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Showing posts with label Singapore Property news. Show all posts
Showing posts with label Singapore Property news. Show all posts
Sunday, March 1, 2009
BEST PRICES! Casa Merah Condominium for Sale. 68 genuine units avail. www.Casa-Merah.com
Wednesday, August 27, 2008
Wing Tai's Q4 net slumps 60%
August 27, 2008
Wing Tai's Q4 net slumps 60%
Home sellers seen unlikely to resort to fire-sale - at least until
2010
By UMA SHANKARI
PROPERTY group Wing Tai Holdings yesterday said that net profit for
its fourth quarter fell by more than half as it sold fewer homes and
saw lower fair value gains from investment properties.
At the same time, chairman Cheng Wai Keung, known for his often
candid assessments of the property market, said that while home
prices could see some adjustment in 2008 and 2009, sellers are
unlikely to have a 'fire sale' of their properties - at least until
2010.
This is because home prices in Singapore started climbing rapidly
only in 2006 and 2007, and buyers of these newer properties will see
the projects completed only from 2010 onwards. The push to offload
their units will happen only then, he said.
The company's net profit for the three months ended June 30 fell 60
per cent to $96.3 million, from $243.2 million a year ago. Fair value
gains on investment properties dropped to $90.6 million from $189
million.
Revenue for the fourth quarter fell 57 per cent to $107.3 million,
down from $249.1 million in Q4 2007. Among other projects, revenue
was contributed by units sold in The Riverine by the Park in
Singapore.
Earnings per share fell to 12.45 cents, from 33.83 cents a year ago.
Wing Tai has declared a dividend of six cents a share, comprising a
first and final dividend of three cents and a special dividend of
three cents.
For the entire 2008 financial year, Wing Tai reported that net profit
fell some 40 per cent to $229.4 million, from $381.8 million in
FY2007.
Revenue for the 12 months fell 56 per cent to $428.2 million, from
$981.6 million a year ago.
Wing Tai said in a filing to the Singapore Exchange that the
underlying fundamentals of the property market are still sound.
'I have always believed that property is actually a reflection of the
fundamental strength of the economy,' said Mr Cheng. However,
sentiment has a part to play too, he admitted.
Wing Tai sold some 205 units in Singapore during the financial year,
although the majority of units were sold in the last six months of
2007.
The company has some 1.4 million square feet in its residential land
bank, but no new launches are planned for the moment, Mr Cheng said.
Wing Tai's Q4 net slumps 60%
Home sellers seen unlikely to resort to fire-sale - at least until
2010
By UMA SHANKARI
PROPERTY group Wing Tai Holdings yesterday said that net profit for
its fourth quarter fell by more than half as it sold fewer homes and
saw lower fair value gains from investment properties.
At the same time, chairman Cheng Wai Keung, known for his often
candid assessments of the property market, said that while home
prices could see some adjustment in 2008 and 2009, sellers are
unlikely to have a 'fire sale' of their properties - at least until
2010.
This is because home prices in Singapore started climbing rapidly
only in 2006 and 2007, and buyers of these newer properties will see
the projects completed only from 2010 onwards. The push to offload
their units will happen only then, he said.
The company's net profit for the three months ended June 30 fell 60
per cent to $96.3 million, from $243.2 million a year ago. Fair value
gains on investment properties dropped to $90.6 million from $189
million.
Revenue for the fourth quarter fell 57 per cent to $107.3 million,
down from $249.1 million in Q4 2007. Among other projects, revenue
was contributed by units sold in The Riverine by the Park in
Singapore.
Earnings per share fell to 12.45 cents, from 33.83 cents a year ago.
Wing Tai has declared a dividend of six cents a share, comprising a
first and final dividend of three cents and a special dividend of
three cents.
For the entire 2008 financial year, Wing Tai reported that net profit
fell some 40 per cent to $229.4 million, from $381.8 million in
FY2007.
Revenue for the 12 months fell 56 per cent to $428.2 million, from
$981.6 million a year ago.
Wing Tai said in a filing to the Singapore Exchange that the
underlying fundamentals of the property market are still sound.
'I have always believed that property is actually a reflection of the
fundamental strength of the economy,' said Mr Cheng. However,
sentiment has a part to play too, he admitted.
Wing Tai sold some 205 units in Singapore during the financial year,
although the majority of units were sold in the last six months of
2007.
The company has some 1.4 million square feet in its residential land
bank, but no new launches are planned for the moment, Mr Cheng said.
Hotel site at Short Street now available
August 27, 2008
Hotel site at Short Street now available
By ARTHUR SIM
DEVELOPERS interested in a hotel site in Short Street can apply for
it to be put up for tender, after the Urban Redevelopment Authority
(URA) released detailed sale conditions.
The 0.12 hectare site is one of two new hotel plots on the reserve
list under the second-half 2008 Government Land Sales (GLS) programme.
The site, in the Bras Basah/Bugis district, has a maximum permissible
gross floor area of 4,077 sq metres (43,884.4 sq ft) - smaller than
others released this year.
Cushman and Wakefield managing director Donald Han believes it will
attract smaller developers and new entrants to the market.
The owner of neighbouring Albert Court Hotel may feel compelled to
bid, he said.
He reckons that if the site goes up for public tender, bids could
range from $350 to $400 psf per plot ratio (psf ppr) - a quantum of
$15.4-$17.6 million.
Knight Frank director (research and consultancy) Nicholas Mak also
sees bids in this range.
'Based on planning details and the neighbourhood, a boutique hotel
development with an ethnically artistic design is deemed suitable,'
he said.
For instance, a developer could put up a Peranakan-style building
similar to Albert Court Hotel.
Earlier this month, URA received a committed bid of $51 million or
$249.6 psf ppr for a reserve list hotel site at Kallang and Jellicoe
roads.
Also this month, URA awarded a hotel site in Balestier Road to HH
Properties, which put in the highest bid of $172 psf ppr.
There are now nine hotel development sites on the GLS reserve list.
According to URA, the reserve list for H2 2008 provides for potential
supply of 5,050 hotel rooms, including a white site at Outram Road.
Hotel site at Short Street now available
By ARTHUR SIM
DEVELOPERS interested in a hotel site in Short Street can apply for
it to be put up for tender, after the Urban Redevelopment Authority
(URA) released detailed sale conditions.
The 0.12 hectare site is one of two new hotel plots on the reserve
list under the second-half 2008 Government Land Sales (GLS) programme.
The site, in the Bras Basah/Bugis district, has a maximum permissible
gross floor area of 4,077 sq metres (43,884.4 sq ft) - smaller than
others released this year.
Cushman and Wakefield managing director Donald Han believes it will
attract smaller developers and new entrants to the market.
The owner of neighbouring Albert Court Hotel may feel compelled to
bid, he said.
He reckons that if the site goes up for public tender, bids could
range from $350 to $400 psf per plot ratio (psf ppr) - a quantum of
$15.4-$17.6 million.
Knight Frank director (research and consultancy) Nicholas Mak also
sees bids in this range.
'Based on planning details and the neighbourhood, a boutique hotel
development with an ethnically artistic design is deemed suitable,'
he said.
For instance, a developer could put up a Peranakan-style building
similar to Albert Court Hotel.
Earlier this month, URA received a committed bid of $51 million or
$249.6 psf ppr for a reserve list hotel site at Kallang and Jellicoe
roads.
Also this month, URA awarded a hotel site in Balestier Road to HH
Properties, which put in the highest bid of $172 psf ppr.
There are now nine hotel development sites on the GLS reserve list.
According to URA, the reserve list for H2 2008 provides for potential
supply of 5,050 hotel rooms, including a white site at Outram Road.
HDB launches latest BTO project in Bukit Panjang
August 27, 2008
HDB launches latest BTO project in Bukit Panjang
By UMA SHANKARI
THE Housing and Development Board (HDB) yesterday launched its 474-
unit Senja Green project in Bukit Panjang.
The flats, offered under HDB's build-to-order (BTO) scheme, are among
8,400 BTO units planned for 2008, HDB said.
Senja Green comprises 96 two-room, 94 three- room and 284 four-room
apartments.
Two-room flats cost $82,000-$106,000, three- room flats $138,000-
$170,000 and four-room flats $211,000-$270,000.
Senja Green is bounded by Woodlands and Senja roads and Senja Way.
Come 2015, residents will also be near the upcoming Downtown Line 2
at Bukit Panjang.
Amid rising HDB prices, the BTO scheme offers first- time buyers one
of the cheapest options, market watchers say.
The flats are priced a shade lower than nearby resale flats, says
Eugene Lim, assistant vice-president of property agency ERA Asia-
Pacific.
A four-room resale flat in the area costs about $280,000, he said.
'The new flats offer buyers a variation from previous BTO projects,
which have mostly been in areas such as Sengkang and Punggol,' he
noted.
HDB launches latest BTO project in Bukit Panjang
By UMA SHANKARI
THE Housing and Development Board (HDB) yesterday launched its 474-
unit Senja Green project in Bukit Panjang.
The flats, offered under HDB's build-to-order (BTO) scheme, are among
8,400 BTO units planned for 2008, HDB said.
Senja Green comprises 96 two-room, 94 three- room and 284 four-room
apartments.
Two-room flats cost $82,000-$106,000, three- room flats $138,000-
$170,000 and four-room flats $211,000-$270,000.
Senja Green is bounded by Woodlands and Senja roads and Senja Way.
Come 2015, residents will also be near the upcoming Downtown Line 2
at Bukit Panjang.
Amid rising HDB prices, the BTO scheme offers first- time buyers one
of the cheapest options, market watchers say.
The flats are priced a shade lower than nearby resale flats, says
Eugene Lim, assistant vice-president of property agency ERA Asia-
Pacific.
A four-room resale flat in the area costs about $280,000, he said.
'The new flats offer buyers a variation from previous BTO projects,
which have mostly been in areas such as Sengkang and Punggol,' he
noted.
S'pore housing: Get the bigger picture right
August 27, 2008
MONEY MATTERS
S'pore housing: Get the bigger picture right
By JOSEPH CHONG
THE media recently highlighted bearish analyst reports about the
Singapore residential market. One, I recall, predicted a decline of
40 per cent over three years. Another forecast plunging rents in 2009
and consequent sharp falls in capital values. Perhaps this is why
some owners have chosen to sell prime freehold units at implied gross
yields of 4 per cent.
However, looking at the same data, I could not arrive at the same
dour conclusion. I could not arrive at the same conclusion because I
looked at data from other sources as well - in particular, HDB
statistics. Since HDB rules on owners leasing out flats have been
liberalised, the housing market is now a continuum. Indeed, on a per
sq ft basis, rents commanded by well-located HDB flats are now
comparable to those for private residential apartments, going by HDB
and URA data.
The big picture in housing has always been driven by supply and
demand - total supply and demand, not just private residential. If
more households are created than housing units completed, there is
upward pressure on rents and capital values.
Let's look at supply first: A net 10,000 private residential homes
are estimated to be completed in 2009. HDB does not publish
completion data, but based on 2006 build-to-order data, only 2,400
units are estimated to be completed in 2009. In total, that's 12,400
housing units.
Now let's look at demand: According to the HDB's website, sub-letting
approvals in 2007 totalled about 12,800, or 50 per cent more than
2006. Yes, the HDB rental market is hot. For 2008, sub-letting
approvals are running 30 per cent higher than in 2007, or about
16,300 units. This is consistent with data from the Department of
Statistics on population and workforce growth in Singapore. The new
(foreign) households are not living in tents. If they cannot afford
private housing, they rent HDB flats.
We see that rental demand alone for HDB flats will probably exceed
total private and HDB housing completions of about 12,400 units in
2009. Although the world economy is probably going to feel
recessionary in 2009, Singapore will be somewhat insulated. This is
because of a number of large projects coming on stream will boost job
creation significantly in 2009. In particular, the integrated resorts
(IRs) are expected to have 20,000 employees and create 50,000 new
jobs overall. Given the nature of the IRs, I would expect a
significant portion - perhaps 50 per cent of their employees
initially to be foreigners, thus boosting household formation in 2009.
