Property News!

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Apr 5, 2011
Prices rise as investments in industrial properties soar
By Gabriel Chen, Finance Correspondent

MORE investors are turning to industrial properties as a result of government cooling measures in the residential market, according to a new report by ** Richard Ellis (CBRE).

Prices, rents and sales for industrial properties have all increased significantly, according to the CBRE figures released yesterday.

Most of the figures related to the first quarter. The latest round of the property market cooling measures came into effect in mid-January.

Prices of 60-year leasehold strata-titled factory space are a case in point.

Capital values of these properties shot up 5 per cent, quarter-on-quarter, in the January to March period this year - to $289 per sq ft (psf) for ground floor units and $213 psf for upper floor units.

Another strong performer was freehold stratatitled warehouse space.

This also leapt in price by about 5 per cent quarter-on-quarter to $449 psf and $392 psf, for ground and upper floor units, respectively.

Monthly rents for industrial properties were also markedly higher, indicating a healthy level of interest from investors who might normally be more active in the residential market, said CBRE.

In the first quarter, the average monthly rent for factory units rose by five cents psf to $1.75 psf and $1.40 psf for ground and upper floor units respectively from the previous quarter.

The average monthly rent for warehouses rose by 3.1 per cent to $1.65 psf for ground floor units and increased by 8 per cent to $1.35 psf for upper floor units, again, on a quarter-on-quarter basis.

Monthly rents for high-tech space rose a more modest 1.9 per cent quarter-on-quarter to $2.65 psf.

The CBRE report also included figures comparing sales volumes for last year with 2009 data.

Sales of factory and warehouse units last year surged 76.3 per cent, with 1,849 caveats lodged last year, compared with 2009.

More warehouses were sold too - with 128 caveats lodged for this type of property, more than double the 45 caveats lodged a year earlier.

'It was observed that capital values for industrial properties were growing at a faster pace than rental values,' said CBRE's director for industrial and logistics services, Mr Bernard Goh.

'This could be because some investors who were priced out of the residential sector invested in industrial properties instead.'

Mr Goh noted that the three rounds of cooling measures imposed on the residential market since October 2009 might also have prompted some residential investors to switch to the industrial market which does not have such stringent restrictions.

Property experts say the strong interest in non-residential sectors, in the wake of the cooling measures, is mainly from more sophisticated types of investors, including real estate investment trusts.

'Investors of non-residential properties are mostly seasoned property players, who are familiar with the property market dynamics, including the profile and some likely risks associated with non-residential properties,' said Mr Ong Kah Seng, property consultancy Cushman and Wakefield's senior manager for Asia-Pacific research.

PRICED OUT?

'It was observed that capital values for industrial properties were growing at a faster pace than rental values... This could be because some investors who were priced out of the residential sector invested in industrial properties instead.'

CBRE's director for industrial and logistics services, Mr Bernard Goh

 

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Apr 7, 2011
Prices on the up and up in Bedok Reservoir
By Daryl Chin

THERE are few better places to witness the rise and rise of suburban condominium prices than Bedok Reservoir.

From the window of his four-room flat in the area, operations officer Harry Quek has a bird's eye view of this.

The condominiums being built just a stone's throw away are a constant reminder to the 49-year-old - who lives with his mother, wife and son - of his desire to upgrade his home.

'I thought if I saved up enough, I would be able to afford one nearby by now,' he says ruefully. 'But looking at prevailing prices and increasing medical expenses as we get older, I doubt that is a possibility.'

Mr Quek says he bought his flat in 1999 for about $260,000 and it can now fetch about $350,000.

But prices for the condominiums have been accelerating much faster and are now beyond his reach.

Within a decade, at least eight condominiums have sprouted up on the edge of Bedok Reservoir, an area more commonly associated with public housing estates.

With each launch, prices have been ratcheting up.

The first couple of developments - Aquarius By The Park and The Clearwater - were launched in 1999 at around $460 to $480 per square foot (psf). Baywater was launched in 2004 at $500 psf.

By the time Waterfront Waves and Waterfront Key were launched in 2008 and 2009 respectively, the prices had hit $800 psf.

The latest launches - Waterfront Gold and Waterfront Isle - have seen units sold at just over $1,000 psf, meaning that launch prices have more than doubled in just over 10 years.

Home owners like Madam Ho Lai Ping, who lives in Aquarius By The Park, are clearly delighted.

She was one of the first few buyers of the project, paying about $610,000 for a 1,540 sq ft unit. Recently, she received a million-dollar offer for it.

But she is not selling. 'It's a gold mine which will appreciate when more amenities like the Bedok Reservoir MRT station come up,' she says.

'When my two children are older and want to move out, I can sell it and move to somewhere smaller and, hopefully, a lot cheaper.'

A 16-station Downtown Line Stage 3 will run underground through the Singapore Expo, Bedok Reservoir, MacPherson, Jalan Besar and Sungei Road areas.

Work will start in the second quarter of this year and be completed by 2017.

Earlier this year, the Housing Board revealed a $1 billion Remaking Our Heartland plan which will benefit Hougang, East Coast and Jurong Lake.

Bedok Reservoir will be spruced up and have new food and beverage outlets and cycling paths over the next five years.

These are some of the reasons HDB upgraders from other areas, like Mr Leong A.K., 43, who currently lives in a four-room unit in Hougang, want to move into the area.

'I'm looking at both public and private but private is getting pricier, which means I should have acted earlier,' he said. 'So far the HDB resale market seems more attractive.'

PropNex spokesman Adam Tan said resale flat prices in Bedok Reservoir might rise with buyers like Mr Leong refocusing their priorities, and with new amenities and better connectivity coming up.

Mr Quek is watching and waiting, hopeful that this might somehow help his upgrading dream.

'Maybe in future, I can sell my place for more and then we'll see,' he said.

 

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Private home sales rebound after 4-month low
By Travis Teo | Posted: 15 April 2011 1308 hrs




SINGAPORE: Sales of private residential properties increased in March, bucking four consecutive months of decline.

Data released on Friday by the Urban Redevelopment Authority (URA) showed that 1,386 private homes were sold last month, up 25 percent on-month from the 1,105 units sold in February.

