July 5, 2008
One transparent valuation for property market price, please
MS JANET Han, Secretariat, Singapore Institute of Surveyors & Valuers, defined very clearly what constitutes a property's fair market value. Can Ms Han please explain why, when bankers in Singapore quote an independent valuation (based on a professional independent valuer's opinion, presumably a member of the SISV) for a resale property for mortgage or re-mortgage purposes, the valuation is always at least 25 per cent lower (in some cases, 40 per cent) than recent actual sale value, yet the same bankers are always willing to accept a new (primary but pre-TOP) sale price as fair market valuation.
Contrary to Ms Han's assurance that market price is set by the market, in the case of 'banker's' valuation, the practice of always giving conservative valuation for mortgage purposes is allowing valuers to effectively set market prices with some unexpected consequences:
>>Loan ratio offered by banks is not the 80 per cent of market price but effectively 80 per cent of 75 per cent or 60 per cent of market price.
>>a property's collateral value is artificially diminished.
I suggest that independent valuers should only have one transparent valuation for market price (value based on their professional expertise), and let the bank decide how much risk and buffer they need to set the loan ratio accordingly.
In the UK, Australia, NZ, etc, it is common practice for the buyer to pay for specific valuation by independent valuers (acceptable to the bank), and it is up to the bank to set loan per cent ratio accordingly based on the bank's perception of risk, taking into account the buyer's financial position, the bank's loan quota, etc.
I believe that one market valuation will open up new opportunities for members of SISV and, more importantly, make the valuation more reliable.
James Lee
Sunday, July 6, 2008
Thursday, July 3, 2008
Hi-tech rents, occupancy rates up
Business Times - 03 Jul 2008
Hi-tech rents, occupancy rates up
Insufficient and expensive offices drive tenants to business parks, leading to 6.8% rise q-o-q
By EMILYN YAP
RENTS and occupancy rates for hi-tech and business park space were lifted in the second quarter of this year by spillover demand for office space, property consultants say. And rents for factories and warehouses have edged up too.
According to CB Richard Ellis (CBRE), the average island-wide hi-tech monthly rent rose 6.8 per cent quarter-on-quarter to $3.15 per sq ft (psf) in Q2. Year-on-year, the increase was 34 per cent.
Insufficient and increasingly expensive office space is driving tenants to hi-tech space or business parks, CBRE said in a statement yesterday.
Jones Lang LaSalle (JLL) also says that companies are relocating backroom operations to hi-tech space. Its latest figures show that the average island-wide hi-tech rent rose 2.4 per cent quarter-on-quarter to $4.25 psf per month in Q2. Compared with a year earlier, the increase was 63.5 per cent.
While figures from both property consultants indicate rising rents for hi-tech space, the degree of increase differs.
'The disparity is a result of differences in the basket of properties that research houses use to track the market,' said JLL's head of research (South-east Asia) Chua Yang Liang. 'This difference is more pronounced in periods when segments of the market respond differently to external stimulus.'
CBRE says that for business parks, the average occupancy rate was 88 per cent at end-March and could have exceeded 90 per cent by the end of Q2. This would be a new peak.
The firm's director of industrial and logistics services, Bernard Goh, says that rents at business parks also rose in Q2.
More business park space will be coming on stream. According to CBRE, Biopolis Phase III will be completed in Q4 2009. And JTC Corporation launched a tender for Plot 61 in Changi Business Park last month.
For factory space, the average monthly rent for a ground-floor unit rose 3.3 per cent to $1.55 psf in Q2, says CBRE.
The average capital value of ground-floor units in 60-year leasehold strata-titled factories edged up about 3 per cent quarter-on-quarter to $302 psf.
Ground-floor units in warehouses registered a 3.3 per cent increase in average monthly rent to $1.55 psf in Q2.
Rising raw material costs, a stronger Singapore dollar and weakening demand for exports have made manufacturers cautious about their outlook, dampening demand for factories and warehouses, says CBRE.
'However, the government has reiterated that the manufacturing sector will remain important to Singapore's economy,' it says. 'As such, manufacturers are still encouraged to set up their facilities on the island, and demand for industrial space is expected to remain healthy.'
