Property News!

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Jul 25, 2011
New panel to handle conveyancing spats
Rules to safeguard clients' money kick in next week
By K.C. Vijayan, Law Correspondent
Greater protection

Lawyers will no longer be allowed to receive and hold conveyancing money in their client accounts.
The money can be held by lawyers in only three ways:
- In a new type of account known as a Conveyancing Account. This account can be opened only with appointed banks designated by the Minister for Law. CPF money will be stake-held in a Conveyancing (CPF) Account.

- Through the Singapore Academy of Law's (SAL) new Conveyancing Money Service.

- For complex transactions, lawyers can receive conveyancing money and hold it in an account set up by both parties, for example the buyer and seller, on their terms.

Buyers or sellers who wish to place money in Conveyancing Accounts have to add the suffix, '-CVY', to the payee name on their cheque/cashier's order. Money placed with SAL must be made payable to 'Singapore Academy of Law'.
Any withdrawal or payout of money from Conveyancing Accounts will require two-party authorisation.
Visit www.conveyancing.sg or call the conveyancing measures hotline on 6838-1289 for details.

SOURCE: MINISTRY OF LAW

AS new rules come into force to protect clients' money from rogue property lawyers, the Law Society is setting up a panel of adjudicators to handle any disputes that arise.

From next week, lawyers will no longer be allowed to receive and hold conveyancing money from property deals in their normal client accounts.

Instead, they will have to open accounts with banks appointed by the Law Minister or place the funds with the Singapore Academy of Law's new Conveyancing Money Service.

The changes were triggered by several cases of lawyers fleeing with their clients' money. The most infamous was David Rasif, who disappeared in 2006 with about $11 million meant for a property deal.

Lawyers say the new rules will ensure consumer confidence, but what is not known is how much banks which hold the conveyancing funds will charge for this service.

The Law Society said several avenues are available to help the public and lawyers with queries.

'A panel of adjudicators has been formed to handle such disputes and will be operationally ready on August1, 2011,' a spokesman added.

The move comes as agencies work to ensure a smooth transition to the new regime. For example, the Law Ministry today placed advertisements in the major newspapers to educate the public in the run-up to the new scheme. The Law Society said it is 'fully aware that law practices will need time to adjust to the changes and continues to work closely with the other stakeholders to ensure a smooth transition for all concerned'.

The changes in the law were passed by Parliament in April. They also mean lawyers will be unable to withdraw or transfer money from a conveyancing account without authorisation from both parties involved, for example the buyer and seller.

An electronic system has been set up by the Singapore Land Authority to provide a secure way for lawyers to process payment instructions. The Law Society said the new scheme follows two pilot runs in April and November last year. These involved more than 150 law firms, banks, the Singapore Academy of Law, the Central Provident Fund Board and the Housing Board. The pilot runs gave the law firms a chance to check their internal systems.

Singapore Academy of Law chief executive Serene Wee said both trials went smoothly and it was satisfied with the results.

Conveyancing lawyer Evelyn Phang of Mozaic Group Law Practice said the banks did not impose fees during the pilot runs.

'It remains to be seen what are the rates they will charge for handling the accounts and how this will affect the client,' she said.

The Law Society said the greater protection has brought with it related costs. Lawyers are aware of the impact of these costs on their clients and will try to contain them as far as possible.

'The society has worked closely with the Ministry of Law and other stakeholders vis-*-vis the learning points gained from the pilot trials and the drafting of key legislation introducing the new measures,' said the spokesman.

He said it has also held dialogue sessions, and 'issued guidelines to help lawyers understand their critical roles under the new conveyancing regime'.

'The Law Society urges all stakeholders, including the banks, to play their part in the public interest by keeping costs in check and proportionate to the increase in protection of clients' money.'

 

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Renowned architect to design condo at Bishan Central
By Clement Masenas | Posted: 26 July 2011 1735 hrs


SINGAPORE: Renowned architect Moshe Safdie has been appointed by CapitaLand Residential Singapore as the lead designer for its condominium at Bishan Central.

For the approximately 540-units development, Moshe Safdie has introduced a strong and distinctive stepping form that provides for private garden spaces for a large number of the units.

There will be two 38-storey towers linked by three bridging "sky gardens", which offer opportunities for commonly shared garden and leisure spaces.

Moshe Safdie, who is based in Boston, Massachusetts, said: "The concept moves past the traditional approach of deploying individual towers to create a three-dimensional matrix of public gardens and private terraces as well as to frame open views to the city."

Residents on the upper floors will enjoy views of Bishan Park.

The condo is in Bishan Central which is one of Singapore's most popular residential estates.

It is located a convenient five-minute walk to the Bishan transportation hub and Junction 8 shopping mall.

 

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Renowned architect to design condo at Bishan Central
By Clement Masenas | Posted: 26 July 2011 1735 hrs


SINGAPORE: Renowned architect Moshe Safdie has been appointed by CapitaLand Residential Singapore as the lead designer for its condominium at Bishan Central.

For the approximately 540-units development, Moshe Safdie has introduced a strong and distinctive stepping form that provides for private garden spaces for a large number of the units.

There will be two 38-storey towers linked by three bridging "sky gardens", which offer opportunities for commonly shared garden and leisure spaces.

Moshe Safdie, who is based in Boston, Massachusetts, said: "The concept moves past the traditional approach of deploying individual towers to create a three-dimensional matrix of public gardens and private terraces as well as to frame open views to the city."

Residents on the upper floors will enjoy views of Bishan Park.

The condo is in Bishan Central which is one of Singapore's most popular residential estates.

It is located a convenient five-minute walk to the Bishan transportation hub and Junction 8 shopping mall.

Jul 27, 2011
Moshe Safdie to design Bishan condo
Famed architect, whose firm designed ArtScience Museum, to work on project near MRT station
By Esther Teo, Property Reporter
The 540-unit project will consist of two 38-storey towers linked by bridging sky gardens - vastly different from the more traditional approach of individual towers for suburban condo projects. The site was acquired by CapitaLand for $550 million earlier this year.

