Wednesday, December 5, 2007
房地产巨头：次贷问题影响不大 明年楼市仍然乐观
《联合早报》Dec 05, 2007
新加坡房地产发展商公会会长钟世平说，该公会跟政府一样关注房地产市场的暴涨，不过，他提醒，过去12个月的房地产价格上涨虽然惊人，却是从一个非常低的起点向上攀爬。他相信，要缓和接下来的房地产价格，最好的方法是保持透明化，并且及时地发布供应与需求数据。
对于越演越烈的美国次贷问题，本报昨天分头访问的几位房地产巨头，包括城市发展（CDL）执行主席郭令明、嘉德置地（CapitaLand）总裁廖文良，以及星狮地产（Frasers Centrepoint）总裁林怡胜，都一致认为，有关局势虽然进一步恶化，但其实对新加坡楼市的影响不大，明年的前景仍然乐观。
钟世平昨天在新加坡房地产发展商公会（REDAS）的常年晚宴上致词时，也提到美国的次贷问题。他承认，2007年的市场情绪确实受到美国次贷问题的影响。
“不过，我们还是必须将这个因素，平衡地与整个频频创新高的一年来看。”
他表示，发展商公会自1959年成立以来，不论楼市兴旺或低迷，每年都会依照传统举办晚宴。“今年，不论以什么标准衡量，我们还是取得非常成功的一年，这从今年接近700人的出席率可见一般。”
昨晚在丽嘉登酒店举行的发展商公会第48届常年晚宴，邀请了贸工部长林勋强担任特别嘉宾。在场的房地产巨头除了钟世平、郭令明和林怡胜外，前新电信总裁李显扬也第一次以星狮集团新任主席身份，坐在贵宾席上，参与这场房地产界的盛会。
钟世平在致词时说，尽管外头的风暴不容忽视，明年的前景还是相当被看好。“油价上涨、美元走软、次贷危机，以及偶然的建筑材料供应震荡，我们都不应该掉以轻心。”
他认为，在综合度假胜地（IR）、F1大赛举办权等多个“引擎”的催动下，新加坡目前所处于一个前所未见的有利环境。“除开未可预见的情况，（明年）我们还是能有相当好的一个年头。”
嘉德置地总裁廖文良在越南接受本报访问时则表示，他相信美国次贷问题还没有全面浮现，接下来还可能有惊涛骇浪，以致市场信心进一步受到打击。尽管如此，他认为美国次贷危机对本地房地产市场的影响不大，对明年的强劲依然看好。接下来的屋价还会持续往上攀，但涨幅并不会像今年前三季般猛。
“美国房屋次贷危机真正在10月份才开始影响本地房地产市场。新加坡房地产市场在今年首三季里取得非常突出的表现，我们当时已卖出了很多的单位，目前手头上已没有什么可卖的，因此这一季的销售交易量相信将减少。这才是主要的原因。”
他认为，随着我国经济增长步伐在明年放缓，与经济挂钩的新加坡房地产市场也将进行整合，价格涨幅和交易量将比今年来得少。
星狮地产的林怡胜昨天接受本报的电访时也说，他相信这一场次贷风暴主要对美国和英国的冲击最大，亚洲楼市因为得到印度和中国蓬勃经济的扶持，所以没有太大影响。
“新加坡经过这一轮的经济重组后，又吸引到IR和F1大赛举办权，再加上移民人数不断上升，这一切都对整体楼市有利。展望明年，我相信房地产市场还是会继续维持强劲。”
城市发展的郭令明昨天在South Beach记者会上则说，本地市场虽然受到美国次贷问题的影响，进入“整合期”(consolidation)、市场情绪受到影响，但本地房地产市场的投资基本面还是很好的。
亚太将持续增长
对于2008年的房地产走势，他认为，接下来，市场关注的包括，市场从次贷问题的恢复程度，以及美国是否进入经济衰退时期。他有信心，在2008年，虽然市场应该会有“零星”的“小型风暴”，但他相信亚太区域应该会持续增长。就算是整合期，他也有信心市场能回弹，但希望房地产接下来不会直线向上回弹猛冲。
他指出，与96年的颠峰时期相比，中档私宅其实还落后了10％，但由于市场一直在拿过去十年房地产低迷的时期来比较，因此就觉得价格猛涨了不少。实际上，他认为，中东和美国在本区域的长期投资才刚开始进来，加上本地未来的发展（滨海湾等），海外主权基金也正在寻找地标性的建筑来投资，因此前景基本上还是乐观的。
新加坡房地产发展商公会会长钟世平说，该公会跟政府一样关注房地产市场的暴涨，不过，他提醒，过去12个月的房地产价格上涨虽然惊人，却是从一个非常低的起点向上攀爬。他相信，要缓和接下来的房地产价格，最好的方法是保持透明化，并且及时地发布供应与需求数据。
对于越演越烈的美国次贷问题，本报昨天分头访问的几位房地产巨头，包括城市发展（CDL）执行主席郭令明、嘉德置地（CapitaLand）总裁廖文良，以及星狮地产（Frasers Centrepoint）总裁林怡胜，都一致认为，有关局势虽然进一步恶化，但其实对新加坡楼市的影响不大，明年的前景仍然乐观。
钟世平昨天在新加坡房地产发展商公会（REDAS）的常年晚宴上致词时，也提到美国的次贷问题。他承认，2007年的市场情绪确实受到美国次贷问题的影响。
“不过，我们还是必须将这个因素，平衡地与整个频频创新高的一年来看。”
他表示，发展商公会自1959年成立以来，不论楼市兴旺或低迷，每年都会依照传统举办晚宴。“今年，不论以什么标准衡量，我们还是取得非常成功的一年，这从今年接近700人的出席率可见一般。”
昨晚在丽嘉登酒店举行的发展商公会第48届常年晚宴，邀请了贸工部长林勋强担任特别嘉宾。在场的房地产巨头除了钟世平、郭令明和林怡胜外，前新电信总裁李显扬也第一次以星狮集团新任主席身份，坐在贵宾席上，参与这场房地产界的盛会。
钟世平在致词时说，尽管外头的风暴不容忽视，明年的前景还是相当被看好。“油价上涨、美元走软、次贷危机，以及偶然的建筑材料供应震荡，我们都不应该掉以轻心。”
他认为，在综合度假胜地（IR）、F1大赛举办权等多个“引擎”的催动下，新加坡目前所处于一个前所未见的有利环境。“除开未可预见的情况，（明年）我们还是能有相当好的一个年头。”
嘉德置地总裁廖文良在越南接受本报访问时则表示，他相信美国次贷问题还没有全面浮现，接下来还可能有惊涛骇浪，以致市场信心进一步受到打击。尽管如此，他认为美国次贷危机对本地房地产市场的影响不大，对明年的强劲依然看好。接下来的屋价还会持续往上攀，但涨幅并不会像今年前三季般猛。
“美国房屋次贷危机真正在10月份才开始影响本地房地产市场。新加坡房地产市场在今年首三季里取得非常突出的表现，我们当时已卖出了很多的单位，目前手头上已没有什么可卖的，因此这一季的销售交易量相信将减少。这才是主要的原因。”
他认为，随着我国经济增长步伐在明年放缓，与经济挂钩的新加坡房地产市场也将进行整合，价格涨幅和交易量将比今年来得少。
星狮地产的林怡胜昨天接受本报的电访时也说，他相信这一场次贷风暴主要对美国和英国的冲击最大，亚洲楼市因为得到印度和中国蓬勃经济的扶持，所以没有太大影响。
“新加坡经过这一轮的经济重组后，又吸引到IR和F1大赛举办权，再加上移民人数不断上升，这一切都对整体楼市有利。展望明年，我相信房地产市场还是会继续维持强劲。”
城市发展的郭令明昨天在South Beach记者会上则说，本地市场虽然受到美国次贷问题的影响，进入“整合期”(consolidation)、市场情绪受到影响，但本地房地产市场的投资基本面还是很好的。
亚太将持续增长
对于2008年的房地产走势，他认为，接下来，市场关注的包括，市场从次贷问题的恢复程度，以及美国是否进入经济衰退时期。他有信心，在2008年，虽然市场应该会有“零星”的“小型风暴”，但他相信亚太区域应该会持续增长。就算是整合期，他也有信心市场能回弹，但希望房地产接下来不会直线向上回弹猛冲。
他指出，与96年的颠峰时期相比，中档私宅其实还落后了10％，但由于市场一直在拿过去十年房地产低迷的时期来比较，因此就觉得价格猛涨了不少。实际上，他认为，中东和美国在本区域的长期投资才刚开始进来，加上本地未来的发展（滨海湾等），海外主权基金也正在寻找地标性的建筑来投资，因此前景基本上还是乐观的。
三房式组屋再创新高
《联合早报》Dec 05, 2007
三房式组屋售价媲美五房式，海山街和马林百列通道的三房式组屋，上个月分别以38万2000元和35万元转手，双双创下新高！
其中，在克罗士街上段（俗称海山街）的三房式组屋，屋龄已有27年，38万2000元的转售价，比估价多出约10万元。
这间三房式组屋吸引人的地方是，地点在市区里，而且是在东北地铁线上牛车水和克拉码头地铁站之间。
而在马林通道的三房式组屋，屋龄则已经有31年，特点是拥有美丽的海景，35万元的售价比估价多出约7万5000元，市场人士指出，这应该都是历来的最高价。
这样的转售价甚至比市场上一些五房式的还高，比如，上个月时在大巴窑一间屋龄31年的五房式组屋，是以33万7000元转手。
五房抢风头
房地产经纪指出说，在1995年上一回房地产高峰时，屡创新高的是碧山组屋区的公寓式组屋，这一轮所看到的是五房式和三房式组屋抢尽风头。
这些五房式和三房式组屋所取得的转售价，不但比1995年房地产高峰时的还高，而且，有一次比一次还高的趋势。
买家所要的是，随时欣赏海景。
高价看海景
在马林百列通道的这间三房式组屋，是九楼的一间角落单位，除了装饰漂亮，便是拥有没有阻挡的海景，是买家所喜欢的一大特点。
房家是一名女士，刚卖出自己的私人房地产，购买这间三房式组屋的目的，是当作退休住用。
三房式组屋售价媲美五房式，海山街和马林百列通道的三房式组屋，上个月分别以38万2000元和35万元转手，双双创下新高！
其中，在克罗士街上段（俗称海山街）的三房式组屋，屋龄已有27年，38万2000元的转售价，比估价多出约10万元。
这间三房式组屋吸引人的地方是，地点在市区里，而且是在东北地铁线上牛车水和克拉码头地铁站之间。
而在马林通道的三房式组屋，屋龄则已经有31年，特点是拥有美丽的海景，35万元的售价比估价多出约7万5000元，市场人士指出，这应该都是历来的最高价。
这样的转售价甚至比市场上一些五房式的还高，比如，上个月时在大巴窑一间屋龄31年的五房式组屋，是以33万7000元转手。
五房抢风头
房地产经纪指出说，在1995年上一回房地产高峰时，屡创新高的是碧山组屋区的公寓式组屋，这一轮所看到的是五房式和三房式组屋抢尽风头。
这些五房式和三房式组屋所取得的转售价，不但比1995年房地产高峰时的还高，而且，有一次比一次还高的趋势。
买家所要的是，随时欣赏海景。
高价看海景
在马林百列通道的这间三房式组屋，是九楼的一间角落单位，除了装饰漂亮，便是拥有没有阻挡的海景，是买家所喜欢的一大特点。
房家是一名女士，刚卖出自己的私人房地产，购买这间三房式组屋的目的，是当作退休住用。
Three Lawyers Suspended For Touting
Source : The Business Times, Wednesday, December 5, 2007
Court rules that evidence procurred through entrapment is admissible.
A DISCIPLINARY court yesterday suspended three lawyers who had touted for conveyancing work, after ruling that entrapment evidence against the trio was admissible.
In separate cases, a private investigator obtained evidence through video and audio recordings that the lawyers had touted for work.
In defence, the lawyers had argued that the evidence should not be admitted because it had been obtained through entrapment by the private investigator.
However, the Court of Three Judges ruled yesterday that entrapment evidence can be admitted, whether it is done by law enforcement officers or lawyers for the purpose of bringing disciplinary proceedings against them.
The court also said that a prosecution based on entrapment evidence would be allowed if it was done to determine the accused person’s guilt.
The three lawyers are suspended from practising for between nine and 15 months.
In one of the cases, private investigator Jenny Lee contacted lawyer Lilian Bay, claiming to be a real estate agent for a prospective property buyer who needed a conveyancing lawyer.
Ms Lee met Bay the next day and asked if Bay would pay a referral fee.
In response, Bay wrote ‘10 per cent’ on a piece of paper and gave it to Ms Lee.
Ms Lee also mentioned the possibility of referring transactions to Bay and asked what she would get in referral fees.
Bay said that she would pay a flat referral fee of $100 per case.
Bay was subsequently charged by the Law Society on the basis of these incidents.
The Disciplinary Committee (DC), an independent body appointed by the Chief Justice, found that Bay’s misconduct was not severe enough for disciplinary action and imposed a penalty of $7,000.
