained economic growth as well as increasing urbanisation. 'The development of project bonds will allow infrastructure players access to more investors beyond just the bank market. 'This will allow projects to better diversify their investor base and lower their cost of capital,' said Mr Luu. 'In particular, there is significant demand by global and regional fixed income funds and high net worth individuals for high-quality long-dated bond issuances, and they are the natural market for project bonds.'

Singapore is already a key infrastructure finance centre. More than a dozen local and international banks have project and infrastructure finance teams based here. Singapore's developed financial markets, the strength of its regulatory framework and the existing pool of liquidity in the wealth management industry provide a gateway for global investors to access Asian infrastructure opportunities, MAS said.

According to World Bank estimates, Asian infrastructure projects will require US$250 billion to US$300 billion worth of financing every year for the next few years. While infrastructure requirements have in the past been financed largely by governments, the present big demand for new infrastructure means that private sector investment will also be required.

In property finance, much potential exists for the increased securitisation of Asian real estate assets, and for diversification beyond the conventional types of properties, said MAS.

Despite the fact that the market capitalisation of Asian real estate investment trusts (Reits) has grown substantially over the past five years, the existing Reit market represents only 4 per cent of investible-grade real estate in Asia, compared to 50-60 per cent in Australia.

One emerging trend - which is already benefiting Singapore - is that investors are increasingly viewing infrastructure as an asset class in its own right and giving the sector specialised focus.

'We are increasingly seeing a trend of traditional project financing through bank debt becoming overtaken by capital market financing solutions like infrastructure funds and project bonds,' said Mr Luu, noting that several specialist fund managers in real estate and infrastructure have or are in the process of setting up their offices in Singapore to serve the Asian region.

The steady pipeline of upcoming Public-Private Partnership projects has encouraged some project finance advisory teams to establish themselves in Singapore. The successful Reit market here also attracts investors - like pension funds and insurance companies - into ancillary markets such as infrastructure. Singapore was the first in Asia ex-Japan to develop a Reit market, and it has grown to be the largest with 16 Reits listed on the Singapore Exchange with a total market capitalisation of S$25 billion - many of which comprise offshore real estate assets.

'Invariably, the increasing capital market activities and business opportunities will bring about a vibrant value chain of infrastructure players, including financial intermediaries and project sponsors,' Mr Luu said.

To support the development of a deeper infrastructure finance market, MAS introduced the Business Trust Act in 2004 and the infrastructure finance tax incentive last year.

The central bank said it will regularly review its regulatory regime to keep pace with market development while providing adequate safeguards for investors and issuers, in close consultation with the industry.

Straits Times: Single owner selling 48 units in Duchess Crest for $72m

2007-05-17T19:47:00.000+08:00

May 16, 2007

Single owner selling 48 units in Duchess Crest for $72m
By Fiona Chan

A SINGLE investor who owns 48 units in Duchess Crest at Bukit Timah wants to sell the lot en bloc for $72.1 million. The asking price for the 99-year leasehold units works out to about $750 per sq ft (psf).

CB Richard Ellis (CBRE), which is inviting expressions of interest until June 13, would say only that the institutional investor is an overseas fund. It had bought the units - comprising 43 apartments and five townhouses - from developer Wing Tai some years ago, said Mr Jeremy Lake, executive director of investment properties at CBRE.

The units are 'scattered around' the estate, and range from two- to four-bedroom apartments of between 936 sq ft and 2,260 sq ft. The townhouses range between 4,123 sq ft and 4,241 sq ft.

Prices at the 251-unit Duchess Crest have been rising steadily this year. Three units were sold in February for an average of $650 psf, according to caveats lodged. This rose to $773 psf for two units sold in March, and last month four units fetched $840 psf on average.

Mr Lake said keen interest is expected for the 48 units, 'given rising rents and current strong market sentiments'. He added that institutional investors buying and selling residential units in bulk is not rare.

A United States fund bought an entire block of Wing Tai's Draycott 8 project in May last year, while another US fund, Citadel, snapped up 25 units of Soilbuild's One Tree Hill Residence in December.

Duchess Crest was launched in May 1996 at the height of the last property boom and right after the Government introduced measures to cool property speculation. Wing Tai priced the first launch at $1,000 psf, but received lower interest than expected.

Two years later, it slashed the prices of remaining units by 10 per cent and offered buyers the choice of a rental guarantee or a buy-back option if the value of the units fell below their purchase price after three years. The developer finally sold the last 48 units in the estate in 2000, although it is not clear if these are the same units that are now being put up for sale.

Business Times: CapitaLand pares Gillman Hts stake

2007-05-17T19:45:00.000+08:00

May 16, 2007

CapitaLand pares Gillman Hts stake
It sells 50% stake in project to HPL, two private funds
By ARTHUR SIM

JUST three months after CapitaLand acquired Gillman Heights for $548 million, it has decided to sell a 50 per cent stake in the project to Hotel Properties Ltd (HPL) and two private funds.

CapitaLand would not say who the private funds are but revealed that one would take a 15 per cent stake while the other would take a 10 per cent stake, with HPL taking the remaining 25 per cent.

CapitaLand has partnered HPL on development projects in London and Shanghai but the Gillman Heights project will be the first joint venture development in Singapore.

Patricia Chia, CEO of CapitaLand Residential Singapore, said: 'Together with our partner Hotel Properties, we will bring extra value to this prime Alexandra Road site. We plan to make it a branded residence featuring new lifestyle concepts.'

The Gillman Heights project is targeted at the 'high mid-tier' market and is slated for launch in 2008. 'We will continue to be active in the market to invest in sites that will cater to the broad spectrum of home-buyers, ' added Ms Chia.

In a statement released yesterday, CapitaLand said that it will place out 500,000 ordinary shares representing 50 per cent of the total issued share capital of Ankerite Pte Ltd - also the company used to acquire Gillman Heights - for a cash consideration of $500,000.

CapitaLand said the placement is in line with the group's 'capital productivity strategy', and plans to deploy the capital from the placement to invest in other residential sites.

CapitaLand said it will be the lead development manager for the project, responsible for the full spectrum of sales and marketing, product design and development and project management.

HPL and the two private funds will extend proportionate shareholders' loans, which currently comprise primarily the stamp duty amounting to $16.4 million and the 5 per cent deposit paid for Gillman Heights. Upon completion of the deal, CapitaLand's interest in Ankerite will be reduced to 50 per cent and Ankerite will become an associated company of CapitaLand.

In statement released yesterday, HPL said that its interest in Ankerite through its wholly-owned subsidiary HPL Orchard Place will be funded by internal resources and/or bank borrowings

Straits Times: Firm loses suit against owners who call off $30m deal

2007-05-17T19:39:00.000+08:00

May 16, 2007

Firm loses suit against owners who call off $30m deal
Delays ended in deal being cancelled.
Owners to keep $3m deposit, have got $42m offer from another buyer
By Selina Lum

THE owners of a 10-unit residential property in the prime Somerset area have scored a victory in the High Court against a company that had sued them for cancelling a $30-million collective sale. The owners had been keen on the deal, but delays ended in it not going through.

On Monday, Justice Judith Prakash agreed that the owners of Mayer Mansion on Devonshire Road were therefore right to rescind the sale-and-purchase agreement last month.

The 13 owners, represented in court by Mr Hri Kumar and Mr Tham Feei Sy of Drew & Napier, will also get to keep the $3 million deposit paid by Travista Development, a foreign-owned property developer.

And in a property market that is steadily hotting up, the owners have also since received a higher offer of $42 million from another buyer.

It all began on Dec 12 last year, when Travista - incorporated in Singapore just six days before this - agreed to buy Mayer Mansion to redevelop it. It offered the owners $30 million in the collective sale. But because Travista was foreign-owned - its sole shareholder is based in the British Virgin Islands - it had to obtain government approval to buy the property.

Travista applied to the Singapore Land Authority (SLA) for the approval, known as a qualifying certificate, on Dec 21. Eight days later, the SLA approved the application, subject to the submission of a banker's or insurance guarantee for $3 million.

The owners' position was that, based on the agreement, the transaction was to be completed on March 12. When Travista failed to complete the purchase by that date, the owners issued a letter giving it 21 days to do so. By the end of the grace period, the deal had still not gone through. According to the terms, the agreement was then considered as rescinded.

On April 3, Travista sued the 13 owners and applied for an injunction to restrain them from exercising their rights under the agreement. The application was turned down. Two days later, the owners notified Travista that they had rescinded the sale-and-purchase agreement. On submitting its $3 million, Travista finally obtained the qualifying certificate on April 11.

Last Tuesday, when the suit came before Justice Prakash, Travista wanted the court to declare that it was entitled to complete the purchase and that the 21-day notice period was null and void. But the lawyers for the owners argued that Travista had been obliged to use its 'best endeavours' to obtain the certificate and to do so 'without delay'. 'While the completion is determined by the date of receipt of the qualifying certificate, the plaintiffs are not entitled to drag their feet in procuring it,' they argued.

On Monday, Justice Prakash dismissed Travista's case. She declared that the agreement was rescinded, that the 21-day notice was valid, and that the deposit paid by Travista had been validly forfeited. She also ordered that the caveats lodged by Travista - to prevent the sale of the property - be lifted. Travista was also ordered pay the owners costs of $15,000 plus disbursements.

Today: Sweeter deal for Neptune Court

2007-05-17T19:29:00.000+08:00

Tuesday May 15, 2007
Sweeter deal for Neptune Court

The offer has been sweetened for residents of Neptune Court estate
(picture), who are being wooed to sign an en bloc deal.

