Source : The Straits Times, Dec 22, 2007
Some companies forced to move to cheaper space in older buildings.
SOARING office rents have forced the Shenton Medical Group clinic out of its Republic Plaza location to a cheaper space at an older building nearby - The Arcade.
The company had been paying $5 plus per sq ft (psf) since 2002-2003 but was stunned with a demand for about $18 psf in the middle of the year, when lease renewal talks started.
Dr Lee Hong Huei, deputy president, Singapore operations division of ParkwayHealth, said the massive rise was a major factor in the firm’s decision to move.
‘We felt that it was a bit difficult to pass on the costs to our clients,’ he said.
It is becoming a familiar story around town with companies caught between a space crunch and relentless rent rises.
Parkway’s new clinic will open in January and take up a similar amount of space on part of The Arcade’s 18th floor and all of the 19th floor.
While The Arcade is in the prime Raffles Place area, it is not a new or top-grade building. Republic Plaza, on the other hand, is among the most coveted addresses in the area.
Asking rents at the City Developments-owned building have climbed to a whopping $19.80 psf amid the supply squeeze.
Monthly asking rents for prime office spaces in the Central Business District now average $16.30 psf, according to property consultancy Cushman & Wakefield.
This is up 4.5 per cent from last month and an eye-watering 285 per cent increase from the market bottom about three years ago.
Even in the shopping belt of Orchard and Scotts Roads, prime office rents have risen to $13.61 psf, up 8 per cent from last month and nearly 102 per cent from a year ago, said Cushman & Wakefield.
‘Almost all our facilities have experienced rents rising at 30 to 40 per cent on average, except for the 300 per cent jump at Republic Plaza,’ said Shenton’s Dr Lee.
‘Medicine costs have also gone up, so our margins are very thin.’
The increase in prime office rents this year has been rapid.
Last month, net rents for the top 25 grade A office buildings were at a record $16.02 psf a month on average from $15.54 in October.
To manage the supply squeeze, the Government has released transitional office sites for short-term lease and more office sites for sale.
But a new building on a sale site may not come in time to meet current demand.
The buildings on sites sold recently in Tanjong Pagar and Marina View are expected to come on stream only around late 2010 to 2011, said Cushman & Wakefield managing director Donald Han.
There are also concerns of an oversupply from 2010, when a large amount of space in the Marina Bay Financial Centre becomes available.
Nevertheless, space remains tight for now.
Next year, just about 1.35 million sq ft of space will come on stream, with less than half a million sq ft in prime areas such as VisionCrest in the Oxley area near Orchard Road, said Mr Han, but historical office demand is at two million sq ft a year.
‘The upswing in rents will continue next year, but the pace of acceleration will slow as we are already moving to a high base,’ he said.
There is also increasing resistance, as companies move to cheaper space in alternative or suburban locations.
Mr Han forecasts a rise of 20 per cent to 25 per cent in office rents for next year.
Monday, December 24, 2007
分层地契局批准吉门岭公寓Gillman Heights集体出售
Source : 《联合早报》Dec 22, 2007
新加坡分层地契局昨天拒绝接受吉门岭公寓（Gillman Heights）少数业主提出的一系列反对论据，批准该公寓集体出售。
少数业主针对销售委员会行事欠缺透明，没有清楚并且违反了10年以下的房地产须取得90％单位业主同意，才可申请集体出售的分层地契局规定，于今年7月向该局提出反对。
分层地契局参考了过去两个月上诉遭驳回的浩然大厦（Horizon Towers）以及凤凰楼(Phoenix Court)集体出售案子为背景，以法律的意义为考量，认为以上论据不足以损害少数业主的利益，因此宣判它们的反对论据不成立。
位于亚历山大路一带的吉门岭公寓是个私有化中等入息公寓（HUDC），虽建于1984年，但是在1995年才进行私营化，直到2002年才取得法定完工证书(Certificate of Statutory Completion)。同意出售的业主占87.4％左右。
分层地契局认为，既然吉门岭公寓的业主在1984年迁入后就能自由出售房子，而申请法定完工证书不足以改变屋龄，公寓仍属于99年地契，因此少数业主的反对没有根据。该局也指出，法定完工证书只是为确保公寓符合防火安全规格。
嘉德置地（CapitaLand）与HPL Orchard Place和另外两个私人基金，今年2月斥资5亿4800万元买下吉门岭公寓，计划兴建约1200个单位的地标性私宅。
吉门岭公寓的608名屋主中，其中303个单位属于新加坡国立大学，另外有76名是反对出售的少数业主。
据了解，原本有42名业主向分层地契局提出反对，而其中32名业主联合聘请律师代表打官司。案子受审理后，另外11名少数业主也申请提出反对，最后共53人向该局呈交反对论据。这相信是近年来反对集体出售交易项目中，人数最多的一起。审讯为期7天。据大多数业主的代表律师李及李律师馆高级律师郭茂华说，有6名原本提出反对的少数业主，在审讯开始前接受了买方额外的“合理赔偿”，而撤出反对申请。
然而，其余的一些少数业主却要求比原本所得的赔偿高出20万元至40万元的款额，才肯同意撤销反对。
吉门岭公寓每个单位原本将获得介于89万元至95万元之间的赔偿，相等于每平方英尺500元左右。
郭茂华表示，买方曾听闻有少数业主有这样的要求，但由于20万至40万元不是小数目，买方认为这个要求并不合理，对其余已答应出售的业主有欠公平，因此不愿提出提高赔偿额。
本报昨天联络上的少数业主都表示对裁决感到失望，目前正在考虑是否要上诉。
一名郭姓少数业主说：“以凤凰楼作为背景来裁定我们的公寓是否能成功出售有欠公平，少数业主会聚集在一起商讨后再决定是否要上诉。”
