Source : TODAY, Tuesday, January 15, 2008
Letter from TAN SHAU JIE
BUYING a flat is indeed an eye-opening experience.
As Singapore permanent residents, my sister and I decided to buy an HDB flat.
We exercised the Option to Purchase and paid a deposit of $2,000 to the seller.
After the application was submitted to the HDB, I received a cancellation of appointment letter, stating that the seller had backed out. It happened to us twice within six months.
Although the sellers returned the deposit (after numerous lawyer’s letters), we had to fork out the bank cancellation charges amounting to $5,500 due to the two failed transactions and other miscellaneous fees.
We can only recover the amount from the sellers by suing them, which would cost $4,000 or more each in lawyers’ fees.
On both occasions, the sellers refused to refund our deposits.
According to the HDB website, if a seller refuses to refund the deposit, the buyer can take legal action or settle the dispute through mediation.
The fee for engaging a lawyer is higher than the deposit claimed.
Furthermore, we had to bear the bank loan cancellation charges amounting to over $5,000, even though it was never our intention to cancel the purchase.
Buyers, it seems, are in a no-win situation. We did not get our flat and ended up paying various charges.
Can a third party keep the deposit until the transaction is completed to protect the interests of both parties?
Tuesday, January 15, 2008
Bank Valuation Only Half Of Market Rate
Source : The Straits Times, Jan 15, 2008
I AM currently selling my freehold semi-detached property, which is in brand new and move-in condition. Based on the transacted rate of $720 per square foot (psf) in October last year for another house in the vicinity, and the conservative indicative price from DBS at $2.3 million (which works out to slightly above $580 psf), I asked for $2.4m for my property.
One buyer was keen to buy the house after viewing it, and checked with his bank, Citibank, for valuation. After getting Citibank's valuation at $1.4 million, a staggering difference from my asking price, the buyer backed out.
When I called Citibank in disbelief, the female officer gave me an indicative price at $1.6 million after checking with the bank's 'only approved valuation agency, Knight Frank'.
I called back shortly after and asked to talk to someone at a higher level. An AVP named Adeline Wee called me back.
First, she asked me if I was a Citibank customer. Once she found out I was not, she told me in an unfriendly manner that her officer had given the correct indicative price based on 'a few valuation agencies'. This differed from what the earlier officer had told me - that Knight Frank is Citibank's only approved valuation agency. I pressed Ms Wee for the names of the other agencies, and she named DTZ. She then reminded me that since I am not a Citibank customer, I have no right to question the accuracy of its indicative price. Does she not realise my buyer and I are potential customers? Also, whether I am a customer or not should not change the fact that Citibank should be diligent and professional enough to seek valuations from more than one agency, a practice I believe other banks follow. Such an inaccurate property valuation directly impacts property sellers like me.
I then called Knight Frank to check further. A director of valuation, Ms Lydia Sng, called me back after checking for a few hours. She insisted that its valuation was correct and based on the 'latest and only caveat' for a property near mine. I then told her that based on the Urban Redevelopment Authority's (URA) publicly available caveat records, there are three comparable houses nearby which were sold recently at $720 psf (October last year), $620 psf and $605 psf (July last year). She was surprised and did not seem aware that such records are available, which is astonishing considering she is in the property industry and I am not.
When I searched URA's caveat records for details of the caveat she had based the valuation on, I was shocked to find it had been lodged way back in June last year, before prices of suburban housing started moving up. This is serious as the resulting difference in price valuation is a million dollars, or roughly half the current market rate. Does Knight Frank base all its valuations on outdated transacted prices? If so, aren't the resulting property valuations a poor reflection of true market trends?
Does any authority or professional organisation evaluate valuation practices in the market?
Wong Meow Yin (Ms)
I AM currently selling my freehold semi-detached property, which is in brand new and move-in condition. Based on the transacted rate of $720 per square foot (psf) in October last year for another house in the vicinity, and the conservative indicative price from DBS at $2.3 million (which works out to slightly above $580 psf), I asked for $2.4m for my property.
One buyer was keen to buy the house after viewing it, and checked with his bank, Citibank, for valuation. After getting Citibank's valuation at $1.4 million, a staggering difference from my asking price, the buyer backed out.
When I called Citibank in disbelief, the female officer gave me an indicative price at $1.6 million after checking with the bank's 'only approved valuation agency, Knight Frank'.
I called back shortly after and asked to talk to someone at a higher level. An AVP named Adeline Wee called me back.
First, she asked me if I was a Citibank customer. Once she found out I was not, she told me in an unfriendly manner that her officer had given the correct indicative price based on 'a few valuation agencies'. This differed from what the earlier officer had told me - that Knight Frank is Citibank's only approved valuation agency. I pressed Ms Wee for the names of the other agencies, and she named DTZ. She then reminded me that since I am not a Citibank customer, I have no right to question the accuracy of its indicative price. Does she not realise my buyer and I are potential customers? Also, whether I am a customer or not should not change the fact that Citibank should be diligent and professional enough to seek valuations from more than one agency, a practice I believe other banks follow. Such an inaccurate property valuation directly impacts property sellers like me.
I then called Knight Frank to check further. A director of valuation, Ms Lydia Sng, called me back after checking for a few hours. She insisted that its valuation was correct and based on the 'latest and only caveat' for a property near mine. I then told her that based on the Urban Redevelopment Authority's (URA) publicly available caveat records, there are three comparable houses nearby which were sold recently at $720 psf (October last year), $620 psf and $605 psf (July last year). She was surprised and did not seem aware that such records are available, which is astonishing considering she is in the property industry and I am not.
When I searched URA's caveat records for details of the caveat she had based the valuation on, I was shocked to find it had been lodged way back in June last year, before prices of suburban housing started moving up. This is serious as the resulting difference in price valuation is a million dollars, or roughly half the current market rate. Does Knight Frank base all its valuations on outdated transacted prices? If so, aren't the resulting property valuations a poor reflection of true market trends?
Does any authority or professional organisation evaluate valuation practices in the market?
Wong Meow Yin (Ms)
Inflation In S'pore May Hit 6.5% This Month
Source : The Straits Times, Jan 15, 2008
CONSUMER prices in Singapore may surge a staggering 6.5 per cent this month, bringing full- year average inflation to an equally eye-popping 5 per cent, according to Citigroup.
Higher housing and food costs are likely to cause a spike in price levels this month, while low interest rates may stimulate property prices later in the year, said the Citigroup economist Kit Wei Zheng yesterday.
Mr Kit said his higher estimate stems from 'pent-up price pressure from the strong growth of the past two years'.
Citigroup's new forecast comes days after United Overseas Bank predicted that inflation in Singapore would exceed 6 per cent this quarter.
Economists have been scrambling to keep their forecasts up with the relentlessly rising pace of inflation in recent months.
Inflation hit a 16-year high of 3.6 per cent last October before accelerating to 4.2 per cent in November, the fastest rate of price increase since 1982.
The Government has since raised its forecast, saying prices may jump as much as 5 per cent in the early part of this year, with full-year inflation coming in between 3.5 per cent and 4.5 per cent.
But those estimates may still be too conservative.
'We are upgrading our inflation forecast for this year to 5 per cent from 3.8 per cent previously,' said Mr Kit.
He expects inflation to stay around 5 per cent to 6 per cent in the first six months of the year before moderating to about
4 per cent in the rest of the year.
Accommodation costs will jump up this month, as HDB annual values have recently been revised for the first time since 2004.
Food prices may also spike, as wholesalers renegotiate prices held down by contracts that expire this month, said Mr Kit.
Other economists are sitting tight for now, preferring to wait for more actual figures before changing their predictions for Singapore's inflation rate.
A slowing world economy may put the brakes on oil prices and ease inflationary pressures, they said.
CONSUMER prices in Singapore may surge a staggering 6.5 per cent this month, bringing full- year average inflation to an equally eye-popping 5 per cent, according to Citigroup.
Higher housing and food costs are likely to cause a spike in price levels this month, while low interest rates may stimulate property prices later in the year, said the Citigroup economist Kit Wei Zheng yesterday.
Mr Kit said his higher estimate stems from 'pent-up price pressure from the strong growth of the past two years'.
Citigroup's new forecast comes days after United Overseas Bank predicted that inflation in Singapore would exceed 6 per cent this quarter.
Economists have been scrambling to keep their forecasts up with the relentlessly rising pace of inflation in recent months.
Inflation hit a 16-year high of 3.6 per cent last October before accelerating to 4.2 per cent in November, the fastest rate of price increase since 1982.
The Government has since raised its forecast, saying prices may jump as much as 5 per cent in the early part of this year, with full-year inflation coming in between 3.5 per cent and 4.5 per cent.
But those estimates may still be too conservative.
'We are upgrading our inflation forecast for this year to 5 per cent from 3.8 per cent previously,' said Mr Kit.
He expects inflation to stay around 5 per cent to 6 per cent in the first six months of the year before moderating to about
4 per cent in the rest of the year.
Accommodation costs will jump up this month, as HDB annual values have recently been revised for the first time since 2004.
Food prices may also spike, as wholesalers renegotiate prices held down by contracts that expire this month, said Mr Kit.
Other economists are sitting tight for now, preferring to wait for more actual figures before changing their predictions for Singapore's inflation rate.
A slowing world economy may put the brakes on oil prices and ease inflationary pressures, they said.
Citigroup Ups S'pore '08 Inflation Forecast To 5%
Source : The Straits Times, Jan 14, 2008
CITIGROUP has raised its 2008 inflation forecast for Singapore to a near three-decade high of 5 per cent from 3.8 per cent, and estimated that consumer prices in the city-state may climb 6 per cent in January.
Higher costs for housing, food, public transport and electricity tariffs will fuel the spike in inflation, Citigroup analyst Kit Wei Zheng said in a research note on Monday.
'The spike in inflation in recent months has been self-inflicted, as it reflects cost pressures that are largely within the government's control,' Kit said, citing the two percentage point sales tax increase in July as an example.
The latest sales tax hike had a big impact on consumer prices in the city-state because almost all of it was passed on to consumers due to strong demand, unlike previous increases in 2003 and 2004 when only between 30-70 per cent was passed on, Kit said.
Given that rent and home prices in the city-state's property market will probably rise further this year on tight supply, and that a recent sharp fall in short term interest rates may fuel domestic consumption, Kit said he expects the Singapore central bank to tighten monetary policy.
'The case for a further tightening of monetary policy has become clearer after the recent fall in short rates,' he said.
'Lower interest rates have further loosened monetary conditions and could exacerbate inflation pressures.'
Singapore conducts monetary policy by managing the value of the Singapore dollar against a basket of currencies.
A red-hot property market, as well as higher energy and commodity prices, pushed Singapore's annual inflation in November to a 25-year high of 4.2 per cent.
The Singapore government said in November that inflation may hit 5 per cent early this year, but expects consumer prices for the full year to be below 3 per cent. -- REUTERS
CITIGROUP has raised its 2008 inflation forecast for Singapore to a near three-decade high of 5 per cent from 3.8 per cent, and estimated that consumer prices in the city-state may climb 6 per cent in January.
Higher costs for housing, food, public transport and electricity tariffs will fuel the spike in inflation, Citigroup analyst Kit Wei Zheng said in a research note on Monday.'The spike in inflation in recent months has been self-inflicted, as it reflects cost pressures that are largely within the government's control,' Kit said, citing the two percentage point sales tax increase in July as an example.
The latest sales tax hike had a big impact on consumer prices in the city-state because almost all of it was passed on to consumers due to strong demand, unlike previous increases in 2003 and 2004 when only between 30-70 per cent was passed on, Kit said.
Given that rent and home prices in the city-state's property market will probably rise further this year on tight supply, and that a recent sharp fall in short term interest rates may fuel domestic consumption, Kit said he expects the Singapore central bank to tighten monetary policy.
'The case for a further tightening of monetary policy has become clearer after the recent fall in short rates,' he said.
'Lower interest rates have further loosened monetary conditions and could exacerbate inflation pressures.'
Singapore conducts monetary policy by managing the value of the Singapore dollar against a basket of currencies.
A red-hot property market, as well as higher energy and commodity prices, pushed Singapore's annual inflation in November to a 25-year high of 4.2 per cent.
The Singapore government said in November that inflation may hit 5 per cent early this year, but expects consumer prices for the full year to be below 3 per cent. -- REUTERS
Retail Space Turns Competitive
Source : The Business Times, January 15, 2008
Concerns over new supply, rising costs even though occupancy is high
DTZ Debenham Tie Leung has raised some concerns about the market for retail space turning competitive as more developments are completed in the next few years.
It said that while occupancy in the retail market remained high at 90 per cent, there were some concerns about the effect of rising costs and the surge in new retail developments since 2006, as more than three million square feet of retail space, about 7 per cent of existing stock, was completed in the past two years.
According to its report, a further 15 per cent of new space can be expected to be added to the existing stock of 28.5 million sq ft of retail space by 2010.
As such, DTZ expects the retail market to be increasingly competitive, with substantial retail space that will be completed in the next three years.
These include projects like ION Orchard (663,000 sq ft) and Orchard Central (270,000 sq ft) which will be completed in 2008 and will house a significant number of retailers new to the Singapore market.
The rate of increase for first-storey monthly fixed gross rents in the Orchard/Scotts Road area slowed marginally in 2007, registering a 6.6 per cent increase year-on-year (YOY) compared with a 7.4 per cent increase in 2006 YOY.
For Other City Areas (OCA), first-storey monthly fixed gross rents rose by 5.9 per cent in 2007 YOY, up from 5.4 per cent for 2006.
First-storey monthly fixed gross rents in Suburban Areas (SA), rose 5.7 per cent in 2007 YOY, up from 4 per cent for the same period in 2006.
DTZ executive director Ong Choon Fah said that she expected new malls to continue to set new benchmark rents this year, but added: 'Run-of-the mill malls could suffer.'
Noting that there has been 'more resistance from retailers' in terms of rental increases, Mrs Ong also highlighted that while there was limited growth in average monthly fixed gross rents, there was greater increase in turnover rents, or the component of the rent determined by the retailer's revenue.
And active management of malls, as demonstrated by some of the Reit-owned malls, remains a key factor in staying competitive.
Saying that 'not all malls work', Mrs Ong added that mall managers will have to work to 'tease out shoppers' dollars'.
On some of these new strategies, DTZ associate director for retail Anna Lee added: 'New niche retail space continues to energise the retail market as mall managers actively raise additional retail space through refurbishments, asset enhancement and redevelopment.'
Competition is also coming from abroad.
Mrs Ong said that there is anecdotal evidence that many Singaporeans have been travelling to Kuala Lumpur over the current festive season to shop. She also noted that as development costs are lower there, mall owners can afford larger malls that offer more innovative retail concepts. 'It is not uncommon for new malls to be one million sq ft in size and there are even two million sq ft malls.'
