Thursday, November 22, 2007
仰光路五座毗邻公寓 1.2亿元“打包”售出
《联合早报》Nov 22, 2007
本地上市公司——建筑商金成兴控股（KSH）一口气以1亿2000万元（即容积率每平方英尺580元），买下仰光路(Rangoon Road)五座集体求售的相连接小型私人公寓。
这幅地段包括麦桂苑(Mergui Lodge)、麦桂阁(Mergui Court)、美贵园(The Mergui)、纳福阁 (Norfolk Court)和Northern Mansion，单位的数目介于9个到23个之间，总数是88个，其中两个项目获得100％的业主同意出售，另外三个项目也获得超过80％的业主签署了同意书。
以1亿2000万元的售价来看，每名业主将能“套现”90万6856元至190万8491元。
负责销售项目的齐乐行（Credo)相信，这可能是本地第一次出现五幅相连地段“包装”在一起集体出售，并同时卖给同一个买家的情形。
金成兴控股（KSH）总裁朱峙安表示，将通过内部资金调动和向银行借贷来为项目融资。金成兴目前也同其他投资者进行洽谈，希望组成联营企业来发展这个优质私宅地段。
这五个项目的土地面积介于1万0061平方英尺到1万8524平方英尺之间，当结合在一起后，加上周边的政府土地，整个地段的土地面积将达到8万7092平方英尺。地段的总容积率为2.8，属于永久地契，可建筑楼面约为20万8196平方英尺。
可建142豪华单位
朱峙安相信，地段能重新发展成具有142个豪华单位的共管公寓高楼，每个单位的面积大约为1250平方英尺。
齐乐行执行董事杨春华认为，这样的“包装售卖”方式对买卖双方来说，是双赢的局面。杨春华说：“对业主来说，这比他们把各别地段分开集体出售，取得更高的价格；发展商则有机会将地段重新发展成一个中型的高楼住宅项目，可建造大约200个新单位。”最高建筑楼层可达到30层楼高。
其实，这并非齐乐行第一次将小型公寓“包装”在一起求售。
去年2月份，齐乐行就将禄梓公寓(Lock Cho Apartment)、康福大厦(Comfort Mansion)及另外一个拥有八个低层公寓的项目，一块儿推出市场。最后，城市发展耗资1亿5630万元，一口气买下位于汤申路的这三个相连接住宅地段。
齐乐行今年也售出Nob岭公寓（Nob Hill)和其相连的两幢别墅、凯胜阁（Kai Sheng Court)和其相连的两栋屋子，且正在销售罗彬通道（Robin Drive)的三幅相连地段。
同时，这也不是建筑商金成兴控股首次进军本地房地产发展市场。在今年6月份，金成兴就与另外三家上市公司——喜敦控股（Heeton）、许兄弟（Koh Brothers）和联明建筑组成财团，以2亿4300万元争取到位于第11邮区的林肯苑（Lincoln Lodge）的发展权，计划把它发展成豪华私宅项目。
另一方面，大众控股(Popular Holdings)昨天也宣布，其子公司大众置地（Popular Land）以1550万元，买下汤申路附近惹兰拉惹乌当（Jalan Raja Udang），一个称为实巴公寓（Shiba Apartments）的所有分层地契单位。
这就比实巴公寓推出市场时的1690万元要价，即容积率每平方英尺约792元（包括发展收费）还来得低。
大众控股表示，将通过内部资金调动和／或向银行借贷为项目融资。集团表示，虽然主要业务还是集中在零售、分销和出版业，但房地产发展具有增长潜力，因此决定把握机会，进军这个市场。
大众置地在今年四月份，也以2720万元买下赐福路（Shelford Road）18号的10个住宅单位，集团的第一个房地产项目——豪华精品型私宅One Robin，相信会在不久后登场。
本地上市公司——建筑商金成兴控股（KSH）一口气以1亿2000万元（即容积率每平方英尺580元），买下仰光路(Rangoon Road)五座集体求售的相连接小型私人公寓。
这幅地段包括麦桂苑(Mergui Lodge)、麦桂阁(Mergui Court)、美贵园(The Mergui)、纳福阁 (Norfolk Court)和Northern Mansion，单位的数目介于9个到23个之间，总数是88个，其中两个项目获得100％的业主同意出售，另外三个项目也获得超过80％的业主签署了同意书。
以1亿2000万元的售价来看，每名业主将能“套现”90万6856元至190万8491元。
负责销售项目的齐乐行（Credo)相信，这可能是本地第一次出现五幅相连地段“包装”在一起集体出售，并同时卖给同一个买家的情形。
金成兴控股（KSH）总裁朱峙安表示，将通过内部资金调动和向银行借贷来为项目融资。金成兴目前也同其他投资者进行洽谈，希望组成联营企业来发展这个优质私宅地段。
这五个项目的土地面积介于1万0061平方英尺到1万8524平方英尺之间，当结合在一起后，加上周边的政府土地，整个地段的土地面积将达到8万7092平方英尺。地段的总容积率为2.8，属于永久地契，可建筑楼面约为20万8196平方英尺。
可建142豪华单位
朱峙安相信，地段能重新发展成具有142个豪华单位的共管公寓高楼，每个单位的面积大约为1250平方英尺。
齐乐行执行董事杨春华认为，这样的“包装售卖”方式对买卖双方来说，是双赢的局面。杨春华说：“对业主来说，这比他们把各别地段分开集体出售，取得更高的价格；发展商则有机会将地段重新发展成一个中型的高楼住宅项目，可建造大约200个新单位。”最高建筑楼层可达到30层楼高。
其实，这并非齐乐行第一次将小型公寓“包装”在一起求售。
去年2月份，齐乐行就将禄梓公寓(Lock Cho Apartment)、康福大厦(Comfort Mansion)及另外一个拥有八个低层公寓的项目，一块儿推出市场。最后，城市发展耗资1亿5630万元，一口气买下位于汤申路的这三个相连接住宅地段。
齐乐行今年也售出Nob岭公寓（Nob Hill)和其相连的两幢别墅、凯胜阁（Kai Sheng Court)和其相连的两栋屋子，且正在销售罗彬通道（Robin Drive)的三幅相连地段。
同时，这也不是建筑商金成兴控股首次进军本地房地产发展市场。在今年6月份，金成兴就与另外三家上市公司——喜敦控股（Heeton）、许兄弟（Koh Brothers）和联明建筑组成财团，以2亿4300万元争取到位于第11邮区的林肯苑（Lincoln Lodge）的发展权，计划把它发展成豪华私宅项目。
另一方面，大众控股(Popular Holdings)昨天也宣布，其子公司大众置地（Popular Land）以1550万元，买下汤申路附近惹兰拉惹乌当（Jalan Raja Udang），一个称为实巴公寓（Shiba Apartments）的所有分层地契单位。
这就比实巴公寓推出市场时的1690万元要价，即容积率每平方英尺约792元（包括发展收费）还来得低。
大众控股表示，将通过内部资金调动和／或向银行借贷为项目融资。集团表示，虽然主要业务还是集中在零售、分销和出版业，但房地产发展具有增长潜力，因此决定把握机会，进军这个市场。
大众置地在今年四月份，也以2720万元买下赐福路（Shelford Road）18号的10个住宅单位，集团的第一个房地产项目——豪华精品型私宅One Robin，相信会在不久后登场。
5-Site En Bloc Fetches $120m
Source : TODAY, Thursday, November 22, 2007
FIVE residential developments near Thomson Road/Novena Square have been sold in a joint en bloc sale for $120 million. The sale was managed by Credo Real Estate and the buyer is Kim Seng Heng Realty, a subsidiary of KSH Holdings.
Norfolk Court, Mergui Lodge, Northern Mansion, Mergui Court and The Mergui have land areas ranging from 10,061 sq ft to 18,524 sq ft.
“After combining them with some remnant land parcels, the developer could build on an aggregate land area of 87,092 sq ft,” said Credo Real Estate’s executive director Yong Chong Wah.
