Business Times - 03 Jul 2008
Hi-tech rents, occupancy rates up
Insufficient and expensive offices drive tenants to business parks, leading to 6.8% rise q-o-q
By EMILYN YAP
RENTS and occupancy rates for hi-tech and business park space were lifted in the second quarter of this year by spillover demand for office space, property consultants say. And rents for factories and warehouses have edged up too.
According to CB Richard Ellis (CBRE), the average island-wide hi-tech monthly rent rose 6.8 per cent quarter-on-quarter to $3.15 per sq ft (psf) in Q2. Year-on-year, the increase was 34 per cent.
Insufficient and increasingly expensive office space is driving tenants to hi-tech space or business parks, CBRE said in a statement yesterday.
Jones Lang LaSalle (JLL) also says that companies are relocating backroom operations to hi-tech space. Its latest figures show that the average island-wide hi-tech rent rose 2.4 per cent quarter-on-quarter to $4.25 psf per month in Q2. Compared with a year earlier, the increase was 63.5 per cent.
While figures from both property consultants indicate rising rents for hi-tech space, the degree of increase differs.
'The disparity is a result of differences in the basket of properties that research houses use to track the market,' said JLL's head of research (South-east Asia) Chua Yang Liang. 'This difference is more pronounced in periods when segments of the market respond differently to external stimulus.'
CBRE says that for business parks, the average occupancy rate was 88 per cent at end-March and could have exceeded 90 per cent by the end of Q2. This would be a new peak.
The firm's director of industrial and logistics services, Bernard Goh, says that rents at business parks also rose in Q2.
More business park space will be coming on stream. According to CBRE, Biopolis Phase III will be completed in Q4 2009. And JTC Corporation launched a tender for Plot 61 in Changi Business Park last month.
For factory space, the average monthly rent for a ground-floor unit rose 3.3 per cent to $1.55 psf in Q2, says CBRE.
The average capital value of ground-floor units in 60-year leasehold strata-titled factories edged up about 3 per cent quarter-on-quarter to $302 psf.
Ground-floor units in warehouses registered a 3.3 per cent increase in average monthly rent to $1.55 psf in Q2.
Rising raw material costs, a stronger Singapore dollar and weakening demand for exports have made manufacturers cautious about their outlook, dampening demand for factories and warehouses, says CBRE.
'However, the government has reiterated that the manufacturing sector will remain important to Singapore's economy,' it says. 'As such, manufacturers are still encouraged to set up their facilities on the island, and demand for industrial space is expected to remain healthy.'
CBRE points out that recently there have been few purchases by industrial REITs, as funding availability has dropped. According to Mr Goh: 'The limited credit supply is likely to continue to curtail the ability of the REIT players to expand their respective portfolios, but on the whole, industrial properties continue to remain an attractive asset class for institutional investors.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Thursday, July 3, 2008
Property developer gets women focus group to help design mixed-use centre
Business Times - 03 Jul 2008
It pays to ask the women
Property developer gets women focus group to help design mixed-use centre
IN designing shopping centres and mixed-use properties, Trademark Property Co of Fort Worth, Texas, used to do what many developers do: put together teams of professionals like architects, designers and building consultants; send out surveys; and hold community meetings. But in 2005, when it began planning a large mixed-use centre, Watters Creek, for a 21 hectare site in Allen, near Dallas, it decided to consult a group it had never called on before: women.
CEO Terry Montesi first hired two female retail consultants: Claudia A Sagan and J'Amy Owens. But Trademark also invited two dozen women from the Allen area to pick apart its plans for the centre. They included Kirsten Fair, a stay-at-home mother of two, and Debbie Stout, a City Council member, who runs a company that sells business forms.
The women weighed in on dozens of features, like the centre's layout, landscaping, parking options, pedestrian walkways and outdoor art. The developers 'asked us about every detail, and then they listened', Ms Stout said recently. At Watters Creek, Trademark Property discovered that some of the reaction from its women's focus groups challenged conventional retailing wisdom.
Like many retail developers, Trademark Property was used to installing tall, often ornate, brick or stone buildings, as well as sidewalks, at developments like Market Street, a mixed- used centre it opened in Woodlands, near Houston, in 2004. The core of that mixed-used centre was intended to have a classic Main Street look.
The Watters Creek centre, however, was to be part of a 202 ha planned community whose master plan called for significant green space as part of its environment-friendly design.
