Source : 《联合早报》March 12, 2009
兀兰预购组屋（BTO）项目Champions Court的申请昨天截止，四房式和五房式的大型组屋单位仍较受公众欢迎，平均每个单位有5.3人申购。相比之下，每个小型单位只有2.6人申请。
整体而言，截至昨天下午5时，Champions Court的815个单位共收到3239份申请，每个单位平均有4人申购。
新组屋位于兀兰1道和冠军大道（Champions Way）交界，临近是星烁初级学院和新加坡体育学校，周围也有邻里公园和游泳池等设施，也靠近兀兰地铁站和巴士转换站。
这是建屋发展局今年推出的首个预购组屋项目，约一半是小型公寓及三房式小型单位。
虽然如此，更多申购者还是选择较大型的四房式和五房式单位，显示公众还是倾向购买大型组屋。
根据建屋局网站的数据，四房式申请者最多，224个单位有1239人申请，平均每个单位有5.5人申购。185个五房式单位的反应也踊跃，有946人申请。182个三房式单位则收到422份申请，平均每个单位2.3人申购。
三房式单位的售价11万8000元至14万2000元，四房式19万4000元至22万7000元，五房式24万7000元至29万6000元。
此外，这也是建屋局首次在兀兰推出适合年长者居住的小型公寓，共有632个55岁以上的年长者申请224个单位，平均每个单位有2.8人申购，可见小型单位还是受到一定的支持。
这些组屋有亲乐龄的设计，具备扶手和防滑地板等特别装备；单位里也有衣橱、厨柜和炊具等设施。它们的面积为35平方米和45平方米，售价介于5万7000元至8万元。
发言人受询时说，该局将密切留意市场走势，并推出更多小型组屋以满足低收入者和大屋换小屋者的住屋需求。
博纳集团总裁伊斯迈受访时则说，四房式最受欢迎并不令人意外，因为这是最适合小康之家的屋型，对那些刚结婚的年轻夫妇，尤其具有吸引力。
他说，三房式单位太小，而预购组屋一般需要三年才会竣工，再加上新组屋须住满五年才能出售，许多想生儿育女的夫妇因此须等上至少八年才能小屋换大屋，为此他们偏向购买大型组屋。
Thursday, March 12, 2009
More Projects With Small Units To Be Released This Weekend
Source : The Straits Times, March 12, 2009
MORE projects with small apartments are being released for sale, with one offering units of just 344 sq ft - slightly over half the size of a squash court.
The releases follow the recent success of developments like Alexis, where small units have attracted plenty of buyers with their low overall prices. Prices at the project in Alexandra Road started at $450,000 for one-bedders, which are between 366 sq ft and 527 sq ft.
A preview for the freehold Kembangan Suites at Jalan Masjid - which has 60 mainly small flats and eight shops - starts today. The project's marketing material said prices will be revealed only at 10am with sales starting at noon.
Starting prices are at least $300,000 for the one-bedroom units, which range from 344 sq ft to 527 sq ft, according to the marketing material. The project also offers 581 sq ft two-bedroom units.
The 104-unit Domus in Irrawaddy Road will be released for sale this weekend with the interest absorption scheme.
The actual pricing has not been firmed up but will start from just below $500,000 for the 25 studios of 474 sq ft, said Savills Residential, which is marketing the project.
The project has penthouses, including a 926 sq ft double-storey one-bedroom penthouse.
Domus is next to a fairly new launch - I-Residences, where prices are hovering around $900 psf.
In nearby Balestier, The Mezzo - on the site of the former Ruby Plaza - will also be released for sale in a special preview tomorrow. It has 127 units including 20 one-bedders of 560 sq ft.
The unusual aspect of The Mezzo is that it is offering a 6 per cent annual rental guarantee for two years, apart from the interest absorption scheme. The rental guarantee kicks in right after the temporary occupation permit date.
The one-bedders will be priced from about $540,000 and the two-bedders from about $715,000, said HSR Property Group.
MORE projects with small apartments are being released for sale, with one offering units of just 344 sq ft - slightly over half the size of a squash court.
The releases follow the recent success of developments like Alexis, where small units have attracted plenty of buyers with their low overall prices. Prices at the project in Alexandra Road started at $450,000 for one-bedders, which are between 366 sq ft and 527 sq ft.
A preview for the freehold Kembangan Suites at Jalan Masjid - which has 60 mainly small flats and eight shops - starts today. The project's marketing material said prices will be revealed only at 10am with sales starting at noon.
Starting prices are at least $300,000 for the one-bedroom units, which range from 344 sq ft to 527 sq ft, according to the marketing material. The project also offers 581 sq ft two-bedroom units.
The 104-unit Domus in Irrawaddy Road will be released for sale this weekend with the interest absorption scheme.
The actual pricing has not been firmed up but will start from just below $500,000 for the 25 studios of 474 sq ft, said Savills Residential, which is marketing the project.
The project has penthouses, including a 926 sq ft double-storey one-bedroom penthouse.
Domus is next to a fairly new launch - I-Residences, where prices are hovering around $900 psf.
In nearby Balestier, The Mezzo - on the site of the former Ruby Plaza - will also be released for sale in a special preview tomorrow. It has 127 units including 20 one-bedders of 560 sq ft.
The unusual aspect of The Mezzo is that it is offering a 6 per cent annual rental guarantee for two years, apart from the interest absorption scheme. The rental guarantee kicks in right after the temporary occupation permit date.
The one-bedders will be priced from about $540,000 and the two-bedders from about $715,000, said HSR Property Group.
S'pore Is Tops Again Among Asian Expats
Source : The Straits Times, March 12, 2009
It retains No. 1 spot in poll for 10th straight year, beating 253 cities
SINGAPORE has beaten the rest of the world for the 10th year running to be named the city that offers Asian expatriates the best quality of life.
According to a survey released yesterday, the city state's quality of air, infrastructure and health-care facilities kept it at No. 1. Its low crime rate also helped it retain pole position in the annual ranking by human resource consultancy ECA International.
As far as Asian expats were concerned, Singapore beat 253 other cities - including big names such as San Francisco, New York, London and Paris.
Only five Asian cities made it to the top 50 among Asian expats. Apart from Singapore, these were Japan's Tokyo, Yokohama and Kobe, along with Hong Kong, which came in 11th due to its poor air quality and inferior health facilities.
But expats from other regions appeared to be less impressed by Singapore. The city slipped in favour for all non-Asian expats, as other cities became more desirable places to live.
Expats from the Middle East ranked Singapore 25th in terms of quality of life, down from 23rd last year. Australian and New Zealand expats put Singapore in 44th spot, down from last year's 42nd.
Americans named Singapore their 54th favourite city, a drop from 50th place last year, while Europeans also ranked it 54th, down a notch from the previous 53rd.
ECA regional director Lee Quane stressed that the lower rankings were not caused by a deterioration in Singapore's quality of life.
'Basically, it is not due to any detriment on Singapore's part,' he told The Straits Times.
While Singapore's scores in all categories have remained the same as last year's, other locations have improved their scorecards, he said.
Categories looked at included climate, health services, social networks and leisure facilities.
'You need to look at where the person is coming from,' Mr Quane added. 'From a European or American perspective, there may be other cities that are more attractive. But from an Asian person's perspective, Singapore comes in at No. 1.'
Indeed, for Filipina Ditas Lopez, Singapore ranks as one of the best cities in the world.
'The transportation system is very efficient, doing business is easy and, most importantly, the quality of air is very good,' said Ms Lopez, 38, a media professional who has lived here for three years.
Bringing up the rear for Asian expats were war-torn cities such as Baghdad in Iraq and Kabul in Afghanistan. These were the least desirable locations for expatriates due to a lack of suitable facilities and high personal security risks.
Despite Singapore's relatively low global ranking among European expats, the city was their top choice in Asia, followed by Kobe, Yokohama, Hong Kong and Tokyo.
Some of the biggest improvements in quality of life were seen in Chinese cities, where facilities for visitors have improved.
Beijing, for instance, shot up 13 places to 99th spot after it upgraded its infrastructure, recreational facilities and security for the Olympic Games last year.
Conversely, Indian locations have fallen on average in this year's rankings, largely due to poorer air quality. New Delhi - ranked 187th - saw the largest deterioration in quality of living within Asia.
ECA's survey is designed to help companies establish expat allowances, which compensate staff for adapting to life in their assigned locations.
BEST PLACE FOR ASIANS
'From a European or American perspective, there may be other cities that are more attractive. But from an Asian person's perspective, Singapore comes in at No. 1.'
It retains No. 1 spot in poll for 10th straight year, beating 253 cities
SINGAPORE has beaten the rest of the world for the 10th year running to be named the city that offers Asian expatriates the best quality of life.
According to a survey released yesterday, the city state's quality of air, infrastructure and health-care facilities kept it at No. 1. Its low crime rate also helped it retain pole position in the annual ranking by human resource consultancy ECA International.
As far as Asian expats were concerned, Singapore beat 253 other cities - including big names such as San Francisco, New York, London and Paris.Only five Asian cities made it to the top 50 among Asian expats. Apart from Singapore, these were Japan's Tokyo, Yokohama and Kobe, along with Hong Kong, which came in 11th due to its poor air quality and inferior health facilities.
But expats from other regions appeared to be less impressed by Singapore. The city slipped in favour for all non-Asian expats, as other cities became more desirable places to live.
Expats from the Middle East ranked Singapore 25th in terms of quality of life, down from 23rd last year. Australian and New Zealand expats put Singapore in 44th spot, down from last year's 42nd.
Americans named Singapore their 54th favourite city, a drop from 50th place last year, while Europeans also ranked it 54th, down a notch from the previous 53rd.
ECA regional director Lee Quane stressed that the lower rankings were not caused by a deterioration in Singapore's quality of life.
'Basically, it is not due to any detriment on Singapore's part,' he told The Straits Times.
While Singapore's scores in all categories have remained the same as last year's, other locations have improved their scorecards, he said.
Categories looked at included climate, health services, social networks and leisure facilities.
'You need to look at where the person is coming from,' Mr Quane added. 'From a European or American perspective, there may be other cities that are more attractive. But from an Asian person's perspective, Singapore comes in at No. 1.'
Indeed, for Filipina Ditas Lopez, Singapore ranks as one of the best cities in the world.
'The transportation system is very efficient, doing business is easy and, most importantly, the quality of air is very good,' said Ms Lopez, 38, a media professional who has lived here for three years.
Bringing up the rear for Asian expats were war-torn cities such as Baghdad in Iraq and Kabul in Afghanistan. These were the least desirable locations for expatriates due to a lack of suitable facilities and high personal security risks.
Despite Singapore's relatively low global ranking among European expats, the city was their top choice in Asia, followed by Kobe, Yokohama, Hong Kong and Tokyo.
Some of the biggest improvements in quality of life were seen in Chinese cities, where facilities for visitors have improved.
Beijing, for instance, shot up 13 places to 99th spot after it upgraded its infrastructure, recreational facilities and security for the Olympic Games last year.
Conversely, Indian locations have fallen on average in this year's rankings, largely due to poorer air quality. New Delhi - ranked 187th - saw the largest deterioration in quality of living within Asia.
ECA's survey is designed to help companies establish expat allowances, which compensate staff for adapting to life in their assigned locations.
BEST PLACE FOR ASIANS
'From a European or American perspective, there may be other cities that are more attractive. But from an Asian person's perspective, Singapore comes in at No. 1.'
New Orchard Malls Short Of Tenants
Source : The Straits Times, March 12, 2009
Shopping centres are set to open soon but take-up of retail space has slowed
ORCHARD Road's first new malls in a decade are set to open over the next few months - but the economic downturn means many shops will be empty.
Retailers have been slow to sign up in the face of falling consumer spending, leaving malls with the prospect of a lacklustre opening.
A street-front boutique in the Mandarin Gallery, which is undergoing a $200 million makeover. To date, the mall is only 69 per cent leased. -- PHOTO: OVERSEAS UNION ENTERPRISE
Take the Mandarin Gallery, the high-end mall at the corner of Orchard and Bideford Roads, which is undergoing a $200 million makeover to increase total gross floor area by 40 per cent.
Between March and October last year, it secured tenants for 60 per cent of its net lettable area. But in the four months since, occupancy has increased only marginally with the makeover due to be completed in June.
'To date, we are 69 per cent leased, with another 4 per cent out to be concluded by the end of this month,' said Ms Patrina Tan, senior vice-president of retail, marketing and leasing at Overseas Union Enterprises (OUE), which owns the mall.
Signing up of new tenants has also slowed to a crawl at Far East Organization's Orchard Central, next to the Somerset MRT Station.
Last October, the mall announced it was 60 per cent leased, at prices between $20 psf and $70 psf. Far East Organization's deputy director of retail management, Ms Susan Leng, had said in December she would 'be pretty happy if we can achieve an occupancy rate of about 80 per cent to 85 per cent...in this economic situation'.
But its occupancy has risen to just 65 per cent in the past four months.
Ion Orchard - the other mall being built from scratch on Orchard Turn - said it was 50 per cent leased last September, at prices of up to $80 psf. On Monday, it declined to comment on its leasing progress, although it is slated to open in the third quarter of this year.
Australian developer Lend Lease Retail, which is building 313@Somerset, said in May last year that it expects to fully lease all its units by around the middle of this year.
But according to Colliers' director for research and advisory, Ms Tay Huey Ying, 313@Somerset is - like the others on the strip - between 50 per cent and 70 per cent leased. That still leaves between 30 per cent and 40 per cent of untenanted retail space in each mall.
'In normal times, malls hope to open with at least 90 per cent tenancy,' said Ms Sherene Sng, head of retail at Knight Frank.
Retail consultants put the muted response down to the economic downturn, which arguably worsened after Lehman Brothers filed for bankruptcy last September.
OUE's Ms Tan noted that leasing activities started to slow in October as retailers were busy preparing for the Christmas season as well as cutting back on their expansion plans.
Industry insiders say some tenants have negotiated all the way to the dotted line, but still have not signed on it, citing the uncertain economic outlook. Even retailers that 'operate chain stores, and that one would typically expect to have deep pockets' are affected.
Ms Sulian Tan-Wijaya, senior director of retail and lifestyle at Savills Singapore, told The Straits Times: 'There have also been a few cases of tenants forfeiting their rental deposits, which typically amount to three months' rent.'
The consultants said they have heard of up to 10 such cases since October, but declined to name any of them.
All this is despite the increased willingness of landlords to negotiate cheaper rents, which property analysts said could fall by anywhere between 5 per cent and 13 per cent this year in prime locations on Orchard Road.
Landlords have reiterated that they always negotiate rent 'relative to sales', while many retailers said sales have dipped as much as 30 per cent in recent months.
Ms Tay said: 'Retailers will remain cautious for as long as the economy does not recover. But that doesn't mean the space won't eventually find a tenant.
'If landlords can negotiate and look to strike a win-win rental structure, I don't see why the occupancy rate should stay where it is.'
Ms Tan-Wijaya added that there is 'a ready database of strong retailers who still have the appetite to expand' and her firm is still seeing 'serious inquiries' for space in Ion and Orchard Central.
The malls are forging ahead to open as scheduled, even as visitor arrivals this year may drop by 6 per cent to 11 per cent and tourism spending is estimated to fall 15 per cent to 16 per cent.
Ms Tay said: 'There are many ways in which landlords could mask the presence of the non-tenanted spaces, such as through barricading or retrofitting. It's all about the aesthetics.'
BACKING OUT
'There have been a few cases of tenants forfeiting their rental deposits, which typically amount to three months' rent.'
Ms Sulian Tan-Wijaya, senior director of retail and lifestyle at Savills Singapore
Shopping centres are set to open soon but take-up of retail space has slowed
ORCHARD Road's first new malls in a decade are set to open over the next few months - but the economic downturn means many shops will be empty.
Retailers have been slow to sign up in the face of falling consumer spending, leaving malls with the prospect of a lacklustre opening.
A street-front boutique in the Mandarin Gallery, which is undergoing a $200 million makeover. To date, the mall is only 69 per cent leased. -- PHOTO: OVERSEAS UNION ENTERPRISETake the Mandarin Gallery, the high-end mall at the corner of Orchard and Bideford Roads, which is undergoing a $200 million makeover to increase total gross floor area by 40 per cent.
Between March and October last year, it secured tenants for 60 per cent of its net lettable area. But in the four months since, occupancy has increased only marginally with the makeover due to be completed in June.
'To date, we are 69 per cent leased, with another 4 per cent out to be concluded by the end of this month,' said Ms Patrina Tan, senior vice-president of retail, marketing and leasing at Overseas Union Enterprises (OUE), which owns the mall.