Credo’s managing director Karamjit Singh told Today that the new buyer intends to develop a condominium on the site.
The $120 million selling price reflects $580 per sq ft per plot ratio before factoring in the state land. Depending on the state land that may be amalgamated, the effective rate could come down to $540 psf ppr.
In light of cautious market sentiments due to sub-prime woes, Mr Singh said the sale was a “good deal for both buyer and seller”.
The freehold site is near amenities such as the Pek Kio Market and Food Centre, KK Women’s and Children’s Hospital and a short distance to United Square and Novena Square malls.
FIVE residential developments near Thomson Road/Novena Square have been sold in a joint en bloc sale for $120 million. The sale was managed by Credo Real Estate and the buyer is Kim Seng Heng Realty, a subsidiary of KSH Holdings.
Norfolk Court, Mergui Lodge, Northern Mansion, Mergui Court and The Mergui have land areas ranging from 10,061 sq ft to 18,524 sq ft.
“After combining them with some remnant land parcels, the developer could build on an aggregate land area of 87,092 sq ft,” said Credo Real Estate’s executive director Yong Chong Wah.
Credo’s managing director Karamjit Singh told Today that the new buyer intends to develop a condominium on the site.
The $120 million selling price reflects $580 per sq ft per plot ratio before factoring in the state land. Depending on the state land that may be amalgamated, the effective rate could come down to $540 psf ppr.
In light of cautious market sentiments due to sub-prime woes, Mr Singh said the sale was a “good deal for both buyer and seller”.
The freehold site is near amenities such as the Pek Kio Market and Food Centre, KK Women’s and Children’s Hospital and a short distance to United Square and Novena Square malls.
China Needs To Levy Property Tax: Official
Source : The Business Times, November 22, 2007
(BEIJING) China should levy a general property tax to discourage speculation and rein in runaway real estate prices, according to a member of the central bank's monetary policy committee.
Fan Gang's comments in the latest issue of a Chinese Academy of Social Sciences magazine echo concerns voiced this week by Premier Wen Jiabao that China's soaring housing market must be brought under control.
'Realty investors don't care whether their houses can be rented out or not,' Mr Fan said in an interview. 'If a continual and incremental tax is imposed on real estate, investment in the sector will cool down.'
Mr Fan, one of China's best-known economists, has previously called for an annual tax on homeowners based on the value of their property but had previously said that technical obstacles stood in the way. His latest comments described the reforms as urgent.
'Demand will continue to expand unchecked if realty investors are not required to pay anything to compensate for the housing price hike,' he said.
China has adopted a number of measures to cool the real estate sector, such as increasing capital gains taxes on property and tightening land-use rules.
But property prices have resumed their surge, up 9.5 per cent year-on-year in October and even more in major cities, after briefly calming earlier in the year.
Mr Fan, who is also director of the National Institute of Economic Research, added that authorities must crack down on insider trading and illegal loans in the stock markets, or 'the consequences will be unthinkable'.
However, he was optimistic about China's potential for stable growth at around 11 per cent a year, saying that the country would continue to benefit from low labour costs, a high savings rate, capital inflows and advances in education and technology.
The challenge, he said, was for China to fix its economic problems from its current position of strength, so that it would be better able to withstand international financial crises.
He also said that the profitability of Chinese businesses was exaggerated because of artificially low resource prices, tiny social security outlays and lax environmental rules. -- Reuters
(BEIJING) China should levy a general property tax to discourage speculation and rein in runaway real estate prices, according to a member of the central bank's monetary policy committee.
Fan Gang's comments in the latest issue of a Chinese Academy of Social Sciences magazine echo concerns voiced this week by Premier Wen Jiabao that China's soaring housing market must be brought under control.
'Realty investors don't care whether their houses can be rented out or not,' Mr Fan said in an interview. 'If a continual and incremental tax is imposed on real estate, investment in the sector will cool down.'
Mr Fan, one of China's best-known economists, has previously called for an annual tax on homeowners based on the value of their property but had previously said that technical obstacles stood in the way. His latest comments described the reforms as urgent.
'Demand will continue to expand unchecked if realty investors are not required to pay anything to compensate for the housing price hike,' he said.
China has adopted a number of measures to cool the real estate sector, such as increasing capital gains taxes on property and tightening land-use rules.
But property prices have resumed their surge, up 9.5 per cent year-on-year in October and even more in major cities, after briefly calming earlier in the year.
Mr Fan, who is also director of the National Institute of Economic Research, added that authorities must crack down on insider trading and illegal loans in the stock markets, or 'the consequences will be unthinkable'.
However, he was optimistic about China's potential for stable growth at around 11 per cent a year, saying that the country would continue to benefit from low labour costs, a high savings rate, capital inflows and advances in education and technology.
The challenge, he said, was for China to fix its economic problems from its current position of strength, so that it would be better able to withstand international financial crises.
He also said that the profitability of Chinese businesses was exaggerated because of artificially low resource prices, tiny social security outlays and lax environmental rules. -- Reuters
Average Grade A Office Rents Here On Par With HK
Source : The Business Times, November 22, 2007
But top rents in HK are 1.8 times higher than in comparable buildings here
AVERAGE island-wide Grade A rents are currently just a shade under those of Hong Kong, but the highest rents achieved by Hong Kong Grade 'AAA' office buildings are still about 1.8 times higher than the top rents achieved in comparable buildings here.
A report by Savills reveals that in the CBDs of Hong Kong and Singapore, Grade A rents are now the equivalent of $9.80 and $9.70 psf respectively.
However, top rents in Hong Kong's Grade 'AAA' buildings like the International Financial Centre, Chater House and AIG Tower are closer to $32 psf while those in Singapore's Republic Plaza, One Raffles Quay and 6 Battery Road are at about $17.50 psf.
Rising business costs have come under scrutiny recently and Savills Hong Kong senior director (research and consultancy) Simon Smith does say that there is the perception that Hong Kong and Singapore are in direct competition to attract businesses for this segment of the property market. However, he added: 'I have not come across any financial institutions that have chosen to relocate from Singapore to Hong Kong yet.'
Indeed, Mr Smith believes that the financial institutions that are so important to the economies of both cities are more likely to set up offices in both cities to service different markets.
In terms of new supply of office space, Mr Smith does point out that Hong Kong will see some 'AAA' space become available next year in areas like West Kowloon where the 2.5 million sq ft International Commerce Centre (ICC) is set to open. The ICC is said to have attracted some major financial institutions already.
In contrast, Savills notes that the recently awarded commercial development sites including those at Marina View and Beach Road are expected to generate a combined 3 million sq ft of office space, scheduled for completion between 2010 and 2012.
But competition actually could come from more unlikely quarters.
Savills' survey of regional office rents includes the emerging Vietnamese cities of Hanoi and Ho Chi Minh City and already average Grade A office rents in both cities have outpaced those in Shanghai and Beijing (but are still less than Tokyo, Hong Kong and Singapore).
Mr Smith believes that rising rents and 100 per cent occupancies in Hanoi and Ho Chi Minh City are largely due to the shortage of quality buildings in these cities, and hence adds: 'There is a huge potential there for developers.'
Giving an insight into the pace of development there, he said: 'Vietnam is much like China was in the 1990s, where companies were running their businesses out of hotel rooms. But when the market matures, rents will settle down.'
Savills believes the outlook for Singapore office sector remains positive, with rents continuing to rise, although at a slower pace for Grade A space due to 'resistance from tenants'.
'Demand from multinational companies for offices in suburban areas and high-tech space is expected to increase, especially by those who are more conscious of their bottom-line,' it said.
But top rents in HK are 1.8 times higher than in comparable buildings here
AVERAGE island-wide Grade A rents are currently just a shade under those of Hong Kong, but the highest rents achieved by Hong Kong Grade 'AAA' office buildings are still about 1.8 times higher than the top rents achieved in comparable buildings here.