DTZ also noted that young shoppers especially are valuing individuality more than before and prefer to shop through less popular channels, such as virtual retail, for exotic brands.
So besides having to grapple with significant supply, the retail market will also have to respond to structural changes in retailing and emerging consumer preferences, DTZ said.
Concerns over new supply, rising costs even though occupancy is high
DTZ Debenham Tie Leung has raised some concerns about the market for retail space turning competitive as more developments are completed in the next few years.
It said that while occupancy in the retail market remained high at 90 per cent, there were some concerns about the effect of rising costs and the surge in new retail developments since 2006, as more than three million square feet of retail space, about 7 per cent of existing stock, was completed in the past two years.
According to its report, a further 15 per cent of new space can be expected to be added to the existing stock of 28.5 million sq ft of retail space by 2010.
As such, DTZ expects the retail market to be increasingly competitive, with substantial retail space that will be completed in the next three years.
These include projects like ION Orchard (663,000 sq ft) and Orchard Central (270,000 sq ft) which will be completed in 2008 and will house a significant number of retailers new to the Singapore market.
The rate of increase for first-storey monthly fixed gross rents in the Orchard/Scotts Road area slowed marginally in 2007, registering a 6.6 per cent increase year-on-year (YOY) compared with a 7.4 per cent increase in 2006 YOY.
For Other City Areas (OCA), first-storey monthly fixed gross rents rose by 5.9 per cent in 2007 YOY, up from 5.4 per cent for 2006.
First-storey monthly fixed gross rents in Suburban Areas (SA), rose 5.7 per cent in 2007 YOY, up from 4 per cent for the same period in 2006.
DTZ executive director Ong Choon Fah said that she expected new malls to continue to set new benchmark rents this year, but added: 'Run-of-the mill malls could suffer.'
Noting that there has been 'more resistance from retailers' in terms of rental increases, Mrs Ong also highlighted that while there was limited growth in average monthly fixed gross rents, there was greater increase in turnover rents, or the component of the rent determined by the retailer's revenue.
And active management of malls, as demonstrated by some of the Reit-owned malls, remains a key factor in staying competitive.
Saying that 'not all malls work', Mrs Ong added that mall managers will have to work to 'tease out shoppers' dollars'.
On some of these new strategies, DTZ associate director for retail Anna Lee added: 'New niche retail space continues to energise the retail market as mall managers actively raise additional retail space through refurbishments, asset enhancement and redevelopment.'
Competition is also coming from abroad.
Mrs Ong said that there is anecdotal evidence that many Singaporeans have been travelling to Kuala Lumpur over the current festive season to shop. She also noted that as development costs are lower there, mall owners can afford larger malls that offer more innovative retail concepts. 'It is not uncommon for new malls to be one million sq ft in size and there are even two million sq ft malls.'
DTZ also noted that young shoppers especially are valuing individuality more than before and prefer to shop through less popular channels, such as virtual retail, for exotic brands.
So besides having to grapple with significant supply, the retail market will also have to respond to structural changes in retailing and emerging consumer preferences, DTZ said.
China Economy May Cool Down At Worst Time
Source : The Straits Times, Jan 15, 2008
Combination of a US recession and a hard landing in China could cause global slowdown
PARIS - CHINA is starting to gain control of its turbocharged economy, just as a United States slowdown raises the risks of doing so.
A narrowing trade surplus and declining money-supply growth are among the first signs that the world's fourth-largest economy is pulling back from its fastest expansion in 13 years.
The government has raised interest rates six times in a year, restricted credit, frozen some prices and let China's currency appreciate to dampen growth and inflation.
The risk is that, with months of efforts to cool off China finally taking hold when the US is already flirting with a recession, both main engines driving the global economy may power down at the same time.
'As foreign demand deteriorates, China may overdo its tightening of policy and cause a sharp economic slowdown,' says Mr Frank Gong, Hong Kong-based chief China economist at JPMorgan Chase.
'If the central bank raises interest rates too much, it will dampen domestic demand and increase the danger of an economic downturn.'
China is still on a tear. Its economy expanded 11.5 per cent last year, according to a government estimate, and it contributed 17 per cent to global growth, the same as the US.
With prices rising at the fastest pace in 11 years, however, Beijing is trying to engineer a cooling of growth that does not also throw millions of China's 1.3 billion people out of work.
The tougher policies may be starting to pay off.
Last month's trade surplus shrank to US$22.7 billion (S$32.4 billion) from US$26.2 billion in November, and the broadest measure of money supply rose by the least in seven months - prompting Goldman Sachs yesterday to cut its growth forecast this year for China to 10 per cent from 10.3 per cent.
Goldman last week joined Morgan Stanley and Merrill Lynch in forecasting that the US would slip into a recession this year for the first time since 2001.
The two economies are closely linked. The US buys about 19 per cent of China's exports. A cooling US economy could magnify the impact of China's anti-inflation measures, says HSBC Holdings chief China economist Qu Hongbin.
'A US recession would cause a major disruption to the Chinese economy,' says Mr Qu. 'Aggressive tightening could prove to be an overkill.'
A 1-percentage-point slowdown in the US would trim China's export growth by 4 percentage points and reduce gross domestic product by 0.5 percentage point, according to Mr Ma Jun, chief China economist at Deutsche Bank in Hong Kong.
A simultaneous slowdown in the US and China would be 'bad news', says Dr Nariman Behravesh, chief economist at Global Insight.
China's trade with the rest of the world has been growing three times as fast as the global average since it joined the World Trade Organisation in 2001.
'A combination of US consumer spending and Chinese imports has pulled the world economy along,' says Dr Behravesh. 'The combination of a US recession and a hard landing in China could push the global economy into a recession.'
Still, if Chinese leaders want to whip inflation, they may have no option but to keep raising interest rates and constraining credit and hope that any US downturn is short-lived.
Chinese consumer prices accelerated by 6.9 per cent in November from a year earlier, while producer prices rose at the fastest in more than two years.
The dilemma, says HSBC's Mr Qu, is that China cannot afford to wait to discover the fate of the US economy. Policymakers need to make a bet on whether domestic inflation or falling overseas demand is the bigger risk, he says.- BLOOMBERG NEWS
GROWTH BOOSTERS
A simultaneous slowdown in the US and China would be bad news because a combination of US consumer spending and Chinese imports has pulled the world economy along, says Dr Nariman Behravesh of Global Insight.
FINE BALANCE
'As foreign demand deteriorates, China may overdo its tightening of policy and cause a sharp economic slowdown.'
MR FRANK GONG of JPMorgan Chase, who adds that if the central bank raises interest rates too much, it will dampen domestic demand and increase the danger of an economic downturn
Combination of a US recession and a hard landing in China could cause global slowdown
PARIS - CHINA is starting to gain control of its turbocharged economy, just as a United States slowdown raises the risks of doing so.
A narrowing trade surplus and declining money-supply growth are among the first signs that the world's fourth-largest economy is pulling back from its fastest expansion in 13 years.
The government has raised interest rates six times in a year, restricted credit, frozen some prices and let China's currency appreciate to dampen growth and inflation.
The risk is that, with months of efforts to cool off China finally taking hold when the US is already flirting with a recession, both main engines driving the global economy may power down at the same time.
'As foreign demand deteriorates, China may overdo its tightening of policy and cause a sharp economic slowdown,' says Mr Frank Gong, Hong Kong-based chief China economist at JPMorgan Chase.
'If the central bank raises interest rates too much, it will dampen domestic demand and increase the danger of an economic downturn.'
China is still on a tear. Its economy expanded 11.5 per cent last year, according to a government estimate, and it contributed 17 per cent to global growth, the same as the US.
With prices rising at the fastest pace in 11 years, however, Beijing is trying to engineer a cooling of growth that does not also throw millions of China's 1.3 billion people out of work.
The tougher policies may be starting to pay off.
Last month's trade surplus shrank to US$22.7 billion (S$32.4 billion) from US$26.2 billion in November, and the broadest measure of money supply rose by the least in seven months - prompting Goldman Sachs yesterday to cut its growth forecast this year for China to 10 per cent from 10.3 per cent.
Goldman last week joined Morgan Stanley and Merrill Lynch in forecasting that the US would slip into a recession this year for the first time since 2001.
The two economies are closely linked. The US buys about 19 per cent of China's exports. A cooling US economy could magnify the impact of China's anti-inflation measures, says HSBC Holdings chief China economist Qu Hongbin.
'A US recession would cause a major disruption to the Chinese economy,' says Mr Qu. 'Aggressive tightening could prove to be an overkill.'
A 1-percentage-point slowdown in the US would trim China's export growth by 4 percentage points and reduce gross domestic product by 0.5 percentage point, according to Mr Ma Jun, chief China economist at Deutsche Bank in Hong Kong.
A simultaneous slowdown in the US and China would be 'bad news', says Dr Nariman Behravesh, chief economist at Global Insight.
China's trade with the rest of the world has been growing three times as fast as the global average since it joined the World Trade Organisation in 2001.
'A combination of US consumer spending and Chinese imports has pulled the world economy along,' says Dr Behravesh. 'The combination of a US recession and a hard landing in China could push the global economy into a recession.'
Still, if Chinese leaders want to whip inflation, they may have no option but to keep raising interest rates and constraining credit and hope that any US downturn is short-lived.
Chinese consumer prices accelerated by 6.9 per cent in November from a year earlier, while producer prices rose at the fastest in more than two years.
The dilemma, says HSBC's Mr Qu, is that China cannot afford to wait to discover the fate of the US economy. Policymakers need to make a bet on whether domestic inflation or falling overseas demand is the bigger risk, he says.- BLOOMBERG NEWS
GROWTH BOOSTERS
A simultaneous slowdown in the US and China would be bad news because a combination of US consumer spending and Chinese imports has pulled the world economy along, says Dr Nariman Behravesh of Global Insight.
FINE BALANCE
'As foreign demand deteriorates, China may overdo its tightening of policy and cause a sharp economic slowdown.'
MR FRANK GONG of JPMorgan Chase, who adds that if the central bank raises interest rates too much, it will dampen domestic demand and increase the danger of an economic downturn
China May Be Cooling Off At The Wrong Time
Source : The Business Times, January 15, 2008
Global economy will take double hit if US goes into recession
(PARIS/BEIJING) China is starting to gain control of its turbocharged economy, just as a US slowdown raises the risks of doing so.
A narrowing trade surplus and declining money- supply growth are among the first signs that China is pulling back from its fastest expansion in 13 years. The government has raised interest rates six times in a year, restricted credit, frozen some prices and let the currency appreciate to dampen growth and inflation.
The risk is that, with months of effort to cool off China finally taking hold when the US is already flirting with recession, both main engines driving the global economy may power down at the same time.
'As foreign demand deteriorates, China may overdo its tightening of policy and cause a sharp economic slowdown,' said Frank Gong, Hong Kong-based chief China economist at JPMorgan Chase. 'If the central bank raised interest rates too much, it would damp domestic demand and increase the danger of economic downturn.'
China is still on a tear. Its economy expanded 11.5 per cent last year, according to a government estimate, and it contributed 17 per cent to global growth, the same as the US. With prices rising at the fastest pace in 11 years, the ruling Politburo and the central bank are trying to engineer a cooling of growth that doesn't also throw millions of China's 1.3 billion people out of work.
The tougher policies may be starting to pay off, data showed on Jan 11. Last month's trade surplus shrank to US$22.7 billion from US$26.2 billion in November, and the broadest measure of money supply rose by the least in seven months.
Vice-Finance Minister Li Yong said on Sunday that China plans to better coordinate fiscal and monetary policies in 2008 to further cut the trade surplus and mop up excessive liquidity. Yi Gang, a vice-governor of the People's Bank of China, said the central bank 'will decisively fight against inflation and implement tight monetary policies'.
Meanwhile, Goldman Sachs last week joined Morgan Stanley and Merrill Lynch in forecasting that the US will slip into recession this year. Yesterday, Goldman cut its 2008 growth forecast for China to 10 from 10.3 per cent.
The two economies are closely linked. The US buys about 19 per cent of China's exports. A cooling US economy could magnify the impact of China's anti-inflation measures, said Qu Hongbin, chief China economist at HSBC Holdings Plc in Hong Kong. 'A US recession would cause a major disruption to the Chinese economy,' he said. -- Bloomberg
Global economy will take double hit if US goes into recession
(PARIS/BEIJING) China is starting to gain control of its turbocharged economy, just as a US slowdown raises the risks of doing so.
A narrowing trade surplus and declining money- supply growth are among the first signs that China is pulling back from its fastest expansion in 13 years. The government has raised interest rates six times in a year, restricted credit, frozen some prices and let the currency appreciate to dampen growth and inflation.
The risk is that, with months of effort to cool off China finally taking hold when the US is already flirting with recession, both main engines driving the global economy may power down at the same time.
'As foreign demand deteriorates, China may overdo its tightening of policy and cause a sharp economic slowdown,' said Frank Gong, Hong Kong-based chief China economist at JPMorgan Chase. 'If the central bank raised interest rates too much, it would damp domestic demand and increase the danger of economic downturn.'
China is still on a tear. Its economy expanded 11.5 per cent last year, according to a government estimate, and it contributed 17 per cent to global growth, the same as the US. With prices rising at the fastest pace in 11 years, the ruling Politburo and the central bank are trying to engineer a cooling of growth that doesn't also throw millions of China's 1.3 billion people out of work.
The tougher policies may be starting to pay off, data showed on Jan 11. Last month's trade surplus shrank to US$22.7 billion from US$26.2 billion in November, and the broadest measure of money supply rose by the least in seven months.
Vice-Finance Minister Li Yong said on Sunday that China plans to better coordinate fiscal and monetary policies in 2008 to further cut the trade surplus and mop up excessive liquidity. Yi Gang, a vice-governor of the People's Bank of China, said the central bank 'will decisively fight against inflation and implement tight monetary policies'.
Meanwhile, Goldman Sachs last week joined Morgan Stanley and Merrill Lynch in forecasting that the US will slip into recession this year. Yesterday, Goldman cut its 2008 growth forecast for China to 10 from 10.3 per cent.
The two economies are closely linked. The US buys about 19 per cent of China's exports. A cooling US economy could magnify the impact of China's anti-inflation measures, said Qu Hongbin, chief China economist at HSBC Holdings Plc in Hong Kong. 'A US recession would cause a major disruption to the Chinese economy,' he said. -- Bloomberg
Goldman Cuts Asian Growth Forecasts On Fears Of US Recession
Source : The Straits Times, Jan 15, 2008
Bank is predicting a slowdown in America that may hit US-bound shipments from Asia
GOLDMAN Sachs reduced its growth forecasts for Asia on concerns that an expected recession in the United States will erode demand for the region's exports.
