Property News!

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July 18, 2008
Prime residential rents could fall 4.5% by year end
By Nicholas Fang
RESIDENTIAL rents in Singapore's prime districts could drop by 4.5 per cent by year end, amid fears of a longer-than-expected downturn in the United States.
Property consultant Jones Lang LaSalle (JLL) said the high rentals seen in the Republic's prime districts last year are now facing downward pressure.

Prime properties are typically located in districts nine to 11 with units ranging in size from 500 to 2,000 sq ft.

JLL South-east Asia and Singapore managing director Chris Fossick said in a press conference yesterday: 'Expatriates with lower housing budgets are moving out to the non-prime market, causing typical prime rentals to ease marginally in the first half of this year.'

According to JLL, luxury prime property rentals softened by 1 per cent in the year-to-date while typical prime rents weakened by 2 per cent.

Said JLL: 'With the US economy facing the potential of a longer downturn than expected due to the sub-prime woes, credit crunch and rising inflation, market sentiments continue to weaken in Singapore.

'The level of residential collective sales has dropped to only two transactions worth $55.3 million in the first half of the year compared with51 transactions worth some $9.33 billion over the same period last year.'

JLL forecasts that average resale prices in the central district are expected to ease about 1 per cent year-on-year by next year while mass-market resale prices will most likely maintain current levels.

Meanwhile, prices in the luxury prime market are expected to contract the most, falling some 11 to 13 per cent year-on-year next year.

However, Mr Fossick believes that once the US housing crisis passes, a recovery in this region will be swift given the sentiment-driven nature of the industry.

'The uncertainty in the US is unlikely to clear up in the next six months, but if things begin to look up after that, we could see a rapid turnaround here as soon as early next year.'

 

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July 18, 2008
Appeal against Horizon Towers sale dismissed
High Court ruling clears the way for $500m collective sale that was inked 1-1/2 years ago
By Joyce Teo
THE drawn-out battle over the $500 million collective sale of Horizon Towers has moved one step closer to a conclusion after the High Court threw out an appeal by objecting owners.
Yesterday's ruling means the sale of the Leonie Hill estate, first inked in January last year, can proceed - unless the objectors pursue one final possible avenue of appeal to the Court of Appeal. Some are considering this option.

The case marks a win for Mr K. Shanmugam in his final appearance as a litigator on April 30 before becoming Law Minister. He appeared before High Court Justice Choo Han Teck on behalf of the buyers, Hotel Properties (HPL) and its two partners.

HPL executive director Christopher Lim said: 'We hope to move forward with it after 1-1/2 years of signing the agreement.'

They had inked a deal to buy the 99-year leasehold estate for less than $850 per sq ft of gross floor area, before prices shot up dramatically in last year's bull market.

Some sellers were unhappy with what they regarded as a low price, particularly after a neighbouring development sold for more than double that price. Others, including the objectors, never wanted to sell from day one.

The objectors had argued, for example, that the sales committee had acted in bad faith in the way it handled an alternative offer of $510 million from another firm as well as the way it distributed the sale proceeds.

Justice Choo, in his judgment, dismissed the appeal saying there was no error of law to justify overturning a decision of the Strata Titles Board (STB) to allow the sale to go ahead. The STB had found that the sales committee had made a 'judgment call' to proceed with the offer.

The objectors did not prove the committee had acted in bad faith, he said. This was an issue of fact, not law, so it was within the purview of the STB, he said.

'From the submissions and supporting documents, it appears that there may have been intrigue in the course of the en bloc sale from the day the SC (sales committee) was created to the proceedings before the STB,' said Justice Choo.

'It is questionable, however, whether the STB was the forum to resolve all questions arising from secret manoeuvres of the different factions among the subsidiary proprietors.'

The STB is not a court but a statutory tribunal, he added.

The Horizon Towers case was the first collective sale where the majority owners were slapped with a lawsuit for alleged breach of contract.

In late June, Justice Choo also dismissed an appeal by objecting owners of another large collective sale site - Gillman Heights. CapitaLand is the lead buyer of the $548 million site in Alexandra Road

 

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July 24, 2008
Vandals keen on en-bloc sale damage cars
Lexus and Toyota vandalised in the latest attacks in Laguna Park
By Carolyn Quek
HUNGER for en-bloc dollars looks to have turned vicious at a quiet private estate in East Coast.
On Tuesday night, two residents of the 530-unit Laguna Park estate discovered that their cars had been doused with a corrosive liquid, possibly paint thinner.

They were among the residents who had not yet agreed to put the seaside development up for sale. Earlier this month, two other cars belonging to the dissenting group were also vandalised.

Residents claim they were the latest of several cases of vandalism that began after the possibility of going en-bloc arose last December.

The estate has until the end of this year to gather an 80 per cent vote to put it up for sale. But so far, residents say less than 65 per cent are onboard.

Residents have been told by a property valuer that an average unit could be worth more than $2.1 million and the penthouses almost $4 million if the estate goes en-bloc. A resident said the market rate for a normal unit now is about $1.3 million.

Some of the holdouts have lived in Laguna Park since it was built in 1977, while others have been there for many years.

Some residents told The Straits Times they were surprised that the sale has fostered so much acrimony.

Five cars have been vandalised in recent weeks, said the outgoing chairman of the condominium's management committee, Mr Chua SC, who declined to give his full name. Some vehicles were doused with a corrosive liquid while others were scratched and splashed with black paint.

Police reports have been made and investigations are under way.

An independent analyst said residents sometimes do strange things in the hopes of pushing through an en bloc sale.

'But resorting to criminal acts...this would be the first time,' said Mr Ku Swee Yong, Savills' director of marketing and business development.

The vandalism could ultimately be a futile exercise with the cooling property market, said Mr Ku.

'It's a bit of a long shot in these market conditions to find buyers.'

Laguna Park residents told The Straits Times yesterday that they believed the vehicle attacks were 'inside jobs' committed by people who support the en-bloc deal.

If this proves true, Mr Chua thinks it is a 'very stupid, silly and naive way of trying to get people to sign'.

'I don't think this is the right way to do it,' said an agitated Mr Chua, who had the logo ripped off his Nissan about three weeks ago.

Mr Robin Sng, a company director, owns one of the cars damaged on Tuesday night. The corrosive liquid ate away the paint on the bonnet, door and bumper of his four-year-old Lexus.

