August 2, 2008
Private home rents may wobble but won't crash
Fears of their decline next year may be somewhat exaggerated
By UMA SHANKARI
(SINGAPORE) Recent media reports predicting that private home rents
will take a steep dive next year are certainly alarming. But a closer
look at the numbers suggests that they may not take such a beating
after all.
Last week, CB Richard Ellis (CBRE) said that it expects rents to fall
by 5-10 per cent on average next year. In the prime areas, rents
could slide by up to 15 per cent, the property firm said.
The projections are based on two major assumptions: that a record
number of homes will be completed next year; and that the tenant pool
here will shrink significantly as corporations stop hiring
expatriates or, in some cases, even send some expats home.
'It's a double blow,' said CBRE Research.
However, developers and other analysts say that the number of
completed homes may not be that high and the economic situation next
year not that bad.
According to CBRE's data, 13,400 homes will be completed next year.
But official estimates from the Urban Redevelopment Authority (URA)
put the number of landed and non-landed private homes expected to be
completed in 2009 at a more modest 10,418.
Likewise, CapitaLand's in-house estimates say that about 12,000 units
will be completed from the second half of 2008 to end-2009.
'It is a comfortable number,' Patricia Chia, head of CapitaLand's
Singapore residential unit, told reporters at the developer's second-
quarter results briefing yesterday. Over the past six years, 8,000-
8,500 private homes were completed on average each year, she said.
There are also demolitions to consider. CBRE said there will be 1,700-
1,850 units demolished in 2009. Net supply next year could therefore
come in even lower.
Take, for example, Q2 2008 numbers. According to Citigroup, while
2,587 units were completed in the second quarter, net supply was only
761 - implying that some 1,826 units were demolished. This partly
helped occupancy rebound slightly to 93.9 per cent following three
consecutive quarters of decline, the bank said in a recent report.
Rentals will also be helped by other factors, developers point out.
Many of the new units coming onstream in 2009 and 2010 have already
been sold, and not all of them will end up on the rental market.
The HDB market, where prices rose 4.5 per cent quarter-on-quarter in
Q2, is also cause for optimism. The number of HDB resale applications
also rose 22 per cent quarter-on-quarter.
'HDB upgraders who buy mass market private units will not rent out
their new homes,' said one developer. 'Many of the units in new mass
market condos completed in 2009 and 2010 will not be part of the
supply for renters.'
For now, while rental growth is slowing down, it is still on the
uptrend. Citigroup said that rentals rose 2.5 per cent quarter-on-
quarter in Q2 - much slower than the 6 per cent increase seen in the
first quarter.
But the other, bigger factor which could also lead to rents taking a
precipitous plunge next year - the state of the macroeconomic
environment - is still up in the air.
CBRE, for example, adopted scenarios in which the economic climate
either stays the same or worsens in 2009 to arrive at its forecasts.
Other analysts, on the other hand, expect things to turn around in
the second half of 2009.
For now, jobs growth is continuing apace, they point out. 70,600 new
jobs were created in the second quarter, down only slightly from a
record 73,200 jobs in Q1 and the second highest job creation rate on
record.
The slowdown in services jobs creation to 37,600, from a record
46,500 jobs in Q1, was however a cause for concern. 'We suspect much
of this may have reflected a slowdown in financial services hiring,'
said Citigroup economist Kit Wei Zheng.
But while firms in the financial sector may hold off on hiring,
companies in other industries should continue hiring next year. The
overall pool of renters should therefore continue to climb in 2009.
'There should be enough people looking to rent in the next 12-18
months,' said Ku Swee Yong, director of marketing and business
development at Savills Singapore.
Growth in mass market and HDB rents should continue next year, he
said. But asking rents at large high-end apartments - of 4,000 sq ft
and more - could fall as companies cut back on housing allowances for
their employees, Mr Ku added.
As for overall rents, it's anybody's guess. Much depends on how
quickly the world recovers from the US sub-prime mortgage crisis - or
how much worse things get. But private home rentals here are unlikely
to make a large reversal.
Saturday, August 2, 2008
CapitaLand Q2 profit falls 43.5% to $515.2m
August 2, 2008
CapitaLand Q2 profit falls 43.5% to $515.2m
Group hopes to list Malaysia retail Reit on Bursa Malaysia by end-2008
By KALPANA RASHIWALA
CAPITALAND group president and CEO Liew Mun Leong has urged analysts
and journalists 'not to be overinfected with what's happening in the
US'. He made this call yesterday at the property group's briefing on
its results - which saw second-quarter net profit falling 43.5 per
cent year-on-year to $515.2 million.
'Despite the cautious market sentiment, we have a positive outlook as
our business units are competitively positioned and geographically
diversified,
CapitaLand Q2 profit falls 43.5% to $515.2m
Group hopes to list Malaysia retail Reit on Bursa Malaysia by end-2008
By KALPANA RASHIWALA
CAPITALAND group president and CEO Liew Mun Leong has urged analysts
and journalists 'not to be overinfected with what's happening in the
US'. He made this call yesterday at the property group's briefing on
its results - which saw second-quarter net profit falling 43.5 per
cent year-on-year to $515.2 million.
'Despite the cautious market sentiment, we have a positive outlook as
our business units are competitively positioned and geographically
diversified,
CapitaLand's Q2 net profit drop was due mainly to lower fair value
gains from the revaluation of investment properties, lower portfolio
gains and developments profits, and the absence of writeback of
previous provisions. 'Lower revaluation gains were partly a result of
the moderation in price increase for the Singapore property market
and partly because the group divested some of its investment
properties in 2007,' the group said.
First-half net profit also declined 49.8 per cent year-on-year to
$762.7 million. Mr Liew pointed out that 2007 was an exceptional
year.
The group posted return on equity of 15 per cent in H1 2008, down
from 38 per cent in the corresponding year-ago period but slightly
ahead of the 14.5 per cent achieved for full-year 2006.
Excluding revaluation gains, CapitaLand's H1 2008 net profit would
have been $345.3 million, down 19.7 per cent from H1 2007, which Mr
Liew termed a 'commendable result'.
Overseas contribution to earnings before interest and tax rose 10.4
per cent year-on-year to $695.8 million in H1 2008. The increase came
mostly from China, chiefly due to fair value gain of $297 million (at
earnings before interest and tax or Ebit level) for Raffles City
Shanghai, which is being sold to the Raffles City China Fund.
However, this was partly offset by a lower contribution from
Australia. CapitaLand booked a $24.1 million provision for its share
of foreseeable losses on Australand's residential development
projects.
The group's finance cost rose 43.7 per cent to $270.5 million in H1
2008. Gross debt rose to $11.6 billion as at June 30, 2008, from $8.6
billion a year earlier. Net debt to equity ratio increased from 0.43
as at end-June 2007 to 0.68 as at end-June 2008.
Serviced residences giant The Ascott Group, which CapitaLand took
private earlier this year, posted an 87.3 per cent year-on-year drop
in Ebit in Q2 2008 to $17.9 million, while H1 2008 Ebit fell 66.3 per
cent to $57.4 million. The Q2 2007 figure had included a gain from
the sale of Master Golf and Country Club. The deconsolidation of
Ascott Residence Trust, which was listed last year, also contributed
to the lower H1 2008 Ebit. However, Ascott's Q2 revenue rose 12.5 per
cent to $120.5 million, due largely to the group's serviced residence
operations in Europe and China. The group sold $138 million of its
serviced residences portfolio in H1 2008 and hinted that it was
studying further divestments.
CapitaLand China Holdings's revenue fell 63.9 per cent in Q2 2008 and
49 per cent in H1 2008 because of the re-scheduling of launches of a
few projects (in Foshan, Chengdu and Ningbo) from H1 2008 to H2 2008.
However, the China business posted posted respective year-on-year
Ebit gains of 120.4 per cent and 113.3 per cent in Q2 and H1
respectively due largely to the fair value gain from the revaluation
of Raffles City Shanghai and better operating performance of
commercial properties.
The group's assets under management stood at $21.1 billion as at June
30, 2008, up from $17.7 billion as at Dec 31, 2007.
The group had $3.4 billion cash as at June 30, 2008 - down 21.4 per
cent from a year earlier - and that is in addition to the $12 billion
balance investible amount in its private equity funds as at the same
date - giving it a sizeable warchest for potential acquisitions.
CapitaLand hopes to list its Malaysia retail Reit on Bursa Malaysia
by end-2008. CapitaLand chief investment officer Kee Teck Koon
said: 'We're looking at an asset size of about RM$2 billion (S$841
million) (based on the three malls we have purchased for this Reit -
Gurney Plaza, Mines Shopping Fair and Sungei Wang Plaza). This will
make it the largest Reit in Malaysia in terms of asset size.'
Group revenue fell 12.3 per cent in Q2 to $820.1 million. For the
first-half, revenue slipped 7.7 per cent to $1.45 billion.
CapitaLand's net asset value per share stood at $3.68 as at June 30,
2008, up from $3.54 as at Dec 31, 2007. The counter closed 23 cents
lower yesterday at $5.47. No interim dividend was declared, as was
the case in the previous corresponding period.
CapitaLand to launch freehold condo soon
August 2, 2008
CapitaLand to launch freehold condo soon
CAPITALAND plans to launch in the second half of this year a freehold
condo - Urban Resort - with about 70 units on the Silver Tower site
in Cairnhill. The average price is expected to be above $3,000 psf,
CapitaLand Residential Singapore CEO Patricia Chia told reporters
after the group announced second-quarter results.
CapitaLand has also sold 11 of the 40 units released so far at
Latitude at Jalan Mutiara in the River Valley area at an average
price of $2,400 to $2,500 psf. Over at Tong Watt Road, it has sold
close to 30 of 80 units released recently at The Wharf Residence;
prices range from $1,500 to $1,900 psf.
CapitaLand leads a consortium that will redevelop Farrer Court which
is slated for launch in the first half of next year.
Asked about his outlook for the Singapore residential market, Mr Liew
said: 'Demand is still very good for the mass market. (For) the mid-
range, there are still good signs of take-up; I think prices are
still holding well for the mid-range.
'But in the high-end, there's not going to be massive demand. (In
terms of prices), obviously it won't be the $5,600 psf record price
that we achieved for a penthouse at Orchard Residences last year. But
prices will still be above $3,000 psf.
'So prices will still be way above the last peak, pre-Asian crisis.
Demand is still there. People who sold their properties through en
bloc sales still have to buy apartments,' he said.
Given Singapore's limited land resource and with population projected
to grow to 6.5 million, in the 'long term, property prices will go
up', Mr Liew said, adding: 'It's a no-brainer.'
'I think we're overinfected with the housing slump in the US. That
sort of mood comes to Singapore that property prices (here) will
(also) go down. But look at the fundamentals, look at demand
fundamentals. I think we are much stronger in Asia,' Mr Liew noted.
The group's earnings are underpinned by progressive recognition of $4
billion residential sales in Singapore in 2006 and 2007.
CapitaLand's chief investment officer Kee Teck Koon said that in
Singapore, the group has hardly any residential stock or inventory
that it is holding. 'So there is no issue of writing down. Most
importantly, those new projects we've got, we have underwritten a
value that is very supportable even at current prices,' he added.
CapitaLand to launch freehold condo soon
CAPITALAND plans to launch in the second half of this year a freehold
condo - Urban Resort - with about 70 units on the Silver Tower site
in Cairnhill. The average price is expected to be above $3,000 psf,
CapitaLand Residential Singapore CEO Patricia Chia told reporters
after the group announced second-quarter results.
CapitaLand has also sold 11 of the 40 units released so far at
Latitude at Jalan Mutiara in the River Valley area at an average
price of $2,400 to $2,500 psf. Over at Tong Watt Road, it has sold
close to 30 of 80 units released recently at The Wharf Residence;
prices range from $1,500 to $1,900 psf.
CapitaLand leads a consortium that will redevelop Farrer Court which
is slated for launch in the first half of next year.
Asked about his outlook for the Singapore residential market, Mr Liew
said: 'Demand is still very good for the mass market. (For) the mid-
range, there are still good signs of take-up; I think prices are
still holding well for the mid-range.
'But in the high-end, there's not going to be massive demand. (In
terms of prices), obviously it won't be the $5,600 psf record price
that we achieved for a penthouse at Orchard Residences last year. But
prices will still be above $3,000 psf.
'So prices will still be way above the last peak, pre-Asian crisis.
Demand is still there. People who sold their properties through en
bloc sales still have to buy apartments,' he said.
Given Singapore's limited land resource and with population projected
to grow to 6.5 million, in the 'long term, property prices will go
up', Mr Liew said, adding: 'It's a no-brainer.'
'I think we're overinfected with the housing slump in the US. That
sort of mood comes to Singapore that property prices (here) will
(also) go down. But look at the fundamentals, look at demand
fundamentals. I think we are much stronger in Asia,' Mr Liew noted.
The group's earnings are underpinned by progressive recognition of $4
billion residential sales in Singapore in 2006 and 2007.
CapitaLand's chief investment officer Kee Teck Koon said that in
Singapore, the group has hardly any residential stock or inventory
that it is holding. 'So there is no issue of writing down. Most
importantly, those new projects we've got, we have underwritten a
value that is very supportable even at current prices,' he added.
There are no plans to take Australand private
August 2, 2008
There are no plans to take Australand private
CAPITALAND has no plans to take its Australian subsidiary Australand
private at present as it remains a core business, CapitaLand's group
president and CEO Liew Mun Leong said yesterday.
Australand chairman Lui Chong Chee said he expects CapitaLand's stake
in Australand to rise from the present 54 per cent to about 65 per
cent at most, assuming no retail investors participate in a recently
announced rights offer.
Australand, which is listed on the Australian and Singapore bourses,
has announced a one-for-one renounceable rights issue to raise
between A$302 million (S$386.5 million) and A$557 million to
strengthen its balance sheet.
Mr Liew said: 'They have done well for us for 11 consecutive years.
We're confident in the business and management of Australand and
we're taking up our pro-rata entitlement of A$302 million.'
Mr Liew also clarified that while Australand is keen on expanding
into Asia, it is eyeing the logistics and industrial property sectors
in the region, rather than residential and commercial properties,
where it could run into potential competition with CapitaLand itself.
'They are very strong in industrial and logistics and want to export
these services to Asia,' he said. 'We have the connections and
ability to source the land. They are not coming to Asia to build
apartments or build a Raffles City.'
Earlier this year, CapitaLand and Australand set up a 51:49 joint
venture to set up a pan-Asian development platform in the industrial
and logistics sectors.
Mr Lui said provisions for foreseeable losses taken by Australand in
H1 2008 were specifically for New South Wales, mainly Sydney. 'The
volume of (home) sales in Sydney has come down,' he said.
'But if you look at the rest of Australia - Perth, Melbourne and
Brisbane - the prices there are still quite stable.'
CapitaLand chief investment officer Kee Teck Koon highlighted that
Australand has been increasing its exposure to the commercial and
industrial property sectors, which offer more stable income, to
reduce its dependence on the residential sector.
CapitaLand's CFO Olivier Lim also indicated that CapitaLand may book
a negative goodwill gain from the Australand rights issue. The issue
is priced at 60 Australian cents per rights share - lower than
Australand's post-rights offer net tangible asset per share of A$1.13
to A$1.28.
There are no plans to take Australand private
CAPITALAND has no plans to take its Australian subsidiary Australand
private at present as it remains a core business, CapitaLand's group
president and CEO Liew Mun Leong said yesterday.
Australand chairman Lui Chong Chee said he expects CapitaLand's stake
in Australand to rise from the present 54 per cent to about 65 per
cent at most, assuming no retail investors participate in a recently
announced rights offer.
Australand, which is listed on the Australian and Singapore bourses,
has announced a one-for-one renounceable rights issue to raise
between A$302 million (S$386.5 million) and A$557 million to
strengthen its balance sheet.
Mr Liew said: 'They have done well for us for 11 consecutive years.
We're confident in the business and management of Australand and
we're taking up our pro-rata entitlement of A$302 million.'
Mr Liew also clarified that while Australand is keen on expanding
into Asia, it is eyeing the logistics and industrial property sectors
in the region, rather than residential and commercial properties,
where it could run into potential competition with CapitaLand itself.
'They are very strong in industrial and logistics and want to export
these services to Asia,' he said. 'We have the connections and
ability to source the land. They are not coming to Asia to build
apartments or build a Raffles City.'
Earlier this year, CapitaLand and Australand set up a 51:49 joint
venture to set up a pan-Asian development platform in the industrial
and logistics sectors.
Mr Lui said provisions for foreseeable losses taken by Australand in
H1 2008 were specifically for New South Wales, mainly Sydney. 'The
volume of (home) sales in Sydney has come down,' he said.
'But if you look at the rest of Australia - Perth, Melbourne and
Brisbane - the prices there are still quite stable.'
CapitaLand chief investment officer Kee Teck Koon highlighted that
Australand has been increasing its exposure to the commercial and
industrial property sectors, which offer more stable income, to
reduce its dependence on the residential sector.
CapitaLand's CFO Olivier Lim also indicated that CapitaLand may book
a negative goodwill gain from the Australand rights issue. The issue
is priced at 60 Australian cents per rights share - lower than
Australand's post-rights offer net tangible asset per share of A$1.13
to A$1.28.
URA gets $51m bid for hotel site
August 2, 2008
URA gets $51m bid for hotel site
At Kallang and Jellicoe roads, the 45,451 sq ft site costs $249.6 psf
ppr
By ARTHUR SIM
THE Urban Redevelopment Authority (URA) has received a committed bid
of $51 million for a hotel site at Kallang and Jellicoe roads.
This works out to $249.6 per sq ft per plot ratio (psf ppr) for the
45,451 sq ft site, which is on the reserve list of the Government
Land Sales programme.