Signing up of new tenants has also slowed to a crawl at Far East Organization's Orchard Central, next to the Somerset MRT Station.
Last October, the mall announced it was 60 per cent leased, at prices between $20 psf and $70 psf. Far East Organization's deputy director of retail management, Ms Susan Leng, had said in December she would 'be pretty happy if we can achieve an occupancy rate of about 80 per cent to 85 per cent...in this economic situation'.
But its occupancy has risen to just 65 per cent in the past four months.
Ion Orchard - the other mall being built from scratch on Orchard Turn - said it was 50 per cent leased last September, at prices of up to $80 psf. On Monday, it declined to comment on its leasing progress, although it is slated to open in the third quarter of this year.
Australian developer Lend Lease Retail, which is building 313@Somerset, said in May last year that it expects to fully lease all its units by around the middle of this year.
But according to Colliers' director for research and advisory, Ms Tay Huey Ying, 313@Somerset is - like the others on the strip - between 50 per cent and 70 per cent leased. That still leaves between 30 per cent and 40 per cent of untenanted retail space in each mall.
'In normal times, malls hope to open with at least 90 per cent tenancy,' said Ms Sherene Sng, head of retail at Knight Frank.
Retail consultants put the muted response down to the economic downturn, which arguably worsened after Lehman Brothers filed for bankruptcy last September.
OUE's Ms Tan noted that leasing activities started to slow in October as retailers were busy preparing for the Christmas season as well as cutting back on their expansion plans.
Industry insiders say some tenants have negotiated all the way to the dotted line, but still have not signed on it, citing the uncertain economic outlook. Even retailers that 'operate chain stores, and that one would typically expect to have deep pockets' are affected.
Ms Sulian Tan-Wijaya, senior director of retail and lifestyle at Savills Singapore, told The Straits Times: 'There have also been a few cases of tenants forfeiting their rental deposits, which typically amount to three months' rent.'
The consultants said they have heard of up to 10 such cases since October, but declined to name any of them.
All this is despite the increased willingness of landlords to negotiate cheaper rents, which property analysts said could fall by anywhere between 5 per cent and 13 per cent this year in prime locations on Orchard Road.
Landlords have reiterated that they always negotiate rent 'relative to sales', while many retailers said sales have dipped as much as 30 per cent in recent months.
Ms Tay said: 'Retailers will remain cautious for as long as the economy does not recover. But that doesn't mean the space won't eventually find a tenant.
'If landlords can negotiate and look to strike a win-win rental structure, I don't see why the occupancy rate should stay where it is.'
Ms Tan-Wijaya added that there is 'a ready database of strong retailers who still have the appetite to expand' and her firm is still seeing 'serious inquiries' for space in Ion and Orchard Central.
The malls are forging ahead to open as scheduled, even as visitor arrivals this year may drop by 6 per cent to 11 per cent and tourism spending is estimated to fall 15 per cent to 16 per cent.
Ms Tay said: 'There are many ways in which landlords could mask the presence of the non-tenanted spaces, such as through barricading or retrofitting. It's all about the aesthetics.'
BACKING OUT
'There have been a few cases of tenants forfeiting their rental deposits, which typically amount to three months' rent.'
Ms Sulian Tan-Wijaya, senior director of retail and lifestyle at Savills Singapore
Katong Mall Gets Nod For Collective Sale
Source : The Straits Times, March 12, 2009
Opposers of $219m deal change mind after 18 months, in wake of slumping market
WHAT a difference 18 months makes.
Back in September 2007, some owners of shop and office units in Katong Mall, which grew to a group of 23, banded together to fight against a proposed collective sale of the shopping complex.
The four-storey complex at the junction of Joo Chiat and East Coast roads, occupied by 258 shops and offices, is the first full-retail development to be sold en bloc. Many of the originally dissenting owners are now looking at a windfall, considering the continued economic downturn. -- ST PHOTO: DESMOND WEE
Some were attached to the place, others were concerned that the offered price was too low for them to buy replacement units elsewhere. The group was even considering court action to challenge the draft sale agreement.
Then the economic crisis barrelled in in the middle of last year. By the year-end, the property market had gone soft.
This was when the offer price of $219 million for the mall at the junction of Joo Chiat and East Coast roads, set before the downturn, started to look pretty good.
Now, the objectors have made an about-turn, and the deal has been sealed.
At a hearing on Tuesday, the Strata Titles Board (STB) approved the collective sale application, marking the end of an 18-month tussle between the sale committee and the objectors, who now get what might be considered a windfall, considering the uncertain times. Several mediation sessions were held by the STB in the last three months, which led to the deal now accepted by the objectors.
With it, Katong Mall, a four-storey complex occupied by 258 shops and offices, is the first full-retail development to be sold en bloc. Other collective sales have been for residential developments or those with a residential-retail mix.
Drew & Napier lawyer Adrian Tan said Katong Mall represented the first such deal he knew of in which the opposers' objections were withdrawn before the hearings at the STB even started.
'Credit must go to the STB for managing the mediations smoothly,' he said.
In the Katong Mall saga, some minority sellers were uneasy that the buyer, Tuan Sing Holdings, owned 72 per cent of the units through two subsidiaries, making it the majority seller.
The retail units in the mall range from 10 sq m to 2,436 sq m in size.
Lot owner and lawyer Jeannette Aruldoss, who was among the objectors, said the change of mind made commercial sense as 'we were overtaken' by events in the market. Those who had difficulty finding replacement units now realised it was no longer the case, given the changed market, she added. Average prices for commercial space have fallen 5 to 10 per cent in the last half a year, said property consultant Nicholas Mak.
Ms Stella Hoh, the investment director of property consultants Jones Lang LaSalle, which brokered the sale, said it was a 'win-win' deal as it gave the sellers a premium on their lots, while also giving Tuan Sing total control over the tenant mix, unlike before.
This will be changed so the mall serves the growing residential developments in the East Coast; Tuan Sing also plans to put $40 million into major renovations.
Its chief financial officer Chong Chou Yuen said: 'We are in for the long term and are quite optimistic about the long-term returns for the mall.' Tenants are expected to move out by the year-end.
Opposers of $219m deal change mind after 18 months, in wake of slumping market
WHAT a difference 18 months makes.
Back in September 2007, some owners of shop and office units in Katong Mall, which grew to a group of 23, banded together to fight against a proposed collective sale of the shopping complex.
The four-storey complex at the junction of Joo Chiat and East Coast roads, occupied by 258 shops and offices, is the first full-retail development to be sold en bloc. Many of the originally dissenting owners are now looking at a windfall, considering the continued economic downturn. -- ST PHOTO: DESMOND WEESome were attached to the place, others were concerned that the offered price was too low for them to buy replacement units elsewhere. The group was even considering court action to challenge the draft sale agreement.
Then the economic crisis barrelled in in the middle of last year. By the year-end, the property market had gone soft.
This was when the offer price of $219 million for the mall at the junction of Joo Chiat and East Coast roads, set before the downturn, started to look pretty good.
Now, the objectors have made an about-turn, and the deal has been sealed.
At a hearing on Tuesday, the Strata Titles Board (STB) approved the collective sale application, marking the end of an 18-month tussle between the sale committee and the objectors, who now get what might be considered a windfall, considering the uncertain times. Several mediation sessions were held by the STB in the last three months, which led to the deal now accepted by the objectors.
With it, Katong Mall, a four-storey complex occupied by 258 shops and offices, is the first full-retail development to be sold en bloc. Other collective sales have been for residential developments or those with a residential-retail mix.
Drew & Napier lawyer Adrian Tan said Katong Mall represented the first such deal he knew of in which the opposers' objections were withdrawn before the hearings at the STB even started.
'Credit must go to the STB for managing the mediations smoothly,' he said.
In the Katong Mall saga, some minority sellers were uneasy that the buyer, Tuan Sing Holdings, owned 72 per cent of the units through two subsidiaries, making it the majority seller.
The retail units in the mall range from 10 sq m to 2,436 sq m in size.
Lot owner and lawyer Jeannette Aruldoss, who was among the objectors, said the change of mind made commercial sense as 'we were overtaken' by events in the market. Those who had difficulty finding replacement units now realised it was no longer the case, given the changed market, she added. Average prices for commercial space have fallen 5 to 10 per cent in the last half a year, said property consultant Nicholas Mak.
Ms Stella Hoh, the investment director of property consultants Jones Lang LaSalle, which brokered the sale, said it was a 'win-win' deal as it gave the sellers a premium on their lots, while also giving Tuan Sing total control over the tenant mix, unlike before.
This will be changed so the mall serves the growing residential developments in the East Coast; Tuan Sing also plans to put $40 million into major renovations.
Its chief financial officer Chong Chou Yuen said: 'We are in for the long term and are quite optimistic about the long-term returns for the mall.' Tenants are expected to move out by the year-end.
Big Demand For New Flats
Source : The Straits Times, March 12, 2009
A HOUSING Board sale of new flats in Woodlands has attracted strong demand, with bigger flats keenly sought after.
Champions Court is at the junction of Champions Way and Woodlands Avenue 1 and near the Woodlands Regional Centre. -- SOURCE: HDB
Champions Court, a build-to-order (BTO) project, closed yesterday with 3,239 applications for just 815 units. The final update will be made at 2pm today.
The 224 studio apartments - offered for the first time in Woodlands - drew 632 applications, while 422 potential buyers chased the 182 three-room flats. Studios are priced indicatively from $57,000 to $80,000, with the three-roomers at $118,000 to $142,000.
The 224 four-room flats - from $194,000 to $227,000 - attracted 1,239 applications. The 185 five-roomers, which will cost about $247,000 to $296,000, received 946 bids.
PropNex chief executive Mohd Ismail said the robust demand for the four- and five-room flats was expected, given that they are in a mature estate and priced affordably.
Champions Court is at the junction of Champions Way and Woodlands Avenue 1 and near the Woodlands Regional Centre.
The HDB had earlier provided data that showed that comparable four-room resale flats in Woodlands were selling for $255,000 to $278,000, while five-room resale units went for $304,000 to $345,000.
The overall median cash-over-valuation for a resale flat in Woodlands was $15,000 in the fourth quarter of last year.
A sale in a more central part of Singapore is unlikely to attract the same level of demand as the flats would be priced at a higher quantum, said Mr Ismail.
'Whoever applies now will be stuck with it for eight years, including the construction and minimum occupation periods,' he said.
'Therefore, a three-room flat may not be ideal for a family with kids, in today's affluent society.'
A HOUSING Board sale of new flats in Woodlands has attracted strong demand, with bigger flats keenly sought after.
Champions Court is at the junction of Champions Way and Woodlands Avenue 1 and near the Woodlands Regional Centre. -- SOURCE: HDBChampions Court, a build-to-order (BTO) project, closed yesterday with 3,239 applications for just 815 units. The final update will be made at 2pm today.
The 224 studio apartments - offered for the first time in Woodlands - drew 632 applications, while 422 potential buyers chased the 182 three-room flats. Studios are priced indicatively from $57,000 to $80,000, with the three-roomers at $118,000 to $142,000.
The 224 four-room flats - from $194,000 to $227,000 - attracted 1,239 applications. The 185 five-roomers, which will cost about $247,000 to $296,000, received 946 bids.
PropNex chief executive Mohd Ismail said the robust demand for the four- and five-room flats was expected, given that they are in a mature estate and priced affordably.
Champions Court is at the junction of Champions Way and Woodlands Avenue 1 and near the Woodlands Regional Centre.
The HDB had earlier provided data that showed that comparable four-room resale flats in Woodlands were selling for $255,000 to $278,000, while five-room resale units went for $304,000 to $345,000.
The overall median cash-over-valuation for a resale flat in Woodlands was $15,000 in the fourth quarter of last year.
A sale in a more central part of Singapore is unlikely to attract the same level of demand as the flats would be priced at a higher quantum, said Mr Ismail.
'Whoever applies now will be stuck with it for eight years, including the construction and minimum occupation periods,' he said.
'Therefore, a three-room flat may not be ideal for a family with kids, in today's affluent society.'
$36m Paid For Mohd Sultan Building
Source : The Straits Times, March 12, 2009
THE $35.8million sale of a Mohamed Sultan Road building has been completed, six months after the contract was first signed.
Ka$h completed the purchase of Le Mercier House even though the deal was struck in better economic times. -- PHOTO COURTESY OF ISABEL REDRUP AGENCY
The acquisition by Ka$h International of Le Mercier House at 65 Mohamed Sultan Road is rare today given the depressed state of the property market, said Isabel Redrup Agency managing director Susan Ye. Her property agency brokered the deal.
Ka$h already owns the site next door, which houses the Hansgrohe showroom.
Although the deal was clinched with seller Le Mercier's Fine Furnishings during better economic times, Ka$h went through to completion and at the agreed price, added Mrs Ye.
Le Mercier has occupied the four-storey building for the past decade and is still running its high-end furniture store there.
It will rent the space from Ka$h - whose major shareholder is Mr Cheong Keng Hooi - but is looking for more upmarket premises.
Mrs Ye said the property is zoned for warehouse/residential use and can be converted into a 15-storey block of apartments.
The land size is 14,200 sq ft and the current built-up space is around 52,000 sq ft. However, the site is over-built.
'It has a plot ratio of 2.8, so rebuilding it will not allow for more than 39,000 sq ft of gross floor area in the future,' she said.
However, the location is desirable for those who like to live close to Orchard Road but outside the ERP zone, she said.
Many investors steered clear of the market for much of last year but are now starting to return, said Mrs Ye.
She added that they were a mixture of both individuals and companies.
THE $35.8million sale of a Mohamed Sultan Road building has been completed, six months after the contract was first signed.
Ka$h completed the purchase of Le Mercier House even though the deal was struck in better economic times. -- PHOTO COURTESY OF ISABEL REDRUP AGENCYThe acquisition by Ka$h International of Le Mercier House at 65 Mohamed Sultan Road is rare today given the depressed state of the property market, said Isabel Redrup Agency managing director Susan Ye. Her property agency brokered the deal.
Ka$h already owns the site next door, which houses the Hansgrohe showroom.
Although the deal was clinched with seller Le Mercier's Fine Furnishings during better economic times, Ka$h went through to completion and at the agreed price, added Mrs Ye.
Le Mercier has occupied the four-storey building for the past decade and is still running its high-end furniture store there.
It will rent the space from Ka$h - whose major shareholder is Mr Cheong Keng Hooi - but is looking for more upmarket premises.
Mrs Ye said the property is zoned for warehouse/residential use and can be converted into a 15-storey block of apartments.
The land size is 14,200 sq ft and the current built-up space is around 52,000 sq ft. However, the site is over-built.
'It has a plot ratio of 2.8, so rebuilding it will not allow for more than 39,000 sq ft of gross floor area in the future,' she said.
However, the location is desirable for those who like to live close to Orchard Road but outside the ERP zone, she said.
Many investors steered clear of the market for much of last year but are now starting to return, said Mrs Ye.
She added that they were a mixture of both individuals and companies.
HSBC's New Home Loan Offers 'Loyalty Discount'
Source : The Straits Times, March 12, 2009
Borrowers enjoy interest rate spread that decreases every year for 10 years
HSBC has unveiled a new home loan pegged to the Singapore Interbank Offered Rate (Sibor) that rewards longer-term borrowers with an interest rate that gets
increasingly competitive over time.
Its new loan package sees the interest rate charged on top of the three-month Sibor - the rate at which banks lend cash to each other - trimmed each year.
Typically, loans pegged to the Sibor have either flat or increasing interest rate spreads.
The new product follows HSBC's launch last year of a similar package, which cut the interest rate spread at the end of every anniversary year, up to the third year of the loan.
For its new 'loyalty package', HSBC customers will see a year-on-year decrease in the interest spread until the 10th year, when it will hit zero.
During the first year, borrowers will pay an interest rate spread of 1.5 per cent above the three-month Sibor.
The spread is then reduced by 0.075 percentage point at the end of each anniversary year.
HSBC has made the arrangement even sweeter for its Premier customers whose interest rate spread will be cut by 0.1 percentage point at the end of each anniversary year.
In the 10th year of the loan, the interest rate spread will be reduced to zero for all customers.
Thereafter, the rate reverts to Sibor plus 1.2 per cent for the remaining tenure of the home loan.
Mr Sebastian Arcuri, head of personal financial services at HSBC Singapore, said the response to its earlier Sibor-pegged loyalty package had been 'extremely positive'.
'In giving customers a loyalty discount on the interest rate spread for their Sibor-pegged home loan, we want to help them maximise the value of their relationships with us,' he said.
But observers caution that home buyers must do their homework before choosing HSBC's latest mortgage.