Asia, excluding Japan, will expand by 8.3 per cent this year, down from an earlier estimate of 8.6 per cent, Hong Kong-based economist Michael Buchanan said in a report yesterday. The investment bank last week cut its forecasts for the US and Japan.
Goldman, which last year had said Asian growth was decoupling from the US, is now forecasting a recession in the world's largest economy that may hit shipments to the region's biggest export destination.
Singapore's electronic exports have dropped each month since last February, mired in the worst slump in five years.
South Korea and Taiwan have also warned of easing demand for semiconductors, mobile phones and computers, which signals weaker growth for this year.
'There could be a 'tipping point' at which the US slowdown has a more significant impact on Asia than before,' Mr Buchanan wrote.
'The further deterioration in the US economy comes as Japan is also teetering on the edge of recession.'
Morgan Stanley and Merrill Lynch are also forecasting that the US will slip into a recession this year for the first time since 2001, amid a fallout from the US sub-prime mortgage crisis.
Goldman is predicting a 50 per cent chance of a recession in Japan, the world's second-largest economy. It lowered its growth forecasts for all 10 Asian economies that it covered in the report yesterday, including for China and India.
Asia's growth next year will be 8.5 per cent, compared with a prior prediction of 8.6 per cent, Goldman said.
'We'll probably see suppressed US import demand because of an anticipated slowdown in consumer spending,' said Mr Thomas Lam, an economist at United Overseas Bank.
'The contribution from export-led growth for Asia from the US will be impacted. Larger Asian economies will not be spared.'
East Asia's exports are forecast to climb by 15.2 per cent this year, after jumping by 17.8 per cent last year, the World Bank said in its Global Economic Prospects 2008 report released last week.
The region is almost twice as reliant on exports as the rest of the world, with 60 per cent of shipments abroad ultimately destined for the US, Europe and Japan.
Still, the US may need to go through a larger-than-expected slowdown before Asia's growth will reach a 'tipping point', Mr Buchanan said.
'There may still be a growth rate at which Asia caves in and consumption and capital expenditure slow more appreciably, but it may now take more than just a very mild technical US recession,' he said.
China will now expand 10 per cent this year, down from an earlier forecast of 10.3 per cent, Goldman predicted. The US buys about 19 per cent of China's exports.
In Singapore, where consumer price gains are at the highest in a quarter of a century, Goldman expects inflation to outweigh growth concerns.
Bank is predicting a slowdown in America that may hit US-bound shipments from Asia
GOLDMAN Sachs reduced its growth forecasts for Asia on concerns that an expected recession in the United States will erode demand for the region's exports.
Asia, excluding Japan, will expand by 8.3 per cent this year, down from an earlier estimate of 8.6 per cent, Hong Kong-based economist Michael Buchanan said in a report yesterday. The investment bank last week cut its forecasts for the US and Japan.
Goldman, which last year had said Asian growth was decoupling from the US, is now forecasting a recession in the world's largest economy that may hit shipments to the region's biggest export destination.
Singapore's electronic exports have dropped each month since last February, mired in the worst slump in five years.
South Korea and Taiwan have also warned of easing demand for semiconductors, mobile phones and computers, which signals weaker growth for this year.
'There could be a 'tipping point' at which the US slowdown has a more significant impact on Asia than before,' Mr Buchanan wrote.
'The further deterioration in the US economy comes as Japan is also teetering on the edge of recession.'
Morgan Stanley and Merrill Lynch are also forecasting that the US will slip into a recession this year for the first time since 2001, amid a fallout from the US sub-prime mortgage crisis.
Goldman is predicting a 50 per cent chance of a recession in Japan, the world's second-largest economy. It lowered its growth forecasts for all 10 Asian economies that it covered in the report yesterday, including for China and India.
Asia's growth next year will be 8.5 per cent, compared with a prior prediction of 8.6 per cent, Goldman said.
'We'll probably see suppressed US import demand because of an anticipated slowdown in consumer spending,' said Mr Thomas Lam, an economist at United Overseas Bank.
'The contribution from export-led growth for Asia from the US will be impacted. Larger Asian economies will not be spared.'
East Asia's exports are forecast to climb by 15.2 per cent this year, after jumping by 17.8 per cent last year, the World Bank said in its Global Economic Prospects 2008 report released last week.
The region is almost twice as reliant on exports as the rest of the world, with 60 per cent of shipments abroad ultimately destined for the US, Europe and Japan.
Still, the US may need to go through a larger-than-expected slowdown before Asia's growth will reach a 'tipping point', Mr Buchanan said.
'There may still be a growth rate at which Asia caves in and consumption and capital expenditure slow more appreciably, but it may now take more than just a very mild technical US recession,' he said.
China will now expand 10 per cent this year, down from an earlier forecast of 10.3 per cent, Goldman predicted. The US buys about 19 per cent of China's exports.
In Singapore, where consumer price gains are at the highest in a quarter of a century, Goldman expects inflation to outweigh growth concerns.
Goldman Sachs Cuts Asia's Growth Forecast
Source : The Business Times, January 15, 2008
Expected US recession seen eroding demand for region's exports
Goldman Sachs Group has lowered its growth forecast for Asia on concern that an expected US recession will erode demand for the region's exports.
Asia, excluding Japan, will expand 8.3 per cent this year, down from an earlier estimate of 8.6 per cent, Hong Kong-based economist Michael Buchanan said in a report. The investment bank last week cut its forecasts for US and Japan.
Goldman, which last year said Asian growth was decoupling from the US, is now forecasting that a US recession may hit shipments to Asia's biggest export destination. South Korea and Taiwan have already warned that easing demand for semiconductors, mobile phones and computers portends weaker growth in 2008.
'There could be a 'tipping point' at which the US slowdown has a more significant impact on Asia than before,' Mr Buchanan wrote. 'The further deterioration in the US economy comes as Japan is also teetering on the edge of recession.'
Morgan Stanley and Merrill Lynch have also forecast that the US would slip into recession this year for the first time since 2001 amid fallout from the subprime mortgage crisis.
Goldman is predicting a 50 per cent chance of a recession in Japan, the world's second-largest economy. It lowered its growth forecasts for all 10 Asian economies that it covered in the report, including China and India.
'We'll probably see suppressed US import demand because of an anticipated slowdown in consumer spending,' said Thomas Lam, an economist at United Overseas Bank Ltd, Singapore's second-largest lender. 'The contribution from export- led growth for Asia from the US will be impacted. Larger Asian economies will not be spared.'
East Asia's exports are forecast to climb 15.2 per cent this year, after jumping 17.8 per cent in 2007, the World Bank said in its Global Economic Prospects 2008 report released last week.
The region is almost twice as reliant on exports as the rest of the world, with 60 per cent of shipments abroad ultimately destined for the US, Europe and Japan.
Still, the US may need to go through a larger-than- expected slowdown before Asia's growth will reach a 'tipping point', Mr Buchanan said.
'The greater acceptance of the decoupling of Asia from the US that has built up over the last year or so may mean the tipping point for Asian households, firms and markets is at a lower, more negative growth rate than normal,' he said. 'There may still be a growth rate at which Asia caves in and consumption and capex slow more appreciably, but it may now take more than just a very mild technical US recession.'
China will expand 10 per cent this year, from an earlier forecast of 10.3 per cent, Goldman predicted. The US buys about 19 per cent of China's exports.
The company cut India's growth estimate to 7.8 per cent from 8 per cent, and expects export growth to probably halve. The Reserve Bank of India may cut interest rates twice in 2008, once in April and again in the second half, it predicted.
In Singapore, where consumer price gains are at the highest in a quarter of a century, Goldman expects inflation to outweigh growth concerns. It is 'even less confident' of growth in Thailand as political uncertainty hampers policy decisions.
Taiwan remains the 'most-exposed' to a US slowdown, while a greater-than-expected decline in Philippine exports will 'take its toll' on the country's economy, Goldman said.
'Overall, these forecast reductions are meaningful but not disastrous,' Mr Buchanan said. 'The impact on currencies is in general likely to be contained, although equity markets could be in for more volatility.' - Bloomberg
Expected US recession seen eroding demand for region's exports
Goldman Sachs Group has lowered its growth forecast for Asia on concern that an expected US recession will erode demand for the region's exports.
Asia, excluding Japan, will expand 8.3 per cent this year, down from an earlier estimate of 8.6 per cent, Hong Kong-based economist Michael Buchanan said in a report. The investment bank last week cut its forecasts for US and Japan.
Goldman, which last year said Asian growth was decoupling from the US, is now forecasting that a US recession may hit shipments to Asia's biggest export destination. South Korea and Taiwan have already warned that easing demand for semiconductors, mobile phones and computers portends weaker growth in 2008.
'There could be a 'tipping point' at which the US slowdown has a more significant impact on Asia than before,' Mr Buchanan wrote. 'The further deterioration in the US economy comes as Japan is also teetering on the edge of recession.'
Morgan Stanley and Merrill Lynch have also forecast that the US would slip into recession this year for the first time since 2001 amid fallout from the subprime mortgage crisis.
Goldman is predicting a 50 per cent chance of a recession in Japan, the world's second-largest economy. It lowered its growth forecasts for all 10 Asian economies that it covered in the report, including China and India.
'We'll probably see suppressed US import demand because of an anticipated slowdown in consumer spending,' said Thomas Lam, an economist at United Overseas Bank Ltd, Singapore's second-largest lender. 'The contribution from export- led growth for Asia from the US will be impacted. Larger Asian economies will not be spared.'
East Asia's exports are forecast to climb 15.2 per cent this year, after jumping 17.8 per cent in 2007, the World Bank said in its Global Economic Prospects 2008 report released last week.
The region is almost twice as reliant on exports as the rest of the world, with 60 per cent of shipments abroad ultimately destined for the US, Europe and Japan.
Still, the US may need to go through a larger-than- expected slowdown before Asia's growth will reach a 'tipping point', Mr Buchanan said.
'The greater acceptance of the decoupling of Asia from the US that has built up over the last year or so may mean the tipping point for Asian households, firms and markets is at a lower, more negative growth rate than normal,' he said. 'There may still be a growth rate at which Asia caves in and consumption and capex slow more appreciably, but it may now take more than just a very mild technical US recession.'
China will expand 10 per cent this year, from an earlier forecast of 10.3 per cent, Goldman predicted. The US buys about 19 per cent of China's exports.
The company cut India's growth estimate to 7.8 per cent from 8 per cent, and expects export growth to probably halve. The Reserve Bank of India may cut interest rates twice in 2008, once in April and again in the second half, it predicted.
In Singapore, where consumer price gains are at the highest in a quarter of a century, Goldman expects inflation to outweigh growth concerns. It is 'even less confident' of growth in Thailand as political uncertainty hampers policy decisions.
Taiwan remains the 'most-exposed' to a US slowdown, while a greater-than-expected decline in Philippine exports will 'take its toll' on the country's economy, Goldman said.
'Overall, these forecast reductions are meaningful but not disastrous,' Mr Buchanan said. 'The impact on currencies is in general likely to be contained, although equity markets could be in for more volatility.' - Bloomberg
Govt To Check Hotel Conversions Islandwide
Source : The Straits Times, Jan 15, 2008
THE Government has made a key policy change regarding land set aside for hotels at a time of heightened concern over the supply of rooms during the tourism boom.
It has discontinued the hotel safeguarding policy, so developers with land designated for hotels may find it harder to convert the site for other uses, such as apartments.
Applications will now be considered based on the need to ensure sufficient hotel facilities and must be in line with the Master Plan, a broad blueprint outlining Singapore's development. The plan is up for review this year.
The new guidelines represent a key shift from the existing policy. Hotel safeguarding allowed the Government to stop hotel sites from being converted for other uses but was restricted to core areas like the Orchard Road corridor.
But now hotel sites across the country will be under the spotlight. And all conversion applications will be assessed the same way, said the Singapore Tourism Board and the Urban Redevelopment Authority (URA) yesterday.
Hotel conversion applications will generally not be allowed if the area is zoned for hotel use or needs of a certain level of rooms.
'Instead of just safeguarding the hotels in core areas, they are now effectively safeguarding all hotels - on land with hotel zoning - across Singapore,' said Knight Frank director of research and consultancy Nicholas Mak.
'It gives the Government more flexibility to regulate hotel supply in the future.'
The change reflects how the Singapore market has altered, particularly for hotels. The hotel safeguarding policy was introduced in 1997 to check the trend of hotels being converted to condominiums. The Seaview and ANA hotels were turned into residential sites in recent years.
Having sufficient hotel rooms is critical given the aim to attract 17 million visitors to Singapore and $30 billion in tourism receipts by 2015. The 10-millionth visitor landed on Dec 22 last year and in November the average hotel room rate in Singapore reached a record $226.
Demand for hotels within key tourist districts such as Orchard Road and Singapore River is high, but these areas are already largely built up.
The URA said: 'Hence, the loss of hotels within the key tourist districts is irreversible and even the conversion of just a few of the existing hotels within the key tourist districts would significantly impact the critical mass of hotel rooms within these areas.'
Last year, a few hotels opened, bringing the total number to 227. Typically, it takes about three years to build one. If an existing hotel is converted to other uses, it will take that long for a new one to replace it.
'Such lead time can affect the available room supply to meet the growing demand as well as the landscape and the attractiveness of the district as a whole,' said the URA.
THE Government has made a key policy change regarding land set aside for hotels at a time of heightened concern over the supply of rooms during the tourism boom.
It has discontinued the hotel safeguarding policy, so developers with land designated for hotels may find it harder to convert the site for other uses, such as apartments.
Applications will now be considered based on the need to ensure sufficient hotel facilities and must be in line with the Master Plan, a broad blueprint outlining Singapore's development. The plan is up for review this year.
The new guidelines represent a key shift from the existing policy. Hotel safeguarding allowed the Government to stop hotel sites from being converted for other uses but was restricted to core areas like the Orchard Road corridor.
But now hotel sites across the country will be under the spotlight. And all conversion applications will be assessed the same way, said the Singapore Tourism Board and the Urban Redevelopment Authority (URA) yesterday.
Hotel conversion applications will generally not be allowed if the area is zoned for hotel use or needs of a certain level of rooms.
'Instead of just safeguarding the hotels in core areas, they are now effectively safeguarding all hotels - on land with hotel zoning - across Singapore,' said Knight Frank director of research and consultancy Nicholas Mak.
'It gives the Government more flexibility to regulate hotel supply in the future.'
The change reflects how the Singapore market has altered, particularly for hotels. The hotel safeguarding policy was introduced in 1997 to check the trend of hotels being converted to condominiums. The Seaview and ANA hotels were turned into residential sites in recent years.