An artist's impression of the Bishan project. Experts say enlisting a world-class architect may be a way for developers to overcome price resistance by differentiating their product. -- PHOTO: CAPITALAND

AN INTERNATIONALLY renowned architect with a reputation for head-turning designs has been hired for a major condominium project in Bishan.

In a bold move, CapitaLand has hired United States-based award winner Moshe Safdie to help reshape the look of the heartland.

Mr Safdie, whose firm designed the eye-catching ArtScience Museum at Marina Bay Sands, has been commissioned to design the 540-unit project on the Bishan Central site.

The site, near Bishan MRT station, was acquired by CapitaLand for $550 million earlier this year.

Nestled amid Bishan HDB estate, the project will consist of two 38-storey towers linked by bridging sky gardens - a world apart from the more traditional approach of individual towers for suburban condo projects.

Developers here are gradually changing the residential landscape by dazzling buyers with big-name overseas architects, say property watchers.

They note that famous names such as I.M. Pei - who designed office development The Gateway in Beach Road more than 20 years ago - have long crafted commercial buildings here.

But the hiring of architects for homes is a more recent phenomenon - and has the potential to produce a major landmark dominating the Bishan area.

'The strong architectural form of the new condominium will be a new landmark in the Bishan area, transforming its urban landscape,' said Mr Wong Heang Fine, chief executive of CapitaLand Residential Singapore.

Mr Safdie also designed a housing project, Habitat 67 in Montreal, and Vancouver Library Square, both regarded as cutting-edge designs.

Other internationally acclaimed architects have made headlines here in recent years.

For example, German architect Ole Scheeren was behind The Interlace in the Alexandra Road area, American Daniel Libeskind designed Keppel Land's Reflections at Keppel Bay, and Iraqi-British architect Zaha Hadid was behind the massive 1,715-unit d'Leedon on the former HUDC Farrer Court estate.

Still, these were mostly in the central or city fringe areas.

Yet it is clear that apart from a brand name, buyers are also concerned about other factors such as pricing. None of the designer projects has sold out as yet.

The Interlace is 65 per cent sold, Reflections has found buyers for 71 per cent of its project, while d'Leedon is 23 per cent sold as of last month.

Experts say enlisting a world-class architect usually means a higher selling price and can be a way for developers to overcome price resistance in certain areas by differentiating their products.

It is also rare to have renowned architects design projects in the heartland, they add, but it is the site's location in a mature estate with amenities, such as good schools and the Bishan MRT interchange station, close by that have allowed such a concept to be viable.

Chesterton Suntec International research head Colin Tan said that as CapitaLand made a relatively high bid for the site and was likely to launch the project at a benchmark record price as well, it needed to have a key selling point.

'They can't get away with an ordinary design or a run-of-the-mill project and charge those kinds of prices. They have already got the location, so what they need now is a reason for buyers to buy, with an iconic project to push sales.

'It's a clever way of asking not to be compared with prices in the area because they want to be seen as different.'

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, said CapitaLand was likely to have already had the intention of building an iconic project complete with superior furnishings in its $550 million bid for the land parcel.

He noted that the site's positive attributes might allow it to sell for more than $1,400 per sq ft (psf), but for CapitaLand to price it beyond $1,500 psf would be 'surprising' and buyers might not bite.

'If the market is on an upswing, it is not inconceivable for the project to sell at $1,400 psf. But apart from the ample supply going forward, which might cause price resistance, it also depends on external economic conditions.'

He said other suburban regional centres such as Jurong East could also see international names potentially making a splash in their estates in the future.

CapitaLand had set a new record for a 99-year leasehold suburban condo site with its winning bid of $869 psf per plot ratio in February. This led some experts to predict selling prices of between $1,400 psf and $1,700 psf - a new record for suburban homes.

Experts also noted that in a competitive housing landscape with increasingly sophisticated buyers, developers have started looking beyond selling just bricks and mortar to marketing a distinguished concept or lifestyle to a global pool of buyers. And designer architects add that touch of glamour, helping to differentiate the product further.

 

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Jul 28, 2011
New Jurong mall aims to be Jem of the west
By Esther Teo, Property Reporter

When completed around the second quarter of 2013, Jem is expected to be Singapore's third-biggest suburban mall. Australian developer Lend Lease says tenants such as Cathay Cineplex, Robinsons, Koufu, FairPrice Xtra and Courts are signing up. -- PHOTO: LEND LEASE

THE curtain was raised yesterday on yet another Jurong mall - but the ample supply of shop space does not worry landlords, who are betting on the growth of suburban retail areas.

Australian developer Lend Lease yesterday unveiled the design for its new shopping mall, Jem - the third-largest suburban mall here, with 818,000 sq ft of gross floor area. It is expected to attract more than 20 million shoppers a year.

Already, half of its shops have been leased - about two years before its scheduled completion in the second quarter of 2013 - with tenants such as Cathay Cineplex, Robinsons, Koufu, FairPrice Xtra and Courts signing up, the firm said.

While Lend Lease declined to disclose asking rents, it said unprecedented demand meant they 'were very competitive and consistent with market'. The 1.9ha mixed-use site is in Jurong Gateway Road, next to Jurong East MRT station.

Mr Paul Walker, Lend Lease development director for the project, said Jem will take Orchard Road to the west, with high street fashion brands expected.

While there is talk of saturation in Orchard Road, with four malls opening within a year, Mr Walker said the suburban retail market represents a new growth area.

The west is also under-supplied in terms of retail space per person compared with the rest of the island, he added.

And he said: 'The people in Jurong are crying out for a night-time destination.'

Jem hopes to become a supper destination, with Koufu possibly operating night noodle markets or beer gardens.