First, Sibor can be volatile and those looking for fixed cash flow and protection against interest rate movements should opt for fixed-rate packages.
'If Sibor starts to exhibit volatility down the road again, these lower spreads might not mean much to customers,' said Mr Geoffrey Ying, head of the mortgage division at financial advisory firm New Independent.
A DBS Bank spokesman said: 'In selecting the package, customers need to consider how the rates are determined and how stable they are.
'A three-month package would require one to actively monitor the interest rate environment and review the loan structure regularly.'
Next, customers should average out the interest rate spreads over 10 years and see how the savings compare to other offers.
'There is no free lunch,' said United Overseas Bank's head of loans Kevin Lam. 'The package is effectively a lock-in because you need to stay long enough to enjoy the zero (interest spread).'
HSBC said that to enjoy its new home loan, customers must have an average annual balance of $100,000 or more. It added that there was no lock-in period for the loan.
Borrowers enjoy interest rate spread that decreases every year for 10 years
HSBC has unveiled a new home loan pegged to the Singapore Interbank Offered Rate (Sibor) that rewards longer-term borrowers with an interest rate that gets
increasingly competitive over time.
Its new loan package sees the interest rate charged on top of the three-month Sibor - the rate at which banks lend cash to each other - trimmed each year. Typically, loans pegged to the Sibor have either flat or increasing interest rate spreads.
The new product follows HSBC's launch last year of a similar package, which cut the interest rate spread at the end of every anniversary year, up to the third year of the loan.
For its new 'loyalty package', HSBC customers will see a year-on-year decrease in the interest spread until the 10th year, when it will hit zero.
During the first year, borrowers will pay an interest rate spread of 1.5 per cent above the three-month Sibor.
The spread is then reduced by 0.075 percentage point at the end of each anniversary year.
HSBC has made the arrangement even sweeter for its Premier customers whose interest rate spread will be cut by 0.1 percentage point at the end of each anniversary year.
In the 10th year of the loan, the interest rate spread will be reduced to zero for all customers.
Thereafter, the rate reverts to Sibor plus 1.2 per cent for the remaining tenure of the home loan.
Mr Sebastian Arcuri, head of personal financial services at HSBC Singapore, said the response to its earlier Sibor-pegged loyalty package had been 'extremely positive'.
'In giving customers a loyalty discount on the interest rate spread for their Sibor-pegged home loan, we want to help them maximise the value of their relationships with us,' he said.
But observers caution that home buyers must do their homework before choosing HSBC's latest mortgage.
First, Sibor can be volatile and those looking for fixed cash flow and protection against interest rate movements should opt for fixed-rate packages.
'If Sibor starts to exhibit volatility down the road again, these lower spreads might not mean much to customers,' said Mr Geoffrey Ying, head of the mortgage division at financial advisory firm New Independent.
A DBS Bank spokesman said: 'In selecting the package, customers need to consider how the rates are determined and how stable they are.
'A three-month package would require one to actively monitor the interest rate environment and review the loan structure regularly.'
Next, customers should average out the interest rate spreads over 10 years and see how the savings compare to other offers.
'There is no free lunch,' said United Overseas Bank's head of loans Kevin Lam. 'The package is effectively a lock-in because you need to stay long enough to enjoy the zero (interest spread).'
HSBC said that to enjoy its new home loan, customers must have an average annual balance of $100,000 or more. It added that there was no lock-in period for the loan.
HSBC Home Loan Rewards Loyalty
Source : The Business Times, March 12, 2009
Rate keeps sliding for long-haul customers in face of refinancing war
HSBC has just come up with a sexy mortgage deal in a bid to keep its customers - on the condition that borrowers park at least $100,000 at the bank.
Borrowers who stay with the bank for 10 years exactly see their first-year spread of 1.5 percentage points - that is the margin they pay on top of the three-month Sibor rate - slide and eventually disappear in the 10th year. Thereafter, the spread jacks up back to 1.2-points.
Sibor is the interbank or wholesale rate and Sibor-plus packages are popular with borrowers betting that this will remain low as governments pump money into the banking system to tackle the global recession.
A home loan war is looming with HSBC's offer hot on the heels of other initiatives. Last week, Maybank announced the lowest three-year fixed-rate deal in town.
Some bankers claim that hardly anyone sticks to a bank for 10 years, with three years the norm before fickle borrowers are tempted away.
HSBC said that those who stay will enjoy a steady year-on-year decreasing interest rate spread.
The spread for the first year starts at 1.5 points on top of the three-month Sibor. This is reduced by 0.075 of a point at the end of each anniversary year.
If customers keep their loans, their spread falls to zero in the 10th year.
The loyalty discount works only if customers deposit a minimum $100,000 of assets such as deposits or investments and insurance with HSBC.
After the 10th year, the interest rate spread goes back up to 1.2 points for the remaining tenure of the home loan.
There is no lock-in period so borrowers have full flexibility, said HSBC.
Over 10 years, HSBC customers pay an average of 1.08 per cent while it's an average of 1.425 per cent over the first three years, noted United Overseas Bank head of loans Kevin Lam.
He said that UOB has a fixed-rate three-year loan where it charges the cost of funds plus a 1.25-point spread for borrowers whose loan to value ratio is 80 per cent. For no lock-in, the spread is currently 1.75 points.
Mr Lam noted that for 'safe' borrowers, that is those whose loan to value ratio is low - say 50-60 per cent - UOB is willing to charge a lower spread.
Loan to value ratio refers to the loan quantum versus the value of the property and with property prices still sliding, banks will reward customers who borrow less.
DBS Bank too has loyalty Sibor-plus packages with the spread sliding up to three years.
Under its package, customers financing loans of 60 per cent or less of valuation can enjoy a spread which starts at 1.1 points for the first year and falls to as low as 0.8-point in the third year. Thereafter, the spread is 1.25 points.
This applies only to completed owner-occupied properties.
'When customers commit a longer period with us, the interest rate spread is also reduced,' said a DBS spokesman. 'This loyalty reward is still available to this day and available for three and 12-month (Sibor) packages for customers, including those new to our bank.'
In these recessionary times, borrowers still have some options as banks try to outwit one another to sell their loans and, to give it credit, HSBC was the first to launch loyalty loan packages, keeping rivals on their toes.
Last July, HSBC unveiled its innovative Sibor plus loyalty offer with year-on-year decreasing spread for the first three years of the loan.
Rate keeps sliding for long-haul customers in face of refinancing war
HSBC has just come up with a sexy mortgage deal in a bid to keep its customers - on the condition that borrowers park at least $100,000 at the bank.
Borrowers who stay with the bank for 10 years exactly see their first-year spread of 1.5 percentage points - that is the margin they pay on top of the three-month Sibor rate - slide and eventually disappear in the 10th year. Thereafter, the spread jacks up back to 1.2-points.
Sibor is the interbank or wholesale rate and Sibor-plus packages are popular with borrowers betting that this will remain low as governments pump money into the banking system to tackle the global recession.
A home loan war is looming with HSBC's offer hot on the heels of other initiatives. Last week, Maybank announced the lowest three-year fixed-rate deal in town.
Some bankers claim that hardly anyone sticks to a bank for 10 years, with three years the norm before fickle borrowers are tempted away.
HSBC said that those who stay will enjoy a steady year-on-year decreasing interest rate spread.
The spread for the first year starts at 1.5 points on top of the three-month Sibor. This is reduced by 0.075 of a point at the end of each anniversary year.
If customers keep their loans, their spread falls to zero in the 10th year.
The loyalty discount works only if customers deposit a minimum $100,000 of assets such as deposits or investments and insurance with HSBC.
After the 10th year, the interest rate spread goes back up to 1.2 points for the remaining tenure of the home loan.
There is no lock-in period so borrowers have full flexibility, said HSBC.
Over 10 years, HSBC customers pay an average of 1.08 per cent while it's an average of 1.425 per cent over the first three years, noted United Overseas Bank head of loans Kevin Lam.
He said that UOB has a fixed-rate three-year loan where it charges the cost of funds plus a 1.25-point spread for borrowers whose loan to value ratio is 80 per cent. For no lock-in, the spread is currently 1.75 points.
Mr Lam noted that for 'safe' borrowers, that is those whose loan to value ratio is low - say 50-60 per cent - UOB is willing to charge a lower spread.
Loan to value ratio refers to the loan quantum versus the value of the property and with property prices still sliding, banks will reward customers who borrow less.
DBS Bank too has loyalty Sibor-plus packages with the spread sliding up to three years.
Under its package, customers financing loans of 60 per cent or less of valuation can enjoy a spread which starts at 1.1 points for the first year and falls to as low as 0.8-point in the third year. Thereafter, the spread is 1.25 points.
This applies only to completed owner-occupied properties.
'When customers commit a longer period with us, the interest rate spread is also reduced,' said a DBS spokesman. 'This loyalty reward is still available to this day and available for three and 12-month (Sibor) packages for customers, including those new to our bank.'
In these recessionary times, borrowers still have some options as banks try to outwit one another to sell their loans and, to give it credit, HSBC was the first to launch loyalty loan packages, keeping rivals on their toes.
Last July, HSBC unveiled its innovative Sibor plus loyalty offer with year-on-year decreasing spread for the first three years of the loan.
Exodus From Shaw Centre
Source : The Straits Times, March 12, 2009
MORE than a third of the 86 retail tenants at Shaw Centre have moved out after their rents almost doubled.
An empty unit at Shaw Centre - a common sight as rising rents force more than a third of the 86 retail tenants to move out. -- ST PHOTO: SHAHRIYA YAHAYA
About 31 units stand empty over five levels of shops and restaurants - the first five floors of the 25 storey office block on Orchard Road.
The sharp rise in rent has caught out fashion boutique Hawaiiana, which is bailing out at the end of the month after more than 20 years at Shaw Centre.
Its rent doubled when it renewed its lease last April and owner Nah Hoei Ling said it could not afford to stay.
Shaw Centre, which houses a variety of retail tenants - including jewellers, opticians, fashion boutiques, restaurants, spas and tailors - is owned by the Shaw Foundation. It distributes the rental revenue among charities.
The rent increases began as early as last April, but tenants said the exodus picked up speed around the end of last year when many had to renew leases.
Those that decided to stay are now paying rates ranging from $12 to $15 per sq ft (psf), compared with $6 to over $7 psf in the past.
The rent increases have come at a difficult time, with some businesses in the centre seeing sales fall as much as 40 per cent amid the economic downturn.
Departing tenants have settled in nearby malls such as Lucky Plaza and Far East Plaza, while one plans to set up shop in the upcoming Orchard Central.
It appears the building's management has moderated some rent increases.
Optician Optic Point moved to a third floor unit after its 16th floor office rent nearly tripled. It is now paying 'below $11 psf', said a spokesman, but it has had to reduce its working space from 1,000 to 500 sq ft.
Shaw Centre management declined to comment on whether the rent moderations were brought on by the exodus of tenants. They also declined to give a reason for the initial increases.
Singapore Retailers Association executive director Lau Chuen Wei said tenants voting with their feet could be a sign of things to come if landlords do not moderate rent increases.
'Prevention is better than cure. We hope landlords can work together with tenants to ensure a positive future for both parties,' said Mr Lau.
The association has met landlords to ask them to lower rents by 20 per cent to 30 per cent since last month.
MORE than a third of the 86 retail tenants at Shaw Centre have moved out after their rents almost doubled.
An empty unit at Shaw Centre - a common sight as rising rents force more than a third of the 86 retail tenants to move out. -- ST PHOTO: SHAHRIYA YAHAYAAbout 31 units stand empty over five levels of shops and restaurants - the first five floors of the 25 storey office block on Orchard Road.
The sharp rise in rent has caught out fashion boutique Hawaiiana, which is bailing out at the end of the month after more than 20 years at Shaw Centre.
Its rent doubled when it renewed its lease last April and owner Nah Hoei Ling said it could not afford to stay.
Shaw Centre, which houses a variety of retail tenants - including jewellers, opticians, fashion boutiques, restaurants, spas and tailors - is owned by the Shaw Foundation. It distributes the rental revenue among charities.
The rent increases began as early as last April, but tenants said the exodus picked up speed around the end of last year when many had to renew leases.
Those that decided to stay are now paying rates ranging from $12 to $15 per sq ft (psf), compared with $6 to over $7 psf in the past.
The rent increases have come at a difficult time, with some businesses in the centre seeing sales fall as much as 40 per cent amid the economic downturn.
Departing tenants have settled in nearby malls such as Lucky Plaza and Far East Plaza, while one plans to set up shop in the upcoming Orchard Central.
It appears the building's management has moderated some rent increases.
Optician Optic Point moved to a third floor unit after its 16th floor office rent nearly tripled. It is now paying 'below $11 psf', said a spokesman, but it has had to reduce its working space from 1,000 to 500 sq ft.
Shaw Centre management declined to comment on whether the rent moderations were brought on by the exodus of tenants. They also declined to give a reason for the initial increases.
Singapore Retailers Association executive director Lau Chuen Wei said tenants voting with their feet could be a sign of things to come if landlords do not moderate rent increases.
'Prevention is better than cure. We hope landlords can work together with tenants to ensure a positive future for both parties,' said Mr Lau.
The association has met landlords to ask them to lower rents by 20 per cent to 30 per cent since last month.
Shaw Centre Risks Losing Tenants To Upcoming Malls
Source : Channel NewsAsia, 10 March 2009
A 40-year-old shopping icon in Orchard Road is at risk of losing its tenants to upcoming malls in the area.
Sources told Channel NewsAsia that about half of Shaw Centre's office and retail tenants had moved out within the last six months.
Many of them refused to renew their leases after Shaw raised rents by about 100 per cent.
Tyan and Betty Barclays, both upmarket boutiques on the ground floor of Shaw, are moving out over the next few months.
Tyan is going to ION and Betty Barclays to Orchard Central, both new malls that are coming up.
And they are not the first to ship out.
Gamon Video had moved to nearby Far East Shopping Centre in June last year.
The owner of the video outlet, Sandra Kok, said Shaw wanted to double her rent to about S$14 per square foot when her lease was up for renewal.
Ms Kok said: "When we asked them (Shaw) whether they were going to renovate, they said they were not sure yet at the moment. We also knew that we could not stay, because many of the shops were moving out. Recently when I checked, about 20 units were vacant, even the office (tenants) were also moving. Some of them said they would find a new place."
Some tenants who did not want to be named told Channel NewsAsia that they had not received the official word from their landlord about the centre's renovations.
Some said they only heard it through a centre manager. When contacted, Shaw declined to comment. It would only say that it is in the midst of finalising plans and an outcome is expected in a few months.
Still, it seems clear that older developments like Shaw Centre need to redevelop soon or risk losing tenants to newer malls.
Grace Ng, Deputy Managing Director, Agency and Business Services, Colliers International, said: "The ION Orchard, 313 Somerset, Orchard Central -- all these are actually competing for tenants, so it is inevitable that they (Shaw) have to redevelop. So whether it is a market downturn or upturn, you still need to redevelop and renovate to keep up with the times.
"But they may have to adopt a few strategies to ease the cashflow, like phasing up the development so that they can retain the tenants."
To attract tenants in this downturn, some malls have also implemented a flexible rent structure, pegging the rental to the tenant's gross turnover.
Ms Ng said: "In view of the market downturn, they may work out a lower base rent, a lower fixed cost and higher percentage turnover. That means the percentage turnover may be a bigger component.
"In light of that, they can also beef up their advertising and promotion budget. To attract shoppers to the mall, they can offer promotions such as free first hour parking, or tie up with credit card companies to offer discounts. All these will attract shoppers to the mall and in turn help tenants." - CNA/yt
A 40-year-old shopping icon in Orchard Road is at risk of losing its tenants to upcoming malls in the area.
Sources told Channel NewsAsia that about half of Shaw Centre's office and retail tenants had moved out within the last six months. Many of them refused to renew their leases after Shaw raised rents by about 100 per cent.
Tyan and Betty Barclays, both upmarket boutiques on the ground floor of Shaw, are moving out over the next few months.
Tyan is going to ION and Betty Barclays to Orchard Central, both new malls that are coming up.
And they are not the first to ship out.
Gamon Video had moved to nearby Far East Shopping Centre in June last year.
The owner of the video outlet, Sandra Kok, said Shaw wanted to double her rent to about S$14 per square foot when her lease was up for renewal.
Ms Kok said: "When we asked them (Shaw) whether they were going to renovate, they said they were not sure yet at the moment. We also knew that we could not stay, because many of the shops were moving out. Recently when I checked, about 20 units were vacant, even the office (tenants) were also moving. Some of them said they would find a new place."
Some tenants who did not want to be named told Channel NewsAsia that they had not received the official word from their landlord about the centre's renovations.