Nonetheless, I expect some softness in the private residential rental
market relative to the HDB in 2009, as the bulk of completions will
be private. For developments with adjacent completions, rents will be
restrained by competition. Indeed, we see this happening already.
URA publishes comprehensive data on the property market. I believe it
would be helpful for the market if the HDB published similar data,
especially vacancy rates and building completion numbers. Even better
would be for the authorities to publish composite data that
amalgamates HDB and URA data.
Interestingly, despite the liberalised HDB rental market, HDB rents
have risen despite volume growth. Demand has clearly been very
strong. With average gross HDB rental yields of 6 per cent, or a net
yield of about 5 per cent, HDB upgraders buying private property have
a financial planning and investment choice. Upgraders who have the
liquidity and risk tolerance may want to look out leasing out their
HDB flats and taking a bigger mortgage, instead of selling their
flats to finance the upgrade to private housing.
The net rental yield of about 5 per cent versus mortgage costs of
about 3 per cent means a positive spread of 2 per cent. This 2 per
cent on $400,000 delivers an additional $8,000 a year, assuming
rental income does not rise with time. This would be handy in
accelerating the reduction of the overall mortgage principal. Over
the life of the mortgage, it could amount to more than $200,000 - a
nice contribution to the retirement nest egg.
The author is CEO of financial adviser New Independent. He welcomes
feedback at josephchong@ni.com.sg. This article is for information
only. Readers should seek independent advice before making any
investment decisions.
MONEY MATTERS
S'pore housing: Get the bigger picture right
By JOSEPH CHONG
THE media recently highlighted bearish analyst reports about the
Singapore residential market. One, I recall, predicted a decline of
40 per cent over three years. Another forecast plunging rents in 2009
and consequent sharp falls in capital values. Perhaps this is why
some owners have chosen to sell prime freehold units at implied gross
yields of 4 per cent.
However, looking at the same data, I could not arrive at the same
dour conclusion. I could not arrive at the same conclusion because I
looked at data from other sources as well - in particular, HDB
statistics. Since HDB rules on owners leasing out flats have been
liberalised, the housing market is now a continuum. Indeed, on a per
sq ft basis, rents commanded by well-located HDB flats are now
comparable to those for private residential apartments, going by HDB
and URA data.
The big picture in housing has always been driven by supply and
demand - total supply and demand, not just private residential. If
more households are created than housing units completed, there is
upward pressure on rents and capital values.
Let's look at supply first: A net 10,000 private residential homes
are estimated to be completed in 2009. HDB does not publish
completion data, but based on 2006 build-to-order data, only 2,400
units are estimated to be completed in 2009. In total, that's 12,400
housing units.
Now let's look at demand: According to the HDB's website, sub-letting
approvals in 2007 totalled about 12,800, or 50 per cent more than
2006. Yes, the HDB rental market is hot. For 2008, sub-letting
approvals are running 30 per cent higher than in 2007, or about
16,300 units. This is consistent with data from the Department of
Statistics on population and workforce growth in Singapore. The new
(foreign) households are not living in tents. If they cannot afford
private housing, they rent HDB flats.
We see that rental demand alone for HDB flats will probably exceed
total private and HDB housing completions of about 12,400 units in
2009. Although the world economy is probably going to feel
recessionary in 2009, Singapore will be somewhat insulated. This is
because of a number of large projects coming on stream will boost job
creation significantly in 2009. In particular, the integrated resorts
(IRs) are expected to have 20,000 employees and create 50,000 new
jobs overall. Given the nature of the IRs, I would expect a
significant portion - perhaps 50 per cent of their employees
initially to be foreigners, thus boosting household formation in 2009.
Nonetheless, I expect some softness in the private residential rental
market relative to the HDB in 2009, as the bulk of completions will
be private. For developments with adjacent completions, rents will be
restrained by competition. Indeed, we see this happening already.
URA publishes comprehensive data on the property market. I believe it
would be helpful for the market if the HDB published similar data,
especially vacancy rates and building completion numbers. Even better
would be for the authorities to publish composite data that
amalgamates HDB and URA data.
Interestingly, despite the liberalised HDB rental market, HDB rents
have risen despite volume growth. Demand has clearly been very
strong. With average gross HDB rental yields of 6 per cent, or a net
yield of about 5 per cent, HDB upgraders buying private property have
a financial planning and investment choice. Upgraders who have the
liquidity and risk tolerance may want to look out leasing out their
HDB flats and taking a bigger mortgage, instead of selling their
flats to finance the upgrade to private housing.
The net rental yield of about 5 per cent versus mortgage costs of
about 3 per cent means a positive spread of 2 per cent. This 2 per
cent on $400,000 delivers an additional $8,000 a year, assuming
rental income does not rise with time. This would be handy in
accelerating the reduction of the overall mortgage principal. Over
the life of the mortgage, it could amount to more than $200,000 - a
nice contribution to the retirement nest egg.
The author is CEO of financial adviser New Independent. He welcomes
feedback at josephchong@ni.com.sg. This article is for information
only. Readers should seek independent advice before making any
investment decisions.
New HDB flats for sale, rent in West
Aug 27, 2008
New HDB flats for sale, rent in West
Coming up in Bukit Panjang: 474 homes for sale, 300 for rent
By Jessica Cheam
HOMEBUYERS are being offered a further 474 new flats to choose from,
with the launch of a new Housing Board project in Bukit Panjang
yesterday.
Also, 300 units in two new rental blocks will be built nearby, for
the first time under the same contract as the flats being offered for
sale.
HDB's latest move to ramp up the building of new flats and rental
homes comes after demand soared for both types of housing in the past
year.
The new project, called Senja Green, offers two- to four-room units -
with prices ranging from $82,000 to $270,000 each.
The flats, under HDB's build-to-order scheme, will only be built if a
certain level of demand is reached.
HDB's latest development brings the number of new flats launched for
sale this year to 5,000. It plans to launch 8,400 units by the end of
the year.
As for rental flats, HDB said it expects to increase its current
stock from 42,800 to 49,860 by 2011.
The sharp hike in demand for rental flats was flagged by Prime
Minister Lee Hsien Loong in his recent National Day Rally speech as a
worrying trend.
To prevent abuse of the rental scheme, National Development Minister
Mah Bow Tan announced stricter rules last Saturday, effective
immediately, which will see Singaporeans in desperate need of a home
given priority for such flats.
Each month, about 131 tenants give up their flats and 382 people join
the queue.
In June, there were 4,387 applicants on the waiting list. They wait,
on average, 18 months for a one-room rental flat and nine months for
a two-room flat.
HDB said yesterday that the rental flats were included in the same
building contract 'for greater economies of scale, amid rising
construction costs'.
The launch of Senja Green follows another HDB project, Segar Meadows,
in Bukit Panjang town, which was launched last November.
As at 5pm yesterday, 177 applications had been lodged for the new
units.
Senja Green is located in Woodlands Road and is bounded by Senja Way
and Senja Road. The rental blocks are separate from Senja Green but
will also sit on Woodlands Road.
The new flats are close to the Ten Mile Junction shopping mall and
Senja LRT Station as well as West View Primary School and West Spring
Secondary School.
Residents can also look forward to the Downtown Line 2 in Bukit
Panjang, which will be ready in about 2015, HDB said.
The 96 two-room flats available at Senja Green will come with a floor
area of 47 sq m each. They will be priced between $82,000 and
$106,000 each.
The 94 three-room flats will have a floor area of 67 sq m each and
cost $138,000 to $170,000. There are also 284 four-room flats of 93
sq m in size, which will go for $211,000 to $270,000 each.
Buyers can opt for ceramic floor tiles and internal timber doors to
be installed in their flats, at an additional cost.
Interested buyers can apply online at HDB's website www.hdb.gov.sg
from now until Sept 8.
The selection exercise will start from November. Models of the
estates are on display at the HDB Hub Habitat Forum in Toa Payoh
until the closing date.
New HDB flats for sale, rent in West
Coming up in Bukit Panjang: 474 homes for sale, 300 for rent
By Jessica Cheam
HOMEBUYERS are being offered a further 474 new flats to choose from,
with the launch of a new Housing Board project in Bukit Panjang
yesterday.
Also, 300 units in two new rental blocks will be built nearby, for
the first time under the same contract as the flats being offered for
sale.
HDB's latest move to ramp up the building of new flats and rental
homes comes after demand soared for both types of housing in the past
year.
The new project, called Senja Green, offers two- to four-room units -
with prices ranging from $82,000 to $270,000 each.
The flats, under HDB's build-to-order scheme, will only be built if a
certain level of demand is reached.
HDB's latest development brings the number of new flats launched for
sale this year to 5,000. It plans to launch 8,400 units by the end of
the year.
As for rental flats, HDB said it expects to increase its current
stock from 42,800 to 49,860 by 2011.
The sharp hike in demand for rental flats was flagged by Prime
Minister Lee Hsien Loong in his recent National Day Rally speech as a
worrying trend.
To prevent abuse of the rental scheme, National Development Minister
Mah Bow Tan announced stricter rules last Saturday, effective
immediately, which will see Singaporeans in desperate need of a home
given priority for such flats.
Each month, about 131 tenants give up their flats and 382 people join
the queue.
In June, there were 4,387 applicants on the waiting list. They wait,
on average, 18 months for a one-room rental flat and nine months for
a two-room flat.
HDB said yesterday that the rental flats were included in the same
building contract 'for greater economies of scale, amid rising
construction costs'.
The launch of Senja Green follows another HDB project, Segar Meadows,
in Bukit Panjang town, which was launched last November.
As at 5pm yesterday, 177 applications had been lodged for the new
units.
Senja Green is located in Woodlands Road and is bounded by Senja Way
and Senja Road. The rental blocks are separate from Senja Green but
will also sit on Woodlands Road.
The new flats are close to the Ten Mile Junction shopping mall and
Senja LRT Station as well as West View Primary School and West Spring
Secondary School.
Residents can also look forward to the Downtown Line 2 in Bukit
Panjang, which will be ready in about 2015, HDB said.
The 96 two-room flats available at Senja Green will come with a floor
area of 47 sq m each. They will be priced between $82,000 and
$106,000 each.
The 94 three-room flats will have a floor area of 67 sq m each and
cost $138,000 to $170,000. There are also 284 four-room flats of 93
sq m in size, which will go for $211,000 to $270,000 each.
Buyers can opt for ceramic floor tiles and internal timber doors to
be installed in their flats, at an additional cost.
Interested buyers can apply online at HDB's website www.hdb.gov.sg
from now until Sept 8.
The selection exercise will start from November. Models of the
estates are on display at the HDB Hub Habitat Forum in Toa Payoh
until the closing date.
Ensuring rental flats go to 'truly needy'
Aug 27, 2008
Ensuring rental flats go to 'truly needy'
TWO-THIRDS of people who apply to rent Housing Board flats are former
flat owners.
And of this group, two-thirds are not in arrears nor are they divorce
cases, whose special circumstances are weighed when they apply for
rental flats.
These people appear to be 'not truly needy', and the Housing Board
does not want them to crowd the rental queue meant for low-income
earners, said Dr Mohamad Maliki Osman, Parliamentary Secretary of the
National Development Ministry.
He was responding to Madam Ho Geok Choo (West Coast GRC), who had
asked why there has been a sudden surge in demand for rental flats.
Dr Maliki said that with high property prices, some people sell their
flats and turn to heavily subsidised rental flats as 'an attractive
option'.
'We are in the process of reviewing the rental applicants to make
sure the subsidies given to rental housing are targeted at the really
truly needy,' he added.
The not truly needy group plus the higher cost of living are among
the reasons for the strong demand for rental flats, he noted. Dr
Maliki does not think those on public assistance form the majority of
families that default on their rent to the Housing Board.
This is because by and large, they receive 'substantial assistance'
from the Ministry of Community Development, Youth and Sports, he
said, adding that he did not have the full profile of defaulters.
People who apply for rental flats must have a household income that
is not more than $1,500, and they must not have sold their property
in the last 30 months.
In his National Day Rally speech, Prime Minister Lee Hsien Loong had
expressed concern over the tripling in the number of people seeking
rental flats.