如果不服分层地契局的判决，少数业主有一个月的时间向高庭提出上诉。
新加坡分层地契局昨天拒绝接受吉门岭公寓（Gillman Heights）少数业主提出的一系列反对论据，批准该公寓集体出售。
少数业主针对销售委员会行事欠缺透明，没有清楚并且违反了10年以下的房地产须取得90％单位业主同意，才可申请集体出售的分层地契局规定，于今年7月向该局提出反对。
分层地契局参考了过去两个月上诉遭驳回的浩然大厦（Horizon Towers）以及凤凰楼(Phoenix Court)集体出售案子为背景，以法律的意义为考量，认为以上论据不足以损害少数业主的利益，因此宣判它们的反对论据不成立。
位于亚历山大路一带的吉门岭公寓是个私有化中等入息公寓（HUDC），虽建于1984年，但是在1995年才进行私营化，直到2002年才取得法定完工证书(Certificate of Statutory Completion)。同意出售的业主占87.4％左右。
分层地契局认为，既然吉门岭公寓的业主在1984年迁入后就能自由出售房子，而申请法定完工证书不足以改变屋龄，公寓仍属于99年地契，因此少数业主的反对没有根据。该局也指出，法定完工证书只是为确保公寓符合防火安全规格。
嘉德置地（CapitaLand）与HPL Orchard Place和另外两个私人基金，今年2月斥资5亿4800万元买下吉门岭公寓，计划兴建约1200个单位的地标性私宅。
吉门岭公寓的608名屋主中，其中303个单位属于新加坡国立大学，另外有76名是反对出售的少数业主。
据了解，原本有42名业主向分层地契局提出反对，而其中32名业主联合聘请律师代表打官司。案子受审理后，另外11名少数业主也申请提出反对，最后共53人向该局呈交反对论据。这相信是近年来反对集体出售交易项目中，人数最多的一起。审讯为期7天。据大多数业主的代表律师李及李律师馆高级律师郭茂华说，有6名原本提出反对的少数业主，在审讯开始前接受了买方额外的“合理赔偿”，而撤出反对申请。
然而，其余的一些少数业主却要求比原本所得的赔偿高出20万元至40万元的款额，才肯同意撤销反对。
吉门岭公寓每个单位原本将获得介于89万元至95万元之间的赔偿，相等于每平方英尺500元左右。
郭茂华表示，买方曾听闻有少数业主有这样的要求，但由于20万至40万元不是小数目，买方认为这个要求并不合理，对其余已答应出售的业主有欠公平，因此不愿提出提高赔偿额。
本报昨天联络上的少数业主都表示对裁决感到失望，目前正在考虑是否要上诉。
一名郭姓少数业主说：“以凤凰楼作为背景来裁定我们的公寓是否能成功出售有欠公平，少数业主会聚集在一起商讨后再决定是否要上诉。”
如果不服分层地契局的判决，少数业主有一个月的时间向高庭提出上诉。
集永成Chip Eng Seng以 1.04 亿元标得伊莱雅路Elias Rd公寓地段
Source : 《联合早报》Dec 22, 2007
新加坡集永成(Chip Eng Seng)以1亿零400万元成功标下位于伊莱雅路（Elias Road）的一幅私人公寓地段，计划发展成多达400个单位的中档公寓项目。这个标价相等于容积率每平方英尺约228元。
集永成集团执行总裁谢礼铭接受本报访问时透露，由于这幅地段靠近公园和海边，集团打算兴建以翠绿度假村为主题、高17楼的公寓，而9楼以上的公寓将能观赏到海景。
料明年第三季推出
新项目预计在明年第三季推出市场，售价料将从680元起。
这幅占地1万4126平方公尺（15万1999平方英尺）的地段，可建筑楼面达45万5997平方英尺，属于99年地契。建屋发展局是在10月底将这幅地段公开招标，在招标截止时共吸引到三个投标者。其中，集永成的标价最高，比最低投标者森联集团的9300万元标价多出1100万元。
由于这幅地段位于巴西立政府组屋区内，到巴西立地铁站只需步行10至15分钟，与巴西立公园毗邻，分析师看好这个地段受大组屋提升者以及年轻夫妇欢迎。
分析师说，附近最新的公寓项目是永久地契地段瑞俪园（Ris Grandeur），在2004年10月推出，而99年地契的清水园（Whitewater)执行共管公寓则是在2002年11月推出，因此在这一带新建的公寓应该会有附近组屋提升者这些“现成客户”。
由于地段靠近海滩、消闲设施和樟宜国际机场，分析师也认为其租金潜能不错。
在买下这幅地段之前，集永成集团已有超过一年的时间没有填补土地库。谢礼铭解释说，这是由于过去一年来，建筑材料价格以及工人供应不稳定，使公司无法准确估价投标，因此选择不进行投标。
“政府最近宣布放宽本地人对外国客工的比例，而建筑材料供应问题也稳定下来，我们因此决定再次进场。”
发展焦点将放在中至中高档私宅
展望未来，谢礼铭透露，集团将把焦点放在发展中至中高档私宅项目上。
“一年多前，我们看好中至中高档的私宅将看涨，而The Parc在今年8月推出时，在短短六天内就全部售出，证实了我们之前的判断是对的，使我们对这方面的市场信心大增。”
The Parc位于西海岸，属于永久地契，659个单位的售价介于每平方英尺674元至1056元。
集团目前手头上还有两个高档公寓项目，即位于碧霞路(Peck Hay Rd)的City Vista Residences以及乌节路一带的格兰芝路(Grange Road)的Grange Infinite。
此外，集永成今年8月以380万元购买越南上市公司和平建筑与房地产公司(Hoa Binh Construction & Real EstateCorporation)5%的股份，开始拓展海外业务。集团也正积极在泰国、马来西亚和中国寻找发展房地产项目的机会。
新加坡集永成(Chip Eng Seng)以1亿零400万元成功标下位于伊莱雅路（Elias Road）的一幅私人公寓地段，计划发展成多达400个单位的中档公寓项目。这个标价相等于容积率每平方英尺约228元。
集永成集团执行总裁谢礼铭接受本报访问时透露，由于这幅地段靠近公园和海边，集团打算兴建以翠绿度假村为主题、高17楼的公寓，而9楼以上的公寓将能观赏到海景。
料明年第三季推出
新项目预计在明年第三季推出市场，售价料将从680元起。
这幅占地1万4126平方公尺（15万1999平方英尺）的地段，可建筑楼面达45万5997平方英尺，属于99年地契。建屋发展局是在10月底将这幅地段公开招标，在招标截止时共吸引到三个投标者。其中，集永成的标价最高，比最低投标者森联集团的9300万元标价多出1100万元。
由于这幅地段位于巴西立政府组屋区内，到巴西立地铁站只需步行10至15分钟，与巴西立公园毗邻，分析师看好这个地段受大组屋提升者以及年轻夫妇欢迎。
分析师说，附近最新的公寓项目是永久地契地段瑞俪园（Ris Grandeur），在2004年10月推出，而99年地契的清水园（Whitewater)执行共管公寓则是在2002年11月推出，因此在这一带新建的公寓应该会有附近组屋提升者这些“现成客户”。
由于地段靠近海滩、消闲设施和樟宜国际机场，分析师也认为其租金潜能不错。
在买下这幅地段之前，集永成集团已有超过一年的时间没有填补土地库。谢礼铭解释说，这是由于过去一年来，建筑材料价格以及工人供应不稳定，使公司无法准确估价投标，因此选择不进行投标。
“政府最近宣布放宽本地人对外国客工的比例，而建筑材料供应问题也稳定下来，我们因此决定再次进场。”
发展焦点将放在中至中高档私宅
展望未来，谢礼铭透露，集团将把焦点放在发展中至中高档私宅项目上。
“一年多前，我们看好中至中高档的私宅将看涨，而The Parc在今年8月推出时，在短短六天内就全部售出，证实了我们之前的判断是对的，使我们对这方面的市场信心大增。”
The Parc位于西海岸，属于永久地契，659个单位的售价介于每平方英尺674元至1056元。
集团目前手头上还有两个高档公寓项目，即位于碧霞路(Peck Hay Rd)的City Vista Residences以及乌节路一带的格兰芝路(Grange Road)的Grange Infinite。
此外，集永成今年8月以380万元购买越南上市公司和平建筑与房地产公司(Hoa Binh Construction & Real EstateCorporation)5%的股份，开始拓展海外业务。集团也正积极在泰国、马来西亚和中国寻找发展房地产项目的机会。
Boom Year For Hotels In Singapore
Source : The Straits Times, Dec 24, 2007
THE full rooms at the inns, from Geylang to Marina Bay, have been keeping hoteliers very busy - and jolly.
The year has been marked by the setting and breaking of record after record, and the numbers attest to their 'it has been the best year ever' chorus.
Strong tourism arrivals saw Singapore welcome its 10 millionth visitor on Saturday. Demand for rooms has been exceptionally high, with average occupancy in the high 80s percentage range throughout the year.
The shortage was so acute that travel agents had to put customers up in outlying areas such as Geylang because they could not get rooms downtown.
Three records have been set for average room rates. The highest, and most recent, was $219 in October.
The numbers for room revenues are even better. Four highs were set, surging above the last peak in 1995. October was an all-time record at $178.4 million.