CBRE points out that recently there have been few purchases by industrial REITs, as funding availability has dropped. According to Mr Goh: 'The limited credit supply is likely to continue to curtail the ability of the REIT players to expand their respective portfolios, but on the whole, industrial properties continue to remain an attractive asset class for institutional investors.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Hi-tech rents, occupancy rates up
Insufficient and expensive offices drive tenants to business parks, leading to 6.8% rise q-o-q
By EMILYN YAP
RENTS and occupancy rates for hi-tech and business park space were lifted in the second quarter of this year by spillover demand for office space, property consultants say. And rents for factories and warehouses have edged up too.
According to CB Richard Ellis (CBRE), the average island-wide hi-tech monthly rent rose 6.8 per cent quarter-on-quarter to $3.15 per sq ft (psf) in Q2. Year-on-year, the increase was 34 per cent.
Insufficient and increasingly expensive office space is driving tenants to hi-tech space or business parks, CBRE said in a statement yesterday.
Jones Lang LaSalle (JLL) also says that companies are relocating backroom operations to hi-tech space. Its latest figures show that the average island-wide hi-tech rent rose 2.4 per cent quarter-on-quarter to $4.25 psf per month in Q2. Compared with a year earlier, the increase was 63.5 per cent.
While figures from both property consultants indicate rising rents for hi-tech space, the degree of increase differs.
'The disparity is a result of differences in the basket of properties that research houses use to track the market,' said JLL's head of research (South-east Asia) Chua Yang Liang. 'This difference is more pronounced in periods when segments of the market respond differently to external stimulus.'
CBRE says that for business parks, the average occupancy rate was 88 per cent at end-March and could have exceeded 90 per cent by the end of Q2. This would be a new peak.
The firm's director of industrial and logistics services, Bernard Goh, says that rents at business parks also rose in Q2.
More business park space will be coming on stream. According to CBRE, Biopolis Phase III will be completed in Q4 2009. And JTC Corporation launched a tender for Plot 61 in Changi Business Park last month.
For factory space, the average monthly rent for a ground-floor unit rose 3.3 per cent to $1.55 psf in Q2, says CBRE.
The average capital value of ground-floor units in 60-year leasehold strata-titled factories edged up about 3 per cent quarter-on-quarter to $302 psf.
Ground-floor units in warehouses registered a 3.3 per cent increase in average monthly rent to $1.55 psf in Q2.
Rising raw material costs, a stronger Singapore dollar and weakening demand for exports have made manufacturers cautious about their outlook, dampening demand for factories and warehouses, says CBRE.
'However, the government has reiterated that the manufacturing sector will remain important to Singapore's economy,' it says. 'As such, manufacturers are still encouraged to set up their facilities on the island, and demand for industrial space is expected to remain healthy.'
CBRE points out that recently there have been few purchases by industrial REITs, as funding availability has dropped. According to Mr Goh: 'The limited credit supply is likely to continue to curtail the ability of the REIT players to expand their respective portfolios, but on the whole, industrial properties continue to remain an attractive asset class for institutional investors.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Property developer gets women focus group to help design mixed-use centre
Business Times - 03 Jul 2008
It pays to ask the women
Property developer gets women focus group to help design mixed-use centre
IN designing shopping centres and mixed-use properties, Trademark Property Co of Fort Worth, Texas, used to do what many developers do: put together teams of professionals like architects, designers and building consultants; send out surveys; and hold community meetings. But in 2005, when it began planning a large mixed-use centre, Watters Creek, for a 21 hectare site in Allen, near Dallas, it decided to consult a group it had never called on before: women.
CEO Terry Montesi first hired two female retail consultants: Claudia A Sagan and J'Amy Owens. But Trademark also invited two dozen women from the Allen area to pick apart its plans for the centre. They included Kirsten Fair, a stay-at-home mother of two, and Debbie Stout, a City Council member, who runs a company that sells business forms.
The women weighed in on dozens of features, like the centre's layout, landscaping, parking options, pedestrian walkways and outdoor art. The developers 'asked us about every detail, and then they listened', Ms Stout said recently. At Watters Creek, Trademark Property discovered that some of the reaction from its women's focus groups challenged conventional retailing wisdom.
Like many retail developers, Trademark Property was used to installing tall, often ornate, brick or stone buildings, as well as sidewalks, at developments like Market Street, a mixed- used centre it opened in Woodlands, near Houston, in 2004. The core of that mixed-used centre was intended to have a classic Main Street look.
