Singapore Real Estate and Property

Saturday, April 5, 2008

Tomorrow isn't guaranteed

Business Times - 05 Apr 2008

Tomorrow isn't guaranteed

So keep your perspective and make every day count, sensibly and lovingly

By TEH HOOI LING
SENIOR CORRESPONDENT

LIFE is fragile. Life is transient. And the unexpected departure of former colleague Eddie Toh from this world last Sunday was, for me, a much-needed reminder to take stock.

In our hectic lives, the days literally zoom past; it seems like everything is in fast-forward mode. Rarely do we have time to stop and consider what is really important to us.

It seems like just yesterday when a friend of mine, Carol, called me around 10 on a Sunday morning.

'Guess who's in front of me now,' she said.

Me: 'How would I know?'

Carol: 'Thaksin. He's having bak kut teh at Ah Sio Bak Kut Teh at Rangoon Road. It's very near where you are. Come quick. You can catch him here and interview him for your paper.'

Me: 'You sure it's him? Aiya, even if it is him, he may be gone by the time I get there.'

I put down the phone. But the chance that The Business Times could score a scoop with deposed Thai prime minister Thaksin Shinawatra while he was having bak kut teh at Rangoon Road made me pick it up again.

Life's dichotomies

I called Eddie. Knowing the true news hound he was, I was sure he would make his way there. Furthermore, he lived in that area. About 10-15 minutes later, both of us reached Ah Sio's shop about the same time. Eddie came well prepared - with his note book, tape recorder and a barrage a questions for Mr Thaksin. Alas, he never got to ask them; the ex-PM had already finished his breakfast and gone.

To prove that he was there, my friend Carol showed us a photo she took with Mr Thaksin on her handphone. So we ended up having our brunch anyway. Eddie, then the deputy news editor of BT, subsequently got that photo published in the paper.

Although this happened more than a year ago in January 2007 (how time flies!), it is still fresh in my mind.

After that, Eddie left BT - and, alas, we managed to catch up only once for dinner and drinks.

There are a lot of dichotomies in life. Humans as a species are different from others because we can delay our gratification, which is one of the reasons we have progressed more than other animals.

Instead of eating all the food we have straight away, we save some for tomorrow. Instead of spending all that we have today, we save and invest. Instead of enjoying life to the fullest today, we study, we work. We sacrifice spending time doing things we like because we have an exam to take next month, or have a project deadline to meet next week.

We do all this in the hope that, some time in the future, we will get to enjoy the fruit of our labour.

Indeed, it is those who have the discipline to delay gratification who will be successful in life. What can a person make of his life if all he does every day is sip wine, loaf on the beach and feel high?

On the other hand, if we strive too much to keep up with the Joneses and keep on increasing the speed of the treadmill we are on, life becomes a drag.

There is no denying that some folks - a lucky few - derive pleasure from the work they do. Others, however, become too obsessed with material pursuits. As Nassim Taleb noted in his book Fooled by Randomness, the higher a person is promoted, the less of his time will belong to him.

In life, the fact is that we all have to do what we have to do so that we can do what we want to do. We have to work to survive, to indulge ourselves, to ensure we are financially secure so that we can raise a family or devote our time to some cause we believe in.

Perhaps, given the unpredictability of life, we should not feel guilty about pampering ourselves once in a while.

As Berkshire Hathaway's vice- chairman Charlie Munger said, every day you should give the best hour of the day to yourself. It can be spent with a loved one, or it can be spent exercising so you can remain fit and healthy, or it can be spent thinking about how best to manage your finances. And the rest of the time, you can do what you have to do.

But, of course, to have a goal, a target, is what keeps humans going. The key is to try to not make this an all-encompassing purpose that makes you lose sight and perspective of everything else.

One way to keep perspective is to derive pleasure and satisfaction from little achievements along life's path. For me, an article well done is something to be happy about. A dish well cooked is another reason to be satisfied.

But, ultimately, what people seem to remember most about life when they reach the end of their earthly journey is other people who travelled with them and the experiences they shared.

A dinner with a group of friends at Holland Village. Enjoying a picnic and concert in the park with your family. One particularly flawless game of tennis you played. Moments when the silliest of things made you laugh until you cried.

Since we never know what tomorrow will bring, we should make today - every day - count. So give your mum a call. Arrange that lunch with the friend you said you'd meet 'one day'. Make the first move to know a person you have been wanting to know. Buy a ticket to a concert to hear your favourite music.

And while you're at it, try some random kindness with no expectation of receiving anything in return. Make somebody's day. Because, like Eddie, we are all but passing through this world.

My regular readers will know my column is about the nitty-gritty of money, which is something we all need. But sometimes it pays to stop and think: there are plenty of other riches out there too.

The writer is a CFA charterholder.

She can be reached at hooiling@sph.com.sg



Try some random kindness with no expectation of receiving anything in return. Make somebody's day... Sometimes it pays to stop and think: there are plenty of other riches out there too.

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Jurong Lake will be transformed into waterfront playground

Business Times - 05 Apr 2008

JURONG LAKE DISTRICT
Jurong Lake will be transformed into waterfront playground

4-5 new attractions planned; Science Ctr site to be developed

THE area around Jurong Lake has been earmarked as a waterfront playground lined with four or five new attractions.

As part of the revamp, the Singapore Science Centre will also be relocated next to Chinese Garden MRT Station and its present site carved into a third island within Jurong Lake and developed into Lakeside Village.

The village, surrounded by a new waterway, will offer alternative shopping and dining, with food & beverage, retail and entertainment outlets and boutique hotels on the lakeside. It will be connected to the new commercial hub at Jurong Gateway through a network of walkways.

The existing Chinese and Japanese gardens - which occupy the two existing islands in the lake - will have added new facilities and activities to boost their attraction.

The plans were revealed in the Urban Redevelopment Authority's (URA) draft Master Plan for the area, released yesterday. The plan will guide development over the next 10-15 years.

The four or five new attractions will cater to families with young children. They could include edutainment that rides on proximity to the new Science Centre, nature-based activities that leverage on the lake, as well as attractions with hotels, F&B and shopping.

URA said the new attractions will complement those Jurong already has, such as Jurong Bird Park, the Science Centre and Singapore Discovery Centre.

'The attractions at Jurong Lake will be differentiated from others at Marina Bay, Southern Waterfront and Mandai,' URA said.

URA will work with the Singapore Tourism Board to encourage investors to develop the attractions, National Development Minister Mah Bow Tan said yesterday.

A new public park will be developed on the western edge of Jurong Lake next to Lakeside MRT Station. Water activities like kayaking and dragon-boating will be introduced on the lake by end-2008. And boardwalks, fishing points and wetlands will be introduced along selected stretches by end-2009.

URA chief executive Cheong Koon Hean said URA may include its plans for Jurong Lake District in its overseas marketing efforts.

The authority's draft Master Plan for the district - comprising the Lakeside precinct as well as the area around Jurong East MRT Station, dubbed Jurong Gateway - has drawn kudos from industry players.

Park Hotel Group director Allen Law said a business hotel could work in the Jurong Lake District. 'A tourist hotel will depend on the phasing of the new attractions,' he added.

Nature Society president Geh Min said: 'I am happy to hear the mention of wetlands. I don't think there will be an issue with the loss of natural environment.'

UOL Group chief operating officer Liam Wee Sin said of URA's plans for the district: 'I'm quite impressed. There's a big opportunity to do an eco-city, not just sky gardens and terraces - but with conscious planning, policy, design and usage.'

DP Architects' Tai Lee Siang reckons the Jurong Lake District will have an edge over Tampines Regional Centre because it has the lake as a natural asset.

Colliers International said URA's blueprint for the district will boost the popularity and value of property there in the mid to long term.

'It's exciting because it will inject a new lease of life to an area that has struggled for many years to shrug off its image as an industrial location,' said Colliers' director Tay Huey Ying.

- With additional
reporting by Arthur Sim

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

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Still bullish on Singapore property

Business Times - 05 Apr 2008

Still bullish on Singapore property

DESPITE the US subprime crisis, which will have a cyclical impact, Liew Mun Leong remains bullish on Singapore's property market in the medium term.

'Main street America is suffering from the sins and mistakes of Wall Street,' he says. 'And when main street gets hit, that will affect Asia, we can't run away from it.'

However, Singapore's property market has some strong underpinnings, he maintains. Most importantly, the drivers of Singapore's property market have changed in recent years. 'The rise in property prices since 2002 is no longer due to domestic policy changes such as the liberalisation of CPF and the HDB sub-sale policy.

'It is driven by the remaking of Singapore. Singapore as a global city, as a gateway to Asia, the integrated resorts, plus the displacement demand from en-bloc sales.'

The change in the number and profile of foreign buyers is also notable, he points out. 'In the past foreign buyers were mainly from Malaysia and Indonesia. But now, there are big buyers from at least 12 countries.'

The proportion of foreign buyers for private properties has also risen from 13.7 percent of the total in 1996 to 25 per cent in 1997. And the number of foreign professionals coming to live in Singapore has tripled over that period, as has foreign direct investment.

