Tuesday, March 31, 2009

Mortgage Payments Worry S'poreans; Expats Fret Over Pay

Source : The Business Times, March 30 2009

Job security anxieties remain the main reason

A MAJORITY of Singaporeans worry about their ability to pay their mortgages, a survey by Zurich International Life (ZIL) showed.

'I wonder about the result if the survey is done now,' said Andy Robinson, ZIL Asia regional director in a recent BT interview. Singapore is experiencing its worst downturn ever with some forecasting that the economy could shrink as much as 8-10 per cent this year.

Seventy per cent of Singaporeans in the November survey were confident in their ability to save adequately while 60 per cent worry about their ability to pay mortgages. Mr Robinson thinks the Central Provident Fund mandatory contributions accounts for the optimism on savings while job security anxieties are keeping Singaporeans awake over their mortgages.

The survey which involved 212 Singaporeans and expatriates with a minimum monthly income of $4,000 revealed a general low level of confidence in economic recovery. Ninety per cent of expatriates are making changes in the allocation of their wealth, with more going to savings. Eighty two per cent of expatriates report a reduction in disposable income which warranted 62 per cent feeling the need for a change in their lifestyle.

'Part of that is buying less property,' said Mr Robinson referring to the changes in allocation of wealth by expatriates. Foreigners had been big buyers of high-end properties in the past five years. And over the past five years, more and more expatriates have increasingly switched to local terms from expensive expatriate packages, he added.

The survey also showed that priority of saving or investing remains at the top of the list of those asked. ZIL prepares two research reports a year asking Singaporeans and expatriates about their attitudes to financial planning and the correlation between their financial and lifestyle behaviour.

Far East Sells 97 Units Of Mi Casa Over Past Week

Source : The Business Times, March 31 2009

The 457-unit 99-year leasehold condo is selling well with upgraders.

Here's yet more evidence that there's still demand for attractively priced condos in the mass-market segment. Property tycoon Ng Teng Fong's Far East Organization has sold 97 units at its Mi Casa condo near Choa Chu Kang MRT Station since it began
sales last week.

Mi Casa: Located near Choa Chu Kang MRT Station, the 457-unit condo has an average price of $625 psf. Buyers who wish to opt for an interest absorption scheme will have to pay 3% more.

The 99-year leasehold condo has an average price of $625 per square foot. Buyers who wish to opt for an interest absorption scheme will have to pay 3 per cent more.

The 457-unit condo is being developed on a plot along Choa Chu Kang Drive which is diagonally opposite Lot One mall.

In a news release last night, Far East said Mi Casa is the first new private condo project in the Choa Chu Kang town centre in eight years and offers an 'attractive value proposition' to HDB upgraders and private home owners in the area.

Upgraders accounted for 80 per cent of Mi Casa's buyers. A number of buyers also own landed homes in the area and bought units at Mi Casa for investment and for their children, according to Far East. Mi Casa also drew some foreign buyers (such as China nationals and Malaysians).

Far East Organization unit Tian Hock Properties bought the Mi Casa site at a state tender in May last year for $116.01 million or $203 per square foot per plot ratio.

Over at the Balestier Road area, City Developments is understood to have sold another 30 units between Friday and Sunday at The Arte at Thomson freehold condo.

This brings total sales in the project to nearly 90 units. The 336-unit project, which will comprise two 36-storey blocks, is being offered at an average sellling price of about $880-890 psf.

At Somerville Road, boutique developer HLH Group has sold eight of the total 25 units at its D'Almira condo since it began previews three weeks ago.

The average price of the five-storey freehold apartment development is about $750 psf, says ERA divisional director Andrew Soh, who is marketing the project.

HLH is not offering any interest absorption scheme; buyers will have to make normal progress payments on their units when they are billed by the developer, in accordance with the stage of construction.

In the River Valley area, Fortune group sold another five units last week at The Mercury in Shanghai Road. The average price for the freehold project is '$1,200 psf plus', according to Fortune Development general manager Victor Soh.

Interest absorption scheme is available to buyers in exchange for a 3 per cent premium. To date, 64 of the total 67 units in the project have been sold.

US Home Prices In Freefall

Source : The Straits Times, March 31, 2009

US Economy

WASHINGTON - US HOME prices in the 20 largest cities fell by a record 19 per cent in January from a year ago in a downward spiral with no end in sight, the Standard & Poor's/Case-Shiller survey showed on Tuesday.

Home prices in 20 major US cities fell at the fastest rate on record in January and are now down a record 19 per cent in the past 12 months. -- PHOTO: AFP

The year-on-year decline was steeper than analysts' consensus forecast of an 18.6 per cent drop, and eclipsed December's record decline of 18.5 per cent.

The monthly survey found continued broad-based declines in the prices of existing single-family homes in the 20 top metropolitan areas.

A separate index of home prices in the 10 largest metropolitan areas also posted a record decline, of 19.4 per cent from January 2008.

The two monthly indices have fallen steadily since October 2007. On a monthly basis, home prices in the top 20 cities were down 2.8 per cent in January, after falling 2.6 per cent in December. In the 10 largest cities, prices fell by 2.5 per cent, after a drop of 2.3 per cent.

'Home prices, which peaked in mid-2006, continued their decline in 2009,' said David Blitzer, head of the index committee at Standard & Poor's.

'There are very few bright spots that one can see in the data. Most of the nation appears to remain on a downward path,' he said.

Average home prices across the US hovered around levels last seen in late 2003. From the peak in the second quarter of 2006, the 10-city index is down 30.2 percent and the 20-city index is down 29.1 per cent.

The three worst-performing cities on an annual basis were the former boom markets of Phoenix, Arizona, down 35.0 percent; Las Vegas (down 32.5 per cent) and San Francisco (down 32.4 per cent).

New York had a relatively soft decline of 9.6 per cent, and Dallas, Texas; Denver, Colorado; and Cleveland, Ohio fared the best, down 4.9 per cent, 5.1 per cent and 5.2 per cent, respectively. -- AFP

新乐园共管公寓 上周预售单位卖近八成

Source : 《联合早报》March 31, 2009

远东机构在上个周末的预售活动中,卖出了94个新乐园(MiCasa)共管公寓单位。据了解,这些单位的每平方英尺平均成交价格约625元。

靠近蔡厝港地铁站和第一乐购物中心的新乐园,是一座富地中海风格的郊区共管公寓项目。

这个位于蔡厝港通道的99年地契共管公寓共有460个单位,是发展商在去年5月以1亿1601万元,即容积率每平方英尺203元买下的,因此分析员估计建成的共管公寓,成本大约是每平方英尺550元。

上个周末,发展商只是开放了其中123个单位让一些贵宾选购。由于这是过去八年来,蔡厝港新镇一带所推出的唯一一个新共管公寓项目,因此新乐园吸引了许多组屋提升者进场。

远东机构营运总裁(房地产销售)谢文华透露,八成的新乐园买家是组屋提升者,他们来自蔡厝港、油池、武吉巴督和德惠区。“我们对预售成绩感到很满意,这显示蔡厝港镇中心的私人共管公寓项目有很好的需求。”

蔡厝港镇中心最后一次推出新的共管公寓是在2001年底,当时所有699个单位都在三个星期的预售活动中卖光。

市场人士指出,跟2008年相比较,过去一两个月的市道明显改善,虽然买家还是对价格非常敏感,但只要定价合理,地点和产品定位好的项目还是会有一定支持力量。

上个周末推出的新项目,还包括城市发展(CDL)的The Arte at Thomson共管公寓。这个项目在前个星期预售,并卖出了大约60个单位,即60%的推出单位,每平方英尺成交价格平均约880元。

据了解,发展商在上个周末再推出20个单位,但销售数据不详。相关人士透露:“上周末的销售反应相当好。”

The Arte是一个拥有336个单位的永久地契项目,位于汤申路和马里士他路旁的一条支路。据了解,已经成交的单位大多都是面积比较小的二、三卧房式单位。

上个周末新登场的,还包括本地上市公司合顺环球(Hup Soon Global)、特毅国际(Tee International)和一家泰国公司Chewathai联手,在泰国曼谷发展的The Surawong共管公寓。

这栋8层楼豪华共管公寓,位于曼谷的Silom地区,共有52个永久地契单位,售价从每平方英尺488元,即460万泰铢(约合19万6795新元)起。

房地产代理公司第一太平戴维斯(Savills)说,发展商在上个周末推出26个单位,结果成功卖出七成,即19个单位。它透露:“买家大多是新加坡人,或者在本地工作的外籍高管人才,有些是个人,有些是家庭,不过大多是买来自住的。”

金文泰两座组屋居民 为何对“一屋两门”说不?

Source : 《联合早报》March 30, 2009

电梯翻新计划为组屋居民带来电梯直达每层楼的便利,而许多人可能认为,要享有这样的方便,只需投票支持那么简单。

然而,新加坡有180座结构特殊的组屋,却让建屋发展局在翻新电梯时大伤脑筋,因为它们的设计使一些住户难以享有直达住家的电梯。

金文泰14街第101座组屋面向乌鲁班丹河和火车桥。一些居民因不愿舍去这样的风景,而不支持电梯翻新。(周柏荣摄)

碍于当初没有更好的方法,建屋局只能将电梯口开在两层楼梯级之间。居民出了电梯后,还得爬半层梯级才到家。30座组屋投票选择了这个设计。

不过,位于金文泰和后港的六座组屋拒绝了这样的设计。建屋局于是另思对策,后来想到在单位的阳台或前方多开一扇门直接通往电梯口,如此一来就能省却爬楼梯的麻烦。21座组屋在试验计划下以此设计展开翻新。

不过,受影响单位在翻新后有两扇门,一扇只通往电梯,另一扇只通往楼梯。居民对设计的好坏看法不一。后港四座组屋予以支持,前年底开始翻新电梯。金文泰两座组屋的支持率至今仍不足,电梯翻新工程一延再延。

“一屋两门”的创新设计,在居民眼里究竟有什么利与弊?它是带来更多方便,还是增添更多麻烦?记者走访受影响的六座组屋,了解居民有什么不同的看法。

金文泰14街第101座组屋面向乌鲁班丹河,环境清幽。一些居民喜欢从阳台眺望小桥流水的景致,呼吸新鲜空气。

有人因此担心在屋前建电梯井会破坏美景,外人也能从电梯口窥探住家。当周围组屋都已开始翻新电梯时,这里和毗邻的第103座组屋,翻新支持率一直达不到所需的75%。

前年11月,两座组屋就“一屋两门”的设计进行非正式民意调查,结果赞成率分别只达56%和65%。

该区议员迪舒沙说,当时若接着展开正式投票,两座组屋有可能因过不了关而被排在等候名单尾端。他于是要求建屋局先不要让居民投票。

眼看电梯翻新计划一延再延,居民的心情是五味杂陈的。有人确实为了风景才买下单位,无法想像屋前筑起电梯井后会是什么样子。也有不少居民逐渐步入老年,担心那一两层梯级有一天会变成难以克服的障碍。

住在第103座12楼的麦曼(68岁)四年前中风,从此得靠轮椅代步。她居住的楼层目前没有电梯。由于无法自行攀上楼梯,她必须等丈夫回家才能出门。

她说:“如果电梯直达我家,女佣就能推我到楼下走走,不用老是呆在家里。”

对因中风而得靠轮椅代步的麦曼(68岁)来说,住家外的一层梯级,是难以克服的障碍。

住在第101座的陈佩浈(53岁,诊所助理)虽能了解一些邻居对电梯的需要,但她认为目前的设计并不理想,担心电梯建成后会带来另一些问题。

她指出:“根据这个设计,电梯和楼梯是隔开的。如果有陌生人来敲门说电梯坏了,要我开门让他从后门走到楼梯,我要冒险让他进来吗?”