The women also wanted a village look and feel, with buildings of various sizes, colours and textures that followed the rolling topography of the area, rather than sitting flat.
The first phase of Watters Creek, which is expected to cover 1.15 million square feet eventually, opened in May. So far, Trademark has studded it with buildings that act mostly as a backdrop to a parklike area with two stone bridges, a pond, a creek, a 10-metre-tall community fireplace, climbable sculptures, and 10 restaurants that have outdoor seating with views of the pond, creek or village green.
The women are delighted\. \-- NYT
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
It pays to ask the women
Property developer gets women focus group to help design mixed-use centre
IN designing shopping centres and mixed-use properties, Trademark Property Co of Fort Worth, Texas, used to do what many developers do: put together teams of professionals like architects, designers and building consultants; send out surveys; and hold community meetings. But in 2005, when it began planning a large mixed-use centre, Watters Creek, for a 21 hectare site in Allen, near Dallas, it decided to consult a group it had never called on before: women.
CEO Terry Montesi first hired two female retail consultants: Claudia A Sagan and J'Amy Owens. But Trademark also invited two dozen women from the Allen area to pick apart its plans for the centre. They included Kirsten Fair, a stay-at-home mother of two, and Debbie Stout, a City Council member, who runs a company that sells business forms.
The women weighed in on dozens of features, like the centre's layout, landscaping, parking options, pedestrian walkways and outdoor art. The developers 'asked us about every detail, and then they listened', Ms Stout said recently. At Watters Creek, Trademark Property discovered that some of the reaction from its women's focus groups challenged conventional retailing wisdom.
Like many retail developers, Trademark Property was used to installing tall, often ornate, brick or stone buildings, as well as sidewalks, at developments like Market Street, a mixed- used centre it opened in Woodlands, near Houston, in 2004. The core of that mixed-used centre was intended to have a classic Main Street look.
The Watters Creek centre, however, was to be part of a 202 ha planned community whose master plan called for significant green space as part of its environment-friendly design.
The women also wanted a village look and feel, with buildings of various sizes, colours and textures that followed the rolling topography of the area, rather than sitting flat.
The first phase of Watters Creek, which is expected to cover 1.15 million square feet eventually, opened in May. So far, Trademark has studded it with buildings that act mostly as a backdrop to a parklike area with two stone bridges, a pond, a creek, a 10-metre-tall community fireplace, climbable sculptures, and 10 restaurants that have outdoor seating with views of the pond, creek or village green.
The women are delighted\. \-- NYT
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Retail property market remains stable in Q2: DTZ
Business Times - 03 Jul 2008
Retail property market remains stable in Q2: DTZ
Turnover rents rise; limited growth for fixed gross rents
By NISHA RAMCHANDANI
BUOYED by positive consumer sentiment and the Great Singapore Sale period, the retail property market remained stable in the second quarter of this year, according to a market report by real estate consultancy DTZ.
Turnover rents in Q2 rose, but there was limited growth for fixed gross rents. DTZ noted that tenants were 'resisting committing at higher rents for both new retail space and lease renewals'.
First-storey monthly fixed gross rents remained largely unchanged quarter on quarter, hovering at an average of $42.40 per square foot (psf) for prime areas such as Orchard/Scotts Road, $33.70 psf in suburban areas and $27.10 psf in other city areas.
The retail market is expected to remain stable, despite competition from additional supply that will come on stream over the next few years. Malls such as ION Orchard, Orchard Central and 313 @ Somerset are slated for completion by 2009.
As much as 5.4 million square feet of retail space will be added to the mix between the second half of this year and 2012. Marina Bay Shoppes by developer Marina Bay Sands will account for the biggest chunk of that space, with 15 per cent or 800,000 sq ft, closely followed by CapitaLand and Sun Hung Kai Properties' ION Orchard at 663,000 sq ft.
The suburban retail scene will also be bolstered by upcoming developments, mainly in the west and north-west regions, such as the Big Box project at Jurong Regional Centre and the Civic Cultural and Retail Complex at Vista Xchange. Fifty per cent of the potential supply in suburban areas is in the west.
DTZ's retail associate director Anna Lee says: 'The increase in future supply will put a cap on price and rental increases, while offering opportunities for the retail market to reinvent itself with new concepts and offerings.'