Some said they only heard it through a centre manager. When contacted, Shaw declined to comment. It would only say that it is in the midst of finalising plans and an outcome is expected in a few months.
Still, it seems clear that older developments like Shaw Centre need to redevelop soon or risk losing tenants to newer malls.
Grace Ng, Deputy Managing Director, Agency and Business Services, Colliers International, said: "The ION Orchard, 313 Somerset, Orchard Central -- all these are actually competing for tenants, so it is inevitable that they (Shaw) have to redevelop. So whether it is a market downturn or upturn, you still need to redevelop and renovate to keep up with the times.
"But they may have to adopt a few strategies to ease the cashflow, like phasing up the development so that they can retain the tenants."
To attract tenants in this downturn, some malls have also implemented a flexible rent structure, pegging the rental to the tenant's gross turnover.
Ms Ng said: "In view of the market downturn, they may work out a lower base rent, a lower fixed cost and higher percentage turnover. That means the percentage turnover may be a bigger component.
"In light of that, they can also beef up their advertising and promotion budget. To attract shoppers to the mall, they can offer promotions such as free first hour parking, or tie up with credit card companies to offer discounts. All these will attract shoppers to the mall and in turn help tenants." - CNA/yt
Regent Court Ruling Explained
Source : The Straits Times, March 11, 2009
By K. C. Vijayan, Law Correspondent
THE difference between breaking even and making a profit was at the heart of a High Court decision to overrule the Strata Titles Board (STB) and let the Regent Court en bloc sale application proceed.
Justice Judith Prakash handed down her decision last October and released the grounds for it last week.
The legal row began when the STB rejected the estate's collective sale application in December 2007 after two objectors said they would suffer losses in the deal.
The objectors said their share of the sale proceeds would amount to $932,000; they had bought their flat for $993,000.
But Senior Counsel Hri Kumar and lawyers Gary Low and Benedict Teo from Drew & Napier argued in last October's appeal that the buyer, Regent Development, had undertaken to settle the gross difference of $93,935.75 once the sale went through.
The STB did not consider this payment and took account of only the objectors' purchase price and the en bloc sale price.
This meant the objectors would end up out of pocket, enough to abort the application, the STB ruled.
The lawyers argued that the board's approach would be 'highly prejudicial to the public interest in that it would unreasonably hinder en bloc sales'.
They said that as property prices fluctuated, it was possible to have at least one owner who bought a flat at a price below the en bloc price.
This would mean that even if 99 per cent of owners voted for the sale, it could not go through, they added.
Justice Prakash agreed and added that the Land Titles (Strata) Act empowered the STB to ensure the buyer agreed to make good any loss suffered by the objecting owner.
The STB still has to consider all the relevant evidence, including the concerns of eight other objectors besides the two referred to in the judgment, before making a decision on the en bloc application. Its hearing on the $34 million collective sale for the 49 units at the Serangoon Road site is expected later this month.
By K. C. Vijayan, Law Correspondent
THE difference between breaking even and making a profit was at the heart of a High Court decision to overrule the Strata Titles Board (STB) and let the Regent Court en bloc sale application proceed.
Justice Judith Prakash handed down her decision last October and released the grounds for it last week.
The legal row began when the STB rejected the estate's collective sale application in December 2007 after two objectors said they would suffer losses in the deal.
The objectors said their share of the sale proceeds would amount to $932,000; they had bought their flat for $993,000.
But Senior Counsel Hri Kumar and lawyers Gary Low and Benedict Teo from Drew & Napier argued in last October's appeal that the buyer, Regent Development, had undertaken to settle the gross difference of $93,935.75 once the sale went through.
The STB did not consider this payment and took account of only the objectors' purchase price and the en bloc sale price.
This meant the objectors would end up out of pocket, enough to abort the application, the STB ruled.
The lawyers argued that the board's approach would be 'highly prejudicial to the public interest in that it would unreasonably hinder en bloc sales'.
They said that as property prices fluctuated, it was possible to have at least one owner who bought a flat at a price below the en bloc price.
This would mean that even if 99 per cent of owners voted for the sale, it could not go through, they added.
Justice Prakash agreed and added that the Land Titles (Strata) Act empowered the STB to ensure the buyer agreed to make good any loss suffered by the objecting owner.
The STB still has to consider all the relevant evidence, including the concerns of eight other objectors besides the two referred to in the judgment, before making a decision on the en bloc application. Its hearing on the $34 million collective sale for the 49 units at the Serangoon Road site is expected later this month.
Costliest Cities: S'pore's Ranking Up
Source : The Straits Times, March 11, 2009
London, European cities relatively cheaper as pound and euro plunge
DRAMATIC shifts in currency values have propelled Singapore towards the top of a survey of the world's most expensive cities.
Singapore is now ranked 10th most expensive city in the world, but economists here note that this reflects sharp exchange rate movements rather than changes in living costs. -- ST PHOTO: SAMUEL HE
The Republic leapt five places to 10th costliest city in the world in just six months, as European cities like Brussels and Dublin have become relatively cheaper places following the euro's plunge in value, according to the Economist Intelligence Unit (EIU) survey of 140 cities.
London fell from 8th to an incredible 27th on the list - reflecting the near 30 per cent depreciation of the British pound against the dollar over a half-year period.
Report editor Jon Copestak said: 'Two factors drive the relative cost of living - local prices and exchange rates.
'Normally our ranking of cities by cost of living is relatively stable, but in the current global climate, changes in exchange rates have significantly altered our assessment of the most and least expensive cities.'
The survey, which updates EIU's findings last September with the exchange rates that applied last month, now ranks Tokyo and Osaka as the most expensive cities in the world.
The euro and pound weakened dramatically during the interim as the financial crisis gained momentum, with markets witnessing a flight to perceived safe haven currencies such as the yen and the US dollar.
A stronger US dollar helped push Hong Kong - whose currency is pegged to the dollar - 17 places higher up to 11th, just behind Singapore.
The cost of living in Chinese cities like Shanghai, where the yuan is pegged to the dollar, rose steeply relative to cities in other countries.
The EIU's index, which measures the prices of 160 products and services such as food, clothing and utilities, but does not include commercial or residential rent, is designed to help companies calculate the pay packages they give to their expatriate employees.
Economists here caution that the survey's findings should be viewed in context, and were more a reflection of sharp exchange rate movements than actual changes in living costs.
'The euro has weakened because of the stress that European countries have come under due to the slowdown - but this is not going to persist,' said OCBC economist Emmanuel Ng.
'Over the next three to six months, we should see a fair chance of the major currencies being vulnerable to the dollar. But, once the mess clears and we actually see the bottom, the risk appetite will come back. There will be an interest to shift funds into other currencies to the US dollar's disadvantage.'
Mr Ng predicted that Singapore will fall back down the rankings as the euro strengthens and consumer prices continue to drop in Singapore relative to other countries.
Inflation here has plunged as oil and food prices have become cheaper. The Consumer Price Index slowed to just a 2.9 per cent gain in January over the same month a year ago. It jumped 4.3 per cent in December.
Costs of living are of increasing concern to businesses, which are keen to prune costs in the light of the economic downturn.
Said the American Chamber of Commerce's executive director Laura Deal: 'With the current economic environment and the challenges ahead, companies are looking at their budgets with different perspectives, and are trying to cut costs wherever they can.
'This could include moving expats to countries where costs of living are lower.'
London, European cities relatively cheaper as pound and euro plunge
DRAMATIC shifts in currency values have propelled Singapore towards the top of a survey of the world's most expensive cities.
Singapore is now ranked 10th most expensive city in the world, but economists here note that this reflects sharp exchange rate movements rather than changes in living costs. -- ST PHOTO: SAMUEL HEThe Republic leapt five places to 10th costliest city in the world in just six months, as European cities like Brussels and Dublin have become relatively cheaper places following the euro's plunge in value, according to the Economist Intelligence Unit (EIU) survey of 140 cities.
London fell from 8th to an incredible 27th on the list - reflecting the near 30 per cent depreciation of the British pound against the dollar over a half-year period.
Report editor Jon Copestak said: 'Two factors drive the relative cost of living - local prices and exchange rates.
'Normally our ranking of cities by cost of living is relatively stable, but in the current global climate, changes in exchange rates have significantly altered our assessment of the most and least expensive cities.'
The survey, which updates EIU's findings last September with the exchange rates that applied last month, now ranks Tokyo and Osaka as the most expensive cities in the world.
The euro and pound weakened dramatically during the interim as the financial crisis gained momentum, with markets witnessing a flight to perceived safe haven currencies such as the yen and the US dollar.
A stronger US dollar helped push Hong Kong - whose currency is pegged to the dollar - 17 places higher up to 11th, just behind Singapore.
The cost of living in Chinese cities like Shanghai, where the yuan is pegged to the dollar, rose steeply relative to cities in other countries.
The EIU's index, which measures the prices of 160 products and services such as food, clothing and utilities, but does not include commercial or residential rent, is designed to help companies calculate the pay packages they give to their expatriate employees.
Economists here caution that the survey's findings should be viewed in context, and were more a reflection of sharp exchange rate movements than actual changes in living costs.
'The euro has weakened because of the stress that European countries have come under due to the slowdown - but this is not going to persist,' said OCBC economist Emmanuel Ng.
'Over the next three to six months, we should see a fair chance of the major currencies being vulnerable to the dollar. But, once the mess clears and we actually see the bottom, the risk appetite will come back. There will be an interest to shift funds into other currencies to the US dollar's disadvantage.'
Mr Ng predicted that Singapore will fall back down the rankings as the euro strengthens and consumer prices continue to drop in Singapore relative to other countries.
Inflation here has plunged as oil and food prices have become cheaper. The Consumer Price Index slowed to just a 2.9 per cent gain in January over the same month a year ago. It jumped 4.3 per cent in December.
Costs of living are of increasing concern to businesses, which are keen to prune costs in the light of the economic downturn.
Said the American Chamber of Commerce's executive director Laura Deal: 'With the current economic environment and the challenges ahead, companies are looking at their budgets with different perspectives, and are trying to cut costs wherever they can.
'This could include moving expats to countries where costs of living are lower.'
Waterfront Estate Design Contest A Big Draw
Source : The Straits Times, March 11, 2009
A COMPETITION to design Punggol's first waterfront homes has attracted a huge response from local and foreign architects.
An artist's impression of Punggol Waterway. Five shortlisted firms will design a 4.9ha site there. -- PHOTO: HDB
A technical seminar held yesterday for participating architectural firms drew a turnout of more than 200 people, all keen to have a say in how Singapore's first waterfront public housing estate will take shape.
Architects have to design a masterplan for a 26.6ha housing district west of Punggol's town centre by April17.
Five shortlisted firms will go on to design a more detailed 4.9ha site along the Punggol Waterway. This phase of the competition closes on Aug 21.
The top design will be announced and exhibited in November, with the winning team contracted to execute its masterplan. The Housing Board plans to offer the waterfront homes by mid-2010.
The winner will be awarded $300,000, which is part of the consultancy fee for the project. Two merit winners will also be chosen and awarded $100,000 each, said the HDB.
Its deputy chief executive of building, Mr Lau Joo Ming, yesterday urged the architects at the seminar to be 'bold...and dare to be different'.
He said the competition is open to anyone, from young upstarts to established local and foreign firms.
The HDB has devised a theme for the estate - Green Living By The Waters - and hopes architects will conjure up fresh ideas and concepts around it.
It also hopes that the winning design will succeed in building up the estate's population to the point where it can support wider recreational and commercial facilities, activating its recreational coastline and enhancing the town's transport routes and connectivity.
Among the local firms at the seminar were DP Architects, RSP Architects, Woha Architects and Surbana International Consultants.
A COMPETITION to design Punggol's first waterfront homes has attracted a huge response from local and foreign architects.
An artist's impression of Punggol Waterway. Five shortlisted firms will design a 4.9ha site there. -- PHOTO: HDBA technical seminar held yesterday for participating architectural firms drew a turnout of more than 200 people, all keen to have a say in how Singapore's first waterfront public housing estate will take shape.
Architects have to design a masterplan for a 26.6ha housing district west of Punggol's town centre by April17.
Five shortlisted firms will go on to design a more detailed 4.9ha site along the Punggol Waterway. This phase of the competition closes on Aug 21.
The top design will be announced and exhibited in November, with the winning team contracted to execute its masterplan. The Housing Board plans to offer the waterfront homes by mid-2010.
The winner will be awarded $300,000, which is part of the consultancy fee for the project. Two merit winners will also be chosen and awarded $100,000 each, said the HDB.
Its deputy chief executive of building, Mr Lau Joo Ming, yesterday urged the architects at the seminar to be 'bold...and dare to be different'.
He said the competition is open to anyone, from young upstarts to established local and foreign firms.
The HDB has devised a theme for the estate - Green Living By The Waters - and hopes architects will conjure up fresh ideas and concepts around it.
It also hopes that the winning design will succeed in building up the estate's population to the point where it can support wider recreational and commercial facilities, activating its recreational coastline and enhancing the town's transport routes and connectivity.
Among the local firms at the seminar were DP Architects, RSP Architects, Woha Architects and Surbana International Consultants.
Private Property Developers May Introduce Rental Guarantee Schemes
Source : Channel NewsAsia, 09 March 2009
Despite the recent pickup in activity in the residential property market, developers may start offering even greater incentives to attract buyers.
Analysts say it is still too early to say for sure that the market has hit bottom, and developers may have to do more if conditions weaken.
A new project, Double Bay Residences, has been launched for sale, and like several recent offerings, the developer is offering to absorb interest on the mortgage until the units are ready for occupation.
But analysts say such incentives may not be enough.
Head of research and consultancy at Jones Lang LaSalle, Chua Yang Liang, said: "If you look at the market today, the incentives that developers provide can be broadly classified into two groups - soft and hard (incentives).
"Right now, we see more of the soft (incentive), which is more of a marketing appeal to buyers with things like furniture, television sets, one of the kickbacks that developers provide.
"In 1998, at the heart of downturn, we saw more hard incentives. We saw affordability slanted incentives, discounted pricing, price guarantees, price appreciation guarantees and rental guarantees."
With rental guarantees, developers undertake to guarantee rents at a specified yield over a certain period of time. According to some property consultants, developers may start making such offers towards the end of the year.
However, developers say such measures are unlikely in the near term as there is still sufficient demand.
Chief operating officer of UOL Group, Liam Wee Sin, said: "Even for the Interest Absorption Scheme (IAS), you'll be surprised that we have less than 50 per cent (of buyers) taking it up. So a lot of them are not even opting for the IAS, which means they can well afford the interest."
He added that part of the reason is the Asian perception of home ownership. Mr Lim said: "People tend to underestimate Asian mentality. The Asian mentality is that property is a very big part of wealth creation. It is also an aspiration.
"In the 1990s when it was a bottom-up market, when people could afford (a private condominium) they would take a view (at the apartment) and jump into the market and buy one."
With prices of public housing remaining strong, property watchers say this makes it affordable for homeowners who want to upgrade to mass market private homes. For now, this will help support the mass market private residential segment. - CNA/yt
Despite the recent pickup in activity in the residential property market, developers may start offering even greater incentives to attract buyers.
Analysts say it is still too early to say for sure that the market has hit bottom, and developers may have to do more if conditions weaken. A new project, Double Bay Residences, has been launched for sale, and like several recent offerings, the developer is offering to absorb interest on the mortgage until the units are ready for occupation.
But analysts say such incentives may not be enough.
Head of research and consultancy at Jones Lang LaSalle, Chua Yang Liang, said: "If you look at the market today, the incentives that developers provide can be broadly classified into two groups - soft and hard (incentives).
"Right now, we see more of the soft (incentive), which is more of a marketing appeal to buyers with things like furniture, television sets, one of the kickbacks that developers provide.
"In 1998, at the heart of downturn, we saw more hard incentives. We saw affordability slanted incentives, discounted pricing, price guarantees, price appreciation guarantees and rental guarantees."
With rental guarantees, developers undertake to guarantee rents at a specified yield over a certain period of time. According to some property consultants, developers may start making such offers towards the end of the year.
However, developers say such measures are unlikely in the near term as there is still sufficient demand.
Chief operating officer of UOL Group, Liam Wee Sin, said: "Even for the Interest Absorption Scheme (IAS), you'll be surprised that we have less than 50 per cent (of buyers) taking it up. So a lot of them are not even opting for the IAS, which means they can well afford the interest."
He added that part of the reason is the Asian perception of home ownership. Mr Lim said: "People tend to underestimate Asian mentality. The Asian mentality is that property is a very big part of wealth creation. It is also an aspiration.