The hotel industry's joy is palpable, given the doldrums not so long ago. The robust demand means hoteliers can raise rates without too much worry.
'Room rates have been undervalued for too long. The increase is way overdue,' said Ms Stella Gillera, Mandarin Oriental's director of sales and marketing.
Meanwhile, things could get even better, as the data for last month and this month have yet to be released, said hotel analyst Chee Hok Yean, executive vice-president of Jones Lang LaSalle Hotels.
She expects room rates to head up by another 15 per cent to 20 per cent, and room occupancy to remain between 85 per cent and 90 per cent next year.
Already, Pan Pacific Singapore and Royal Plaza on Scotts are increasing room rates by 20 per cent to 25 per cent, while Orchard Hotel's are going up by about 10 per cent.
Meanwhile, new hotels are opening. The latest is St Regis Singapore, which welcomed its first guest on Saturday. The luxury hotel is charging $680 a night for its lowest-tiered rooms, and $10,000 a night for its presidential suite.
The opening of St Regis and 10 new hotels - adding some 1,700 rooms next year - should bring some slight relief to the room crunch, said Ms Caroline Leong, the Singapore Tourism Board's director of travel services and hospitality business.
Given the boom in the sector and with more hotels opening, competition for labour will be tighter. Hotels are keen to ensure staff loyalty, which translates into better pay and perks.
Hotels have yet to announce year-end bonuses, but indications are that it will be a fat cheque for many just before Chinese New Year.
Mandarin Oriental's Ms Gillera said: 'Our staff should be very very happy.'
Opening soon
Park Hotel Clarke Quay: 355 rooms
The Crowne Plaza Changi Airport Hotel: 307 rooms
Capella Singapore: 193 rooms
NTUC Palawan Beach Resort: 200 rooms
Movenpick Treasure Resort: 118 rooms
Ascott Singapore@Raffles 152 rooms
Quincy Hotel: 108 rooms
Hotel at Carpenter Street: 42 rooms
Hotel at Jalan Kubor: 70 rooms
Hotel at Chin Swee Road: 133 rooms
THE full rooms at the inns, from Geylang to Marina Bay, have been keeping hoteliers very busy - and jolly.
The year has been marked by the setting and breaking of record after record, and the numbers attest to their 'it has been the best year ever' chorus.
Strong tourism arrivals saw Singapore welcome its 10 millionth visitor on Saturday. Demand for rooms has been exceptionally high, with average occupancy in the high 80s percentage range throughout the year.
The shortage was so acute that travel agents had to put customers up in outlying areas such as Geylang because they could not get rooms downtown.
Three records have been set for average room rates. The highest, and most recent, was $219 in October.
The numbers for room revenues are even better. Four highs were set, surging above the last peak in 1995. October was an all-time record at $178.4 million.
The hotel industry's joy is palpable, given the doldrums not so long ago. The robust demand means hoteliers can raise rates without too much worry.
'Room rates have been undervalued for too long. The increase is way overdue,' said Ms Stella Gillera, Mandarin Oriental's director of sales and marketing.
Meanwhile, things could get even better, as the data for last month and this month have yet to be released, said hotel analyst Chee Hok Yean, executive vice-president of Jones Lang LaSalle Hotels.
She expects room rates to head up by another 15 per cent to 20 per cent, and room occupancy to remain between 85 per cent and 90 per cent next year.
Already, Pan Pacific Singapore and Royal Plaza on Scotts are increasing room rates by 20 per cent to 25 per cent, while Orchard Hotel's are going up by about 10 per cent.
Meanwhile, new hotels are opening. The latest is St Regis Singapore, which welcomed its first guest on Saturday. The luxury hotel is charging $680 a night for its lowest-tiered rooms, and $10,000 a night for its presidential suite.
The opening of St Regis and 10 new hotels - adding some 1,700 rooms next year - should bring some slight relief to the room crunch, said Ms Caroline Leong, the Singapore Tourism Board's director of travel services and hospitality business.
Given the boom in the sector and with more hotels opening, competition for labour will be tighter. Hotels are keen to ensure staff loyalty, which translates into better pay and perks.
Hotels have yet to announce year-end bonuses, but indications are that it will be a fat cheque for many just before Chinese New Year.
Mandarin Oriental's Ms Gillera said: 'Our staff should be very very happy.'
Opening soon
Park Hotel Clarke Quay: 355 rooms
The Crowne Plaza Changi Airport Hotel: 307 rooms
Capella Singapore: 193 rooms
NTUC Palawan Beach Resort: 200 rooms
Movenpick Treasure Resort: 118 rooms
Ascott Singapore@Raffles 152 rooms
Quincy Hotel: 108 rooms
Hotel at Carpenter Street: 42 rooms
Hotel at Jalan Kubor: 70 rooms
Hotel at Chin Swee Road: 133 rooms
S'pore Residential Market Is World's Hottest This Year
Source : The Straits Times, Dec 24, 2007
SINGAPORE'S booming housing market is the world's hottest this year, with local home prices recording the fastest increase.
Residential property prices in the Republic surged 24.3 per cent, after adjustments for inflation, ahead of other bullish markets such as Shanghai in China and Bulgaria, said property investment research house Global Property Guide.
In a report published online, the firm said Singapore's strong performance, like those of Japan and South Korea, was due to robust economic growth.
The survey was compiled using the latest official data from 42 countries, though other statistics were used for a few markets, such as Japan and the Philippines, where such figures were not available.
The latest Urban Redevelopment Authority (URA) numbers used in the survey show that Singapore home prices registered a 27.6 per cent annual jump at the end of September, significantly higher than the 7.6 per cent posted a year ago.
This nominal, non-inflation adjusted figure was below the 30.6 per cent recorded by Bulgaria in September and the 27.9 per cent recorded by Shanghai in October.
But in real terms, after adjustments for low inflation of only 2.66 per cent, the Republic leapfrogged these two markets to reach the top spot, said the report.
Singapore's strong showing underscored a more general recovery in Asia, where several markets gained momentum in the first three quarters of the year.
Global Property said this reflected, to some extent, continued recovery from the 1997 Asian financial crisis.
In contrast, the United States housing market crashed due to the sub-prime mortgage crisis, while high interest rates were behind the slowdown in European house prices.
'In Europe, most countries registered unimpressive year-on-year house price changes in 2007, aside from Norway and Estonia,' the report said.
Looking to the year ahead, Global Property said property prices in much of Asia are still undervalued compared with pre-Asian crisis levels, despite strong increases this year.
It expects potential improvement in rentals in Singapore.
'We believe gross rental yields are now too low, at 2 to 3 per cent.
'Nevertheless, Singapore is attracting and admitting more foreign-born workers - which is positive for prices,' it said.
Elsewhere in the region, Global Property also recommended Cambodia, Thailand, Japan, Australia and New Zealand to property investors.
It, however, cautioned against investing in Europe, apart from a handful of Eastern European states, because of high valuations after a long period of price appreciation.
In the Middle East, it found Egypt attractive for its high rental yields and low taxes, but warned of a possible oversupply in Dubai as more properties come on stream over the next two years.
--------------------------------------------------------------------------------
STRONG GAINS
While Singapore ranks behind Bulgaria and Shanghai in nominal house price growth, the Republic is the world's best performer in real terms, given its low inflation rate of only 2.66 per cent, says Global Property Guide.
SINGAPORE'S booming housing market is the world's hottest this year, with local home prices recording the fastest increase.