The site, which has a maximum permissible gross floor area of 204,363
sq ft, will now be put up for public tender.
Knight Frank director (research and consultancy) Nicholas Mak
believes that barring any major shocks to the economy, the tender
could attract bids in the range of $400-$450 psf ppr.
'This is a relatively good site only two MRT stations from Raffles
City and close to the future Kallang Riverside,' he said.
But poor market sentiment or lower-than-expected visitor arrivals in
the coming months could result in lesser bids of $330-$400 psf ppr.
While public tenders always draw bids higher than the trigger price,
one property consultant said that he is surprised the site at Kallang
and Jellicoe roads was even triggered, given the state of the global
economy and rising construction costs.
'Investors will have to now factor a much longer period for their
return on investment,' he noted.
The public tender for the site follows poor response to hotel
development sites in Balestier Road and Race Course Road, with the
former attracting a top bid of $172 psf ppr and the latter drawing no
bid at all. URA has said that the government is evaluating the
tendered bids for the Balestier Road site, the tender for which
closed on July 16.
In this light, Mr Mak said that the trigger price for site at Kallang
and Jellicoe roads, which can be compared to the government's reserve
price, seems 'realistic'.
URA projects that a 455-room hotel can be built, which Mr Mak reckons
would be positioned as a business-class establishment.
Including the site at Kallang and Jellicoe roads, there are 10 hotel
development sites on the GLS reserve list.
According to URA, the reserve list for second-half of 2008 provides
for total potential supply of 5,050 hotel rooms, including a white
site at Outram Road.
There is one site on the GLS confirmed list, and including a
commercial site at North Bridge Road, the confirmed list could
potentially yield 700 hotel rooms.
Developers must take own initiatives to go green: Leng Joo
August 2, 2008
Developers must take own initiatives to go green: Leng Joo
CDL MD says it's not sustainable to have long-term govt subsidies
By JAMIE LEE
DEPENDING on the government for more subsidies to encourage
developers to go green is not sustainable, said City Developments
managing director Kwek Leng Joo.
'I don't think it's sustainable to look to the government for grants
and subsidies on a long-term basis,' said Mr Kwek, who was speaking
to reporters on the sidelines of the memorandum of understanding
signed between the company and NUS School of Design and Environment'
Developers must take own initiatives to go green: Leng Joo
CDL MD says it's not sustainable to have long-term govt subsidies
By JAMIE LEE
DEPENDING on the government for more subsidies to encourage
developers to go green is not sustainable, said City Developments
managing director Kwek Leng Joo.
'I don't think it's sustainable to look to the government for grants
and subsidies on a long-term basis,' said Mr Kwek, who was speaking
to reporters on the sidelines of the memorandum of understanding
signed between the company and NUS School of Design and Environment'
Master of Science, Environmental Management (MEM) programme to work
on green solutions for the building sector.
'We have to make our own plans and it's not a one-way street,' he
said, adding that while the returns may not be 'direct and apparent'
now, green buildings will become more attractive to buyers who can
lower their utility bills through green features such as photovoltaic
cells when their prices fall over time.
City Developments currently audits the green practices of its
contractors and those who score better stand a higher chance to bid
for tenders for subsequent projects.
But Mr Kwek added that smaller developers are less likely to be able
to influence construction and architectural firms to go green because
they have little influence over the supply chain.
'Perhaps if you are a very small developer. . . then you will not be
in the position to influence, to help direct the other players in the
whole value chain,' said Mr Kwek. 'But we can take up that role and
we've been doing it.'
During the event, Tommy Koh, who chairs the MEM advisory committee,
said he had proposed to the government in 1992 about the potential of
solar energy, but the idea was shot down because it was not seen to
be commercially viable.
'How wrong they are,' said Prof Koh, adding that Singapore is just at
the beginning of its 'green journey'.
'We've not done a bad job in balancing the need to provide adequate
housing for 4.6 million people and having room for garden, parks and
nature,' he said.
'But we've also done some bad things. We've largely destroyed our
mangrove forest. We need to reclaim land because we need additional
space but in the process, we've destroyed most of our coral reefs,'
he added.
Sydney eyes financial hub role in region
Aug 2, 2008
Sydney eyes financial hub role in region
Australia plans big push to challenge Asian leaders Singapore and HK
By Roger Maynard, Australia Correspondent
SYDNEY - ANOTHER competitor is upping its game in the region's
financial services arena.
Australia's Assistant Treasurer Chris Bowen has pledged to lead
an 'Olympics-style push' to transform Sydney into a regional
financial services hub to rival Singapore and Hong Kong.
The government aims to do so by promoting financial services to Asia
through deregulation, education and a competitive tax region, he told
a conference of top businessmen and political leaders.
Sydney, already Australia's financial capital, hosts 53 of the 55
authorised deposit-taking banks. It is also home to all of the 10
foreign subsidiary banks and all of the 31 branches of foreign banks
in the country.
Keen to maintain the momentum, the government is to establish a
special Treasury unit to oversee the plan. It hopes to have an agenda
for action by the end of the year.
Prime Minister Kevin Rudd has personally endorsed the new strategy.
He will lead senior industry leaders to key Asian economies to
showcase Australia's financial services sector.
'We want to work to ensure that the financial services sector is an
important part of Australia's global branding,' he said.
Australian banks quickly welcomed the move.
But while many support the government's initiative, putting it into
practice may pose a bigger challenge than the Rudd administration is
prepared to acknowledge.
Sydney is still a relative minnow among the big fish when it comes to
financial hubs. A federal government ranking puts it 10th worldwide
and fourth in Asia, after Tokyo, Hong Kong and Singapore.
Mr Greg Canavan, of leading independent stock market research house
Fat Prophets, said that trying to turn Sydney into a financial
services hub was a 'big ask'.
'It sounds like government rhetoric that may or may not eventuate
down the track,' he said.
'Given that Hong Kong and Singapore are very embedded in the
financial industry in Asia, I think it would take a lot of work by
Sydney to get anywhere near rivalling them.'
Mr Canavan said uncompetitive Australian tax rates could work against
Sydney.
'Obviously the government would need to come to the party in terms of
tax to attract the big multinationals to set up shop here rather than
in Singapore,' he said.
As part of the government's initiative, Mr Rudd has already cut
withholding tax on real estate investment trusts and pledged further
deregulation on credit products.
But the finance community has made it clear that the government must
go well beyond its A$630 million (S$800 million) cut to withholding
tax if Australia is to become a major financial services hub.
Financial sector executives in Singapore pointed out that, even then,
there remain challenges for Australia's ambitions that cannot be
addressed simply by government policy.
Aberdeen Asset Management managing director Hugh Young said
Australia's location works against it.
'Australia may be part of the Asia-Pacific, but it's on the
outskirts.'
With a population of some 20 million, compared to Singapore's four-
plus million, Australia's economy and financial services also have a
large domestic focus.
CIMB-GK economist Song Seng Wun said the region is already well
served by Singapore, Hong Kong and Tokyo. Australia has 'probably
left it a little bit late', he said.
Mr Song said that Shanghai would have a better chance of making its
mark in the region's financial arena.
Sydney eyes financial hub role in region
Australia plans big push to challenge Asian leaders Singapore and HK
By Roger Maynard, Australia Correspondent
SYDNEY - ANOTHER competitor is upping its game in the region's
financial services arena.
Australia's Assistant Treasurer Chris Bowen has pledged to lead
an 'Olympics-style push' to transform Sydney into a regional
financial services hub to rival Singapore and Hong Kong.
The government aims to do so by promoting financial services to Asia
through deregulation, education and a competitive tax region, he told
a conference of top businessmen and political leaders.
Sydney, already Australia's financial capital, hosts 53 of the 55
authorised deposit-taking banks. It is also home to all of the 10
foreign subsidiary banks and all of the 31 branches of foreign banks
in the country.
Keen to maintain the momentum, the government is to establish a
special Treasury unit to oversee the plan. It hopes to have an agenda
for action by the end of the year.
Prime Minister Kevin Rudd has personally endorsed the new strategy.
He will lead senior industry leaders to key Asian economies to
showcase Australia's financial services sector.
'We want to work to ensure that the financial services sector is an
important part of Australia's global branding,' he said.
Australian banks quickly welcomed the move.
But while many support the government's initiative, putting it into
practice may pose a bigger challenge than the Rudd administration is
prepared to acknowledge.
Sydney is still a relative minnow among the big fish when it comes to
financial hubs. A federal government ranking puts it 10th worldwide
and fourth in Asia, after Tokyo, Hong Kong and Singapore.
Mr Greg Canavan, of leading independent stock market research house
Fat Prophets, said that trying to turn Sydney into a financial
services hub was a 'big ask'.
'It sounds like government rhetoric that may or may not eventuate
down the track,' he said.
'Given that Hong Kong and Singapore are very embedded in the
financial industry in Asia, I think it would take a lot of work by
Sydney to get anywhere near rivalling them.'
Mr Canavan said uncompetitive Australian tax rates could work against
Sydney.
'Obviously the government would need to come to the party in terms of
tax to attract the big multinationals to set up shop here rather than
in Singapore,' he said.
As part of the government's initiative, Mr Rudd has already cut
withholding tax on real estate investment trusts and pledged further
deregulation on credit products.
But the finance community has made it clear that the government must
go well beyond its A$630 million (S$800 million) cut to withholding
tax if Australia is to become a major financial services hub.
Financial sector executives in Singapore pointed out that, even then,
there remain challenges for Australia's ambitions that cannot be
addressed simply by government policy.
Aberdeen Asset Management managing director Hugh Young said
Australia's location works against it.
'Australia may be part of the Asia-Pacific, but it's on the
outskirts.'
With a population of some 20 million, compared to Singapore's four-
plus million, Australia's economy and financial services also have a
large domestic focus.
CIMB-GK economist Song Seng Wun said the region is already well
served by Singapore, Hong Kong and Tokyo. Australia has 'probably
left it a little bit late', he said.
Mr Song said that Shanghai would have a better chance of making its
mark in the region's financial arena.
11 new sites to house 65,000 foreign workers
Aug 2, 2008
11 new sites to house 65,000 foreign workers
Workers to live in vacant govt buildings till new dormitories are
ready by 2010
By Diana Othman
ELEVEN new sites have been identified for building dormitories that
will house 65,000 foreign workers, but these facilities will take
till 2010 to complete.
In the meantime, vacant government buildings will be converted into
temporary quarters for these workers, said Acting Manpower Minister
Gan Kim Yong.
Speaking at the opening of ExxonMobil Chemical's dormitory and safety
training and security centre on Jurong Island yesterday, Mr Gan said
demand for housing for foreign workers had gone up in tandem with the
growth of various industry sectors.
Welcoming the offer of temporary accommodation for these workers and
the land set aside for their dormitories, the executive director of
the Singapore Contractors Association Limited, Mr Simon Lee,
said: 'We are keen to have as many housing facilities as possible for
foreign workers, as there is a shortage.
'Basically, there is now not enough land to build these housing
facilities.'
Some existing dormitories fail to meet basic needs. News reports in
the past year have exposed some to be overcrowded, filthy and lacking
in bathing and cooking space.
'If land is available, better facilities can be designed and built
for these workers,' said Mr Lee.
Employers, such as ExxonMobil Asia-Pacific, have opted to build their
own dormitories.
Final touches are being added to ExxonMobil's 9ha facility, which can
take in 9,000 petrochemical workers. About 700 have already moved in.
A year from now, the company expects as many as 12,000 workers at the
site, during the construction of its second chemical plant.
Each worker there will share a 4.1 sq m room with no more than 11
others. The dormitory is also equipped with a basketball court and a
gymnasium, as well as recreational rooms with television sets and
pool tables.
Meals are prepared in three kitchens catering to different dietary
needs, and a laundry service ensures the workers will have clean
clothes.
Mr Georges Grosliere, 58, the project executive overseeing the
construction of the second plant, said: 'We would like to ensure
that, when the workers come here, they have enough time for rest
before starting another busy day.'
Well-rested workers are also safer, more productive ones, he added.
Mr Chakhaml Phutta, 38, a Thai worker who has lived at the dormitory
for about a month, said: 'I like it here. They take care of
everything. They help with the food and the clothes, so I can enjoy
my break and even go to the gym to exercise.'
The company's safety-training and security centre - 10 minutes from
the dormitory - is where workers undergo courses and pass a test
before receiving their work permits.
11 new sites to house 65,000 foreign workers
Workers to live in vacant govt buildings till new dormitories are
ready by 2010
By Diana Othman
ELEVEN new sites have been identified for building dormitories that
will house 65,000 foreign workers, but these facilities will take
till 2010 to complete.
In the meantime, vacant government buildings will be converted into
temporary quarters for these workers, said Acting Manpower Minister
Gan Kim Yong.
Speaking at the opening of ExxonMobil Chemical's dormitory and safety
training and security centre on Jurong Island yesterday, Mr Gan said
demand for housing for foreign workers had gone up in tandem with the
growth of various industry sectors.
Welcoming the offer of temporary accommodation for these workers and
the land set aside for their dormitories, the executive director of
the Singapore Contractors Association Limited, Mr Simon Lee,
said: 'We are keen to have as many housing facilities as possible for
foreign workers, as there is a shortage.
'Basically, there is now not enough land to build these housing
facilities.'
Some existing dormitories fail to meet basic needs. News reports in
the past year have exposed some to be overcrowded, filthy and lacking
in bathing and cooking space.
'If land is available, better facilities can be designed and built
for these workers,' said Mr Lee.
Employers, such as ExxonMobil Asia-Pacific, have opted to build their
own dormitories.
Final touches are being added to ExxonMobil's 9ha facility, which can
take in 9,000 petrochemical workers. About 700 have already moved in.
A year from now, the company expects as many as 12,000 workers at the
site, during the construction of its second chemical plant.
Each worker there will share a 4.1 sq m room with no more than 11
others. The dormitory is also equipped with a basketball court and a
gymnasium, as well as recreational rooms with television sets and
pool tables.
Meals are prepared in three kitchens catering to different dietary
needs, and a laundry service ensures the workers will have clean
clothes.
Mr Georges Grosliere, 58, the project executive overseeing the
construction of the second plant, said: 'We would like to ensure
that, when the workers come here, they have enough time for rest
before starting another busy day.'
Well-rested workers are also safer, more productive ones, he added.
Mr Chakhaml Phutta, 38, a Thai worker who has lived at the dormitory
for about a month, said: 'I like it here. They take care of
everything. They help with the food and the clothes, so I can enjoy
my break and even go to the gym to exercise.'
The company's safety-training and security centre - 10 minutes from
the dormitory - is where workers undergo courses and pass a test
before receiving their work permits.
CapitaLand gains dive, flat property market expected
Aug 2, 2008
CapitaLand gains dive, flat property market expected
Interim earnings halved to $763m, but condo launches won't be held
back
By Joyce Teo, Property Correspondent
PROPERTY giant CapitaLand expects the market to stay sluggish for a
while but it is still preparing to launch three mid- to high-end
condos here before Christmas.
'For outlook...it'll probably be very flat,' said chief executive
Liew Mun Leong at a results briefing yesterday that unveiled a plunge
in first-half profit.
Prices in general will be 'quite flat', with a correction seen in the
high-end segment, said Mr Liew after the meeting. He added that
demand for mass market homes is 'still very good' while mid-end home
prices are holding well.
The picture in the high-end segment is not as rosy as prices have
fallen after buyers bailed out of the market overnight. But
CapitaLand said high-end prices remained relatively high.
'High-end volume will slow down, prices will not hit $5,000 psf but
will still be above $3,000 psf,' said Mr Liew. 'As I keep saying, it
is much more than pre-Asian financial crisis prices.' Home prices
reached around $2,400 per square foot (psf) at the 1996 peak.
CapitaLand said in its results statement that sentiment in the local
property market is likely to remain cautious for the rest of the year
until there is greater stability in the global financial markets and
improved credit environment.
But demand is still there, it said. Against this backdrop, CapitaLand
is planning to release two projects in River Valley - the 127-unit
Latitude in Jalan Mutiara and the 186-unit The Wharf Residence in
Tong Watt Road.
It will also launch Urban Resort, which will have about 70 units on
the former Silver Tower site in Cairnhill, at above $3,000 psf.
Pre-launch sales have started at the two River Valley projects.
CapitaLand said it has sold 11 out of 40 units at an average of
$2,400 to $2,500 psf during the preview for Latitude in the first
half of the year. It has also sold 'close to 30' of 80 units at
$1,500 to $1,900 psf since the preview for The Wharf held three weeks
ago.
Meanwhile, CapitaLand reported a 43.5 per cent drop in second-quarter
net profit to $515.2 million on the back of a 12.3 per cent fall in
revenue to $820.1 million. The drop came largely on lower home sales
and amid an absence of one-off gains.
First-half profit was $762.7 million, down nearly 50 per cent, while
revenue fell 7.7 per cent to $1.45 billion.
CapitaLand has had to delay the launch of residential projects in
China due to bad weather delaying construction.
Earnings before interest and tax from overseas contributed 54 per
cent of the total, as China's contribution rose on the fair value
gain of Raffles City Shanghai. Australia's contribution fell nearly
82 per cent due to provision for foreseeable losses on development
projects and lower fair value gains.
Second-quarter earnings per share was 18.3 cents, down from 32.6
cents last year, while net asset value per share reached $3.68, up
from $3.54 at the end of last year.
CapitaLand shares fell 23 cents to $5.47 yesterday.
CapitaLand gains dive, flat property market expected
Interim earnings halved to $763m, but condo launches won't be held
back
By Joyce Teo, Property Correspondent
PROPERTY giant CapitaLand expects the market to stay sluggish for a
while but it is still preparing to launch three mid- to high-end
condos here before Christmas.
'For outlook...it'll probably be very flat,' said chief executive
Liew Mun Leong at a results briefing yesterday that unveiled a plunge
in first-half profit.