Including executive condominiums, the total sales would have reached an even more impressive figure of 1,543.

The suburban region saw the most sales, with about 631 units sold while 492 units were sold in the city fringe areas.

The central region saw the least sales, with 263 units sold.

H2O Residences was the most popular development in March, with 255 units sold.

Meanwhile Scotts Square in the city region fetched the highest price tag for a unit, at S$4,334 per square foot.

It was followed in a close second by Boulevard Vue, the only other apartment to cross the S$4,300 mark in March.

Executive condo The Canopy sold the cheapest unit, at S$530 per square foot.

 

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Apr 19, 2011
New launches drive brisk sales in new homes
Prices hold steady as developers play it safe, buyers stream back
By Esther Teo, Property Reporter



STRONG buying interest returned to the property market over the weekend and yesterday, with more than 430 homes snapped up on the back of a series of large property launches.

HDB upgraders came out in full force as suburban homes notched up brisk sales in areas such as Yishun and Upper Changi Road.

Market experts say project launches are a key factor in the strong sales. They expect sales this month to stay robust - likely to beat last month's 1,386 units - with more launches expected in the coming weeks.

Leading the pack was Frasers Centrepoint Homes and Far East Organization's 656-unit Eight Courtyards in Yishun where 202 units found buyers over its weekend preview sale.

The 99-year leasehold homes were priced at an average of $795 per sq ft (psf), which some experts say is noticeably lower than recent new mass market launch prices, and therefore attractive to buyers.

A one-bedroom unit costs $423,000 to $564,000, a two-bedder is between $637,000 and $751,000, while a three-bedder would set a buyer back by $703,000 to $1.03 million.

Nearby Canberra Residences, for example, launched for about $830 psf in January, while NV Residences in Pasir Ris was launched at about that average price in September last year.

However, experts say this is not an early sign of falling prices. Some point to slow sales of executive condo The Canopy, also in Yishun, as a factor that might have led the developers to adopt more cautious pricing in this instance.

Frasers said all its 30 one-bedroom apartments have been sold. Popular unit types also include two-, three- and four-bedroom apartments. HDB upgraders accounted for 63 per cent of buyers.

Singaporeans made up 67 per cent of buyers, permanent residents, 25 per cent while the rest were foreigners.

Hong Leong Holdings' 501-unit Hedges Park in Flora Drive in the Changi area moved 130 units at its preview at an average price of $850 psf.

The 99-year leasehold apartments sold included one- to four-bedroom units of 484 sq ft to 1,798 sq ft, and range in price from $466,000 for a one-bedder to $1.06 million for a four-bedder.

EL Development's 115-unit Skysuites 17 also sold nine units over the weekend, to bring its total sales to 99 units.

All 90 units at freehold project Centra Heights in Sims Avenue were also snapped up during its preview yesterday. Mr Melvin Ho, managing director of developer Fission Group, said the average price was about $1,250 psf - a level he said was 'realistic'.

'If not for the January measures, we would have priced the project about 5 to 10 per cent higher than we have. Our expectations have been tempered. We're not trying for a record or benchmark price,' he added.

A CDL spokesman said 35 units at H2O Residences have been sold this month, bringing the total sold to 290 of the 350 units launched so far.

Experts say strong buying interest means developers are likely to continue to hold prices steady. However, this month's sales are likely to surpass last month's as developers push out their launches to ride on the current wave of buying interest.

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, added that with the economy doing well and with collective sales gaining momentum again, more buyers are entering the market.

He expects new private home sales this month to surpass the 1,500 units mark.

Dennis Wee Group director Chris Koh said buyers are streaming back again after a lull as the cooling measures were digested. But many of the buyers are owner-occupiers, he added.

'Developers watch one another and we are likely to see more projects pushed out as recently launched projects have done quite well. While volumes have increased, however, prices have held steady.'

esthert@sph.com.sg

MOVING UP THE PROPERTY CHAIN

Buyers bought 202 of the 657 units at Eight Courtyards in Yishun.
At Centra Heights in Sims Avenue, all 90 units were snapped up yesterday.
Hedges Park in the Changi area moved 130 units at an average price of $850 psf.
This month's new home sales are likely to beat last month's 1,386 units.

 

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Apr 21, 2011
'Slow take-up' for high-end homes
Sales hurt by global economic turmoil but buyers returning, says top exec at developer
By Esther Teo, Property Reporter

An artist's impression of The Boutiq, a 130-unit freehold project in Killiney Road. Since it went on sale early this month, 39 of the 52 units launched so far have been sold. -- PHOTO: HEETON HOLDINGS

LUXURY home sales in Singapore are still being hurt by economic turmoil in the United States and Europe, although buyers are trickling back, said a top executive at local developer Heeton Holdings.

Another factor is that the Republic is competing with many choice locations as some high-end investors also look to places such as London, Heeton chief operating officer Danny Low said yesterday.

He was speaking on the sidelines of the soft launch of The Boutiq - a 130-unit high-end freehold project in Killiney Road on the former Mitre Hotel site - jointly developed with KSH Holdings and Tee International.

Since the project went on sale early this month, 39 out of the 52 units launched so far have been bought at an average price of $2,350 per sq ft (psf). Half of the buyers were foreign - mostly Malaysians.

Later phases will be priced at a higher level as the initial 10 per cent discount off the list price will be reduced, with more units released, Mr Low said.

Nearby, 84-unit Devonshire Residences sold 53 units at a median price of $2,505 psf last month.

Mr Low said the consortium did not lower its list prices as a result of the Government's property market cooling measures in January.

The consortium had already priced its project lower than its competitors' as it had acquired the site at a 'very good price', he added.

Mr Low said Heeton's other luxury project, the 30-unit iLiv@Grange, will be relaunched in the second half of this year. The Grange Road project has had no sales since it was launched in June last year.

On the differing buyer response to both of its upscale launches, Mr Low said: '(iLiv@Grange) is an even higher-end project above $3,000 psf. The sizes are also larger, so the quantum is larger. It's a different target market.'

Heeton and Koh Brothers' The Lumos project in Leonie Hill, to be completed in July, will also be relaunched this year.

The 53-unit project has sold 19 apartments at an average of about $3,200 psf since it opened for sale in 2007.

