25 July 2008
Gardens by the Bay construction will not be deferred
By Chan Eu Imm, Channel NewsAsia
SINGAPORE: Singapore's Gardens by the Bay project is on track for
completion by the end of 2010.
National Development Minister Mah Bow Tan said the project is
unaffected by the government's recent decision to defer S$1.7 billion
worth of public-sector building projects – a move meant to ease the
pressure on the construction industry in Singapore.
Mr Mah was speaking to the media at the official opening of the
Singapore Garden Festival on Friday at the Suntec International
Convention and Exhibition Centre.
One of the key highlights of the Singapore Garden Festival is the
much-anticipated Singapore Orchid Show, which is jointly organised by
the Orchid Society of Southeast Asia and the National Parks Board
(NParks).
The exhibition – a teaser for the World Orchid Conference in 2011 –
covers 3,000 square metres, with over 8,000 cut orchids and some
10,000 orchid plants on display.
Singapore's Gardens by the Bay project is expected to be completed by
the time the conference is held.
"The Marina Bay Gardens work has already started, so it is not
possible to defer it. It is something that we would like to complete
around 2010, 2011 because this is part of our longer term plans to
develop the Marina Bay area, so it forms an important part of the
Marina Bay development," said Mr Mah.
Future garden festivals will be held at the Gardens by the Bay. But
for now, visitors can visit this year's festival at Suntec till
August 1.
Friday, July 25, 2008
Public housing hots up while private cools
25 July 2008
Public housing hots up while private cools
SINGAPORE : Prices for public housing on the resale market have
risen, while those for private property have moderated for the second
quarter of 2008.
According to latest official figures, there has also been little
upward movement in the private property rental market.
Data for the HDB resale and rental markets based on transactions in
Q2 saw HDB's Resale Price Index (RPI) up 4.5 per cent, compared to
the 3.7 per cent increase for the previous quarter.
Reflective of the interest in public housing was the rise in resale
transactions, from about 6,360 cases in the first quarter to about
7,760 cases in the second quarter, an increase by about 22 per cent.
Meanwhile, subletting transactions in HDB flats increased by about 15
per cent to about 4,120 cases in the second quarter from about 3,580
cases in the first quarter.
In contrast, the private property market was a little more subdued,
with home prices increasing 0.2 per cent, the third straight quarter
of slower growth, signalling a definite slowing of the four-year
housing boom.
Prices for non-landed properties saw a modest 0.1 per cent rise
compared with 3.7 per cent in the previous quarter as prices for
condominium and apartments in districts 9, 10, 11, downtown district
and Sentosa fell 0.1 per cent compared to similar properties in areas
outside of the region which rose between 0.7 and 0.9 per cent.
As for landed property, prices rose 0.6 per cent compared with 3.9
per cent in the previous quarter.
Indicative of the cooling in the property market are the 43,473 new
units still unsold from a total supply of 67,569 uncompleted units
from private housing projects.
This number includes more than 12,000 which developers have held back
from launch and another 28,282 which are pending approval.
Public housing hots up while private cools
SINGAPORE : Prices for public housing on the resale market have
risen, while those for private property have moderated for the second
quarter of 2008.
According to latest official figures, there has also been little
upward movement in the private property rental market.
Data for the HDB resale and rental markets based on transactions in
Q2 saw HDB's Resale Price Index (RPI) up 4.5 per cent, compared to
the 3.7 per cent increase for the previous quarter.
Reflective of the interest in public housing was the rise in resale
transactions, from about 6,360 cases in the first quarter to about
7,760 cases in the second quarter, an increase by about 22 per cent.
Meanwhile, subletting transactions in HDB flats increased by about 15
per cent to about 4,120 cases in the second quarter from about 3,580
cases in the first quarter.
In contrast, the private property market was a little more subdued,
with home prices increasing 0.2 per cent, the third straight quarter
of slower growth, signalling a definite slowing of the four-year
housing boom.
Prices for non-landed properties saw a modest 0.1 per cent rise
compared with 3.7 per cent in the previous quarter as prices for
condominium and apartments in districts 9, 10, 11, downtown district
and Sentosa fell 0.1 per cent compared to similar properties in areas
outside of the region which rose between 0.7 and 0.9 per cent.
As for landed property, prices rose 0.6 per cent compared with 3.9
per cent in the previous quarter.
Indicative of the cooling in the property market are the 43,473 new
units still unsold from a total supply of 67,569 uncompleted units
from private housing projects.
This number includes more than 12,000 which developers have held back
from launch and another 28,282 which are pending approval.
Sentosa Gateway Tunnel to be built to ease outbound traffic to city
25 July 2008
Sentosa Gateway Tunnel to be built to ease outbound traffic to city
By Lynda Hong, Channel NewsAsia
SINGAPORE: A "Sentosa Gateway Tunnel" is set to be built so that
motorists can circumvent the busy traffic in the Harbourfront area to
get into town.
The Land Transport Authority (LTA) said the tunnel will connect
outbound traffic from Sentosa island directly to Kampong Bahru Road and
Keppel Road.
It is part of plans to improve the road infrastructure to meet future
demands of development in that area, which will also include Resorts
World, due to open in 2010.
Sentosa Gateway Tunnel to be built to ease outbound traffic to city
By Lynda Hong, Channel NewsAsia
SINGAPORE: A "Sentosa Gateway Tunnel" is set to be built so that
motorists can circumvent the busy traffic in the Harbourfront area to
get into town.
The Land Transport Authority (LTA) said the tunnel will connect
outbound traffic from Sentosa island directly to Kampong Bahru Road and
Keppel Road.
It is part of plans to improve the road infrastructure to meet future
demands of development in that area, which will also include Resorts
World, due to open in 2010.
US sub-prime lenders under Federal probe
July 25, 2008
US sub-prime lenders under Federal probe
IndyMac, New Century and Countrywide face fraud investigation
(WASHINGTON) A federal grand jury in Los Angeles has begun probing
three of the nation's largest sub-prime mortgage lenders in the
clearest sign yet that prosecutors are investigating whether fraud
and other crimes contributed to the mortgage debacle.
Grand jury subpoenas have been issued in recent weeks and months to
Countrywide Financial, New Century Financial and IndyMac Federal
Bank, seeking a wide range of information, according to sources with
direct knowledge of the subpoenas.
People familiar with the situation told the Los Angeles Times that
the subpoenas seek e-mails, phone bills and bank records, and they
follow interviews that federal investigators have conducted with
employees and others knowledgeable about lending operations of the
three Southern California institutions, which all collapsed under the
weight of bad loans.
In the case of Countrywide, the sources said, investigators also have
begun looking into media reports that the company and its former
chairman, Angelo Mozilo, lavished mortgage breaks on members of
Congress and other influential 'friends of Angelo,' including Richard
Aldrich, an associate justice of the California Court of Appeal.
The investigations are part of a coordinated Justice Department
effort that until now has focused primarily on smaller operators who
defrauded homeowners and mortgage lenders.
The subpoenas, while indicating that the effort is still at an early
stage, show that the government is starting to take aim at the
largest lenders and their executives and whether they were complicit
in the billions of dollars that have been lost in the mortgage crisis.
The sources familiar with the subpoenas spoke on the condition of
anonymity because they were not allowed to speak publicly about them.
The mortgage losses have regulators and law- enforcement personnel
gearing up in what analysts say looms as possibly the biggest
financial fraud since the S&L crisis of the 1980s.
Officials have said that they are beginning to investigate whether
securities investors were defrauded about the value of sub-prime
mortgages they purchased and other possible crimes such as insider
trading by corporate officials who sold stock knowing that their
holdings were about to deflate in value.
A spokesman for the US attorney's office in Los Angeles, Thom Mrozek,
declined to acknowledge that any of the companies were being
investigated or had been issued subpoenas.
That office, along with the FBI in Los Angeles, however, have been
ratcheting up their scrutiny of mortgage companies.
Last month, officials created a multi-agency task force to address
mortgage crimes, including representatives of such agencies as the
Internal Revenue Service, the US Postal Inspection Service, the US
Housing and Urban Development Department and the Federal Deposit
Insurance Corp.
In a recent interview, Thomas P O'Brien, the US attorney in Los
Angeles, cautioned that fraud cases involved complex facts and
circumstances and were difficult to pursue. But he also indicated
that the office would move forward aggressively in appropriate
circumstances.
'As with any white-collar case, these tend to be extremely complex
and take years to investigate,' Mr O'Brien said.
'But this is a very high priority for me in this office and the
Department of Justice.'
US sub-prime lenders under Federal probe
IndyMac, New Century and Countrywide face fraud investigation
(WASHINGTON) A federal grand jury in Los Angeles has begun probing
three of the nation's largest sub-prime mortgage lenders in the
clearest sign yet that prosecutors are investigating whether fraud
and other crimes contributed to the mortgage debacle.
Grand jury subpoenas have been issued in recent weeks and months to
Countrywide Financial, New Century Financial and IndyMac Federal
Bank, seeking a wide range of information, according to sources with
direct knowledge of the subpoenas.
People familiar with the situation told the Los Angeles Times that
the subpoenas seek e-mails, phone bills and bank records, and they
follow interviews that federal investigators have conducted with
employees and others knowledgeable about lending operations of the
three Southern California institutions, which all collapsed under the
weight of bad loans.
In the case of Countrywide, the sources said, investigators also have
begun looking into media reports that the company and its former
chairman, Angelo Mozilo, lavished mortgage breaks on members of
Congress and other influential 'friends of Angelo,' including Richard
Aldrich, an associate justice of the California Court of Appeal.
The investigations are part of a coordinated Justice Department
effort that until now has focused primarily on smaller operators who
defrauded homeowners and mortgage lenders.
The subpoenas, while indicating that the effort is still at an early
stage, show that the government is starting to take aim at the
largest lenders and their executives and whether they were complicit
in the billions of dollars that have been lost in the mortgage crisis.
The sources familiar with the subpoenas spoke on the condition of
anonymity because they were not allowed to speak publicly about them.
The mortgage losses have regulators and law- enforcement personnel
gearing up in what analysts say looms as possibly the biggest
financial fraud since the S&L crisis of the 1980s.
Officials have said that they are beginning to investigate whether
securities investors were defrauded about the value of sub-prime
mortgages they purchased and other possible crimes such as insider
trading by corporate officials who sold stock knowing that their
holdings were about to deflate in value.
A spokesman for the US attorney's office in Los Angeles, Thom Mrozek,
declined to acknowledge that any of the companies were being
investigated or had been issued subpoenas.
That office, along with the FBI in Los Angeles, however, have been
ratcheting up their scrutiny of mortgage companies.
Last month, officials created a multi-agency task force to address
mortgage crimes, including representatives of such agencies as the
Internal Revenue Service, the US Postal Inspection Service, the US
Housing and Urban Development Department and the Federal Deposit
Insurance Corp.
In a recent interview, Thomas P O'Brien, the US attorney in Los
Angeles, cautioned that fraud cases involved complex facts and
circumstances and were difficult to pursue. But he also indicated
that the office would move forward aggressively in appropriate
circumstances.
'As with any white-collar case, these tend to be extremely complex
and take years to investigate,' Mr O'Brien said.
'But this is a very high priority for me in this office and the
Department of Justice.'
US housing rescue Bill not a cure-all for market ills
July 25, 2008
US housing rescue Bill not a cure-all for market ills
It will prop up lenders and curb downturn but won't help many first-
time homebuyers
NEW YORK - A SWEEPING housing rescue plan passed by the US House of
Representatives could help ease the downward spiral in the property
market but it is no magic bullet, analysts said.
The plan, which offers aid to 400,000 homeowners facing foreclosure
and seeks to support struggling mortgage finance giants Fannie Mae
and Freddie Mac, cleared a major hurdle before the House vote on
Wednesday when the White House dropped its threat to veto the plan,
despite some reservations.
The US Senate is expected to clear the Bill this week.
Still, economists caution against getting too optimistic over the
legislation. The housing market has been in a steep slide for nearly
three years, during which time a glut of homes for sale has swelled,
ruling out any hope for quick fixes.
While the Bill was widely praised, doubts remained about how much
real-world impact it will have for consumers.
'It may staunch some of the downturn, but it's going to have a very
modest positive impact,' said Mr Mark Zandi, chief economist at
Moody's Economy.com.
Highlights of the Bill include: US$300 billion (S$408 billion) to
provide more affordable mortgages to troubled homeowners, nearly US$4
billion in grants to help communities fix up foreclosed properties
and a US$7,500 tax credit for first-time homebuyers.
But many first-time buyers will not get help.
The tax break applies only to homeowners who purchase properties
between April 9 this year and July 1 next year.
The full amount of the credit also is only available to individuals
with incomes under US$75,000 or couples earning less than US$150,000.
Moreover, it will have to be paid back, interest-free, over 15 years.
Cash-strapped homeowners, who are spending more than 31 per cent of
their income on their house payment, may qualify for a new, more
affordable loan under the Bill.
Lenders, however, would have to agree to take a loss on the existing
loans, and would walk away with at least some payoff and avoid the
costly foreclosure process. Lender participation is also voluntary.
US Treasury Secretary Henry Paulson said on Wednesday that agreement
on the sweeping housing rescue Bill would send a strong message to
investors around the world and will be key to helping the United
States turn the corner on the housing crisis.
He said that he had urged President George W. Bush to drop his veto
threat because of the important elements in the Bill that would
provide support to Fannie Mae and Freddie Mac.
The pair either hold or guarantee mortgages worth US$5.2 trillion
which account for half of the total US mortgage market.
The Bill gives beleaguered Fannie Mae and Freddie Mac access to an
expanded credit line from the US Treasury. It also authorises the
Treasury to purchase equity in the two companies if necessary.
'Anything that stabilises the financial system at this juncture is
probably a contributor to better outcomes on growth,' said Mr Neal
Soss, chief economist at Credit Suisse.
'What the government does is help to draw a line in the sand and say
we're not going to allow a major collapse here akin to what we saw in
the Great Depression,' said Mr Brian Levitt, economist at
OppenheimerFunds.
US housing rescue Bill not a cure-all for market ills
It will prop up lenders and curb downturn but won't help many first-
time homebuyers
NEW YORK - A SWEEPING housing rescue plan passed by the US House of
Representatives could help ease the downward spiral in the property
market but it is no magic bullet, analysts said.
The plan, which offers aid to 400,000 homeowners facing foreclosure
and seeks to support struggling mortgage finance giants Fannie Mae
and Freddie Mac, cleared a major hurdle before the House vote on
Wednesday when the White House dropped its threat to veto the plan,
despite some reservations.
The US Senate is expected to clear the Bill this week.
Still, economists caution against getting too optimistic over the
legislation. The housing market has been in a steep slide for nearly
three years, during which time a glut of homes for sale has swelled,
ruling out any hope for quick fixes.
While the Bill was widely praised, doubts remained about how much
real-world impact it will have for consumers.
'It may staunch some of the downturn, but it's going to have a very
modest positive impact,' said Mr Mark Zandi, chief economist at
Moody's Economy.com.
Highlights of the Bill include: US$300 billion (S$408 billion) to
provide more affordable mortgages to troubled homeowners, nearly US$4
billion in grants to help communities fix up foreclosed properties
and a US$7,500 tax credit for first-time homebuyers.
But many first-time buyers will not get help.
The tax break applies only to homeowners who purchase properties
between April 9 this year and July 1 next year.
The full amount of the credit also is only available to individuals
with incomes under US$75,000 or couples earning less than US$150,000.
Moreover, it will have to be paid back, interest-free, over 15 years.
Cash-strapped homeowners, who are spending more than 31 per cent of
their income on their house payment, may qualify for a new, more
affordable loan under the Bill.
Lenders, however, would have to agree to take a loss on the existing
loans, and would walk away with at least some payoff and avoid the
costly foreclosure process. Lender participation is also voluntary.
US Treasury Secretary Henry Paulson said on Wednesday that agreement
on the sweeping housing rescue Bill would send a strong message to
investors around the world and will be key to helping the United
States turn the corner on the housing crisis.
He said that he had urged President George W. Bush to drop his veto
threat because of the important elements in the Bill that would
provide support to Fannie Mae and Freddie Mac.
The pair either hold or guarantee mortgages worth US$5.2 trillion
which account for half of the total US mortgage market.
The Bill gives beleaguered Fannie Mae and Freddie Mac access to an
expanded credit line from the US Treasury. It also authorises the
Treasury to purchase equity in the two companies if necessary.
'Anything that stabilises the financial system at this juncture is
probably a contributor to better outcomes on growth,' said Mr Neal
Soss, chief economist at Credit Suisse.
'What the government does is help to draw a line in the sand and say
we're not going to allow a major collapse here akin to what we saw in
the Great Depression,' said Mr Brian Levitt, economist at
OppenheimerFunds.
Expats living in S'pore just loving it: poll
July 25, 2008
Expats living in S'pore just loving it: poll
By ARTHUR SIM
SINGAPORE has been ranked the best place in the world to live in,
based on a poll of expatriates.
The Expat Explorer survey for HSBC Bank International revealed that,
as well as being top overall, expats rate Singapore best for quality
of accommodation and second in terms of luxury living.
The survey was conducted between February and April, with data
analysis conducted by Freshminds. It looked at a range of topics
relevant to expats' lives, including living standards, an expat's
ability to earn and save, a country's popularity and the level of
luxury experienced.
On luxury, countries were rated on a number of categories, including
access to private healthcare, access to more than one property, and
ability to own a pool and to employ staff (such as cleaners).
Across the 11 categories of perceived luxuries, on average, expats
reported an increase in eight of these factors, with employing staff
ranked as the highest increase.
The United Arab Emirates was the most luxurious destination, with
expats enjoying increases in 10 of the 11 categories, followed by
Singapore and India.
The UK was ranked the least luxurious with decreases recorded in nine
of the 11 luxuries.
The survey polled 2,155 expats in more than 49 countries. However,
only countries with at least 30 respondents were analysed in the
league tables.
Accommodation is a key concern of expats and almost three-quarters of
expats living in Singapore said that the quality of their
accommodation had improved since moving away from home, the highest
amount recorded in the study.
This was followed by those living in the United States and Belgium.
The UK was identified as the most expensive expat location for
accommodation, with over three-quarters of expats living there
revealing that their living costs had increased.
In terms of remuneration, expats in Hong Kong (ranked fifth overall)
have the world's highest salaries, with almost half earning more than
£pounds;100,000 (S$271,000) per annum.
It was found that Europe is a popular destination overall in terms of
the length of stay. More than three-quarters of expats now living in
the Netherlands have been there for three or more years, followed by
Germany and Spain. Hong Kong and Singapore were ranked fifth and
sixth respectively.
HSBC head of consumer banking (Singapore) Wendy Lim estimates that
there are over 300,000 expatriates residing in Singapore. She
said: 'Singapore's safe, tax-efficient environment makes it an ideal
location for expatriates to grow and protect their savings and
investments.'
Singapore is home to one of HSBC's five offshore banking centres
around the world, the others being Hong Kong, Dubai, New Jersey and
Miami.
Expats living in S'pore just loving it: poll
By ARTHUR SIM
SINGAPORE has been ranked the best place in the world to live in,
based on a poll of expatriates.
