Developer Set To Bid $62m For Bt Panjang Condo Site

Source : The Straits Times, July 21, 2009

If sold, it will be first state-owned residential site sale in 10 months

EVER since the collapse of Lehman Brothers in the United States and Singapore's slide into recession, the Government has been unable to attract bids for residential development sites.

But yesterday - after 10 straight months without selling a single residential site - the Government said it had finally received an offer for a condominium parcel in Bukit Panjang.

An unnamed property developer has committed to bid at least $62 million for the 244,347 sq ft plot, in what consultants say is a further sign of the property market's rebound.

The 99-year leasehold site located along Chestnut Avenue has been sitting on the Government's reserve list since March last year. Sites on the reserve list are made available for sale, but are not launched for tender until a developer puts in a minimum bid.

Now that the Chestnut Avenue plot has been triggered for sale, it will be put up for tender by the Housing Board by the end of this week, HDB said yesterday.

The bid submitted works out to about $120 per sq ft (psf) of potential gross floor area, as compared with the $220 to $270 psf expected when the site was first made available in March last year.

Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, thinks the final winning bid will be $150 to $160 psf of potential gross floor area, or $76 million to $82 million in total.

The Chestnut Avenue site can accommodate a development of about 450 units.

If sold, it will be the first state-owned residential development sale since Sept 10 last year - just before Lehman's demise - when a condo site at the junction of New Upper Changi Road and Tanah Merah Kechil Avenue went for $84 million.

A few days later, on Sept 16, the HDB launched an executive condominium site at Punggol Field, but found no takers.

Now that buyers are returning in large numbers to showflats, developers' confidence appears to be on the rise, according to consultants.

Home buyers have been snapping up more than 1,000 new homes each month since February, culminating in a record 1,825 new homes sold last month - even more than the number sold in August 2007, the peak of the boom two years ago.

Last week, owners of the freehold Dragon Mansion in Spottiswoode Park Road launched the year's first collective sale, with a bullish price tag of $120 million.

Yesterday's offer for Chestnut Avenue shows that there is renewed interest in the market, according to Jones Lang LaSalle's head of Singapore research Chua Yang Liang, who is still only cautiously optimistic.

'The market is stirring and some developers may be excited, but by and large I don't think there's an overall bullishness in the market,' he said.

And he predicts just a handful of bids for the Chestnut Avenue land.

'I'm not sure if the rest of the developers will bite, considering there is still uncertainty in the larger economy.'

The site is located near other property developments such as Maysprings, Cashew Heights Condominium and Hazel Park Condominium. In recent months, units at the 99-year leasehold Maysprings have been sold at just below $500 psf, while those at the other two condos - both freehold - have gone for $560 to $600 psf, said CB Richard Ellis Research's Mr Li.

He expects the developer who buys the Chestnut Avenue site to plan to sell finished units at more than $600 psf. Such entry-level private homes would be targeted at HDB upgraders - a promising segment of buyers unaffected by fears of a possible oversupply of mid-tier and high-end homes.

Analysts are anticipating more developers to resume buying land in the second half of this year, given that the Urban Redevelopment Authority has received inquiries about some of the other sites on its reserve list.

Also, as market sentiment improves, developers have started to pick up land meant for hotel and industrial development.

Earlier this month, $43.9 million was offered for a hotel site in New Bridge Road, prompting a public tender for the plot. And last month, 14 valid bids were received for a hotel site in Short Street.

Keppel To Develop Eco-Homes In Tianjin Park

Source : The Business Times, July 21, 2009

KEPPEL Corp and Keppel Land will invest a combined 705 million yuan (S$148 million) to develop a site in the Tianjin Eco-City park in China.

Tianjin Eco-City: The 36.8-hectare site in the business park is expected to eventually yield about 5,000 homes, and office and retail space with a total gross floor area of 680,000 sq metres

The 36.8-hectare site in the business park is expected to eventually yield about 5,000 homes, and office and retail space with a total gross floor area of 680,000 sq metres.

Construction will start in the first quarter of next year and proceed in phases. The first phase will yield 1,760 homes with a total gross floor area of 170,000 sq m, and commercial developments with a gross floor area of 40,000 sq m.

The sales launch of first-phase homes is expected in Q2 next year, Keppel said.

The development is located along a 'green spine linking major transit nodes, residential developments and commercial centres' and is close to the Eco-Business Park and commercial sub-centre, which is next to a planned light rail station.

Keppel Corp will take a 45 per cent stake in the development and Keppel Land will own the remaining 55 per cent. Keppel Land has been appointed project manager.

Kevin Wong, group chief executive of Keppel Land, said the project will 'contribute to the development of a thriving city in an ecologically sustainable urban environment'.

'Keppel Land has a successful track record in master-planning and executing large-scale integrated township developments,' he said. 'Our knowledge of and experience in the China market stands us in good stead to harness synergies and create value for Tianjin Eco-City.'

Ecologically friendly features to be built into the development include thermal insulation for buildings, the use of solar energy to reduce power consumption, and rainwater collection for recycling.

Keppel has engaged architects Skidmore, Owings and Merrill and US-based consulting firm Rocky Mountain Institute, which provides advice on sustainable developments. Keppel has also hired Parsons Brinckerhoff, an engineering consultancy firm with experience of eco-projects and developments in China.

The Tianjin Eco-City, conceived as a working model of sustainable development, is being developed by Sino-Singapore Tianjin Eco-City Investment and Development Co, an equal joint venture between a Singapore consortium led by Keppel Group and a Chinese consortium.