Those who are not needy can look for alternatives, he said, such as
moving in with their children or renting a room in the open market.
Ensuring rental flats go to 'truly needy'
TWO-THIRDS of people who apply to rent Housing Board flats are former
flat owners.
And of this group, two-thirds are not in arrears nor are they divorce
cases, whose special circumstances are weighed when they apply for
rental flats.
These people appear to be 'not truly needy', and the Housing Board
does not want them to crowd the rental queue meant for low-income
earners, said Dr Mohamad Maliki Osman, Parliamentary Secretary of the
National Development Ministry.
He was responding to Madam Ho Geok Choo (West Coast GRC), who had
asked why there has been a sudden surge in demand for rental flats.
Dr Maliki said that with high property prices, some people sell their
flats and turn to heavily subsidised rental flats as 'an attractive
option'.
'We are in the process of reviewing the rental applicants to make
sure the subsidies given to rental housing are targeted at the really
truly needy,' he added.
The not truly needy group plus the higher cost of living are among
the reasons for the strong demand for rental flats, he noted. Dr
Maliki does not think those on public assistance form the majority of
families that default on their rent to the Housing Board.
This is because by and large, they receive 'substantial assistance'
from the Ministry of Community Development, Youth and Sports, he
said, adding that he did not have the full profile of defaulters.
People who apply for rental flats must have a household income that
is not more than $1,500, and they must not have sold their property
in the last 30 months.
In his National Day Rally speech, Prime Minister Lee Hsien Loong had
expressed concern over the tripling in the number of people seeking
rental flats.
Those who are not needy can look for alternatives, he said, such as
moving in with their children or renting a room in the open market.
Lease buy-back kicks off next year
Aug 27, 2008
Lease buy-back kicks off next year
By Lee Siew Hua
FROM January next year, elderly home-owners of small flats will
receive $550 each month if they join a new plan to sell part of their
lease back to the Housing Board.
The proceeds from this sale will go to a Central Provident Fund Life
annuity, which gives them a stream of monthly payouts for retirement
even as they continue to stay comfortably in their homes.
This plan is open to people who are at least 62 years old.
Senior Minister of State for National Development Grace Fu yesterday
gave Parliament an update of the scheme, first announced last August
by Prime Minister Lee Hsien Loong.
Said Ms Fu: 'This is really a good solution to cater to a group of
the elderly who probably do not have as many options as those who are
staying in the bigger flats.'
Their two- to three-room flats are 'sizeable assets which they can
monetise' by turning to the lease buy-back scheme, she added,
replying to Madam Cynthia Phua (Aljunied GRC) and Mr Baey Yam Keng
(Tanjong Pagar GRC).
She projected that 25,000 households can sign up for it. This
represents 70 per cent of the elderly who own two- and three-room
flats.
She addressed two common questions.
First, what happens if the flat owner outlives the lease? 'No elderly
will be left homeless,' she assured the House.
One option is to buy a lease extension. But not all can afford this,
so the HDB will assess the housing options of each family and
be 'sensitive' to their financial health, she said.
Next, what happens if an elderly person dies prematurely? In this
case, his estate will receive a 'pro-rated refund on the residual
lease', Ms Fu said.
For the elderly, studio flats are another option and the Government
is building more of these, she noted in her reply to Madam Phua.
Ms Fu said: 'In many of the new estates we are building, two-room
flats are available.
'In fact, they are not as well subscribed as the bigger flats so once
the flats are ready, they are available straightaway.'
Lease buy-back kicks off next year
By Lee Siew Hua
FROM January next year, elderly home-owners of small flats will
receive $550 each month if they join a new plan to sell part of their
lease back to the Housing Board.
The proceeds from this sale will go to a Central Provident Fund Life
annuity, which gives them a stream of monthly payouts for retirement
even as they continue to stay comfortably in their homes.
This plan is open to people who are at least 62 years old.
Senior Minister of State for National Development Grace Fu yesterday
gave Parliament an update of the scheme, first announced last August
by Prime Minister Lee Hsien Loong.
Said Ms Fu: 'This is really a good solution to cater to a group of
the elderly who probably do not have as many options as those who are
staying in the bigger flats.'
Their two- to three-room flats are 'sizeable assets which they can
monetise' by turning to the lease buy-back scheme, she added,
replying to Madam Cynthia Phua (Aljunied GRC) and Mr Baey Yam Keng
(Tanjong Pagar GRC).
She projected that 25,000 households can sign up for it. This
represents 70 per cent of the elderly who own two- and three-room
flats.
She addressed two common questions.
First, what happens if the flat owner outlives the lease? 'No elderly
will be left homeless,' she assured the House.
One option is to buy a lease extension. But not all can afford this,
so the HDB will assess the housing options of each family and
be 'sensitive' to their financial health, she said.
Next, what happens if an elderly person dies prematurely? In this
case, his estate will receive a 'pro-rated refund on the residual
lease', Ms Fu said.
For the elderly, studio flats are another option and the Government
is building more of these, she noted in her reply to Madam Phua.
Ms Fu said: 'In many of the new estates we are building, two-room
flats are available.
'In fact, they are not as well subscribed as the bigger flats so once
the flats are ready, they are available straightaway.'
Tampines site: Sole bid rejected
Aug 27, 2008
Tampines site: Sole bid rejected
THE sole bid for a Tampines condominium site overlooking Bedok
Reservoir has been shot down for being too low.
Boon Keng Development's optimistic offer of $84.6 million, or $118
per sq ft (psf), for the site was just not enough, said the Urban
Redevelopment Authority (URA) yesterday.
Consultants were not surprised that the bid was rejected.
They had previously said that anything from $150 to $230 psf would
have been more reasonable as apartments on the 3.2ha site could sell
for up to $700 psf.
According to Knight Frank's director of research and consultancy, Mr
Nicholas Mak: 'If the Government had accepted it, it would be taken
as a signal that it is lowering its reserve price for all other
sites.
'Or (a signal) the Government is of the opinion that the land price
has fallen to the same level as that during the 1998 recession.
'Even then, the last piece of government land sold in 1997 before
site tenders were suspended because of the recession was $171 psf for
a piece of land at Hougang Street 11.
'So it was too optimistic to expect the government to award this
bid.'
The tender for the 99-year residential site at the junction of
Tampines Avenue 1 and 10 was launched on June 17 and closed on Aug
12.
Tampines site: Sole bid rejected
THE sole bid for a Tampines condominium site overlooking Bedok
Reservoir has been shot down for being too low.
Boon Keng Development's optimistic offer of $84.6 million, or $118
per sq ft (psf), for the site was just not enough, said the Urban
Redevelopment Authority (URA) yesterday.
Consultants were not surprised that the bid was rejected.
They had previously said that anything from $150 to $230 psf would
have been more reasonable as apartments on the 3.2ha site could sell
for up to $700 psf.
According to Knight Frank's director of research and consultancy, Mr
Nicholas Mak: 'If the Government had accepted it, it would be taken
as a signal that it is lowering its reserve price for all other
sites.
'Or (a signal) the Government is of the opinion that the land price
has fallen to the same level as that during the 1998 recession.
'Even then, the last piece of government land sold in 1997 before
site tenders were suspended because of the recession was $171 psf for
a piece of land at Hougang Street 11.
'So it was too optimistic to expect the government to award this
bid.'
The tender for the 99-year residential site at the junction of
Tampines Avenue 1 and 10 was launched on June 17 and closed on Aug
12.
Home prices stable till 2010: Wing Tai
Aug 27, 2008
Home prices stable till 2010: Wing Tai
It is in no rush to launch Ardmore Park sites despite softening
market
By Fiona Chan, Property Reporter
PROPERTY developer Wing Tai Holdings is in no hurry to launch the two
sites it owns in the prestigious Ardmore Park area: the Ardmore Park
condominium and Anderson 18.
Wing Tai chairman Cheng Wai Keung said yesterday that although home
prices are softening, he expects them to remain mostly stable until
at least 2010.
This is because projects that are being completed this year and next
were originally sold at relatively low prices in 2005 and 2006, so
there is no urgency for buyers of these projects to unload their
units.
'Developers are also quite strong financially, so if they can hold
and allow the orderly release of units, I do not see prices dropping
drastically,' he told reporters and analysts at the release of Wing
Tai's full-year results.
Beyond 2010, however, the situation may change. Projects to be
completed then were launched at 'very high prices' last year, and if
the economy does not improve by then, these expensive apartments may
flood the market while financially strong developers will probably
also weaken, Mr Cheng said.
But he added that while prices have softened, it is not because
Singapore's economic fundamentals have worsened but rather
because 'traders', or speculators, have left the market. 'I maintain
that fundamentals are sound,' he said.
In fact, Mr Cheng said he is prepared to hold out for prices to reach
$4,000 per sq ft (psf) again at Ardmore Park. 'Even at the peak, when
they were talking about $4,000 psf, I still think that was relatively
cheap, compared to values in the world and in Singapore.'
He added that Wing Tai owns two of the three sites to be launched in
the Ardmore Park area. SC Global has the third, The Ardmore. 'We are
the ones who will set the price; if we never lower prices, how can it
lose value?'
For now, Wing Tai has already locked in construction costs for
Ardmore Park and is renting out the units in Anderson 18 rather than
tearing down the building for redevelopment.
In the meantime, the developer may launch some of the other sites in
its land bank this year or next, said Wing Tai's chief operating
officer Tan Hwee Bin.
Belle Vue Residences in Oxley Walk will be launch-ready next month,
while a 99-year leasehold site in Alexandra Road near the Redhill MRT
Station will obtain all the necessary approvals by the year end.
Ms Tan said the group will position the Alexandra Road condo as a mid-
tier project minutes away from Orchard Road, and may bring to it some
of the features it has used in its high-end Draycott8 development.
For the past year, slower home sales have taken their toll on the
performance of the property and retail group.
Wing Tai's fourth-quarter net profit fell 60 per cent to $96.3
million, dragging down full-year net profit 40 per cent to $229.4
million. Revenue more than halved both in the fourth quarter, to
$107.3 million, and in the full year, to $428.2 million.
Earnings per share dropped to 30.11 cents for the year to June 30,
from 53.12 cents the previous year. Net asset value per share slipped
to $2.03 as at June 30, from $2.07 a year ago.
Wing Tai is proposing a dividend of six cents per share for the year,
comprising a first and final dividend of three cents and a special
dividend of three cents.
Home prices stable till 2010: Wing Tai
It is in no rush to launch Ardmore Park sites despite softening
market
By Fiona Chan, Property Reporter
PROPERTY developer Wing Tai Holdings is in no hurry to launch the two
sites it owns in the prestigious Ardmore Park area: the Ardmore Park
condominium and Anderson 18.
Wing Tai chairman Cheng Wai Keung said yesterday that although home
prices are softening, he expects them to remain mostly stable until
at least 2010.
This is because projects that are being completed this year and next
were originally sold at relatively low prices in 2005 and 2006, so
there is no urgency for buyers of these projects to unload their
units.
'Developers are also quite strong financially, so if they can hold
and allow the orderly release of units, I do not see prices dropping
drastically,' he told reporters and analysts at the release of Wing
Tai's full-year results.
Beyond 2010, however, the situation may change. Projects to be
completed then were launched at 'very high prices' last year, and if
the economy does not improve by then, these expensive apartments may
flood the market while financially strong developers will probably
also weaken, Mr Cheng said.
But he added that while prices have softened, it is not because
Singapore's economic fundamentals have worsened but rather
because 'traders', or speculators, have left the market. 'I maintain
that fundamentals are sound,' he said.
In fact, Mr Cheng said he is prepared to hold out for prices to reach
$4,000 per sq ft (psf) again at Ardmore Park. 'Even at the peak, when
they were talking about $4,000 psf, I still think that was relatively
cheap, compared to values in the world and in Singapore.'
He added that Wing Tai owns two of the three sites to be launched in
the Ardmore Park area. SC Global has the third, The Ardmore. 'We are
the ones who will set the price; if we never lower prices, how can it
lose value?'
For now, Wing Tai has already locked in construction costs for
Ardmore Park and is renting out the units in Anderson 18 rather than
tearing down the building for redevelopment.