The Expat Explorer survey for HSBC Bank International revealed that,
as well as being top overall, expats rate Singapore best for quality
of accommodation and second in terms of luxury living.
The survey was conducted between February and April, with data
analysis conducted by Freshminds. It looked at a range of topics
relevant to expats' lives, including living standards, an expat's
ability to earn and save, a country's popularity and the level of
luxury experienced.
On luxury, countries were rated on a number of categories, including
access to private healthcare, access to more than one property, and
ability to own a pool and to employ staff (such as cleaners).
Across the 11 categories of perceived luxuries, on average, expats
reported an increase in eight of these factors, with employing staff
ranked as the highest increase.
The United Arab Emirates was the most luxurious destination, with
expats enjoying increases in 10 of the 11 categories, followed by
Singapore and India.
The UK was ranked the least luxurious with decreases recorded in nine
of the 11 luxuries.
The survey polled 2,155 expats in more than 49 countries. However,
only countries with at least 30 respondents were analysed in the
league tables.
Accommodation is a key concern of expats and almost three-quarters of
expats living in Singapore said that the quality of their
accommodation had improved since moving away from home, the highest
amount recorded in the study.
This was followed by those living in the United States and Belgium.
The UK was identified as the most expensive expat location for
accommodation, with over three-quarters of expats living there
revealing that their living costs had increased.
In terms of remuneration, expats in Hong Kong (ranked fifth overall)
have the world's highest salaries, with almost half earning more than
£pounds;100,000 (S$271,000) per annum.
It was found that Europe is a popular destination overall in terms of
the length of stay. More than three-quarters of expats now living in
the Netherlands have been there for three or more years, followed by
Germany and Spain. Hong Kong and Singapore were ranked fifth and
sixth respectively.
HSBC head of consumer banking (Singapore) Wendy Lim estimates that
there are over 300,000 expatriates residing in Singapore. She
said: 'Singapore's safe, tax-efficient environment makes it an ideal
location for expatriates to grow and protect their savings and
investments.'
Singapore is home to one of HSBC's five offshore banking centres
around the world, the others being Hong Kong, Dubai, New Jersey and
Miami.
Expats rank S'pore as world's best place to live
July 25, 2008
Expats rank S'pore as world's best place to live
Poll of foreigners in 49 locations puts the Republic ahead of US, HK
By Jessica Cheam
SINGAPORE has emerged as the best place to live in the world in a
survey of more than 2,000 expatriates by HSBC Bank.
The Republic also ranked first for quality of accommodation and
second for luxury living.
Its closest rival, Hong Kong, was ranked fifth overall, though it
took top spot in terms of an expat's ability to earn and save.
The United Arab Emirates (UAE) and the United States came in as joint
second-best overall destinations, with Belgium next in the rankings.
HSBC's Expat Explorer survey - a first for the bank - interviewed
2,155 expats across 49 countries and territories to rank places based
on living standards, the ability to earn and save, a country's
popularity, and the level of luxury experienced.
HSBC's survey, released yesterday, comes after human resources
consultancy Mercer ranked the Republic the fifth most expensive Asian
city for expats - up a notch from a previous survey.
ECA International, also a human resources consultancy, ranked
Singapore as the best place for Asian expatriates to live worldwide
earlier this year.
In a separate survey, it found that Singapore has become a more
expensive place for expats to live, but that it is still cheaper than
Hong Kong.
The Republic jumped 17 places to land at the 114th spot in a global
survey of the costliest cities for expatriates, on the back of higher
inflation and a stronger Singapore dollar in the past year.
But despite rising living costs, especially in housing, Singapore
remains competitive with its Asian neighbours such as Tokyo, Seoul
and Hong Kong, and other global financial centres such as London,
said Mercer.
HSBC's head of consumer banking in Singapore, Ms Wendy Lim, said
there are an estimated 300,000 expats residing here.
The safe environment and relatively low taxes make it 'an ideal
location for expats to grow and protect their savings and
investments', she said.
Other countries such as Britain and France scored poorly as expat
destinations in the survey, especially on accommodation and luxury.
The UAE was the most luxurious destination, followed by Singapore and
India.
Project manager Pham Nguyen Hung, 34, a French-Vietnamese expat
living in Singapore, said he was not surprised at the survey results.
Singapore, US cities such as San Francisco and New York, and Hong
Kong are among his top picks.
'It's hard to compare cities directly, because each of them offers
different lifestyles. But I agree Singapore has quite a high quality
of life, and its accommodation standards are among the best,' he
said.
Expats rank S'pore as world's best place to live
Poll of foreigners in 49 locations puts the Republic ahead of US, HK
By Jessica Cheam
SINGAPORE has emerged as the best place to live in the world in a
survey of more than 2,000 expatriates by HSBC Bank.
The Republic also ranked first for quality of accommodation and
second for luxury living.
Its closest rival, Hong Kong, was ranked fifth overall, though it
took top spot in terms of an expat's ability to earn and save.
The United Arab Emirates (UAE) and the United States came in as joint
second-best overall destinations, with Belgium next in the rankings.
HSBC's Expat Explorer survey - a first for the bank - interviewed
2,155 expats across 49 countries and territories to rank places based
on living standards, the ability to earn and save, a country's
popularity, and the level of luxury experienced.
HSBC's survey, released yesterday, comes after human resources
consultancy Mercer ranked the Republic the fifth most expensive Asian
city for expats - up a notch from a previous survey.
ECA International, also a human resources consultancy, ranked
Singapore as the best place for Asian expatriates to live worldwide
earlier this year.
In a separate survey, it found that Singapore has become a more
expensive place for expats to live, but that it is still cheaper than
Hong Kong.
The Republic jumped 17 places to land at the 114th spot in a global
survey of the costliest cities for expatriates, on the back of higher
inflation and a stronger Singapore dollar in the past year.
But despite rising living costs, especially in housing, Singapore
remains competitive with its Asian neighbours such as Tokyo, Seoul
and Hong Kong, and other global financial centres such as London,
said Mercer.
HSBC's head of consumer banking in Singapore, Ms Wendy Lim, said
there are an estimated 300,000 expats residing here.
The safe environment and relatively low taxes make it 'an ideal
location for expats to grow and protect their savings and
investments', she said.
Other countries such as Britain and France scored poorly as expat
destinations in the survey, especially on accommodation and luxury.
The UAE was the most luxurious destination, followed by Singapore and
India.
Project manager Pham Nguyen Hung, 34, a French-Vietnamese expat
living in Singapore, said he was not surprised at the survey results.
Singapore, US cities such as San Francisco and New York, and Hong
Kong are among his top picks.
'It's hard to compare cities directly, because each of them offers
different lifestyles. But I agree Singapore has quite a high quality
of life, and its accommodation standards are among the best,' he
said.
Thursday, July 24, 2008
High housing costs and office rents prompt highest levelof dissatisfaction since 2006
More pain ahead?
High housing costs and office rents prompt highest levelof dissatisfaction since 2006
Wednesday • July 23, 2008
CHRISTIE LOH and CHEOW XIN YI
christie@mediacorp.com.sg
INCREASINGLY frustrated by cost pressures and a shortage of places for their children at international schools, American companies foresee yet more pain ahead, including a recession back home. This, they say, will hurt their Asia operations.
The American Chamber of Commerce in Singapore conducted its sixth annual survey of its members last month and found that 76 per cent of 130 senior executives polled online thought the United States would suffer a recession this year.
Within this group, most believed the downturn would last 12 to 18 months or what is known as a U-shaped recession — the scenario sandwiched between a short-term “V-shaped” bounce and a long-term “L-shaped” slump.
“The impact will be more related to the perceptions of our parent company in the US as they struggle to deal with their economic realities, and much less to do with the realities of the Asian economic scene,” said one unnamed executive surveyed from the Asian subsidiary of a US multi-national firm.
Others, such as AmCham member Lance Hardesty, think it is perhaps premature to pinpoint a recession on the horizon.
“I think the economy right now is just holding its breath to see what happens with the US Presidential elections,” Mr Hardesty, who runs engineering consultancy RW Beck here, told Today.
There was, however, wide consensus on the impact of any US recession on business in Asia: 80 per cent of the respondents foresaw “negative” repercussions. This makes American executives in Singapore, whose jobs are mostly regional and not confined to a single country, more bearish compared to their peers in Vietnam, Thailand, Malaysia and the Philippines.
Already, US businesses here are feeling the heat from inflation. Some 74 per cent of the respondents were disgruntled with housing costs and office rents in Singapore. That is the highest level of dissatisfaction since 2006, when AmCham began surveying these concerns.
To fight inflation, the Monetary Authority of Singapore (MAS) has allowed the Singapore dollar to appreciate to lower effective import costs.
But the central bank “needs to do more”, opined Mr Lee Jong-Wha, head of the Asian Development Bank’s (ADB) office of regional economic integration, during a conference here yesterday.
He said a “tighter monetary policy” could be balanced with fiscal policy, such as by increasing public expenditure, to ensure economic growth.
:The ADB predicts inflation in Singapore to hit 5.8 per cent this year, after last year’s 2.1 per cent.
:High prices have also found their way into education, with expatriates stumping out money to secure places in prestigious schools. Half of those polled by AmCham felt that a lack of adequate space at international schools could affect their company’s decision to hire foreign employees.
:The chamber formed a committee in April to look into solving the problem.
:As in previous surveys, the majority were satisfied with the infrastructure and business climate here. Despite recession fears and cost frustrations, 57 per cent of those polled foresaw their Singapore workforce growing, while 71 per cent planned to expand in South-east Asia.
Copyright MediaCorp Press Ltd. All rights reserved.
High housing costs and office rents prompt highest levelof dissatisfaction since 2006
Wednesday • July 23, 2008
CHRISTIE LOH and CHEOW XIN YI
christie@mediacorp.com.sg
INCREASINGLY frustrated by cost pressures and a shortage of places for their children at international schools, American companies foresee yet more pain ahead, including a recession back home. This, they say, will hurt their Asia operations.
The American Chamber of Commerce in Singapore conducted its sixth annual survey of its members last month and found that 76 per cent of 130 senior executives polled online thought the United States would suffer a recession this year.
Within this group, most believed the downturn would last 12 to 18 months or what is known as a U-shaped recession — the scenario sandwiched between a short-term “V-shaped” bounce and a long-term “L-shaped” slump.
“The impact will be more related to the perceptions of our parent company in the US as they struggle to deal with their economic realities, and much less to do with the realities of the Asian economic scene,” said one unnamed executive surveyed from the Asian subsidiary of a US multi-national firm.
Others, such as AmCham member Lance Hardesty, think it is perhaps premature to pinpoint a recession on the horizon.
“I think the economy right now is just holding its breath to see what happens with the US Presidential elections,” Mr Hardesty, who runs engineering consultancy RW Beck here, told Today.
There was, however, wide consensus on the impact of any US recession on business in Asia: 80 per cent of the respondents foresaw “negative” repercussions. This makes American executives in Singapore, whose jobs are mostly regional and not confined to a single country, more bearish compared to their peers in Vietnam, Thailand, Malaysia and the Philippines.
Already, US businesses here are feeling the heat from inflation. Some 74 per cent of the respondents were disgruntled with housing costs and office rents in Singapore. That is the highest level of dissatisfaction since 2006, when AmCham began surveying these concerns.
To fight inflation, the Monetary Authority of Singapore (MAS) has allowed the Singapore dollar to appreciate to lower effective import costs.
But the central bank “needs to do more”, opined Mr Lee Jong-Wha, head of the Asian Development Bank’s (ADB) office of regional economic integration, during a conference here yesterday.
He said a “tighter monetary policy” could be balanced with fiscal policy, such as by increasing public expenditure, to ensure economic growth.
:The ADB predicts inflation in Singapore to hit 5.8 per cent this year, after last year’s 2.1 per cent.
:High prices have also found their way into education, with expatriates stumping out money to secure places in prestigious schools. Half of those polled by AmCham felt that a lack of adequate space at international schools could affect their company’s decision to hire foreign employees.
:The chamber formed a committee in April to look into solving the problem.
:As in previous surveys, the majority were satisfied with the infrastructure and business climate here. Despite recession fears and cost frustrations, 57 per cent of those polled foresaw their Singapore workforce growing, while 71 per cent planned to expand in South-east Asia.
Copyright MediaCorp Press Ltd. All rights reserved.
Two Singapore office blocks sold for $40m
Business Times - 24 Jul 2008
Two Singapore office blocks sold for $40m
Both buildings with 999-year leasehold transacted around $1,300 psf of NLA
(SINGAPORE) Amid the quiet investment sales market, two small office blocks have been sold - in High Street and Middle Road - for a total of about $40 million or $1,300-plus per sq ft of existing net lettable area (NLA). Both buildings have 999-year leaseshold tenure.
A Hong Kong investor is believed to have bought Wisma Sugnomal at 75 High Street for $23.5 million or $1,349 psf based on existing NLA of 17,414 sq ft.
The property is believed to have been sold by mortgagee bank DBS. The mortgagor is understood to be an entity linked to the Aswani family.
The seven-storey office block, which has shops at street level, is about 12 years old.
The existing gross floor area of about 25,500 sq ft is slightly higher than the maximum allowed for the site under the Master Plan.
Fragrance group has bought 33 Middle Road, which is next to a Hotel 81, for $16.8 million or $1,324 psf of existing NLA in the five-storey building.
Market watchers expect Fragrance to convert the property into a budget hotel when existing leases to Tyndale Education Group and another tenant run out in the next few months and give the neighbouring Hotel 81 a run for its money.
Based on building's existing gross floor area of almost 17,000 sq ft, the property could house about 50 budget hotel rooms, industry observers suggested. Colliers International is believed to have brokered both deals.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Two Singapore office blocks sold for $40m
Both buildings with 999-year leasehold transacted around $1,300 psf of NLA
(SINGAPORE) Amid the quiet investment sales market, two small office blocks have been sold - in High Street and Middle Road - for a total of about $40 million or $1,300-plus per sq ft of existing net lettable area (NLA). Both buildings have 999-year leaseshold tenure.
A Hong Kong investor is believed to have bought Wisma Sugnomal at 75 High Street for $23.5 million or $1,349 psf based on existing NLA of 17,414 sq ft.
The property is believed to have been sold by mortgagee bank DBS. The mortgagor is understood to be an entity linked to the Aswani family.
The seven-storey office block, which has shops at street level, is about 12 years old.
The existing gross floor area of about 25,500 sq ft is slightly higher than the maximum allowed for the site under the Master Plan.
Fragrance group has bought 33 Middle Road, which is next to a Hotel 81, for $16.8 million or $1,324 psf of existing NLA in the five-storey building.
Market watchers expect Fragrance to convert the property into a budget hotel when existing leases to Tyndale Education Group and another tenant run out in the next few months and give the neighbouring Hotel 81 a run for its money.
Based on building's existing gross floor area of almost 17,000 sq ft, the property could house about 50 budget hotel rooms, industry observers suggested. Colliers International is believed to have brokered both deals.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Newton Suites shortlisted for International Highrise Award
Business Times - 24 Jul 2008
Newton Suites shortlisted for International Highrise Award
By ARTHUR SIM
UOL's Newton Suites has been selected as one of the five contenders for the International Highrise Award (IHA).
Having made the shortlist, Newton Suites, which is designed by award-winning Singapore architectural firm, WOHA, has been elevated to the same league of buildings designed by Foster and Partners (Hearst Tower, New York), Renzo Piano Building Workshop (New York Times Building) and OMA (Television Cultural Centre, Beijing).
An international jury of architects, engineers, real-estate specialists and architecture critics in Frankfurt/Main were responsible for the selection of the five buildings.
On Newton Suites, the Jury citation reads: 'In this residential tower, the feeling of living in the tropics both indoors and outdoors is transferred to a vertical dimension. It represents a development for life in the vertical in densely developed metropolises and can be seen as a pioneering model for other tropical cities.'
UOL Group COO Liam Wee Sin said that being on the shortlist with the likes of Hearst Tower and New York Times Building, 'is a step closer towards building an exciting living environment for Singapore, and having a development good enough to be selected among entries from around the world'.
'For UOL, the recognition will inspire us to continue to push the frontier of good design and sustainable city living in Singapore,' he added.
Newton Suites is a 36-storey apartment building, clad in metal mesh sunshading. It features cantilevered skygardens and a 30-storey wall of creepers.
The green areas of the building exceed the original site area, demonstrating how cities in the future can become much greener without loss of density or quality of living.
WOHA director Wong Mun Summ added: 'The integration of the environmental features such as sunshading and hanging gardens into the design shows how tropical highrise can be different from temperate climate models.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Newton Suites shortlisted for International Highrise Award
By ARTHUR SIM
UOL's Newton Suites has been selected as one of the five contenders for the International Highrise Award (IHA).
Having made the shortlist, Newton Suites, which is designed by award-winning Singapore architectural firm, WOHA, has been elevated to the same league of buildings designed by Foster and Partners (Hearst Tower, New York), Renzo Piano Building Workshop (New York Times Building) and OMA (Television Cultural Centre, Beijing).
An international jury of architects, engineers, real-estate specialists and architecture critics in Frankfurt/Main were responsible for the selection of the five buildings.
On Newton Suites, the Jury citation reads: 'In this residential tower, the feeling of living in the tropics both indoors and outdoors is transferred to a vertical dimension. It represents a development for life in the vertical in densely developed metropolises and can be seen as a pioneering model for other tropical cities.'
UOL Group COO Liam Wee Sin said that being on the shortlist with the likes of Hearst Tower and New York Times Building, 'is a step closer towards building an exciting living environment for Singapore, and having a development good enough to be selected among entries from around the world'.
'For UOL, the recognition will inspire us to continue to push the frontier of good design and sustainable city living in Singapore,' he added.
Newton Suites is a 36-storey apartment building, clad in metal mesh sunshading. It features cantilevered skygardens and a 30-storey wall of creepers.
The green areas of the building exceed the original site area, demonstrating how cities in the future can become much greener without loss of density or quality of living.
WOHA director Wong Mun Summ added: 'The integration of the environmental features such as sunshading and hanging gardens into the design shows how tropical highrise can be different from temperate climate models.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
En bloc site relaunched with 40% lower price tag
Business Times - 24 Jul 2008
En bloc site relaunched with 40% lower price tag
Elsewhere, Straits Trading asking $162m for Gallop Gables apartments
By UMA SHANKARI
A DISTRICT 10 collective sale site at Robin Drive, off Bukit Timah Road, has been relaunched for sale - with a new asking price as much as 40 per cent lower in view of the current market sentiment.
The two properties on the site are now being sold for $964-$996 per square foot per plot ratio (psf ppr), a downgrade from the initial asking price of $1,500- $1,600 psf ppr when the site was first launched in December 2007.
The property was not the only one to be put on the market yesterday. The Straits Trading Company has put up for sale two blocks of apartments at Gallop Gables with a price tag of about $162 million, or $1,500 psf.
The Robin Drive site now consists of two properties - Robin Court and No 1 Robin Drive. Robin Court is an apartment block with 15 units while No 1 Robin Drive is a detached house now occupied by a preschool.
