《联合早报》Feb 27, 2008
尽管新加坡房地产市场自去年10月开始转淡，东海岸第15邮区一带的麦雅路（Meyer Road）过去几个月没有“闲”下来，一直都有买卖交易。
继今年开年以来正式推出市场的私宅项目Aalto，位于麦雅路附近的炮台路（Fort Road)的16所排屋昨天寻求集体出售，公开招标，预示价为9500万元。
炮台路29号至59号的16间排屋，统称Fort Terrace，占地4万7886平方英尺，属于永久地契，在2003年的发展总蓝图下，被划分为住宅区，容积率为2.1。招标截止日期为3月26日。
负责代理销售的高力国际（Colliers）投资销售部主管何永裕表示，这个长方型地段可重新发展为拥有67个，单位面积为1500平方英尺的中高档公寓，以目前麦雅路附近项目售价作为参考，这个地段的新项目售价预计可达每平方英尺2000元左右。
他估计，这个地段的发展费为2300万元，发展商如果以640万元买下附近约1万964平方英尺的国有土地，以可建筑楼面(GFA)来计算，总收购价将为每平方英尺1238元。
由于所有的业主都答应出售，无需分层地契局（STB）批准，何永裕相信，出售过程要比一般的集体出售项目短六至九个月。
以9500万元的售价来计算，每名业主将获得约480万元，要比单独出售来得高一倍。
何永裕指出，麦雅路在淡静的房地产市场中继续“活跃”是由于这段路面海，是东海岸一带的首选之地，靠近市区，但每平方英尺售价是乌节路等黄金地段的一半。
根据市区重建局公布的一月份私宅数据，位于麦雅路，拥有196个单位的Aalto，已卖出了大约80％，中数价格为每平方英尺2078元。附近拥有 327个单位的The Seafront on Meyer，成交价则介于每平方英尺1339元至1700元，卖出了将近90％。
此外，速美集团（Soilbuild Group）去年11月以3080万元买下临近麦雅路的玛格路10号。这1万6967平方英尺的永久地契地段将衔接玛格大厦（12 Margate Mansion），即集团在去年8月份以5800万元买下的永久地契地段。综合两地，扩大面积为5万1771平方英尺，可发展成50至70个平均1500 至2000平方英尺的豪华住宅单位。两地的总收购价约为容积率每平方英尺987元。
麦雅路除了是买卖市场的宠儿，也是租屋者，尤其是外籍租户青睐的地方。根据近期的市场调查报告，麦雅路是过去一年来租金涨幅最显著的地区之一，租金涨了超过40％，中数月租约每平方英尺2.62元。
Wednesday, February 27, 2008
义顺一执行共管公寓地段被列入售地计划备售名单
《联合早报》Feb 27, 2008
建屋局把位于义顺11道的一幅执行共管公寓（EC）地段列入政府售地计划的备售名单（reserve list），让执行共管公寓市场有望添加新成员。
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位于百合苑（Lilydale）执行共管公寓隔壁的这幅地段，占地1万5080平方米，容积率为2.8，可建筑楼面为4万2224平方米，属于99年地契。
这是政府准备在今年推出的三个执行共管公寓地段当中的第一幅地段。裕廊西和盛港的地段预计将在3月和4月通过政府售地计划的备售名单出售。三幅地段总共可建1300个单位。
尽管执行共管公寓近来有“死灰复燃”的迹象，受访市场人士对该地段的看法不一。
市场看法不一
第一太平戴维斯（Savills)行销与业务开发主管邱瑞荣表示，义顺一带已经有一段时间没有新执行共管公寓项目登场，而鉴于这一带是成熟住宅区，地段距离地铁站、购物中心、巴士转换站不远，与高尔夫球场和蓄水池毗邻，相信会受到许多年轻新婚夫妇和地段周围组屋提升者的欢迎。
以兀兰16通道的佳乐园（La Casa）执行共管公寓地段近期取得的约每平方英尺600元售价来看，邱瑞荣预计，这幅地段将能兴建约400个面积为1200平方英尺的单位，售价预计为650元左右。
考虑到目前新组屋非常抢手，大众化私宅需求将保持强劲，邱瑞荣相信，这幅地段很快就会被“勾”出来公开招标，发展商可能会出价每平方英尺200元左右。
由于义顺11道的这幅地段被列入备售名单，发展商若有意投标，必须向建屋局提呈申请，表明最低标价。如果底价获得批准，该局将把地段推出市场，供所有有兴趣竞标的发展商投标。另一方面，考虑到建筑费居高不下，莱坊（Knight Frank）研究部主管麦俊荣对这个地段不表乐观。
他说：“建筑费从过去的100多元高涨至200多甚至是300元，这将打压这类大众化住宅地段的土地售价。由于发展商无法为这些地段制订太高的售价，建筑费越高，它们的利润将进一步缩水，以致他们不愿发展这类项目。”
由于隔壁的百合苑去年3月和5月的成交价介于每平方英尺331元和356元，而本地房地产市场已出现趋软的迹象，麦俊荣认为发展商的反应将相当冷淡，预计该地段只能吸引每平方英尺介于80元至130元的标价。
建屋局把位于义顺11道的一幅执行共管公寓（EC）地段列入政府售地计划的备售名单（reserve list），让执行共管公寓市场有望添加新成员。
+Logo.jpg)
位于百合苑（Lilydale）执行共管公寓隔壁的这幅地段，占地1万5080平方米，容积率为2.8，可建筑楼面为4万2224平方米，属于99年地契。这是政府准备在今年推出的三个执行共管公寓地段当中的第一幅地段。裕廊西和盛港的地段预计将在3月和4月通过政府售地计划的备售名单出售。三幅地段总共可建1300个单位。
尽管执行共管公寓近来有“死灰复燃”的迹象，受访市场人士对该地段的看法不一。
市场看法不一
第一太平戴维斯（Savills)行销与业务开发主管邱瑞荣表示，义顺一带已经有一段时间没有新执行共管公寓项目登场，而鉴于这一带是成熟住宅区，地段距离地铁站、购物中心、巴士转换站不远，与高尔夫球场和蓄水池毗邻，相信会受到许多年轻新婚夫妇和地段周围组屋提升者的欢迎。
以兀兰16通道的佳乐园（La Casa）执行共管公寓地段近期取得的约每平方英尺600元售价来看，邱瑞荣预计，这幅地段将能兴建约400个面积为1200平方英尺的单位，售价预计为650元左右。
考虑到目前新组屋非常抢手，大众化私宅需求将保持强劲，邱瑞荣相信，这幅地段很快就会被“勾”出来公开招标，发展商可能会出价每平方英尺200元左右。
由于义顺11道的这幅地段被列入备售名单，发展商若有意投标，必须向建屋局提呈申请，表明最低标价。如果底价获得批准，该局将把地段推出市场，供所有有兴趣竞标的发展商投标。另一方面，考虑到建筑费居高不下，莱坊（Knight Frank）研究部主管麦俊荣对这个地段不表乐观。
他说：“建筑费从过去的100多元高涨至200多甚至是300元，这将打压这类大众化住宅地段的土地售价。由于发展商无法为这些地段制订太高的售价，建筑费越高，它们的利润将进一步缩水，以致他们不愿发展这类项目。”
由于隔壁的百合苑去年3月和5月的成交价介于每平方英尺331元和356元，而本地房地产市场已出现趋软的迹象，麦俊荣认为发展商的反应将相当冷淡，预计该地段只能吸引每平方英尺介于80元至130元的标价。
CapitaLand Says Vietnam Market Is 2nd Most Important After S'pore
Source : Channel NewsAsia, 27 February 2008
DANANG, Vietnam: Property developer CapitaLand said it views the Vietnam market as being the second most important market for itself after Singapore.
President and CEO Liew Mun Leong has likened the growth potential of Vietnam to Chinese cities like Shanghai and Guangzhou.
To help the company expand in Vietnam, CapitaLand has formed a strategic partnership with another Vietnamese developer.
Urbanisation in Vietnam is growing fast, fuelled by strong economic growth. The United Nations has estimated that by 2015, one third of Vietnam's population will live in cities, creating a wealth of opportunities for property developers like CapitaLand.
Mr Liew said: "I see Vietnam as the second best growth area, the second best growth engine for us in Southeast Asia, next to Singapore. The dynamics of this market are the same as what I saw in Shanghai, Beijing and Guangzhou ten years ago. It has identical growth factors and identical prospects of urbanisation, economic growth and a demand for housing and real estate."
To better ride the development boom, CapitaLand has formed an alliance with Tham Nam Long Investment Company, a major player in the property scene here.
Together, they plan to develop residential properties, and commercial and residential mixed developments.
CapitaLand has also moved to set up a US$300 million fund to invest in real estate projects in Vietnam.
It has signed a memorandum of understanding with Citi Private Bank to act as the placement agent for the fund. CapitaLand said it intends to take a 30 percent sponsor stake in it.
The developer said late last year that it wants to double the number of residential homes under development to 6,000 over three years.
It is also planning to move into the integrated leisure, entertainment and conventions (ILEC) sector.
CapitaLand already has a presence in Ho Chi Minh City and Hanoi. Now, it wants to go into other cities.
The resort city of Danang is the third busiest port in Vietnam, but it has yet to see foreign investment on the scale enjoyed by Hanoi and Ho Chi Minh City.
Besides real estate, government officials here want to develop Vietnam's potential as a holiday destination, and they are banking on places like Danang to pull in the tourist dollar. - CNA/so
DANANG, Vietnam: Property developer CapitaLand said it views the Vietnam market as being the second most important market for itself after Singapore.
President and CEO Liew Mun Leong has likened the growth potential of Vietnam to Chinese cities like Shanghai and Guangzhou. To help the company expand in Vietnam, CapitaLand has formed a strategic partnership with another Vietnamese developer.
Urbanisation in Vietnam is growing fast, fuelled by strong economic growth. The United Nations has estimated that by 2015, one third of Vietnam's population will live in cities, creating a wealth of opportunities for property developers like CapitaLand.
Mr Liew said: "I see Vietnam as the second best growth area, the second best growth engine for us in Southeast Asia, next to Singapore. The dynamics of this market are the same as what I saw in Shanghai, Beijing and Guangzhou ten years ago. It has identical growth factors and identical prospects of urbanisation, economic growth and a demand for housing and real estate."
To better ride the development boom, CapitaLand has formed an alliance with Tham Nam Long Investment Company, a major player in the property scene here.
Together, they plan to develop residential properties, and commercial and residential mixed developments.
CapitaLand has also moved to set up a US$300 million fund to invest in real estate projects in Vietnam.