Singapore's retail sales for April - excluding vehicles - rose 7.7 per cent year on year. But total retail sales value dipped about 4 per cent to $2.77 billion, from March's $2.89 billion, with almost all sectors reporting less activity in April.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Retail property market remains stable in Q2: DTZ
Turnover rents rise; limited growth for fixed gross rents
By NISHA RAMCHANDANI
BUOYED by positive consumer sentiment and the Great Singapore Sale period, the retail property market remained stable in the second quarter of this year, according to a market report by real estate consultancy DTZ.
Turnover rents in Q2 rose, but there was limited growth for fixed gross rents. DTZ noted that tenants were 'resisting committing at higher rents for both new retail space and lease renewals'.
First-storey monthly fixed gross rents remained largely unchanged quarter on quarter, hovering at an average of $42.40 per square foot (psf) for prime areas such as Orchard/Scotts Road, $33.70 psf in suburban areas and $27.10 psf in other city areas.
The retail market is expected to remain stable, despite competition from additional supply that will come on stream over the next few years. Malls such as ION Orchard, Orchard Central and 313 @ Somerset are slated for completion by 2009.
As much as 5.4 million square feet of retail space will be added to the mix between the second half of this year and 2012. Marina Bay Shoppes by developer Marina Bay Sands will account for the biggest chunk of that space, with 15 per cent or 800,000 sq ft, closely followed by CapitaLand and Sun Hung Kai Properties' ION Orchard at 663,000 sq ft.
The suburban retail scene will also be bolstered by upcoming developments, mainly in the west and north-west regions, such as the Big Box project at Jurong Regional Centre and the Civic Cultural and Retail Complex at Vista Xchange. Fifty per cent of the potential supply in suburban areas is in the west.
DTZ's retail associate director Anna Lee says: 'The increase in future supply will put a cap on price and rental increases, while offering opportunities for the retail market to reinvent itself with new concepts and offerings.'
Singapore's retail sales for April - excluding vehicles - rose 7.7 per cent year on year. But total retail sales value dipped about 4 per cent to $2.77 billion, from March's $2.89 billion, with almost all sectors reporting less activity in April.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Foreigners to be issued new pass
Business Times - 03 Jul 2008
Foreigners to be issued new pass
By MELISSA YEO
A NEW Long Term Pass (LTP) will be issued to foreigners living in Singapore as part of plans to beef up national security, the Immigration & Checkpoints Authority (ICA) and Ministry of Manpower (MOM) said yesterday.
The card will be issued to all foreigners here on a student pass (STP), long-term visit pass, employment pass or dependant's pass. It will replace the current stamp endorsement and disembarkation/ embarkation (D/E) card system.
Unlike the D/E card, the LTP card incorporates the holder's photo and fingerprint - to deter forgery and fraudulence.
The LTP card will be introduced to new pass holders in the second half of this year. Current holders of long-term visit passes and STPs will change to the LTP card from the second quarter of 2009 when they renew their passes.
A new Employment Pass Services Centre (EPSC) will be set up at this time to register and issue LTP cards to Work Permit and S Pass Holders.
More details of the LTP card's design and security features will be released closer to the date of its implementation.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Foreigners to be issued new pass
By MELISSA YEO
A NEW Long Term Pass (LTP) will be issued to foreigners living in Singapore as part of plans to beef up national security, the Immigration & Checkpoints Authority (ICA) and Ministry of Manpower (MOM) said yesterday.
The card will be issued to all foreigners here on a student pass (STP), long-term visit pass, employment pass or dependant's pass. It will replace the current stamp endorsement and disembarkation/ embarkation (D/E) card system.
Unlike the D/E card, the LTP card incorporates the holder's photo and fingerprint - to deter forgery and fraudulence.
The LTP card will be introduced to new pass holders in the second half of this year. Current holders of long-term visit passes and STPs will change to the LTP card from the second quarter of 2009 when they renew their passes.
A new Employment Pass Services Centre (EPSC) will be set up at this time to register and issue LTP cards to Work Permit and S Pass Holders.
More details of the LTP card's design and security features will be released closer to the date of its implementation.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Rentals making gentle waves at Sentosa Cove
Business Times - 03 Jul 2008
Rentals making gentle waves at Sentosa Cove
They could hold firm despite gloom elsewhere and offer decent yields
By ARTHUR SIM
(SINGAPORE) Close to 300 homes at Sentosa Cove, including 200 condominium units, have received Temporary Occupation Permit (TOP) and the exclusive enclave is starting to bustle.