The indicative price of the combined plots is now $58-$60 million. If the developer maximises the potential of building up to 10 per cent of gross floor area (GFA) for balconies, the land rate works out to be about $964-$996 psf ppr, said Credo Real Estate, which is marketing the sites.
The majority owners of Robin Court had agreed to the collective sale before amendments to the en bloc laws took effect last October. But now, they have begun signing the collective sale agreement to lower the reserve price in view of the current cautious sentiment in the property market, Credo said.
No development charge is payable for redevelopment of the site at a plot ratio of up to 1.4, with a further 5.5 per cent in GFA for balconies, said Yong Choon Fah, Credo's executive director.
The new development on the site could accommodate a luxurious residential project with a GFA of about 62,398 sq ft and can be configured into 30 apartments with an average size of 2,000 sq ft each, Credo said.
The developer should be able to break even at about $1,470-$1,500 psf, the firm added.
The expressions of interest (EOI) exercise for the two properties will close at 2.30pm on August 14.
Elsewhere, Straits Trading is selling two blocks consisting of 38 large apartments in Gallop Gables. Situated off Farrer Road, Gallop Gables, which was completed in 1997, has seven low-rise blocks with 140 apartments in all.
Straits Trading's apartments have been retained for investment since completion. The 38 apartments have a total gross floor area of about 108,170 sq ft.
The apartments are tenanted and 'present an opportunity to purchase an income-producing investment with capital growth potential', said Knight Frank, the property firm marketing the two blocks.
The EOI for the apartments will close on September 9 at 3pm.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
En bloc site relaunched with 40% lower price tag
Elsewhere, Straits Trading asking $162m for Gallop Gables apartments
By UMA SHANKARI
A DISTRICT 10 collective sale site at Robin Drive, off Bukit Timah Road, has been relaunched for sale - with a new asking price as much as 40 per cent lower in view of the current market sentiment.
The two properties on the site are now being sold for $964-$996 per square foot per plot ratio (psf ppr), a downgrade from the initial asking price of $1,500- $1,600 psf ppr when the site was first launched in December 2007.
The property was not the only one to be put on the market yesterday. The Straits Trading Company has put up for sale two blocks of apartments at Gallop Gables with a price tag of about $162 million, or $1,500 psf.
The Robin Drive site now consists of two properties - Robin Court and No 1 Robin Drive. Robin Court is an apartment block with 15 units while No 1 Robin Drive is a detached house now occupied by a preschool.
The indicative price of the combined plots is now $58-$60 million. If the developer maximises the potential of building up to 10 per cent of gross floor area (GFA) for balconies, the land rate works out to be about $964-$996 psf ppr, said Credo Real Estate, which is marketing the sites.
The majority owners of Robin Court had agreed to the collective sale before amendments to the en bloc laws took effect last October. But now, they have begun signing the collective sale agreement to lower the reserve price in view of the current cautious sentiment in the property market, Credo said.
No development charge is payable for redevelopment of the site at a plot ratio of up to 1.4, with a further 5.5 per cent in GFA for balconies, said Yong Choon Fah, Credo's executive director.
The new development on the site could accommodate a luxurious residential project with a GFA of about 62,398 sq ft and can be configured into 30 apartments with an average size of 2,000 sq ft each, Credo said.
The developer should be able to break even at about $1,470-$1,500 psf, the firm added.
The expressions of interest (EOI) exercise for the two properties will close at 2.30pm on August 14.
Elsewhere, Straits Trading is selling two blocks consisting of 38 large apartments in Gallop Gables. Situated off Farrer Road, Gallop Gables, which was completed in 1997, has seven low-rise blocks with 140 apartments in all.
Straits Trading's apartments have been retained for investment since completion. The 38 apartments have a total gross floor area of about 108,170 sq ft.
The apartments are tenanted and 'present an opportunity to purchase an income-producing investment with capital growth potential', said Knight Frank, the property firm marketing the two blocks.
The EOI for the apartments will close on September 9 at 3pm.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
S'pore is 13th most expensive city
Business Times - 24 Jul 2008
S'pore is 13th most expensive city
It is also the 5th costliest in Asia for expats: Mercer survey
By ARTHUR SIM
SINGAPORE is the world's 13th most expensive city for expatriates, and the fifth most expensive in Asia.
According to Mercer's Worldwide Cost of Living Survey 2008, Singapore ranks above Sydney (15th), New York (22nd) and Shanghai (24th).
Mercer's survey, which covers 143 cities on six continents, measures the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
For instance, a fast-food hamburger meal costs US$4.50 in Singapore, US$3.18 in Hong Kong and US$5.97 in Tokyo.
Mercer's managing director (Asean) Su-Yen Wong said: 'Singapore's rise in the rankings is partly due to the appreciation of the Singapore dollar against the US dollar.' At the same time, Singapore's strength as a regional hub and its 'high quality of living' have attracted talent from overseas. 'Consequently, this has increased demand for items such as housing, food and transport.'
Rents have increased significantly here. According to Mercer, a 'luxury' two-bedroom unfurnished apartment now costs US$3,539.77 a month, an increase of about 20 per cent from US$2,946.09 in 2007.
But 'luxury' rent here is lower than in Hong Kong at US$6,411.89 a month and Tokyo at US$5,128.84.
On the upside, Singapore's annual ranking has not increased as rapidly as before. Its 13th place this year is only a notch up from its 14th last year. In 2006 it ranked 17th - way up from 2005 when it was 34th.
In the latest survey, Moscow has been ranked the world's most expensive city for expatriates - for a third straight year. London dropped one place to third.
Yvonne Traber, a principal and research manager at Mercer, said: 'Although the traditionally expensive cities of Western Europe and Asia still feature in the Top 20, cities in Eastern Europe, Brazil and India are creeping up the list. Conversely, some locations such as Stockholm and New York now appear less costly by comparison.'
With New York as the base city at 100 points, Moscow scored 142.4 and is close to three times costlier than Asunción in Paraguay, the least expensive city with a score of 52.5.
Mercer noted that contrary to a trend last year, the gap between the world's most and least expensive cities now seems to be widening.
In its report, it says: 'Our research confirms the global trend in price increases for certain food items and petrol, though the rise is not consistent in all locations. This is partly balanced by decreasing prices for certain commodities, such as electronic and electrical goods. We attribute this to cheaper imports from developing countries, especially China, and to advances in technology.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
S'pore is 13th most expensive city
It is also the 5th costliest in Asia for expats: Mercer survey
By ARTHUR SIM
SINGAPORE is the world's 13th most expensive city for expatriates, and the fifth most expensive in Asia.
According to Mercer's Worldwide Cost of Living Survey 2008, Singapore ranks above Sydney (15th), New York (22nd) and Shanghai (24th).
Mercer's survey, which covers 143 cities on six continents, measures the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
For instance, a fast-food hamburger meal costs US$4.50 in Singapore, US$3.18 in Hong Kong and US$5.97 in Tokyo.
Mercer's managing director (Asean) Su-Yen Wong said: 'Singapore's rise in the rankings is partly due to the appreciation of the Singapore dollar against the US dollar.' At the same time, Singapore's strength as a regional hub and its 'high quality of living' have attracted talent from overseas. 'Consequently, this has increased demand for items such as housing, food and transport.'
Rents have increased significantly here. According to Mercer, a 'luxury' two-bedroom unfurnished apartment now costs US$3,539.77 a month, an increase of about 20 per cent from US$2,946.09 in 2007.
But 'luxury' rent here is lower than in Hong Kong at US$6,411.89 a month and Tokyo at US$5,128.84.
On the upside, Singapore's annual ranking has not increased as rapidly as before. Its 13th place this year is only a notch up from its 14th last year. In 2006 it ranked 17th - way up from 2005 when it was 34th.
In the latest survey, Moscow has been ranked the world's most expensive city for expatriates - for a third straight year. London dropped one place to third.
Yvonne Traber, a principal and research manager at Mercer, said: 'Although the traditionally expensive cities of Western Europe and Asia still feature in the Top 20, cities in Eastern Europe, Brazil and India are creeping up the list. Conversely, some locations such as Stockholm and New York now appear less costly by comparison.'
With New York as the base city at 100 points, Moscow scored 142.4 and is close to three times costlier than Asunción in Paraguay, the least expensive city with a score of 52.5.
Mercer noted that contrary to a trend last year, the gap between the world's most and least expensive cities now seems to be widening.
In its report, it says: 'Our research confirms the global trend in price increases for certain food items and petrol, though the rise is not consistent in all locations. This is partly balanced by decreasing prices for certain commodities, such as electronic and electrical goods. We attribute this to cheaper imports from developing countries, especially China, and to advances in technology.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CCT open to sale of Market Street Car Park
Business Times - 24 Jul 2008
CCT open to sale of Market Street Car Park
Reit reports 23% rise in Q2 distributable income to $36m
By EMILYN YAP
CAPITACOMMERCIAL Trust (CCT) says it is 'open to all options' when it comes to plans for Market Street Car Park (MSCP), and these include selling the site.
The update was given at CCT's results briefing yesterday. Supported by strong rental reversions, the trust reported distributable income of $36.06 million for the second quarter ended June 30, 2008, up 23.2 per cent from the same period last year. Q2's distribution per unit (DPU) of 2.6 cents is 22.6 per cent higher than in Q2 2007.
CCT has obtained outline planning permission from the Urban Redevelopment Authority to redevelop MSCP into an office tower for $1 billion to $1.5 billion.
In April, CCT manager CapitaCommercial Trust Management Limited (CTML) said that it was evaluating the project's financial viability and funding structure, and would not decide on redevelopment anytime before mid-2009. It cited the project's size, rising construction costs, financial market volatility and the uncertain development premium as reasons for the deferment.
Responding to a query on whether CCT would consider selling MSCP instead, CTML's chief executive Lynette Leong said: 'We are open to all options.'
According to her, the development premium remains uncertain, and construction costs are still rising.
Ms Leong pointed out that the redevelopment decision may still be subject to unitholders' approval. Even if they were to reject the proposal, MSCP's value has risen because of its redevelopment potential. 'If it makes sense to sell it, why not? We will not rule out that option,' she said.
For H1 2008, CCT's distributable income of $71.92 million also outperformed the year-ago period's by 22.9 per cent. This translates to a DPU of 5.19 cents, which is 22.7 per cent more than in H1 2007 and exceeds the manager's forecast by 4.2 per cent.
The annualised H1 2008 DPU of 10.44 cents represents a distribution yield of 5.5 per cent based on Tuesday's closing unit price of $1.91.
'The outstanding numbers were largely driven by strong organic growth due to the prime quality of our assets augmented by our proactive leasing and the high standard of our property management,' said Ms Leong.
Lease renewals and new leases contracted in H1 2008 for CCT's office space registered an average rental rate increase of 193 per cent over last contracted rates, and there is still potential upside. 'Many of our expiring leases have rentals that are significantly below market and are being reviewed to market as they renew,' she said.
CCT's gearing ratio as at July 11 was 35.7 per cent, and this took into account the acquisition of 1 George Street. The property will contribute to CCT's income from Q3 2008, and brings its asset size close to $7 billion today.
In its latest asset valuation exercise, CCT's portfolio as at June 1 stood at $5.57 billion, about $463 million higher than at Dec 1, 2007. The portfolio comprised CCT's existing properties, its 60 per cent interest in Raffles City through RCS Trust, and excludes 1 George Street.
'Given Singapore's attractiveness as a global city and tight office supply, we are confident of exceeding our forecast DPU of 10.61 cents for the financial year ending 2008,' said CTML's chairman Richard Hale.
CCT will continue to seek quality and yield accretive assets, though at a more deliberate pace, given the current market environment.
CCT units rose 3.7 per cent or seven cents yesterday to close at $1.98.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CCT open to sale of Market Street Car Park
Reit reports 23% rise in Q2 distributable income to $36m
By EMILYN YAP
CAPITACOMMERCIAL Trust (CCT) says it is 'open to all options' when it comes to plans for Market Street Car Park (MSCP), and these include selling the site.
The update was given at CCT's results briefing yesterday. Supported by strong rental reversions, the trust reported distributable income of $36.06 million for the second quarter ended June 30, 2008, up 23.2 per cent from the same period last year. Q2's distribution per unit (DPU) of 2.6 cents is 22.6 per cent higher than in Q2 2007.
CCT has obtained outline planning permission from the Urban Redevelopment Authority to redevelop MSCP into an office tower for $1 billion to $1.5 billion.
In April, CCT manager CapitaCommercial Trust Management Limited (CTML) said that it was evaluating the project's financial viability and funding structure, and would not decide on redevelopment anytime before mid-2009. It cited the project's size, rising construction costs, financial market volatility and the uncertain development premium as reasons for the deferment.
Responding to a query on whether CCT would consider selling MSCP instead, CTML's chief executive Lynette Leong said: 'We are open to all options.'
According to her, the development premium remains uncertain, and construction costs are still rising.
Ms Leong pointed out that the redevelopment decision may still be subject to unitholders' approval. Even if they were to reject the proposal, MSCP's value has risen because of its redevelopment potential. 'If it makes sense to sell it, why not? We will not rule out that option,' she said.
For H1 2008, CCT's distributable income of $71.92 million also outperformed the year-ago period's by 22.9 per cent. This translates to a DPU of 5.19 cents, which is 22.7 per cent more than in H1 2007 and exceeds the manager's forecast by 4.2 per cent.
The annualised H1 2008 DPU of 10.44 cents represents a distribution yield of 5.5 per cent based on Tuesday's closing unit price of $1.91.
'The outstanding numbers were largely driven by strong organic growth due to the prime quality of our assets augmented by our proactive leasing and the high standard of our property management,' said Ms Leong.
Lease renewals and new leases contracted in H1 2008 for CCT's office space registered an average rental rate increase of 193 per cent over last contracted rates, and there is still potential upside. 'Many of our expiring leases have rentals that are significantly below market and are being reviewed to market as they renew,' she said.
CCT's gearing ratio as at July 11 was 35.7 per cent, and this took into account the acquisition of 1 George Street. The property will contribute to CCT's income from Q3 2008, and brings its asset size close to $7 billion today.
In its latest asset valuation exercise, CCT's portfolio as at June 1 stood at $5.57 billion, about $463 million higher than at Dec 1, 2007. The portfolio comprised CCT's existing properties, its 60 per cent interest in Raffles City through RCS Trust, and excludes 1 George Street.
'Given Singapore's attractiveness as a global city and tight office supply, we are confident of exceeding our forecast DPU of 10.61 cents for the financial year ending 2008,' said CTML's chairman Richard Hale.
CCT will continue to seek quality and yield accretive assets, though at a more deliberate pace, given the current market environment.
CCT units rose 3.7 per cent or seven cents yesterday to close at $1.98.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Condo land falling below building costs
Business Times - 24 Jul 2008
Condo land falling below building costs
Developers of entry-level housing squeezed by weak selling prices and surge in construction costs
By KALPANA RASHIWALA
(SINGAPORE) For the first time in at least two decades, construction costs for some 99-year condo sites are actually higher than their land costs. This is taking place against the backdrop of soaring construction prices and a weak outlook for the prices at which private housing developments can be sold.
Some industry watchers expect this trend for entry-level private housing to continue - which suggests that the government may have to be prepared to accept declining land bids at state tenders.
'Right now, developers can bid up to about $200-250 per square foot of potential gross floor area at most for suburban condo sites, which translates to breakeven costs of $650-700 psf. However, if construction costs continue to go up and selling prices continue to drop, there's not much else you can do except to lower your land bids. The question is what is the government's threshold for pain?' a seasoned developer said.
In May, URA (Urban Redevelopment Authority) awarded a site in Choa Chu Kang for $203 psf per plot ratio (psf ppr). 'So the $200 psf ppr mark has been tested. The next question is: Will the government be prepared to sell sites at even lower prices, say, around $150 psf ppr?' he added. This $203 psf ppr was below the construction cost of a new development on the site.
Last month's winning bid of $270 psf ppr by Frasers Centrepoint at a state tender for a plot at Woodleigh Close was also lower than the construction cost of about $300 psf of gross floor area (GFA) for mass-market condos, industry observers noted.
Meanwhile, constructions costs - after staying stagnant for several years - are now at record levels.
Construction cost consultancy Rider Levett Bucknall (RLB). said: 'Construction prices for medium-quality condominiums indicatively range from $260 psf of GFA to $320 psf of GFA in Q1 2008, and prices have risen further to $280 to $350 psf of GFA for Q2 2008,' it said. 'High demand and competition for limited resources, the lack of tendering capacity among contractors, sub-contractors and suppliers, and volatile commodity prices have contributed significantly to building tender price escalation,' the firm added.
Construction costs are estimated to have risen 20 to 25 per cent for Q4 2007 compared with the corresponding period in 2006 for average medium quality condominiums (for the upgraders' market).
While the trend of construction costs exceeding land costs has drawn more attention since the recent tender closings of Government Land Sales (GLS) sites, some observers say it surfaced as early as December last year, when Chip Eng Seng bought a plot at Elias Rd in Pasir Ris for $228 psf ppr.
In the same month, Frasers Centrepoint picked up a site at Lakeside Drive for $248 psf ppr - which was probably about equal to construction costs at the time.
Construction costs comprise not just the cost of building materials but also include factors such as workers' wages among others.
As for the mid-market and high-end residential sectors, land values would still be above their respective construction costs, although there have hardly been any land deals in these segments in recent months because of weaker homebuying sentiment.
Instead, developers have been focusing more on suburban sites suitable for being developed into mass-market private homes targeted at upgraders, as this is the sector where end-unit demand is relatively more resilient. Still, developers have had to be more prudent with their land bids.
'It's a simple equation, a function of selling price for the end-units against development cost and profit,' a property investor observes.
Buyers of mass-market condos are extremely price sensitive, while construction costs have been escalating. 'At the end of the day, something's got to give - in terms of a lower land bid,' observes Knight Frank managing director Tan Tiong Cheng.
'Developers have to allow a larger sum for contingencies because of the way construction material prices have been going up.
'The trend is likely to continue - until construction costs come down or selling prices of private homes go up again,' Mr Tan added.
For now the pressure on construction costs shows no signs of letting up. 'Given the large existing project commitments on hand, price escalation trends are set to continue for this year and may be in the order of 15 to 20 per cent,' RLB said.
Condo land falling below building costs
Developers of entry-level housing squeezed by weak selling prices and surge in construction costs
By KALPANA RASHIWALA
(SINGAPORE) For the first time in at least two decades, construction costs for some 99-year condo sites are actually higher than their land costs. This is taking place against the backdrop of soaring construction prices and a weak outlook for the prices at which private housing developments can be sold.
Some industry watchers expect this trend for entry-level private housing to continue - which suggests that the government may have to be prepared to accept declining land bids at state tenders.
'Right now, developers can bid up to about $200-250 per square foot of potential gross floor area at most for suburban condo sites, which translates to breakeven costs of $650-700 psf. However, if construction costs continue to go up and selling prices continue to drop, there's not much else you can do except to lower your land bids. The question is what is the government's threshold for pain?' a seasoned developer said.
