Business Times - 26 Apr 2008
More American expats despite cost challenges
By NISHA RAMCHANDANI
THE rising cost of living, high residential rents and expensive office space are among contentious issues that plague the American expatriate community here.
However, these cons are outweighed by the benefit of being able to participate in global trade. 'Singapore is a good place to do business, especially for our members who are so regionally focused,' Steve Okun, the newly elected chairman of the American Chamber of Commerce (AmCham) Singapore, told BT. AmCham Singapore represents almost 2,700 members from more than 500 companies, and over US$25 billion of investments in Singapore.
Going forward, AmCham will look at broadening its reach to make it even more regionally focused, especially as Asean moves towards integration.
A prime opportunity to do this will be in 2009, when Singapore hosts the Asia-Pacific Council of American Chambers of Commerce (APCAC) meeting in March. It will be attended by local and American government officials, AmCham leaders and representatives of multinational companies and Asian small and medium-sized enterprises.
About 15,000 American expats live in Singapore. And the number has been rising despite a 2006 tax law change in the US that significantly increased the burden on Americans working overseas. APCAC, with other member AmChams, is lobbying to change the taxation, which has been labelled unfair.
'The number of Americans in Singapore has increased 25 per cent in the past two years,' said Mr Okun, raising the possibility that the tax change could have deterred even more Americans from moving overseas.
Another major problem for American expats is the limited number of places at international schools here, which has resulted in waiting lists, employers having to pay to procure 'enhanced placement rights' and even examples of 'key employees' being unable to relocate to Singapore because their children could not get a place in school.
Earlier this week, AmCham announced a new committee to address the education problem and will liaise with the government, foreign schools and AmCham members. This way, 'decision makers can make more informed decisions', said Mr Okun.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Sunday, April 27, 2008
URA decides not to award Ten Mile Junction site
Business Times - 26 Apr 2008
URA decides not to award Ten Mile Junction site
Top bid of $61m, or $162 psf ppr, deemed too low
THE Urban Redevelopment Authority (URA) yesterday said that it has rejected the bid by Peak Green for a residential site at Choa Chu Kang/ Woodlands Road as the price offered was too low.
Peak Green's offer was $61 million, or just over $162.40 per square foot per plot ratio (psf ppr).
It was the higher of two bids which the 99-year leasehold site attracted. The only other bid was from Sim Lian Land which offered $45.68 million, or $121.60 psf ppr.
Peak Green is understood to be linked to Kheng Leong, the privately-owned property group controlled by the family of banker Wee Cho Yaw.
The tender for the Choa Chu Kang/ Woodlands Road site was launched last December and closed on April 3 this year.
At the time, estimates by consultants pegged the value of the site, on which the state-owned Ten Mile Junction currently sits, at between $200 psf ppr and $250 psf ppr.
The 15,645 sq metre (168,403 sq ft) site has a residential potential gross floor area of 254,394 sq ft, which can house between 200 and 240 flats or serviced apartments.
The existing commercial gross floor area is 121,191 sq ft.
Consultants had been divided on whether the URA would award the site but at least one noted that the bid price was one of the lowest in years.
The last time land tender bids of below $200 psf ppr were submitted was between 2000 and 2002.
Separately, URA said yesterday that it has awarded a transitional office site at the Scotts Road/ Anthony Road area to UOB Kay Hian Trading which submitted the highest bid of $34 million, or $243 psf.
The tender was launched on Feb 28 and closed on Thursday. The 8,683 sq metre site was offered for sale on a 15-year lease.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
URA decides not to award Ten Mile Junction site
Top bid of $61m, or $162 psf ppr, deemed too low
THE Urban Redevelopment Authority (URA) yesterday said that it has rejected the bid by Peak Green for a residential site at Choa Chu Kang/ Woodlands Road as the price offered was too low.
Peak Green's offer was $61 million, or just over $162.40 per square foot per plot ratio (psf ppr).
It was the higher of two bids which the 99-year leasehold site attracted. The only other bid was from Sim Lian Land which offered $45.68 million, or $121.60 psf ppr.
Peak Green is understood to be linked to Kheng Leong, the privately-owned property group controlled by the family of banker Wee Cho Yaw.
The tender for the Choa Chu Kang/ Woodlands Road site was launched last December and closed on April 3 this year.
At the time, estimates by consultants pegged the value of the site, on which the state-owned Ten Mile Junction currently sits, at between $200 psf ppr and $250 psf ppr.