A report by Savills reveals that in the CBDs of Hong Kong and Singapore, Grade A rents are now the equivalent of $9.80 and $9.70 psf respectively.
However, top rents in Hong Kong's Grade 'AAA' buildings like the International Financial Centre, Chater House and AIG Tower are closer to $32 psf while those in Singapore's Republic Plaza, One Raffles Quay and 6 Battery Road are at about $17.50 psf.
Rising business costs have come under scrutiny recently and Savills Hong Kong senior director (research and consultancy) Simon Smith does say that there is the perception that Hong Kong and Singapore are in direct competition to attract businesses for this segment of the property market. However, he added: 'I have not come across any financial institutions that have chosen to relocate from Singapore to Hong Kong yet.'
Indeed, Mr Smith believes that the financial institutions that are so important to the economies of both cities are more likely to set up offices in both cities to service different markets.
In terms of new supply of office space, Mr Smith does point out that Hong Kong will see some 'AAA' space become available next year in areas like West Kowloon where the 2.5 million sq ft International Commerce Centre (ICC) is set to open. The ICC is said to have attracted some major financial institutions already.
In contrast, Savills notes that the recently awarded commercial development sites including those at Marina View and Beach Road are expected to generate a combined 3 million sq ft of office space, scheduled for completion between 2010 and 2012.
But competition actually could come from more unlikely quarters.
Savills' survey of regional office rents includes the emerging Vietnamese cities of Hanoi and Ho Chi Minh City and already average Grade A office rents in both cities have outpaced those in Shanghai and Beijing (but are still less than Tokyo, Hong Kong and Singapore).
Mr Smith believes that rising rents and 100 per cent occupancies in Hanoi and Ho Chi Minh City are largely due to the shortage of quality buildings in these cities, and hence adds: 'There is a huge potential there for developers.'
Giving an insight into the pace of development there, he said: 'Vietnam is much like China was in the 1990s, where companies were running their businesses out of hotel rooms. But when the market matures, rents will settle down.'
Savills believes the outlook for Singapore office sector remains positive, with rents continuing to rise, although at a slower pace for Grade A space due to 'resistance from tenants'.
'Demand from multinational companies for offices in suburban areas and high-tech space is expected to increase, especially by those who are more conscious of their bottom-line,' it said.
Bugis To Have New $160m Mall By Next Year
Source : The Straits Times, Nov 22, 2007
THE developer of a new entertainment mall in Bugis has boosted its budget for the project by $60 million, bringing its investment to $160 million from an initial $100 million.
'LIKE NO OTHER': The 10-storey Iluma mall will be connected to Victoria Street by an overhead link bridge. -- PHOTOS: JACK INVESTMENT
The mall, to be called Iluma, is expected to open by the end of next year. It is being built by Jack Investment, next to Bugis Village and opposite Bugis Junction and Hotel Intercontinental.
With the higher investment, the company aims to create a project that 'promises to be like no other current retail-entertainment malls' here, said project director Lim Swee Teck.
At least 60 per cent of the mall's floor area will comprise entertainment outlets such as restaurants, a cineplex, and dance floors, said Ms Sherene Sng, the head of retail at Knight Frank, the mall's sole marketing agent. This use of space was one of the tender requirements.
'We will strive for an arts-inspired, creative experience,' Ms Sng said. More than 150 shops will be targeted at customers such as young, single executives. Tenants have not been confirmed but, unlike a typical mall, Iluma will not have a supermarket operator.
Rents would largely fall between $10 and $30 per sq ft (psf), said Ms Sng. At Bugis Junction, the highest rents are said to have reached about $50 psf.
Iluma sits on a 95,799 sq ft site and will be spread over 10 storeys. The second storey will be connected to Victoria Street by an overhead link bridge. The mall will have a first-of-its-kind, large column-free space of up to 27,000 sq ft on the rooftop that will be suitable for restaurants, said Mr Lim.
Jack Investment also owns the $70 million shopping mall and entertainment hub Leisure Park Kallang.
The company, owned by real estate veteran Han Chee Juan, won the tender for the Iluma site in 2005 with a bid of $46 million.
THE developer of a new entertainment mall in Bugis has boosted its budget for the project by $60 million, bringing its investment to $160 million from an initial $100 million.
'LIKE NO OTHER': The 10-storey Iluma mall will be connected to Victoria Street by an overhead link bridge. -- PHOTOS: JACK INVESTMENT
The mall, to be called Iluma, is expected to open by the end of next year. It is being built by Jack Investment, next to Bugis Village and opposite Bugis Junction and Hotel Intercontinental.
With the higher investment, the company aims to create a project that 'promises to be like no other current retail-entertainment malls' here, said project director Lim Swee Teck.
At least 60 per cent of the mall's floor area will comprise entertainment outlets such as restaurants, a cineplex, and dance floors, said Ms Sherene Sng, the head of retail at Knight Frank, the mall's sole marketing agent. This use of space was one of the tender requirements.
'We will strive for an arts-inspired, creative experience,' Ms Sng said. More than 150 shops will be targeted at customers such as young, single executives. Tenants have not been confirmed but, unlike a typical mall, Iluma will not have a supermarket operator.
Rents would largely fall between $10 and $30 per sq ft (psf), said Ms Sng. At Bugis Junction, the highest rents are said to have reached about $50 psf.
Iluma sits on a 95,799 sq ft site and will be spread over 10 storeys. The second storey will be connected to Victoria Street by an overhead link bridge. The mall will have a first-of-its-kind, large column-free space of up to 27,000 sq ft on the rooftop that will be suitable for restaurants, said Mr Lim.
Jack Investment also owns the $70 million shopping mall and entertainment hub Leisure Park Kallang.
The company, owned by real estate veteran Han Chee Juan, won the tender for the Iluma site in 2005 with a bid of $46 million.
Jack Investment Raises Iluma Project Cost
Source : The Business Times, November 22, 2007
Entertainment, retail mall bill to soar to $160m from $100m
JACK Investment, which won the tender to build a retail and entertainment mall on a site opposite Bugis Junction in 2005, has revised its projected total investment cost from $100 million to $160 million.
Iluma: Will have high-tech features like a light and media facade and a 27,000 sq ft column-free space on the rooftop dedicated to theme restaurants
Project director Lim Swee Teck said that Jack Investment intends to 'ensure that the final finished product will be of an iconic stature'. The development is now called Iluma.
Mr Lim said that the mall, designed by award-winning architectural firm WOHA, will have high-tech features like a light and media facade and a 27,000 sq ft column-free space on the rooftop dedicated to theme restaurants and concept dining.
Other features will include exhibition and promotional spaces within the mall, as well as a flexible performing space which can seat up to 400 people.
Also confirmed is the vital link-bridge across Victoria Street to Bugis Junction.
Jack Investment also owns Leisure Park Kallang, West Coast Recreation Centre, Woodlands Point and 600@Toa Payoh.
One of the main entertainment attractions at Iluma will be a cineplex, with a capacity for 1,400 seats, which will be run by Jack Investment. This will be a new business for company that will begin with the recently announced six-hall, 830-seat cineplex next to Leisure Park Kallang.
Iluma will be 10 storeys high. Up to 60 per cent of the gross floor area will be dedicated to entertainment uses. There will be 191,580 sq ft of net lettable area with a total of 150 retail units.
Iluma's marketing consultant Knight Frank said that the primary target market will be fashion conscious 20 to 30-year-olds.
Knight Frank head of retail Sherene Sng added that entertainment attractions could also include brand-name dance clubs similar to the Ministry of Sound.
She said that rents at Iluma can be expected to range between $10 and $30 per square foot (psf). Currently, top rents at neighbouring Bugis Junction are said to be in the region of $40 psf.
The mall is currently under construction and is expected to be completed in the final quarter of next year.
Entertainment, retail mall bill to soar to $160m from $100m
JACK Investment, which won the tender to build a retail and entertainment mall on a site opposite Bugis Junction in 2005, has revised its projected total investment cost from $100 million to $160 million.