It has signed a memorandum of understanding with Citi Private Bank to act as the placement agent for the fund. CapitaLand said it intends to take a 30 percent sponsor stake in it.
The developer said late last year that it wants to double the number of residential homes under development to 6,000 over three years.
It is also planning to move into the integrated leisure, entertainment and conventions (ILEC) sector.
CapitaLand already has a presence in Ho Chi Minh City and Hanoi. Now, it wants to go into other cities.
The resort city of Danang is the third busiest port in Vietnam, but it has yet to see foreign investment on the scale enjoyed by Hanoi and Ho Chi Minh City.
Besides real estate, government officials here want to develop Vietnam's potential as a holiday destination, and they are banking on places like Danang to pull in the tourist dollar. - CNA/so
Ho Bee's Full-Year Profit Jumps 176% To S$272m
Source : Channel NewsAsia, 27 February 2008
A robust property market and a strong economy have helped developer Ho Bee to report record full-year earnings.
Net profit jumped 176 percent on year to S$272 million. This was achieved on the back of record revenues of S$596 million, up 52 percent on year.
Ho Bee's development properties reported higher sales due to the progressive recognition of income from its residential projects, including those at Sentosa Cove, Orange Grove Road and Holland Road.
Its property investment division has continued to benefit from high occupancy levels and improvement in rental rates.
Ho Bee's Chairman and CEO Chua Thian Poh said he is cautiously optimistic about the market outlook.
He cited recent Urban Redevelopment Authority (URA) data that suggested a continued rise of overall prices of residential properties in the fourth quarter, albeit at a lower rate.
URA had said overall prices for residential properties rose 6.8 percent compared to 8.3 percent in the previous quarter. For non-landed properties, the increase was 7.2 percent, against 8.3 percent in the previous quarter.
Year-on-year, overall prices have gone up by 31 percent, while non-landed properties saw a 33 percent increase.
Ho Bee has proposed a one-tier final dividend of 2 cents per share. - CNA/so
A robust property market and a strong economy have helped developer Ho Bee to report record full-year earnings.
Net profit jumped 176 percent on year to S$272 million. This was achieved on the back of record revenues of S$596 million, up 52 percent on year. Ho Bee's development properties reported higher sales due to the progressive recognition of income from its residential projects, including those at Sentosa Cove, Orange Grove Road and Holland Road.
Its property investment division has continued to benefit from high occupancy levels and improvement in rental rates.
Ho Bee's Chairman and CEO Chua Thian Poh said he is cautiously optimistic about the market outlook.
He cited recent Urban Redevelopment Authority (URA) data that suggested a continued rise of overall prices of residential properties in the fourth quarter, albeit at a lower rate.
URA had said overall prices for residential properties rose 6.8 percent compared to 8.3 percent in the previous quarter. For non-landed properties, the increase was 7.2 percent, against 8.3 percent in the previous quarter.
Year-on-year, overall prices have gone up by 31 percent, while non-landed properties saw a 33 percent increase.
Ho Bee has proposed a one-tier final dividend of 2 cents per share. - CNA/so
UOB's Q4 Net Profit Down 5.7% To S$506m
Source : Channel NewsAsia, 27 February 2008
United Overseas Bank (UOB), Singapore's second-biggest lender by assets, posted a 5.7 percent fall in its fourth-quarter profit, as turmoil in credit markets led to more write-downs.
The bank reported net profit of S$506 million for the October-December period, down from S$537 million a year ago.
UOB, which had a smaller exposure to risky debt compared to local industry leader DBS, made fresh provisions of S$128 million for its exposure to debt derivatives and long-term investments in the fourth quarter, bringing its total write-downs in the year to S$300 million.
Net interest income in the fourth quarter was S$743 million, up 5.9 percent from S$702 million a year earlier.
Non-interest income was S$532 million, up 2.9 percent from last year's S$517 million.
In a statement, UOB chief executive Wee Ee Cheong said 2008 "looks set to be a challenging year".
World financial markets have been battered since last August by fallout from a crisis in the US sub-prime, or high-risk, loan sector which forced commercial banks to tighten lending criteria leading to a credit crunch.
Banks around the world suffered multi-billion-dollars losses linked to sub-prime loans given to US homebuyers with risky credit histories. - CNA/ir/ch
United Overseas Bank (UOB), Singapore's second-biggest lender by assets, posted a 5.7 percent fall in its fourth-quarter profit, as turmoil in credit markets led to more write-downs.
The bank reported net profit of S$506 million for the October-December period, down from S$537 million a year ago. UOB, which had a smaller exposure to risky debt compared to local industry leader DBS, made fresh provisions of S$128 million for its exposure to debt derivatives and long-term investments in the fourth quarter, bringing its total write-downs in the year to S$300 million.
Net interest income in the fourth quarter was S$743 million, up 5.9 percent from S$702 million a year earlier.
Non-interest income was S$532 million, up 2.9 percent from last year's S$517 million.
In a statement, UOB chief executive Wee Ee Cheong said 2008 "looks set to be a challenging year". World financial markets have been battered since last August by fallout from a crisis in the US sub-prime, or high-risk, loan sector which forced commercial banks to tighten lending criteria leading to a credit crunch.
Banks around the world suffered multi-billion-dollars losses linked to sub-prime loans given to US homebuyers with risky credit histories. - CNA/ir/ch
Tharman Says Govt Land Sales Policy Responsible, Market-Led
Source : Channel NewsAsia, 27 February 2008
According to Finance Minister Tharman Shanmugaratnam, the Government Land Sales policy has been a responsible one that is also market-led.
The minister made this comment in Parliament on Wednesday in response to questions raised during the Budget debate. He added that the government is doing the right things to sustain Singapore's competitiveness.
The Government Land Sales programme came under the spotlight in Parliament earlier this week.
MP of Ang Mo Kio GRC, Inderjit Singh, said the programme was responsible for pushing up property prices as the Reserve List system raised prices artificially.
In response, Mr Tharman argued that the system allowed market forces to play.
He said: "We ensure that enough supply is made available to meet basic demand through the Confirmed List, and let the market decide whether it wants to develop more sites through the Reserve List. No one anticipated the strong surge in demand for office space in the last two years, coming right after the 2002 to 2004 period, when the market conditions were very weak."
Mr Tharman noted that during the same period, some 120,000 sqm of office space were converted to other uses.
Rising office rentals are a concern, with some MPs asking for rebates to help businesses cope. But the minister said rental rebates will have an adverse effect.
"In an environment of strong demand for rental space, the outcome of government giving tax rebates on rental costs will be that prices are bid up further because this would merely stimulate demand for rental space without adding to the supply of space," he said.
Mr Tharman also added that there was no need to cut tax rates. He said the incentives offered this year to spur productivity and innovation will complement tax cuts announced previously.
These cuts include a reduction of Corporate Income Tax from 20 percent to 18 percent as well as improvements to Partial Tax Exemption for SMEs. Taken together, it will translate to S$160 million annual tax breaks for the SMEs.
The finance minister gave the assurance that Singapore will focus on providing a conducive tax environment for companies.
MPs have also asked in Parliament for more incentives to reward eco-friendly business practices.
To this, Mr Tharman said Singapore has managed to achieve good economic growth while maintaining a high quality environment, and further steps will be taken to promote energy efficiency.
These measures will be announced by the relevant ministries at the Committee of Supply debate.
On workforce training, Mr Tharman said current programmes are already heavily subsidised. But more studies will be done on the Individual Learning Accounts Scheme as suggested by MPs during the debate. - CNA/so
According to Finance Minister Tharman Shanmugaratnam, the Government Land Sales policy has been a responsible one that is also market-led.
The minister made this comment in Parliament on Wednesday in response to questions raised during the Budget debate. He added that the government is doing the right things to sustain Singapore's competitiveness. The Government Land Sales programme came under the spotlight in Parliament earlier this week.
MP of Ang Mo Kio GRC, Inderjit Singh, said the programme was responsible for pushing up property prices as the Reserve List system raised prices artificially.
In response, Mr Tharman argued that the system allowed market forces to play.
He said: "We ensure that enough supply is made available to meet basic demand through the Confirmed List, and let the market decide whether it wants to develop more sites through the Reserve List. No one anticipated the strong surge in demand for office space in the last two years, coming right after the 2002 to 2004 period, when the market conditions were very weak."
Mr Tharman noted that during the same period, some 120,000 sqm of office space were converted to other uses.
Rising office rentals are a concern, with some MPs asking for rebates to help businesses cope. But the minister said rental rebates will have an adverse effect.
"In an environment of strong demand for rental space, the outcome of government giving tax rebates on rental costs will be that prices are bid up further because this would merely stimulate demand for rental space without adding to the supply of space," he said.
Mr Tharman also added that there was no need to cut tax rates. He said the incentives offered this year to spur productivity and innovation will complement tax cuts announced previously.
These cuts include a reduction of Corporate Income Tax from 20 percent to 18 percent as well as improvements to Partial Tax Exemption for SMEs. Taken together, it will translate to S$160 million annual tax breaks for the SMEs.
The finance minister gave the assurance that Singapore will focus on providing a conducive tax environment for companies.
MPs have also asked in Parliament for more incentives to reward eco-friendly business practices.
To this, Mr Tharman said Singapore has managed to achieve good economic growth while maintaining a high quality environment, and further steps will be taken to promote energy efficiency.
These measures will be announced by the relevant ministries at the Committee of Supply debate.
On workforce training, Mr Tharman said current programmes are already heavily subsidised. But more studies will be done on the Individual Learning Accounts Scheme as suggested by MPs during the debate. - CNA/so
Citibank Opens Branch For Millionaires At Paragon
Source : The Business Times, February 27, 2008
The bank will be looking at Indonesia, Malaysia and Thailand next
THE number of millionaires here is set to grow despite recent market turmoil, says Citibank.
'There is no slowdown in client wealth,' Salman Haider, head of investments for Citibank Singapore, said at a briefing yesterday. 'The wealth effect is still strong.'
To add to the bank's bullishness, a $3.5 million branch for millionaires was officially opened yesterday at Paragon Shopping Centre.
The 6,000 sq ft, 14-meeting room Citigold Select Centre serves clients with at least $1 million of investible assets, and is Citibank's first such centre in South- east Asia.
The new centre complements an existing Citigold Centre on the 14th storey of Paragon. Citigold customers have investible assets of $250,000 and above, while Citigold Select clients have about $1 million to $14 million to invest.
An estimated 38,000 people in Singapore are in this category, and Citibank's revenues from this group surged 50 per cent last year. Assets under management and customer base grew about 30 per cent.