The 15,645 sq metre (168,403 sq ft) site has a residential potential gross floor area of 254,394 sq ft, which can house between 200 and 240 flats or serviced apartments.
The existing commercial gross floor area is 121,191 sq ft.
Consultants had been divided on whether the URA would award the site but at least one noted that the bid price was one of the lowest in years.
The last time land tender bids of below $200 psf ppr were submitted was between 2000 and 2002.
Separately, URA said yesterday that it has awarded a transitional office site at the Scotts Road/ Anthony Road area to UOB Kay Hian Trading which submitted the highest bid of $34 million, or $243 psf.
The tender was launched on Feb 28 and closed on Thursday. The 8,683 sq metre site was offered for sale on a 15-year lease.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Market turmoil expected to hit developers this year
Business Times - 26 Apr 2008
Market turmoil expected to hit developers this year
SINGAPORE'S top two developers are expected to report strong core earnings from apartment sales thanks to a three-year property boom, but slower sales since late last year will hit full-year results in 2008.
Private home prices in the city-state jumped 31 per cent in 2007 for the largest increase in eight years, but growth slowed for a second consecutive quarter in January-March as volumes slumped to the lowest since the Sars epidemic in 2003.
Government moves to cool the market, by ending a scheme that allowed delayed payments, coupled with the impact of a global economic slowdown, are expected to hit top developers CapitaLand and City Developments.
This week, Singapore's third-biggest developer Keppel Land by market value, reported a 3.5 per cent fall in quarterly net profit as new property launches were hurt by the US sub-prime mortgage crisis.
'Volumes have dwindled down to a trickle as the halt of the deferred payment scheme coincided with the sub-prime issue,' said Kim Eng property analyst Wilson Liew, who has cut annual forecasts for Singapore developers by 15-18 percent to reflect lower sales.
For the first quarter, CapitaLand, South-east Asia's largest developer by market value, is expected to report a 59 per cent drop in net profit in the absence of divestment and revaluation gains, analysts said.
Divestment gains, coupled with the sale of an office building and the sale of units in its Ascott Residence Trust, had lifted results five-fold in the first quarter of 2007.
'CapitaLand will probably continue to book some revaluation gains this year, but most of the increments would already have been booked in 2007,' Mr Liew said.
CapitaLand's aggressive moves to grow in overseas markets such as China and India are expected to help it weather a slowdown in Singapore's property sector. Overseas operations contributed 40 per cent to CapitaLand's profits in 2007.
City Developments, Singapore's second-biggest developer, is expected to report a 63 per cent jump in first-quarter net profit, boosted by strong sales of its luxury apartments in the last two years.
'CityDev is best poised to ride out the current downturn in the property sector and will be a key mover upon the first signs of a market recovery,' said DBS Vickers analyst Lock Mun Yee, adding that the developer had a large landbank and deep pockets to delay launches until conditions improved. -- Reuters
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Market turmoil expected to hit developers this year
SINGAPORE'S top two developers are expected to report strong core earnings from apartment sales thanks to a three-year property boom, but slower sales since late last year will hit full-year results in 2008.
Private home prices in the city-state jumped 31 per cent in 2007 for the largest increase in eight years, but growth slowed for a second consecutive quarter in January-March as volumes slumped to the lowest since the Sars epidemic in 2003.
Government moves to cool the market, by ending a scheme that allowed delayed payments, coupled with the impact of a global economic slowdown, are expected to hit top developers CapitaLand and City Developments.
This week, Singapore's third-biggest developer Keppel Land by market value, reported a 3.5 per cent fall in quarterly net profit as new property launches were hurt by the US sub-prime mortgage crisis.
'Volumes have dwindled down to a trickle as the halt of the deferred payment scheme coincided with the sub-prime issue,' said Kim Eng property analyst Wilson Liew, who has cut annual forecasts for Singapore developers by 15-18 percent to reflect lower sales.
For the first quarter, CapitaLand, South-east Asia's largest developer by market value, is expected to report a 59 per cent drop in net profit in the absence of divestment and revaluation gains, analysts said.
Divestment gains, coupled with the sale of an office building and the sale of units in its Ascott Residence Trust, had lifted results five-fold in the first quarter of 2007.
'CapitaLand will probably continue to book some revaluation gains this year, but most of the increments would already have been booked in 2007,' Mr Liew said.