Iluma: Will have high-tech features like a light and media facade and a 27,000 sq ft column-free space on the rooftop dedicated to theme restaurantsProject director Lim Swee Teck said that Jack Investment intends to 'ensure that the final finished product will be of an iconic stature'. The development is now called Iluma.
Mr Lim said that the mall, designed by award-winning architectural firm WOHA, will have high-tech features like a light and media facade and a 27,000 sq ft column-free space on the rooftop dedicated to theme restaurants and concept dining.
Other features will include exhibition and promotional spaces within the mall, as well as a flexible performing space which can seat up to 400 people.
Also confirmed is the vital link-bridge across Victoria Street to Bugis Junction.
Jack Investment also owns Leisure Park Kallang, West Coast Recreation Centre, Woodlands Point and 600@Toa Payoh.
One of the main entertainment attractions at Iluma will be a cineplex, with a capacity for 1,400 seats, which will be run by Jack Investment. This will be a new business for company that will begin with the recently announced six-hall, 830-seat cineplex next to Leisure Park Kallang.
Iluma will be 10 storeys high. Up to 60 per cent of the gross floor area will be dedicated to entertainment uses. There will be 191,580 sq ft of net lettable area with a total of 150 retail units.
Iluma's marketing consultant Knight Frank said that the primary target market will be fashion conscious 20 to 30-year-olds.
Knight Frank head of retail Sherene Sng added that entertainment attractions could also include brand-name dance clubs similar to the Ministry of Sound.
She said that rents at Iluma can be expected to range between $10 and $30 per square foot (psf). Currently, top rents at neighbouring Bugis Junction are said to be in the region of $40 psf.
The mall is currently under construction and is expected to be completed in the final quarter of next year.
Five Estates Sold To One Buyer In Collective Deal
Source : The Straits Times, Nov 22, 2007
FIVE small adjoining freehold apartment blocks near Thomson Road have been sold en bloc to Kim Seng Heng Realty, a subsidiary of listed KSH Holdings, for $120 million.
The construction and property development group said yesterday that the combined site could be redeveloped into a high-rise residential block with about 142 luxury apartments of 1,250 sq ft on average.
It added that it is currently negotiating with other investors to form a joint venture to develop the site.
Credo Real Estate, which brokered the deal, said it is possibly the first time in Singapore that as many as five estates have been successfully combined and sold en bloc to one buyer.
The properties - Norfolk Court, Mergui Lodge, Northern Mansion, Mergui Court and The Mergui - are located near Rangoon Road and Moulmein Road.
They are single apartment blocks sitting on relatively small plots ranging from 10,061 sq ft to 18,524 sq ft.
When combined, they form a land area of 74,355 sq ft, which would permit a gross floor area of 208,196 sq ft.
If small pieces of state land in between are thrown in, the developer will have a site of 87,092 sq ft, said Credo's executive director, Ms Yong Choon Fah.
In any case, three of the developments could not have otherwise been redeveloped on their own. 'They need each other because there's a 30m buffer requirement from the expressway,' said Ms Yong.
This Urban Redevelopment Authority rule would mean that it is impossible for Norfolk Court, Mergui Lodge and The Mergui to be redeveloped individually. But if combined with the other two sites, a bigger development that does not fall within the 30m buffer zone can be built.
The five estates have 88 units in total. Each unit owner will get between $906,856 and $1.91 million.
The $120 million price reflects a price of $580 per sq ft (psf) of potential gross floor area.
After factoring in the cost of the state land in between, the rate could come down to about $540 psf, said Ms Yong.
KSH Holdings' recent projects include a construction contract for a luxury boutique hotel at Clifford Pier.
FIVE small adjoining freehold apartment blocks near Thomson Road have been sold en bloc to Kim Seng Heng Realty, a subsidiary of listed KSH Holdings, for $120 million.
The construction and property development group said yesterday that the combined site could be redeveloped into a high-rise residential block with about 142 luxury apartments of 1,250 sq ft on average.
It added that it is currently negotiating with other investors to form a joint venture to develop the site.
Credo Real Estate, which brokered the deal, said it is possibly the first time in Singapore that as many as five estates have been successfully combined and sold en bloc to one buyer.
The properties - Norfolk Court, Mergui Lodge, Northern Mansion, Mergui Court and The Mergui - are located near Rangoon Road and Moulmein Road.
They are single apartment blocks sitting on relatively small plots ranging from 10,061 sq ft to 18,524 sq ft.
When combined, they form a land area of 74,355 sq ft, which would permit a gross floor area of 208,196 sq ft.
If small pieces of state land in between are thrown in, the developer will have a site of 87,092 sq ft, said Credo's executive director, Ms Yong Choon Fah.
In any case, three of the developments could not have otherwise been redeveloped on their own. 'They need each other because there's a 30m buffer requirement from the expressway,' said Ms Yong.
This Urban Redevelopment Authority rule would mean that it is impossible for Norfolk Court, Mergui Lodge and The Mergui to be redeveloped individually. But if combined with the other two sites, a bigger development that does not fall within the 30m buffer zone can be built.
The five estates have 88 units in total. Each unit owner will get between $906,856 and $1.91 million.
The $120 million price reflects a price of $580 per sq ft (psf) of potential gross floor area.
After factoring in the cost of the state land in between, the rate could come down to about $540 psf, said Ms Yong.
KSH Holdings' recent projects include a construction contract for a luxury boutique hotel at Clifford Pier.
Credo Real Estate Sells 5 Adjacent Developments In En Bloc Package
Source : The Business Times, November 22, 2007
Five developments with total site area of 74,355 sq ft sold to KSH for $120m
FIVE in one fell swoop - taking collective sales to the next level is Credo Real Estate, which has just managed to sell a package of five neighbouring residential developments to a single developer for $120 million.
The five developments, which are at Mergui Road, off Rangoon Road, are Norfolk Court, Mergui Lodge, Northern Mansion, Mergui Court and The Mergui.
With a total site area of 74,355 square feet and a plot ratio of 2.8, the $120 million price reflects a unit price of $580 per square foot per plot ratio (psf ppr).
It has been sold to KSH Holdings. The publicly listed construction, property development and property management company said in a statement released yesterday that the site has a potential to be developed into a 142-unit development with units averaging 1,250 sq ft.
KSH also said that the acquisition will be financed through internal funds and bank borrowings, and that it is currently negotiating with other investors to form a joint venture to develop the site.
On the challenge of bringing together the owners of five developments, Credo executive director Yong Choon Fah said that it had been looking at the possibility of a combined collective sale for several years.
She also explained that each development had different attributes and that only by combining them could a 'win-win' be achieved for all.
The five developments have land areas ranging from 10,061 sq ft to 18,524 sq ft and Ms Yong said that all the home owners have accepted the same unit price.
There are a total of 88 homes and the owners will receive between $906,856 and $1,908,491 each.
The site, which is considered to be in the 'city fringe', is estimated to have a breakeven price of about $1,000 psf.
In the immediate vicinity, Pristine Heights is currently selling for between $1,000 and $1,150 psf.
In 2006, Credo marketed Lock Cho Apartments, Comfort Mansion and a four-storey walk-up block for a combined collective sale. They were eventually sold to City Developments Ltd. The latest deal, however, is thought to be the only one to involve five developments.
Five developments with total site area of 74,355 sq ft sold to KSH for $120m
FIVE in one fell swoop - taking collective sales to the next level is Credo Real Estate, which has just managed to sell a package of five neighbouring residential developments to a single developer for $120 million.
The five developments, which are at Mergui Road, off Rangoon Road, are Norfolk Court, Mergui Lodge, Northern Mansion, Mergui Court and The Mergui.
With a total site area of 74,355 square feet and a plot ratio of 2.8, the $120 million price reflects a unit price of $580 per square foot per plot ratio (psf ppr).