The Watters Creek centre, however, was to be part of a 202 ha planned community whose master plan called for significant green space as part of its environment-friendly design.
The women also wanted a village look and feel, with buildings of various sizes, colours and textures that followed the rolling topography of the area, rather than sitting flat.
The first phase of Watters Creek, which is expected to cover 1.15 million square feet eventually, opened in May. So far, Trademark has studded it with buildings that act mostly as a backdrop to a parklike area with two stone bridges, a pond, a creek, a 10-metre-tall community fireplace, climbable sculptures, and 10 restaurants that have outdoor seating with views of the pond, creek or village green.
The women are delighted\. \-- NYT
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
It pays to ask the women
Property developer gets women focus group to help design mixed-use centre
IN designing shopping centres and mixed-use properties, Trademark Property Co of Fort Worth, Texas, used to do what many developers do: put together teams of professionals like architects, designers and building consultants; send out surveys; and hold community meetings. But in 2005, when it began planning a large mixed-use centre, Watters Creek, for a 21 hectare site in Allen, near Dallas, it decided to consult a group it had never called on before: women.
CEO Terry Montesi first hired two female retail consultants: Claudia A Sagan and J'Amy Owens. But Trademark also invited two dozen women from the Allen area to pick apart its plans for the centre. They included Kirsten Fair, a stay-at-home mother of two, and Debbie Stout, a City Council member, who runs a company that sells business forms.
The women weighed in on dozens of features, like the centre's layout, landscaping, parking options, pedestrian walkways and outdoor art. The developers 'asked us about every detail, and then they listened', Ms Stout said recently. At Watters Creek, Trademark Property discovered that some of the reaction from its women's focus groups challenged conventional retailing wisdom.
Like many retail developers, Trademark Property was used to installing tall, often ornate, brick or stone buildings, as well as sidewalks, at developments like Market Street, a mixed- used centre it opened in Woodlands, near Houston, in 2004. The core of that mixed-used centre was intended to have a classic Main Street look.
The Watters Creek centre, however, was to be part of a 202 ha planned community whose master plan called for significant green space as part of its environment-friendly design.
The women also wanted a village look and feel, with buildings of various sizes, colours and textures that followed the rolling topography of the area, rather than sitting flat.
The first phase of Watters Creek, which is expected to cover 1.15 million square feet eventually, opened in May. So far, Trademark has studded it with buildings that act mostly as a backdrop to a parklike area with two stone bridges, a pond, a creek, a 10-metre-tall community fireplace, climbable sculptures, and 10 restaurants that have outdoor seating with views of the pond, creek or village green.
The women are delighted\. \-- NYT
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Retail property market remains stable in Q2: DTZ
Business Times - 03 Jul 2008
Retail property market remains stable in Q2: DTZ
Turnover rents rise; limited growth for fixed gross rents
By NISHA RAMCHANDANI
BUOYED by positive consumer sentiment and the Great Singapore Sale period, the retail property market remained stable in the second quarter of this year, according to a market report by real estate consultancy DTZ.
Turnover rents in Q2 rose, but there was limited growth for fixed gross rents. DTZ noted that tenants were 'resisting committing at higher rents for both new retail space and lease renewals'.
First-storey monthly fixed gross rents remained largely unchanged quarter on quarter, hovering at an average of $42.40 per square foot (psf) for prime areas such as Orchard/Scotts Road, $33.70 psf in suburban areas and $27.10 psf in other city areas.
The retail market is expected to remain stable, despite competition from additional supply that will come on stream over the next few years. Malls such as ION Orchard, Orchard Central and 313 @ Somerset are slated for completion by 2009.
As much as 5.4 million square feet of retail space will be added to the mix between the second half of this year and 2012. Marina Bay Shoppes by developer Marina Bay Sands will account for the biggest chunk of that space, with 15 per cent or 800,000 sq ft, closely followed by CapitaLand and Sun Hung Kai Properties' ION Orchard at 663,000 sq ft.
The suburban retail scene will also be bolstered by upcoming developments, mainly in the west and north-west regions, such as the Big Box project at Jurong Regional Centre and the Civic Cultural and Retail Complex at Vista Xchange. Fifty per cent of the potential supply in suburban areas is in the west.