The office tower above the mall, with a net lettable area of 310,000 sq ft, has been completely leased to the Ministry of National Development, bringing the committed leasing for the entire development to 70 per cent.

The project occupies a prime location in Jurong Lake District, which is 21/2 times the size of Tampines Regional Centre, and will be the largest commercial centre outside the city.

Mr Rod Leaver, Lend Lease Asia chief executive, said the firm is keen to continue expanding its retail investment here.

On whether the shaky global economic situation is of concern, he said he was encouraged by the strength and management of the economy here.

'I think that's reflected by the strong pre-leasing we have achieved on this development, which gives us a lot of comfort,' he said.

 

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Jul 28, 2011
Hotel plan for serviced apartments
Ascott Reit considers redevelopment of Somerset Grand Cairnhill
By Esther Teo, Property Reporter
SOMERSET Grand Cairnhill may be given a major makeover, to redevelop it as an integrated hotel and residential development.

Ascott Residence Trust (Ascott Reit), which owns the block of serviced apartments, said in a statement yesterday that the Urban Redevelopment Authority (URA) has granted provisional permission for the redevelopment.

The URA has stipulated that a minimum 40 per cent of the maximum allowable gross floor area of 43,300 sq m for the redeveloped project must be put to hotel use, while the remaining space can be used for homes.

The Al-Falah Mosque incorporated in the current development must also be retained and a development charge, if any, must be paid.

In evaluating whether the redevelopment is viable and financially feasible, Ascott Reit's manager - Ascott Residence Trust Management (ARTML) - said it would look into a possible lease extension for the site. Its existing lease expires in 2082.

It would also consider certain limitations that are imposed on real estate investment trusts here.

For instance, property fund guidelines for Singapore Reits mandate that they can develop projects only if the total cost does not exceed 10 per cent of total asset size. This development limit works out to about $280 million for Ascott Reit.

Mr Chong Kee Hiong, chief executive of ARTML, said this move is part of Ascott Reit's efforts to constantly evaluate its portfolio for potential enhancements to optimise value.

'In evaluating the options for value enhancement, the manager's key considerations would be the retention of Ascott Reit's presence in the Orchard Road area in Singapore (and) the continued operations of the Al-Falah Mosque in the development,' he explained.

He also said it will consider 'the potential yield accretion to the portfolio of any proposed redevelopment'.

The firm, however, emphasised that it is only in the evaluation phase and that there is no certainty of any proposed redevelopment materialising at this stage.

Unit-holders are advised to exercise caution in trading units of Ascott Reit, it added.

Somerset Grand Cairnhill is situated near Somerset MRT station. The 32-storey building consists of a 24-storey tower of 146 serviced residences set above an eight-storey podium comprising a mosque, carpark and commercial space.

It is part of Ascott Reit's international portfolio of 64 properties across 12 countries in the Asia-Pacific region and Europe, such as China, Australia and France.

Ascott Reit's asset size has more than tripled to about $2.73 billion since its listing in March 2006. ARTML, the Reit's manager, is an indirect wholly-owned subsidiary of mainboard-listed CapitaLand.

Ascott Reit's units were up one cent at $1.23 yesterday.

 

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Jul 29, 2011
Shoebox units a cause of more volatile home prices: Study
By Esther Teo, Property Reporter
SHOEBOX PRICE TAG

'The cooling measures, such as preventing private home owners from buying HDB flats... have also increased demand as investors now turn to shoebox units, usually with a smaller quantum of less than $1 million.'

SLP International research head Nicholas Mak

SHOEBOX apartments have made overall home prices here more volatile, with sharper price gains than larger homes. This is a key finding in an analysis by the National University of Singapore (NUS) real estate department.

An index tracking per sq ft prices of these tiny units of about 500 sq ft or less has rocketed up 62 per cent since March 2009, its post-crisis low. This outpaced the 51 per cent rise for the overall Singapore Residential Price Index (SRPI) over the same period.

More recently, NUS data found that from March to May, small unit prices rose 7 per cent. This is again higher than the 3 per cent gain by non-landed homes in central and non-central areas, excluding shoebox homes.

This is the first time the NUS SRPI - which tracks a basket of completed non-landed projects - has extracted small homes in its analysis of resale prices.

Associate Professor Lum Sau Kim of NUS's Institute of Real Estate Studies and Department of Real Estate, who leads the group that compiles the index, said that the quicker psf price gains for small homes would have pushed the overall index up marginally. Although shoebox units make up a seemingly insignificant 0.4 per cent of the number of units in the index's basket, 5 per cent of the basket's residential projects have shoebox units.

'The pricing of these small units exerts a two-way ongoing influence on the entire market,' Prof Lum said. She also observed that while shoebox prices had tracked the price movement of homes in the central area previously, price gains for the shoebox segment were now leading price gains of central units.

Experts say shoebox prices have outpaced other segments as buyers focus on the overall price rather than the psf price, allowing developers to raise prices more easily.

SLP International research head Nicholas Mak cautioned that buying shoebox units is a riskier investment as a quicker price gain during a property boom could mean a quicker price drop should the market turn.

'The cooling measures, such as preventing private home owners from buying HDB flats and tighter financing rules, have also increased demand as investors now turn to shoebox units, usually with a smaller quantum of less than $1 million.'

When asked about the possibility of publishing a separate index for small homes, an Urban Redevelopment Authority (URA) spokesman said transactions of shoebox units in both the primary and secondary market accounted for only 8 per cent of all sale transactions in the year's first half.

'Given the detailed information on individual private housing units sold that is already available to the public on URA's website, there is no need at this moment for URA to publish a price sub-index specifically for shoebox units,' he said, but added that the URA would not rule such an index out in the future.

 

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Aug 6, 2011
MAKE HOUSING AFFORDABLE
Bold design? I'd prefer a liveable unit
AS A Singaporean looking to buy a private apartment to live in, I am disturbed by the report ('Moshe Safdie to design Bishan condo'; July 27), which suggests that 'increasingly sophisticated buyers' want 'designer architects' who 'add that touch of glamour' to developments.