Keppel said the proposed investment is not expected to have any material impact on the earnings or net assets per share of Keppel Corp or Keppel Land this financial year.

US Recession Easing But Not Over: Survey

Source : The Business Times, July 21, 2009

Nearly 50% say sales have bottomed and hiring outlook is starting to improve

(WASHINGTON) The US recession's grip on the economy appears to be easing but likely has not yet ended, according to a survey of economists released yesterday.

The National Association for Business Economics' quarterly industry survey found that demand is stabilising, but a small majority of the 102 respondents said their firms had not yet seen the bottom.

The survey 'provides new evidence that the US recession is abating, but few signs of an immediate recovery', said Sara Johnson, managing director of global macroeconomics for IHS Global Insight, who helped analyse the report for the NABE.

'Industry demand was still declining in the second quarter of 2009, but the breadth of decline had narrowed considerably since late 2008, raising prospects for stabilisation in the second half' of the year, she said.

The net demand index dropped to -5 from the first quarter's -14. In the fourth quarter of last year it registered -28.

Of the four major sectors, financial services showed the strongest demand, with an index reading of +15. The transportation, utilities, information and communications sector had the lowest reading at -90.

The US recession, which dates to December 2007, is the longest since the Great Depression and the deepest in decades.

Most economists look for growth to return in the second half of the year, but they caution that the recovery is likely to be sluggish.

The survey found that profitability remained weak in the second quarter.

Almost half of US companies surveyed by NABE projected sales have already bottomed and their outlook on hiring is starting to improve.

Companies reporting declining profits outnumbered companies posting higher profits for the sixth straight quarter. However, the rate at which profits are shrinking is slowing.

There was wide dissension about whether or not the economy has hit bottom. Fifty-five per cent believe the low point has not yet been hit, with 14 per cent projecting their companies will see their lowest sales in 2010 or beyond. Forty-five per cent, however, said the worst was already over.

Thirty-six per cent of respondents said their companies cut jobs last quarter, while only 6 per cent of the firms added jobs - an all-time low for the 30-year-old survey.

Respondents expect job losses to slow and look for employment to finally turn higher later this year.

With unemployment at a 26-year high of 9.5 per cent in June, companies felt no pressure to boost paychecks, signalling consumer spending may be restrained. The survey's wage index dropped to minus 8, the lowest level since records began in 1982.

Employers across the US are trimming positions and delaying hiring even as reports show housing and manufacturing are stabilising. The economy has lost about 6.5 million jobs since the recession began in December 2007. President Barack Obama and economists surveyed by Bloomberg News say national unemployment will reach 10 per cent this year.

'No region of the US is immune,' said Rebecca Braeu, an economist at John Hancock Financial Services in Boston. 'The rising unemployment rate is clearly going to hurt consumption. It'll limit the recovery.'

Payrolls in the world's largest economy fell by 467,000 last month, more than forecast, while the jobless rate jumped to 9.5 per cent, the highest level in 26 years. The rate will reach 10 per cent by the year-end and average 9.8 per cent for 2010, according to the Bloomberg survey. -- Reuters, Bloomberg

Indicators Signal Economy Nearing End Of Recession

Source : The Business Times, July 21, 2009

LATEST US DATA

(NEW YORK) The index of US leading indicators rose in June for a third consecutive month, reinforcing signs the economy may be emerging from the worst recession in five decades.

The Conference Board's gauge of the economic outlook for the next three to six months increased 0.7 per cent, more than forecast, after a revised 1.3 per cent gain in May, the New York-based research group said yesterday. It is the first time the index has climbed for three months in a row since 2004.

Smaller job losses, rising stock prices and stabilisation in homebuilding and manufacturing are evidence that government efforts to stem the financial crisis and lower borrowing costs may pay off. A jobless rate that is forecast to reach 10 per cent and falling home values are a reminder that any expansion will be muted as consumers rein in spending and boost savings.

'The outlook over the next few quarters is improving,' Jeffrey Roach, chief economist at Horizon Investments in Charlotte, North Carolina, said before the report. 'We see the recession likely ending by the end of year but that is not without some months of turbulence.'

The Conference Board's index was forecast to rise 0.5 per cent, according to the median of 59 economists in a Bloomberg News survey.

Survey estimates ranged from a decline of 0.3 per cent to a gain of one per cent. Seven of the 10 indicators in yesterday's report added to the index while three indicators subtracted from it.

A growing divergence between long and short-term interest rates, rising stock prices, a longer factory workweek, increases in building permits and falling jobless claims contributed to the gain. Falling money supply, orders for capital goods and consumer expectations pulled down the index.

The biggest boost was provided by a widening spread between the 10-year Treasury note, where yields rose based on mounting speculation of an economic recovery, and the overnight fed funds rate.

Federal Reserve chairman Ben Bernanke is slated to deliver his semiannual economic report to Congress today. He's expected to outline his strategy for exiting the biggest monetary expansion in history in order to contain inflation.

Keeping a lid on prices would give the central bank leeway to maintain the overnight rate near zero for an extended period of time, economists said. -- Bloomberg

Frasers Centrepoint Outsells Them All

Source : The Business Times, July 21, 2009

With 1,423 private homes sold in H1, it is far ahead of all other developers

Frasers Centrepoint sold a total of 1,423 private homes in the first six months of this year - many more than any other developer, according to DTZ's analysis of the latest official data of developers' housing sales released by the Urban Redevelopment Authority (URA) last week.




















Frasers Centrepoint thus had a 19.3 per cent share of the total 7,374 homes developers sold in H1 2009.