It has been sold to KSH Holdings. The publicly listed construction, property development and property management company said in a statement released yesterday that the site has a potential to be developed into a 142-unit development with units averaging 1,250 sq ft.
KSH also said that the acquisition will be financed through internal funds and bank borrowings, and that it is currently negotiating with other investors to form a joint venture to develop the site.
On the challenge of bringing together the owners of five developments, Credo executive director Yong Choon Fah said that it had been looking at the possibility of a combined collective sale for several years.
She also explained that each development had different attributes and that only by combining them could a 'win-win' be achieved for all.
The five developments have land areas ranging from 10,061 sq ft to 18,524 sq ft and Ms Yong said that all the home owners have accepted the same unit price.
There are a total of 88 homes and the owners will receive between $906,856 and $1,908,491 each.
The site, which is considered to be in the 'city fringe', is estimated to have a breakeven price of about $1,000 psf.
In the immediate vicinity, Pristine Heights is currently selling for between $1,000 and $1,150 psf.
In 2006, Credo marketed Lock Cho Apartments, Comfort Mansion and a four-storey walk-up block for a combined collective sale. They were eventually sold to City Developments Ltd. The latest deal, however, is thought to be the only one to involve five developments.
World's Most Expensive Office Rentals In London, Mumbai
Source : The Business Times, November 22, 2007
Singapore rents grew the fastest at 83%, says survey by CB Richard Ellis
(SEATTLE) London and Mumbai tenants paid the most for high-quality offices this year, while Singapore rents grew the fastest as economic growth lured international banks to Asia, said CB Richard Ellis Group Inc, the world's largest commercial real estate broker.
London's West End led with average annual rents of US$328.91 per square foot (psf) this month, compared with US$180.80 for the UK capital's main financial district.
Mumbai had the second-most expensive leases at US$189.51, CB Richard Ellis said in its semi-annual Global Market Rents survey.
Asia's booming economies drove up demand for financial and computing services in the region, catapulting Mumbai to second spot and fuelling Singapore's 83 per cent growth in rents.
The US currency's decline also drove up costs in dollar terms, while a dearth of new space bolstered London rents, CB Richard Ellis said.
'Markets that moved up that quickly had the highest growth rates based on the economy' as well as a scarcity of space, said Ray Wong, director of research operations for the Americas for Los Angeles-based CB Richard Ellis.
'In the most expensive markets, if they're close to their peak, the expectation for increase is marginal, but other markets, especially resource sectors, are enjoying an increase in demand so they're going to move up a lot quicker.'
Mumbai's rents rose 55 per cent, driven by computer related tenants, according to CB Richard Ellis.
Midtown Manhattan was the most expensive North American market, with rents averaging US$100.79 psf, 12th- highest worldwide. Downtown New York ranked 46th globally at US$53.47.
Moscow rents jumped 65 per cent after crude oil prices tripled in the past five years, bolstering the economy of the world's second-biggest exporter of the fuel.
Rents in the oil hub of Edmonton, Canada, rose 43 per cent, the ninth- fastest worldwide, as energy companies leased more space to house expanding workforces, the survey showed. Edmonton did not rank in the top 50 markets by rental prices.
Eighty-five per cent of the 171 cities included in the survey saw rental increases in the year ended Sept 30, according to CB Richard Ellis. This bodes well for investment returns, Mr Wong said.
The survey measures the most expensive rents based on US dollars. Rental growth rates were measured in local currency terms. -- Bloomberg
Singapore rents grew the fastest at 83%, says survey by CB Richard Ellis
(SEATTLE) London and Mumbai tenants paid the most for high-quality offices this year, while Singapore rents grew the fastest as economic growth lured international banks to Asia, said CB Richard Ellis Group Inc, the world's largest commercial real estate broker.
London's West End led with average annual rents of US$328.91 per square foot (psf) this month, compared with US$180.80 for the UK capital's main financial district.
Mumbai had the second-most expensive leases at US$189.51, CB Richard Ellis said in its semi-annual Global Market Rents survey.
Asia's booming economies drove up demand for financial and computing services in the region, catapulting Mumbai to second spot and fuelling Singapore's 83 per cent growth in rents.
The US currency's decline also drove up costs in dollar terms, while a dearth of new space bolstered London rents, CB Richard Ellis said.
'Markets that moved up that quickly had the highest growth rates based on the economy' as well as a scarcity of space, said Ray Wong, director of research operations for the Americas for Los Angeles-based CB Richard Ellis.
'In the most expensive markets, if they're close to their peak, the expectation for increase is marginal, but other markets, especially resource sectors, are enjoying an increase in demand so they're going to move up a lot quicker.'
Mumbai's rents rose 55 per cent, driven by computer related tenants, according to CB Richard Ellis.
Midtown Manhattan was the most expensive North American market, with rents averaging US$100.79 psf, 12th- highest worldwide. Downtown New York ranked 46th globally at US$53.47.
Moscow rents jumped 65 per cent after crude oil prices tripled in the past five years, bolstering the economy of the world's second-biggest exporter of the fuel.
Rents in the oil hub of Edmonton, Canada, rose 43 per cent, the ninth- fastest worldwide, as energy companies leased more space to house expanding workforces, the survey showed. Edmonton did not rank in the top 50 markets by rental prices.
Eighty-five per cent of the 171 cities included in the survey saw rental increases in the year ended Sept 30, according to CB Richard Ellis. This bodes well for investment returns, Mr Wong said.
The survey measures the most expensive rents based on US dollars. Rental growth rates were measured in local currency terms. -- Bloomberg
Rise In S'pore Office Rent World's Fastest: CBRE Survey
Source : The Business Times, November 22, 2007
Singapore's office rents leapt 83 per cent in the past 12 months - the fastest rate in the world - as it shrugged off turmoil in global financial markets, commercial property consultancy CB Richard Ellis Research said.
Office rents in Singapore rose to US$102.37 per square foot, making it the 11th most expensive business centre in the world, up from the 24th position in the August survey.
The survey of office occupation costs in 171 cities worldwide showed that Singapore was followed by Russian capital Moscow, India's financial capital Mumbai, the Philippines' capital Manila and Norway's capital Oslo.
'The recent uncertainty in global financial markets has had no discernible impact on Singapore demand for office space,' CB Richard Ellis Research (CBRE) said in its semi-annual Global Market Rents survey.
Office rents in Singapore rose to US$102.37 per square foot, making it the 11th most expensive business centre in the world, up from the 24th position in the August survey, CBRE said.
The survey showed London's West End, Mumbai, the City of London and Moscow as the top four most expensive office markets in the world.
'With (Singapore) rents at record levels, there is increasing tenant resistance to rental hikes, and occupiers are more prepared to explore lower cost locations and consider relocating to business parks or high-tech space,' the survey said. -- REUTERS
Singapore's office rents leapt 83 per cent in the past 12 months - the fastest rate in the world - as it shrugged off turmoil in global financial markets, commercial property consultancy CB Richard Ellis Research said.
Office rents in Singapore rose to US$102.37 per square foot, making it the 11th most expensive business centre in the world, up from the 24th position in the August survey.The survey of office occupation costs in 171 cities worldwide showed that Singapore was followed by Russian capital Moscow, India's financial capital Mumbai, the Philippines' capital Manila and Norway's capital Oslo.
'The recent uncertainty in global financial markets has had no discernible impact on Singapore demand for office space,' CB Richard Ellis Research (CBRE) said in its semi-annual Global Market Rents survey.
Office rents in Singapore rose to US$102.37 per square foot, making it the 11th most expensive business centre in the world, up from the 24th position in the August survey, CBRE said.
The survey showed London's West End, Mumbai, the City of London and Moscow as the top four most expensive office markets in the world.
'With (Singapore) rents at record levels, there is increasing tenant resistance to rental hikes, and occupiers are more prepared to explore lower cost locations and consider relocating to business parks or high-tech space,' the survey said. -- REUTERS
Hot Market Smokes Out Solo Land Sites
Source : The Business Times, November 22, 2007
19 single-owner plots worth $1.05b sold this year
With the property market running hot, it is not just collective sales that have ballooned. Over the past two years, more residential land sites owned by single owners were sold as well.