Those buying a home to live in are not looking for bold, iconic designs with irregularly shaped rooms and living spaces. They want practical, usable and liveable spaces in their bedrooms, living areas and kitchens. However, in order to achieve higher prices per square foot, developers are building smaller units with less usable space.

New apartments now come with bedrooms that can barely fit a single bed, windowless kitchens unsuitable for Asian cooking, no laundry areas (besides ecologically unfriendly washers-cum-dryers fitted under the kitchen sink) and dark, narrow corridors in common areas and lift lobbies.

Yet, in order to maximise saleable strata space, developers are building units with balconies bigger than the bedrooms, planter boxes, long air-conditioner ledges and, until the recent change in Urban Redevelopment Authority rules for gross floor area, bay windows that virtually wrap around the entire unit.

After visiting numerous showflats with such designs, I wonder whether developers are building homes for people to live in, or to maximise their profits from foreign investors who wish to park their money here.

Foreigners are able to afford the high asking prices, and they will continue to buy without much concern about the impractical designs.

In land-scarce Singapore, where the cost of suburban condominiums is now hitting $1,400 per sq ft, housing agents are marketing our properties abroad and conducting property tours for foreigners who have been restricted from buying houses in their own countries by their governments.

With a lack of restrictions on foreigners purchasing private homes in Singapore, is there any incentive for property developers to build liveable units for Singaporeans to occupy? Can one blame developers for looking to market 'a distinguished concept or lifestyle to a global pool of buyers', even in the Singapore heartland?

Lin Xinsheng

 

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Aug 4, 2011
PropertyGuru wins domain name dispute
Rival infringed on its trademark in Malaysia, KL arbitrators ruled
By K.C. Vijayan, Law Correspondent
SINGAPORE'S PropertyGuru.com will be allowed to operate using a similar domain name in Malaysia after winning a tussle with a rival real estate firm.

The dispute began after the owner went to set up a Malaysian version at propertyguru.com.my - only to find the other firm had got there first.

Arbitrators in Kuala Lumpur have now decided that this breached PropertyGuru's trademark and ordered the rival to hand over the domain name.

The dispute is the first of its kind involving property websites in Malaysia. It comes as real estate firms battle to acquire a greater online market share.

PropertyGuru is owned by Singapore firm AllProperty Media. The company complained of trademark infringement after finding out that Malaysia-based Think Media was using the property.guru.com.my name.

AllProperty started to use Homeguru.com.my instead for its Malaysian market in December last year, while pursuing a complaint with the Kuala Lumpur Regional Centre for Arbitration.

The panel of three senior lawyers found that Think Media's domain name was 'closely and confusingly similar' to PropertyGuru.com.

In its decision grounds issued last month, it agreed that AllProperty had built up goodwill in Malaysia because its Singapore site had been 'visited by Malaysians, used as an advertising platform for Malaysian developers and promoted or advertised in Malaysian publications since early 2008'.

AllProperty's lawyer Tepee Phuah from Tay & Partners argued that Think Media had registered the disputed domain name in bad faith.

She pointed out that the firm is owned by Singapore-based iProperty Group Asia, which operates real estate sites in various countries.

As a rival, it would have known of AllProperty's interest in the domain name. Ms Phuah argued that the domain name does not add value to the existing iProperty website.

This means it must have been registered to stifle AllProperty.

Think Media denied the claims, saying AllProperty had no right to the domain name as the words 'property' and 'guru' were highly generic or descriptive.

Its lawyer Teo Bong Kwang from Wong Jin Nee & Teo said this was not a simple case of cyber-squatting and the case was not within the tribunal's decision-making scope.

He instead urged the tribunal to make a finding of 'reverse domain name hijacking' against AllProperty.

Rejecting the arguments, the panel found that Think Media had acted in bad faith and had registered the name with the intention of diverting Internet users away from AllProperty's website.

Its order that the domain name be transferred to AllProperty will have to be stayed for the time being after lawyers for Think Media filed notice of appeal to the Malaysian High Court yesterday.

 

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Aug 4, 2011
Few new property launches this month
Ghost month and global economic woes may put off potential buyers
By Cheryl Lim

Hungry ghost festival: An auctioneer calling out bids at a Hungry Ghost Festival banquet. Some home buyers consider the ghost month to be an inauspicious time to make home purchases. -- TNP FILE PHOTO

View more photos

NEW property launches are expected to slow down to a trickle as developers hold off launching projects over the next few weeks.

The traditionally inauspicious Hungry Ghost Festival - which started on Sunday - could be one reason, but analysts say uncertainty over global economic issues could be a more worrying concern.

Several developers contacted by The Straits Times confirmed that they are not planning to launch any new projects this month, but many denied the Hungry Ghost Festival has anything to do with it.

Both Oxley Holdings and Roxy Pacific explained that they are in the midst of preparing projects that are due to be launched later this year.

Roxy Pacific's executive chairman, Mr Teo Hong Lim, quipped that launching properties during the ghost month could turn out to be an advantage because developers would have less competition.

But Mr Lim Yew Soon, managing director of EL Development, said his firm avoids launching properties during the Hungry Ghost Festival as some home buyers do not want to buy during this time.

'You have only one shot at creating a good impression in the market, so we want to do so at a time that is free from any constraints,' he said.

But Far East Organization is one developer that is bucking the trend. It launched 306 units at its euHabitat development last Tuesday. Since then, 181 units have been sold. The project, located at Jalan Eunos, offers a total of 748 units with prices in the range of around $869 per square foot for a 3,380 sq ft townhouse.

Commenting on this, Mr Ong Kah Seng, Cushman and Wakefield's senior manager of Asia-Pacific research, said despite the market's cautious sentiment, unique projects like euHabitat might see buyer interest because they appeal to a broad range of buyers by offering various housing types in the same development.