Having sufficient hotel rooms is critical given the aim to attract 17 million visitors to Singapore and $30 billion in tourism receipts by 2015. The 10-millionth visitor landed on Dec 22 last year and in November the average hotel room rate in Singapore reached a record $226.
Demand for hotels within key tourist districts such as Orchard Road and Singapore River is high, but these areas are already largely built up.
The URA said: 'Hence, the loss of hotels within the key tourist districts is irreversible and even the conversion of just a few of the existing hotels within the key tourist districts would significantly impact the critical mass of hotel rooms within these areas.'
Last year, a few hotels opened, bringing the total number to 227. Typically, it takes about three years to build one. If an existing hotel is converted to other uses, it will take that long for a new one to replace it.
'Such lead time can affect the available room supply to meet the growing demand as well as the landscape and the attractiveness of the district as a whole,' said the URA.
Converting Hotels Into Condos Just Got Harder
Source : The Business Times, January 15, 2008
Rules to ensure that sites zoned as hotels are not switched to other uses
Redevelopment plans involving the likes of Four Seasons Hotel along Orchard Boulevard and Negara on Claymore may have to go back to the drawing board after the government tightened hotel conversion rules yesterday. If the owners of these properties had visions of converting them to other uses - including residential - they may have to think again.
The tightened rules will put a dampener over possible conversion plans. At the same time they will ensure that there is sufficient supply of hotel rooms in key tourist districts like Orchard Road, amidst the tourism boom.
As a general rule, hotels located on sites zoned for hotel use under the Master Plan will not be allowed to convert to other uses. The same goes for hotels that are located within zones for other uses but where there is a specific planning or sales requirement for a minimum hotel quantum to be provided, Urban Redevelopment Authority and Singapore Tourism Board said in a joint release yesterday evening.
'The revised approach to evaluating hotel conversion applications will ensure that the location and number of hotel rooms safeguarded are in line with planning intentions and strategic planning objectives,' the two government bodies said.
This supersedes a policy revision announced in 2002 when 19 hotels which had been previously safeguarded for hotel use under an earlier 1997 ruling were removed from the safeguard list. This meant that their owners could apply to convert the properties to other uses.
However, owners of 18 of these 19 hotels will now not be allowed to convert their sites to other uses such as residential, since these sites are zoned for hotel use under the current Master Plan 2003.
Apart from Four Seasons and Negara on Claymore, the affected hotels include York Hotel along Mount Elizabeth, Hotel Grand Central, Hotel Supreme and Holiday Inn Parkview - all in the Kramat/Cavenagh roads vicinity.
These are all prime district locations and their owners could have had aspirations to convert them to other uses, especially residential, to optimise their land values.
Hotel Properties Ltd has long-standing plans to redevelop Four Seasons Hotel, along with its other three neighbouring properties - Hilton Hotel, Forum and HPL House - into a mega project along Orchard Road.
In 2006, UOL Group gained control of Hotel Negara Ltd, eyeing its key asset, the hotel that it has since renamed Negara on Claymore.
Market watchers had expected UOL to redevelop the property into a residential project or a small office, home office (Soho) development in the longer term.
The list of 19 hotels removed from the hotel safeguard list in 2002 and which are zoned for hotel use under Master Plan 2003 also include a string of hotels in the Bencoolen/ Waterloo/Victoria streets area such as Allson, City Bayview and Strand hotels.
Yesterday's changes also affect non-hotel developments currently on sites that are zoned for hotel use: these properties will only be allowed to be redeveloped into hotel uses, in line with the Master Plan intention.
URA said it will take a case-by-case approach to any applications for exceptions to these latest rules, factoring in the land use and planning intention for the area, as well as ensuring sufficient supply of hotel rooms to meet Singapore's tourism needs.
Elaborating on the rationale for the changes, a URA spokeswoman pointed to record visitor arrivals and tourism receipts as well as high hotel occupancies and revenues. Demand is high for hotels, especially in the key tourist belts like Orchard Road and Singapore River.
However, these areas are already largely built up, leaving limited state land that can be made available for new hotel developments.
'Hence, the loss of hotels within the key tourist districts is irreversible and even the conversion of just a few of the existing hotels would significantly impact the critical mass of hotel rooms within these areas,' the URA spokeswoman added.
The presence of hotels in major tourist areas contributes to the mix of uses that is critical to the vibrancy and character of these areas as Singapore shapes up as a global city, she added.
With a decision on whether a hotel site can be converted to other uses now based on the plot's Master Plan zoning, 'the change puts the land use regulatory framework for hotels in line with other uses', URA said.
Rules to ensure that sites zoned as hotels are not switched to other uses
Redevelopment plans involving the likes of Four Seasons Hotel along Orchard Boulevard and Negara on Claymore may have to go back to the drawing board after the government tightened hotel conversion rules yesterday. If the owners of these properties had visions of converting them to other uses - including residential - they may have to think again.
The tightened rules will put a dampener over possible conversion plans. At the same time they will ensure that there is sufficient supply of hotel rooms in key tourist districts like Orchard Road, amidst the tourism boom.As a general rule, hotels located on sites zoned for hotel use under the Master Plan will not be allowed to convert to other uses. The same goes for hotels that are located within zones for other uses but where there is a specific planning or sales requirement for a minimum hotel quantum to be provided, Urban Redevelopment Authority and Singapore Tourism Board said in a joint release yesterday evening.
'The revised approach to evaluating hotel conversion applications will ensure that the location and number of hotel rooms safeguarded are in line with planning intentions and strategic planning objectives,' the two government bodies said.
This supersedes a policy revision announced in 2002 when 19 hotels which had been previously safeguarded for hotel use under an earlier 1997 ruling were removed from the safeguard list. This meant that their owners could apply to convert the properties to other uses.
However, owners of 18 of these 19 hotels will now not be allowed to convert their sites to other uses such as residential, since these sites are zoned for hotel use under the current Master Plan 2003.
Apart from Four Seasons and Negara on Claymore, the affected hotels include York Hotel along Mount Elizabeth, Hotel Grand Central, Hotel Supreme and Holiday Inn Parkview - all in the Kramat/Cavenagh roads vicinity.
These are all prime district locations and their owners could have had aspirations to convert them to other uses, especially residential, to optimise their land values.
Hotel Properties Ltd has long-standing plans to redevelop Four Seasons Hotel, along with its other three neighbouring properties - Hilton Hotel, Forum and HPL House - into a mega project along Orchard Road.
In 2006, UOL Group gained control of Hotel Negara Ltd, eyeing its key asset, the hotel that it has since renamed Negara on Claymore.
Market watchers had expected UOL to redevelop the property into a residential project or a small office, home office (Soho) development in the longer term.
The list of 19 hotels removed from the hotel safeguard list in 2002 and which are zoned for hotel use under Master Plan 2003 also include a string of hotels in the Bencoolen/ Waterloo/Victoria streets area such as Allson, City Bayview and Strand hotels.
Yesterday's changes also affect non-hotel developments currently on sites that are zoned for hotel use: these properties will only be allowed to be redeveloped into hotel uses, in line with the Master Plan intention.
URA said it will take a case-by-case approach to any applications for exceptions to these latest rules, factoring in the land use and planning intention for the area, as well as ensuring sufficient supply of hotel rooms to meet Singapore's tourism needs.
Elaborating on the rationale for the changes, a URA spokeswoman pointed to record visitor arrivals and tourism receipts as well as high hotel occupancies and revenues. Demand is high for hotels, especially in the key tourist belts like Orchard Road and Singapore River.
However, these areas are already largely built up, leaving limited state land that can be made available for new hotel developments.
'Hence, the loss of hotels within the key tourist districts is irreversible and even the conversion of just a few of the existing hotels would significantly impact the critical mass of hotel rooms within these areas,' the URA spokeswoman added.
The presence of hotels in major tourist areas contributes to the mix of uses that is critical to the vibrancy and character of these areas as Singapore shapes up as a global city, she added.
With a decision on whether a hotel site can be converted to other uses now based on the plot's Master Plan zoning, 'the change puts the land use regulatory framework for hotels in line with other uses', URA said.
翡翠乐大厦五业主不满地契局裁决的集体出售而上诉遭驳回
《联合早报》Jan 15, 2008
跟浩然大厦（Horizon Towers）同路、互相对望的翡翠乐大厦（Futura），有五名业主因不满分层地契局批准集体出售的裁决而向高庭上诉，结果遭驳回。其中四名业主已准备向终审法院——最高法院上诉庭上诉。
高庭吴必理法官于去年10月间驳回上诉，日前发表书面判决理由。他确认分层地契局的裁决，认为这项交易没有不老实。
翡翠乐大厦位于里峇峇利路附近的利安尼山路，属于永久地契。它建于1976年，楼高26层，有69个公寓单位和3个阁楼。
前年9月，翡翠乐大厦公开招标，保留价为2亿7936万元，负责销售的是戴德梁行（DTZ）。当时，只有城市发展属下的City Sunshine出价2亿9100万元。
一个月后，大厦以2亿8730万元卖给City Sunshine，各公寓业主得370万元，阁楼业主得940万元。
少数业主指整个集体出售交易不老实，因大厦原本出价2亿9100万元，销售委员会却在短短三个小时内就接受2亿8730万元的减价，事前没同其他业主商讨。
他们指当天的讨论没有会议记录，而委员会放弃责任，把一切交给戴德梁行的代表董玮玲，让她单独跟城市发展的代表交手。
他们也指委员会不应急着出价，应展开土地测量。
根据判词，买家的出价虽比保留价高出1100万元，销售委员会却不接受，因为它开出两个不利卖方的附带条件。
其中一个条件是，买家是在以不必支付发展费的情况下买下大厦；如果日后有发展费，将由买家的建筑师决定款项，而有关款项将从买价中扣除。
另一个条件是日后如果发现有土地侵占的问题，买家有权终止交易，或有权从买价扣除所侵占土地面积的款额。
也因为只有一个竞标者，销售委员会就指示戴德梁行去跟买家商量，看是否能解除上述两个条件。
代表戴德梁行的董玮玲跟城市发展的代表商谈了几次，但不成功。前年10月23日，她和销售委员会在李及李律师馆会面，并获指示去游说城市发展，看后者愿不愿意接受低于500万元的减价，以便解除条件。
销售委员会当时坐在会议室里。董玮玲在会议室外，用手机跟城市发展磋商，再把城市发展所出的减价，通知销售委员会的代表曾永平。最终，双方同意把减价数额订在370万元，也就是买家的最后出价为2亿8730万元，交易合约于当晚11时完成。
法官指出，城市发展后来展开土地测量，发现大厦侵占了53.4平方米；它其实可以撤销出价，或把出价减少115万元。
他认为，土地测量可以解决许多问题，但即使委员会先展开测量，发现没有侵占的问题，城市发展还是有权自行展开测量，而发展费的问题还是存在的。
委员会用少过500万元的减价，一次过解除两个附带条件，最终的卖价还是比保留价高。
吴必理法官说，分层地契局认为董玮玲和曾永平都是可靠证人，“我的结论是，该局有权接受这样的看法。”
最后卖价仍然比保留价高790万元
370万元的减价占原本叫价2亿9100万元的1.27%。法官认为，后来的出价虽然被减，却因为没附带两个条件，其实是较好的出价。
他指出，少数业主反复谈论370万元的减价，但他提醒说，2亿8730万元这个最后卖价，还是比保留价高了790万元。
他说，显然地，少数业主是采用“机关枪（扫射）方式”，想尽量找出错误之处，而不是专注在证明交易不老实的地方，“他们也无法证明分层地契局在法律上的错误，我因此驳回上诉。”
翡翠乐大厦的“对邻”浩然大厦，去年因集体出售纠纷而受人瞩目。本月初，少数业主因不满分层地契局批准集体出售的决定，向高庭申请上诉，使这起沸沸扬扬的案件另生枝节。