她也说,屋前一旦筑起电梯井,现在能观赏到的风景就全被挡住了。她还必须为阳台装上窗花。

另一名居民陈伊琳(33岁,家庭主妇)则觉得陌生人能从电梯口探进组屋,影响了住户的安全和隐私。

当听到其他居民的顾虑,住在14楼的麦先生(60多岁,退休)自己画了设计图,想办法让电梯和楼梯相通。他也建议电梯井可采用透明设计,看起来较明亮美观。

另一名居民叶瑞祥(63岁,退休公务员)更在今年初自己做调查,看是否已有更多居民支持翻新。结果他发现,支持率虽然已提高,却还需多四户家庭的赞成才可过75%。

他无奈地说:“当然失望啦,我想赞成的居民都会失望,但既然是这样就算了。”他透露,如果电梯迟迟不能获得翻新,他会考虑搬家。

不过,迪舒沙还是感到乐观,并承诺继续和居民沟通。他说:“我们一直积极传达关怀年长者的信息,成功改变一些居民的想法。相信我们渐渐就会达到目标。”  

建屋局说,要让这类组屋享有每层停留的电梯,目前就只有这样的做法。它也说,如果情况显示多数居民已改而支持设计,而该区的基层组织顾问或翻新工作委员会希望展开正式的投票,它将同意他们的要求。

后港四座组屋 翻新展开后 居民还一知半解

在投下支持电梯翻新的一票时,住在后港22街第245座组屋的方炳华(59岁,退休)没有料到,自己日后会对设计有这么多不满。

他在工程展开后才发现新电梯井相当靠近住家阳台,而工程师基于安全理由,打算把阳台约1.5公尺的部分围起。

“刚开始我还以为他们就围一点点,后来听其他邻居说才知道他们要围这么多。”他于是召集20户受影响的居民签名请愿,通过议员潘惜玉要求建屋局修改设计。

和金文泰14道的两座组屋一样,后港1道、3道和22街的四座组屋当初也因不赞成把电梯口开在两层楼之间,而获建屋局建议在阳台增设一扇门直达电梯。和前者不同的是,四座组屋在前年9月以介于76%到92%的支持率,同意展开电梯翻新。

当记者走访这些组屋时,翻新工作已进行了一半,预计最迟明年中可竣工。然而,还是有居民对最终的“成品”没什么概念,例如不知电梯只能通往设在阳台的大门,不能通往别处。

方炳华楼上的邻居爱薇不喜欢电梯和楼梯隔开的设计。她认为,从电梯出来只能走向大门,对居民构成危险。她问道:“万一有歹徒在电梯口等候,我要往哪里逃?”

该区议员潘惜玉说,为了消除居民的担忧,当局把一些电梯口的围墙高度减了一半,并设紧急按钮供居民在发生火患或电梯故障时求救。当局也在电梯口装置通风铁片,避免外人窥探屋里的情况。

针对有居民仍不清楚电梯设计一事,潘惜玉回应说,她之前已花了相当多功夫向居民解释,也亲自走访一些单位。此外,建屋局官员也分头上门向居民讲解设计,并在正式投票前做了民意调查。在民意调查和正式投票的阶段,当局都有办展览让居民参观,投票通知书也附上宣传册,清楚讲解电梯设计和所需费用。

居住在后港3道第249座组屋的张捷荣(55岁,自雇者)就表示有听过议员的讲解和参观展览,非常清楚电梯的设计。

他说:“虽然挡住了风景,也变得不那么通风,但长远来看,拥有电梯更重要。老实说,这是个不错的点子,让坐轮椅、年长和没有力气爬楼梯的人都能受益。”

住在第251座组屋的黄世平(65岁,退休)则认为,住家有两个门也无妨。他说:“万一有火患,我们就有另一个逃生口。带多一把钥匙也是小事,反正现在每天都已经带一大串钥匙出门了。”

后记

今年初,淡滨尼两座四层楼分隔式组屋成为率先采用“一屋两门”设计完成电梯翻新的组屋。媒体本月初受邀参观其中一座组屋,了解设计如何解决了电梯不能在每层停留的问题。当时受访的住户普遍对这个方法感到满意。

笔者事后翻查过去资料,发现金文泰和后港的六座组屋两年前也在探讨是否采用类似设计,而它们都拒绝了之前的“半层楼”设计。

笔者于是向这些组屋的居民了解他们是否已采纳新设计,结果发现新设计在金文泰14道的两座组屋无法过关。后港的四座组屋则赞成采用新设计,电梯翻新在一年多前展开。

在走访金文泰组屋时,笔者发觉,年长居民较迫切希望拥有每层停留的电梯,对设计的的好坏意见不多。较年轻的居民则会更关注设计如何影响住家的布局和他们的隐私,宁愿等当局提出更好的方法才赞成翻新。

另一方面,后港的组屋虽通过了新设计,但还是有居民对它一知半解。有人看到电梯井逐渐成形,才发现设计并不称心,后悔当初没有仔细考虑。

从“半层楼”到“一屋两门”的设计,建屋局的出发点是在成本允许的情况下(政府把平均成本限制在每户最多3万元),尽量为居民提供电梯直达每层的便利。

然而,从受影响居民反应也可看到,最实际可行方法未必能尽善尽美。当局只能在限制中继续寻求突破,根据所得到的反馈继续改良设计。在有更好的设计出炉之前,居民唯一能做的,是在衡量他们的需要后,作出取舍。

Sunday, March 29, 2009

Number Of Repossessed Properties Rises 18% In Q1

Source : Channel NewsAsia, 27 March 2009

The number of repossessed properties put up for sale by banks and financial institutions in Singapore rose by 18 per cent in the first three months of 2009 compared to the previous quarter.

A total of 53 properties were repossessed in the first quarter of 2009, up from 45 in the previous quarter.

Real estate consultancy firm Colliers International said its findings indicate a continued trend in mortgagee sale as a result of the worsening economy and rising level of retrenchments.

It expects more properties to be repossessed in the later part of the year or in 2010.

Of the 53 properties put up for mortgagee sale in the first three months of this year, 41 were residential properties. And among those, 27 were apartments, with the remaining 14 being landed homes.

Colliers said 12 properties were sold at auctions in the first quarter, with a total sale value of over S$17 million, over two times more than what was recorded in the fourth quarter of 2008. They included seven mortgagee sales and five owner sale transactions.

Colliers said auctions would remain popular with owners, going forward. It also expects a greater number of high-end and luxury properties to be placed for sale via auctions. - CNA/yt

洛杉矶最大豪宅叫价2亿2730万元

Source : 《联合早报》March 29, 2009

(洛杉矶美联电)已故美国电视剧制作人史培林(Aaron Spelling)的遗孀以1亿5000万美元(约2亿2730万新元)的天价,把他留下来的洛杉矶豪宅推出市面出售,创下美国史上叫价最高房屋的纪录。

史培林所留下的这栋豪宅以1亿5000万美元求售,创下美国历来叫价最高房屋的纪录。(美联社)

这栋法式庄园风格的豪宅建于1991年,共有三层楼。它的楼面为5248.98平方公尺,占地4.7英亩,是洛杉矶最大的一栋房子。它的附近除了有洛杉矶乡村俱乐部,还有花花公子创办人休·海夫纳的住所。

史培林所制作过的电视剧就包括《霹雳娇娃》和《飞跃比佛利》(Beverly Hills 90210)。他是在2006年去世。房屋经纪琼斯说,史培林的豪宅规模非常大,那里的一切都非常炫丽和奢华。

曾有报道指出豪宅里面有超过100个房间,就连史培林夫人也搞不清楚确切的数目,单单工人房间就有七个。不过,屋主都充分利用了每个房间。豪宅内的设施就包括了保龄球道、酒窖、品酒室、礼物包装室、湿度调节的银器收藏室、瓷器室、图书馆、健身房、以及媒体室等。此外,在5181平方公尺的阁楼上,还有一个美发与美容沙龙。

史培林夫妇最爱的房间就是放映室,里面有整套电影播放设备。只要一拉上窗帘,银幕就会自动从地板升起。豪宅外的其他设施则包括网球场、喷水池、人造瀑布、游泳池、屋顶玫瑰花园和果园等。有意的买主也不必担心办派对时宾客没地方停车,因为豪宅内有空间容纳100辆汽车。

史培林的夫人说,她对这栋房子又非常美好的感觉和回忆,但她还是打算把房子卖了。据了解,她已经在洛杉矶购买了一间价值4700万美元(约7122万新元)的两层楼公寓。

充满复古风味 大巴窑一组屋 建螺旋形楼梯

Source : 《联合早报》March 29, 2009

大巴窑一座组屋最近出现螺旋形楼梯,看起来就像中峇鲁一带旧式组屋特有的旋转楼梯,吸引不少公众的目光,纷纷猜想建屋发展局是否要恢复采用这类富有殖民地色彩的楼梯设计。

原来,这个位于大巴窑中路第186座的四层楼组屋,目前正在进行电梯翻新工程,但因为组屋结构复杂和建筑前后空间的局限,无法采用传统设计让电梯直达住家。

大巴窑一座组屋最近出现螺旋形楼梯,看起来就像中峇鲁一带旧式组屋特有的旋转楼梯,吸引不少公众的目光,纷纷猜想建屋发展局是否要恢复采用这类富有殖民地色彩的楼梯设计

建屋局花了两年半时间想出新方法克服问题——将原有的半边楼梯拆除改建成电梯井,然后在组屋后边装置新的螺旋形楼梯(geometric staircase)。新电梯口将面对单位,让居民直达住家。

另5座组屋同样设计

为让居民在电梯翻新期间一如往常上下楼,建屋局必须先装置螺旋形楼梯,才可以开始拆除原有的楼梯。它因此成为本地首座因电梯翻新计划而装置螺旋形楼梯的组屋。

原有梯级的另一半将保留,由于螺旋形楼梯的楼梯口是开在两层楼之间,居民日后若选择使用螺旋形楼梯上楼,就得使用部分原有梯级才能到家。

建屋局接受本报询问时透露,另有五座位于同个邻里的第177、178、183、184和185座组屋拥有类似特殊结构,因此也将采用同样的电梯和螺旋形楼梯设计。

这六座低层分隔式组屋(segmented block)没有公共走廊,每层楼梯只能通往相对的两个单位。它们的前半部分是商店,要通往组屋单位,必须使用建筑后边的楼梯。