But the Law Society disagreed and applied for Bay to appear before the court.
The facts in the other two cases involving lawyers James Liew and Phyllis Tan were similar.
The court found that the DC’s admission of the evidence against the lawyers meant that the Law Society had proven its case against each of them.
The court also ordered the lawyers to pay the costs of the Law Society in the disciplinary proceedings before itself and the DC.
Court rules that evidence procurred through entrapment is admissible.
A DISCIPLINARY court yesterday suspended three lawyers who had touted for conveyancing work, after ruling that entrapment evidence against the trio was admissible.
In separate cases, a private investigator obtained evidence through video and audio recordings that the lawyers had touted for work.
In defence, the lawyers had argued that the evidence should not be admitted because it had been obtained through entrapment by the private investigator.
However, the Court of Three Judges ruled yesterday that entrapment evidence can be admitted, whether it is done by law enforcement officers or lawyers for the purpose of bringing disciplinary proceedings against them.
The court also said that a prosecution based on entrapment evidence would be allowed if it was done to determine the accused person’s guilt.
The three lawyers are suspended from practising for between nine and 15 months.
In one of the cases, private investigator Jenny Lee contacted lawyer Lilian Bay, claiming to be a real estate agent for a prospective property buyer who needed a conveyancing lawyer.
Ms Lee met Bay the next day and asked if Bay would pay a referral fee.
In response, Bay wrote ‘10 per cent’ on a piece of paper and gave it to Ms Lee.
Ms Lee also mentioned the possibility of referring transactions to Bay and asked what she would get in referral fees.
Bay said that she would pay a flat referral fee of $100 per case.
Bay was subsequently charged by the Law Society on the basis of these incidents.
The Disciplinary Committee (DC), an independent body appointed by the Chief Justice, found that Bay’s misconduct was not severe enough for disciplinary action and imposed a penalty of $7,000.
But the Law Society disagreed and applied for Bay to appear before the court.
The facts in the other two cases involving lawyers James Liew and Phyllis Tan were similar.
The court found that the DC’s admission of the evidence against the lawyers meant that the Law Society had proven its case against each of them.
The court also ordered the lawyers to pay the costs of the Law Society in the disciplinary proceedings before itself and the DC.
MGP Kimi Awarded Tender For White Site At Marina View
Source : The Straits Times, Dec 5, 2007
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THE Urban Redevelopment Authority (URA) has awarded the tender for the white site at Marina View (Land Parcel B) to MGP Kimi Pte Ltd.
A statement released on Wednesday said that MGP Kimi had submitted the highest bid of $8,389.58 per sq m of gross floor area.
The maximum permissible gross floor area of the site is 113,580 sq m.
The tender was launched on July 31, this year and closed on Nov 13.
It was offered for sale on a 99-year lease.
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THE Urban Redevelopment Authority (URA) has awarded the tender for the white site at Marina View (Land Parcel B) to MGP Kimi Pte Ltd.A statement released on Wednesday said that MGP Kimi had submitted the highest bid of $8,389.58 per sq m of gross floor area.
The maximum permissible gross floor area of the site is 113,580 sq m.
The tender was launched on July 31, this year and closed on Nov 13.
It was offered for sale on a 99-year lease.
China Developer Buys Sentosa Cove Plot
Source : The Straits Times, Dec 5, 2007
It put in a bid of $215.7m or $1,350 psf
A CHINA developer has chosen Sentosa Cove for its maiden investment outside of China, paying a higher than expected price of $215 million for Pearl Island.
Although sentiment in Singapore's property market has somewhat weakened, that has not deterred Ximeng Land, which is owned by the majority shareholders of Ximeng Asset Holdings Co, the parent company of a luxury developer Beijing Ximeng Real Estate.
The price that Ximeng paid works out to $1,350 per square foot (psf), which far surpassed the previous en-bloc price on the Cove of $1,099 psf.
Pearl Island is the last of five island sites in Sentosa Cove. They are slated for landed homes.
With Pearl Island taken, Sentosa Cove sites are nearly all sold.
There remains just one condo plot - the tender for which closes next Wednesday - and two individual sea-facing bungalow plots.
Prices at Sentosa Cove have climbed significantly since sales begun back in 2003 when the property market here was in a slump.
It put in a bid of $215.7m or $1,350 psf
A CHINA developer has chosen Sentosa Cove for its maiden investment outside of China, paying a higher than expected price of $215 million for Pearl Island.
Although sentiment in Singapore's property market has somewhat weakened, that has not deterred Ximeng Land, which is owned by the majority shareholders of Ximeng Asset Holdings Co, the parent company of a luxury developer Beijing Ximeng Real Estate.
The price that Ximeng paid works out to $1,350 per square foot (psf), which far surpassed the previous en-bloc price on the Cove of $1,099 psf.
Pearl Island is the last of five island sites in Sentosa Cove. They are slated for landed homes.
With Pearl Island taken, Sentosa Cove sites are nearly all sold.
There remains just one condo plot - the tender for which closes next Wednesday - and two individual sea-facing bungalow plots.
Prices at Sentosa Cove have climbed significantly since sales begun back in 2003 when the property market here was in a slump.
Easing In Property Rally Can Be Good: Developers
Source : The Straits Times, Dec 5, 2007
PROPERTY developers are so rushed off their feet that they say the idea of the United States sub-prime crisis taking some froth out of the exuberant market can only be good.
CapitaLand's chief executive, Mr Liew Mun Leong, said in Ho Chi Minh City yesterday that market confidence has been affected a little by the sub-prime issue but a slowdown may not be bad.
'If the economy moderates, the property market will moderate... It is not necessarily a bad thing,' he said.
'Sometimes you need a little bit of slowdown,' he added. This is so that businesses can be sustained.
Mr Liew also said that developers will probably not pay bumper high prices for collective sale sites and that supply volume may slip.
However, prices have been holding and he does not see them falling next year.
A similar note was struck by Mr Simon Cheong, the president of the Real Estate Developers' Association (Redas).
He told the Association's 48th anniversary dinner last night that the build-up of new projects has left the industry a little breathless.
'We are now the victims of our own success. Our biggest worry is now rising costs, shortage of construction materials and inadequate skilled labour,' said Mr Cheong at the Ritz-Carlton Millenia Singapore hotel.
He added that developers share the Government's concerns about rising exuberance in the market and backed its efforts to apply a touch of the brakes.
Mr Cheong was also quick to add that it has taken almost 10 years for the property market to turn around.
'Redas is of the view that it is difficult to micro-manage, especially in a global context where the flow of funds into Singapore property is driven by a bigger picture than just short-term opportunistic buy-ins,' he said.
Singapore is no different from other major gateway cities, where prime real estate commands premium rents, he added.
Trade and Industry Minister Lim Hng Kiang, who was the guest-of-honour, said rising costs are a challenge that accompanies the growth in all parts of the property market.
The Government, he reiterated, is ensuring there will be a sufficient supply of office, residential and hotel space.
Mr Cheong also said that Redas has created a foreign investment committee, to be chaired by Hongkong Land director Robert Garman, to encourage foreign companies to come to Singapore and stay invested.
He warned that developers should take stock of the storm brewing globally as they respond to local opportunities.
'Rising oil prices, a weakening US dollar, the sub-prime crisis and occasional shocks in the supply of construction materials cannot be taken too lightly.'
PROPERTY developers are so rushed off their feet that they say the idea of the United States sub-prime crisis taking some froth out of the exuberant market can only be good.
CapitaLand's chief executive, Mr Liew Mun Leong, said in Ho Chi Minh City yesterday that market confidence has been affected a little by the sub-prime issue but a slowdown may not be bad.
'If the economy moderates, the property market will moderate... It is not necessarily a bad thing,' he said.
'Sometimes you need a little bit of slowdown,' he added. This is so that businesses can be sustained.
Mr Liew also said that developers will probably not pay bumper high prices for collective sale sites and that supply volume may slip.
However, prices have been holding and he does not see them falling next year.
A similar note was struck by Mr Simon Cheong, the president of the Real Estate Developers' Association (Redas).
He told the Association's 48th anniversary dinner last night that the build-up of new projects has left the industry a little breathless.
'We are now the victims of our own success. Our biggest worry is now rising costs, shortage of construction materials and inadequate skilled labour,' said Mr Cheong at the Ritz-Carlton Millenia Singapore hotel.
He added that developers share the Government's concerns about rising exuberance in the market and backed its efforts to apply a touch of the brakes.
Mr Cheong was also quick to add that it has taken almost 10 years for the property market to turn around.
'Redas is of the view that it is difficult to micro-manage, especially in a global context where the flow of funds into Singapore property is driven by a bigger picture than just short-term opportunistic buy-ins,' he said.
Singapore is no different from other major gateway cities, where prime real estate commands premium rents, he added.
Trade and Industry Minister Lim Hng Kiang, who was the guest-of-honour, said rising costs are a challenge that accompanies the growth in all parts of the property market.
The Government, he reiterated, is ensuring there will be a sufficient supply of office, residential and hotel space.
Mr Cheong also said that Redas has created a foreign investment committee, to be chaired by Hongkong Land director Robert Garman, to encourage foreign companies to come to Singapore and stay invested.
He warned that developers should take stock of the storm brewing globally as they respond to local opportunities.
'Rising oil prices, a weakening US dollar, the sub-prime crisis and occasional shocks in the supply of construction materials cannot be taken too lightly.'
Ophir-Rochor Area Slated For Trendy Makeover
Source : The Straits Times, Dec 5, 2007
Redevelopment will see new hotels, offices and shops; area to become an 'extension of Bugis'
IT IS all a bit sleepy and humdrum now, but the walkways of the Ophir-Rochor zone are set for a jazzy makeover that will add trendy hotels and shops, offices and more.
Plans to rev up the hotchpotch zone - it has old colonial lanes at one end and a hot air balloon at the other - were unveiled by the Government yesterday.
The makeover already has its centrepoint and crown jewel - the eco-friendly South Beach project designed by world- renowned British architect Norman Foster and his partners.
The development includes two towers of up to 45 storeys linked to the conserved military buildings of the old Beach Road camp by an eye-catching 'environmental filter' canopy.
There will also be premium office space, two luxury hotels of up to 700 rooms, service apartments and shops on the 3.5ha site, which is being developed by a City Developments consortium.
Minister of State for National Development Grace Fu said yesterday that the landmark project 'will be a first glimpse into exciting plans ahead for the Ophir Road/ Rochor Road corridor'.
She added that the Government intends to 'build on the momentum' by developing land parcels.
The Urban Redevelopment Authority will release more details early next year, but some sites may be included in the Government Land Sales Programme due later this month.
Potential plots up for grabs include the Ophir Road/Beach Road tract in front of Parkview Square - this hosted Cirque Du Soleil in 2005 - and the site at Tan Quee Lan Street, now home to the DHL balloon.
Ms Fu added that the new district will be an 'extension of Bugis', connecting Marina Centre to Bugis and Singapore's civic district.
The landscape, rich in colonial charm, has been constantly changing in the last decade.
When Bugis Junction opened in 1995, property pundits predicted that the project would fail to draw the crowds as it was not a prime location.
But Bugis has blossomed into a trendy youth hangout, complemented by fancy dining and drinking hot spots along Seah and Purvis Streets.
The bohemian charm of independent shops that line nearby Haji Lane also keeps the area buzzing.
Property analysts welcomed the plans.
'The market needs something on the fringe of the Central Business District (CBD). Office buildings with a mix of retail and hotels will be popular,' said Mr Ku Swee Yong, director of business development and marketing at Savills Singapore.
Mr Colin Tan, head of research and consultancy at Chesterton International, agreed there was great potential in the area, but said offices would not likely command Grade A rents like in the CBD.
'Offices here will be ideally suited for small and medium-sized enterprises,' he said. But more road infrastructure such as broader lanes or expressways are needed to relieve congestion, he added.
Knight Frank's director for research and consultancy Nicholas Mak welcomed the plans to liven the area, as it 'has always been a bit sleepy', but hoped that the area's heritage and shophouses would be conserved.
Mr Mak said developers will be interested, although a 'balance of the old and new' was important in retaining the character of the district.
Redevelopment will see new hotels, offices and shops; area to become an 'extension of Bugis'
IT IS all a bit sleepy and humdrum now, but the walkways of the Ophir-Rochor zone are set for a jazzy makeover that will add trendy hotels and shops, offices and more.
Plans to rev up the hotchpotch zone - it has old colonial lanes at one end and a hot air balloon at the other - were unveiled by the Government yesterday.
The makeover already has its centrepoint and crown jewel - the eco-friendly South Beach project designed by world- renowned British architect Norman Foster and his partners.
The development includes two towers of up to 45 storeys linked to the conserved military buildings of the old Beach Road camp by an eye-catching 'environmental filter' canopy.
There will also be premium office space, two luxury hotels of up to 700 rooms, service apartments and shops on the 3.5ha site, which is being developed by a City Developments consortium.
Minister of State for National Development Grace Fu said yesterday that the landmark project 'will be a first glimpse into exciting plans ahead for the Ophir Road/ Rochor Road corridor'.
She added that the Government intends to 'build on the momentum' by developing land parcels.