At the same time, the affordability of private residential properties as measured by mortgage payments as a percentage of household income has improved, going from around 46 per cent to 36 per cent.

And then Mr. Liew points to the big picture: 'Singapore has 700 sq km, with 4.5 million people. The population is projected to grow to more than 6 million, but the city cannot grow. If we reclaim another 11 per cent we'll be in international waters already.'

'Another point, I tell foreigners. Compare putting $5 million in a house in Singapore with putting $5 million in a house in, say, Bangkok or Jakarta. In Singapore, the government provides so much support in the form of infrastructure. What infrastructure support would you get in Bangkok or Jakarta? This is an important issue when you buy property. Investors realise this.

'So, if you analyse all the fundamentals, Singapore as a global city is a winning formula. And I'm not saying this because I'm selling property.'

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

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The West also rises with Jurong East makeover

Business Times - 05 Apr 2008

The West also rises with Jurong East makeover

360-hectare Jurong Lake District will marry offices and retail outlets with waterfront playground

By KALPANA RASHIWALA

(SINGAPORE) With malls, hotels, offices and entertainment outlets, the sleepy charms of the area around Jurong East MRT Station are poised for a stunning makeover. The place - called Jurong Gateway - will be turned into the biggest regional centre on the island.

Add to this the land and water development around the nearby Jurong Lake - with kayaking, dragon boating and a lakeside village - and the transformation that melds business opportunities with leisure pursuits will be complete.

Jurong Gateway will provide 5.4 million sq ft gross floor area of new office space and 2.7 million sq ft of retail, F&B and entertainment area - more than 2.5 times the current size of Tampines Regional Centre, Minister for National Development Mah Bow Tan announced yesterday.

The time frame for development will be about 10-15 years and sites in the location are likely to be tendered out for private sector development based on market demand and pace of take-up.

The 70-hectare Gateway will also have at least 1,000 new private homes as well as 2,800 hotel rooms - roughly the same quantum as the Singapore River hotel belt.

Meanwhile, the Lakeside precinct around the Jurong Lake has been earmarked as a new waterfront playground spread over 220ha of land and 70ha of water. It is envisaged as a major leisure destination for Singaporeans and tourists, with about four or five proposed new attractions.

Jurong Gateway and Lakeside together make up Jurong Lake District, the blueprints for which were revealed by Urban Redevelopment Authority (URA) yesterday.

The 360ha total potential area for development is close to the size of Marina Bay.

In his speech at URA's corporate plan seminar, Mr Mah stressed the importance of decentralisation as a key planning strategy to maintain balance between supporting economic growth and a high-quality living environment.

While Marina Bay and the city remain Singapore's main commercial centre, new commercial hubs like Jurong Gateway will be developed outside the city centre to provide more choices of attractive business locations and bring jobs closer to homes. URA has also earmarked the area around Paya Lebar MRT Station for development into an alternative business hub.

URA said Jurong Gateway will be ideal for company headquarters, business services as well as companies in the science and the research and development (R&D) fields. Such companies will be able to tap a large labour pool from a one million-population catchment in Jurong East and West, Clementi and Bukit Batok, enjoy proximity to a cluster of over 3,000 companies in the International Business Park and Jurong and Tuas industrial estates. Jurong Gateway is also a major transport hub, with Jurong East MRT Station and a bus interchange. The area around the MRT station is designated for development into an integrated commercial and transport hub with white use - allowing office, retail, residential and hotel use. A short distance away, at Jurong Town Hall Road, sites have been designated for high-rise office use.

The tallest buildings in Jurong Gateway will be 35 storeys high but building heights will step down towards Jurong Lake, allowing most developments to have panoramic views of the lake.

A new big-box retail format incorporating consumer electronics, furniture and hypermarket being developed by TT International will add about 34,000 sq m of retail space when completed by end-2009.

Mr Mah also stressed that Singapore's long-term approach to planning - encompassing the Concept Plan and Master Plan process - is a fundamental part of the republic's sustainable development effort. He noted that Singapore's physical resources, especially land, are able to support a long-term population planning parameter of 6.5 million.

The minister also touched on how the influx of foreigners is making some Singaporeans uneasy. 'They find the competition for jobs and school places tough. They see themselves priced out of the housing of their choice.'

Highlighting the contribution of foreigners to various tiers of the Singapore economy and society, Mr Mah said: 'We must . . . convince our people that at the end of the day, if we want to have a good life, we must learn to accept the foreigners in our midst.'

Mah disagrees with suggestions on land sales, deferred payment scheme

Business Times - 05 Apr 2008

JURONG LAKE DISTRICT
Mah disagrees with suggestions on land sales, deferred payment scheme

NATIONAL Development Minister Mah Bow Tan yesterday disagreed with suggestions by property tycoon Kwek Leng Beng on the need for the government to review its first-half 2008 land sales programme and rethink its decision to scrap the deferred payment scheme.

Mr Mah said the government can be nimble on state land sales because the programme is reviewed every six months, depending on changes in the market.

But the H1 2008 programme will not be changed midstream, he said. 'We should be careful of knee-jerk reactions. You can't adjust it just because something is happening yesterday and then we change things today. We've got to take a longer-term view.'

Mr Mah was speaking at a media briefing after he delivered the keynote address at Urban Redevelopment Authority's Corporate Plan seminar at Grand Copthorne Waterfront Hotel.

In an interview published by BT this week, Mr Kwek had urged the government to review its H1 2008 land sale programme, which was fixed last year when the property market was buoyant compared with today.

On the decision announced in October last year to scrap the deferred payment scheme, Mr Mah said yesterday it was carefully considered, taken 'after a lot of thought, deliberation'.

'The objective was two-fold,' he said. 'One, to remove excessive speculation from the market. And two, to make sure there is financial prudence - that people make decisions and don't over-commit themselves.

'These are two very important objectives and they are still relevant today - in fact, probably more so in today's kind of market. I don't see any need for us to change our decision on that.'

Mr Kwek had suggested the deferred payment scheme could be revived, but this time with a higher initial payment of 30 per cent instead of 20 per cent previously. He also said that if a developer wants to extend a deferred payment scheme to a buyer, perhaps the developer's bank might be in a better position to assess viability, while keeping an eye on prudence.

Mr Kwek also made a suggestion he said could make housing more affordable for young Singaporeans, including singles. The government could build more public housing units and lease them to young first-time buyers with an option to buy the flats within 10 years at fixed prices, he said.

Responding yesterday, Mr Mah said he disagreed with the premise that young couples cannot afford to buy an HDB flat.

'The average amount of money they need to put up for monthly mortgage payments is well within their means, something like 20 per cent. This is quite affordable,' he said.

'If you were to rent, they will probably be paying as much, if not more, in rental, than to buy the flat. It doesn't make sense to rent when you can buy using your CPF. You rent, you can't use your CPF.

'When you buy, you actually buy a place you can call your own. It's an investment. When you rent, it's not yours.

'Our home ownership policy with all the generous housing subsidies that we have given actually allows most Singaporeans, young couples, to be able to buy their own homes.

'If you look at the numbers, you'll find that suggestion (by Mr Kwek) does not quite make sense.'

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Plot ratios may change in certain local conditions: Mah

Business Times - 05 Apr 2008

JURONG LAKE DISTRICT
Plot ratios may change in certain local conditions: Mah

WILL plot ratios go up in the draft Master Plan 2008?

'There will be changes in certain places to reflect certain local situations, local conditions,' National Development Minister Mah Bow Tan said yesterday without elaborating.

But there will 'not be a major review across-the-board' of plot ratios for the draft Master Plan 2008, he said. Plot ratio is the ratio of maximum gross floor area (GFA) to site area, so the higher a site's plot ratio, the more the GFA that can be built on it.

The draft Master Plan 2008 is expected to be unveiled in late May and exhibited for a month for public feedback before being finalised and gazetted by the year-end.

Mr Mah last year ruled out massive, across-the-board islandwide increases in plot ratios for Master Plan 2008 to cope with a long-term population planning parameter of 6.5 million. Yesterday, he said: 'We will do our Master Plan review every five years. As we go forward, as the situation changes, we will make the appropriate decision then.'

A study by Jones Lang LaSalle published by BT earlier this year said undeveloped state sites within walking distance of Circle Line MRT stations, particularly those that intersect with existing MRT lines, will be among the top candidates for higher plot ratios in Master Plan 2008.

The study highlighted areas near Paya Lebar MRT Station and Buona Vista MRT Station, where the Circle Line will intersect with the existing East-West Line, and HarbourFront MRT, where the Circle Line crosses the North-East Line.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

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URA's Jurong Gateway plan draws mixed response

Business Times - 05 Apr 2008

JURONG LAKE DISTRICT
URA's Jurong Gateway plan draws mixed response

Consultants and developers hail alternative hub, but fear over-supply in medium term

By KALPANA RASHIWALA

PROPERTY consultants and developers have given a mixed reception to the Urban Redevelopment Authority's (URA) plan for Jurong Gateway, which will have about 5.4 million sq ft of gross office area over 10-15 years.