In May, URA (Urban Redevelopment Authority) awarded a site in Choa Chu Kang for $203 psf per plot ratio (psf ppr). 'So the $200 psf ppr mark has been tested. The next question is: Will the government be prepared to sell sites at even lower prices, say, around $150 psf ppr?' he added. This $203 psf ppr was below the construction cost of a new development on the site.
Last month's winning bid of $270 psf ppr by Frasers Centrepoint at a state tender for a plot at Woodleigh Close was also lower than the construction cost of about $300 psf of gross floor area (GFA) for mass-market condos, industry observers noted.
Meanwhile, constructions costs - after staying stagnant for several years - are now at record levels.
Construction cost consultancy Rider Levett Bucknall (RLB). said: 'Construction prices for medium-quality condominiums indicatively range from $260 psf of GFA to $320 psf of GFA in Q1 2008, and prices have risen further to $280 to $350 psf of GFA for Q2 2008,' it said. 'High demand and competition for limited resources, the lack of tendering capacity among contractors, sub-contractors and suppliers, and volatile commodity prices have contributed significantly to building tender price escalation,' the firm added.
Construction costs are estimated to have risen 20 to 25 per cent for Q4 2007 compared with the corresponding period in 2006 for average medium quality condominiums (for the upgraders' market).
While the trend of construction costs exceeding land costs has drawn more attention since the recent tender closings of Government Land Sales (GLS) sites, some observers say it surfaced as early as December last year, when Chip Eng Seng bought a plot at Elias Rd in Pasir Ris for $228 psf ppr.
In the same month, Frasers Centrepoint picked up a site at Lakeside Drive for $248 psf ppr - which was probably about equal to construction costs at the time.
Construction costs comprise not just the cost of building materials but also include factors such as workers' wages among others.
As for the mid-market and high-end residential sectors, land values would still be above their respective construction costs, although there have hardly been any land deals in these segments in recent months because of weaker homebuying sentiment.
Instead, developers have been focusing more on suburban sites suitable for being developed into mass-market private homes targeted at upgraders, as this is the sector where end-unit demand is relatively more resilient. Still, developers have had to be more prudent with their land bids.
'It's a simple equation, a function of selling price for the end-units against development cost and profit,' a property investor observes.
Buyers of mass-market condos are extremely price sensitive, while construction costs have been escalating. 'At the end of the day, something's got to give - in terms of a lower land bid,' observes Knight Frank managing director Tan Tiong Cheng.
'Developers have to allow a larger sum for contingencies because of the way construction material prices have been going up.
'The trend is likely to continue - until construction costs come down or selling prices of private homes go up again,' Mr Tan added.
For now the pressure on construction costs shows no signs of letting up. 'Given the large existing project commitments on hand, price escalation trends are set to continue for this year and may be in the order of 15 to 20 per cent,' RLB said.
Stockbroking partners bank on property projects
The Dream Team
Stockbroking partners bank on property projects
Thursday • July 24, 2008
CONRAD RAJ
editor-at-large
conrad@mediacorp.com.sg
DESPITE its ups and downs, property appears to be the main investment path for those with surplus cash who want to diversify from their existing businesses. So it was with stockbrokers Han Seng Juan and David Loh Kim Kang when they founded Centurion Properties a couple of years ago.
They’re the “David and Han Team” or “The Dream Team”, as they are popularly known in the stockbroking world, due to their enormous success in share trading and for bringing numerous Chinese companies here for listing.
They first ventured into property in a big way by plonking $290 million onto a 190,000 sq ft site next to Kovan MRT Station in October last year.
The site is being developed by Centurion Kovan, a joint venture between Centurion Properties with a 61-per-cent stake, listed contractor Lian Beng Group with a 19-per-cent interest and a group of investors owning the rest.
This will result in a 521-unit condominium named Kovan Residences, which is scheduled for completion in 2011 at a total cost including land of over $500 million. Lian Beng is also the project’s main contractor.
Since its recent launch, some 110 flats designed to bring “urban living into the outskirts”, have been sold at between$820 per square foot (psf) and $950 psf, compared with an estimated breakeven price of about $730 to $750 psf. In today’s market, this is “encouraging”, says Centurion chief executive Tony Bin Hee Din.
He describes the current slowdown in the property market as a “momentary pause” and that, in the longer term, the Singapore economy would prove its resilience with more buyers coming back into the market.
“We have a quality product here, and while most of the buyers have been Singaporeans, we have also had quite a few foreigners. With the MRT station practically adjacent to the development, Dhoby Ghaut is only 13 minutes away and Orchard, 19 minutes,” Mr Bin said, adding that in a global city environment, ease of transportation would be an important consideration.
But, Mr Loh and Mr Han are not only looking at the private residential sector. “We are looking at things that are opportunistic and have a good cash flow,” Mr Bin said. In fact, the two — apart from dabbling in shares at broking house UOB Kay Hian — are also known to be corporate investors, who control stakes in companies like listed Summit Holdings and Pine Agritech.
In February, Centurion, which has a paid-up capital of $10 million, invested another $60 million in a housing site for foreign workers called Westlite Dormitory, near the IMM Building in Jurong.
Like investment bank Morgan Stanley, which earlier bought into three other dormitories, Mr Loh and Mr Han were attracted by the relatively high yields that such properties fetch.
The dormitory, which is on a 11,680 sq m site, has a residual lease period of more than 50 years (the original lease was 60 years). The development currently has 448 units, housing 8 to 12 workers each, with a total population of 4,500 to 5,000 workers.
But, Mr Bin points out that there is presently a shortage of dormitory space for foreign workers, especially for those who work on the ongoing MRT Circle Line, the IRs and numerous other infrastructure and property projects.
“We are evaluating an asset enhancement programme that will significantly increase the number of units. If all goes well, work is targeted to start next year,” Mr Bin added.
The team is also looking abroad, and has already gone into a joint venture project in Vietnam, a greenfield hill resort just outside of Ho Chi Minh City. “With a large, richly-endowed population, it is our belief that Vietnam has good growth potential,” Mr Bin disclosed.
The project, which is in excess of 700 hectares and will include a golf course and housing, had its ground-breaking recently, and will be completed in stages over the next few years.
Asked if Centurion had plans for more of such resort projects, Mr Bin replied: “Most certainly. The country has a long, pristine and beautiful coastline. Incomes are expected to rise significantly. As in all investments, they must meet our investment criteria: good projects, good partners and meeting our target returns.”
The company is also in talks with some parties in China, and is looking at Beijing and one other major city, although no deals have yet been done.
“We are in an expansion mode and we will explore any good opportunity that comes our way,” Mr Bin said.
Copyright MediaCorp Press Ltd. All rights reserved.
Stockbroking partners bank on property projects
Thursday • July 24, 2008
CONRAD RAJ
editor-at-large
conrad@mediacorp.com.sg
DESPITE its ups and downs, property appears to be the main investment path for those with surplus cash who want to diversify from their existing businesses. So it was with stockbrokers Han Seng Juan and David Loh Kim Kang when they founded Centurion Properties a couple of years ago.
They’re the “David and Han Team” or “The Dream Team”, as they are popularly known in the stockbroking world, due to their enormous success in share trading and for bringing numerous Chinese companies here for listing.
They first ventured into property in a big way by plonking $290 million onto a 190,000 sq ft site next to Kovan MRT Station in October last year.
The site is being developed by Centurion Kovan, a joint venture between Centurion Properties with a 61-per-cent stake, listed contractor Lian Beng Group with a 19-per-cent interest and a group of investors owning the rest.
This will result in a 521-unit condominium named Kovan Residences, which is scheduled for completion in 2011 at a total cost including land of over $500 million. Lian Beng is also the project’s main contractor.
Since its recent launch, some 110 flats designed to bring “urban living into the outskirts”, have been sold at between$820 per square foot (psf) and $950 psf, compared with an estimated breakeven price of about $730 to $750 psf. In today’s market, this is “encouraging”, says Centurion chief executive Tony Bin Hee Din.
He describes the current slowdown in the property market as a “momentary pause” and that, in the longer term, the Singapore economy would prove its resilience with more buyers coming back into the market.
“We have a quality product here, and while most of the buyers have been Singaporeans, we have also had quite a few foreigners. With the MRT station practically adjacent to the development, Dhoby Ghaut is only 13 minutes away and Orchard, 19 minutes,” Mr Bin said, adding that in a global city environment, ease of transportation would be an important consideration.
But, Mr Loh and Mr Han are not only looking at the private residential sector. “We are looking at things that are opportunistic and have a good cash flow,” Mr Bin said. In fact, the two — apart from dabbling in shares at broking house UOB Kay Hian — are also known to be corporate investors, who control stakes in companies like listed Summit Holdings and Pine Agritech.
In February, Centurion, which has a paid-up capital of $10 million, invested another $60 million in a housing site for foreign workers called Westlite Dormitory, near the IMM Building in Jurong.
Like investment bank Morgan Stanley, which earlier bought into three other dormitories, Mr Loh and Mr Han were attracted by the relatively high yields that such properties fetch.
The dormitory, which is on a 11,680 sq m site, has a residual lease period of more than 50 years (the original lease was 60 years). The development currently has 448 units, housing 8 to 12 workers each, with a total population of 4,500 to 5,000 workers.
But, Mr Bin points out that there is presently a shortage of dormitory space for foreign workers, especially for those who work on the ongoing MRT Circle Line, the IRs and numerous other infrastructure and property projects.
“We are evaluating an asset enhancement programme that will significantly increase the number of units. If all goes well, work is targeted to start next year,” Mr Bin added.
The team is also looking abroad, and has already gone into a joint venture project in Vietnam, a greenfield hill resort just outside of Ho Chi Minh City. “With a large, richly-endowed population, it is our belief that Vietnam has good growth potential,” Mr Bin disclosed.
The project, which is in excess of 700 hectares and will include a golf course and housing, had its ground-breaking recently, and will be completed in stages over the next few years.
Asked if Centurion had plans for more of such resort projects, Mr Bin replied: “Most certainly. The country has a long, pristine and beautiful coastline. Incomes are expected to rise significantly. As in all investments, they must meet our investment criteria: good projects, good partners and meeting our target returns.”
The company is also in talks with some parties in China, and is looking at Beijing and one other major city, although no deals have yet been done.
“We are in an expansion mode and we will explore any good opportunity that comes our way,” Mr Bin said.
Copyright MediaCorp Press Ltd. All rights reserved.
Oversupply Worse than Expected?
Oversupply Worse than Expected?
There is a distinct possibility of lower prices with so many developmentsset to be completed at the same time
Thursday • July 24, 2008
Colin Tan
RECENT arguments against earlier predictions of a private housing oversupply are overblown, and cannot be further from the truth. In fact, those predicting an oversupply are probably understating their case. How bad the market fares will depend on the economy. But, leaving the economic factor aside, demand and supply factors alone dictate that the market has to correct in a significant way.
But before we go into that, let us examine the construction bottleneck argument. It is claimed, with justification, that this will result in significant delays to future supply. By one industry estimate, only 60 per cent of the 30,000 units forecasted will be completed as scheduled.
But when does completion date matter when new units these days are sold off-plan, even before construction starts? What will impact prices is surely the timing of the sale. Nothing can prevent all 30,000 units from flooding the market within the next 12 months if developers choose to launch. By the same token, nothing can force developers to sell if they don’t want to.
It is easy to forget that there was very little new supply from September last year to May this year. But, in a matter of weeks, this number has probably tripled, or even quadrupled. A friend with an avid interest in properties remarked to me recently that he will need a few months just to visit all the show units.
And while some have predicted a 30-to-40 per cent price correction for the luxury/upper-tier segment, it is interesting to note that this segment actually saw far fewer launches in the past weeks. So, in the current market, the luxury/upper tier segment actually faces less competition and hence, less pressure to lower prices. However, it does not mean it is in a healthier position, as buying for this segment has dwindled to a trickle.
When does completion actually matter in the housing demand and supply equation? I would say, it is when the market is investor-dominated. When buying is mainly done by owner-occupiers, the moment a unit is sold, it is taken out of the supply equation. Supply gets depleted. This was the situation in the past. We determine whether the market is oversupplied or not by the amount of units left unsold versus potential demand.
But, when the market is investor-dominated, sold units held by investors remain in the supply equation as investors need to sell onward to owner-occupiers or have them tenanted.
By my conservative estimates, more than 50 per cent of the units sold in 2006 to 2007 were bought by investors. This is because the high prevailing prices then were beyond the affordability of most owner-occupiers. This is supported by a recent National University of Singapore study which showed that the affordability of owner-occupiers for private housing has declined significantly in recent years.
Some projects, such as The Sail at Marina Bay, Marina Bay Residences and One Shenton, as well as those on Sentosa island, will most definitely have a higher proportion of investor buyers — as high as 60 to 80 per cent — because there are few of the amenities nearby, such as schools, which are usually desired by owner-occupiers, unless a case can be made out that the majority of units are holiday homes for the super-rich, or are bought by singles. For singles, their level of affordability is even lower.
Between the second quarter of 2006 and third quarter of 2007, developers sold an astounding 22,651 units. This translates to an annual average pace of about 15,100 units, or about double the long-term average absorption rate of about 7,000 to 8,000 units. Conservatively, this means at least 12,000 “sold” units remain in the supply equation.
When these investor-owned units are completed, someone has to occupy them. If rentals then cannot cover mortgage payments and if owners are highly-geared, they will have to contemplate selling the units sooner or later.
If more owners are in the same predicament, the competition to sell will result in lower prices.
The writer is head of research at Chesterton International.
Copyright MediaCorp Press Ltd. All rights reserved.
There is a distinct possibility of lower prices with so many developmentsset to be completed at the same time
Thursday • July 24, 2008
Colin Tan
RECENT arguments against earlier predictions of a private housing oversupply are overblown, and cannot be further from the truth. In fact, those predicting an oversupply are probably understating their case. How bad the market fares will depend on the economy. But, leaving the economic factor aside, demand and supply factors alone dictate that the market has to correct in a significant way.
But before we go into that, let us examine the construction bottleneck argument. It is claimed, with justification, that this will result in significant delays to future supply. By one industry estimate, only 60 per cent of the 30,000 units forecasted will be completed as scheduled.
But when does completion date matter when new units these days are sold off-plan, even before construction starts? What will impact prices is surely the timing of the sale. Nothing can prevent all 30,000 units from flooding the market within the next 12 months if developers choose to launch. By the same token, nothing can force developers to sell if they don’t want to.
It is easy to forget that there was very little new supply from September last year to May this year. But, in a matter of weeks, this number has probably tripled, or even quadrupled. A friend with an avid interest in properties remarked to me recently that he will need a few months just to visit all the show units.
And while some have predicted a 30-to-40 per cent price correction for the luxury/upper-tier segment, it is interesting to note that this segment actually saw far fewer launches in the past weeks. So, in the current market, the luxury/upper tier segment actually faces less competition and hence, less pressure to lower prices. However, it does not mean it is in a healthier position, as buying for this segment has dwindled to a trickle.
When does completion actually matter in the housing demand and supply equation? I would say, it is when the market is investor-dominated. When buying is mainly done by owner-occupiers, the moment a unit is sold, it is taken out of the supply equation. Supply gets depleted. This was the situation in the past. We determine whether the market is oversupplied or not by the amount of units left unsold versus potential demand.
But, when the market is investor-dominated, sold units held by investors remain in the supply equation as investors need to sell onward to owner-occupiers or have them tenanted.
By my conservative estimates, more than 50 per cent of the units sold in 2006 to 2007 were bought by investors. This is because the high prevailing prices then were beyond the affordability of most owner-occupiers. This is supported by a recent National University of Singapore study which showed that the affordability of owner-occupiers for private housing has declined significantly in recent years.
Some projects, such as The Sail at Marina Bay, Marina Bay Residences and One Shenton, as well as those on Sentosa island, will most definitely have a higher proportion of investor buyers — as high as 60 to 80 per cent — because there are few of the amenities nearby, such as schools, which are usually desired by owner-occupiers, unless a case can be made out that the majority of units are holiday homes for the super-rich, or are bought by singles. For singles, their level of affordability is even lower.
Between the second quarter of 2006 and third quarter of 2007, developers sold an astounding 22,651 units. This translates to an annual average pace of about 15,100 units, or about double the long-term average absorption rate of about 7,000 to 8,000 units. Conservatively, this means at least 12,000 “sold” units remain in the supply equation.
When these investor-owned units are completed, someone has to occupy them. If rentals then cannot cover mortgage payments and if owners are highly-geared, they will have to contemplate selling the units sooner or later.
If more owners are in the same predicament, the competition to sell will result in lower prices.
The writer is head of research at Chesterton International.
Copyright MediaCorp Press Ltd. All rights reserved.
:Fashion hotels for Singapore:
:Fashion hotels for Singapore:
:No-frills establishments :offering high-tech amenities :aimed at business travellers
Thursday • July 24, 2008
:ESTHER FUNG
:esther@mediacorp.com.sg
MILLENIUM and Copthorne Hotels (M&C) may build up to five more “limited service” hotels in Singapore, if the one currently under construction along Mohammed Sultan Road takes off.
The London-listed hotel group’s chief executive Richard Hartman, revealing this yesterday during an interview, said more may also pop up in Asia.
“This kind of product works best when you have scale in the market. You can’t launch these things in the United States with two hotels. You’ve got to have 500 of them,” he told Today.
Limited service hotels, which have mushroomed in Western cities, typically tone down the frills to keep room rates affordable for most people.
In M&C’s case, they are marketing theirs at business travellers who do not want the frills of a four- or five-star hotel, but require high-tech amenities.
Their plans for 20 limited service hotels in India offer a peek into what could go into the as-yet-unnamed one at Mohammed Sultan Road: Facilities that are 100-per-cent wireless, modular furniture and many private business booths.
They are not budget establishments like Travelodge or Red Roof Inns in North America, said Mr Hartman, who joined M&C in May. Instead, he said, the first such hotel in Singapore will have a “high-touch, fashion” element, with room rates going for less than those of the Grand Copthorne Waterfront Hotel, one of the five hotels M&C currently owns in Singapore.
Think: The “W” Hotels brand, famous in the US for its trendy decor including waterfall entrances.
“This is limited service, but it’s a fashion statement,” said Mr Hartman. The downside of such niche hotels, however, is that they can’t take in business from conventions, he said.
Looking ahead, Mr Hartman is concerned that the Singapore’s hotel industry may see occupancy rates weakening as 8,000 more rooms are expected to be added in the next five years.
“Supply will increase in a lumpy fashion, a step change, but in my experience, demand doesn’t move like that,” saidMr Hartman. “There will be times when there will be more rooms than customers. But I hope that prices of the rooms don’t plummet again. That’s when it becomes very difficult to rebuild the yields.”
M&C, which owns over 110 hotels worldwide, is about 53-per-cent owned by Singapore-listed City Developments, which is controlled by Hong Leong Group.
Copyright MediaCorp Press Ltd. All rights reserved.
:No-frills establishments :offering high-tech amenities :aimed at business travellers
Thursday • July 24, 2008
:ESTHER FUNG
:esther@mediacorp.com.sg
MILLENIUM and Copthorne Hotels (M&C) may build up to five more “limited service” hotels in Singapore, if the one currently under construction along Mohammed Sultan Road takes off.