Property bigwig Ng Teng Fong's Far East Organization was in second position, with 556 units sold for a 7.5 per cent share, followed by Hong Leong Group (including City Developments) with 524 units, translating to a 7.1 per cent share.

UOL Group and Kheng Leong (a private vehicle of the Wee Cho Yaw family) sold a combined 509 units.

DTZ also used URA's data on developer sales to compile a list of the top 10 selling projects in the primary market in first-half 2009. Frasers Centrepoint's Caspian near Jurong Lake ranked tops, with 681 units sold. The preview of this 99-year-leasehold project in February was the first major property launch here after Lehman Brothers' collapse last year, and its carefully researched average price of $580 per square foot (psf) helped to draw out pent-up demand, sparking a revival in home sales. Since February, developers have sold more than 1,000 private homes each month, culminating in a whopping 1,825 units transacted in June.

The second most popular project in H1 2009 was UOL Group's Double Bay Residences in Simei (425 units), followed by Frasers Centrepoint's 8@Woodleigh (330 units).

City Developments achieved sales of 327 units at The Arte in the Balestier area, while Yi Kai Development and Fission Group found buyers for all 293 units at their Alexis project at Alexandra Road. The Mi Casa condo in Choa Chu Kang (264 units), Martin Place Residences (246 units) and Kovan Residences (205 units) were also among the most popular projects in the January- to-June 2009 period. The Quartz in Buangkok and Waterfront Waves (a condo near Bedok Reservoir being jointly developed by Far East and Frasers Centrepoint) completed the list of most popular private residential projects in H1.

DTZ's head of Southeast Asia research Chua Chor Hoon observed that mass-market and some mid-tier projects hogged the limelight in H1. 'The sales momentum this year started with the upgrader segment, and it was only more recently that it has filtered to the mid-market,' she noted. She reckons H2 2009 could see more sales of mid and upper-mid projects as the ongoing recovery continues to travel up.

Agreeing, Knight Frank executive director Peter Ow reckons that mid-end projects with average prices ranging from $1,200 to $2,000 psf will dominate sales in the current half, followed by mass-market projects catering to HDB upgraders, and lastly, high-end projects.

'The bulk of the mass-market projects have been pushed out by developers and demand is filtering up to the mid segment. Developers are also releasing quite a number of projects in the mid-price range,' he added.

He argues that whereas the recovery in the mass market and mid sectors has been led by locals, any significant boost in demand for upmarket homes has to be steered by foreigners. The earliest this can take place will be in Q4 2009.

The fate of Singapore's high-end residential sector hinges a lot on the performance of Asia-Pacific economies since homebuyers in this segment have traditionally come from the region.

The opening of the two integrated resorts (IRs) will also help support rental demand for residential properties in Singapore as expatriates and foreigners employed in the IRs seek accommodation in the low to mid sectors. 'Of course, as the high-rollers come to town, Singapore's branding will strengthen,' according to Mr Ow.

DTZ's Ms Chua expects developers this year to sell more than the 11,147 units they transacted in 2006 and possibly touch the record of 14,811 units set in 2007.

DMG & Partners Securities' analyst Brandon Lee reckons residential property prices bottomed in Q1 2009. He forecasts overall private residential capital values will recover 8 per cent for the whole of this year, and rise a further 17 per cent next year. The increases will be led by the prime segment.

'We expect the pick-up in domestic buying activity and comfortable price differential between the mid and prime segments to attract more foreign buyers in the next six to nine months,' he suggests.

Govt To Put Up Chestnut Ave Site For Tender

Source : The Business Times, July 21, 2009

Consultants forecast top bid of $136 to $200 psf ppr for the residential site

Strong homes sales in the mass-market segment have led to a 99-year leasehold site at Chestnut Avenue in the state's reserve list being triggered for launch.

This will be the first time in a year that the government will be launching a residential site for tender.

The successful applicant has undertaken to bid at least $62 million at the tender, which works out to $120.83 per square foot of potential gross floor area. Under the reserve list system, the state will launch a site for tender only if there is an application by a developer undertaking to bid at a minimum price acceptable to the government.

Property consultants indicated a wide price range for the successful bid for the site at the tender, which will be launched soon - $136 to $200 psf per plot ratio (psf ppr).

Assuming the site fetches $200 psf ppr, the breakeven cost for a new condo could be about $480 psf and the developer could be looking to sell at an average price of $600-620 psf, says Knight Frank chairman Tan Tiong Cheng.

CB Richard Ellis executive director Li Hiaw Ho, who reckons the successful bid could come in at $150-160 psf ppr, said that the developer would be planning to sell the new project at above $600 psf. 'The site is located at the edge of the Bukit Panjang HDB estate and Chestnut Avenue landed estate.





'Based on the current strong take-up of new projects, coupled with a lack of mass-market projects in this location, it is likely that developers will be interested to bid for this site.'

However, DTZ's head of South-east Asia research Chua Chor Hoon, predicts the site will fetch only $120-136 psf ppr. 'The site is not very accessible by public transport. So I don't think it will attract many bidders,' she added.

Knight Frank's Mr Tan said that a new condo on the project will offer views of the surrounding park and Upper Peirce Reservoir. 'However, it will also be fairly noisy, as it will be located next to the BKE.'

The 244,345 sq ft plot can be developed into a condo with about 450 units, CBRE estimates. The site has a plot ratio (ratio of maximum potential gross floor area to land area) of 2.1.

After the strong wave of launches over the past five months, the pipeline of 99-year leasehold suburban condos catering to upgrader demand has shrunk.