While they welcome an alternative commercial hub that will provide lower-cost office space, some are worried about the timing that yesterday's announcement - made at a point when there is sufficient confirmed mid-term supply - will have on sentiment.

Others are worried the announcement may scare foreign investors from the local office market because of potential over-supply in the not-too-distant future.

First, the positive views.

Jones Lang LaSalle's Singapore country head Chris Fossick welcomed URA's plans for the new commercial hub around Jurong East MRT Station, comparing it to Changi Business Park in the east, which has attracted backroom offices of financial institutions.

Both locations are similar - close to transport hubs and a substantial labour pool, Mr Fossick noted. 'Singapore is in need of such facilities to provide an alternative to more highly-priced real estate in the CBD (central business district) for companies that don't need to be in the CBD.

'From a macro perspective, we can be more competitive as a country when it comes to office space. We can go to banks, IT firms or any MNC and say: 'You have two choices in Singapore: CBD office space or good-quality office space in Jurong or Changi.' We can say Singapore has office space that is expensive as well as space that's inexpensive.'

Another advantage of decentralisation is preventing congestion in the CBD from getting worse, Mr Fossick said.

Giving a more cautious view, CB Richard Ellis executive director Moray Armstrong said: 'The launch of the vision for the area comes at a time when there seems to be ample supply of office space catered for.

'I wonder how strong interest will be in developing the new office space in Jurong because there is already quite a healthy level of confirmed office supply on the island, the bulk of which is a product of the government's policy reaction in the past two years of releasing greater volume of land.

'Office space in the Jurong Gateway location is untested, but if the government is taking a long-term view, it's not unreasonable to envisage this location emerging as a Tampines equivalent.

'Nonetheless, the target they have set looks pretty ambitious in terms of the overall quantum of space, even for a 10-15 year time-frame. After all, Tampines has existing and new office developments in the pipeline with a total net lettable area of about two million sq ft, and that would be over a span of 12-13 years.'

City Developments group general manager Chia Ngiang Hong also voiced concern about the timing of the release of office sites at Jurong Gateway.

'Hopefully, the government will study the market situation carefully before it starts tendering out new office sites,' he said. 'Otherwise, it won't be healthy to cause a massive over-supply in the market again.'



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Jurong ulu no more

Jurong ulu no more

Suburb to become commercial, leisure lakeside heaven

Weekend • April 5, 2008

Loh Chee Kong
cheekong@mediacorp.com.sg

DUSTY. Industrial. Out of the way.

Such words may spring to your mind when asked about Jurong. But come 2020, the home of the Bird Park and the Science Centre will evoke a whole new vocabulary.

Try on for size: Lakeside haven. Billion-dollar business buzz. Holiday hub.

This will be the new Jurong Lake District, after it undergoes an ambitious transformation into the largest commercial hub outside of the Central Business District (CBD) — complete with 2,800 new hotel rooms, a number which rivals that of the entire hotel belt at the Singapore River.

At the heart of the district — bounded by Yuan Ching Road, Ayer Rajah Expressway and the MRT line running through the Jurong East, Chinese Garden and Lakeside MRT stations — will be the 70-hectare Jurong Lake and its sprawling greenery.

Tourists will be enticed with a laidback experience at the lakeside F&B village and hotels. The lake itself will be deepened for water activities such as kayaking and dragonboating, and new waterways carved out and an elevated walkway built to "bring closer" the MRT station and bus interchange. Visitors taking the 10-minute "seamless" walk can stop and shop at retail and F&B outlets along the way.

Another old neighbourhood icon will be revamped, too — the Singapore Science Centre will be relocated next to the Chinese Garden MRT station.

This leisurely atmosphere will also have a cutting-edge buzz to it.

Equalling the size of Marina Bay, the new commercial hub is expected to attract investments worth billions of dollars. It incorporates the Jurong Gateway precinct, a high-rise commercial and a retail hub around the Jurong East MRT station that will boast offices, hotels, food and beverage outlets and entertainment venues.

Within the district, land to build 1,000 private homes will be available as well.

Describing Jurong as "a gem that has yet to be uncovered and refined", National Development Minister Mah Bow Tan acknowledged that Jurong — earmarked from its birth in 1961 as an industrial estate — has struggled to shake off the unflattering associations.

"Many of us still see Jurong East as a suburban residential area, far away from the city centre — quite 'ulu' (remote), in fact. It is rarely thought of as a major leisure destination," he said.

But in truth, it has plenty of potential, with a population catchment of more than a million residents, including those from nearby towns Clementi, Bukit Batok and Jurong West.

Moreover, the area is home to more than 3,000 companies. Its proximity to the tertiary institutions and research hubs means Jurong East is "an ideal place for businesses dealing with research and cutting edge technology", said Mr Mah.

He announced the Jurong makeover on Friday as part of the Urban Redevelopment Authority's (URA) Draft Master Plan. Since 1991, the URA has embarked on projects to build regional centres in areas such as Tampines and Woodlands, to ease congestion in the CBD. Plans are in the pipeline for Bugis and Kallang also.

Even as the Government has deferred $2-billion worth of construction projects, Mr Mah said the Jurong makeoever was given the go-ahead after taking into consideration the effects on the construction crunch.

Residents need not fear major disruptions to their daily routines, but there will be "some inconveniences". "We are not going to close the entire lake to people but will do it in stages," said Mr Mah.

They can also look forward, in the next few years, to the redevelopment of the Jurong East Entertainment Centre, which will house Singapore's first Olympic-sized ice-skating rink.

Already, Propnex chief executive Mohd Ismail expects prices for both public and private housing in Jurong East to go up by five to 10 per cent in the next two years.

Traditionally, the area's flats command prices similar to those in suburban Hougang and Choa Chu Kang, but pale in comparison to mature estates -- a 5-room flat there costs $90,000 and $135,000 less than a similar flat in Bishan and Toa Payoh respectively.

Resident Liang Guet Keow, 49, said she looked forward to a more vibrant Jurong East offering the same facilities as estates such as Bedok and Ang Mo Kio. "It's about time," said the accounts executive.

Member of Parliament (MP) Halimah Yacob told TODAY that she and her fellow Jurong GRC MPs have been pushing for Jurong to be redeveloped.

She said: "It would greatly enhance the living environment. Jurong is in need of rejuvenation -- that part is clear."

And while some residents continue to worry about air quality down the road, Mdm Halimah reiterated that the air in Jurong is not hazardous to health. "It's just that because Jurong has a lot of industries, people may have the sense that the air quality is poorer compared to other estates. But if you look at it from the safety point of view, it is not worse than other parts of Singapore."

Copyright MediaCorp Press Ltd. All rights reserved.

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Be 'nimble' in uncertain times

Be 'nimble' in uncertain times

Inflation may not yet have peaked, warns Finance Minister

Weekend • April 5, 2008

— Dow Jones, with additional reporting by Neo Chai Chin

Singapore's inflation rate, already at a 26-year high, may not have peaked and policy-makers must be ready to respond to unexpected economic developments, Finance Minister Tharman Shanmugaratnam said on Friday

"It's too early to say that inflation has peaked," Mr Shanmugaratnam told reporters at a meeting of finance ministers from the Association of South-east Asian Nations (Asean) in Vietnam.

"We want to watch the situation carefully and be nimble in our overall economic strategy."

Singapore's consumer prices rose 6.6 per cent from a year earlier in January, the fastest rate since 1982, as costs of food and energy soared.

OCBC economist Selena Ling told Today she expected year-on-year inflation to hit 7 per cent within one to three months.

"In the next few months and quarters, things like airline surcharges and electricity tariffs will creep in. Food is a medium-term structural issue, so it is not going to go away overnight," she said.

"A lot of Asian countries are imposing export limits and obviously we are going to feel the impact of food prices going higher."

"The Government's point is that there will be continued supply but we must be prepared to pay more."

UOB economist Ho Woei Chen is more sanguine, expecting inflation to average 5.2 per cent this year, comprising a first-half average of 6.4 per cent and a second-half average of 4 per cent.

Mr Shanmugaratnam's comments came less than a week before the Monetary Authority of Singapore's semi-annual policy statement. In its last policy statement issued in October, it projected inflation of 3.5 per cent for the first half of this year and between 2 and 3 per cent for the second half.

The central bank faces conflicting needs, as inflation remains high and difficult to predict even as export-dependent Singapore is vulnerable to the weakness in the United States economy.

"The possibility of a deeper recession in the US and a more prolonged one is something that every prudent policy-maker should not rule out," said the Finance Minister. "There is great uncertainty about how the credit cycle will evolve and what its impact will be on the real economy."

However, Mr Shanmugaratnam said the likelihood of a US recession had already been factored into the Government's economic growth forecasts. The Singapore economy is expected to grow between 4 and 6 per cent this year, slower than the 7.7-per-cent expansion recorded last year. The Government will issue an advance estimate for first-quarter economic growth next week.