The legal team and property consultants hired by the estate's pro-
tem sale committee are now offering a reserve price of between $1.37
million and $1.67 million per unit, depending on the size, which is
25 to 40 per cent higher than an offer made in March. This means
owners of the bigger apartments now stand to gain up to $500,000
more.

On Sunday, lawyer S K Phang told a packed meeting of residents that
potential buyers of their 750-unit estate included the Suntec
Development Group and Hong Kong tycoon Li Ka Shing.

The deal requires the consent of 80-per-cent of the apartment
owners. As Today reported last week, getting this has been anything
but a smooth process, with strong opposition from some residents and
a fall-out that saw several members of the original sale committee
split to form their own pro-tem group.

Mr Philip Williams, who sits on the original committee and
represents owners who do not want to move, was not convinced by the
latest offer. To privatise the estate, each owner has to fork out
about $500,000, he said, on top of paying the Ministry of Finance,
which owns part of the land, leaving just $870,000 to $1.17 million
for each owner.

The residents yesterday requested for an "emergency" meeting with
the Neptune Court Owners' Association, he said, to ask it to pay for
a land survey to determine exactly how much to pay the ministry

Straits Times: Anson Road site to be put up for tender

2007-05-15T13:35:00.000+08:00

May 15, 2007

$172M OFFER MADE
Anson Road site to be put up for tender

A PLUM commercial site in Tanjong Pagar is to be put on the market soon, after an unnamed developer said it would bid at least $172 million for it.

The 39,826 sq ft site at the junction of Anson Road and Enggor Street will be put up for tender in two weeks' time, the Urban Redevelopment Authority (URA) said yesterday. A 50-storey block of offices or shops can be built on the triangular plot, which has a total potential gross floor area of about 383,809 sq ft.

Keen interest is expected for the site, said property consultancy CB Richard Ellis (CBRE). Mr Li Hiaw Ho, executive director of CBRE Research, said offers are likely to come in at double the $172 million initial bid, based on recent land sales and investment transactions.

The $172 million offer works out to $448 per sq ft per plot ratio (psf ppr), he said. But the site 'is likely to be awarded at above $900 psf ppr'.

'In view of the critical shortage of office supply, we would expect good interest in this site,' Mr Li added.

The 99-year leasehold land parcel was put on the URA's reserve list in March. Under this system, the Government will put a site up for public tender if a developer agrees to bid for it at an acceptable minimum price.

Straits Times: Ailing Dhoby Xchange hopes to turn things around

2007-05-15T13:30:00.000+08:00

May 15, 2007

Ailing Dhoby Xchange hopes to turn things around
3 new food outlets open at mall, rents cut for remaining tenants, DJ hired to promote sales
By Arlina Arshad

TRANSPORTATION giant SMRT Corp may be exploring alternative ways of attracting visitors to its ailing shopping complex at Dhoby Xchange. Tenants told The Straits Times that they believed the company had plans to turn the mall, previously taken up by retail fashion outlets, into a foodcourt.

When The Straits Times posed a series of questions to SMRT Corp via e-mail, including its future plans for the mall, the company would only say: 'We are committed to making Dhoby Xchange a success and will continue to work with tenants and initiate marketing promotions to raise awareness and draw shoppers to Dhoby Xchange. 'As for new tenants, we are in talks with interested parties and hope to bring them onboard soon.'

At least three new tenants - all selling food and beverages - have joined the mall since last month, bringing the total number of food outlets to five. Two were on short-term contracts.

One of the newcomers, Ms Lily Chua, 40, said she paid SMRT $2,000 to rent a space to sell tidbits for a month, starting last Friday. Her neighbour, chicken rice branch Cr@Prinsep, also started last Friday. However, neither is doing well.

Ms Chua said she would not extend her contract because business is not good. 'My takings are about $100 a day. I could earn $800 a day at my other shop in Toa Payoh,' she said.

Chicken rice outlet partner, Mr Pang Toon Sai, 48, said he has signed a three-month contract, and will stay long term if returns are reasonable. 'We want to stay long term, but we must also look at dollars and cents. But dollars and cents don't look good now, and we need the management to support us,' he said.

Mr Pang said he hoped that SMRT would offer subsidised rates to tenants wishing to invest in advertising posters. Despite several attempts to convince tenants to stay, more stores at Dhoby Xchange have closed.

Over one-third of the 54 shops at Dhoby Xchange have closed down since the beginning of April. The rest are staying put, paying 20 to 30 per cent less rent from this month to September. The reduced rental is a move by SMRT Corp to help them tide over the bad times. Although business is still slow, many tenants were not willing to pay the penalty for walking out - two months' rent and security deposit.

The Straits Times understands that quitting in this way would set every tenant back by between $30,000 and $80,000. SMRT Corp has offered some struggling tenants shop space closer to the entrance at a nominal fee, and at least three have accepted.

One, who declined to be named, said she used the opportunity to clear stocks. In March, The Straits Times reported that five tenants at the mall had closed for good, despite their obligation to remain until their three-year leases run out in 2008. These tenants are still in arrears, and have received letters from SMRT threatening legal action. Some have engaged lawyers to negotiate with SMRT.

One of the tenants, who owes about $16,000, said: 'I will not pay until I reach a reasonable settlement with SMRT. We have already suffered heavy losses. SMRT started offering rebates only after we left. I am disappointed. '

The Straits Times understands that another batch of over a dozen who left is settling the penalty in instalments over six months. When The Straits Times visited the place yesterday, 21 shops had closed. A deejay has been engaged since last Friday to play music and promote sale items.

Today: Orchard Towers in the crosshairs

2007-05-15T13:23:00.000+08:00

May 15, 2007

Orchard Towers in the crosshairs
Sale committee looking into possibility of en bloc deal for landmark building
Loh Chee Kong

ORCHARD Towers and its infamous nightclubs could soon be a thing of the past, should it become the latest along Singapore's premiere shopping belt to feed the en bloc frenzy. Today understands that early last month, the owners of the building one of the oldest shopping centres on Orchard Road elected a sale committee at its annual general meeting to study the possibility of a collective sale. The freehold property, which is well past its 30th year and made up of two 25-storey blocks, comprises a car park, offices and retail space, as well as several apartments.

But it is the nightclubs and pubs which have earned the notorious tag of "four floors of whores" that make the building come alive at night, attracting droves of expatriates.

With the property market booming, commercial and residential developments along Orchard Road are in high demand. An en bloc bid could command prices of up to $1,800 per square foot, property analysts told Today.

At the nearby Tanglin Shopping Centre, owners were reportedly considering an en bloc sale that could see them pocket about $500 million. Another ageing shopping centre in the vicinity, Ming Arcade a 10-storey building where units mainly served as storage spaces was sold collectively last year for $61 million.

While predicting a keen interest in Orchard Towers, Knight Frank research director Nicholas Mak said a collective sale could fetch more were the adjacent property, Palais Renaissance, included in the redevelopment. Mr Donald Han, managing director of Cushman & Wakefield, felt that an en bloc sale would help Orchard Towers shed its sleazy reputation. "Orchard Towers is in a very prime location, except that it has a certain stigma attached to it. The best way to get rid of it is to redevelop it with a fresh concept," he said.

The area, while "not as active" as other parts of Orchard Road, has "a lot of potential". There has been market talk that Hotel Properties Limited, which owns Forum The Shopping Mall and Hilton Hotel just across the road, would redevelop these properties, creating "a new cluster altogether", said Mr Han.

Any redevelopment of Orchard Towers would likely retain its original mix of retail, offices and residential units, said Mr Mak. "This is Orchard Road, after all. A shopping space would make the most sense."But the very nature of the mixed development could make consensus for a collective sale harder to come by. For one, the distribution of proceeds would be controversial, with shop-owners arguing over whose shop is better located and hence, more valuable.

Orchard Towers is managed by Chesterton International and, according to the residents, the management corporation has put up notices informing them of the en bloc attempt.

Should the sale committee decide to proceed, under current legislation, an 80-per-cent consent majority in terms of share values would be required. But with the Government's proposed changes to the law the majority consent would also have to be based on ownership of units. This would give more say to residents, vis a vis commercial owners, in a mixed development. Mr Eric Lim, who has been living in Orchard Towers for 24 years, said there are 58 residential units, including two penthouses which make up 10 per cent of the share values, according to another resident.

Said Mr Lim: "I'm against the en bloc sale. I've lived here for very long. There's a supermarket downstairs, a pharmacy and a food court. I've everything I want here." But one owner of an electronics shop, who has been in business for 25 years, was all for the sale given his "very poor" business. He said: "People don't come here to buy my stuff. They come here for the women and only at night. I might as well get the money and pack up and leave." An employee at one of the night clubs told Today it would be "a pity" if Orchard Towers goes. "When you come to Orchard Towers, you know what you are here for and what this place is about. If we move somewhere else, business would be different," he added.

Business Times: Parakou Building sold at near record price

2007-05-15T13:21:00.000+08:00

May 15, 2007

Parakou Building sold at near record price
Its $2,013 psf price is the highest in the current office cycle
By KALPANA RASHIWALA

PARAKOU Building, a low profile but spanking new office building at the corner of Robinson Road and McCallum Street, has been sold at $2,013 per square foot (psf) of net lettable area - the highest in the current office cycle.

The 16-storey freehold building was completed last year and has a net lettable area of about 63,580 square feet. Jones Lang LaSalle (JLL) is said to have advised the buyer.