In the meantime, the developer may launch some of the other sites in
its land bank this year or next, said Wing Tai's chief operating
officer Tan Hwee Bin.
Belle Vue Residences in Oxley Walk will be launch-ready next month,
while a 99-year leasehold site in Alexandra Road near the Redhill MRT
Station will obtain all the necessary approvals by the year end.
Ms Tan said the group will position the Alexandra Road condo as a mid-
tier project minutes away from Orchard Road, and may bring to it some
of the features it has used in its high-end Draycott8 development.
For the past year, slower home sales have taken their toll on the
performance of the property and retail group.
Wing Tai's fourth-quarter net profit fell 60 per cent to $96.3
million, dragging down full-year net profit 40 per cent to $229.4
million. Revenue more than halved both in the fourth quarter, to
$107.3 million, and in the full year, to $428.2 million.
Earnings per share dropped to 30.11 cents for the year to June 30,
from 53.12 cents the previous year. Net asset value per share slipped
to $2.03 as at June 30, from $2.07 a year ago.
Wing Tai is proposing a dividend of six cents per share for the year,
comprising a first and final dividend of three cents and a special
dividend of three cents.
Regulate law firms to protect clients' money
Aug 27, 2008
Regulate law firms to protect clients' money
I REFER to last Thursday's article "On the run" by He Zongying on the
top 10 corporate fugitives. I read with shame that six of those were
practising lawyers who profess to uphold the law and justice. Unlike
the others, they made off with clients' monies, not their own
company's income or loans. The point I wish to make is that law firms
are entrusted with holding clients' monies, but are there any legal
requirements that they must have a reserve or some insurance as a
guarantee that all monies due to their clients will be duly paid?
In Singapore, all institutions that collect and hold public monies
are regulated and audited, be it banks or charitable organisations.
Do law firms come under any such financial regulations and audit?
Further, in the purchase of property, the seller's law firm holds 4
per cent of the purchase price as stakeholders' money. I understand
that the purpose is partly to prevent frivolous purchases. The 4 per
cent in cash ensures that the buyer is serious to commit to the
purchase and the seller's law firm which has the responsibility to
allocate the sales proceeds accordingly, will have to add this amount
and allocate the full proceeds accordingly to institutions (such as
the CPF, bank mortgage balance) which are owed monies pertaining to
the property.
The practice now is that the 4 per cent of the sale price of the
property is paid to the seller's law firm to hold. Whether it is a
sole proprietorship or a group of partners, nothing can stop the law
firm from just cashing out this money and absconding.
May I suggest that the 4 per cent stakeholder money be presented as a
cashier's order in the name of the seller. A cashier's order serves
the purpose of preventing a frivolous purchase. This cashier's order
will be held by the seller's law firm until completion of the deal
where it is presented to the seller together with other monies and
documents.
In the event that the sale proceeds yield less than 4 per cent of
cash or a negative sum, the seller will bear the cost of the
cancelled cashier's order which is about $5 to $10. The seller's law
firm normally would know about two weeks prior to the completion date
how the sale proceeds would be allocated and thus would inform the
buyer's lawyer to reissue another cashier's order or a cheque to the
proper beneficiary.
Most property deals can be completed in three to four months and the
expiry of the cashier's order is six months. Should deals take longer
than the expiry of the cashier's order, a different approach could be
made such as re-issuing another cashier's order if the first one is
near expiry. This process will see no lawyer holding clients' monies,
at least pertaining to the 4 per cent stakeholder monies.
Conveyancing lawyers are engaged to see that the sale and purchase of
properties is above board. They should not be responsible for holding
large sums which serve only as temptation, and clients have no
safeguards for their money.
Justin Szeto
Regulate law firms to protect clients' money
I REFER to last Thursday's article "On the run" by He Zongying on the
top 10 corporate fugitives. I read with shame that six of those were
practising lawyers who profess to uphold the law and justice. Unlike
the others, they made off with clients' monies, not their own
company's income or loans. The point I wish to make is that law firms
are entrusted with holding clients' monies, but are there any legal
requirements that they must have a reserve or some insurance as a
guarantee that all monies due to their clients will be duly paid?
In Singapore, all institutions that collect and hold public monies
are regulated and audited, be it banks or charitable organisations.
Do law firms come under any such financial regulations and audit?
Further, in the purchase of property, the seller's law firm holds 4
per cent of the purchase price as stakeholders' money. I understand
that the purpose is partly to prevent frivolous purchases. The 4 per
cent in cash ensures that the buyer is serious to commit to the
purchase and the seller's law firm which has the responsibility to
allocate the sales proceeds accordingly, will have to add this amount
and allocate the full proceeds accordingly to institutions (such as
the CPF, bank mortgage balance) which are owed monies pertaining to
the property.
The practice now is that the 4 per cent of the sale price of the
property is paid to the seller's law firm to hold. Whether it is a
sole proprietorship or a group of partners, nothing can stop the law
firm from just cashing out this money and absconding.
May I suggest that the 4 per cent stakeholder money be presented as a
cashier's order in the name of the seller. A cashier's order serves
the purpose of preventing a frivolous purchase. This cashier's order
will be held by the seller's law firm until completion of the deal
where it is presented to the seller together with other monies and
documents.
In the event that the sale proceeds yield less than 4 per cent of
cash or a negative sum, the seller will bear the cost of the
cancelled cashier's order which is about $5 to $10. The seller's law
firm normally would know about two weeks prior to the completion date
how the sale proceeds would be allocated and thus would inform the
buyer's lawyer to reissue another cashier's order or a cheque to the
proper beneficiary.
Most property deals can be completed in three to four months and the
expiry of the cashier's order is six months. Should deals take longer
than the expiry of the cashier's order, a different approach could be
made such as re-issuing another cashier's order if the first one is
near expiry. This process will see no lawyer holding clients' monies,
at least pertaining to the 4 per cent stakeholder monies.
Conveyancing lawyers are engaged to see that the sale and purchase of
properties is above board. They should not be responsible for holding
large sums which serve only as temptation, and clients have no
safeguards for their money.
Justin Szeto
Tuesday, August 26, 2008
Property subsales - who wins and who loses
August 26, 2008
Property subsales - who wins and who loses
For those who sold in the first seven months of this year, close to
97% came out ahead
By KALPANA RASHIWALA
(SINGAPORE) Sentiment in the Singapore property market is now far
from bullish, but data shows that nearly 97 per cent of those who
have sold private apartments and condos in the subsale market in the
first seven months of this year have made profits.
Only 3 per cent incurred losses, an analysis of caveats by Savills
Singapore shows.
For those who turned a profit, the average gain per unit came to
$417,563 or 36.5 per cent. Generally, the longer the holding period,
the bigger the gain.
Subsale deals are seen as a proxy for the level of speculative
activity in the market. On average, those who had bought their units
in 2004 and sold them in the subsale market this year made the
biggest gain, averaging nearly $692,000, or an 84 per cent profit.
They are followed by those who had picked up units in 2005, who
recorded an average gain of about $645,200 or 62 per cent from
selling their homes in the subsale market this year.
In absolute dollar terms, the smallest average gain of around
$175,600 was by those who bought their units this year, reflecting a
holding period of just a few months.
The profit or loss in the calculation is the difference between sale
and purchase prices and does not take into account stamp duty and
other expenses.
'The fact is that longer holding periods allow for larger gains,
shorter holding periods for smaller gains. This is consistent with
the fact that real estate is a long-term investment. Investors with
short exit time frames should look for alternative instruments,' said
Savills Singapore's director of marketing and business development Ku
Swee Yong.
Savills' analysis was based on 1,040 caveats for subsale transactions
from Jan 1 to July 31 this year captured by Urban Redevelopment
Authority's Realis system as at Aug 19. Of these, 821 had previous
caveat records dating back to 2003 and Savills compared the latest
subsale price of each unit with the earlier price paid by the seller
to work out the profit or loss.
Citylights, Varsity Park Condo and The Sail @ Marina Bay had the most
subsales in the first seven months of this year - 63, 47 and 45
respectively. The Sea View and City Square Residences had 30-plus
subsales each. Park Infinia at Wee Nam, The Calrose, Icon and The
Raintree each had 20-odd subsales.
Subsales, often seen as a gauge of speculative activity, refer to
secondary market deals in projects that have yet to receive their
Certificates of Statutory Completion. This may be anywhere from three
to 12 months after the project receives its Temporary Occupation
Permit (TOP).
Market watchers note that many of the projects topping the subsale
chart this year had either received TOP or are close to receiving
TOP. Some of the units that changed hands in the subsale market could
have been purchased on deferred payment schemes from developers in
the past. Typically, such schemes run out when the projects get their
TOP and that is when buyers have to pay the chunk of the purchase
price to developers.
The deferred payment scheme was scrapped in October last year to
discourage speculative buying.
Of the 25 loss cases for subsale deals done this year, sellers of
about half the units had themselves bought theirs in the subsale
market, while the other half had made direct purchases from
developers. For instance, the four units sold in the subsale market
at a loss this year at City Square Residences had all been picked up
in the subsale market last year.Looking ahead, Savills' Mr Ku expects
subsales to maintain at current levels, that is, about 150 units a
month. Those who want to sell now will have to expect lower profits,
he said.
'Whether in good or bad times, there will still be subsale losses
from people being forced to make untimely sales due to corporate
liquidation, bankruptcy, divorce,' Mr Ku added.
In cases where investors are sitting on potential losses, Jones Lang
LaSalle Singapore's head of residential, Jacqueline Wong, said: 'My
advice to my clients, who are usually foreigners, have bought in
prime districts and are well off, would be, 'If you can, hang on. It
will be just a temporary paper loss. Singapore has a lot of things
going for it in the mid term'.'
Another seasoned property consultant said: 'A lot will depend on your
entry price vis-a-vis other owners, especially in a big development.
If a lot of them bought at say $1,000 psf from the developer and you
got your unit later for $1,800 psf in the subsale market from an
earlier buyer, you're in a disadvantageous position. If the market
dives, the earlier buyers could offload their units at much lower
prices than your cost price.
'On the other hand, everybody may be in the same boat. Say, if you've
bought into a small project of 30 units and everyone's bought at
about the same price, and if there's not much competition from
surrounding projects, chances of prices going down substantially may
be lower because everyone's locked in at the same threshold.'
Property subsales - who wins and who loses
For those who sold in the first seven months of this year, close to
97% came out ahead
By KALPANA RASHIWALA
(SINGAPORE) Sentiment in the Singapore property market is now far
from bullish, but data shows that nearly 97 per cent of those who
have sold private apartments and condos in the subsale market in the
first seven months of this year have made profits.
Only 3 per cent incurred losses, an analysis of caveats by Savills
Singapore shows.
For those who turned a profit, the average gain per unit came to
$417,563 or 36.5 per cent. Generally, the longer the holding period,
the bigger the gain.
Subsale deals are seen as a proxy for the level of speculative
activity in the market. On average, those who had bought their units
in 2004 and sold them in the subsale market this year made the
biggest gain, averaging nearly $692,000, or an 84 per cent profit.
They are followed by those who had picked up units in 2005, who
recorded an average gain of about $645,200 or 62 per cent from
selling their homes in the subsale market this year.
In absolute dollar terms, the smallest average gain of around
$175,600 was by those who bought their units this year, reflecting a
holding period of just a few months.
The profit or loss in the calculation is the difference between sale
and purchase prices and does not take into account stamp duty and
other expenses.
'The fact is that longer holding periods allow for larger gains,
shorter holding periods for smaller gains. This is consistent with
the fact that real estate is a long-term investment. Investors with
short exit time frames should look for alternative instruments,' said
Savills Singapore's director of marketing and business development Ku
Swee Yong.
Savills' analysis was based on 1,040 caveats for subsale transactions
from Jan 1 to July 31 this year captured by Urban Redevelopment
Authority's Realis system as at Aug 19. Of these, 821 had previous
caveat records dating back to 2003 and Savills compared the latest
subsale price of each unit with the earlier price paid by the seller
to work out the profit or loss.