建屋局说,若采用传统解决方案,电梯口将开在两层楼之间,居民必须上下半层楼的梯阶才可从住家到达电梯口,对年长者和轮椅使用者构成不便。

原有的梯阶

此外,若把电梯建在组屋后边,电梯口将开在组屋厨房附近的位置,电梯井的所在地也将非常靠近露天停车场,组屋后边的走动空间将缩小,对居民和公众也不便利。

建屋局的建筑师和工程师最后发现,现有的电梯设计都不能解决这种组屋的许多结构问题,才决定在组屋“里面”建电梯,“外面”建楼梯。

电梯翻新工程两个多星期前展开,预料今年9月竣工,届时居民可乘搭电梯直达住家。

由于低层组屋电梯服务的单位少,为控制成本,所使用的是日本和台湾私人住家常见的小型电梯(home lift)。这类电梯的面积约1平方公尺,一次能载三四人,升降速度慢,从一楼到四楼需要27秒,但足以容纳一张轮椅。

建屋局发言人说,由于螺旋形楼梯已在工厂预制(prefabricated),因此只需两天时间就能完成装置工程。电梯系统也将由不同组件构成,可缩短建筑工程,并减少工程带来的不便。

这批组屋大多是三房式单位,每个新加坡屋主在享有建屋局和市镇理事会的津贴后,需付1580元;外籍屋主则付全数3万元的实际成本。

另外,发言人指出,由于这个解决方法是全新的设计概念,当局需要一段时间来评估成效和收集居民反应后,才决定是否在其他邻里的类似组屋采用同样设计。

政府在2001年推出电梯翻新计划,让1990年前建造的组屋每层楼都有电梯停留,并定下让所有符合翻新条件的组屋在2014年完成翻新工程的目标。

居民:设计很独特但担心隐私和保安

受访居民认为,新的螺旋形楼梯设计很特别,也期待日后将享有的便利,但也有居民对新设计所带来的隐私和保安问题表示关注。

住在这座组屋3楼单位已有27年的曾国彬(59岁,保安人员),不曾在其他组屋看过类似楼梯。

他受访说,新的螺旋形楼梯独一无二,相当复古。

过去20年住在4楼单位的赖秀凤(63岁,退休者)也同意说:“新楼梯与众不同,好像只有以前的组屋才会有的。”

的确,拥有螺旋形楼梯的另一个组屋区,是本地历史最悠久的公共住屋区——中峇鲁。

这批低层战后组屋,上世纪30年代由改良信托局(Singapore Improvement Trust,即建屋发展局前身)根据当时英国新镇模式建造,因此富有殖民地色彩,是新加坡历史遗产的一部分。

原有的梯阶部分拆除以建电梯井。

好奇路人禁不住拾级而上

赖秀凤微笑说:“现在,螺旋形楼梯来到大巴窑,有不少路人都很好奇,很多人都会停下脚步来看,一些人还会禁不住拾级而上。”

另一个居民艾芮克认为,螺旋形楼梯的设计美观,超乎想象,当局选择的鲜黄色调也为这个屋龄约40年的组屋注入现代感,显示建屋局正努力为旧组屋改头换面。

不过,赖秀凤指出,如果碰到刮风下雨的坏天气,居民恐怕会被淋湿。曾国彬却不担心日晒雨淋,因为新楼梯的最顶端有遮盖。

艾芮克也认为,螺旋形楼梯可能带来隐私和保安问题,觉得建屋局的这个新设计有待改进。

他指出:“由于新楼梯非常靠近组屋单位,不法之徒很容易从楼梯“跳”上冷气机,再从厨房或厕所窗口潜入组屋单位。”

艾芮克也说,陌生人可从新楼梯窥探进组屋,他就曾清楚看到男性邻居在厕所裸着上半身冲凉。

他因此建议,楼梯的侧边可添置一层塑料屏风,以保护居民的隐私。他日前已发了电邮向建屋局提出看法和建议。

对于居民这方面的关注,建屋局受询时说,楼梯的侧边安装了尖刺形的防护屏,可阻挡不怀好意者攀越楼梯潜入组屋。

尽管新设计可能有不完美之处,居民仍期待翻新工程完成后带来的便利,他们现在都不介意工程所带来的噪音和满天飞的灰尘。

赖秀凤说:“大巴窑是成熟组屋区,年长者多,他们上巴刹买一大堆东西回家,以后有了电梯就方便许多。”

四美大巴窑私人组屋 料按原计划下月推售

Source : 《联合早报》March 28, 2009

虽然经济前景不乐观,去年标下私人组屋地段的发展商,预料仍然会按照原定计划在下月推售新组屋。

由私人发展商设计、兴建和销售(DBSS)的四美和大巴窑私人组屋地段,分别由森联集团和海峡双威成功标得。这两家发展商接受本报询问时说,它们将如期推出有类似公寓装潢的组屋,但不便透露确切发售日期和组屋售价等详情。

不过,经记者拨发这两个DBSS项目的热线电话查询,名为“Parc Lumiere”的四美私人组屋,可能会在下月底推出市场,而名为“The Peak@Toa Payoh”的组屋则可能在下月中发售。

据森联集团发言人透露,“Parc Lumiere”建在四美路,非常靠近地铁站和东福坊购物中心。八座12楼高的组屋共有360个单位,其中240个是面积约107至111平方公尺的五房式单位,120个是面积约94平方公尺的四房式组屋,估计2012年5月建成。

发言人说,新组屋将设有凸窗(bay window)和阳台,采用大量玻璃,以及在卧房装置冷气系统。

“The Peak”将建在大巴窑1A巷,位于大巴窑地铁站和布莱德地铁站之间,步行前往两地铁站大约10分钟,附近有巴刹、邻里中心和学校。

海峡双威发言人受询时不愿透露更多详情,只说将建造三、四和五房式组屋。但据了解,“The Peak”将建五座组屋,其中两座高42层楼,另三座高40层楼,共有1200个单位,并将建造多层停车场,预计2012年8月竣工。

经济衰退似乎已导致私人组屋的需求转弱,碧山24街的私人组屋发展商最近就推出“买组屋,送汽车”的幸运抽奖来刺激需求。如今经济低迷,发展商还是决定如期销售私人组屋,令人关注。

对此,市场分析员普遍认为,以中高收入家庭为对象的私人组屋是专属市场(captive market),因此发展商何时销售组屋并不很重要。

卓登新达国际(Chesterton Suntec International)研究部主管陈瑞谨说:“私人组屋以自住业主为主要对象,而非投资者。因此,私人组屋的需求基本上还是由购屋者的住屋需要推动,而不会被经济前景或市场情绪左右。”

博纳集团(PropNex)总裁伊斯迈也同意说,私人组屋仍有它的市场,因为这类组屋要锁定的购屋对象是特定的消费群,往往是那些希望在无需装修的情况下就能立刻迁入新居的购屋者。

至于这两个私人组屋项目是否会获得公众的青睐,陈瑞谨认为反应将会不俗。他解释说,一些较有经济能力的购屋者可能因金融危机而转购私人组屋,而不是选择更昂贵的私宅项目。

售价是决定 市场需求的关键

伊斯迈则说,私人组屋毕竟仍属公共住屋,购买者须符合建屋局的购屋条例,这意味着,首次申购者将可申请公积金购屋津贴及额外公积金购屋津贴,有些购屋者最终将无需缴付现款,所以私人组屋还是会继续吸引人们申购。

不过,陈瑞谨强调:“负担能力很重要,如果发展商把私人组屋的售价定得太高,需求可能减弱……售价将是决定市场需求的关键。”

伊斯迈说,以四房式单位为例,东部转售组屋的售价每平方英尺约330元至350元,如果森联集团把售价标在每平方英尺400元以上,那恐怕很难吸引购屋者。

他指出,如果售价在400元以上,那购屋者倒不如考虑购买私人房地产。私宅价格最近下滑,位于四美附近的白沙莉雅苑(Livia)公寓就以平均每平方英尺600元左右售出,而邻近的勿洛蓄水池路“Waterfront Waves”公寓的售价也从每平方英尺580元起。

陈瑞谨说,把建筑成本和土地成本加在一起就能计算回本价,如果发展商想赚取20%利润,就能大概算出售价,不过发展商预料会参考附近组屋的转售价,然后再决定如何定价。

按照大巴窑私人组屋地段的成功投标价,它的容积率是每平方英尺160元,因此五房式组屋的售价预计将介于65万元至70万元,四房式则不超过55万元。四美组屋的容积率每平方英尺是137元,组屋售价应该比较低。

Saturday, March 28, 2009

Time To Invest In Stocks And Property, Says Li Ka-Shing

Source : The Straits Times, March 28, 2009

HONG KONG: - The oracle of Hong Kong has spoken. And his message: It's time to consider buying stocks and real estate.

The proclamation on Thursday by Mr Li Ka-Shing, the self-made billionaire who controls some of Hong Kong's largest companies and carries enormous sway among investors throughout Asia, was made at a rare public appearance.

Exuding confidence, he joked with reporters and looked anything but depressed about the sharp fall in profit his companies reported on Thursday.

Whether he is proved right about stocks and property - and he certainly has a lot to gain personally if he is right - his comments come at a time when stock markets have rallied on hopes that the economic slump may be bottoming out.

'If you have money in your pocket', consider buying into stocks, said the tycoon.

As for the property market in Hong Kong, he said: 'History tells us that if you buy in a slow market, in the medium term, you get good returns.'

He advised against borrowing to invest in what remains a shaky and volatile environment.

Even though they were couched with caution, Mr Li's comments were enough to echo around the investment world and helped send the Hang Seng Index up 3.6 per cent on Thursday.

Shares prices closed 0.07 per cent higher yesterday as investors traded cautiously after the recent bull run. - NEW YORK TIMES

Property Auction Sales Up In Q1

Source : The Business Times, March 28, 2009

More mortgagee properties going on the block, with trend seen deepening.

SOME $18 million worth of properties was transacted at auctions in the first quarter of this year, more than three times the $5.4 million notched up in the preceding quarter and also surpassing the $9.5 million in Q1 last year.

The market revved up in March after a muted start in January and February.

Colliers International figures also showed that while the number of repossessed properties put up for auction sales by banks and financial institutions (or mortgagee properties) rose 17.8 per cent quarter on quarter to 53 in Q1 2009, the number of properties put on the auction block by owners themselves slipped 15 per cent over the same period to 136.

The property consultancy group's deputy managing director and auctioneer Grace Ng is predicting only a slight increase in the number of mortgagee sale properties being put up for auction in the next quarter. However, with an expected increase in retrenchments, which would result in more defaults by borrowers on loan repayments, Ms Ng reckons the pace of mortgagee sale properties going under the hammer could pick up later this year or next year.