The $2,013 psf deal surpasses the $1,783 psf achieved last month for SIA Building - when German pension fund manager SEB bought the property for $526 million from seller TSO Investment - a fully owned subsidiary of a property fund managed by CLSA Capital Partners.

SIA Building is on a site with a remaining lease of 86 years. The sale of SIA Building was also brokered by JLL.

Market watchers reckon that with the current buoyant office market conditions, it is just a matter of months before the all-time office price record of $2,200 psf set in early 1996 is surpassed. That was when Straits Steamship Land, now Keppel Land, sold seven floors of what is now known as Prudential Tower in the China Square area to Prudential Assurance Company Singapore.

Office rental and capital values in Singapore have shot up on the back of a shortage of office space and strong demand.

JLL's Q1 2007 Asia-Pacific Property Digest shows that capital values for Grade A office space in Singapore have jumped 82.7 per cent year-on-year to US$14,258 per square metre. Over the same period, rental values have risen 106.2 per cent to US$820 per square metre per annum.

Business Times: Farrer Court's price tag expected to hit $1.5b

2007-05-15T13:16:00.000+08:00

May 15, 2007

Farrer Court's price tag expected to hit $1.5b
Asking price is the highest yet for an en bloc site
By KALPANA RASHIWALA

THE first collective sale with a price tag of more than $1 billion has now arrived, as Farrer Court goes on offer with an official expected price of about $1.5 billion - around $850 per square foot of potential gross floor area.

Sources say the reserve price is $1.2 billion, or slightly over $700 psf per plot ratio (psf ppr) inclusive of around $460 million payable to the state for enhancing the intensity of the District 10 site to a 2.8 plot ratio and for topping up the site's lease from a remaining term of about 69 years to 99 years.

Market watchers say that more billion-dollar collective sale properties could come on the market this year - including The Claymore in the prime Claymore Road area and Neptune Court at Marine Vista - if some owners in these estates have their way.

Farrer Court is a privatised HUDC estate. Its $700 psf ppr reserve price and $850 psf ppr official expected price look reasonable compared with the $1,062 psf ppr that GuocoLand paid last month for the freehold Leedon Heights, according to some property players.

However, the sheer extent of the Farrer Court site and the huge outlay involved mean that it will appeal to only big players.

Whether at the reserve price of $1.2 billion or the officially expected price of $1.5 billion, Farrer Court has the highest asking price for a collective sale yet attempted. At 838,488 sq ft, it has the biggest land area for an en bloc sale site. The maximum potential gross floor area of almost 2.35 million sq ft for the site - or about 1,800 apartments averaging 1,250 sq ft - means that a new development on the site would be the largest condominium development yet to be undertaken in Singapore, according to Farrer Court's marketing agent Credo Real Estate.

The all-in land cost alone to the successful developer will amount to $1.662 billion based on the $1.2 billion reserve price - or $2 billion if the sellers get their $1.5 billion officially expected price. Construction costs, fees, interest and holding costs could add a further $1 billion to $1.1 billion.

Despite the huge outlay involved, Credo is confident of the site being sold.

Credo executive director Tan Hong Boon says 'several large developers have been following up closely with us on the progress of Farrer Court for a few months'.

The property consultancy' s managing director, Karamjit Singh, sees bids for the site coming from developers partnering one another or with equity investors. 'I think larger developers will see the value of what Farrer Court has to offer - the site has the characteristics for an iconic huge development like Reflections at Keppel Bay, involving big-name architects,' Mr Singh said, adding that 'Farrer Court's reserve price is reasonable'.

Market watchers estimate the $1.2 billion or $700 psf ppr reserve price will result in a break-even cost of about $1,200 to $1,250 psf for a new luxury project on the site. They also reckon that achieving an average selling price of around $1,600 psf or even more for a new 36-storey, 99-year leasehold project on the site in about a year's time should be possible, based on current market projections.

'Farrer Court is very unique in that it is the only private residential site in the Farrer Road and Holland Road vicinity that is accorded a high plot ratio of 2.8 and a height control of up to 36 storeys. Most of the surrounding sites are either landed housing, low or medium-rise developments up to five or 12 storeys,' Mr Tan notes.

More than 80 per cent of owners of Farrer Court have signed the collective sale agreement (CSA). Rodyk & Davidson is representing the majority owners.

BT understands that based on the $1.2 billion reserve price, owners will receive $1.9 million for the smaller units of 1,453 sq ft and $2 million for the bigger units of 1,615 sq ft.

When signing of the CSA began in September last year, the pricing was slightly above $700 million, reflecting sales proceeds of $1.1 million and $1.2 million for the owners of smaller and bigger units.

Business Times: Property groups post sharp profit jumps

2007-05-14T12:46:00.000+08:00

May 14, 2007
Property groups post sharp profit jumps
More gains to be had from upcoming residential property launches, reports ARTHUR SIM

FIRST quarter results for listed property companies are mostly in, with several posting a huge increase in profits.

Top of the list is CapitaLand with earnings of $608.1 million, a huge 369.4 per cent higher than a year earlier. Taking advantage of the dramatic upswing in the office space sector, it sold Temasek Tower to chalk up a fair-value gain of $472.9 million. It also registered a portfolio gain of $130.5 million, partly from the sale of office space in Samsung Hub.

CapitaLand's residential business unit's first-quarter earnings before interest and taxes (Ebit) increased 80.6 per cent from $67.1 million to $121.2 million year-on-year, attributed to higher profits from Singapore operations.

City Developments Ltd, Singapore's other property major, will announce its results soon and analysts expect a strong performance. Kim Eng's Wilson Liew expects a net profit of about $100 million, also on the back of the strong office space sector. 'Income is likely to come from the sale of remaining units in previously launched residential projects and rental income from office space like Republic Plaza, which is asking about $15 psf per month now,' he said.

News that options to buy units at One Shenton condominium were returned is not a bad sign for the company, Mr Liew said. 'One Shenton was launched before the new benchmark by Orchard Residences was set. This means it could relaunch the units returned at a higher price now.'

Ho Bee Investment reported some of the most impressive Q1 numbers with a year-on-year increase of 484.8 per cent. Profit climbed to a record $76.5 million, from just $13.1 million a year earlier.

The group's property development activities registered a turnover of $242.9 million - up 381 per cent over the corresponding period last year. Recognition of income from the sale of its 249-unit The Coast at Sentosa Cove project was a major contributor. The Coast was launched at an average price of around $1,500-$1,600 psf in October last year.

UOB Kay Hian analysts point out that Ho Bee is the biggest developer on Sentosa and still has Waterfront Collection and Seaview Collection at Sentosa Cove to launch. In a note released on May 8, UOB Kay Hian said that net profit for Q1 2007 was 31.5 per cent of its full-year 2007 forecast and slightly above expectation due to earlier recognition of profit. UOB Kay Hian has since revised its FY07 earnings forecast for Ho Bee to $267.9 million. 'We continue to like the stock for its strong positioning in Sentosa as well as its astute management,' the broking house said. 'We reiterate 'buy' with a target price of $3.00 based on 10 per cent premium to our RNAV (revalued net asset value) estimate.'

Q1 earnings for Allgreen also increased significantly year-on-year. Net profit was up 309 per cent to $49.6 million. CIMB analysts noted that quarterly revenue of $181 million was boosted by income recognition from Blossoms@Woodleigh and Cairnhill Residences, but said also that rental rates and occupancy at Great World City and Traders Hotel continued to improve.

'Asking rents for Great World City offices have reached $6.50 psf per month, up an estimated 12 per cent from the start of this year,' CIMB said.

Keppel Land reported a Q1 net profit of $62.5 million. But in comparison to the top gainers, the percentage change year-on-year was more 'moderate' at 71.9 per cent.

Earnings largely came from higher residential sales, with profit after tax and minority interests (Patmi) from property trading up 190 per cent to $56.5 million.

Net profit from Allgreen's Singapore business grew 162.8 per cent to $45.2 million, but profit from overseas ventures fell 9.4 per cent to $17.3 million. Overseas earnings contributed less, dropping from a 53 per cent contribution in Q1 2006 to about 26 per cent in Q1 2007.

The first phase of Keppel Land's 1,129-unit Reflections at Keppel Bay was launched in April so revenue will not have been booked yet.

Residential property launches will continue to factor big in the coming quarters, with completed new supply expected to be tight. Phillip Securities Research estimates that 2007 and 2008 will see 4,500 units and 7,600 units respectively. It believes huge supply will come into the market in 2009 and 2010 with about 16,800 units and 14,400 units completed, respectively.

Phillip Securities analyst Pang Chin Hong also notes that City Developments had the largest share of new launches in Q1 2007 at 22 per cent. Fraser and Neave Limited's property arm Frasers Centrepoint Homes had 10 per cent, while Allgreen and Ho Bee Group had 5 per cent each.

Companies with exposure to the office space sector also look set to gain, with acquisition interest expected from foreign funds. Temasek Tower was bought by Macquarie Global Property Advisors for $1.04 billion and Mr Pang expects institutional investors' interests in prime office properties to continue.

Sunday Times: 'Pay more or get out'

2007-05-13T21:46:00.000+08:00

May 13, 2007

'Pay more or get out'
Tenants feel the heat, with some forced to downgrade, as rents of private units spike
By Melissa Sim

WHEN the lease on her River Valley apartment came up for renewal, 31-year-old operations manager Jordana Brumby was told her rent was going up by $1,000 a month - an increase of 55 per cent from the $1,800 she used to pay.