Residential property prices in the Republic surged 24.3 per cent, after adjustments for inflation, ahead of other bullish markets such as Shanghai in China and Bulgaria, said property investment research house Global Property Guide. In a report published online, the firm said Singapore's strong performance, like those of Japan and South Korea, was due to robust economic growth.
The survey was compiled using the latest official data from 42 countries, though other statistics were used for a few markets, such as Japan and the Philippines, where such figures were not available.
The latest Urban Redevelopment Authority (URA) numbers used in the survey show that Singapore home prices registered a 27.6 per cent annual jump at the end of September, significantly higher than the 7.6 per cent posted a year ago.
This nominal, non-inflation adjusted figure was below the 30.6 per cent recorded by Bulgaria in September and the 27.9 per cent recorded by Shanghai in October.
But in real terms, after adjustments for low inflation of only 2.66 per cent, the Republic leapfrogged these two markets to reach the top spot, said the report.
Singapore's strong showing underscored a more general recovery in Asia, where several markets gained momentum in the first three quarters of the year.
Global Property said this reflected, to some extent, continued recovery from the 1997 Asian financial crisis.
In contrast, the United States housing market crashed due to the sub-prime mortgage crisis, while high interest rates were behind the slowdown in European house prices.
'In Europe, most countries registered unimpressive year-on-year house price changes in 2007, aside from Norway and Estonia,' the report said.
Looking to the year ahead, Global Property said property prices in much of Asia are still undervalued compared with pre-Asian crisis levels, despite strong increases this year.
It expects potential improvement in rentals in Singapore.
'We believe gross rental yields are now too low, at 2 to 3 per cent.
'Nevertheless, Singapore is attracting and admitting more foreign-born workers - which is positive for prices,' it said.
Elsewhere in the region, Global Property also recommended Cambodia, Thailand, Japan, Australia and New Zealand to property investors.
It, however, cautioned against investing in Europe, apart from a handful of Eastern European states, because of high valuations after a long period of price appreciation.
In the Middle East, it found Egypt attractive for its high rental yields and low taxes, but warned of a possible oversupply in Dubai as more properties come on stream over the next two years.
--------------------------------------------------------------------------------
STRONG GAINS
While Singapore ranks behind Bulgaria and Shanghai in nominal house price growth, the Republic is the world's best performer in real terms, given its low inflation rate of only 2.66 per cent, says Global Property Guide.
Past Two Years - New Entrants Flock In As Property Sector Booms
Source : The Business Times,December 24, 2007
Six companies, some better known in other businesses, make maiden real estate buys
The property boom over the past two years has drawn many new players who are looking to reap the high returns that property development has to offer.
Six companies made their maiden property purchases this year, data compiled by property firm CB Richard Ellis (CBRE) show. Among them are companies that have made a name for themselves in other businesses, such as construction company KSH Holdings and brokerage firm Kim Eng Holdings. Others are lesser known, like Duchess Development which was formed by two stockbrokers.
In addition, three other companies - BBR Holdings, Popular Holdings and Eastern Holdings - first made their appearance in 2006 with land purchases. This year, they have gone on to snap up more sites.
'When the market is good, it draws in players who may not have been active before,' said CBRE executive director Jeremy Lake.
He noted that many of the new entrants are construction companies that might have decided to take on development risks, after watching their developer clients reap big profits. During a property boom, such risks are lessened.
'If you get your timing right in property, the profits can be substantial,' Mr Lake said.
Experts said that the same trend was seen during the last property boom, which lasted from 1993 to 1996.
Companies that did not look at property development in the past are now beginning to do so because of the fatter margins.
One example is SuperBowl, which teamed up with its parent company Hiap Hoe to buy two sites for a total of $211.3 million.
SuperBowl's managing director Teo Ho Beng told BT that while the company will continue to focus on its core leisure and entertainment business, it will also increase its exposure to property development where the margins are better.
Similarly, KSH Holdings sees good opportunities in property development. The company's chairman and managing director Choo Chee Onn said that his company invested in residential sites this year because the opportunities opened up at the right time.
'Going forward, we will buy more sites if the right opportunities arise,' Mr Choo said in an interview. The company spent $180.8 million on two residential sites this year.
The first site, which KSH acquired in June with three other partners, was the construction company's first purchase of a land parcel.
Other companies branching out from their traditional core businesses for the first time this year include electrical and mechanical engineering firm Tee International.
However, new developers and developers looking at boutique projects still account for only a small chunk of total purchases in 2007.
CBRE's data shows that the bulk of sites sold this year went to big players such as companies linked to banker Wee Cho Yaw (UOL Group, Kheng Leong, United Industrial Corp and Singapore Land), Malaysian tycoon Quek Leng Chan's GuocoLand and property giant CapitaLand.
New and boutique developers together bought some $2.4 billion worth of land sites in 2007, which account for about 5 per cent of total investment sales so far this year.
In 2006, such developers accounted for about 4 per cent of all investment sales, while in 2005, the figure was about 3 per cent.
However, property analysts warned that these new entrants are by no means guaranteed success. For starters, most bought sites in the more central areas of Singapore, where the price gain is expected to moderate this year even as construction costs are set to keep climbing, leading to a drop in margins.
'For the high-end residential segment, there is now risk of a potential correction,' said OCBC Investment Research analyst Winston Liew.
New developers might not have the resources to keep construction costs down unless they are contractors themselves, experts said.
Next year, established developers who have carved out niches are likely to do best, analysts said.
'Going into 2008, we look for developers with specific niches and themes to outperform the sector as a whole,' said CIMB property analyst Donald Chua. The research firm believed that listed smaller-cap developers are likely to trade at a discount to target valuations in 2008.
OCBC's Mr Liew advocated being defensive when choosing property developer stocks. 'We prefer developers that are domestic focused with substantial pre-sold projects, opportunities to unlock value from investment properties and finally offering valuation upside,' he said.
Six companies, some better known in other businesses, make maiden real estate buys
The property boom over the past two years has drawn many new players who are looking to reap the high returns that property development has to offer.
Six companies made their maiden property purchases this year, data compiled by property firm CB Richard Ellis (CBRE) show. Among them are companies that have made a name for themselves in other businesses, such as construction company KSH Holdings and brokerage firm Kim Eng Holdings. Others are lesser known, like Duchess Development which was formed by two stockbrokers.In addition, three other companies - BBR Holdings, Popular Holdings and Eastern Holdings - first made their appearance in 2006 with land purchases. This year, they have gone on to snap up more sites.
'When the market is good, it draws in players who may not have been active before,' said CBRE executive director Jeremy Lake.
He noted that many of the new entrants are construction companies that might have decided to take on development risks, after watching their developer clients reap big profits. During a property boom, such risks are lessened.
'If you get your timing right in property, the profits can be substantial,' Mr Lake said.
Experts said that the same trend was seen during the last property boom, which lasted from 1993 to 1996.
Companies that did not look at property development in the past are now beginning to do so because of the fatter margins.
One example is SuperBowl, which teamed up with its parent company Hiap Hoe to buy two sites for a total of $211.3 million.
SuperBowl's managing director Teo Ho Beng told BT that while the company will continue to focus on its core leisure and entertainment business, it will also increase its exposure to property development where the margins are better.
Similarly, KSH Holdings sees good opportunities in property development. The company's chairman and managing director Choo Chee Onn said that his company invested in residential sites this year because the opportunities opened up at the right time.
'Going forward, we will buy more sites if the right opportunities arise,' Mr Choo said in an interview. The company spent $180.8 million on two residential sites this year.