'There's generally a lag time of about six months or more between when a buyer defaults on his loan repayments and when the bank repossesses the property and puts it up for auction sale,' Ms Ng observed.

She recalled that during the Asian financial crisis, the number of mortgagee sale properties put up for auction rose markedly only in first-half 1999, although retrenchment numbers had begun to rise as early as Q4 1997.

However, she pointed out that some mitigating factors are also at play this round which may reduce banks' propensity to race to auction houses when borrowers default on mortgage payments. 'Financial institutions tend to be more sympathetic and flexible now compared with the Asian crisis days. For example, to help owners ride through this trying period, some financial institutions have provided options, like allowing borrowers in financial difficulty to service only interest payments. Such a move helps reduce or delay the number of properties being repossessed,' Ms Ng said.

DTZ's senior director for investment advisory services and auctioneer Shaun Poh said: 'This time, both banks and borrowers are better prepared than during the Asian crisis, when some people panicked and just handed the keys to their banks. Now, banks are more prepared to talk to the borrowers; that's partly why we don't see a lot of mortgagee properties put up for auction. Banks are trying to space out the properties a bit, restructure, renegotiate. And they're asking owners to try and sell their properties themselves first, whether it's by auction or private treaty.'

'It's also a value preservation strategy. Banks have learnt from the last round that if they pull the plug and take over a property, its value falls. Potential buyers' perception is that they can strike a bargain for mortgagee sale properties as they're like fires sales,' Mr Poh added.

Colliers' Ms Ng suggests another reason for banks not being in a hurry to foreclose on properties this round may be due to a rule change in 2002 that gave banks first claim to a mortgaged property - ahead of the Central Provident Fund Board - in the event of borrower default. 'The pressure to foreclose the property by banks/financial institutions is now lower, as their exposure to losses - due to unrecoverable outstanding loan amount - is reduced,' she added.

Colliers' analysis showed that 77 per cent or 41 of the 53 mortgagee properties that went on the auction block in Q1 were residential properties; 27 were apartments/condos while the remaining 14 were landed homes. These landed properties were mostly in District 19, which includes Serangoon Gardens, Hougang and Punggol.

'We can expect to see more apartments/condos surfacing at auctions as there are about 14,600 non-landed properties due for completion in the next two years,' Ms Ng said.

Just four properties were sold at auction for nearly $5 million in January and February this year but things started to hot up a bit in March, with eight properties transacted for $13 million. 'The price gap between sellers' asking price and buyers' offer price appears to have narrowed in March. The rallies in the stockmarket, together with the positive take-up rate at developers' launches in the past two months, seem to have spilled into the secondary market - resulting in buyers' commitment to purchase the units.

'Interestingly, owner occupiers constitute the bulk of buyers making commitments to purchase now,' Ms Ng said.

Number Of Mortgagee Properties On Auction Block Up In Q1

Source : The Business Times, March 27, 2009

The number of repossessed properties put up for auction sale by banks and financial institutions in Singapore has risen by 18 per cent - from 45 in fourth quarter 2008 to 53 in Q1 2009, according to Colliers International.

'This indicates an impending trend of continued growth in the number of properties put up for mortgagee sale, which is in tandem with the deteriorating economy and rising level of retrenchments,' the property consultancy said in a release issued on Friday evening.

Colliers deputy managing director and auctioneer Grace Ng said: 'We can expect to see a more significant number for repossessed properties in the later part of the year or in 2010. This is due to the general lag time of approximately six months or more - between when a buyer defaults on his loan repayments and when the bank repossesses the property and puts it up for auction sale.'

Expats' Recession Blues

Source : The Straits Times, March 28, 2009

IT WAS meant to be a holiday to see his elder sister but in the one week that Mr Filip Maes spent in Singapore last April, he managed to secure two job offers - and from top-notch global asset management firms too.

Ecstatic, the Belgian returned to New York, where he was working in hedge fund portfolio financing, turned in his resignation and packed his bags for Asia.

Shortly after he arrived in Singapore last August, however, he received a phone call from his prospective employer telling him that his services were no longer needed - even before his work contract had been signed.

Read the full report in The Sunday Times.

新推出519个四、五房式单位 榜鹅预购组屋比同区转售组屋便宜

Source : 《联合早报》March 27, 2009

建屋发展局在榜鹅推出新预购组屋项目(BTO),建造413个四房式和106个五房式单位,售价比该区的组屋转售价格低。

这个名为“The Nautilus @ Punggol”的组屋项目位于榜鹅东和榜鹅域(Punggol Field)的交界处,附近有榜鹅生活聚场(Punggol Plaza),里头设有能满足居民日常所需的超级市场和食阁等设施。绿苑小学(Greendale Primary School)、绿苑中学和弥陀学校(Mee Toh School)等学府也近在咫尺。

组屋项目“The Nautilus @ Punggol”共建八座组屋,有413个四房式和106个五房式单位。

该地段共建八座组屋,单位面积从90平方米到110平方米不等。四房式组屋的售价介于22万8000元至27万4000元,五房式介于30万5000元至35万7000元。

与去年底推出的榜鹅预购组屋项目“Punggol Arcadia”和“Punggol Regalia”比较,这批组屋的售价较便宜,因为它离榜鹅地铁站较远,地点不如之前推出的两个组屋项目适中。另外,这个项目所建造的是标准组屋,室内设施一般,整体设计感也不如前两个项目的优质组屋来得突出。 

建屋局重申,当局是参考该区的组屋转售价格后才为预购组屋定价,因此预购组屋的价格都会比市价来得低。除了当局的高额津贴,家庭月入在5000元或以下的申请者也能享有高达4万元的额外公积金房屋津贴。

根据当局的计算,预购组屋的售价仍维持在国人可负担的水平。以一个月入4300元的中等收入家庭来说,要是他们购买一个售价25万元的四房式组屋,每月所需缴交的房屋贷款约900元。这笔贷款完全可从他们的公积金户头里扣除,所以无需掏出现金支付。

博纳集团(PropNex)企业通讯及行销经理陈家扬相信,The Nautilus@Punggol应该会获得不俗的反应,因为其售价比该区的组屋转售价格低约20%至30%。他说,目前的经济走势低迷,榜鹅组屋的转售价格已自去年第四季起开始滑落,因此这批预购组屋的保守定价是务实的。

昨天是组屋接受申请的第一天,截至傍晚5时,519个单位共获得72份申请。

公众可通过建屋局网站www.hdb.gov.sg提出申请,并可到大巴窑建屋局中心3楼展示厅参观及索取销售资料,展示厅平日开放时间是上午8时至下午5时,星期六是上午8时至下午1时。

公众也可上建屋局网站,或电邮hdbsales@hdb.gov.sg,或办公时间拨1800-8663066询问详情。申请截止日期是4月8日。

Designer Hotels The Next Big Thing

Source : The Business Times, March 27, 2009

Hotelier Ted Fang wants to create a new breed of hotels to target independent-minded travellers

THE next big thing in the hotel industry is something which will be coined 'designer hotels', or so believes hotelier Ted Fang. And that's exactly what he plans to do next.

Mr Fang: 'A designer hotel is a cross between a boutique and luxury hotel. Unlike a typical boutique hotel with about 50 rooms, we're aiming for at least 100 rooms with designer fittings created by international designers'

The Singaporean entrepreneur made his mark in the hotel industry when he acquired the master franchise of Day's Inn hotels in China (including Greater China) in 2003. With 58 hotels already in the chain, the Day's Inn brand is already the fastest growing three and four star hotel chain in China.

Now, though, he wants to go upscale, so Mr Fang - who runs the company Frontier Group with his brothers Harry and David Tan - is looking to create a new breed of hotels to target a growing breed of independent-minded travellers.

'Our idea of a designer hotel is a cross between a boutique and a luxury hotel,' says Mr Fang. 'Unlike a typical boutique hotel with about 50 rooms, we're aiming for at least 100 rooms with designer fittings created by international designers.

'But although it is designer, it won't be a six-star super luxurious offering. Instead our target market really would be a hip business traveller who doesn't want to live somewhere too staid and wants something that is comfortable yet fashionable.

'Imagine a W Hotel but less pricey and more functional and you pretty much get the picture.'

This new brand of hotels marks the company's first move to create a completely new brand separate from the already established name of Day's Inn.

He adds that the brand will be created by the brothers as an expansion to their hotel management business by buying over properties to gain more control over the hotels.

Through Tera Capital - an investment management company started and run by Mr Fang, the brothers are also looking to lease or purchase existing properties/projects in China.

Previous Day's Inn projects were franchise/ma nagement deals between Frontier and developers/owners in China. Frontier does not own any of the hotels outright, a situation Mr Fang says will change.

'In a short span of four years, from one Day's Inn hotel in China there are now 58,' says Mr Fang. 'Having done well, we think that now is the right time to take that step into actual ownership of hotels.'

Especially as he believes the hospitality market is on an upward trend.

He says: 'The hospitality market will continue to grow very rapidly and you will see a boom within the next five years in China's consumer market.

'As China becomes less reliant on export-oriented businesses, the domestic market and middle class will grow and expand very quickly in the coming years. And we are positioning ourselves to benefit directly from this by being the dominant player in our markets. We still have a very long road of growth ahead of us.'

Although the company has been looking into ownership for awhile, ironically it was the economic crisis that pushed them over the edge.

Muses Mr Fang: 'Previously, land and property prices were just too expensive. It didn't make economic sense to buy. Especially with the room rates of the Day's Inn (around US$50) and Day's Hotels (around US$90) so affordable, the numbers simply didn't add up.

'Now, with prices of property so much lower, our calculations show that it now makes economic sense to buy. In fact, with prices so attractive, I'm going to be bullish and say if we don't buy now, then when?'

HDB Launches Latest BTO Project In Punggol

Source : Channel NewsAsia, 26 March 2009

The Nautilus@Punggol is the Housing and Development Board's (HDB) latest Build-To-Order (BTO) project and the first in that area.

The Nautilus@Punggol

Prices for its 4- and 5-room units are about 20 to 30 per cent lower than the resale flats in that vicinity, signalling generous subsidies for these new flats.

The Nautilus@Punggol will have eight blocks comprising some 520 flats. Of these, nearly 80 per cent are 4-room flats and the rest are 5-room apartments. HDB said the prices of the new flats are affordable for first-time buyers.

Giving a comparison of resale flats about seven years old in Punggol, HDB said 4-room resale flats are currently going at between S$306,000 and S$350,000, while 4-room flats at The Nautilus will be sold at between S$228,000 and S$274,000.

Likewise, The Nautilus' 5-room flats are priced in the range of S$305,000 to S$357,000 against the resale price range of S$368,000 to S$428,888 for units in the Punggol area.

At such prices, analysts expect strong demand for the project.

Adam Tan, marketing manager, Propnex, said: "It will probably be about three times or more oversubscribed because they are releasing a rather small number of units for this project. Punggol is an up-and-coming estate. It's no longer a backwater estate – it's coming into its own."