It was galling, but the Australian, who now pays $2,800 a month for a three-bedroom unit at Nathanville, felt she had no choice because 'everything else was much dearer and not as attractive'.

After about eight years of stagnation, the rental market has been picking up steadily in recent months. Bad news for tenants, good news for owners.

Urban Redevelopment Authority (URA) figures show that private residential property rents rose 7.6 per cent in the first quarter of this year, compared with a 5.3 per cent increase in the last quarter of last year.

Property agents said that since last year, rents have gone up by at least 20 per cent to 30 per cent across the island, and not just in the prime central districts such as Orchard, Newton and Tanglin.

According to figures from property agency ERA, rents in the western parts of Singapore such as Bukit Batok and West Coast have increased 28 per cent, while rents in eastern areas like Tampines and Pasir Ris have risen 23 per cent.

Although rental prices have surpassed the last high in 2000, they have yet to break the 1998 records. But ERA assistant vice president Eugene Lim predicts that 'at the rate we are going, there may be a new record high this year'. Mr Lim said the buoyant rental market is due to strong demand from foreigners.

And generally, when the economy is good, as with other bustling cities like Hong Kong and London, ' there are more expatriates who need homes', said Mr Mohamed Ismail, chief executive of property agency PropNex.

High demand is clashing with limited supply, due to the 'fall in stock of property available for lease due to collective sales', said Mr Lim. He added that the market has lost about 6,000 units in the past two years. In contrast, the number of foreigners coming to Singapore grew by 9.7 per cent last year to 875,500, the biggest leap in six years.

While tenants feel the squeeze, landlords like Madam Jenny Khoo are celebrating. Madam Khoo rented out her 1,340 sq ft apartment at Tanglin Park for $3,100 a month last year. This year, a new tenant was willing to pay $5,200, an increase of nearly 70 per cent. 'We were expecting more rent, but we didn't expect it to be so high,' said the housewife.

Rentals have even gone up for HDB rooms. Suddenly, it is no longer a buyer's market and landlords have the luxury of adopting a take-it-or-leave- it attitude, forcing many tenants to downgrade.

When engineer Sue Lim, 27, moved into her three-bedroom unit at Springdale Condominium in Upper Bukit Timah in June 2004, her rent was $1,300 a month. Last June, her landlord raised it to $1,400. When the rent was increased again to $1,800 in January, she decided to downgrade. Ms Lim now pays $1,200 for a four-room HDB flat in Toh Yi Drive.

Many who have not downgraded are struggling.

'About a third of my pay now goes to rent and it's burning a hole in my pocket,' said Miss Brumby. 'I'm really starting to regret it.'

Sunday Times: $550k extra lure for second en-bloc attempt

2007-05-13T21:42:00.000+08:00

May 13, 2007
$550k extra lure for second en-bloc attempt
Two months after first try, it is estimated that largest Pine Grove unit will get a minimum $1.75 million
By Nur Dianah Suhaimi

BARELY two months after owners at Pine Grove estate rejected a collective sale, a fresh attempt has been made to lure them, with an extra $550,000 per unit.

In February, only about 50 per cent of the 660 owners in the sprawling ex-HUDC estate in Ulu Pandan voted for the sale, which would have earned them up to $1.2 million each.

This was well short of the 80 per cent requirement.

Now, according to a letter circulated to Pine Grove residents by one home owner, property experts have estimated that the largest unit should not be priced lower than $1.75 million.

And unlike the previous attempt, the new initiative promises to secure 80 per cent support from home owners first before even proceeding to form a sales committee.

Usually, a group of residents will form a sales committee on their own, appoint a property consultant and then try to secure support from at least 80 per cent of owners.

A sales committee has not been formed yet and the letter writer declined to be interviewed.

Mr Karamjit Singh, managing director of Credo Real Estate, said he was not surprised by the 40 per cent spike in the expected minimum price. 'It's not impossible. In the past six months, property prices have jumped quite substantially, ' he said.

The February attempt to sell en bloc had met with resistance because many owners feared the hot property market would force them to downgrade to less spacious flats. At around 1,750 sq ft, most units at the 99-year leasehold development are big by today's standards.

Project manager K.K. Pang, 54, voted against the last attempted collective sale. 'With the previous offer of $1.2 million, there was no way we could have bought a similarly spacious apartment in this area,' he said.

The Sunday Times interviewed 12 home owners in Pine Grove and almost all said they would agree to the sale if offered $550,000 more. Many believe their units deserve the additional sum because of the size and the estate's close proximity to the Dover MRT station and various other amenities.

However, property consultancy Knight Frank's head of research, Mr Nicholas Mak, is sceptical that the second attempt will go through. Said Mr Mak: 'The weak response in the first round might have put off property consultants from getting involved in Pine Grove. Why put in so much effort and resources into a lame duck?'

He also warned that some collective sale initiatives are not genuine, but rather a ploy by some home owners to drive up the value of their unit.

DTZ Debenham Tie Leung, the firm engaged to handle the first collective sale, said it is not involved in the fresh initiative, but did not rule out the possibility of getting involved again if invited.

'I'd say the second time is always easier. Sometimes during the first round, owners are not ready to give up their units. By the second round, they'd have had sufficient time to reconsider,' said Ms Tang Wei Leng, DTZ's director for investment advisory services.

Some owners, however, insist on staying put despite the prospect of making a huge profit.

Financial assistant Louissa Ang, 24, moved into her Pine Grove flat two years ago and spent $60,000 on renovations. Said Ms Ang: 'This is my matrimonial home and I just moved in. I don't want to start searching for another house so soon.'

Sunday Times: No longer new kids on block, but still on A-list

2007-05-13T21:35:00.000+08:00

May 13, 2007
No longer new kids on block, but still on A-list
Top condos of times past that are still popular tend to be those in prime spots and which are well-maintained
By Property Correspondent, Joyce Teo

THEY were top of the heap a few years ago, the ever so hip and grand condominiums that Singaporeans and expats were keen to call home.

Any roll call would include The Colonnade, Paterson Edge, Four Seasons Park and Ardmore Park. Go outside the Orchard Road area and you have The Bayshore, once coveted for its sea views before Costa Del Sol was plonked in front of it.

But even though many of them have fallen out of favour, a select few, mostly those in prime locations, have stood the test of time.

Singapore's first condominium, Beverly Mai, which was built in 1974, was sold en bloc in April last year for $238 million, or about $1,184 per sq ft (psf) of potential gross floor area. Its selling point was not nostalgia but its position in ever-so-prime Tomlinson Road.

Other such condos in coveted districts 9 and 10 would also have kept their value well, property consultants say.

A condo with unique design features and layout can command a rental premium but location is a prerequisite, says Chesterton International' s head of research and consultancy, Mr Colin Tan.

And if expats like the condo, its value will also stay buoyant, he added.

With time and changing trends, those unique features or frills that wowed buyers in days past tend to matter less and less when it comes to determining price, says Savills Singapore's director of marketing and business development, Mr Ku Swee Yong.

'If your condo's features are unique, they are usually very quickly copied anyway,' he says, pointing out that the key to good valuation is the upkeep of the place. 'Whether or not it has unique designs or features, a property's value will be sustained if it is well-maintained.'

Certainly, prime developments such as Four Seasons Park in Cuscaden Walk and Ardmore Park just behind Orchard Road are still very much in demand. Sales at Ardmore Park have been steady, with four recent transactions done at $7 million or more for a 2,885 sq ft unit. That translates to at least $2,426 psf.

And The Colonnade in Grange Road, which features a unique columnar structure designed by the late New York architect Paul Rudolph, has maintained its rental levels, largely because they are controlled by the developer and the building is well-maintained, says an agent.

Developer Pontiac Land has kept the 90-unit block, completed in 1987, for investment. The project has very large units, ranging from 2,700 sq ft two-bedders to 12,700 sq ft penthouses, for lease. A two-bedder costs about $11,000 a month while a three-bedder costs between $16,000 and $16,500.

'It is the budget that drives what tenants can choose,' says Ms Kavita Borglin, an agent with Premiere Realty. But a unique building such as The Colonnade can help in attracting tenants, she adds. Otherwise, the upkeep of an apartment is more important than whatever design the developer has graced - or inflicted - the exterior with.

Take Arcadia Gardens in Adam Road - its spacious 3,800 sq ft units can command $14,000 to $15,000 a month if renovated, but just $9,000 to $10,000 otherwise, says Ms Borglin. She adds that potential tenants do not bother to view units in a development if they do not like the exterior.

Some estates get a chance at a second lease of life. The ageing Pandan Valley, for instance, which created a splash many years ago for its then-unique features such as maisonette units, full facilities and retail shops, has seen prices rise amid the collective sale fever. Caveats lodged in March showed that two units were sold - one at $574 psf and the other at $612 psf. But a 2,239 sq ft unit was sold at a higher $750 psf or $1.68 million in February. Four caveats lodged in May last year showed that sales for units ranging from 1,690 sq ft to 3,089 sq ft were done at just $474 psf to $518 psf.

Business Times: Remaining Pavilion Park units for sale this weekend

2007-05-13T21:29:00.000+08:00

May 12, 2007
Remaining Pavilion Park units for sale this weekend
By ARTHUR SIM

ALLGREEN Properties has sold 70 per cent of its 43-unit Pavilion Park (Phase Two) and will launch the remaining 12 units this weekend.

Allgreen general manager Yong Voon Chen said: 'This is not surprising at all, given that there are very few landed projects being offered island-wide. '

The second phase of Pavilion Park, which is off Bukit Batok Road, was previewed last week. For the remaining units, terrace units will be priced from about $1.4 million while semi-detached units will be offered from about $1.8 million. Sizes of the units range between 2,926 sq ft and 3,214 sq ft inclusive of roof terraces.