The first site, which KSH acquired in June with three other partners, was the construction company's first purchase of a land parcel.
Other companies branching out from their traditional core businesses for the first time this year include electrical and mechanical engineering firm Tee International.
However, new developers and developers looking at boutique projects still account for only a small chunk of total purchases in 2007.
CBRE's data shows that the bulk of sites sold this year went to big players such as companies linked to banker Wee Cho Yaw (UOL Group, Kheng Leong, United Industrial Corp and Singapore Land), Malaysian tycoon Quek Leng Chan's GuocoLand and property giant CapitaLand.
New and boutique developers together bought some $2.4 billion worth of land sites in 2007, which account for about 5 per cent of total investment sales so far this year.
In 2006, such developers accounted for about 4 per cent of all investment sales, while in 2005, the figure was about 3 per cent.
However, property analysts warned that these new entrants are by no means guaranteed success. For starters, most bought sites in the more central areas of Singapore, where the price gain is expected to moderate this year even as construction costs are set to keep climbing, leading to a drop in margins.
'For the high-end residential segment, there is now risk of a potential correction,' said OCBC Investment Research analyst Winston Liew.
New developers might not have the resources to keep construction costs down unless they are contractors themselves, experts said.
Next year, established developers who have carved out niches are likely to do best, analysts said.
'Going into 2008, we look for developers with specific niches and themes to outperform the sector as a whole,' said CIMB property analyst Donald Chua. The research firm believed that listed smaller-cap developers are likely to trade at a discount to target valuations in 2008.
OCBC's Mr Liew advocated being defensive when choosing property developer stocks. 'We prefer developers that are domestic focused with substantial pre-sold projects, opportunities to unlock value from investment properties and finally offering valuation upside,' he said.
Orchard Rd Office Unit Fetches $2,497 psf
Source : The Business Times, December 24, 2007
Previous deal in same building on higher floor done at $1,601 psf in April
The strata office market is still running hot. A first-storey freehold office unit at United House, behind Le Meridien Singapore Hotel in Orchard Road, went for $2,497 per square foot of strata area at a Colliers International auction last week.
The last transacted price in the development was $1,601 psf for a 710 sq ft unit on the fifth level in April this year.
However, the highest unit price for a strata office unit here appears to be $3,050 psf, at The Central, a 99-year leasehold development above Clarke Quay MRT Station. Developer Far East Organization is said to have sold the entire 21st level of one wing of its V-shape, 25-storey office tower for $40.7 million several months ago.
The space comprises units #21-89 to #21-99, adding up to a total strata area of 13,337 sq ft. BT understands the buyer is a shipping company.
The $3,050 psf surpassed the previous record, set in the same building, when Far East sold the entire 24th level in the same wing for $2,850 psf, also this year.
While The Central's mall has already opened, its office tower, and small office, home office (Soho) block are expected to be ready in the first half of next year.
In the Orchard Road area, unit #01-01 of United House was auctioned by Colliers on Dec 19 for $7.5 million. The road-fronting unit - with a strata area of 3,003 sq ft - is subdivided into two smaller units that have been leased out at a total monthly rent of $13,260, with the last lease expiring in October 2008.
This presents an opportunity for the property's new owner - understood to be a low-profile Singapore investment company - to enjoy a higher yield when the lease is renewed or a new tenant found.
Grace Ng, Colliers deputy managing director (agency and business services) and auctioneer, attributes the unit's appeal not just to current demand for offices but to United House's potential for a collective sale.
The strata office market in other parts of Singapore also continues to buzz. At Suntec City, units on the 23rd and 27th floors have changed hands at prices ranging from $2,250 psf to $2,313 psf lately, according to caveats captured by SISV Services' Realink system.
At International Plaza in Anson Road - another favourite for strata office investors - a unit on the 30th floor was sold for $1,586 psf in October.
Nearby, at Shenton House, a couple of adjoining units on the 15th storey changed hands last month at about $1,500 psf. A 10th floor unit at High Street Plaza was sold for $1,714 psf a few weeks ago.
Previous deal in same building on higher floor done at $1,601 psf in April
The strata office market is still running hot. A first-storey freehold office unit at United House, behind Le Meridien Singapore Hotel in Orchard Road, went for $2,497 per square foot of strata area at a Colliers International auction last week.
The last transacted price in the development was $1,601 psf for a 710 sq ft unit on the fifth level in April this year.
However, the highest unit price for a strata office unit here appears to be $3,050 psf, at The Central, a 99-year leasehold development above Clarke Quay MRT Station. Developer Far East Organization is said to have sold the entire 21st level of one wing of its V-shape, 25-storey office tower for $40.7 million several months ago.
The space comprises units #21-89 to #21-99, adding up to a total strata area of 13,337 sq ft. BT understands the buyer is a shipping company.
The $3,050 psf surpassed the previous record, set in the same building, when Far East sold the entire 24th level in the same wing for $2,850 psf, also this year.
While The Central's mall has already opened, its office tower, and small office, home office (Soho) block are expected to be ready in the first half of next year.
In the Orchard Road area, unit #01-01 of United House was auctioned by Colliers on Dec 19 for $7.5 million. The road-fronting unit - with a strata area of 3,003 sq ft - is subdivided into two smaller units that have been leased out at a total monthly rent of $13,260, with the last lease expiring in October 2008.
This presents an opportunity for the property's new owner - understood to be a low-profile Singapore investment company - to enjoy a higher yield when the lease is renewed or a new tenant found.
Grace Ng, Colliers deputy managing director (agency and business services) and auctioneer, attributes the unit's appeal not just to current demand for offices but to United House's potential for a collective sale.
The strata office market in other parts of Singapore also continues to buzz. At Suntec City, units on the 23rd and 27th floors have changed hands at prices ranging from $2,250 psf to $2,313 psf lately, according to caveats captured by SISV Services' Realink system.
At International Plaza in Anson Road - another favourite for strata office investors - a unit on the 30th floor was sold for $1,586 psf in October.
Nearby, at Shenton House, a couple of adjoining units on the 15th storey changed hands last month at about $1,500 psf. A 10th floor unit at High Street Plaza was sold for $1,714 psf a few weeks ago.
S'pore Builders Seen Lagging Asian Peers
Source : The Business Times, December 20, 2007
Policy risks, fallout from sub-prime crisis may hurt property developers in 2008
Singapore's property companies may lag behind Asian real estate developers for a second straight year in 2008 as government limits on speculation cool the housing market.
CapitaLand Ltd, South-east Asia's largest developer, is suffering its biggest quarterly decline in more than six years after the government raised development charges by as much as 58 per cent. The Singapore Property Equities Index has dropped 19 per cent so far this quarter, the most since a 35 per cent plunge in the third quarter of 2001.
International buyers, who accounted for more than 40 per cent of real estate purchases in 2006, bought 38 per cent fewer properties last quarter as capital-market gridlock caused by rising US sub-prime mortgage defaults curbed borrowing worldwide. The supply of new homes for sale next year may almost double by value compared with 2006, weighing on prices, according to CLSA Ltd.
'We can find better propositions elsewhere in the region, where there's more growth and value to be found,' said Leslie Phang, who helps manage US$1 billion at Commonwealth Private Bank in the city. He does not own local builders and prefers Hong Kong developer Sun Hung Kai Properties Ltd.
The decline in Singapore's property gauge compares with a 10 per cent drop in the Bloomberg Asia Pacific Real Estate Index, which tracks 164 companies. The Bloomberg World Real Estate Index has slipped 8.9 per cent this quarter. Singapore's property index climbed 1.3 per cent yesterday, the biggest rise since Nov 29.