The Urban Redevelopment Authority will release more details early next year, but some sites may be included in the Government Land Sales Programme due later this month.
Potential plots up for grabs include the Ophir Road/Beach Road tract in front of Parkview Square - this hosted Cirque Du Soleil in 2005 - and the site at Tan Quee Lan Street, now home to the DHL balloon.
Ms Fu added that the new district will be an 'extension of Bugis', connecting Marina Centre to Bugis and Singapore's civic district.
The landscape, rich in colonial charm, has been constantly changing in the last decade.
When Bugis Junction opened in 1995, property pundits predicted that the project would fail to draw the crowds as it was not a prime location.
But Bugis has blossomed into a trendy youth hangout, complemented by fancy dining and drinking hot spots along Seah and Purvis Streets.
The bohemian charm of independent shops that line nearby Haji Lane also keeps the area buzzing.
Property analysts welcomed the plans.
'The market needs something on the fringe of the Central Business District (CBD). Office buildings with a mix of retail and hotels will be popular,' said Mr Ku Swee Yong, director of business development and marketing at Savills Singapore.
Mr Colin Tan, head of research and consultancy at Chesterton International, agreed there was great potential in the area, but said offices would not likely command Grade A rents like in the CBD.
'Offices here will be ideally suited for small and medium-sized enterprises,' he said. But more road infrastructure such as broader lanes or expressways are needed to relieve congestion, he added.
Knight Frank's director for research and consultancy Nicholas Mak welcomed the plans to liven the area, as it 'has always been a bit sleepy', but hoped that the area's heritage and shophouses would be conserved.
Mr Mak said developers will be interested, although a 'balance of the old and new' was important in retaining the character of the district.
South Beach Project Kicks Off New Plans For Beach Road
Source : Channel NewsAsia, 04 December 2007
The Ophir Road/Rochor Road corridor is set to see new developments that will turn it into an exciting commercial node to complement Marina Bay.
Minister of State for National Development Grace Fu revealed this at the signing ceremony for the South Beach project on Tuesday.
City Developments Limited, along with Istithmar and Elad Group, signed the agreement to build up the South Beach area in Beach Road. They will invest up to S$2.5 billion in the project.
It will see the former NCO Club building and some army camps at Beach Road transforming into a harmonious collection of buildings, featuring a boutique hotel, a brand name hotel and high-end residential units. There will also be space for offices.
City Developments said it was mindful of the site's heritage when designing the project.
Kwek Leng Beng, executive chairman of City Developments, said: "South Beach is strategically located in what is arguably the last historical iconic site. Mindful of its heritage, the approach we have adopted is not just to build, but to give it new life - one that is sensitive to the preservation and beauty of the conserved buildings, yet combined with modern efficiencies.
"It will be another feather in Singapore's architectural cap for its exceptional eco-design that incorporates what Mother Nature has given us - that is the sun, the wind and the rain."
Construction begins next year. The South Beach development, along with other surrounding land parcels to be developed, will complement the Marina Bay area and connect Marina Centre to Bugis.
Ms Grace Fu said: "What this project would do to the area basically is provide it a very good start. It's going to inject life as well as vibrancy into this area... (the momentum) from this project will bring exciting projects and opportunities down the road."
The South Beach project marks the first participation of two major foreign investors in a government land tender in Singapore.
Foreign real estate investment in Singapore is estimated to have reached S$8.8 billion so far this year. This is an increase of 66% over the S$5.3 billion for the whole of 2006. - CNA/ir
The Ophir Road/Rochor Road corridor is set to see new developments that will turn it into an exciting commercial node to complement Marina Bay.
Minister of State for National Development Grace Fu revealed this at the signing ceremony for the South Beach project on Tuesday.City Developments Limited, along with Istithmar and Elad Group, signed the agreement to build up the South Beach area in Beach Road. They will invest up to S$2.5 billion in the project.
It will see the former NCO Club building and some army camps at Beach Road transforming into a harmonious collection of buildings, featuring a boutique hotel, a brand name hotel and high-end residential units. There will also be space for offices.
City Developments said it was mindful of the site's heritage when designing the project.
Kwek Leng Beng, executive chairman of City Developments, said: "South Beach is strategically located in what is arguably the last historical iconic site. Mindful of its heritage, the approach we have adopted is not just to build, but to give it new life - one that is sensitive to the preservation and beauty of the conserved buildings, yet combined with modern efficiencies.
"It will be another feather in Singapore's architectural cap for its exceptional eco-design that incorporates what Mother Nature has given us - that is the sun, the wind and the rain."
Construction begins next year. The South Beach development, along with other surrounding land parcels to be developed, will complement the Marina Bay area and connect Marina Centre to Bugis.
Ms Grace Fu said: "What this project would do to the area basically is provide it a very good start. It's going to inject life as well as vibrancy into this area... (the momentum) from this project will bring exciting projects and opportunities down the road."
The South Beach project marks the first participation of two major foreign investors in a government land tender in Singapore.
Foreign real estate investment in Singapore is estimated to have reached S$8.8 billion so far this year. This is an increase of 66% over the S$5.3 billion for the whole of 2006. - CNA/ir
CDL Chief Won Over By Norman Foster's Eco-Friendly Approach
Source : The Straits Times, Dec 5, 2007
IT ALL began with an inspiring speech by celebrated architect Norman Foster two years ago in Monaco.
GREEN ALL THE WAY: South Beach, designed by acclaimed architect Norman Foster, will incorporate comprehensive, cutting-edge eco-friendly features, such as an 'environmental filter' canopy that will cover the open spaces. -- PHOTO: CITY DEVELOPMENTS
City Developments (CDL) executive chairman Kwek Leng Beng was there to hear it and vowed that one day he would team up with the renowned Briton, who designed Singapore's Supreme Court.
'I was fascinated by his speech on creating eco-friendly buildings. I thought to myself that, someday, I would work with him as he has great in-depth knowledge and expertise, which complement CDL's green philosophy,' said Mr Kwek.
That dream was realised yesterday when CDL and two partners - Dubai World's Istithmar and United States-based Elad Group - signed a contract to build the landmark South Beach project.
The 3.5ha site with a gross floor area of 146,827 sq m sits on an entire block bounded by Nicoll Highway and Beach, Bras Basah and Middle roads.
Designed by Lord Foster's architectural firm, Foster & Partners, South Beach won over the authorities with a design that incorporated comprehensive, cutting-edge green features without compromising on aesthetics.
While CDL's $1.69 billion bid was not the highest, the group clinched the deal based on 'an impressive use of green technologies' and striking designs, said Minister of State for National Development Grace Fu yesterday.
South Beach will be made up of two towers, 45 and 42 storeys high, with slanting facades that will allow them to maximise ventilation and to channel air flow to ground-level spaces. A huge, wave-shaped 'environmental filter' canopy will cover the open areas that integrate the towers with the low-rise conserved buildings.
CDL, which already has several Green Mark awards under its belt, will be gunning for the highest accolade - the platinum Green Mark - with this project, said Mr Kwek.
The Green Mark scheme, launched in 2005, rates buildings for their environmental impact and performance.
South Beach will cost more than $2.5 billion to build, including the land price, and will be completed in 2012.
Construction will begin next year.
IT ALL began with an inspiring speech by celebrated architect Norman Foster two years ago in Monaco.
GREEN ALL THE WAY: South Beach, designed by acclaimed architect Norman Foster, will incorporate comprehensive, cutting-edge eco-friendly features, such as an 'environmental filter' canopy that will cover the open spaces. -- PHOTO: CITY DEVELOPMENTSCity Developments (CDL) executive chairman Kwek Leng Beng was there to hear it and vowed that one day he would team up with the renowned Briton, who designed Singapore's Supreme Court.
'I was fascinated by his speech on creating eco-friendly buildings. I thought to myself that, someday, I would work with him as he has great in-depth knowledge and expertise, which complement CDL's green philosophy,' said Mr Kwek.
That dream was realised yesterday when CDL and two partners - Dubai World's Istithmar and United States-based Elad Group - signed a contract to build the landmark South Beach project.
The 3.5ha site with a gross floor area of 146,827 sq m sits on an entire block bounded by Nicoll Highway and Beach, Bras Basah and Middle roads.
Designed by Lord Foster's architectural firm, Foster & Partners, South Beach won over the authorities with a design that incorporated comprehensive, cutting-edge green features without compromising on aesthetics.
While CDL's $1.69 billion bid was not the highest, the group clinched the deal based on 'an impressive use of green technologies' and striking designs, said Minister of State for National Development Grace Fu yesterday.
South Beach will be made up of two towers, 45 and 42 storeys high, with slanting facades that will allow them to maximise ventilation and to channel air flow to ground-level spaces. A huge, wave-shaped 'environmental filter' canopy will cover the open areas that integrate the towers with the low-rise conserved buildings.
CDL, which already has several Green Mark awards under its belt, will be gunning for the highest accolade - the platinum Green Mark - with this project, said Mr Kwek.
The Green Mark scheme, launched in 2005, rates buildings for their environmental impact and performance.
South Beach will cost more than $2.5 billion to build, including the land price, and will be completed in 2012.
Construction will begin next year.
Record Price For Coffee Shop Means Higher Rents
Source : The Straits Times, Dec 5, 2007
Stallholders living with lower margins as soaring rates, competition bite
THE record price recently fetched for a Jurong East coffee shop is putting pressure on its stallholders in the form of rocketing rents.
Since new owner Koufu paid $12 million for the large property two months ago, rents at the VariNice coffee shop at Jurong East Street 132 have shot up.
They are now close to those at food courts in glitzy malls, said property experts.
Stallholders grappling with higher rents also lost a week's business when VariNice was closed for renovations following Koufu's purchase.
The 4,700 sq ft coffee shop is now clean and sparkling, but tenants say the facelift has yet to generate more business.
Some have raised food prices to cover the rent hike, but others are afraid of driving customers to the competition. There are four other coffee shops in the vicinity.
VariNice has 13 lots. Some are taken up by a single stall paying about $6,000 a month. Other lots are split between two operators, each paying about $3,000. This gives Koufu an annual rental yield of 7 per cent to 8 per cent.
The rents compare with $5,000 to $8,000 for a typical food stall in a 'good mall' such as Marina Square, said Mr Ku Swee Yong, director of marketing and business development at Savills Singapore.
Madam Ren Huai Zhen, who runs a zi char - cooked food - stall at VariNice, is now paying $6,000 a month, $1,000 more than before.
'Everything became more expensive, except the price of our food,' she told The Straits Times yesterday.
'We can survive, but our profit margins are low.'
Mr Xue Mingshou, who runs the Pin Wei Fishball Noodles stall, said he raised the prices of some dishes but had to lower them again when customers did not bite.
'Competition here is very stiff,' he said. 'If I can break even, it's very good already.' His rent has gone up by $400 to $3,200 a month.
Mr Xue shares his lot with a duck rice stall, which pays $3,000 in rent and sells about $700 worth of dishes a day.
'Your stall must sell really nice food in order to survive. There are at least 50 other stalls in the area,' said the owner, who wanted to be known only as Mr Tan. But he called the rent 'reasonable'.
Indeed, just next door to VariNice is an S-11 coffee shop, where rents are $7,000 to $8,000 a month.
Property agents say rents at prime coffee shops have escalated in recent months, and it is not uncommon for them to rival those in air-conditioned food courts.
'In the prime areas such as Geylang, Toa Payoh, Bishan and Bukit Batok, fixed rents can go up to $6,000 or $7,000 a month,' said Mr Eric Cheng of HSR property group.
Some coffee-shop chains even collect rent on a profit-
sharing basis, which means base rents could be $1,000 a month but stallholders may end up paying five figures if sales are good, he added.
On average, however, monthly coffee-shop rents range from $4,500 to $7,500. In low-end properties in the outskirts, they can go as low as $1,200, said Mr Cheng.
Clearly, there are limits to how much coffee-shop rents can be raised before stallholders are forced to pack it in. This may be why more expensive coffee shops on the market - three, in Yishun, Tampines and Bukit Batok, are said to be going for $15 million each - have yet to find takers.
So for VariNice in Jurong East to charge $6,000 in rent 'is not excessive', said Mr Ku of Savills. 'Foot traffic is very high, and it is near an interchange MRT station, a library and business parks.'
NOT STOPPING TO REST
'Competition is very stiff. There are five coffee shops nearby. I don't even dare to rest for a day because I would lose $400 in sales. At first, we thought there would be the same number of customers after the renovation. But instead, there are now fewer customers due to the higher prices of the food.' - MR XUE MINGSHOU, who runs the Pin Wei Fishball Noodles stall
FEELING THE PINCH
'Everything became more expensive, except the price of our food.' - MADAM REN HUAI ZHEN, who runs a zi char stall
'Your stall must sell really nice food in order to survive. There are at least 50 other stalls in this area.' - MR TAN, who runs a duck rice stall
Stallholders living with lower margins as soaring rates, competition bite
THE record price recently fetched for a Jurong East coffee shop is putting pressure on its stallholders in the form of rocketing rents.
Since new owner Koufu paid $12 million for the large property two months ago, rents at the VariNice coffee shop at Jurong East Street 132 have shot up.