"In the 1990s when it was a bottom-up market, when people could afford (a private condominium) they would take a view (at the apartment) and jump into the market and buy one."
With prices of public housing remaining strong, property watchers say this makes it affordable for homeowners who want to upgrade to mass market private homes. For now, this will help support the mass market private residential segment. - CNA/yt
In The Post - UOB's Foray Into Heartland Home Loans
Source : The Business Times, March 10, 2009
Bank ties up with SingPost to sell HDB loans and challenge rivals on their turf
In a surprise move, United Overseas Bank (UOB) has tied-up exclusively with SingPost to sell HDB home loans, muscling its way into mass market mortgages that have so far been dominated by rivals DBS Group Holdings and OCBC Bank.
UOB which has previously targeted private property buyers and the affluent yesterday said it has forged a strategic alliance with SingPost to distribute UOB HDB Home Loans.
The bank will initially start with four SingPost outlets and plan to have up to 24 post office branches by the end of the year to sell HDB homes loans. SingPost has 62 branches all over the island.
'The latest move extends UOB's HDB home loans' distribution network beyond its 57 branches,' UOB and SingPost said in a joint statement.
The exclusive arrangement is for more than 5 years, said Claudia Lim, SingPost corporate communications manager.
SingPost dedicated staff trained by UOB will be selling the HDB home loans, said Ms Lim.
Eddie Khoo, UOB's executive vice-president for personal financial services, said the latest initiative 'is really about bringing convenience to customers by extending the bank's distribution network beyond the walls of our own branches to reach customers'.
'At the macro level, and in the longer term, we see this as a strategic investment as this additional channel enables us to serve our customers better through convenience and accessibility.'
The surprise move will likely spark off a fierce tussle with rivals DBS and OCBC who may seek to protect their turf. Both banks claim to be the market leader. DBS said it has captured HDB buyers through its POSB customers while OCBC has focused on HDB mortgages from the time the government liberalised the market in Jan 2003.
'POSB is the market leader in HDB home loans,' said a DBS spokeswoman. The bank has 53 POSB branches.
'We were also the first in the market to introduce POSB Home Ideal First for first-time homeowners, offering them a 7-day return policy which allows them to assess if the home loan is suitable for their needs,' she said.
Gregory Chan, OCBC head of secured lending, said the bank's team of mobile home loan specialists visit potential customers who are too busy to come to its branches, to explain details of home loan packages and to process applications.
'At the same time, we work with property agents from the largest property firms in Singapore who are in direct contact with home buyers and help market our home loans. This business model has served us well and we continue to be the top player in the HDB home loan market,' said Mr Chan.
Mass market home loans are just about the safest products as Singapore enters its worst recession ever because the prices of HDB homes did not surge wildly during the property bubble. And now, they are not skidding sharply.
In contrast, the prices of some high-end properties have crashed as much as 50 per cent from the peak reached last year. A Citigroup report in January said that, in the high-end segment, properties have seen price corrections of about 35 per cent from a year ago and they could fall by another 30-40 per cent this year.
David Conner, OCBC chief executive, said last month while announcing the bank's 2008 results that negative equity for its property portfolio was low because of the bank's focus on HDB home loans.
He also noted that HDB mortgages are for owner occupation and the loan quantums are small.
'A big part of our portfolio is HDB - prices have not gone up as much - and we do not anticipate a big fall,' he said.
OCBC's home loan book negative equity was 0.7 per cent while 81 per cent of homes for which it has made loans are owner-occupied.
Bank ties up with SingPost to sell HDB loans and challenge rivals on their turf
In a surprise move, United Overseas Bank (UOB) has tied-up exclusively with SingPost to sell HDB home loans, muscling its way into mass market mortgages that have so far been dominated by rivals DBS Group Holdings and OCBC Bank.
UOB which has previously targeted private property buyers and the affluent yesterday said it has forged a strategic alliance with SingPost to distribute UOB HDB Home Loans.
The bank will initially start with four SingPost outlets and plan to have up to 24 post office branches by the end of the year to sell HDB homes loans. SingPost has 62 branches all over the island.
'The latest move extends UOB's HDB home loans' distribution network beyond its 57 branches,' UOB and SingPost said in a joint statement.
The exclusive arrangement is for more than 5 years, said Claudia Lim, SingPost corporate communications manager.
SingPost dedicated staff trained by UOB will be selling the HDB home loans, said Ms Lim.
Eddie Khoo, UOB's executive vice-president for personal financial services, said the latest initiative 'is really about bringing convenience to customers by extending the bank's distribution network beyond the walls of our own branches to reach customers'.
'At the macro level, and in the longer term, we see this as a strategic investment as this additional channel enables us to serve our customers better through convenience and accessibility.'
The surprise move will likely spark off a fierce tussle with rivals DBS and OCBC who may seek to protect their turf. Both banks claim to be the market leader. DBS said it has captured HDB buyers through its POSB customers while OCBC has focused on HDB mortgages from the time the government liberalised the market in Jan 2003.
'POSB is the market leader in HDB home loans,' said a DBS spokeswoman. The bank has 53 POSB branches.
'We were also the first in the market to introduce POSB Home Ideal First for first-time homeowners, offering them a 7-day return policy which allows them to assess if the home loan is suitable for their needs,' she said.
Gregory Chan, OCBC head of secured lending, said the bank's team of mobile home loan specialists visit potential customers who are too busy to come to its branches, to explain details of home loan packages and to process applications.
'At the same time, we work with property agents from the largest property firms in Singapore who are in direct contact with home buyers and help market our home loans. This business model has served us well and we continue to be the top player in the HDB home loan market,' said Mr Chan.
Mass market home loans are just about the safest products as Singapore enters its worst recession ever because the prices of HDB homes did not surge wildly during the property bubble. And now, they are not skidding sharply.
In contrast, the prices of some high-end properties have crashed as much as 50 per cent from the peak reached last year. A Citigroup report in January said that, in the high-end segment, properties have seen price corrections of about 35 per cent from a year ago and they could fall by another 30-40 per cent this year.
David Conner, OCBC chief executive, said last month while announcing the bank's 2008 results that negative equity for its property portfolio was low because of the bank's focus on HDB home loans.
He also noted that HDB mortgages are for owner occupation and the loan quantums are small.
'A big part of our portfolio is HDB - prices have not gone up as much - and we do not anticipate a big fall,' he said.
OCBC's home loan book negative equity was 0.7 per cent while 81 per cent of homes for which it has made loans are owner-occupied.
Mohamed Sultan Road Building Sold For $35.8m
Source : The Business Times, March 12, 2009
Buyer is firm owned by member of family that developed International Plaza
A COMPANY owned by a member of the family that developed International Plaza has bought the freehold Le Mercier House in Mohamed Sultan Road for $35.8 million.
The buyer of 65 Mohamed Sultan Road, Ka$h International Pte Ltd, also owns the property next door. The company is controlled by Cheong Keng Hooi, who is also a director of International Associated Company, the group that developed International Plaza in Tanjong Pagar.
Le Mercier House: Property can be converted into a 15-storey block of apartments
The sale of 65 Mohamed Sultan Road was a private treaty deal brokered by Isabel Redrup Agency Pte Ltd.
The agency said that the property was sold by the Le Mercier family, which has occupied the building for 10 years and is still running its high-end furniture store there.
It added: 'The Le Mercier's store will rent back the four-storey building in the short term now that the sale is completed, but are looking for more upmarket premises.'
The property, which is zoned for warehouse/resi- dential use, can be converted into a 15-storey block of apartments, according to Isabel Redrup managing director Susan Ye.
'The new owners also own the adjacent lot, so it makes sense to amalgamate the lots and rebuild them together,' she said.
'Although the building sits on about 14,200 sq ft of land currently, with 52,000 sq ft of built-up (area), it has a plot ratio of 2.8, so rebuilding it will not allow for more than 39,000 sq ft of gross floor area (GFA) in the future.'
Plot ratio is the ratio of maximum permissible gross floor area to land area.
Analysts say that the $35.8 million sale price works out to about $900 per square foot per plot ratio based on a 2.8 plot ratio - hence a maximum GFA of about 39,000 sq ft.
If the authorities were to allow the existing 52,000 sq ft GFA to be retained in a new development on the site, the unit land price would be lower at about $688 psf per plot ratio.
A seasoned property consultant reckoned that a development charge is probably not payable to redevelop the site.
Buyer is firm owned by member of family that developed International Plaza
A COMPANY owned by a member of the family that developed International Plaza has bought the freehold Le Mercier House in Mohamed Sultan Road for $35.8 million.
The buyer of 65 Mohamed Sultan Road, Ka$h International Pte Ltd, also owns the property next door. The company is controlled by Cheong Keng Hooi, who is also a director of International Associated Company, the group that developed International Plaza in Tanjong Pagar.
Le Mercier House: Property can be converted into a 15-storey block of apartmentsThe sale of 65 Mohamed Sultan Road was a private treaty deal brokered by Isabel Redrup Agency Pte Ltd.
The agency said that the property was sold by the Le Mercier family, which has occupied the building for 10 years and is still running its high-end furniture store there.
It added: 'The Le Mercier's store will rent back the four-storey building in the short term now that the sale is completed, but are looking for more upmarket premises.'
The property, which is zoned for warehouse/resi- dential use, can be converted into a 15-storey block of apartments, according to Isabel Redrup managing director Susan Ye.
'The new owners also own the adjacent lot, so it makes sense to amalgamate the lots and rebuild them together,' she said.
'Although the building sits on about 14,200 sq ft of land currently, with 52,000 sq ft of built-up (area), it has a plot ratio of 2.8, so rebuilding it will not allow for more than 39,000 sq ft of gross floor area (GFA) in the future.'
Plot ratio is the ratio of maximum permissible gross floor area to land area.
Analysts say that the $35.8 million sale price works out to about $900 per square foot per plot ratio based on a 2.8 plot ratio - hence a maximum GFA of about 39,000 sq ft.
If the authorities were to allow the existing 52,000 sq ft GFA to be retained in a new development on the site, the unit land price would be lower at about $688 psf per plot ratio.
A seasoned property consultant reckoned that a development charge is probably not payable to redevelop the site.
Malaysian Property Will Consolidate In '09: DTZ
Source : The Business Times, March 12, 2009
MALAYSIA'S property market will consolidate over the next six months after ending last year with a whimper, says property firm Debenham Tie Leung (DTZ).
Despite the slump, DTZ does not anticipate immediate fire sales, but expects opportunities to emerge at attractive prices as investors demand higher yields.
'Should there be fire-sale units', it sees opportunistic buying in the residential secondary market, especially in the prime locations of Kuala Lumpur City Centre (KLCC) and Mont Kiara, where a large number of units are due for completion this year.
The main concern for investors in these areas is yield, DTZ says in a report released yesterday.
Some purchasers and investors could switch to landed property in prime areas, as landed prices have held better and landed property is considered a safer hedge, it says.
Investors from Singapore, Indonesia and the Middle East will still be keen to invest in Malaysian property because prices are lower than in other regional markets, DTZ believes.
'The most resilient properties will be urban mid-range residential products, which will drive the property market in 2009 due to strong population demographics and fundamental demand in this sub-sector,' it says, adding that lower interest rates will bolster demand.
To encourage property ownership in the current weak economic climate, Malaysia this week proposed a tax deduction of up to RM10,000 (S$4146) a year on mortgage payments for purchase agreements executed before the end of next year.
After two years of strong increases in rents and capital values, DTZ expects the office market to see 'some consolidation' - a situation it says will be healthy, as there is significant supply in the pipeline.
It notes that many business relocations and expansions have been put on hold, with leasing enquiries emanating mostly from small occupiers.
The office occupancy rate remained steady at 90 per cent in the fourth quarter of last year, but the average rent for prime office space dipped 1.6 per cent quarter-on-quarter to RM6.30 per sq ft per month. Still, the average prime office rent finished the year 8 per cent higher.
Prime office capital values suffered a quarterly fall of 7 per cent to RM824 psf in Q4 2008, and transactions since then have failed to breach the RM1,000 psf mark achieved in 2007 to early 2008.
In the retail segment, rents have flattened over the past two quarters and are under pressure as retailers seek concessions to cushion weaker sales as unemployment rises.
'Landlords face challenges of increasing operating costs, retail centre branding and unique positioning in a congested market place,' DTZ says.
But shopping centres with an optimal tenant mix, a good marketing strategy and a key location still enjoy stable occupancy of about 90 per cent, it notes.
MALAYSIA'S property market will consolidate over the next six months after ending last year with a whimper, says property firm Debenham Tie Leung (DTZ).
Despite the slump, DTZ does not anticipate immediate fire sales, but expects opportunities to emerge at attractive prices as investors demand higher yields.
'Should there be fire-sale units', it sees opportunistic buying in the residential secondary market, especially in the prime locations of Kuala Lumpur City Centre (KLCC) and Mont Kiara, where a large number of units are due for completion this year.
The main concern for investors in these areas is yield, DTZ says in a report released yesterday.
Some purchasers and investors could switch to landed property in prime areas, as landed prices have held better and landed property is considered a safer hedge, it says.
Investors from Singapore, Indonesia and the Middle East will still be keen to invest in Malaysian property because prices are lower than in other regional markets, DTZ believes.
'The most resilient properties will be urban mid-range residential products, which will drive the property market in 2009 due to strong population demographics and fundamental demand in this sub-sector,' it says, adding that lower interest rates will bolster demand.
To encourage property ownership in the current weak economic climate, Malaysia this week proposed a tax deduction of up to RM10,000 (S$4146) a year on mortgage payments for purchase agreements executed before the end of next year.
After two years of strong increases in rents and capital values, DTZ expects the office market to see 'some consolidation' - a situation it says will be healthy, as there is significant supply in the pipeline.
It notes that many business relocations and expansions have been put on hold, with leasing enquiries emanating mostly from small occupiers.
The office occupancy rate remained steady at 90 per cent in the fourth quarter of last year, but the average rent for prime office space dipped 1.6 per cent quarter-on-quarter to RM6.30 per sq ft per month. Still, the average prime office rent finished the year 8 per cent higher.
Prime office capital values suffered a quarterly fall of 7 per cent to RM824 psf in Q4 2008, and transactions since then have failed to breach the RM1,000 psf mark achieved in 2007 to early 2008.
In the retail segment, rents have flattened over the past two quarters and are under pressure as retailers seek concessions to cushion weaker sales as unemployment rises.
'Landlords face challenges of increasing operating costs, retail centre branding and unique positioning in a congested market place,' DTZ says.
But shopping centres with an optimal tenant mix, a good marketing strategy and a key location still enjoy stable occupancy of about 90 per cent, it notes.
Interest Rate Cuts Fail To Lift UK Property Sector
Source : The Business Times, March 12, 2009
Industry players call for more market liquidity and easier mortgage financing
ATTEMPTS to stimulate Britain's flagging property market by slashing interest rates have been dubbed futile by a leading industry lobby group, as mortgage lending fails to resurface.
On the slide: Data from the Royal Institution of Chartered Surveyors showed transaction volumes sinking to the lowest level since 1978
The National Association of Estate Agents (NAEA) is instead calling for moves to encourage banks to lend again and boost transactions to improve liquidity.
Last week the Bank of England cut its benchmark interest rate half a point to 0.5 per cent, the latest in a series of cuts that have slashed the rate from 5 per cent in October 2008.
But NAEA vice-president Gary Smith said: 'Interest rates can go down to zero and I'm afraid it will make absolutely no difference. What is desperately needed now is more liquidity in the market and more mortgage lending.'
As banks still refuse to lend to prospective home buyers, the rate cuts have 'done nothing to improve fluidity in the housing market', despite assisting home owners by lowering mortgage payments.
'I am yet to be shown the impact that reducing rates has made,' Mr Smith said.
The statement comes as the Royal Institution of Chartered Surveyors (RICS) released data showing a continued slide in housing sales, with the number of transactions sinking to the lowest level since 1978.
The picture looks particularly bleak in London, where on average only six properties have been sold per estate agent in the past three months.
A lack of finance and weak economic conditions are hampering the ability of buyers to enter the market, said RICS spokesman Jeremy Leaf. 'Potential buyers continue to come through estate agency doors but without mortgage finance, transaction levels are likely to remain close to all-time lows.'
He urged government guarantees for first-time buyers seeking mortgages. 'Without further intervention the housing market will continue to stagnate,' he said.
According to RICS, buyer interest is actually increasing as asking prices drop and bargain-hunters emerge.
House prices have been sliding since last year, dropping 17.7 per cent in February from a year earlier, according to mortgage lender Halifax.
Prices fell 2.3 per cent in February from January and have dropped 19.7 per cent since August 2007. The average house in Britain is now worth £160,327 (S$342,503).
