Residents Have Mixed Feelings Over New Sixth Avenue MRT Station

Source : Channel NewsAsia, 06 July 2009

The Sixth Avenue MRT station will be the first to be located in a private residential estate once it is ready in 2015.

Train tunnels of Circle Line network

Residents in the area welcome the new station and hope it will lead to fewer traffic jams in the area.

The elderly and school-goers are expected to benefit from the convenience of having an MRT station close by. Nearby shops are also optimistic that the station will help bring in more customers.

However, some residents are concerned that it may lead to a surge in human traffic with more people flocking to use the station.

Real estate agents said the new station will not benefit the prices and rental rates of landed properties in the area.

This is because the owners and tenants of such properties tend to be car owners and do not use public transport such as the MRT.

However, they said it could lead to a 5-10 per cent increase in the prices of condominiums located nearby. - CNA/ms

Office Rents Decline

Source : The Straits Times, July 7, 2009

Fall accompanied by rise in vacancies and unlikely to recover anytime soon

LANDLORDS took a one-two punch in the second quarter, with rents continuing to decline for offices and industrial space as vacancies kept rising. Rents were under the most pressure in the city-fringe and high-tech sites while more space was vacated, particularly in the core Central Business District (CBD) area.

Rents were under the most pressure in the city-fringe and high-tech sites while more space was vacated, particularly in the core Central Business District (CBD) area. -- ST PHOTO: LAU FOOK KONG

Consultants DTZ said office rents in Beach Road and North Bridge Road fell 20 per cent to $6.20 per sq ft (psf) per month in the second quarter. This followed a 13 per cent fall in the first quarter.

Rents along the Alexandra Road belt fell 23 per cent to $5 psf a month in the April to June period, compounding a 13 per cent drop in the first quarter.

The decline was driven mainly by competition from a converted state property and high-tech industrial sites in the area.

Generally, rents in the office market have been falling as demand weakens in the face of rising supply. The amount of grade A space, in particular, will double in the next five years.

CBRE said monthly prime office rents fell about 18 per cent to $8.60 psf in the second quarter, after a 18.6 per cent quarter-on-quarter drop in the first quarter. Grade A office rents are down 17.5 per cent to $10.15 psf a month. They also fell 18 per cent in the first quarter.

The rental gap between office space in the CBD and that elsewhere has narrowed. Offices in Marina Centre are now 12 per cent cheaper to rent than those of prime space in Raffles Place, compared with a rental gap of 18 per cent at the peak of the market. The gap has closed even more in the Harbourfront area - from 47 per cent at the peak to 35 per cent in the second quarter.

Some firms, particularly those driven to relocate outside the CBD during the 2006-2007 boom, are now likely to return, said DTZ.

Office leasing activity continues to be driven mainly by lease renewals as firms downsize. Take-up has been negative for the past two quarters and is likely to remain so for the rest of the year, said CBRE's executive director (office services), Mr Moray Armstrong. 'We are seeing greater incentives including, for instance, capital expenditure contributions to attract or retain quality tenants,' he said.

The good news is that the rate of rental decline will ease from the dramatic falls seen since last September but demand will still be 'severely constrained'.

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

Geylang Market Opens Next Week

Source : The Straits Times, July 7, 2009

THE NEW and upgraded Geylang Serai market will resume business on July 13.

This follows a facelift headed by the National Environment Agency's (NEA) Hawker Centres Upgrading Programme which took 40 months and costs $18.2 million.

The upgraded Geylang Serai Market will repon on 13 July 2009 after a 40-month makeover. -- ST PHOTO: NG SOR LUAN

The new market is designed to be iconic and simulates the 'rustic quality' of the old kampong houses, said NEA in a statement on Tuesday.

Some of its features include an entrance lobby with an integrated drop-off porch, similar to that of a Malay verandah. Decorative elements such as louvers and timber panels synonymous with features of Malay architecture were integrated in its designs.

Located along Changi Road, the two-storey structure consists of 162 market produce stalls and 34 lock-up stalls on the first storey, and 63 cooked food stalls and 106 lock-up stalls on the second level.

The upgrading also resulted in a more spacious layout, enhanced ventilation and improved fire safety features. For example, all cooked food stalls have been fitted with a new mechanical exhaust system to improve the ventilation of the centre.

The total seating capacity has also been increased by more than 100 per cent to cater to more crowds.

NEA said the new market provides a 'more pleasant and refreshing environment blended with the rustic Malay charms' for marketing and dining needs.

Stallholders are expected to resume business at the hawker centre from July 13 July.

NEA currently manages 109 hawker centres. To date, 74 hawker centres have been upgraded under the upgrading programme.

Some hawker centres that are currently undergoing upgrading include Tekka Centre, Blk 628 Ang Mo Kio Ave 4 and Blk 270 Queen Street.

10th Most Expensive City

Source : The Straits Times, July 7, 2009

SINGAPORE is now the 10th most expensive city in the world for expatriates, having climbed up three places from last year, according to a survey conducted by human resource and financial consultant Mercer.

The Republic knocked Milan out of 10th place in this year's Worldwide Cost of Living survey, securing a spot in the top 10 largely dominated by European and Asian cities. -- PHOTO: STB

The Republic knocked Milan out of 10th place in this year's Worldwide Cost of Living survey, securing a spot in the top 10 largely dominated by European and Asian cities.

Tokyo overtook Moscow as the most expensive city for expatriates, with the Russian capital city slipping to third spot but still maintaining its lead as the most expensive European city. Johannesburg is the world's cheapest city.