On whether luxury home prices will regain their 2007 peak, Mr Low said prices would catch up slowly, but were unlikely to surpass the previous high this year.

The consortium also hopes to launch its recently acquired collective sale site, Camay Court, this year after it completes the purchase in June.

Upcoming new launches include Wing Tai's Foresque Residences in Petir Road, which agents say will be launched at $1,000 psf to $1,200 psf. Auralis at East Coast and H Residences in Telok Kurau are also expected to be previewed soon.

Separately, City Developments said at its annual general meeting yesterday that three more launches - Jean Nouvel Residences, Buckley 9 & 11 and a Segar Road executive condo - are due by June.

Its executive chairman Kwek Leng Beng told The Straits Times that the cooling measures have helped curb speculation and stabilise prices. 'Since then, property prices have come down in some cases or have remained the same in others. Volumes declined initially but have gone up again as a result of the increase in launches by developers.'

Buyers are confident in Singapore's medium- and long-term future, with the Government laying a solid foundation for growth, he added.

 

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Apr 26, 2011
Home prices, sales cool in first quarter
Analysts say slower activity, fall in HDB cash premiums due to cooling measures
By Fiona Chan, Assistant Money Editor

Sales volumes also dropped: Buyers picked up 4 per cent fewer Housing Board resale flats and 20 per cent fewer private homes, according to new data yesterday.


THE housing market kept applying the brakes in the first quarter, as both public and private homes recorded smaller price rises compared with the previous quarter.

Sales volumes also dropped: Buyers picked up 4 per cent fewer Housing Board resale flats and 20 per cent fewer private homes, according to new data yesterday.

In another sign of slower activity, the cash premiums that buyers paid for HDB flats fell as well. The median cash over valuation (COV) fell by $2,000 to $21,000 in the first quarter from $23,000 in the previous quarter, HDB said.

Property analysts attributed these figures to the Government's latest - and toughest - round of cooling measures in January.

HDB resale flat prices rose 1.6 per cent in the first quarter, down from 2.5 per cent in the previous three months, HDB said yesterday.

Private home prices rose 2.2 per cent in the first quarter, lower than the 2.7 per cent gain in the fourth quarter of last year, said the Urban Redevelopment Authority (URA).

But this figure was slightly higher than the previous estimate of a 2.1 per cent rise, implying prices rose in the last weeks of March.

With take-up still strong for new projects last week, there is a chance that the Government may implement a new round of cooling measures after the May 7 General Election, said Standard Chartered analyst Regina Lim. These could include raising the down payment for home purchases, she added.

'We think the Government has refrained from using these measures thus far as they would hurt affordability for first-time home buyers and affect votes in the election,' Ms Lim said in a note.

There are other signs that the demand for homes remains robust, especially in the lower tiers of the market.

Suburban home prices climbed 3.1 per cent in the first quarter, accelerating from a 2.1 per cent rise in the fourth quarter of last year, the URA said yesterday.

The prices of condominium units in city fringe areas also rose by 2 per cent, after advancing 1.9 per cent in the previous three months.

This could be because the cooling measures are forcing home buyers to turn to more affordable mass-market housing, said Colliers International director of research and advisory Chia Siew Chuin.

As for the HDB market, COV levels appear to have rebounded from the first quarter, said property agencies PropNex and ERA. Both said the median COV for flats sold so far this month is back up to $23,000.

But while PropNex said their COVs have risen across all flat types, ERA has observed sharp increases in COVs especially for five-room and executive flats.

Demand is boosted by two sources: HDB dwellers who have given up on upgrading to pricey private homes and are moving to bigger flats instead, and private home owners who are cashing out and moving to HDB flats, said ERA Realty key executive officer Eugene Lim.

'One of my agents recently said someone bought a rare Pasir Ris executive apartment for $95,000 COV,' he said. 'So it's not because the market has bounced back and the cooling measures are not working, but we feel certain types of flats are lifting the market.'

Some analysts yesterday also warned of possible oversupply in 2013 and 2014, when the spate of new projects is completed.

With more supply, private home rents have eased, said Mr Sai Min Chow, a Nomura property analyst. Rents rose 1.2 per cent in the first quarter, down from 2.6 per cent in the previous quarter.

But Knight Frank's head of consultancy and research, Mr Png Poh Soon, believes the greater supply of homes will be balanced by the fact that more foreigners are being drawn to Singapore.

'We've always talked about private home sales averaging 6,000 to 8,000 a year, but 10,000 to 12,000 may be the new norm,' he said.

He expects private home prices to rise by 5 per cent to 10 per cent this year. But Mr Sai thinks luxury home prices will fall by up to 8 per cent and the rest of the market will stay flat.

 

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Apr 26, 2011
High demand for industrial and office space in Q1
DEMAND for office and industrial properties was buoyant in the first three months of the year, new figures show.

Property experts said the strongly performing economy and low interest rates continued to drive keen investor interest in these two sectors.

Latest figures from the Urban Redevelopment Authority show prices of industrial properties rose 8.3 per cent over the preceding quarter's prices, while those of office properties rose 4.9 per cent.

Rents for both also gained strongly. Industrial rents were up 6.3 per cent, while office space rents rose 5.4 per cent.

Analysts said the strong interest in industrial space came as more companies set up new operations or expanded existing capacity in Singapore.

This was due to the healthy recovery in global trade and the strong rebound in Singapore's manufacturing sector in the first quarter of this year.

The industrial property market is likely to enjoy spin-offs from other segments such as retail.

Shop owners might see industrial space as an alternative for production or storage activities, said Mr Ong Kah Seng, senior manager for Asia-Pacific research at Cushman & Wakefield.

Analysts also expect Singapore's office property market to do well. Colliers International data showed that as of the end of last month, monthly gross rents of Grade A office space in the Raffles Place/New Downtown area posted further growth of 8 per cent compared with the previous quarter's figure, hitting $9.72 per sq ft.

CHERYL LIM

 

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URA puts up 3 residential sites for sale
By Julie Quek | Posted: 26 April 2011 1225 hrs

SINGAPORE: The Urban Redevelopment Authority (URA) has released three residential sites for sale on Tuesday.

The two land parcels at Flora Drive and Woodlands Avenue 2 are launched for sale under the Confirmed List of the 1st half 2011 Government Land Sales Programme.