Singapore's home price index increased 8.3 per cent in the three months ended September from the second quarter. That matched the June quarter's pace, the first time the growth rate failed to rise since mid-2005.
Demand for apartments grew this year as banks hired more expatriates. New York-based Morgan Stanley, the No 2 securities firm by market value, said in February that it would open a local prime brokerage office servicing hedge funds. Citigroup Inc, the biggest US bank by assets, followed with its own prime brokerage office in March.
About 19,200 jobs were created in financial services through September this year, government data showed. Foreigners accounted for about 43 per cent of total purchases in 2006, up from 14 per cent in 2005, according to CLSA, the Asian investment-banking arm of Paris-based Credit Agricole SA. Singapore home prices rose 13 per cent last year, beating all other Asian markets, according to Global Property Guide, a Manila-based researcher.
The number of foreign purchases fell 38 per cent to 2,073 last quarter, from a record high of 3,332 in the three months ended June 30, according to DTZ Singapore, the local unit of DTZ Holdings plc, a London real-estate brokerage.
The government scrapped a program on Oct 26 that allowed buyers of planned apartments to pay 10 per cent of the asking price and defer the remainder until completion. Builders face higher fees on new developments after the government raised charges by 58 per cent for apartment projects and by 42 per cent for commercial properties, starting Sept 1.
'There are still a lot of policy risks in this segment,' said Daphne Roth, vice-president of equity research at ABN Amro Private Banking in Singapore. 'The government doesn't want home prices to go up too much, too quickly and the policy changes introduced so far have already impacted the market.' CapitaLand has slumped 25 per cent in Singapore stock exchange trading during the fourth quarter, set for its biggest quarterly drop since a 47 per cent plunge in the three months ended September 2001. It has lost 29 per cent after reaching a record high on Apr 26, even though third-quarter profit more than doubled from a year earlier.
City Developments Ltd, controlled by billionaire Kwek Leng Beng, declined 18 per cent since the start of this quarter and plunged 23 per cent from its all-time high on June 19.
The selloff has left local property shares cheaper than their regional peers. The Singapore Property Index is valued at 11 times earnings, less than a third of its high of 38 times in March 2006. The Bloomberg measure of Asian real-estate stocks is valued at 19 times, while the global index is at 17 times.
Thue Isen, who helps oversee US$1 billion at Bankinvest Group in Singapore, including shares of CapitaLand and City Developments, said that the decline is a chance to buy local developers, which he finds more attractive than those in Hong Kong and China.
'People's expectations for the property market here have definitely dampened, which justifies some of those declines,' he said. 'If you look at economic and income growth and new offices starting up, the fundamentals haven't changed that much, so the pullback looks a bit excessive.'
CIMB-GK Research, based in Singapore, cut its price forecasts in a Dec 10 note. Properties costing at least S$1,200 a square foot may climb 8 per cent in 2008, compared with an earlier forecast of 15 per cent. Overall home prices will rise 15 per cent from a previous estimate of a 25 per cent increase, said Donald Chua, a Singapore-based analyst.
The brokerage, a unit of CIMB Bank Bhd, Malaysia's largest investment bank, also cut its rating on the industry to 'underweight' from 'overweight', citing slowing growth. The firm lowered its recommendation on CapitaLand to 'neutral' from 'outperform'.
CLSA forecasts that as many as 12,000 new homes under construction could be up for sale in the next year to 18 months in the most expensive residential districts, driving up supply and hurting prices. The 'unprecedented' inventory is worth S$21 billion, almost twice the S$11 billion invested in real estate in 2006, according to Yew Kiang Wong, a CLSA analyst in Singapore.
'There's just too much negative news out there right now, with the government regulations and concerns over sub-prime,' said Nicole Sze, Singapore-based investment analyst at Bank Julius Baer, which manages US$350 billion. 'We're unlikely to see the same kind of broad-based rally that we've had.' - Bloomberg
Policy risks, fallout from sub-prime crisis may hurt property developers in 2008
Singapore's property companies may lag behind Asian real estate developers for a second straight year in 2008 as government limits on speculation cool the housing market.
CapitaLand Ltd, South-east Asia's largest developer, is suffering its biggest quarterly decline in more than six years after the government raised development charges by as much as 58 per cent. The Singapore Property Equities Index has dropped 19 per cent so far this quarter, the most since a 35 per cent plunge in the third quarter of 2001.
International buyers, who accounted for more than 40 per cent of real estate purchases in 2006, bought 38 per cent fewer properties last quarter as capital-market gridlock caused by rising US sub-prime mortgage defaults curbed borrowing worldwide. The supply of new homes for sale next year may almost double by value compared with 2006, weighing on prices, according to CLSA Ltd.
'We can find better propositions elsewhere in the region, where there's more growth and value to be found,' said Leslie Phang, who helps manage US$1 billion at Commonwealth Private Bank in the city. He does not own local builders and prefers Hong Kong developer Sun Hung Kai Properties Ltd.
The decline in Singapore's property gauge compares with a 10 per cent drop in the Bloomberg Asia Pacific Real Estate Index, which tracks 164 companies. The Bloomberg World Real Estate Index has slipped 8.9 per cent this quarter. Singapore's property index climbed 1.3 per cent yesterday, the biggest rise since Nov 29.
Singapore's home price index increased 8.3 per cent in the three months ended September from the second quarter. That matched the June quarter's pace, the first time the growth rate failed to rise since mid-2005.
Demand for apartments grew this year as banks hired more expatriates. New York-based Morgan Stanley, the No 2 securities firm by market value, said in February that it would open a local prime brokerage office servicing hedge funds. Citigroup Inc, the biggest US bank by assets, followed with its own prime brokerage office in March.
About 19,200 jobs were created in financial services through September this year, government data showed. Foreigners accounted for about 43 per cent of total purchases in 2006, up from 14 per cent in 2005, according to CLSA, the Asian investment-banking arm of Paris-based Credit Agricole SA. Singapore home prices rose 13 per cent last year, beating all other Asian markets, according to Global Property Guide, a Manila-based researcher.
The number of foreign purchases fell 38 per cent to 2,073 last quarter, from a record high of 3,332 in the three months ended June 30, according to DTZ Singapore, the local unit of DTZ Holdings plc, a London real-estate brokerage.
The government scrapped a program on Oct 26 that allowed buyers of planned apartments to pay 10 per cent of the asking price and defer the remainder until completion. Builders face higher fees on new developments after the government raised charges by 58 per cent for apartment projects and by 42 per cent for commercial properties, starting Sept 1.
'There are still a lot of policy risks in this segment,' said Daphne Roth, vice-president of equity research at ABN Amro Private Banking in Singapore. 'The government doesn't want home prices to go up too much, too quickly and the policy changes introduced so far have already impacted the market.' CapitaLand has slumped 25 per cent in Singapore stock exchange trading during the fourth quarter, set for its biggest quarterly drop since a 47 per cent plunge in the three months ended September 2001. It has lost 29 per cent after reaching a record high on Apr 26, even though third-quarter profit more than doubled from a year earlier.
City Developments Ltd, controlled by billionaire Kwek Leng Beng, declined 18 per cent since the start of this quarter and plunged 23 per cent from its all-time high on June 19.
The selloff has left local property shares cheaper than their regional peers. The Singapore Property Index is valued at 11 times earnings, less than a third of its high of 38 times in March 2006. The Bloomberg measure of Asian real-estate stocks is valued at 19 times, while the global index is at 17 times.