This is the fastest-growing segment in South-east Asia, seeing annual growth of 18-20 per cent, said Jonathan Larsen, Citibank Singapore's chief executive officer and head of the bank's South-east Asia global consumer group.
'Our emphasis on this segment and our investment in this centre demonstrate the growing sophistication of the Singapore market and the increasingly complex needs and expectations of this group of individuals,' said Mr Larsen.
Citigold Select Centres are already in places like Hong Kong, Taiwan and Korea, and Mr Larsen said the bank will be looking at Indonesia, Malaysia and Thailand next.
In Singapore, three or four more centres may open in the next year or so.
Besides the usual suite of investment products in equities, commodities, and currencies, Citigold Select clients enjoy tailor-made products structured by the bank to meet individual client needs.
The Citigold Select Centre is staffed by about 20 people, 11 of them relationship managers, and the rest are product specialists and support staff.
The centre is wireless-ready and each room has a large plasma TV that interfaces with PCs, to project images on screen. Video-conferencing capabilities are enabled for clients who want to tap the bank's global research teams for investment trends.
And cash is delivered directly to customers in meeting rooms, eliminating the plebeian need to stand and wait at a counter.
The bank will be looking at Indonesia, Malaysia and Thailand next
THE number of millionaires here is set to grow despite recent market turmoil, says Citibank.
'There is no slowdown in client wealth,' Salman Haider, head of investments for Citibank Singapore, said at a briefing yesterday. 'The wealth effect is still strong.'To add to the bank's bullishness, a $3.5 million branch for millionaires was officially opened yesterday at Paragon Shopping Centre.
The 6,000 sq ft, 14-meeting room Citigold Select Centre serves clients with at least $1 million of investible assets, and is Citibank's first such centre in South- east Asia.
The new centre complements an existing Citigold Centre on the 14th storey of Paragon. Citigold customers have investible assets of $250,000 and above, while Citigold Select clients have about $1 million to $14 million to invest.
An estimated 38,000 people in Singapore are in this category, and Citibank's revenues from this group surged 50 per cent last year. Assets under management and customer base grew about 30 per cent.
This is the fastest-growing segment in South-east Asia, seeing annual growth of 18-20 per cent, said Jonathan Larsen, Citibank Singapore's chief executive officer and head of the bank's South-east Asia global consumer group.
'Our emphasis on this segment and our investment in this centre demonstrate the growing sophistication of the Singapore market and the increasingly complex needs and expectations of this group of individuals,' said Mr Larsen.
Citigold Select Centres are already in places like Hong Kong, Taiwan and Korea, and Mr Larsen said the bank will be looking at Indonesia, Malaysia and Thailand next.
In Singapore, three or four more centres may open in the next year or so.
Besides the usual suite of investment products in equities, commodities, and currencies, Citigold Select clients enjoy tailor-made products structured by the bank to meet individual client needs.
The Citigold Select Centre is staffed by about 20 people, 11 of them relationship managers, and the rest are product specialists and support staff.
The centre is wireless-ready and each room has a large plasma TV that interfaces with PCs, to project images on screen. Video-conferencing capabilities are enabled for clients who want to tap the bank's global research teams for investment trends.
And cash is delivered directly to customers in meeting rooms, eliminating the plebeian need to stand and wait at a counter.
Tiong Bahru Plaza Creates 19,000 Sq Ft Retail Space
Source : The Business Times, February 27, 2008
ASIAN Retail Mall Ltd (ARML) is giving up two floors of offices at Central Plaza and transferring the gross floor area to the next-door Tiong Bahru Plaza mall.
New space: Tiong Bahru Plaza's total net lettable area will rise to 209,000 sq ft
The two office floors - on Central Plaza's third and 15th levels - will be converted to civic uses and leased to voluntary welfare organisations under the National Council of Social Services which will pay just a service charge for the use of the space, and not a rental.
It will cost about $18 million to create about 19,000 sq ft of new retail space on Tiong Bahru Plaza's ground floor and basement 1 as well as to reconfigure some existing areas.
Work began in October last year and is slated for completion by Q3 this year. Some of the ground floor units have already been completed and handed over to tenants.
About 90 per cent of the 19,000 sq ft has been leased.
Tenants that signed up include a Japanese snack and convenience concept, Four Leaves, Ajisen, The Juice Company, Yoghurt Place, The Pasta House by Sakae Sushi and a fengshui store.
The new space will boost Tiong Bahru Plaza's total net lettable area from 190,000 sq ft currently to 209,000 sq ft.
Besides Tiong Bahru Plaza and the 20-storey Central Plaza, ARML also owns White Sands mall in Pasir Ris, Century Square in Tampines and Hougang Mall.
Market watchers reckon ARML's portfolio could be worth about $1.5 billion. ARML's fund manager is Pramerica Real Estate Investors Asia, while the fund's properties are managed by AsiaMalls Management Ltd.
Central Plaza and Tiong Bahru Plaza mall were developed by UOL Group, which later sold them in separate transactions.
ARML bought Central Plaza for $175 million in a deal announced in October 2006, while Tiong Bahru Plaza was sold for $195 million in January 2002.
ASIAN Retail Mall Ltd (ARML) is giving up two floors of offices at Central Plaza and transferring the gross floor area to the next-door Tiong Bahru Plaza mall.
New space: Tiong Bahru Plaza's total net lettable area will rise to 209,000 sq ftThe two office floors - on Central Plaza's third and 15th levels - will be converted to civic uses and leased to voluntary welfare organisations under the National Council of Social Services which will pay just a service charge for the use of the space, and not a rental.
It will cost about $18 million to create about 19,000 sq ft of new retail space on Tiong Bahru Plaza's ground floor and basement 1 as well as to reconfigure some existing areas.
Work began in October last year and is slated for completion by Q3 this year. Some of the ground floor units have already been completed and handed over to tenants.
About 90 per cent of the 19,000 sq ft has been leased.
Tenants that signed up include a Japanese snack and convenience concept, Four Leaves, Ajisen, The Juice Company, Yoghurt Place, The Pasta House by Sakae Sushi and a fengshui store.
The new space will boost Tiong Bahru Plaza's total net lettable area from 190,000 sq ft currently to 209,000 sq ft.
Besides Tiong Bahru Plaza and the 20-storey Central Plaza, ARML also owns White Sands mall in Pasir Ris, Century Square in Tampines and Hougang Mall.
Market watchers reckon ARML's portfolio could be worth about $1.5 billion. ARML's fund manager is Pramerica Real Estate Investors Asia, while the fund's properties are managed by AsiaMalls Management Ltd.
Central Plaza and Tiong Bahru Plaza mall were developed by UOL Group, which later sold them in separate transactions.
ARML bought Central Plaza for $175 million in a deal announced in October 2006, while Tiong Bahru Plaza was sold for $195 million in January 2002.
HDB Launches 494-Unit Punggol Project
Source : The Straits Times, Feb 27, 2008
Four-room flats in BTO project meant to meet high demand; 278 applications so far
THE Housing Board has released another new build-to-order (BTO) project in Punggol to meet surging demand from house hunters.
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It is offering 494 flats, all four-room units, at Punggol Spring - the first batch of 4,500 BTO flats planned for the first half of this year.
Already, 278 applications have come in for the flats, following their launch yesterday. They are priced at between $204,000 and $259,000 - about two-thirds the current price of resale flats in Punggol.
Industry players expect demand to continue to be strong, given the overwhelming response to recent HDB flat releases. Earlier this month, almost 10,000 hopeful buyers applied for just 278 surplus flats in Toa Payoh and Tampines.
By the time the BTO exercise for Punggol Spring closes on March 17, the flats could be four times oversubscribed, predicted Mr Mohamed Ismail, chief executive of property agency PropNex.
To address the shortage of flats - estimates show only 2,000 surplus units in stock - the HDB has recommended that would-be buyers consider resale flats and BTO projects.
It will release another 4,000 BTO flats between now and June, mainly in Punggol and Sengkang. The HDB also said it still has 711 flats available from recent BTO launches in Punggol and Sengkang, including more than 200 each in Punggol Vista, Fernvale Vista and Coral Spring.
But the HDB's last four BTO projects have all seen at least twice the number of applicants than flats available.
The most recent were Damai Grove in Punggol and Jade Spring @ Yishun, which were released late last year. There were 1,888 applications for the 738 flats in Damai Grove and 1,908 applications for Jade Spring's 384 flats.
PropNex's Mr Ismail said that for many first-time buyers with relatively low income, BTO flats have become their only housing option as home prices soar.
But Mr Eugene Lim, the assistant vice-president of ERA Realty Network, pointed out that more BTO projects will not address the immediate housing shortage, as they take a few years to be constructed.
'BTO is a longer-term solution,' he said. 'The segment of buyers that go through BTO may not be the same as the 10,000 applicants looking for leftover flats that are available sooner.'
Punggol Spring is expected to be completed by 2011. It is located within walking distance of the Damai LRT station, next to Punggol Secondary School and near the future town centre where the MRT station and bus interchange are located.
Four-room flats in BTO project meant to meet high demand; 278 applications so far
THE Housing Board has released another new build-to-order (BTO) project in Punggol to meet surging demand from house hunters.
+Logo+-+Long.jpg)
It is offering 494 flats, all four-room units, at Punggol Spring - the first batch of 4,500 BTO flats planned for the first half of this year.Already, 278 applications have come in for the flats, following their launch yesterday. They are priced at between $204,000 and $259,000 - about two-thirds the current price of resale flats in Punggol.
Industry players expect demand to continue to be strong, given the overwhelming response to recent HDB flat releases. Earlier this month, almost 10,000 hopeful buyers applied for just 278 surplus flats in Toa Payoh and Tampines.
By the time the BTO exercise for Punggol Spring closes on March 17, the flats could be four times oversubscribed, predicted Mr Mohamed Ismail, chief executive of property agency PropNex.
To address the shortage of flats - estimates show only 2,000 surplus units in stock - the HDB has recommended that would-be buyers consider resale flats and BTO projects.
It will release another 4,000 BTO flats between now and June, mainly in Punggol and Sengkang. The HDB also said it still has 711 flats available from recent BTO launches in Punggol and Sengkang, including more than 200 each in Punggol Vista, Fernvale Vista and Coral Spring.
But the HDB's last four BTO projects have all seen at least twice the number of applicants than flats available.
The most recent were Damai Grove in Punggol and Jade Spring @ Yishun, which were released late last year. There were 1,888 applications for the 738 flats in Damai Grove and 1,908 applications for Jade Spring's 384 flats.
PropNex's Mr Ismail said that for many first-time buyers with relatively low income, BTO flats have become their only housing option as home prices soar.
But Mr Eugene Lim, the assistant vice-president of ERA Realty Network, pointed out that more BTO projects will not address the immediate housing shortage, as they take a few years to be constructed.