Pressure is growing on banks to reverse a virtual credit freeze and start offering home loans.
Most mortgages during the boom years were based on deposits of 10 per cent or less. Today, it is near-impossible to get a mortgage of more than 75 per cent of a house's value.
Meanwhile, the number of new homes being built in England in 2009-10 is expected to drop to the lowest level in almost 90 years, according to the National Housing Federation.
It predicts a 50 per cent fall from last year to just 70,000 new units, as developers shelve projects across the country.
Industry players call for more market liquidity and easier mortgage financing
ATTEMPTS to stimulate Britain's flagging property market by slashing interest rates have been dubbed futile by a leading industry lobby group, as mortgage lending fails to resurface.
On the slide: Data from the Royal Institution of Chartered Surveyors showed transaction volumes sinking to the lowest level since 1978The National Association of Estate Agents (NAEA) is instead calling for moves to encourage banks to lend again and boost transactions to improve liquidity.
Last week the Bank of England cut its benchmark interest rate half a point to 0.5 per cent, the latest in a series of cuts that have slashed the rate from 5 per cent in October 2008.
But NAEA vice-president Gary Smith said: 'Interest rates can go down to zero and I'm afraid it will make absolutely no difference. What is desperately needed now is more liquidity in the market and more mortgage lending.'
As banks still refuse to lend to prospective home buyers, the rate cuts have 'done nothing to improve fluidity in the housing market', despite assisting home owners by lowering mortgage payments.
'I am yet to be shown the impact that reducing rates has made,' Mr Smith said.
The statement comes as the Royal Institution of Chartered Surveyors (RICS) released data showing a continued slide in housing sales, with the number of transactions sinking to the lowest level since 1978.
The picture looks particularly bleak in London, where on average only six properties have been sold per estate agent in the past three months.
A lack of finance and weak economic conditions are hampering the ability of buyers to enter the market, said RICS spokesman Jeremy Leaf. 'Potential buyers continue to come through estate agency doors but without mortgage finance, transaction levels are likely to remain close to all-time lows.'
He urged government guarantees for first-time buyers seeking mortgages. 'Without further intervention the housing market will continue to stagnate,' he said.
According to RICS, buyer interest is actually increasing as asking prices drop and bargain-hunters emerge.
House prices have been sliding since last year, dropping 17.7 per cent in February from a year earlier, according to mortgage lender Halifax.
Prices fell 2.3 per cent in February from January and have dropped 19.7 per cent since August 2007. The average house in Britain is now worth £160,327 (S$342,503).
Pressure is growing on banks to reverse a virtual credit freeze and start offering home loans.
Most mortgages during the boom years were based on deposits of 10 per cent or less. Today, it is near-impossible to get a mortgage of more than 75 per cent of a house's value.
Meanwhile, the number of new homes being built in England in 2009-10 is expected to drop to the lowest level in almost 90 years, according to the National Housing Federation.
It predicts a 50 per cent fall from last year to just 70,000 new units, as developers shelve projects across the country.
Aussie Condo Marketed In S'pore Snapped Up Over Weekend
Source : The Business Times, March 10, 2009
Home prices said to have fallen 30% in 6 months; investors bet on currency gain
PROPERTY appears to be evolving into a currency play with investors hoping to benefit from the rise and fall of exchange rates.
Australian Property Group (APG), which took out a full-page advertisement in The Straits Times on Saturday to market a luxury condominium in Australia, say they have already sold 60 units of the 90-unit development.
A spokeswoman for APG said that most of the buyers were investors who were either Singaporean or foreigners based here.
She added: 'Australian property is a low risk investment with high returns. With the Australian dollar at the same rate as the Singapore dollar, this is the best opportunity to invest in Australian property as it is 30 per cent cheaper compared to six months ago.'
Perhaps what made it an even more attractive investment was that no deposit was required.
APG said that its managing director Sean Niven, who has more than 20 years of real estate experience and has worked with many developers in Australia, managed to negotiate this package with the developer for this promotion.
APG revealed that the 70 square metre units were sold for about A$396,000 (S$390,000) each but said that more details on the development would only be revealed to potential buyers.
Another Australian property, La Banque in Melbourne by the Brady Property Group, was launched over the weekend and marketing agents HSR International Realtors said: 'We had very good response from the general public, and the developers are very happy with the results.'
HSR executive director (overseas property investments) Donna Lim declined to say how many units were sold but added that interest came from investors looking for a high rental yield and good capital gain with some also buying for retirement or their children's education.
Ms Lim added: 'Demand for rental units are high and the supply low with less than one per cent vacancy rate. With the low Australian currency exchange and higher savings interest benefits, investors are taking advantage of the currency going back up to its normal $1.30 against the Singapore dollar in a projected period of time.'
Another consultant, DST International managing director Doris Tan, says that some of her clients committed to properties in London last year when the pound was higher. As they only had to put down a 10 per cent deposit then, the effective price is less today.
DST closed nine deals at an upscale London property for her high net-worth clients in the second half of 2008. The properties cost about £pounds;850 (S$1,820) per square foot.
'Most of our buyers are savvy investors who bought for medium to long-term investment. There is another group who bought for rental yield of about 5-6 per cent. Another group are those purchasing for their children who study in major cities in New York, London, Sydney etc,' added Mrs Tan.
Mrs Tan says that interest for overseas properties peaked in 2007. 'During the first half of 2008 we had a good run but of course everything came to a standstill after September 2008 when the announcement of Lehman Brothers' collapse saw a 50 per cent decrease in transactions compared to 2007,' she added.
DST said that prime Central London properties have fallen by 20 per cent and, coupled with the falling pound and interest rates at historical low levels, London property does look very attractive.
But no investment is without risks.
Jerry Tan, managing director of Jerrytan Residential which has marketed luxury properties in Australia, says buyers are not just looking at exchange rates.
'There has to be an equivalent correction in capital values too,' he added.
Not all properties are expected to sell well either.
Cushman & Wakefield managing director Donald Han said that only 'exceptional' projects will sell in today's market while most developments might see 10 per cent of units sold, if at all.
There are other potential pitfalls as well. Mr Han said that it is important to understand the tax structures of various markets as capital gains tax may apply.
He also noted that in some countries new developments will be built only after a certain percentage of it has been sold.
However, Mr Han says there has been an increasing number of investors who are scouring key cities for 'distressed assets'.
Home prices said to have fallen 30% in 6 months; investors bet on currency gain
PROPERTY appears to be evolving into a currency play with investors hoping to benefit from the rise and fall of exchange rates.
Australian Property Group (APG), which took out a full-page advertisement in The Straits Times on Saturday to market a luxury condominium in Australia, say they have already sold 60 units of the 90-unit development.
A spokeswoman for APG said that most of the buyers were investors who were either Singaporean or foreigners based here.
She added: 'Australian property is a low risk investment with high returns. With the Australian dollar at the same rate as the Singapore dollar, this is the best opportunity to invest in Australian property as it is 30 per cent cheaper compared to six months ago.'
Perhaps what made it an even more attractive investment was that no deposit was required.
APG said that its managing director Sean Niven, who has more than 20 years of real estate experience and has worked with many developers in Australia, managed to negotiate this package with the developer for this promotion.
APG revealed that the 70 square metre units were sold for about A$396,000 (S$390,000) each but said that more details on the development would only be revealed to potential buyers.
Another Australian property, La Banque in Melbourne by the Brady Property Group, was launched over the weekend and marketing agents HSR International Realtors said: 'We had very good response from the general public, and the developers are very happy with the results.'
HSR executive director (overseas property investments) Donna Lim declined to say how many units were sold but added that interest came from investors looking for a high rental yield and good capital gain with some also buying for retirement or their children's education.
Ms Lim added: 'Demand for rental units are high and the supply low with less than one per cent vacancy rate. With the low Australian currency exchange and higher savings interest benefits, investors are taking advantage of the currency going back up to its normal $1.30 against the Singapore dollar in a projected period of time.'
Another consultant, DST International managing director Doris Tan, says that some of her clients committed to properties in London last year when the pound was higher. As they only had to put down a 10 per cent deposit then, the effective price is less today.
DST closed nine deals at an upscale London property for her high net-worth clients in the second half of 2008. The properties cost about £pounds;850 (S$1,820) per square foot.
'Most of our buyers are savvy investors who bought for medium to long-term investment. There is another group who bought for rental yield of about 5-6 per cent. Another group are those purchasing for their children who study in major cities in New York, London, Sydney etc,' added Mrs Tan.
Mrs Tan says that interest for overseas properties peaked in 2007. 'During the first half of 2008 we had a good run but of course everything came to a standstill after September 2008 when the announcement of Lehman Brothers' collapse saw a 50 per cent decrease in transactions compared to 2007,' she added.
DST said that prime Central London properties have fallen by 20 per cent and, coupled with the falling pound and interest rates at historical low levels, London property does look very attractive.
But no investment is without risks.
Jerry Tan, managing director of Jerrytan Residential which has marketed luxury properties in Australia, says buyers are not just looking at exchange rates.
'There has to be an equivalent correction in capital values too,' he added.
Not all properties are expected to sell well either.
Cushman & Wakefield managing director Donald Han said that only 'exceptional' projects will sell in today's market while most developments might see 10 per cent of units sold, if at all.
There are other potential pitfalls as well. Mr Han said that it is important to understand the tax structures of various markets as capital gains tax may apply.
He also noted that in some countries new developments will be built only after a certain percentage of it has been sold.
However, Mr Han says there has been an increasing number of investors who are scouring key cities for 'distressed assets'.
In The New US Property Market, Old Guys Are Hot
Source : The Business Times, March 10, 2009
(NEW YORK) Ted Leary's retirement was short-lived. After saying good-bye to real estate in 2005, he headed for the golf course, but the collapsing commercial property market interrupted his game.
A career that began in the 1970s with the rehabilitation of soured real estate investments had come full circle. 'Suddenly, at the tender age of 64, people are calling me because there aren't many workout people around,' he said, referring to the art of solving problems linked to troubled real estate.
As more deals run into trouble, grizzled veterans with a broad range of knowledge in finance, law, property management and relationship management - along with keen negotiation skills - will be in demand.
'You sort of put that whole mix together, you've got yourself someone that's going to be sitting pretty in terms of being able to step into what are going to be increasingly difficult times,' said Anthony LoPinto, chief executive of real estate executive search firm Equinox Partners.
Mr Leary learned workouts during the 1970s real estate bust.
His firm, Crosswater Realty Advisors, counts Victor Palmieri, one of the first US turnaround specialists, as one of its senior advisers. The firm represents large institutional investors at odds with pension fund advisers, who derive fees from the value of assets that are now declining rapidly.
All of the firm's senior board members, except for one, are over 60.
'I call it the senior adviser group because at least a couple of parts of your body have to be sagging,' Mr Leary said.
US commercial real estate values were on a steady ascent in the 15 years to their peak in 2007.
'We've had a whole generation of people in our business that have never seen anything but numbers that get better,' Mr Leary said.
But the era of the high- leverage deal ended abruptly and debt financing, the life-blood of the industry, has slowed to a trickle. The sector is in a steep downturn, with sales drying up and values falling.
More than US$737.4 billion in mortgages are expected to come due in the next five years, according to the Mortgage Bankers Association. Meanwhile, US property values are likely to have fallen roughly one-third from the peak levels of 2007, according to Prudential Real Estate Investors, more evidence that many borrowers may not be able to repay old mortgages with new ones.
That means the sector will need people with experience in workouts - the process of financially and legally solving problems related to broken loans, orphaned properties, disgusted investors and byzantine debt structures - all done within the context of an overall economic mess.
'The word workout comes from 'we have a problem, we have to work it out,' said John Peters, principle of real estate recruitment firm Peters & Associates.
Banks, financial firms, investor groups and special servicers, which oversee distressed loans supplying cash to pools that pay commercial mortgage-backed securities (CMBS) obligations, are soon expected to hire or contract people to handle what looks to be a barrage of workouts.
Many of the workout professionals will be alumni of the Resolution Trust Corp, which the US government created in 1989 to help sell off distressed real estate held by collapsed banks, thrifts and savings and loans institutions.
But this time the problems will be more complicated and expansive than in the 1990s. Many of the loans and properties are held by companies that are still in business. Extracting the toxic loans without killing the host will be tricky.
'Back then assets were harvested from a cadaver. In this case, it's living organism,' Mr Leary said.
Secondly, more than US$700 billion of senior mortgages outstanding are in CMBS, with US$25 billion maturing in 2009 and US$40 billion to US$50 billion per year between 2010 and 2014, Prudential said.
That means many different investors lay claim to the cash flow of the same mortgage.
'That's one of the big differences between this period and the period of the early '90s,' Mr LoPinto said. 'If you look back at it, the exit strategy of the early '90s debacle was securitisation. This time around, the unwind is going to be the unwind of securitisation.'
The delinquency rate for CMBS loans soared to about 1.63 per cent in February from 0.6 per cent in September, when the credit crisis escalated, according to Deutsche Bank.
It could reach 3.5 per cent by the end of 2009 and 6 per cent by the end of 2010, depending on the credit markets and the economy, said Richard Parkus, Deutsche Bank's head of CMBS research.
Most of the trouble lies with borrowers who can meet monthly interest payments but can't refinance the principle because credit markets have shut down.
'The loans in bank portfolios are a lot worse than the loans in CMBS,' Mr Parkus said.
Further, there are the mezzanine loans and preferred equity that were used to finance property investments.
'The complexity of the debt-structure level has gone up 100 degrees,' said Keith Belcher, JE Robert Cos managing director and head of its CMBS special servicing division.
But younger, less experienced people will still be able to find a place in the workout workforce.
'They're not all going to be 50-year-old grey-haired guys,' Mr Belcher said. 'They're going to need a support group that's going to give some young people, some relatively inexperienced people, help to learn the business along the way.' - Reuters
(NEW YORK) Ted Leary's retirement was short-lived. After saying good-bye to real estate in 2005, he headed for the golf course, but the collapsing commercial property market interrupted his game.
A career that began in the 1970s with the rehabilitation of soured real estate investments had come full circle. 'Suddenly, at the tender age of 64, people are calling me because there aren't many workout people around,' he said, referring to the art of solving problems linked to troubled real estate.
As more deals run into trouble, grizzled veterans with a broad range of knowledge in finance, law, property management and relationship management - along with keen negotiation skills - will be in demand.
'You sort of put that whole mix together, you've got yourself someone that's going to be sitting pretty in terms of being able to step into what are going to be increasingly difficult times,' said Anthony LoPinto, chief executive of real estate executive search firm Equinox Partners.
Mr Leary learned workouts during the 1970s real estate bust.
His firm, Crosswater Realty Advisors, counts Victor Palmieri, one of the first US turnaround specialists, as one of its senior advisers. The firm represents large institutional investors at odds with pension fund advisers, who derive fees from the value of assets that are now declining rapidly.
All of the firm's senior board members, except for one, are over 60.
'I call it the senior adviser group because at least a couple of parts of your body have to be sagging,' Mr Leary said.
US commercial real estate values were on a steady ascent in the 15 years to their peak in 2007.
'We've had a whole generation of people in our business that have never seen anything but numbers that get better,' Mr Leary said.
But the era of the high- leverage deal ended abruptly and debt financing, the life-blood of the industry, has slowed to a trickle. The sector is in a steep downturn, with sales drying up and values falling.
More than US$737.4 billion in mortgages are expected to come due in the next five years, according to the Mortgage Bankers Association. Meanwhile, US property values are likely to have fallen roughly one-third from the peak levels of 2007, according to Prudential Real Estate Investors, more evidence that many borrowers may not be able to repay old mortgages with new ones.
That means the sector will need people with experience in workouts - the process of financially and legally solving problems related to broken loans, orphaned properties, disgusted investors and byzantine debt structures - all done within the context of an overall economic mess.
'The word workout comes from 'we have a problem, we have to work it out,' said John Peters, principle of real estate recruitment firm Peters & Associates.
Banks, financial firms, investor groups and special servicers, which oversee distressed loans supplying cash to pools that pay commercial mortgage-backed securities (CMBS) obligations, are soon expected to hire or contract people to handle what looks to be a barrage of workouts.
Many of the workout professionals will be alumni of the Resolution Trust Corp, which the US government created in 1989 to help sell off distressed real estate held by collapsed banks, thrifts and savings and loans institutions.
But this time the problems will be more complicated and expansive than in the 1990s. Many of the loans and properties are held by companies that are still in business. Extracting the toxic loans without killing the host will be tricky.
'Back then assets were harvested from a cadaver. In this case, it's living organism,' Mr Leary said.