The freehold development is expected to be completed by 2009. Pavilion Park (Phase One) was first launched in 1999 and all 78 units offered for sale were sold within fours hours of the launch.

Prices then were reported to be between $1.37 million and $2.03 million for terrace units and between $1.67 million and $2.06 million for semi-detached units.

Pavilion Park is being marketed by CB Richard Ellis, and its director (residential) Joseph Tan said: 'We are at the upswing of the market at the moment and there is no better time than now to enter the landed property market.'

Business Times: F1-driven rush for rooms begins

2007-05-13T21:21:00.000+08:00

May 12, 2007
F1-driven rush for rooms begins
Hotels along proposed route report bookings and enquiries
By VINCENT WEE

(SINGAPORE) Even with no definite date for the Singapore Grand Prix, hotels on the proposed F1 route are already reporting a huge number of requests for room bookings for likely weeks.

The phones started ringing within minutes of the official announcement that Singapore will be hosting the race from 2008, hoteliers said. Industry sources also told BT that corporates like Daimler-Chrysler and some of the banks had made big block bookings for their premium clients at Swissotel The Stamford, one of the hotels along the route, while other hotels have reported heavy corporate bookings even though there is no word on when the motor race will he held.

At the Pan Pacific, public relations manager Cheryl Ng said: 'The hotel began receiving inquiries for accommodation shortly after the announcement was made.' Other hotels along the route include Marina Mandarin, The Oriental, Ritz-Carlton, Conrad, Raffles Hotel, and The Fullerton.

The money will not all be flowing one way. The hotel trade will, however, be expected to help stump up some of the $150 million the event is expected to cost - but reactions to the F1 cess announced yesterday were generally positive. 'We're supportive of it,' said Ritz-Carlton' s director of public relations Evelyn Yo.

Daimler-Chrysler and some of the banks are said to have made big block bookings for their premium clients at Swissotel The Stamford. Marina Mandarin's general manager Tony Cousens said: 'F1 will be a great event for Singapore, fantastic international positioning for Singapore and, as such, as with other destinations for events, a levy to support it will be understandable. '

Likewise at Pan Pacific, where Ms Ng said: 'The confirmation of this event is extremely encouraging, not only for the hotel but for the outlook for the hospitality industry on the whole and with this news, the hotel will be starting a committee to begin preparations for this event.'

The general manager of Royal Plaza on Scotts, Patrick Fiat, said: 'It's definitely a big boost for tourism in Singapore and one of the best things that can happen for the branding of the country.'

Hoteliers were, however, unwilling to comment immediately on how room rates will be affected by the levy and by the race it is intended to help pay for. While acknowledging that the Grand Prix will be an excellent opportunity to boost business, most said they would need more time to assess the supply and demand situation at the time.

'Although it is too early to predict the rate changes at this stage, we expect an increase,' said Ms Ng.

'This will become clearer once we have an idea of the final concept - day or night - which will generate the expected tourist arrival numbers and subsequently, the demand. This is encouraging for local hotel rates in general, which are still behind other Asian cities like Shanghai and Hong Kong.' Even without this new attraction, hoteliers were already looking forward to a 20 per cent year-on-year rise in room rates.

Clearly, with the addition of the race cess, they can be seen to rise by at least 50 per cent - although the experience in other F1 cities like Monaco and Melbourne suggests that rates could be at least 2-3 times the normal charges during the race period.

Business Times: S'pore F1 on the starting grid

2007-05-13T21:16:00.000+08:00

May 12, 2007
S'pore F1 on the starting grid
Ong Beng Seng, STB, hotels to jointly foot the bill; F1 cess of not more than 30% to be levied on room rates
By SAMUEL EE

(SINGAPORE) After months of intense speculation, it was finally announced yesterday - Singapore will host the Formula One Grand Prix from 2008 for five years, with the tab to be picked up by the race promoter Ong Beng Seng, the Singapore Tourism Board, and the hotels in the vicinity of the proposed route.

The cost of staging an F1 race can be up to $150 million, said Minister of State for Trade and Industry S Iswaran at a press conference yesterday.

'Given the broader economic benefits from an F1 race that do not accrue to the race promoter, there is a case for commensurate support from public funds,' said Mr Iswaran. 'STB will therefore co-fund about 60 per cent of the cost of the event from the Tourism Development Fund.'

Flanked by Mr Ong and STB chief executive Lim Neo Chian, he added that since such an event also benefits Singapore hotels, which can double or treble their room rates, they will contribute via a special F1 cess on room revenues.

'The F1 cess will be for a limited period of around seven days around the race,' explained Mr Iswaran. 'It will be tiered so that track-side hotels which will benefit from the highest increases in room rates will pay a higher rate, and those farther away will pay a lower rate.'

The cess will not be more than 30 per cent and is expected to raise an average of $15 million to $20 million a year.

Mr Ong's newly-registered company, Singapore GP Pte Ltd, secured the rights from the Formula One Group after 12 months of negotiations. The first race will be held next year in September or early October and it will take place at night - an F1 first - if all safety requirements are met. The 5.2-kilometre street circuit will wind its way around the Singapore Flyer ferris wheel, past the Esplanade theatre, Fullerton Hotel and Padang, before turning into Raffles Boulevard and looping back by Republic Boulevard.

The government's aim is for a world class event like the F1 race to help make Singapore a vibrant global city filled with high quality entertainment and events. The race will also give the tourism sector a strong boost, generating incremental tourism receipts of $100 million a year. But Mr Iswaran said the benefits of F1 go beyond tourism.

As for Mr Ong, he is 'elated by the prospect of doing this and I hope I can do a good job of it'.

The 60-year-old property tycoon was motivated by personal interest to bring F1 here as well as his love of sports.

'I believe it's good for Singapore and it's good for F1 to be in Singapore,' said the normally media-shy hotelier. 'It's a good marriage and win-win for all parties.'

F1 supremo Bernie Ecclestone, speaking via teleconference, said there would not have been a race if not for his friendship with Mr Ong.

'It's not been too easy, without being rude to government officials,' Mr Ecclestone said drily, referring to the talks. 'But you've done a good job and it's all gone through fine.' Mr Ong also called the discussions trying and challenging, saying: 'It's tough in all aspects but well-supported by all government agencies.'

One source close to the negotiations claimed the deal almost fell through about a couple of weeks ago because the race owner had 'walked away from the table'.

'The government agencies wanted justification for things like the sanction costs and viewership numbers and the discussions had gone on for so long that the F1 management was going to give up on Singapore,' he said. But he added that there was pressure for a second F1 bid to succeed and the deal was salvaged. In 1989, Mr Ong had proposed building an F1 track but it was turned down by the government.

At yesterday's press conference, Mr Ong hinted at the possible difficulties, saying that up till last week, he didn't know whether a deal would happen or not.

He said problems related to 'the money part', the street circuit and leakages from buildings around the route. Leakages refer to the problem of people who don't buy a ticket but instead watch the race from a hotel room.

Questions were asked about the possible shortfall in revenue that Mr Ong's company would bear, but he replied by saying it was 'premature to go into financial details because the exact costing will depend on specifics'.

Straits Times: Delayed en bloc sale proves costly for some

2007-05-13T21:13:00.000+08:00

May 12, 2007
Delayed en bloc sale proves costly for some
Some face fines as they can't pay for new place on time; others give up on choice homes
By Amelia Tan

SOME residents in a Bedok Reservoir condominium are facing a financial crunch, now that they will get the money from the sale of their homes en bloc later than expected.

The Straits Times understands that, with their cheques expected to come at the end of the month, or even next month, instead of this week, at least five residents at Waterfront View have not been able to pay for their new properties.

They will need to stump out penalties because of this; some have even had to take up loans to pay these fines.

The delay was caused by two residents who were against the sale and had gone to court to fight it out, said Dr Kevin Tan, a resident and a member of the committee formed to oversee the en bloc process.

Aside from the few caught in a financial bind, there are others who are unhappy about the delay for a different reason: They said they have had to forego buying properties they have eyed because of the unexpected delay in the cashflow.

Among those who have to pay a penalty for not being able to complete the sale of their next property is Mrs Agnes Ho-Gupta, 54, who has to pay a $5,400 penalty on her new purchase in Loyang.

She said: 'We thought we could pay up for a new place within the specified grace period, but now, with the delay, I have to fork out a bit more.' She is resigned to the fine, but other residents are more anxious, and even irate.

One of Mrs Ho-Gupta's neighbours, Mr Warren Tan, 53, told The Straits Times how he had to give up on a home he would have liked to buy. 'My family and I found a home we liked a lot at the end of March after a two-month search. But the agent advised us not to buy it because we did not know for sure when we would get the money for our present home. We were very disappointed. '

Residents say that they first found out about the delay last week, when they got letters from their lawyers. 'Why did they tell us only now?' one asked angrily. He did not want to be named.

Dr Tan, the sale committee member, said the legal tussles had a spillover effect on the rest of the process. Now, the estimate is that lawyers acting on behalf of the residents of Waterfront View will eventually finalise accounts and give owners their cheques around early June.

Most residents now say that they are anxious about the process.

Said Mr Warren Tan: 'We have to start all over again to look for a new home. I really hope this goes through on time, this time.'