So far this year, 19 residential sites owned by single owners and worth some $1.05 billion in all were sold to developers, data provided by property firm CB Richard Ellis (CBRE) shows.
And in 2006, there were 15 single-owner land sales worth a total of $865 million. By comparison, just four single-owner land sales worth $303 million were done in 2005.
Market watchers say a property market that is strong and active will bring out more sellers - both of the en-bloc variety as well as single owners.
'Collective sales have hogged the limelight of late, but the single-owner sales have also been very active,' says CBRE executive director Jeremy Lake. 'If you look at overall residential sales, you will see that they have gone up too. So single owners are just mirroring the overall market.'
Ku Swee Yong, director of marketing and business development at Savills Singapore, says that in the case of those sites owned by associations or clubs, members who were looking to sell might have been able to convince those who were previously not in favour of selling to change their minds, considering the prices that the properties can now fetch.
'When the price is better, they (those looking to sell) manage to clear the hurdle,' Mr Ku says.
The 19 sites sold by single owners this year include a few owned by associations, including one sold by Chui Hui Lim Club. The club sold a Keng Lee Road site to Sim Lian Group for some $115.8 million.
CBRE's data also shows that this year, while there were a few large single-owner sites that were sold, the bulk of the 19 properties were small - with 10 of them going for less than $30 million each.
Market watchers attributed the increased interest in smaller sites to new players in the property market. These smaller developers generally do not have the resources to bid for en-bloc sites that go for hundreds of millions dollars - the province of the likes of CapitaLand, City Developments and foreign property funds.
'When the market is good, it will attract new entrants,' says CBRE's Mr Lake. 'And you will find some people who will want to get into the market, but might not be able to afford the big sites.'
Sesdaq-listed Tee International is an example of one new entrant which has been snapping up smaller sites. The company, which has a market capitalisation of $41.5 million, has been in the electrical and mechanical engineering business since 1980. But since the start of the year, Tee has been buying a string of freehold terrace houses and apartments with plans to develop them into luxury 'boutique' homes.
Among its purchases are three single-owner sites, CBRE's data shows. Tee acquired two single-owner plots in Cairnhill Circle in July - one for $7.7 million and the other for $5.5 million. It also bought a single-owner property in Thomson Road for $6.9 million in January this year.
Similarly, Eastern Holdings, which publishes magazines, also picked up two small single-owner sites in Grove Drive this year - one for $12.5 million and the other for $10.3 million. The company is also relatively small, having a market capitalisation of about $70 million.
Savills's Mr Ku says that there are also some high net worth individuals who are buying smaller sites, redeveloping them and then selling them - all within a short span of time - to capitalise on the property market.
These wealthy individuals were also adding to the demand for smaller sites, he says.
19 single-owner plots worth $1.05b sold this year
With the property market running hot, it is not just collective sales that have ballooned. Over the past two years, more residential land sites owned by single owners were sold as well.
So far this year, 19 residential sites owned by single owners and worth some $1.05 billion in all were sold to developers, data provided by property firm CB Richard Ellis (CBRE) shows.
And in 2006, there were 15 single-owner land sales worth a total of $865 million. By comparison, just four single-owner land sales worth $303 million were done in 2005.
Market watchers say a property market that is strong and active will bring out more sellers - both of the en-bloc variety as well as single owners.
'Collective sales have hogged the limelight of late, but the single-owner sales have also been very active,' says CBRE executive director Jeremy Lake. 'If you look at overall residential sales, you will see that they have gone up too. So single owners are just mirroring the overall market.'
Ku Swee Yong, director of marketing and business development at Savills Singapore, says that in the case of those sites owned by associations or clubs, members who were looking to sell might have been able to convince those who were previously not in favour of selling to change their minds, considering the prices that the properties can now fetch.
'When the price is better, they (those looking to sell) manage to clear the hurdle,' Mr Ku says.
The 19 sites sold by single owners this year include a few owned by associations, including one sold by Chui Hui Lim Club. The club sold a Keng Lee Road site to Sim Lian Group for some $115.8 million.
CBRE's data also shows that this year, while there were a few large single-owner sites that were sold, the bulk of the 19 properties were small - with 10 of them going for less than $30 million each.
Market watchers attributed the increased interest in smaller sites to new players in the property market. These smaller developers generally do not have the resources to bid for en-bloc sites that go for hundreds of millions dollars - the province of the likes of CapitaLand, City Developments and foreign property funds.
'When the market is good, it will attract new entrants,' says CBRE's Mr Lake. 'And you will find some people who will want to get into the market, but might not be able to afford the big sites.'
Sesdaq-listed Tee International is an example of one new entrant which has been snapping up smaller sites. The company, which has a market capitalisation of $41.5 million, has been in the electrical and mechanical engineering business since 1980. But since the start of the year, Tee has been buying a string of freehold terrace houses and apartments with plans to develop them into luxury 'boutique' homes.
Among its purchases are three single-owner sites, CBRE's data shows. Tee acquired two single-owner plots in Cairnhill Circle in July - one for $7.7 million and the other for $5.5 million. It also bought a single-owner property in Thomson Road for $6.9 million in January this year.
Similarly, Eastern Holdings, which publishes magazines, also picked up two small single-owner sites in Grove Drive this year - one for $12.5 million and the other for $10.3 million. The company is also relatively small, having a market capitalisation of about $70 million.
Savills's Mr Ku says that there are also some high net worth individuals who are buying smaller sites, redeveloping them and then selling them - all within a short span of time - to capitalise on the property market.
These wealthy individuals were also adding to the demand for smaller sites, he says.
Pool Doubles As Skylight For Bras Basah Station
Source : The Straits Times, Nov 22, 2007
A NEW reflection pool sited between the Singapore Art Museum and Singapore Management University (SMU) is more than a water feature providing cool relief to passers-by.
The tennis court-sized pool is also a skylight for the Bras Basah MRT station, a five-level structure that goes 35m below ground - deeper than any MRT station here.
The skylight idea from local firm WoHa Architects allows the station to be used without artificial lighting in the day. At night, the lit station gives the open area in front of the SMU a surreal glow.
When sunlight streams through the glass roof, slanting side walls reflect it to deeper levels of the station.
Giving The Straits Times a tour of the station, the Land Transport Authority's Circle Line director Sim Wee Meng said the skylight will help make the commuting experience better.
'As soon as commuters come out of the train, they'd feel like they're already at the surface,' Mr Sim said.
The walls are clad in acoustic panels to minimise echoes, making the deep station less noisy.
The 70,000 litres of running water on the roof have more than an aesthetic role. The pool also helps to dissipate heat.
'If it was just plain glass without the water, it would get quite hot,' explained Mr Sim.
Being so deep, the station is served by 41.3m-long escalators - the longest in Singapore's rail network. Currently, the longest in operation are at Changi Airport MRT station, measuring 37.9m.
The Bras Basah station's expansive walls look bare now, but there are plans to project slide shows onto them.
There is still some work to be done before the station is completed. Electrical and signalling systems required to run the trains are being installed and testing of the systems is expected to commence in 2009.
The $6.7 billion 33.3km Circle Line is expected to open in stages from 2010. The first phase is likely to be a 5km stretch between Bartley and Marymount.
Although the city and eastern portions of the line are largely in advanced stages of completion, some stations - including the new Nicoll Highway and Dakota stations - are lagging behind.
A NEW reflection pool sited between the Singapore Art Museum and Singapore Management University (SMU) is more than a water feature providing cool relief to passers-by.
The tennis court-sized pool is also a skylight for the Bras Basah MRT station, a five-level structure that goes 35m below ground - deeper than any MRT station here.