They are now close to those at food courts in glitzy malls, said property experts.
Stallholders grappling with higher rents also lost a week's business when VariNice was closed for renovations following Koufu's purchase.
The 4,700 sq ft coffee shop is now clean and sparkling, but tenants say the facelift has yet to generate more business.
Some have raised food prices to cover the rent hike, but others are afraid of driving customers to the competition. There are four other coffee shops in the vicinity.
VariNice has 13 lots. Some are taken up by a single stall paying about $6,000 a month. Other lots are split between two operators, each paying about $3,000. This gives Koufu an annual rental yield of 7 per cent to 8 per cent.
The rents compare with $5,000 to $8,000 for a typical food stall in a 'good mall' such as Marina Square, said Mr Ku Swee Yong, director of marketing and business development at Savills Singapore.
Madam Ren Huai Zhen, who runs a zi char - cooked food - stall at VariNice, is now paying $6,000 a month, $1,000 more than before.
'Everything became more expensive, except the price of our food,' she told The Straits Times yesterday.
'We can survive, but our profit margins are low.'
Mr Xue Mingshou, who runs the Pin Wei Fishball Noodles stall, said he raised the prices of some dishes but had to lower them again when customers did not bite.
'Competition here is very stiff,' he said. 'If I can break even, it's very good already.' His rent has gone up by $400 to $3,200 a month.
Mr Xue shares his lot with a duck rice stall, which pays $3,000 in rent and sells about $700 worth of dishes a day.
'Your stall must sell really nice food in order to survive. There are at least 50 other stalls in the area,' said the owner, who wanted to be known only as Mr Tan. But he called the rent 'reasonable'.
Indeed, just next door to VariNice is an S-11 coffee shop, where rents are $7,000 to $8,000 a month.
Property agents say rents at prime coffee shops have escalated in recent months, and it is not uncommon for them to rival those in air-conditioned food courts.
'In the prime areas such as Geylang, Toa Payoh, Bishan and Bukit Batok, fixed rents can go up to $6,000 or $7,000 a month,' said Mr Eric Cheng of HSR property group.
Some coffee-shop chains even collect rent on a profit-
sharing basis, which means base rents could be $1,000 a month but stallholders may end up paying five figures if sales are good, he added.
On average, however, monthly coffee-shop rents range from $4,500 to $7,500. In low-end properties in the outskirts, they can go as low as $1,200, said Mr Cheng.
Clearly, there are limits to how much coffee-shop rents can be raised before stallholders are forced to pack it in. This may be why more expensive coffee shops on the market - three, in Yishun, Tampines and Bukit Batok, are said to be going for $15 million each - have yet to find takers.
So for VariNice in Jurong East to charge $6,000 in rent 'is not excessive', said Mr Ku of Savills. 'Foot traffic is very high, and it is near an interchange MRT station, a library and business parks.'
NOT STOPPING TO REST
'Competition is very stiff. There are five coffee shops nearby. I don't even dare to rest for a day because I would lose $400 in sales. At first, we thought there would be the same number of customers after the renovation. But instead, there are now fewer customers due to the higher prices of the food.' - MR XUE MINGSHOU, who runs the Pin Wei Fishball Noodles stall
FEELING THE PINCH
'Everything became more expensive, except the price of our food.' - MADAM REN HUAI ZHEN, who runs a zi char stall
'Your stall must sell really nice food in order to survive. There are at least 50 other stalls in this area.' - MR TAN, who runs a duck rice stall
Plum Industrial Site In Playfair Road For Sale
Source : The Business Times, 05 December 2007
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THE Urban Redevelopment Authority has released a site at Playfair Road near the future Upper Paya Lebar MRT Station, and which is on the reserve list of the Government Industrial Land Sales Programme.
The 0.86 ha site is one of four newindustrial sites for the reserve list for H2 2007.
The site, which is designated for Business 1 industrial development, has a plot ratio of 2.5 and will be sold with a 60-year lease.
Savills Singapore director of industrial business spaceDominic Peters believes that the Playfair Road site could see bids ranging from $65-$70 per square foot per plot ratio (psf ppr) because of its choice location.
'A developer is likely to build a strata-titled development for sale,' headded.
Based on the estimated land price and an average construction cost of around $120 psf, Mr Peters believes units could be sold for around $220 psf.
There are currently four sites on the reserve list, including the latest site atPlayfair Road.
The demand for industrial sites has appeared to have slowed down together with demand in the rest of the property market. 'Developers appear to be monitoring the market,' Mr Peters said.
Recent sales of industrial sitesinclude a site on the confirmed list at Sin Ming Lane which went for about $50 psf ppr or $68.9 million in October.
In August a site with a 30-year lease at Kaki Bukit Road was sold for $72 psf ppr - the highest-ever unit land price for a 30-yearleasehold industrial site.
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THE Urban Redevelopment Authority has released a site at Playfair Road near the future Upper Paya Lebar MRT Station, and which is on the reserve list of the Government Industrial Land Sales Programme.The 0.86 ha site is one of four newindustrial sites for the reserve list for H2 2007.
The site, which is designated for Business 1 industrial development, has a plot ratio of 2.5 and will be sold with a 60-year lease.
Savills Singapore director of industrial business spaceDominic Peters believes that the Playfair Road site could see bids ranging from $65-$70 per square foot per plot ratio (psf ppr) because of its choice location.
'A developer is likely to build a strata-titled development for sale,' headded.
Based on the estimated land price and an average construction cost of around $120 psf, Mr Peters believes units could be sold for around $220 psf.
There are currently four sites on the reserve list, including the latest site atPlayfair Road.
The demand for industrial sites has appeared to have slowed down together with demand in the rest of the property market. 'Developers appear to be monitoring the market,' Mr Peters said.
Recent sales of industrial sitesinclude a site on the confirmed list at Sin Ming Lane which went for about $50 psf ppr or $68.9 million in October.
In August a site with a 30-year lease at Kaki Bukit Road was sold for $72 psf ppr - the highest-ever unit land price for a 30-yearleasehold industrial site.
CapitaLand To Expand Into Offices In Vietnam
Source : The Business Times, 05 December 2007
CAPITALAND could double the number of homes it is building in Vietnam to about 6,000 units in the next three years - from about 2,800 homes now - chief executive Liew Mun Leong told reporters in Vietnam yesterday.
The Vietnam market alsopresents opportunities for CapitaLand to expand beyond its present service apartment and residential portfolio to include offices, retail and integrated leisure, entertainment and conventions projects, Mr Liew said.
For offices, CapitaLand islooking to build the equivalent of its Capital Tower and Raffles City projects in Vietnam as well - provided it can find suitable sites. And as for retail, there are opportunities to grow the business segment as there is a lack of an organised retailscene in Vietnam, Mr Liew said.
For CapitaLand's fledgling integrated leisure, entertainment and conventions business segment, the developer is now prospecting for sites in Vietnam. When the opportunity arises, CapitaLand will also look intosetting up private real estate funds for its businesses in Vietnam.
'Overall, as a long-term player, CapitaLand sees tremendous growth potential in Vietnam as it is one of the fastest growing economies in Asia,' the company said.
ChannelNews Asia, reporting from Vietnam, said that CapitaLand is exploring the idea of creating a US$300 million development fund which could invest in a range of Vietnamese properties. It also reported Mr Liew as saying that the US sub-prime woes may nothave a huge impact on the Singapore property market.
CAPITALAND could double the number of homes it is building in Vietnam to about 6,000 units in the next three years - from about 2,800 homes now - chief executive Liew Mun Leong told reporters in Vietnam yesterday.The Vietnam market alsopresents opportunities for CapitaLand to expand beyond its present service apartment and residential portfolio to include offices, retail and integrated leisure, entertainment and conventions projects, Mr Liew said.
For offices, CapitaLand islooking to build the equivalent of its Capital Tower and Raffles City projects in Vietnam as well - provided it can find suitable sites. And as for retail, there are opportunities to grow the business segment as there is a lack of an organised retailscene in Vietnam, Mr Liew said.
For CapitaLand's fledgling integrated leisure, entertainment and conventions business segment, the developer is now prospecting for sites in Vietnam. When the opportunity arises, CapitaLand will also look intosetting up private real estate funds for its businesses in Vietnam.
'Overall, as a long-term player, CapitaLand sees tremendous growth potential in Vietnam as it is one of the fastest growing economies in Asia,' the company said.
ChannelNews Asia, reporting from Vietnam, said that CapitaLand is exploring the idea of creating a US$300 million development fund which could invest in a range of Vietnamese properties. It also reported Mr Liew as saying that the US sub-prime woes may nothave a huge impact on the Singapore property market.
Global Equity - Correction? What Correction?
Source : The Business Times, December 5, 2007
GLOBAL equity markets have been volatile in the past few months. Losses on sub-prime mortgages have morphed into a more general credit crunch problem arising from the loss of confidence within the global financial system.
Due to the lack of transparency, banks find it difficult to determine what sub-prime exposure banking counterparties have, although this has become more apparent recently as more billion dollar mea culpas emerge. Indeed, each announcement brings the problem closer to a close as the ultimate loss is a fairly deterministic amount (US$200-300 billion).
Moreover, a bailout by the US government is highly probable as 2008 is an election year and no politician is interested in throwing four million Americans out of their homes. Unlike the Asian Financial Crisis, where borrowers had to find US dollars to repay, the US has full control over its monetary printing presses. What is interesting is the cause of all this - an oversupplied real estate market which responded to excessive demand stoked by easy credit and lax lending standards. Indeed, this appears very much like what we had in Singapore in 1996.
Before we discuss the Singapore residential property market, let's examine the US situation.
Is there a US bottom? Too much supply relative to demand and inventories bloat and prices fall. For prices to bottom, inventories must stabilise. Will US home inventories stabilise soon, then?
Core demand is a function of demographics and jobs (one needs to service the mortgage). The US has a growing population. As for jobs, the weak US dollar has boosted exports. It has also reduced imports, thus allowing local US companies to regain market share and create even more jobs. The chart on new home sales show that the support level stands at around 800,000 annualised units for single-family homes, which is about the rate of new household formation. Interestingly, new home sales for single-family homes are running around 750,000 annualised units.
On the supply side, housing starts are falling as developers cut back rapidly. At the margin, this supply is needed to meet the needs of new households and replacement housing. From the accompanying chart support stands at around 1.1 million units. Currently, starts have fallen to around this level on an annualised basis, of which 880,000 are single-family homes. Thus, inventories appear to be stabilising - which has been the case in the past few months.
Indeed, when asked in Congress as to when he expected housing to bottom, Fed chairman Ben Bernanke was quite forthright - 2Q2008. His reason: US demographics and falling housing starts. Indeed, if his prediction is correct, the stock market which forecasts events 6 to 12 months ahead, would be putting a bottom on US home builders soon (currently trading at 0.65 times book value!). This could only be good for all equity markets.
Is Singapore peaking?
There has been a hiatus in the residential property market in the past few months, but is this the peak or the pause that refreshes? For the market to go down, supply must overwhelm demand. Let's look at demand first. Demand is expected to be very firm. Singapore will have a growing population and labour force (mainly foreign-sourced); and strong job creation growth over the next five years. Strong investment flows (especially exciting are those in alternative energy) amounting to at least 3 to 5 per cent of GDP annually over the next three to five years are your kicker. This would translate to at least 5 to 7 per cent real GDP growth over next five years.
This would not only ensure full employment but real increases in wages as well as additional foreign labour imports. Indeed, the need is now to restrain further stimulus because of economic overheating. Maybe we should send 50 per cent of the Economic Development Board on sabbatical. The bottom line is that the demand for housing and better housing would be sustained at current high levels.
On the supply side, the URA data shows that the vacancy rate appears to be steadying at a low level of 5 per cent in 3Q2007 (against 10 per cent three years ago). The vacancy rate measures the availability of existing private residences and it cannot go to zero because some homes will always be vacant at any one time. Five per cent tells us that the current supply is not plentiful and that's why rents continue to rise. But what about the future supply? Will there be a glut in two to three years?
'Inventory', which I define as 'unsold homes which are completed or under construction', continues to fall from 9,284 units to 8,443 units in 3Q2007, according to the URA. The rest of the 29,570 'uncompleted' units is potential (uncertain) supply - they have planning approval but construction has not started. Indeed, as construction has not started, they would not count as 'inventory'. This is because developers, whose cash flows are fairly strong, will defer projects (even with leasehold land) when demand becomes uncertain.
We have seen them doing this in the past and current media reports indicate that this is indeed occurring. Should only two-thirds of the 29,570 come on stream in the next three years and if current demand levels prevail, there will be no glut. For those waiting for a significant price correction in the next three years, I fear the wait would be futile.
The author is CEO of financial adviser New Independent. He welcomes feedback at josephchong@ni.com.sg. This article is for information only. Readers should seek independent advice before making any investment decisions.
GLOBAL equity markets have been volatile in the past few months. Losses on sub-prime mortgages have morphed into a more general credit crunch problem arising from the loss of confidence within the global financial system.