HDB added that besides enjoying a generous market subsidy, eligible first-time buyers whose average monthly household income is S$5,000 or less can also qualify for an additional CPF Housing Grant of up to S$40,000. This grant can be used to offset the initial downpayment.

HDB also said that based on the income of flat applicants in the fourth quarter of last year, an applicant for The Nautilus@Punggol whose income is at the median level will not need to fork out cash to meet their monthly housing commitments, which would be fully covered by their monthly CPF contributions.

The Nautilus@Punggol is part of HDB's programme to remake the heartlands. For the whole of this year, HDB is planning about six BTO projects in Punggol, building some 3,000 new flats in that area.

Applications for The Nautilus@Punggol flats close on April 8.- CNA/so

HDB Launches New Batch Of Flats In Punggol

Source : The Straits Times, March 27, 2009

Units are smaller and cheaper due to design and location

The Housing Board (HDB) yesterday launched its first batch of new Punggol flats for the year.

Units are priced at 10 to 16 per cent below the launch of Punggol Regalia in December, primarily due to location and design features.
















The flats are slightly smaller and 'further from the town centre and main transportation nodes', said an HDB statement yesterday.

The Nautilus @ Punggol is a standard project - essentially new flats with minimal frills and basic features.

On offer are 413 four-roomers of 90 sq m going for $228,000 to $274,000 and 106 five-roomers of 110 sq m priced from $305,000 to $357,000.

The Nautilus, consisting of eight blocks of 18 storeys each, is on the eastern side of the suburb and further from the Punggol town centre.

It is served by the Riviera and Coral Edge LRT stations.

In contrast, Punggol Regalia, located at a prime spot next to Punggol MRT station , is a premium project priced at $252,000 to $316,000 for a four-room unit and $342,000 to $428,000 for a five-room unit.

Premium flats come with enhanced architectural designs and better internal finishes.

PropNex chief executive Mohamed Ismail said he expected healthy demand for the Nautilus although it 'may not be as good as' the response to HDB's Woodlands project launched last month.

Called Champions Court, that development offered 815 units, ranging from studio apartments to five-room flats.

ERA Asia-Pacific's associate director Eugene Lim said the Nautilus is 'very attractively priced' although its location may not be as alluring as previous Punggol projects.

In the long term, however, Punggol's transformation into a waterfront town will draw first-time home owners, he said.

The Nautilus will be constructed under the HDB's build-to-order (BTO) scheme where flats are built only if a certain level of demand is reached.

The HDB has said it plans to launch about 3,000 BTO flats in the first half of this year.

These include 1,400 smaller units, from studio apartments to three-roomers.

Buyers are likely to see more new flats in Punggol this year as the HDB moves to build up the suburb's population.

A site called Punggol Residences, next to Punggol MRT station, was recently marked as being under construction on Singapore Land Authority maps.

By 5pm yesterday, the HDB had received 72 applications for the 519 Nautilus flats.

In contrast, Champions Court attracted 205 applications for 815 flats on the first day of its launch.

Punggol BTO Project Launched

Source : The Business Times, March 27, 2009

THE Housing & Development Board (HDB) yesterday launched a build-to-order (BTO) project at Punggol - the second of the year after one launched at Woodlands in February.

The 519-unit Nautilus @ Punggol, at the junction of Punggol East and Punggol Field, will have 413 four-room flats and 106 five-room flats.

Four-room flats will sell for $228,000-$274,000, while five-room flats will cost $305,000-$357,000. These prices are cheaper than those of similar flats in the market, which makes them affordable for first-time buyers, HDB said. Nautilus units are priced lower than recent BTO launches there mainly because of differences in location and design, it said.

Recent offerings Punggol Arcadia and Punggol Regalia are premium projects with enhanced designs and better internal finishes, while Nautilus is a standard project with more basic features. Nautilus is also further from the town centre and main transport than the other two BTO projects.

Nevertheless, analysts expect solid demand. 'Nautilus is expected to be popular,' said Propnex spokesman Adam Tan. The flats are 'very attractively priced'.

Recent BTO offerings by HDB have seen strong demand. The Woodlands BTO project launched last month was more than four times subscribed.

And two other projects launched late last year - one in Choa Chu Kang and the other in Punggol - also saw good take-ups.

HDB intends to launch about 3,000 flats in Punggol this year as part of plans to remake the estate.

Hard Rock Hotel To Open On Sentosa In 2010

Source : The Business Times, March 27, 2009

A HARD Rock Hotel will be one of four hotels to open at Resorts World at Sentosa (RWS) in the first quarter of 2010.

Collectively, the four hotels will provide about 1,350 rooms. The other three slated to open in Q1 2010 are Maxims Tower, Hotel Michael and Festive Hotel.

'The Hard Rock Hotel Singapore is a welcome addition to our portfolio,' said Hard Rock International's CEO Hamish Dodds.

The five-star, US$223 million hotel will have 360 rooms, conference facilities and a ballroom that can seat up to 7,300.

Room rates are likely to be 30 per cent dearer than hotels in the surrounding area, as is usually the case with hotels in other theme parks, said RWS chief executive Tan Hee Teck.

Mr Dodds acknowledges the travel slump sparked by the global economic downturn has hit hotel room rates and occupancy levels, but is confident the Hard Rock brand will outperform its competitors in the four to five-star category.

Hard Rock International, which now has 124 Hard Rock Cafes and nine hotels/casinos, is expanding in the US and overseas.

Major projects are on the way in Macau and Penang - scheduled to open this year - as well as in Palm Springs, Atlanta and Panama in 2010. Hard Rock Hotels will also open in Dubai in 2011 and Abu Dhabi the following year.

Despite the tough economic environment, Hard Rock International grew its top and bottom lines last year. Top line was up 7-8 per cent, said Mr Dodds, who declined to reveal figures.

The $6.59 billion RWS project will have a total of 1,800 rooms spread over six hotels, plus a casino and attractions such as South- east Asia's only Universal Studios theme park.

The project expects to generate more than 9,000 jobs by the end of this year and a total of 10,000 when it is fully up and running. It expects 15 million visitors in its first year.

Home Hunters Pack Showflats In Balestier

Source : The Straits Times, March 27, 2009

SOME home hunters have been packing showflats in the Balestier area and buying units, even as the general property market remains weak.

City Developments (CDL) said yesterday it has sold 'about 60 per cent' of the 100 units at The Arte@Thomson at an average price of $880 per sq ft since a hush-hush preview started last Friday.

The Arte has 336 fairly large units in two 36-storey blocks in Jalan Datoh, off Balestier Road.

The 60 or so units were transacted at $852,800 to $2.46 million, said a CDL spokesman.

Most of those sold were two- and three-bedroom units. The two-bedroom units are 1,055sqft, while nearly half of the project comprises three-bedroom units ranging from 1,399 sq ft to 1,625sqft.

CDL said it had extended the interest absorption scheme (IAS) to buyers during the preview at no extra cost, but could not yet say how many buyers had taken advantage of it.

'Buyers are given some time to decide if they wish to take up the IAS,' said the spokesman.

The scheme allows buyers to defer the bulk of the purchase price until completion on condition that they take up a loan at the point of sale.

The CDL spokesman said the $880 per sq ft price was being offered for a limited number of units only. 'We will be reviewing the price and adjusting it upwards progressively,' he said.

The encouraging sales at The Arte came amid a still-slow market as some other launches see relatively weak interest. Demand for high-end homes, in particular, remains poor.

New home sales in February were lifted to a relatively high level, but that was largely due to the strong sales at three mass to mid-end projects. Many buyers went for small units as their absolute prices were low, and hence affordable.

Just last week, Keppel Land deferred the construction of two yet-to-be-launched projects - Marina Bay Suites in Marina Bay and Madison Residences in Bukit Timah - because of the slumping market.

In the Balestier area, the new showflats benefited from spillover crowds from the various launches, said Savills Residential director Phylicia Ang, who is marketing the 104-unit Domus in the area.

Released for sale two weeks ago, Domus, in Irrawaddy Road, welcomed visitors who had initially attended The Arte preview.

So far, 33 units - out of the 59 launched at Domus - have been sold at an average of $900 per sq ft, or from $480,000 to $1.2 million, said Ms Ang.

The sales included 20 one-bedroom units of 474sqft.

Novelty Group's I-Residences, a 70-unit project in Irrawaddy Road, is about 50 per cent sold since its private preview late last year.

Nearby, on the former Ruby Plaza site, Soilbuild had a preview for The Mezzo, which offers a 6 per cent rental guarantee for two years. It did not comment on sales.

CDL Sells 60 Units In The Arte At Thomson

Source : The Business Times, March 27, 2009

CITY Developments Ltd (CDL) sold about 60 apartments at its 336-unit project The Arte at Thomson last weekend.

The Arte at Thomson: The freehold project comprises two-, three- and four-bedroom apartments, as well as penthouses

The developer said yesterday that the average selling price was $880 per sq foot (psf). It released 100 units during the 'private preview' and will release more this weekend.

The freehold project comprises two-, three- and four-bedroom apartments, as well as penthouses. Most of the units sold last weekend were smaller two- and three-bedders.

Unlike other recently launched projects, units at The Arte are large, which means buyers have to fork out more.

For example, two-bedders are 1,055 sq ft and three-bedders range from 1,399 sq ft to 1,625 sq ft. Assuming $880 psf for a two-bedder, the price of the smallest unit would be $928,400.

But according to CDL general manager Chia Ngiang Hong: 'The Arte offers superb value for a prime freehold property in the Thomson area. Buyers get a luxurious condo without paying a premium price.'

CDL is offering an interest absorption scheme.

Analysts expect more projects to be launched in coming weeks as developers try to capitalise on a recent surge in buying interest. They sold 1,323 new private homes last month - eleven times more than in January. Numbers are expected to be strong for March as well, on the back of sales at The Arte, and at UOL Group and Kheng Leong's Simei condominium Double Bay Residences, where more than 200 units were sold this month.

Amid the buying surge, BT understands that Far East Organization is set to launch its mass market project Mi Casa. The 457-unit development near Choa Chu Kang MRT is expected to be popular with HDB upgraders in neighbouring estates.

Separately, Tee International and Hup Soon Global said that they are teaming up with a Bangkok-based company for the Singapore launch of a freehold luxury condominium located in the Thai capital. The Surawong will be launched this weekend at the Grand Hyatt Hotel here.

Househunt 2009

Renewed Interest In UK Homes

Source : The Business Times, March 26, 2009

Sliding home prices and the weaker pound are wooing investors back to London.

ASIAN, Russian and other foreign buyers are back, tentatively examining potential investments in London's residential property market, according to agents. These investors are at an exceptional advantage over local residents and investors as sterling has depreciated considerably since its peak in the first half of 2008. Compared with last year, a Singaporean investor can buy sterling at a third lower than its peak levels.