'I feel frightened,' he said.

A brand new Toyota parked 50m away was also vandalised on the same night.

A resident diligently went round the estate's dustbins and found a can of paint remover in a rubbish bin near the carpark. The can was taken away as evidence by the police, who are investigating the rash of vandalism.

Mr Chua said he told residents at a recent annual general meeting that something had to be done about the cases.

Residents earlier shot down the idea of installing surveillance cameras, he said.

'Now I suppose it has become urgent enough to reactivate the idea.'

 

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PropNex to fire non-performing agents this week

23 July 2008 2200 hrs (SST)


SINGAPORE : One of Singapore's biggest real estate agencies, PropNex Realty, is firing more than one-third of its agents. According to its CEO, the move is aimed at cleaning up the profession.

PropNex is firing those who have been with them for over a year, but have yet to submit a single transaction. About 2,800 agents currently on its list will be affected.

The agents were first given a choice to remain as PropNex agents by signing up for Professional Indemnity Insurance as well as a refresher course.

This group is seen as the riskiest for consumers as they may not be as updated on industry changes. There is also the possibility that this group may not be declaring their transactions, which poses a problem when consumers consult the agency and find that there are no records of the deal.

Mohamed Ismail, CEO of PropNex Realty, said: "Consumers are not protected in terms of professional standards provided by the agent. There's a lot of concern and a call for industry to be regulated.

"This did not happen in the last couple of years, so now the initiative should be for big players to self-regulate and move forward."

A lack of direct and stiff regulation for housing agents has allowed the existence of what some industry players call "cowboy" agents, who profit by flouting rules, and leaving customers and their agencies to deal with lapses.

So industry players said it is time the agencies do something about it.

"It would be forward-looking for any agency (to) ensure that their agents are properly trained, ... professional, ethical and exercise some kind of control," said Low Swee Kim, Vice President at the Institute of Estate Agents.

The industry first tried to regulate agents with a qualification examination, called the Common Examination for House Agents. But since it was not mandatory, it did not have the desired impact of setting a minimun standard for housing agents.

The Institute of Estate Agents (IEA) has also been pushing for second-tier licensing, but to no avail. Currently, only agencies are licensed.

A housing agent database pioneered by the IEA has also fallen short so far, because not all real estate agents have opted in.

Industry players compare this situation to that of the insurance industry, where agents are guided by tough regulations by the Monetary Authority of Singapore.

It is estimated that only one third of real estate agents are properly qualified.

"There's no educational barrier to entry, so anyone can join the industry. Typically, training is only provided if the agent joins a relatively big company where there is some structure in place," said Eugene Lim, Associate Director of ERA Asia Pacific.

As a major realty agency, ERA said it has training systems in place for its agents.

PropNex's CEO said this is just the start of an entire overhaul.

Ismail said: "At the moment, PropNex is at the drawing board working out some policies and programme. If the authorities are not prepared to regulate the industry, some of the big players (like) ourselves, we would like to self-regulate.

"We have to just move and take the lead role to make a difference. And doing that, I think (others) will follow.

"We are in the planning stage and (soon),... we should be able to reveal some of our new policies and procedures that will put a check on all our agents, in terms of their conduct and responsibility."

PropNex is also looking at creating avenues to give redress to consumers who have problems with their agents. - CNA /ls

 

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July 24, 2008
Asking price for collective sale site slashed by 40%
By Fiona Chan
THE owners of a site off Bukit Timah Road are trying again for a collective sale - but after slashing the original price by nearly 40 per cent because of the grim market.
They want $58 million to $60 million for Robin Court, a walk-up block of 15 flats, and No. 1 Robin Drive, a detached house that hosts a preschool.

The new price tag for the 40,518 sq ft parcel works out to $964 to $996 per sq ft (psf) of the total potential floor area of about 62,400 sq ft. This is almost 40 per cent below the $1,500 to $1,600 psf they sought during their first sale attempt last year when the property market was buzzing.

Ms Yong Choon Fah, executive director of Credo Real Estate, which is marketing the District 10 site, said Robin Court's majority owners had agreed to sell en bloc before collective sale rules were changed in October. They are re-inking the sale agreement to lower the reserve price. A developer could build 30 high-end apartments of 2,000 sq ft each. The breakeven cost would be $1,470 to $1,500 psf of floor area, estimated Ms Yong.

The site was first put up for sale in November along with Robin Star, a 10-unit apartment block that is not included in the latest sale effort.

Meanwhile, buyers are being sought for two blocks of apartments at Gallop Gables off Farrer Road. Property firm Knight Frank is inviting expressions of interest for the 38 tenanted apartments, which have been kept for investment since completion of the project in 1997.

The properties are owned by Straits Trading. The indicative price is $1,500 psf, which works out to about $4.5 million for each apartment, or $171 million in total.

 

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uly 25, 2008
S'pore private home prices rise 0.2% in Q2
SINGAPORE'S private housing market continued to cool with prices rising just 0.2 per cent between April and June, compared with 3.7 per cent in the previous quarter.

Latest data released by the Urban Redevelopment Authority (URA) on Friday also showed that condominiums and apartments in prime locations fared worse than those outside these areas.

Prices of non-landed properties in the core central region of the island fell 0.1 per cent in the second quarter, but those in the rest of the central region went up 0.7 per cent, and properties outside the central region rose 0.9 per cent.

Prices of landed properties rose 0.6 per cent, compared with 3.9 per cent in the previous quarter. Prices of detached, semi-detached and terrace houses rose 0.7 per cent, 0.5 per cent and 0.7 per cent respectively.

The URA said the price index for private homes, an indicator of inflation holding at 26-year highs, rose to 177.5 for the three months ended June from 177.2 in the previous three-month period.

'The rates of increase in the prices and rentals of private residential and office properties have moderated in the second quarter as compared to the first quarter,' said the URA, noting that prices are not uniform and vary from project to project.

But there are number of of uncompleted private units in the suburban areas with prices 'at more affordable level', it added.

Prices rose 3.7 per cent in the first quarter of 2008, after soaring 31 per cent in 2007 amid a housing boom fuelled by strong growth in the Singapore economy and by property speculators.

But an uncertain economic outlook and a looming housing glut has threatened to plunge the property market into a prolonged downturn, which could deal a blow to top builders such as CapitaLand , Keppel Land and City Developments.