Due to the lack of transparency, banks find it difficult to determine what sub-prime exposure banking counterparties have, although this has become more apparent recently as more billion dollar mea culpas emerge. Indeed, each announcement brings the problem closer to a close as the ultimate loss is a fairly deterministic amount (US$200-300 billion).Moreover, a bailout by the US government is highly probable as 2008 is an election year and no politician is interested in throwing four million Americans out of their homes. Unlike the Asian Financial Crisis, where borrowers had to find US dollars to repay, the US has full control over its monetary printing presses. What is interesting is the cause of all this - an oversupplied real estate market which responded to excessive demand stoked by easy credit and lax lending standards. Indeed, this appears very much like what we had in Singapore in 1996.
Before we discuss the Singapore residential property market, let's examine the US situation.
Is there a US bottom? Too much supply relative to demand and inventories bloat and prices fall. For prices to bottom, inventories must stabilise. Will US home inventories stabilise soon, then?
Core demand is a function of demographics and jobs (one needs to service the mortgage). The US has a growing population. As for jobs, the weak US dollar has boosted exports. It has also reduced imports, thus allowing local US companies to regain market share and create even more jobs. The chart on new home sales show that the support level stands at around 800,000 annualised units for single-family homes, which is about the rate of new household formation. Interestingly, new home sales for single-family homes are running around 750,000 annualised units.
On the supply side, housing starts are falling as developers cut back rapidly. At the margin, this supply is needed to meet the needs of new households and replacement housing. From the accompanying chart support stands at around 1.1 million units. Currently, starts have fallen to around this level on an annualised basis, of which 880,000 are single-family homes. Thus, inventories appear to be stabilising - which has been the case in the past few months.
Indeed, when asked in Congress as to when he expected housing to bottom, Fed chairman Ben Bernanke was quite forthright - 2Q2008. His reason: US demographics and falling housing starts. Indeed, if his prediction is correct, the stock market which forecasts events 6 to 12 months ahead, would be putting a bottom on US home builders soon (currently trading at 0.65 times book value!). This could only be good for all equity markets.
Is Singapore peaking?
There has been a hiatus in the residential property market in the past few months, but is this the peak or the pause that refreshes? For the market to go down, supply must overwhelm demand. Let's look at demand first. Demand is expected to be very firm. Singapore will have a growing population and labour force (mainly foreign-sourced); and strong job creation growth over the next five years. Strong investment flows (especially exciting are those in alternative energy) amounting to at least 3 to 5 per cent of GDP annually over the next three to five years are your kicker. This would translate to at least 5 to 7 per cent real GDP growth over next five years.
This would not only ensure full employment but real increases in wages as well as additional foreign labour imports. Indeed, the need is now to restrain further stimulus because of economic overheating. Maybe we should send 50 per cent of the Economic Development Board on sabbatical. The bottom line is that the demand for housing and better housing would be sustained at current high levels.
On the supply side, the URA data shows that the vacancy rate appears to be steadying at a low level of 5 per cent in 3Q2007 (against 10 per cent three years ago). The vacancy rate measures the availability of existing private residences and it cannot go to zero because some homes will always be vacant at any one time. Five per cent tells us that the current supply is not plentiful and that's why rents continue to rise. But what about the future supply? Will there be a glut in two to three years?
'Inventory', which I define as 'unsold homes which are completed or under construction', continues to fall from 9,284 units to 8,443 units in 3Q2007, according to the URA. The rest of the 29,570 'uncompleted' units is potential (uncertain) supply - they have planning approval but construction has not started. Indeed, as construction has not started, they would not count as 'inventory'. This is because developers, whose cash flows are fairly strong, will defer projects (even with leasehold land) when demand becomes uncertain.
We have seen them doing this in the past and current media reports indicate that this is indeed occurring. Should only two-thirds of the 29,570 come on stream in the next three years and if current demand levels prevail, there will be no glut. For those waiting for a significant price correction in the next three years, I fear the wait would be futile.
The author is CEO of financial adviser New Independent. He welcomes feedback at josephchong@ni.com.sg. This article is for information only. Readers should seek independent advice before making any investment decisions.
Govt Sees Potential In Rochor Area Remake
Source : The Business Times, December 5, 2007
Plans not firm but it intends the area to complement Marina Bay development
The government intends to remake the Ophir Road/Rochor Road corridor into a commercial centre that will complement the Marina Bay area, Minister of State for National Development Grace Fu said yesterday.
'This area could be developed as a mixed-use corridor featuring offices, hotels and other supporting uses, connecting the established commercial node at Marina Centre to the Bugis area,' Ms Fu said. 'The corridor will inject vibrancy and activities into this part of the city.'
Ms Fu was speaking at the signing of the building agreement for a 3.5-hectare mixed-use site along Beach Road.
The Urban Redevelopment Authority (URA) awarded the site to Singapore-listed City Developments and its foreign partners Istithmar (part of the Dubai World Group) and Elad Group in September for some $1.69 billion.
'The government intends to build on the momentum by developing the land parcels along Beach Road and at the Ophir Road/Rochor Road corridor,' Ms Fu said.
The URA will release more details of the plans for the Beach Road/Ophir Road corridor early next year, Ms Fu said, but she did not provide a timeline for the development of the area.
The authorities could partner both local and foreign developers to draw up development plans, she said.
In fact, there is increasing foreign interest in real estate investment in Singapore, Ms Fu said.
Foreign real estate investment in Singapore has come to about $8.8 billion for the year-to-date, Ms Fu said. The amount is an increase of 66 per cent over the 2006 total of $5.3 billion.
The amount also represents a huge jump over the amount of foreign real estate investments seen in 2005 and 2004. For 2005, foreign investment came to $4.1 billion and in 2004, the figure was only $800 million.
'This dramatic increase reflects the optimistic economic outlook and development potential in Singapore,' Ms Fu said.
The Beach Road project marks the first participation of Istithmar and Elad, two major international investors, in a government land tender in Singapore.
Dubai World - which is the investment holding firm of the Dubai government - and Elad Group each have a one-third stake in the Beach Road project.
Together with CityDev, the consortium will invest some $2.5 billion in all to build the project, CityDev said yesterday. The amount includes the land cost of $1.69 billion.
Dubai World is merging its two subsidiaries Nakheel and Istithmar Real Estate into a single unit as it looks to increase its property portfolio in Asia, Yu Lai Boon, the group's chief investment officer, said. He added that the group hopes to invest some US$50 billion in Asia over the next 10 to 15 years.
Dubai World is set to raise $300 million with its first listed property trust by June next year.
The real estate investment trust, which will be based on Dubai World's residential properties in the United Arab Emirates, will be listed in Dubai and have a secondary listing in either London or Singapore.
Plans not firm but it intends the area to complement Marina Bay development
The government intends to remake the Ophir Road/Rochor Road corridor into a commercial centre that will complement the Marina Bay area, Minister of State for National Development Grace Fu said yesterday.
'This area could be developed as a mixed-use corridor featuring offices, hotels and other supporting uses, connecting the established commercial node at Marina Centre to the Bugis area,' Ms Fu said. 'The corridor will inject vibrancy and activities into this part of the city.'
Ms Fu was speaking at the signing of the building agreement for a 3.5-hectare mixed-use site along Beach Road.
The Urban Redevelopment Authority (URA) awarded the site to Singapore-listed City Developments and its foreign partners Istithmar (part of the Dubai World Group) and Elad Group in September for some $1.69 billion.
'The government intends to build on the momentum by developing the land parcels along Beach Road and at the Ophir Road/Rochor Road corridor,' Ms Fu said.
The URA will release more details of the plans for the Beach Road/Ophir Road corridor early next year, Ms Fu said, but she did not provide a timeline for the development of the area.
The authorities could partner both local and foreign developers to draw up development plans, she said.
In fact, there is increasing foreign interest in real estate investment in Singapore, Ms Fu said.
Foreign real estate investment in Singapore has come to about $8.8 billion for the year-to-date, Ms Fu said. The amount is an increase of 66 per cent over the 2006 total of $5.3 billion.
The amount also represents a huge jump over the amount of foreign real estate investments seen in 2005 and 2004. For 2005, foreign investment came to $4.1 billion and in 2004, the figure was only $800 million.
'This dramatic increase reflects the optimistic economic outlook and development potential in Singapore,' Ms Fu said.
The Beach Road project marks the first participation of Istithmar and Elad, two major international investors, in a government land tender in Singapore.
Dubai World - which is the investment holding firm of the Dubai government - and Elad Group each have a one-third stake in the Beach Road project.
Together with CityDev, the consortium will invest some $2.5 billion in all to build the project, CityDev said yesterday. The amount includes the land cost of $1.69 billion.
Dubai World is merging its two subsidiaries Nakheel and Istithmar Real Estate into a single unit as it looks to increase its property portfolio in Asia, Yu Lai Boon, the group's chief investment officer, said. He added that the group hopes to invest some US$50 billion in Asia over the next 10 to 15 years.
Dubai World is set to raise $300 million with its first listed property trust by June next year.
The real estate investment trust, which will be based on Dubai World's residential properties in the United Arab Emirates, will be listed in Dubai and have a secondary listing in either London or Singapore.
Micro-Managing The Property Market Is Hard To Do: Redas Chief
Source : The Business Times, December 5, 2007
Developers rely on sustainable market for roll-outs, he says
Property developers here are in it for the long term and want the government to know that they are not taking the current buoyant market for granted.
Mr Cheong: The property sector has taken almost 10 years to turn around and Redas is not about to take the current buoyant market conditions for granted
Speaking at the Real Estate Developers' Association of Singapore (Redas) 48th anniversary dinner last night, Redas president Simon Cheong said: 'As developers, we rely on a continuous and sustainable market to support a roll-out programme for real estate development.'
Mr Cheong was speaking to an audience of industry players and also present was guest-of-honour for the occasion, Minister for Trade & Industry Lim Hng Kiang.
Mr Cheong was likely to have been making a succinct reference to recent reports that developers were holding back on new property launches, being wary after the US sub-prime mortgage crisis and credit crunch.
His comments come at a time this year when developers have acquired 83 sites for potential redevelopment from collective sales.
However, rapidly escalating property prices have led government representatives to say on various occasions that they are prepared to release more government land sales sites if supply is short and prices rise too high. Most recently, the Housing and Development Board said that it could release seven sites for development through its Executive Condominium and Design, Build and Sell Scheme in the first half of 2008, with a potential supply of 3,200 units.
Mr Cheong said: 'It has taken almost 10 years for the property market to turn around, and Redas is not taking the market for granted.'
But he added: 'Redas is of the view that it is difficult to micro-manage, especially in a global context where the flow of funds into Singapore property is driven by a bigger picture than just short-term opportunistic buy-ins; it is more a positive systemic assessment of Singapore and the region by the international community.'
In his speech, MTI minister Mr Lim raised what he believes to be the concerns of the business community as a whole. He said: 'Feedback from the business community reflects concerns of rising business costs and increasing rents for residential and commercial space.'
To this end, Mr Cheong said that Redas was in support of the Urban Redevelopment Authority's move to collate and release market information more regularly.
'Redas believes the solution to moderating future real estate prices is transparency and timely release of demand and supply information,' added Mr Cheong.
Redas also announced that it had created a Foreign Investment Committee chaired by Robert Garmen of Hongkong Land to look at foreign demand here.
Developers rely on sustainable market for roll-outs, he says
Property developers here are in it for the long term and want the government to know that they are not taking the current buoyant market for granted.
Mr Cheong: The property sector has taken almost 10 years to turn around and Redas is not about to take the current buoyant market conditions for grantedSpeaking at the Real Estate Developers' Association of Singapore (Redas) 48th anniversary dinner last night, Redas president Simon Cheong said: 'As developers, we rely on a continuous and sustainable market to support a roll-out programme for real estate development.'
Mr Cheong was speaking to an audience of industry players and also present was guest-of-honour for the occasion, Minister for Trade & Industry Lim Hng Kiang.
Mr Cheong was likely to have been making a succinct reference to recent reports that developers were holding back on new property launches, being wary after the US sub-prime mortgage crisis and credit crunch.
His comments come at a time this year when developers have acquired 83 sites for potential redevelopment from collective sales.
However, rapidly escalating property prices have led government representatives to say on various occasions that they are prepared to release more government land sales sites if supply is short and prices rise too high. Most recently, the Housing and Development Board said that it could release seven sites for development through its Executive Condominium and Design, Build and Sell Scheme in the first half of 2008, with a potential supply of 3,200 units.
Mr Cheong said: 'It has taken almost 10 years for the property market to turn around, and Redas is not taking the market for granted.'
But he added: 'Redas is of the view that it is difficult to micro-manage, especially in a global context where the flow of funds into Singapore property is driven by a bigger picture than just short-term opportunistic buy-ins; it is more a positive systemic assessment of Singapore and the region by the international community.'
In his speech, MTI minister Mr Lim raised what he believes to be the concerns of the business community as a whole. He said: 'Feedback from the business community reflects concerns of rising business costs and increasing rents for residential and commercial space.'
To this end, Mr Cheong said that Redas was in support of the Urban Redevelopment Authority's move to collate and release market information more regularly.
'Redas believes the solution to moderating future real estate prices is transparency and timely release of demand and supply information,' added Mr Cheong.