Secondly, more than US$700 billion of senior mortgages outstanding are in CMBS, with US$25 billion maturing in 2009 and US$40 billion to US$50 billion per year between 2010 and 2014, Prudential said.
That means many different investors lay claim to the cash flow of the same mortgage.
'That's one of the big differences between this period and the period of the early '90s,' Mr LoPinto said. 'If you look back at it, the exit strategy of the early '90s debacle was securitisation. This time around, the unwind is going to be the unwind of securitisation.'
The delinquency rate for CMBS loans soared to about 1.63 per cent in February from 0.6 per cent in September, when the credit crisis escalated, according to Deutsche Bank.
It could reach 3.5 per cent by the end of 2009 and 6 per cent by the end of 2010, depending on the credit markets and the economy, said Richard Parkus, Deutsche Bank's head of CMBS research.
Most of the trouble lies with borrowers who can meet monthly interest payments but can't refinance the principle because credit markets have shut down.
'The loans in bank portfolios are a lot worse than the loans in CMBS,' Mr Parkus said.
Further, there are the mezzanine loans and preferred equity that were used to finance property investments.
'The complexity of the debt-structure level has gone up 100 degrees,' said Keith Belcher, JE Robert Cos managing director and head of its CMBS special servicing division.
But younger, less experienced people will still be able to find a place in the workout workforce.
'They're not all going to be 50-year-old grey-haired guys,' Mr Belcher said. 'They're going to need a support group that's going to give some young people, some relatively inexperienced people, help to learn the business along the way.' - Reuters
Housing Market's Upside: Affordability
Source : The Business Times, March 10, 2009
This could stimulate demand when economy stabilises
(NEW YORK) Houses in the United States are now more affordable than at any time in the last 40 years when compared with personal income.
Only a couple of years ago, home prices rose to clearly unsustainable multiples of income, and the abrupt change could hold out hope for a revival of the housing market.
Cheaper: Many sales involve homes that are in or close to foreclosure, and may have been at prices lower than the asking price for others in the area
In the summer of 2005, when funny-money mortgages were readily available and helping to drive up home prices, the national median sales price of a home was almost eight times as much as the average per capita after-tax income of Americans.
But by this January, with incomes up and home prices down sharply, that multiple had fallen to less than five.
That may be little comfort for many homeowners who owe more than their homes are now worth, but it does indicate that home prices have fallen far enough, at least in many areas, to make them affordable.
'You have a big debt overhang problem, but you don't have a house price problem anymore,' said Robert J Barbera, the chief economist of ITG, an advisory firm.
Home prices vary widely from region to region, and people in areas like New York or Los Angeles can only dream of finding an acceptable home for US$169,900, which the National Association of Realtors says was the median sales price of previously owned homes sold in January.
That figure was down from a peak of US$230,900 in July 2006. It is not clear that prices have declined enough to make houses broadly affordable in some regions.
National median prices can be misleading, particularly because more or fewer sales may be coming from high-cost or low-cost areas.
Moreover, the volume of home sales has plunged. Many recent sales involved homes that were in or close to foreclosure, and may have been conducted at prices lower than the asking price for other homes in the area.
But it is also possible that the decline in the median price may understate the devastation that has befallen the housing market in some areas. In December, the latest figure available, the S&P/Case-Shiller composite home price index for the 20 regions was off 27 per cent from July 2006.
The personal income figures may also be high, since they are affected by government transfer payments and include significant increases in Medicaid and unemployment insurance payments. But the trend is the same even with transfer payments eliminated from the calculation.
Pressures are still forcing home prices down, including the difficulty of obtaining mortgages for prospective buyers who cannot meet the standards set by Fannie Mae and Freddie Mac, the government-controlled agencies that finance the bulk of new home loans.
In addition, there was a lot of overbuilding in many areas, and even though construction has plunged, the inventory of unsold homes has stayed stubbornly high. Rising unemployment may discourage some who could buy from doing so.
But at least by one measure, home prices no longer appear to be high by historic standards. That fact could help to stimulate demand, if not immediately, then at least when the economy appears to stabilise. -- NYT
This could stimulate demand when economy stabilises
(NEW YORK) Houses in the United States are now more affordable than at any time in the last 40 years when compared with personal income.
Only a couple of years ago, home prices rose to clearly unsustainable multiples of income, and the abrupt change could hold out hope for a revival of the housing market.
Cheaper: Many sales involve homes that are in or close to foreclosure, and may have been at prices lower than the asking price for others in the areaIn the summer of 2005, when funny-money mortgages were readily available and helping to drive up home prices, the national median sales price of a home was almost eight times as much as the average per capita after-tax income of Americans.
But by this January, with incomes up and home prices down sharply, that multiple had fallen to less than five.
That may be little comfort for many homeowners who owe more than their homes are now worth, but it does indicate that home prices have fallen far enough, at least in many areas, to make them affordable.
'You have a big debt overhang problem, but you don't have a house price problem anymore,' said Robert J Barbera, the chief economist of ITG, an advisory firm.
Home prices vary widely from region to region, and people in areas like New York or Los Angeles can only dream of finding an acceptable home for US$169,900, which the National Association of Realtors says was the median sales price of previously owned homes sold in January.
That figure was down from a peak of US$230,900 in July 2006. It is not clear that prices have declined enough to make houses broadly affordable in some regions.
National median prices can be misleading, particularly because more or fewer sales may be coming from high-cost or low-cost areas.
Moreover, the volume of home sales has plunged. Many recent sales involved homes that were in or close to foreclosure, and may have been conducted at prices lower than the asking price for other homes in the area.
But it is also possible that the decline in the median price may understate the devastation that has befallen the housing market in some areas. In December, the latest figure available, the S&P/Case-Shiller composite home price index for the 20 regions was off 27 per cent from July 2006.
The personal income figures may also be high, since they are affected by government transfer payments and include significant increases in Medicaid and unemployment insurance payments. But the trend is the same even with transfer payments eliminated from the calculation.
Pressures are still forcing home prices down, including the difficulty of obtaining mortgages for prospective buyers who cannot meet the standards set by Fannie Mae and Freddie Mac, the government-controlled agencies that finance the bulk of new home loans.
In addition, there was a lot of overbuilding in many areas, and even though construction has plunged, the inventory of unsold homes has stayed stubbornly high. Rising unemployment may discourage some who could buy from doing so.
But at least by one measure, home prices no longer appear to be high by historic standards. That fact could help to stimulate demand, if not immediately, then at least when the economy appears to stabilise. -- NYT
Commercial Property Outlook For UK Worsens: Survey
Source : The Business Times, March 10, 2009
Funds and analysts reckon recovery not due until 2011
(LONDON) The outlook for UK commercial real estate has worsened as fund managers and analysts predict a steeper drop in capital values this year, with a recovery not due until 2011, consensus data showed on Friday last week.
In its quarterly survey, Investment Property Forum said that property experts have cut their expectations for the UK market in the last three months, now projecting capital values to fall, on average, 17.9 per cent in 2009 and 3.8 per cent in 2010.
The experts predict capital values to return to growth in 2011, rising on average 4.1 per cent over all commercial property sectors - office, industrial, and retail, IPF said.
The previous estimates, compiled last November, were for an 11.5 per cent fall in 2009 and a decline of 0.8 per cent in 2010.
'The downward revisions in the 2009 and 2010 forecasts are unsurprising given the worsening economic outlook as GDP continues to fall and unemployment rise,' said IPF, which surveyed 30 fund managers, advisers, and equity analysts.
'Limited occupier demand appears expected to meet rising supply and there is little sign of any expectation that investor demand is going to stabilise falling capital value growth in the short term,' it said in the report.
Benchmark data from Investment Property Databank showed commercial property values in the UK have on average sunk by 37.4 per cent since the market peaked in June 2007. -- Reuters
Funds and analysts reckon recovery not due until 2011
(LONDON) The outlook for UK commercial real estate has worsened as fund managers and analysts predict a steeper drop in capital values this year, with a recovery not due until 2011, consensus data showed on Friday last week.
In its quarterly survey, Investment Property Forum said that property experts have cut their expectations for the UK market in the last three months, now projecting capital values to fall, on average, 17.9 per cent in 2009 and 3.8 per cent in 2010.
The experts predict capital values to return to growth in 2011, rising on average 4.1 per cent over all commercial property sectors - office, industrial, and retail, IPF said.
The previous estimates, compiled last November, were for an 11.5 per cent fall in 2009 and a decline of 0.8 per cent in 2010.
'The downward revisions in the 2009 and 2010 forecasts are unsurprising given the worsening economic outlook as GDP continues to fall and unemployment rise,' said IPF, which surveyed 30 fund managers, advisers, and equity analysts.
'Limited occupier demand appears expected to meet rising supply and there is little sign of any expectation that investor demand is going to stabilise falling capital value growth in the short term,' it said in the report.
Benchmark data from Investment Property Databank showed commercial property values in the UK have on average sunk by 37.4 per cent since the market peaked in June 2007. -- Reuters
Creative Buzz At Mediapolis
Source : The Business Times, March 10, 2009
INDUSTRIAL SPACE
It will have centres for interactive digital media, computer-generated imagery, games, animation and more
IMAGINE flashing billboards, colourful media screens, film shootings on the streets and red carpet activities galore. This is not downtown Manhattan nor Tokyo. Come 2020, Singapore's very own Mediapolis may be home to a vibrant suite of film, television and animation clusters.
The 19-hectare Mediapolis is set to become a self-contained media ecosystem comprising soundstages (left) with green screen capabilities, digital production and broadcast facilities and media schools (next).
Of course, Mediapolis will not replicate the street scenes of these cities entirely. Internationally renowned architect Bernard Tschumi was clear that he wanted to preserve Singapore's tropical uniqueness even as he brought in elements from these cities.
And distinct the Mediapolis will be. Mr Tschumi's works are commonly associated with a post-modern form of architecture called deconstructivism, where buildings take on non-rectilinear shapes or non-uniform surfaces to stimulate a sense of controlled chaos.
He has also introduced this concept to the Mediapolis masterplan - sides of buildings facing the central street will have glass facades and billboards, while the other sides will have to be constructed with other types of material such as steel or wood to create a contrast.
For a project that involved so much creative effort, what exactly is the Mediapolis?
What the Mediapolis is
Located in one-north, the 19-hectare Mediapolis was launched in December last year. It is set to become a self-contained media ecosystem comprising soundstages with green screen capabilities, digital production and broadcast facilities and media schools.
There will also be centres for activities in interactive digital media and research and development; computer-generated imagery and visual effects; games and animation; and intellectual property creation and digital rights management.
Mediapolis was created in response to Singapore's expanding media sector. In 2005, it reported an annual turnover of $18.2 billion, contributing $4.9 billion value added to the country's GDP. It also employed close to 55,000 people.
Media funding has also grown with about $1 billion anchored here. Award-winning films, games and animation and major international co-productions such as the filming and production of Mark Burnett's Contender Asia and The Contender 4 also took place in Singapore.
Global media giants such as Lucasfilm, Linden Lab, EA, Ubisoft and Rainbow SpA have also set foot here. And more media activities such as the upcoming shoot of Jan de Bont's Point Break 2 will take place this year.
The government therefore came up with Mediapolis to position Singapore as a media hub. Four agencies - JTC Corporation, the Media Development Authority (MDA), the Infocomm Development Authority (IDA) and the Economic Development Board (EDB) - were involved.
'JTC is pleased to be part of this multi-government agency effort that propels Singapore ahead as a trusted global media capital,' said Philip Su, JTC's assistant chief executive. 'We are glad to contribute to building the critical pieces, which will complement each other in the growth of a vibrant media ecosystem.'
JTC is also the master developer of one-north. The Mediapolis will be the third strategic industry cluster in one-north, after Biopolis (biomedical sciences) and Fusionopolis (infocomm, media, engineering and physical sciences).
'Mediapolis will also be able to leverage on the creative community in the neighbouring Wessex Estate, and tap on the synergies and world-class expertise within one-north,' said Mr Su.
MDA chief executive Christopher Chia also expressed great hopes for the Mediapolis. It is 'an essential piece of a comprehensive media ecosystem that we are building', he said. 'Over the years, Singapore's media industry has made great strides, particularly in media financing and international co-productions. To elevate ourselves to the next level, we are finding ways to add scale and synergy to what we already have.'
The government also consulted an International Advisory Committee in the conceptualisation of Mediapolis. The panel comprised media industry insiders such as Dune Entertainment chairman and chief executive Greg Coote, Warner Brothers Pictures president of physical productions Steve Papazian, and film maker and director Shekhar Kapur.
Mediapolis will be developed in two phases. For phase one, JTC has reserved a 1.2-hectare plot of land for works to begin in the first quarter of this year. Local media production company Infinite Frameworks (IFW) will invest in and develop a soundstage complex here.
Controlled chaos: Street-facing sides of buildings will have glass facades and multi-media awnings, while the other sides will be built with other materials for contrast
Cutting edge
IFW is a producer of cutting-edge computer graphics and visual effects for television and feature films. The complex is expected to cost $80 million to $120 million and could house three soundstages when completed in two years.
'The soundstage at Mediapolis presents a unique opening for Infinite to further augment our distinctive range of specialist services for the film and television industries,' said IFW managing director Mike Wiluan.
The second part of phase one's development would start after Ayer Rajah Camp relocates in 2011 and could be completed in 2020 at the latest. No date has been set for works on phase two to begin.
The entire Mediapolis could take as long as 20 to 30 years to complete. According to Chan Yeng Kit, permanent secretary at the Ministry of Information, Communications and the Arts, the speed of development will depend on demand from the media industry.
INDUSTRIAL SPACE
It will have centres for interactive digital media, computer-generated imagery, games, animation and more
IMAGINE flashing billboards, colourful media screens, film shootings on the streets and red carpet activities galore. This is not downtown Manhattan nor Tokyo. Come 2020, Singapore's very own Mediapolis may be home to a vibrant suite of film, television and animation clusters.
The 19-hectare Mediapolis is set to become a self-contained media ecosystem comprising soundstages (left) with green screen capabilities, digital production and broadcast facilities and media schools (next). Of course, Mediapolis will not replicate the street scenes of these cities entirely. Internationally renowned architect Bernard Tschumi was clear that he wanted to preserve Singapore's tropical uniqueness even as he brought in elements from these cities.
And distinct the Mediapolis will be. Mr Tschumi's works are commonly associated with a post-modern form of architecture called deconstructivism, where buildings take on non-rectilinear shapes or non-uniform surfaces to stimulate a sense of controlled chaos.
He has also introduced this concept to the Mediapolis masterplan - sides of buildings facing the central street will have glass facades and billboards, while the other sides will have to be constructed with other types of material such as steel or wood to create a contrast.
For a project that involved so much creative effort, what exactly is the Mediapolis?
What the Mediapolis is
Located in one-north, the 19-hectare Mediapolis was launched in December last year. It is set to become a self-contained media ecosystem comprising soundstages with green screen capabilities, digital production and broadcast facilities and media schools.
There will also be centres for activities in interactive digital media and research and development; computer-generated imagery and visual effects; games and animation; and intellectual property creation and digital rights management.
Mediapolis was created in response to Singapore's expanding media sector. In 2005, it reported an annual turnover of $18.2 billion, contributing $4.9 billion value added to the country's GDP. It also employed close to 55,000 people.
Media funding has also grown with about $1 billion anchored here. Award-winning films, games and animation and major international co-productions such as the filming and production of Mark Burnett's Contender Asia and The Contender 4 also took place in Singapore.
Global media giants such as Lucasfilm, Linden Lab, EA, Ubisoft and Rainbow SpA have also set foot here. And more media activities such as the upcoming shoot of Jan de Bont's Point Break 2 will take place this year.
The government therefore came up with Mediapolis to position Singapore as a media hub. Four agencies - JTC Corporation, the Media Development Authority (MDA), the Infocomm Development Authority (IDA) and the Economic Development Board (EDB) - were involved.
'JTC is pleased to be part of this multi-government agency effort that propels Singapore ahead as a trusted global media capital,' said Philip Su, JTC's assistant chief executive. 'We are glad to contribute to building the critical pieces, which will complement each other in the growth of a vibrant media ecosystem.'JTC is also the master developer of one-north. The Mediapolis will be the third strategic industry cluster in one-north, after Biopolis (biomedical sciences) and Fusionopolis (infocomm, media, engineering and physical sciences).
'Mediapolis will also be able to leverage on the creative community in the neighbouring Wessex Estate, and tap on the synergies and world-class expertise within one-north,' said Mr Su.
MDA chief executive Christopher Chia also expressed great hopes for the Mediapolis. It is 'an essential piece of a comprehensive media ecosystem that we are building', he said. 'Over the years, Singapore's media industry has made great strides, particularly in media financing and international co-productions. To elevate ourselves to the next level, we are finding ways to add scale and synergy to what we already have.'