Projects that have yet to be launched include those that will be developed by TID in Tanah Merah, Far East Organization on a plum Ang Mo Kio site, NTUC Choice Homes on its plot near Braddell MRT Station and MCL's project in Yishun. Others include a project on the former Minton Rise site in Hougang and condos in Bedok Reservoir and Pasir Ris.

'Developers catering to the upgrader market are hungry for land, and the best supplier of land in this segment will be the government,' notes Mr Tan.

Separately, City Developments yesterday said that it has sold 55 units at its freehold Volari condo in the Balmoral area at an average price of 'over $2,000 psf'.

About 20 per cent of buyers took up the interest absorption scheme. Foreigners comprise 45 per cent of buyers. Prices have been adjusted upwards by 2 per cent.

Premier Centre Sold To Fragrance Group

Source : The Business Times, July 21, 2009

Analysts say group could be eyeing conversion to hotel

Another office block has been sold. Premier Centre, a seven-storey property at the corner of Beach Road and Tan Quee Lan Street, changed hands earlier this month for $18 million, or about $1,076 psf based on a strata area of 16,727 sq ft.

Premier Centre: Any conversion to hotel use will need approval from the authorities; the site, located at the corner of Beach Road and Tan Quee Lan Street is currently zoned for commercial use

Premier Centre stands on a site with a 999-year leasehold tenure starting from January 1827.

Market watchers reckon that buyer Fragrance Group could be eyeing the possibility of converting Premier Centre into a hotel when its existing office leases run out in 2011.

This makes sense given the property's strategic location near the Downtown Line Bugis MRT Station.

Premier Centre's existing gross floor area of about 25,600 sq ft exceeds the maximum of about 15,000 sq ft allowed for the site under Master Plan 2008.

'So it is more feasible to do additions and alterations, as well as to improve the building's efficiency by squeezing out more usable space - than to tear down the property and redevelop the site,' says an industry observer.

However, any conversion to hotel use will need approval from the authorities. The site is currently zoned for commercial use.

BT understands that Premier Centre's seller, a unit of the Hong Leong Group, recently spruced up the building's interior, including the lobby and common toilets, prior to its sale. The building is currently 85 per cent occupied.

DTZ brokered the sale. Premier Centre was completed in 1992.

Interest in small office blocks costing around $100 million or less has gathered pace.

Recently, Sommerville Development, whose shareholders include Yi Kai Group and Fission Group, bought Aviva Building in Cecil Street and the next-door Cecil House from insurer Aviva for a total of $101 million.

Sommerville also picked up VTB Building in Robinson Road for $71 million last month. Its intention is said to be to redevelop the properties to apartments.

Other office deals transacted recently include Anson House, which was sold for about $85 million, and the freehold Parakou Building, at the Robinson Road/McCallum Street junction, which went for $81.38 million or $1,280 psf of net lettable area.

Parakou Building was bought by a unit of Cathay Organisation, controlled by Choo Meileen.

New Chinese Home Prices Rise As Loans Soar

Source : The Business Times, July 21, 2009

(SHANGHAI) New home prices in 36 medium- and large-sized Chinese cities rose 6.3 per cent last month from a year earlier as bank lending tripled in the first half.

The average price of new homes rose to 6,554 yuan (S$1,394) per square metre, the National Development and Reform Commission said on its website yesterday. New home prices last month rose 1.1 per cent from May, China's top economic planning agency said.

The increase in new bank loans to 7.37 trillion yuan in the first half helped to spur demand for property and boosted prices, said Bohai Securities Co analyst Zhou Hu. Housing prices in 70 major Chinese cities rose in June for the first time in seven months, the government said on July 10.

'China's property market is recovering and prices should continue to rise in the third quarter,' said Mr Zhou, who recommends buying shares of China Vanke Co and Poly Real Estate Group Co, the country's biggest developers by market value.

Nationwide property sales last month rose 32 per cent by floor space and 53 per cent by value from a year earlier, the National Bureau of Statistics said on July 10. Investments in property development in the first half increased 9.9 per cent, the agency said.

Vanke, China's biggest developer by market value, said on July 4 that its first-half property sales rose 28 per cent from a year earlier to 30.8 billion yuan. Poly Real Estate said its first-half sales rose 168 per cent to 21.1 billion yuan.

The China Banking Regulatory Commission on Sunday ordered lenders to raise reserves against non-performing loans. The regulator's Shanghai branch also told the city's lenders to obey mortgage rules that require down payments of no less than 40 per cent of the price. -- Bloomberg

UK Home Prices Up 0.6% This Month

Source : The Business Times, July 21, 2009

(LONDON) British home sellers raised asking prices this month to meet increased demand from buyers, Rightmove plc said.

The average cost of a home rose 0.6 per cent to £227,864 (S$538,970) after falling 0.4 per cent in June, the operator of the UK's biggest residential property website said yesterday.

Prices in London had the first annual gain of the year so far.

The housing market is showing signs of recovery from the worst economic contraction in a generation after officials rescued banks and started printing money. Ernst & Young's Item Club yesterday raised its forecast for British gross domestic product in 2010 to show expansion.

'With growing confidence that we've passed the bottom, buyers are more active, although they may discover that many of the best buys have gone,' Miles Shipside, commercial director of Rightmove, said.

Separate reports yesterday showed the mortgage market has improved. Gross lending rose 17 per cent in June from the previous month to £12.3 billion, the Council of Mortgage Lenders said. The Bank of England said approvals by the nation's six biggest banks rose to 51,100 in June, the highest since records began in December, from 45,000 in May.