Thue Isen, who helps oversee US$1 billion at Bankinvest Group in Singapore, including shares of CapitaLand and City Developments, said that the decline is a chance to buy local developers, which he finds more attractive than those in Hong Kong and China.
'People's expectations for the property market here have definitely dampened, which justifies some of those declines,' he said. 'If you look at economic and income growth and new offices starting up, the fundamentals haven't changed that much, so the pullback looks a bit excessive.'
CIMB-GK Research, based in Singapore, cut its price forecasts in a Dec 10 note. Properties costing at least S$1,200 a square foot may climb 8 per cent in 2008, compared with an earlier forecast of 15 per cent. Overall home prices will rise 15 per cent from a previous estimate of a 25 per cent increase, said Donald Chua, a Singapore-based analyst.
The brokerage, a unit of CIMB Bank Bhd, Malaysia's largest investment bank, also cut its rating on the industry to 'underweight' from 'overweight', citing slowing growth. The firm lowered its recommendation on CapitaLand to 'neutral' from 'outperform'.
CLSA forecasts that as many as 12,000 new homes under construction could be up for sale in the next year to 18 months in the most expensive residential districts, driving up supply and hurting prices. The 'unprecedented' inventory is worth S$21 billion, almost twice the S$11 billion invested in real estate in 2006, according to Yew Kiang Wong, a CLSA analyst in Singapore.
'There's just too much negative news out there right now, with the government regulations and concerns over sub-prime,' said Nicole Sze, Singapore-based investment analyst at Bank Julius Baer, which manages US$350 billion. 'We're unlikely to see the same kind of broad-based rally that we've had.' - Bloomberg
Tenants Respond Well To HDB Flats Managed By Private Property Agent
Source : Channel NewsAsia, 23 December 2007
After winning the tender from the Housing and Development Board (HDB) in October, Global Real Estate renovated the block at Bukit Merah View and response has been good.
Tenants said they would gladly pay up to S$3,200 for a rented four-room flat at Bukit Merah View.
Related Video Link - http://tinyurl.com/27wqjx
Half of the tenants at the 35-year-old block are students, and the other half includes expatriates, locals and permanent residents.
Ninety-six units at the block now have wood floors and new furnishings. The newly-renovated block even has guards and security systems.
Although the property agent manages the block, common areas such as lift landings are still maintained by the town council.
Global Real Estate has a three year lease on the block.
The HDB had earlier also put up three- and five-room and executive flats for rental through private property agents in areas such as Jurong West, Sengkang, Boon Lay and Hougang.
After winning the tender from the Housing and Development Board (HDB) in October, Global Real Estate renovated the block at Bukit Merah View and response has been good.
Tenants said they would gladly pay up to S$3,200 for a rented four-room flat at Bukit Merah View. Related Video Link - http://tinyurl.com/27wqjx
Half of the tenants at the 35-year-old block are students, and the other half includes expatriates, locals and permanent residents.
Ninety-six units at the block now have wood floors and new furnishings. The newly-renovated block even has guards and security systems.
Although the property agent manages the block, common areas such as lift landings are still maintained by the town council.
Global Real Estate has a three year lease on the block.
The HDB had earlier also put up three- and five-room and executive flats for rental through private property agents in areas such as Jurong West, Sengkang, Boon Lay and Hougang.
Splitting An HDB Flat When There Is No Will
Source : The Sunday Times , Dec 23, 2007
Q MY PARENTS died without a will stating which of their three children would be the sole owner of their HDB flat.
Two of us are married with an HDB flat each. Our brother is the only one without a flat.
As both of us have our own HDB flats, technically, neither of us are allowed to act as the administrator of my parents’ estate as we cannot own two HDB flats.
My brother is the only one eligible to become the administrator.
1. Can the administrator hold the HDB flat as long as we want? We want to keep the flat so my brother will have a place to live.
2. Can the administrator rent out the whole flat or some rooms? And when can that be done?
3. If the flat cannot be held, what are our options? Can we sell the flat, buy each other’s shares or give up our shares?
4. We do not really want to give up our shares in the flat as we think that once our brother owns it, he can sell it.
Are there any clauses that we can insert in any legal agreement that would allow us to retain our shares if he sells the flat?
A CONTRARY to your assumptions, a person who already owns an HDB flat can still act as the administrator of an estate that consists of HDB property.
The administrator is obliged, without delay, to distribute the assets to the deceased’s spouse and children or, if he has none, to other family members.
Any transfer of ownership of the flat would be in the name of the court-appointed administrator, the person authorised to make such transfers.
In your case, where there is an HDB flat, the administrator would have to resolve the distribution of the entitlement to the flat to the three beneficiaries within six years of the date of death.
Any transfer by the administrator after six years would require court approval.
The administrator may rent out the flat to earn income for the estate, subject to prevailing HDB requirements and depending on how the distribution process is going.
While the share of entitlement to the estate where there is no will is determined by law, the beneficiaries may - if they are over 21 years old and can give valid consent - arrange a scheme of distribution that would allow one or more of them to retain ownership of the flat.
Such an arrangement would be subject to HDB regulations governing the eligibility of the parties involved for ownership.
Depending on the agreement between the beneficiaries, those who are not eligible to own or who do not wish to own the flat may realise their shares based on the value of the flat or by taking a share of the sale proceeds.
Mabel LimPartnerHarry Elias Partnership
Advice provided in this column is not meant as a substitute for comprehensive professional advice. E-mail questions to lorna@sph.com.sg
Fixed deadline
In a case where there is an HDB flat, the administrator would have to resolve the distribution of the entitlement to the flat to the three beneficiaries within six years of the date of death.
Q MY PARENTS died without a will stating which of their three children would be the sole owner of their HDB flat.
Two of us are married with an HDB flat each. Our brother is the only one without a flat.
As both of us have our own HDB flats, technically, neither of us are allowed to act as the administrator of my parents’ estate as we cannot own two HDB flats.
My brother is the only one eligible to become the administrator.
1. Can the administrator hold the HDB flat as long as we want? We want to keep the flat so my brother will have a place to live.
2. Can the administrator rent out the whole flat or some rooms? And when can that be done?
3. If the flat cannot be held, what are our options? Can we sell the flat, buy each other’s shares or give up our shares?
4. We do not really want to give up our shares in the flat as we think that once our brother owns it, he can sell it.
Are there any clauses that we can insert in any legal agreement that would allow us to retain our shares if he sells the flat?
A CONTRARY to your assumptions, a person who already owns an HDB flat can still act as the administrator of an estate that consists of HDB property.
The administrator is obliged, without delay, to distribute the assets to the deceased’s spouse and children or, if he has none, to other family members.
Any transfer of ownership of the flat would be in the name of the court-appointed administrator, the person authorised to make such transfers.
In your case, where there is an HDB flat, the administrator would have to resolve the distribution of the entitlement to the flat to the three beneficiaries within six years of the date of death.
Any transfer by the administrator after six years would require court approval.
The administrator may rent out the flat to earn income for the estate, subject to prevailing HDB requirements and depending on how the distribution process is going.
While the share of entitlement to the estate where there is no will is determined by law, the beneficiaries may - if they are over 21 years old and can give valid consent - arrange a scheme of distribution that would allow one or more of them to retain ownership of the flat.
Such an arrangement would be subject to HDB regulations governing the eligibility of the parties involved for ownership.
Depending on the agreement between the beneficiaries, those who are not eligible to own or who do not wish to own the flat may realise their shares based on the value of the flat or by taking a share of the sale proceeds.