跟浩然大厦（Horizon Towers）同路、互相对望的翡翠乐大厦（Futura），有五名业主因不满分层地契局批准集体出售的裁决而向高庭上诉，结果遭驳回。其中四名业主已准备向终审法院——最高法院上诉庭上诉。
高庭吴必理法官于去年10月间驳回上诉，日前发表书面判决理由。他确认分层地契局的裁决，认为这项交易没有不老实。
翡翠乐大厦位于里峇峇利路附近的利安尼山路，属于永久地契。它建于1976年，楼高26层，有69个公寓单位和3个阁楼。
前年9月，翡翠乐大厦公开招标，保留价为2亿7936万元，负责销售的是戴德梁行（DTZ）。当时，只有城市发展属下的City Sunshine出价2亿9100万元。
一个月后，大厦以2亿8730万元卖给City Sunshine，各公寓业主得370万元，阁楼业主得940万元。
少数业主指整个集体出售交易不老实，因大厦原本出价2亿9100万元，销售委员会却在短短三个小时内就接受2亿8730万元的减价，事前没同其他业主商讨。
他们指当天的讨论没有会议记录，而委员会放弃责任，把一切交给戴德梁行的代表董玮玲，让她单独跟城市发展的代表交手。
他们也指委员会不应急着出价，应展开土地测量。
根据判词，买家的出价虽比保留价高出1100万元，销售委员会却不接受，因为它开出两个不利卖方的附带条件。
其中一个条件是，买家是在以不必支付发展费的情况下买下大厦；如果日后有发展费，将由买家的建筑师决定款项，而有关款项将从买价中扣除。
另一个条件是日后如果发现有土地侵占的问题，买家有权终止交易，或有权从买价扣除所侵占土地面积的款额。
也因为只有一个竞标者，销售委员会就指示戴德梁行去跟买家商量，看是否能解除上述两个条件。
代表戴德梁行的董玮玲跟城市发展的代表商谈了几次，但不成功。前年10月23日，她和销售委员会在李及李律师馆会面，并获指示去游说城市发展，看后者愿不愿意接受低于500万元的减价，以便解除条件。
销售委员会当时坐在会议室里。董玮玲在会议室外，用手机跟城市发展磋商，再把城市发展所出的减价，通知销售委员会的代表曾永平。最终，双方同意把减价数额订在370万元，也就是买家的最后出价为2亿8730万元，交易合约于当晚11时完成。
法官指出，城市发展后来展开土地测量，发现大厦侵占了53.4平方米；它其实可以撤销出价，或把出价减少115万元。
他认为，土地测量可以解决许多问题，但即使委员会先展开测量，发现没有侵占的问题，城市发展还是有权自行展开测量，而发展费的问题还是存在的。
委员会用少过500万元的减价，一次过解除两个附带条件，最终的卖价还是比保留价高。
吴必理法官说，分层地契局认为董玮玲和曾永平都是可靠证人，“我的结论是，该局有权接受这样的看法。”
最后卖价仍然比保留价高790万元
370万元的减价占原本叫价2亿9100万元的1.27%。法官认为，后来的出价虽然被减，却因为没附带两个条件，其实是较好的出价。
他指出，少数业主反复谈论370万元的减价，但他提醒说，2亿8730万元这个最后卖价，还是比保留价高了790万元。
他说，显然地，少数业主是采用“机关枪（扫射）方式”，想尽量找出错误之处，而不是专注在证明交易不老实的地方，“他们也无法证明分层地契局在法律上的错误，我因此驳回上诉。”
翡翠乐大厦的“对邻”浩然大厦，去年因集体出售纠纷而受人瞩目。本月初，少数业主因不满分层地契局批准集体出售的决定，向高庭申请上诉，使这起沸沸扬扬的案件另生枝节。
印侨银行拍卖有10个房间的加东大洋房
《联合早报》Jan 15, 2008
拥有新加坡有地私宅的外国人和外国企业相当罕见，但印侨银行（Indian Overseas Bank）看准目前为房地产出售良机，不惜放弃这个“特权”，决定把位于加东一带的独立式洋房拍卖出售。
为了防止外国人垄断土地，推动价格飙升，新加坡政府自1973年起实施条例限制外国人，包括永久居民拥有有地住宅。
印侨银行能在本地拥有有地私宅是因为历史因素。自1943年就开始在本地设分行的印侨银行，早在1960年以10万元买下这栋殖民地时代建设的双层楼洋房，作为新加坡总裁的住所，所以不受条例限制。
位于白兰森路（Branksome Road）9号的这栋洋房，占地1万2847平方英尺，属于永久地契。由于这个地段非常大，可重新发展为六至八个聚落式洋房(cluster housing)，预示价格为每平方英尺950元，相等于1200万元，于本月29日在安国酒店拍卖出售。
住在洋房里的是新加坡总裁穆迪。在他之前，有15个新加坡总裁也曾经把它用作住所。
来自印度喀拉拉的穆迪表示，这个拥有10个房间的大洋房只有他一人居住，每个月的维修费需要1000元左右，管理层因此在不久前决定将它出售。
他说：“虽然觉得有些不舍，但我们是银行，房地产发展不是我们的专业，更何况，目前的市场有利于出售套现。选择拍卖则是因为这个做法最透明，而且能通过竞争，取得最高售价。”
除了白兰森路9号外，银行也拥有丝丝街（Cecil Street）64号的六层楼办公楼，同时在2005年买下海格路海雅阁(Haig Court)的七个单位，供在本地工干的高层职员居住。据悉银行当时是以每平方英尺450元买下这些单位，如今它们的“身价”已上升至每平方英尺1200 元。
穆迪透露，喜欢本地透明且高流通性的房地产市场，同时看好本地房地产价格还有上涨空间，管理层正在考虑是否利用出售所得投资更多本地公寓。
负责拍卖白兰森路9号的仲量联行（Jones Lang LaSalle）拍卖营业部主管莫思思指出，第9、10和11黄金地带的私宅所取得的高平均售价已开始惠及其他邮区的有地房产，尤其是第15邮区。
她说：“由于有地房地产在新加坡的供应有限，而需求依然强劲，平均售价预料还会继续上涨。”
据市区重建局的数据，位于15邮区的排屋，平均售价在去年取得29.6％的增长，达每平方英尺703元；半独立式洋房的售价则激增61.5％，达每平方英尺842元；高档独立式洋房则上扬56％，平均售价为每平方英尺1200元。
莫思思透露白兰森路9号已有不少人上门问津，多为独立人士、银行家和小型发展商。
她表示发展商有意在这个地段上兴建近年来流行的聚落式洋房。据了解，隔两条街，位于波茂路（Bournemouth Road）的聚落式洋房最近成交价介于360万至400万元。
优质洋房地段招标
另外，位于荷兰村附近的福特道（Ford Avenue）11号的一间优质洋房地段则从即日起公开招标，预示价约4100万元，相等于每平方英尺893元，截止日期为2月21日。
负责销售此项目的高力国际(Colliers)投资销售部主管何永裕说，这个占地4万5894平方英尺左右的优质洋房可进一步划分，兴建三个优质洋房。
拥有新加坡有地私宅的外国人和外国企业相当罕见，但印侨银行（Indian Overseas Bank）看准目前为房地产出售良机，不惜放弃这个“特权”，决定把位于加东一带的独立式洋房拍卖出售。
为了防止外国人垄断土地，推动价格飙升，新加坡政府自1973年起实施条例限制外国人，包括永久居民拥有有地住宅。
印侨银行能在本地拥有有地私宅是因为历史因素。自1943年就开始在本地设分行的印侨银行，早在1960年以10万元买下这栋殖民地时代建设的双层楼洋房，作为新加坡总裁的住所，所以不受条例限制。
位于白兰森路（Branksome Road）9号的这栋洋房，占地1万2847平方英尺，属于永久地契。由于这个地段非常大，可重新发展为六至八个聚落式洋房(cluster housing)，预示价格为每平方英尺950元，相等于1200万元，于本月29日在安国酒店拍卖出售。
住在洋房里的是新加坡总裁穆迪。在他之前，有15个新加坡总裁也曾经把它用作住所。
来自印度喀拉拉的穆迪表示，这个拥有10个房间的大洋房只有他一人居住，每个月的维修费需要1000元左右，管理层因此在不久前决定将它出售。
他说：“虽然觉得有些不舍，但我们是银行，房地产发展不是我们的专业，更何况，目前的市场有利于出售套现。选择拍卖则是因为这个做法最透明，而且能通过竞争，取得最高售价。”
除了白兰森路9号外，银行也拥有丝丝街（Cecil Street）64号的六层楼办公楼，同时在2005年买下海格路海雅阁(Haig Court)的七个单位，供在本地工干的高层职员居住。据悉银行当时是以每平方英尺450元买下这些单位，如今它们的“身价”已上升至每平方英尺1200 元。
穆迪透露，喜欢本地透明且高流通性的房地产市场，同时看好本地房地产价格还有上涨空间，管理层正在考虑是否利用出售所得投资更多本地公寓。
负责拍卖白兰森路9号的仲量联行（Jones Lang LaSalle）拍卖营业部主管莫思思指出，第9、10和11黄金地带的私宅所取得的高平均售价已开始惠及其他邮区的有地房产，尤其是第15邮区。
她说：“由于有地房地产在新加坡的供应有限，而需求依然强劲，平均售价预料还会继续上涨。”
据市区重建局的数据，位于15邮区的排屋，平均售价在去年取得29.6％的增长，达每平方英尺703元；半独立式洋房的售价则激增61.5％，达每平方英尺842元；高档独立式洋房则上扬56％，平均售价为每平方英尺1200元。
莫思思透露白兰森路9号已有不少人上门问津，多为独立人士、银行家和小型发展商。
她表示发展商有意在这个地段上兴建近年来流行的聚落式洋房。据了解，隔两条街，位于波茂路（Bournemouth Road）的聚落式洋房最近成交价介于360万至400万元。
优质洋房地段招标
另外，位于荷兰村附近的福特道（Ford Avenue）11号的一间优质洋房地段则从即日起公开招标，预示价约4100万元，相等于每平方英尺893元，截止日期为2月21日。
负责销售此项目的高力国际(Colliers)投资销售部主管何永裕说，这个占地4万5894平方英尺左右的优质洋房可进一步划分，兴建三个优质洋房。
横跨五座组屋 既是空中花园 也是组屋桥梁
《联合早报》Jan 15, 2008
大巴窑中路的五座新组屋已披上绿衣，成为本地第一批拥有中层空中花园的组屋。
这个横跨第79A座至第79E座组屋的空中花园，面积约1600平方公尺，相等于14个四房式单位。空中花园建在12楼，所横贯的组屋有的是11层楼高，有的则是40层楼高。
由于花园连接五座组屋，因此也是一座空中桥梁，居民不必到一楼，便可以从一座组屋走到另一座。组屋周围的公共设施包括大巴窑中民众俱乐部和大巴窑社区图书馆，都近在咫尺。
屋主何薇（35岁，制作助理）说，她购买的组屋位于22楼，往下瞧就可看见空中花园的一片绿意，景色相当怡人。
大巴窑中路的空中花园连接五座组屋。（刘庆成摄）
她说，“组屋楼下的空间不多，空中花园是个利用空间的好点子，有助于提升居住环境的素质。居民可到花园散步或运动，接近大自然。”
第79A座至第79E座组屋是大巴窑5巷和6巷选择性整体重建计划（SERS）的替代组屋，共有1158个四房式和五房式单位。
建屋发展局是在2003年宣布大巴窑5巷和6巷第28、30、32和33座组屋的816间三房式组屋获选展开选择性整体重建计划。
大巴窑中路的五座新组屋已披上绿衣，成为本地第一批拥有中层空中花园的组屋。
这个横跨第79A座至第79E座组屋的空中花园，面积约1600平方公尺，相等于14个四房式单位。空中花园建在12楼，所横贯的组屋有的是11层楼高，有的则是40层楼高。
由于花园连接五座组屋，因此也是一座空中桥梁，居民不必到一楼，便可以从一座组屋走到另一座。组屋周围的公共设施包括大巴窑中民众俱乐部和大巴窑社区图书馆，都近在咫尺。
屋主何薇（35岁，制作助理）说，她购买的组屋位于22楼，往下瞧就可看见空中花园的一片绿意，景色相当怡人。
大巴窑中路的空中花园连接五座组屋。（刘庆成摄）
她说，“组屋楼下的空间不多，空中花园是个利用空间的好点子，有助于提升居住环境的素质。居民可到花园散步或运动，接近大自然。”
第79A座至第79E座组屋是大巴窑5巷和6巷选择性整体重建计划（SERS）的替代组屋，共有1158个四房式和五房式单位。
建屋发展局是在2003年宣布大巴窑5巷和6巷第28、30、32和33座组屋的816间三房式组屋获选展开选择性整体重建计划。
GuocoLand To Consider Limited Lease Extension For Leedon Heights Owners
Source : Channel NewsAsia, 14 January 2008
Property developer GuocoLand is considering allowing former owners of Leedon Heights condominium in District 10 to continue staying on in their units for a limited period of time.
This is a goodwill gesture at the request of some residents of the development who want more time to find replacement units.
The 23-year-old Leedon Heights, off Farrer Road, was sold to GuocoLand in a collective sale last year for S$835 million.
Together with a S$40 million development charge, the price works out to S$1,062 per square foot per plot ratio.
Some owners said they had asked for more time to vacate their units while they looked for replacement units.
Karamjit Singh, Credo's managing director, said: "Well, most developers prefer to get on with their demolition construction so as to be able to market their projects. Usually, contractually, owners are allowed up to six months (to vacate their units).
"Recently, what some developers with large projects have done is to build showflats within the large land areas at an obscure corner that allows existing occupants to stay on in the units while the new projects are being marketed."
This appears to be what GuocoLand may do as well. Responding to queries from Channel NewsAsia, GuocoLand said it believes that the land parcel is large enough for it to undertake its marketing initiatives for the new development, without inconveniencing the residents.
As such, it is considering the request to allow Leedon Heights residents to remain in their homes for a limited period.
Leedon Heights sits on a land area of about 48,500 square metres with a plot ratio of 1.6, which can accommodate buildings of up to 12 storeys.
Nicholas Mak, director of Knight Frank, said: "It's very unusual for developers to lease back to their owners, after the collective sale. The reason is because the developers are buying the site only for redevelopment.
"For developers to do that - I think that has happened before, during the Asian financial crises - it would usually mean that the developer feels that the market, the primary sales market, is rather weak and is not ready to support the kind of selling price that they have in mind."
According to the Urban Redevelopment Authority (URA), there were almost 65,400 private residential units in the pipeline last September. Of these, 41,600 are slated to be completed between this year and 2010. - CNA/ir
Property developer GuocoLand is considering allowing former owners of Leedon Heights condominium in District 10 to continue staying on in their units for a limited period of time.
This is a goodwill gesture at the request of some residents of the development who want more time to find replacement units. The 23-year-old Leedon Heights, off Farrer Road, was sold to GuocoLand in a collective sale last year for S$835 million.
Together with a S$40 million development charge, the price works out to S$1,062 per square foot per plot ratio.
Some owners said they had asked for more time to vacate their units while they looked for replacement units.
Karamjit Singh, Credo's managing director, said: "Well, most developers prefer to get on with their demolition construction so as to be able to market their projects. Usually, contractually, owners are allowed up to six months (to vacate their units).
"Recently, what some developers with large projects have done is to build showflats within the large land areas at an obscure corner that allows existing occupants to stay on in the units while the new projects are being marketed."
This appears to be what GuocoLand may do as well. Responding to queries from Channel NewsAsia, GuocoLand said it believes that the land parcel is large enough for it to undertake its marketing initiatives for the new development, without inconveniencing the residents.
As such, it is considering the request to allow Leedon Heights residents to remain in their homes for a limited period.
Leedon Heights sits on a land area of about 48,500 square metres with a plot ratio of 1.6, which can accommodate buildings of up to 12 storeys.
Nicholas Mak, director of Knight Frank, said: "It's very unusual for developers to lease back to their owners, after the collective sale. The reason is because the developers are buying the site only for redevelopment.
"For developers to do that - I think that has happened before, during the Asian financial crises - it would usually mean that the developer feels that the market, the primary sales market, is rather weak and is not ready to support the kind of selling price that they have in mind."
According to the Urban Redevelopment Authority (URA), there were almost 65,400 private residential units in the pipeline last September. Of these, 41,600 are slated to be completed between this year and 2010. - CNA/ir
URA, STB Revise Policy Towards Applications To Convert Hotel Sites
Source : Channel NewsAsia, 14 January 2008
The Urban Redevelopment Authority (URA) and the Singapore Tourist Board (STB) are revising their policy towards applications to convert sites zoned for hotel use to other uses.
With immediate effect, such applications will be considered under the national planning framework to take into account the planning intentions in the development master plan.
Analyst Nicholas Mak of Knight Frank believes the revised approach is to give the government more flexibility.
He does not see a drastic change in the supply of hotel rooms as a result of the revision.
This is because the outlook for the hotel industry is very strong and there are no push factors for hotel owners to convert the use of their sites.
Under the hotel safeguarding policy introduced in 1997, hotels in designated areas were not allowed to convert to other uses. Most of these hotels are in the Orchard Road belt.
With the latest announcement, this policy will be discontinued. - CNA/ac
The Urban Redevelopment Authority (URA) and the Singapore Tourist Board (STB) are revising their policy towards applications to convert sites zoned for hotel use to other uses.
With immediate effect, such applications will be considered under the national planning framework to take into account the planning intentions in the development master plan. Analyst Nicholas Mak of Knight Frank believes the revised approach is to give the government more flexibility.