CapitaLand's aggressive moves to grow in overseas markets such as China and India are expected to help it weather a slowdown in Singapore's property sector. Overseas operations contributed 40 per cent to CapitaLand's profits in 2007.
City Developments, Singapore's second-biggest developer, is expected to report a 63 per cent jump in first-quarter net profit, boosted by strong sales of its luxury apartments in the last two years.
'CityDev is best poised to ride out the current downturn in the property sector and will be a key mover upon the first signs of a market recovery,' said DBS Vickers analyst Lock Mun Yee, adding that the developer had a large landbank and deep pockets to delay launches until conditions improved. -- Reuters
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Developers hold off launches in quiet market
April 26, 2008
Developers hold off launches in quiet market
Number of private flats that have not been launched hits three-year high
By Joyce Teo
DEVELOPERS are so gun-shy of the quiet property market that they are continuing to hold off launching units, creating fears of a supply glut and possible price slump.
The pool of unsold, uncompleted private flats that can be launched for immediate sale rose by more than 3,000 units in the first quarter of this year.
This brings the number of such units to 10,239, a three-year high, according to Urban Redevelopment Authority figures released yesterday.
Of the 10,239 unlaunched flats, 4,824 units were in the core central region, which includes districts 9, 10 and 11. These are areas with high-end properties - the very sort facing lacklustre demand now.
Things are even worse in the rest of the central region, where the number of unlaunched units rose by 77 per cent to 2,934 in the first three months.
High-end projects that have not been launched include Marina Bay Suites, Sentosa Quayside and Nassim Park Residences.
CBRE Research expects more suburban launches this quarter as developers focus on mass market projects.
Developers on the whole remain wary of new launches, said Dr Chua Yang Liang, Jones Lang LaSalle's head of research for South-east Asia.
But there was significant growth in suburban areas, where 813 units - or 60.5 per cent of total launches - were released in the first quarter. Yet demand was weak.
'This could result in a supply overhang that may encourage a more conservative approach by developers in the next quarter,' said Dr Chua.
The industry uses launches to sell units to generate cash flow. Big developers have the resources to hold on for years if the market is flat, but smaller firms may be under pressure to sell at lower prices.
Mr Nicholas Mak, Knight Frank's director of research and consultancy, said that if sales volume remains thin, more small developers will likely cut prices of their projects to improve cash flow, but the impact of their action may be lost on the market because of their size.
But big-name developers able to launch units may not do so until the United States sub-prime crisis eases, said Mr Ku Swee Yong from Savills Singapore.
Major developers such as Wheelock Properties, Far East Organization, City Developments and Keppel Land have, in the past, been willing to hold back their launches for several years, he added.
Take Far East. It topped up the lease of its 99-year leasehold property, Orchard Scotts, while it delayed the launch several years ago.
While the quarter was flat, there was naturally some sales activity. Developers sold 762 new homes in the first quarter, but that was one of the smallest numbers in 12 years.
By the end of the first quarter, there were 2,526 flats that had been launched but remained unsold. These could include units launched several months ago.
In the pipeline are another 29,920 units that have yet to obtain a sales licence
The vacancy rate of private homes has also been rising steadily since the second quarter of last year, when it was at a low of 4.9 per cent. It hit 6.3 per cent in the first quarter.
Developers sell about 8,000 homes a year. If their inventory of unsold private homes exceeds 17,000, it could indicate a supply glut, said Mr Mak.
We are not anywhere near that point, he added. But it is now a stand-off. Buyers are waiting for prices to fall while sellers are waiting for buyers to return.
But Mr Ku said that unless developers flood the market, which they are not expected to, the significant increase in stock is not a real concern.
joyceteo@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Developers hold off launches in quiet market
Number of private flats that have not been launched hits three-year high
By Joyce Teo
DEVELOPERS are so gun-shy of the quiet property market that they are continuing to hold off launching units, creating fears of a supply glut and possible price slump.
The pool of unsold, uncompleted private flats that can be launched for immediate sale rose by more than 3,000 units in the first quarter of this year.
This brings the number of such units to 10,239, a three-year high, according to Urban Redevelopment Authority figures released yesterday.
Of the 10,239 unlaunched flats, 4,824 units were in the core central region, which includes districts 9, 10 and 11. These are areas with high-end properties - the very sort facing lacklustre demand now.
Things are even worse in the rest of the central region, where the number of unlaunched units rose by 77 per cent to 2,934 in the first three months.