The skylight idea from local firm WoHa Architects allows the station to be used without artificial lighting in the day. At night, the lit station gives the open area in front of the SMU a surreal glow.
When sunlight streams through the glass roof, slanting side walls reflect it to deeper levels of the station.
Giving The Straits Times a tour of the station, the Land Transport Authority's Circle Line director Sim Wee Meng said the skylight will help make the commuting experience better.
'As soon as commuters come out of the train, they'd feel like they're already at the surface,' Mr Sim said.
The walls are clad in acoustic panels to minimise echoes, making the deep station less noisy.
The 70,000 litres of running water on the roof have more than an aesthetic role. The pool also helps to dissipate heat.
'If it was just plain glass without the water, it would get quite hot,' explained Mr Sim.
Being so deep, the station is served by 41.3m-long escalators - the longest in Singapore's rail network. Currently, the longest in operation are at Changi Airport MRT station, measuring 37.9m.
The Bras Basah station's expansive walls look bare now, but there are plans to project slide shows onto them.
There is still some work to be done before the station is completed. Electrical and signalling systems required to run the trains are being installed and testing of the systems is expected to commence in 2009.
The $6.7 billion 33.3km Circle Line is expected to open in stages from 2010. The first phase is likely to be a 5km stretch between Bartley and Marymount.
Although the city and eastern portions of the line are largely in advanced stages of completion, some stations - including the new Nicoll Highway and Dakota stations - are lagging behind.
S'pore Has Fastest-Growing Prime Office Rents In The World: Report
Source : The Straits Times, Nov 22, 2007
It outpaces Mumbai as rents, occupancy costs rise 83% to $12.60 psf a month
PRIME office rents have grown faster in Singapore than anywhere else in the world over the past year, a new report has found.
The rate of increase beat even that in Mumbai, now the world's second most expensive office market, after London's West End, according to CB Richard Ellis (CBRE).
But overall, Singapore ranks 11th on the list of worldwide office rentals, which are generally rising quickly.
Rental levels plus other associated costs for Singapore prime office space shot up 82.6 per cent in the 12 months ended Sept 30 to $12.60 per sq ft (psf) a month, said the CBRE's Global Market Rents report. Apart from lease rates, occupancy costs include expenses for management and basic building maintenance.
In terms of occupancy costs, Moscow posted the second-fastest growth, of 65.4 per cent. Third in line was Mumbai, where occupancy costs grew 55 per cent.
The booming economics of the Asia-Pacific region continue to support strong demand for office space and to drive occupancy costs at a faster rate than in any other region, said CBRE in the report.
In comparing the costs, it looked at the typical achievable rent for a 10,000 sq ft unit in a top-quality building in a prime location.
Of the 171 markets it monitored, 85 per cent recorded growth in occupancy costs.
London's West End - which registered 41.9 per cent growth - still has the most expensive office space, at US$328.91 (S$476.76) psf a year.
Mumbai came in a distant second, at US$189.51 psf a year. But it is already 5 per cent more expensive than London City, where occupancy costs came to US$180.80 psf a year.
Moscow is ranked fourth most expensive, at US$180.78 psf a year.
To facilitate comparisons across markets, the report based the most expensive rents on US dollars while rental growth was measured in local currency terms.
Singapore is ranked 11th on the world's most expensive list, at US$102.37 (S$148.39) psf a year.
It came just after Hong Kong, where costs were at US$106.31 psf a year.
At $100.79 psf a year, rents for prime office space in New York's Midtown have come down. Costs in Tokyo ranged from US$154.56 to US$178.61 psf a year.
As was the case with other key Asian financial centres such as Tokyo and Hong Kong, office vacancy rates remained low in Singapore at 5 per cent or less, said CBRE.
It noted that the uncertainty in global financial markets has had no discernible impact on demand for office space in Singapore.
The companies in Singapore that require larger spaces are largely from the fast-growing financial and insurance sectors. And before year-end, several sizeable bookings by companies in these two sectors are expected, CBRE said.
The report also echoed comments by property consultants about rising tenant resistance to rental hikes as rents are at record-high levels.
Companies are now more prepared to move to cheaper space further out of town to avoid paying high rents.
It outpaces Mumbai as rents, occupancy costs rise 83% to $12.60 psf a month
PRIME office rents have grown faster in Singapore than anywhere else in the world over the past year, a new report has found.
The rate of increase beat even that in Mumbai, now the world's second most expensive office market, after London's West End, according to CB Richard Ellis (CBRE).
But overall, Singapore ranks 11th on the list of worldwide office rentals, which are generally rising quickly.
Rental levels plus other associated costs for Singapore prime office space shot up 82.6 per cent in the 12 months ended Sept 30 to $12.60 per sq ft (psf) a month, said the CBRE's Global Market Rents report. Apart from lease rates, occupancy costs include expenses for management and basic building maintenance.
In terms of occupancy costs, Moscow posted the second-fastest growth, of 65.4 per cent. Third in line was Mumbai, where occupancy costs grew 55 per cent.
The booming economics of the Asia-Pacific region continue to support strong demand for office space and to drive occupancy costs at a faster rate than in any other region, said CBRE in the report.
In comparing the costs, it looked at the typical achievable rent for a 10,000 sq ft unit in a top-quality building in a prime location.
Of the 171 markets it monitored, 85 per cent recorded growth in occupancy costs.
London's West End - which registered 41.9 per cent growth - still has the most expensive office space, at US$328.91 (S$476.76) psf a year.
Mumbai came in a distant second, at US$189.51 psf a year. But it is already 5 per cent more expensive than London City, where occupancy costs came to US$180.80 psf a year.
Moscow is ranked fourth most expensive, at US$180.78 psf a year.
To facilitate comparisons across markets, the report based the most expensive rents on US dollars while rental growth was measured in local currency terms.
Singapore is ranked 11th on the world's most expensive list, at US$102.37 (S$148.39) psf a year.
It came just after Hong Kong, where costs were at US$106.31 psf a year.
At $100.79 psf a year, rents for prime office space in New York's Midtown have come down. Costs in Tokyo ranged from US$154.56 to US$178.61 psf a year.
As was the case with other key Asian financial centres such as Tokyo and Hong Kong, office vacancy rates remained low in Singapore at 5 per cent or less, said CBRE.
It noted that the uncertainty in global financial markets has had no discernible impact on demand for office space in Singapore.
The companies in Singapore that require larger spaces are largely from the fast-growing financial and insurance sectors. And before year-end, several sizeable bookings by companies in these two sectors are expected, CBRE said.
The report also echoed comments by property consultants about rising tenant resistance to rental hikes as rents are at record-high levels.
Companies are now more prepared to move to cheaper space further out of town to avoid paying high rents.
ECs Gain Appeal As HDB, Private Home Price Gap Widens
Source : The Straits Times, Nov 22, 2007
Easing of rules expected to increase demand for exec condos
THE rising property market has brought executive condominiums (ECs) back from the brink of extinction.
ON A REBOUND: Developers of executive condos, such as the Quintet ECs (above), are optimistic as prices for these homes are expected to rise. Many had expected La Casa in Woodlands to be the last EC project on the market when it was launched for sale in 2005.
These homes - which are halfway between public housing and private condominiums - suddenly looked much more appealing after rules for buyers were relaxed on Tuesday.
Property consultants now expect that more plots for ECs, such as the 2.27ha site placed on the market on Tuesday, will soon be offered.
The main reason: the widening gap between prices of resale Housing Board flats and those of private condos. ECs, which come with condo facilities but with sale restrictions similar to those for public housing, were introduced in 1995 to bridge this gap.
They became relatively unpopular, however, after the property market plunged a few years later, making private condos more affordable.
In fact, when the first few ECs hit the resale market in 2004 after the minimum five-year occupation period, many were sold at a loss or at breakeven prices. This was because they were booked when prices were at their peak in 1996.
Many people expected Far East Organization's La Casa in Woodlands to be the last EC project on the market when it was launched for sale in 2005.