Citylights, Varsity Park Condo and The Sail @ Marina Bay had the most
subsales in the first seven months of this year - 63, 47 and 45
respectively. The Sea View and City Square Residences had 30-plus
subsales each. Park Infinia at Wee Nam, The Calrose, Icon and The
Raintree each had 20-odd subsales.
Subsales, often seen as a gauge of speculative activity, refer to
secondary market deals in projects that have yet to receive their
Certificates of Statutory Completion. This may be anywhere from three
to 12 months after the project receives its Temporary Occupation
Permit (TOP).
Market watchers note that many of the projects topping the subsale
chart this year had either received TOP or are close to receiving
TOP. Some of the units that changed hands in the subsale market could
have been purchased on deferred payment schemes from developers in
the past. Typically, such schemes run out when the projects get their
TOP and that is when buyers have to pay the chunk of the purchase
price to developers.
The deferred payment scheme was scrapped in October last year to
discourage speculative buying.
Of the 25 loss cases for subsale deals done this year, sellers of
about half the units had themselves bought theirs in the subsale
market, while the other half had made direct purchases from
developers. For instance, the four units sold in the subsale market
at a loss this year at City Square Residences had all been picked up
in the subsale market last year.Looking ahead, Savills' Mr Ku expects
subsales to maintain at current levels, that is, about 150 units a
month. Those who want to sell now will have to expect lower profits,
he said.
'Whether in good or bad times, there will still be subsale losses
from people being forced to make untimely sales due to corporate
liquidation, bankruptcy, divorce,' Mr Ku added.
In cases where investors are sitting on potential losses, Jones Lang
LaSalle Singapore's head of residential, Jacqueline Wong, said: 'My
advice to my clients, who are usually foreigners, have bought in
prime districts and are well off, would be, 'If you can, hang on. It
will be just a temporary paper loss. Singapore has a lot of things
going for it in the mid term'.'
Another seasoned property consultant said: 'A lot will depend on your
entry price vis-a-vis other owners, especially in a big development.
If a lot of them bought at say $1,000 psf from the developer and you
got your unit later for $1,800 psf in the subsale market from an
earlier buyer, you're in a disadvantageous position. If the market
dives, the earlier buyers could offload their units at much lower
prices than your cost price.
'On the other hand, everybody may be in the same boat. Say, if you've
bought into a small project of 30 units and everyone's bought at
about the same price, and if there's not much competition from
surrounding projects, chances of prices going down substantially may
be lower because everyone's locked in at the same threshold.'
CapitaLand shares slide to 2-year low
August 26, 2008
CapitaLand shares slide to 2-year low
Funds selling down regional property stocks as outlook gets more
downbeat
By VEN SREENIVASAN
(SINGAPORE) The stock of the region's largest listed property group
is taking a sharp knock as funds bail out of regional property stocks
amid an increasing bearish outlook for the sector.
CapitaLand's shares fell 13 cents or 2.9 per cent to $4.32 yesterday -
its lowest level in two years. But what baffled many market watchers
was the heavy selling volumes. Some 21 million stocks changed hands.
'It is not just the selling that is worrying, but the heavy volumes
on the way down,' observed a seasoned dealer. 'This is heavy
institutional selling, and a very bearish signal.'
Meanwhile, CapitaCommercial Trust sank 10 cents or 5.4 per cent to
$1.75 on some 7.3 million units amid concerns that the office rental
market in Singapore was poised for a 30 per cent drop over the next
three years as supply significantly outstrips demand.
The current selldowns follow downgrades by some global houses in
recent weeks.
About 10 days ago, Morgan Stanley cut CapitaLand's 12-month price
target to $4.16, from $5.94, citing weak earnings for the next two
years.
Morgan Stanley noted that CapitaLand's wider diversification strategy
and Asian regional footprint had failed to provide some share price
support on the downside. CapitaLand has significant interests in
Singapore, China, Vietnam and other regional countries. The
investment house's analysts Melissa Bon and Brian Wee said there were
no positive catalysts, and cautioned of a possible absence of new
launches for up to 18 months if the economic slowdown dragged on.
'We are inclined to be less optimistic than CapitaLand's management
who expect the Singapore residential market to remain flat this
year,' the report said.
Meanwhile, UBS said in a report on Friday that it expects office
rentals and capital values to drop as much as 34 per cent in the next
four years.
But given that it is Asia's largest listed property company,
CapitaLand has a relatively large pool of global portfolio investors.
And this makes it more vulnerable to massive selldowns by funds which
are scrambling to cash-up in the face of a global liquidity crunch.
The stock's liquidity - which attracted institutional investors and
helped fuel its bull run last year - has also turned out to be a
double edged sword, contributing to its savage beating now.
The selldowns came despite the fact that CapitaLand will realise a
total portfolio gain of $313 million by injecting four of its Raffles
City assets in China into its 50 per cent owned Raffles City China
Fund. This comprises a $183 million net gain from the dilution of
CapitaLand's interest in the four Raffles City assets, and a $130
million fair value gain for Raffles City Shanghai.
CapitaLand shares slide to 2-year low
Funds selling down regional property stocks as outlook gets more
downbeat
By VEN SREENIVASAN
(SINGAPORE) The stock of the region's largest listed property group
is taking a sharp knock as funds bail out of regional property stocks
amid an increasing bearish outlook for the sector.
CapitaLand's shares fell 13 cents or 2.9 per cent to $4.32 yesterday -
its lowest level in two years. But what baffled many market watchers
was the heavy selling volumes. Some 21 million stocks changed hands.
'It is not just the selling that is worrying, but the heavy volumes
on the way down,' observed a seasoned dealer. 'This is heavy
institutional selling, and a very bearish signal.'
Meanwhile, CapitaCommercial Trust sank 10 cents or 5.4 per cent to
$1.75 on some 7.3 million units amid concerns that the office rental
market in Singapore was poised for a 30 per cent drop over the next
three years as supply significantly outstrips demand.
The current selldowns follow downgrades by some global houses in
recent weeks.
About 10 days ago, Morgan Stanley cut CapitaLand's 12-month price
target to $4.16, from $5.94, citing weak earnings for the next two
years.
Morgan Stanley noted that CapitaLand's wider diversification strategy
and Asian regional footprint had failed to provide some share price
support on the downside. CapitaLand has significant interests in
Singapore, China, Vietnam and other regional countries. The
investment house's analysts Melissa Bon and Brian Wee said there were
no positive catalysts, and cautioned of a possible absence of new
launches for up to 18 months if the economic slowdown dragged on.
'We are inclined to be less optimistic than CapitaLand's management
who expect the Singapore residential market to remain flat this
year,' the report said.
Meanwhile, UBS said in a report on Friday that it expects office
rentals and capital values to drop as much as 34 per cent in the next
four years.
But given that it is Asia's largest listed property company,
CapitaLand has a relatively large pool of global portfolio investors.
And this makes it more vulnerable to massive selldowns by funds which
are scrambling to cash-up in the face of a global liquidity crunch.
The stock's liquidity - which attracted institutional investors and
helped fuel its bull run last year - has also turned out to be a
double edged sword, contributing to its savage beating now.
The selldowns came despite the fact that CapitaLand will realise a
total portfolio gain of $313 million by injecting four of its Raffles
City assets in China into its 50 per cent owned Raffles City China
Fund. This comprises a $183 million net gain from the dilution of
CapitaLand's interest in the four Raffles City assets, and a $130
million fair value gain for Raffles City Shanghai.
Subsale property gains top out at $4.2m
August 26, 2008
Subsale property gains top out at $4.2m
But Cosmopolitan penthouse seller nurses $463,400 loss
By KALPANA RASHIWALA
(SINGAPORE) The biggest profit in absolute dollar terms from a
subsale deal in the first seven months of this year was $4.2 million,
reaped for a 22nd-floor unit at The Grange.
It was offloaded in the subsale market in April for $11 million,
compared with a $6.8 million purchase price in September 2005 paid to
the developer.
In fact, on an average basis too, The Grange has seen the most
profitable subsale deals this year, with the 13 units sold in the
project between Jan 1 and July 31 generating an average profit of
slightly over $2 million per unit.
In percentage terms, the average subsale gain at The Grange worked
out to 52 per cent, according to Savills Singapore, which analysed
caveats for subsale transactions from Jan 1 to July 31 captured by
the Urban Redevelopment Authority's Realis system as at Aug 19.
The biggest subsale loss was $463,400 for a penthouse unit at The
Cosmopolitan at Kim Seng Road. It was sold in April for about $2.3
million, against the $2.8 million purchase price paid in July last
year.
Other projects with sub sale losses included two units at Soleil @
Sinaran, four at City Square Residences, three at Citylights and one
each at One St Michael's, Park Infinia at Wee Nam and Marina Bay
Residences.
Percentage-wise, some of the biggest subsale profits were recorded
for The Sail @ Marina Bay. The seller of a unit on the 49th floor
reaped a 178 per cent return when he disposed of it in May for $1.43
million, compared with the $510,400 he paid to buy the apartment from
the developer in late 2004.
Owners of 14 other units at The Sail also doubled their money or
more, when they sold their properties in the subsale market this
year. However, there was also a unit in the development that chalked
up a $63,000 subsale loss.
Among prime district projects, profitable sub- sales included a 17th
floor unit at St Regis Residences, which yielded a handsome $2.78
million return for its seller in June, after a two- year holding
period. A sub- sale deal at The Orchard Residences also generated a
$1.44 million profit.
Over in the waterfront housing district of Sentosa Cove, four
subsales of The Azure condo resulted in gains of at least $1 million
per unit. One unit, in fact, generated a $3 million profit for a two-
year-plus holding period.
However, the owner of another unit in the 99-year leasehold condo
incurred a $106,000 loss when he sold his unit in the subsale market
in April for about $3.4 million after a 10- month holding period.
Analysts note that, given the current weaker market sentiment,
profits from subsales can be expected to shrink in the days ahead, or
there may be even more loss cases, particularly for those who bought
at the peak of the market in the first half of last year.
Savills Singapore director of marketing and business development Ku
Swee Yong suggests that there is no reason for panic selling if
investors consider that interest rates are still very low.
'So owners who have not lost their jobs can still afford to hold on
to their mortgages,' he said.
Also demand for rental properties should increase by early 2009 as
the Marina Bay Sands resort boosts its employment drive ahead of its
planned opening late next year.
A seasoned developer highlighted the fact that subsale transactions,
whether at a gain or loss, are still taking place, is a good thing.
'There's diversity of different sellers, with varying financial
strengths and abilities to hold, and similarly, there's a diversity
of buyers. There's still liquidity out there. That's a good thing.
'If we didn't have this diversity of behaviour and ability to buy,
sell or hold, we'd have a very uni-dimensional and monolithic market.
'That wouldn't be a good thing because, then, you may have everybody
wanting to sell at the same time (and nobody wanting to buy). Then
the market would grind to a halt,' he said.
Subsale property gains top out at $4.2m
But Cosmopolitan penthouse seller nurses $463,400 loss
By KALPANA RASHIWALA
(SINGAPORE) The biggest profit in absolute dollar terms from a
subsale deal in the first seven months of this year was $4.2 million,
reaped for a 22nd-floor unit at The Grange.
It was offloaded in the subsale market in April for $11 million,
compared with a $6.8 million purchase price in September 2005 paid to
the developer.
In fact, on an average basis too, The Grange has seen the most
profitable subsale deals this year, with the 13 units sold in the
project between Jan 1 and July 31 generating an average profit of
slightly over $2 million per unit.
In percentage terms, the average subsale gain at The Grange worked
out to 52 per cent, according to Savills Singapore, which analysed
caveats for subsale transactions from Jan 1 to July 31 captured by
the Urban Redevelopment Authority's Realis system as at Aug 19.
The biggest subsale loss was $463,400 for a penthouse unit at The
Cosmopolitan at Kim Seng Road. It was sold in April for about $2.3
million, against the $2.8 million purchase price paid in July last
year.
Other projects with sub sale losses included two units at Soleil @
Sinaran, four at City Square Residences, three at Citylights and one
each at One St Michael's, Park Infinia at Wee Nam and Marina Bay
Residences.