Knight Frank's head of research, Mr Png Poh Soon, predicts that the pace of new launches should resume towards the end of the festival on Aug 28.

He observed: 'When you have a brand new project, you don't want to start off with empty showrooms and create negative publicity for your property.

'But if a project has done well during the preview sales that had started weeks earlier, developers are more confident that it will continue to do well despite the Hungry Ghost Festival,' he said.

Credo's head of research and consultancy, Mr Ong Teck Hui, pointed out that the current ghost month also happens to coincide with a flurry of negative news from the United States, Europe and China, as well as Singapore's low gross domestic product growth in the second quarter. This could explain the slower pace in property launches and sales.

Cushman's Mr Ong added that the growing concern over the debt woes in Europe and the US may have some impact on home sales and sentiments locally.

While market activity tends to slow down during the ghost month, Credo's Mr Ong was optimistic that a robust economic recovery could see many buyers still going ahead with purchases.

Mr Png agreed and added that property purchases here are sentiment-driven: 'If the market is slowing down, people might not buy property because they might think there's something wrong and that's why other people are not buying.'

Market experts also attribute the expected slowdown to the National Day public holiday and the upcoming presidential election, but they add that these events will have limited impact.

 

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Aug 5, 2011
Soon: Room sizes of new homes 'must be spelt out'
By Cheryl Lim
THE days when a buyer finds the sofa does not fit into his new home may soon be over, thanks to tough new rules that will force developers to measure up to the floor plans and flashy showflats they use in the sales campaign.

The floor area of rooms in a new unit, from balconies to bedrooms and the dining area, will have to be accurately outlined so buyers can be confident that they will get what they paid for, down to the last inch.

An initial suggestion had asked developers to give measurements of only spaces like balconies and planters.

The relevant rules and regulations will be amended for this and other earlier proposals, the Urban Redevelopment Authority (URA) said yesterday.

Mr Colin Tan, head of research at Chesterton Suntec International, applauded the move to break down homes by room size but suggested it be taken further.

'It would be better if it is made a requirement that this information be carried in the title deeds or some documents. If the first buyer is entitled to know all this information, why not subsequent buyers?' he said.

Another key change will see the revised rules applied to all housing developers, even small operators that might be building four units or less.

The move will set a standard across the industry, said analysts, and will reassure buyers that no developer is exempt from the rules.

Another key change will involve the URA naming developers that have violated these and other regulations. This list will be posted on the URA website.

SLP International's executive director of research and consultancy Nicholas Mak said the naming and shaming exercise might hit the sales of offending firms.

These three new proposals announced yesterday were in response to feedback from an online consultation held in March and April.

The consultation was on a range of proposals put forward by the URA to give buyers better access to accurate and timely information about the market and the units that they are buying.

URA said yesterday that feedback was positive with more than 100 respondents backing the proposals.

It added that it will finalise the changes to the Housing Developers (Control & Licensing) Act (HDCA) and the Housing Developers Rules (HDR) and the rules will come into effect 'in due course'.

Among the earlier proposals, developers have to get consent from buyers if they want to change a project that has already racked up sales.

Developers will also have to provide information on their track record in earlier projects before issuing the option to purchase.

Developers are not taking any chances, with some telling The Straits Times that their showflats already comply with the proposed changes.

Mr Satia Narjadin, director of Global Orion Properties, said the rule changes would definitely mean extra costs for his firm.

'But if it applies only to the design of the showflat like adding an extra sliding door or redesigning brochures then the cost is negligible compared to the entire cost of launching a new project,' he said.

Sales consultant Clement Yap, a prospective buyer in his mid-40s, said previous experiences have made him sceptical about showflats.

While he hopes that there will be a clearer system of filing complaints about offending developers, he is confident that the proposed guidelines will offer more security for buyers like himself.

 

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Aug 7, 2011
Why govt should intervene in housing
I refer to the article, 'Lower land prices offset by rising costs' (July29), which quotes Real Estate Developers' Association of Singapore president Wong Heang Fine as saying that 'the private residential market should be given the opportunity to independently adjust to achieve its demand and supply equilibrium'.

Mr Wong is correct only if we assume that markets are 100per cent efficient, that people think only with their heads and not with their hearts. Yet, if these assumptions were true, the world would not be lurching from depression to bubble as regularly as night follows day.

The responsibility of a caring government is as much to generate a conducive environment for business as it is to shield, where possible, the non-savvy from the destructive financial tsunamis resulting from imprudent investments.

In housing, for example, without intervention from land authorities, property prices can be driven to stratospheric levels through sheer herd mentality, disingenuous marketing, exploitative pricing and easy financing.

The true capitalist model does not allow for government interventions, but history is replete with examples bearing testimony to the failure of this model.

The Singapore model - of modest manipulation by the Government for sustainability - is thus preferred.

Dr Yik Keng Yeong

 

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Tenants at The Verge locked out
Some chalk up two years of rental arrears due to poor business

Published on Aug 8, 2011

At least three tenants at The Verge in Little India have been locked out of their units after failing to pay rent. UGL Services, which took over management of the mall last year, said it has offered concessions and conducted marketing activities to help draw crowds. -- ST PHOTO: DESMOND LIM

BACKGROUND STORY

NO CROWDS

'Few people come in here, they don't advertise the mall well and the tenants are not good.'

Mr Lim Keng Boon, 40, assistant general manager of Crocodile. The clothing store is one of the tenants at The Verge that is in arrears with its rent

HELP OFFERED

'Since taking over, we have assisted the tenants by offering concessions, conducting numerous marketing efforts and activities to help bring in business and increase traffic to the mall.'

A spokesman for UGL, who said occupancy rate at The Verge had picked up under its management


AT LEAST three tenants at The Verge, a mall in Little India, have had their shops locked up and goods seized after chalking up rental arrears of up to two years.