Straits Times: F1 comes to Singapore

2007-05-13T21:00:00.000+08:00

May 12, 2007
F1 comes to Singapore
By Wilfred Yeo, Deputy Sports Editor

FORMULA One's worst-kept secret is out: Singapore will host a leg of the Grand Prix circuit next year, with a race to be held in September or early October. Significantly, the race could well be a first in the 60-year history of F1: It will likely be held at night.

The Singapore Grand Prix will also be one of only three street races on the calendar for next year. Scarlet Ferraris, sleek silver McLarens and brilliant yellow Renaults will power around a 5.2km street circuit around the Marina Bay area, whizzing by local landmarks such as the Esplanade and City Hall at speeds close to 300kmh.

The only other cities with street circuits are the glamorous European ones of Monaco and Valencia. Singapore's five-year deal to stage the race, with an option for a five-year extension, is a partnership between Formula One Management boss Bernie Ecclestone and Singapore entrepreneur Ong Beng Seng.

It was announced yesterday by the Government, which will foot the lion's share - 60 per cent - of the cost of staging the race each year, which can reach $150 million.

'We are pleased to announce that Singapore will be hosting the F1 Grand Prix from 2008,' Minister of State for Trade and Industry S. Iswaran told a news conference yesterday evening.

He highlighted the benefits of a potential night race: 'It will be unique, different and allow the Singapore event to reach out to television audiences in Asia, Europe and the US.'

But he added that safety would be a paramount concern.

'We will proceed with a night race only if the safety and operational requirements of all parties are fully met. If not, we will revert to a day race.'

If Mr Ecclestone has his way, however, there is no doubt about the timing of the event. In fact, when questioned about it yesterday, he shot back: 'I think we can stop discussing the possibility of the race during the day.'

On safety issues, he said via tele-conference: 'I've spoken to the people who have been checking things out and we have no doubt that there has been no problem at all with the safety.'

So enthusiastic was Mr Ecclestone that he even rapped two F1 drivers -world champion Fernando Alonso, who called a night race 'impossible' , and veteran David Coulthard, who described it as 'a gimmick' - who questioned a race at night.

Mr Ecclestone dismissed their concerns out of hand, saying, to laughter: 'Fernando hasn't been around that long to be a judge of these things, and I don't think David will be around driving next year anyway, so we don't have to worry about that.'

Night or day, hosting the event brings Singapore enormous benefits.

For one, it will set tills in the hotel, retail, entertainment and service sectors ringing, to the tune of $100 million per event.

Mr Iswaran agreed that the event would give a strong boost to the tourism centre, but added: 'The hive of activity surrounding the race will create opportunities for individuals and companies alike.'

Quite apart from that, however, is a priceless benefit to the country as a whole: It will cement Singapore's reputation as a global city with a vibrant buzz.

Said Mr Iswaran: 'Singapore is a leading business centre, and our aim is to be a vibrant global city that is abuzz with high-quality entertainment and events.

A world-class event like an F1 race, with more than 500 million (television) viewers worldwide, will take us closer to this objective.'

The event will be managed by Singapore GP Pte Ltd, a newly incorporated race promotion company linked to Mr Ong, a long-time friend of Mr Ecclestone.

No details of the deal were announced, but by way of comparison, the licensing costs for the Shanghai GP are reported to be more than $40 million a year.

Other costs will come from preparing the circuit - which will involve resurfacing roads, for example - and safety-related and other infrastructure, among other things.

To pay for its 60 per cent share of the cost, the Government will dip into its Tourism Promotion Fund.

But since hotels in the area stand to gain significantly, the Government will try and recoup part of its cost by raising hotel taxes for a limited period of about seven days during the race period.

Hotels are expected to charge more during the race period, and the taxes will be tiered such that track-side ones that will benefit most from the race will pay the highest rate - 30 per cent.

Businesses and hotels in the Marina Bay area, as well as F1 fans, are already licking their chops at the prospect of a race here.

F1 fanatic Dicky Ong, 35, an IT manager: 'Goody. For the last four years, I've been going to Malaysia to watch the Sepang GP. Now it's coming to my doorstep.'

Business Times: JTC seeks Reit manager for its planned divestments

2007-05-11T18:06:00.001+08:00

May 11, 2007

IPO WATCH
JTC seeks Reit manager for its planned divestments
By ARTHUR SIM

JTC Corporation has begun its search for a real estate investment trust (Reit) manager as part of a move to divest its high-rise ready-built properties.

Following news last year of its decision to divest these properties through a combination of a Reit and trade sale, JTC yesterday announced its launch of a Request for Proposals (RFP) to explore the appointment of a Reit manager.

JTC CEO Ow Foong Pheng said: 'The RFP is expected to provide a rigorous process for us to find a suitable and qualified Reit manager. One of the objectives of our divestment exercise is to promote active competition in the industrial property market in Singapore so that existing and prospective tenants may benefit from more options and choices.'

JTC said that emphasis will be placed on Reit managers who have a proven track record of managing a listed or unlisted industrial Reit or property fund globally; or a listed or unlisted Reit or property fund in any sector in the Asia-Pacific region. The deadline for the RFP submissions is June 1.

Issues that could arise from this divestment are the impact on the competitiveness of the industrial property market as well as price stability and fair market value of the divested properties.

The properties it is divesting have a total net floor area of 1.7 million sq m. They consist mainly of flatted factories, ramp-up and stack-up factories, a warehouse building and three office blocks in the International Business Park and the Changi Business Park.

It is not known what properties JTC intends to put in a Reit. Market watchers have also pointed out that some properties will be more attractive than others.

Savills Singapore's director of industrial business space Dominic Peters also notes that there could be issues pertaining to the number of years left on leases of certain properties. However, Mr Peters said that the strategy to 'bundle' properties together could be effective in averaging out the valuations of properties that are less attractive. He reckons the key properties in the Reit will be the buildings in the business parks. 'Any Reit manager will want to include these because the occupancy is very high,' he added. But he also highlighted that the three business park buildings only account for about 5 per cent of the portfolio being divested.

On whether JTC could have considered launching a Reit on its own, CB Richard Ellis Research executive director Li Hiaw Ho said: 'An experienced Reit manager will be able to import best practices to the JTC Reit and, in turn, ensure that the properties are better managed. This will benefit both the tenants and unit holders of the Reit.'

Business Times: Accor to bid for Tanjong Pagar hotel site

2007-05-11T18:06:00.000+08:00

May 11, 2007

Accor to bid for Tanjong Pagar hotel site
By ARTHUR SIM

EUROPEAN hotel company Accor says it will put in a bid for a government land sales hotel site in Tanjong Pagar and will consider bidding for another site nearby.

Accor said it plans to build a 538-room Ibis hotel on the Bencoolen Street site it won in a public tender in December last year together with joint venture partner LaSalle Investment Management.

Ibis Bencoolen Street, in which Accor has a 30 per cent stake, will cost $145 million and will be the largest Ibis hotel in the world outside Paris.

Other Accor hotels in Singapore include Grand Mercure Roxy and Novotel Clarke Quay.

Making the announcement yesterday, Accor Asia Pacific managing director Michael Issenberg said the company had decided to move its Asia Pacific headquarters from Sydney to Singapore.

Saying that Accor has 100 hotels under development or in advanced stages of planning across Asia, Mr Issenberg added that 'Singapore is the perfect base to build and operate that network'.

Accor's hotel brands include the deluxe Sofitel, upper-scale Novotel and mid-scale Mercure. Ibis is Accor's economy hotel brand.

Mr Issenberg said that a flagship Sofitel in Singapore would be ideal, but Accor's key priority was to be financially prudent.

Accor may expand its time-share Accor Premiere Vacation Club here, and is considering buying properties in Singapore to do this. Mr Issenberg said that Accor has had discussions with developers although nothing has been finalised.

For Accor, economy hotels are viable as the company believes that people in the fastest growing markets such as China and and India are more likely to looking for quality three-star accommodation.

'There are many hotel projects in the pipeline in Singapore, but of the 7,200 rooms committed, only 10 per cent of this supply is in the economy segment, while 43 per cent is committed to the mid-tier segment and 47 per cent to the upper-tier sector,' he said.

Mr Issenberg said that when Ibis Bencoolen Street opens in 2009, room rates are expected to be between $100 and $110.

Ibis is Accor's fastest growing brand in Asia Pacific, with 35 hotels already operating and over 50 under development. In India alone, plans are under way to build up to 20 Ibis hotels in the next five years. Globally, there are 750 Ibis hotels in 38 countries, and the brand is set to grow by up to 50 hotels per year.

Accor also has plans to develop its other brands in Asia. Mr Issenberg said that it will invest US$200 million to do this. Opening in August will be its flagship hotel in China, the Sofitel Wanda Beijing.

FOR SALE/RENT: INCITY LOFTS

2007-05-10T23:51:00.000+08:00

Location: 700 Beach Road
1300 sq ft Loft apartment for live & work (high ceiling) with kitchenette
- super spacious storage
- 8 mins from Lavendar MRT station
- 12 mins from Bugis Junction
- 24 hours security with intercom
Facilities: Swimming pool, jacuzzi & gymnasium

Suits trades in interior design, accountancy, media & advertising, events organizers.