Percentage-wise, some of the biggest subsale profits were recorded
for The Sail @ Marina Bay. The seller of a unit on the 49th floor
reaped a 178 per cent return when he disposed of it in May for $1.43
million, compared with the $510,400 he paid to buy the apartment from
the developer in late 2004.
Owners of 14 other units at The Sail also doubled their money or
more, when they sold their properties in the subsale market this
year. However, there was also a unit in the development that chalked
up a $63,000 subsale loss.
Among prime district projects, profitable sub- sales included a 17th
floor unit at St Regis Residences, which yielded a handsome $2.78
million return for its seller in June, after a two- year holding
period. A sub- sale deal at The Orchard Residences also generated a
$1.44 million profit.
Over in the waterfront housing district of Sentosa Cove, four
subsales of The Azure condo resulted in gains of at least $1 million
per unit. One unit, in fact, generated a $3 million profit for a two-
year-plus holding period.
However, the owner of another unit in the 99-year leasehold condo
incurred a $106,000 loss when he sold his unit in the subsale market
in April for about $3.4 million after a 10- month holding period.
Analysts note that, given the current weaker market sentiment,
profits from subsales can be expected to shrink in the days ahead, or
there may be even more loss cases, particularly for those who bought
at the peak of the market in the first half of last year.
Savills Singapore director of marketing and business development Ku
Swee Yong suggests that there is no reason for panic selling if
investors consider that interest rates are still very low.
'So owners who have not lost their jobs can still afford to hold on
to their mortgages,' he said.
Also demand for rental properties should increase by early 2009 as
the Marina Bay Sands resort boosts its employment drive ahead of its
planned opening late next year.
A seasoned developer highlighted the fact that subsale transactions,
whether at a gain or loss, are still taking place, is a good thing.
'There's diversity of different sellers, with varying financial
strengths and abilities to hold, and similarly, there's a diversity
of buyers. There's still liquidity out there. That's a good thing.
'If we didn't have this diversity of behaviour and ability to buy,
sell or hold, we'd have a very uni-dimensional and monolithic market.
'That wouldn't be a good thing because, then, you may have everybody
wanting to sell at the same time (and nobody wanting to buy). Then
the market would grind to a halt,' he said.
Eng Wah sells 4 properties to founder, MD for $100m
August 26, 2008
Eng Wah sells 4 properties to founder, MD for $100m
Sale of assets will facilitate cinema operator's reverse takeover by
Transcu
By CONRAD TAN
ENG Wah Organization has agreed to sell four of its properties to its
founder and controlling shareholder Goh Eng Wah, and his daughter,
managing director Goh Min Yen, for $99.48 million.
The cinema operator and film distributor said yesterday that a search
by property consultants Jones Lang Lasalle for other buyers had been
unsuccessful, likely due to a depressed market environment.
The sale of the four properties to EW.G Pte Ltd, an investment
vehicle owned in equal parts by Mr Goh and Ms Goh, will facilitate
Eng Wah's reverse takeover by Singapore-based Japanese biomedical
firm Transcu first announced last year, Eng Wah said yesterday.
Disposing of the assets is a key condition for the reverse takeover
by Transcu. 'If the properties are not sold, the reverse takeover
will not take place,' said Eng Wah. And if the reverse takeover falls
through, EW.G will not buy the properties, it added.
The property sale is subject to the approval of Eng Wah's
shareholders at a meeting on Sept 10. Both Mr Goh - who has a deemed
interest in 70 per cent of Eng Wah's shares and is also executive
chairman of the company - and Ms Goh will abstain from voting on the
transaction. That means Eng Wah's minority shareholders will have the
final say on whether the sale takes place.
The four properties left in the portfolio that Eng Wah put up for
sale last November are the Jubilee Entertainment Complex in Ang Mo
Kio, Toa Payoh Entertainment Centre, Empress Theatre in Clementi and
the 16th floor of Orchard Towers. A fifth property, the Mandarin
Theatre at Kallang Bahru, was sold in June for $13 million to an
outside party.
The search for buyers has proved controversial. Last week, the
Securities Investors Association of Singapore (SIAS), which
represents retail investors here, called on Eng Wah to be more
transparent in the sale of its properties, asking it to 'ensure that
the sale price is maximised'.
SIAS president David Gerald said at the time: 'In our view, the
company must ensure that its assets are sold at a fair price and not
at a sub-optimal price to the controlling shareholder.'
Yesterday, Eng Wah was keen to stress that the proposed sale price of
the properties to EW.G was based on the value of the assets
determined by property consultants Chesterton International and CB
Richard Ellis.
Eng Wah said Jones Lang Lasalle's efforts to sell the properties
since it was appointed marketing agent last November had resulted in
several offers, but only one property - the Mandarin Theatre - was
sold. This was 'primarily due to what Jones Lang Lasalle believes to
be negative market sentiment and a depressed credit environment',
said Eng Wah.
In a separate announcement, the company said independent director Foo
Kok Swee has retired. Eng Wah has appointed Christopher Martin George
Brown, chief executive of private real estate fund Develica Asia-
Pacific and former executive chairman of Jones Lang LaSalle Asia-
Pacific, as a new independent director.
Eng Wah has recently disposed of other assets, including the former
Crazy Horse cabaret premises and assets, which it sold to club
operator St James for $2.75 million earlier this month, and a
condominium unit in Kuala Lumpur, which was bought by two of Mr Goh's
nephews for RM525,000 (S$220,271) last week.
Eng Wah sells 4 properties to founder, MD for $100m
Sale of assets will facilitate cinema operator's reverse takeover by
Transcu
By CONRAD TAN
ENG Wah Organization has agreed to sell four of its properties to its
founder and controlling shareholder Goh Eng Wah, and his daughter,
managing director Goh Min Yen, for $99.48 million.
The cinema operator and film distributor said yesterday that a search
by property consultants Jones Lang Lasalle for other buyers had been
unsuccessful, likely due to a depressed market environment.
The sale of the four properties to EW.G Pte Ltd, an investment
vehicle owned in equal parts by Mr Goh and Ms Goh, will facilitate
Eng Wah's reverse takeover by Singapore-based Japanese biomedical
firm Transcu first announced last year, Eng Wah said yesterday.
Disposing of the assets is a key condition for the reverse takeover
by Transcu. 'If the properties are not sold, the reverse takeover
will not take place,' said Eng Wah. And if the reverse takeover falls
through, EW.G will not buy the properties, it added.
The property sale is subject to the approval of Eng Wah's
shareholders at a meeting on Sept 10. Both Mr Goh - who has a deemed
interest in 70 per cent of Eng Wah's shares and is also executive
chairman of the company - and Ms Goh will abstain from voting on the
transaction. That means Eng Wah's minority shareholders will have the
final say on whether the sale takes place.
The four properties left in the portfolio that Eng Wah put up for
sale last November are the Jubilee Entertainment Complex in Ang Mo
Kio, Toa Payoh Entertainment Centre, Empress Theatre in Clementi and
the 16th floor of Orchard Towers. A fifth property, the Mandarin
Theatre at Kallang Bahru, was sold in June for $13 million to an
outside party.
The search for buyers has proved controversial. Last week, the
Securities Investors Association of Singapore (SIAS), which
represents retail investors here, called on Eng Wah to be more
transparent in the sale of its properties, asking it to 'ensure that
the sale price is maximised'.
SIAS president David Gerald said at the time: 'In our view, the
company must ensure that its assets are sold at a fair price and not
at a sub-optimal price to the controlling shareholder.'
Yesterday, Eng Wah was keen to stress that the proposed sale price of
the properties to EW.G was based on the value of the assets
determined by property consultants Chesterton International and CB
Richard Ellis.
Eng Wah said Jones Lang Lasalle's efforts to sell the properties
since it was appointed marketing agent last November had resulted in
several offers, but only one property - the Mandarin Theatre - was
sold. This was 'primarily due to what Jones Lang Lasalle believes to
be negative market sentiment and a depressed credit environment',
said Eng Wah.
In a separate announcement, the company said independent director Foo
Kok Swee has retired. Eng Wah has appointed Christopher Martin George
Brown, chief executive of private real estate fund Develica Asia-
Pacific and former executive chairman of Jones Lang LaSalle Asia-
Pacific, as a new independent director.
Eng Wah has recently disposed of other assets, including the former
Crazy Horse cabaret premises and assets, which it sold to club
operator St James for $2.75 million earlier this month, and a
condominium unit in Kuala Lumpur, which was bought by two of Mr Goh's
nephews for RM525,000 (S$220,271) last week.
LAGUNA PARK EN BLOC SPAT
Aug 26, 2008
LAGUNA PARK EN BLOC SPAT
Lost neighbourliness
Residents, suspicious of each other, keep away from estate functions
By Lim Wei Chean
NEIGHBOURLINESS has evaporated at Laguna Park, the East Coast
condominium now split by the prospects of a collective sale.
The turnout at a food festival held in the estate on Aug 17 was bad,
never mind that the residents' association had splurged $10,000 on
getting professionals to plan it.
Not so long ago, the residents used to enjoy events like these, and
bashes during Hari Raya Puasa and Deepavali were popular. Now, the
residents' association is thinking twice about holding a do for next
month's Mooncake Festival.
Long-time resident Michael Tan, 68, who heads the residents'
association, said: 'It's very sad now. People keep to themselves and
are suspicious of each other.'
The 530-unit seaside development made news when cars and mailboxes
belonging to residents opposed to the collective sale of the
development were vandalised. At least eight cars were sprayed with
black paint or a corrosive liquid or scratched; last Wednesday, the
keyholes of letter boxes were glued shut the third time in a month.
The estate needs to get an 80 per cent 'yes' vote by year's end for
the sale to go through. So far, it has got 65 per cent.
A property valuer reckons that an average unit could be worth more
than $2.1 million in a collective sale, and the penthouses, almost $4
million.
A police spokesman said the acts of vandalism are still being
investigated and advised residents to report suspicious characters to
the police.
Security in the estate is contracted to Detec Security Services,
which puts guards on duty between 8am and 8pm, during which they go
on patrol every hour. This leaves the other 12 hours open for acts of
mischief. The guards declined to comment, saying their boss was
abroad.
Among the residents, some say life has been going on as usual, but
most agree the atmosphere has changed.
One mother of two who has had her car and her letterbox vandalised
twice now fears for her safety and that of her family. She now
carries an umbrella around 'just in case, this time, someone decides
to throw acid on me instead of on the car'.
Even residents who are neither for nor against selling feel the heat.
One said he has been getting poison pen letters in his mailbox from
both sides, so 'it's like being caught in a war zone with two
opposing camps'.
Even as the issue has torn neighbours apart, it has rallied those in
the anti-sales camp, who have formed a loose 'neighbourhood watch'
group.
The incidents at Laguna Park have sparked off an outcry and calls for
the Law Ministry to amend the collective-sale rules to deal with
vandalism.
A ministry spokesman said in reply that collective-sale laws were
only the 'framework' for owners to decide whether to go ahead with
the sale, and may not, by themselves 'be able to change the behaviour
of those intent on using illegal coercion'. Such law-breakers can,
however, be dealt with under other legislation dealing with crimes.
For those in the anti-en bloc camp, these words are cold comfort.
Their only hope is that an impending residents' meeting will end with
a 'yes' vote to install closed-circuit TV cameras.
A resident opposed to the collective sale said: 'It used to be
peaceful here. Look what it has become.'
LAGUNA PARK EN BLOC SPAT
Lost neighbourliness
Residents, suspicious of each other, keep away from estate functions
By Lim Wei Chean
NEIGHBOURLINESS has evaporated at Laguna Park, the East Coast
condominium now split by the prospects of a collective sale.
The turnout at a food festival held in the estate on Aug 17 was bad,
never mind that the residents' association had splurged $10,000 on
getting professionals to plan it.
Not so long ago, the residents used to enjoy events like these, and
bashes during Hari Raya Puasa and Deepavali were popular. Now, the
residents' association is thinking twice about holding a do for next
month's Mooncake Festival.
Long-time resident Michael Tan, 68, who heads the residents'
association, said: 'It's very sad now. People keep to themselves and
are suspicious of each other.'