'Mass market condo prices were in the doldrums, making ECs redundant. Today, that's a different story,' said Colliers International's director of research and consultancy, Ms Tay Huey Ying.
Private home prices surged 22.9 per cent in the first nine months of the year - more than twice the rate achieved by resale HDB flats.
Lower-priced ECs are more attractive now because prices of condos in the suburbs - where ECs tend to be sited - have started to move up significantly. In the July-
September period, prices of non-landed homes outside the central region rose 7.9 per cent. Consultants expect this growth to continue.
The easing of EC rules is also expected to increase demand from people looking to move from HDB flats. The HDB removed a hurdle for upgraders by scrapping a resale levy payable by EC buyers who had previously bought government-subsidised flats.
Buyers of new EC units are also no longer barred from buying second new EC units or new flats. In addition, the HDB now requires developers to reserve 90 per cent of units for first-time buyers in the first month of sale.
Although ECs still cannot be sold within the first five years and remain out of bounds to foreigners within the first 10 years, the easing of rules has helped ECs shake off their tag as second-rate condos, said Mr Eric Cheng, the executive director of the HSR property group.
Potential buyers include property agent Lester Tan, 27, who has been living with his parents for the past five years since he got married.
He and his wife started looking for a condo about two years ago, but regretted waiting so long to buy one, as prices have shot up.
He said: 'We heard that the Punggol EC may be launched, and we are quite excited about it.'
Potential upgraders like Ms Elsie Cheng, 31, are also eyeing the future EC in Punggol. The teacher - who lives with her husband, seven-month-old son and maid in a two-bedroom EC unit in Tampines - is looking to move into a bigger EC.
'Why pay so much for a private condo?' she asked.
Knight Frank's head of research and consultancy, Mr Nicholas Mak, said the changes were likely to raise the proportion of upgraders among EC buyers, from an estimated 5 per cent to 10 per cent, to 20 per cent to 25 per cent.
Developers such as Frasers Centrepoint Homes, which built the Lilydale and Quintet ECs, are optimistic. Its chief operating officer, Mr Cheang Kok Kheong, told The Straits Times: 'The EC will do well in today's market as a hybrid property - apartments with condo facilities but without private condo price tags.'
He added: 'As a reflection of the strong confidence and growth potential of the EC market, we expect to see increased competition in this market segment and more developers taking part in upcoming EC land tenders.'
Buyers hoping to make a quick buck from ECs, however, should take heed. 'The (full) value of the EC will not be realised immediately but in 10 years, subject to the property market being buoyant at that time,' said PropNex chief executive Mohamed Ismail.
For now, all eyes are on the EC site in Punggol Field. Estimated to be able to fit about 620 homes, it will be put up for tender once a developer commits to a minimum bid that meets the Government's reserve price.
The EC units, however, will meet only a small portion of the current demand for new homes. In a recent HDB sales exercise, almost 8,000 families applied for just 400 flats in Telok Blangah, while more than 1,600 applied for 516 homes in Punggol.
--------------------------------------------------------------------------------
Growing interest
# The HDB has removed a hurdle for upgraders by scrapping a resale levy that executive condo (EC) buyers who already own HDB flats have to pay.
# ECs bridge the price gap between HDB flats and private homes. Private home prices rose 22.9 per cent in the first nine months of the year - more than twice the rate achieved by HDB flats.
# ECs are more attractive now because prices of condos in the suburbs - where they tend to be sited - have started to move up significantly.
Easing of rules expected to increase demand for exec condos
THE rising property market has brought executive condominiums (ECs) back from the brink of extinction.
ON A REBOUND: Developers of executive condos, such as the Quintet ECs (above), are optimistic as prices for these homes are expected to rise. Many had expected La Casa in Woodlands to be the last EC project on the market when it was launched for sale in 2005.
These homes - which are halfway between public housing and private condominiums - suddenly looked much more appealing after rules for buyers were relaxed on Tuesday.
Property consultants now expect that more plots for ECs, such as the 2.27ha site placed on the market on Tuesday, will soon be offered.
The main reason: the widening gap between prices of resale Housing Board flats and those of private condos. ECs, which come with condo facilities but with sale restrictions similar to those for public housing, were introduced in 1995 to bridge this gap.
They became relatively unpopular, however, after the property market plunged a few years later, making private condos more affordable.
In fact, when the first few ECs hit the resale market in 2004 after the minimum five-year occupation period, many were sold at a loss or at breakeven prices. This was because they were booked when prices were at their peak in 1996.
Many people expected Far East Organization's La Casa in Woodlands to be the last EC project on the market when it was launched for sale in 2005.
'Mass market condo prices were in the doldrums, making ECs redundant. Today, that's a different story,' said Colliers International's director of research and consultancy, Ms Tay Huey Ying.
Private home prices surged 22.9 per cent in the first nine months of the year - more than twice the rate achieved by resale HDB flats.
Lower-priced ECs are more attractive now because prices of condos in the suburbs - where ECs tend to be sited - have started to move up significantly. In the July-
September period, prices of non-landed homes outside the central region rose 7.9 per cent. Consultants expect this growth to continue.
The easing of EC rules is also expected to increase demand from people looking to move from HDB flats. The HDB removed a hurdle for upgraders by scrapping a resale levy payable by EC buyers who had previously bought government-subsidised flats.
Buyers of new EC units are also no longer barred from buying second new EC units or new flats. In addition, the HDB now requires developers to reserve 90 per cent of units for first-time buyers in the first month of sale.
Although ECs still cannot be sold within the first five years and remain out of bounds to foreigners within the first 10 years, the easing of rules has helped ECs shake off their tag as second-rate condos, said Mr Eric Cheng, the executive director of the HSR property group.
Potential buyers include property agent Lester Tan, 27, who has been living with his parents for the past five years since he got married.
He and his wife started looking for a condo about two years ago, but regretted waiting so long to buy one, as prices have shot up.
He said: 'We heard that the Punggol EC may be launched, and we are quite excited about it.'
Potential upgraders like Ms Elsie Cheng, 31, are also eyeing the future EC in Punggol. The teacher - who lives with her husband, seven-month-old son and maid in a two-bedroom EC unit in Tampines - is looking to move into a bigger EC.
'Why pay so much for a private condo?' she asked.
Knight Frank's head of research and consultancy, Mr Nicholas Mak, said the changes were likely to raise the proportion of upgraders among EC buyers, from an estimated 5 per cent to 10 per cent, to 20 per cent to 25 per cent.
Developers such as Frasers Centrepoint Homes, which built the Lilydale and Quintet ECs, are optimistic. Its chief operating officer, Mr Cheang Kok Kheong, told The Straits Times: 'The EC will do well in today's market as a hybrid property - apartments with condo facilities but without private condo price tags.'
He added: 'As a reflection of the strong confidence and growth potential of the EC market, we expect to see increased competition in this market segment and more developers taking part in upcoming EC land tenders.'
Buyers hoping to make a quick buck from ECs, however, should take heed. 'The (full) value of the EC will not be realised immediately but in 10 years, subject to the property market being buoyant at that time,' said PropNex chief executive Mohamed Ismail.
For now, all eyes are on the EC site in Punggol Field. Estimated to be able to fit about 620 homes, it will be put up for tender once a developer commits to a minimum bid that meets the Government's reserve price.
The EC units, however, will meet only a small portion of the current demand for new homes. In a recent HDB sales exercise, almost 8,000 families applied for just 400 flats in Telok Blangah, while more than 1,600 applied for 516 homes in Punggol.
--------------------------------------------------------------------------------
Growing interest
# The HDB has removed a hurdle for upgraders by scrapping a resale levy that executive condo (EC) buyers who already own HDB flats have to pay.
# ECs bridge the price gap between HDB flats and private homes. Private home prices rose 22.9 per cent in the first nine months of the year - more than twice the rate achieved by HDB flats.
# ECs are more attractive now because prices of condos in the suburbs - where they tend to be sited - have started to move up significantly.