The government also consulted an International Advisory Committee in the conceptualisation of Mediapolis. The panel comprised media industry insiders such as Dune Entertainment chairman and chief executive Greg Coote, Warner Brothers Pictures president of physical productions Steve Papazian, and film maker and director Shekhar Kapur.
Mediapolis will be developed in two phases. For phase one, JTC has reserved a 1.2-hectare plot of land for works to begin in the first quarter of this year. Local media production company Infinite Frameworks (IFW) will invest in and develop a soundstage complex here.
Controlled chaos: Street-facing sides of buildings will have glass facades and multi-media awnings, while the other sides will be built with other materials for contrastCutting edge
IFW is a producer of cutting-edge computer graphics and visual effects for television and feature films. The complex is expected to cost $80 million to $120 million and could house three soundstages when completed in two years.
'The soundstage at Mediapolis presents a unique opening for Infinite to further augment our distinctive range of specialist services for the film and television industries,' said IFW managing director Mike Wiluan.
The second part of phase one's development would start after Ayer Rajah Camp relocates in 2011 and could be completed in 2020 at the latest. No date has been set for works on phase two to begin.
The entire Mediapolis could take as long as 20 to 30 years to complete. According to Chan Yeng Kit, permanent secretary at the Ministry of Information, Communications and the Arts, the speed of development will depend on demand from the media industry.
Paragon Facade Gets $45m Facelift
Source : The Business Times, March 5, 2009
SHOPPING mall Paragon is sporting a new look after a $45 million project to revamp its facade.
It now boasts an eye-catching three-dimensional look that makes use of multiple pop-out glass panels combined with multi-faceted aluminium panels.
The design, by DP Architects, means higher and bolder shopfronts for designer outlets such as Salvatore Ferragamo, Prada, Tod's, Miu Miu and Gucci.
'The design was partly prompted by luxury retailers looking for space to expand and an opportunity to do something different,' says Paragon general manager Linda Kwan. 'The new facade provides these tenants with significant visibility and brand expression.'
The revamp is also in line with the Urban Redevelopment Authority's push to add more colour to Orchard Road by encouraging building owners to develop unique facades.
Besides the new facade, consumers can expect additions to Paragon's array of international luxury goods. For instance, Jimmy Choo and Coach are set to open flagship stores in May and November this year respectively.
'With the facelift, Paragon has secured stronger positioning as an upscale shopping mall with its diverse mix of international brands appealing to the discerning fashionista,' says Mrs Kwan.
Besides these changes, Paragon has expanded the commercial space above its retail podium by 29,000 square feet to accommodate medical and fitness facilities.
The mall has also participated in the Customer Centric Initiative programme - a project led by Spring Singapore - to ensure that its standard of service lives up to its classy exterior.
SHOPPING mall Paragon is sporting a new look after a $45 million project to revamp its facade.
It now boasts an eye-catching three-dimensional look that makes use of multiple pop-out glass panels combined with multi-faceted aluminium panels.
The design, by DP Architects, means higher and bolder shopfronts for designer outlets such as Salvatore Ferragamo, Prada, Tod's, Miu Miu and Gucci.
'The design was partly prompted by luxury retailers looking for space to expand and an opportunity to do something different,' says Paragon general manager Linda Kwan. 'The new facade provides these tenants with significant visibility and brand expression.'
The revamp is also in line with the Urban Redevelopment Authority's push to add more colour to Orchard Road by encouraging building owners to develop unique facades.
Besides the new facade, consumers can expect additions to Paragon's array of international luxury goods. For instance, Jimmy Choo and Coach are set to open flagship stores in May and November this year respectively.
'With the facelift, Paragon has secured stronger positioning as an upscale shopping mall with its diverse mix of international brands appealing to the discerning fashionista,' says Mrs Kwan.
Besides these changes, Paragon has expanded the commercial space above its retail podium by 29,000 square feet to accommodate medical and fitness facilities.
The mall has also participated in the Customer Centric Initiative programme - a project led by Spring Singapore - to ensure that its standard of service lives up to its classy exterior.
$35m For Mohd Sultan Building
Source : The Straits Times, March 11, 2009
A $35.8MILLION purchase of a Mohamed Sultan Road building has been completed, six months after the contract was first signed.
The acquisition of Le Mercier House at 65 Mohamed Sultan Road by Ka$h International is rare today given the depressed state of the property market, according to Isabel Redrup Agency managing director Susan Ye.
Ka$h already owns the site next door, which houses the Hansgrohe showroom.
Although the deal was clinched with seller Le Mercier's Fine Furnishings during better economic times, Ka$h went through to completion and at the agreed price - even though the economic outlook has worsened, added Mrs Ye.
Le Mercier has occupied the four-storey building for the past decade and is still running its high-end furniture store there.
It will rent the space from Ka$h - whose major shareholder is Mr Cheong Keng Hooi - but is looking for more upmarket premises.
Mrs Ye said the property is zoned for warehouse/residential use and can be converted into a 15-storey block of apartments.
The land size is 14,200 sq ft and the current built-up space is around 52,000 sq ft. However, the site is over-built.
However, the location is desirable for those who like to live close to Orchard Road but outside the ERP zone, she said.
Many investors steered clear of the market for much of last year, but are now starting to return, said Mrs Ye, who added that they were a mixture of both individuals and companies.
Read the full report in Thursday's edition of The Straits Times.
A $35.8MILLION purchase of a Mohamed Sultan Road building has been completed, six months after the contract was first signed.
The acquisition of Le Mercier House at 65 Mohamed Sultan Road by Ka$h International is rare today given the depressed state of the property market, according to Isabel Redrup Agency managing director Susan Ye.
Ka$h already owns the site next door, which houses the Hansgrohe showroom.
Although the deal was clinched with seller Le Mercier's Fine Furnishings during better economic times, Ka$h went through to completion and at the agreed price - even though the economic outlook has worsened, added Mrs Ye.
Le Mercier has occupied the four-storey building for the past decade and is still running its high-end furniture store there.
It will rent the space from Ka$h - whose major shareholder is Mr Cheong Keng Hooi - but is looking for more upmarket premises.
Mrs Ye said the property is zoned for warehouse/residential use and can be converted into a 15-storey block of apartments.
The land size is 14,200 sq ft and the current built-up space is around 52,000 sq ft. However, the site is over-built.
However, the location is desirable for those who like to live close to Orchard Road but outside the ERP zone, she said.
Many investors steered clear of the market for much of last year, but are now starting to return, said Mrs Ye, who added that they were a mixture of both individuals and companies.
Read the full report in Thursday's edition of The Straits Times.
组屋楼顶开始试装太阳能板
Source : 《联合早报》March 11, 2009
为减少组屋区耗电量，建屋发展局向来在建筑设计上下足功夫，现在更与国家环境局和能源市场管理局展开新的节省能源计划（Energy SAVE Programme），在一些组屋顶端安装太阳能板和感应器，希望五年内进一步将组屋区公共场所的耗电量减少30%。
建屋局受询时说，超过80%的新加坡人居住组屋区，估计每年消耗12亿元能源，因此在组屋区推行节能计划有助于节省开支。
实龙岗北是本地率先装置太阳能板的两个组屋邻里之一。（建屋局照片）
据估计，节能计划全面推行后，各市镇理事会每年可节省3600万元，或相等于运作开支的8%。
建屋局已在实龙岗北和三巴旺威灵顿圈两个邻里的14座组屋和两座多层停车场安装超过1000个太阳能板，可发动440千瓦小时（kWh）电力，满足两座组屋公共场所的电力需求。
实龙岗北花60万 装置太阳能板
不过，由于太阳能科技在本地还未全面开发，太阳能板装置费相当昂贵，单在实龙岗北装置太阳能板就需要60万元。
话虽如此，建屋局表示，它的预制科技中心里的建筑监督处不时收集相关电力数据，以评估太阳能板的能源效率。
当太阳能科技普及后，这项计划应可在几年内回本。因此，建屋局日后或可更广泛地在组屋区装置太阳能板，达到节省能源的长远目标。
在实龙岗北和威灵顿圈两个邻里装置太阳能板的工作，是洁净能源研究与实验计划的研究项目之一，装置费由推动这项实验计划的洁净能源计划办事处资助。政府展开这项计划，目的是要推动本地洁净能源工业发展，使新加坡成为洁净能源科技的研发与实验场所。
预定后年建成的榜鹅“绿馨苑”（Treelodge @Punggol）绿色组屋，屋顶30%空间也将装置太阳能板，为走廊、楼梯和停车场等公共设施提供80%灯光。
除了太阳能板，建屋局也在实龙岗北和威灵顿圈更换超过2300个灯泡，由于电灯占组屋总耗电量40%，因此只要减少电灯耗电量，就能大大节省整座组屋用电量。它也装置了近800个感应器，只有在居民走动时才提供照明。
宏茂桥—杨厝港市镇理事会受询时说，自实龙岗北邻里实行节能措施后，组屋和停车场耗电量分别减少35%和45%，令人鼓舞。市镇会因此考虑在组屋区其他公共场所如游乐场等也实行省电措施。
将展开为期三年 更换灯泡计划
它也将展开为期三年的更换灯泡计划，改用具高能源效率的T5荧光灯和汞灯，进一步节省能源。
建屋局将在未来五年同其他市镇会合作，逐步推广节省能源计划，它还在考虑下个推展计划的地点。
另一方面，配合环境局去年4月发出的“10%能源挑战”，新的节能计划也鼓励居民在住家通过各种节能措施或调整生活方式，减少用电。
新计划也是能源效率计划委员会节能措施的一部分。委员会前年由环境局领导的五个政府机构—能源市场管理局、经济发展局、陆路交通管理局、建设局及新加坡科技研究局携手成立，分别代表发电、工业、交通运输、建筑物和住家五大能源消耗领域，致力提高本地各领域的能源使用效率。
早报中英对照
预制科技中心：Prefabrication Technology Centre
汞灯：amalgam lamps
具绝缘作用墙壁：gable end insulated wall
对流通风：cross ventilation
沥青：asphalt
变压变频：Variable Voltage and Variable Frequency
扭矩：torque
组屋设计越来越节能
建屋局把组屋窗口开在南北向，避免东升西落的阳光直接照射户内、而是照在组屋外面，减低室温。
窗口南北开的建筑设计，除有阻隔室外太阳能辐射和热量的作用，也让住户保持开窗，让自然光照入屋内，确保室内光线充裕。
住户也无需因为室温高而终日开着冷气机，节省能源。
组屋的另一个设计重点是对流通风。建屋局在电梯口和走廊设置通风口，让空气对流流通，降低气温。通风口也让自然光渗入组屋，减少依赖人工照明，达到环保要求。
近年来，建屋局也以多层停车场取代露天停车场，不仅能为驾车者提供更多车位，充分利用有限空间，也腾出更多空间建造充满绿意的公园，打造更清凉的居住环境。
一些组屋区如女皇镇杜生（Dawson）的停车场则建在组屋楼下，节省用地，并引进自然光。
露天停车场一般采用沥青和混凝土等材料铺设，这些材料在阳光照射下吸收大量热能，导致气温飙升。
建屋局也将绿色概念融入组屋设计，空中花园既能为水泥建筑增添绿意，美化环境，也能制造防热降温，从而节省冷气能源。
随着科技日新月异，建屋局也在建筑工程中研究、发展和引进适合的高能源效率科技，应付不断飙升的能源价格。
新组屋电梯 省电而且更平稳
比如，新组屋的电梯采用变压变频操作系统，以控制电梯电动机的速度、方向和扭矩，不仅可有效节省高达40%的电源，也让居民更平稳地上下楼。
为减少组屋区耗电量，建屋发展局向来在建筑设计上下足功夫，现在更与国家环境局和能源市场管理局展开新的节省能源计划（Energy SAVE Programme），在一些组屋顶端安装太阳能板和感应器，希望五年内进一步将组屋区公共场所的耗电量减少30%。
建屋局受询时说，超过80%的新加坡人居住组屋区，估计每年消耗12亿元能源，因此在组屋区推行节能计划有助于节省开支。
实龙岗北是本地率先装置太阳能板的两个组屋邻里之一。（建屋局照片）据估计，节能计划全面推行后，各市镇理事会每年可节省3600万元，或相等于运作开支的8%。
建屋局已在实龙岗北和三巴旺威灵顿圈两个邻里的14座组屋和两座多层停车场安装超过1000个太阳能板，可发动440千瓦小时（kWh）电力，满足两座组屋公共场所的电力需求。
实龙岗北花60万 装置太阳能板
不过，由于太阳能科技在本地还未全面开发，太阳能板装置费相当昂贵，单在实龙岗北装置太阳能板就需要60万元。
话虽如此，建屋局表示，它的预制科技中心里的建筑监督处不时收集相关电力数据，以评估太阳能板的能源效率。
当太阳能科技普及后，这项计划应可在几年内回本。因此，建屋局日后或可更广泛地在组屋区装置太阳能板，达到节省能源的长远目标。
在实龙岗北和威灵顿圈两个邻里装置太阳能板的工作，是洁净能源研究与实验计划的研究项目之一，装置费由推动这项实验计划的洁净能源计划办事处资助。政府展开这项计划，目的是要推动本地洁净能源工业发展，使新加坡成为洁净能源科技的研发与实验场所。
预定后年建成的榜鹅“绿馨苑”（Treelodge @Punggol）绿色组屋，屋顶30%空间也将装置太阳能板，为走廊、楼梯和停车场等公共设施提供80%灯光。
除了太阳能板，建屋局也在实龙岗北和威灵顿圈更换超过2300个灯泡，由于电灯占组屋总耗电量40%，因此只要减少电灯耗电量，就能大大节省整座组屋用电量。它也装置了近800个感应器，只有在居民走动时才提供照明。
宏茂桥—杨厝港市镇理事会受询时说，自实龙岗北邻里实行节能措施后，组屋和停车场耗电量分别减少35%和45%，令人鼓舞。市镇会因此考虑在组屋区其他公共场所如游乐场等也实行省电措施。
将展开为期三年 更换灯泡计划
它也将展开为期三年的更换灯泡计划，改用具高能源效率的T5荧光灯和汞灯，进一步节省能源。
建屋局将在未来五年同其他市镇会合作，逐步推广节省能源计划，它还在考虑下个推展计划的地点。
另一方面，配合环境局去年4月发出的“10%能源挑战”，新的节能计划也鼓励居民在住家通过各种节能措施或调整生活方式，减少用电。
新计划也是能源效率计划委员会节能措施的一部分。委员会前年由环境局领导的五个政府机构—能源市场管理局、经济发展局、陆路交通管理局、建设局及新加坡科技研究局携手成立，分别代表发电、工业、交通运输、建筑物和住家五大能源消耗领域，致力提高本地各领域的能源使用效率。
早报中英对照
预制科技中心：Prefabrication Technology Centre
汞灯：amalgam lamps
具绝缘作用墙壁：gable end insulated wall
对流通风：cross ventilation
沥青：asphalt
变压变频：Variable Voltage and Variable Frequency
扭矩：torque
组屋设计越来越节能
建屋局把组屋窗口开在南北向，避免东升西落的阳光直接照射户内、而是照在组屋外面，减低室温。
窗口南北开的建筑设计，除有阻隔室外太阳能辐射和热量的作用，也让住户保持开窗，让自然光照入屋内，确保室内光线充裕。
住户也无需因为室温高而终日开着冷气机，节省能源。
组屋的另一个设计重点是对流通风。建屋局在电梯口和走廊设置通风口，让空气对流流通，降低气温。通风口也让自然光渗入组屋，减少依赖人工照明，达到环保要求。
近年来，建屋局也以多层停车场取代露天停车场，不仅能为驾车者提供更多车位，充分利用有限空间，也腾出更多空间建造充满绿意的公园，打造更清凉的居住环境。
一些组屋区如女皇镇杜生（Dawson）的停车场则建在组屋楼下，节省用地，并引进自然光。
露天停车场一般采用沥青和混凝土等材料铺设，这些材料在阳光照射下吸收大量热能，导致气温飙升。
建屋局也将绿色概念融入组屋设计，空中花园既能为水泥建筑增添绿意，美化环境，也能制造防热降温，从而节省冷气能源。
随着科技日新月异，建屋局也在建筑工程中研究、发展和引进适合的高能源效率科技，应付不断飙升的能源价格。
新组屋电梯 省电而且更平稳
比如，新组屋的电梯采用变压变频操作系统，以控制电梯电动机的速度、方向和扭矩，不仅可有效节省高达40%的电源，也让居民更平稳地上下楼。
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