Redas also announced that it had created a Foreign Investment Committee chaired by Robert Garmen of Hongkong Land to look at foreign demand here.
2008 Seen As Year Of Mass Market Homes
Source : The Business Times, December 5, 2007
Developers, consultants predict 10-20% hikes for this segment in 2008, high-end gains seen tapering to 0-10%
As the year draws to a close, developers and property consultants are cautiously optimistic about prospects for the Singapore property market next year despite the US sub-prime mortgage crisis and rising oil prices.
Full-house: Minister for Trade & Industry Lim Hng Kiang speaking at Redas' 48th anniversary dinner last night, where he was the guest-of-honour.
For the residential sector, they expect the action to be concentrated in the mass market next year, after the stellar increases in high-end home prices this year.
They also generally expect the authorities to adopt a more measured approach to the Government Land Sales programme in the first half of next year, given the relatively thin bidding seen for most state sites recently.
CB Richard Ellis chairman (Asia) Willy Shee predicts high-end home prices will likely remain more or less at current levels next year - after a nearly 50 per cent price gain this year - on the back of new supply coming into the market. Prices of mass-market private homes are likely to appreciate 10 to 15 per cent in 2008, after rising about 25 per cent this year, he added. 'I think building costs have already gone up over 30 per cent so far this year,' he says.
Similarly, Ho Bee Investment executive director Ong Chong Hua says: 'We cannot see the same magnitude of price growth in 2008 that we've seen in the past two years. It's not sustainable. We'll see more steady growth next year.'
Overseas Union Enterprise chief executive officer Thio Gim Hock says: 'High-end prices will at least maintain or go up by 5 to 10 per cent, while the mass market will rise between 10 and 20 per cent in 2008.
'By next year, sub-prime will be behind us and confidence will recover again.'
Mr Ong predicts a 10 per cent price gain for both upmarket and mass-market homes next year. 'The increase in mass market home prices will be very measured until the sub-prime cloud clears,' he says.
Knight Frank managing director Tan Tiong Cheng expects the fate of the high-end market to be determined by foreign investors (and their reading of the global economic outlook) as well as the extent to which those who've sold their prime district homes through en bloc sales buy replacement homes in the high-end of the market.
Hong Leong Group executive chairman Kwek Leng Beng says: 'Even in a period of consolidation, the market will come back. The fundamentals of real estate in Singapore are still very good. There's still upside for mid-range home prices, which are still below their peaks.'
Knight Frank's Mr Tan said: 'Fundamentally, Singapore is in a very sound position, property-wise. But what will determine the state of the market will be external events, especially sub-prime, oil prices and the US economy. If the external forces turn out to be quite benign, the Singapore property market recovery will continue. But if the external forces turn out to be malignant, then all bets are off.'
Mr Kwek stresses that because developers have enjoyed good profit margins over the past three to four years, they are now in a strong financial position and can afford to take longer to sell their projects.
After the current lull, Knight Frank's Mr Tan expects developers to resume launches next year when the market's direction becomes clearer. 'They're likely to start launching closer to Budget time, when the Government gives its official reading of the Singapore economy,' he says.
Chesterton International's head of research and consultancy, Colin Tan, reckons that high-end residential property will weather any market downturn better than the mass market, as luxury homes typically offer a more resilient long-term investment proposition because of their superior location. 'Someone who buys a high-end home can always rent it out, even if he has to accept a lower rent,' he says.
Market expectations have been running so high that the authorities will step up the Government Land Sales Programme to stem rising property prices and rents. However, some property players suggest the uncertainty may make the authorities think again. 'Supply will continue to be released mostly through the reserve list, but some new housing sites in the city may be introduced in the confirmed list, as developing the Marina Bay area and rejuvenating the existing CBD seem to be a priority,' Knight Frank's Mr Tan suggests.
At Ho Bee, Mr Ong says that recent bidding at state tenders shows 'developers are re-calculating the risk premium because of uncertainty created by sub-prime'.
'(The) government will be careful about the confirmed list,' he says.
Developers, consultants predict 10-20% hikes for this segment in 2008, high-end gains seen tapering to 0-10%
As the year draws to a close, developers and property consultants are cautiously optimistic about prospects for the Singapore property market next year despite the US sub-prime mortgage crisis and rising oil prices.
Full-house: Minister for Trade & Industry Lim Hng Kiang speaking at Redas' 48th anniversary dinner last night, where he was the guest-of-honour.For the residential sector, they expect the action to be concentrated in the mass market next year, after the stellar increases in high-end home prices this year.
They also generally expect the authorities to adopt a more measured approach to the Government Land Sales programme in the first half of next year, given the relatively thin bidding seen for most state sites recently.
CB Richard Ellis chairman (Asia) Willy Shee predicts high-end home prices will likely remain more or less at current levels next year - after a nearly 50 per cent price gain this year - on the back of new supply coming into the market. Prices of mass-market private homes are likely to appreciate 10 to 15 per cent in 2008, after rising about 25 per cent this year, he added. 'I think building costs have already gone up over 30 per cent so far this year,' he says.
Similarly, Ho Bee Investment executive director Ong Chong Hua says: 'We cannot see the same magnitude of price growth in 2008 that we've seen in the past two years. It's not sustainable. We'll see more steady growth next year.'
Overseas Union Enterprise chief executive officer Thio Gim Hock says: 'High-end prices will at least maintain or go up by 5 to 10 per cent, while the mass market will rise between 10 and 20 per cent in 2008.
'By next year, sub-prime will be behind us and confidence will recover again.'
Mr Ong predicts a 10 per cent price gain for both upmarket and mass-market homes next year. 'The increase in mass market home prices will be very measured until the sub-prime cloud clears,' he says.
Knight Frank managing director Tan Tiong Cheng expects the fate of the high-end market to be determined by foreign investors (and their reading of the global economic outlook) as well as the extent to which those who've sold their prime district homes through en bloc sales buy replacement homes in the high-end of the market.
Hong Leong Group executive chairman Kwek Leng Beng says: 'Even in a period of consolidation, the market will come back. The fundamentals of real estate in Singapore are still very good. There's still upside for mid-range home prices, which are still below their peaks.'
Knight Frank's Mr Tan said: 'Fundamentally, Singapore is in a very sound position, property-wise. But what will determine the state of the market will be external events, especially sub-prime, oil prices and the US economy. If the external forces turn out to be quite benign, the Singapore property market recovery will continue. But if the external forces turn out to be malignant, then all bets are off.'
Mr Kwek stresses that because developers have enjoyed good profit margins over the past three to four years, they are now in a strong financial position and can afford to take longer to sell their projects.
After the current lull, Knight Frank's Mr Tan expects developers to resume launches next year when the market's direction becomes clearer. 'They're likely to start launching closer to Budget time, when the Government gives its official reading of the Singapore economy,' he says.
Chesterton International's head of research and consultancy, Colin Tan, reckons that high-end residential property will weather any market downturn better than the mass market, as luxury homes typically offer a more resilient long-term investment proposition because of their superior location. 'Someone who buys a high-end home can always rent it out, even if he has to accept a lower rent,' he says.
Market expectations have been running so high that the authorities will step up the Government Land Sales Programme to stem rising property prices and rents. However, some property players suggest the uncertainty may make the authorities think again. 'Supply will continue to be released mostly through the reserve list, but some new housing sites in the city may be introduced in the confirmed list, as developing the Marina Bay area and rejuvenating the existing CBD seem to be a priority,' Knight Frank's Mr Tan suggests.
At Ho Bee, Mr Ong says that recent bidding at state tenders shows 'developers are re-calculating the risk premium because of uncertainty created by sub-prime'.
'(The) government will be careful about the confirmed list,' he says.
South Beach Project To Cost $2.5b: CityDev
Source : The Business Times, December 5, 2007
City Developments' upcoming mixed-use project along Beach Road will cost some $2.5 billion in all - including the land cost of some $1.69 billion - the company's chairman Kwek Leng Beng said yesterday.
Futuristic: South Beach is envisaged to become 'revolutionary New Eco-Quarter in Singapore' when completed by 2012
Mr Kwek was speaking to reporters after signing the building agreement for the site.
CityDev, together with its partners Istithmar (part of the Dubai World Group) and US-based Elad Group, secured the 3.5-hectare site in a government land tender in September. The three partners hold a one-third stake each in the project.
The development, which will be called South Beach, is set to become a 'revolutionary New Eco-Quarter in Singapore' when it is completed by 2012, CityDev said. Construction will start next year.
South Beach will have premium office space, luxury hotels, residential apartments and retail space with a total gross floor area (GFA) of some 1.6 million square feet, CityDev said.
The partners are required to set aside at least 40 per cent of the total GFA for office use, and another minimum 30 per cent of the total GFA for hotel use.
In line with this, the consortium is planning two luxury hotels. One of the hotels will be a high-end boutique hotel with about 250 rooms, while the other will be a five-star hotel with about 450 rooms, CityDev said. The partners intend to bring in upmarket hotel brands for both hotels.
The partners are also looking to bring in branded residences for the luxury apartments they will be building on the site - such as The Plaza in New York, which is owned by Elad.
Looking ahead, Mr Kwek said he believed that the property market in Singapore is in a period of 'consolidation' brought on by the sub-prime mortgage crisis in the US. 'In 2008, a lot will depend on how much the sub-prime recovers and whether the US will go into a deep recession,' he said. '2008 will have a little storm here and there, but Asia Pacific will grow.'
For Singapore, Mr Kwek said that there is still a potential upside for mid-range home prices, which are still below their historical peaks.
City Developments' upcoming mixed-use project along Beach Road will cost some $2.5 billion in all - including the land cost of some $1.69 billion - the company's chairman Kwek Leng Beng said yesterday.
Futuristic: South Beach is envisaged to become 'revolutionary New Eco-Quarter in Singapore' when completed by 2012Mr Kwek was speaking to reporters after signing the building agreement for the site.
CityDev, together with its partners Istithmar (part of the Dubai World Group) and US-based Elad Group, secured the 3.5-hectare site in a government land tender in September. The three partners hold a one-third stake each in the project.
The development, which will be called South Beach, is set to become a 'revolutionary New Eco-Quarter in Singapore' when it is completed by 2012, CityDev said. Construction will start next year.
South Beach will have premium office space, luxury hotels, residential apartments and retail space with a total gross floor area (GFA) of some 1.6 million square feet, CityDev said.
The partners are required to set aside at least 40 per cent of the total GFA for office use, and another minimum 30 per cent of the total GFA for hotel use.
In line with this, the consortium is planning two luxury hotels. One of the hotels will be a high-end boutique hotel with about 250 rooms, while the other will be a five-star hotel with about 450 rooms, CityDev said. The partners intend to bring in upmarket hotel brands for both hotels.
The partners are also looking to bring in branded residences for the luxury apartments they will be building on the site - such as The Plaza in New York, which is owned by Elad.
Looking ahead, Mr Kwek said he believed that the property market in Singapore is in a period of 'consolidation' brought on by the sub-prime mortgage crisis in the US. 'In 2008, a lot will depend on how much the sub-prime recovers and whether the US will go into a deep recession,' he said. '2008 will have a little storm here and there, but Asia Pacific will grow.'
For Singapore, Mr Kwek said that there is still a potential upside for mid-range home prices, which are still below their historical peaks.
South Beach Area To Be Developed, Ready By 2012
Source : The Straits Times, Dec 4, 2007
TWO major international investors have, for the first time, tied up with a Singapore company to develop a Government land sale site here.
The design of the upcoming South Beach architecture featured distinctive tower forms with sun-shading louvres, glass facade treatments and extensive sky gardens. -- PHOTO: CITY DEVELOPMENTS
City Developments Limited, along with Istithmar and Elad Group, signed a building agreement on Tuesday to build up the South Beach area in Beach Road.
The site is one of the most prestigious sites that have been offered for sale in recent years. The winning consortium submitted a bid of $1.69 billion.
South Beach occupies a prime and highly strategic location in downtown Singapore, surrounded by two distinctive districts - Marina Centre and the Civic district.
The Marina Centre is Singapore's key convention and hotel hub while the Civic district is home to many of the island's historic buildings and places.
Speaking at the signing ceremony, Minister of State for National Development, Grace Fu said this landmark development of South Beach will be a first glimpse into the exciting plans ahead for the Ophir Road/Rochor Road corridor.
She said the area will be remade and developed as a mixed-use corridor featuring offices, hotels and other supporting uses.
It will also connect the established commercial node at Marina Centre to the Bugis area, injecting vibrancy and activities into the city area.
Giving a sneak peek into the upcoming South Beach architecture, Ms Fu said the design featured distinctive tower forms with sun-shading louvres, glass facade treatments and extensive sky gardens.
A key feature is the large 'environmental filter' canopy that covers the open spaces and ties together the new and conservation buildings within the site.
The concept proposal also provides an attractive first storey layout which is open and welcoming.
It contains a series of internal streets - inspired by the street network at the nearby Seah Street and Purvis Street area - sunken courtyards and tiered gardens lined with shops and cafes.
Ms Fu added that the Government also intends to build up the land parcels along Beach Road and at the Ophir Road/Rochor Road corridor - offering opportunities for the development of office buildings with large floor plate.