"We will have to expect some slowdown in the second quarter and going beyond the second quarter in Singapore," Mr Shanmugaratnam said.

On the expected slowdown, UOB's Ms Ho said: "Even if there is a slight negative growth in the US in the first quarter, it's not going to be very bad. The US government's stimulus policy and fiscal spending will work through the system in the second half of this year.

"The Asian economies seem to be holding up quite well."

Copyright MediaCorp Press Ltd. All rights reserved.

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HDB reviewing application process

April 5, 2008

HDB reviewing application process

THE Housing Board is in the process of reviewing its current application process, National Development Minister Mah Bow Tan disclosed yesterday.

This follows recent public concerns that the thousands of applications that pour in for an HDB project bear little relation to the actual take-up rate of flats.

HDB's latest condo-like flats, City View @ Boon Keng, for example, sold only 250 or so out of 714 units, despite receiving 3,500 applications.

Eligible buyers pay $10 to enter a ballot for HDB's sales exercises. This assigns them a queue number to select a flat in a particular sales project.

Mr Mah acknowledged it was frustrating for some couples in the queue - who might have missed out on selecting a flat because of the high numbers - and said there was a need to address it.

'I've asked HDB to study this to discourage people from giving up their flats, or chance, so easily.'

The idea is to have a queue that ensures that when buyers get to the front, they book the flat, said Mr Mah.

'That will be fair to people in the queue, and good for HDB, to get some certainty about the supply and demand situation.'

More details on the review will come at a later date, he said.

JESSICA CHEAM

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5 new ERP gantries start up on Monday



5 new ERP gantries start up on Monday

Don't forget your cashcards when passing through Upp Bukit Timah Road, Toa Payoh Lor 6, Upper Boon Keng Rd, Geylang Bahru Rd and Kallang Bahru Rd ERP gantries.

Fri, Apr 04, 2008
AsiaOne

The Land Transport Authority (LTA) announced in January this year that five Electronic Road Pricing (ERP) gantries located at Upper Bukit Timah Road, Lorong 6 Toa Payoh, Kallang Bahru & Geylang Bahru, and Upper Boon Keng Road would be activated on 7 April following a review of traffic conditions.

The ERP rates will be as follows:

Upper Bukit Timah Road
8.00 - 8.30AM : $1

Lor 6 Toa Payoh
8.00 - 9.00AM : $1

Kallang Bahru & Geylang Bahru
8.00 - 9.00AM: $1

Upp Boon Keng Road
8.30 - 9.00AM : $1


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Orchard makeover starts in 3 weeks' time

April 5, 2008

Orchard makeover starts in 3 weeks' time

New pavements, street furniture, lighting and plants will appear on Orchard Road soon. The $40 million facelift for Singapore's shopping belt begins on April 28, with works being carried out in sections. The project is expected to be completed by next February.

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Jurong's massive makeover

April 5, 2008

Jurong's massive makeover

Area the size of Marina Bay will be transformed with homes, hotels, shops, eateries and offices linked to MRT via walkways and waterways

By Jessica Cheam

EXTREME makeovers do not come more dramatic than this.

In an ambitious plan unveiled yesterday, a large swathe of Jurong will be redeveloped and rebranded the Jurong Lake District.

The 350ha area affected is similar in size to Marina Bay, and will boast all the elements of a vibrant mini-metropolis.

That means new high-rises, hotels, apartments, shops, food places and offices as well as no end of water-related recreational pursuits, with everything linked to MRT stations via walkways and waterways.

Unveiling the plans yesterday, National Development Minister Mah Bow Tan described Jurong as somewhat under-recognised, 'a gem yet to be uncovered and refined'.

Among Singapore's public housing estates, Jurong has been something of an ugly duckling, its factories giving the place a decidedly industrial-town feel. This is an image it will shed in the next 10 to 15 years as the new plans come to life.

Reinventing Jurong is a challenge, Mr Mah acknowledged. 'But we want to show that this is not pie in the sky, it's something real,' he said.

MORE REPORTS: HOME


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Singapore's very own Lake District

April 5, 2008

Singapore's very own Lake District

Jurong is set to shed its industrial image with a stunning makeover

By Jessica Cheam

JURONG tends to conjure up unflattering images of factories and sleepy suburbia, but the area is slated for a stunning makeover that will transform it into Singapore's only lakeside destination.

National Development Minister Mah Bow Tan yesterday unveiled a vision for a revamped Jurong, starting with a new name: the Jurong Lake District.

The ambitious plan, to be implemented over the next 10 to 15 years, involves building new waterways, 1,000 private homes, 2,800 hotel rooms and adding 750,000 sq m of office and retail space.

The Jurong Lake District, which at 360ha is the size of Marina Bay, will consist of two precincts.

One is the 70ha Jurong Gateway, which will boast swanky new offices, condos and entertainment features, including an Olympic-size ice-skating rink, all set around Jurong East MRT station.

The other is Lakeside, which is being targeted as a hang-out for young families.

It will feature a bold new science centre, tourist attractions and parks complemented by water activities, all set around the Chinese Garden and Lakeside MRT stations.

Mr Mah told a 500-strong audience at an Urban Redevelopment Authority (URA) seminar yesterday that many Singaporeans saw Jurong as a suburban residential and industrial area 'located far away from the city centre'.

But he described it as a 'gem', with compelling reasons singling it out for redevelopment. It is near established towns, with a large labour force and a population catchment of more than one million residents.

It is also a thriving business hub, with more than 3,000 companies - from multinationals to tiny operations - two universities and research centres such as one-north in the vicinity. That made it an ideal business location for cutting-edge technology, said Mr Mah.

Existing transport links - the PanIsland and Ayer Rajah expressways and two MRT lines - also connect Jurong East to the city quickly.

Mr Mah pointed to another benefit of the plan: the proximity of jobs to homes in the area, which reduced the need to commute and eased pressure on transport services.

Jurong's rejuvenation is part of a broader URA decentralisation strategy to balance economic growth, reduce commuting and provide a high quality of life with many leisure options.

It will announce its plans next month to redevelop Paya Lebar. Both initiatives are part of its 2008 Draft Masterplan Review.

URA chairman Alan Chan said the ideas for Jurong were the result of consultation with a wide spectrum of public and private industry players.

Market watchers welcomed the news, saying it would inject new life into Jurong, which has struggled for years to shed its industrial image.

Colliers International's director of research and consultancy Tay Huey Ying said the plan 'would lift the popularity and value of property in the mid- to long-term'.

PropNex chief executive Mohamed Ismail predicted that home prices could increase by five to 10 per cent in the next two years.

Madam Halimah Yacob, an MP for Jurong GRC, said the rejuvenation was a welcome move.

The Chinese and Japanese gardens, for example, were under-utilised and could do with a makeover, she said.

Residents are also excited.

Manager David Lim, 49, who owns a four-room HDB flat at Lakeside, said he hardly stays in Jurong for his weekend recreational activities.

'But to have all these amenities so close to home will really be a bonus,' he said.



POLISHING A 'GEM': Set around the Chinese Garden and Lakeside MRT stations will be new tourist attractions and parks, complemented by water activities. -- ST PHOTO: FRANCIS ONG

jcheam@sph.com.sg

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Over 1,000 private homes to be built


TARGETING YOUNG FAMILIES: View of Lakeside park. New private housing will be coming up close to the area.


April 5, 2008

HOUSING

Over 1,000 private homes to be built

PROPERTY hunters looking to buy a stake in the newly revamped Jurong Lake District will be happy that more than 1,000 private homes will be built there.

But no more new Housing Board flats are planned for Jurong, said National Development Minister Mah Bow Tan yesterday.

This is also partly because the focus is on building up Sengkang and Punggol towns, said Mr Mah.

'There is sufficient public housing in Jurong so the next phase will be... on private housing,' he added.

However, if demand is strong for the private homes, more land can be re-allocated for condominiums.

That is why the sites around the MRT stations are mostly white sites, said Mr Mah.

'But all this ultimately has got to depend on the market and how it responds, whether the emphasis is more on office or housing.'

The Urban Redevelopment Authority said yesterday that the residential buildings at Jurong Gateway are likely to be 35 storeys at most, and building heights will gradually step down towards the lake to enable good views.

Colliers International's director of research and consultancy, Ms Tay Huey Ying, said it was timely for the Government to make early plans to accommodate and tap on any spillover in demand from the Central Business District.

This could occur from the office, hotel and residential sectors when mega projects, such as the two integrated resorts and Marina Bay Financial Centre, are completed and up and running, she said.

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New waterfront playground


New waterfront playground

THE Lakeside area will be transformed into a major leisure destination in the next 10 to 15 years, with existing attractions enhanced and new ones added.

First up is the new 'world-class' Singapore Science Centre, which will involve expanding the existing attraction and relocating it next to Chinese Garden MRT station. This will allow it to make use of the nearby Jurong Lake and surrounding green spaces to extend the learning environment, said National Development Minister Mah Bow Tan yesterday.