DTZ Debenham Tie Leung, which is the property manager of the 200-unit The Berth by the Cove says that the development is now about 70 per cent tenanted.
It added that the remaining units of the fully-sold development are owner-occupied, some of which are weekend homes or holiday homes for foreigners.
Other developments that have received TOP include The Berthside, Ocean 8, The Villas @ Sentosa Cove, Coral Island and North Cove.
Expected to come onto the leasing market next is the 116-unit The Azure, which is also fully sold.
And the popularity of The Berth by the Cove with the leasing market bodes well for the remaining 2,200 homes that are still being constructed.
DTZ senior director (research) Chua Chor Hoon said that the supply of new homes in Sentosa Cove is still 'limited' compared to the rest of Singapore and the units have 'the unique feature of close proximity to the sea'.
Saying that the limited supply of units in Sentosa Cove will limit any downward pressure on rentals, Ms Chua added: 'Rental prospects are likely to be better.'
This upbeat outlook for Sentosa Cove is particularly pertinent at a time when new housing supply is expected to flood the rental market by next year.
In a recent report, DTZ noted that in general, rentals would come under pressure between 2009 and 2011, not just from new supply but from the sub-sale market as well as it is unlikely that speculators will want to hold units for low rental income.
DTZ said that based on its basket of non-landed properties in the prime district (excluding luxury properties) average monthly rents are currently still holding steady at $4.90 psf per month.
While DTZ did not reveal rentals at The Berth by the Cove, a check with SISV-Realink shows that the rental for a unit there contracted for $19,500 per month in May.
Colliers International also said it believes median rentals could be around $6 psf per month.
Colliers director (research and advisory) Tay Huey Ying added that based on the average launch price of The Berth by the Cove of about $860 psf in 2004/2005, investors who bought units at this price could now be enjoying a net rental yield of about 5.5 per cent.
Those that bought units from the secondary market later when the price rose to about $1,500 psf will be looking at a net rental yield of 3.5 per cent.
'Nevertheless, these investors would still be enjoying a higher net rental return compared to those who invested in a freehold luxury apartment on the main island of Singapore in recent times since the latter are generating average net rental returns estimated to be in the region of 2.3 per cent,' added Ms Tay.
In time over 1,700 condominiums will be completed. Savills Singapore director (marketing and business development) Ku Swee Yong believes that buyers for most of these units will be investors, suggesting that a majority will be put up for lease.
Still, he said that there is a niche market for this type of waterfront home. 'We had an expat client who was looking to rent and after showing him a few options, he chose The Berth because he already has a yacht,' reveals Mr Ku.
Interestingly, Mr Ku says the advent of the integrated resort on Sentosa may not necessarily guarantee a pool of tenants. 'Not everyone will want to live so close to work,' he added.
What he does believe is crucial to the success of Sentosa Cove as an exclusive enclave is the provision of high end amenities. He added: 'Once these are completed, we believe Sentosa Cove rents could demand a premium over Orchard Road.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Rentals making gentle waves at Sentosa Cove
They could hold firm despite gloom elsewhere and offer decent yields
By ARTHUR SIM
(SINGAPORE) Close to 300 homes at Sentosa Cove, including 200 condominium units, have received Temporary Occupation Permit (TOP) and the exclusive enclave is starting to bustle.
DTZ Debenham Tie Leung, which is the property manager of the 200-unit The Berth by the Cove says that the development is now about 70 per cent tenanted.
It added that the remaining units of the fully-sold development are owner-occupied, some of which are weekend homes or holiday homes for foreigners.
Other developments that have received TOP include The Berthside, Ocean 8, The Villas @ Sentosa Cove, Coral Island and North Cove.
Expected to come onto the leasing market next is the 116-unit The Azure, which is also fully sold.
And the popularity of The Berth by the Cove with the leasing market bodes well for the remaining 2,200 homes that are still being constructed.
DTZ senior director (research) Chua Chor Hoon said that the supply of new homes in Sentosa Cove is still 'limited' compared to the rest of Singapore and the units have 'the unique feature of close proximity to the sea'.
Saying that the limited supply of units in Sentosa Cove will limit any downward pressure on rentals, Ms Chua added: 'Rental prospects are likely to be better.'
This upbeat outlook for Sentosa Cove is particularly pertinent at a time when new housing supply is expected to flood the rental market by next year.