Bursting of the bubble: House prices in London have fallen between 20 and 30 per cent, and economists caution that in the current depressed economic climate property prices could slip further in the coming months

The UK property market reached its bubble heights towards the end of 2007. Since London residential real estate prices have fallen between 20 and 30 per cent, according to agents, prices for Singaporeans and other investors are at 40 to 60 per cent discounts from the top.

'There will be many stages and regional variations in the future trajectory of apartment and house prices,' says Yolande Barnes, director of research at Savills. 'The market will test the nerves of both home owners and investors but the opportunities for those wanting income returns and the prospect of long-term growth are clearly in place now.'

UK investors will benefit from the sharply lower home prices and mortgage rates; however, they face the disadvantage of banks now requiring deposits of at least 30 to 40 per cent, whereas during the free-wheeling boom days, deposits could be 10 per cent and sometimes even lower.

Ms Barnes and other estate agents and economists thus caution that in the current depressed economic climate property prices could slip further in the coming months. But they believe there are potential bargains. They expect the market to bottom out in 2010 and begin rising in 2011 and 2012.

There are some economists, however, who fear that the market will remain depressed for several years. Roger Bootle, head of economic forecasting agency Capital Economics, predicts a rise in repossessions and an increase in those entering negative equity. His figures indicate that about 3.5 million UK households will fall into arrears - double the number seen in the early 1990s downturn. Repossessions could hit 90,000 this year, he says - much more than the Council of Mortgage Lenders' prediction of around 75,000.

Mr Bootle, who had predicted property price declines some time before the bubble hit its peak, now expects a further drop in UK house prices with a peak-to-trough fall of between 40 per cent and 45 per cent..

There is also the danger that a depressed, over-borrowed British economy is vulnerable to further sterling weakness and that the present currency rally won't last. Thus foreign investors need to proceed with caution and be highly selective, both with properties and locations, if they intend to go bargain-hunting in the London and broader UK real estate market. For example, property in the London Docklands surrounding Canary Wharf, where several stricken major investment banks are situated, is very depressed. Supplies of apartments are well in excess of demand, estate agents say. The same applies to Notting Hill Gate, a favourite with investment bankers.

Anecdotal evidence, however, suggests that interest from foreign and local buyers who don't require mortgages is already much higher, says Ms Barnes of Savills. The decline in values has raised gross rental yields of prime properties to 4.5 per cent from around 3 to 3.5 per cent during the 2007/2008 property bubble while net yields have risen from 2.3 per cent to 3.5 per cent. This compares with money market rates of around one per cent and long-term government bond yields of around 3 per cent.

Brendan Brown, head of research at Mitsubishi UFJ Securities International, believes that considering the illiquidity of property as an investment and the risk of 'voids', or vacant periods, the rental yields are still inadequate. The crisis in the financial sector has caused banks in the City to retrench employees. Foreign banks and other corporations thus need to rent fewer properties.

According to the Land Registry index of houses and apartments traded, average prices in Kensington and Chelsea have fallen from £pounds;856,000 at the end of 2007 (S$2.6 million at the exchange rate at the time) to £pounds;752,000 (S$1.65 million at the current rate), while in the City of Westminster they have fallen from £pounds;612,000 to £pounds;564,000. Tower Hamlets, near the financial centre of Canary Wharf, has seen prices fall from £pounds;376,000 to £pounds;329,000 and in favoured areas such as Richmond they have fallen from £pounds;455,000 to £pounds;383,000.

These prices, however, are averages of properties ranging from small apartments to semi-detached and detached houses. In truth, house prices in Chelsea and Kensington currently trade from around £pounds;2 million with prices of £pounds;1.5 million to £pounds;3.5 million for areas surrounding Hampstead, St Johns Wood, Islington, Richmond and Wimbledon. Prices of two-bedroom purpose-built apartments in these areas have dropped to between £pounds;350,000 and £pounds;600,000.

Although Ms Barnes expects the market to bottom out in 2010 and revive in the following two to three years, she agrees that London prices could decline by a further 10 per cent by the end of the year. In that event, the fall from the peak would be around 30 per cent.

Liam Bailey, head of residential research at Knight Frank, estimates that from peak to trough, the price fall for prime London property from March 2008 to date is 23 per cent. Activity levels are beginning to rise, albeit from a low base, with viewings up 28 per cent in February on a year-on-year basis. After an absence of six months, Russian buyers are back in the market, he says.

'After a period of sustained price falls in the central London market, it is rather early to suggest that we are seeing the beginning of a recovery,' says Mr Bailey. 'However with bad news seemingly all pervasive, even a slowing in the rate of price falls can be viewed positively.'

With prices for some new build properties falling by as much as 40 per cent, yields of over 10 per cent are possible, he contends. The proviso is that the properties can be let. There are reports that the rental supply of apartments and houses is increasing. Financially-stressed owners with large mortgages who cannot sell their properties are being forced to downsize. They are renting out their pricey properties and seeking lower rentals.

Window Of Opportunity Opens In Aussie Commercial Property

Source : The Business Times, March 26, 2009

THE Australian commercial property market is currently offering global investors with a medium-term horizon a combination of relative stability and increasingly attractive investment returns.

Sydney CBD: Australia enters this down cycle with a very low vacancy rate in the major CBD office markets - just 5.5 per cent in the fourth quarter of 2008

Jones Lang LaSalle recently undertook a number of investor briefings across Asian markets, including Singapore. It was apparent from these briefings that there is significant Asian interest in the Australian property market, due to its relatively stable fundamentals. This has presented a window of opportunity for investment in Australia - with commentators suggesting that these are the best conditions for foreign investment that we have seen in the past decade.

The fundamentals of Australian commercial property markets have deteriorated moderately in the face of a broad economic slowdown. Australian institutional property investors have not been immune from the effects of softening asset prices, rising debt levels and tighter credit markets.

The A-Reit (Australian real estate investment trust) index has lost about A$120 billion (S$125.1 billion) in value over the past 15 months.

The benchmark S&P/ASX 200 A-Reit Index is around 690 points, down 73 per cent from its high of 2,575.6 points in February 2007.

A-Reits require debt refinancing of around A$60 billion over the next three years. About A$26 billion has been lent by foreign banks, some of which have shown an inclination to repatriate these funds during this difficult period. Given the imminent debt expiry profile in the next three years, there are now realistic vendors willing to offer quality assets for disposal in an attempt to reduce funding pressure.

Furthermore, the pool of funds invested in superannuation will continue to be a force in the domestic property markets. While the pool accounts for A$1.1 trillion today, it is forecast to grow to over A$3 trillion by 2016. With an average 10 per cent of this pool, or A$23 billion per annum, allocated to real estate, a significant amount of capital is destined to seek out a home in property markets in the years to come.

A window of opportunity does exist for foreign investors to capitalise on a culmination of market forces that make investment in Australian property an attractive proposition in 2009.

What we are currently seeing is a number of Asian-based institutional investors taking advantage of these market forces. Australia is not immune from what is happening in the global property market, but we do compare favourably to the United States, Europe and Asia in terms of the impact of the global credit crisis.

Due to the impact of the global economic environment, there are superior Australian assets on the market that have traditionally been tightly held and have not been on offer for over a decade.

There are estimations that these assets probably won't be offered again for years to come, so now is the time for opportunistic cashed-up investors to act. It is a rare opportunity and we are seeing some prospective investors who are awaiting further falls in values of prime Australian assets, but they should be careful not to wait too long.

We are currently witnessing investors out of Asia with an appetite for Australian property. These are largely private equity firms or groups acting on behalf of institutional investors. Such investors are best characterised as opportunistic funds with a focus on income stabilised assets, with no immediate vacancy.

The Australian market is attractive to foreign investors due to its high level of real estate transparency, historically low interest rates, lower hedging costs and relatively stable returns. Australia has historically been an attractive market for investors seeking to lower volatility in their portfolio.

International investors are now spoilt for choice, with significant levels of stock available on both a local and international level. Property markets are increasingly competing on a global scale with increased investigation of country economic fundamentals, property cycle position, vendors' willingness to transact and other property market specifics. We believe the Australian market is well poised to meet such criteria.

Australia enters this cycle with very low vacancy in the major CBD office markets. Research figures for the fourth quarter of 2008 show that the vacancy rate across all CBD office markets that Jones Lang LaSalle monitors nationally was only 5.5 per cent.

Vacancy pressures are clearly increasing. However, the headline vacancy rate remains below the long-term average of 8-9 per cent. The future supply pipeline is moderate, much different from the previous down cycle in the 1990s. Over the next three years there is presently only 1.31 million square metres under construction in the CBD office supply pipeline, which compares favourably to the 2.52 million sq metres that was completed in the three years leading up to 1992.

The headwinds buffeting the global economy have continued in recent weeks and we know that 2009 will be a tough year. There are many factors to consider in this economic environment and owners and investors need to constantly monitor their portfolios to ensure they are positioned to take advantage of the market fundamentals.

The writer is director, international investments, Jones Lang LaSalle, Australia

M'sia Property: Waiting Out The Crisis

Source : The Business Times, March 26, 2009

Malaysia's property players expect the sector to consolidate this year following decent gains in the past few years.

THE Malaysian property market was relatively bullish at the start of last year, but as economic problems in the United States mounted and spread, interest headed south.

Many launches were put on ice. In the popular Klang Valley, for example, the launch of new residential units declined by 57 per cent from 2007 to 6,747 units in 2008. Holding back made sense given the over-supply - especially in the luxury and serviced condominium segments, noticeably in the prime Kuala Lumpur City Centre (KLCC) and Mont Kiara areas.

Holding steady: While the number of inquiries has 'definitely dwindled', Leisure Farm Resort in Johor has not lowered prices - currently about RM50 psf for land.

According to property consultants CH Williams Talhar & Wong (WTW), an additional 1,000 new luxury condos and 7,000 serviced apartments (some 10 per cent more) came on-stream last year, when occupancy rates were already inching down to around 80 per cent from 86 per cent in the first half of the year, even before all the new units were delivered.

On average, the developer selling price for units launched last year ranged from RM650 (S$270) per sq ft to RM1,180 psf for luxury condos, and RM800 psf to RM1,300 psf for serviced apartments.

Prices have generally held because they had not run up as much. But poorer sentiment and increasing supply have led to prices dipping in selected areas. In the KLCC area, which saw more feverish building over the past few years, prices have dropped by an estimated 15-20 per cent. In contrast, landed properties are holding firmer given the more limited supply.

But promoters with bigger wallets and risk appetites are taking advantage of lower commodity prices to push ahead. In the Klang Valley, the Four Seasons Place, located within a stone's throw of the Petronas Towers, is scheduled for completion in 2012.

Developed by businessman Syed Yusof Syed Nasir, together with his partners the Sultan of Selangor, Sharafuddin Idris Shah, and Singapore's Ong Beng Seng, piling works have been completed on the 65-storey tower mixed development comprising a hotel, apartments and a mall.

Design changes resulted in some delay but Mr Syed Yusof has said that contractors would proceed in the third quarter.