New facilities will also be added to key attractions in the area, like the Chinese and Japanese Gardens.

Jurong Lake itself will be spruced up, turning the area into Singapore's new 'waterfront playground' and bringing it closer to the new Jurong Gateway office hub.

The Government is also exploring ways to make the lake more accessible, such as by building new waterways or a landscaped walkway.

By the end of the year, the lake will host new water activities such kayaking and dragon-boating, thanks to the PUB. By the end of next year, the agency will also set up more public amenities around the lake, such as boardwalks, fishing points, wetlands and water features. To cap it all, a public park and a lakeside village will be built along with four or five other attractions near the water targeted at families with young children.

These may have 'edutainment' or nature themes, and could even include hotels, restaurants, or shops.

The lakeside village will offer more shopping and dining options. It will be linked to Jurong Gateway by a network of walkways, making the two precincts just a 10-minute walk apart.


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National Development Minister responds to property issues

April 5, 2008

National Development Minister responds to property issues

On rental housing:

'Our strategy is two-pronged... We are looking to increase the supply from 43,000 today, to go up to about 50,000. So that's another 7,000 - an increase of about 20 per cent.

'We are also relooking the eligibility criteria to make sure they cater to the really needy.

'As an article mentioned today, a lot of people in the queue really shouldn't be in the queue. They already enjoyed a housing subsidy...and cashed out, and are now coming out to join the queue. So while they are eligible today, strictly speaking, there are other people much more in need of a rental flat.

'There are other alternatives in place - whether it's a studio apartment, smaller flat, or the lease buyback scheme that we will roll out next month. All these are ways to monetise their flats.

'Joining the rental flat queue is not the way and I think we have to relook our criteria.'

On withdrawing the deferred-payment scheme:

'It was a very carefully considered decision...The objective was twofold: remove excessive speculation from the market and make sure there is financial prudence so that people...don't over-commit.

'These are still relevant today. We don't see a need to change the decision.'

On City Developments chief Kwek Leng Beng's suggestion that the Government remain 'nimble' in a changing property market and review the land sales programme:

'It's a point of view a developer will take, but there are many players in the property market; they all have their own views... They represent different, conflicting interests.

'We can be nimble, but we have to bear in mind that we have to take a longer-term view about things...We should be careful about knee-jerk reactions.

'We can't adjust because something happens yesterday and we change things today.'

On increasing Singapore's population:

'We don't know what will happen, what the numbers will be in 10 to 20 years.

'But if we do need to increase our population to 6.5 million in the future...it is comforting to note that our physical resources, especially land, are able to support this.'


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Friday, April 4, 2008

Occupancy at business parks hits five-year high

Business Times - 04 Apr 2008


Occupancy at business parks hits five-year high

Office space crunch also lifts high-tech space occupancy to 94.1% at end of Q1

By ARTHUR SIM

(SINGAPORE) The average occupancy rate for business parks has hit a five-year high, crossing the 90 per cent mark.

According to a report by CB Richard Ellis (CBRE), the occupancy rate grew from 89.4 per cent at end-2007 to an estimated 90.2 per cent at end-March 2008, exceeding 90 per cent for the first time in five years.

This was attributed to the current tight availability of office supply in the CBD which saw financial institutions like Standard Chartered Bank, Credit Suisse and Citibank relocating part of their operations to Changi Business Park.

The office space crunch also pushed the average occupancy rate for high-tech space up by 1.3 per cent quarter on quarter to 94.1 per cent at the end of first quarter 2008.

CBRE director of industrial and logistic services Bernard Goh pointed out, however, that while the average occupancy rate for business parks is expected to grow, it would be at a 'less robust pace compared with high-tech space'.

'This is due to the healthy pipeline of upcoming business parks in the next four years,' he said.

Mr Goh said some six million square feet of business parks are expected to be completed from 2008 to 2011. In comparison, only 1.5 million sq ft of high-tech space is expected to come onstream in 2011, explained Mr Goh.

Correspondingly, Mr Goh expects the growth in rental for high-tech space to continue to grow at a healthy pace.

Average monthly rent for high-tech space rose 7.3 per cent quarter on quarter to $2.95 per square foot (psf) by end-March, up from the 5 per cent quarter on quarter increase seen in the first quarter of 2007.

DTZ Debenham Tie Leung also sees more business park development projects in the pipeline.

In a report released yesterday, it said that the potential supply of business park space was 2.7 million sq ft as at end-2007, 10 per cent of total potential supply of private industrial space.

DTZ also noted that average monthly gross rents for business/high-tech industrial space rose 7.7 per cent quarter on quarter to $4.20 psf per month.

Generally, private industrial stock increased marginally by 0.7 per cent quarter on quarter to 299 million sq ft as at end-2007, with about 1.69 million sq ft of net lettable area of new private industrial space added in 4Q 2007, said DTZ.

However, DTZ has projected 7.13 million sq ft of new supply of private factory space for 2008. Subsequently, it is projecting a further 8.35 million sq ft, 2.77 million sq ft and 1.38 million sq ft for 2009, 2010, and 2011 respectively.

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Property fever here starting to cool

Property fever here starting to cool

Friday • April 4, 2008

More signs of Singapore's property market slowing: Tenders for a plot of government development land have closed, attracting one of the lowest bids in recent years.

The residential site bordering Choa Chu Kang Road and Woodlands Road on offer attracted just two bids. The highest offer came from an arm of Peak Properties, which is controlled by the Wee family. It offered $61 million, which works out to just $162 per sq ft (psf) per plot ratio.

Knight Frank research head Nicholas Mak said: "The current bid is one of the lowest in recent years."

The low point came last month when just $78 psf was offered for land in Westwood Avenue. This was rejected by the Urban Redevelopment Authority (URA).

The last time residential land bids fell below $200 psf was between 2000 and 2002, at the height of Singapore's decade-long property slump. It is not yet known whether the URA will accept the Peal Properties' offer.

The Choa Chu Kang Road site can be potentially used to develop up to 240 condominium units or serviced apartments.

This tender may serve as a good benchmark for another nearby site in Choa Chu Kang Drive. Bids for this site close in May. Prices of completed units in nearby Maysprings condominium recently transacted at an average price of $530 to $630 psf.

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It's wait-and-see for Pender Court, Tulip Garden home owners

April 4, 2008

It's wait-and-see for Pender Court, Tulip Garden home owners

Several have bought new homes and await sealing of deals as sales are delayed

By Joyce Teo , Ong Bi Hui

THEIR collective sale deals may be in doubt - and the huge cheques due to come their way - but some owners at Pender Court and Tulip Garden are taking a wait-and-see attitude for now.

Several told The Straits Times that they would not be fazed should the deals fall through.

Some have already received their share of the deposit. And those who have already bought new homes in anticipation of the collective sales going through say they will be open to renting out either of their two properties.

Both condos were bought by Bravo Building Construction last year. It agreed to pay $80 million for Pender Court and $516 million for Tulip Garden.

The Pender Court sale was due to be completed in late February and Tulip Garden in late May, but Bravo has postponed the settlement dates of both sales.

The firm, which works with partners on such large purchases, said it was working on a shareholders' agreement for Tulip Garden.

Many owners at Pender Court have proceeded on the basis that their deal will go through.

A resident at the 48-unit Pender Court, off West Coast Highway, said his parents had placed a deposit on a property near the Chinese Gardens MRT station.

'If the deal falls through, our immediate plans would be to take up a loan, buy that Chinese Gardens flat and rent out the Pender Court apartment.'

A man renting a Pender Court unit at $2,000 a month, and who gave his name only as William, told The Straits Times: 'For tenants, the en bloc sale is a good thing, since most owners are quite desperate to rent out their flats to help pay for their new houses. So as tenants, we have a better bargaining power.'

Another Pender Court owner, who wants to be identified only as Mrs Lim, said her family had bought a West Bay condo, which cost less than their collective sale proceeds.

One owner, who declined to be named, said most Pender Court owners had already bought new homes and were waiting for the money from the sale.

Her family bought an HDB flat. 'So if the deal falls through, we might consider moving to the new flat then renting out the Pender Court residence,' she said.

She also said the owners had already received a 10 per cent deposit from Bravo, which they would retain should the deal fail, so that was giving some consolation amid the uncertainty.

Some residents at the 164-unit Tulip Garden near Holland Road seem untroubled by the prospect of not collecting their windfalls, which will range from $1.1 million to $4.2 million.

Trainer Sangita Khera, 40, said she liked the estate and did not wish to move.

But she acknowledged that other residents did not share her opinion. They are now in limbo as they have bought new properties in the hope of collecting a tidy amount from the sale.

'It's sad for some of my friends who have bought property and had moved out already,' she said.