The eight-year-old mall's managing agent UGL Services is believed to have issued letters of demand to at least three tenants.

Others said they too are in arrears because of poor business.


This is not the first time the mall has run into difficulties.

Opened in 2003 as Tekka Mall and owned by Corwin Holding, it soon ran into problems attracting crowds. By mid-2008, a number of the mall's tenants - a mix of businesses including beauty and retail outlets - had gone belly up.

In 2009, it was relaunched as The Verge by property management firm Knight Frank. The goal was to reposition it as an IT, lifestyle and F&B hub.

Two other buildings in the area - Sim Lim Tower and Sim Lim Square - were also magnets for the electronics and IT crowd.

UGL took over the management from July last year.

The Straits Times visited the eight-storey mall at lunchtime last week and found it deserted. Tenants include stationery shops, furniture stores, spas, florists and educational setups like Insworld Institute. But half the stalls at a food court run by Banquet were shuttered and the remaining stalls had so-so business.

Construction of an upcoming Downtown Line 2 MRT station in the area has also blocked large parts of the mall's exterior from public view.

One tenant, Madam Josephine Chua, 46, said she has not paid rent since 2009 when she took up two units.

She said she received a writ of summons for $146,000 last month and had previously rejected a rental rebate of 15 per cent. She was locked out of her units last month.

'At the end of the day, I may have been very naive. But we were given brochures telling us that the mall would have many IT tenants,' she said, adding that one of her units - meant to be a cafe - never opened due to problems with an exhaust duct.

The other unit houses a foot-reflexology outlet and she has hired a lawyer to try and sort out the matter.

The change in management is also a bone of contention with some tenants. Private school operator B. Krishna, 60, said he signed a three-year contract with Knight Frank for four units in July 2009.

In December that year , the Private Education Act was introduced to clean up the private education sector and he had to register his school.

To do so, he had to meet criteria, including having proper premises. He claimed that Knight Frank allowed him to defer rent until his registration was approved.

He ploughed in $135,000 to renovate the premises but he never got approval.

He found himself locked out on July 8 after he had stopped paying rent for 16 months.

Other tenants like clothing store Crocodile and shoe store Chakras Medical are also in arrears, say their managers.

Said Mr Lim Keng Boon, 40, assistant general manager of Crocodile: 'Few people come in here, they don't advertise the mall well and the tenants are not good.'

But some businesses such as clothing store Fesa and anchor tenant Sheng Siong supermarket said they are doing okay because of support from regulars.

A spokesman for UGL said it has helped tenants by offering concessions and conducting numerous marketing activities to help bring in business.

The mall's occupancy rate has picked up since the takeover and will hit 95 per cent with new tenancies, added the spokesman.

UGL declined to comment on the allegations by tenants. However, its spokesman said it has 'acted correctly and properly within (its) rights'.

Mr Colin Tan, head of research at Chesterton Suntec International, said plans for launches at malls are not set in stone.

'The delivery of the plans really depends on the economic situation at the time. There is usually a lot of hype before launches, and the IT slant could be a way to get better rents for the owner,' he said, adding that businessmen should ask questions like how plans would pan out.

In the meantime, The Verge tenant William Chng, 44, said he recently accepted a 15 per cent rebate. The owner of accessories store Lollipop.com on the first floor said business has fallen at least 30 per cent since the revamp. 'Of course, every landlord would want their mall to do well. We understand they wanted IT shops to open here. Maybe they just could not attract the right tenants,' he added.

A neighbourhood resident, Mr Lim Choon Kiang, 83, said he visits The Verge once a month but only to buy groceries at Sheng Siong in the basement.

'I don't go to the other shops. There is nothing much in there and the food court is on the fourth floor. I don't wa

 

[junhaoqjh]

haha just looking around

 

[Citiguy]

Only now do I know that Tekka Mall was renamed The Verge...

 

[jq75]

Investor gets $442,680 cut in stamp duty Lower stamp duty on separate contracts
Judge says block buy should be treated as 83 separate ones

Published on Aug 11, 2011

Madam Lily Lai paid about $226 million for all 83 units of Tower 1A at Reflections at Keppel Bay in 2007, but took the case to court after receiving the bill from the Commissioner of Stamp Duties. -- ST PHOTO: RAJ NADARAJAN


BACKGROUND STORY

Lower stamp duty on separate contracts

$226,472,460
Purchase price for all 83 units of Tower 1A at Reflections at Keppel Bay

$6,788,775
Stamp duty bill for the purchase, based on a single contract

Madam Lily Lai said her purchase should be treated as 83 separate contracts and not just one.
The rate of stamp duty is lower on the first $360,000 of every purchase, meaning she would save $5,400 on each one.



AN INVESTOR who paid about $226 million for a whole tower block at Keppel Bay has been given a $442,680 discount on her stamp duty following a landmark High Court judgment.

Madam Lily Lai, in her 50s, had appealed against her $6,788,775 bill, arguing that her purchase should be treated not as a single contract but as 83 separate ones. This worked out cheaper because the rate of stamp duty is lower on the first $360,000 of every purchase, meaning she saved $5,400 each time.

Justice Choo Han Teck reversed the taxman's ruling in what industry players see as a test case which could set a precedent for other buyers.

Madam Lai was born in Taiwan but is now a Singapore citizen. She is said to be a low-profile real estate investor who is interested in long-term developments.

It is understood that she first caught sight of the development, called Reflections at Keppel Bay, while she was returning from a trip to Batam. She decided to invest in an entire tower block because a Buddhist shifu, or master, told her that the condo, which is 'backed by a mountain and faces water', has good fengshui, said a close friend of Madam Lai. The friend, who did not want to be named, told The Straits Times: 'We had just driven past a banner advertising the property and decided to take a look. After bringing shifu there, we decided that it was a good investment.'

Madam Lai paid $226,472,460 for all 83 units of Tower 1A in 2007, but took the case to court after receiving the bill from the Commissioner of Stamp Duties.