'BTO is a longer-term solution,' he said. 'The segment of buyers that go through BTO may not be the same as the 10,000 applicants looking for leftover flats that are available sooner.'
Punggol Spring is expected to be completed by 2011. It is located within walking distance of the Damai LRT station, next to Punggol Secondary School and near the future town centre where the MRT station and bus interchange are located.
Tepid Response To Launch Of HDB's Punggol Project
Source : The Business Times, February 27, 2008
THE Housing and Development Board (HDB) launched its first build-to-order (BTO) development for 2008 yesterday, and 278 applications were received for 494 flats on the first day.
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Called Punggol Spring, the project has four-room flats priced at between $204,000 and $259,000.
The number of applications is, however, just a fraction of the 2,224 applications received on the first day for the 278 flats offered through HDB's bi-monthly sales exercise for unsold flats earlier this month.
PropNex chief executive Mohamed Ismail believes the number of applications for Punggol Spring is not especially low, but added that many buyers, mainly young couples, do not want to wait for BTO flats to be built as this could take as long as three years.
Still, Mr Mohamed reckons that Punggol Springs could receive at least 2,000 applications eventually.
Recent BTO launches for Damai Grove in Punggol Town and Jade Spring @ Yishun in December last year saw a total of 1,888 and 1,908 applications respectively for the 1,122 flats offered.
Giving an insight into the high demand for HDB's unsold flats, Mr Mohamed said that the applicants probably see these as being 'good investments', especially as many are in well-located mature estates where resale prices are rising.
Interestingly, data from HDB also reveals that in January, 75 per cent of resale flats were sold for more than $10,000 above valuation.
Chesterton International head of research Colin Tan notes that the rising prices of private property have also priced many potential upgraders out of the private market, leading to higher demand for HDB flats.
However, Mr Tan believes that these buyers, being price sensitive, may not be keen on areas like Punggol because of the higher cost of travel. 'They may be concerned about the number of ERP gantries along their daily commute to work,' he said.
With buyers in this segment being so price sensitive, the launch of the latest HDB executive condominium (EC) site at Yishun Avenue 11 yesterday could draw a mixed response from developers.
Mr Tan estimates that the 162,320 sq ft site with a plot ratio of 2.8 could fetch bids of around $80 million, which works out to about $176 psf per plot ratio. At this price, the EC could be launched at around $600 psf, but Mr Tan added: 'Hopefully, the bids will be lower because this will be good for the buyer.'
THE Housing and Development Board (HDB) launched its first build-to-order (BTO) development for 2008 yesterday, and 278 applications were received for 494 flats on the first day.
+Logo.jpg)
Called Punggol Spring, the project has four-room flats priced at between $204,000 and $259,000.The number of applications is, however, just a fraction of the 2,224 applications received on the first day for the 278 flats offered through HDB's bi-monthly sales exercise for unsold flats earlier this month.
PropNex chief executive Mohamed Ismail believes the number of applications for Punggol Spring is not especially low, but added that many buyers, mainly young couples, do not want to wait for BTO flats to be built as this could take as long as three years.
Still, Mr Mohamed reckons that Punggol Springs could receive at least 2,000 applications eventually.
Recent BTO launches for Damai Grove in Punggol Town and Jade Spring @ Yishun in December last year saw a total of 1,888 and 1,908 applications respectively for the 1,122 flats offered.
Giving an insight into the high demand for HDB's unsold flats, Mr Mohamed said that the applicants probably see these as being 'good investments', especially as many are in well-located mature estates where resale prices are rising.
Interestingly, data from HDB also reveals that in January, 75 per cent of resale flats were sold for more than $10,000 above valuation.
Chesterton International head of research Colin Tan notes that the rising prices of private property have also priced many potential upgraders out of the private market, leading to higher demand for HDB flats.
However, Mr Tan believes that these buyers, being price sensitive, may not be keen on areas like Punggol because of the higher cost of travel. 'They may be concerned about the number of ERP gantries along their daily commute to work,' he said.
With buyers in this segment being so price sensitive, the launch of the latest HDB executive condominium (EC) site at Yishun Avenue 11 yesterday could draw a mixed response from developers.
Mr Tan estimates that the 162,320 sq ft site with a plot ratio of 2.8 could fetch bids of around $80 million, which works out to about $176 psf per plot ratio. At this price, the EC could be launched at around $600 psf, but Mr Tan added: 'Hopefully, the bids will be lower because this will be good for the buyer.'
$95m Tag For 16 Terrace Houses Up For Collective Sale
Source : The Business Times, February 27, 2008
FORT Terrace, a row of 16 terrace houses at Fort Road in the East Coast has been put up for collective sale with an indicative price of $95 million. The site, which is being marketed by Colliers International, has an area of 47,886 sq ft and a 2.1 plot ratio.
Colliers executive director (investment sales) Ho Eng Joo said the successful bidder has to take into consideration an estimated development charge of $23 million, as well as the cost to alienate some 10,964 sq ft state land, which would be about $6.4 million. With this, the site would cost $1,238 per sq ft based on potential gross floor area.
Mr Ho said collective sales of landed properties are rare. Unlike strata-titled apartments and condominiums, all the owners of the landed houses have to agree to any sale.
But Mr Ho added: 'With 100 per cent owners' consensus, the collective sale of Fort Terrace is not subject to the approval of the Strata Title Board, resulting in a possibly shorter time for sale completion.'
The site can be redeveloped to accommodate a high-rise condominium, with 67 units of 1,500 sq ft each. Based on the unit price of $1,238 psf per plot ratio, Mr Ho estimates the break-even price for future development at $1,718 psf.
He also pointed out that new developments nearby on Meyer Road are currently selling for between $2,100 and $2,200 psf.
The market price for the individual homes at Fort Terrace ranges between $2.1 million and $2.3 million. Mr Ho estimates that owners of the 16 terrace houses could each get $4.8 million per house if the houses are sold collectively.
FORT Terrace, a row of 16 terrace houses at Fort Road in the East Coast has been put up for collective sale with an indicative price of $95 million. The site, which is being marketed by Colliers International, has an area of 47,886 sq ft and a 2.1 plot ratio.
Colliers executive director (investment sales) Ho Eng Joo said the successful bidder has to take into consideration an estimated development charge of $23 million, as well as the cost to alienate some 10,964 sq ft state land, which would be about $6.4 million. With this, the site would cost $1,238 per sq ft based on potential gross floor area.
Mr Ho said collective sales of landed properties are rare. Unlike strata-titled apartments and condominiums, all the owners of the landed houses have to agree to any sale.
But Mr Ho added: 'With 100 per cent owners' consensus, the collective sale of Fort Terrace is not subject to the approval of the Strata Title Board, resulting in a possibly shorter time for sale completion.'
The site can be redeveloped to accommodate a high-rise condominium, with 67 units of 1,500 sq ft each. Based on the unit price of $1,238 psf per plot ratio, Mr Ho estimates the break-even price for future development at $1,718 psf.
He also pointed out that new developments nearby on Meyer Road are currently selling for between $2,100 and $2,200 psf.
The market price for the individual homes at Fort Terrace ranges between $2.1 million and $2.3 million. Mr Ho estimates that owners of the 16 terrace houses could each get $4.8 million per house if the houses are sold collectively.
Valuation Gains Boost Koh Brothers' Profit
Source : The Business Times, February 27, 2008
PROPERTY and construction company Koh Brothers' 2007 net profit jumped almost 10-fold to $39.7 million, fuelled by exceptional items.
Net profit was boosted by valuation gains of more than $30 million and a $5.6 million gain from the disposal of subsidiaries. For 2006, Koh Brothers reported a net profit of $4.1 million.
Revenue for the year ended Dec 31, 2007 rose 10 per cent to $285.5 million - from $259.6 million the year before - as the company's construction and building materials division recorded strong numbers amid a construction boom in Singapore.
Earnings per share rose to 8.28 cents in 2007, from 0.85 cents in 2006. Koh Brothers has declared a first and final dividend of 0.3 cents a share for 2007.
The company plans to go ahead with three residential launches this year despite the property market taking a breather, chief executive Francis Koh told BT.
'In 2008 we will launch new projects such as Lincoln Lodge off Newton Road, the Alocassia Apartments along Bukit Timah Road and Florenza at Florence Road,' Mr Koh said. But the sale of units in luxury development The Lumos will be held off until the market recovers. 'At the moment the high-end and luxury markets are a bit slow but the mid-range segment is still quite good, so we will push out those projects first,' he explained.
In line with this, Koh Brothers will roll out Florenza in Florence Road, which it classifies as a mid-range property, in the second quarter of 2008.
Launches of the more upmarket Lincoln Lodge and Alocassia Apartments projects are slated for the fourth quarter, while sales of The Lumos - which is 40 per cent sold - are on hold.
Mr Koh said that if need be the company can afford not to launch any projects this year and instead wait for the market to recover, as it is in a financially strong position. Koh Brothers reduced its gearing from 4.3 to 2.1 in 2007, he said. The company also has locked in income streams for 2008. In 2007 it tied up the sale of Changi Hotel for $42 million. A gain of some $20.4 million will be seen in 2008 from the deal.
In addition, the progressive recognition of revenue from sales of units in The Lumos and the fully-sold Bungalows@Caldecott, as well as higher rental income from 50 per cent-owned mall Sun Plaza, will contribute to 2008's numbers, Mr Koh added.
The company also has construction contracts of $849 million up to 2011 in hand and intends to bid for more large-scale public-sector projects.
PROPERTY and construction company Koh Brothers' 2007 net profit jumped almost 10-fold to $39.7 million, fuelled by exceptional items.
Net profit was boosted by valuation gains of more than $30 million and a $5.6 million gain from the disposal of subsidiaries. For 2006, Koh Brothers reported a net profit of $4.1 million.Revenue for the year ended Dec 31, 2007 rose 10 per cent to $285.5 million - from $259.6 million the year before - as the company's construction and building materials division recorded strong numbers amid a construction boom in Singapore.
Earnings per share rose to 8.28 cents in 2007, from 0.85 cents in 2006. Koh Brothers has declared a first and final dividend of 0.3 cents a share for 2007.
The company plans to go ahead with three residential launches this year despite the property market taking a breather, chief executive Francis Koh told BT.
'In 2008 we will launch new projects such as Lincoln Lodge off Newton Road, the Alocassia Apartments along Bukit Timah Road and Florenza at Florence Road,' Mr Koh said. But the sale of units in luxury development The Lumos will be held off until the market recovers. 'At the moment the high-end and luxury markets are a bit slow but the mid-range segment is still quite good, so we will push out those projects first,' he explained.