Mabel LimPartnerHarry Elias Partnership
Advice provided in this column is not meant as a substitute for comprehensive professional advice. E-mail questions to lorna@sph.com.sg
Fixed deadline
In a case where there is an HDB flat, the administrator would have to resolve the distribution of the entitlement to the flat to the three beneficiaries within six years of the date of death.
Interest In Outlying HDB Towns Picking Up
Source : The Sunday Times, Dec 23, 2007
Estates like Sengkang and Punggol gaining popularity as central resale flats' prices rise
THE surging prices of resale Housing Board flats in central districts are sending keen buyers to once-shunned outlying towns.
BESIDES THE LOWER PRICES, home buyers are also attracted by the relatively newer flats in Sengkang (above) and Punggol. They were built from the late 1990s and come with snazzier designs than flats in mature estates, which can be 20 to 40 years old. -- ST FILE PHOTO
Estates like Sengkang and Punggol - no-go zones for many buyers a few years ago - have become more popular with people hoping to get a bigger bang for their buck.
The executive director of HSR Property Group, Mr Eric Cheng, estimates that demand for resale flats in Sengkang and Punggol has risen by 20 per cent to 30 per cent in the past year.
Dennis Wee Properties associate director Evan Tay, who specialises in Sengkang homes, noted that enquiries for flats there have risen by 20 per cent.
The reasons for this increase are manifold but all the property experts contacted by The Sunday Times highlighted one major factor: the rising amount in cash-over-valuation (COV) that owners of flats in central areas are demanding.
A five-room flat in Queenstown fetched a median COV amount of $110,000 in the July to September period, more than double the amount commanded in the quarter before that.
On the other hand, five-room flats in Sengkang and Punggol were going for a less heart-stopping median COV of $18,000 in the third quarter.
This COV component - the amount that is forked out over and above the valuation of a flat and cannot be paid with a home loan - tends to make or break a deal because most HDB flat buyers rely on loans to finance their purchase.
The chief executive of property agency Propnex, Mr Mohamed Ismail, said: 'In central areas like Toa Payoh, Bishan and Ang Mo Kio, if you do not have $50,000 in cash, you are outpriced.'
Home seekers like Mr David Tan, 44, are heading to the north-east after being turned off by prices in central areas.
The construction material trader spent a couple of weeks earlier this year surveying three-room flats in Rochor, which were going for between $50,000 and $60,000 over valuation.
'I wish I could (buy a flat in the central area). But the price is too high,' said Mr Tan, who eventually settled for a five- room flat in Sengkang for $320,000.
Meanwhile, 51-year-old project manager Yuen Pheng Yin, who moved from the mature estate of Toa Payoh to Sengkang three years ago, decided to stay within the newer town when he opted for a smaller flat last month to reduce his expenses.
'Singapore is too small, no area is too far away. I think I am getting more value for money by staying in outlying areas,' he said.
What also helps is that Sengkang and Punggol flats are relatively newer. They were built from the late 1990s and come with snazzier designs than flats in mature estates, which can be 20 to 40 years old.
Buyers priced out of more mature waterfront districts like Marine Parade can also take heart that some precincts within Sengkang also provide good views of the picturesque Sungei Serangoon nearby.
Earlier this month, an HDB balloting exercise for 316 flats in Hougang, Sengkang and Punggol attracted an overwhelming 5,147 applications. This is a far cry from the situation just about five years ago, when flats in these far-flung districts were given the cold shoulder as they were deemed to be too far from the action.
Still, HSR's Mr Cheng warned buyers against rushing into purchases in these new towns and overpaying for properties.
The HDB will offer more than 7,000 new flats - expected to be mainly in that region - over the next few months, so home owners looking to sell their flats will see more competition from new units coming onstream.
Key factor
A five-room HDB flat in Queenstown fetched a median cash-over-valuation amount of $110,000 in the July to September period. In contrast, five-room HDB flats in Sengkang and Punggol were going for a much lower median cash-over-valuation of $18,000.
Estates like Sengkang and Punggol gaining popularity as central resale flats' prices rise
THE surging prices of resale Housing Board flats in central districts are sending keen buyers to once-shunned outlying towns.
BESIDES THE LOWER PRICES, home buyers are also attracted by the relatively newer flats in Sengkang (above) and Punggol. They were built from the late 1990s and come with snazzier designs than flats in mature estates, which can be 20 to 40 years old. -- ST FILE PHOTOEstates like Sengkang and Punggol - no-go zones for many buyers a few years ago - have become more popular with people hoping to get a bigger bang for their buck.
The executive director of HSR Property Group, Mr Eric Cheng, estimates that demand for resale flats in Sengkang and Punggol has risen by 20 per cent to 30 per cent in the past year.
Dennis Wee Properties associate director Evan Tay, who specialises in Sengkang homes, noted that enquiries for flats there have risen by 20 per cent.
The reasons for this increase are manifold but all the property experts contacted by The Sunday Times highlighted one major factor: the rising amount in cash-over-valuation (COV) that owners of flats in central areas are demanding.
A five-room flat in Queenstown fetched a median COV amount of $110,000 in the July to September period, more than double the amount commanded in the quarter before that.
On the other hand, five-room flats in Sengkang and Punggol were going for a less heart-stopping median COV of $18,000 in the third quarter.
This COV component - the amount that is forked out over and above the valuation of a flat and cannot be paid with a home loan - tends to make or break a deal because most HDB flat buyers rely on loans to finance their purchase.
The chief executive of property agency Propnex, Mr Mohamed Ismail, said: 'In central areas like Toa Payoh, Bishan and Ang Mo Kio, if you do not have $50,000 in cash, you are outpriced.'
Home seekers like Mr David Tan, 44, are heading to the north-east after being turned off by prices in central areas.
The construction material trader spent a couple of weeks earlier this year surveying three-room flats in Rochor, which were going for between $50,000 and $60,000 over valuation.
'I wish I could (buy a flat in the central area). But the price is too high,' said Mr Tan, who eventually settled for a five- room flat in Sengkang for $320,000.
Meanwhile, 51-year-old project manager Yuen Pheng Yin, who moved from the mature estate of Toa Payoh to Sengkang three years ago, decided to stay within the newer town when he opted for a smaller flat last month to reduce his expenses.
'Singapore is too small, no area is too far away. I think I am getting more value for money by staying in outlying areas,' he said.
What also helps is that Sengkang and Punggol flats are relatively newer. They were built from the late 1990s and come with snazzier designs than flats in mature estates, which can be 20 to 40 years old.
Buyers priced out of more mature waterfront districts like Marine Parade can also take heart that some precincts within Sengkang also provide good views of the picturesque Sungei Serangoon nearby.
Earlier this month, an HDB balloting exercise for 316 flats in Hougang, Sengkang and Punggol attracted an overwhelming 5,147 applications. This is a far cry from the situation just about five years ago, when flats in these far-flung districts were given the cold shoulder as they were deemed to be too far from the action.
Still, HSR's Mr Cheng warned buyers against rushing into purchases in these new towns and overpaying for properties.
The HDB will offer more than 7,000 new flats - expected to be mainly in that region - over the next few months, so home owners looking to sell their flats will see more competition from new units coming onstream.
Key factor
A five-room HDB flat in Queenstown fetched a median cash-over-valuation amount of $110,000 in the July to September period. In contrast, five-room HDB flats in Sengkang and Punggol were going for a much lower median cash-over-valuation of $18,000.