In a recent report, DTZ noted that in general, rentals would come under pressure between 2009 and 2011, not just from new supply but from the sub-sale market as well as it is unlikely that speculators will want to hold units for low rental income.
DTZ said that based on its basket of non-landed properties in the prime district (excluding luxury properties) average monthly rents are currently still holding steady at $4.90 psf per month.
While DTZ did not reveal rentals at The Berth by the Cove, a check with SISV-Realink shows that the rental for a unit there contracted for $19,500 per month in May.
Colliers International also said it believes median rentals could be around $6 psf per month.
Colliers director (research and advisory) Tay Huey Ying added that based on the average launch price of The Berth by the Cove of about $860 psf in 2004/2005, investors who bought units at this price could now be enjoying a net rental yield of about 5.5 per cent.
Those that bought units from the secondary market later when the price rose to about $1,500 psf will be looking at a net rental yield of 3.5 per cent.
'Nevertheless, these investors would still be enjoying a higher net rental return compared to those who invested in a freehold luxury apartment on the main island of Singapore in recent times since the latter are generating average net rental returns estimated to be in the region of 2.3 per cent,' added Ms Tay.
In time over 1,700 condominiums will be completed. Savills Singapore director (marketing and business development) Ku Swee Yong believes that buyers for most of these units will be investors, suggesting that a majority will be put up for lease.
Still, he said that there is a niche market for this type of waterfront home. 'We had an expat client who was looking to rent and after showing him a few options, he chose The Berth because he already has a yacht,' reveals Mr Ku.
Interestingly, Mr Ku says the advent of the integrated resort on Sentosa may not necessarily guarantee a pool of tenants. 'Not everyone will want to live so close to work,' he added.
What he does believe is crucial to the success of Sentosa Cove as an exclusive enclave is the provision of high end amenities. He added: 'Once these are completed, we believe Sentosa Cove rents could demand a premium over Orchard Road.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Construction not putting tenants off
Sentosa rents soar
Construction not putting tenants off
Thursday • July 3, 2008
BARRY PORTER
barry@mediacorp.com.sg
SENTOSA Cove is slowly, but surely, attracting high-end tenants with the completion of an estimated 300 homes, including the 200-unit The Berth by the Cove condominium.
Despite ugly construction sites dotting many parts of Sentosa, the first luxury condo units and landed properties have drawn rents comparable to, if not higher than those in prime districts on the mainland, including Nassim Park and Grange Residences.
Colliers International has just completed its first rental survey of Sentosa Cove and says two-bedroom condos are fetching an average $5,350 a month, or $4.61 per square foot (psf).
Larger, four-bedroom units have rented for an average $10,625, which also equates to $4.61psf. However, one rented for $12,250.
As for landed homes, terrace houses ranging in size from 2,600 to 3,600 square feet have let for an average $15,333, or $5.19psf, while the first luxury bungalows ranging in size from 2,530 to 4,983 sq ft have been let for an average $24,000. The highest rental to date is $30,000.
“This is encouraging, given that so much construction is going on,” said Tay Huey Ying, Colliers director of research and advisory. “When fully-developed, it should be even more appealing to potential tenants.”
The idea of developing the 117-hectare cove into a waterfront enclave was first mooted in the ’80s. However, the first land parcel was only sold to the private sector in end-2003. Five years on, temporary occupation permits have been granted to just the first five small developments completed, with Ho Bee Group’ 200-unit The Berth being by far the largest.
More is to come, with land already sold capable of accommodating over 2,000 condo units and 400 bungalows or terrace homes.
Colliers said investors who bought units in The Berth at the end of 2004 or early 2005 and have held onto them are today enjoying attractive net rental yields of 5.5 per cent. Purchase prices have since surged. As such, Colliers said those who entered the market later in 2007 now have to contend with lower yields averaging at 3.5 per cent.
Prices of non-landed homes have shot up from an initial launch price of $785 per sq ft in November 2004 for The Berth to current $2,800psf for Lippo Group’s The Marina Collection.
Copyright MediaCorp Press Ltd. All rights reserved.
Construction not putting tenants off
Thursday • July 3, 2008
BARRY PORTER
barry@mediacorp.com.sg
SENTOSA Cove is slowly, but surely, attracting high-end tenants with the completion of an estimated 300 homes, including the 200-unit The Berth by the Cove condominium.
Despite ugly construction sites dotting many parts of Sentosa, the first luxury condo units and landed properties have drawn rents comparable to, if not higher than those in prime districts on the mainland, including Nassim Park and Grange Residences.