Sale: $1,030,000 neg
Rent: $4,000/mth

For more information, please call Jazleen Leom @ (+65) 91514003 or email to jazleen.leom@gmail.com

FOR SALE/RENT: HIGH STREET CENTRE APTS

2007-05-10T23:30:00.000+08:00

Location: North Bridge Road
- Mins to CityHall MRT/ Clarke Quay MRT / Boat Quay
- Panoramic view of Singapore River
- newly renovated

VIEW TO OFFER

FOR MORE INFORMATION, PLEASE CALL JAZLEEN LEOM @ (+65)91514003 OR EMAIL TO JAZLEEN.LEOM@GMAIL.COM

Business Times: Plenty of potential in residential

2007-05-10T23:21:00.000+08:00

May 10, 2007

Plenty of potential in residential
CityDev chairman plans to keep some units in new residential projects
By KALPANA RASHIWALA

KWEK Leng Beng is so confident about the ongoing property bull market that he's considering retaining a portion in some new residential developments for rental income and capital appreciation.

'We'll do this selectively and it will help us even out earnings fluctuations from our core property development/ trading business,' says Mr Kwek, who is executive chairman of Hong Leong Group and its listed property unit City Developments.

This new business model is no different from keeping office buildings for rental income, he explains in a recent interview with BT.

'Residential also has a lot of potential. Let's say, I had two towers in a residential project. I could sell one, and keep the other - and maybe sell later when prices are higher, keep for rental income, or even go for an en bloc sale one day, when I will be entitled to a windfall,' he said.

The issue in today's hot property market is that 'the selling price of your current project becomes the break-even cost for your next project' because of the ever-increasing cost of buying replacement land. 'You might as well not sell your residential development, ' Mr Kwek argues.

He says that retaining a portion of units in residential developments makes sense also because residential rentals are set to appreciate further on the back of leasing demand created by the influx of foreign talent into Singapore.

He also points out that the number of new homes built on sites sold through collective sales may be smaller than the existing stock that is being pulled down because of the trend of building bigger homes.

Mr Kwek also says that with the Singapore real estate sector booming, he would rather use his resources in a place where he has the best local knowledge and experience.

'I've always believed our strength is here. We are the proxy to the Singapore real estate sector. Why should we go overseas when we can make a lot more money here?'

'Also, for our group's property activities, we want to be a pure real estate company. We don't want to be a half-breed - half real estate, half financial. But things may change one day. Many institutional investors love the model of a financial, real estate company. But I tell investors: if they're looking for yield, they can buy into a Reit. There are people who like my model and are today enjoying a lot of capital gains.'

Mr Kwek also addressed recent concerns about the risks posed to banks that lend to developers which sell homes on deferred payment schemes. As most banks lend developers only up to 70 per cent of land and construction costs for residential projects, developers have to put in at least 30 per cent equity. And assuming they collect around 20 per cent payment from home buyers under the deferred payment scheme, these developers will have a cushion of about 50 per cent that will serve as a buffer to banks' exposure to them in the event of a housing price slide.

Mr Kwek also says that based on his model, if a developer sells half its high-end residential project and assuming that of the units sold, half are sold with normal progress payments and the rest on deferred payment, the sales proceeds collected by the developer should be able to pay for construction and related costs, depending on profit margins.

He also doles out advice for individual property investors, saying those who have sold their homes through en bloc sales should quickly re-invest their windfall in another property, to continue riding on the current buoyant property market.

On the common complaint among owners that sales proceeds from en bloc sales are insufficient to buy a replacement property, he suggests: 'Why don't you use the sales proceeds to fund half of your purchase and borrow the other half? This makes sense because the purchasing power of money becomes smaller over time.'

Another common complaint: 'If I sell, I can only afford a replacement property in an inferior location.'

Mr Kwek's answer: 'This is faulty thinking, because you are exchanging an old property of, say, 20 or 30 years, for a new one. If you want to be in the same location, you have to pay the new price. But do you need the larger older unit or a similarly large new unit where the cost is much higher? A new and smaller unit could be the answer.'

En bloc sellers should make the most of their windfall to re-invest for another windfall that will come about in the years to come, he says.

Another compelling reason to include real estate as part of one's investment portfolio: 'If you look at Forbes' list of the world's richest persons, many of them have their wealth backed by real estate.'

Business Times: London homes world's most expensive

2007-05-10T23:18:00.000+08:00

May 10, 2007

London homes world's most expensive

(LONDON) Britain's capital beat the glamour of Monaco, New York, Hong Kong and Tokyo to become the world's most expensive place to buy prime residential property, a survey showed on Tuesday.

Prime residential property in the British capital costs on average £2,300 (S$6,900) per sq ft, according to the Wealth Report 2007. That beat nearest competitor Monaco, where such property costs an average of 2,190 per sq ft. New York is in third place, with prime property there fetching an average price of 1,600 per sq ft. Hong Kong came in fourth with 1,230 per sq ft.

The data was supplied by British estate agency Knight Frank and Citi Private Bank, a division of US banking titan Citigroup. Their annual report said that top-end property prices were being driven upwards by high net worth individuals (HNWIs) - or people whose investable assets are valued above £5 million.

'The dramatic increase in central London prices against the background of a more sober market has demonstrated the influence of HNWIs upon property,' said Liam Bailey, head of residential research at Knight Frank and author of the study.

The Wealth Report 2007 included a residential index which compares a basket of properties in 70 prime locations around the world, analysing capital values, rents and investment yields.

Mr Bailey added: 'Over the next five years, we believe the trend of growing wealth and greater wealth concentration will continue.

'London will be a key location for future investment and will be a conduit through which this wealth will be invested. The prime markets will continue to outperform here in the UK, Europe and internationally. '

Business Times: Soilbuild's Eightrium draws MNC interest

2007-05-10T23:09:00.000+08:00

May 10, 2007

Soilbuild's Eightrium draws MNC interest
Companies turning to business parks as CBD office space supply tightens
By UMA SHANKARI

PROPERTY group Soilbuild said yesterday its eight-storey Eightrium @ Changi Business Park is ready for occupation, having been granted a temporary occupation permit (TOP) three months ahead of schedule.

BT understands that some space has already been leased, after marketing began as early as March. Soilbuild said in its statement that the high-tech building, which has a net lettable area of 178,000 sq ft, has attracted strong interest from MNCs in the high-tech, research and development and knowledge-intensive sectors.

Property firms CB Richard Ellis (CBRE) and Jones Lang LaSalle (JLL) have been appointed joint leasing agents.

'We have received many enquiries about the development, with several parties in various stages of negotiations, ' said CBRE, which started marketing the property in March. Eightrium is achieving an average rental rate of $3-$3.50 per sq ft (psf), it said.

Island-wide, median rents for business park space ranged from $2.79 to $3.70 psf in the first quarter of 2007, CBRE said.

'Vacancy levels in the office sector have fallen dramatically and occupiers are searching for quality space to accommodate business growth,' said CBRE's executive director for office services Moray Armstrong.

'It is apparent that fast-escalating rents in the tight office sector are encouraging occupiers to find solutions to help contain costs. This has certainly contributed to the surge of leasing activity at Eightrium,' Mr Armstrong said.

Low Soon Sim, executive director of Soilbuild, said completion of Eightrium is a milestone for the group and a big boost to its business space portfolio. 'In addition, the shorter cycle for the development of our business space projects complements our core residential property business which has a longer development cycle,' he said.

The 7,957 sq m site for Eightrium was awarded to Soilbuild by JTC Corporation after a competitive request-for- proposal exercise in November 2005. The site has a 30-year lease, which started in February 2006, with an option to renew for a further 30 years.

Business Times: Preparing for a global market crash in 2009

2007-05-10T23:01:00.000+08:00

May 9, 2007

MONEY MATTERS
Preparing for a global market crash in 2009
When the tsunami from the economic down cycle in the US hits, Singapore investors can still profit, if they are ready
By CLEMEN CHIANG

MINISTER Mentor Lee Kuan Yew said recently that he believes Singapore's economic growth this year will reach the upper end of the government's forecast range of 4.5-6.5 per cent. But he added: 'Much will depend on how the US consumer behaves.'

MM Lee is spot on. I believe that the health of the US economy does not hinge on whether Fed chairman Ben Bernanke raises or lowers interest rates. This has no material impact on consumer spending. The most important statistic for predicting economic waves depends on the combination of two critical factors: the birth peak and the spending cycle.

According to the US Census Bureau, Population Estimates Program, starting in the late 1800s, births peaked in 1921 and again in 1961. Every 40 years there is a new generation created and every 80 years economic, business, and lifestyle revolutions emerge. This trend can be applied through the generations into the future. Based on this statistic and the demographics of the population, economic upturns and downturns can be forecasted in a systematic fashion.

Strauss and Howe's first book, Generations (1991), tells the history of America as a succession of generational biographies from 1584 to the present. They describe a 40- to 41-year spending cycle in which there is an initial 27-year boom followed by a 14-year downturn. The greatest spending cycle begins when the birth wave enters the workforce at the age of 19 to 22 until they reach 47 years of age.

The Consumer Expenditure Survey released in February by the US Census Bureau showed the major components of spending which account for about 90 per cent of total expenditure. They comprise: food, housing, apparel and services, transportation, healthcare, entertainment, personal insurance and pensions.

I highly recommend investing in real estate during the market crash, particularly in areas that the growing population will be living in. In the table, a birth peak takes place every 40 years - in 1881, 1921, 1961 and 2001. From each birth peak, we add 19-22 years to arrive at the start of the spending cycle. Before the age of 19-22, this birth peak population is not contributing to the economy. As such, the spending cycle starts in 1902, 1941, 1982 and 2023. Thereafter, spending grows which leads to a 27-year boom. Unfortunately, when the birth peak population matures at 47 years old, it will result in a drop in spending for the next 14 years. This begins the 14-year down cycle.