The London-listed hotel group’s chief executive Richard Hartman, revealing this yesterday during an interview, said more may also pop up in Asia.
“This kind of product works best when you have scale in the market. You can’t launch these things in the United States with two hotels. You’ve got to have 500 of them,” he told Today.
Limited service hotels, which have mushroomed in Western cities, typically tone down the frills to keep room rates affordable for most people.
In M&C’s case, they are marketing theirs at business travellers who do not want the frills of a four- or five-star hotel, but require high-tech amenities.
Their plans for 20 limited service hotels in India offer a peek into what could go into the as-yet-unnamed one at Mohammed Sultan Road: Facilities that are 100-per-cent wireless, modular furniture and many private business booths.
They are not budget establishments like Travelodge or Red Roof Inns in North America, said Mr Hartman, who joined M&C in May. Instead, he said, the first such hotel in Singapore will have a “high-touch, fashion” element, with room rates going for less than those of the Grand Copthorne Waterfront Hotel, one of the five hotels M&C currently owns in Singapore.
Think: The “W” Hotels brand, famous in the US for its trendy decor including waterfall entrances.
“This is limited service, but it’s a fashion statement,” said Mr Hartman. The downside of such niche hotels, however, is that they can’t take in business from conventions, he said.
Looking ahead, Mr Hartman is concerned that the Singapore’s hotel industry may see occupancy rates weakening as 8,000 more rooms are expected to be added in the next five years.
“Supply will increase in a lumpy fashion, a step change, but in my experience, demand doesn’t move like that,” saidMr Hartman. “There will be times when there will be more rooms than customers. But I hope that prices of the rooms don’t plummet again. That’s when it becomes very difficult to rebuild the yields.”
M&C, which owns over 110 hotels worldwide, is about 53-per-cent owned by Singapore-listed City Developments, which is controlled by Hong Leong Group.
Copyright MediaCorp Press Ltd. All rights reserved.
Vandals keen on en-bloc sale damage cars
July 24, 2008
Vandals keen on en-bloc sale damage cars
Lexus and Toyota vandalised in the latest attacks in Laguna Park
By Carolyn Quek
HUNGER for en-bloc dollars looks to have turned vicious at a quiet private estate in East Coast.
On Tuesday night, two residents of the 530-unit Laguna Park estate discovered that their cars had been doused with a corrosive liquid, possibly paint thinner.
They were among the residents who had not yet agreed to put the seaside development up for sale. Earlier this month, two other cars belonging to the dissenting group were also vandalised.
Residents claim they were the latest of several cases of vandalism that began after the possibility of going en-bloc arose last December.
The estate has until the end of this year to gather an 80 per cent vote to put it up for sale. But so far, residents say less than 65 per cent are onboard.
Residents have been told by a property valuer that an average unit could be worth more than $2.1 million and the penthouses almost $4 million if the estate goes en-bloc. A resident said the market rate for a normal unit now is about $1.3 million.
Some of the holdouts have lived in Laguna Park since it was built in 1977, while others have been there for many years.
Some residents told The Straits Times they were surprised that the sale has fostered so much acrimony.
Five cars have been vandalised in recent weeks, said the outgoing chairman of the condominium's management committee, Mr Chua SC, who declined to give his full name. Some vehicles were doused with a corrosive liquid while others were scratched and splashed with black paint.
Police reports have been made and investigations are under way.
An independent analyst said residents sometimes do strange things in the hopes of pushing through an en bloc sale.
'But resorting to criminal acts...this would be the first time,' said Mr Ku Swee Yong, Savills' director of marketing and business development.
The vandalism could ultimately be a futile exercise with the cooling property market, said Mr Ku.
'It's a bit of a long shot in these market conditions to find buyers.'
Laguna Park residents told The Straits Times yesterday that they believed the vehicle attacks were 'inside jobs' committed by people who support the en-bloc deal.
If this proves true, Mr Chua thinks it is a 'very stupid, silly and naive way of trying to get people to sign'.
'I don't think this is the right way to do it,' said an agitated Mr Chua, who had the logo ripped off his Nissan about three weeks ago.
Mr Robin Sng, a company director, owns one of the cars damaged on Tuesday night. The corrosive liquid ate away the paint on the bonnet, door and bumper of his four-year-old Lexus.
'I feel frightened,' he said.
A brand new Toyota parked 50m away was also vandalised on the same night.
A resident diligently went round the estate's dustbins and found a can of paint remover in a rubbish bin near the carpark. The can was taken away as evidence by the police, who are investigating the rash of vandalism.
Mr Chua said he told residents at a recent annual general meeting that something had to be done about the cases.
Residents earlier shot down the idea of installing surveillance cameras, he said.
'Now I suppose it has become urgent enough to reactivate the idea.'
carolynq@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Vandals keen on en-bloc sale damage cars
Lexus and Toyota vandalised in the latest attacks in Laguna Park
By Carolyn Quek
HUNGER for en-bloc dollars looks to have turned vicious at a quiet private estate in East Coast.
On Tuesday night, two residents of the 530-unit Laguna Park estate discovered that their cars had been doused with a corrosive liquid, possibly paint thinner.
They were among the residents who had not yet agreed to put the seaside development up for sale. Earlier this month, two other cars belonging to the dissenting group were also vandalised.
Residents claim they were the latest of several cases of vandalism that began after the possibility of going en-bloc arose last December.
The estate has until the end of this year to gather an 80 per cent vote to put it up for sale. But so far, residents say less than 65 per cent are onboard.
Residents have been told by a property valuer that an average unit could be worth more than $2.1 million and the penthouses almost $4 million if the estate goes en-bloc. A resident said the market rate for a normal unit now is about $1.3 million.
Some of the holdouts have lived in Laguna Park since it was built in 1977, while others have been there for many years.
Some residents told The Straits Times they were surprised that the sale has fostered so much acrimony.
Five cars have been vandalised in recent weeks, said the outgoing chairman of the condominium's management committee, Mr Chua SC, who declined to give his full name. Some vehicles were doused with a corrosive liquid while others were scratched and splashed with black paint.
Police reports have been made and investigations are under way.
An independent analyst said residents sometimes do strange things in the hopes of pushing through an en bloc sale.
'But resorting to criminal acts...this would be the first time,' said Mr Ku Swee Yong, Savills' director of marketing and business development.
The vandalism could ultimately be a futile exercise with the cooling property market, said Mr Ku.
'It's a bit of a long shot in these market conditions to find buyers.'
Laguna Park residents told The Straits Times yesterday that they believed the vehicle attacks were 'inside jobs' committed by people who support the en-bloc deal.
If this proves true, Mr Chua thinks it is a 'very stupid, silly and naive way of trying to get people to sign'.
'I don't think this is the right way to do it,' said an agitated Mr Chua, who had the logo ripped off his Nissan about three weeks ago.
Mr Robin Sng, a company director, owns one of the cars damaged on Tuesday night. The corrosive liquid ate away the paint on the bonnet, door and bumper of his four-year-old Lexus.
'I feel frightened,' he said.
A brand new Toyota parked 50m away was also vandalised on the same night.
A resident diligently went round the estate's dustbins and found a can of paint remover in a rubbish bin near the carpark. The can was taken away as evidence by the police, who are investigating the rash of vandalism.
Mr Chua said he told residents at a recent annual general meeting that something had to be done about the cases.
Residents earlier shot down the idea of installing surveillance cameras, he said.
'Now I suppose it has become urgent enough to reactivate the idea.'
carolynq@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Local retailers go big in Ion
July 24, 2008
Local retailers go big in Ion
Plus: Over 45% of Orchard Turn malI's retail space taken up by new-to-market concepts
By Michelle Tay
LOCAL retailers are so sold on the new Ion Orchard they have snapped up big chunks of space for flagship stores and lined up new fashion brands to entice shoppers.
The firms have already signed deals for at least 40,000 sq ft in the upcoming Orchard Turn mega mall, almost a year ahead of its opening.
Club 21, Kwang Sia Fashion and Wing Tai Retail will open boutiques for global brands, while jewellers from here and overseas are nailing down leasing deals.
'Ion Orchard is the first major retail development on Orchard Road in some 15 years to redefine the retail landscape,' said Dr Kenny Chan, managing director of watch chain The Hour Glass. 'This gives rise to opportunities for retailers to expand their prime retail network.'
Singapore luxury fashion group Club 21 has tied up the largest space so far, with about 22,000 sq ft secured for its four stores. It will open duplex shops for Giorgio Armani and Dolce & Gabbana and boutiques for Marc Jacobs and Armani Exchange.
Kwang Sia, which manages the Hugo Boss franchise here, will open Max Mara, Max & Co, Dsquared and Boss Selection in Ion.
Wing Tai will close its Topshop/Topman outlet in Wisma next Thursday and re-open the store in the form of a 12,000 sq ft, double-storey flagship in Ion next year.
Ion Orchard said the retailer is also 'in advanced talks' to open a sizeable store for Japanese casualwear chain Uniqlo.
Wing Tai will manage the brand under a joint venture with Uniqlo's parent, Japan-based Fast Retailing.
'We have been... preparing for opportunities arising from a new retail landscape,'' Wing Tai Retail executive director Helen Khoo said. 'Ion Orchard will complement our strong brand identity.'
Local timepiece retailer Sincere Watch will open Sincere Haute Horlogerie and The Hour Glass will open L'Atelier and Rolex - taking up a total of about 4,200 sq ft on the first floor.
Ms Soon Su Lin, chief executive of Orchard Turn Developments, said the mall has surpassed its aim of achieving up to 60 per cent of space leased to flagships, and new-to-market and new concepts.
Of the 325,000 sq ft or so of retail space already leased at $20 to $80 per sq ft, more than 30 per cent are flagships and more than 45 per cent are new-to-market concepts, she added.
Ion Orchard, which boasts themed clusters for easy shopping, also unveiled the new-to-Singapore brands in some of these groups.
The high-end jewellery and watch cluster on the first and second floors will include boutiques for Harry Winston, Chaumet, Boucheron and IWC, as well as a large beauty department.
The third floor will house contemporary fashion labels, including CNC Costume National, GF Ferre and Byblos, all in a multi-label boutique called 6five Barcode. Celebrity hairstylist Kim Robinson will also open a salon.
On basement one, younger shoppers will find standalone stores for global brands like Lucky Brand Jeans, Hilfiger Denim, Steve Madden and Fred Perry.
Basement two will house 'three superstores', including Topshop, while 'successful local brands', telecommunications outlets and casual restaurants will fill up basement three.
Ms Soon dismissed the idea that local brands were being shoved out of prime space by international labels.
She told The Straits Times: 'Every inch of every space is prime. We are carefully selecting the best and most successful of our local brands and clustering them together.'
michtay@sph.com.sg
--------------------------------------------------------------------------------
Expect these brands in Ion
New in S'pore:
· Marc Jacobs standalone boutique
· Harry Winston
· Chaumet
· Boucheron
· IWC
· Dsquared
· Boss Selection
· Lucky Brand Jeans
· Hilfiger Denim
· Steve Madden
Others:
· Armani Exchange
· Giorgio Armani
· Dolce & Gabbana
· Max Mara
· Max & Co
· Topshop/Topman
· Sincere Haute Horlogerie
· L'Atelier by The Hour Glass
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Local retailers go big in Ion
Plus: Over 45% of Orchard Turn malI's retail space taken up by new-to-market concepts
By Michelle Tay
LOCAL retailers are so sold on the new Ion Orchard they have snapped up big chunks of space for flagship stores and lined up new fashion brands to entice shoppers.
The firms have already signed deals for at least 40,000 sq ft in the upcoming Orchard Turn mega mall, almost a year ahead of its opening.
Club 21, Kwang Sia Fashion and Wing Tai Retail will open boutiques for global brands, while jewellers from here and overseas are nailing down leasing deals.
'Ion Orchard is the first major retail development on Orchard Road in some 15 years to redefine the retail landscape,' said Dr Kenny Chan, managing director of watch chain The Hour Glass. 'This gives rise to opportunities for retailers to expand their prime retail network.'
Singapore luxury fashion group Club 21 has tied up the largest space so far, with about 22,000 sq ft secured for its four stores. It will open duplex shops for Giorgio Armani and Dolce & Gabbana and boutiques for Marc Jacobs and Armani Exchange.
Kwang Sia, which manages the Hugo Boss franchise here, will open Max Mara, Max & Co, Dsquared and Boss Selection in Ion.
Wing Tai will close its Topshop/Topman outlet in Wisma next Thursday and re-open the store in the form of a 12,000 sq ft, double-storey flagship in Ion next year.
Ion Orchard said the retailer is also 'in advanced talks' to open a sizeable store for Japanese casualwear chain Uniqlo.
Wing Tai will manage the brand under a joint venture with Uniqlo's parent, Japan-based Fast Retailing.
'We have been... preparing for opportunities arising from a new retail landscape,'' Wing Tai Retail executive director Helen Khoo said. 'Ion Orchard will complement our strong brand identity.'
Local timepiece retailer Sincere Watch will open Sincere Haute Horlogerie and The Hour Glass will open L'Atelier and Rolex - taking up a total of about 4,200 sq ft on the first floor.
Ms Soon Su Lin, chief executive of Orchard Turn Developments, said the mall has surpassed its aim of achieving up to 60 per cent of space leased to flagships, and new-to-market and new concepts.
Of the 325,000 sq ft or so of retail space already leased at $20 to $80 per sq ft, more than 30 per cent are flagships and more than 45 per cent are new-to-market concepts, she added.
Ion Orchard, which boasts themed clusters for easy shopping, also unveiled the new-to-Singapore brands in some of these groups.
The high-end jewellery and watch cluster on the first and second floors will include boutiques for Harry Winston, Chaumet, Boucheron and IWC, as well as a large beauty department.
The third floor will house contemporary fashion labels, including CNC Costume National, GF Ferre and Byblos, all in a multi-label boutique called 6five Barcode. Celebrity hairstylist Kim Robinson will also open a salon.
On basement one, younger shoppers will find standalone stores for global brands like Lucky Brand Jeans, Hilfiger Denim, Steve Madden and Fred Perry.
Basement two will house 'three superstores', including Topshop, while 'successful local brands', telecommunications outlets and casual restaurants will fill up basement three.
Ms Soon dismissed the idea that local brands were being shoved out of prime space by international labels.
She told The Straits Times: 'Every inch of every space is prime. We are carefully selecting the best and most successful of our local brands and clustering them together.'
michtay@sph.com.sg
--------------------------------------------------------------------------------
Expect these brands in Ion
New in S'pore:
· Marc Jacobs standalone boutique
· Harry Winston
· Chaumet
· Boucheron
· IWC
· Dsquared
· Boss Selection
· Lucky Brand Jeans
· Hilfiger Denim
· Steve Madden
Others:
· Armani Exchange
· Giorgio Armani
· Dolce & Gabbana
· Max Mara
· Max & Co
· Topshop/Topman
· Sincere Haute Horlogerie
· L'Atelier by The Hour Glass
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
S'pore getting more expensive for expats: Mercer survey
July 24, 2008
S'pore getting more expensive for expats: Mercer survey
It moves up a spot in two categories - to No. 5 in Asia and No. 13 in the world
By Francis Chan
SINGAPORE is now the fifth most expensive Asian city for expatriates, up a notch from an earlier survey, human resources consultancy Mercer said yesterday.
The annual cost-of-living survey did not spring too many surprises, with traditionally expensive cities in Europe and Asia featuring strongly in the top 20 cities for this year.
For the third year running, Moscow retained its top spot, while Tokyo climbed two spots to second, knocking off London and Seoul, which dropped to third and fifth, respectively, in the global rankings.
Singapore, which was number six in Asia last year, also edged one spot higher in global rankings this year, coming in at 13th.
'Singapore's rise in the rankings is partly attributable to the appreciation of the Singapore dollar against the US dollar,' said managing director for Mercer-Asean, Ms Su-Yen Wong.
'Another contributing factor is its continued strength as a hub for the region...this has increased demand for items such as housing, food and transportation.'
Mercer's survey, which covers 143 cities around the world, measures and compares the costs of over 200 essential items for expats.
These include housing, transport, food, clothing, household goods and even entertainment.
The rising cost of living reflected in the survey confirmed the global trend of price increases for staple items such as food and petrol.
The findings also showed a high correlation between the cost of living, economic growth and quality of life in a country.
This was more true for fast-developing Asian cities such as Singapore, where the cost-of-living increase can be attributed to the higher quality of life enjoyed by residents, Mercer said.
But despite rising living costs, especially in housing, Singapore remains competitive compared to its Asian neighbours such as Tokyo, Seoul and Hong Kong, and other global financial centres such as London and Zurich.
This has also not deterred foreign firms from setting up shop in Singapore.
'Our members are concerned about increasing rents but other costs are pretty much at world standard levels,' said Mr Nick Cocks, president of the Australian Chamber of Commerce, Singapore.
'And, overall, most of our members find Singapore a great place to live.'
Its American counterparts, however, painted a less-than-positive picture of Singapore.
A recent survey by the American Chamber of Commerce here showed that 74 per cent of its members were 'dissatisfied' with the cost of leasing offices and housing, while 95 per cent expected the cost of living to rise.
New York, the most expensive city in the US, is ranked 22nd on Mercer's global list.
franchan@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
S'pore getting more expensive for expats: Mercer survey
It moves up a spot in two categories - to No. 5 in Asia and No. 13 in the world
By Francis Chan
SINGAPORE is now the fifth most expensive Asian city for expatriates, up a notch from an earlier survey, human resources consultancy Mercer said yesterday.
The annual cost-of-living survey did not spring too many surprises, with traditionally expensive cities in Europe and Asia featuring strongly in the top 20 cities for this year.
For the third year running, Moscow retained its top spot, while Tokyo climbed two spots to second, knocking off London and Seoul, which dropped to third and fifth, respectively, in the global rankings.
Singapore, which was number six in Asia last year, also edged one spot higher in global rankings this year, coming in at 13th.
'Singapore's rise in the rankings is partly attributable to the appreciation of the Singapore dollar against the US dollar,' said managing director for Mercer-Asean, Ms Su-Yen Wong.
'Another contributing factor is its continued strength as a hub for the region...this has increased demand for items such as housing, food and transportation.'
Mercer's survey, which covers 143 cities around the world, measures and compares the costs of over 200 essential items for expats.
These include housing, transport, food, clothing, household goods and even entertainment.
The rising cost of living reflected in the survey confirmed the global trend of price increases for staple items such as food and petrol.
The findings also showed a high correlation between the cost of living, economic growth and quality of life in a country.
This was more true for fast-developing Asian cities such as Singapore, where the cost-of-living increase can be attributed to the higher quality of life enjoyed by residents, Mercer said.
But despite rising living costs, especially in housing, Singapore remains competitive compared to its Asian neighbours such as Tokyo, Seoul and Hong Kong, and other global financial centres such as London and Zurich.
This has also not deterred foreign firms from setting up shop in Singapore.
'Our members are concerned about increasing rents but other costs are pretty much at world standard levels,' said Mr Nick Cocks, president of the Australian Chamber of Commerce, Singapore.
'And, overall, most of our members find Singapore a great place to live.'