Sales volume sank to a five-year low in the first quarter of 2008 as government moves to curb property speculation took effect and global economic fears kept buyers at bay.

Second quarter sales more than doubled to over 1,500 units as more projects were launched while some developers cut prices, but volumes are still less than a third of the units sold in the same period last year.

Rentals of private residential homes rose 2.5 per cent during the second quarter - from the 6 per cent increase in the previous quarter.

Supply in the pipeline
There were 67,569 private homes in the pipeline by end of the second quarter. Of these, 43,473 units were still unsold.

About 46,500 units are expected to be ready by 2011.

A total of 1,814 units were launched for sale by developers which was more than the 1,343 units in the first quarter.

More uncompleted units were sold by developers in the second quarter - 1,417 against 730 in the earlier quarter.

Office rentals up 6.3%
Overall rentals for office space, based on leases which began in the second quarter, rose by 6.3 per cent, compared with 7.3 per cent from January to March.

The median rentals were between $14.7 and $6.47 psf per month.

 

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Real estate company charged with illegal use of private apartmentPosted: 12 August 2008 2351 hrs





SINGAPORE: Real estate company PNL Real Estate was charged on Tuesday with the unauthorised change of a residential apartment into a workers' dormitory.

The premises - at Public Mansion, 432 Balestier Road - was also in breach of Section 30(1) of the Fire Safety Act.

The offence came to light in June this year.

Using wooden partitions, the 120.77 square metre apartment had been separated into 32 narrow cubicles. Close to 100 foreign workers were found living in the apartment.

Company representative, General Manager Peter Lye, was present when the charges were read out.

The court will meet again on September 2 to hear the representations from PNL's lawyers.

If found guilty, the company could be fined a maximum S$10,000, or a representative be jailed for six months, or both. - CNA/vm

 

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Aug 15, 2008
S'pore July home sales up
By Fiona Chan

NEW home sales rose for the third month in a row in July, but the pace of growth slowed significantly, with developers launching more homes than they could sell.

Buyers picked up 897 new private homes last month, 12 per cent more than in June, according to the latest numbers released on Friday by the Urban Redevelopment Authority. This comes after new home sales almost doubled between May and June.

Last month's sales were clearly boosted by mass market condominium projects, with two large-scale launches accounting for almost half the whole month's figures.

Clover by the Park in Bishan sold 100 units at a median price of $753 per sq ft (psf), while Livia in Pasir Ris sold 301 apartments at a median price of $671 psf.

Overall, almost nine in 10 homes sold last month cost $1,000 per sq ft or less - the highest price level since URA started compiling monthly sale figures a year ago.

 

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Aug 16, 2008
Home sales up, but pace slowing
Prices slip in July though sales up for 3rd straight month; high-end hard hit

By Fiona Chan

NEW home sales rose last month for the third month in a row, but the pace of growth braked sharply and the prices of sold homes slipped.

Developers sold 897 new private homes in July, 12 per cent more than in June and the highest number since last August, according to data released by the Urban Redevelopment Authority yesterday.

Close to nine out of every 10 homes sold last month were suburban units that cost $1,000 per sq ft (psf) or less. No homes were sold above $4,000 psf for the second consecutive month.

This trend is likely to continue, property consultants said, as persistent caution in the high-end market is causing developers to delay expensive launches.

Even then, developers continued to launch more units across the board than they were able to sell last month, adding to the inventory of unsold homes, observed Mr Nicholas Mak, director of research and consultancy at Knight Frank.

Consultants also predicted that the pattern of rising sales will be reversed this month.

Launches and transactions will probably fall thanks to the perceived unlucky 'Hungry Ghost' period, while market sentiment is expected to remain negative amid more dismal global economic news coming out of the United States and Europe.

Already, last month's sales growth was a far cry from the 77 per cent jump in sales between May and June, consultants said.

Last month's figures were boosted by sales from four large-scale suburban projects that together accounted for almost two-thirds of the whole month's deals. Livia in Pasir Ris saw 301 apartments taken up, at a median price of $671 psf. Of these, four crossed the $750 psf mark, but the rest were well within the $500 to $750 psf range.

Clover by the Park in Bishan sold 100 units at a median price of $753 psf, down slightly from the median $765 psf it had fetched in June.

And Kovan Residences in Kovan Road sold 87 units at a median price of $882 psf - just below its $887 psf in June - while Beacon Heights in St Michael's Road sold 61 units at a median price of $865 psf.

In the mid-tier segment, Parc Sophia in Dhoby Ghaut was the best performer, selling 25 units at a median price of $1,503 psf.

CapitaLand's Wharf Residences near Robertson Quay sold 23 units at a median price of $1,506.

Generally, prices have come under pressure from the gloom in the market and are starting to dip, consultants said.

The lowest transacted price in the suburban region fell 23 per cent last month from June, while the lowest price in the central region fell 7 per cent, noted Dr Chua Yang Liang, Jones Lang LaSalle's head of South-east Asia research.

He said buyers of suburban projects are probably comfortable with paying $650 to $850 psf right now, while those looking for well-located city-fringe homes have budgets of $850 to $1,000 psf.

Sales were dismal in the high-end segment, with only eight units - less than 1 per cent of total sales - transacted above $3,000 psf. At the height of the property fever in July last year, 217 units fetched more than $3,000 psf, accounting for more than 15 per cent of the total units sold then.

But there are still some buyers willing to pay a premium for prime projects, said Mr Li Hiaw Ho, executive director of ** Richard Ellis Research.

He noted that five units were sold at The Hamilton Scotts in Scotts Road, for between $3,000 and $3,676 psf.

 

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Aug 28, 2008
LAGUNA PARK EN-BLOC SPAT
Condo's MC chairman nabbed
Arrest followed 'glued doors' attack at two units this week; he's now out on police bail
By Chong Chee Kin
THE chairman of the management committee at Laguna Park, recently hit by a spate of vandalism, was arrested this week on suspicion of gluing shut two residents' apartment doors.
No charges were brought against Mr Lee Kok Leong, 61, who has since been released on police bail.

He could not be contacted yesterday despite several attempts to do so.

A resident who declined to be named said he was surprised by the news of the arrest as Mr Lee was well respected in the 530-unit East Coast condominium, whose residents are now split over a collective sale.