He does not see a drastic change in the supply of hotel rooms as a result of the revision.
This is because the outlook for the hotel industry is very strong and there are no push factors for hotel owners to convert the use of their sites.
Under the hotel safeguarding policy introduced in 1997, hotels in designated areas were not allowed to convert to other uses. Most of these hotels are in the Orchard Road belt.
With the latest announcement, this policy will be discontinued. - CNA/ac
Survey Rates Singapore As World's Second Freest Economy
Source : Channel NewsAsia, 15 January 2008
Hong Kong has retained its position as the world's freest economy, according to the 2008 Index of Economic Freedom by the US think-tank, The Heritage Foundation.
But Singapore is closing the gap, turning in a better performance than a year ago.
The US think-tank praises Singapore's efforts to cut taxes and attract foreign investments.
Singapore has been scoring high in recent international ratings.
In a World Bank report last year, it was voted the world's easiest place to do business.
And leading business school IMD's World Competitiveness Yearbook describes the city as providing the world's most attractive investment incentives.
All that helped Singapore cement its position as the second freest economy in the world. It is still behind Hong Kong, but the gap is narrowing, with Singapore outperforming in five out of 10 key areas.
But The Heritage Foundation says state influence in the banking sector persists.
The Heritage Foundation's vice-president, Kim Holmes, said: "The key for Singapore, as we mentioned before, is reforming the financial services and their banking industries. They have a very high degree of government intervention."
He said that if Singapore were to reform the financial services and banking industries, it could give Hong Kong a real competition for the number one spot.
Despite foreign banks in Singapore having greater freedom to open branches and offer services, the government still seeks to maintain domestic banks' share of deposits above 50 percent.
The Heritage Foundation's director, Terry Miller, said: "The area of most concern to us, I think, is restrictions on the banking sector that require a degree of dominant ownership, (unlike) in Hong Kong.
"They (Singapore) have liberalised their banking sector to some extent and so we might be looking at some improvement in their score in the future years, but there's far more for them to do in that area."
Four out of the world's top 10 freest economies come from the Asia Pacific.
Hong Kong keeps its pole position, but its score falls by 3 percentage points, while Singapore pulls ahead by 2 points. Japan is in fifth place.
Hong Kong's decline in score was due to a pick-up in inflation, which resulted in less monetary freedom.
Mr Miller said: "The reason its score is down by a very small percentage this year is because the inflation rate has risen slightly. We use a 3-year rolling average; that rate went up, so the score went down.
"I don't think we can say what next year's index will be, but I'm sure Hong Kong will continue to be a very strong performer indeed."
Welcoming the report, Hong Kong's Financial Secretary John Tsang reaffirmed Hong Kong's commitment to act as a facilitator for businesses and said it will continue to provide a level-playing field. - CNA/ir
Hong Kong has retained its position as the world's freest economy, according to the 2008 Index of Economic Freedom by the US think-tank, The Heritage Foundation.
But Singapore is closing the gap, turning in a better performance than a year ago. The US think-tank praises Singapore's efforts to cut taxes and attract foreign investments.
Singapore has been scoring high in recent international ratings.
In a World Bank report last year, it was voted the world's easiest place to do business.
And leading business school IMD's World Competitiveness Yearbook describes the city as providing the world's most attractive investment incentives.
All that helped Singapore cement its position as the second freest economy in the world. It is still behind Hong Kong, but the gap is narrowing, with Singapore outperforming in five out of 10 key areas.
But The Heritage Foundation says state influence in the banking sector persists.
The Heritage Foundation's vice-president, Kim Holmes, said: "The key for Singapore, as we mentioned before, is reforming the financial services and their banking industries. They have a very high degree of government intervention."
He said that if Singapore were to reform the financial services and banking industries, it could give Hong Kong a real competition for the number one spot.
Despite foreign banks in Singapore having greater freedom to open branches and offer services, the government still seeks to maintain domestic banks' share of deposits above 50 percent.
The Heritage Foundation's director, Terry Miller, said: "The area of most concern to us, I think, is restrictions on the banking sector that require a degree of dominant ownership, (unlike) in Hong Kong.
"They (Singapore) have liberalised their banking sector to some extent and so we might be looking at some improvement in their score in the future years, but there's far more for them to do in that area."
Four out of the world's top 10 freest economies come from the Asia Pacific.
Hong Kong keeps its pole position, but its score falls by 3 percentage points, while Singapore pulls ahead by 2 points. Japan is in fifth place.
Hong Kong's decline in score was due to a pick-up in inflation, which resulted in less monetary freedom.
Mr Miller said: "The reason its score is down by a very small percentage this year is because the inflation rate has risen slightly. We use a 3-year rolling average; that rate went up, so the score went down.
"I don't think we can say what next year's index will be, but I'm sure Hong Kong will continue to be a very strong performer indeed."
Welcoming the report, Hong Kong's Financial Secretary John Tsang reaffirmed Hong Kong's commitment to act as a facilitator for businesses and said it will continue to provide a level-playing field. - CNA/ir
New Orchard MRT Passageway Links ION Orchard To Shopping Centres
Source : Channel NewsAsia, 14 January 2008
A new passageway will open on 15 January at Orchard MRT station.
It will link the ION Orchard development, currently under construction, with the MRT's other entrances and exits and nearby shopping centres.
To date, 134 of the 175 residential units in 'Orchard Residences' have already been sold.
Related Video Link - http://tinyurl.com/3czv2y
The passageway will welcome its first train commuters when the station opens at 5.30am on Tuesday. With its opening, the south entrance will close permanently from midnight on Monday.
The passageway connects to other exits and entrances at the station - in front of Tangs, on Orchard Boulevard and to a new entrance opening in 2009 at the second basement of Wheelock Place. There are also links to Scotts Road and Shaw House.
Soon Su Lin, CEO of Orchard Turn Developments, said: "All these specially designed direct linkages are designed to be directly connected to ION Orchard Mall at both basement(s) one and two levels."
In the meantime, to make walking from Wisma Atria to the passageway more pleasant, a temporary covered walkway will be completed in two weeks and it will be in use till ION Orchard opens in 2009.
In the passageway, commuters can expect a totally new experience. Advertising can be projected through the glass backlit walls. Art is also planned and the ceiling is built the same way - where colours and sequences can be programmed for different effects. - CNA/vm
A new passageway will open on 15 January at Orchard MRT station.
It will link the ION Orchard development, currently under construction, with the MRT's other entrances and exits and nearby shopping centres.
To date, 134 of the 175 residential units in 'Orchard Residences' have already been sold. Related Video Link - http://tinyurl.com/3czv2y
The passageway will welcome its first train commuters when the station opens at 5.30am on Tuesday. With its opening, the south entrance will close permanently from midnight on Monday.
The passageway connects to other exits and entrances at the station - in front of Tangs, on Orchard Boulevard and to a new entrance opening in 2009 at the second basement of Wheelock Place. There are also links to Scotts Road and Shaw House.
Soon Su Lin, CEO of Orchard Turn Developments, said: "All these specially designed direct linkages are designed to be directly connected to ION Orchard Mall at both basement(s) one and two levels."
In the meantime, to make walking from Wisma Atria to the passageway more pleasant, a temporary covered walkway will be completed in two weeks and it will be in use till ION Orchard opens in 2009.
In the passageway, commuters can expect a totally new experience. Advertising can be projected through the glass backlit walls. Art is also planned and the ceiling is built the same way - where colours and sequences can be programmed for different effects. - CNA/vm
New Passageway Opens At Orchard MRT Station
Source : Channel NewsAsia, 15 January 2008
The new passageway at Orchard MRT station took in its first commuters on Tuesday morning.
It was a 90-metre walk that was a bit out of the ordinary.
Dancing police officers were present at the station to help commuters out of the station, leading them towards Wisma Atria and Ngee Ann City.
Alex Loon, a dancing traffic cop, explained how useful their services were: "Because it's rush hour, a lot of the people are just doing their own stuff.
"Sometimes they ignore us but some of the crowd is actually quite responsive and they stop, look at us and when we direct them, they actually follow our directions."
The cop dancers will be strutting their stuff everyday from 1pm to 5pm until 18 January. This weekend, an all-girl group will take over with their own dance routine between 2pm and 6pm.
The passageway adds to the list of underground connectors for the more than 100,000 train commuters entering and leaving the station everyday.
While some like it, while others don't.
One commuter said: "So easy to go to the other buildings - short cut."
"I was quite lost just now because everytime I travel by the other side," said another.
As a special treat, refreshments were given out to commuters who had time for a quick drink before work.
The passageway will also link ION Orchard, when it opens in 2009, with the MRT station and its other underground passageways. - CNA/vm
The new passageway at Orchard MRT station took in its first commuters on Tuesday morning.
It was a 90-metre walk that was a bit out of the ordinary. Dancing police officers were present at the station to help commuters out of the station, leading them towards Wisma Atria and Ngee Ann City.
Alex Loon, a dancing traffic cop, explained how useful their services were: "Because it's rush hour, a lot of the people are just doing their own stuff.
"Sometimes they ignore us but some of the crowd is actually quite responsive and they stop, look at us and when we direct them, they actually follow our directions."
The cop dancers will be strutting their stuff everyday from 1pm to 5pm until 18 January. This weekend, an all-girl group will take over with their own dance routine between 2pm and 6pm.
The passageway adds to the list of underground connectors for the more than 100,000 train commuters entering and leaving the station everyday.
While some like it, while others don't.
One commuter said: "So easy to go to the other buildings - short cut."
"I was quite lost just now because everytime I travel by the other side," said another.
As a special treat, refreshments were given out to commuters who had time for a quick drink before work.
The passageway will also link ION Orchard, when it opens in 2009, with the MRT station and its other underground passageways. - CNA/vm
Robust Construction Demand Expected This Year
Source : Channel NewsAsia, 15 January 2008
The Building and Construction Authority (BCA) has projected the value of construction contracts this year to reach between S$23 billion and S$27 billion, compared to S$24.5 billion in 2007.
The bulk of the projects is expected to come from the private residential and commercial sectors.
Related Video Link - http://tinyurl.com/ythd7x
Due to the high demand for resources, the government is encouraging the industry to use more recycled or alternative construction materials. It is also proposing a licensing scheme for importers of materials like sand and granite.
Dr Mohamad Maliki Osman, Parliamentary Secretary, National Development, said: "One of the criteria is the ability of the importer to provide a plan for sudden disruption of supplies, to make sure that their supply is secure in certain times of crisis.
"The situation has stabilised – we have sufficient supply of sand and granite to supply to the industry for the next year or so."
With ample supply in place, the BCA will discontinue its assistance scheme to co-share the risk of importing sand from distant sources. This was implemented when Indonesia banned sand exports to Singapore last year.
The BCA said concrete prices have also stabilised at about S$130 per cubic metre, after hitting a high of some S$190 per cubic metre as a result of supply disruptions.
However, construction costs remain a top concern for contractors as prices look set to increase this year due to surging prices of ocean freight and fuel.
Industry players also expect the licensing scheme for materials importers to affect prices of concrete aggregates by up to 30 percent.
Dr Sujit Ghosh, President of Ready Mixed Concrete Association, said: "It will show some moderate increases in the overall or the average costing of aggregates because you add in the factor - which is the transportation from the non-traditional distant sources - it's basically about S$15 per tonne difference, which comes about by way of shipping cost."
Desmond Hill, President of Singapore Contractor Association, said: "In a matter of three months, steel bar prices have gone up by about S$150. There is this fear that if it spirals up too high, contractors will then be made to bear the crunch.
"I have some advice for developers out there. If they can basically share risk of the essential components of basic construction materials, this will help minimise the uncertainty in prices."
To ease the demand on construction resources, the government will defer more public building projects.
Some S$2 billion worth of public sector developments will be rescheduled to 2010 and beyond. It also plans to bring in more professionals and foreign workers.
This includes expanding the capacity of the BCA's 20 Overseas Testing Centres to facilitate entry of foreign workers. Five more centres are expected to be ready by mid-2008.
Another focus is to develop environmentally sustainable buildings. It is hoped that the industry can tap on the available funds to adopt greater use of green technology for their projects.
The BCA said in 2007, some 39 buildings have been Green Mark certified and so far this year, about 120 projects have been lined up for assessment.
New guidelines on concrete usage will be introduced later this month. The BCA will also be launching guidebooks on the use of steel and recycled materials. - CNA/so
The Building and Construction Authority (BCA) has projected the value of construction contracts this year to reach between S$23 billion and S$27 billion, compared to S$24.5 billion in 2007.
The bulk of the projects is expected to come from the private residential and commercial sectors. Related Video Link - http://tinyurl.com/ythd7x
Due to the high demand for resources, the government is encouraging the industry to use more recycled or alternative construction materials. It is also proposing a licensing scheme for importers of materials like sand and granite.
Dr Mohamad Maliki Osman, Parliamentary Secretary, National Development, said: "One of the criteria is the ability of the importer to provide a plan for sudden disruption of supplies, to make sure that their supply is secure in certain times of crisis.
"The situation has stabilised – we have sufficient supply of sand and granite to supply to the industry for the next year or so."
With ample supply in place, the BCA will discontinue its assistance scheme to co-share the risk of importing sand from distant sources. This was implemented when Indonesia banned sand exports to Singapore last year.
The BCA said concrete prices have also stabilised at about S$130 per cubic metre, after hitting a high of some S$190 per cubic metre as a result of supply disruptions.
However, construction costs remain a top concern for contractors as prices look set to increase this year due to surging prices of ocean freight and fuel.
Industry players also expect the licensing scheme for materials importers to affect prices of concrete aggregates by up to 30 percent.
Dr Sujit Ghosh, President of Ready Mixed Concrete Association, said: "It will show some moderate increases in the overall or the average costing of aggregates because you add in the factor - which is the transportation from the non-traditional distant sources - it's basically about S$15 per tonne difference, which comes about by way of shipping cost."
Desmond Hill, President of Singapore Contractor Association, said: "In a matter of three months, steel bar prices have gone up by about S$150. There is this fear that if it spirals up too high, contractors will then be made to bear the crunch.
"I have some advice for developers out there. If they can basically share risk of the essential components of basic construction materials, this will help minimise the uncertainty in prices."
To ease the demand on construction resources, the government will defer more public building projects.
Some S$2 billion worth of public sector developments will be rescheduled to 2010 and beyond. It also plans to bring in more professionals and foreign workers.
This includes expanding the capacity of the BCA's 20 Overseas Testing Centres to facilitate entry of foreign workers. Five more centres are expected to be ready by mid-2008.
Another focus is to develop environmentally sustainable buildings. It is hoped that the industry can tap on the available funds to adopt greater use of green technology for their projects.