The 530-unit seaside development made news when cars and mailboxes
belonging to residents opposed to the collective sale of the
development were vandalised. At least eight cars were sprayed with
black paint or a corrosive liquid or scratched; last Wednesday, the
keyholes of letter boxes were glued shut the third time in a month.
The estate needs to get an 80 per cent 'yes' vote by year's end for
the sale to go through. So far, it has got 65 per cent.
A property valuer reckons that an average unit could be worth more
than $2.1 million in a collective sale, and the penthouses, almost $4
million.
A police spokesman said the acts of vandalism are still being
investigated and advised residents to report suspicious characters to
the police.
Security in the estate is contracted to Detec Security Services,
which puts guards on duty between 8am and 8pm, during which they go
on patrol every hour. This leaves the other 12 hours open for acts of
mischief. The guards declined to comment, saying their boss was
abroad.
Among the residents, some say life has been going on as usual, but
most agree the atmosphere has changed.
One mother of two who has had her car and her letterbox vandalised
twice now fears for her safety and that of her family. She now
carries an umbrella around 'just in case, this time, someone decides
to throw acid on me instead of on the car'.
Even residents who are neither for nor against selling feel the heat.
One said he has been getting poison pen letters in his mailbox from
both sides, so 'it's like being caught in a war zone with two
opposing camps'.
Even as the issue has torn neighbours apart, it has rallied those in
the anti-sales camp, who have formed a loose 'neighbourhood watch'
group.
The incidents at Laguna Park have sparked off an outcry and calls for
the Law Ministry to amend the collective-sale rules to deal with
vandalism.
A ministry spokesman said in reply that collective-sale laws were
only the 'framework' for owners to decide whether to go ahead with
the sale, and may not, by themselves 'be able to change the behaviour
of those intent on using illegal coercion'. Such law-breakers can,
however, be dealt with under other legislation dealing with crimes.
For those in the anti-en bloc camp, these words are cold comfort.
Their only hope is that an impending residents' meeting will end with
a 'yes' vote to install closed-circuit TV cameras.
A resident opposed to the collective sale said: 'It used to be
peaceful here. Look what it has become.'
$500m makeover for T1
Aug 26, 2008
$500m makeover for T1
In 2011, passengers will enjoy more shops, bigger waiting areas and
modern features
By Maria Almenoar
FIRST, $240 million was poured into upgrading Changi Airport's
Terminal 2 in 2006. Then Terminal 3 had its grand opening this year.
Next up: a $500 million makeover to update the look of the 27-year-
old Terminal 1.
The project, to be completed in 2011, will add another 18,000 sq m of
floor space and gird the facility to face the competition mounted by
newer airports.
Mr Lim Kim Choon, the chief executive of the Civil Aviation Authority
of Singapore (CAAS), said: 'It is timely now to focus on the grand
old dame, T1.' He was speaking yesterday at the signing of the
contract between CAAS and Takenaka Corporation, which will do the
upgrading.
Among the dated features to go are the low ceilings and the mylar
fountain - the one in which water runs down cords. T1's new look will
have higher ceilings and glass walls to give arriving passengers a
view of the landscaping outside.
Fifteen more shops and food and beverage outlets will be added, the
departure and seating areas for waiting passengers will be enlarged
and the public viewing gallery will be designed for better views of
the departure hall and runways.
The improvements will also extend outdoors, where more sheltered
space will be built for departing passengers being dropped off by
taxis and cars.
The renovation works will not enable T1 to handle any more than its
current capacity of 64 million passengers a year, but it is hoped
that the improvements will meet the demands of passengers who are now
better travelled and expect more than just basic functionality, said
Mr Lim.
Ms Angela Gittens, the director-general of Airports Council
International, the global trade association of the airport community,
agreed, saying that new airports are selling themselves to airlines
as high-tech facilities that can process passengers quickly,
so 'existing airports have to compete with that'.
Airports also need to continually fix the wear and tear they are
subjected to from passenger and vehicular traffic, she added.The
industry's current focus on security and energy savings also demands
that airports incorporate new fixtures.
Some of the 51 airlines operating out of T1 like British Airways and
Qantas said they were looking forward to the improvements which will
add to their passengers' flying experience.
But some airlines are concerned about disruptions to operations, such
as having to relocate their check-in counters temporarily. Cathay
Pacific's airport services manager Rolando Delfin is also expecting
noise and dust, due to the works.
CAAS said the renovation will be done in phases and at night, or
during off-peak periods to avoid inconveniencing passengers and the
airlines.
Work has already started on areas that are out of passengers' sight.
$500m makeover for T1
In 2011, passengers will enjoy more shops, bigger waiting areas and
modern features
By Maria Almenoar
FIRST, $240 million was poured into upgrading Changi Airport's
Terminal 2 in 2006. Then Terminal 3 had its grand opening this year.
Next up: a $500 million makeover to update the look of the 27-year-
old Terminal 1.
The project, to be completed in 2011, will add another 18,000 sq m of
floor space and gird the facility to face the competition mounted by
newer airports.
Mr Lim Kim Choon, the chief executive of the Civil Aviation Authority
of Singapore (CAAS), said: 'It is timely now to focus on the grand
old dame, T1.' He was speaking yesterday at the signing of the
contract between CAAS and Takenaka Corporation, which will do the
upgrading.
Among the dated features to go are the low ceilings and the mylar
fountain - the one in which water runs down cords. T1's new look will
have higher ceilings and glass walls to give arriving passengers a
view of the landscaping outside.
Fifteen more shops and food and beverage outlets will be added, the
departure and seating areas for waiting passengers will be enlarged
and the public viewing gallery will be designed for better views of
the departure hall and runways.
The improvements will also extend outdoors, where more sheltered
space will be built for departing passengers being dropped off by
taxis and cars.
The renovation works will not enable T1 to handle any more than its
current capacity of 64 million passengers a year, but it is hoped
that the improvements will meet the demands of passengers who are now
better travelled and expect more than just basic functionality, said
Mr Lim.
Ms Angela Gittens, the director-general of Airports Council
International, the global trade association of the airport community,
agreed, saying that new airports are selling themselves to airlines
as high-tech facilities that can process passengers quickly,
so 'existing airports have to compete with that'.
Airports also need to continually fix the wear and tear they are
subjected to from passenger and vehicular traffic, she added.The
industry's current focus on security and energy savings also demands
that airports incorporate new fixtures.
Some of the 51 airlines operating out of T1 like British Airways and
Qantas said they were looking forward to the improvements which will
add to their passengers' flying experience.
But some airlines are concerned about disruptions to operations, such
as having to relocate their check-in counters temporarily. Cathay
Pacific's airport services manager Rolando Delfin is also expecting
noise and dust, due to the works.
CAAS said the renovation will be done in phases and at night, or
during off-peak periods to avoid inconveniencing passengers and the
airlines.
Work has already started on areas that are out of passengers' sight.
Rental eligibility now a game of cunning
Aug 26, 2008
Rental eligibility now a game of cunning
THE Housing Board has found itself in a quandary over sharply rising
demand for the small stock of rental flats available. The twin
trends - high rents for conventional HDB apartments and more people
conserving assets for fear of prolonged economic uncertainty - that
had been building for a year now are not easing. The HDB can expect
the tight rental situation to persist, or worsen. Ineligible renters
playing the system have added to the long application queues, but the
HDB can be counted upon to weed them out at first sieve. To satisfy
medium-term demand, raising the current stock of some 43,000 rental
flats is an inevitable response.
This the HDB is doing. But the gestation period of about three years
for the additional 7,000 to 8,000 units that will be built gives
little comfort to those applicants who need shelter now, not three
years later. There are an estimated 4,400 of these. These are
families with household income of about $1,500 and no assets.
Divorcees with young children are common among them. The HDB could
consider releasing unsold smaller units from its normal stock for
fixed-term leases to relieve pressure.
This is socially more enlightened than keeping the flats, usually in
less favoured locations, for choosy purchasers to make up their minds
about bidding. Beyond this, means testing which the HDB is
considering is the fairest way of sorting out the scale of need.
Abuse of the low-rent dispensation was not a problem when granny
flats were being built for retirees and rents for normal HDB flats
were about half the current rates. But since the spike of a year ago,
rent seekers have resorted to the deplorable practice of sub-letting
rooms or whole flats, sometimes to ineligible foreigners. Families of
some means, plainly not eligible, have joined the queue, attracted by
rents of as low as $26 a month. They should be forced onto the open
rental market by fail-safe administrative measures.
To disqualify applicants who own assets and whose household income
exceeds the cut-off mark is easy. Trickier is checking the assets of
their children and siblings, which the HDB is considering. The
thinking is that immediate families should take them in. In practice,
this may not always be practical owing to relationship frictions and
family feuds. But it does not weaken the case for wholesale means
testing.
It remains a logical way to ascertain need but the line should be
drawn at checking the assets of applicants' brothers and sisters. If
these siblings are married, with their own grown children and
consequent obligations, they are effectively separate families.
Rental eligibility now a game of cunning
THE Housing Board has found itself in a quandary over sharply rising
demand for the small stock of rental flats available. The twin
trends - high rents for conventional HDB apartments and more people
conserving assets for fear of prolonged economic uncertainty - that
had been building for a year now are not easing. The HDB can expect
the tight rental situation to persist, or worsen. Ineligible renters
playing the system have added to the long application queues, but the
HDB can be counted upon to weed them out at first sieve. To satisfy
medium-term demand, raising the current stock of some 43,000 rental
flats is an inevitable response.
This the HDB is doing. But the gestation period of about three years
for the additional 7,000 to 8,000 units that will be built gives
little comfort to those applicants who need shelter now, not three
years later. There are an estimated 4,400 of these. These are
families with household income of about $1,500 and no assets.
Divorcees with young children are common among them. The HDB could
consider releasing unsold smaller units from its normal stock for
fixed-term leases to relieve pressure.
This is socially more enlightened than keeping the flats, usually in
less favoured locations, for choosy purchasers to make up their minds
about bidding. Beyond this, means testing which the HDB is
considering is the fairest way of sorting out the scale of need.
Abuse of the low-rent dispensation was not a problem when granny
flats were being built for retirees and rents for normal HDB flats
were about half the current rates. But since the spike of a year ago,
rent seekers have resorted to the deplorable practice of sub-letting
rooms or whole flats, sometimes to ineligible foreigners. Families of
some means, plainly not eligible, have joined the queue, attracted by
rents of as low as $26 a month. They should be forced onto the open
rental market by fail-safe administrative measures.
To disqualify applicants who own assets and whose household income
exceeds the cut-off mark is easy. Trickier is checking the assets of
their children and siblings, which the HDB is considering. The
thinking is that immediate families should take them in. In practice,
this may not always be practical owing to relationship frictions and
family feuds. But it does not weaken the case for wholesale means
testing.
It remains a logical way to ascertain need but the line should be
drawn at checking the assets of applicants' brothers and sisters. If
these siblings are married, with their own grown children and
consequent obligations, they are effectively separate families.
Eng Wah to sell theatre assets
Aug 26, 2008
Eng Wah to sell theatre assets
Founding Goh family agrees to pay $99.5m for the properties
By Lee Su Shyan, Assistant Money Editor
CINEMA operator Eng Wah Organization is selling its cinema-related
properties for $99.5 million to the founding Goh family - whose
history of showing movies here dates back to the 1940s.
The sale is part of a $675 million deal that would radically
transform mainboard-listed Eng Wah from a cinema company into a
pharmaceuticals player.
This is being done by a reverse takeover of Eng Wah by Japanese
biotech firm Transcutaneous Technologies inked in May last year - and
part of that deal requires the sale of the cinema assets.
Yesterday, Eng Wah said it was selling Empress Theatre, Toa Payoh
Entertainment Centre, Jubilee Entertainment Complex and the 16th
floor at Orchard Towers for $99.5 million. The buyer is a company
owned by Eng Wah founder Goh Eng Wah and his daughter, Eng Wah's
managing director Goh Min Yen.
A separate film distribution business owned by Eng Wah remains
unsold.