Potentially yielding about 380 housing units, the site at Flora Drive is located in a residential estate in Pasir Ris.

With a site area of about 2.68 hectares, it has a maximum permissible gross floor area of over 37 thousand and 5 hundred (eds: 37,545) square metres.

The second site is located at Woodlands Avenue 2 and Rosewood Drive.

The land parcel can potentially yield about 390 housing units.

The site, with an area of about 2.74 hectares, is near the Republic Polytechnic and Singapore American School.

It has a maximum permissible gross floor area of over 38 thousand (eds: 38,333) square metres.

In addition, the third site at Hillview Avenue is placed under the Reserve List for application for sale.

Potentially yielding about 405 housing units, it has a site area of about 1.26 hectares and a maximum permissible gross floor area of 35,416 square metres.

It's located near the future Cashew and Hillview MRT Stations, which are part of the future Downtown Line 2 Mass Rapid Transit system scheduled for completion in 2015.

Earlier this month, the Housing & Development Board has also released a private residential site at Sengkang Square and Compassvale Drive for sale through the Reserve List.

Together, these four residential sites can potentially yield about 1,885 housing units, offering developers and home-buyers with more choice.

 

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May 3, 2011
Commercial property a big draw
It accounts for over 20% of sales in first quarter of this year
By Cheryl Lim

COMMERCIAL property is fast becoming a hot favourite among investors, going by both the sales figures and loans taken out in the first quarter of this year.

Mixed-use and commercial property accounted for more than 20per cent of total property investment sales in the first three months of the year, and was worth about $2.26 billion, according to data from Colliers International.

Some banks The Straits Times spoke to have reported a rise in customer interest in buying such properties in the first three months of the year.

HSBC estimated a 10 per cent rise in these loan applications, while OCBC said it had recorded double- digit growth in commercial property loan applications since March 2010.

The number of loan applications by Special Purpose Vehicles (SPVs), companies created for a financial transaction, has also risen in the last few months.

Mr Willie Tham, HSBC Singapore's head of commercial banking, said: 'While the interest stems primarily from business owners looking to purchase for their own business use, we have also seen an increase in applications by SPVs, which are acquiring such properties for investment purposes.'

Property watchers say this could indicate that even entities other than businesses and other non-traditional buyers are entering this sector.

Purchasing property through SPVs has its advantages, including a reduction in stamp duty and the means for investors to protect specific assets from creditors if they fall into debt.

Mr Chris Marriott, South-east Asia chief executive of Savills, said commercial property is a good hedge against inflation: 'The 20-year inflation average is 1.7 per cent per annum compared to commercial property growth of 4.3 per cent per annum. At present, rental growth is supporting higher values so short- term gains can outweigh inflation.'

He noted that strong economic fundamentals across all key economic sub-sectors - financial services, manufacturing and tourism - are creating healthy demand.

Singapore's office market is expected to benefit as the country gains importance as a regional business hub within South-east Asia and the Asia-Pacific, said Mr Ashish Manchharam, South-east Asia head of investments at Jones Lang LaSalle.

He is also expecting Grade A office rents to climb a further 10 per cent to 15 per cent this year.

Analysts say recent property market cooling measures may have driven some investors to park their money in commercial property, which is seen as a stable property asset that is less susceptible to policy changes.

Added to that, the financing of commercial property loans is attractive for investors, with some banks offering up to 80 per cent financing for such loans.

Industrial property rents have risen sharply in the first quarter of this year, climbing 8.3 per cent from the previous three months.

Rents for private residential property have also risen, but at a more subdued pace of 2.2 per cent

 

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May 18, 2011
Industrial, commercial projects more popular
Developers having a shot at these amid concerns over residential market
By Cheryl Lim

INCREASING numbers of property developers are dipping their toes into industrial and commercial projects over concerns of a slowing residential housing market.

Higher prices for residential land and uncertainty over another possible round of cooling measures have suddenly made the grittier end of the real estate sector look more appealing.

The past few months have seen keen competition among developers for industrial and commercial sites released under the Government Land Sales programme. A plot in Kaki Bukit Road 4 attracted 18 bids in February while there were 13 offers for an industrial site in Ang Mo Kio Street 62 in March. A commercial site in Paya Lebar Road closed with 10 bids last month.

Developers could also make more money from commercial and industrial buildings if the projects work out.

Some developers told The Straits Times that residential projects typically yield a profit margin of between 15 per cent and 23 per cent, while industrial and commercial properties could reap a profit margin of up to 50 per cent.

Take Wee Hur Development for example. It bought an industrial site in Woodlands Avenue 4 for $22.9 million, or $34 per sq ft per plot ratio (psf ppr). The Straits Times understands that units at the Harvest@Woodlands project were sold at an average of $240 psf.

Listed firm Oxley Holdings is one residential builder trying its hand in the new area with its maiden industrial property project, Oxley BizHub, in Ubi Road 1.

The industrial complex, which occupies an area of 375,153 sq ft, is currently under construction. It consists of three podium blocks and four tower blocks housing 728 factory and warehouse units, and is targeted at clean and light businesses.

Chairman and chief executive Ching Chiat Kwong said Singapore's robust economy has led to more entrepreneurs taking a stab at new businesses and companies planning to expand their operations.

Mr Lim Swee Hoe, director of Aston Investments Development, said businesses may start small but would need facilities for production work, design, and research and development as they grow.

But Mr Lim and Mr Ching said that merely providing space for business operations is not enough these days.

'It's not as easy as just getting an office space somewhere and just starting a business,' said Mr Ching.

'The image and environment play a part in how people perceive a brand, and that carries more weighting nowadays.'

Oxley BizHub tried to integrate lifestyle elements into the building's features, including eco-decks with sky gardens, a swimming pool and a gym.

Mr Ching said the design concept was aimed at changing the perception of how industrial spaces should look.

'People who work there deserve a better place to work too,' he said.

'Providing a working space for a healthier lifestyle will enhance productivity, reduce a high turnover rate and improve morale when workers have to stay to work longer hours.'

The experience developers have in building residential properties gives some of them an edge.