The BCA said in 2007, some 39 buildings have been Green Mark certified and so far this year, about 120 projects have been lined up for assessment.
New guidelines on concrete usage will be introduced later this month. The BCA will also be launching guidebooks on the use of steel and recycled materials. - CNA/so
Atrium@Orchard Up For Sale For At Least $1b
Source : The Straits Times, Jan 15, 2008
A BUILDING which could become Orchard Road's most expensive office property has been put up for sale for at least $1 billion.
The Atrium@Orchard, above the Dhoby Ghaut MRT station, is being sold by the Singapore Land Authority.
If it attracts an expected price of at least $2,700 per sq ft (psf) of net lettable area, it will be the most expensive office property in Orchard Road, said CB Richard Ellis (CBRE), which is handling the sale.
Boasting two office towers of seven and 10 storeys, and ground floor retail space, the property has a net floor area of 34,620 sq m. It will be sold with a fresh 99-year lease. Anchor tenants at the Grade A office building include Temasek Holdings, Barclays Capital and MTV Asia.
The expected yield on the property, which has a mix of new and old leases, is about 2.5 per cent. Foreign funds and even Singapore real estate investment trusts are expected to show interest, said CBRE's executive director for investment properties, Mr Jeremy Lake. Upon rent renewal, the property's yield could go up to 4.5 per cent, he said.
'The absence of new office supply coming up in Orchard Road will fuel rental growth,' said Mr Lake. Just one new building VisionCrest is slated to be built in the nearby Oxley area.
Current office rents at The Atrium@Orchard are around $14 to $16 psf while the retail space is going for about $17 to $20 psf, said Mr Lake.
The sale of The Atrium @ Orchard is by an expression of interest exercise that will close on Feb 22. Its expected price is similar to One George Street, an office building on the fringe of Raffles Place.
The current record for the sale of office space is$2,780 psf of net lettable area - set in August by a Goldman Sachs-linked fund when it bought Chevron House in Raffles Place.
--------------------------------------------------------------------------------
If Atrium@Orchard attracts an expected price of at least $2,700 psf of net lettable area, it will be the most expensive office property in Orchard Road, says CBRE.
A BUILDING which could become Orchard Road's most expensive office property has been put up for sale for at least $1 billion.
The Atrium@Orchard, above the Dhoby Ghaut MRT station, is being sold by the Singapore Land Authority.
If it attracts an expected price of at least $2,700 per sq ft (psf) of net lettable area, it will be the most expensive office property in Orchard Road, said CB Richard Ellis (CBRE), which is handling the sale.Boasting two office towers of seven and 10 storeys, and ground floor retail space, the property has a net floor area of 34,620 sq m. It will be sold with a fresh 99-year lease. Anchor tenants at the Grade A office building include Temasek Holdings, Barclays Capital and MTV Asia.
The expected yield on the property, which has a mix of new and old leases, is about 2.5 per cent. Foreign funds and even Singapore real estate investment trusts are expected to show interest, said CBRE's executive director for investment properties, Mr Jeremy Lake. Upon rent renewal, the property's yield could go up to 4.5 per cent, he said.
'The absence of new office supply coming up in Orchard Road will fuel rental growth,' said Mr Lake. Just one new building VisionCrest is slated to be built in the nearby Oxley area.
Current office rents at The Atrium@Orchard are around $14 to $16 psf while the retail space is going for about $17 to $20 psf, said Mr Lake.
The sale of The Atrium @ Orchard is by an expression of interest exercise that will close on Feb 22. Its expected price is similar to One George Street, an office building on the fringe of Raffles Place.
The current record for the sale of office space is$2,780 psf of net lettable area - set in August by a Goldman Sachs-linked fund when it bought Chevron House in Raffles Place.
--------------------------------------------------------------------------------
If Atrium@Orchard attracts an expected price of at least $2,700 psf of net lettable area, it will be the most expensive office property in Orchard Road, says CBRE.
Freehold GCB Site Off Holland Road On Sale For $41m
Source : The Business Times, January 15, 2008
A FREEHOLD good class bungalow (GCB) development site at 11 Ford Avenue has been put up for sale and the indicative price is $41 million.
This works out to about $893 per square foot for the 45,894 square feet site which is off Holland Road.
A single-storey bungalow currently sits on the site, which is being marketed by Colliers International.
Ho Eng Joo, executive director of investment sales at Colliers, says that the buyer of the site is likely to redevelop it, as up to three GCBs of around 15,000 sq ft can be built there. 'Good class bungalows are in high demand in land scarce Singapore,' he added.
Mr Ho estimates that at the indicative price of $41 million, and construction cost of between $1.5 million and $2 million for a bungalow, the breakeven price for a single bungalow is about $16 million.
Prices of prime landed property has been increasing.
Recent benchmark transactions include $25.5 million or $1,899 psf for a house in Nassim Road in October 2007.
In August 2007, a conservation bungalow at White House Park sold for $28.8 million or $1,308 psf.
Closer to Ford Avenue, Mr Ho said, recent transactions of GCB land include sites at Ridley Park for around $1,000 and Chatsworth for around $950 psf.
He said that given the strategic location of the site, which is within walking distance of Holland Village and not far from the Orchard/Scotts Road shopping belt, he expects to see keen interest from developers and high net worth individuals.
A FREEHOLD good class bungalow (GCB) development site at 11 Ford Avenue has been put up for sale and the indicative price is $41 million.
This works out to about $893 per square foot for the 45,894 square feet site which is off Holland Road.
A single-storey bungalow currently sits on the site, which is being marketed by Colliers International.
Ho Eng Joo, executive director of investment sales at Colliers, says that the buyer of the site is likely to redevelop it, as up to three GCBs of around 15,000 sq ft can be built there. 'Good class bungalows are in high demand in land scarce Singapore,' he added.
Mr Ho estimates that at the indicative price of $41 million, and construction cost of between $1.5 million and $2 million for a bungalow, the breakeven price for a single bungalow is about $16 million.
Prices of prime landed property has been increasing.
Recent benchmark transactions include $25.5 million or $1,899 psf for a house in Nassim Road in October 2007.
In August 2007, a conservation bungalow at White House Park sold for $28.8 million or $1,308 psf.
Closer to Ford Avenue, Mr Ho said, recent transactions of GCB land include sites at Ridley Park for around $1,000 and Chatsworth for around $950 psf.
He said that given the strategic location of the site, which is within walking distance of Holland Village and not far from the Orchard/Scotts Road shopping belt, he expects to see keen interest from developers and high net worth individuals.
The Atrium @ Orchard Up For Sale At Over $1b
Source : The Business Times, January 15, 2008
Separately, Hitachi Tower said to have changed hands for record $3,000 psf
ACTIVITY in the office market looks set to continue. The Singapore Land Authority (SLA) yesterday launched The Atrium @ Orchard with a fresh 99-year lease and a price tag above $2,700 per square foot.
Prime property: The Atrium @ Orchard will be sold with a fresh 99-year lease that starts in mid-2008 and a price tag of above $2,700 psf
Separately, CapitaLand and the National University of Singapore are said to have signed a deal to sell the 999-year leasehold Hitachi Tower at Collyer Quay for about $3,000 psf.
SLA is selling The Atrium @ Orchard, which is directly linked to the Dhoby Ghaut MRT station, through an expression-of-interest exercise. This is being handled by CB Richard Ellis (CBRE), which was appointed last year as the sole marketing consultant for the property.
'We expect bids above $2,700 psf on the net lettable area to be received,' CBRE executive director of investment properties Jeremy Lake said in an SLA statement yesterday.
'There is pent-up demand for Grade A office assets from foreign and local investors. The absence of new office supply coming up in Orchard Road will fuel rental growth.'
The property will be sold with a fresh 99-year lease that starts in mid-2008. CBRE's price expectation is benchmarked against the $2,700 psf achieved last year for One George Street, on a site with a 99-year leasehold tenure from January 2003.
'The two properties are of similar quality, though in different locations,' Mr Lake said yesterday when contacted.
The Atrium @ Orchard, completed in 2002, comprises two office towers of seven and 10 storeys each, with ground-floor retail space. It has a net floor area of 372,650 sq ft, so the price tag of $2,700-plus psf translates into a total price of over $1 billion. The property is fully occupied. Anchor tenants include Temasek Holdings, Barclays Capital and MTV Asia.
This is the first sale of a Grade A prime commercial building by the state. The expression-of-interest exercise closes on Feb 22.
Over in the financial district, the sale of Hitachi Tower for around $3,000 psf is said to have finally been sealed recently. BT understands that the buyer is a Goldman Sachs fund. Goldman Sachs bought the next-door Chevron House, formerly known as Caltex House, for $2,780 psf in August last year. Chevron House is on a site that had a remaining lease of 81 years at the time of the transaction.
Hitachi Tower has a better orientation. Another important difference between the two buildings is that in Chevron House, major tenant Chevron's rent is capped, which limits the near-term rental upside that the new owner can achieve, according to earlier BT reports.
The $3,000 psf price achieved for the 37-storey Hitachi Tower is a record for an entire office block
Separately, Hitachi Tower said to have changed hands for record $3,000 psf
ACTIVITY in the office market looks set to continue. The Singapore Land Authority (SLA) yesterday launched The Atrium @ Orchard with a fresh 99-year lease and a price tag above $2,700 per square foot.
Prime property: The Atrium @ Orchard will be sold with a fresh 99-year lease that starts in mid-2008 and a price tag of above $2,700 psfSeparately, CapitaLand and the National University of Singapore are said to have signed a deal to sell the 999-year leasehold Hitachi Tower at Collyer Quay for about $3,000 psf.
SLA is selling The Atrium @ Orchard, which is directly linked to the Dhoby Ghaut MRT station, through an expression-of-interest exercise. This is being handled by CB Richard Ellis (CBRE), which was appointed last year as the sole marketing consultant for the property.
'We expect bids above $2,700 psf on the net lettable area to be received,' CBRE executive director of investment properties Jeremy Lake said in an SLA statement yesterday.
'There is pent-up demand for Grade A office assets from foreign and local investors. The absence of new office supply coming up in Orchard Road will fuel rental growth.'
The property will be sold with a fresh 99-year lease that starts in mid-2008. CBRE's price expectation is benchmarked against the $2,700 psf achieved last year for One George Street, on a site with a 99-year leasehold tenure from January 2003.
'The two properties are of similar quality, though in different locations,' Mr Lake said yesterday when contacted.
The Atrium @ Orchard, completed in 2002, comprises two office towers of seven and 10 storeys each, with ground-floor retail space. It has a net floor area of 372,650 sq ft, so the price tag of $2,700-plus psf translates into a total price of over $1 billion. The property is fully occupied. Anchor tenants include Temasek Holdings, Barclays Capital and MTV Asia.
This is the first sale of a Grade A prime commercial building by the state. The expression-of-interest exercise closes on Feb 22.
Over in the financial district, the sale of Hitachi Tower for around $3,000 psf is said to have finally been sealed recently. BT understands that the buyer is a Goldman Sachs fund. Goldman Sachs bought the next-door Chevron House, formerly known as Caltex House, for $2,780 psf in August last year. Chevron House is on a site that had a remaining lease of 81 years at the time of the transaction.
Hitachi Tower has a better orientation. Another important difference between the two buildings is that in Chevron House, major tenant Chevron's rent is capped, which limits the near-term rental upside that the new owner can achieve, according to earlier BT reports.
The $3,000 psf price achieved for the 37-storey Hitachi Tower is a record for an entire office block
Telok Blangah, HarbourFront Set To Get More Waterfront Homes
Source : The Business Times, January 15, 2008
But areas closest to Mt Faber unlikely to achieve much higher plot ratios: JLL
More waterfront homes, some tucked into the lower part of Mount Faber, could spring up in the Telok Blangah and HarbourFront precincts under Master Plan 2008, according to a recent study by Jones Lang LaSalle.
The impetus for more intensive use of residential land in these locations - which include a few sites currently occupied by Housing and Development Board flats - is the improved accessibility these precincts will enjoy because of the new Circle Line.
Another factor is a spillover of the hype from nearby developments like VivoCity, the nightspot at the restored St James Power Station, Reflections at Keppel Bay condo and Resorts World at Sentosa.
However, the areas closest to Mount Faber are unlikely to see much intensification in land use as they are part of a proposal to connect the ridges from Mount Faber to West Coast Park under the Urban Redevelopment Authority's 2002 Identity Plan study, JLL reckons.
'The recent market interest and demand for waterfront housing is likely to give planners the confidence to embark on more bold plans to capitalise on these features - hills overlooking the waters - around these two precincts but careful not to impinge on the natural landscape,' says JLL's head of research (South-east Asia) Chua Yang Liang. 'Hence we can expect higher plot ratios but with urban control, that is, height limit. The likes of Mediterranean-style waterfront housing tucked into the hills is not difficult to imagine.'
Generally, JLL expects sites closer to the sea or near Mount Faber to be accorded low plot ratios - of 1.4 and 1.6 respectively - with accompanying height limits of five storeys and 12 storeys respectively. This is to ensure that residential developments further inland will be able to enjoy the water views, and that similarly, the view of Mount Faber from Sentosa will not be obstructed.
Most of these seafronting and foothills sites identified in JLL's study are owned by the state and are either vacant or being used for car parks, a bus terminus and a food centre. They are all zoned for residential use under the existing Master Plan 2003 but without any plot ratios specified as they are subject to detailed planning.
However, JLL also highlighted four sites further away from Mount Faber and the waterways which it said stood a chance of being accorded higher plot ratios, ranging from 2.8 to 3.5, because of their proximity to the new Telok Blangah Station on the Circle Line. Two of these sites are now occupied by HDB flats while the other two are vacant state sites which could be suitable for sale to developers for residential projects, JLL suggests.
However, another plot flanked by Morse and Wishart roads and comprising vacant state land and private shophouses - currently zoned for residential use, without any plot ratio specified - is likely to be accorded a plot ratio of only 1.4 and a five-storey height limit, JLL reckons. This is to ensure that any new developments there will not block the views of colonial black-and-white houses and other buildings along and on the apex of Mount Faber, JLL argues.
The government last year ruled out major across-the-board plot ratio increases in the upcoming Master Plan 2008 - a pronouncement that some property market watchers say may have been aimed at avoiding fanning the en bloc fever at the time. But JLL has argued for selective plot ratio increases under MP 2008, mostly for vacant state land near Circle Line stations, especially at intersections with other MRT lines.
It even suggests that a site close to the new Telok Blangah MRT Station currently occupied by two private condos - Fairways and Harbour View Towers - could see its plot ratio raised from the present 2.1 to 2.8, because the site is close to the new station.
'However, bearing in mind that these two developments are on private land, the plot ratio is not likely to be increased to as high as the 3.5 designated for some surrounding residential sites (occupied by HDB flats) to ensure that windfall gains from intensifying land use are socially equitable and not excessively accorded to a few private individuals/landowners,' JLL added.