In line with this, Koh Brothers will roll out Florenza in Florence Road, which it classifies as a mid-range property, in the second quarter of 2008.
Launches of the more upmarket Lincoln Lodge and Alocassia Apartments projects are slated for the fourth quarter, while sales of The Lumos - which is 40 per cent sold - are on hold.
Mr Koh said that if need be the company can afford not to launch any projects this year and instead wait for the market to recover, as it is in a financially strong position. Koh Brothers reduced its gearing from 4.3 to 2.1 in 2007, he said. The company also has locked in income streams for 2008. In 2007 it tied up the sale of Changi Hotel for $42 million. A gain of some $20.4 million will be seen in 2008 from the deal.
In addition, the progressive recognition of revenue from sales of units in The Lumos and the fully-sold Bungalows@Caldecott, as well as higher rental income from 50 per cent-owned mall Sun Plaza, will contribute to 2008's numbers, Mr Koh added.
The company also has construction contracts of $849 million up to 2011 in hand and intends to bid for more large-scale public-sector projects.
SLA To Move Out Of Shenton Way To Revenue House
Source : The Straits Times, Feb 27, 2008
Agency cuts amount of office space it needs and will likely save on rental costs
THE Singapore Land Authority (SLA) will move its offices from Shenton Way to Novena this year, freeing up precious downtown office space for the private sector.
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It will take up five floors, or 6,600 sq m, at Revenue House in Thomson Road. This is about three-quarters of what it occupies currently at 8 Shenton Way - formerly known as Temasek Tower.
The move is in line with the Government's efforts to ease the shortage of office space in the central area. The acute supply crunch, coupled with rising space demands from expanding businesses, has sent prime office rents soaring in the last year.
SLA said yesterday that it is able to cut its space requirements at Revenue House as it is moving towards space-efficient work practices.
As an added benefit, SLA is also likely to save on rental costs with the relocation, property consultants said.
SLA said it will be paying 'market rent' for the space at Revenue House, owned by the Inland Revenue Authority of Singapore (Iras). This is likely to be in the 'single-digit' per sq ft (psf), said Mr Donald Han, managing director of property consultancy Cushman & Wakefield.
In contrast, asking rents at 8 Shenton Way are $11 to $12 psf - roughly what SLA would have had to pay to renew its lease there.
The 24-storey Revenue House, Iras' headquarters, is now full, so information on its asking rent is not available.
Other buildings in the area go for as little as $9 psf, depending on their age, said Mr Han.
Goldhill Plaza, which is about 30 years old, offers single-digit rents. Newer buildings such as United Square and Novena Square are said to be asking for $10.50 to $11.50 psf.
Revenue House, which opened in 1996, is likely to command 'high single-digit rents' psf, Mr Han estimated.
He said prime office rents in Novena are not much lower than in some downtown buildings as the area is becoming popular with multinational corporations that do not need to be in the heart of the city.
However, SLA may get a bulk discount in Revenue House. The space was set aside by Iras, which may have decided not to renew the leases of some tenants when they expired, Mr Han said.
Other agencies moving out of the Central Business District include the Infocomm Development Authority and the Economic Development Board.
Fittingly, SLA is one of the state departments tasked with tackling the office crunch by leasing out the vacant properties it manages. It has tendered out 104,000 sq m of space to meet immediate office needs.
The agency will release another 32,300 sq ft of space in the current quarter, including the former Civil Aviation Authority of Singapore office in Upper Changi Road North and the former Siglap-Changi Community Centre.
Agency cuts amount of office space it needs and will likely save on rental costs
THE Singapore Land Authority (SLA) will move its offices from Shenton Way to Novena this year, freeing up precious downtown office space for the private sector.
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It will take up five floors, or 6,600 sq m, at Revenue House in Thomson Road. This is about three-quarters of what it occupies currently at 8 Shenton Way - formerly known as Temasek Tower.The move is in line with the Government's efforts to ease the shortage of office space in the central area. The acute supply crunch, coupled with rising space demands from expanding businesses, has sent prime office rents soaring in the last year.
SLA said yesterday that it is able to cut its space requirements at Revenue House as it is moving towards space-efficient work practices.
As an added benefit, SLA is also likely to save on rental costs with the relocation, property consultants said.
SLA said it will be paying 'market rent' for the space at Revenue House, owned by the Inland Revenue Authority of Singapore (Iras). This is likely to be in the 'single-digit' per sq ft (psf), said Mr Donald Han, managing director of property consultancy Cushman & Wakefield.
In contrast, asking rents at 8 Shenton Way are $11 to $12 psf - roughly what SLA would have had to pay to renew its lease there.
The 24-storey Revenue House, Iras' headquarters, is now full, so information on its asking rent is not available.
Other buildings in the area go for as little as $9 psf, depending on their age, said Mr Han.
Goldhill Plaza, which is about 30 years old, offers single-digit rents. Newer buildings such as United Square and Novena Square are said to be asking for $10.50 to $11.50 psf.
Revenue House, which opened in 1996, is likely to command 'high single-digit rents' psf, Mr Han estimated.
He said prime office rents in Novena are not much lower than in some downtown buildings as the area is becoming popular with multinational corporations that do not need to be in the heart of the city.
However, SLA may get a bulk discount in Revenue House. The space was set aside by Iras, which may have decided not to renew the leases of some tenants when they expired, Mr Han said.
Other agencies moving out of the Central Business District include the Infocomm Development Authority and the Economic Development Board.
Fittingly, SLA is one of the state departments tasked with tackling the office crunch by leasing out the vacant properties it manages. It has tendered out 104,000 sq m of space to meet immediate office needs.
The agency will release another 32,300 sq ft of space in the current quarter, including the former Civil Aviation Authority of Singapore office in Upper Changi Road North and the former Siglap-Changi Community Centre.
SLA To Lead Shift Out Of CBD With Move To Novena
Source : The Business Times, February 27, 2008
It will rent space in IRAS building to ease office space crunch
Kicking off the initiative to move some government agencies out of the CBD to ease the acute shortage of prime office space, Singapore Land Authority (SLA) yesterday said it will relocate from the former Temasek Tower in the Tanjong Pagar area to Revenue House in the Novena area in Q4 this year.
Revenue House is owned by the Inland Revenue Authority of Singapore (IRAS), which comes under the Ministry of Finance.
Along with the move, SLA is scaling down its space requirements by 24 per cent. SLA will release about 92,569 sq ft or seven floors in the former Temasek Tower (now known as 8 Shenton Way). It will take about 71,042 sq ft or five floors at Revenue House.
SLA's spokeswoman declined to disclose the rental level that the authority will be paying IRAS at Revenue House or the saving in rental bill from moving to a city-fringe location, but said: 'SLA will be paying market rent.'
Property market watchers reckon that office rents in the Novena area are about 20 per cent lower than in Temasek Tower. That, coupled with the smaller area SLA is leasing at the new location, could translate to a nearly 40 per cent saving in SLA's rental expenditure, they reckon.
SLA's spokeswoman said: 'Besides rental, we also have to bear in mind the varied needs of the wide spectrum of customers which SLA serves at its public counters and its own staff. We're happy to have found a suitable fit in Revenue House.'
The space that SLA will lease at Revenue House appears to be mostly area being given up by IRAS. The tax authority said it currently occupies 74 per cent of the building's net lettable area (NLA) of about 635,070 sq ft but with the impending lease to SLA, IRAS will occupy 63 per cent of Revenue House's NLA.
She added that after SLA's lease, there is no more space available in the property for further leasing in the immediate future. Other major tenants in the building include Singapore Customs, AC Nielsen Research, Rockwell Automation Southeast Asia and Suki Sushi.
SLA has managed to trim its space requirements partly because Revenue House has a larger floor plate than Temasek Tower, allowing the authority to better optimise its space usage.
In addition, less floor space is required because the electronic digitisation and microfilming of survey plans, documents, titles and transactions have eliminated the need for space to store hard copies. 'The pooling of shared office equipment and common facilities like meeting rooms also results in further saving on the amount of floor space required,' IRAS' spokeswoman said.
Besides SLA, the Infocomm Development Authority has said it will give up about a third of its space at Suntec City by relocating some divisions to the Mica building at Hill Street by year-end.
The Economic Development Board is also expected to vacate its offices at Raffles City when its lease expires next year and move into Fusionopolis at one-north in Buona Vista.
The Energy Market Authority, which is housed in Singapore Power Building on Somerset Road, and the Intellectual Property Office of Singapore, at Plaza by The Park on Bras Basah Road, have also been reported as likely candidates to move out of the CBD.
In his recent Budget statement, Finance Minister Tharman Shanmugaratnam said the government has decided to relocate several agencies out of the Central Area to free up space of 20,000 sq m or more by first quarter next year for use by the private sector. The space being released, which will help to address the office space shortage in the near term, is equivalent to 20 floors or more of an office tower block in Suntec City.
It will rent space in IRAS building to ease office space crunch
Kicking off the initiative to move some government agencies out of the CBD to ease the acute shortage of prime office space, Singapore Land Authority (SLA) yesterday said it will relocate from the former Temasek Tower in the Tanjong Pagar area to Revenue House in the Novena area in Q4 this year.
Revenue House is owned by the Inland Revenue Authority of Singapore (IRAS), which comes under the Ministry of Finance.
Along with the move, SLA is scaling down its space requirements by 24 per cent. SLA will release about 92,569 sq ft or seven floors in the former Temasek Tower (now known as 8 Shenton Way). It will take about 71,042 sq ft or five floors at Revenue House.
SLA's spokeswoman declined to disclose the rental level that the authority will be paying IRAS at Revenue House or the saving in rental bill from moving to a city-fringe location, but said: 'SLA will be paying market rent.'
Property market watchers reckon that office rents in the Novena area are about 20 per cent lower than in Temasek Tower. That, coupled with the smaller area SLA is leasing at the new location, could translate to a nearly 40 per cent saving in SLA's rental expenditure, they reckon.
SLA's spokeswoman said: 'Besides rental, we also have to bear in mind the varied needs of the wide spectrum of customers which SLA serves at its public counters and its own staff. We're happy to have found a suitable fit in Revenue House.'
The space that SLA will lease at Revenue House appears to be mostly area being given up by IRAS. The tax authority said it currently occupies 74 per cent of the building's net lettable area (NLA) of about 635,070 sq ft but with the impending lease to SLA, IRAS will occupy 63 per cent of Revenue House's NLA.
She added that after SLA's lease, there is no more space available in the property for further leasing in the immediate future. Other major tenants in the building include Singapore Customs, AC Nielsen Research, Rockwell Automation Southeast Asia and Suki Sushi.