High-end projects that have not been launched include Marina Bay Suites, Sentosa Quayside and Nassim Park Residences.
CBRE Research expects more suburban launches this quarter as developers focus on mass market projects.
Developers on the whole remain wary of new launches, said Dr Chua Yang Liang, Jones Lang LaSalle's head of research for South-east Asia.
But there was significant growth in suburban areas, where 813 units - or 60.5 per cent of total launches - were released in the first quarter. Yet demand was weak.
'This could result in a supply overhang that may encourage a more conservative approach by developers in the next quarter,' said Dr Chua.
The industry uses launches to sell units to generate cash flow. Big developers have the resources to hold on for years if the market is flat, but smaller firms may be under pressure to sell at lower prices.
Mr Nicholas Mak, Knight Frank's director of research and consultancy, said that if sales volume remains thin, more small developers will likely cut prices of their projects to improve cash flow, but the impact of their action may be lost on the market because of their size.
But big-name developers able to launch units may not do so until the United States sub-prime crisis eases, said Mr Ku Swee Yong from Savills Singapore.
Major developers such as Wheelock Properties, Far East Organization, City Developments and Keppel Land have, in the past, been willing to hold back their launches for several years, he added.
Take Far East. It topped up the lease of its 99-year leasehold property, Orchard Scotts, while it delayed the launch several years ago.
While the quarter was flat, there was naturally some sales activity. Developers sold 762 new homes in the first quarter, but that was one of the smallest numbers in 12 years.
By the end of the first quarter, there were 2,526 flats that had been launched but remained unsold. These could include units launched several months ago.
In the pipeline are another 29,920 units that have yet to obtain a sales licence
The vacancy rate of private homes has also been rising steadily since the second quarter of last year, when it was at a low of 4.9 per cent. It hit 6.3 per cent in the first quarter.
Developers sell about 8,000 homes a year. If their inventory of unsold private homes exceeds 17,000, it could indicate a supply glut, said Mr Mak.
We are not anywhere near that point, he added. But it is now a stand-off. Buyers are waiting for prices to fall while sellers are waiting for buyers to return.
But Mr Ku said that unless developers flood the market, which they are not expected to, the significant increase in stock is not a real concern.
joyceteo@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Major remaking of Collyer Quay
April 26, 2008
Major remaking of Collyer Quay
Waterfront area around Marina Bay to be transformed over next few years
By Cara Van Miriah
TALL wooden hoardings now block off both ends of the once-bustling thoroughfare of Change Alley.
The moneychangers after whom it was named are long gone. All is eerily quiet at the glass-framed bridge linking Collyer Quay and Raffles Place.
However, the 32-year-old landmark will be reborn in 2010 as a shopping arcade with 12 retail shops, as part of a multimillion-dollar makeover now taking place at historic Collyer Quay.
It's just one of many changes in the waterfront area of Marina Bay that are set to create a buzz.
The eight-year-old One Fullerton, a three-storey entertainment complex occupying a prime spot along the quay, will be relaunched in August with four new eateries.
Business owners there are racing to open new restaurants and bars in time to cash in on the three-day Formula One SingTel Singapore Grand Prix that is expected to draw 240,000 spectators in September.
The new eateries include Forlino, a 5,000 sq ft traditional Italian restaurant to be helmed by Michelin-star chef Osvaldo Forlino from Italy. It is run by Mr Beppe de Vito, who owns the Il Lido Italian restaurant at Sentosa Golf Club.
Hotelier Loh Lik Peng, who owns the hip New Majestic and 1929 hotels, will open an upscale 80-seat Cantonese restaurant on the ground floor.
Even the space under the Esplanade Bridge next to One Fullerton has been transformed. A $500,000 Spanish-themed bar, The Tapas Tree, which can seat 120 people, will open there.
These will add to One Fullerton's current crop of 10 food and office tenants, some of which are undergoing renovations.
The changes come as the entire Fullerton strip waterfront area gears up to cater to F1 crowds, office workers in the vicinity, and the tourist throngs expected to be drawn to the rejuvenated Marina Bay, once it is completed.
Next to One Fullerton, the newly refurbished Clifford Pier will reopen with a restaurant and bar by September.
Both One Fullerton and Clifford Pier are part of an area being transformed by developer Sino Group into a waterfront development called The Fullerton Heritage. It will feature a new 98-room Fullerton Bay Hotel and a dining zone in the old double-storey Customs House, both of which will open next year.