Prices in general will be 'quite flat', with a correction seen in the
high-end segment, said Mr Liew after the meeting. He added that
demand for mass market homes is 'still very good' while mid-end home
prices are holding well.
The picture in the high-end segment is not as rosy as prices have
fallen after buyers bailed out of the market overnight. But
CapitaLand said high-end prices remained relatively high.
'High-end volume will slow down, prices will not hit $5,000 psf but
will still be above $3,000 psf,' said Mr Liew. 'As I keep saying, it
is much more than pre-Asian financial crisis prices.' Home prices
reached around $2,400 per square foot (psf) at the 1996 peak.
CapitaLand said in its results statement that sentiment in the local
property market is likely to remain cautious for the rest of the year
until there is greater stability in the global financial markets and
improved credit environment.
But demand is still there, it said. Against this backdrop, CapitaLand
is planning to release two projects in River Valley - the 127-unit
Latitude in Jalan Mutiara and the 186-unit The Wharf Residence in
Tong Watt Road.
It will also launch Urban Resort, which will have about 70 units on
the former Silver Tower site in Cairnhill, at above $3,000 psf.
Pre-launch sales have started at the two River Valley projects.
CapitaLand said it has sold 11 out of 40 units at an average of
$2,400 to $2,500 psf during the preview for Latitude in the first
half of the year. It has also sold 'close to 30' of 80 units at
$1,500 to $1,900 psf since the preview for The Wharf held three weeks
ago.
Meanwhile, CapitaLand reported a 43.5 per cent drop in second-quarter
net profit to $515.2 million on the back of a 12.3 per cent fall in
revenue to $820.1 million. The drop came largely on lower home sales
and amid an absence of one-off gains.
First-half profit was $762.7 million, down nearly 50 per cent, while
revenue fell 7.7 per cent to $1.45 billion.
CapitaLand has had to delay the launch of residential projects in
China due to bad weather delaying construction.
Earnings before interest and tax from overseas contributed 54 per
cent of the total, as China's contribution rose on the fair value
gain of Raffles City Shanghai. Australia's contribution fell nearly
82 per cent due to provision for foreseeable losses on development
projects and lower fair value gains.
Second-quarter earnings per share was 18.3 cents, down from 32.6
cents last year, while net asset value per share reached $3.68, up
from $3.54 at the end of last year.
CapitaLand shares fell 23 cents to $5.47 yesterday.
Friday, August 1, 2008
Housing Matters 2: Understanding the costs of renting a house in Singapore
Housing Matters 2
Understanding the costs of renting a house in Singapore
1. Is there any agency fee or commission if I engage EastLiving.com.sg or any other realtor in Singapore for my housing search, documentations and other assistance?
Yes and No. If the rental amount of the apartment / house you are renting is above $2,500, no agency fees will be payable by the tenant. If the rental amount is exactly $2,500 or less, the fee payable will be half a month's rent and above, depending on the lease duration.
2. Are there any other fees or expenses that I need to pay after I have signed the Tenancy Agreement?
Stamp duty fee, TV licence, deposit for Power Supply, Cable TV, Internet, etc.
Computation of the stamp duty fee is as follows:
ONE YEAR LEASE OR LESS
(rental amount x 12) / 250 and round up to the nearest dollar + $2 for duplicate copy
MORE THAN ONE YEAR to LESS THAN THREE YEARS LEASE
(rental amount x 12) / 250, round up to the nearest dollar and multiply by 2 + $2 for duplicate copy
MORE THAN THREE YEARS LEASE
(rental amount x 12) / 250, round up to the nearest dollar and multiply by 4 + $2 for duplicate copy
Deposit for Power Supply (electricity, water, gas) is usually around $300 for apartments and houses, $500 for bungalows. Please note that the deposit will only be payable when u receive your first bill. Other services like Cable TV or Internet will depend on the different type of packages that you have applied. TV licence is $110 a year and is payable by the Tenant.
3. What is stamp duty and why is it necessary?
In Singapore, Tenancy Agreement will need to be stamped by the Inland Revenue Authority of Singapore. Only after the Tenancy is stamped, can it be considered a valid contract and submitted as evidence in court for any disputes that may arise in the future with your landlord. This is to protect the interest of both parties.
4. How do I apply for Power Supply, home telephone line, Singapore Cable Vision (SCV) and TV licence?
Power Supply - Your realtor will apply for you. Documents needed - signed application form, photocopied passport, employment pass and the signed Tenancy Agreement.
Home telephone line - You need to go to Comcentre at Killiney Road personally if this is the first time you are applying for a line. Documents needed - original passport, employment pass and the signed Tenancy Agreement for verification. For existing customers, you can apply online at http://www.singtel.com.
Cable TV or Singapore Cable Vision (SCV) - You can apply online at http://starhub.com or http://singtel.com.
TV licence - TV licence can be paid at any Singapore Post Office. Documents needed - photocopied passport, employment pass and the signed Tenancy Agreement.
5. We have been told there are extra costs to watch for apart from the monthly rental. What are they?
As with any costs, as long as you are aware of them before hand, they are easier to manage. It's the "invisible" ones that catch people unaware. Beyond the monthly rental, you will have to pay your utilities bill (electricity, water etc.) Water costs are low - on average about $30 per month but electricity can be high if air conditioning is used often. The average electricity bill for a 3 bedroom apartment can range between S$100 to 200 per month but can be substantially higher if you stay in a large house or turn on the air-conditioning all the time. You are also usually responsible for the regular servicing of your air-conditioning units in your home (this will be indicated in your Tenancy Agreement). Other possible bills include maid's salary - from $350 upwards per month plus Government levy of $345 per month. If you rent a house with garden your extra costs may (unless included in the monthly rental) be a Gardener - average $350 per month. Pool cleaning services are an average of $150 per month. Pest Control is something you may also wish to consider on a monthly basis if you have a garden - average $100 per month. If you choose to live in an apartment / condominium the rental will include cost of services such as maintenance of facilities.
Understanding the costs of renting a house in Singapore
1. Is there any agency fee or commission if I engage EastLiving.com.sg or any other realtor in Singapore for my housing search, documentations and other assistance?
Yes and No. If the rental amount of the apartment / house you are renting is above $2,500, no agency fees will be payable by the tenant. If the rental amount is exactly $2,500 or less, the fee payable will be half a month's rent and above, depending on the lease duration.
2. Are there any other fees or expenses that I need to pay after I have signed the Tenancy Agreement?
Stamp duty fee, TV licence, deposit for Power Supply, Cable TV, Internet, etc.
Computation of the stamp duty fee is as follows:
ONE YEAR LEASE OR LESS
(rental amount x 12) / 250 and round up to the nearest dollar + $2 for duplicate copy
MORE THAN ONE YEAR to LESS THAN THREE YEARS LEASE
(rental amount x 12) / 250, round up to the nearest dollar and multiply by 2 + $2 for duplicate copy
MORE THAN THREE YEARS LEASE
(rental amount x 12) / 250, round up to the nearest dollar and multiply by 4 + $2 for duplicate copy
Deposit for Power Supply (electricity, water, gas) is usually around $300 for apartments and houses, $500 for bungalows. Please note that the deposit will only be payable when u receive your first bill. Other services like Cable TV or Internet will depend on the different type of packages that you have applied. TV licence is $110 a year and is payable by the Tenant.
3. What is stamp duty and why is it necessary?
In Singapore, Tenancy Agreement will need to be stamped by the Inland Revenue Authority of Singapore. Only after the Tenancy is stamped, can it be considered a valid contract and submitted as evidence in court for any disputes that may arise in the future with your landlord. This is to protect the interest of both parties.
4. How do I apply for Power Supply, home telephone line, Singapore Cable Vision (SCV) and TV licence?
Power Supply - Your realtor will apply for you. Documents needed - signed application form, photocopied passport, employment pass and the signed Tenancy Agreement.
Home telephone line - You need to go to Comcentre at Killiney Road personally if this is the first time you are applying for a line. Documents needed - original passport, employment pass and the signed Tenancy Agreement for verification. For existing customers, you can apply online at http://www.singtel.com.
Cable TV or Singapore Cable Vision (SCV) - You can apply online at http://starhub.com or http://singtel.com.
TV licence - TV licence can be paid at any Singapore Post Office. Documents needed - photocopied passport, employment pass and the signed Tenancy Agreement.
5. We have been told there are extra costs to watch for apart from the monthly rental. What are they?
As with any costs, as long as you are aware of them before hand, they are easier to manage. It's the "invisible" ones that catch people unaware. Beyond the monthly rental, you will have to pay your utilities bill (electricity, water etc.) Water costs are low - on average about $30 per month but electricity can be high if air conditioning is used often. The average electricity bill for a 3 bedroom apartment can range between S$100 to 200 per month but can be substantially higher if you stay in a large house or turn on the air-conditioning all the time. You are also usually responsible for the regular servicing of your air-conditioning units in your home (this will be indicated in your Tenancy Agreement). Other possible bills include maid's salary - from $350 upwards per month plus Government levy of $345 per month. If you rent a house with garden your extra costs may (unless included in the monthly rental) be a Gardener - average $350 per month. Pool cleaning services are an average of $150 per month. Pest Control is something you may also wish to consider on a monthly basis if you have a garden - average $100 per month. If you choose to live in an apartment / condominium the rental will include cost of services such as maintenance of facilities.
Housing matters: Understanding more about housing options in Singapore.
Housing Matters
Understanding more about housing options in Singapore.
1. I have seen the term "Landed Home" when referring to rental property in Singapore - what does it mean ?
"Landed Home" is the term usually used for houses with a garden. To Singapore realtors, this can mean a Terrace, Semi-Detached or a detached house (Bungalow). All three types refer to a landed house. They usually range from 2 storeys to 3 storeys high. Landed houses can comprise of 99 years lease, 999 years lease and Freehold tenure.
2. Can a foreigner or permanent resident buy a property in Singapore?
Foreigners are allowed to purchase condominiums and apartments in Singapore.
Some restricted property such as vacant land, landed properties such as bungalows, semi-detached and terrace houses, require prior approval before a purchase. Landed properties is a special class of residential property that Singaporeans aspire to own, and as such, remain restricted. Foreigners need to apply for approval from Singapore Land Authority before buying. For more details on application, visit the SLA website. Every application is considered on its merits. The main criteria are whether you are a permanent resident of Singapore and your economic contribution to Singapore.
3. Should I use one property agent or engage many agents?
Using only one agent will save you time and hassle as the agent would have a better understanding of your requirements after the first appointment. Also, you will avoid the embarassing and potentially time wasting scenario where different agents show you the same property. It is professionally more ethical and fair to both parties too when you engage one agent who works for your interests and can be assured that their efforts will not be in vain. When you engage several agents, usually they will not feel a commitment to work in your best interests as each may know that you are also working with others at the same time.
4. Ok. I have found a suitable apartment or house. What is next?
Inform your realtor of your interest. Thereafter, the realtor will prepare a Letter of Intent, stating your interest, rental amount and specific terms. After you have signed, the realtor will pass it to the rightful landlord together with one month rent (For 1 year's lease) as good faith deposit.
Thereafter, the landlord will prepare a Tenancy Agreement. Do read through the Tenancy Agreement carefully. Make sure that the diplomatic clause is included. Please note that most landlords will only include the diplomatic clause if the lease is more than a year.
5. What is a diplomatic clause?
A diplomatic clause in a typical Tenancy Agreement will look like:
Notwithstanding anything herein contained, if at any time after the expiration of TWELVE (12) months from the date of the commencement of this tenancy, the immediate occupant of the said premises, YOUR NAME shall be transferred out of the Republic of Singapore permanently by his firm, ceased to be employed the company or if for any cause whatsoever he shall be ordered to leave the Republic of Singapore, then and in such a case, it shall be lawful for the Tenant to determine this tenancy by giving not less than TWO ( 2 ) months' advance notice (this is in addition to the TWELVE (12) months aforesaid) in writing to the Landlord or by paying TWO ( 2 ) months' rent in lieu of such notice. Documentary evidence of such transfer, cessation or order shall be required and such notice shall be deemed to have commenced on such date as the Landlord shall have actually received such evidence.
This clause is to safe guard you if in the event you are no longer employed, you can terminate the lease after 12 months by giving 2 months notice. Thereafter, the security deposit will be refunded to you and there shall be no further claims by either party.
Understanding more about housing options in Singapore.
1. I have seen the term "Landed Home" when referring to rental property in Singapore - what does it mean ?
"Landed Home" is the term usually used for houses with a garden. To Singapore realtors, this can mean a Terrace, Semi-Detached or a detached house (Bungalow). All three types refer to a landed house. They usually range from 2 storeys to 3 storeys high. Landed houses can comprise of 99 years lease, 999 years lease and Freehold tenure.
2. Can a foreigner or permanent resident buy a property in Singapore?
Foreigners are allowed to purchase condominiums and apartments in Singapore.
Some restricted property such as vacant land, landed properties such as bungalows, semi-detached and terrace houses, require prior approval before a purchase. Landed properties is a special class of residential property that Singaporeans aspire to own, and as such, remain restricted. Foreigners need to apply for approval from Singapore Land Authority before buying. For more details on application, visit the SLA website. Every application is considered on its merits. The main criteria are whether you are a permanent resident of Singapore and your economic contribution to Singapore.
3. Should I use one property agent or engage many agents?
Using only one agent will save you time and hassle as the agent would have a better understanding of your requirements after the first appointment. Also, you will avoid the embarassing and potentially time wasting scenario where different agents show you the same property. It is professionally more ethical and fair to both parties too when you engage one agent who works for your interests and can be assured that their efforts will not be in vain. When you engage several agents, usually they will not feel a commitment to work in your best interests as each may know that you are also working with others at the same time.
4. Ok. I have found a suitable apartment or house. What is next?
Inform your realtor of your interest. Thereafter, the realtor will prepare a Letter of Intent, stating your interest, rental amount and specific terms. After you have signed, the realtor will pass it to the rightful landlord together with one month rent (For 1 year's lease) as good faith deposit.
Thereafter, the landlord will prepare a Tenancy Agreement. Do read through the Tenancy Agreement carefully. Make sure that the diplomatic clause is included. Please note that most landlords will only include the diplomatic clause if the lease is more than a year.
5. What is a diplomatic clause?
A diplomatic clause in a typical Tenancy Agreement will look like:
Notwithstanding anything herein contained, if at any time after the expiration of TWELVE (12) months from the date of the commencement of this tenancy, the immediate occupant of the said premises, YOUR NAME shall be transferred out of the Republic of Singapore permanently by his firm, ceased to be employed the company or if for any cause whatsoever he shall be ordered to leave the Republic of Singapore, then and in such a case, it shall be lawful for the Tenant to determine this tenancy by giving not less than TWO ( 2 ) months' advance notice (this is in addition to the TWELVE (12) months aforesaid) in writing to the Landlord or by paying TWO ( 2 ) months' rent in lieu of such notice. Documentary evidence of such transfer, cessation or order shall be required and such notice shall be deemed to have commenced on such date as the Landlord shall have actually received such evidence.
This clause is to safe guard you if in the event you are no longer employed, you can terminate the lease after 12 months by giving 2 months notice. Thereafter, the security deposit will be refunded to you and there shall be no further claims by either party.
Investing in Singapore: Can Foreigners Open a Bank Account in Singapore?
Banking and Finance in Singapore
Can Foreigners Open a Bank Account in Singapore?
Is it difficult or where can i change my money to Singapore currency?
Can Foreigners Open a Bank Account in Singapore?
To open an account in Singapore, you will need copies of your passport, employer's letter, and a statement from a bank in your home country. Most of the major banks in the world are represented here. Singapore has extensive facilities of automated teller machines (ATMs) and a cashless payment system called NETS for your paying convenience.
If you plan to invest in or stay in Singapore for an extended period, using these facilities are highly recommended. DBS and POSB bank accounts are the most commonly used in Singapore so if you are intending to lease out your Singapore apartment while staying abroad, having a bank account with either bank will make the monthly rent collection a far more painless affair.
You will be able to do online banking and monitor when payments are made. Also, where your agent has to manage properties on your behalf, petty cash payments for repairs or maintenances can be easily transferred to him/her, without the added costs of a Telegraphic Transfer.
Is it difficult or where can i change my money to Singapore currency?
Banks and hotels can change money and most shopping complexes have a licensed money changer. Visitors are advised not to change money with an unlicensed operator. Most banks open from 9.30am to 3pm on weekdays and 9.30am to 11.30am on Saturdays. Places where money changers congregate are in Chinatown, Little India and Peninsula Shopping Centre in City Hall.
Are credit cards widely accepted in Singapore?
Credit cards are widely accepted in Singapore. Hotels, retailers, restaurants, travel agents and even individual taxis accept international credit cards.
Just in case you need the common numbers to dial:
American Express Tel: 62998133
Diners Card Tel: 62944222
Master Card Tel: 65332888
Visa Card Tel: 1-800-3451345 (Service Centre)
CapitaLand quarterly profits seen sharply lower
August 1, 2008
CapitaLand quarterly profits seen sharply lower
Slower sales, absence of one-time gains cited; CityDev seen holding
steady
(SINGAPORE) South-east Asia's biggest property developer, CapitaLand,
should report sharply lower quarterly profits as home sales slowed,
and as it is unable to repeat large one-off gains recorded a year
ago.
But earnings for its main rival City Developments, Singapore's No 2
developer by stock market value, are expected to hold steady as it
books income from strong mass market sales during the four-year
property boom.
CityDev, unlike other Singapore developers, does not book revaluation
gains as profit unless the property is sold.
A worsening economic outlook has led to a steep drop in home sales
volumes, with some analysts predicting home prices will fall by up to
40 per cent over the next three years.