Colliers International has just completed its first rental survey of Sentosa Cove and says two-bedroom condos are fetching an average $5,350 a month, or $4.61 per square foot (psf).
Larger, four-bedroom units have rented for an average $10,625, which also equates to $4.61psf. However, one rented for $12,250.
As for landed homes, terrace houses ranging in size from 2,600 to 3,600 square feet have let for an average $15,333, or $5.19psf, while the first luxury bungalows ranging in size from 2,530 to 4,983 sq ft have been let for an average $24,000. The highest rental to date is $30,000.
“This is encouraging, given that so much construction is going on,” said Tay Huey Ying, Colliers director of research and advisory. “When fully-developed, it should be even more appealing to potential tenants.”
The idea of developing the 117-hectare cove into a waterfront enclave was first mooted in the ’80s. However, the first land parcel was only sold to the private sector in end-2003. Five years on, temporary occupation permits have been granted to just the first five small developments completed, with Ho Bee Group’ 200-unit The Berth being by far the largest.
More is to come, with land already sold capable of accommodating over 2,000 condo units and 400 bungalows or terrace homes.
Colliers said investors who bought units in The Berth at the end of 2004 or early 2005 and have held onto them are today enjoying attractive net rental yields of 5.5 per cent. Purchase prices have since surged. As such, Colliers said those who entered the market later in 2007 now have to contend with lower yields averaging at 3.5 per cent.
Prices of non-landed homes have shot up from an initial launch price of $785 per sq ft in November 2004 for The Berth to current $2,800psf for Lippo Group’s The Marina Collection.
Copyright MediaCorp Press Ltd. All rights reserved.
Business parks and high-tech sites gaining popularity
July 3, 2008
Business parks and high-tech sites gaining popularity
By Chua Hian Hou
BUSINESS parks and other high-tech industrial sites in Singapore have become increasingly popular among eligible tenants.
According to a new report released yesterday by CB Richard Ellis (CBRE), the overall occupancy rate at business parks probably hit a new high of 90 per cent last month, up from 88 per cent in March.
To rent space at sites like Changi Business Park, prospective tenants must meet certain criteria. These include carrying out research and development work.
Rental rates at these high-tech spaces are heading north. The rates may be cheaper than ultra-high-tech business parks and prime office space, but they were expected to have risen 6.8 per cent last month to $3.15 per sq ft per month from the first quarter.
The popularity of these sites, the report said, was due to the 'limited availability and continued rental increases' of office space in the Republic, although the dizzying upward spiral in rental rates had abated in recent months.
Nevertheless, prime office spaces can cost upwards of $16 per sq ft per month - far more expensive than in business parks.
Last year, prime office rents nearly doubled on the back of tight office space and a strong demand from occupiers, including global financial institutions expanding their operations in Singapore. This was on top of the 50 per cent-plus rise that prime office rents registered in 2006.
More business park and other high-tech sites are being built in Singapore. Recently, two business park sites in one-north were awarded.
Biopolis Phase III, which will have a gross floor area of 41,505 sq m when completed late next year, is being built by Crescendas Bionix.
Solaris, formerly known as Fusionopolis Phase 2B, will be built by Soilbuild Group Holdings. When completed by June next year, Solaris will have a gross floor area of 50,271 sq m.
Industrial landlord JTC Corp has also launched a new 'concept and price' tender at Changi Business Park.
This site will have a maximum gross floor area of 47,006 sq m, of which 40 per cent is designed for hotel and retail use. The tender will close next month.
--------------------------------------------------------------------------------
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Business parks and high-tech sites gaining popularity
By Chua Hian Hou
BUSINESS parks and other high-tech industrial sites in Singapore have become increasingly popular among eligible tenants.
According to a new report released yesterday by CB Richard Ellis (CBRE), the overall occupancy rate at business parks probably hit a new high of 90 per cent last month, up from 88 per cent in March.
To rent space at sites like Changi Business Park, prospective tenants must meet certain criteria. These include carrying out research and development work.
Rental rates at these high-tech spaces are heading north. The rates may be cheaper than ultra-high-tech business parks and prime office space, but they were expected to have risen 6.8 per cent last month to $3.15 per sq ft per month from the first quarter.
The popularity of these sites, the report said, was due to the 'limited availability and continued rental increases' of office space in the Republic, although the dizzying upward spiral in rental rates had abated in recent months.