Aston Investments Development's project in Senang Crescent has 'condominium-style' bathrooms in each unit so there are separate toilets for both genders instead of unisex facilities, which are the standard for such properties.

'These new industrial and commercial properties have raised the benchmark on how much you can sell for such spaces,' said Mr Tan Boon Leong, Colliers International's director for industrial services.

In August last year, Oxley paid $158.1 million, or $169 psf ppr, for the Oxley BizHub 60-year leasehold plot. Since its launch, more than 300 of the 728 units have been sold at an average of $677 psf.

But Mr Tan said not all properties will be able to hit such prices, with factors like the leasehold, location and nearby amenities affecting values.

Colliers International said in a report yesterday that the continued economic expansion is expected to shore up demand for industrial properties.

But it added that factors like a slower gross domestic product growth rate of between 4 per cent and 6 per cent this year and global events in the Middle East and Japan should moderate the demand.

This would cause rent, land and capital values of single-user factory and warehouse land to climb by up to 10 per cent over the next 12 months.

 

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May 28, 2011
Stricter security measures for water tanks from July 1
By Feng Zengkun

Water tanks in Singapore will come under new and stricter security requirements from July 1 2011, said the national water agency PUB on Friday. -- PHOTO: NP

WATER tanks in Singapore will come under new and stricter security requirements from July 1 2011, said the national water agency PUB on Friday.

These include more restrictive access to the tanks and mandatory supervision of any maintenance work.

The agency will also check all 14,000 buildings with water tanks here after July 1, to make sure the new measures have been followed.

It said it will monitor the situation and take further action if needed.

The new measures are in response to the dumping of a body in a Woodlands water storage tank on May 16.

The incident was the first since 2002, when five boys gained access to a water storage tank in Paya Lebar and dumped 1kg of washing powder into the tank.



May 28, 2011
Tighter security for water tanks from July
PUB announces measures to step up supervision, restrict access after body-in-tank case
By Feng Zengkun
New security measures

Security for water storage tanks will be beefed up with the following measures taking effect on July 1:

Only building owners and town council and condominium employees will be granted access to the water tanks
Anyone else accessing the water tanks has to be checked by an authorised person
Any site works must be supervised at all times by an authorised person
Water tank covers must be secured by at least two barriers, for example by a lock and a crossbar that requires a spanner to loosen
High quality padlocks should be used to secure doors and water tank covers; keys to the locks must be non-duplicable
Keys to each door and water tank must not be the same; no master keys can be used
Keys for the water tank cover locks must be kept separate from the other keys and access to them should be controlled by a single authorised person
Keys must be returned to the office once the work is completed or at the end of the day

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STRICTER measures will be in place to beef up the security of water storage tanks, following the grisly discovery of a maid's body in the tank of a Housing Board block last week.

These include further restricting access to the water tanks and stepping up supervision of maintenance work carried out near the tanks.

The slew of measures, announced by the national water agency PUB yesterday, kicks in on July 1.

Under the new rules, only building owners and employees of town councils and condominiums will be granted access to the water tanks. They will also be responsible for screening all personnel who are given similar access.

Before, town councils could authorise anyone to hold the keys to the rooftop and water tanks. It is understood some would give the keys to supervisors of sub-contractors doing maintenance work.

From July 1, maintenance works carried out near the storage tanks must also be supervised at all times by an authorised person. High quality padlocks which come with non-duplicable keys must be used to secure doors and water tank covers.

In addition, the covers must be secured by at least two barriers, such as a lock and a crossbar.

The efforts outlined yesterday came after the body of an Indonesian maid was found in the rooftop water tank of Block 686B, Woodlands Drive 73, last Monday. A Bangladeshi cleaner has been charged with the maid's murder.

Angry residents took the Sembawang Town Council, which oversees maintenance of the block, to task for not giving a clear account of what happened and failing to keep its water tanks safe. The town council later agreed to replace the water tank after spooked residents, who were queasy about drinking water from the tank, launched a petition.

Mr George Madhavan, director of PUB's 3P Network which handles corporate communication and public outreach programmes, revealed yesterday that Sembawang Town Council did not contact the agency immediately after the incident.

But he added that PUB will wait for police investigations to be concluded before deciding whether to take action against the town council.

The steps outlined by PUB yesterday came on the back of similar efforts by town councils after the incident, which triggered a public discussion on whether existing measures were sufficient.

Mr Madhavan said yesterday PUB will check all 14,000 buildings with water tanks here after July 1 to ensure the stricter measures have been followed. It will also continue to monitor the situation and may explore further measures such as the installation of alarm systems and security cameras.

Other possible steps it may take include conducting more spot checks and imposing heavier penalties on those who flout the rules. Currently, PUB checks 30 per cent of the buildings every year. Penalties for flouting the rules include a fine of up to $10,000 or up to one year in jail or both.

Town council managers The Straits Times interviewed say they welcomed the stricter measures.

Dr Teo Ho Pin, the coordinating chairman of PAP Town Councils, said some measures could be more specific. He highlighted the new requirement that town council and condo committee members screen workers accessing the water tanks. 'I'm not sure about the details of the screening of personnel, we'll check with PUB on that matter,' he said.

He added he would meet the town councils to discuss how to implement the measures.

Sembawang GRC MP Vikram Nair, who oversees the block where last week's murder took place, said the beefed-up measures were a step in the right direction. The Sembawang Town Council has also implemented other measures, such as installing electronic locks on the roof access doors.

Eight out of 10 residents The Straits Times spoke with from the affected Woodlands block said they were happy with the measures.

Mrs Eadelyn Tan, a 36-year-old housewife, said: 'I think it is a comfort to us, especially the new requirement that the keys cannot be duplicated.'

But she said more needed to be done by other government agencies. 'It is not just a body in the water tank, it is also a murder, and there are safety concerns for the residents.'

 

[jq75]

May 25, 2011
Foreign home buyers hit record in Q1
By Esther Teo, Property Reporter

FOREIGN BUYERS
FOREIGN home buyers snapped up 16 per cent of all private homes sold in the first quarter - the highest quarterly percentage since data became available in 1995.

Experts say the high foreign proportion in the market is because such buyers have been less affected by the rounds of cooling measures which have muted local interest.

The overseas impact has been telling, according to the DTZ Research report that contains the new buying figures.