'Historically, the districts along Singapore's western coastline were dotted with exclusive homes - sitting on a hill and overlooking the sea - until port activities were extended to Pasir Panjang,' Dr Chua notes. 'Nevertheless, the intrinsic attractions of this location remain; and the transformation of the area has already begun with the new developments in the HarbourFront location and Sentosa. It may take more time before gentrification spreads to the Pasir Panjang area, but Telok Blangah and HarbourFront are definitely two precincts that are ripe for this transformation.'
But areas closest to Mt Faber unlikely to achieve much higher plot ratios: JLL
More waterfront homes, some tucked into the lower part of Mount Faber, could spring up in the Telok Blangah and HarbourFront precincts under Master Plan 2008, according to a recent study by Jones Lang LaSalle.
The impetus for more intensive use of residential land in these locations - which include a few sites currently occupied by Housing and Development Board flats - is the improved accessibility these precincts will enjoy because of the new Circle Line.
Another factor is a spillover of the hype from nearby developments like VivoCity, the nightspot at the restored St James Power Station, Reflections at Keppel Bay condo and Resorts World at Sentosa.
However, the areas closest to Mount Faber are unlikely to see much intensification in land use as they are part of a proposal to connect the ridges from Mount Faber to West Coast Park under the Urban Redevelopment Authority's 2002 Identity Plan study, JLL reckons.
'The recent market interest and demand for waterfront housing is likely to give planners the confidence to embark on more bold plans to capitalise on these features - hills overlooking the waters - around these two precincts but careful not to impinge on the natural landscape,' says JLL's head of research (South-east Asia) Chua Yang Liang. 'Hence we can expect higher plot ratios but with urban control, that is, height limit. The likes of Mediterranean-style waterfront housing tucked into the hills is not difficult to imagine.'
Generally, JLL expects sites closer to the sea or near Mount Faber to be accorded low plot ratios - of 1.4 and 1.6 respectively - with accompanying height limits of five storeys and 12 storeys respectively. This is to ensure that residential developments further inland will be able to enjoy the water views, and that similarly, the view of Mount Faber from Sentosa will not be obstructed.
Most of these seafronting and foothills sites identified in JLL's study are owned by the state and are either vacant or being used for car parks, a bus terminus and a food centre. They are all zoned for residential use under the existing Master Plan 2003 but without any plot ratios specified as they are subject to detailed planning.
However, JLL also highlighted four sites further away from Mount Faber and the waterways which it said stood a chance of being accorded higher plot ratios, ranging from 2.8 to 3.5, because of their proximity to the new Telok Blangah Station on the Circle Line. Two of these sites are now occupied by HDB flats while the other two are vacant state sites which could be suitable for sale to developers for residential projects, JLL suggests.
However, another plot flanked by Morse and Wishart roads and comprising vacant state land and private shophouses - currently zoned for residential use, without any plot ratio specified - is likely to be accorded a plot ratio of only 1.4 and a five-storey height limit, JLL reckons. This is to ensure that any new developments there will not block the views of colonial black-and-white houses and other buildings along and on the apex of Mount Faber, JLL argues.
The government last year ruled out major across-the-board plot ratio increases in the upcoming Master Plan 2008 - a pronouncement that some property market watchers say may have been aimed at avoiding fanning the en bloc fever at the time. But JLL has argued for selective plot ratio increases under MP 2008, mostly for vacant state land near Circle Line stations, especially at intersections with other MRT lines.
It even suggests that a site close to the new Telok Blangah MRT Station currently occupied by two private condos - Fairways and Harbour View Towers - could see its plot ratio raised from the present 2.1 to 2.8, because the site is close to the new station.
'However, bearing in mind that these two developments are on private land, the plot ratio is not likely to be increased to as high as the 3.5 designated for some surrounding residential sites (occupied by HDB flats) to ensure that windfall gains from intensifying land use are socially equitable and not excessively accorded to a few private individuals/landowners,' JLL added.
'Historically, the districts along Singapore's western coastline were dotted with exclusive homes - sitting on a hill and overlooking the sea - until port activities were extended to Pasir Panjang,' Dr Chua notes. 'Nevertheless, the intrinsic attractions of this location remain; and the transformation of the area has already begun with the new developments in the HarbourFront location and Sentosa. It may take more time before gentrification spreads to the Pasir Panjang area, but Telok Blangah and HarbourFront are definitely two precincts that are ripe for this transformation.'
Greenspan Sees US In Or Near Recession: WSJ
Source : The Straits Times, Jan 15, 2008
NEW YORK - THE US economy is probably in a recession or about to slide into it, former US Federal Reserve Chairman Alan Greenspan said in an interview with The Wall Street Journal.
The odds are 'not overwhelming but they are marginally in that direction', he was quoted as saying in the interview, published on Tuesday.
'The symptoms are clearly there. Recessions don't happen smoothly. They are usually signaled by a discontinuity in the market place, and the data of recent weeks could very well be characterized in that manner,' he said.
Mr Greenspan was reported in December as saying that he saw chances of a US economic recession at around 50 per cent, compared with his previous view of a 30 per cent chance.
In the latest interview, he referred to a drop in the Institute for Supply Management's purchasing managers index as well as the rise in unemployment in December, and said the odds of a recession were still close to 50 per cent but 'more likely higher than lower'.
Mr Greenspan is set to join hedge-fund firm Paulson & Co as an adviser, the Journal said.
New York-based Paulson, with assets of US$28 billion (S$40 billion), is set to make the announcement on Tuesday, it said.
Mr Greenspan has been criticised by some for keeping the trendsetting federal funds rate at a low one per cent from June 2003 through June 2004, which some say contributed to a housing bubble that is now bursting.
Paulson & Co was among hedge fund industry's big winners in 2007 after it bet against subprime mortgages. -- REUTERS
NEW YORK - THE US economy is probably in a recession or about to slide into it, former US Federal Reserve Chairman Alan Greenspan said in an interview with The Wall Street Journal.
The odds are 'not overwhelming but they are marginally in that direction', he was quoted as saying in the interview, published on Tuesday.
'The symptoms are clearly there. Recessions don't happen smoothly. They are usually signaled by a discontinuity in the market place, and the data of recent weeks could very well be characterized in that manner,' he said.
Mr Greenspan was reported in December as saying that he saw chances of a US economic recession at around 50 per cent, compared with his previous view of a 30 per cent chance.
In the latest interview, he referred to a drop in the Institute for Supply Management's purchasing managers index as well as the rise in unemployment in December, and said the odds of a recession were still close to 50 per cent but 'more likely higher than lower'.
Mr Greenspan is set to join hedge-fund firm Paulson & Co as an adviser, the Journal said.
New York-based Paulson, with assets of US$28 billion (S$40 billion), is set to make the announcement on Tuesday, it said.
Mr Greenspan has been criticised by some for keeping the trendsetting federal funds rate at a low one per cent from June 2003 through June 2004, which some say contributed to a housing bubble that is now bursting.
Paulson & Co was among hedge fund industry's big winners in 2007 after it bet against subprime mortgages. -- REUTERS
Upgraded Ang Mo Kio Central Maket Centre Reopens
Source : The Straits Times, Jan 15, 2008
AFTER nine months of upgrading work at a cost of $4 million, the stallholders of Block 724 at Ang Mo Kio Avenue 6 will resume business in the newly refurbished hawker centre on Wednesday.
The refurbished single-storey market and food centre comprises 45 cooked food stalls, 30 lock-up stalls and 48 market stalls. -- PHOTO: NEA
The 28-year-old market and food centre, which was closed for upgrading since Apr 1, has been given a facelift under the National Environment Agency's Hawker Centres Upgrading Programme (HUP).
The HUP was launched in Feb 2001 to give hawker centres a facelift and improved facilities. The NEA says the upgrading programme includes re-tiling, installing new tables and stools, replacing utility services, improving ventilation, bin centres and toilets and providing exhaust systems.
The refurbished single-storey market and food centre comprises 45 cooked food stalls, 30 lock-up stalls and 48 market stalls.
Nestled in the popular Ang Mo Kio Town Centre, it is surrounded by nearby amenities such as low-rise shophouses, polyclinic, mosque and a cinema.
When reopened, the centre will boast a higher seating capacity of 196 tables, compared to the previous 123 tables.
The food centre will also feature multi-colored glass louvres and elderly and handicapped-friendly facilities like ramps and wheelchair-friendly tables.
The NEA now manages 112 markets and food centres. To date, 62 such centres have been upgraded.
AFTER nine months of upgrading work at a cost of $4 million, the stallholders of Block 724 at Ang Mo Kio Avenue 6 will resume business in the newly refurbished hawker centre on Wednesday.
The refurbished single-storey market and food centre comprises 45 cooked food stalls, 30 lock-up stalls and 48 market stalls. -- PHOTO: NEAThe 28-year-old market and food centre, which was closed for upgrading since Apr 1, has been given a facelift under the National Environment Agency's Hawker Centres Upgrading Programme (HUP).
The HUP was launched in Feb 2001 to give hawker centres a facelift and improved facilities. The NEA says the upgrading programme includes re-tiling, installing new tables and stools, replacing utility services, improving ventilation, bin centres and toilets and providing exhaust systems.
The refurbished single-storey market and food centre comprises 45 cooked food stalls, 30 lock-up stalls and 48 market stalls.
Nestled in the popular Ang Mo Kio Town Centre, it is surrounded by nearby amenities such as low-rise shophouses, polyclinic, mosque and a cinema.
When reopened, the centre will boast a higher seating capacity of 196 tables, compared to the previous 123 tables.
The food centre will also feature multi-colored glass louvres and elderly and handicapped-friendly facilities like ramps and wheelchair-friendly tables.
The NEA now manages 112 markets and food centres. To date, 62 such centres have been upgraded.
Space Surge May Slow Orchard Rd Rent Rises
Source : The Straits Times, Jan 15, 2008
Almost 2m sq ft to be added between now and 2011
AN IMPENDING surge of new shop space in Orchard Road may put the brakes on the growth of retail rents along the shopping stretch.
Almost two million sq ft of new retail gross floor area is set to open in the area between now and 2011, said property firm Knight Frank.
That is about one-third the current retail space on Orchard Road and double the size of Ngee Ann City.
Most of it will come from new malls, with two - Ion Orchard and Orchard Central - due to be completed this year. They are the first new malls to open in Orchard Road in a decade.
Some consultants say the huge increase in retail space in the next few years may make it hard for mall landlords along the prime shopping belt to keep raising rents at the current pace.
But they add that more outlets may not lead to oversupply as long as shopper demand and tourist numbers keep growing.
Knight Frank's deputy managing director Danny Yeo said the new malls could achieve benchmark rentals, but some older properties may feel the heat.
Monthly rents along Orchard Road grew at a slower 2.6 per cent to hit $45.50 per sq ft at the end of last year, said Knight Frank.
It expects islandwide prime retail rentals to rise a smaller 10 per cent to 15 per cent for this year, down from last year's 22.1 per cent.
This is mainly due to the influx of new space. This year alone, 930,000 sq ft of new shops could come up in Orchard and Scotts Roads, said consultancy DTZ Debenham Tie Leung. Besides the new malls, the additional space includes extensions to existing buildings.
The latest to jump on the bandwagon are Paragon Shopping Centre, as well as Specialists' Shopping Centre and the adjacent Hotel Phoenix. They revealed upgrading plans last week.
Experts lauded these plans. 'This is a chance for older malls to revamp, or introduce new retailers, or change their concepts,' said Jones Lang LaSalle retail director Daisy Loo.
Wisma Atria, for one, added several new stores last year. Some are from first-time retailers in Singapore, such as Australia's Cotton On, French footwear label Schu and Brazilian fashion store Beijaflor.
Mall owners say that they welcome the new shopping centres, and do not view them as competition.
'Our belief is that the number of shoppers to Orchard Road will increase significantly with the new supply,' said Ms Amy Lim, general manager of pro- perty management at Macquarie Pacific Star.
CapitaLand Retail, which is building Ion Orchard, also sees minimal conflict between the new and old malls.
Chief executive Pua Seck Guan said most of the retailers that Ion Orchard is drawing in are not moving from existing Orchard Road locations. Sixty per cent will be new to Singapore, trying new concepts or opening a flagship store.
Almost 2m sq ft to be added between now and 2011
AN IMPENDING surge of new shop space in Orchard Road may put the brakes on the growth of retail rents along the shopping stretch.
Almost two million sq ft of new retail gross floor area is set to open in the area between now and 2011, said property firm Knight Frank.
That is about one-third the current retail space on Orchard Road and double the size of Ngee Ann City.
Most of it will come from new malls, with two - Ion Orchard and Orchard Central - due to be completed this year. They are the first new malls to open in Orchard Road in a decade.
Some consultants say the huge increase in retail space in the next few years may make it hard for mall landlords along the prime shopping belt to keep raising rents at the current pace.
But they add that more outlets may not lead to oversupply as long as shopper demand and tourist numbers keep growing.
Knight Frank's deputy managing director Danny Yeo said the new malls could achieve benchmark rentals, but some older properties may feel the heat.
Monthly rents along Orchard Road grew at a slower 2.6 per cent to hit $45.50 per sq ft at the end of last year, said Knight Frank.
It expects islandwide prime retail rentals to rise a smaller 10 per cent to 15 per cent for this year, down from last year's 22.1 per cent.
This is mainly due to the influx of new space. This year alone, 930,000 sq ft of new shops could come up in Orchard and Scotts Roads, said consultancy DTZ Debenham Tie Leung. Besides the new malls, the additional space includes extensions to existing buildings.
The latest to jump on the bandwagon are Paragon Shopping Centre, as well as Specialists' Shopping Centre and the adjacent Hotel Phoenix. They revealed upgrading plans last week.
Experts lauded these plans. 'This is a chance for older malls to revamp, or introduce new retailers, or change their concepts,' said Jones Lang LaSalle retail director Daisy Loo.
Wisma Atria, for one, added several new stores last year. Some are from first-time retailers in Singapore, such as Australia's Cotton On, French footwear label Schu and Brazilian fashion store Beijaflor.
Mall owners say that they welcome the new shopping centres, and do not view them as competition.
'Our belief is that the number of shoppers to Orchard Road will increase significantly with the new supply,' said Ms Amy Lim, general manager of pro- perty management at Macquarie Pacific Star.
CapitaLand Retail, which is building Ion Orchard, also sees minimal conflict between the new and old malls.
Chief executive Pua Seck Guan said most of the retailers that Ion Orchard is drawing in are not moving from existing Orchard Road locations. Sixty per cent will be new to Singapore, trying new concepts or opening a flagship store.