Nevertheless, prime office spaces can cost upwards of $16 per sq ft per month - far more expensive than in business parks.
Last year, prime office rents nearly doubled on the back of tight office space and a strong demand from occupiers, including global financial institutions expanding their operations in Singapore. This was on top of the 50 per cent-plus rise that prime office rents registered in 2006.
More business park and other high-tech sites are being built in Singapore. Recently, two business park sites in one-north were awarded.
Biopolis Phase III, which will have a gross floor area of 41,505 sq m when completed late next year, is being built by Crescendas Bionix.
Solaris, formerly known as Fusionopolis Phase 2B, will be built by Soilbuild Group Holdings. When completed by June next year, Solaris will have a gross floor area of 50,271 sq m.
Industrial landlord JTC Corp has also launched a new 'concept and price' tender at Changi Business Park.
This site will have a maximum gross floor area of 47,006 sq m, of which 40 per cent is designed for hotel and retail use. The tender will close next month.
--------------------------------------------------------------------------------
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Step up scrutiny to curb illegal renovations
July 3, 2008
Step up scrutiny to curb illegal renovations
I REFER to last Friday's report, 'Illegal storey in house: Buyers lose case', about the couple who lost their case against the sellers of a 1 1/2-storey property.
The Building and Construction Authority (BCA) had informed the parties that the property had an illegal storey added to it.
This was a case that was in the making for a long time.
Innocent parties have wasted resources when they are not familiar with the building rules and regulations and believe that the property they are purchasing has duly complied with such regulations.
The illegal structure may not be a mere transgression of building rules - where a backyard shed is built right up to the rear perimeter wall.
Situations may arise where neighbours are so much nearer to you because walls and roof eaves are being built with less than the permitted distance set back from the boundaries of the property.
Or your property is now less private because your neighbour is looking down at you from his third-storey bedroom window.
If rectification work is required for these transgressions, it could be very costly.
In the last 10 years or so, there have been a lot of renovation work all over the island. I have seen many renovations or reconstruction of houses which do not seem to abide by BCA rules.
I believe this may be attributed first to inconsistent application of these rules by the regulators.
Second, too much reliance on certification by the architect/engineers who submit the building plans and endorse that the plans have conformed with all aspects of building regulations.
Third, too little groundwork by regulators to confirm that the actual construction adheres to these regulations.
As an example, in certain housing estates, properties can be redeveloped but the new structure should not exceed 2 1/2 storeys.
However, it is evident when you drive around the housing estates that several of these renovated structures are actually three-storey buildings.
Ng Wai Hong
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Step up scrutiny to curb illegal renovations
I REFER to last Friday's report, 'Illegal storey in house: Buyers lose case', about the couple who lost their case against the sellers of a 1 1/2-storey property.
The Building and Construction Authority (BCA) had informed the parties that the property had an illegal storey added to it.
This was a case that was in the making for a long time.
Innocent parties have wasted resources when they are not familiar with the building rules and regulations and believe that the property they are purchasing has duly complied with such regulations.
The illegal structure may not be a mere transgression of building rules - where a backyard shed is built right up to the rear perimeter wall.
Situations may arise where neighbours are so much nearer to you because walls and roof eaves are being built with less than the permitted distance set back from the boundaries of the property.
Or your property is now less private because your neighbour is looking down at you from his third-storey bedroom window.
If rectification work is required for these transgressions, it could be very costly.
In the last 10 years or so, there have been a lot of renovation work all over the island. I have seen many renovations or reconstruction of houses which do not seem to abide by BCA rules.
I believe this may be attributed first to inconsistent application of these rules by the regulators.
Second, too much reliance on certification by the architect/engineers who submit the building plans and endorse that the plans have conformed with all aspects of building regulations.
Third, too little groundwork by regulators to confirm that the actual construction adheres to these regulations.
As an example, in certain housing estates, properties can be redeveloped but the new structure should not exceed 2 1/2 storeys.
However, it is evident when you drive around the housing estates that several of these renovated structures are actually three-storey buildings.
Ng Wai Hong
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Singapore's real estate transparency ranking dips
Business Times - 01 Jul 2008
Singapore's real estate transparency ranking dips
JLL cites enhanced survey questions for slide from 9th to 11th position
By ARTHUR SIM
SINGAPORE and Hong Kong now rank side by side in 11th position on Jones Lang LaSalle's (JLL) Global Real Estate Transparency Index 2008, down from joint ninth position when the index was last revealed in 2006.