SLA has managed to trim its space requirements partly because Revenue House has a larger floor plate than Temasek Tower, allowing the authority to better optimise its space usage.
In addition, less floor space is required because the electronic digitisation and microfilming of survey plans, documents, titles and transactions have eliminated the need for space to store hard copies. 'The pooling of shared office equipment and common facilities like meeting rooms also results in further saving on the amount of floor space required,' IRAS' spokeswoman said.
Besides SLA, the Infocomm Development Authority has said it will give up about a third of its space at Suntec City by relocating some divisions to the Mica building at Hill Street by year-end.
The Economic Development Board is also expected to vacate its offices at Raffles City when its lease expires next year and move into Fusionopolis at one-north in Buona Vista.
The Energy Market Authority, which is housed in Singapore Power Building on Somerset Road, and the Intellectual Property Office of Singapore, at Plaza by The Park on Bras Basah Road, have also been reported as likely candidates to move out of the CBD.
In his recent Budget statement, Finance Minister Tharman Shanmugaratnam said the government has decided to relocate several agencies out of the Central Area to free up space of 20,000 sq m or more by first quarter next year for use by the private sector. The space being released, which will help to address the office space shortage in the near term, is equivalent to 20 floors or more of an office tower block in Suntec City.
CapitaLand's Strategy Hints At Outlook For Residential Market
Source : The Business Times, February 27, 2008
THE property market is getting round to the idea that there won't be much good news in the first half of 2008. However, while many property developers including CapitaLand are content to say that they are cautiously optimistic about the second half of the year, actions seem to tell a different story.
CapitaLand, one of Asia's biggest real estate developers, kicked off the year with several interesting moves that suggest it is looking for other sources of revenue, rather than depend on its main income generator - residential sales.
The first was its $990 million offer for the 33.5 per cent stake in Ascott that it did not already hold.
While M&A activity is quite common in periods of market volatility, with many companies trading below NAV, CapitaLand's offer for Ascott, which will result in it being taken private, can only mean one thing - that it intends to grow its serviced residence business much more aggressively, and perhaps in more frontier markets like Russia and Kazakhstan.
Ascott is already the biggest operator of serviced residences in Europe and Asia, providing stable recurring income for the group. And CapitaLand's serviced residence unit did grow its business in 2007, with Ebit for FY07 jumping 66.5 per cent to $337.2 million year on year.
Some analysts have even suggested that CapitaLand could park some of its China properties in Ascott. How this will work, given that most of CapitaLand's pipeline is in residential properties, and China's increasingly stringent property guidelines, will need to be figured out first though. Still, it does suggest that some analysts feel CapitaLand may somehow have to deal with its huge residential landbank in China.
To date, CapitaLand's pipeline of residential projects in China is around 35,000 homes. Tellingly, it only expects to launch 2,000 units in 2008.
China's booming economy has been a boon to CapitaLand's coffers in the past years, but the Chinese government's efforts to cool the property market - the more recent being the implementation of property tax - appear to have had some effect.
While it is difficult to read the Chinese property market, a Citigroup report notes that recent government directives suggest that the housing demand of the low-income group is to be satisfied by public rental housing and some economic housing, while the demand of the middle-income group is to be satisfied by capped-price projects and economic rental housing, with housing for the higher-income group left to the market.
Even in Singapore, where residential sales have helped CapitaLand achieve record profits in 2007, robust home sales are no longer a certainty, a fact underscored by the number of units it expects to launch this year (800-1,000) compared to the number of units it has in the pipeline (3,500-4,000).
To be sure, CapitaLand did say at a recent press briefing that it was not 'de-emphasising' its residential business. But it did choose to announce that it would establish a new unit to generate more business in the Asian industrial and logistics sector at the same time.
The move is prudent, given that the logistics sector in India and China is set to grow, even if the global economy slows down - thanks to the growing appetite of consumers there. So while exports from China to the West may slow down, internal exports within India and China will drive the need for internal logistics facilities.
Again, a stable source of recurring rental income seems to be the objective here. And coupled with the possibility of a pan-Asian industrial and logistics Reit, there could also be more manager's fees to collect.
For good measure, Reits were also given a plug as a logical 'defensive' play in volatile times at the press briefing.
All this, plus CapitaLand's recent bond issue of $1.3 billion - which cannot possibly be for the purposes of building its residential landbank - does seem to suggest that CapitaLand is planning to nimbly sidestep any possible downturn in the residential sector.
This in itself does not say much except reinforce the standing of the company's business acumen - unless, of course, if you are thinking of buying a home yourself. In which case, you should probably be cautious too.
THE property market is getting round to the idea that there won't be much good news in the first half of 2008. However, while many property developers including CapitaLand are content to say that they are cautiously optimistic about the second half of the year, actions seem to tell a different story.
CapitaLand, one of Asia's biggest real estate developers, kicked off the year with several interesting moves that suggest it is looking for other sources of revenue, rather than depend on its main income generator - residential sales.The first was its $990 million offer for the 33.5 per cent stake in Ascott that it did not already hold.
While M&A activity is quite common in periods of market volatility, with many companies trading below NAV, CapitaLand's offer for Ascott, which will result in it being taken private, can only mean one thing - that it intends to grow its serviced residence business much more aggressively, and perhaps in more frontier markets like Russia and Kazakhstan.
Ascott is already the biggest operator of serviced residences in Europe and Asia, providing stable recurring income for the group. And CapitaLand's serviced residence unit did grow its business in 2007, with Ebit for FY07 jumping 66.5 per cent to $337.2 million year on year.
Some analysts have even suggested that CapitaLand could park some of its China properties in Ascott. How this will work, given that most of CapitaLand's pipeline is in residential properties, and China's increasingly stringent property guidelines, will need to be figured out first though. Still, it does suggest that some analysts feel CapitaLand may somehow have to deal with its huge residential landbank in China.
To date, CapitaLand's pipeline of residential projects in China is around 35,000 homes. Tellingly, it only expects to launch 2,000 units in 2008.
China's booming economy has been a boon to CapitaLand's coffers in the past years, but the Chinese government's efforts to cool the property market - the more recent being the implementation of property tax - appear to have had some effect.
While it is difficult to read the Chinese property market, a Citigroup report notes that recent government directives suggest that the housing demand of the low-income group is to be satisfied by public rental housing and some economic housing, while the demand of the middle-income group is to be satisfied by capped-price projects and economic rental housing, with housing for the higher-income group left to the market.
Even in Singapore, where residential sales have helped CapitaLand achieve record profits in 2007, robust home sales are no longer a certainty, a fact underscored by the number of units it expects to launch this year (800-1,000) compared to the number of units it has in the pipeline (3,500-4,000).
To be sure, CapitaLand did say at a recent press briefing that it was not 'de-emphasising' its residential business. But it did choose to announce that it would establish a new unit to generate more business in the Asian industrial and logistics sector at the same time.
The move is prudent, given that the logistics sector in India and China is set to grow, even if the global economy slows down - thanks to the growing appetite of consumers there. So while exports from China to the West may slow down, internal exports within India and China will drive the need for internal logistics facilities.
Again, a stable source of recurring rental income seems to be the objective here. And coupled with the possibility of a pan-Asian industrial and logistics Reit, there could also be more manager's fees to collect.
For good measure, Reits were also given a plug as a logical 'defensive' play in volatile times at the press briefing.
All this, plus CapitaLand's recent bond issue of $1.3 billion - which cannot possibly be for the purposes of building its residential landbank - does seem to suggest that CapitaLand is planning to nimbly sidestep any possible downturn in the residential sector.
This in itself does not say much except reinforce the standing of the company's business acumen - unless, of course, if you are thinking of buying a home yourself. In which case, you should probably be cautious too.
Ratings Agency Moody's Places 2 MMP REIT Debt Ratings Under Review
Source : Channel NewsAsia, 26 February 2008
Ratings agency Moody's Investors Service has placed two key debt ratings for Macquarie MEAG Prime REIT (MMP REIT) under review for possible downgrade.
The ratings in question are MMP REIT's Baa1 corporate family and Baa2 senior unsecured debt ratings.
Moody's says the move has been prompted by MMP's announcement on 19 February to undertake a comprehensive strategic review of the REIT.
The review seeks to address the trust's underperforming unit price against the underlying value of its assets, given Macquarie Bank's intentions to dispose off its entire 26 percent stake.
Moody's says the strategic review raises considerable uncertainty around the asset profile and ownership structure of the REIT.
According to Moody's, it has jeopardised MMP's progress to raise medium-term financing to take out short term loans totalling S$235 million that fall due over the next 7 months, of which nearly 80 percent matures in May 2008.
But Moody's believes that MMP should be well placed to arrange for the loans to be extended given the good stable of quality assets held and managed by the REIT, as well as the relative low leverage of the REIT.
However, the trust's ratings will come under further pressure if rollovers on the bridge loans that fall due in end-May are not obtained by mid-March.
Singapore-listed MMP REIT owns part interests in the Wisma Atria shopping complex and Ngee Ann City. - CNA/ch
Ratings agency Moody's Investors Service has placed two key debt ratings for Macquarie MEAG Prime REIT (MMP REIT) under review for possible downgrade.
The ratings in question are MMP REIT's Baa1 corporate family and Baa2 senior unsecured debt ratings. Moody's says the move has been prompted by MMP's announcement on 19 February to undertake a comprehensive strategic review of the REIT.
The review seeks to address the trust's underperforming unit price against the underlying value of its assets, given Macquarie Bank's intentions to dispose off its entire 26 percent stake.
Moody's says the strategic review raises considerable uncertainty around the asset profile and ownership structure of the REIT.
According to Moody's, it has jeopardised MMP's progress to raise medium-term financing to take out short term loans totalling S$235 million that fall due over the next 7 months, of which nearly 80 percent matures in May 2008.
But Moody's believes that MMP should be well placed to arrange for the loans to be extended given the good stable of quality assets held and managed by the REIT, as well as the relative low leverage of the REIT.
However, the trust's ratings will come under further pressure if rollovers on the bridge loans that fall due in end-May are not obtained by mid-March.
Singapore-listed MMP REIT owns part interests in the Wisma Atria shopping complex and Ngee Ann City. - CNA/ch
HDB Launches Executive Condo Housing Site In Yishun Ave 11
Source : Channel NewsAsia, 26 February 2008
The HDB is launching an executive condominium housing site in Yishun.
The land at Yishun Avenue 11 is being made available under the Reserve List System.
This means developers interested in purchasing the land, must submit their application with the minimum price they are willing to bid for the land.
The site has an area of 15,080 square metres and a gross plot ratio of 2.8.