Its American counterparts, however, painted a less-than-positive picture of Singapore.
A recent survey by the American Chamber of Commerce here showed that 74 per cent of its members were 'dissatisfied' with the cost of leasing offices and housing, while 95 per cent expected the cost of living to rise.
New York, the most expensive city in the US, is ranked 22nd on Mercer's global list.
franchan@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Asking price for collective sale site slashed by 40%
July 24, 2008
Asking price for collective sale site slashed by 40%
By Fiona Chan
THE owners of a site off Bukit Timah Road are trying again for a collective sale - but after slashing the original price by nearly 40 per cent because of the grim market.
They want $58 million to $60 million for Robin Court, a walk-up block of 15 flats, and No. 1 Robin Drive, a detached house that hosts a preschool.
The new price tag for the 40,518 sq ft parcel works out to $964 to $996 per sq ft (psf) of the total potential floor area of about 62,400 sq ft. This is almost 40 per cent below the $1,500 to $1,600 psf they sought during their first sale attempt last year when the property market was buzzing.
Ms Yong Choon Fah, executive director of Credo Real Estate, which is marketing the District 10 site, said Robin Court's majority owners had agreed to sell en bloc before collective sale rules were changed in October. They are re-inking the sale agreement to lower the reserve price. A developer could build 30 high-end apartments of 2,000 sq ft each. The breakeven cost would be $1,470 to $1,500 psf of floor area, estimated Ms Yong.
The site was first put up for sale in November along with Robin Star, a 10-unit apartment block that is not included in the latest sale effort.
Meanwhile, buyers are being sought for two blocks of apartments at Gallop Gables off Farrer Road. Property firm Knight Frank is inviting expressions of interest for the 38 tenanted apartments, which have been kept for investment since completion of the project in 1997.
The properties are owned by Straits Trading. The indicative price is $1,500 psf, which works out to about $4.5 million for each apartment, or $171 million in total.
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Asking price for collective sale site slashed by 40%
By Fiona Chan
THE owners of a site off Bukit Timah Road are trying again for a collective sale - but after slashing the original price by nearly 40 per cent because of the grim market.
They want $58 million to $60 million for Robin Court, a walk-up block of 15 flats, and No. 1 Robin Drive, a detached house that hosts a preschool.
The new price tag for the 40,518 sq ft parcel works out to $964 to $996 per sq ft (psf) of the total potential floor area of about 62,400 sq ft. This is almost 40 per cent below the $1,500 to $1,600 psf they sought during their first sale attempt last year when the property market was buzzing.
Ms Yong Choon Fah, executive director of Credo Real Estate, which is marketing the District 10 site, said Robin Court's majority owners had agreed to sell en bloc before collective sale rules were changed in October. They are re-inking the sale agreement to lower the reserve price. A developer could build 30 high-end apartments of 2,000 sq ft each. The breakeven cost would be $1,470 to $1,500 psf of floor area, estimated Ms Yong.
The site was first put up for sale in November along with Robin Star, a 10-unit apartment block that is not included in the latest sale effort.
Meanwhile, buyers are being sought for two blocks of apartments at Gallop Gables off Farrer Road. Property firm Knight Frank is inviting expressions of interest for the 38 tenanted apartments, which have been kept for investment since completion of the project in 1997.
The properties are owned by Straits Trading. The indicative price is $1,500 psf, which works out to about $4.5 million for each apartment, or $171 million in total.
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Home loan rates at five-year high
July 24, 2008
Home loan rates at five-year high
A DEAL to save the United States housing market cannot come too soon: The troubles of mortgage finance giants are pushing up home loan rates to their highest levels in five years.
The average interest rate for 30-year fixed-rate mortgages rose to 6.71per cent on Tuesday, from 6.44per cent last Friday, according to HSH Associates, a publisher of consumer rates. The average rate for very big, so-called 'jumbo loans', which cannot be sold to Fannie Mae and Freddie Mac, was 7.8per cent, the highest since December 2000.
Loan rates are rising because of concerns in the financial markets about the future of Fannie Mae and Freddie Mac, which own or guarantee nearly half of the nation's US$12trillion (S$16.3trillion) mortgage market.
Worried that the companies may not be as big a support to the market as they have been, bond investors are driving up interest rates on securities backed by home loans. The added cost is being passed on to consumers via the mortgage markets. For a US$400,000 loan, the increase in 30-year rates in the last few days would add US$71 to a monthly bill, or US$852 a year.
The rate hike is of greatest concern to home owners whose mortgages required them to pay only the interest on their loans for the first few years. If such borrowers are unable to refinance into lower-cost loans, many of them will face the prospect of having to pay both interest and principal at higher, adjustable rates.
For borrowers with a US$400,000 loan, such a jump could send their monthly payments to US$2,338 from US$1,417, estimates mortgage broker Louis Barnes.
NEW YORK TIMES
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Home loan rates at five-year high
A DEAL to save the United States housing market cannot come too soon: The troubles of mortgage finance giants are pushing up home loan rates to their highest levels in five years.
The average interest rate for 30-year fixed-rate mortgages rose to 6.71per cent on Tuesday, from 6.44per cent last Friday, according to HSH Associates, a publisher of consumer rates. The average rate for very big, so-called 'jumbo loans', which cannot be sold to Fannie Mae and Freddie Mac, was 7.8per cent, the highest since December 2000.
Loan rates are rising because of concerns in the financial markets about the future of Fannie Mae and Freddie Mac, which own or guarantee nearly half of the nation's US$12trillion (S$16.3trillion) mortgage market.
Worried that the companies may not be as big a support to the market as they have been, bond investors are driving up interest rates on securities backed by home loans. The added cost is being passed on to consumers via the mortgage markets. For a US$400,000 loan, the increase in 30-year rates in the last few days would add US$71 to a monthly bill, or US$852 a year.
The rate hike is of greatest concern to home owners whose mortgages required them to pay only the interest on their loans for the first few years. If such borrowers are unable to refinance into lower-cost loans, many of them will face the prospect of having to pay both interest and principal at higher, adjustable rates.
For borrowers with a US$400,000 loan, such a jump could send their monthly payments to US$2,338 from US$1,417, estimates mortgage broker Louis Barnes.
NEW YORK TIMES
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Where else can you buy your home in 5 years?
July 24, 2008
COST OF LIVING: SHELTER
Where else can you buy your home in 5 years?
I REFER to Tuesday's letter by Senior Minister of State for Finance and Transport, Mrs Lim Hwee Hua, 'Singapore not necessarily costlier than Sweden''.
I too was surprised by the claim by Ms Heng Siew Cheng that it is cheaper (and better) to raise a family in Sweden than Singapore ('Why one couple is resettling in Sweden'', July 17).
My Singaporean wife and I bought a four-room resale HDB flat in 2000 and repaid the mortgage using CPF funds and government grant in about five years.
I can't think of anywhere else in the developed world where you could own your own home within five years.
My next-door neighbour is a security guard. I would have thought that, if he and his wife and kids can afford to live in a four-room flat, then any employed Singaporean or permanent resident can afford to buy an HDB flat.
There are many things to complain about in Singapore, but HDB housing policy cannot seriously be one of them. Being able to have a roof over everyone's head is a triumph for post-independence Singapore. Further, I am not convinced that Sweden has all the answers to issues like improving quality of life and increasing the population.
I lived there for one year in the 1990s, and from what I recall, Sweden has plenty of social problems of its own and the Swedes I met had plenty of grouses about their country, not least the affordability of their generous social security system.
I too wish Ms Heng success in her uprooting to Sweden.
However, I should add that I met many 'foreign' wives in Sweden, many of whom had great difficulty getting used to the Swedish way of life, which is really quite different even from the rest of northern Europe.
My advice is - don't give up your passport just yet.
Peter Wadeley
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
COST OF LIVING: SHELTER
Where else can you buy your home in 5 years?
I REFER to Tuesday's letter by Senior Minister of State for Finance and Transport, Mrs Lim Hwee Hua, 'Singapore not necessarily costlier than Sweden''.
I too was surprised by the claim by Ms Heng Siew Cheng that it is cheaper (and better) to raise a family in Sweden than Singapore ('Why one couple is resettling in Sweden'', July 17).
My Singaporean wife and I bought a four-room resale HDB flat in 2000 and repaid the mortgage using CPF funds and government grant in about five years.
I can't think of anywhere else in the developed world where you could own your own home within five years.
My next-door neighbour is a security guard. I would have thought that, if he and his wife and kids can afford to live in a four-room flat, then any employed Singaporean or permanent resident can afford to buy an HDB flat.
There are many things to complain about in Singapore, but HDB housing policy cannot seriously be one of them. Being able to have a roof over everyone's head is a triumph for post-independence Singapore. Further, I am not convinced that Sweden has all the answers to issues like improving quality of life and increasing the population.
I lived there for one year in the 1990s, and from what I recall, Sweden has plenty of social problems of its own and the Swedes I met had plenty of grouses about their country, not least the affordability of their generous social security system.
I too wish Ms Heng success in her uprooting to Sweden.
However, I should add that I met many 'foreign' wives in Sweden, many of whom had great difficulty getting used to the Swedish way of life, which is really quite different even from the rest of northern Europe.
My advice is - don't give up your passport just yet.
Peter Wadeley
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Wednesday, July 23, 2008
Palais Renaissance $16m facelift adds sparkle
July 23, 2008
Palais Renaissance $16m facelift adds sparkle
By EMILYN YAP
ADDING more sparkle to the Orchard Road shopping belt - literally -
Palais Renaissance is undergoing a $16 million facelift and will soon
showcase the world's first double-skin glass facade with musical
dancing lights.
The front facade will be ready by November. The dancing lights are
the brainchild of award-winning architectural lighting designer
Hiroyasu Shoji, whose work includes the iconic Mikimoto Ginza
Headquarters in Tokyo.
For his debut project in Singapore, Mr Shoji will programme the three-
dimensional colour-changing LED lights according to his 'Music of
Light' concept where the lights will dance across the glass to the
rhythm of music.
Palais Renaissance was last upgraded in 1995, said a spokesperson
from the mall's owner, City Developments Limited. The latest
makeover 'will help to keep Palais competitive and attractive
compared to the new malls and old malls which are undergoing or have
undergone revamp', she said.
There will be other changes under the upgrading exercise, which is
Palais Renaissance's most major to date.
Renovation has widened the back entrance and given it a stylish,
modern appearance. The interiors, including the glass dome,
balustrades and toilets, will also be spruced up in phases and work
will complete in late 2009.
Palais Renaissance has welcomed three new brands - Croco Mondalli by
Kwanpen, Giuseppe Zanotti and PS Cafe - and the makeover will create
more retail space for the mall, which had 44,786 square feet of net
lettable area before upgrading.
Work has added some 3,778 sq ft so far and PS Cafe is leasing the
space. Another 700 sq ft will be created in the last quarter of 2009
to form a new shop fronting Orchard Road. All shops will remain open
throughout the renovation period.
Together with the revamp, Palais Renaissance will refresh its logo
for a modern clean look, with emphasis given to the word 'Palais'.
'We are confident that Palais will lead the way in revitalising
Orchard Road, and its new look will excite and attract shoppers to
the mall,' said a Club21 spokesman for DKNY, an existing brand in the
mall.
Palais Renaissance $16m facelift adds sparkle
By EMILYN YAP
ADDING more sparkle to the Orchard Road shopping belt - literally -
Palais Renaissance is undergoing a $16 million facelift and will soon
showcase the world's first double-skin glass facade with musical
dancing lights.
The front facade will be ready by November. The dancing lights are
the brainchild of award-winning architectural lighting designer
Hiroyasu Shoji, whose work includes the iconic Mikimoto Ginza
Headquarters in Tokyo.
For his debut project in Singapore, Mr Shoji will programme the three-
dimensional colour-changing LED lights according to his 'Music of
Light' concept where the lights will dance across the glass to the
rhythm of music.
Palais Renaissance was last upgraded in 1995, said a spokesperson
from the mall's owner, City Developments Limited. The latest
makeover 'will help to keep Palais competitive and attractive
compared to the new malls and old malls which are undergoing or have
undergone revamp', she said.
There will be other changes under the upgrading exercise, which is
Palais Renaissance's most major to date.
Renovation has widened the back entrance and given it a stylish,
modern appearance. The interiors, including the glass dome,
balustrades and toilets, will also be spruced up in phases and work
will complete in late 2009.
Palais Renaissance has welcomed three new brands - Croco Mondalli by
Kwanpen, Giuseppe Zanotti and PS Cafe - and the makeover will create
more retail space for the mall, which had 44,786 square feet of net
lettable area before upgrading.
Work has added some 3,778 sq ft so far and PS Cafe is leasing the
space. Another 700 sq ft will be created in the last quarter of 2009
to form a new shop fronting Orchard Road. All shops will remain open
throughout the renovation period.
Together with the revamp, Palais Renaissance will refresh its logo
for a modern clean look, with emphasis given to the word 'Palais'.
'We are confident that Palais will lead the way in revitalising
Orchard Road, and its new look will excite and attract shoppers to
the mall,' said a Club21 spokesman for DKNY, an existing brand in the
mall.
Hotel rates up while occupancy dips
July 23, 2008
Hotel rates up while occupancy dips
ADRs at 5 and 4-star hotels rise 20% and 26% from last year
By NISHA RAMCHANDANI
IN the first five months of this year, average daily rates (ADRs) for
five and four-star hotels in Singapore increased 20 per cent to $331
and 26 per cent to $234 respectively from 2007. But occupancy rates
dipped slightly - down four percentage points from 81.4 per cent in
2007 for five-star hotels, and dropping from 87 per cent to 84 per
cent for four-star establishments.
As such, cost-conscious travellers may opt for the economy tiers if
prices keep rising.
In 2007, Singapore's revenue per available room (Revpar) was the
highest in 10 years, according to Jones Lang LaSalle's (JLL) Hotels'
Digest Asia 2008, with 22.4 per cent Revpar growth in the four-star
category and 18.8 per cent Revpar growth in the five-star category.
Still, ADRs are unlikely to keep growing at the same steep pace, JLL
Hotels said. 'Rates will go up 7-10 per cent over the next year but
there's a fair bit of catch up being played,' said Mike Batchelor,
managing director of Investment Sales Asia for JLL Hotels.
JLL Hotels said that overall, Singapore's tourism outlook is
positive, spurred by the island's increasing MICE capacity and new
developments such as the two integrated resorts. 'New hotel rooms
coming onstream in Singapore would provide a wider spectrum of
lodging to cater to various segments,' said Scott Hetherington,
managing director of JLL Hotels (Asia). About 4,800 rooms will be
added to Singapore's hotel industry in 2009, and another 4,000 or so
in 2010.
The main visitor markets for Singapore are Indonesia, China and
Australia, with 1.9 million, 1.1 million and 770,000 arrivals last
year. India was the market with the biggest growth, jumping 13.7 per
cent to 750,000 arrivals.
The first half of 2009 is expected to be a 'challenging period' for
the industry in South-east Asia, said Mr Hetherington. Hotels
catering to business travellers may suffer. With inflation and high
interest rates, there will be a 'gradual slowdown in some of that
traffic', he said, though things will get better after that. One way
to manage softer demand would be to keep costs low and lock in big
block bookings for next year, he suggested.
While hotel transaction activity quietened down in H108, the pace is
expected to pick up in H2. The investor profile has been changing.
Previously, investors were largely real estate investment trusts
(Reits) and investment funds. Currently, investors tend to be high-
net-worth individuals and sovereign wealth funds. FDI in the region
is expected to grow from US$230 billion in 2007 to almost US$250
billion over the next few years.
India is also expected to see strong growth, boosted by business and
leisure travel. However, there is a shortfall of hotel rooms in major
cities such as Delhi, Mumbai and Bangalore. India needs to add
150,000 new rooms in the next four years, JLL Hotels said.
Hotel rates up while occupancy dips
ADRs at 5 and 4-star hotels rise 20% and 26% from last year
By NISHA RAMCHANDANI
IN the first five months of this year, average daily rates (ADRs) for
five and four-star hotels in Singapore increased 20 per cent to $331
and 26 per cent to $234 respectively from 2007. But occupancy rates
dipped slightly - down four percentage points from 81.4 per cent in
2007 for five-star hotels, and dropping from 87 per cent to 84 per
cent for four-star establishments.
As such, cost-conscious travellers may opt for the economy tiers if
prices keep rising.
In 2007, Singapore's revenue per available room (Revpar) was the
highest in 10 years, according to Jones Lang LaSalle's (JLL) Hotels'
Digest Asia 2008, with 22.4 per cent Revpar growth in the four-star
category and 18.8 per cent Revpar growth in the five-star category.
Still, ADRs are unlikely to keep growing at the same steep pace, JLL
Hotels said. 'Rates will go up 7-10 per cent over the next year but
there's a fair bit of catch up being played,' said Mike Batchelor,
managing director of Investment Sales Asia for JLL Hotels.
JLL Hotels said that overall, Singapore's tourism outlook is
positive, spurred by the island's increasing MICE capacity and new
developments such as the two integrated resorts. 'New hotel rooms
coming onstream in Singapore would provide a wider spectrum of
lodging to cater to various segments,' said Scott Hetherington,
managing director of JLL Hotels (Asia). About 4,800 rooms will be
added to Singapore's hotel industry in 2009, and another 4,000 or so
in 2010.
The main visitor markets for Singapore are Indonesia, China and
Australia, with 1.9 million, 1.1 million and 770,000 arrivals last
year. India was the market with the biggest growth, jumping 13.7 per
cent to 750,000 arrivals.
The first half of 2009 is expected to be a 'challenging period' for
the industry in South-east Asia, said Mr Hetherington. Hotels
catering to business travellers may suffer. With inflation and high
interest rates, there will be a 'gradual slowdown in some of that
traffic', he said, though things will get better after that. One way
to manage softer demand would be to keep costs low and lock in big
block bookings for next year, he suggested.
While hotel transaction activity quietened down in H108, the pace is
expected to pick up in H2. The investor profile has been changing.
Previously, investors were largely real estate investment trusts
(Reits) and investment funds. Currently, investors tend to be high-
net-worth individuals and sovereign wealth funds. FDI in the region
is expected to grow from US$230 billion in 2007 to almost US$250
billion over the next few years.
India is also expected to see strong growth, boosted by business and
leisure travel. However, there is a shortfall of hotel rooms in major
cities such as Delhi, Mumbai and Bangalore. India needs to add
150,000 new rooms in the next four years, JLL Hotels said.
Property rates here leave US execs grumpy
July 23, 2008
Property rates here leave US execs grumpy
New high of 74% unhappy with cost of housing and office leases: survey
By JOYCE HOOI
AMERICAN executives' grouses about the cost of housing and office
leases here hit a new high this year, according to the latest Asean
Business Outlook Survey by the American Chamber of Commerce (AmCham)
in Singapore.
In its report, 74 per cent of American senior executives surveyed
indicated that they were either 'dissatisfied' or 'extremely
dissatisfied' with both the cost of housing and office leases.
While these costs have been a long-standing grievance for expatriates
in Singapore, this year's figures are a significant jump from 2007's
numbers, up from 61 per cent and 45 per cent who were unhappy about
housing and office leasing costs, respectively.