Seven of 10 regions tracked by Rightmove rose this month, led by East Anglia, where asking prices increased 6.1 per cent. Across England and Wales, values declined 3.1 per cent from a year ago.

The average number of properties available for sale at each real estate agent fell to 70 from 71 in June. At the same time the number of people looking at property listings on the website is 'much higher than we would expect' for this time of year, Rightmove said.

In the capital prices rose 1.4 per cent on the month and 0.6 per cent from a year earlier. Westminster led gains from June, with a 5.2 per cent increase, followed by Croydon and Camden.

The Bank of England has cut the benchmark interest rate to a record low of 0.5 per cent and is buying £125 billion of bonds with newly created money to ease lending strains. Prime Minister Gordon Brown has spent billions of pounds rescuing banks.

'With only seven volume lenders remaining in the lending game, including three government-backed institutions that are prioritising their balance sheets over new lending, we are set to bump along the bottom for some time yet,' Shipside said.

The economy will grow 0.5 per cent next year, up from a previous forecast for a 0.1 per cent contraction, the Item Club, which uses the same forecasting model as the UK Treasury, said yesterday. It predicts gross domestic product will drop 4.4 per cent this year, more than an earlier estimate for 3.5 per cent.

Repossessions may total 17,494 in the third quarter, up from 17,049 in the three months through June as higher unemployment leaves more Britons unable to afford their mortgages, according to a separate report by Property Portfolio Rescue, a London-based company that buys homes from distressed sellers. -- Bloomberg

New Condo Prices Rising

Source : The Straits Times, July 21, 2009

Brisk weekend sales indicate continuation of strong momentum

SALES of new condominium projects continued at a robust pace last weekend, despite some developers starting to test the market with slightly higher prices.

The weekend queue at the Waterfront Key showflat. The developer sold 120 units of the Bedok Reservoir project at an average price of $735 psf. -- PHOTO: FAR EAST ORGANIZATION

Buyers picked up 120 units at Waterfront Key in Bedok Reservoir at an average price of $735 per sq ft (psf), even though that price is higher than that at the neighbouring Waterfront Waves condo, where units are going at $700 psf on average.

Both are 99-year leasehold projects and are being jointly developed by Far East Organization and Frasers Centrepoint.

In the Upper Changi area, Hong Leong Group sold 50 more units of The Gale on Flora Road at prices ranging from $650 to $725 psf - up from $650 to $700 psf the previous weekend. This makes 265 units sold to date at the 329-unit freehold development, or about 80 per cent.

In the higher-end segment of the market, City Developments (CDL) has also raised prices for its newly launched Volari@Balmoral by 2 per cent, after it saw a fairly good take-up rate over the weekend.

CDL released 65 units out of a total of 85, and sold about 55 of them. The average price of the units sold was over $2,000 psf, it said in a press release.

The developer added that almost half the buyers were foreigners. Prices start from $2.7 million for a two-bedroom unit.

The transactions over the weekend indicate that this month's home sales figures are likely to maintain the strong momentum started in February, which has seen more than 1,000 new homes sold every month.

Another interesting point: fewer buyers appear to be taking up the interest absorption scheme, which allows them to defer the bulk of their payments until their apartment is completed but often at a higher price.

Only a third of the buyers at The Gale took up the interest absorption scheme. About 20 per cent of Volari@Balmoral's buyers opted for the scheme, which means they paid 2 per cent more for their units.

Read the full story in Tuesday's edition of The Straits Times.

No To Live Music Near Homes

Source : The Straits Times, July 21, 2009

URA shelves idea after 80% of 250 who responded to survey reject plan to inject vibrancy

THE Urban Redevelopment Authority (URA) has nixed a plan to allow live entertainment in pubs and restaurants near residential areas, after most respondents in a public survey rejected the idea.

The plan, announced last year, was meant to inject vibrancy into landed neighbourhoods by cutting down on red tape for local business owners.

For instance, the proposed guidelines could have allowed for outlets in such areas to have violinists serenade restaurant diners, karaoke performances, and live band performances.

The URA sought public feedback before implementing the plan. But 80 per cent of about 250 people who responded to its online survey last September gave it the thumbs down. About half the respondents were residents of landed housing areas.

Many voiced fears about increased noise levels, while others felt that it could mean rowdier pubs and karaoke lounges sprouting up, leading to social problems like fights and other illicit activities.

However, other aspects of the plan, such as allowing shops selling food to do light cooking on-site, were greeted with much more enthusiasm. More than 70 per cent of survey respondents felt allowing stores to fire up the grill or steam food was a good idea, for example.

So while the ban on pubs and restaurants in residential areas having live entertainment stays, food shops can now do light cooking without having to apply for new licences.

Shops in commercial complexes such as malls will also be allowed to operate as restaurants without the need to apply for planning permission from the URA.

Such businesses will still need to apply for the appropriate licences from the National Environment Agency though, and adhere to hygiene regulations.

In a press statement on Monday, the URA said that keeping the ban on light entertainment was its way of balancing the 'sometimes opposing needs' of residents and business operators. Those living in affected areas, such as Upper Thomson Road and Jalan Legundi in Sembawang, breathed a sigh of relief upon hearing the news.

Read the full story in Tuesday's edition of The Straits Times

'Unrealistic' To Cap Prices

Source : The Straits Times, July 21, 2009

A CAP on increases in the resale prices of HDB flats would be 'unrealistic', Parliament heard on Monday.

Senior Minister of State for National Development Grace Fu argued that prices of properties - especially HDB flats which are owned by 85 per cent of Singaporeans - should be a reflection of Singaporeans' wealth, and hence it was 'not such a bad idea for prices to move steadily over time'.