'CapitaLand and other developers are finding market conditions this
year tougher than expected,' said Nomura analyst Tony Darwell, who
sees the price of luxury apartments falling 32 per cent by 2010.
Analysts do not give quarterly estimates for Singapore property firms
because it is hard to predict when they will book profits from their
various projects.
CapitaLand is expected to post a 64 per cent drop in full-year to
December 2008 earnings to S$1.02 billion from S$2.8 billion last
year, according to the average of 16 analysts polled by Reuters
Estimates. Its 2007 results had been boosted by US$1.1 billion in one-
off revaluation gains.
'There were very substantial revaluation gains which gave the second
quarter a substantial boost last year. There won't be much of that
this year,' said JPMorgan analyst Chris Gee, adding that
contributions from Australia and China will also be weaker.
AustraLand, 54 per cent owned by CapitaLand, reported a 79 per cent
plunge in earnings this week and announced a rights issue to raise up
to A$557 million.
CapitaLand has committed to subscribe to A$302 million in the issue,
which could boost its stake in AustraLand to 70 per cent.
'This highlights risks of possible asset writedowns, especially
developers with regional exposure . . . and further funding needs
going forward, especially for CapitaLand's Reits,' said Credit Suisse
analyst Tricia Song.
CapitaLand had in the past years spun off its assets into real estate
investment trusts such as CapitaMall, CapitaCommercial and Ascott
Residence, but there are concerns that such trusts may face financing
problems due to the global credit crunch.
CityDev is expected to post a 1.8 per cent rise in full-year 2008
earnings to S$738 million, according to analysts polled by Reuters,
with earnings supported by demand for its mass market residential
projects launched earlier this year.
'We favour CityDev as the mass market segment is still resilient.
Mass market sales are predicated on economic drivers and we're still
seeing continued GDP growth in Singapore,' said DBS Vickers analyst
Adrian Chua.
Keppel Land, Singapore's third-biggest property developer by market
value, posted on Wednesday a 16.4 per cent fall in quarterly profit,
reflecting a decline in property sales in Singapore and abroad.
CapitaLand shares have dropped around 10 per cent so far this year
amid a global equity market selloff fuelled by worries about slowing
economic growth and the US sub-prime mortgage crisis. CityDev shares
lost about 20 per cent in the same period.
CapitaLand quarterly profits seen sharply lower
Slower sales, absence of one-time gains cited; CityDev seen holding
steady
(SINGAPORE) South-east Asia's biggest property developer, CapitaLand,
should report sharply lower quarterly profits as home sales slowed,
and as it is unable to repeat large one-off gains recorded a year
ago.
But earnings for its main rival City Developments, Singapore's No 2
developer by stock market value, are expected to hold steady as it
books income from strong mass market sales during the four-year
property boom.
CityDev, unlike other Singapore developers, does not book revaluation
gains as profit unless the property is sold.
A worsening economic outlook has led to a steep drop in home sales
volumes, with some analysts predicting home prices will fall by up to
40 per cent over the next three years.
'CapitaLand and other developers are finding market conditions this
year tougher than expected,' said Nomura analyst Tony Darwell, who
sees the price of luxury apartments falling 32 per cent by 2010.
Analysts do not give quarterly estimates for Singapore property firms
because it is hard to predict when they will book profits from their
various projects.
CapitaLand is expected to post a 64 per cent drop in full-year to
December 2008 earnings to S$1.02 billion from S$2.8 billion last
year, according to the average of 16 analysts polled by Reuters
Estimates. Its 2007 results had been boosted by US$1.1 billion in one-
off revaluation gains.
'There were very substantial revaluation gains which gave the second
quarter a substantial boost last year. There won't be much of that
this year,' said JPMorgan analyst Chris Gee, adding that
contributions from Australia and China will also be weaker.
AustraLand, 54 per cent owned by CapitaLand, reported a 79 per cent
plunge in earnings this week and announced a rights issue to raise up
to A$557 million.
CapitaLand has committed to subscribe to A$302 million in the issue,
which could boost its stake in AustraLand to 70 per cent.
'This highlights risks of possible asset writedowns, especially
developers with regional exposure . . . and further funding needs
going forward, especially for CapitaLand's Reits,' said Credit Suisse
analyst Tricia Song.
CapitaLand had in the past years spun off its assets into real estate
investment trusts such as CapitaMall, CapitaCommercial and Ascott
Residence, but there are concerns that such trusts may face financing
problems due to the global credit crunch.
CityDev is expected to post a 1.8 per cent rise in full-year 2008
earnings to S$738 million, according to analysts polled by Reuters,
with earnings supported by demand for its mass market residential
projects launched earlier this year.
'We favour CityDev as the mass market segment is still resilient.
Mass market sales are predicated on economic drivers and we're still
seeing continued GDP growth in Singapore,' said DBS Vickers analyst
Adrian Chua.
Keppel Land, Singapore's third-biggest property developer by market
value, posted on Wednesday a 16.4 per cent fall in quarterly profit,
reflecting a decline in property sales in Singapore and abroad.
CapitaLand shares have dropped around 10 per cent so far this year
amid a global equity market selloff fuelled by worries about slowing
economic growth and the US sub-prime mortgage crisis. CityDev shares
lost about 20 per cent in the same period.
Allgreen Q2 profit falls 36.5% as revenue slumps
August 1, 2008
Allgreen Q2 profit falls 36.5% as revenue slumps
Company expects lower earnings from development properties in H2
By LYNETTE KHOO
DENTED by continued weak sentiment in the property market, Allgreen
Properties' net profit for the second quarter ended June 30 fell 36.5
per cent to $17.19 million.
This came as revenue for the quarter slumped 39 per cent to $74.12
million due mainly to slower residential sales.
This resulted in the number of units sold in the first half of this
year dropping significantly from the previous corresponding period.
Q2 earnings per share fell to 1.08 cents from 1.74 cents in Q2 2007.
A bright spot in Q2 was the continued improvement in revenue from
investment properties from a year ago because of higher rental rates
from offices, serviced apartments and retail space.
The revenue from Traders Hotel also improved, thanks to higher room
rates.
'The current poor sentiment in the property market is likely to
continue for the rest of the year and will result in lower profits
from development properties for the second half of 2008 as compared
to the second half of 2007,' Allgreen said in its financial statement
yesterday.
For the first half, Allgreen's net profit slipped 54.8 per cent to
$34.64 million, mainly due to lower revenue and lower writeback of
provision for diminution in value of development properties.
Its revenue of $162 million for the first six months was 46.52 lower
than a year ago, mainly due to the decrease in revenue from
development properties.
Distribution and selling expenses for the first half rose 36.3 per
cent to $9.63 million due mainly to higher showflat expenses as the
group prepared its projects for launches.
Allgreen also incurred higher finance cost as borrowings increased
for overseas investments, both in China and Vietnam, and for land
purchases in Singapore.
'Despite the drop in revenue and profits in the first half, the
group's results for the year 2008 are expected to be profitable,' it
said.
Allgreen shares closed unchanged at 93 cents yesterday.
Allgreen Q2 profit falls 36.5% as revenue slumps
Company expects lower earnings from development properties in H2
By LYNETTE KHOO
DENTED by continued weak sentiment in the property market, Allgreen
Properties' net profit for the second quarter ended June 30 fell 36.5
per cent to $17.19 million.
This came as revenue for the quarter slumped 39 per cent to $74.12
million due mainly to slower residential sales.
This resulted in the number of units sold in the first half of this
year dropping significantly from the previous corresponding period.
Q2 earnings per share fell to 1.08 cents from 1.74 cents in Q2 2007.
A bright spot in Q2 was the continued improvement in revenue from
investment properties from a year ago because of higher rental rates
from offices, serviced apartments and retail space.
The revenue from Traders Hotel also improved, thanks to higher room
rates.
'The current poor sentiment in the property market is likely to
continue for the rest of the year and will result in lower profits
from development properties for the second half of 2008 as compared
to the second half of 2007,' Allgreen said in its financial statement
yesterday.
For the first half, Allgreen's net profit slipped 54.8 per cent to
$34.64 million, mainly due to lower revenue and lower writeback of
provision for diminution in value of development properties.
Its revenue of $162 million for the first six months was 46.52 lower
than a year ago, mainly due to the decrease in revenue from
development properties.
Distribution and selling expenses for the first half rose 36.3 per
cent to $9.63 million due mainly to higher showflat expenses as the
group prepared its projects for launches.
Allgreen also incurred higher finance cost as borrowings increased
for overseas investments, both in China and Vietnam, and for land
purchases in Singapore.
'Despite the drop in revenue and profits in the first half, the
group's results for the year 2008 are expected to be profitable,' it
said.
Allgreen shares closed unchanged at 93 cents yesterday.
PropNex expands into auction, management
August 1, 2008
PropNex expands into auction, management
It'll focus on private homes, commercial realty for auction
By UMA SHANKARI
REAL estate firm PropNex is adding auction and management consultancy
services to its repertoire in a bid to diversify its revenue stream,
it said yesterday.
PropNex's auction division, set up three months ago, will conduct its
first auction in September. The firm will focus on private homes and
commercial properties, said PropNex chief executive Mohamed Ismail.
And to provide a comprehensive suite of real estate services to its
clients, PropNex will begin providing management services.
The firm bought Oracle Property Consultants Pte Ltd two months ago
and set up its own unit to address the growing demand for
professional property management services. Some properties in
PropNex's portfolio include The Ladyhill and 1 Moulmein Rise.
The firm currently earns more than 80 per cent of its income from
brokering residential sales. According to Mr Ismail, PropNex has 38
per cent market share in the public housing market, as well as 33 per
cent of the private home secondary market.
The other 20 per cent of the revenue comes from the firm's
commercial, investments and project marketing divisions.
But in three years' time, Mr Ismail hopes that brokering residential
deals will account for just 50 per cent of revenue as the firm grows
its other business segments, including the new auction and management
divisions.
PropNex saw its revenue grow to $28 million in Q2 2008, from $24
million a year ago. For the whole of 2007, revenue came to $108
million, up from $60 million in 2006.
The firm made news recently when it announced that it was firing
about 2,800 agents who have been with the firm for over a year, but
did not record a single transaction.
The move, said Mr Ismail, was part of PropNex's attempts to clean up
a largely unregulated industry.
Yesterday, PropNex also unveiled several other new initiatives to
boost self-regulation.
Among other measures, all PropNex agents will now have to sign up for
compulsory professional indemnity insurance and new agents will have
to take a proficiency test.
PropNex expands into auction, management
It'll focus on private homes, commercial realty for auction
By UMA SHANKARI
REAL estate firm PropNex is adding auction and management consultancy
services to its repertoire in a bid to diversify its revenue stream,
it said yesterday.
PropNex's auction division, set up three months ago, will conduct its
first auction in September. The firm will focus on private homes and
commercial properties, said PropNex chief executive Mohamed Ismail.
And to provide a comprehensive suite of real estate services to its
clients, PropNex will begin providing management services.
The firm bought Oracle Property Consultants Pte Ltd two months ago
and set up its own unit to address the growing demand for
professional property management services. Some properties in
PropNex's portfolio include The Ladyhill and 1 Moulmein Rise.
The firm currently earns more than 80 per cent of its income from
brokering residential sales. According to Mr Ismail, PropNex has 38
per cent market share in the public housing market, as well as 33 per
cent of the private home secondary market.
The other 20 per cent of the revenue comes from the firm's
commercial, investments and project marketing divisions.
But in three years' time, Mr Ismail hopes that brokering residential
deals will account for just 50 per cent of revenue as the firm grows
its other business segments, including the new auction and management
divisions.
PropNex saw its revenue grow to $28 million in Q2 2008, from $24
million a year ago. For the whole of 2007, revenue came to $108
million, up from $60 million in 2006.
The firm made news recently when it announced that it was firing
about 2,800 agents who have been with the firm for over a year, but
did not record a single transaction.
The move, said Mr Ismail, was part of PropNex's attempts to clean up
a largely unregulated industry.
Yesterday, PropNex also unveiled several other new initiatives to
boost self-regulation.
Among other measures, all PropNex agents will now have to sign up for
compulsory professional indemnity insurance and new agents will have
to take a proficiency test.
Developers report drop in revenue
Aug 1, 2008
Developers report drop in revenue
TWO property developers have reported a drop in second-quarter
revenue, saying poor sentiment in the property market has led to
lower sales - a trend that is likely to continue for the rest of the
year.
Allgreen Properties yesterday posted a 39.1 per cent drop in revenue
to $74.1 million for the three months to June 30. Net profit fell
36.5 per cent to $17.2 million.
It said continuing weak market sentiment was due to the US sub-prime
issue, escalating oil prices and inflationary pressure. It expects
this to persist in the second half, resulting in lower profits, but
believes it will stay profitable for the year.
Allgreen's earnings per share for the quarter slipped to 1.08 cents,
from 1.74 cents a year earlier. Net asset value eased to $1.38 as at
June 30, from $1.40 as at Dec 31.
Meanwhile, MCL Land's revenue plunged in the second quarter to
US$353,000 (S$482,000), from US$133.5 million last year. But the
group's net profit rose 45 per cent in the quarter to US$3.2 million,
thanks to a write-back. Earnings per share rose 43 per cent to 0.86
US cents, while net asset value per share inched up to US$1.45 as at
June 30, from US$1.42 as at Dec 31.
MCL Land expects the completion of Mera Springs and The Esta in the
second half to boost its overall performance.
Developers report drop in revenue
TWO property developers have reported a drop in second-quarter
revenue, saying poor sentiment in the property market has led to
lower sales - a trend that is likely to continue for the rest of the
year.
Allgreen Properties yesterday posted a 39.1 per cent drop in revenue
to $74.1 million for the three months to June 30. Net profit fell
36.5 per cent to $17.2 million.
It said continuing weak market sentiment was due to the US sub-prime
issue, escalating oil prices and inflationary pressure. It expects
this to persist in the second half, resulting in lower profits, but
believes it will stay profitable for the year.
Allgreen's earnings per share for the quarter slipped to 1.08 cents,
from 1.74 cents a year earlier. Net asset value eased to $1.38 as at
June 30, from $1.40 as at Dec 31.
Meanwhile, MCL Land's revenue plunged in the second quarter to
US$353,000 (S$482,000), from US$133.5 million last year. But the
group's net profit rose 45 per cent in the quarter to US$3.2 million,
thanks to a write-back. Earnings per share rose 43 per cent to 0.86
US cents, while net asset value per share inched up to US$1.45 as at
June 30, from US$1.42 as at Dec 31.
MCL Land expects the completion of Mera Springs and The Esta in the
second half to boost its overall performance.
PropNex takes new measures to raise benchmark for agents
Aug 1, 2008
PropNex takes new measures to raise benchmark for agents
By Jessica Cheam
PROPERTY agency PropNex has unveiled a range of initiatives aimed at
improving the quality of its agents.
The measures range from ensuring that agents are properly insured to
proficiency tests covering subject like ethics and HDB regulations.
PropNex chief executive Mohamed Ismail said the new benchmark could
result in 500 below-par agents being sacked by the end of the year.
This will be in addition to its drastic axing of 2,800 inactive
agents last week.
'It's no longer a numbers game,' said Mr Ismail yesterday. 'We're
focusing on quality rather than quantity. We want to help move the
industry towards professionalism.'
PropNex's actions follow a spike in consumer complaints about estate
agents which has resulted in the profession being labelled a 'cowboy
industry'.
Consumers lodged 1,113 complaints about the property industry last
year, up from 991 in 2006 and 672 the year before.
The PropNex measures include a new in-house practising certificate,
compulsory for all agents operating under the firm's name.
Agents must also take out professional indemnity insurance that
protects them against the cost of lawsuits and offers consumers
compensation when agents mess up. New entrants and inactive agents
must also pass a new proficiency test - in the form of a multiple-
choice exam - that will cover subjects like code of conduct and
ethics, the HDB and private property markets.
PropNex's move is the latest in a series of industry initiatives
aimed at raising the bar for agents.
The Institute of Estate Agents (IEA) launched a new practising
certificate for members last year. The IEA represents about 1,600
agents and aims to act for the entire industry eventually.
There is also a three-year-old Singapore Accredited Estate Agencies
scheme, which conducts the original Common Examination for House
Agents (Ceha).
A scaled-down version of the Ceha was launched recently, backed by
the newly formed Association of Singapore Estate Agencies. This aims
to rally bosses to raise standards.
Industry players say there are just too many schemes and none is
compulsory.
Agency boss Albert Lu of C&H Realty said the certificates 'won't make
a difference if an agent is intent on illegal activities'.
The solution is to have a central body that functions like the Law
Society with the power to discipline members. 'Rogue agents can then
be fined or suspended; it solves a lot of problems in the industry,'
said Mr Lu.
ERA Realty and HSR Property Group say they already have in place high
standards for their agents.
ERA has about 2,800 agents, all of whom must go through a training
regime. It also terminates about 500 inactive agents a year.
Neither ERA nor HSR requires agents to have indemnity insurance.
There are an estimated 30,000 agents in the market - all unregulated.
The Inland Revenue Authority of Singapore vets only estate agencies,
but not individual agents.
PropNex takes new measures to raise benchmark for agents
By Jessica Cheam
PROPERTY agency PropNex has unveiled a range of initiatives aimed at
improving the quality of its agents.
The measures range from ensuring that agents are properly insured to
proficiency tests covering subject like ethics and HDB regulations.
PropNex chief executive Mohamed Ismail said the new benchmark could
result in 500 below-par agents being sacked by the end of the year.
This will be in addition to its drastic axing of 2,800 inactive
agents last week.
'It's no longer a numbers game,' said Mr Ismail yesterday. 'We're
focusing on quality rather than quantity. We want to help move the
industry towards professionalism.'