And in 2010, diners can look forward to a rooftop restaurant overlooking Marina Bay at the new 50, Collyer Quay office building on the site of the former Overseas Union House.
The 18-storey block is being developed at a cost of $257 million by Clifford Development, a wholly owned subsidiary of Overseas Union Enterprise.
Next to it, the Change Alley Aerial Plaza Tower, a 39m-tall tower that once housed the popular Red Lantern Restaurant, will be upgraded from September. In 2010, it will reopen with two Chinese eateries on the fourth and fifth levels.
Urban Redevelopment Authority director for urban planning and design Fun Siew Leng says the developments, together with international events such as the F1 and Singapore Biennale 2008, will contribute to its vision of Marina Bay as an exciting and vibrant waterfront destination.
Diners such as administration manager Celeste Lim, 27, cannot wait for the revamped Collyer Quay. 'With the new eateries and bars, it will be the next hot spot. Also, the view at the waterfront will be spectacular, as it overlooks the Singapore Flyer and upcoming Marina Sands integrated resort.'
caravm@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Major remaking of Collyer Quay
Waterfront area around Marina Bay to be transformed over next few years
By Cara Van Miriah
TALL wooden hoardings now block off both ends of the once-bustling thoroughfare of Change Alley.
The moneychangers after whom it was named are long gone. All is eerily quiet at the glass-framed bridge linking Collyer Quay and Raffles Place.
However, the 32-year-old landmark will be reborn in 2010 as a shopping arcade with 12 retail shops, as part of a multimillion-dollar makeover now taking place at historic Collyer Quay.
It's just one of many changes in the waterfront area of Marina Bay that are set to create a buzz.
The eight-year-old One Fullerton, a three-storey entertainment complex occupying a prime spot along the quay, will be relaunched in August with four new eateries.
Business owners there are racing to open new restaurants and bars in time to cash in on the three-day Formula One SingTel Singapore Grand Prix that is expected to draw 240,000 spectators in September.
The new eateries include Forlino, a 5,000 sq ft traditional Italian restaurant to be helmed by Michelin-star chef Osvaldo Forlino from Italy. It is run by Mr Beppe de Vito, who owns the Il Lido Italian restaurant at Sentosa Golf Club.
Hotelier Loh Lik Peng, who owns the hip New Majestic and 1929 hotels, will open an upscale 80-seat Cantonese restaurant on the ground floor.
Even the space under the Esplanade Bridge next to One Fullerton has been transformed. A $500,000 Spanish-themed bar, The Tapas Tree, which can seat 120 people, will open there.
These will add to One Fullerton's current crop of 10 food and office tenants, some of which are undergoing renovations.
The changes come as the entire Fullerton strip waterfront area gears up to cater to F1 crowds, office workers in the vicinity, and the tourist throngs expected to be drawn to the rejuvenated Marina Bay, once it is completed.
Next to One Fullerton, the newly refurbished Clifford Pier will reopen with a restaurant and bar by September.
Both One Fullerton and Clifford Pier are part of an area being transformed by developer Sino Group into a waterfront development called The Fullerton Heritage. It will feature a new 98-room Fullerton Bay Hotel and a dining zone in the old double-storey Customs House, both of which will open next year.
And in 2010, diners can look forward to a rooftop restaurant overlooking Marina Bay at the new 50, Collyer Quay office building on the site of the former Overseas Union House.
The 18-storey block is being developed at a cost of $257 million by Clifford Development, a wholly owned subsidiary of Overseas Union Enterprise.
Next to it, the Change Alley Aerial Plaza Tower, a 39m-tall tower that once housed the popular Red Lantern Restaurant, will be upgraded from September. In 2010, it will reopen with two Chinese eateries on the fourth and fifth levels.
Urban Redevelopment Authority director for urban planning and design Fun Siew Leng says the developments, together with international events such as the F1 and Singapore Biennale 2008, will contribute to its vision of Marina Bay as an exciting and vibrant waterfront destination.
Diners such as administration manager Celeste Lim, 27, cannot wait for the revamped Collyer Quay. 'With the new eateries and bars, it will be the next hot spot. Also, the view at the waterfront will be spectacular, as it overlooks the Singapore Flyer and upcoming Marina Sands integrated resort.'
caravm@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Subscribe to:
Posts (Atom)