The Inland Revenue Authority of Singapore's (Iras) lawyers Foo Hui Min and Patrick Nai argued that correspondence between Madam Lai and the developers before the sale pointed to a single contract on which the stamp duty bill should be based. But Madam Lai, represented by lawyers Ong Sim Ho and Amolat Singh, said there was no understanding that there would be a single contract.

Justice Choo found that Madam Lai had 'offered persuasive and bona fide commercial reasons for structuring the bargain in that manner'.

Madam Lai also confirmed in court documents that she would not have accepted a single sale and purchase agreement to buy all the units 'as a collective interest'.

'A single agreement would have constrained her ability to obtain financing from more than one financial institution,' said Justice Choo.

'She would also face difficulties in the event of the sub-sale of one or more of the units because the developer would have to cancel the sale and purchase agreement and re-issue her with fresh sale and purchase agreements.'

Justice Choo also rejected the Commissioner's reliance on a circular issued by the Iras on March 13, 2008.

This said that when it came to stamp duty, block property purchases should be treated as having a single purchase price. This would prevent block buyers taking advantage of the tax scheme by treating the purchase as single units.

But Justice Choo said that the circular was irrelevant as it was published after the case had arisen. The judge held that there 'cannot be uniform treatment of all block purchases'. He said the taxman must treat each case separately.

Mr Ong said the move could have important implications. He added: 'The official Iras circular insisting on stamping 'block purchases' as a single block appears now not to be valid as the court rightly ruled that each case must be looked at based on its own facts.'

An Iras spokesman said yesterday: 'We are reviewing the grounds of decision by Judge Choo Han Teck before deciding on the next course of action.'

Madam Lai's friend said the units will be marketed and sold by Leadway Property, which also operates from and owns an 18th-floor office space at The Central Mall. According to the friend, Madam Lai spends most of her time overseas.

When The Straits Times visited a four-room flat in Clementi - Madam Lai's last known registered address - a woman who answered the door said there is no such person living there.

 

[jq75]

Site at Upper Serangoon draws 15 bids
Top bid of $185m for plot; developers unfazed by stock market turmoil

Published on Aug 12, 2011
By Cheryl Lim

BACKGROUND STORY

SITE'S STRONG SELLING POINTS

Access to MRT: Land parcel located opposite Potong Pasir MRT station, 10 minutes' travel to Central Business District
Good schools: Proximity to well-established educational institutions, such as St Andrew's Junior, Secondary and Junior College as well as Cedar Girls' Primary and Secondary schools

A PLUM residential site near Potong Pasir MRT station and good schools has attracted bids from no fewer than 15 property developers, far more than in recent successful tenders.

Despite the recent stock market turmoil, the top bid was close to market expectations, at $185 million from low-profile diversified property group Tuan Sing Holdings.

The crowded field of developers vying for the Upper Serangoon Road site is considerably larger than the number for successful land parcel tenders in May and June - fewer than 10, on average.

The 0.87ha site is able to yield 330 units in blocks of up to five storeys.

Tuan Sing's bid was a mere 3.5 per cent higher than the second highest bid of $179 million. The top bid translates to $567 per sq ft per plot ratio (psf ppr).

The tender for the site, which closed yesterday, attracted a mixed bag of bidders, ranging from industry big boys such as Far East Organization and Frasers Centrepoint, to smaller players such as EL Development.

Several contractor-developers such as Qingdao Construction took part as well.

Bids for the site were spread across a wide range, from $567 psf ppr down to just $240 psf ppr.

The 99-year leasehold site is nestled between Upper Serangoon Road and Pheng Geck Avenue.

It has a gross plot ratio of 3.5 and can be developed up to a maximum gross floor area of 326,394 sq ft.

Yesterday's top bid was lower than the $607 psf ppr winning bid for an adjacent site last year.

The land price for that site - that is currently being developed as Nin Residences - was 7 per cent higher than the top bid submitted for the Upper Serangoon Road parcel.

Dr Chua Yang Liang, who is head of research at Jones Lang LaSalle, said the bidding suggests that the recent market conditions have had only a slight effect on prices.

He added that developers are taking a long-term view of market conditions in Singapore and the region.

'It's still too soon to know where the property market is heading, whether this stock market activity is a short-term blip or a correction,' said Dr Chua.

Some analysts had expected a price of up to $196 million for the site.

Dr Chua said the modestly lower bid prices may have factored in developers' expectations of more muted property sentiment in the second half of this year.

Credo's head of research Ong Teck Hui agreed and said the similarity of the prices of the first few bids was evidence that the current market turmoil had caused the developers to take a measured approach to bidding.

But the site's considerable attributes would have proved a bigger consideration for the developers, said head of research and consultancy at SLP International Nicholas Mak.

'They aim to acquire sites with characteristics that would be very attractive to home buyers at a bargain land price, in case the property prices soften.'

The plot of land is located directly opposite the Potong Pasir MRT station, with future residents able to travel to the Central Business District within 10 minutes.

Well-established educational institutes such as Cedar Girls' Secondary School and St Andrew's Secondary School and St Andrew's Junior College are located within the neighbourhood.

** Richard Ellis' executive director of residential Joseph Tan said this tender exercise clearly indicates that MRT sites are still considered to be prized plots, attracting interest relative to market conditions.

Mr Mak added that there was a significant presence of contractor-developers.

'This could be due to the site's proximity to the MRT station, which would increase the construction cost and the complexity of the project,' he said, adding that a contractor-developer might therefore be more confident that they could manage the construction process.

Homes at Nin Residences - which is made up of mostly one- and two-bedroom units - were sold at between $1,000 psf and $1,400 psf.

Sub-sales of 8@Woodleigh, another nearby property development, were made at between $980 psf and $1,330 psf.

Property experts estimate that the selling price of the new development could be around $1,000 psf.