While 2007 was a brutal year for average rental prices, with housing
rental rates increasing 41 per cent and office lease rates increasing
52 per cent according to Knight Frank's director (consultancy and
research) Nicholas Mak, there might be some respite from soaring
property rentals this year.
'Over the six-month period in 2008, housing rental prices have gone
up close to 10 per cent and I expect the increase in rental rates to
slow down over the rest of 2008, to 10-15 per cent by the end of the
year,' said Mr Mak.
Office lease rates, which have gone up by 12 per cent over the six-
month period of 2008, are also expected to grow at a slower pace this
year.
Mr Mak attributes this to the number of arriving expatriates slowing
down and a job market that is growing at a slower rate.
American executives based in Singapore also had the gloomiest outlook
on the effects of a US recession on business in Asia compared to
their counterparts in other Asean countries.
Some 80 per cent of the respondents in Singapore expect the spillover
from a US recession to hurt business in Asia, compared to 66 per cent
in Malaysia and even 77 per cent in inflation-stricken Vietnam.
The survey, carried out in Singapore, Malaysia, Vietnam, the
Philippines and Thailand, included 535 respondents overall, with 130
of them from Singapore.
While respondents in Singapore, Malaysia and the Philippines have
adjusted their regional profit expectations downwards, they were also
the least cheerful in Singapore with only 53 per cent of American
executives in Singapore expecting increased profits in Asean for
2008, compared to 58 per cent and 57 per cent in Malaysia and the
Philippines, respectively.
Sentiments about expansion plans for their firms in Asean also took a
beating in Singapore with 71 per cent saying that they plan to expand
in Asean within the next two years, compared to 82 per cent a year
ago.
Respondents in Vietnam were the most upbeat overall, with 72 per cent
of Vietnam-based respondents expecting business expansion in Asean to
happen over the next two years.
Property rates here leave US execs grumpy
New high of 74% unhappy with cost of housing and office leases: survey
By JOYCE HOOI
AMERICAN executives' grouses about the cost of housing and office
leases here hit a new high this year, according to the latest Asean
Business Outlook Survey by the American Chamber of Commerce (AmCham)
in Singapore.
In its report, 74 per cent of American senior executives surveyed
indicated that they were either 'dissatisfied' or 'extremely
dissatisfied' with both the cost of housing and office leases.
While these costs have been a long-standing grievance for expatriates
in Singapore, this year's figures are a significant jump from 2007's
numbers, up from 61 per cent and 45 per cent who were unhappy about
housing and office leasing costs, respectively.
While 2007 was a brutal year for average rental prices, with housing
rental rates increasing 41 per cent and office lease rates increasing
52 per cent according to Knight Frank's director (consultancy and
research) Nicholas Mak, there might be some respite from soaring
property rentals this year.
'Over the six-month period in 2008, housing rental prices have gone
up close to 10 per cent and I expect the increase in rental rates to
slow down over the rest of 2008, to 10-15 per cent by the end of the
year,' said Mr Mak.
Office lease rates, which have gone up by 12 per cent over the six-
month period of 2008, are also expected to grow at a slower pace this
year.
Mr Mak attributes this to the number of arriving expatriates slowing
down and a job market that is growing at a slower rate.
American executives based in Singapore also had the gloomiest outlook
on the effects of a US recession on business in Asia compared to
their counterparts in other Asean countries.
Some 80 per cent of the respondents in Singapore expect the spillover
from a US recession to hurt business in Asia, compared to 66 per cent
in Malaysia and even 77 per cent in inflation-stricken Vietnam.
The survey, carried out in Singapore, Malaysia, Vietnam, the
Philippines and Thailand, included 535 respondents overall, with 130
of them from Singapore.
While respondents in Singapore, Malaysia and the Philippines have
adjusted their regional profit expectations downwards, they were also
the least cheerful in Singapore with only 53 per cent of American
executives in Singapore expecting increased profits in Asean for
2008, compared to 58 per cent and 57 per cent in Malaysia and the
Philippines, respectively.
Sentiments about expansion plans for their firms in Asean also took a
beating in Singapore with 71 per cent saying that they plan to expand
in Asean within the next two years, compared to 82 per cent a year
ago.
Respondents in Vietnam were the most upbeat overall, with 72 per cent
of Vietnam-based respondents expecting business expansion in Asean to
happen over the next two years.
More public sector projects put on hold to ease squeeze
July 23, 2008
More public sector projects put on hold to ease squeeze
Move will free up resources for integrated resorts, other key projects
By UMA SHANKARI
(SINGAPORE) The government will postpone construction of another $1.7
billion worth of public sector projects - on top of some $3 billion
worth that have already been put off - as it looks to manage rising
construction costs.
With this move, the government is deferring a total of $4.7 billion
worth of public sector construction projects to 2010 and beyond.
'The additional deferment will allow the existing construction
capacity and resources to be channelled towards the timely delivery
of some big projects such as the integrated resorts, Marina Business
Financial Centre and the downtown MRT line,' said regulatory body
Building and Construction Authority (BCA) in a statement yesterday.
Most of these projects are expected to be completed around end-2009.
The construction resources freed up at that time would then be
available for the deferred public sector projects, therefore
achieving a better spread of construction resources and activities
beyond 2009, BCA said.
Projects postponed in this round include the main building of the
proposed Jurong General Hospital and upgrading works at schools.
Developers and analysts BT spoke to were hopeful that the
government's response could help to slow down the increase in
construction costs.
Construction costs shot up some 20 to 30 per cent in 2007. And in the
first quarter of this year, building costs rose by another 3-5 per
cent, Minister for National Development Mah Bow Tan said in a
statement.
The building boom also means that contractors were in short supply,
with some private developers here reporting difficulties in hiring
contractors and sub-contractors.
The new postponements could therefore be helpful in keeping the
sector on a more sustainable growth path, said Citigroup economist
Kit Wei Zheng.
'Anecdotal evidence suggests that some contractors may have even
refused to take up contracts, because of concerns that rising costs
would wipe out initially projected profits or even result in losses,'
he said.
However, there were some concerns that the reduction in government
spending was coming at a time when the sector, and the overall
economy, is seeing a slowdown.
'To some extent, given the downside risks to growth, one would have
thought that perhaps the government may have contemplated boosting
construction demand to shore up growth,' said Mr Kit.
But he added that with the sector suffering from capacity
constraints, it is not clear that GDP growth would have received a
significant boost even if the government had increased construction
demand.
Chua Hak Bin, chief Asian strategist at Deutsche Bank Private Wealth
Management, similarly pointed out that the outlook for the
construction sector is 'not as rosy as it was a year ago'.
Growth in the construction sector is tapering off. Growth slowed to
16.9 per cent in Q1 2008 and then to 15.2 per cent in Q2 2008. By
contrast, in Q4 2007, the sector grew by 24.3 per cent.
Dr Chua, however, said that the new deferments could help reduce
current supply bottlenecks.
Before yesterday's move, the government had announced two rounds of
construction postponements for public sector projects, in November
2007 and February 2008. Projects put off included the Ministry of
Health's National Addiction Management Centre and part of the Changi
Prison Complex.
For the whole of this year, construction demand is likely to come in
within current estimates of $23-$27 billion, BCA said.
More public sector projects put on hold to ease squeeze
Move will free up resources for integrated resorts, other key projects
By UMA SHANKARI
(SINGAPORE) The government will postpone construction of another $1.7
billion worth of public sector projects - on top of some $3 billion
worth that have already been put off - as it looks to manage rising
construction costs.
With this move, the government is deferring a total of $4.7 billion
worth of public sector construction projects to 2010 and beyond.
'The additional deferment will allow the existing construction
capacity and resources to be channelled towards the timely delivery
of some big projects such as the integrated resorts, Marina Business
Financial Centre and the downtown MRT line,' said regulatory body
Building and Construction Authority (BCA) in a statement yesterday.
Most of these projects are expected to be completed around end-2009.
The construction resources freed up at that time would then be
available for the deferred public sector projects, therefore
achieving a better spread of construction resources and activities
beyond 2009, BCA said.
Projects postponed in this round include the main building of the
proposed Jurong General Hospital and upgrading works at schools.
Developers and analysts BT spoke to were hopeful that the
government's response could help to slow down the increase in
construction costs.
Construction costs shot up some 20 to 30 per cent in 2007. And in the
first quarter of this year, building costs rose by another 3-5 per
cent, Minister for National Development Mah Bow Tan said in a
statement.
The building boom also means that contractors were in short supply,
with some private developers here reporting difficulties in hiring
contractors and sub-contractors.
The new postponements could therefore be helpful in keeping the
sector on a more sustainable growth path, said Citigroup economist
Kit Wei Zheng.
'Anecdotal evidence suggests that some contractors may have even
refused to take up contracts, because of concerns that rising costs
would wipe out initially projected profits or even result in losses,'
he said.
However, there were some concerns that the reduction in government
spending was coming at a time when the sector, and the overall
economy, is seeing a slowdown.
'To some extent, given the downside risks to growth, one would have
thought that perhaps the government may have contemplated boosting
construction demand to shore up growth,' said Mr Kit.
But he added that with the sector suffering from capacity
constraints, it is not clear that GDP growth would have received a
significant boost even if the government had increased construction
demand.
Chua Hak Bin, chief Asian strategist at Deutsche Bank Private Wealth
Management, similarly pointed out that the outlook for the
construction sector is 'not as rosy as it was a year ago'.
Growth in the construction sector is tapering off. Growth slowed to
16.9 per cent in Q1 2008 and then to 15.2 per cent in Q2 2008. By
contrast, in Q4 2007, the sector grew by 24.3 per cent.
Dr Chua, however, said that the new deferments could help reduce
current supply bottlenecks.
Before yesterday's move, the government had announced two rounds of
construction postponements for public sector projects, in November
2007 and February 2008. Projects put off included the Ministry of
Health's National Addiction Management Centre and part of the Changi
Prison Complex.
For the whole of this year, construction demand is likely to come in
within current estimates of $23-$27 billion, BCA said.
Soilbuild is top bidder for Woodlands site
July 23, 2008
Soilbuild is top bidder for Woodlands site
It offers $13.61m for industrial site; may build landed and/or
flatted factories
By KALPANA RASHIWALA
SOILBUILD Group Holdings yesterday emerged as top bidder in a state
tender for a 60-year leasehold industrial site at Woodlands, offering
$13.61 million or $30.10 per square foot (psf) of potential gross
floor area. This was almost 60 per cent above the next highest bid of
$18.91 psf per plot ratio (psf ppr) from Zap Piling.
BT understands that Soilbuild may be looking at various permutations,
including developing two or three-storey landed factories, a multi-
storey flatted-factory/ramp-up factory development or a combination,
depending on what best suits the market's needs.
Soilbuild has developed landed factories, each with its own backyard,
in the Kranji and Pioneer Road areas. 'These are popular, especially
among SMEs,' an industry player said.
Colliers International managing director (Singapore and North Asia)
Dennis Yeo said: 'With construction costs at today's high levels, it
may be a better option to build landed factories, even though this
means Soilbuild will not be able to develop the maximum gross floor
area allowed for the site. Landed factories are in greater demand.'
He estimated that Soilbuild should be able to sell a new 60-year
leasehold development - landed factories or high-rise - for about
$250 psf of saleable area. BT understands that Soilbuild's breakeven
cost could be about $150-170 psf of saleable area for landed
factories and $180-190 psf for a high-rise project.
Yesterday's tender for the plot at Woodlands Industrial Park E5,
conducted by Urban Redevelopment Authority, drew four bids. SP
Development, a unit of Singapore Piling & Civil Engineering, bid
$17.92 psf ppr. Boon Keng Development, a property developer and
construction firm controlled by Lim Kim Hong and Lim Huixing, offered
$13.69 psf ppr for the 180,835 sq ft plot.
With a 2.5 plot ratio, the site can be developed into a project with
a maximum gross floor area of 452,086 sq ft.
The plot is zoned Business 2, which means that it can be developed
for a wide range of uses such as clean/light industry, general
industry and warehousing.
Soilbuild is top bidder for Woodlands site
It offers $13.61m for industrial site; may build landed and/or
flatted factories
By KALPANA RASHIWALA
SOILBUILD Group Holdings yesterday emerged as top bidder in a state
tender for a 60-year leasehold industrial site at Woodlands, offering
$13.61 million or $30.10 per square foot (psf) of potential gross
floor area. This was almost 60 per cent above the next highest bid of
$18.91 psf per plot ratio (psf ppr) from Zap Piling.
BT understands that Soilbuild may be looking at various permutations,
including developing two or three-storey landed factories, a multi-
storey flatted-factory/ramp-up factory development or a combination,
depending on what best suits the market's needs.
Soilbuild has developed landed factories, each with its own backyard,
in the Kranji and Pioneer Road areas. 'These are popular, especially
among SMEs,' an industry player said.
Colliers International managing director (Singapore and North Asia)
Dennis Yeo said: 'With construction costs at today's high levels, it
may be a better option to build landed factories, even though this
means Soilbuild will not be able to develop the maximum gross floor
area allowed for the site. Landed factories are in greater demand.'
He estimated that Soilbuild should be able to sell a new 60-year
leasehold development - landed factories or high-rise - for about
$250 psf of saleable area. BT understands that Soilbuild's breakeven
cost could be about $150-170 psf of saleable area for landed
factories and $180-190 psf for a high-rise project.
Yesterday's tender for the plot at Woodlands Industrial Park E5,
conducted by Urban Redevelopment Authority, drew four bids. SP
Development, a unit of Singapore Piling & Civil Engineering, bid
$17.92 psf ppr. Boon Keng Development, a property developer and
construction firm controlled by Lim Kim Hong and Lim Huixing, offered
$13.69 psf ppr for the 180,835 sq ft plot.
With a 2.5 plot ratio, the site can be developed into a project with
a maximum gross floor area of 452,086 sq ft.
The plot is zoned Business 2, which means that it can be developed
for a wide range of uses such as clean/light industry, general
industry and warehousing.
First Reit's Q2 DPU rises 15.8% to 1.91 cents
July 23, 2008
First Reit's Q2 DPU rises 15.8% to 1.91 cents
FIRST Real Estate Investment Trust (First Reit) said yesterday that
its distributable amount for the second quarter ended June 30 rose
16.1 per cent to $5.2 million from a year earlier.
This translates to distribution per unit (DPU) of 1.91 cents, up 15.8
per cent, said the Reit's manager, Bowsprit Capital Corporation.
For the half-year ended June 2008, First Reit's distributable amount
and DPU were $10.26 million and 3.76 cents respectively.
Based on annualised DPU of 7.62 cents and a unit closing price of
70.5 cents on July 18, First Reit's distribution yield is 10.81 per
cent - one of the highest among Singapore Reits, stocks and
government bonds, Bowsprit noted. The units closed half a cent higher
yesterday at 72 cents.
Driven by rent increases from its four Indonesian properties, as well
as rental income from its four Singapore properties acquired in 2007,
First Reit's gross revenue rose 15 per cent in Q2 to $7.5 million,
lifting its half-year gross revenue 19.3 per cent to $15 million.
First Reit is Singapore's first healthcare Reit. It aims to raise
assets under management (AUM) to $500 million by 2009 from the
current $326 million. 'First Reit will continue to seek opportunities
in the region including Singapore, Indonesia and China to raise its
AUM,' said Bowsprit. 'We have been selective in our acquisitions as
we want to ensure that our portfolio consists of only quality and
good-yielding healthcare assets that will provide consistent,
sustainable returns to unit holders.'
Apart from portfolio expansion, First Reit intends to improve the
income-generating capacity of its existing healthcare properties
through asset enhancement and by working with tenants to upgrade
services.
Despite current uncertain economic conditions, Bowsprit said that it
is 'optimistic' that First Reit will perform well in the second half
of the year, as its revenue is largely derived from long-term rental
leases. The current economic environment is also an opportunity for
making better acquisitions.
First Reit's Q2 DPU rises 15.8% to 1.91 cents
FIRST Real Estate Investment Trust (First Reit) said yesterday that
its distributable amount for the second quarter ended June 30 rose
16.1 per cent to $5.2 million from a year earlier.
This translates to distribution per unit (DPU) of 1.91 cents, up 15.8
per cent, said the Reit's manager, Bowsprit Capital Corporation.
For the half-year ended June 2008, First Reit's distributable amount
and DPU were $10.26 million and 3.76 cents respectively.
Based on annualised DPU of 7.62 cents and a unit closing price of
70.5 cents on July 18, First Reit's distribution yield is 10.81 per
cent - one of the highest among Singapore Reits, stocks and
government bonds, Bowsprit noted. The units closed half a cent higher
yesterday at 72 cents.
Driven by rent increases from its four Indonesian properties, as well
as rental income from its four Singapore properties acquired in 2007,
First Reit's gross revenue rose 15 per cent in Q2 to $7.5 million,
lifting its half-year gross revenue 19.3 per cent to $15 million.
First Reit is Singapore's first healthcare Reit. It aims to raise
assets under management (AUM) to $500 million by 2009 from the
current $326 million. 'First Reit will continue to seek opportunities
in the region including Singapore, Indonesia and China to raise its
AUM,' said Bowsprit. 'We have been selective in our acquisitions as
we want to ensure that our portfolio consists of only quality and
good-yielding healthcare assets that will provide consistent,
sustainable returns to unit holders.'
Apart from portfolio expansion, First Reit intends to improve the
income-generating capacity of its existing healthcare properties
through asset enhancement and by working with tenants to upgrade
services.
Despite current uncertain economic conditions, Bowsprit said that it
is 'optimistic' that First Reit will perform well in the second half
of the year, as its revenue is largely derived from long-term rental
leases. The current economic environment is also an opportunity for
making better acquisitions.
Govt defers projects worth $1.7b
July 23, 2008
Govt defers projects worth $1.7b
Move to ease pressure on building costs
By Joyce Teo, Property Correspondent
THE Government is deferring another $1.7 billion of public sector
construction projects to ease pressure on red-hot building costs in
the next two years.
This is the third time since November that public projects have been
postponed amid high demand for building contractors and materials.
A total of $4.7 billion of public sector projects will now be pushed
back to 2010 and beyond, the Building and Construction Authority
(BCA) said in a statement.
'That's good news,' said the chief executive of property firm
Overseas Union Enterprise, Mr Thio Gim Hock. 'Construction costs have
more than doubled in the past year. It's hard to find contractors to
bid for a job. When I tender, a lot of them decline because they are
too busy.'
The latest move means projects such as the Jurong General Hospital
will be deferred to 2010, although the hospital will still be ready
and open as scheduled by 2015.
Other delayed projects include less urgent improvement works, but
public housing and upgrading programmes will not be affected.
Public projects put on hold
Some of the $1.7 billion worth of projects to be postponed:
The move will allow construction resources to be used to ensure the
timely delivery of big projects such as the integrated resorts,
Marina Bay Financial Centre and the Downtown MRT line. Most should be
finished by late next year.
The BCA also said that the resources freed up then can be used later
for the deferred projects, ensuring a better spread of construction
resources beyond next year.
Market experts said on average, costs have risen 20 to 35 per cent in
the past year.