Property consultants had thought the Four Seasons Place apartments might set a new benchmark of RM3,000 psf for the city. But that was last year. Mr Syed Yusof recently indicated that the estimated 140 apartments would sell for about RM2,500 psf.

Another prestigious project within the KLCC vicinity is gearing up. Ground-breaking has begun on the 450-room Grand Hyatt hotel. The Brunei Investment Agency's 40-storey mixed development includes apartments and commercial offices, and is expected to be completed in three years.

The economic slump aside, property consultants say Malaysians have the buying potential but prefer to wait out the economic and political uncertainties. However, they might be tempted if attractive bargains come along - preferably at fire-sale prices.

According to a recent survey by iProperty.com, two-thirds of 137 respondents surveyed were of the view that there was a high likelihood that property prices would decline over the next six months. Ninety per cent of Singaporeans surveyed were of a similar view while in Hong Kong only 14 per cent agreed, the rest believing prices would not drop much further.

Website activity remains high, iProperty executive chairman Patrick Grove said. 'People are still buying, selling and renting, and are definitely on the lookout for great bargains and opportunities.'

In the main, property players are resigned to the sector consolidating this year following more than decent gains in the past few years - the last more applicable to the Klang Valley and Penang.

Leisure Farm Resort senior sales and marketing manager Koh Boon Teng told BT that the number of inquiries has 'definitely dwindled' but he is counting on the company's established name to continue to pull in buyers, nearly all foreigners, including Singaporeans. The Johor-located resort-style development has not reduced prices - currently about RM50 psf for land -'but if buyers are sincere we can consider giving construction rebates', Mr Koh said. Constructed bungalows start from RM1.5 million.

While Iskandar Malaysia has reportedly attracted RM47 billion in investments - a substantial chunk from Middle East investors - local businessmen complain that there has not been any discernible pick-up in business activity.

Mr Koh concedes the lack of activity, but believes the special economic zone will deliver in the longer term. For now it has rendered a new lease of life to infrastructure projects in Johor, WTW said, pointing to the start last year of infrastructure developments such as the 8.5 km Eastern Dispersal Link joining the Customs, Immigration and Quarantine (CIQ) complex to the North-South Expressway, the 15 km coastal highway linking Johor Baru and Nusajaya, the 9 km Second Pernas Bridge and road to Pasir Gudang, and the Ulu Tiram flyover.

But patience is crucial. Johor recorded the highest percentage change value per transaction last year - likely because of much higher prices obtained for some land transactions in Iskandar, WTW managing partner Goh Tian Sui said. However, he cautioned that the overall data indicated the state 'is not an interesting market at the moment'.

One state which did reasonably well last year, recording a 27 per cent increase in value per transaction over the previous year, was Penang. Its residential sector was the dominant driver on the island as well as the mainland.

The electronics slump has hurt industries in Penang and created uncertainty, but the state is one of the more, if not most, creative in Malaysia. A Unesco World Heritage Site listing last year for its capital Georgetown, together with Malacca, gave it a tremendous boost, while the on-going construction of the second Penang bridge will make the state more accessible in the future.

Developers are admittedly more cautious now, but there are pockets of interest. WTW noted that the shophouse and residential property sub-sectors are relatively resilient, sought more for owner occupation as well as for investment.

Check-Ins Dip, So Hotels Must Check Out Options

Source : The Business Times, March 26, 2009

The period of rapid and easy growth is over and the sector now faces the combined pressures of reduced demand and increased supply

HOTELS in Singapore have witnessed a spectacular performance over the past few years, reaching unprecedented highs in 2008. Singapore hotels reaped the benefits of strong tourism demand, achieving a record in average room rates at $246 in 2008, and garnering a record $2.1 billion in room revenue, a 12.1 per cent increase over 2007.

Hotel room rates (also called average daily rates or ADRs) have grown at an impressive pace since 2004, with a compounded annual growth rate of over 19 per cent. The strength of this performance is unmatched in many markets, and is testament to Singapore's image as a vibrant destination for both business and leisure. The result is that revenue per available room (RevPAR) grew from approximately $100 to $200 between 2004 and 2008.

But Singapore's record-breaking run was to end in mid-2008. Since June 2008, visitor arrivals have declined, and as the gravity of the current financial crisis began to unfold, changing consumer sentiment across the region saw travel budgets and plans cancelled or restricted, impacting hotel performance.

Recent indications suggest that performance in 2009 will continue to weaken. In January 2009, hotel rates declined by an estimated 11.7 per cent year on year, while occupancy levels dropped to 67 per cent (the lowest level since the Sars crisis).

While the decline in performance may in part be due to the occurrence of Chinese New Year in January, much of it is attributable to the deteriorating worldwide economy and poor consumer sentiment.

The extent to which falling demand for hotel rooms impacted on different hotel tiers is difficult to determine at this stage. However, in assessing the most recent data in January 2009 compared to January 2008, economy hotels in Singapore saw a 26.8 per cent decline in RevPAR while hotels in the luxury tier registered a drop of 32.4 per cent over the same period.

This suggests that while all hotels have suffered a considerable decline in RevPAR, the impact is less apparent in the economy sector vis-à-vis the luxury market.

Uncertain future

Looking forward, there are few signs of the global economic crisis abating, and a high degree of uncertainty regarding the future remains. Economists are revising market projections on a daily basis, superceding previous forecasts as the market continues to fluctuate.

The difficulty in forecasting hotel performance is that no one really knows how deep or how protracted the economic crisis will be. However, at a fundamental level, future hotel performance in Singapore will primarily depend on two key drivers: the demand for, and supply of, hotel rooms in the market.

In January, the United Nations World Tourism Organisation (UNWTO) projected international tourism to either stagnate or decline by up to 2 per cent this year. While tourism in Asia is expected to fare slightly better and retain positive growth rates, projections will likely be revised downwards if the global economy continues to deteriorate.

The Singapore Tourism Board (STB) has also adjusted previous forecasts for 2009, with visitor arrivals now expected to be nine to 9.5 million, a decline of between 5.9 and 10.9 per cent on 2008 figures.

In addition to shrinking demand, Singapore is expected to see the largest increase in room supply across South-east Asia in the next few years. According to CBRE Research, an estimated 32 new hotels with over 12,000 hotel rooms are expected to enter the Singapore hotel market by 2012. Assuming all projects proceed as planned, total room nights available will increase by 40 per cent to reach 15.2 million in 2012.

Impact of IRs

The largest contributors to future room supply are the two integrated resorts (IRs) which offer a combined 3,978 rooms. At the opposite extreme, conversions from historical buildings into creative boutique properties will provide diversity in the market.

In forecasting future supply in the current environment, it is inevitable that some projects will experience delays in construction, and the probability that a project will face postponements or even cancellations increases the later the hotel is expected to open. In the current economic climate, difficulty in accessing finance from capital markets may force some investors in the smaller projects to reassess their developments.

While the IRs will be the largest contributors to future supply, they will also generate significant additional demand for both the tourism industry, and more broadly, the economy.

In addition to the gaming facilities, the massive increase in conference and exhibition space will enable Singapore to host larger business and MICE (Meetings, Incentive Travel, Conventions and Exhibitions) meetings, and further build on the Republic's reputation as a venue for top international meetings. Furthermore, leisure visitors will be drawn to new attractions and events hosted in the new IRs, including Universal Studios, Marina Life Parks and the new ArtScience Museum.

So how will hotels perform in 2009? If STB visitor arrival forecasts hold true, and the fundamental ratios between arrivals, length of stay and visitor days remain stable, occupancy levels may decline to around 71 per cent in 2009.

However, CBRE Hotels believes demand will show a strong recovery in 2010, driven by additional attractions and, hopefully, increased stability in the global economy.

CBRE Hotels is of the opinion that the fall in occupancy will impact room rates which are likely to decline by 10 to 15 per cent in 2009, to reach an average room rate of between $209 and $221. This would still be above 2007 levels. RevPAR will then face the most significant decline, and it is likely to drop by 20-25 per cent, to reach an average of between $148 and $158. The decrease in RevPAR represents a downward revision from previous industry estimates and is due to declining performance and continued uncertainty in the global economy.

At present, it is difficult to predict what will happen in 2010 and beyond. While the additional supply will have a negative impact on room rates, this will be countered by the potential improvement in the economic environment and the new demand drivers. Nevertheless, occupancy levels appear likely to take several years before they recover to 2007 levels.

Fortunately, the underlying fundamentals in the Singapore market are extremely strong. In addition, the Singapore government has announced a variety of initiatives to support businesses in general, and the tourism industry specifically.

The recent $90 million BOOST (Building on Opportunities to Strengthen Tourism) package aims to generate demand through activities such as global marketing campaigns, value-focused packages, funding support and training.

Hoteliers should make sure that they participate and throw their support behind these proposals, as a way of helping to mitigate the adverse impact of the downturn. There will be changes and challenges over the short term. For example:

# Hotels will need to be more innovative by offering value-added packages and benefits such as free breakfast, wireless Internet, spa vouchers or complimentary transportation.

# Hotels will be looking to further develop and nurture their existing customer base, revisiting customer preferences and requirements and exploring other opportunities to provide value to loyal existing customers.

# Long-haul travel is also being sacrificed for short- and medium-haul destinations. This is particularly true for leisure travellers. Hotels will be exploring opportunities to attract regional demand and provide packages which offer a strong value proposition.

# Hotels will need to ensure that their product and services are clearly differentiated from competitors. A strong marketing strategy targeting both existing and new customers through a variety of channels is essential to ensure sufficient publicity during competitive times.

# Finally, downturns also present opportunities to focus on efforts which are often overlooked in busier periods. Hotels could go ahead with refurbishment and upgrading of facilities during quiet periods; this is less likely to impact overall performance and will ensure that they are well-placed for a market recovery.

In the short term, the hotel market is going to be under the combined pressures of reduced demand and increased supply. The extraordinary period of rapid and easy growth is over. The next few years will be challenging and this is when well-managed and branded hotels in strong locations will outperform the general market.

The writer is executive director, CBRE Hotels,Asia-Pacific

How To Participate In An Auction Sale

Source : The Business Times, March 26, 2009

# LOOK out for advertisements in the classified pages as auction houses usually advertise one to two weeks before the scheduled auction date.

# Alternatively, you can call the auction house and ask to be put on its mailing list so that you are kept posted of the auctions on a regular basis.

# Call the auctioneer to make an appointment for viewing.

# Obtain a copy of the property's particulars and conditions of sale, that is, whether it is to be sold with tenancy/vacant possession and the completion period for the sale.

# Do your homework. Check the valuation figure with the bank and the quantum it is prepared to finance. Some banks have mobile teams who can visit your home and are able to revert within three days with an in-principle approval for your loan.

# Determine the price that you are willing to bid for the property and discuss it with the auctioneer.

# Arrive early on the day of the auction to get a seat so that you can bid in comfort. Due to the overwhelming response, latecomers may not be able to get into the auction room.