 

[Jazitt]

OK so what is going to happen to the property market? Looks like global slowdown if not crash on the way!

 

[jq75]

Sales of new private homes remain steady in July
Published on Aug 15, 2011

By Esther Teo
New private home sales remained steady with 1,386 homes sold last month, in line with the 1,394 homes sold in June.

Top selling projects include The Miltonia Residences with 149 units sold and Seastrand, which sold 120 units last month.

 

[jq75]

Lower housing grants for higher earners

Published on Aug 16, 2011
By Daryl Chin




HIGHER earners who want to buy executive condominiums will be eligible for housing grants - but they will not be as big as what lower earners will get.

The monthly household income ceiling has been raised from $10,000 to $12,000. However, National Development Minister Khaw Boon Wan yesterday announced a 'fairer', tiered system to take into account the greater earning power of those who are now eligible.

Buyers with a monthly household income of $10,000 can still receive the full $30,000 Central Provident Fund Housing Grant.

But any household earning between $10,000 and $11,000, will receive $20,000, while those making more than that will get $10,000

'I think it's fair,' Mr Khaw said yesterday in Mandarin. 'If your income is higher, naturally you won't need the subsidies as much as those earning less than you. (Thus), the higher your income, the lower the grant.'

He told reporters at The Pinnacle @ Duxton: 'Even for those earning more, we will still give them grants, albeit in smaller amounts. I feel this would make for a fairer overall system, and people are more likely to be able to accept it.'

ERA Realty's Eugene Lim said buyers will still welcome the raised income ceiling, even though the grant is disbursed in tiers.

'Previously, those earning between $10,000 and $12,000 would have to buy private property, which is still pricey to them,' he said. 'So now they can come into the executive condominium market and still get a grant, that's a bonus.'

Asked what effect this will have on the private property market, Mr Lim said that mass market private developers will have to price their projects competitively.

Mr Khaw also touched on the Design, Build and Sell Scheme (DBSS), which is currently under review. Introduced in 2005, it aimed to give private developers a chance to take part in the public housing market and introduce more innovative buildings.

But it attracted widespread criticism earlier this year when a project launched in Tampines came with sky high price tags.

Mr Khaw said he is taking his time to review the scheme, but pointed out that the DBSS income ceiling, recently raised to $10,000, is comparable to the current Build-to-Order (BTO) offerings.

'If you believe you can afford DBSS because it's designed by private developers, go ahead, but if you feel that (you can't), then come to us... It really offers a choice for those earning up to $10,000, whether you want DBSS or a five-room HDB flat, our quality is as good as any.'

Analysts The Straits Times spoke to said this might spell the end of the scheme.

PropNex chief executive Mohamed Ismail said: 'To me, DBSS is gone as the Government has suspended all DBSS land sales and the income ceiling for it is unlikely to be raised. Moreover, BTO flats are now in direct competition with it.'

Mr Lim added that typically, BTO flats will always be the cheapest option as the pricing is controlled by the Government. 'But it's different for DBSS, where developers had to bid competitively for the land, and thus factor it into their launch prices. So now developers of DBSS projects yet to launch are relooking their prices.'

 

[jq75]

4-bedroom apartment at The Marq sold for $19m


Published on Aug 30, 2011

The price for the 3,003 sq ft apartment at The Marq on Paterson Hill works out to just under $6,400 per sq foot. The buyer is believed to be from overseas. -- ST PHOTO: NURIA LING

By Cheryl Lim



A BUYER has signed up to pay a record-breaking $19 million for a four-bedroom apartment at The Marq on Paterson Hill.
The posh project near Orchard Road already holds the record in terms of price per square foot but this deal will easily trump it - no mean feat given the softer market for high-end homes.
It is understood the buyer - who is from overseas - has inked a deal to purchase the 3,003 sq ft unit for just under $6,400 per square foot (psf).
The previous record of $5,842 psf was set in May with the sale of a similarly sized four-bedroom unit at The Marq on Paterson Hill, which was built by SC Global Developments.
Sources told The Straits Times that the buyer and his family are living here and have been searching for an apartment for their own stay.
They have apparently visited the unit - which is said to be on a higher floor than the previous record-setter - several times and were finally won over by the views.
The Marq is a lavish freehold project of 66 units spread across two 24-storey towers.
The apartments range from around 3,000 sq ft to 15,000 sq ft - bungalows in the sky, as the marketing blurb goes - and selected ones have a cantilevered 15m pool so swimmers can enjoy views of Orchard Road while doing laps.
This unit in question does not have a pool.
Owners can also call on the on-site concierge and management team, who have undergone a programme by the Guild of Professional English Butlers, no less.
The Marq, which received its temporary occupation permit (TOP) earlier this year, has sold around 28 of its 66 units.
Such benchmark deals are few and far between these days. Aside from these two sales at the Marq, the previous psf record this year was set by an eastern European couple.
They reportedly bought a three-bedroom apartment at The Orchard Residences for about $4,800 psf or nearly $8.7 million.
But despite these headline-making prices, industry observers point out that they are rare deals and not to be seen as indicators that values in the luxury home segment are creeping back up.
A recent ** Richard Ellis report showed that prices of luxury property in Singapore declined 1.7 per cent in the three months to June 30 from the previous quarter as buyers turned cautious in the face of market uncertainty.
Rents were down 1.9 per cent, a trend that is likely to continue given the increased supply of upmarket apartments and less generous housing packages for expatriates.
Investors and speculators are also being deterred by the hefty stamp duties of as much as 16 per cent, imposed on properties that are sold within the first year of purchase.
Despite the softer market, analysts still expect that wealthy people will be keen to sink their money into Singapore.
Mr Tan Kok Keong, head of research and consultancy for OrangeTee, said: 'Across Asia, Singapore comes up tops as a safe place to put your money. The country has a stable economy, it's a very liveable city... Singapore tops quite a few lists.'