However, JLL said the reason is not a change in market practices but enhancement of the survey questions.
The company's head of research (South East Asia) Chua Yang Liang said: 'Singapore remains one of the most transparent markets in Asia alongside Hong Kong. Among the five key attributes assessed in the survey - performance measurement, market fundamentals, listed vehicles, legal and regulatory environment, transaction process - both countries scored very well for their legal and regulatory environment. Together with Finland, they topped the global ranking for this sub-index.'
JLL said that in keeping with historical results, the Australian and US real estate markets remain among the most transparent in the world and now are joint-ranked second. But with the addition of new variables relating to the quality and frequency of valuations, service charge transparency and financing transparency, Canada now ranks as the world's most transparent commercial real estate market.
The index, which provides a framework for comparing the level of real estate transparency in 82 markets around the world, revealed that eight countries moved up a full transparency tier since the last index in 2006.
Dubai, Romania, Ukraine and Russia showed the biggest improvements in transparency over the past two years.
A number of countries in the frontier markets are included in the index for the first time, with Belarus, Sudan, Algeria, Cambodia and Syria all scored as 'opaque'.
Other new entrants to the index, Bahrain, Bulgaria, Estonia, Latvia, Croatia, Abu Dhabi and Lithuania, scored in the 'semi-transparent' range, while Oman, Qatar, Morocco, Kuwait, Pakistan and Kazakhstan all scored in the 'low transparency' range.
The biggest improvers in Asia-Pacific were India, China and Vietnam. China (Tier-1 cities) showed the greatest improvement, moving up to the 'semi-transparent' tier to rank in 49th position.
Not all investors, however, target markets that are highly transparent.
LaSalle Investment Management global strategist Jacques Gordon said: 'Many cross-border investors focus on more mature, open and transparent real estate markets such as the UK, Canada, Netherlands and Hong Kong. However, opportunistic investors will consider the emerging, less mature, less open and semi-transparent markets, but will require higher returns to compensate for the higher risks associated with lower transparency.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Singapore's real estate transparency ranking dips
JLL cites enhanced survey questions for slide from 9th to 11th position
By ARTHUR SIM
SINGAPORE and Hong Kong now rank side by side in 11th position on Jones Lang LaSalle's (JLL) Global Real Estate Transparency Index 2008, down from joint ninth position when the index was last revealed in 2006.
However, JLL said the reason is not a change in market practices but enhancement of the survey questions.
The company's head of research (South East Asia) Chua Yang Liang said: 'Singapore remains one of the most transparent markets in Asia alongside Hong Kong. Among the five key attributes assessed in the survey - performance measurement, market fundamentals, listed vehicles, legal and regulatory environment, transaction process - both countries scored very well for their legal and regulatory environment. Together with Finland, they topped the global ranking for this sub-index.'
JLL said that in keeping with historical results, the Australian and US real estate markets remain among the most transparent in the world and now are joint-ranked second. But with the addition of new variables relating to the quality and frequency of valuations, service charge transparency and financing transparency, Canada now ranks as the world's most transparent commercial real estate market.
The index, which provides a framework for comparing the level of real estate transparency in 82 markets around the world, revealed that eight countries moved up a full transparency tier since the last index in 2006.
Dubai, Romania, Ukraine and Russia showed the biggest improvements in transparency over the past two years.
A number of countries in the frontier markets are included in the index for the first time, with Belarus, Sudan, Algeria, Cambodia and Syria all scored as 'opaque'.
Other new entrants to the index, Bahrain, Bulgaria, Estonia, Latvia, Croatia, Abu Dhabi and Lithuania, scored in the 'semi-transparent' range, while Oman, Qatar, Morocco, Kuwait, Pakistan and Kazakhstan all scored in the 'low transparency' range.
The biggest improvers in Asia-Pacific were India, China and Vietnam. China (Tier-1 cities) showed the greatest improvement, moving up to the 'semi-transparent' tier to rank in 49th position.
Not all investors, however, target markets that are highly transparent.
LaSalle Investment Management global strategist Jacques Gordon said: 'Many cross-border investors focus on more mature, open and transparent real estate markets such as the UK, Canada, Netherlands and Hong Kong. However, opportunistic investors will consider the emerging, less mature, less open and semi-transparent markets, but will require higher returns to compensate for the higher risks associated with lower transparency.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
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