The resident said of Mr Lee: 'Although he supported the en-bloc sale, he had claimed he was a victim - he said his mailbox was glued shut.'

The rift over the collective sale has turned ugly in recent months after several instances of vandalism against those opposed to the sale.

In the latest incident on Monday, two residents found their apartment doors stuck to the frames by glue.

Both live in Block E, and are against the sale.

In recent months, cars belonging to residents not keen on the sale were splashed with a corrosive liquid or paint, or scratched; mailboxes have also been found with glue in their keyholes.

Some residents were hit more than once.

One resident who found glue on the door to her apartment this week said she was worried that the culprits have accomplices, and did not feel safe.

To address the fears of residents like her, an extraordinary general meeting will be called in October.

Contacted yesterday, a spokesman for the management committee told The Straits Times that the purpose of the meeting was to find out where the residents stood on having closed-circuit television (CCTV) cameras installed.

'The big question is whether they would be willing to pay. Everyone wants security, but who is going to pay for it in the end?

'If they want a CCTV camera outside every unit, it would be very costly,' he said.

The move was in response to the vandalism in the estate, he added.

The possibility of a collective sale of the units in this seaside estate arose last December.

Residents have until the end of this year to secure an 80 per cent vote to put it up for sale.

So far, 65 per cent have indicated their agreement to it.

Residents have been told by a property valuer that an average unit could be worth more than $2.1 million in a collective sale, and the penthouses, almost $4m.

July 30, 2008
EN BLOC VANDALISM
Is Singapore no longer a civilised place?

I READ with alarm the report on Monday, 'Laguna Park vandals strike again'. Furthermore, I have been told about residents in other collective sales being pressured into signing in favour of an en bloc sale.
The idea of proponents resorting to gangster-like tactics like pouring acid on the cars of dissenters comes as a shock to me.

Is Singapore no longer a civilised place?

I live in a housing estate where two previous en-bloc attempts failed.

Neighbours who found out I was not in favour of a collective sale started ignoring me. Some eyed me with dagger-like looks as they walked past.

Friends who came to visit me were refused entry, ostensibly because the carpark was full, they were told.

I appeal to the authorities to take a close look at the effect of collective sales on community spirit and neighbourliness.

I propose that rules be put in place to render such sales invalid if there are proven cases of coercion, threats and bullying of minority groups.


Heng Chee Tong



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'Further proof that en-bloc sales bring out the worst in Singaporeans.'

MRS DEV NAIR: 'I refer to Monday's report, 'Laguna Park vandals strike again'. Here is further proof, if any more is needed, that en bloc property sales bring out the worst in Singaporeans. All the effort the government puts into creating a more gracious society is negated by this one piece of legislation allowing such sales. In our own estate we have seen jeering at meetings, microphones being snatched away from speakers, faeces being thrown at people's doors and the like. It is surprising that despite such ugliness and the several acrimonious court cases, the authorities do not seem to be taking action to ameliorate the situation. Even the new amendments to the Land Titles (Strata) Act have not succeeded in preventing the boorish behaviour of people bent on making money from the unhappiness of others. Isn't it high time the authorities re-looked the legislation allowing collective sales in the light of the higher goal of developing a gracious society?'


'The same is happening at other estates.'

MR TAN KENG ANN: 'I assure the Laguna Park victims of en bloc vandalism that they are not alone. The same is happening at other estates and where I live at Green Lodge. My apartment was plastered with a poster 'Trouble maker' and a neighbour had the marque of his Mercedes Benz car ripped off. We reported the incidents to the police and the managing agent. My neighbour and I had questioned the maintenance of the estate and the collective sale issue. It is time for the Ministry of Law to act. The social cost of such sales is too heavy if it carries on this way. I didn't buy a condominium only to be pushed out by my neighbours under duress.'


'It is imperative that the Ministry of Law act, and the sooner the better.'

MS MEENAKSHI DO NIN: 'I fear that similar threats and acts of vandalism could happen in the estate where I live too. Like Laguna Park, an interested group set in motion the preliminaries for a collective sale. I read that the Ministry of Law is planning a review of the revised legislation, which took effect on Oct 4 last year. The acts of vandalism and aggression at Laguna Park suggest that it is indeed time to do so. It is imperative that the Ministry of Law act, and the sooner the better.'

 

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uly 28, 2008
LAGUNA PARK VANDALS STRIKE AGAIN
Resident's usual vigilance slips, and car is hit
Most vandalised cars belong to those yet to sign collective sale deal

By Carolyn Quek
THE Laguna Park car vandals have struck again: At least two more cars have been hit, including one which had already been targeted before.

A brand-new Toyota Altis was found scratched last Saturday.

The other car, a silver Nissan Cefiro, understood to have already been sprayed with black paint last week, was also scratched on Saturday. Its owner confirmed these details but declined to be named.

The Straits Times reported last Thursday that several cars in the estate had been damaged - sprayed with black paint or a corrosive liquid, or scratched. Residents there are divided over putting the place up for a collective sale.

Residents of the 530-unit development in Marine Parade Road say the three latest attacks bring the total number of vandalism cases to at least nine in the last month.

Coincidentally, all but one of the cars belong to owners who have not yet agreed to the sale.

The owner of the Altis, Mr Lau Cher Chye, said he has been parking his three-month- old car near the security guard post at the condominium's entrance as a precaution after reading the report about the spate of vandalism.

The 57-year-old financial adviser said: 'My wife and I thought we would be targeted soon.'

True enough, it happened last Saturday afternoon - on the one occasion when the couple had parked their car away from the guard post. They had just returned from the supermarket at 3.45pm and had many bags of groceries to lug home, so they parked the car nearer their block, Mr Lau explained.

He added that since they were going out that evening, the car would be left there for only a couple of hours.

As it turned out, that was enough time for several gashes to be made on the doors on one side of the champagne-coloured car.

Like other affected residents, Mr Lau said he believed he became a victim because he did not put his signature down for the collective sale.

'It is quite obvious. In one month, there are already so many cases, and most victims have not given their consent yet. Why such a coincidence?' he asked.

Nothing like this has happened to him before in his 30 years there, he said.

As of last Saturday, close to 64 per cent of home owners had voted for the proposed sale, according to notices put up around the estate.