Bravo has paid a 5 per cent deposit of $25.8 million for Tulip Garden. It has cancelled its $162.8 million collective deal for Makeway View after finding out that it had to pay a higher-than-expected development charge.

joyceteo@sph.com.sg

ongbihui@sph.com.sg


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Street map website down after lawsuit loss

April 4, 2008

Street map website down after lawsuit loss

Company which lost copyright case and appeal aims to be back online in 2 days

By Chua Hian Hou

A POPULAR website that features interactive street maps of Singapore has been taken offline after its parent company, Virtual Map, lost a court battle against a government agency, which accused the firm of copying state charts.

The site, streetdirectory.com, has been down since Tuesday, said Virtual Map's managing director Firdhaus Akber.

But the company is currently working on a set of replacement maps, and hopes to bring the site back online in 'about two days', he said.

In January last year, the Singapore Land Authority (SLA) sued Virtual Map for copyright infringement, accusing the firm of using government maps after a licensing agreement between them had expired.

Virtual Map lost the suit in the district court, and was ordered to stop using the infringing materials. It appealed to the High Court, but lost again.

The company is appealing to the Republic's highest court, the Court of Appeal, to reverse the decision, Mr Firdhaus said.

He said the private company has called for a meeting of its shareholders some time 'in the next couple of days'.

This will be to decide whether the company continues to provide what he claimed were 'the best online maps in Singapore', or quit the business here and 'focus our efforts elsewhere'. Virtual Map also offers online maps in countries such as Indonesia and Malaysia.

Mr Firdhaus said his company has spent 'millions' putting in value-added data like points of interest, on top of the maps that SLA had provided.

The new site will use maps created via the company's own surveys, he said.

Alternative online maps are available at sites such as SLA's StreetMap (www.map.gov.sg/StreetMap) and Show Nearby (www.shownearby.com).

chuahh@sph.com.sg

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Ten Mile Junction site draws top bid of $61m

April 4, 2008

TENDER FOR RESIDENTIAL PLOT

Ten Mile Junction site draws top bid of $61m

THE top bid for a unique 99-year leasehold site in Choa Chu Kang has come in at $61 million, which experts say is within expectations.

The residential site at the junction of Choa Chu Kang Road and Woodlands Road attracted only two bids, with Peak Green, a unit of Peak Properties, which is controlled by the United Overseas Bank's Wee family, leading the way.

Its bid of $61 million values the site at $162 per sq ft (psf) per gross floor area. Sim Lian Land's offer was well back at $45.68 million.

The site has an existing three-storey commercial development - the Ten Mile Junction mall - and was the first residential site above a Light Rapid Transit station offered for sale by the Urban Redevelopment Authority (URA). It has a gross floor area of 254,394 sq ft for residential use, for either flats or service apartments. The mall has a fixed gross floor area of 121,191 sq ft.

The URA said the tender will be awarded once the bids are evaluated.

Knight Frank director of research and consultancy Nicholas Mak said the price was within expectations given the location and nearby amenities.

CBRE Research executive director Li Hiaw Ho said that if the site is awarded to Peak Green, the breakeven price will be around $400 psf. This will translate into a possible selling price of about $500 psf for apartments on the site.

NICHOLAS FANG



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Subsidised HDB rental flats in greater demand now

April 4, 2008

Subsidised HDB rental flats in greater demand now

30% jump in applicants in past few months; HDB says not all are needy

By Theresa Tan

THE number of people applying for heavily subsidised HDB rental flats has shot up by at least 30 per cent in the past few months - to about 4,000 eligible applicants on the waiting list now.

As a result, the wait for these one- and two-room rental units is now up to 15 months - double the waiting time in 2006.

Though families hit by soaring rentals on the open market and those in financial difficulty are among those in the queue, the Housing Board said not all applicants are 'needy or have urgent housing needs'.

It said that last year, more than half who applied for its rental units were former home owners who did not owe the HDB any money when they sold their flats.

In fact, some of those in the rental queue had enough money to buy a smaller unit after selling their flat, said National Development Minister Mah Bow Tan in the recent Budget debate.

The HDB stressed that its rental flats are meant for the poor who cannot afford to own a flat and have no other housing option.

Any family whose household income is $1,500 or less a month can apply for rental housing. Also, they must wait for 30 months after selling their flats before being eligible for subsidised rental homes.

MPs interviewed say they are seeing more and more people approaching them for help in securing a rental flat.

Besides those hit by rising rentals and financial troubles, there were others who had their flats repossessed by banks when they could not service their home loans.

The heavily subsidised HDB rental units are the only lifeline for these people, say the MPs interviewed, who included Ms Indranee Rajah, Madam Cynthia Phua and Madam Halimah Yacob.

Depending on household income and other factors, rentals are between $26 and $205 a month for a one-room flat; and between $44 and $275 for a two-room unit.

One person who has been on the waiting list for the past few months is part-time promoter Chan Yoke Yin, 46.

Her family ran into debt when her husband, a bus driver, was hit by cancer and a stroke, and had to stop work about four years ago.

The family started to fall behind in loan payments, and now owes the HDB more than $300,000 for a five-room flat. Madam Chan, who earns about $1,000 monthly, says she has 'no choice' but to sell her flat.

Ms Rajah said: 'I have had an inordinately large number of people coming for help to get a rental flat last year.

'There seems to be an acute shortage of rental flats.'

She has seen at least two cases of people living in the open while waiting for a rental unit, she said. One is an odd-job worker who has been sleeping at a bin centre for months, while the other is a family living on the beach.

The HDB says people who need a flat urgently can switch to estates where the wait is shorter, for example, in Woodlands. Waiting time at these estates is around three months, compared to Bedok and Tampines, where one can wait for up to 15 months.

Meanwhile, the HDB is referring those in urgent need to charities which run temporary shelters. The first shelter for homeless families, New Hope Community Services, has taken in about 20 families since opening last year.

It is managing 'a few' flats for this purpose, the Ministry of Community Development, Youth and Sports (MCYS) told The Straits Times.

'These families are not allowed to stay long term at these flats and are expected to move out as soon as they find alternative housing,' said the MCYS spokesman. 'Many such families have been able to move on to stay with their relatives or friends.'

HDB is also increasing the supply of rental flats from the current 43,000 units to 50,000 over the next few years and reviewing the eligibility criteria for rental housing to help the 'genuinely poor'.

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Are days numbered for Malay Village?

April 4, 2008

Are days numbered for Malay Village?

URA says future plans for Paya Lebar area are being studied and will be revealed next month

By Lim Wei Chean

THE Malay Village's kampung-style houses on stilts promise a quaintness from the days of old Singapore.

But they are run-down, and visitors are welcomed by swarms of mosquitoes instead of retailers running businesses there.

The 2.2ha attraction in Geylang Serai was set up in 1989 to showcase traditional Malay village life.

The Malay community, among its harshest critics from the get-go, said the place would be a white elephant. Five changes of management and 19 years later, the prediction seems spot on.

Industry sources who spoke to The Straits Times on condition of anonymity said plans are afoot to tear the place down and replace it with a mixed development when its 20-year lease ends.

The Urban Redevelopment Authority declined comment. Its spokesman would say only that plans for the next decade or two are being studied for the Paya Lebar area, of which the Malay Village is a part. These will be revealed next month.

The 70 shop units there, which include restaurants and food stalls, are languishing. When The Straits Times visited last week, most units were closed, although many had signs proclaiming opening hours from 10am. Many units were vacant and bore 'For rent' posters.

Madam Y.J.Zhang, 70, who runs a provision shop, griped in Mandarin: 'There are more mosquitoes here than people.'

She said she barely makes $20 in sales on a good day, and her monthly rental is $1,300.

For Madam Junainah Ikbal, her toiletry and clothing shop sells nothing on most days. To make matters worse, the rent has gone up, from $3,200 to $3,500 this month, she said.

'How can we tahan?' she asked, using the Malay word for endure.

Tenants said that Malay Village Pte Ltd, the current management for the place, promised to hold events and promotions to pull in the crowds when it took over in 2006, but these did not materialise. The company could not be reached for comment.

Ms Ng Lee Li, a section head at Tourism Academy @ Sentosa, said the attraction's problem could lie in its lack of focus and appeal.

An industry observer, who declined to be named, said it could be that the Chinese running the place have not been able 'to give it depth'.

Madam Zhang, who has lived in Geylang for over 40 years, said: 'It is sad what this place has become.'


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Markets likely to fall more this year after brief rebound

Dark skies ahead: Soros

Markets likely to fall more this year after brief rebound

Friday • April 4, 2008

— Bloomberg

NEW YORK — Billionaire George Soros (picture) has called the current financial crisis the worst since the Great Depression and said markets would fall more this year after a brief rebound.

"We had a good bottom," Mr Soros said in New York, referring to the rally in stocks and the US dollar after JPMorgan Chase agreed to buy Bear Stearns on March 17. "This will probably not prove to be the final bottom," he said, adding the rebound might last six weeks to three months as the US moves closer to a recession.

Last summer, worried about market disruptions that started with rising sub-prime mortgage defaults, Mr Soros, 77, returned to a more active role in managing the US$17 billion ($24 billion) Quantum Endowment Fund.