# Bring your cheque book and identity card as you have to pay the deposit and sign the sale and purchase agreement immediately if you are the successful purchaser.

Going, Going ... To Sales By Auction

Source : The Business Times, March 26, 2009

Owner sales are outstripping mortgagee sales at auctions. Given the transparent process, the lively interest in property auctions and the high probability of a quick sale, this is hardly surprising

IT used to be that property auctions were where distressed assets wound up since banks used them for mortgagee sales, as was the case in the last two recessions of 1985 and 1998.

But things have changed since, as a growing number of property owners themselves approach auction houses to sell their properties. In fact, owner sales now outnumber mortgagee sales at auctions. The proportion of owner sales has increased from 50 per cent in 1998 to 72 per cent in 2008. In comparison, the proportion of mortgagee sales has declined from 50 per cent in 1998 to just 28 per cent in 2008.

During the property boom years of 2006/2007, developers like Sentosa Cove and Tuan Sing Holdings successfully conducted auctions on an international level to sell high-end land parcels in Sentosa and several residential units in Botanika, respectively. Not only did these developers achieve record prices, they also attracted a high level of foreign participation and gained good exposure for their projects.

Singapore's property market has matured over the years, mirroring markets such as Australia where auctions are the most popular method used by owners to sell their properties. Both sellers and buyers here have grown to accept the auction mode of sale as the open bidding system is transparent and efficient.
















One can find a wide variety of properties at auctions today. Properties ranging from mass market apartments at Braddell View, Telok Kurau and Tiong Bahru to high-end bungalows on Sentosa, good class bungalows at Astrid Hill as well as prestigious apartments like St Regis Residences have been put up for auction by their owners.

Properties under construction, such as those in The Clift, Sky@eleven and The Oceanfront, have also featured at auctions.

Besides residential properties, owners and companies have also used auctions to sell shop units in prime locations such as Peninsula Plaza as well as shophouses in popular suburban towns like Ang Mo Kio, Clementi, Tampines and Toa Payoh.

With deteriorating economic conditions and an expected increase in job losses, the number of repossessed properties is likely to rise in the next six months. Attendance and interest at auctions will continue to be buoyant as buyers look to auctions to find their ideal property. Strong interest is expected in the mass market segment as well as for properties priced around $1 million as upgraders seek out opportunistic buys.

Despite the lull in the property market amid the global financial crisis, the market is seeing strong buying interest at auctions. However, the sales volume is low due to a mismatch between the expectations of sellers and buyers. A turnaround is likely to take place only when buyers start to perceive that the market has bottomed out.

Auction houses like Colliers International, DTZ, Jones Lang LaSalle and Knight Frank typically hold one auction a month, usually in the function room of a hotel. It is usual for these auction halls to be jam-packed with potential buyers and attendees, who often spill out to the corridor, with hardly any standing room.

Serious buyers are flocking to auctions in search of their dream home or to clinch an opportunistic buy from a distressed sale. From just one or two requests received per day from the public to be put on the mailing list last year, auction houses are now receiving an average of five requests a day.

The strong underlying demand presents opportunities to sellers and buyers alike.

A public auction ensures that the process is transparent as there is open competition which ensures that the best price is obtained for the property. In a soft market, determining the selling price of a property can be difficult. Hence, companies that want to dispose of their excess properties or re-organise their portfolio can do it through an auction as it satisfies the objective of shareholder accountability.

If you are an owner looking to sell your property in this lacklustre market, an auction could also be the answer. Auctions generally capture a wider target market given the auction houses' prominent advertisements and extensive database and mailing lists. The publicity and interest generated consequently increase the probability of a sale.

Moreover, auctions are a quick mode of sale as the sale date is fixed. This is good for owners who need to sell their property quickly to get their finances in order.

Those who choose to sell their property via auction can expect a higher success rate as the potential buyer would have done his homework and ascertained his financing prior to the auction date, whereas in a private sale, sellers can find themselves in a situation where a buyer has to terminate the purchase because he cannot get the required financing. That's because most buyers approach the banks after they have identified the property they want.

There's another factor that contributes to the higher success rate - buyers who purchase a property at auction are required to pay a 10 per cent deposit instead of just one per cent in the case of a private sale. And they sign the sale and purchase agreement as soon as the property is knocked down to them. These are deterrents to any buyer thinking of walking away from a sale by forfeiting the option.

Even if a property fails to sell on the scheduled auction day, the property owner can take the last bid price as the basis for negotiation. This is definitely a plus point compared to a private treaty sale as the seller may not get any offers since many buyers are hesitant to make a commitment.

Tips for owners wanting to sell in a weak market

# Be realistic in fixing your asking price. It should be as close to valuation as possible so that potential buyers will be encouraged to make an appointment for a viewing and consequently make a firm offer for it. On the other hand, if they think the asking price is high relative to comparable properties, they will not be interested to view your property.

Case in point: Seller A wants to sell his apartment in Bukit Timah and has set his asking price at valuation. He receives an offer, which is 8 per cent below the valuation price. After some negotiation, the seller manages to seal the deal at 5 per cent below the valuation price and he is now awaiting the completion of the sale. In this case, a buyer was found within a month of marketing the property.

On the other hand, Seller B has tagged an asking price that is 20 per cent above valuation for his apartment near Orchard Road. Despite marketing the property for three months, he was not able to attract buyers to view his property and there was no offer to purchase.

# Ask the auctioneer for advice on the valuation price, comparable asking prices, recent transactions and feedback on the viewing appointments before fixing your reserve price, that is, the minimum price below which you will not sell. This will increase the chances of success.

# Give the auction house at least three weeks' lead time so that there is enough time to organise the mailing list, advertisements and viewings before the scheduled auction date. The longer the lead time, the higher the chances of success.

# Determine whether you are selling your property with vacant possession or tenancy and decide on the completion period. Your lawyer will need your instructions to prepare the terms and conditions of the sale. A typical completion period is three months. If you require more time than that, you can discuss fixing a longer completion period with your lawyers.

Tips for buyers in a weak market

# Set a realistic budget.

# Understand that the prices of repossessed properties are still guided by valuation.

Case in point: An enthusiastic foreigner quipped that in his country, the banks will sell a repossessed property for anything. Failing to understand that the price of repossessed property in Singapore is guided by valuation, he rattled off his wish list for a bungalow in Bukit Timah Road as well as an apartment on Orchard Road and asked to be notified of such good buys.

# Give realistic counter-offers. Generally, auctioneers are not able to accept a counter-offer that is way below the opening price, for example, one that is 50 per cent below it. A reasonable gauge would be about 5 per cent below the opening price.

The writer is deputy managing director and auctioneer, Colliers International

What's Cool In Retail Mix

Source : The Business Times, March 26, 2009

As shop space multiplies, mall owners could take their cue from trends in more advanced markets to stay in the game

AFTER a lull of years, Singapore will see a spate of new shopping destinations opening for business from this year. First off the block will be Tampines 1 at Tampines Central and iluma at Victoria Street. This will be followed by the Orchard Road malls - Orchard Central, ION, 313@Somerset and Mandarin Gallery. Close on their heels will be the malls at integrated resorts Marina Bay Sands and Resorts World at Sentosa.

With tourist arrivals falling in the face of the global slowdown and increasing competition from the new kids on the block, existing mall owners and retailers are under immense pressure to remain relevant. To stand head and shoulders above the competition, they have to study consumer behaviour to know what makes shoppers tick. Increasingly, they have to design malls and offer products that cater to consumers' changing lifestyles.



















Level One at Far East Plaza, The Heeren and Cathay Cineleisure are examples of malls that successfully cater to the young and trendy. Retailers there enjoy brisk sales and mall owners are reaping good returns.

F&B: Emerging trends

An emerging trend is the reconfiguration of retail space for food and beverage (F&B) use. Whether they are found inside shopping centres or in independent properties, these F&B outlets are drawing crowds and contributing to the changing lifestyles of Singaporeans.

Take Dempsey Hill, for example. It is not uncommon for friends to head there after work or on weekends to 'chill'. What attracts them are the abundant dining and wining options, new-to-Singapore F&B concepts, an atmosphere of laidback charm, a choice of dining indoors or al fresco, and quirky shops.

This trend isn't exactly new. Boat Quay was an early success. However, Boat Quay also shows that owners and operators have to be nimble and sensitive to consumers' changing needs or be overtaken by the competition. Clarke Quay, for instance, is now a more 'happening' place compared with Boat Quay.

This month, iluma, an urban entertainment mall in Victoria Street, opens for business. This development aims to be a unique attraction with a mix of entertainment, thematic dining as well as shopping spaces. Up to 60 per cent of the floor area will be dedicated to entertainment uses so Singaporeans can look forward to a new destination where they can shop, dine and play.

How should mall owners respond to the new malls and fresh trends?

Take the shift to F&B, for example. In older malls, F&B constitutes 10-15 per cent of lettable space. In more contemporary malls, the proportion is 20-30 per cent. Mall owners have to reconfigure their space to meet new demand. This could come from students looking for a place to hang out, young PMETs (professionals, managers, executives and technicians) gravitating to chill-out joints or families sitting down for a meal together.

Marina Square, Raffles City Shopping Centre and Level One @ Far East Plaza show the results when owners are willing to take a leap of faith, extensively repositioning their malls to create compelling concepts for target customers.

The concepts take into account interior design, ambience as well as the profile of existing retail tenants. The owners then invite suitable operators to implement the concepts. That these malls continue to be favourite shopping destinations are a testament to their success.

Going forward, the challenge is coping with the dramatic increase in retail space. As a comparison, from 1993 to the present, total retail space grew from 2.8 million square metres to 3.2 million sq metres. That's an increase of about 400,000 sq metres, or 14 per cent. But in the next two years, 531,000 sq metres of new retail space will come on the market - much more than the total added in the last 15 years.

In Orchard Road, ION,313@Somerset, Orchard Central and Mandarin Gallery will contribute 180,000 sq metres. The rest will come from Marina Bay Sands and Resorts World, City Square at Kitchener Road and Serangoon Central.

The challenge ahead for mall owners is addressing the downward pressure on rents. For the whole of 2008, overall prime retail rentals saw a rise of 0.8 per cent year-on-year. The retail sector performed impressively in the first half of 2008, with prime retail rentals growing by 13.9 per cent compared with 1H 2007. But the trend reversed in mid-2008 when the global financial crisis struck, resulting in a decline in retail rentals in the second half.

Internet generation

Given the circumstances, retail rents held up well in 2008. Going forward, however, it is imperative for mall owners and retailers to find creative ways to capture consumer attention and stay in the game. They have to look beyond current needs and prepare for competition of the future.

They could take their cue from trends in more advanced economies, like Japan and the US, which will shape lifestyles changes in Singapore. One of these changes will be propelled by the Internet generation. The other, as mentioned, is the changing F&B scene. Operators who capitalise on opportunities presented to them as rents face downward pressure may find themselves well placed when the recovery comes.

The writer is head of retail, Knight Frank Pte Ltd