More details on this will be released early next year.
The 3.5-hectare South Beach area is an entire streetblock bounded by Beach Road, Bras Basah Road, Nicoll Highway and Middle Road.
It includes four conservation buildings along Beach Road - the former NCO Club building and several blocks of the former Beach Road Camp - which are to be restored for adaptive re-use.
Video Link - http://tinyurl.com/22yhuy
Behold the next property hotspot - South Beach, S'pore
The Beach Road/Bugis area is set for another facelift with the development of a new commercial node featuring offices, hotels, retail and food and beverage outlets.
Called the Ophir Road/Rochor Road Corridor, the idea is to connect the area with Marina Centre and the Sands Integrated Resort.
Minister of State for National Development Grace Fu announced the initiative today at a signing ceremony for the upcoming South Beach Project, which will transform the Beach Road area into a zone of premium residential and commercial space.
TWO major international investors have, for the first time, tied up with a Singapore company to develop a Government land sale site here.
The design of the upcoming South Beach architecture featured distinctive tower forms with sun-shading louvres, glass facade treatments and extensive sky gardens. -- PHOTO: CITY DEVELOPMENTSCity Developments Limited, along with Istithmar and Elad Group, signed a building agreement on Tuesday to build up the South Beach area in Beach Road.
The site is one of the most prestigious sites that have been offered for sale in recent years. The winning consortium submitted a bid of $1.69 billion.
South Beach occupies a prime and highly strategic location in downtown Singapore, surrounded by two distinctive districts - Marina Centre and the Civic district.
The Marina Centre is Singapore's key convention and hotel hub while the Civic district is home to many of the island's historic buildings and places.
Speaking at the signing ceremony, Minister of State for National Development, Grace Fu said this landmark development of South Beach will be a first glimpse into the exciting plans ahead for the Ophir Road/Rochor Road corridor.
She said the area will be remade and developed as a mixed-use corridor featuring offices, hotels and other supporting uses.
It will also connect the established commercial node at Marina Centre to the Bugis area, injecting vibrancy and activities into the city area.
Giving a sneak peek into the upcoming South Beach architecture, Ms Fu said the design featured distinctive tower forms with sun-shading louvres, glass facade treatments and extensive sky gardens.
A key feature is the large 'environmental filter' canopy that covers the open spaces and ties together the new and conservation buildings within the site.
The concept proposal also provides an attractive first storey layout which is open and welcoming.
It contains a series of internal streets - inspired by the street network at the nearby Seah Street and Purvis Street area - sunken courtyards and tiered gardens lined with shops and cafes.
Ms Fu added that the Government also intends to build up the land parcels along Beach Road and at the Ophir Road/Rochor Road corridor - offering opportunities for the development of office buildings with large floor plate.
More details on this will be released early next year.
The 3.5-hectare South Beach area is an entire streetblock bounded by Beach Road, Bras Basah Road, Nicoll Highway and Middle Road.
It includes four conservation buildings along Beach Road - the former NCO Club building and several blocks of the former Beach Road Camp - which are to be restored for adaptive re-use.
Video Link - http://tinyurl.com/22yhuyBehold the next property hotspot - South Beach, S'pore
The Beach Road/Bugis area is set for another facelift with the development of a new commercial node featuring offices, hotels, retail and food and beverage outlets.
Called the Ophir Road/Rochor Road Corridor, the idea is to connect the area with Marina Centre and the Sands Integrated Resort.
Minister of State for National Development Grace Fu announced the initiative today at a signing ceremony for the upcoming South Beach Project, which will transform the Beach Road area into a zone of premium residential and commercial space.
Fewer Homes Worth Less Than Remaining Loans As Prices Rise
Source : The Straits Times, Dec 4, 2007
Owners no longer in negative equity may be tempted to sell and cash in
THE number of home owners in negative equity - where the property is worth less than the loan taken to buy it - has been slashed due to soaring real estate prices.
Four years ago, about 13.7 per cent of owners with home loans were in negative equity but that has now fallen to just 2.5 per cent, said the Monetary Authority of Singapore (MAS).
The proportion a year earlier was 5.1 per cent.
In terms of the total value of outstanding home loans, only 2.4 per cent were in negative equity in September - down from 4.7 per cent a year ago and 14.1 per cent in 2003.
Property experts tip that the significant shift into 'positive equity' will tempt some owners, particularly investors, to sell and cash in.
Owner-occupiers may refinance - taking out a new mortgage at a lower rate - while others will wait for prices to rise even more before selling.
The MAS figures, contained in its latest Financial Stability Review, came from a survey of six banks, which account for almost the entire home loan market.
OCBC Bank's head of consumer secured lending, Mr Gregory Chan, said: 'In line with the healthy economic growth, we observe that home loans taken on properties bought in the mid-1990s have been steadily recovering from their negative equity positions since 2004.
'We have also noted an increased trend of consumers selling their properties for a profit.'
The number of requests for loan refinancing has also gone up in the past three months.A local bank executive believes positive equity is one of the reasons for this.
Home owners who wanted to sell their properties while in negative equity would have had to pay the bank the difference between the outstanding mortgage and the sale price. But those who held on may now be willing to sell, said property consultants.
'Singaporeans are quite averse to selling things - especially big-ticket items - at a loss,' said Mr Nicholas Mak of property consultancy Knight Frank.
Mr Eric Cheng, executive director of property agency HSR, recalled one owner who bought a Mandarin Gardens unit for $950,000 in 1996, only to see its value drop to about $600,000 around 2001.
After holding out for more than a decade, he finally managed to sell his unit for $1.08 million earlier this year.
For such sellers who have had the distressing experience of being in negative equity, cashing out with a profit at the earliest chance is a must. 'They don't want to experience another slump, which may last for another eight to 10 years,' said Mr Cheng.
Owners might also be tempted to get out while the going is good, given recent government steps to cool the market, said a banker. Stricter collective sale rules, hikes in development fees and the axing of deferred payments would moderate price rises.
But there will be others who will hang on, waiting for home prices to rise further.
Mr Geoffrey Ying of financial advisory firm New Independent said: 'It's human psychology: since they have waited so long, what's a few more months or years?'
The MAS also said that the banking system's overall property exposure has gone up further as the boom spreads to the mass market. While the rise in banks' property exposure has been driven mainly by loans to property-related firms, loans to individual investors have also risen of late.
Owners no longer in negative equity may be tempted to sell and cash in
THE number of home owners in negative equity - where the property is worth less than the loan taken to buy it - has been slashed due to soaring real estate prices.
Four years ago, about 13.7 per cent of owners with home loans were in negative equity but that has now fallen to just 2.5 per cent, said the Monetary Authority of Singapore (MAS).
The proportion a year earlier was 5.1 per cent.
In terms of the total value of outstanding home loans, only 2.4 per cent were in negative equity in September - down from 4.7 per cent a year ago and 14.1 per cent in 2003.
Property experts tip that the significant shift into 'positive equity' will tempt some owners, particularly investors, to sell and cash in.
Owner-occupiers may refinance - taking out a new mortgage at a lower rate - while others will wait for prices to rise even more before selling.
The MAS figures, contained in its latest Financial Stability Review, came from a survey of six banks, which account for almost the entire home loan market.
OCBC Bank's head of consumer secured lending, Mr Gregory Chan, said: 'In line with the healthy economic growth, we observe that home loans taken on properties bought in the mid-1990s have been steadily recovering from their negative equity positions since 2004.
'We have also noted an increased trend of consumers selling their properties for a profit.'
The number of requests for loan refinancing has also gone up in the past three months.A local bank executive believes positive equity is one of the reasons for this.
Home owners who wanted to sell their properties while in negative equity would have had to pay the bank the difference between the outstanding mortgage and the sale price. But those who held on may now be willing to sell, said property consultants.
'Singaporeans are quite averse to selling things - especially big-ticket items - at a loss,' said Mr Nicholas Mak of property consultancy Knight Frank.
Mr Eric Cheng, executive director of property agency HSR, recalled one owner who bought a Mandarin Gardens unit for $950,000 in 1996, only to see its value drop to about $600,000 around 2001.
After holding out for more than a decade, he finally managed to sell his unit for $1.08 million earlier this year.
For such sellers who have had the distressing experience of being in negative equity, cashing out with a profit at the earliest chance is a must. 'They don't want to experience another slump, which may last for another eight to 10 years,' said Mr Cheng.
Owners might also be tempted to get out while the going is good, given recent government steps to cool the market, said a banker. Stricter collective sale rules, hikes in development fees and the axing of deferred payments would moderate price rises.
But there will be others who will hang on, waiting for home prices to rise further.
Mr Geoffrey Ying of financial advisory firm New Independent said: 'It's human psychology: since they have waited so long, what's a few more months or years?'
The MAS also said that the banking system's overall property exposure has gone up further as the boom spreads to the mass market. While the rise in banks' property exposure has been driven mainly by loans to property-related firms, loans to individual investors have also risen of late.
Touting Lawyers Caught On Camera
Source : TODAY, Wednesday, December 5, 2007
Trio suspended for offering fees to a 'property agent'
THREE lawyers have been suspended from practice after they were found guilty of touting.
In the Court of Three Judges yesterday, Chief Justice Chan Sek Keong handed lawyers Phyllis Tan Guat Neo, Lilian Bay Puay Joo and James Liew Boon Kwee immediate suspension terms of 15 months, 12 months and nine months, respectively, for touting for conveyancing work.
The trio, who were hauled to court by the Law Society of Singapore, were also ordered to pay legal costs for all the proceedings.
The three lawyers were caught secretly on camera — on separate occasions in February and March 2004 — attempting or agreeing to offer fees to a "property agent" for referring conveyancing work to their respective firms.
The "property agent" was, in fact, Ms Jenny Lee, a part-time investigator with Dong Investigation and Security Consultancy. A group of unnamed lawyers had approached the private investigation firm in February that year to obtain evidence of law firms that were offering incentives to property agents for client referrals.
All three lawyers had earlier appealed for the evidence against them to be thrown out of court on the grounds that Ms Lee had obtained the recordings by entrapment.
But the court held that a prosecution based on entrapment evidence was not an "abuse of process" if the purpose was to determine whether the accused was guilty of the offences. The court added that excluding such evidence would be "inconsistent with the terms of the Evidence Act".
This is for the second time that the Law Society has taken action against touting lawyers. In December last year, Dave Tan Buck Chye was suspended for six months for a similar offence.
The touting cases are the latest in a string of incidents involving errant lawyers.
The Law Society is in the midst of examining law firm Sadique Marican and ZM Amin's clients' account after partner Zulkifli Amin allegedly went missing with as much as $6 million last month.
Trio suspended for offering fees to a 'property agent'
THREE lawyers have been suspended from practice after they were found guilty of touting.
In the Court of Three Judges yesterday, Chief Justice Chan Sek Keong handed lawyers Phyllis Tan Guat Neo, Lilian Bay Puay Joo and James Liew Boon Kwee immediate suspension terms of 15 months, 12 months and nine months, respectively, for touting for conveyancing work.
The trio, who were hauled to court by the Law Society of Singapore, were also ordered to pay legal costs for all the proceedings.
The three lawyers were caught secretly on camera — on separate occasions in February and March 2004 — attempting or agreeing to offer fees to a "property agent" for referring conveyancing work to their respective firms.
The "property agent" was, in fact, Ms Jenny Lee, a part-time investigator with Dong Investigation and Security Consultancy. A group of unnamed lawyers had approached the private investigation firm in February that year to obtain evidence of law firms that were offering incentives to property agents for client referrals.
All three lawyers had earlier appealed for the evidence against them to be thrown out of court on the grounds that Ms Lee had obtained the recordings by entrapment.
But the court held that a prosecution based on entrapment evidence was not an "abuse of process" if the purpose was to determine whether the accused was guilty of the offences. The court added that excluding such evidence would be "inconsistent with the terms of the Evidence Act".
This is for the second time that the Law Society has taken action against touting lawyers. In December last year, Dave Tan Buck Chye was suspended for six months for a similar offence.
The touting cases are the latest in a string of incidents involving errant lawyers.
The Law Society is in the midst of examining law firm Sadique Marican and ZM Amin's clients' account after partner Zulkifli Amin allegedly went missing with as much as $6 million last month.
Three Lawyers Suspended For Touting After Sting Operation
Source : The Straits Times, Dec 04, 2007
THREE lawyers who offered incentives to a 'housing agent' for referring property deals to them were suspended from practice for between nine and 15 months on Tuesday.
In handing down the penalties to Mrs Phyllis Fong, Ms Lilian Bay and Mr James Liew, the Court of Three Judges - the highest body that decides on disciplinary cases against lawyers - roundly rejected their arguments of entrapment.
They were each found guilty by separate disciplinary committees of touting for conveyancing work.
Such touting, which involves paying a fee to a real estate agent for referring a client, amounts to misconduct under the Legal Profession Act.
The bulk of the evidence against them was obtained by the same part-time private investigator by the name of Jenny Lee.
Ms Lee was hired by a PI agency, which in turn was instructed by a group of unidentified lawyers, to carry out a sting operation against fellow law firms, for motives still unclear.