PropNex's actions follow a spike in consumer complaints about estate
agents which has resulted in the profession being labelled a 'cowboy
industry'.
Consumers lodged 1,113 complaints about the property industry last
year, up from 991 in 2006 and 672 the year before.
The PropNex measures include a new in-house practising certificate,
compulsory for all agents operating under the firm's name.
Agents must also take out professional indemnity insurance that
protects them against the cost of lawsuits and offers consumers
compensation when agents mess up. New entrants and inactive agents
must also pass a new proficiency test - in the form of a multiple-
choice exam - that will cover subjects like code of conduct and
ethics, the HDB and private property markets.
PropNex's move is the latest in a series of industry initiatives
aimed at raising the bar for agents.
The Institute of Estate Agents (IEA) launched a new practising
certificate for members last year. The IEA represents about 1,600
agents and aims to act for the entire industry eventually.
There is also a three-year-old Singapore Accredited Estate Agencies
scheme, which conducts the original Common Examination for House
Agents (Ceha).
A scaled-down version of the Ceha was launched recently, backed by
the newly formed Association of Singapore Estate Agencies. This aims
to rally bosses to raise standards.
Industry players say there are just too many schemes and none is
compulsory.
Agency boss Albert Lu of C&H Realty said the certificates 'won't make
a difference if an agent is intent on illegal activities'.
The solution is to have a central body that functions like the Law
Society with the power to discipline members. 'Rogue agents can then
be fined or suspended; it solves a lot of problems in the industry,'
said Mr Lu.
ERA Realty and HSR Property Group say they already have in place high
standards for their agents.
ERA has about 2,800 agents, all of whom must go through a training
regime. It also terminates about 500 inactive agents a year.
Neither ERA nor HSR requires agents to have indemnity insurance.
There are an estimated 30,000 agents in the market - all unregulated.
The Inland Revenue Authority of Singapore vets only estate agencies,
but not individual agents.
Streetdirectory.com back in business
Aug 1, 2008
Streetdirectory.com back in business
Online map website relaunched with new owner and maps created from
scratch
By Irene Tham
STREETDIRECTORY.COM is back online.
The website, whose street maps were found by a court to have violated
the copyright of the Singapore Land Authority (SLA), was taken
offline in late March but is being relaunched today.
Two things are new about it: The site has new maps, created from
scratch over the past nine months, and a new owner.
JobsDB, Asia's largest online recruitment firm based in Hong Kong,
bought the streetdirectory. com Web address and its assets from
Singapore-based Virtual Map in the fourth quarter of last year for an
undisclosed sum.
The acquisition was kept under wraps until yesterday.
Mr Samuel Sung, chairman of JobsDB, told The Straits Times: 'Our
online recruitment and classified ads businesses need maps. And
streetdirectory.com is a good domain name to own.'
The revamped site offers users the conveniences of its predecessor,
such as location search by postal code, building and street names.
But the site now also allows map users to pan across a particular
neighbourhood by holding down and dragging the mouse.
Users will also be able to look for jobs based on location, since the
online street directory has been integrated with JobsDB's recruitment
engine.
A new company, called Streetdirectory, was recently incorporated here
to run the online map business spanning three countries.
The outfit has about 70 people, including land surveyors and
cartographers who chart the landmarks, buildings and roads here and
in Malaysia and Indonesia.
Mr Sung, asked why he chose to build the maps from scratch when he
could buy them from other providers, said: 'We're starting on a clean
slate. No one can question our maps. We own them.'
More than 10 senior managers from Virtual Map have joined the new
entity, including former Virtual Map managing director Firdhaus
Akber, now the managing editor at Streetdirectory.
Virtual Map is still awaiting judgment from the Court of Appeal,
Singapore's highest court, on its application to file an appeal
against an earlier High Court decision.
Meanwhile, SLA has applied to strike out Virtual Map's notice of
appeal.
The problem between the two former business partners began in 2004,
when SLA filed a suit against Virtual Map for using its copyrighted
materials after it no longer had the permission to do so.
SLA won the case in a district court. Virtual Map then appealed to
the High Court against the decision but was turned down.
When the High Court ordered Virtual Map to take down the maps that
infringed SLA's copyright in March, the map company went to the Court
of Appeal, the judgment of which is pending.
Whatever the Court of Appeal decides, Mr Akber said, Virtual Map
will 'fulfil its obligations to SLA and the lawyers'.
'We're not going to run away,' he said.
At its peak, Virtual Map had about 500 corporate customers in Asia,
for whom it customised maps used, for example, on company websites
and brochures.
Today, that customer base has under 100 names, said Mr Akber, who
expressed hope that customers would recontract with Streetdirectory.
Virtual Map will remain open till the end of this year to service
existing contracts. Until then, it will resell Streetdirectory's new
maps to these customers.
Streetdirectory.com back in business
Online map website relaunched with new owner and maps created from
scratch
By Irene Tham
STREETDIRECTORY.COM is back online.
The website, whose street maps were found by a court to have violated
the copyright of the Singapore Land Authority (SLA), was taken
offline in late March but is being relaunched today.
Two things are new about it: The site has new maps, created from
scratch over the past nine months, and a new owner.
JobsDB, Asia's largest online recruitment firm based in Hong Kong,
bought the streetdirectory. com Web address and its assets from
Singapore-based Virtual Map in the fourth quarter of last year for an
undisclosed sum.
The acquisition was kept under wraps until yesterday.
Mr Samuel Sung, chairman of JobsDB, told The Straits Times: 'Our
online recruitment and classified ads businesses need maps. And
streetdirectory.com is a good domain name to own.'
The revamped site offers users the conveniences of its predecessor,
such as location search by postal code, building and street names.
But the site now also allows map users to pan across a particular
neighbourhood by holding down and dragging the mouse.
Users will also be able to look for jobs based on location, since the
online street directory has been integrated with JobsDB's recruitment
engine.
A new company, called Streetdirectory, was recently incorporated here
to run the online map business spanning three countries.
The outfit has about 70 people, including land surveyors and
cartographers who chart the landmarks, buildings and roads here and
in Malaysia and Indonesia.
Mr Sung, asked why he chose to build the maps from scratch when he
could buy them from other providers, said: 'We're starting on a clean
slate. No one can question our maps. We own them.'
More than 10 senior managers from Virtual Map have joined the new
entity, including former Virtual Map managing director Firdhaus
Akber, now the managing editor at Streetdirectory.
Virtual Map is still awaiting judgment from the Court of Appeal,
Singapore's highest court, on its application to file an appeal
against an earlier High Court decision.
Meanwhile, SLA has applied to strike out Virtual Map's notice of
appeal.
The problem between the two former business partners began in 2004,
when SLA filed a suit against Virtual Map for using its copyrighted
materials after it no longer had the permission to do so.
SLA won the case in a district court. Virtual Map then appealed to
the High Court against the decision but was turned down.
When the High Court ordered Virtual Map to take down the maps that
infringed SLA's copyright in March, the map company went to the Court
of Appeal, the judgment of which is pending.
Whatever the Court of Appeal decides, Mr Akber said, Virtual Map
will 'fulfil its obligations to SLA and the lawyers'.
'We're not going to run away,' he said.
At its peak, Virtual Map had about 500 corporate customers in Asia,
for whom it customised maps used, for example, on company websites
and brochures.
Today, that customer base has under 100 names, said Mr Akber, who
expressed hope that customers would recontract with Streetdirectory.
Virtual Map will remain open till the end of this year to service
existing contracts. Until then, it will resell Streetdirectory's new
maps to these customers.
Certification
Aug 1, 2008
Certification
* November 2005
- The Singapore Accredited Estate Agencies scheme is launched.
It administers the Common Examination for House Agents (Ceha) and
aims for all agents to pass by 2009.
* September 2007
- The Institute of Estate Agents, formed in 1998, launches
a 'practising certificate' for all its members.
* February 2008
- A scaled- down version of the Ceha for housing agents is launched
by the newly formed Association of Singapore Estate Agencies.
* July 2008
- PropNex launches its own in-house practising certificate requiring
agents to get professional indemnity insurance. New entrants and
inactive agents must pass a proficiency test.
All the above schemes are not compulsory by law for property agents.
Certification
* November 2005
- The Singapore Accredited Estate Agencies scheme is launched.
It administers the Common Examination for House Agents (Ceha) and
aims for all agents to pass by 2009.
* September 2007
- The Institute of Estate Agents, formed in 1998, launches
a 'practising certificate' for all its members.
* February 2008
- A scaled- down version of the Ceha for housing agents is launched
by the newly formed Association of Singapore Estate Agencies.
* July 2008
- PropNex launches its own in-house practising certificate requiring
agents to get professional indemnity insurance. New entrants and
inactive agents must pass a proficiency test.
All the above schemes are not compulsory by law for property agents.
Thursday, July 31, 2008
Uphill climb Down Under for some S'pore investments
July 31, 2008
Uphill climb Down Under for some S'pore investments
ABC Learning, Australand struggle but Optus manages to hold its own
By SIOW LI SEN
(SINGAPORE) It's not only in the US but in Australia too that the
global credit crunch has hurt some of Temasek Holdings' investments.
The price of ABC Learning, the world's largest listed childcare
provider has collapsed almost 90 per cent from when Temasek first
bought into the company in May 2007 at A$7.30 a share.
Yesterday, the troubled ABC closed at 82.5 Aussie cents.
ABC has been selling assets to pay off its debt of A$1.7 billion
(S$2.2 billion) - loans it took to fund its rapid expansion last year
in the United States.
ABC is aiming to raise A$800 million from sales in the US and the UK.
Temasek Holdings had first invested A$401.5 million for a 12 per cent
stake in ABC in May last year. Then early this year, as the stock of
ABC plunged, Temasek raised its stake to 14.7 per cent.
Temasek said in a statement to the Australian stock exchange that it
paid between A$2.14 and A$4.20 per share for the nearly 12 million
shares it bought mainly in February.
But its holding in ABC has been pared back slightly to 12.68 per cent
after the childcare provider completed an A$82 million equity
placement in June.
Lazard Asset Management is now ABC's largest shareholder with 12.93
per cent, followed by Temasek.
Another Temasek-related entity that needs money is Australand, a
property company which has announced a one-for-one rights issue at
A$0.60 a share to raise A$557 million.
CapitaLand, which owns 54 per cent of Australand, is committing A$302
million to the rights issue and if all minorities do not take up
their entitlements, CapitaLand's stake could increase to 70 per cent,
said a JP Morgan report yesterday.
This week, Australand said property revaluation and project writedown
have resulted in a 79 per cent year-on-year fall in net profit to
A$25.6 million for the half-year ended June 30, 2008.
The assets are located predominantly in Sydney, which Australand says
has continued to 'suffer more difficult market conditions with no
improvement forecast in the short to medium term'.
Australand, acquired by CapitaLand's predecessor DBS Land in 1994,
went public in 1997 and is listed in Singapore too, where it is
rarely traded. In 2003, it was restructured into a property trust.
Australand last traded at 97.5 Aussie cents and has fallen almost 60
per cent year to date.
A Temasek spokeswoman said 'no comment' when asked how it viewed the
performance of its investments in Australia.
But one Australian asset owned by Temasek-linked company Singapore
Telecommunications that has done relatively well is its unit Optus,
the second largest telco after Telstra.
SingTel is now listed in Australia, after it bought Optus in 2001.
Last year, Optus's revenue of A$7.8 billion made up 67 per cent of
SingTel's group revenue of S$14.8 billion.
SingTel yesterday closed here at $3.57, down 11 per cent year to date
outperforming the benchmark Straits Times Index, which is down more
than 15 per cent.
Uphill climb Down Under for some S'pore investments
ABC Learning, Australand struggle but Optus manages to hold its own
By SIOW LI SEN
(SINGAPORE) It's not only in the US but in Australia too that the
global credit crunch has hurt some of Temasek Holdings' investments.
The price of ABC Learning, the world's largest listed childcare
provider has collapsed almost 90 per cent from when Temasek first
bought into the company in May 2007 at A$7.30 a share.
Yesterday, the troubled ABC closed at 82.5 Aussie cents.
ABC has been selling assets to pay off its debt of A$1.7 billion
(S$2.2 billion) - loans it took to fund its rapid expansion last year
in the United States.
ABC is aiming to raise A$800 million from sales in the US and the UK.
Temasek Holdings had first invested A$401.5 million for a 12 per cent
stake in ABC in May last year. Then early this year, as the stock of
ABC plunged, Temasek raised its stake to 14.7 per cent.
Temasek said in a statement to the Australian stock exchange that it
paid between A$2.14 and A$4.20 per share for the nearly 12 million
shares it bought mainly in February.
But its holding in ABC has been pared back slightly to 12.68 per cent
after the childcare provider completed an A$82 million equity
placement in June.
Lazard Asset Management is now ABC's largest shareholder with 12.93
per cent, followed by Temasek.
Another Temasek-related entity that needs money is Australand, a
property company which has announced a one-for-one rights issue at
A$0.60 a share to raise A$557 million.
CapitaLand, which owns 54 per cent of Australand, is committing A$302
million to the rights issue and if all minorities do not take up
their entitlements, CapitaLand's stake could increase to 70 per cent,
said a JP Morgan report yesterday.
This week, Australand said property revaluation and project writedown
have resulted in a 79 per cent year-on-year fall in net profit to
A$25.6 million for the half-year ended June 30, 2008.
The assets are located predominantly in Sydney, which Australand says
has continued to 'suffer more difficult market conditions with no
improvement forecast in the short to medium term'.
Australand, acquired by CapitaLand's predecessor DBS Land in 1994,
went public in 1997 and is listed in Singapore too, where it is
rarely traded. In 2003, it was restructured into a property trust.
Australand last traded at 97.5 Aussie cents and has fallen almost 60
per cent year to date.
A Temasek spokeswoman said 'no comment' when asked how it viewed the
performance of its investments in Australia.
But one Australian asset owned by Temasek-linked company Singapore
Telecommunications that has done relatively well is its unit Optus,
the second largest telco after Telstra.
SingTel is now listed in Australia, after it bought Optus in 2001.
Last year, Optus's revenue of A$7.8 billion made up 67 per cent of
SingTel's group revenue of S$14.8 billion.
SingTel yesterday closed here at $3.57, down 11 per cent year to date
outperforming the benchmark Straits Times Index, which is down more
than 15 per cent.
End of the road for 174 Seletar colonial homes
July 31, 2008
End of the road for 174 Seletar colonial homes
As aerospace park takes shape, many 'black-and-white' homes must go
By VEN SREENIVASAN
(SINGAPORE) The first phase of the $60 million Seletar Aerospace Park
(SAP) project is nearing completion and Phase 2 is about to take off,
so the agencies spearheading the redevelopment of the complex have
been briefing residents and other tenants about the next step forward.
Agency officials, led by Edwin Ho, JTC Corp's assistant director for
industrial parks, met tenants of the colonial 'black-and-white'
residences last night to inform them that 174 of the 378 buildings
could be demolished.
A significant number of the remaining units will be converted to
offices and commercial outlets, including F&B and lifestyle clusters
around The Oval/Parklane area.
But about 100 will be retained as residences.
All affected tenants will have to move out by this December, while
those remaining will have to sign up to new tenancies.
Mr Ho assured everyone that all aspects of the development of SAP
were being done with the input of 'all stakeholders' including
residents, commercial tenants, aviation business operators, the
Nature Society and other interest groups.
Other works in the upcoming Phase 2 of the massive project will be
road widening and refurbishment of buildings which will be retained.
Phase 2 works will begin next January and stretch until 2013.
Phase 1 has essentially focused on the groundbreaking works for new
tenants Rolls-Royce and Pratt & Whitney, and upgrading facilities for
existing giants like ST Aerospace and Jet Aviation.
Besides the demolition of old buildings and refurbishment of others,
key elements of Phase 2 will also include demolition of the old water
reclamation plant located in the complex and the upgrading of the
airport and the lengthening of the runway by some 300 metres.
The runway lengthening will be done for 14 hours a day for 18 months,
starting this November, with works done at night.
Also starting next January will be works on construction of a new
flyover from the Tampines Expressway, which will be the main entrance
to the complex. There will also be some road diversions within the
area.
A joint project of the EDB, CAAS and JTC Corp, the SAP will host an
integrated aerospace industry cluster incorporating maintenance,
repair and overhaul, design and manufacturing of aircraft systems and
components, business and general aviation, and an aviation campus to
train pilots, other industry professionals and technical personnel.
When completed in 2018, the SAP is envisaged to elevate Singapore's
status as an aviation hub, contribute $3.3 billion a year or one per
cent of GDP and create jobs for 10,000 people.
End of the road for 174 Seletar colonial homes
As aerospace park takes shape, many 'black-and-white' homes must go
By VEN SREENIVASAN
(SINGAPORE) The first phase of the $60 million Seletar Aerospace Park
(SAP) project is nearing completion and Phase 2 is about to take off,
so the agencies spearheading the redevelopment of the complex have
been briefing residents and other tenants about the next step forward.
Agency officials, led by Edwin Ho, JTC Corp's assistant director for
industrial parks, met tenants of the colonial 'black-and-white'
residences last night to inform them that 174 of the 378 buildings
could be demolished.
A significant number of the remaining units will be converted to
offices and commercial outlets, including F&B and lifestyle clusters
around The Oval/Parklane area.
But about 100 will be retained as residences.
All affected tenants will have to move out by this December, while
those remaining will have to sign up to new tenancies.
Mr Ho assured everyone that all aspects of the development of SAP
were being done with the input of 'all stakeholders' including
residents, commercial tenants, aviation business operators, the
Nature Society and other interest groups.
Other works in the upcoming Phase 2 of the massive project will be
road widening and refurbishment of buildings which will be retained.
Phase 2 works will begin next January and stretch until 2013.