Referring to a letter published in The Straits Times' Forum page last Saturday, she noted that there are Singaporeans who bought their flats at the height of the property boom in 1996 and are waiting for prices to return to that level so that they will no longer be in 'negative equity' - with their flats worth less than the loans they took out.

Ms Fu was replying to a question from Madam Ho Geok Choo (West Coast GRC), who asked if a cap should be imposed on rising HDB resale prices. Madam Ho raised concerns about whether or not HDB resale prices were being artificially propped up by inflated valuations.

Responding, Ms Fu pointed out that HDB valuations were not made by the Government, but by independent valuers based on recent transacted prices. She said the HDB resale price index has fluctuated within a narrow range of between plus 1 per cent and minus 1 per cent in the last few quarters, suggesting that prices have stabilised.

In fact, the cash over valuation or COV amounts have fallen - from a high of $22,000 in the fourth quarter of 2007 to below $5,000 in the second quarter of this year, said Ms Fu. The COV refers to the amount that a seller wants over and above the valuation of his flat. A lower COV means that the buyer has to fork out less in cash, as banks lend only up to a certain percentage of the valuation amount.

Ms Fu noted that HDB flats remained affordable to Singaporeans, as first-time home buyers who purchase a resale flat in non-mature estates use on average about 25 per cent of their household income to service their loans. This is 'well below' the benchmark of 30 per cent the HDB uses to measure affordability, she noted.

Read the full story in Tuesday's edition of The Straits Times

Eye On Ion

Source : The Straits Times, July 21, 2009

Orchard's newest mall is not only striking, but more than 70 per cent of its stores are also new

At 640,000 sq ft, Ion Orchard is far smaller than VivoCity and Ngee Ann City.

Ion Orchard has many entry points. -- ST PHOTOS: SAMUEL HE

But the hype and expectations surrounding Singapore's newest mall are much larger than its size might suggest, not least because of its literally flashy appearance and prime location at the busiest junction of Orchard Road.

Some analysts say it could change the shopping experience in Orchard Road when it opens its doors today.

More than 70 per cent of its 335 stores will be new to Singapore. Among them are jeweller-to-the-stars Harry Winston, Italian label DSquared2, Spanish high street label Bershka, Chinese sportswear retailer Li-Ning and Australian shoe company Rubi Shoes.

Ion Orchard's soft opening comes 2 1/2 years after its ground breaking in 2006. The mall is part of a $2-billion retail and residential development called Orchard Turn, which is a joint venture between CapitaLand, Singapore's biggest developer, and Hong Kong's Sun Hung Kai Properties, one of the largest developers in Asia.

Ion Orchard has many entry points and all the shops, including American footwear label Steve Madden (left) can also be accessed easily. -- ST PHOTO: SAMUEL HE

About 70 per cent of the stores open today and 90 per cent will be opened by the mall's official opening in October. The remaining 10 per cent will open by next year.

The eight-storey mall is within a 218m-tall, 56-storey luxury building. The other 48 floors will contain 175 high-end apartments called The Orchard Residences, which will be completed by next year. About 84 per cent has been sold. Last month, an apartment sold for $3,299 psf.

Speaking at a press briefing yesterday, Orchard Turn chief executive Soon Su Lin says the opening of the mall is a 'significant milestone that heralds new beginnings for Orchard Road'.

She adds that the vision for Ion Orchard is to create an icon befitting its unmatched location at the gateway to one of Asia's most vibrant shopping strips.

While the public loos (left) are spacious and grand, the $10,000 VIP restroom is even more upscale. The toilet comes with an automates seat cover that lifts up when the the user enters and closes after use.

The aim could be achieved even though VivoCity at 1.04 million sq ft and Ngee Ann City at 1.1 million sq ft are larger.

Looks-wise, Ion is striking. It was designed by Hong Kong-based architect David Buffonge, a director of Benoy architecture firm.

He says he was inspired by the history of the site - it was an orchard about 160 years ago.

'The seed and skin of a fruit form the facade of the building, while the residential tower is the stem,' he says. The facade can be a canvas for multimedia art as well as a screen for live telecasts of events held within the complex.

Inside, the ceiling on the fourth floor has a distinctive grid-like pattern which Mr Buffonge likens to the veins on a palm leaf.

While the public loos are spacious and grand, the $10,000 VIP restroom (left) is even more upscale. The toilet comes with an automates seat cover that lifts up when the the user enters and closes after use.

Four levels of shops are above ground and another four are under. There are no nooks and crannies which obscure shopfronts, and all shops can be seen and accessed easily.

'I made the design compact, so no one will get lost,' says Mr Buffonge.

Levels 1 to 4 are dedicated to luxury and premium international brands while levels B1 to B4 offer popular high-street labels and lifestyle shops.

Foodies will love that more than 21 per cent of the mall is dedicated to food and dining. Once in full swing, Ion will have 28 restaurants and cafes, a food hall with 80 stalls and about 60 dining options that are new here.

Among them is Itacho Sushi, a well-known sushi chain from Hong Kong making its debut here.

Its administration manager, Ms Zoe Tan, says: 'Ion Orchard is the newest mall, so opening our first restaurant here will have greater impact.'

She adds that the company plans to open four more outlets next year, but has not decided where.

Ion's design also has many access points, making it convenient to get in and out of it, whether you are driving or commuting on public transport.

There is a spacious drop-off area on Level 2, which also leads to the carparks. On street level, shoppers enter the mall's first level. The mall is connected to Orchard MRT station on basement two. On this level, there is also a underground walkway called Ion Paterson Link that takes pedestrians from the Orchard MRT Station to Paterson Road across the street, where Wheelock Place is located. The underpass is open 24 hours.