He also decided to write his 10th book, "The New Paradigm for Financial Markets" in which he explains the causes of the current meltdown, a crisis he says has been in the making since 1980.

Mr Soros has bet on declines in the US dollar, 10-year Treasuries and US and European stocks. He expected foreign currencies to rise, as well as Chinese and Indian equities.

The latter bet helped Quantum with returns of 32 per cent last year.

The euro has climbed 7.5 per cent against the US dollar this year and the Japanese yen has gained 9.1 per cent. These and other currencies may continue to strengthen, he said.

"There is an increasing unwillingness to hold dollars, though there's a lack of suitable alternatives," he said.

Federal Reserve officials dropped their benchmark interest rate 2 percentage points this year to 2.25 per cent, and Mr Soros doesn't see that they can lower the rate much further, given the weak dollar.

"We are close to the limit," he said.

Credit default swaps may be the next crisis area because the market is unregulated, and it's impossible to know whether counterparties can meet their obligations in the event of a bond default.

The market has a notional value of about US$45 trillion, or about half the total wealth of US households.

Mr Soros recommends the creation of an exchange with a sound capital structure and strict margin requirements, where current and future contracts could be traded.

He believes the cause of the current troubles dates back to 1980. It was during this time that borrowing ballooned and regulation of banks and financial markets became less stringent.

The leaders then, Mr Soros said, believed that markets are self-correcting — if prices get out of control, they will eventually revert to historical norms. But this attitude created the current housing bubble, which in turn led to the seizing up of credit markets, Mr Soros said.

To avoid a super-bubble in the future, Mr Soros said banks must control their own borrowing. They must also curtail lending to clients, such as hedge funds, by demanding greater collateral and margin requirements on loans.


Copyright MediaCorp Press Ltd. All rights reserved.

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HDB, private apartment rentals set to rise

HDB, private apartment rentals set to rise
By Wong Siew Ying, Channel NewsAsia | Posted: 03 April 2008 0050 hrs

SINGAPORE : Rentals for HDB and mass market private apartments are set to rise in the coming years, with more foreign workers heading for Singapore.

Property agents expect rents to climb by about 10 percent this year. They say HDB flat-owners could gain from the spike in demand.

Singapore's two integrated resorts will be ready in the next two years. Besides attracting more tourists, they are also expected to draw thousands of foreign workers to the city state.

Resorts World at Sentosa says it will be hiring 10,000 people directly. And 40 percent of these jobs will go to foreigners, in view of the manpower crunch in Singapore.

Property agents say some of the foreign workers, especially higher-ranking staff, will have the means to purchase private residential properties.

But they expect the bulk of the workers to tap into the rental market for their housing needs. And this will push prices up in the short-term as supply plays catch up.

On average, monthly rentals for private apartments range between S$2,500 and S$3,500. This may be too much for some workers.

Mohamed Ismail, CEO of PropNex, said: "The public housing becomes next best alternative where today people are still able to rent at S$1,500 to S$2,000. I expect this trend to continue, as far as estates that will have a greater demand ... such as those in Telok Blangah, Bukit Merah, Bishan, Toa Payoh - anything that is not too far away from town or to the integrated resorts - will definitely have greater take-up rates."

Industry players say private residential properties currently enjoy a rental yield of some 5 percent, while that of HDB flats is between 8 and 10 percent - among the highest ever in Singapore for public housing.

All in, agents expects rentals to climb by some 10 percent in the next two years. - CNA/de



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Futura minority owners withdraw appeal against en bloc sale

Futura minority owners withdraw appeal against en bloc sale
By Woon Siew Leng, 938LIVE | Posted: 03 April 2008 1747 hrs

SINGAPORE: Minority owners of the Futura condominium on Leonie Hill Road have withdrawn their appeal against the en bloc sale of the property.

The reasons for the decision have not been disclosed.

Futura was sold to City Developments' subsidiary City Sunshine in October 2006 for S$287 million. This means each unit owner will get between S$3.7 million and S$9.4 million.

However, some minority owners complained that the deal was not done in good faith, with no land survey done.

They also contended that a meeting of owners was not called before the price was accepted.

Now that the appeal has been withdrawn, the sale must be completed within a month. - 938LIVE/ac


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Thursday, April 3, 2008

Capitol Theatre slated for redevelopment

April 3, 2008

Capitol Theatre slated for redevelopment

URA plans makeover for theatre and adjoining Capitol Building and Stamford House

By Hong Xinyi

CAPITOL Theatre, the 79-year-old building which screened its last movie in 1998, will be redeveloped along with its adjoining buildings - Stamford House, Capitol Building and Capitol Centre - next year.

Close to 90 per cent of tenants will be moving out by May next year. 'We will inform the tenants of the need to move and work with them once the timing and details for the development of the site are finalised,' said a spokesman for the Singapore Land Authority (SLA), which oversees the current tenants of these buildings.

The buildings will be tendered out as a single integrated site, encompassing an area of about 1.45ha, an Urban Redevelopment Authority (URA) spokesman told The Straits Times.

The timing and details of the tender are being studied but heritage buffs need not fear that a piece of Singapore history will be erased from the landscape.

Three of these buildings have been gazetted for conservation, which means, among other things, that their facades must be maintained.

Stamford House, built in 1904, is the oldest of the three buildings. Capitol Theatre was built in 1929, and Capitol Building, previously known as Shaw Building, in 1933.

Asked why it was being redeveloped, the URA spokesman said that the area, between Hill Street and North Bridge Road along Stamford Road, has not 'fully maximised its development potential'.

The four buildings have a total of 250 tenants, including offices and retail outlets.

The area has also drawn a cluster of boutiques run by home-grown designers such as Ms Celia Loe and Ms Baylene Li in recent years.

Most are loath to move from their spacious premises set in a piquant environment, especially given the relatively low rents set by the SLA.

Fashion designer Kevin Seah, 33, whose eponymous boutique has been in Stamford House for the past year, said: 'It's my dream place for a boutique since I decided to become a fashion designer at age 15. I love the classic architecture.'

He is paying about $5 per sq ft for his store now, and expects to pay up to 10 times more if he relocates to a mall.

Another boutique owner, Mr Nicholas Wong, 35, said the area attracts a good mix of locals and tourists, who are drawn by the cluster of local labels.

'I think shopping here is quite a different experience from going to a typical mall. I hope Singapore's shopping scene won't be just all malls.'

Property analysts reckon that the bigger developers would be keen to bid for the site. Likely bid prices are difficult to gauge as this would depend on the duration of the lease and conditions of development imposed by the authorities.

Mr Nicholas Mak, director of research and consultancy at Knight Frank, liked the idea of having one developer to give the area a special feel, 'instead of many different entities doing a more rojak kind of development with no coherent theme'.

'But it also means that the whole development will either succeed or fail together. It's putting all your eggs into one basket.'

But it may well be easier for a single developer to make the long-vacant Capitol Theatre a lively place again, he added.

Once owned by a Persian family and later Shaw Cinema, it was acquired by the URA in 1987. In 2000, the Singapore Tourism Board took over the building to explore alternative uses for it, but plans to turn it into a home for an arts group did not bear fruit.

'Capitol Theatre wasn't built as a cineplex, so it may need surrounding restaurants and retail outlets to draw crowds and generate revenue,' said Mr Mak.

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Key trends in China property sector

Business Times - 03 Apr 2008


Key trends in China property sector

Despite slower economic growth and uncertainty over Beijing's austerity measures, China's residential, retail and office markets still offer attractive investments, says KENNY HO

THIS is the year of the Beijing Olympics and all eyes will be on China as it celebrates its arrival as a major global power.

Politically, this is the first full year of President Hu Jintao's second five-year term. Having consolidated his power following the 17th Party Congress, Mr Hu will likely push forward with reforms over the next five years as he builds his political legacy. And with the US economy moving closer to a recession, we expect China to enlarge its prominence as a growth engine for the world economy.

This article provides an overview of the key trends affecting residential, retail and office property markets across China and our advice to the individual and institutional property investors.

Office supply and demand

By mid-2008, the completion of the Shanghai World Financial Centre, one of the world's tallest buildings, will mark the official beginning of the second office supply boom in Shanghai (the first one was from 1996 to 2001). In fact, all across China, we are in or will soon be entering a five-year supply cycle. Cities across China are trying to copy the Pudong model in creating new central business districts (CBD), though we are alarmed to see various Tier III cities, such as Yantai, trying to promote themselves as international financial centres.

The obvious question is: 'Will there be enough demand?' Our answer is yes and no.

Yes, there will be demand, but it will not be enough to fill all of the new space. In the medium term, office demand should continue on an upward trend in major Tier II commercial hubs as companies eagerly try to tap into China's growing domestic market. But while cities such as Shanghai will be able to absorb most of the 800,000 square metres of new supply this year, we expect office supply in most Tier II cities to outpace demand over the next 12 months, and in some cases by a wide margin.

The good news for investors is that good quality buildings will still achieve a significant rental premium over the market average while attracting the most prestigious tenants.