Phase 1 has essentially focused on the groundbreaking works for new
tenants Rolls-Royce and Pratt & Whitney, and upgrading facilities for
existing giants like ST Aerospace and Jet Aviation.
Besides the demolition of old buildings and refurbishment of others,
key elements of Phase 2 will also include demolition of the old water
reclamation plant located in the complex and the upgrading of the
airport and the lengthening of the runway by some 300 metres.
The runway lengthening will be done for 14 hours a day for 18 months,
starting this November, with works done at night.
Also starting next January will be works on construction of a new
flyover from the Tampines Expressway, which will be the main entrance
to the complex. There will also be some road diversions within the
area.
A joint project of the EDB, CAAS and JTC Corp, the SAP will host an
integrated aerospace industry cluster incorporating maintenance,
repair and overhaul, design and manufacturing of aircraft systems and
components, business and general aviation, and an aviation campus to
train pilots, other industry professionals and technical personnel.
When completed in 2018, the SAP is envisaged to elevate Singapore's
status as an aviation hub, contribute $3.3 billion a year or one per
cent of GDP and create jobs for 10,000 people.
Keppel Land Q2 profit falls 16% to $52.7m
July 31, 2008
Keppel Land Q2 profit falls 16% to $52.7m
Lower turnover from home sales, property services and hotels
By UMA SHANKARI
KEPPEL Land, Singapore's third-largest developer by asset-size, said
yesterday its second-quarter profit fell 16.4 per cent as it sold
fewer homes in Singapore and abroad.
Net profit for the three months ended June 30, 2008 fell to $52.7
million from $63.0 million a year earlier.
Revenue fell 48.2 per cent to $185.9 million, from $359.2 million in
the year-ago period.
Keppel Land said that besides lower turnover from home sales, its
property services segment and hotels also saw lower revenue.
For first-half 2008, net profit fell 10 per cent to $113.0 million,
from $125.5 million a year earlier. Sales fell 29.9 per cent to $459
million, from $654.6 million previously.
The company's financials were hit by delayed launches. In January
this year Keppel Land put off the launch of its Marina Bay Suites,
citing 'market conditions'.
'They have inventory in Singapore and among the biggest is Marina Bay
Suites,' CIMB-GK analyst Donald Chua told Bloomberg, adding that the
sale of the apartments could be a key growth driver in coming
quarters. 'It also depends on how fast they complete construction of
the Reflections condominiums to book earnings,' he said.
Keppel Land still hopes to launch the 221-unit Marina Bay Suites, as
well as the second phase of Reflections of Keppel Bay, some time in
the second half of this year. Other projects where units could be
sold include Park Infinia at Wee Nam, where there are still 52
apartments left, as well as Madison Residences. In all, the company
could launch 777 residential units by year-end.
'The group will continue to monitor the market and will launch
developments such as Marina Bay Suites, phase two of Reflections at
Keppel Bay and other residential projects when market sentiment
improves,' Keppel Land said in a filing to the Singapore Exchange
yesterday.
For the office sector, Keppel Land wants to improve the pre-
commitment level at its Marina Bay Financial Centre (MBFC), where
overall pre-commitment is 60 per cent. Phase one of the office
complex, with 1.6 million sq ft, will be completed in 2010.
Rents at MBFC are now in the region of $16 per sq ft, said Keppel
Land chief executive Kevin Wong.
The company also said it is on the lookout for acquisitions in
Singapore and overseas, and is exploring opportunities in the Middle
East and Russia.
Keppel Land's share price closed unchanged at $5 yesterday. The stock
has lost 31.3 per cent this year.
Keppel Land Q2 profit falls 16% to $52.7m
Lower turnover from home sales, property services and hotels
By UMA SHANKARI
KEPPEL Land, Singapore's third-largest developer by asset-size, said
yesterday its second-quarter profit fell 16.4 per cent as it sold
fewer homes in Singapore and abroad.
Net profit for the three months ended June 30, 2008 fell to $52.7
million from $63.0 million a year earlier.
Revenue fell 48.2 per cent to $185.9 million, from $359.2 million in
the year-ago period.
Keppel Land said that besides lower turnover from home sales, its
property services segment and hotels also saw lower revenue.
For first-half 2008, net profit fell 10 per cent to $113.0 million,
from $125.5 million a year earlier. Sales fell 29.9 per cent to $459
million, from $654.6 million previously.
The company's financials were hit by delayed launches. In January
this year Keppel Land put off the launch of its Marina Bay Suites,
citing 'market conditions'.
'They have inventory in Singapore and among the biggest is Marina Bay
Suites,' CIMB-GK analyst Donald Chua told Bloomberg, adding that the
sale of the apartments could be a key growth driver in coming
quarters. 'It also depends on how fast they complete construction of
the Reflections condominiums to book earnings,' he said.
Keppel Land still hopes to launch the 221-unit Marina Bay Suites, as
well as the second phase of Reflections of Keppel Bay, some time in
the second half of this year. Other projects where units could be
sold include Park Infinia at Wee Nam, where there are still 52
apartments left, as well as Madison Residences. In all, the company
could launch 777 residential units by year-end.
'The group will continue to monitor the market and will launch
developments such as Marina Bay Suites, phase two of Reflections at
Keppel Bay and other residential projects when market sentiment
improves,' Keppel Land said in a filing to the Singapore Exchange
yesterday.
For the office sector, Keppel Land wants to improve the pre-
commitment level at its Marina Bay Financial Centre (MBFC), where
overall pre-commitment is 60 per cent. Phase one of the office
complex, with 1.6 million sq ft, will be completed in 2010.
Rents at MBFC are now in the region of $16 per sq ft, said Keppel
Land chief executive Kevin Wong.
The company also said it is on the lookout for acquisitions in
Singapore and overseas, and is exploring opportunities in the Middle
East and Russia.
Keppel Land's share price closed unchanged at $5 yesterday. The stock
has lost 31.3 per cent this year.
CDL Hospitality Trusts eyes Japan acquisitions
July 31, 2008
CDL Hospitality Trusts eyes Japan acquisitions
It's considering sprucing up Orchard arcade or turning it into hotel
rooms
By KALPANA RASHIWALA
CDL Hospitality Trusts (CDLHT), the biggest hotel owner in Singapore,
is looking at the Japan market with 'great interest' for potential
acquisitions as it now offers 'pricing levels not seen for many
years'.
CDLHT, a stapled group comprising CDL Hospitality Real Estate
Investment Trust (H-Reit) and CDL Hospitality Business Trust (HBT),
is also mulling whether to spruce up Orchard Hotel Shopping Arcade or
convert it into hotel rooms.
If converted, the 53,000 sq ft facility could yield about 78 hotel
rooms, which would add to Orchard Hotel's existing 653 rooms.
'We're are still doing studies and to some extent waiting for
construction costs to reach more reasonable levels,' Vincent Yeo, CEO
of M&C Reit Management, said yesterday in an interview with BT. M&C
Reit Management is the manager of H-Reit.
CDLHT yesterday posted a 68.7 per cent jump in second-quarter
distributable income to $25 million. For the first half ended June
30, 2008, distributable income jumped 79 per cent to $48.6 million,
on the back of organic growth across the portfolio as well as a full
period's contribution from Novotel Clarke Quay, which was acquired on
June 7, 2007.
'I like the acquisition environment today much better than what we
have experienced in the last couple of years. Because of the tight
credit conditions today, there are more motivated sellers and there
are more deals that we're seeing now, and consequently this means
that we can be a lot more selective in terms of location and
strategic assets,' Mr Yeo added.
'Japan has also gone through a very adverse credit situation and
there are a lot of deals. Assets as recently as last year used to
trade at 4 per cent yield. We're now seeing them gravitate above 6
per cent,' he said.
CDLHT's gearing level as at June 30, 2008, stood at 20.3 per cent.
Despite softness in Singapore visitor arrivals in June, CDLHT's
Singapore hotels posted average occupancy rate of 87.1 per cent in Q2
ended June 30, 2008, up 1.1 percentage points from 86 per cent for
proforma Q2 2007 (assuming Novotel Clarke Quay had been acquired on
April 1, 2007).
Revenue per available room increased 30.6 per cent year-on-year to
$222 in Q2 2008. Mr Yeo noted that the dip in Singapore's visitor
arrivals in June was mitigated by the increase in the average length
of stay per visitor.
CDLHT's hotel portfolio comprises Orchard Hotel, Grand Copthorne
Waterfront, M Hotel, Copthorne King's Hotel and Novotel Clarke Quay
in Singapore, and the Rendezvous Hotel Auckland in New Zealand.
CDLHT posted a 42.4 per cent year-on-year jump in Q2 gross revenue to
$29.5 million. For the first-half, gross revenue increased 48.3 per
cent to $57.4 million.
Unitholders will receive a total distribution per unit of 5.89 cents
for the first half comprising 5.37 cents of taxable income and 0.52
cent of tax-exempt. The total payout works out to an annualised
figure of 11.84 cents, reflecting an 8.2 per cent annualised
distribution yield based on CDLHT's closing price of $1.45 yesterday.
The counter ended one cent lower from the Tuesday close.
CDLHT's net asset value per stapled security stood at $1.61 as at
June 30, unchanged from the Dec 31, 2007 figure.
'While we are cautious over the outlook for the remainder of 2008 due
to the weakness demonstrated in visitor arrivals in the month of
June, we still expect to register growth for the next reporting
period.
'We believe that the general outlook for the hotel industry continues
to be positive over the medium and long term,' CDLHT said.
CDL Hospitality Trusts eyes Japan acquisitions
It's considering sprucing up Orchard arcade or turning it into hotel
rooms
By KALPANA RASHIWALA
CDL Hospitality Trusts (CDLHT), the biggest hotel owner in Singapore,
is looking at the Japan market with 'great interest' for potential
acquisitions as it now offers 'pricing levels not seen for many
years'.
CDLHT, a stapled group comprising CDL Hospitality Real Estate
Investment Trust (H-Reit) and CDL Hospitality Business Trust (HBT),
is also mulling whether to spruce up Orchard Hotel Shopping Arcade or
convert it into hotel rooms.
If converted, the 53,000 sq ft facility could yield about 78 hotel
rooms, which would add to Orchard Hotel's existing 653 rooms.
'We're are still doing studies and to some extent waiting for
construction costs to reach more reasonable levels,' Vincent Yeo, CEO
of M&C Reit Management, said yesterday in an interview with BT. M&C
Reit Management is the manager of H-Reit.
CDLHT yesterday posted a 68.7 per cent jump in second-quarter
distributable income to $25 million. For the first half ended June
30, 2008, distributable income jumped 79 per cent to $48.6 million,
on the back of organic growth across the portfolio as well as a full
period's contribution from Novotel Clarke Quay, which was acquired on
June 7, 2007.
'I like the acquisition environment today much better than what we
have experienced in the last couple of years. Because of the tight
credit conditions today, there are more motivated sellers and there
are more deals that we're seeing now, and consequently this means
that we can be a lot more selective in terms of location and
strategic assets,' Mr Yeo added.
'Japan has also gone through a very adverse credit situation and
there are a lot of deals. Assets as recently as last year used to
trade at 4 per cent yield. We're now seeing them gravitate above 6
per cent,' he said.
CDLHT's gearing level as at June 30, 2008, stood at 20.3 per cent.
Despite softness in Singapore visitor arrivals in June, CDLHT's
Singapore hotels posted average occupancy rate of 87.1 per cent in Q2
ended June 30, 2008, up 1.1 percentage points from 86 per cent for
proforma Q2 2007 (assuming Novotel Clarke Quay had been acquired on
April 1, 2007).
Revenue per available room increased 30.6 per cent year-on-year to
$222 in Q2 2008. Mr Yeo noted that the dip in Singapore's visitor
arrivals in June was mitigated by the increase in the average length
of stay per visitor.
CDLHT's hotel portfolio comprises Orchard Hotel, Grand Copthorne
Waterfront, M Hotel, Copthorne King's Hotel and Novotel Clarke Quay
in Singapore, and the Rendezvous Hotel Auckland in New Zealand.
CDLHT posted a 42.4 per cent year-on-year jump in Q2 gross revenue to
$29.5 million. For the first-half, gross revenue increased 48.3 per
cent to $57.4 million.
Unitholders will receive a total distribution per unit of 5.89 cents
for the first half comprising 5.37 cents of taxable income and 0.52
cent of tax-exempt. The total payout works out to an annualised
figure of 11.84 cents, reflecting an 8.2 per cent annualised
distribution yield based on CDLHT's closing price of $1.45 yesterday.
The counter ended one cent lower from the Tuesday close.
CDLHT's net asset value per stapled security stood at $1.61 as at
June 30, unchanged from the Dec 31, 2007 figure.
'While we are cautious over the outlook for the remainder of 2008 due
to the weakness demonstrated in visitor arrivals in the month of
June, we still expect to register growth for the next reporting
period.
'We believe that the general outlook for the hotel industry continues
to be positive over the medium and long term,' CDLHT said.
CRCT's Q2 distributable income rises 30.4%
July 31, 2008
CRCT's Q2 distributable income rises 30.4%
By UMA SHANKARI
CAPITALAND unit CapitaRetail China Trust (CRCT) yesterday said that
its second-quarter distributable income rose 30.4 per cent to $10.5
million, from $8.1 million a year ago, on the back of a new
acquisition.
Distribution per unit (DPU) was 1.70 cents - the same as in Q2 2007.
CRCT decided to retain $900,000 of its income available for
distribution in Q2 2008 'to be prudent', it said. This is meant to
help negate the fluctuating income flow in the second half of 2008,
thereby providing unit-holders with stable half-yearly distributions
in 2008. If the trust had distributed 100 per cent of its income, the
DPU in Q2 2008 would have been 1.84 cents.
For the whole of the 2008 financial year, CRCT 'remains committed to
distribute 100 per cent of its income available for distribution',
the trust said.
Net property income for Q2 2008 was $16.6 million, an increase of
33.1 per cent over the $12.4 million recorded in the corresponding
three months in 2007 - partly due to income from Xizhimen Mall, the
newest addition to CRCT's portfolio.
The real estate investment trust (Reit), however, saw its net
property income for Q2 2008 come in slightly under its own forecast,
which it attributed to the strengthening Singapore dollar.
Net property income of $16.6 million was 0.5 per cent lower than the
forecast $16.7 million. But in yuan terms, the trust outperformed its
forecast. Net property income was 84.4 million yuan (S$16.9 million),
0.4 per cent higher than the forecast 84.1 million yuan.
For the first six months of 2008, CRCT's distributable income rose
26.8 per cent to $19.3 million, from $15.2 million for the
corresponding period in 2007. DPU for H1 2008 rose 1.2 per cent to
3.25 cents, from 3.21 cents a year ago.
The trust increased the occupancy at its malls to 97.1 per cent as at
June 30, 2008, from 95.6 per cent at the beginning of the year.
Lim Beng Chee, chief executive of CRCT's manager, acknowledged that
China's inflation rate, which is estimated to reach 6.5 per cent in
2008, is a concern.
But the trust is still confident of keeping operating expenses within
forecasts, he said.
'Most of our costs have been locked in earlier, so for 2008, we will
still be able to meet (earnings) forecasts,' Mr Lim noted. But the
cost of utilities, one of the biggest expenses for the Reit in China,
remains a concern, he added.
The trust's current $1.2 billion portfolio consists of eight retail
malls located in five cities in China.
CRCT's shares closed two cents down at $1.14 yesterday. The stock has
shed 47.0 per cent since the start of the year.
CRCT's Q2 distributable income rises 30.4%
By UMA SHANKARI
CAPITALAND unit CapitaRetail China Trust (CRCT) yesterday said that
its second-quarter distributable income rose 30.4 per cent to $10.5
million, from $8.1 million a year ago, on the back of a new
acquisition.
Distribution per unit (DPU) was 1.70 cents - the same as in Q2 2007.
CRCT decided to retain $900,000 of its income available for
distribution in Q2 2008 'to be prudent', it said. This is meant to
help negate the fluctuating income flow in the second half of 2008,
thereby providing unit-holders with stable half-yearly distributions
in 2008. If the trust had distributed 100 per cent of its income, the
DPU in Q2 2008 would have been 1.84 cents.
For the whole of the 2008 financial year, CRCT 'remains committed to
distribute 100 per cent of its income available for distribution',
the trust said.
Net property income for Q2 2008 was $16.6 million, an increase of
33.1 per cent over the $12.4 million recorded in the corresponding
three months in 2007 - partly due to income from Xizhimen Mall, the
newest addition to CRCT's portfolio.
The real estate investment trust (Reit), however, saw its net
property income for Q2 2008 come in slightly under its own forecast,
which it attributed to the strengthening Singapore dollar.
Net property income of $16.6 million was 0.5 per cent lower than the
forecast $16.7 million. But in yuan terms, the trust outperformed its
forecast. Net property income was 84.4 million yuan (S$16.9 million),
0.4 per cent higher than the forecast 84.1 million yuan.
For the first six months of 2008, CRCT's distributable income rose
26.8 per cent to $19.3 million, from $15.2 million for the
corresponding period in 2007. DPU for H1 2008 rose 1.2 per cent to
3.25 cents, from 3.21 cents a year ago.
The trust increased the occupancy at its malls to 97.1 per cent as at
June 30, 2008, from 95.6 per cent at the beginning of the year.
Lim Beng Chee, chief executive of CRCT's manager, acknowledged that
China's inflation rate, which is estimated to reach 6.5 per cent in
2008, is a concern.
But the trust is still confident of keeping operating expenses within
forecasts, he said.
'Most of our costs have been locked in earlier, so for 2008, we will
still be able to meet (earnings) forecasts,' Mr Lim noted. But the
cost of utilities, one of the biggest expenses for the Reit in China,
remains a concern, he added.
The trust's current $1.2 billion portfolio consists of eight retail
malls located in five cities in China.