The mall has 516 parking lots on Levels 5 to 8 as well as valet parking service.

Secretary Maggie Leow, 37, is excited about the new mall. 'I heard so much about it, I definitely want to check it out after work,' she says.

Next year, visitors will have more to do at Ion besides shopping and dining. A double-storey observation deck located on the 55th and 56th floors will open.

Shoppers can access it via a separate lift lobby from the residences.

Called Ion Sky, it will offer a panoramic view of the city.


POSHEST LOOS IN ORCHARD

You know you are someone when you use one of two $10,000 toilet bowls in Ion Orchard.

There are two special restrooms tucked away discreetly on Level 2. They each have their own small sitting area, decorated with a chandelier, black-and-gold wallpaper, black marble flooring and a full-height mirror.

There is only one cubicle in each restroom, decked out in gold and brown glass mosaic tiles, with warm lighting. The toilet is a fancy Toto Neorest unit, which costs more than $10,000. Its seat cover automatically lifts up when a user approaches and closes after use.

Only VIP guests, defined by an Ion spokesman as 'dignitaries and celebrities', may use these restrooms which are locked. Luxury brand stores will inform the concierge about the VIPs, who are then escorted to the loos.

The public restrooms in Ion are not shabby, either. In fact, they may well be the poshest ones in Orchard Road. Each restroom is spacious and comes adorned with vases of fresh flowers. One women's restroom that Life! saw had 15 cubicles.

Women will also love the vanity table near the hand basins and huge swivel mirrors on the table for make-up.

The men's toilets are less spacious and do not have vanity tables, but they still boast the same posh marble flooring.

The public restrooms are located on all levels of the mall, except B2, L1 and L2.

Developers Begin Raising Prices Of New Projects

Source : The Straits Times, July 21 2009

Brisk weekend sales indicate continuation of strong momentum

SALES of new condominium projects continued at a robust pace last weekend, despite some developers starting to test the market with slightly higher prices.

Buyers picked up 120 units at Waterfront Key in Bedok Reservoir at an average price of $735 per sq ft (psf), even though that price is higher than that at the neighbouring Waterfront Waves condo, where units are going at $700 psf on average.

The developer sold 120 units of the Waterfront at an average price of $735 psf. -- PHOTO: FAR EAST ORGANIZATION.

Both are 99-year leasehold projects and are being jointly developed by Far East Organization and Frasers Centrepoint.

In the Upper Changi area, Hong Leong Group sold 50 more units of The Gale on Flora Road at prices ranging from $650 to $725 psf - up from $650 to $700 psf the previous weekend. This makes 265 units sold to date at the 329-unit freehold development, or about 80 per cent.

In the higher-end segment of the market, City Developments (CDL) has also raised prices for its newly launched Volari@Balmoral by 2 per cent, after it saw a fairly good take-up rate over the weekend.

CDL released 65 units out of a total of 85, and sold about 55 of them. The average price of the units sold was over $2,000 psf, it said in a press release.

The developer added that almost half the buyers were foreigners. Prices start from $2.7 million for a two-bedroom unit.

The transactions over the weekend indicate that this month's home sales figures are likely to maintain the strong momentum started in February, which has seen more than 1,000 new homes sold every month.

Another interesting point: fewer buyers appear to be taking up the interest absorption scheme, which allows them to defer the bulk of their payments until their apartment is completed but often at a higher price.

Only a third of the buyers at The Gale took up the interest absorption scheme. About 20 per cent of Volari@Balmoral's buyers opted for the scheme, which means they paid 2 per cent more for their units.

At Waterfront Key, 'practically all' the buyers went with the normal progressive payment scheme, said Far East Organization's chief operating officer Chia Boon Kuah. This could be because interest absorption for this project comes at a 4 per cent premium.

When asked why the prices were higher at Waterfront Key than at Waterfront Waves, Mr Chia mentioned the project's 'thoughtful facilities', including three outdoor villas and two 'island villas', as well as the fact that all units would have views of either the park, reservoir or pool.

The developers released 176 units at Waterfront Key last Friday. A further 102 units will be released during the project's public launch this Saturday. The condo has 437 units in all.

Of the buyers last weekend, about 60 per cent were HDB upgraders, said Mr Chia. They bought mainly the smaller units: all the 57 two-bedroom units from the first to 15th storeys have been sold, at prices starting from $593,000. The four-bedders, which are 1,518 sq ft in size, are going for up to $1.42 million each.

楼价虽高难阻买家进场

Source : 《联合早报》July 21, 2009

尽管最近新上市的一些项目，推出价格已经回升至接近2007年底／2008年初的楼市巅峰水平，却仍然阻止不了买家蜂拥进场。

上个周末，一些项目继续取得不错的销售表现。虽然有些项目只卖出了零星几个单位，但是几个地点好、单位多的“重头项目”仍然传出捷报。

城市发展在上个周末的预售会上总共卖出了55个Volari单位。令人瞩目的是，这个位于百慕乐路，也就是国园酒店(Garden Hotel)现址的豪华共管公寓，每平方英尺平均售价在2000元以上，这也就是说，一个两卧房式的单位，售价在270万元以上。

至于远东机构和星狮地产联手发展的Waterfront Key，则在过去几天卖出了120个单位。尽管这个位于勿洛水池路的项目，在上星期五晚上9时才开放示范单位让买家选购单位，但当天傍晚5时起就开始形成人龙。