DTZ's retail associate director Anna Lee says: 'The increase in future supply will put a cap on price and rental increases, while offering opportunities for the retail market to reinvent itself with new concepts and offerings.'
Singapore's retail sales for April - excluding vehicles - rose 7.7 per cent year on year. But total retail sales value dipped about 4 per cent to $2.77 billion, from March's $2.89 billion, with almost all sectors reporting less activity in April.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Retail property market remains stable in Q2: DTZ
Turnover rents rise; limited growth for fixed gross rents
By NISHA RAMCHANDANI
BUOYED by positive consumer sentiment and the Great Singapore Sale period, the retail property market remained stable in the second quarter of this year, according to a market report by real estate consultancy DTZ.
Turnover rents in Q2 rose, but there was limited growth for fixed gross rents. DTZ noted that tenants were 'resisting committing at higher rents for both new retail space and lease renewals'.
First-storey monthly fixed gross rents remained largely unchanged quarter on quarter, hovering at an average of $42.40 per square foot (psf) for prime areas such as Orchard/Scotts Road, $33.70 psf in suburban areas and $27.10 psf in other city areas.
The retail market is expected to remain stable, despite competition from additional supply that will come on stream over the next few years. Malls such as ION Orchard, Orchard Central and 313 @ Somerset are slated for completion by 2009.
As much as 5.4 million square feet of retail space will be added to the mix between the second half of this year and 2012. Marina Bay Shoppes by developer Marina Bay Sands will account for the biggest chunk of that space, with 15 per cent or 800,000 sq ft, closely followed by CapitaLand and Sun Hung Kai Properties' ION Orchard at 663,000 sq ft.
The suburban retail scene will also be bolstered by upcoming developments, mainly in the west and north-west regions, such as the Big Box project at Jurong Regional Centre and the Civic Cultural and Retail Complex at Vista Xchange. Fifty per cent of the potential supply in suburban areas is in the west.
DTZ's retail associate director Anna Lee says: 'The increase in future supply will put a cap on price and rental increases, while offering opportunities for the retail market to reinvent itself with new concepts and offerings.'
Singapore's retail sales for April - excluding vehicles - rose 7.7 per cent year on year. But total retail sales value dipped about 4 per cent to $2.77 billion, from March's $2.89 billion, with almost all sectors reporting less activity in April.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Foreigners to be issued new pass
Business Times - 03 Jul 2008
Foreigners to be issued new pass
By MELISSA YEO
A NEW Long Term Pass (LTP) will be issued to foreigners living in Singapore as part of plans to beef up national security, the Immigration & Checkpoints Authority (ICA) and Ministry of Manpower (MOM) said yesterday.
The card will be issued to all foreigners here on a student pass (STP), long-term visit pass, employment pass or dependant's pass. It will replace the current stamp endorsement and disembarkation/ embarkation (D/E) card system.
Unlike the D/E card, the LTP card incorporates the holder's photo and fingerprint - to deter forgery and fraudulence.
The LTP card will be introduced to new pass holders in the second half of this year. Current holders of long-term visit passes and STPs will change to the LTP card from the second quarter of 2009 when they renew their passes.
A new Employment Pass Services Centre (EPSC) will be set up at this time to register and issue LTP cards to Work Permit and S Pass Holders.
More details of the LTP card's design and security features will be released closer to the date of its implementation.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Foreigners to be issued new pass
By MELISSA YEO
A NEW Long Term Pass (LTP) will be issued to foreigners living in Singapore as part of plans to beef up national security, the Immigration & Checkpoints Authority (ICA) and Ministry of Manpower (MOM) said yesterday.
The card will be issued to all foreigners here on a student pass (STP), long-term visit pass, employment pass or dependant's pass. It will replace the current stamp endorsement and disembarkation/ embarkation (D/E) card system.
Unlike the D/E card, the LTP card incorporates the holder's photo and fingerprint - to deter forgery and fraudulence.
The LTP card will be introduced to new pass holders in the second half of this year. Current holders of long-term visit passes and STPs will change to the LTP card from the second quarter of 2009 when they renew their passes.
A new Employment Pass Services Centre (EPSC) will be set up at this time to register and issue LTP cards to Work Permit and S Pass Holders.
More details of the LTP card's design and security features will be released closer to the date of its implementation.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
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