CRCT's shares closed two cents down at $1.14 yesterday. The stock has
shed 47.0 per cent since the start of the year.
Is CMT morphing from pure retail play into a mixed Reit?
July 31, 2008
Is CMT morphing from pure retail play into a mixed Reit?
By KALPANA RASHIWALA
CAPITAMALL TRUST (CMT), Singapore's first real estate investment
trust when it listed in 2002, has enduring appeal.
Six years since its flotation and with another 20 contenders in the
Singapore Reit (S-Reit) market today, CMT remains Singapore's biggest
Reit with an asset size of $7.2 billion.
The market has rewarded the trust's consistent ability to deliver
total returns by according it one of the lowest costs of capital for
any Singapore Reit. That is, CMT trades at one of the lowest
distribution yields among S-Reits. The market demands a lower risk
premium from CMT than it does for just about any other S-Reit. CMT is
also trading above its net asset value. This has to do with CMT's
track record in managing retail properties.
However, lately some institutional investors have been concerned that
the shopping centre trust could be morphing into a mixed development
trust. In 2006, CMT bought a 40 per cent stake in Raffles City, which
comprises a mall, office tower, convention space and two hotels.
In May this year, CMT announced it was buying Atrium @ Orchard - a
predominantly office asset - for $839.8 million.
Is CMT being forced to buy mixed developments because of the
challenge of sourcing for pure-retail assets in Singapore as more
shopping centres are already owned by Reits and private property
funds?
Some investors would prefer CMT to be a pure retail play. If CMT
dilutes its portfolio by acquiring mixed developments with office and
other components, investors may demand a higher risk premium, that
is, CMT may have to trade at a higher distribution yield, putting
pressure on its unit price.
Not only that, there may be potential conflict of interest within the
CapitaLand stable of Reits, since CMT's sister Reit CapitaCommercial
Trust (CCT) owns mostly offices.
It may be timely to revisit some of the reasons behind CMT's
acquisitions of Atrium and Raffles City.
Offices make up nearly 96 per cent of Atrium's existing net lettable
area (NLA) of 373,446 sq ft. CMT's attraction to the property,
however, is due to its strategic location next to the trust's
existing mall, Plaza Singapura. By drawing synergies between the two
properties, CMT can extract more value out of Plaza Singapura. Atrium
is directly linked to Dhoby Ghaut MRT Station, which will be the
interchange station for three lines. By integrating Atrium with Plaza
Singapura, the latter will have improved MRT connectivity. CMT plans
to boost Atrium's retail NLA from about 16,100 sq ft now to 172,100
sq ft by converting the first three levels into full-retail use. It
also plans to create retail space on state land that it hopes to buy
in front of Plaza Singapura.
CMT could also potentially move some big tenants from Plaza
Singapura's upper floors to Atrium's upper levels and subdivide the
vacated space at Plaza Singapura into smaller units that will
hopefully fetch higher rents. Another possibility is to attract
fitness centres and signature restaurants to Atrium's upper levels as
office leases expire.
Given CMT's impressive track record at asset enhancement plans and
its ability to create new retail space in its properties, it's
possible to imagine Atrium transformed into a predominantly retail
asset in future.
So too at Raffles City, asset enhancements have boosted the retail
net lettable area by 12.5 per cent. These initiatives required the
close cooperation of CCT, which owns the remaining 60 per cent in
Raffles City. Had CMT bought only the mall in Raffles City, leaving
the office tower to CCT, the two Reits might have had sibling
arguments during the mall's refurbishment as many common areas were
involved. Instead, by taking stakes in the entire development, the
two Reits worked in unison.
When Raffles City's asset enhancement potential has been
substantially realised, CMT and CCT could neaten their ownership -
with CCT holding the office tower and CMT the mall. This will sharpen
the two Reits' respective foci and give investors clearer choice to
invest in their preferred asset class. Likewise, when CMT is done
transforming Atrium and creating more retail space, it could sell the
remaining office space to CCT. After all, CMT should not be competing
with CCT - a big office landlord - for office tenants at Atrium.
There will also be office space when CMT builds four more floors on
top of Funan DigitaLife Mall to tap the site's unutilised development
potential. CMT has all approvals in place but will begin work only
after the new office space has been substantially leased; this should
make it easier for CMT to dispose of the office space and once more
stick to its core strength in retail.
Moving ahead, CMT is unlikely to shy away from mixed assets as long
as there are strategic reasons and where such assets have a retail
component that it can add value to.
CMT will have to hope that investors will still find this defining
strength endearing.
Is CMT morphing from pure retail play into a mixed Reit?
By KALPANA RASHIWALA
CAPITAMALL TRUST (CMT), Singapore's first real estate investment
trust when it listed in 2002, has enduring appeal.
Six years since its flotation and with another 20 contenders in the
Singapore Reit (S-Reit) market today, CMT remains Singapore's biggest
Reit with an asset size of $7.2 billion.
The market has rewarded the trust's consistent ability to deliver
total returns by according it one of the lowest costs of capital for
any Singapore Reit. That is, CMT trades at one of the lowest
distribution yields among S-Reits. The market demands a lower risk
premium from CMT than it does for just about any other S-Reit. CMT is
also trading above its net asset value. This has to do with CMT's
track record in managing retail properties.
However, lately some institutional investors have been concerned that
the shopping centre trust could be morphing into a mixed development
trust. In 2006, CMT bought a 40 per cent stake in Raffles City, which
comprises a mall, office tower, convention space and two hotels.
In May this year, CMT announced it was buying Atrium @ Orchard - a
predominantly office asset - for $839.8 million.
Is CMT being forced to buy mixed developments because of the
challenge of sourcing for pure-retail assets in Singapore as more
shopping centres are already owned by Reits and private property
funds?
Some investors would prefer CMT to be a pure retail play. If CMT
dilutes its portfolio by acquiring mixed developments with office and
other components, investors may demand a higher risk premium, that
is, CMT may have to trade at a higher distribution yield, putting
pressure on its unit price.
Not only that, there may be potential conflict of interest within the
CapitaLand stable of Reits, since CMT's sister Reit CapitaCommercial
Trust (CCT) owns mostly offices.
It may be timely to revisit some of the reasons behind CMT's
acquisitions of Atrium and Raffles City.
Offices make up nearly 96 per cent of Atrium's existing net lettable
area (NLA) of 373,446 sq ft. CMT's attraction to the property,
however, is due to its strategic location next to the trust's
existing mall, Plaza Singapura. By drawing synergies between the two
properties, CMT can extract more value out of Plaza Singapura. Atrium
is directly linked to Dhoby Ghaut MRT Station, which will be the
interchange station for three lines. By integrating Atrium with Plaza
Singapura, the latter will have improved MRT connectivity. CMT plans
to boost Atrium's retail NLA from about 16,100 sq ft now to 172,100
sq ft by converting the first three levels into full-retail use. It
also plans to create retail space on state land that it hopes to buy
in front of Plaza Singapura.
CMT could also potentially move some big tenants from Plaza
Singapura's upper floors to Atrium's upper levels and subdivide the
vacated space at Plaza Singapura into smaller units that will
hopefully fetch higher rents. Another possibility is to attract
fitness centres and signature restaurants to Atrium's upper levels as
office leases expire.
Given CMT's impressive track record at asset enhancement plans and
its ability to create new retail space in its properties, it's
possible to imagine Atrium transformed into a predominantly retail
asset in future.
So too at Raffles City, asset enhancements have boosted the retail
net lettable area by 12.5 per cent. These initiatives required the
close cooperation of CCT, which owns the remaining 60 per cent in
Raffles City. Had CMT bought only the mall in Raffles City, leaving
the office tower to CCT, the two Reits might have had sibling
arguments during the mall's refurbishment as many common areas were
involved. Instead, by taking stakes in the entire development, the
two Reits worked in unison.
When Raffles City's asset enhancement potential has been
substantially realised, CMT and CCT could neaten their ownership -
with CCT holding the office tower and CMT the mall. This will sharpen
the two Reits' respective foci and give investors clearer choice to
invest in their preferred asset class. Likewise, when CMT is done
transforming Atrium and creating more retail space, it could sell the
remaining office space to CCT. After all, CMT should not be competing
with CCT - a big office landlord - for office tenants at Atrium.
There will also be office space when CMT builds four more floors on
top of Funan DigitaLife Mall to tap the site's unutilised development
potential. CMT has all approvals in place but will begin work only
after the new office space has been substantially leased; this should
make it easier for CMT to dispose of the office space and once more
stick to its core strength in retail.
Moving ahead, CMT is unlikely to shy away from mixed assets as long
as there are strategic reasons and where such assets have a retail
component that it can add value to.
CMT will have to hope that investors will still find this defining
strength endearing.
Merrill's fire sale puts spotlight on other banks
July 31, 2008
Merrill's fire sale puts spotlight on other banks
They may have to lower their CDO valuations, take on additional
charges
(NEW YORK) Somehow, US$4.4 billion just evaporated at Merrill Lynch.
Less than two weeks ago, Merrill Lynch valued the toxic mortgage
investments on its books at US$11.1 billion. Now, it is selling those
investments for US$6.7 billion - and financing most of the purchase
to boot.
The fire sale raises a troubling question for the nation's battered
financial industry: Have other banks with similar investments
overestimated their values? That question reverberated across Wall
Street on Tuesday as analysts began assessing the implications of
Merrill's move to cleanse its tainted balance sheet.
Executives at Citigroup, JPMorgan Chase and Bank of America began
reviewing the bundles of mortgages, known as collateralised debt
obligations, or CDOs, that their companies hold on their books. Those
companies may have to lower their valuations, and take additional
charges, if their assets are similar to those sold by Merrill.
Still, financial stocks rallied on Tuesday, as investors hoped the
deal at Merrill signalled that the troubles plaguing banks' balance
sheets might be coming to an end.
'This is setting some sort of precedent for these prices,' said
Stuart Plesser, an analyst with Standard & Poor's Equity Research.
Merrill's deal also shone a light on the desperate measures banks are
taking to clean up their balance sheets. As Wall Street firms
negotiate deals to sell troubled assets to private equity funds and
hedge funds, they are offering generous loans to potential buyers.
For Merrill, this meant lending US$5 billion to Lone Star Funds
toward the US$6.7 billion purchase price. If the assets deteriorate
below their current marks, Lone Star loses the first US$1.7 billion,
then the losses move to Merrill. Merrill could lose up to US$5
billion, though the bank may have protections on the deal that it has
yet to disclose.
Analysts were sceptical. 'It's not truly unloading the risk,' said
David Trone, an analyst with Fox-Pitt Kelton. 'I mean, from an
accounting standpoint, it's gone, but from a real risk standpoint,
it's still there.' Merrill is not the only company that has made
loans to seal a deal.
Citigroup and Deutsche Bank made similar loans in the spring when
they sold billions of dollars in loans used to finance corporate
buyouts.
And, in May, when UBS sold mortgage bonds to a BlackRock investment
fund, the Swiss bank lent US$11.25 billion of the US$15 billion
purchase price. That deal left UBS on the hook for any losses more
than US$3.75 billion.
'Essentially, what you've done is you've taken a writedown, and
you've put it back on your balance sheet as a loan,' said Brad Hintz,
an analyst with Sanford C Bernstein. 'What they're trying to do is to
clear the balance sheet.'
The round-about pattern of these sales raises more confusion over the
actual value of mortgage assets. In Merrill's case, the CDOs were
originally valued at US$30.6 billion before the credit crisis. By the
end of the second-quarter, Merrill had written them down to US$11.1
billion. And then, it sold them for US$6.7 billion, sugar-coated with
a loan package.
Still, Merrill's price of 22 cents on the dollar was held up as the
new measuring stick on Tuesday, as analysts whipped out predictions
for Merrill's peers. Several focused on Citigroup, a bank with large
exposure to CDOs.
An analyst from Deutsche Bank said that the new marks might cost
Citigroup up to US$8 billion. An analyst from Merrill said that the
writedown at Citigroup would probably be closer to US$6 billion. And
at Ladenburg Thalmann, an analyst said that the marks would be much
smaller. Citigroup declined to comment.
Citigroup chief financial officer Gary Crittenden said on the
company's Q2 earnings call that many of the bank's CDOs were created
before 2006. Those assets are valued at 61 cents on the dollar, for
now.
Merrill's fire sale puts spotlight on other banks
They may have to lower their CDO valuations, take on additional
charges
(NEW YORK) Somehow, US$4.4 billion just evaporated at Merrill Lynch.
Less than two weeks ago, Merrill Lynch valued the toxic mortgage
investments on its books at US$11.1 billion. Now, it is selling those
investments for US$6.7 billion - and financing most of the purchase
to boot.
The fire sale raises a troubling question for the nation's battered
financial industry: Have other banks with similar investments
overestimated their values? That question reverberated across Wall
Street on Tuesday as analysts began assessing the implications of
Merrill's move to cleanse its tainted balance sheet.
Executives at Citigroup, JPMorgan Chase and Bank of America began
reviewing the bundles of mortgages, known as collateralised debt
obligations, or CDOs, that their companies hold on their books. Those
companies may have to lower their valuations, and take additional
charges, if their assets are similar to those sold by Merrill.
Still, financial stocks rallied on Tuesday, as investors hoped the
deal at Merrill signalled that the troubles plaguing banks' balance
sheets might be coming to an end.
'This is setting some sort of precedent for these prices,' said
Stuart Plesser, an analyst with Standard & Poor's Equity Research.
Merrill's deal also shone a light on the desperate measures banks are
taking to clean up their balance sheets. As Wall Street firms
negotiate deals to sell troubled assets to private equity funds and
hedge funds, they are offering generous loans to potential buyers.
For Merrill, this meant lending US$5 billion to Lone Star Funds
toward the US$6.7 billion purchase price. If the assets deteriorate
below their current marks, Lone Star loses the first US$1.7 billion,
then the losses move to Merrill. Merrill could lose up to US$5
billion, though the bank may have protections on the deal that it has
yet to disclose.
Analysts were sceptical. 'It's not truly unloading the risk,' said
David Trone, an analyst with Fox-Pitt Kelton. 'I mean, from an
accounting standpoint, it's gone, but from a real risk standpoint,
it's still there.' Merrill is not the only company that has made
loans to seal a deal.
Citigroup and Deutsche Bank made similar loans in the spring when
they sold billions of dollars in loans used to finance corporate
buyouts.
And, in May, when UBS sold mortgage bonds to a BlackRock investment
fund, the Swiss bank lent US$11.25 billion of the US$15 billion
purchase price. That deal left UBS on the hook for any losses more
than US$3.75 billion.
'Essentially, what you've done is you've taken a writedown, and
you've put it back on your balance sheet as a loan,' said Brad Hintz,
an analyst with Sanford C Bernstein. 'What they're trying to do is to
clear the balance sheet.'
The round-about pattern of these sales raises more confusion over the
actual value of mortgage assets. In Merrill's case, the CDOs were
originally valued at US$30.6 billion before the credit crisis. By the
end of the second-quarter, Merrill had written them down to US$11.1
billion. And then, it sold them for US$6.7 billion, sugar-coated with
a loan package.
Still, Merrill's price of 22 cents on the dollar was held up as the
new measuring stick on Tuesday, as analysts whipped out predictions
for Merrill's peers. Several focused on Citigroup, a bank with large
exposure to CDOs.
An analyst from Deutsche Bank said that the new marks might cost
Citigroup up to US$8 billion. An analyst from Merrill said that the
writedown at Citigroup would probably be closer to US$6 billion. And
at Ladenburg Thalmann, an analyst said that the marks would be much
smaller. Citigroup declined to comment.
Citigroup chief financial officer Gary Crittenden said on the
company's Q2 earnings call that many of the bank's CDOs were created
before 2006. Those assets are valued at 61 cents on the dollar, for
now.
HK home sales may fall on inflation worries
July 31, 2008
HK home sales may fall on inflation worries
Share slide, global credit crunch could push property prices down,
say analysts
(HONG KONG) Hong Kong's apartment transactions may fall to a 10-month
low in July, then drop further, on concerns that accelerating
inflation and a slumping stock market may push prices down, analysts
said.
Transactions in 10 of Hong Kong's biggest housing complexes, used by
many analysts as a benchmark, fell to 27 last week from 33 the
previous week, Centaline Property Agency said. Total home sales in
the city may drop to 6,100 in July, the lowest number since
September, from 7,167 in June, it said.
'This will probably continue for the whole of the third quarter,'
said Louis Chan, managing director of residential properties at
Centaline. 'We're looking at between a 3 and 5 per cent correction in
prices within the quarter.'
Home values have tracked Hong Kong's economy, peaking in the second
quarter of 1997, then crashing in the Asian financial crisis, leaving
many homes worth less than their mortgages for years. The 2000 dotcom
bubble burst, the Sept 11, 2001, terrorist attacks and the 2003 Sars
epidemic caused prices to fall as much as 70 per cent from the peak.
The rebound started in late 2003 and prices doubled in the past four
years.
Now, the benchmark Hang Seng Index has fallen almost a third from its
record in October as credit-market losses climbed worldwide,
threatening global economic growth even as inflation accelerates in
Hong Kong. The combination could deter potential homebuyers, possibly
for the balance of the year.
'The Hong Kong residential market will go into a quiet period for the
rest of 2008,' said Cusson Leung, a Hong Kong-based analyst at Credit
Suisse. His July 8 report forecast a 5 to 10 per cent reduction in
home prices in the second half.
Overall housing transactions in the second half may fall between 20
and 30 per cent from a year earlier, said Patrick Chow, head of
research at real estate agency Ricacorp Properties. 'Many people
looking to upgrade their properties again have had their capital
drained by the stock market,' Mr Chow said. 'This may seriously
impact the high-end market, in part because many of those homebuyers
had upgraded last year.'