这个99年地契公寓共有437个单位，预售会上只拨出176个单位供选择。上个周末卖出的120个单位，每平方英尺平均成交价为735元。这已经相当接近隔邻Waterfront Waves在上个一个楼市高峰期的价位。根据媒体之前的报道，Waterfront Waves的首100个单位是在2008年初以每平方英尺平均801元成交的。

市场人士指出，发展商最近推出的新项目，价格比四五个月前明显回升，有些项目的价格甚至已回升至2007年底／2008年初的巅峰水平。

“今年2月，楼市之所以开始‘动’起来是因为发展商开始削价来吸引买家回头。例如星狮地产的水之轩(Caspian)以每平方英尺580元预售，价格较楼市高峰期的每平方英尺1090元减少一半，比起当时四周公寓的转售价格也低了20％。”

但最近新登场的项目，折扣价已渐渐减少，例如最近上市的Ascentia Sky以每平方英尺1100元至1300元预售，附近的The Metropolitan在楼市最巅峰时，例如2008年1月的平均成交价格也不过是每平方英尺1060元。不过一些市场人士指出，两者不能同等比较，因为前者的设施较多，市场的定位也较高档。

不过，例如丰隆集团最近推出的The Gale，售价也比姐妹公司——城市发展在今年2月重新推出莉雅苑(Livia)共管公寓的价格——每平方英尺620元，明显来得高。

位于白沙一带的The Gale，最近以每平方英尺650元至750元预售。这个价格也相当贴近隔邻Ferraria Park在上一个楼市巅峰的平均成交价——Ferraria Park在2008年1月的平均成交价格为717元。

由于楼价已经在过去一个多月来上涨3％至15％，不少市场人士担心，连跑了五个月的楼市是否能够继续保持旺热，发展商纷纷起价是不是会将买家吓走。不过，由于新上市的楼盘大多仍有不错的销售表现，一些人认为，楼市可能要到农历七月才会稍微放慢脚步。

市建局调查：80%居民反对 邻里餐馆酒廊有乐队表演

Source : 《联合早报》July 21, 2009

市区重建局进行的公众咨询活动结果显示，约80%的回复者不支持让在靠近私人住宅区的酒廊和餐馆内安排现场乐队表演。这也意味，市区重建局会保留这方面现有的私人店屋使用条例，不做修改。　　

市区重建局去年9月展开为期四周的公众咨询活动，向业者和居民收集有关放宽店屋使用条例的意见。探讨的课题包括是否应该允许靠近私人住宅区的饮食商店提供现场音乐表演，以及在店内可进行怎样的食物烹煮。

市建局昨天发表的文告表示，有250人参与了这项咨询活动。

反对邻里餐馆和酒廊引进现场音乐表演的公众认为条例一旦放宽，日后可能会引发噪音问题，甚至是社会问题。另外，原本经营餐馆的业主也可能转而开办酒廊和卡拉OK歌厅。

有些回应者也提出，如果最终允许放宽条例，还必须考虑应该允许哪一类型的表演，以及表演者的人数。部分公众无法接受在餐厅内举行现场乐队表演，但一些人却可以接受小提琴或钢琴演奏。

市建局的立场

市建局解释，该局在考虑放宽条例的课题时，必须顾及居民和业者的不同需要。一些居民以便利为原因，喜欢邻里内商店林立；另外一些居民希望区内环境不要受到不必要的干扰；业者则想获得更多自主权，在店里举办不同种类的活动。为了平衡各别群体的利益，市建局决定保留现有的条例。

目前，只有获准以夜总会形式经营的场所如卡拉OK酒廊和舞厅才可以有现场乐队表演。

另一方面，近70%的公众表示可以接受小吃店业者在店内做简单烹煮。基于这个理由，市建局决定从即日起放宽这方面的条例。

之前，没有用餐设施的饮食店面只能售卖熟煮食物，业者不能在店内烹煮食物。在旧有条例下，业者若需要经常在店内加热食物，必须向当局提出申请。现在，他们无需进行这个步骤。不过，市建局强调，业者仍需要符合国家环境局相关的卫生条规。

与此同时，为了设立更亲商的条例框架，市建局也简化了一些商店以前必须提出的申请。比如说，在商业大厦经营店面的业者如果要把文具店改成餐馆营业，不再需要提出策划准证(planning permission)。

想了解更多有关公众咨询的相关结果，可以上网至www.ura.gov.sg。

中国新建住房价格涨6％

Source : 《联合早报》July 21, 2009

（上海综合电）今年上半年银行贷款总额急速增加到人民币（下同）7万3700亿元（1万5400亿新元），中国36个大型与中型城镇的新建住房价格在6月份较去年同期上扬了6.3％。此前，中国70个主要城镇的6月份房价也上涨，这是7个月来首次。　

　　据中国国家发展改革委员会（发改委）公布的数据，6月份相关城市新建住房价格平均每平方米为6554元。新建住房价格较5月份上涨1.1％。　

　　渤海证券分析师周虎说，银行新增贷款爆增是房地产价格上涨的助力之一。今年第三季度，房价还将持续上涨。

货币政策过度宽松

　　另外，中国《东方早报》昨日报道，全国人大财经委副主任委员尹中卿认为，现在的货币政策是过度宽松，不是适度宽松，下半年应该完善适度宽松的货币政策，抑制通胀压力和潜在金融风险，把握信贷投放的节奏。

　　报道援引尹中卿建议，下半年货币政策应严格执行年初制定的广义货币(M2)增长17%，新增贷款5万亿元以上的目标，要从28%的广义货币增长回到17%的目标，要花很大功夫。