The sales committee has until the end of the year to garner the 80 per cent vote needed to proceed with the deal.

A distraught Mr Lau said: 'We are very upset by this act of gangsterism. We love this estate. It's been very peaceful all this while. That's why we refuse to sign.'

He has made a police report but has not had repairs done to the car yet. He will also park his car near the guard post from now on, he said.

The estate's management committee will hold a dialogue with residents this Saturday to discuss the vandalism problem.

Notices posted around the estate said the committee would look into installing closed-circuit television cameras, and added that the management took 'a very serious view of the matter' and would hand over offenders to the authorities.

 

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Aug 28, 2008
Condo site near Circle Line station up for sale
By Fiona Chan
A LAND plot for a condominium has been made available for sale in Serangoon Avenue 3, next to the Lorong Chuan MRT Station on the new Circle Line.

Despite lacklustre activity in the private housing market, property consultants expect this 1.39ha site to be favourably received, given its choice location.

'Although the current cautious mood and slow sale activity in the residential market have diminished developers' appetite for development sites, there is a high probability that the site will be released for sale by tender because of its favourable location with good surrounding amenities,' said Mr Nicholas Mak, director of research and consultancy at Knight Frank.

The plot is adjacent to Nanyang Junior College and near other schools such as St Gabriel's Primary and the Australian International School. It is also close to Serangoon Gardens and the Chomp Chomp food centre, as well as the mega mall in the future Serangoon Hub.

Mr Mak expects site bids of between $83 million and $107 million, or $200 to $255 per sq ft (psf) of potential gross floor area.

Mr Ku Swee Yong, director of business development and marketing at Savills Singapore, was slightly more optimistic. He said bids could come in at about $130 million, or $300 per sq ft of potential gross floor area, based on an expected selling price of $850 psf for the finished units.

'There are a couple of smaller developers who may be in need of land, and who may find this medium-sized mass market property suitable,' Mr Ku said. A new condo on the site could host 350 to 400 units of 1,000 to 1,200 sq ft each.

The Government yesterday said the site was open for applications by interested buyers. If a developer submits a minimum acceptable bid, it will trigger a public tender for others to submit offers.

 

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Aug 27, 2008
Tampines site: Sole bid rejected
THE sole bid for a Tampines condominium site overlooking Bedok Reservoir has been shot down for being too low.

Boon Keng Development's optimistic offer of $84.6 million, or $118 per sq ft (psf), for the site was just not enough, said the Urban Redevelopment Authority (URA) yesterday.

Consultants were not surprised that the bid was rejected.

They had previously said that anything from $150 to $230 psf would have been more reasonable as apartments on the 3.2ha site could sell for up to $700 psf.

According to Knight Frank's director of research and consultancy, Mr Nicholas Mak: 'If the Government had accepted it, it would be taken as a signal that it is lowering its reserve price for all other sites.

'Or (a signal) the Government is of the opinion that the land price has fallen to the same level as that during the 1998 recession.

'Even then, the last piece of government land sold in 1997 before site tenders were suspended because of the recession was $171 psf for a piece of land at Hougang Street 11.

'So it was too optimistic to expect the government to award this bid.'

The tender for the 99-year residential site at the junction of Tampines Avenue 1 and 10 was launched on June 17 and closed on Aug 12.

MICHELLE TAY

Aug 27, 2008
Home prices stable till 2010: Wing Tai
It is in no rush to launch Ardmore Park sites despite softening market
By Fiona Chan
PROPERTY developer Wing Tai Holdings is in no hurry to launch the two sites it owns in the prestigious Ardmore Park area: the Ardmore Park condominium and Anderson 18.

Wing Tai chairman Cheng Wai Keung said yesterday that although home prices are softening, he expects them to remain mostly stable until at least 2010.

This is because projects that are being completed this year and next were originally sold at relatively low prices in 2005 and 2006, so there is no urgency for buyers of these projects to unload their units.

'Developers are also quite strong financially, so if they can hold and allow the orderly release of units, I do not see prices dropping drastically,' he told reporters and analysts at the release of Wing Tai's full-year results.

Beyond 2010, however, the situation may change. Projects to be completed then were launched at 'very high prices' last year, and if the economy does not improve by then, these expensive apartments may flood the market while financially strong developers will probably also weaken, Mr Cheng said.

But he added that while prices have softened, it is not because Singapore's economic fundamentals have worsened but rather because 'traders', or speculators, have left the market. 'I maintain that fundamentals are sound,' he said.

In fact, Mr Cheng said he is prepared to hold out for prices to reach $4,000 per sq ft (psf) again at Ardmore Park. 'Even at the peak, when they were talking about $4,000 psf, I still think that was relatively cheap, compared to values in the world and in Singapore.'

He added that Wing Tai owns two of the three sites to be launched in the Ardmore Park area. SC Global has the third, The Ardmore. 'We are the ones who will set the price; if we never lower prices, how can it lose value?'

For now, Wing Tai has already locked in construction costs for Ardmore Park and is renting out the units in Anderson 18 rather than tearing down the building for redevelopment.

In the meantime, the developer may launch some of the other sites in its land bank this year or next, said Wing Tai's chief operating officer Tan Hwee Bin.

Belle Vue Residences in Oxley Walk will be launch-ready next month, while a 99-year leasehold site in Alexandra Road near the Redhill MRT Station will obtain all the necessary approvals by the year end.

Ms Tan said the group will position the Alexandra Road condo as a mid-tier project minutes away from Orchard Road, and may bring to it some of the features it has used in its high-end Draycott8 development.

For the past year, slower home sales have taken their toll on the performance of the property and retail group.

Wing Tai's fourth-quarter net profit fell 60 per cent to $96.3 million, dragging down full-year net profit 40 per cent to $229.4 million. Revenue more than halved both in the fourth quarter, to $107.3 million, and in the full year, to $428.2 million.

Earnings per share dropped to 30.11 cents for the year to June 30, from 53.12 cents the previous year. Net asset value per share slipped to $2.03 as at June 30, from $2.07 a year ago.

Wing Tai is proposing a dividend of six cents per share for the year, comprising a first and final dividend of three cents and a special dividend of three cents.

 

[jq75]

Aug 26, 2008
Sharp fall in property prices unlikely
But there are more people keen to sell than buy now, says DTZ study
By Fiona Chan
SINGAPORE'S property market presents plenty of buying opportunities for institutional investors now that it has cooled somewhat, according to a study by property firm DTZ Debenham Tie Leung.