Hong Kong's four biggest real estate agencies this month fired a
total of more than 300 workers in anticipation of a housing slump,
according to a July 23 report in the Hong Kong Economic Times.
Hong Kong's inflation accelerated in June to the fastest pace in four
months as food and energy costs climbed. Local lenders including BOC
Hong Kong (Holdings) and Hang Seng Bank last month raised their
mortgage rates for some customers to deflect the squeeze on lending
margins.
'Inflation is giving many people second thoughts about buying
properties,' said Alnwick Chan, a Hong Kong-based executive director
at property research company Knight Frank LLP. 'There's going to be a
correction but it won't be a crash.' Hong Kong has the most expensive
luxury home prices in Asia, US$10,490 to US$14,780 per square metre,
according to the Global Property Guide website. That compares with
US$12,510 to US$22,923 per square metre in Manhattan.
The Hang Seng Properties Index, which tracks the city's six biggest
builders by market value, has dropped 30 per cent this year on
concerns Hong Kong banks may lift rates.
The expectation that the US Federal Reserve will start raising
interest rates in the fourth quarter of this year has damped Asia's
stock markets, according to Credit Suisse.
Sino Land sold almost 70 per cent of the apartments it made available
at the Palazzo, a high-end complex overlooking the Sha Tin horse
track in the first nine days of sales, Sing Tao Daily reported in
May. Billionaire Li Ka-shing's Cheung Kong (Holdings), Hong Kong's
second-biggest builder by value, met full-year sales targets by June,
selling 2,700 apartments for HK$23 billion.
Transactions and prices may rebound in the fourth quarter if both the
US and Hong Kong stock markets show they have weathered the sub-prime
crisis, Centaline's Mr Chan said.
The property affordability ratio, homeowners' average monthly
mortgage payment as a percentage of income, is 32 per cent, 'a very
healthy level' compared with 93 per cent at the peak of the 1990s
boom, according to Buggle Lau, chief analyst at Midland Holdings Ltd,
Hong Kong's biggest publicly traded property agency.
'Growth is definitely slowing, but the fundamentals of the economy
are still strong,' Mr Lau said. 'When the uncertainties go away we're
pretty sure buyers are going to come back.' Midland's shares have
plunged 66 per cent this year, after nearly quadrupling between t
HK home sales may fall on inflation worries
Share slide, global credit crunch could push property prices down,
say analysts
(HONG KONG) Hong Kong's apartment transactions may fall to a 10-month
low in July, then drop further, on concerns that accelerating
inflation and a slumping stock market may push prices down, analysts
said.
Transactions in 10 of Hong Kong's biggest housing complexes, used by
many analysts as a benchmark, fell to 27 last week from 33 the
previous week, Centaline Property Agency said. Total home sales in
the city may drop to 6,100 in July, the lowest number since
September, from 7,167 in June, it said.
'This will probably continue for the whole of the third quarter,'
said Louis Chan, managing director of residential properties at
Centaline. 'We're looking at between a 3 and 5 per cent correction in
prices within the quarter.'
Home values have tracked Hong Kong's economy, peaking in the second
quarter of 1997, then crashing in the Asian financial crisis, leaving
many homes worth less than their mortgages for years. The 2000 dotcom
bubble burst, the Sept 11, 2001, terrorist attacks and the 2003 Sars
epidemic caused prices to fall as much as 70 per cent from the peak.
The rebound started in late 2003 and prices doubled in the past four
years.
Now, the benchmark Hang Seng Index has fallen almost a third from its
record in October as credit-market losses climbed worldwide,
threatening global economic growth even as inflation accelerates in
Hong Kong. The combination could deter potential homebuyers, possibly
for the balance of the year.
'The Hong Kong residential market will go into a quiet period for the
rest of 2008,' said Cusson Leung, a Hong Kong-based analyst at Credit
Suisse. His July 8 report forecast a 5 to 10 per cent reduction in
home prices in the second half.
Overall housing transactions in the second half may fall between 20
and 30 per cent from a year earlier, said Patrick Chow, head of
research at real estate agency Ricacorp Properties. 'Many people
looking to upgrade their properties again have had their capital
drained by the stock market,' Mr Chow said. 'This may seriously
impact the high-end market, in part because many of those homebuyers
had upgraded last year.'
Hong Kong's four biggest real estate agencies this month fired a
total of more than 300 workers in anticipation of a housing slump,
according to a July 23 report in the Hong Kong Economic Times.
Hong Kong's inflation accelerated in June to the fastest pace in four
months as food and energy costs climbed. Local lenders including BOC
Hong Kong (Holdings) and Hang Seng Bank last month raised their
mortgage rates for some customers to deflect the squeeze on lending
margins.
'Inflation is giving many people second thoughts about buying
properties,' said Alnwick Chan, a Hong Kong-based executive director
at property research company Knight Frank LLP. 'There's going to be a
correction but it won't be a crash.' Hong Kong has the most expensive
luxury home prices in Asia, US$10,490 to US$14,780 per square metre,
according to the Global Property Guide website. That compares with
US$12,510 to US$22,923 per square metre in Manhattan.
The Hang Seng Properties Index, which tracks the city's six biggest
builders by market value, has dropped 30 per cent this year on
concerns Hong Kong banks may lift rates.
The expectation that the US Federal Reserve will start raising
interest rates in the fourth quarter of this year has damped Asia's
stock markets, according to Credit Suisse.
Sino Land sold almost 70 per cent of the apartments it made available
at the Palazzo, a high-end complex overlooking the Sha Tin horse
track in the first nine days of sales, Sing Tao Daily reported in
May. Billionaire Li Ka-shing's Cheung Kong (Holdings), Hong Kong's
second-biggest builder by value, met full-year sales targets by June,
selling 2,700 apartments for HK$23 billion.
Transactions and prices may rebound in the fourth quarter if both the
US and Hong Kong stock markets show they have weathered the sub-prime
crisis, Centaline's Mr Chan said.
The property affordability ratio, homeowners' average monthly
mortgage payment as a percentage of income, is 32 per cent, 'a very
healthy level' compared with 93 per cent at the peak of the 1990s
boom, according to Buggle Lau, chief analyst at Midland Holdings Ltd,
Hong Kong's biggest publicly traded property agency.
'Growth is definitely slowing, but the fundamentals of the economy
are still strong,' Mr Lau said. 'When the uncertainties go away we're
pretty sure buyers are going to come back.' Midland's shares have
plunged 66 per cent this year, after nearly quadrupling between t
Award-winners to design HDB flats
July 31, 2008
Award-winners to design HDB flats
SCDA, WOHA and Surbana named consultants for Dawson Estate flats
By EMILYN YAP
FLAT-BUYERS eyeing Dawson Estate in Queenstown will be spoilt for
choice, as upcoming public housing will feature designer looks
courtesy of not one, not two, but three local award-winning
architectural firms.
The Housing & Development Board (HDB) said yesterday that it will
appoint SCDA Architects, WOHA Architects and Surbana International
Consultants as design consultants for the district's public housing
projects.
Dawson Estate comes under a 'Remaking Our Heartland' exercise that
aims to transform public housing into vibrant homes for Singaporeans.
To showcase the regeneration of an old estate, HDB invited the three
architectural firms last year to design public housing precincts in
Dawson Estate based on new ideas and concepts.
Favourable response from the public led HDB to appoint all three as
design consultants.
SCDA and WOHA received their letters of appointment at a HDB awards
dinner yesterday evening. The two sites which both firms worked on
are vacant and ready for development.
HDB plans to launch the first batch of flats on these two sites for
sale under the Built-to-Order system in the third quarter of next
year.
Construction could start in the first quarter of 2010 and be
completed in 2014.
HDB will appoint Surbana later, when the site it worked on is cleared
and ready for redevelopment in 2011.
'The participation of these firms will not only give HDB flat buyers
greater variety and choice, it will also bring a livelier, more
attractive buzz to Dawson,' said Senior Minister of State for
National Development and Education Grace Fu.
HDB has also appointed a local landscape architectural firm, Cicada
Pte Ltd, to draw up a landscape masterplan. The plan will create a
distinct identity for Dawson Estate and bring together the three
different precincts.
To retain Dawson Estate's heritage, HDB is inviting the public to
contribute items from the district's past. Selected heritage items
will be woven into the new development.
Ms Fu said yesterday that the 'Remaking Our Heartland' programme has
made much progress. Nevertheless, she added: 'There will be
challenges along the way, such as grappling with inflation and
competing for resources amidst the global construction boom, while
keeping HDB flats affordable.'
Award-winners to design HDB flats
SCDA, WOHA and Surbana named consultants for Dawson Estate flats
By EMILYN YAP
FLAT-BUYERS eyeing Dawson Estate in Queenstown will be spoilt for
choice, as upcoming public housing will feature designer looks
courtesy of not one, not two, but three local award-winning
architectural firms.
The Housing & Development Board (HDB) said yesterday that it will
appoint SCDA Architects, WOHA Architects and Surbana International
Consultants as design consultants for the district's public housing
projects.
Dawson Estate comes under a 'Remaking Our Heartland' exercise that
aims to transform public housing into vibrant homes for Singaporeans.
To showcase the regeneration of an old estate, HDB invited the three
architectural firms last year to design public housing precincts in
Dawson Estate based on new ideas and concepts.
Favourable response from the public led HDB to appoint all three as
design consultants.
SCDA and WOHA received their letters of appointment at a HDB awards
dinner yesterday evening. The two sites which both firms worked on
are vacant and ready for development.
HDB plans to launch the first batch of flats on these two sites for
sale under the Built-to-Order system in the third quarter of next
year.
Construction could start in the first quarter of 2010 and be
completed in 2014.
HDB will appoint Surbana later, when the site it worked on is cleared
and ready for redevelopment in 2011.
'The participation of these firms will not only give HDB flat buyers
greater variety and choice, it will also bring a livelier, more
attractive buzz to Dawson,' said Senior Minister of State for
National Development and Education Grace Fu.
HDB has also appointed a local landscape architectural firm, Cicada
Pte Ltd, to draw up a landscape masterplan. The plan will create a
distinct identity for Dawson Estate and bring together the three
different precincts.
To retain Dawson Estate's heritage, HDB is inviting the public to
contribute items from the district's past. Selected heritage items
will be woven into the new development.
Ms Fu said yesterday that the 'Remaking Our Heartland' programme has
made much progress. Nevertheless, she added: 'There will be
challenges along the way, such as grappling with inflation and
competing for resources amidst the global construction boom, while
keeping HDB flats affordable.'
Frasers to support top KL serviced residences
July 31, 2008
Frasers to support top KL serviced residences
FRASERS Hospitality, the hospitality arm of property group Frasers
Centrepoint. said yesterday that it will provide technical and
advisory services for a 'gold-standard' serviced residence project in
Kuala Lumpur.
The project, Fraser Place Kuala Lumpur, is in the Malaysian
capital's 'Golden Triangle', where most international banks, oil-and-
gas companies and multinationals are based.
It is also within walking distance of the Petronas Twin Towers and
the retail mall Pavilion KL.
Fraser Place Kuala Lumpur is owned by Malaysian-listed YNH Property.
The project is part of a mixed development comprising an office tower
and a second tower with 217 studios, one-bedroom, two-bedroom and
penthouse serviced residences.
Frasers said in a statement yesterday that when Fraser Place Kuala
Lumpur opens in the third quarter of 2009, it will set a new standard
for Malaysia's extended-stay segment.
Every apartment has a separate bedroom, a fully-equipped kitchen with
cooking implements, cutlery and a dishwasher, and a washer-dryer for
clothes.
Guests can also make use of an all-day dining outlet, meeting and
function rooms, fitness centre, and playground and playroom for
children.
Frasers Hospitality chief executive officer Choe Peng Sum says the
project will be ideal for expatriates working in Malaysia on medium-
term projects, as it provides comfort, all-day-dining and even
facilities for accompanying spouses and families.
Frasers to support top KL serviced residences
FRASERS Hospitality, the hospitality arm of property group Frasers
Centrepoint. said yesterday that it will provide technical and
advisory services for a 'gold-standard' serviced residence project in
Kuala Lumpur.
The project, Fraser Place Kuala Lumpur, is in the Malaysian
capital's 'Golden Triangle', where most international banks, oil-and-
gas companies and multinationals are based.
It is also within walking distance of the Petronas Twin Towers and
the retail mall Pavilion KL.
Fraser Place Kuala Lumpur is owned by Malaysian-listed YNH Property.
The project is part of a mixed development comprising an office tower
and a second tower with 217 studios, one-bedroom, two-bedroom and
penthouse serviced residences.
Frasers said in a statement yesterday that when Fraser Place Kuala
Lumpur opens in the third quarter of 2009, it will set a new standard
for Malaysia's extended-stay segment.
Every apartment has a separate bedroom, a fully-equipped kitchen with
cooking implements, cutlery and a dishwasher, and a washer-dryer for
clothes.
Guests can also make use of an all-day dining outlet, meeting and
function rooms, fitness centre, and playground and playroom for
children.
Frasers Hospitality chief executive officer Choe Peng Sum says the
project will be ideal for expatriates working in Malaysia on medium-
term projects, as it provides comfort, all-day-dining and even
facilities for accompanying spouses and families.
CBRE Group income dives 88% in Q2
July 31, 2008
CBRE Group income dives 88% in Q2
Brokerage fees hit as sales dry up due to global credit market crunch
(NEW YORK) CB Richard Ellis Group Inc, the world's largest commercial
real estate brokerage, said quarterly net income plunged 88 per cent,
partly on lower brokerage fees from sales that have all but dried up
due to the severely constrained global credit markets.
Second-quarter net income fell to US$16.6 million, or 8 cents per
share, from US$141.1 million, or 59 cents per share, in the year-
earlier quarter, the company said on Tuesday.
Excluding one-time charges Los Angeles-based CB Richard Ellis would
have earned US$33.2 million, or 16 cents per share, compared with
US$157.3 million, or 66 cents last year, still far from the 44 cents
analysts on average had expected, according to Reuters Estimates.
'As we had anticipated, the leasing business turned down from the
strong first quarter, especially in the Americas and the UK,
reflecting weak economic activity and decreasing business
confidence,' Brett White, chief executive, said in a statement.
'Investment sales activity remained quite soft due to a broadening of
the credit market turmoil and a continuing gap between buyer and
seller expectations of property values. Decreased investment volumes
have now become evident in all parts of the world.'
Revenue fell to US$1.3 billion from US$1.5 billion and behind the
US$1.42 billion analysts had expected, according to Reuters
Estimates.
The commercial real estate market has been hampered by the broader
tightness in the credit markets.
The company's two biggest markets, the United States and Britain have
seen a dramatic fall-off in commercial real estate sales and a
slowdown in demand for space.
One bright spot was the company's real estate outsourcing business,
which overseas real estate needs for large global companies. That
segment saw revenue rise 29 per cent, accounting for one third of the
Los Angeles-based company's global revenue. Also the Asia-Pacific
region saw revenue rise 27.8 per cent to US$155.7 million.
But the larger regions were gloomy. In the Americas region, which
includes the United States, Canada and Latin America, revenue fell 16
per cent to US$785.5 million. In Europe, Middle East and Africa,
revenue fell 9.4 per cent to US$299.7 million.
In the Global Investment Management segment, which consists of
investment management operations in the United States, Europe and
Asia, revenue fell 49 per cent to US$42.7 million, compared with the
second-quarter last year, which included performance fees from funds.
In addition, the second quarter of 2008 included a writedown of
US$11.9 million for two investments whose market value declined.
CBRE Group income dives 88% in Q2
Brokerage fees hit as sales dry up due to global credit market crunch
(NEW YORK) CB Richard Ellis Group Inc, the world's largest commercial
real estate brokerage, said quarterly net income plunged 88 per cent,
partly on lower brokerage fees from sales that have all but dried up
due to the severely constrained global credit markets.
Second-quarter net income fell to US$16.6 million, or 8 cents per
share, from US$141.1 million, or 59 cents per share, in the year-
earlier quarter, the company said on Tuesday.
Excluding one-time charges Los Angeles-based CB Richard Ellis would
have earned US$33.2 million, or 16 cents per share, compared with
US$157.3 million, or 66 cents last year, still far from the 44 cents
analysts on average had expected, according to Reuters Estimates.
'As we had anticipated, the leasing business turned down from the
strong first quarter, especially in the Americas and the UK,
reflecting weak economic activity and decreasing business
confidence,' Brett White, chief executive, said in a statement.
'Investment sales activity remained quite soft due to a broadening of
the credit market turmoil and a continuing gap between buyer and
seller expectations of property values. Decreased investment volumes
have now become evident in all parts of the world.'
Revenue fell to US$1.3 billion from US$1.5 billion and behind the
US$1.42 billion analysts had expected, according to Reuters
Estimates.
The commercial real estate market has been hampered by the broader
tightness in the credit markets.
The company's two biggest markets, the United States and Britain have
seen a dramatic fall-off in commercial real estate sales and a
slowdown in demand for space.
One bright spot was the company's real estate outsourcing business,
which overseas real estate needs for large global companies. That
segment saw revenue rise 29 per cent, accounting for one third of the
Los Angeles-based company's global revenue. Also the Asia-Pacific
region saw revenue rise 27.8 per cent to US$155.7 million.
But the larger regions were gloomy. In the Americas region, which
includes the United States, Canada and Latin America, revenue fell 16
per cent to US$785.5 million. In Europe, Middle East and Africa,
revenue fell 9.4 per cent to US$299.7 million.
In the Global Investment Management segment, which consists of
investment management operations in the United States, Europe and
Asia, revenue fell 49 per cent to US$42.7 million, compared with the
second-quarter last year, which included performance fees from funds.
In addition, the second quarter of 2008 included a writedown of
US$11.9 million for two investments whose market value declined.
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