Upon acceptance of the applications, HDB will release the land for sale by tender.
The sale has a lease term of 99 years. - CNA/ch
The HDB is launching an executive condominium housing site in Yishun.
The land at Yishun Avenue 11 is being made available under the Reserve List System. This means developers interested in purchasing the land, must submit their application with the minimum price they are willing to bid for the land.
The site has an area of 15,080 square metres and a gross plot ratio of 2.8.
Upon acceptance of the applications, HDB will release the land for sale by tender.
The sale has a lease term of 99 years. - CNA/ch
Keppel Land Unveils Plans For Development In Ho Chi Minh City
Source : Channel NewsAsia, 26 February 2008
HANOI: Keppel Land, one of the largest property developers in Vietnam, has unveiled concept plans for Phase Two of its Saigon Centre in Ho Chi Minh City.
This was presented to President S R Nathan and Vietnam's Deputy Prime Minister Hoang Trung Hai in Hanoi on Tuesday.
In the new phase, Keppel Land is going for an 88-storey mixed development which will house residential, retail and office space, and will also include an observation deck and a museum.
It is working on this project with Skidmore, Owings and Merrill – one of the world's largest architectural firms.
Phase One of Saigon Centre, a 25-storey building with office space and serviced apartments, was completed in 1996.
It is a development in the Central Business District of the country's commercial capital, Ho Chi Minh City.
Keppel Land said more details on the new concept plans for Saigon Centre will be released when finalised, and as soon as approvals from the relevant authorities are obtained.
Keppel Land has invested over US$3 billion in 16 projects in Vietnam, most of them in Ho Chi Minh City.- CNA/so
HANOI: Keppel Land, one of the largest property developers in Vietnam, has unveiled concept plans for Phase Two of its Saigon Centre in Ho Chi Minh City.
This was presented to President S R Nathan and Vietnam's Deputy Prime Minister Hoang Trung Hai in Hanoi on Tuesday. In the new phase, Keppel Land is going for an 88-storey mixed development which will house residential, retail and office space, and will also include an observation deck and a museum.
It is working on this project with Skidmore, Owings and Merrill – one of the world's largest architectural firms.
Phase One of Saigon Centre, a 25-storey building with office space and serviced apartments, was completed in 1996.
It is a development in the Central Business District of the country's commercial capital, Ho Chi Minh City.
Keppel Land said more details on the new concept plans for Saigon Centre will be released when finalised, and as soon as approvals from the relevant authorities are obtained.
Keppel Land has invested over US$3 billion in 16 projects in Vietnam, most of them in Ho Chi Minh City.- CNA/so
Koh Brothers Posts Near 10-Fold Jump In FY Net Profit
Source : Channel NewsAsia, 26 February 2008
Developer Koh Brothers has posted a near 10-fold jump in full-year net profit - rising 877 percent to S$39.7 million.
The sharp spike in the bottomline was due mainly to fair value gains on investment properties. There was also an exceptional gain of S$5.6 million after the company sold three units in Shantou, China.
Sales rose 10 percent to S$285.5 million and Koh Brothers remains bullish about its outlook.
It expects construction demand in Singapore to continue to be vibrant, reaching between S$23 billion and S$27 billion this year.
The company said it would bid for more large-scale public sector projects such as the 5-kilometre long Marina Coastal Expressway, a new MRT line and the Seletar Reservoir Water Treatment Works.
Although rising costs will be a key challenge for the construction industry, the firm believes demand for building material products will remain strong, benefiting its building materials division.
Given the positive outlook for the private residential market, Koh Brothers said it would continue to focus on premium real estate developments.
Barring unforeseen circumstances, the group expects to remain profitable in FY2008. - CNA/so
Developer Koh Brothers has posted a near 10-fold jump in full-year net profit - rising 877 percent to S$39.7 million.
The sharp spike in the bottomline was due mainly to fair value gains on investment properties. There was also an exceptional gain of S$5.6 million after the company sold three units in Shantou, China. Sales rose 10 percent to S$285.5 million and Koh Brothers remains bullish about its outlook.
It expects construction demand in Singapore to continue to be vibrant, reaching between S$23 billion and S$27 billion this year.
The company said it would bid for more large-scale public sector projects such as the 5-kilometre long Marina Coastal Expressway, a new MRT line and the Seletar Reservoir Water Treatment Works.
Although rising costs will be a key challenge for the construction industry, the firm believes demand for building material products will remain strong, benefiting its building materials division.
Given the positive outlook for the private residential market, Koh Brothers said it would continue to focus on premium real estate developments.
Barring unforeseen circumstances, the group expects to remain profitable in FY2008. - CNA/so
Singapore's GIC Real Estate Buys Westin Tokyo Hotel
Source : Channel NewsAsia, 26 February 2008
TOKYO - Singapore's sovereign wealth fund has bought the Westin Tokyo hotel from Morgan Stanley and US-based Starwood Capital, the firms said Tuesday, in a deal reportedly worth about US$715 million.
The 438-room hotel in Tokyo's Ebisu district will continue to be operated by Starwood Hotels and Resorts under the Westin brand, a joint statement said.
The companies gave no financial terms for the purchase by GIC Real Estate, the property investment arm of the Government of Singapore Investment Corp.
The Nikkei business daily reported earlier this month that the Singapore fund would pay about 77 billion yen for the property, which the sellers purchased in 2004 from Japanese brewer Sapporo Holdings Ltd for about 50 billion yen.
GIC is one of two investment vehicles of the Singapore government and manages the country's foreign reserves of more than US$100 billion through various investments.
Its property arm has been expanding its portfolio in the world's major cities including Tokyo, Munich, Sydney and Seoul. GIC announced in January that it would invest US$6.88 billion in US banking giant Citigroup.
That followed its December investment of almost US$10 billion into Swiss bank UBS.
Morgan Stanley has been an active player in Japan's real estate sector in recent years.
It bought 13 Japanese hotels owned by All Nippon Airways Co. in 2007 for 281.3 billion yen.
It is also currently buying US financial services giant Citigroup's headquarters in Japan in a deal reportedly worth 48 billion yen. -AFP/vm
TOKYO - Singapore's sovereign wealth fund has bought the Westin Tokyo hotel from Morgan Stanley and US-based Starwood Capital, the firms said Tuesday, in a deal reportedly worth about US$715 million.
The 438-room hotel in Tokyo's Ebisu district will continue to be operated by Starwood Hotels and Resorts under the Westin brand, a joint statement said. The companies gave no financial terms for the purchase by GIC Real Estate, the property investment arm of the Government of Singapore Investment Corp.
The Nikkei business daily reported earlier this month that the Singapore fund would pay about 77 billion yen for the property, which the sellers purchased in 2004 from Japanese brewer Sapporo Holdings Ltd for about 50 billion yen.
GIC is one of two investment vehicles of the Singapore government and manages the country's foreign reserves of more than US$100 billion through various investments.
Its property arm has been expanding its portfolio in the world's major cities including Tokyo, Munich, Sydney and Seoul. GIC announced in January that it would invest US$6.88 billion in US banking giant Citigroup.
That followed its December investment of almost US$10 billion into Swiss bank UBS.
Morgan Stanley has been an active player in Japan's real estate sector in recent years.
It bought 13 Japanese hotels owned by All Nippon Airways Co. in 2007 for 281.3 billion yen.
It is also currently buying US financial services giant Citigroup's headquarters in Japan in a deal reportedly worth 48 billion yen. -AFP/vm
4-Room Flats Available At Punggol Spring
Source : Channel NewsAsia, 26 February 2008
The Housing and Development Board is offering 494 four-room flats at Punggol Spring under the Build-To-Order (BTO) System – the first BTO launch for this year.
HDB has received 278 applications so far. Interested applicants have until 17 March to apply for a unit there. Prices of units range between S$204,000 and S$259,000.
HDB advises those unsuccessful in recent sales exercises to consider applying for this and other BTO projects in the new towns, where the larger supply of flats gives buyers more choices.
Punggol Spring is within walking distance from Damai LRT station. Residents can also look forward to the upcoming Punggol Town and easy access to the MRT station and bus interchange. - CNA/so
The Housing and Development Board is offering 494 four-room flats at Punggol Spring under the Build-To-Order (BTO) System – the first BTO launch for this year.
HDB has received 278 applications so far. Interested applicants have until 17 March to apply for a unit there. Prices of units range between S$204,000 and S$259,000. HDB advises those unsuccessful in recent sales exercises to consider applying for this and other BTO projects in the new towns, where the larger supply of flats gives buyers more choices.
Punggol Spring is within walking distance from Damai LRT station. Residents can also look forward to the upcoming Punggol Town and easy access to the MRT station and bus interchange. - CNA/so
Hotel Room Prices Reach New Highs With Record Arrivals In January
Source : Channel NewsAsia, 26 February 2008
Singapore greeted 883,000 visitors in January 2008 setting a new record for visitor arrivals in that month.
Not only did visitor arrival figures rise 6.9 per cent higher in January 2008 compared to January 2007, but visitors also stayed longer this time round.
The top three markets were Indonesia, China and Australia. Visitor arrivals from China rose 42 per cent than in January 2007.
Some 3.5 million visitor days were recorded - working out to an average of 3.96 days per visitor.
Along with the booming tourism sector, hotel room prices have also reached record highs.
Related Video Link - http://tinyurl.com/yog23j
The average room rate in January 2008 reached an all-time record of S$237 and it is estimated that Singapore gazetted hotels generated S$175 million in room revenue for that month.
That's an increase of nearly 27.9 per cent compared to January 2007.
The Singapore Tourism Board said the sharp rise in room rates is a reflection of market forces.
And while they are reaching an all-time high in Singapore, the rises are just keeping up with market rates in the region.
The average occupancy rate for hotels was 84 per cent in January 2008, down 2.3 per cent over January 2007.
Meanwhile, the average occupancy rate for the whole of 2007 was 87 per cent, the highest since 1995. -CNA/vm
Singapore greeted 883,000 visitors in January 2008 setting a new record for visitor arrivals in that month.
Not only did visitor arrival figures rise 6.9 per cent higher in January 2008 compared to January 2007, but visitors also stayed longer this time round. The top three markets were Indonesia, China and Australia. Visitor arrivals from China rose 42 per cent than in January 2007.
Some 3.5 million visitor days were recorded - working out to an average of 3.96 days per visitor.
Along with the booming tourism sector, hotel room prices have also reached record highs.
Related Video Link - http://tinyurl.com/yog23j
The average room rate in January 2008 reached an all-time record of S$237 and it is estimated that Singapore gazetted hotels generated S$175 million in room revenue for that month.
That's an increase of nearly 27.9 per cent compared to January 2007.