But buyers waiting for a major price correction will be disappointed.

While the growth in prices may slow, there is unlikely to be a significant fall in property prices here, said Mr John Stinson, DTZ's regional director of sales and investments for Asia-Pacific's capital markets.

'Singapore hasn't had a long boom, unlike some other countries... I don't think there will be a repricing,' he told reporters yesterday at a briefing on Money Into Property, DTZ's latest research report about investing in Asia-Pacific property.

The report is directed at institutional property investors, who can have a significant impact on the property market, given that they buy and sell large numbers of properties.

Mr Stinson also said the Government's measures to boost Singapore's population could prop up demand for property and support prices.

So far, no recent transactions by institutional investors have reflected a repricing in the market, added Mr Shaun Poh, DTZ's senior director for investment advisory services and auctions.

'Sellers here have become more realistic and lowered their expectations,' he added.

But because their expectations were so high previously, this has not necessarily led to lower transacted prices, he said.

What it has actually resulted in is more investors coming back to look at properties that may have previously been overpriced but are now open to negotiation, Mr Poh said.

Currently, there are many more people interested in selling Singapore properties than in buying them, DTZ's study showed.

It polled investors and found that 12 per cent of them intend to sell their properties in Singapore soon, while fewer than 5 per cent plan to buy properties here.

This is creating a situation quite different from the one last year, when there was no lack of demand for properties but very few available for sale.

Now, growth funds and some opportunistic investors are pulling out of the plateauing Singapore market, at a time when owners - including banks, foreign firms and opportunistic funds - are becoming more willing to sell.

'There is an increasing number of buying opportunities in gateway markets such as Singapore, Hong Kong and Tokyo,' said Mr Stinson.

'Six months ago, it wasn't about whether you wanted to buy property, but whether you were lucky enough to win the race.'

Interest in Singapore properties remains high, however, especially in the logistics and industrial market. This sector still offers a 'decent return' as growth has not been as rapid as in other sectors, said Mr Poh.

Commercial assets in Singapore are also in demand to some extent, but the residential sector is likely to turn in a weak performance in the investment market this year, DTZ said in its report.

'Given the cautious economic outlook, investor focus for the rest of the year would be on occupier fundamentals in the commercial and industrial sectors,' it added.

These fundamentals include, for example, the quality of the buildings and their tenants.

While repricing is not an apparent risk in Singapore's property market, the Asia-Pacific region is facing an average repricing of 25 to 100 basis points, or 0.25 per cent to 1 per cent, Mr Stinson said.

The markets that will be the worst hit include Japan, Australia and New Zealand.

 

[jq75]

Aug 26, 2008
Lian Beng wins coveted Ritz-Carlton Residences job
By Jessica Cheam
HOME-GROWN contractor Lian Beng Group has clinched the contract to build Singapore's most prestigious brand-name residences.

The mainboard-listed firm yesterday announced it has won a $99.5 million award to build the Ritz-Carlton Residences - the five-star hotel brand's only such project in Asia.

The award marks Lian Beng's entry into the high-end, luxury property market. The firm has set up a new unit, Millennium International Builders, which will build the project and focus on expanding into the luxury property market.

Lian Beng's managing director, Mr Ong Pang Aik, told The Straits Times there is a perception that ultra-luxury construction projects go only to foreign companies.

'So we're proud that a local firm has won this award. It's the first of many to come for Millennium,' he said.

There was strong competition for the tender, with many foreign contenders, said Mr Ong.

'But we have 30 years of experience, and in recent years handled many technically challenging projects, and I believe this - and our attractive tender price - gave us an edge,' he added.

All the 56 units at the Ritz-Carlton Residences in Cairnhill will come with designer fittings and appliances.

Mr Ong said this is an opportunity for Lian Beng to expand its foothold in the construction of niche projects which require specialised technical knowledge in dealing with challenging design features.

Among the features of the property, located on the site of the former Horizon View, are a lap pool, a library, a wine cellar, a kitchen and a 24-hour concierge service managed by the Ritz-Carlton.

The 32-storey project, which offers three- and four-bedroom units and two penthouses, has already sold some units - at more than $5,000 psf last year.

Lian Beng's latest foray is a marked contrast from the basic HDB flats it started building when it was set up in 1973.

Although it still builds HDB flats, Lian Beng has moved on to private mass-market condos and commercial projects.

It has also moved selectively into property development, such as Kovan Residences, of which it has a 19 per cent stake.

This latest contract will boost Lian Beng's order book to about $770 million.

The firm recently reported a tripling of its full-year net profit to $11.9 million, up from $3.5 million a year ago, on the back of the recent building boom.

Mr Ong said yesterday that surging construction costs will not be a factor in building the Residences as the firm has already 'locked in' the supply of materials needed.

The Ritz-Carlton project is a partnership between Ritz-Carlton and Hayden Properties, which is a 50-50 joint venture between real estate firm KOP Capital and Emirates Investment Group unit Emirates Tarian Capital.

Hayden's group chief executive, Ms Ong Chih Ching, said yesterday the new partnership is 'a reflection of our belief in working with homegrown companies'.

Lian Beng said it will begin construction this quarter. The project is due for completion by the end of 2010.

 

[jq75]

Oct 2, 2008
The MRT guide to home prices
Buyers increasingly keen on units near stations, which can command up to a 20% premium

By Fiona Chan
HOME seeker Wan Kum Wai is hunting for a flat that is well-located - specifically, within walking distance of an MRT station.
For this convenience, the multimedia designer and his wife Jessie are willing to pay 10 to 20 per cent more than they would for a home a few bus stops away from a station.

'We don't drive, and the cost of living is running high,' he said. 'We don't mind paying more because we think this will help us save on transportation costs and other expenses in the long run.'

In an era of sky-high petrol prices, multiplying Electronic Road Pricing gantries and increasing worries over environmental degradation, the all-important 'location, location, location' element of a home purchase has taken on a new slant.

While the classic prime districts of 9, 10, 11 are still sought after, home buyers are also increasingly keen on properties near MRT stations.

Apart from non-drivers, MRT-accessible homes also attract buyers with school-going children as well as investors who want to rent the units to expatriates, many of whom rely heavily on public transport, say property agents.