Investors had initially welcomed the reverse takeover, involving a
fresh, exciting business, as proceeds from the asset sale will be
distributed to minority shareholders. Kim Eng Research has put a
target price of $1.19 on the shares.
But investors have become increasingly concerned at the time that was
being taken by Eng Wah to sell the properties.
Last Friday, the Securities Investors Association of Singapore raised
concerns over a potential conflict of interest as the Goh family, the
controlling shareholder, was said to be keen on the assets.
To this, Ms Goh told The Straits Times yesterday: 'It's up to the
minority shareholders to vote as we (the family) are not voting. All
these measures are safeguarding their interests.'
'Our approach has been very transparent. We had engaged international
firm Jones Lang Lasalle (JLL) to handle the sale. Some potential
buyers couldn't get financing because of the credit crunch. We are
sticking our necks out and buying the properties at valuation and
these were prices as of June,' she added.
Ms Goh said: 'Shareholders need to look at the big picture. We are
doing the reverse takeover to unlock the value of the shares. One of
the conditions is that we need to dispose of the properties and the
cinema business. If we don't do that, the deal cannot go through.'
Mr Goh, 85, a well known name in film circles, started showing movies
at the now-defunct Gay World in Geylang back in the 1940s. Eng Wah
was listed on the stock exchange in 1994.
In recent years the cinema industry has become tougher. Eng Wah still
screens films at its own Toa Payoh and Jubilee cineplexes and at
rented premises at Suntec, West Mall and Sun Plaza.
Last year, Eng Wah's share price was languishing at about 35 cents.
This was not helped by Eng Wah's ill-fated $7 million venture of
bringing the Paris-based Crazy Horse risque stage show franchise to
Clarke Quay.
However, last year's pharmaceutical deal left investors hopeful that
Eng Wah had secured a new lease of life.
Eng Wah would issue new shares to the Japanese shareholders who would
pump the business into Eng Wah. The business involves 'transdermal
drug delivery' - where drugs are administered via a skin patch
instead of painful injections.
Once the deal is sealed, the Gohs will own only about 5 per cent of
Eng Wah.
The firm blamed poor market sentiment for the delayed asset sales.JLL
was appointed marketing agent last November for all properties. It
approached global and local buyers but it seems only a buyer could be
found for the Mandarin Theatre at $13 million. The poor response was
due to what JLL 'believes to be negative market sentiment and a
depressed credit environment'.
When asked about the film business, Ms Goh said 'the family has
expressed interest in buying the movie business'.
Eng Wah will get a boost to its earnings per share of about 52.18
cents from this sale. Earlier this month, Eng Wah shareholders
approved a capital distribution of 18.3 cents a share. Yesterday, the
counter rose one cent to 95 cents.
Eng Wah to sell theatre assets
Founding Goh family agrees to pay $99.5m for the properties
By Lee Su Shyan, Assistant Money Editor
CINEMA operator Eng Wah Organization is selling its cinema-related
properties for $99.5 million to the founding Goh family - whose
history of showing movies here dates back to the 1940s.
The sale is part of a $675 million deal that would radically
transform mainboard-listed Eng Wah from a cinema company into a
pharmaceuticals player.
This is being done by a reverse takeover of Eng Wah by Japanese
biotech firm Transcutaneous Technologies inked in May last year - and
part of that deal requires the sale of the cinema assets.
Yesterday, Eng Wah said it was selling Empress Theatre, Toa Payoh
Entertainment Centre, Jubilee Entertainment Complex and the 16th
floor at Orchard Towers for $99.5 million. The buyer is a company
owned by Eng Wah founder Goh Eng Wah and his daughter, Eng Wah's
managing director Goh Min Yen.
A separate film distribution business owned by Eng Wah remains
unsold.
Investors had initially welcomed the reverse takeover, involving a
fresh, exciting business, as proceeds from the asset sale will be
distributed to minority shareholders. Kim Eng Research has put a
target price of $1.19 on the shares.
But investors have become increasingly concerned at the time that was
being taken by Eng Wah to sell the properties.
Last Friday, the Securities Investors Association of Singapore raised
concerns over a potential conflict of interest as the Goh family, the
controlling shareholder, was said to be keen on the assets.
To this, Ms Goh told The Straits Times yesterday: 'It's up to the
minority shareholders to vote as we (the family) are not voting. All
these measures are safeguarding their interests.'
'Our approach has been very transparent. We had engaged international
firm Jones Lang Lasalle (JLL) to handle the sale. Some potential
buyers couldn't get financing because of the credit crunch. We are
sticking our necks out and buying the properties at valuation and
these were prices as of June,' she added.
Ms Goh said: 'Shareholders need to look at the big picture. We are
doing the reverse takeover to unlock the value of the shares. One of
the conditions is that we need to dispose of the properties and the
cinema business. If we don't do that, the deal cannot go through.'
Mr Goh, 85, a well known name in film circles, started showing movies
at the now-defunct Gay World in Geylang back in the 1940s. Eng Wah
was listed on the stock exchange in 1994.
In recent years the cinema industry has become tougher. Eng Wah still
screens films at its own Toa Payoh and Jubilee cineplexes and at
rented premises at Suntec, West Mall and Sun Plaza.
Last year, Eng Wah's share price was languishing at about 35 cents.
This was not helped by Eng Wah's ill-fated $7 million venture of
bringing the Paris-based Crazy Horse risque stage show franchise to
Clarke Quay.
However, last year's pharmaceutical deal left investors hopeful that
Eng Wah had secured a new lease of life.
Eng Wah would issue new shares to the Japanese shareholders who would
pump the business into Eng Wah. The business involves 'transdermal
drug delivery' - where drugs are administered via a skin patch
instead of painful injections.
Once the deal is sealed, the Gohs will own only about 5 per cent of
Eng Wah.
The firm blamed poor market sentiment for the delayed asset sales.JLL
was appointed marketing agent last November for all properties. It
approached global and local buyers but it seems only a buyer could be
found for the Mandarin Theatre at $13 million. The poor response was
due to what JLL 'believes to be negative market sentiment and a
depressed credit environment'.
When asked about the film business, Ms Goh said 'the family has
expressed interest in buying the movie business'.
Eng Wah will get a boost to its earnings per share of about 52.18
cents from this sale. Earlier this month, Eng Wah shareholders
approved a capital distribution of 18.3 cents a share. Yesterday, the
counter rose one cent to 95 cents.
Sharp fall in property prices unlikely
Aug 26, 2008
Sharp fall in property prices unlikely
But there are more people keen to sell than buy now, says DTZ study
By Fiona Chan, Property Reporter
SINGAPORE'S property market presents plenty of buying opportunities
for institutional investors now that it has cooled somewhat,
according to a study by property firm DTZ Debenham Tie Leung.
But buyers waiting for a major price correction will be disappointed.
While the growth in prices may slow, there is unlikely to be a
significant fall in property prices here, said Mr John Stinson, DTZ's
regional director of sales and investments for Asia-Pacific's capital
markets.
'Singapore hasn't had a long boom, unlike some other countries... I
don't think there will be a repricing,' he told reporters yesterday
at a briefing on Money Into Property, DTZ's latest research report
about investing in Asia-Pacific property.
The report is directed at institutional property investors, who can
have a significant impact on the property market, given that they buy
and sell large numbers of properties.
Mr Stinson also said the Government's measures to boost Singapore's
population could prop up demand for property and support prices.
So far, no recent transactions by institutional investors have
reflected a repricing in the market, added Mr Shaun Poh, DTZ's senior
director for investment advisory services and auctions.
'Sellers here have become more realistic and lowered their
expectations,' he added.
But because their expectations were so high previously, this has not
necessarily led to lower transacted prices, he said.
What it has actually resulted in is more investors coming back to
look at properties that may have previously been overpriced but are
now open to negotiation, Mr Poh said.
Currently, there are many more people interested in selling Singapore
properties than in buying them, DTZ's study showed.
It polled investors and found that 12 per cent of them intend to sell
their properties in Singapore soon, while fewer than 5 per cent plan
to buy properties here.
This is creating a situation quite different from the one last year,
when there was no lack of demand for properties but very few
available for sale.
Now, growth funds and some opportunistic investors are pulling out of
the plateauing Singapore market, at a time when owners - including
banks, foreign firms and opportunistic funds - are becoming more
willing to sell.
'There is an increasing number of buying opportunities in gateway
markets such as Singapore, Hong Kong and Tokyo,' said Mr Stinson.
'Six months ago, it wasn't about whether you wanted to buy property,
but whether you were lucky enough to win the race.'
Interest in Singapore properties remains high, however, especially in
the logistics and industrial market. This sector still offers
a 'decent return' as growth has not been as rapid as in other
sectors, said Mr Poh.
Commercial assets in Singapore are also in demand to some extent, but
the residential sector is likely to turn in a weak performance in the
investment market this year, DTZ said in its report.
'Given the cautious economic outlook, investor focus for the rest of
the year would be on occupier fundamentals in the commercial and
industrial sectors,' it added.
These fundamentals include, for example, the quality of the buildings
and their tenants.
While repricing is not an apparent risk in Singapore's property
market, the Asia-Pacific region is facing an average repricing of 25
to 100 basis points, or 0.25 per cent to 1 per cent, Mr Stinson said.
The markets that will be the worst hit include Japan, Australia and
New Zealand.
Sharp fall in property prices unlikely
But there are more people keen to sell than buy now, says DTZ study
By Fiona Chan, Property Reporter
SINGAPORE'S property market presents plenty of buying opportunities
for institutional investors now that it has cooled somewhat,
according to a study by property firm DTZ Debenham Tie Leung.
But buyers waiting for a major price correction will be disappointed.
While the growth in prices may slow, there is unlikely to be a
significant fall in property prices here, said Mr John Stinson, DTZ's
regional director of sales and investments for Asia-Pacific's capital
markets.
'Singapore hasn't had a long boom, unlike some other countries... I
don't think there will be a repricing,' he told reporters yesterday
at a briefing on Money Into Property, DTZ's latest research report
about investing in Asia-Pacific property.
The report is directed at institutional property investors, who can
have a significant impact on the property market, given that they buy
and sell large numbers of properties.
Mr Stinson also said the Government's measures to boost Singapore's
population could prop up demand for property and support prices.
So far, no recent transactions by institutional investors have
reflected a repricing in the market, added Mr Shaun Poh, DTZ's senior
director for investment advisory services and auctions.
'Sellers here have become more realistic and lowered their
expectations,' he added.
But because their expectations were so high previously, this has not
necessarily led to lower transacted prices, he said.
What it has actually resulted in is more investors coming back to
look at properties that may have previously been overpriced but are
now open to negotiation, Mr Poh said.
Currently, there are many more people interested in selling Singapore
properties than in buying them, DTZ's study showed.
It polled investors and found that 12 per cent of them intend to sell
their properties in Singapore soon, while fewer than 5 per cent plan
to buy properties here.
This is creating a situation quite different from the one last year,
when there was no lack of demand for properties but very few
available for sale.
Now, growth funds and some opportunistic investors are pulling out of
the plateauing Singapore market, at a time when owners - including
banks, foreign firms and opportunistic funds - are becoming more
willing to sell.
'There is an increasing number of buying opportunities in gateway
markets such as Singapore, Hong Kong and Tokyo,' said Mr Stinson.
'Six months ago, it wasn't about whether you wanted to buy property,
but whether you were lucky enough to win the race.'
Interest in Singapore properties remains high, however, especially in
the logistics and industrial market. This sector still offers
a 'decent return' as growth has not been as rapid as in other
sectors, said Mr Poh.
Commercial assets in Singapore are also in demand to some extent, but
the residential sector is likely to turn in a weak performance in the
investment market this year, DTZ said in its report.
'Given the cautious economic outlook, investor focus for the rest of
the year would be on occupier fundamentals in the commercial and
industrial sectors,' it added.
These fundamentals include, for example, the quality of the buildings
and their tenants.
While repricing is not an apparent risk in Singapore's property
market, the Asia-Pacific region is facing an average repricing of 25
to 100 basis points, or 0.25 per cent to 1 per cent, Mr Stinson said.
The markets that will be the worst hit include Japan, Australia and
New Zealand.
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