Its analysis of caveats lodged for both new and secondary sales found that foreigners bought 1,028 units in the three months to March 31. That 16 per cent share of the market tops the previous record of 15 per cent - or 784 units - in the fourth quarter of 2007.

Foreigners were also active in the last quarter of last year when they bought 1,092 units, accounting for 13 per cent of the market.

Demand from permanent residents (PRs) remained stable at 13 per cent in both quarters.

DTZ said Chinese buyers - including permanent residents - also set a record, accounting for 24 per cent of purchases made by non-Singaporeans in the quarter. They have overtaken Malaysians for the first time.

Malaysians have held the top position since the second quarter of 2008 but have seen their market share dip from 24 per cent in the fourth quarter of last year to 21 per cent in the first quarter.

Homes in District 16 - this comprises Bedok and Upper East Coast - saw greater buying interest from foreigners compared with last year.

District 18 - including Tampines and Pasir Ris - and District 23 comprising Hillview and Chua Chu Kang were also increasingly popular.

DTZ's head of South-east Asia research, Ms Chua Chor Hoon, said foreign interest has remained stable at about 1,000 units a quarter over the past 12 months as Singapore has maintained its reputation as a safe investment haven.

The new high is due mainly to a drop in the number of purchases by Singaporeans as the January cooling measures have had a larger impact on them, said Ms Chua, who added that interest from foreigners is expected to remain stable in the next few quarters.

'However, local concerns about high housing prices and the influx of foreigners that were magnified during the recent general election will be a catalyst for the review of immigration and housing policies, which could dampen demand in the residential market in the coming months,' she noted.

Other experts added that interest from foreigners has been sustained due in part to the buzz created by the two integrated resorts and the country's growing strength as a financial hub.

Dr Chua Yang Liang, head of research at Jones Lang LaSalle South-east Asia, said that China's moves to tighten lending policies might have led Chinese buyers to turn to Singapore while some Europeans moving here to work have chosen to buy rather than rent.

'Regional economic conditions - in Singapore, Indonesia and Australia - are strong and this means that foreign buyers are likely to remain active here as Singapore positions itself as a global city,' he added.

Ms Wendy Tang, Knight Frank's director of residential services, said most foreign buyers are Asians with a long-term perspective and attracted to the stability that Singapore offers. The strengthening Singdollar also assures investors that this is a good place to park their cash.

Foreigners also bought more into the high-end market. They accounted for 21 per cent of all the homes sold for $1.5 million and above in the first quarter, up from a 17 per cent share in the previous three months.

January's cooling measures were noted to have made an impact, mostly in the secondary sales market. The number of caveats fell by more than half in February to 745, from 1,664 in January.

But the secondary sales volume rebounded to 1,592 caveats in March as the initial reaction to the cooling measures appeared to wear off, DTZ said.

Private homes smaller than 1,000 sq ft continued to be popular with HDB buyers, with the proportion of such buyers rising from 41 per cent last year to 46 per cent in the first quarter.

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May 28, 2011
RECORD FOREIGN BUYERS
Limit private homes sold to foreigners
'If this trend continues, in a few years' time, foreigners would outstrip Singaporeans in owning private properties.'

MR KHONG KIONG SENG: 'I refer to Wednesday's report ('Foreign home buyers hit record in Q1') and sincerely hope the new National Development Minister Khaw Boon Wan will not just look into the HDB market and its affordability, but also the private property market. If this trend continues, in a few years' time, foreigners would outstrip Singaporeans in owning private properties, and Singaporeans would be able to afford only HDB flats, executive condos or the cheaper private properties in suburban areas.'




'Singapore is too small a country to allow rich foreigners to buy up property.'

MR RONALD LEE SIEW WAH: 'Wednesday's report ('Foreign home buyers hit record in Q1') spells bad news for Singaporeans. Singapore is too small a country to allow rich foreigners to buy up property. The number of millionaires in China and Indonesia outnumber that of Singapore. They are totally price insensitive in buying up private property here and are responsible for driving up private property prices, which in turn will drive up HDB flat prices. I think it's time that the Government stepped in and banned all foreigners from buying property here.'

I WAS shocked to read that the percentage of private homes sold to foreigners in the first quarter had soared ('Foreign home buyers hit record in Q1'; Wednesday).

This shows the cooling measures served to deter only local buyers from buying private homes, but not foreigners.

While many countries allow foreigners to buy homes, they have vast areas of land to share. In a small country like Singapore, where land is the most precious commodity, why do we allow foreigners to purchase private homes and HDB flats, and drive up the property market in the process?

Every private condominium advertisement has the phrase 'foreigners eligible' printed there. It is obvious that developers care only about their profits, and the higher the prices are driven up by foreigners, the better it is for them.

Likewise in high-end condominiums in the Orchard Road area, we see many foreign residents. It is unfortunate that an ordinary Singaporean graduate like me can never afford to stay in the posh area where foreigners make up most of the residents.

It is high time the Government stepped in to address this issue. One way would be to limit the percentage of homes sold to foreigners, including permanent residents, in every private development.

Koh Chin Chin (Madam)

 

[jq75]