The significant reshuffle of cities in this year's ranking is mainly due to considerable currency fluctuations worldwide.









A table of countries surveyed by Mercer.

All the US cities have become more expensive, with New York City jumping to 8th place because of the stronger US dollar.

London, on the other hand, fell to 16th spot from third last year due to the decline of rental prices and the weaker British pound.

European cities are cheaper to live in, with Warsaw, for example plummeting from the 35th to 113th spot.

In Asia, Chinese cities are on the rise as the Chinese renminbi gained strength over others. Beijing, for instance, is in ninth place.

In Mercer's survey, New York is used as the base city for the index and scores 100 points so all cities are compared against New York and currency movements are measured against the US dollar.

The survey covers 143 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

House-Buying Tips For Newly-Weds

Source : The Straits Times, July 07 2009

Yearning for a love nest to call your own? To-be-weds should check out this article for some property purchasing and home financing tips.

Going on a round-island hunt for the perfect abode can be a tiring affair, especially if one doesn’t drive and has to pack it in with other people on the public transport system.

Having to jostle with other commuters when one is pregnant is worse. That’s why I try to make it a point to give up my seat for a mums-to-be.

“Would you like to sit?” I asked a few moons ago, when a lady with a slight paunch boarded the bus (but I couldn’t be sure if she was house-hunting though.)

I had expected the usual “thank you”, but that didn’t ensue.

“Er, no. I don’t need it,” came the sheepish and fractured reply, after a pregnant pause (no pun intended).

I then realised that I had bestowed the ultimate disfavour upon a woman. I had put a dirty label on her – assuming that she’s pregnant instead of just, er, well-endowed. But hey, look on the bright side! At least the enduring efforts of Singa hadn’t gone unnoticed. But that said, I certainly hope what went around won't come back to me any time soon. (Better start jogging. Or avoid taking the bus altogether.)

But I’m jumping the gun here, what with preggies, fatties and all. I really should start touching on the main stuff - house-buying tips for newly-weds, pregnant or otherwise - before you threaten to give up your seat for me.

* * *

A big ticket item

Property acquisition is a huge investment, and possibly the single, largest one a couple will bear. So, newly-weds who may not have accumulated enough savings and tend to borrow substantial amounts must resist rushing into a purchase – no matter how much they like it. They will have much to bear should theirs turn out to be a wrong decision.

The first step towards budgeting and measuring affordability lies in making sure they have enough cash for the 20 per cent down payment. A couple should also find out if their combined incomes can support monthly mortgage payments.

Although salaries for a young couple should rise over time, loan periods usually stretch from 20 to 30 years, during which time interest rates will fluctuate. At the end of the day, they'll have to repay principal plus interest, which could be tantamount to twice the original amount borrowed, for every dollar they borrow.

Be a wary buyer, not a weary one

The recent economic lull goes to prove one thing: salaries can be cut and jobs can be lost. Combined with a withdrawal of promotional interest rates, possible losses on the stock market and perhaps the arrival of a baby, cash flow can suddenly become very tight. One must remember that property is the most illiquid asset of all, so a couple should try to keep monthly instalments in as manageable a manner as they can. As a general gauge, a couple could try to not spend more than a third of their gross monthly income on their mortgage.

‘House’ it going?

A couple should think about the tenure of their property. A 99-year leasehold property will cost less than a similar freehold property, which means that for the same budget, they can either get a newer or bigger leasehold property compared to a freehold one. Better still, if they decide on an HDB flat or EC, they can enjoy an ‘extra’ government grant.

A 99-year leasehold home can provide a very affordable choice for someone who, with the same budget, cannot buy freehold property and still enjoy all the facilities and resort-style living that goes with it. Of course, those who must have a freehold property will just have to be prepared to fork out a bigger budget.

Access your accessibility

If a couple cannot yet afford a car, then look for a home which is conveniently linked to the public transport system, or better still, close to their workplace. One has to be comfortable with the time taken to travel, taking into account hassles involved, in order to be convinced about living in a certain place.

Facilities & amenities

A couple should also take into consideration about the perks of living near schools, supermarkets, shops, restaurants, their parents (especially if they plan to have kids soon). If not, they may land up having to uproot themselves disruptively if a short-sighted decision has been made.

Size (and other) matters

In terms of size, a two-bedroom unit could probably be good enough for a couple starting out, as it will provide room in case a baby or live-in maid comes along. On a separate and still related note, an older or BTO property should cost less (ceteris paribus). However, house-proud newly-weds could fall into a trap of overspending on renovations in order to improve its look. Any savings made would therefore be offset as high renovation loans attract high interest rates.

With new developments, a couple should save on high-cost items which are already included, such as built-in wardrobes, air-conditioning and kitchen cabinets and equipment, so as to minimise their expenditure.

Old is gold?

With older developments, especially those above 15 years, good maintenance is critical to keep their value. For really old developments, buyers need to evaluate if it’s worthwhile to cough up thousands of dollars for upgrading work. Some people may be keen to take a bet on properties with a potential for en bloc, which could result in a ‘windfall’ should it follow through. There’s no harm in subscribing to this notion. One just has to make sure he’s taking a calculated risk.

Be patient

If a couple is planning to upgrade in a couple of years, then it may make sense to settle for less for the time being.

* * *

Here’s hoping you’ll have a fulfilling time searching for your dream home with these pointers. Oh, if you intend to bus-hop while at it, do me a favour: let me know if you genuinely need my seat and I’ll gladly give it up; it’ll save me the hassle of guessing if it's actually a fat baby – or baby fats – that's residing beneath that belly.