The Singapore Tourism Board said the sharp rise in room rates is a reflection of market forces.
And while they are reaching an all-time high in Singapore, the rises are just keeping up with market rates in the region.
The average occupancy rate for hotels was 84 per cent in January 2008, down 2.3 per cent over January 2007.
Meanwhile, the average occupancy rate for the whole of 2007 was 87 per cent, the highest since 1995. -CNA/vm
MPs Suggest Reducing Rentals To Cushion Impact Of Rising Business Costs
Source : Channel NewsAsia, 26 February 2008
Rising business costs continued to take the spotlight on the second day of the annual budget debate in Parliament.
According to MPs who addressed the House, there were concerns among local businesses that the outlook will worsen, in light of the sub-prime mortgage crisis and a looming recession in the US.
MPs said Singapore will stand to lose if big global names choose to relocate elsewhere.
Rising rentals were one major concern and MPs asked if the government would allow a short-term double deduction on rental expenses which translates to about 18 per cent in cost savings.
Amid the current global credit crunch, there was a call on the Finance Ministry to review its policy encouraging statutory boards and government agencies to borrow in the private sector.
Nominated MP, Dr Loo Choon Yong, said: “Under current market conditions, lenders would understandably choose to park their funds with that instruments issued by these board and agencies, fully backed by the government of Singapore.
“This may soak up whatever little liquidity that is available. I understand HDB is now in the market looking to borrow US$500 million, and LTA and JTC may well follow suit.
“I suggest MOF makes available trenches of government fund for competitive tender by all statutory boards and government agencies needing to borrow."
For some other MPs, they were eyeing new initiatives to spur the sustainable energy sector.
Nominated MP, Edwin Khew, said: “To develop Singapore as an ‘eco-hub’ we must promote and establish an environment for alternative energy, energy efficiency and other green businesses and initiatives to flourish.”
Abu Dhabi is prepared to spend US$15 billion and have set a benchmark. What are we prepared to spend?”
And there was also a call on the government to release more regular financial results, including the key performance indicators of each ministry.
MP for Jalan Besar GRC Denis Phua said this will help to improve the accuracy in forecasting.
She said: "Where necessary, issue surplus or deficit warnings so that Singaporeans understand better the contexts for major national policies and are less surprised at the end of the financial year.
“It also reduces the hype of the annual budget time and minimizes any unrealistic 'goodie bag' expectations," she added.
Ms Phua added that good forecasting should also be extended to non-financial impact of a ministry's policies on another.
For example, she said that the Youth Olympic Games 2010 in Singapore will possibly heat up the economy further. And this ought to be considered in the fiscal plan.
Another consideration was to make the income-tax rebate a continual feature of the annual budget.
MP for Ang Mo Kio GRC, Lee Bee Wah, said: “This can in turn help to stimulate the economy further. Lower income tax rates will also attract individuals to work here, rather than in other places like Hong Kong, where the top marginal personal tax rate is 15 per cent, compared to ours at 20 per cent."
MPs also called on the government to stop the brain drain. Tampines GRC MP, Mr Ong Kian Min said Singapore must not become the training centre of the world, where workers leave for greener pastures after they are being trained here.
One way is for Singapore to encourage innovation and work towards being a first-class economy. -CNA/vm
Rising business costs continued to take the spotlight on the second day of the annual budget debate in Parliament.
According to MPs who addressed the House, there were concerns among local businesses that the outlook will worsen, in light of the sub-prime mortgage crisis and a looming recession in the US. MPs said Singapore will stand to lose if big global names choose to relocate elsewhere.
Rising rentals were one major concern and MPs asked if the government would allow a short-term double deduction on rental expenses which translates to about 18 per cent in cost savings.
Amid the current global credit crunch, there was a call on the Finance Ministry to review its policy encouraging statutory boards and government agencies to borrow in the private sector.
Nominated MP, Dr Loo Choon Yong, said: “Under current market conditions, lenders would understandably choose to park their funds with that instruments issued by these board and agencies, fully backed by the government of Singapore.
“This may soak up whatever little liquidity that is available. I understand HDB is now in the market looking to borrow US$500 million, and LTA and JTC may well follow suit.
“I suggest MOF makes available trenches of government fund for competitive tender by all statutory boards and government agencies needing to borrow."
For some other MPs, they were eyeing new initiatives to spur the sustainable energy sector.
Nominated MP, Edwin Khew, said: “To develop Singapore as an ‘eco-hub’ we must promote and establish an environment for alternative energy, energy efficiency and other green businesses and initiatives to flourish.”
Abu Dhabi is prepared to spend US$15 billion and have set a benchmark. What are we prepared to spend?”
And there was also a call on the government to release more regular financial results, including the key performance indicators of each ministry.
MP for Jalan Besar GRC Denis Phua said this will help to improve the accuracy in forecasting.
She said: "Where necessary, issue surplus or deficit warnings so that Singaporeans understand better the contexts for major national policies and are less surprised at the end of the financial year.
“It also reduces the hype of the annual budget time and minimizes any unrealistic 'goodie bag' expectations," she added.
Ms Phua added that good forecasting should also be extended to non-financial impact of a ministry's policies on another.
For example, she said that the Youth Olympic Games 2010 in Singapore will possibly heat up the economy further. And this ought to be considered in the fiscal plan.
Another consideration was to make the income-tax rebate a continual feature of the annual budget.
MP for Ang Mo Kio GRC, Lee Bee Wah, said: “This can in turn help to stimulate the economy further. Lower income tax rates will also attract individuals to work here, rather than in other places like Hong Kong, where the top marginal personal tax rate is 15 per cent, compared to ours at 20 per cent."
MPs also called on the government to stop the brain drain. Tampines GRC MP, Mr Ong Kian Min said Singapore must not become the training centre of the world, where workers leave for greener pastures after they are being trained here.
One way is for Singapore to encourage innovation and work towards being a first-class economy. -CNA/vm
HDB Urged To Be More Compassionate In Arrears Cases
Source : Channel NewsAsia, 26 February 2008
The Housing and Development Board (HDB) came under the spotlight in Parliament on Tuesday with MP Ong Kian Min urging it to exercise compassion in cases of mortgage arrears.
The MP for Tampines GRC said that while the lower income group in other countries could move to cheaper housing, Singaporeans do not have that option as HDB flats are already the cheapest form of housing.
Related Video Link - http://tinyurl.com/2rqfpn
He recounted how nine families in his constituency approached him for help on Monday night, having received compulsory acquisition notices from HDB due to mortgage arrears.
Among them was 53-year-old Judy Mitchell, a single parent with a working daughter and an aged mother.
"When I lost my job, I had a hard time finding a job. A lot of it was due to age. If I did get a job, it was not adequate to survive, but I would just take it on, so that at least I could get the momentum moving," said Judy.
She is behind in her mortgage payments for almost six months now, and her arrears come up to almost S$11,000.
She had offered to repay the HDB some S$800 a month, but she said the housing board insisted on a repayment scheme of S$2,000 a month.
Judy said: "I would like HDB to look at my actual situation. I am the sole breadwinner in this family, and looking at what my total salary package is, (I hope) they could compromise on an amount I know I am able to pay monthly without a default, and also able to at least go to work, pay for my water and lights. This is my home. I really want to save my home."
Mr Ong has written two appeals to the HDB on her behalf, but these have been rejected.
For now, Judy and her family are waiting a valuation of their five-room flat before deciding on their next step.
Mr Ong said even if Judy decides to sell her current flat, she would still be unable to purchase a smaller flat, and is unlikely to get a loan from HDB or a commercial bank due to her age.
"I cannot imagine in Singapore, where we pride ourselves in our home ownership policy that a family of two working adults supporting one elderly family member would have their HDB flat repossessed and be left homeless. What is our social compact? There are those among us like Mdm Judy Mitchell who are trying their best, working hard, wanting to be self-reliant. I believe the government should step in and give them a helping hand," Mr Ong said.
The need for a more supportive housing board was also brought up by Mr Yeo Guat Kwang, an MP for Aljunied GRC.
Speaking in Mandarin, Mr Yeo touched on the problems faced by Singaporeans who have problems selling off a bigger flat to downgrade to a smaller unit.
Saying that HDB should help Singaporeans downgrade, Mr Yeo reminded the housing board that its mission is to help Singaporeans own their homes. - CNA/so
The Housing and Development Board (HDB) came under the spotlight in Parliament on Tuesday with MP Ong Kian Min urging it to exercise compassion in cases of mortgage arrears.
The MP for Tampines GRC said that while the lower income group in other countries could move to cheaper housing, Singaporeans do not have that option as HDB flats are already the cheapest form of housing. Related Video Link - http://tinyurl.com/2rqfpn
He recounted how nine families in his constituency approached him for help on Monday night, having received compulsory acquisition notices from HDB due to mortgage arrears.
Among them was 53-year-old Judy Mitchell, a single parent with a working daughter and an aged mother.
"When I lost my job, I had a hard time finding a job. A lot of it was due to age. If I did get a job, it was not adequate to survive, but I would just take it on, so that at least I could get the momentum moving," said Judy.
She is behind in her mortgage payments for almost six months now, and her arrears come up to almost S$11,000.
She had offered to repay the HDB some S$800 a month, but she said the housing board insisted on a repayment scheme of S$2,000 a month.
Judy said: "I would like HDB to look at my actual situation. I am the sole breadwinner in this family, and looking at what my total salary package is, (I hope) they could compromise on an amount I know I am able to pay monthly without a default, and also able to at least go to work, pay for my water and lights. This is my home. I really want to save my home."
Mr Ong has written two appeals to the HDB on her behalf, but these have been rejected.
For now, Judy and her family are waiting a valuation of their five-room flat before deciding on their next step.
Mr Ong said even if Judy decides to sell her current flat, she would still be unable to purchase a smaller flat, and is unlikely to get a loan from HDB or a commercial bank due to her age.
"I cannot imagine in Singapore, where we pride ourselves in our home ownership policy that a family of two working adults supporting one elderly family member would have their HDB flat repossessed and be left homeless. What is our social compact? There are those among us like Mdm Judy Mitchell who are trying their best, working hard, wanting to be self-reliant. I believe the government should step in and give them a helping hand," Mr Ong said.
The need for a more supportive housing board was also brought up by Mr Yeo Guat Kwang, an MP for Aljunied GRC.
Speaking in Mandarin, Mr Yeo touched on the problems faced by Singaporeans who have problems selling off a bigger flat to downgrade to a smaller unit.
Saying that HDB should help Singaporeans downgrade, Mr Yeo reminded the housing board that its mission is to help Singaporeans own their homes. - CNA/so