Therefore, as an office property investor, it is crucial that a) the quality of your building can withstand a rapidly evolving market, and b) you have a solid grasp of the competition in your particular market segment.

Hot retail locations

As revealed in our recently published 2007 Retailer Sentiment Survey Asia, retailers will continue to expand their China presence in 2008, and are optimistic on both revenue and profit margins.

Nevertheless, it is important to keep in mind that while the retail scene in Tier I cities such as Shanghai and Beijing is rapidly diversifying and maturing, most Tier II and III markets remain much less sophisticated.

The reality of these markets is that the majority of consumers in China still prefer to save a significant portion of their income and spend it on necessities, child education and quality of life items such as homes and cars.

When Chinese consumers do spend on luxury items, their choices are often guided by their need for identity, social status and bragging rights. It is no wonder that well-established brands such as Louis Vuitton and Gucci are hugely popular in Tier II markets while lesser known brands trail them by a wide margin.

We expect retailers to invest heavily in marketing their brands to the Chinese consumers. This means that highly visible retail space in prime locations will continue to be the hottest commodity, whether in Beijing, Chongqing or Foshan.

Outside of the best locations, mall owners must work hard to attract and maintain a winning roster of retail tenants, and by doing so create an irreplaceable retail destination for shoppers.

Affordable housing

Over the last few months, we have often been asked: 'Will further policy tightening lead to a major correction in residential prices?'

In short, the answer is no. Contrary to popular belief, the government's policy goal is not to lower prices in the existing market. Instead, it is working hard to ensure the future availability of affordable housing in three ways:

Increase effective land supply, either by releasing new land plots or repossessing dormant land plots from the hands of developers;

Lower land prices, by introducing more land supply and limiting the ability of developers to bring capital from offshore sources (such as foreign funds or the Hong Kong stock market) and use it to capitalise their onshore project companies.

Discourage investment demand in the residential market, by increasing the downpayment requirement (from 30 to 40 per cent) and raising the mortgage rate (from 6.6 to 8.6 per cent) for second-home buyers.

On the demand side, owner-occupier demand remains strong as the population's standard of living continues to improve. However, markets such as Shenzhen, where prices have been driven largely by speculative buyers from Hong Kong, are experiencing a slowdown, and in some cases, significant price drops.

It is best to confine purchases to areas where demand is visible and easily understandable - CBDs, traditional high-end residential clusters or areas near mass transit stations.

For residential investors, it is important to keep in mind that with current taxes and mortgage rates, your total transaction cost adds up to over 20 per cent of your purchase price. While we are comfortable with a steady 10 per cent annual growth in residential prices given that urban income rises at around the same rate, a 20 per cent transaction cost will eat up most of your profit if you hold the property for less than two years.

In conclusion, while we expect slower economic growth, a large amount of new office supply and continued uncertainty around government austerity measures in 2008, the long-term demand outlook remains positive for all three property sectors in China. For patient investors, 2008 may turn out to be a good year to look for bargains and to start building long-term positions in your China portfolio.


The writer is head of research - China, Jones Lang LaSalle

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

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Leng Beng's recipe for public housing

Business Times - 03 Apr 2008


Leng Beng's recipe for public housing

Lease new units to first-time S'porean buyers, with option to buy: CDL chief

By KALPANA RASHIWALA

CDL boss Kwek Leng Beng has a suggestion to make housing more affordable for young Singaporeans.

He says the government could build more public housing units, lease them out to young Singaporean first-time buyers and give them an option to buy the flats within 10 years, at fixed prices.

'I think there's demand for such housing from younger people, including singles. I think smaller flats with one or two bedrooms will be quite suitable for them,' Mr Kwek, who is executive chairman of City Developments Ltd, said in a recent interview with BT.

'Such a policy would cater to those who feel housing costs have gone up too high and they can't afford them. Over time, as these people get more pay, they can afford to buy the homes,' he added.

The Housing and Development Board currently has schemes to rent out public flats to Singapore citizens but these are for lower-income households with gross monthly incomes not exceeding $1,500 for the Public Rental Scheme, and $2,000 (at the point of application) for the Rent and Purchase Scheme.

The latter scheme, typically for three-room flats, allows those who rent flats to buy them later from HDB.

The schemes are open only to those who have a family nucleus, which effectively excludes single Singaporeans making solo applications.

Singaporeans also have a range of choices when it comes to buying public housing flats, whether directly from HDB or through the resale market.

However, the scheme Mr Kwek proposes would be directed at the younger set, including singles, who may just be starting out in their careers and find housing prices too high.

'Their salaries may not be enough today,' he said. 'However, over time, their incomes will rise - but by then, they still may not be able to afford buying a home because property prices may have appreciated further. So the government could build new flats and rent these out to Singaporeans and give them the first right to buy the units within, say, 10 years, at a fixed price.

'If eventually, they don't buy these homes, the government can take them back and lease them to others.

'This would be a way of helping our citizens. If I am young, talented, you should give me a chance to own a flat. It will give me something to work hard for. I'll want to be successful. So we'll also be encouraging them to be more entrepreneurial,' reckons the father of two sons, one in his early 30s and the other in his late 20s.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.


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Leng Beng urges nimble feet in shifting landscape

Business Times - 03 Apr 2008


Leng Beng urges nimble feet in shifting landscape

CDL chief suggests review of land sales, rethink on deferred payment scheme

By KALPANA RASHIWALA

(SINGAPORE) The uncertainty surrounding the local property market will last at least another six months and stakeholders must stay nimble to deal with the changing tides, says property tycoon Kwek Leng Beng.

Speaking to BT, he said that the standstill in the local property market would end only after the US sub- prime crisis clears. 'I believe it will take another six months - if not more,' the executive chairman of listed City Developments Ltd (CDL) added.

But any restoration of confidence in the property market will also hinge on stakeholders - in both the private and public sectors - remaining nimble and reviewing their strategies and policies to meet changing market conditions swiftly, Mr Kwek stressed in a recent interview with BT.

'You have to cut your coat according to your cloth. As a developer, if I said last year that I was planning to launch five projects this year, but you know this year the market is quiet, it would be unwise for me to say 'because I decided last year to launch five projects this year, I must still go ahead'.'

He urged the government to likewise review its current land sales programme. The programme was fixed last year, when the market was buoyant, compared to conditions today.

The Government Land Sales Programme is announced every six months. The current H1 2008 slate of sites was announced early last December, which means that some of the decisions were probably made even earlier, property consultants say.

'It's been proven in the past that the Singapore property market is a very important pillar that is closely linked to other markets - for example, financial markets, and the construction sector - and is in part driven by sentiment. So it's vital for stakeholders in the private and public sectors in the property industry to remain nimble. They can do this by reviewing and modifying their practices quickly to stay relevant. By doing this, we can minimise potential problems and address them ahead of time,' argues Mr Kwek, 68, who has about four decades of experience in the property business.

He also advocates a free-market approach to policy at Singapore's current stage of development. 'As Singapore competes in the race among global cities, Singapore must not be perceived as a city that interferes unduly in market forces. We should instead allow market forces to prevail in the property market - unless the situation gets out of hand,' Mr Kwek says.

He also says that the government may have been too quick to scrap the deferred payment scheme last October. Mr Kwek suggests the authorities should reconsider the scheme, which was started around 2002 to help stabilise the weak property buying sentiment at the time.

Under the scheme, private property buyers could buy units in uncompleted developments with just a 10 or 20 per cent downpayment, with the payment for the rest of the purchase price in some cases postponed until the completion of the project. In contrast, under the normal progress payment scheme, buyers have to pay regular instalments to the developer, based on the stage of the project's construction.

'If I am a developer and I want to offer deferred payment schemes to my home buyers, perhaps the developers' bankers may be in a better position to assess the viability of the scheme even whilst staying prudent. The assessment will take into account the project, as well as the developers behind the scheme,' Mr Kwek argues.

Many analysts had blamed deferred payment for fuelling property speculation. Mr Kwek, while acknowledging this, argues that the scheme also served a useful function: it enabled buyers of new residential properties to dispose of their existing properties at a gradual pace, instead of being forced to sell them.

The deferred payment scheme could be revived again - but this time with a higher initial payment of 30 per cent instead of 20 per cent, suggests Mr Kwek, who is also chairman and managing director of listed Hong Leong Finance.

He praises the government's handling of the office crunch. The Urban Redevelopment Authority's introduction of transitional office sites - allowing temporary low-rise office blocks to be built quickly on 15-year leasehold sites - was a swift response to increase office supply for businesses that don't need to be in a posh CBD office block.

'But a global city does not necessarily mean your office rentals have to be cheap. Tokyo, London, New York all have high rents but continue to attract businesses. What's just as important is that you have to create an environment where businesses can make money.

'Don't forget, there are many cities fighting for investments. They can all copy Singapore. It's very easy to duplicate. So to get ahead of the pack, we have to think of something different - something that nobody has done. This boils down to being nimble,' Mr Kwek suggests.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

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