I plotted the birth peak and spending cycle over the Dow Jones Industrial Average, which is the oldest continuing US market index. Starting with the birth peak of 1881, the economy grew from 1902 to 1928 which is the 27-year boom. From 1928 to 1941, it suffered a 14-year down cycle. In 1929, the market experienced its worst decline - the Great Depression. From 1941 to 1982, the birth peak and spending cycle demonstrated their accuracy once again. Taking the next starting point at 1982, we can extrapolate to peek into the future. The economy will grow for 27 years from 1982 to 2009. Unfortunately, from 2009 onwards, I predict that the US market will crash and it will last for 14 long years.

The question is, how do we prepare for this market crash in 2009?

First of all, I must say that Singapore is well-prepared for this crash in the event that it does happen. We are strategically positioned in the following key industry sectors: - biomedical sciences and healthcare - chemicals - clean energy - education services - electronics - emerging industries - engineering and environmental services - headquarters and professional services - infocommunications and media - logistics - precision engineering - transport engineering. More importantly, with the two integrated resorts, Marina Bay Sands and Resorts World at Sentosa, opening in 2009 and 2010, increased visitor arrivals will continue to reap tourism receipts to cushion the spending drop in the US. Thus, the practical question should be: How do Singapore investors profit from a market crash in 2009?

Before I provide you with the answer, let's study the Singapore government Master Plan which can be found at www.ura.gov. sg. Two of the key proposals are: - Long-term population growth from 4.4 million to 6.5 million by 2040-2050 - the 33-station Downtown MRT line. An increase in the population size by 2.1 million in 30 to 40 years requires a proportionate increase of space for people to live in. There are two ways to go about this: laterally or vertically. Under Concept Plan 2001, possible future reclamation is limited. That is, lateral development of space is capped. Instead, we have to focus on vertical development, especially in those areas identified for this purpose.

As for transport, radial lines will enable you to travel to the city directly. Orbital lines will enable you to get from one place to another outside the central area more quickly. The existing 93 km of rail lines will increase to about 500 km in future. For car owners, rides will be faster and smoother in future with more capacity on expressways. Piecing the puzzle together, I highly recommend investing in real estate during the market crash, particularly in areas that the growing population will be living in. These are found in the sub-regional centres as well as the regional centres. However, with the prevalence of Internet and video conferencing, it is no longer necessary to commute to work in the central area on a daily basis. These exciting new technologies will give us a great deal more flexibility as to where we live in the years to come.

For me, I would want to live, work and play at Sentosa Cove - a most desired address. Here, you will discover the wealthiest individuals who will not be affected by the market crash because they have already invested for the future.

The writer is CEO, Freely Business School. www.freely.com

Business Times: HK land auction adds to property fervour

2007-05-09T21:59:00.000+08:00

May 8, 2007
HK land auction adds to property fervour
Plot in West Kowloon district may fetch double its asking price

(HONG KONG) A land plot offering views of Hong Kong's skyscrapers and buzzing harbour is expected to fetch nearly double its asking price in an auction today, and whip up more fervour in a notoriously volatile housing market.

After a slow 2006, apartment sales have ratcheted up steadily this year, prompting a 15 per cent rise in the Hong Kong property stock index while the Hang Seng Index hit a record high yesterday, lifted by gains in property companies.

Strong bidding at the auction would allow developers such as Sun Hung Kai Properties, Sino Land Co Ltd and Henderson Land Development to beef up prices of projects in the vicinity of the auctioned site.

The 87,000 square foot plot in West Kowloon district has a reserve price of HK$2.6 billion (S$503.7 million) but is expected to sell at between HK$4.1 billion and HK$4.7 billion.

At those prices, the developer would need to sell badminton-court sized apartments built on the site for about HK$10 million - about 70 per cent higher than new apartments in the area now.

UBS analyst Eric Wong said analyst forecasts could be overvaluing the site, which, unlike other high-profile projects in the area, has no direct access to the underground rail system. 'It has a sea view and potentially strategic value, but having said that there's the possibility that surveyors are getting a bit too keen,' Mr Wong said. 'But I'm not saying they can't achieve those prices if it's packaged correctly.'

Sun Hung Kai, Sino Land and Wharf (Holdings) Ltd are likely to be the main bidders for the auctioned site, analysts say.

The University of Hong Kong's residential price index was up 3.3 per cent in April from a year earlier, but Mr Wong believes average prices will rise 30 per cent this year.

Apartment prices have recovered about 70 per cent since a 2003 slump when an outbreak of the Sars respiratory disease ravaged the city's economy, but hover at nearly half the level of a 1997 peak.

A typical Hong Kong resident now spends about 35 per cent of income on mortgage payments.

In 1997, this measure of affordability was over 100 per cent, Mr Wong said, with most homebuyers drawing down on equity elsewhere.

Lehman Brothers analyst Paul Louie expects the plot to fetch HK$4.1 billion, while BNP Paribas analyst Manfred Ho says bidding will reach HK$4.7 billion.

In December, a prime plot in the luxury Peak area, sold for about 60 per cent more than expected.

It set a price record for Hong Kong land auctions, which date back to the earliest colonial days when the city's tai pans, or trading house chiefs, vied for plots that ended up accounting for much of their future wealth.

Business Times: First Reit buys Lentor nursing home

2007-05-09T21:56:00.000+08:00

May 8, 2007

First Reit buys Lentor nursing home

FIRST Real Estate Investment Trust (First Reit) has agreed to acquire a nursing home at 51 Lentor Avenue.

The price was not revealed in its statement released yesterday but is understood to be around $12 million.

The 148-bed nursing home will be leased back to its current owner, Sphere Investment.

The leasehold property, with a gross floor area of about 3,000 square metres, is on about 2,500 sq m of land.

First Reit, which is part of Indonesia's Lippo Group, acquired three properties here for a total of $38.2 million earlier this year. It was listed on the Singapore Exchange in December 2006.

Ronnie Tan, chief executive of First Reit manager Bowsprit Capital Corporation, said there are no immediate plans to enhance the latest property, though there is some potential to maximise unused plot ratio.

First Reit will continue to look for opportunities in Singapore and Asia, he said. 'We have to continue to grow.' Dr Tan expects to announce more acquisitions in the current second quarter of the year.

In January, he said First Reit plans to double the size of its portfolio to $500 million within three years and raise it to $1 billion within five years.

At the time of listing, the Reit comprised three healthcare properties and a hotel in Indonesia worth a total of $257 million.

CNA: Industrial properties investment sales could hit S$3b in 2007

2007-05-09T21:54:00.000+08:00

7 May 2007

Industrial properties investment sales could hit S$3b in 2007
By Daryl Loo, Channel NewsAsia

SINGAPORE: Investment sales of industrial properties could set a new record of S$3 billion this year, said property consultants, easily outstripping last year's record high of S$1.9 billion.

Analysts attribute the increase to more acquisitions by real estate investment trusts and an impending divestment by JTC. JTC, Singapore's largest industrial landlord, is expected to divest properties totalling some 1.7 million square metres through a REIT and trade sales later this year.

The deal includes JTC's flatted factories, business park buildings and a warehouse. At the same time, other industrial REITs are also looking to boost their portfolios.

Tay Huey Ying, Director of Research, Colliers International, said: "The industrial REITs are seen to be continuing with acquisitions to grow their portfolio. Moreover, we are also seeing the listing of more REITs, for example, the recently-listed MacArthur Cook Industrial REIT.

"The impending divestment of JTC's ready-built facilities will also boost the investment sales figures in 2007 so we are likely to see a higher volume compared to last year."

Market watchers said there is a growing trend of companies selling their buildings and then leasing back the space. This will help to boost activity in the sector.

Lim Kien Kim, Director (Industrial) , Knight Frank, said: "These companies generally have property sizes that are in excess of 100,000 square foot gross floor area, usually worth more than S$10 million, and with land tenure in excess of 40 years. These are key components which will interest the REITs."

Property consultants also note that the entry of foreign funds from countries like Australia and the Middle East has added more fuel to the mix. Mr Lim said: "These funds are basically looking at industrial properties that they can enhance. The enhancements will lead to better rental yields and possibly an increase in capital values, which they may then sell off later."

Foreign funds have already bought into offices such as Temasek Tower and apartments like Horizon Towers this year.

Straits Times: Ho Bee earns record $69m in first quarter

2007-05-09T21:51:00.000+08:00

May 8, 2007

SELL-OUT SENTOSA HOMES
Ho Bee earns record $69m in first quarter

A BET on exclusive seafront living on Sentosa is paying off handsomely for property developer Ho Bee Group. The company yesterday posted a record quarterly profit of $69.1 million, more than five times the $13.2 million earned last year. Sell-out projects at Sentosa Cove, particularly the latest condominium, The Coast, triggered a jump in revenues of almost the same magnitude. Sales for the three months ended March 31 hit a high of $245.8 million, 4.7 times the $52.8 million recorded a year ago.

'Many of our properties have been extremely well received by the market and almost all our developments are fully sold,' said chairman and chief executive Chua Thian Poh.

Ho Bee set the stage for its current windfall just over three years ago when it won the first tender of residential land parcels in Sentosa Cove. Since then, it has gone on to buy and develop more plots, becoming the biggest player in the prestigious enclave.

The company has so far launched five projects in Sentosa Cove, three of which are fully sold. Looking ahead, Mr Chua said Ho Bee's financial performance will significantly surpass that of last year as the property market outlook remains bright.

Earnings per share jumped to 9.37 cents from 2.13 cents. Net asset value per share was 81.3 cents, up from 67.9 cents.