Posing as a real estate agent, Ms Lee went to different law firms to obtain evidence that lawyers there were promising rewards for referring legal work to them.
Several lawyers were caught in the act - their meetings were secretly recorded by Ms Lee, who then complained to the Law Society.
The first lawyer brought before the court was Mr Dave Tan, who pleaded guilty and was suspended for six months last November.
Other lawyers, including Mrs Fong, Mr Liew and Ms Bay, fought back. Represented by different counsel, they mounted various arguments.
The common defence was that the evidence obtained by Ms Lee should not have been admitted against them.
They argued that this was because such evidence was obtained by way of entrapment, which amounted to an abuse of the disciplinary process.
They also argued that the identity of the lawyers who had hired the PI should be disclosed.
However, these arguments were rejected by by the court, headed by Chief Justice Chan Sek Keong, which issued three separate judgments totalling 144 pages.
The Court held that entrapment evidence is admissible under Singapore law, whether done by law enforcement officers or by lawyers for the purpose of bringing disciplinary proceedings against errant lawyers.
The court also ruled that the entrapment evidence could not be described as an abuse of process if the prosecution was commenced for the purpose of ascertaining whether an accused person was guilty of the offences for which he or she was charged.
In Mrs Fong's case, the lawyer of 29 years' standing had offered a $200 shopping voucher to private investigator Jenny Lee in return for bringing her business.
Ms Lee had posed as an estate agent and had offered her a conveyancing deal involving a house in Lengkok Mariam.
She also recorded their conversation and secretly videotaped their meeting in March 2004. The deal was subsequently aborted, but Ms Lee followed up with a complaint.
In its judgment in Phyllis Tan's case, the Court held that entrapment evidence is admissible under Singapore law.
Excluding it would be inconsistent with the terms of the Evidence Act, it ruled.
THREE lawyers who offered incentives to a 'housing agent' for referring property deals to them were suspended from practice for between nine and 15 months on Tuesday.
In handing down the penalties to Mrs Phyllis Fong, Ms Lilian Bay and Mr James Liew, the Court of Three Judges - the highest body that decides on disciplinary cases against lawyers - roundly rejected their arguments of entrapment.
They were each found guilty by separate disciplinary committees of touting for conveyancing work.
Such touting, which involves paying a fee to a real estate agent for referring a client, amounts to misconduct under the Legal Profession Act.
The bulk of the evidence against them was obtained by the same part-time private investigator by the name of Jenny Lee.
Ms Lee was hired by a PI agency, which in turn was instructed by a group of unidentified lawyers, to carry out a sting operation against fellow law firms, for motives still unclear.
Posing as a real estate agent, Ms Lee went to different law firms to obtain evidence that lawyers there were promising rewards for referring legal work to them.
Several lawyers were caught in the act - their meetings were secretly recorded by Ms Lee, who then complained to the Law Society.
The first lawyer brought before the court was Mr Dave Tan, who pleaded guilty and was suspended for six months last November.
Other lawyers, including Mrs Fong, Mr Liew and Ms Bay, fought back. Represented by different counsel, they mounted various arguments.
The common defence was that the evidence obtained by Ms Lee should not have been admitted against them.
They argued that this was because such evidence was obtained by way of entrapment, which amounted to an abuse of the disciplinary process.
They also argued that the identity of the lawyers who had hired the PI should be disclosed.
However, these arguments were rejected by by the court, headed by Chief Justice Chan Sek Keong, which issued three separate judgments totalling 144 pages.
The Court held that entrapment evidence is admissible under Singapore law, whether done by law enforcement officers or by lawyers for the purpose of bringing disciplinary proceedings against errant lawyers.
The court also ruled that the entrapment evidence could not be described as an abuse of process if the prosecution was commenced for the purpose of ascertaining whether an accused person was guilty of the offences for which he or she was charged.
In Mrs Fong's case, the lawyer of 29 years' standing had offered a $200 shopping voucher to private investigator Jenny Lee in return for bringing her business.
Ms Lee had posed as an estate agent and had offered her a conveyancing deal involving a house in Lengkok Mariam.
She also recorded their conversation and secretly videotaped their meeting in March 2004. The deal was subsequently aborted, but Ms Lee followed up with a complaint.
In its judgment in Phyllis Tan's case, the Court held that entrapment evidence is admissible under Singapore law.
Excluding it would be inconsistent with the terms of the Evidence Act, it ruled.
3-Room HDB Flat Goes For $380,000
Source : The Straits Times, Dec 04, 2007
A 27-year-old three-room Housing Board flat in Upper Cross Street was sold for $382,000 last month - some $100,000 above valuation.
That same month, a 31-year-old unit at Marine Drive was sold for $350,000 - about $75,000 above valuation, according to a report in The New Paper on Tuesday. The owner had bought it for $250,000 about five years ago, and forked out another $70,000 for renovation.
The unit, with a sea-view is on the ninth floor of a 13-storey block.
The buyer, who was downgrading from a private property, bought it as her retirement home
Industry watchers said they are believed to have set a record for three-room HDB prices here, and are more expensive than many five-room flats in the market.
For comparison, a five-room flat of about 31 years old in central Toa Payoh was sold for $337,000 in November.
PropNex's chief executive Mohamed Ismail told The New Paper that these prices are even higher than those sold during the property peak in the mid-1990s.
Generally, prices of three-room flats rarely fetch more than $300,000, he said, but added that the new record-breaking prices are not a benchmark of the entire and are "an anomaly."
Last month, two five-room flats in Marine Parade were sold at record breaking prices of $750,888 and $730,000.
A 27-year-old three-room Housing Board flat in Upper Cross Street was sold for $382,000 last month - some $100,000 above valuation.
That same month, a 31-year-old unit at Marine Drive was sold for $350,000 - about $75,000 above valuation, according to a report in The New Paper on Tuesday. The owner had bought it for $250,000 about five years ago, and forked out another $70,000 for renovation.
The unit, with a sea-view is on the ninth floor of a 13-storey block.
The buyer, who was downgrading from a private property, bought it as her retirement home
Industry watchers said they are believed to have set a record for three-room HDB prices here, and are more expensive than many five-room flats in the market.
For comparison, a five-room flat of about 31 years old in central Toa Payoh was sold for $337,000 in November.
PropNex's chief executive Mohamed Ismail told The New Paper that these prices are even higher than those sold during the property peak in the mid-1990s.
Generally, prices of three-room flats rarely fetch more than $300,000, he said, but added that the new record-breaking prices are not a benchmark of the entire and are "an anomaly."
Last month, two five-room flats in Marine Parade were sold at record breaking prices of $750,888 and $730,000.
Three-Room Flat Goes For $380,000
Source : The Electric New Paper December 05, 2007
Small flats in Upper Cross Street, Marine Parade sold for record prices
A THREE-ROOM flat in Upper Cross Street was sold for $382,000 - some $100,000 above valuation.
Prices of three-room flats rarely exceed $300,000, so the record-breaking prices of Ms Stella Chien's (above) flat and the Upper Cross Street flat (below) are anomalies, says an industry expert. -- Picture: KUA CHEE SIONG
The sale of the 27-year-old flat took place last month.
That same month, a 31-year-old unit at Marine Drive was sold for $350,000 - some $75,000 above valuation.
They are believed to have set a record for three-room HDB prices here, industry watchers said.
And at these prices, they're more expensive than many five-room flats in the market. As a rough comparison, a five-room flat - about 31 years old - in centralised Toa Payoh was sold for $337,000 in November.
PropNex's chief executive Mohamed Ismail believes these prices are even higher than those sold during the property peak in the mid-1990s.
He said: 'Some five-room and three-room flats are making headlines with their record prices these days, even higher than during the peak years.
'Back then, Bishan flats were the most expensive, but those were mostly executive flats.
'Generally, prices of three-room flats rarely exceed $300,000. But these record-breaking prices are not a benchmark of the entire area and are an anomaly.'
Last month, two five-room flats in Marine Parade were sold at record-breaking prices of $750,888 and $730,000.
Mr Ismail said these premium flats are usually well-renovated, situated in a good location and has that X-factor such as a good sea-view.
He warned that sellers shouldn't be greedy and expect that their unit can command that premium price too.
He said that the pool of buyers willing to pay more than $50,000 cash upfront is small.
'Not many buyers have that much cash. These people are cash-rich and usually, they've benefited from an en-bloc sale or they're retirees who've sold their existing place at a high price.
'Some are also downgrading from their private property.
'These people like to have a small asset for their basic needs. And they are willing to pay that kind of price.'
One such buyer paid $75,000 cash above valuation for the three-room Marine Drive flat as her retirement home.
She was downgrading from a private property.
The buyer, who declined to be interviewed, said through her agent that she bought the place for the location, renovation work and the sea-view.
The three-room flat is a corridor unit, and picks up traffic noise from the nearby East Coast Parkway.
It's located on the ninth floor of a 13-storey block.
The seller, ship chandler Stella Chien, bought the unit for about $250,000 some five years ago, and pumped in another $70,000 or so for renovation.
She thinks the buyer got a fairly good price, considering the amount she spent on renovation.
CLOSE TO SEA
Her initial asking price was $380,000, but she decided to let it go at $350,000.
Ms Chien, 45, said: 'I really love this place but I'm usually overseas for work and I've no time to enjoy my home.
'I love its proximity to the sea and Parkway Parade.
'I bought it as a retirement home, but I don't have the time to upkeep it either.'
She intends to move back to her parent's semi-detached home in MacPherson to take care of them.
Her agent, Mr Samuel Lew of ERA, said he was surprised that the parties managed to seal the deal at such a high price.
The flat was on the market for two weeks before the buyer saw the place, fell in love with it and made an offer the very next day.
Mr Lew said: 'I thought the asking price was unrealistic at first. And I was expecting to sell it for a bit above $300,000.
'So, it was really a surprise when the offer of $350,000 came in.
'I think the buyer really likes the renovation and the sea-view.'
Small flats in Upper Cross Street, Marine Parade sold for record prices
A THREE-ROOM flat in Upper Cross Street was sold for $382,000 - some $100,000 above valuation.
Prices of three-room flats rarely exceed $300,000, so the record-breaking prices of Ms Stella Chien's (above) flat and the Upper Cross Street flat (below) are anomalies, says an industry expert. -- Picture: KUA CHEE SIONG
The sale of the 27-year-old flat took place last month.
That same month, a 31-year-old unit at Marine Drive was sold for $350,000 - some $75,000 above valuation.
They are believed to have set a record for three-room HDB prices here, industry watchers said.
And at these prices, they're more expensive than many five-room flats in the market. As a rough comparison, a five-room flat - about 31 years old - in centralised Toa Payoh was sold for $337,000 in November.
PropNex's chief executive Mohamed Ismail believes these prices are even higher than those sold during the property peak in the mid-1990s.
He said: 'Some five-room and three-room flats are making headlines with their record prices these days, even higher than during the peak years.'Back then, Bishan flats were the most expensive, but those were mostly executive flats.
'Generally, prices of three-room flats rarely exceed $300,000. But these record-breaking prices are not a benchmark of the entire area and are an anomaly.'
Last month, two five-room flats in Marine Parade were sold at record-breaking prices of $750,888 and $730,000.
Mr Ismail said these premium flats are usually well-renovated, situated in a good location and has that X-factor such as a good sea-view.
He warned that sellers shouldn't be greedy and expect that their unit can command that premium price too.
He said that the pool of buyers willing to pay more than $50,000 cash upfront is small.
'Not many buyers have that much cash. These people are cash-rich and usually, they've benefited from an en-bloc sale or they're retirees who've sold their existing place at a high price.
'Some are also downgrading from their private property.
'These people like to have a small asset for their basic needs. And they are willing to pay that kind of price.'
One such buyer paid $75,000 cash above valuation for the three-room Marine Drive flat as her retirement home.
She was downgrading from a private property.
The buyer, who declined to be interviewed, said through her agent that she bought the place for the location, renovation work and the sea-view.
The three-room flat is a corridor unit, and picks up traffic noise from the nearby East Coast Parkway.
It's located on the ninth floor of a 13-storey block.
The seller, ship chandler Stella Chien, bought the unit for about $250,000 some five years ago, and pumped in another $70,000 or so for renovation.
She thinks the buyer got a fairly good price, considering the amount she spent on renovation.
CLOSE TO SEA
Her initial asking price was $380,000, but she decided to let it go at $350,000.
Ms Chien, 45, said: 'I really love this place but I'm usually overseas for work and I've no time to enjoy my home.
'I love its proximity to the sea and Parkway Parade.
'I bought it as a retirement home, but I don't have the time to upkeep it either.'
She intends to move back to her parent's semi-detached home in MacPherson to take care of them.
Her agent, Mr Samuel Lew of ERA, said he was surprised that the parties managed to seal the deal at such a high price.
The flat was on the market for two weeks before the buyer saw the place, fell in love with it and made an offer the very next day.
Mr Lew said: 'I thought the asking price was unrealistic at first. And I was expecting to sell it for a bit above $300,000.
'So, it was really a surprise when the offer of $350,000 came in.
'I think the buyer really likes the renovation and the sea-view.'
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