May 30, 2011

SIBLINGS' PROPERTY TUSSLE
No need to air dirty linen in court: Judge

He says non-judicial option better to resolve dispute over house left by parents

By K.C. Vijayan, Law Correspondent


THE tug-of-war between well-off siblings over their late parents' property drew fire from a High Court judge who said there was no need for them to air dirty linen in court - included alleging that their late father was a criminal.
Justice Lee Seiu Kin, in judgment grounds released last week which dismissed a suit filed by three sisters against a brother, said it was puzzling why the suit was filed last year as all the siblings were 'rational and intelligent persons'.
He added that they could have chosen an alternative route.
The family feud had pit sisters against brother for a share of their parents' Greenwood Avenue semi-detached house, which is valued at about $3.5 million.
Eldest sister Tang Wai Kheng, 68, was not part of the suit but did provide evidence.
The three sisters, led by Ms Beatrice Tang, 66, had claimed that although the house was registered in their brother's name, their father Tang Yuen Seng had meant the property to be shared equally among the five siblings. Mr Tang died in 1989 and their mother in 2006.
They argued that their father had put the house in their brother Chun Choy's name when he bought it in 1971 because he was running an illegal gambling business. It was a deliberate move designed to throw off the authorities who might ask where he got the money to buy the property, they claimed.
The siblings testified that their father had operated as a runner for illegal gambling syndicates in addition to running a laundry. He eventually moved up the hierarchy and took bets on 4-D and horse races as a small-time illegal bookie and operated his business from his Cairnhill shop. He and his wife were arrested on two occasions after their Cairnhill shop was raided.
The family moved to the Greenwood property where he continued his bookie business until he retired in 1977.
The sisters claimed the property was placed in Chun Choy's name to avoid estate duty. They added that Chun Choy himself had declared at a meeting of the siblings in 1989 that the property did not belong to him. He said he was holding it in trust and would share it equally among all five children.
Mr Tang Chun Choy, 63, countered that his mother had told him when the house was bought that it was meant for him. Part of the purchase price was paid with a housing loan taken out in his name.
His eldest sister also recounted a number of events that showed their parents' intention was to give the house to the son and the others were aware of this.
But Justice Lee found that the two witnesses, youngest sister Wai Kuen, 58, and Chun Choy, a former general manager of a bank who was also a former company director, failed to come out well.
Wai Kuen was an 'uncooperative witness and did not provide logical answers to crucial questions', he said, adding that Chun Choy 'did not come through as a forthright witness either'.
In ruling that the parents had wanted to give the house to the only son after they themselves had died, Justice Lee said that since the house was registered in his name, they believed there was nothing further for them to do to 'give effect to their intention'.
The judge commented the case was more than just a legal dispute and was not a matter 'in which a court of law can produce the best outcome'.
The case is 'a family dispute pitting long-held Chinese values of patrimonial continuity against liberal values of gender equality...' He said the matter could have been better resolved by 'non-judicial adjudication' and he would have ordered a different outcome if he was not constrained by law.
Justice Lee added that Chun Choy had 'on his own steam amassed assets well in excess of the property in dispute... and three of the sisters were not far behind him on that score'.
But there was some motivation for them to go to court over the matter, which was not disclosed to him, including possible bitterness and rivalry.
Justice Lee ordered both parties to bear their own legal costs.

 

[jq75]

May 31, 2011
Private home buyers holding out for better deals
By Cheryl Lim
FEWER private home hunters are rushing to seal deals as many believe that prices will soften further, said property agents.

The cautious mood started after the general election, they said, with both buyers and sellers uncertain of the new government policies that are in store.

A further chill was sent across the market last Friday when new National Development Minister Khaw Boon Wan announced that 3,000 more build-to-order (BTO) flats would be built this year.

Some agents The Straits Times spoke to said nearly 60 per cent of their clients have indicated they are willing to wait for prices to fall, preferring to rent rather than buy a home. Other agents said fewer clients are responding to their updates on new property viewings, adding that the current resale market for private property is 'a little quieter' than before the polls.

The move to build record numbers of BTO flats has left some buyers reconsidering whether they should sell their homes.

GPS Alliance associate marketing director Benjamin Tan said: 'I've had one or two buyers asking for my opinion on whether they should continue to sell or hold back. I told them to continue selling their property and see what offers come along. They can always hold on to it otherwise.'

Other buyers are also taking a wait-and-see approach. ERA marketing director Irene Ng said: 'Some clients say they are keen to sell but not at this stage. They believe they still have the holding power to wait out for a better price.'

Both agents and consultants believe it is unlikely that the increased number of BTO flats will greatly affect the private market. ERA Realty key executive Eugene Lim said: 'Turnout at the showflats is still healthy, although not as good as in the past. But taking into account the last batch of cooling measures, the market seems to be holding its ground.'

New property launches over the weekend continued to attract a significant number of property buyers.

More than 120 units of Wing Tai's Foresque Residences have been sold since the project was launched earlier this month. So far, 306 of the 496 units have been released for sale.

The 24-storey development features five towers, with homes at the 99-year leasehold project on Petir Road priced from $850 per sq ft (psf) to $1,300 psf. The smallest units, 463 sq ft one-bedders, start from $550,000.

Belysa, an executive condominium in Pasir Ris, has moved 158 apartments - nearly half of its 315 units - since it launched last Wednesday. The 99-year leasehold project is priced at an average of $670 psf and comprises three-and four-bedroom apartments.

Another new launch, 10 Shelford, has about 20 units left. Prices at this 69-unit Bukit Timah development start at about $830,000 for a 388 sq ft unit.

 

[jq75]

May 31, 2011
Resale property prices rise again
NUS index registers 1% gain in April, biggest since Jan's cooling measures
By Esther Teo, Property Reporter

RESALE property prices mirrored the buoyant mood in the new homes market and inched up higher last month, according to an index that tracks prices.

Home prices were up 1 per cent last month - the biggest monthly rise since January's cooling measures - and the increase follows a 0.2 per cent rise in March.

Prices for the central region rose 0.8 per cent, while those in non-central areas added 1.1 per cent.

The increases were recorded by the Singapore Residential Price Index, which the National University of Singapore compiles by monitoring the transactions of non-landed completed projects.

Experts say the index's 1 per cent increase reflects the expansive market mood, with buyers out in such force last month that developers shifted 1,788 new homes - a five-month high.

Cushman & Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng, said the good mood in the new sales market has spilled over to resales, now that buyers on all fronts have had time to digest the cooling measures.

Mr Ong said the 1 per cent price increase follows consecutive months of subdued price gains and does not indicate that the measures have not worked.

Ms Chia Siew Chuin, director of research and advisory at Colliers International, added that buyers could have entered the resale market for fear of missing the boat, with prices generally rising further.

This is especially so for affordably priced units in completed developments with good attributes, she noted.

Experts forecast that market sentiment will be mixed in coming months, although prices are expected to continue inching upwards.

Colliers' Ms Chia said some potential buyers might wait for clearer directions from the Government on housing policy.

'On the other hand, another group may choose to enter the market sooner in view of policy risks and the likely impact on the market,' she added.

'Nonetheless, prices are still expected to continue to strengthen gradually in the coming months.'