Mr Seah Choo Meng, executive chairman of construction consultancy
Davis Langdon & Seah, was upbeat about the latest move. 'It will not
bring costs down but it will lessen the pressure on existing
resources.'
Singapore could now be among the world's most expensive nations in
terms of construction costs, though this is not likely to last, said
Mr Jackson Yap, CEO of developer cum construction firm United
Engineers.
The total value of construction projects here is forecast at $23
billion to $27 billion this year, compared to $24.5 billion last
year, and is set to stay high next year, BCA said. It is a far cry
from 2003 and 2004, when the figure was just $10 billion.
Last November, the Government took what was then a rare step of
deferring $2 billion worth of projects. Then in February, it deferred
another $1 billion worth of projects.
Dr Chua Hak Bin, Asian strategist at Deutsche Bank Private Wealth
Management, is not convinced the latest deferment is needed as
building growth has eased.
'Construction orders will likely continue coming off, given a
softening residential and commercial property market,' he said,
adding that the Government may need to consider bringing forward
deferred projects in a slowdown.
Some private projects, particularly residential, may also be delayed,
said Mr Seah. 'While this year's rate of escalation in construction
costs is expected to be in the double digits, it may be affected by
the potentially weaker economic outlook in the region.'
Govt defers projects worth $1.7b
Move to ease pressure on building costs
By Joyce Teo, Property Correspondent
THE Government is deferring another $1.7 billion of public sector
construction projects to ease pressure on red-hot building costs in
the next two years.
This is the third time since November that public projects have been
postponed amid high demand for building contractors and materials.
A total of $4.7 billion of public sector projects will now be pushed
back to 2010 and beyond, the Building and Construction Authority
(BCA) said in a statement.
'That's good news,' said the chief executive of property firm
Overseas Union Enterprise, Mr Thio Gim Hock. 'Construction costs have
more than doubled in the past year. It's hard to find contractors to
bid for a job. When I tender, a lot of them decline because they are
too busy.'
The latest move means projects such as the Jurong General Hospital
will be deferred to 2010, although the hospital will still be ready
and open as scheduled by 2015.
Other delayed projects include less urgent improvement works, but
public housing and upgrading programmes will not be affected.
Public projects put on hold
Some of the $1.7 billion worth of projects to be postponed:
The move will allow construction resources to be used to ensure the
timely delivery of big projects such as the integrated resorts,
Marina Bay Financial Centre and the Downtown MRT line. Most should be
finished by late next year.
The BCA also said that the resources freed up then can be used later
for the deferred projects, ensuring a better spread of construction
resources beyond next year.
Market experts said on average, costs have risen 20 to 35 per cent in
the past year.
Mr Seah Choo Meng, executive chairman of construction consultancy
Davis Langdon & Seah, was upbeat about the latest move. 'It will not
bring costs down but it will lessen the pressure on existing
resources.'
Singapore could now be among the world's most expensive nations in
terms of construction costs, though this is not likely to last, said
Mr Jackson Yap, CEO of developer cum construction firm United
Engineers.
The total value of construction projects here is forecast at $23
billion to $27 billion this year, compared to $24.5 billion last
year, and is set to stay high next year, BCA said. It is a far cry
from 2003 and 2004, when the figure was just $10 billion.
Last November, the Government took what was then a rare step of
deferring $2 billion worth of projects. Then in February, it deferred
another $1 billion worth of projects.
Dr Chua Hak Bin, Asian strategist at Deutsche Bank Private Wealth
Management, is not convinced the latest deferment is needed as
building growth has eased.
'Construction orders will likely continue coming off, given a
softening residential and commercial property market,' he said,
adding that the Government may need to consider bringing forward
deferred projects in a slowdown.
Some private projects, particularly residential, may also be delayed,
said Mr Seah. 'While this year's rate of escalation in construction
costs is expected to be in the double digits, it may be affected by
the potentially weaker economic outlook in the region.'
Prime space for art at the heart of Orchard
July 23, 2008
Prime space for art at the heart of Orchard
By Michelle Tay
IT'S art for art's sake at the swanky new mall being built at Orchard
Turn, thanks to a decision to devote a large chunk of pricey retail
space to a gallery.
The gallery on the fourth floor of Ion Orchard will feature
contemporary art and design by established and emerging artists from
Singapore and the region.
At the unveiling of Ion's retail show suite yesterday, the chief
executive of mall developer Orchard Turn Developments dismissed the
revenue loss from giving up 5,600 sq ft of retail space that could
command up to $80 per sq ft.
Instead, Ms Soon Su Lin said the move would allow the mall to
contribute to the local and international art scene.
Ion Art, as the gallery will be called, will also be a venue partner
for art festivals, such as the Singapore Biennale.
Ion Orchard, which has leased half of its 650,000 sq ft net lettable
area so far, also aims to take art appreciation to the skies and
street.
The gallery will be linked to Ion Sky, a double-storey viewing space
on the top two levels of the 56-storey tower - boasting 46
residential and eight commercial floors - that will be completed in
2010.
And an LED screen on the Orchard Road-facing facade will feature an
ever-changing display of digital art.
Ion Orchard is not alone in the race to light up Singapore's premier
shopping strip.
The upmarket Palais Renaissance has begun a $16 million upgrade to
install a double-skin glass facade - also with dancing LED lights.
Owner City Developments (CDL) said yesterday that the project, helmed
by Japanese designers, will involve three-dimensional LED lights
changing colours to 'look like they are dancing artistically across
the glass to music'.
The facade will be completed by November. CDL is also giving the
dated mall's interiors a facelift, to be completed 'in phases' next
year.
Prime space for art at the heart of Orchard
By Michelle Tay
IT'S art for art's sake at the swanky new mall being built at Orchard
Turn, thanks to a decision to devote a large chunk of pricey retail
space to a gallery.
The gallery on the fourth floor of Ion Orchard will feature
contemporary art and design by established and emerging artists from
Singapore and the region.
At the unveiling of Ion's retail show suite yesterday, the chief
executive of mall developer Orchard Turn Developments dismissed the
revenue loss from giving up 5,600 sq ft of retail space that could
command up to $80 per sq ft.
Instead, Ms Soon Su Lin said the move would allow the mall to
contribute to the local and international art scene.
Ion Art, as the gallery will be called, will also be a venue partner
for art festivals, such as the Singapore Biennale.
Ion Orchard, which has leased half of its 650,000 sq ft net lettable
area so far, also aims to take art appreciation to the skies and
street.
The gallery will be linked to Ion Sky, a double-storey viewing space
on the top two levels of the 56-storey tower - boasting 46
residential and eight commercial floors - that will be completed in
2010.
And an LED screen on the Orchard Road-facing facade will feature an
ever-changing display of digital art.
Ion Orchard is not alone in the race to light up Singapore's premier
shopping strip.
The upmarket Palais Renaissance has begun a $16 million upgrade to
install a double-skin glass facade - also with dancing LED lights.
Owner City Developments (CDL) said yesterday that the project, helmed
by Japanese designers, will involve three-dimensional LED lights
changing colours to 'look like they are dancing artistically across
the glass to music'.
The facade will be completed by November. CDL is also giving the
dated mall's interiors a facelift, to be completed 'in phases' next
year.
Buzz on Orchard Rd as Ion rents hit $80 psf
July 23, 2008
Buzz on Orchard Rd as Ion rents hit $80 psf
Luxury retail rentals enter unfamiliar territory with new benchmark
By ARTHUR SIM
(SINGAPORE) A new benchmark for retail rents on Orchard Road has been
set at Ion Orchard with tenants paying a base rent of up to $80 psf
per month. This is 60-80 per cent higher than the current average
prime, first-storey Orchard Road rents.
Orchard Turn Developments CEO Soon Su Lin also revealed that Ion
Orchard, a joint project of CapitaLand and Sun Hung Kai Properties,
is now 50 per cent leased, with more than 30 per cent of the
retailers setting up flagship stores.
'We have to-date, 45 confirmed new-to-market brands and newly created
concepts by established operators,' she added.
Ms Soon was speaking at a press conference to announce its newest
tenants as well as to reveal Ion Art - an art and design programme
which will introduce new and multi-media art into the 'integrated
mall experience'.
With less than a year to go before Ion Orchard opens, Ms Soon said
that the construction is still on schedule. Ms Soon did not reveal a
fixed date for completion, but said that the mall will open in time
for retailers to showcase their Spring/Summer '09 collections.
While luxury retailers at Ion Orchard like Louis Vuitton and Prada
are going to have to sell a lot of handbags and shoes to cover the
luxury rents, sources say that $80 psf appears to be the new asking
rent for prime space at other new malls including Orchard Central.
DTZ Debenham Tie Leung senior director (research) Chua Chor Hoon
believes that while it appears that a new benchmark has been
set, 'the $80 psf rental rate is likely to apply only for very prime
shop units on the ground floor with good frontage'.
According to DTZ, the current average for prime, first-storey retail
space in Orchard Road/Scotts Road area is $42.40 psf per month and
$23.80 psf per month for prime upper storey retail space.
But Ms Chua did add: 'For a new mall like Ion, sitting on top of the
MRT station and sitting at a busy junction, the average rent would be
higher.'
Rents at Ion Orchard do start at $20 psf per month and this is likely
to be for units at the basement levels, which will include F&B
outlets and bridge brands.
Still, Knight Frank director (research and consultancy) Nicholas Mak
says that even at $20 psf per month, some tenants, especially those
in F&B, could find the going tough.
As such, Mr Mak notes that while the Ion Orchard is 50 per cent
leased, 'Some could ask if the glass is half full or half empty'.
According to Knight Frank, current prime, first-storey rents are
about $49 psf per month on Orchard Road and Mr Mak adds that only big
luxury fashion and jewellery stores can afford rents at this level.
Mr Mak does, however, point out that not all retailers need to be
location specific. 'Mid- and mass-market brands can go to any of the
new malls coming up along Orchard Road. There will also be landlords
competing for certain types of tenants.'
Ms Chua adds that retailers will need to weigh the pros and cons of
where they choose to locate their shops. 'The positioning of the
mall, variety and type of tenants, advertisements, events,
promotions, layout and design concept of the mall will help to pull
in crowds,' she says, adding: 'Tenants that require high shopper
traffic will mainly be the ones who will not mind paying the higher
rentals or a percentage of their turnover, if the traffic volume
would translate into higher revenue for them.'
Buzz on Orchard Rd as Ion rents hit $80 psf
Luxury retail rentals enter unfamiliar territory with new benchmark
By ARTHUR SIM
(SINGAPORE) A new benchmark for retail rents on Orchard Road has been
set at Ion Orchard with tenants paying a base rent of up to $80 psf
per month. This is 60-80 per cent higher than the current average
prime, first-storey Orchard Road rents.
Orchard Turn Developments CEO Soon Su Lin also revealed that Ion
Orchard, a joint project of CapitaLand and Sun Hung Kai Properties,
is now 50 per cent leased, with more than 30 per cent of the
retailers setting up flagship stores.
'We have to-date, 45 confirmed new-to-market brands and newly created
concepts by established operators,' she added.
Ms Soon was speaking at a press conference to announce its newest
tenants as well as to reveal Ion Art - an art and design programme
which will introduce new and multi-media art into the 'integrated
mall experience'.
With less than a year to go before Ion Orchard opens, Ms Soon said
that the construction is still on schedule. Ms Soon did not reveal a
fixed date for completion, but said that the mall will open in time
for retailers to showcase their Spring/Summer '09 collections.
While luxury retailers at Ion Orchard like Louis Vuitton and Prada
are going to have to sell a lot of handbags and shoes to cover the
luxury rents, sources say that $80 psf appears to be the new asking
rent for prime space at other new malls including Orchard Central.
DTZ Debenham Tie Leung senior director (research) Chua Chor Hoon
believes that while it appears that a new benchmark has been
set, 'the $80 psf rental rate is likely to apply only for very prime
shop units on the ground floor with good frontage'.
According to DTZ, the current average for prime, first-storey retail
space in Orchard Road/Scotts Road area is $42.40 psf per month and
$23.80 psf per month for prime upper storey retail space.
But Ms Chua did add: 'For a new mall like Ion, sitting on top of the
MRT station and sitting at a busy junction, the average rent would be
higher.'
Rents at Ion Orchard do start at $20 psf per month and this is likely
to be for units at the basement levels, which will include F&B
outlets and bridge brands.
Still, Knight Frank director (research and consultancy) Nicholas Mak
says that even at $20 psf per month, some tenants, especially those
in F&B, could find the going tough.
As such, Mr Mak notes that while the Ion Orchard is 50 per cent
leased, 'Some could ask if the glass is half full or half empty'.
According to Knight Frank, current prime, first-storey rents are
about $49 psf per month on Orchard Road and Mr Mak adds that only big
luxury fashion and jewellery stores can afford rents at this level.
Mr Mak does, however, point out that not all retailers need to be
location specific. 'Mid- and mass-market brands can go to any of the
new malls coming up along Orchard Road. There will also be landlords
competing for certain types of tenants.'
Ms Chua adds that retailers will need to weigh the pros and cons of
where they choose to locate their shops. 'The positioning of the
mall, variety and type of tenants, advertisements, events,
promotions, layout and design concept of the mall will help to pull
in crowds,' she says, adding: 'Tenants that require high shopper
traffic will mainly be the ones who will not mind paying the higher
rentals or a percentage of their turnover, if the traffic volume
would translate into higher revenue for them.'
No race bias for online rental ads
No race bias for online rental ads
Errant property agents could face the sack, says head of real-estate firm PropNex.
Mon, Jul 21, 2008
my paper
by Marcel Lee Pereira
PROPERTY agents who post advertisements online that discriminate against a particular race could be sacked, said the head of a real-estate firm here.
PropNex chief executive Mohamed Ismail told my paper that he would send out a circular to all the firm's 8,000 agents at the end of the month to encourage them to not post online ads that 'blatantly say no to certain races' when it comes to renting a flat.
Mr Ismail was speaking in the wake of a letter to The Straits Times' Forum page this month, which pointed out that some online rental ads for flats seemed to discriminate against certain races or nationalities.
He added: 'This is to raise awareness. We have to be more sensitive. If we know there are agents still doing it, then we will counsel them and find out why. If they persist, their services may have to be terminated. 'This does not go well with our multi- racial society and such statements should not be advertised.'
my paper visited property classifieds website, www.sg-house.com, last week and spotted over 20 posts which appeared discriminatory. They were posted by agents from various property firms.
Some phrases used in the advertisements included, 'Not eligible to Indian' and 'Sorry to Indian and China'. Similar posts were seen on another classifieds site, www.adpost.com/sg.
Several property agents who placed the ads said they state races or nationalities at flat owners' request. They said owners generally do not discriminate based on race, but are entitled to decide on who they rent their properties to. For instance, a criterion could be a tenant's diet.
Asked why racial preference was stated in ads, instead of told discreetly to applicants, one agent, who declined to be named, said: 'It's more practical. If the landlord doesn't want to rent to Indian nationals, for example, I'll have to screen the majority of my calls as 80 per cent of my clients are Indians.'
But Mr Ismail countered: 'Such ads should not be displayed so openly. You can always say the owner is looking for someone who will not do Asian cooking, for example. That's very tactful.'
HSR Property Group's executive director Eric Cheng said the firm has a policy to 'do unto others what you want others to do unto you, so we should not be placing such ads'.
'Still, no company can guarantee that, because there are so many ads you can place online.'
Associate Professor Eleanor Wong, chairman of the Advertising Standards Authority of Singapore (ASAS), the self-regulating body which looks into the content of ads here, said ASAS is firmly against ads that discriminate solely on the basis of race or ethnicity.
Under the Singapore Code of Advertising Practice (Scap), ads should not discriminate against any ethnic group or religion, said Prof Wong.
She added: 'Here, there is some ambiguity because the potential landlord seems to be targeting a certain group of foreign nationals rather than a racial group per se.'
Owners of websites should ensure that the advertisements posted there comply with Scap, but ASAS can ask the webmaster to remove the post or amend the phrasing, as well as contact the person who made the post.
Tenants who spoke to my paper had encountered such ads when looking for a rental flat.
Said business analyst Kishor Autee, 28, an Indian national renting a flat in Ang Mo Kio: 'To anybody who comes looking for a place to rent, the first question asked is which race, and that gives a very bad impression of Singapore.'
Errant property agents could face the sack, says head of real-estate firm PropNex.
Mon, Jul 21, 2008
my paper
by Marcel Lee Pereira
PROPERTY agents who post advertisements online that discriminate against a particular race could be sacked, said the head of a real-estate firm here.
PropNex chief executive Mohamed Ismail told my paper that he would send out a circular to all the firm's 8,000 agents at the end of the month to encourage them to not post online ads that 'blatantly say no to certain races' when it comes to renting a flat.
Mr Ismail was speaking in the wake of a letter to The Straits Times' Forum page this month, which pointed out that some online rental ads for flats seemed to discriminate against certain races or nationalities.
He added: 'This is to raise awareness. We have to be more sensitive. If we know there are agents still doing it, then we will counsel them and find out why. If they persist, their services may have to be terminated. 'This does not go well with our multi- racial society and such statements should not be advertised.'
my paper visited property classifieds website, www.sg-house.com, last week and spotted over 20 posts which appeared discriminatory. They were posted by agents from various property firms.
Some phrases used in the advertisements included, 'Not eligible to Indian' and 'Sorry to Indian and China'. Similar posts were seen on another classifieds site, www.adpost.com/sg.
Several property agents who placed the ads said they state races or nationalities at flat owners' request. They said owners generally do not discriminate based on race, but are entitled to decide on who they rent their properties to. For instance, a criterion could be a tenant's diet.
Asked why racial preference was stated in ads, instead of told discreetly to applicants, one agent, who declined to be named, said: 'It's more practical. If the landlord doesn't want to rent to Indian nationals, for example, I'll have to screen the majority of my calls as 80 per cent of my clients are Indians.'
But Mr Ismail countered: 'Such ads should not be displayed so openly. You can always say the owner is looking for someone who will not do Asian cooking, for example. That's very tactful.'
HSR Property Group's executive director Eric Cheng said the firm has a policy to 'do unto others what you want others to do unto you, so we should not be placing such ads'.
'Still, no company can guarantee that, because there are so many ads you can place online.'
Associate Professor Eleanor Wong, chairman of the Advertising Standards Authority of Singapore (ASAS), the self-regulating body which looks into the content of ads here, said ASAS is firmly against ads that discriminate solely on the basis of race or ethnicity.
Under the Singapore Code of Advertising Practice (Scap), ads should not discriminate against any ethnic group or religion, said Prof Wong.
She added: 'Here, there is some ambiguity because the potential landlord seems to be targeting a certain group of foreign nationals rather than a racial group per se.'
Owners of websites should ensure that the advertisements posted there comply with Scap, but ASAS can ask the webmaster to remove the post or amend the phrasing, as well as contact the person who made the post.
Tenants who spoke to my paper had encountered such ads when looking for a rental flat.
Said business analyst Kishor Autee, 28, an Indian national renting a flat in Ang Mo Kio: 'To anybody who comes looking for a place to rent, the first question asked is which race, and that gives a very bad impression of Singapore.'
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