Ms Mylene Kwan, a PropNex agent who is helping Mr Wan find a home, said some of her clients have only one priority: to be near an MRT station.

'Many of them don't drive, so it's very important to these buyers,' she said.

But such proximity comes at a price.

Ms Kwan estimated that HDB flats with this privilege have their valuations alone jacked up by at least $20,000 or $30,000, and buyers often pay even more in cash on top of that.

The most popular HDB flats near MRT stations are those close to town, such as in the Tiong Bahru, Redhill and Queenstown areas, she said.

But even in the suburbs, a nearby station can give a big boost to prices.

In Woodlands, owners of flats near the MRT station are asking $40,000 to $50,000 above valuation just because of the location, said Ms Rohaizah Ramjan, another PropNex agent.

Whenever these flats come on the market, they get snapped up within two or three weeks, she added. For 'normal ones' further from the station, it can take a few months for a sale to be closed.

'Flats near MRT stations are harder to come by, because owners are comfortable there and don't want to sell,' she said. 'So if a buyer has the budget and they see a well-located flat for sale, they just grab.'

The same principle applies to private property. Condominiums near MRT stations can command a premium of up to 20 per cent over similar units a bit further away, said Mr Eric Cheng, executive director of HSR Property Group.

The price difference stems partly from the convenience of these homes, but is also due to their limited supply, he added.

'If you look at the whole map of Singapore, I dare say only about half the MRT stations have condos right next door. Of course, they command a premium, a good 10 to 20 per cent above neighbouring properties 10 minutes' walk away.'

At Tiong Bahru MRT station, for instance, new condos that are at the doorstep of the station - such as Twin Regency and Regency Heights in Kim Tian Road - fetch $1,240 per sq ft (psf) on average.

About five to 10 minutes away, prices average $1,072 psf, or about 15 per cent less, at the equally new The Regency at Tiong Bahru on Chay Yan Street.

'Most of these units are rarely on the market,' said Mr Cheng. 'Even if the owners are not staying in them, they might not want to sell because they can get very high rental returns.'

Still, not all MRT stations are equal. Property values can differ widely between two consecutive stops, such as in the case of Novena and Toa Payoh, where condos around the former are almost double the price of those around the latter, according to an extensive analysis done by property firm Savills Singapore.

Even stations within a few kilometres of each other can see significantly different prices.

Savills' data showed that condos around the Dhoby Ghaut station, for instance, fetched an average of around $1,600 psf in the first six months of the year. Less than 2km away, condos near the Little India station cost only two-thirds that on average, or $1,071 psf.

'Apart from the proximity to an MRT station, buyers do look at other factors,' said Mr Ku Swee Yong, Savills' director of marketing and business development.

'Equally important is the quality, age and tenure of the project and its facilities, how much the unit can fetch in rentals and what amenities are nearby.'

Mr Ku cited Lavender and Farrer Park MRT stations, separated by just 1.5km in distance but about $200 psf in price.

At Lavender, well-equipped condos such as Citylights boosted prices in the vicinity to an average of $1,104 psf in the first six months of the year. But Farrer Park is surrounded by several smaller condos with minimal facilities, so rents and prices tend to be lower, said Mr Ku.

 

[jq75]

Q3 prices of resale flats up 4.2%; that of private property down 1.8%


02 October 2008 1401 hrs



SINGAPORE: Prices of resale flats rose a preliminary 4.2 per cent in the third quarter of this year.

HDB said on Thursday that the figure is just slightly lower than the 4.5 per cent increase in the second quarter.

For the year-to-date, prices of resale flats have risen almost 13 per cent.

HDB said it has to date launched about 5,000 of the planned supply of 8,400 Build-To-Order (BTO) flats for 2008.

Subject to demand, HDB plans to offer another 3,400 new flats under the BTO system in the remaining months in towns such as Punggol, Sengkang and Yishun.

The new BTO flat supply will be in addition to the sale exercises offering balance flats from previous offers.

HDB will provide more details of the BTO flats when the projects are launched.

It said it will continue to monitor the market situation closely, and new sites will be launched based on assessed market demand.

Unlike resale flats, prices of private property declined in the third quarter.

Flash estimates from the Urban Redevelopment Authority (URA) of Singapore, showed that prices fell 1.8 per cent from the second quarter - the first quarterly contraction in more than four years.

URA also released on Thursday the flash estimates of the price changes in the three geographical regions.

For the third quarter, prices of non-landed private residential properties decreased by two per cent in Core Central Region and 2.1 per cent in Rest of Central Region.

Prices of non-landed properties outside the Central Region rose 0.1 per cent.

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by information on the number of new units sold.

The statistics will be updated four weeks later when URA releases the full third quarter real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured.

 

[jq75]

Oct 3, 2008
Private home prices: First fall in 4-1/2 years
By Fiona Chan
PRICES of private homes have fallen for the first time in four-and-a-half years, marking an end to the property boom that started in 2004.
And prices are likely to keep falling well into next year, squeezed by continuing financial turbulence and a looming global recession, say property consultants.

At least HDB flat owners have some reason to cheer. Resale prices continued to climb in the third quarter, pushing values to their highest level since 1996.

Official estimates yesterday showed that HDB resale prices rose 4.2 per cent in the July to September period, on top of a 4.5 per cent rise in the previous quarter.

But overall prices of private homes slipped 1.8 per cent in the period, after flattening out in the second quarter. Consultants called it a turning point after almost a year of deadlock between buyers and sellers in which sales all but dried up.

Most had expected the drop, given the financial problems in the United States and global economic slowdown.

'It was only a matter of time before overall private home prices started to fall as well,' said Knight Frank's director of research and consultancy Nicholas Mak.

Homes in the city-fringe areas led the price decline, dropping 2.1 per cent in areas ranging from Queenstown and Bishan to Marine Parade and Sentosa. In the choicest Orchard Road, Holland and Bukit Timah districts, prices fell for the second straight quarter. They dipped 2 per cent, after falling 0.1 per cent in the April to June period. But suburban prices held steady and actually rose slightly by 0.1 per cent in the third quarter, on top of a 0.9 per cent rise in the previous three months.

Despite the overall fall in the third quarter, private home prices have risen about 2 per cent since January. But they could fall 10 per cent over the next 12 months, and even more beyond that, said Mr Mak.