Cushman's Mr Ong agreed, saying that non-landed resale prices are expected to hold steady, or rise less than 1 per cent a month.

'(This) reflects the effect of economic strength and positive, genuine owner-occupier home buyer interest,' he noted.

SLP International research head Nicholas Mak said price gains in non-central areas are likely to outpace those in central areas this year, due to the strong demand for affordable homes from locals and permanent residents.

While foreign interest in centrally located homes is returning, it is still not as strong as that in 2007, he noted.

 

[jq75]

Jun 1, 2011
Three land sites available for sale
All on reserve list; one each for commercial, residential and hotel use
By Esther Teo, Property Reporter


THREE government land parcels have just been made available for sale - one each for residential, hotel and commercial developments.

All three 99-year leasehold sites are on the reserve list of the Government Land Sales programme in the first half of this year. Land on the reserve list is put up for tender only if developers make an acceptable initial offer.

Experts say the commercial site in Paya Lebar Central - the second to be offered in the area this year - is most likely to be triggered for sale due to the promising suburban office market outlook.

The 2.07ha land parcel is located at the junction of Sims Avenue and Tanjong Katong Road and can yield about 87,000 sq m of gross floor area (GFA).

The site is earmarked to be utilised as a good-quality mixed-use development comprising office, hotel and retail uses.

At least 40 per cent and 15 per cent of the maximum permissible GFA must be set aside for office use and hotel use respectively, said the Urban Redevelopment Authority (URA).

The remaining space can be for additional office, hotel, retail, entertainment or food and beverage uses to help build up the critical mass of activities that will anchor Paya Lebar as a prominent commercial hub. Residential use is not allowed.

The first Paya Lebar site was launched in January and sold for $586 million - or $872 per sq ft per plot ratio. It received 10 bids from heavyweights such as CapitaLand and Far East Organization.

Yesterday, URA also released a hotel site at the junction of Race Course Road and Perumal Road on the reserve list. The 0.38ha land parcel located near the historic district of Little India can yield a maximum permissible GFA of 13,500 sq m.

An executive condominium (EC) site in Upper Serangoon View is also being made available for sale today by the HDB. An estimated 420 units can be built on the site.

HDB said in a statement yesterday that apart from this site, both the HDB and URA will be releasing three new residential sites and one commercial site under the confirmed list this month.

The three residential sites are located at the junction of Punggol Field/Punggol Field Walk, Serangoon Garden Way, and between Upper Serangoon Road and Pheng Geck Avenue. The commercial site will be at Robinson Road/Cecil Street.

The four residential sites in total can yield 1,380 homes, HDB said.

Experts expect all three sites on the reserve list to be met with varying interest.

Cushman & Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng, said the Paya Lebar commercial site will likely draw the strongest developer interest because of its strategic location and the optimistic bid for the previous site.

On interest in the EC land plot, he said that with the success of recent EC launches indicating strong demand from home buyers with affordability concerns, the site can expect moderate buying interest.

Mr Ong Teck Hui, Credo Real Estate's head of research and consultancy, however, called the site 'mediocre'. It is next to a private residential site that drew only four bidders last November, he said.

SLP International research head Nicholas Mak said if the hotel site was up for sale, it could attract bids of $72 million to $87 million. Credo's Mr Ong added: 'It's a good location for a city fringe hotel, which would cater towards the more budget-conscious tourists.'

 

[jq75]

Jun 1, 2011
Tax foreigners on property gains
I REFER to last Wednesday's report ("Foreign home buyers hit record in Q1") and the letter by Madam Koh Chin Chin ("Limit private homes sold to foreigners"; last Saturday).

The argument that the private home market can be opened to foreigners and permanent residents (PRs) with some restrictions, without significant effect on the prices of other segments of the property market, has been proved wrong.

A broader set of limitations is needed, taking into account the objectives and affordability of the three buyer categories: citizens, PRs, and foreigners.

For the citizen, it is a home; for the PR, it is a desirable alternative to renting; and for foreigners, it is an investment.

A property gains tax should be introduced for foreigners. This will provide a concrete benefit for PRs who really want to make their home here to take up citizenship.

Henry Tan

 

[jq75]

Jun 1, 2011
Eunosville HUDC is now a private estate

The 330-unit Eunosville HUDC Estate has been privatised under the Land Titles (Strata) Act, with effect from June 1. -- PHOTO: BERITA HARIAN

THE 330-unit Eunosville HUDC Estate has been privatised under the Land Titles (Strata) Act, with effect from June 1.

With the privatisation, the individual owners in the estate now own their respective strata units, as well as the common property such as the car parks and open landscaped areas, as tenants-in-common.

The Marine Parade Town Council will cease its responsibility in the management and maintenance of the common properties of the estate with immediate effect.

Privatisation of HUDC estates was announced in 1995 as part of the Government's effort to meet the rising aspirations of Singaporeans to own private housing.

It also enables the lessees to have better control over the management of their estate.

Privatisation will proceed if lessees of at least 75 per cent of the flats support it.

 

[jq75]

Sharp fall in property prices "possible"
By Sabrina Chan | Posted: 09 June 2011 1537 hrs



SINGAPORE: Minister for National Development Khaw Boon Wan has sounded an alert on a possible sharp fall in property prices.

Writing on his blog, Mr Khaw said things can suddenly go very wrong.

He pointed out a strong supply of housing units is coming up.

About 35,000 private homes have already been sold.

Another 45,000 units are also waiting to be built and sold.

Mr Khaw warned a weak global economy could turn away foreign buyers who make up about 16 per cent of all buyers of private properties.

Rental demand can also fall quickly since many Singaporeans also buy properties to lease to foreigners.

He said the impact of external shocks can be serious if the drop in demand happens when there's a substantial increase in supply.

He also said cost of borrowing and repayment must go up and households must factor this in.

Mr Khaw advised investors to bear these in mind before signing up for new houses.

 

[jq75]

Jun 16, 2011
New private home sales fall 13%
By Esther Teo



New private home sales fell 13 per cent to 1,575 units last month.

Including executive condos, however, the number swells to 1,825 homes sold.

Top selling projects in May include Terrasse with 184 units sold at a median price of $994 per sq ft (psf) and Foresque Residences that found 141 buyers at a price of $1,108 psf.