'Developers may start to offer 'soft discounts' such as giving vouchers and absorbing stamp duty, and could hold back launches as far as three, four years,' he added.

While sales will slow in the fourth quarter, 'there could be some sparks of activity if interesting projects such as Marina Bay Suites, Sentosa Quayside and The Arte on Thomson Road are launched', said Mr Li Hiaw Ho, executive director of ** Richard Ellis Research.

For the first time since 2006, the Urban Redevelopment Authority did not highlight the number of upcoming private homes in the flash estimates, after concerns that the large headline supply figures did not reflect delayed completions and may further dampen market sentiment.

Housing supply statistics will be released with the full set of third-quarter property data at the end of this month.

But this will be scant comfort for property developers, many of whom saw their shares drop sharply yesterday after analysts downgraded their counters.

Citigroup analyst Wendy Koh predicts that high-end home prices will fall by 25 per cent, the mid-end by 15 per cent and mass market by 5 to 10 per cent.

'I'm definitely going to wait for prices to fall some more; signs are clear that things are going to get worse before they get better,' said potential buyer Chris Low, 28, who works in a technology research firm.

The only bright spot is the HDB market, where resale prices have jumped 12 per cent this year and could rack up a 15 per cent rise for the whole year, said Mr Mohamed Ismail, chief executive of property agency PropNex.

'We can even expect to see this strong demand continuing into next year, mainly because of the time lag to build flats, coupled with stronger demands from PRs due to higher rental costs,' he added.

 

[jq75]

Global financial turmoil
Are banks tightening up on housing loans?

He has
$100,000 in CPF
Steady job
Guarantee from brother.
But 4 banks turn down his loan application to buy flat
HAS the sub-prime loan crisis in the US led to a more cautious approach to housing loans by banks in Singapore?

By Elysa Chen
19 October 2008

HAS the sub-prime loan crisis in the US led to a more cautious approach to housing loans by banks in Singapore?

In a bid to avoid mistakes that sent the American banking industry into a tailspin, Singapore banks have tightened their criteria for approving housing loans, executives who work in the industry told The New Paper.

Security guard Ali (not his real name), for example, failed to secure a housing loan despite having more than $100,000 in his and his wife's CPF ordinary accounts, a salary of $2,200 a month and a guarantee from his brother.

They want a $200,000 loan to buy a $300,000 four-room HDB flat in Pasir Ris for their family of five but their application has been rejected by four banks here.

He said: 'I am in a dilemma because because banks are tightening their lending criteria to prevent the US sub-prime crisis from happening here.'

The reason the banks gave when they called him up to reject his loan application, said Mr Ali, 44, was 'global economic problems'.

Sharp contrast

The current climate is in sharp contrast to the recent but short property boom last year.

Then banks approved loans even to those who did not meet the minimum criteria, such as paying the upfront 20 per cent purchase price.

Said a mortgage broker: 'Banks used to be more relaxed with the loans because if you cannot pay up, they are happy to seize and auction off your property.

'But now, if all investors are hit, which bank will want to be stuck with a property that they will have problems selling?'

In Mr Ali's case, he and his wife are no longer eligible for a HDB loan because he had applied for a loan from HDB before with his previous wife. His current wife had also applied for HDB loans twice before.

The father of a 9-year-old son and a pair of twins aged 17 said he has one credit card from POSB, but pays his bills on time. He is also not servicing any loans.

Even when his brother became the guarantor, Mr Ali's application was rejected.

Mr Ali's 51-year-old brother, a taxi driver, has a fully paid-up five-room flat in Pasir Ris.

He claims he also has 'substantial' savings but declined to elaborate.

Mr Ali's brother said: 'Still, nothing was offered to my brother at all, not even a 70 per cent loan. I cannot understand why the bank does not want my business.'

Mr Ali is not alone in his predicament.

Top property agent Ivy Lee said that a 'handful' of her clients (less than 10) are having difficulties securing 80 per cent bank loans.

Her clients need an 80 per cent loan from the bank to buy homes after forking out 10 per cent of the price in cash and are getting the other 10 per cent from their CPF accounts.

Ms Lee, the chief executive officer of Ivy Lee Realty, said: 'Around two months ago, banks became more stringent and some of my clients were told that they could not be given the maximum loan, and (banks) offered them only 70 or 75 per cent loans instead.

'Previously, I never had such problems of the clients coming back to me saying that they cannot get their housing loans.'

When The New Paper contacted banks, they were vague about what seems to be a tightening of credit.

Mr Dennis Khoo, the general manager of lending at Standard Chartered Bank in Singapore, said: 'Customers with good credit history will find it equally easy to get a loan. It is still business as usual.'

Mr Kevin Lam, the head of personal financial services at United Overseas Bank's loans division, said: 'UOB has always taken a prudent approach in its consumer credit assessment process regardless of market conditions.'

Generally, a housing loan application is assessed based on checks on the borrower's employment, income, credit records, property price and valuation, and the loan amount, said Mr Lam.

So what can Mr Ali do?

Waiting

He is waiting for the housing market to cool before he tries to buy a flat again.

Meanwhile, his family is living with his youngest brother's family in a four-room flat.

He said: 'There are 10 of us squeezed into one flat. I can tolerate for a few more months, but my wife wants to move out urgently.

'If we cannot wait until HDB prices drop, we may have to get a three-room flat instead. We must be flexible until we can afford to upgrade.'

What banks look for in borrowers

What do banks take into consideration before deciding to grant you a housing loan? The New Paper talks to bank mortgage specialists to find out more.

1. AGE

The maximum tenure a 60-year-old can get in some banks is 15 years. It will get harder to secure loans the older you are because a longer tenure would allow you to pay in smaller instalments.

2. INCOME

Salaried employees: CPF statement or payslip, a minimum income of $1,200 a month.
Self-employed: Two years' income tax assessments and earn at least $2,500 a month.
3. GUARANTOR

If a borrower's income is insufficient, a guarantor may help to secure up to 80 per cent of the loan.

4. CREDIT RECORDS

Those who have defaulted payments in any loan in the last six months are likely to face problems in getting a property loan.

5. THE PROPERTY

Some properties are considered unacceptable collateral to banks.

 

[Rio de]

cool

This is the first time I chanced into this useful thread, thanks for the effort