Simei Street Residential Site Attracts Top Bid Of S$236m

Source : Channel NewsAsia, 04 January 2008

United Overseas Land and its partner Peak Century have put in the top bid of S$236 million for a residential site at Simei Street 4.

The price works out to about S$296 per square foot per plot ratio.

The Urban Redevelopment Authority tender attracted three bids.

The second highest bid of some S$231 million came from Frasers Centrepoint Properties.

NTUC's Choicehomes trailed in at third place with its offer of S$188 million.

Consultant CB Richard Ellis estimates the future condominium project to be built on the site will have a breakeven price of about S$650 per square foot.

It expects the units to sell at between S$700 and S$750 per square foot.

Units in nearby projects, The Modena and Tropical Springs, are selling at between S$550 and S$650 per square foot in the resale market.

Another consultant Knight Frank expects the site to yield about 650 units. - CNA/ms

新加坡黄金地段平均租金 向每方英尺20元逼近

《联合早报》Jan 4, 2008

新加坡办公楼市场租金“高烧不退”，高纬物业的最新办公楼租金报告显示，莱佛士坊的黄金地段平均租金在2007年11月份上涨了4.5%，达到每平方英尺16.30元，和一年前比较，涨幅接近一倍(93.3%)。这个地段去年第三季的办公楼平均售价则介于每平方英尺2100至2650元之间。

市场人士昨天也透露，在12月底，百得利路(Battery Road)6号的一个少于3000平方英尺的单位，已经喊出每平方英尺20元的要价，这个要价创下本地办公楼市场有史以来的新高。百得利路6号的业主是以办公楼资产为主的商业房地产投资信托——嘉康信托(CCT)。

而高纬物业(Cush- man & Wakefield)新加坡董事经理韩永利，在接受本报询问时则透露，由于供应严重短缺，中央商业区的一些甲级办公楼，如城市发展的共和大厦(Repu- blic Plaza)的几个小单位(每个少于3000平方英尺的单位)，在12月份已喊出每平方英尺19.80元的要价。

在一年前，共和大厦的月租大约只稍微高于每平方英尺13元。

韩永利指出，这些多数是业主喊出的要价，但在供应短缺的黄金地段优质办公楼市场，租用率一般已达到98至99%，市场对小单位的需求尤其强劲，因此可说是业主的市场，业主可以选择当租金达到他们心目中理想的价位时，才决定出租办公楼单位。

但韩永利也指出，一些黄金地段的业主为了和现有租户维持良好关系，甚至愿意让某些小单位暂时空置，以方便现有租户在扩充营业时，有办公楼可租用。然而，高昂的租金涨幅却也让一些原租户决定另觅落脚处。

珊顿医疗集团(Shenton Medical Group)就会从本月11日起，将原本位于共和大厦29楼的身体检查和医疗诊所，搬迁到将在本月21日开幕，位于雅吉拱廊(The Arcade)18楼和19楼的单位。据了解，其中一个原因是在更新租约时，月租从2002年至2003年的每平方英尺5元以上，激增到约18元的缘故。

虽然共和大厦和雅吉拱廊同样位于莱佛士坊，但比较旧的雅吉拱廊，在租金涨幅上就没有共和大厦那么大。

去年亚洲办公楼第三季表现依强劲

世邦魏理仕(CBRE)昨天发布的办公楼报告也指出，亚洲办公楼市场在去年第三季表现依旧强劲，在新加坡、香港和胡志明市的中央商业区，甲级办公楼的供应非常短缺，空置率只有大约5%或更低。

在主要的商业中心，需求依然很强劲。以租金来说，新加坡和菲律宾领先整个亚洲市场，季比租金涨幅超过15%。


这份报告也指出，本地黄金地段的月租，在第三季平均为每平方英尺12.60元，季比涨幅为16.7%，年比涨幅则达到82.6%，且已超越1990年历史高峰期时的11.50元。报告指出，虽然租金预期将继续上扬，但相信上涨速度会放缓。在接下来的两个季度，银行和保险业者估计会“扫”进不少相当大的楼面

高纬物业指出，在去年11月，黄金地段办公楼的净可收取租金，平均大约是每平方英尺14.30元，比10月高出3.5%，排在前25名的优质甲级办公楼，则从10月份的15.54元，上涨到16.02元。

本地金鞋(Golden Shoe)地区的其他办公楼租金，在11月份的租金涨幅，和10月份同比，上涨了6.5%。这些地区就包括安顺路、罗敏申路、丝丝街、麦士威路和丹戎巴葛路的办公楼。第三季办公楼的平均售价介于每平方英尺1450至2100元。

政府大厦和乌节路一带的平均售价则都是介于每平方英尺1600至2200元之间。

跨国公司对优质办公楼的需求依然强劲，在去年12月份，瑞士私人银行宝盛银行(Julius Baer)为了扩充营业，租下了港湾大厦1座(Habourfront Tower 1)2万6000平方英尺的办公楼楼面。宝盛银行透露，位于乔治街1号的办公地点也将继续运作。

除此之外，国际工程公司Fluor Daniel则承诺租下罗敏申路80号的约1万5000平方英尺楼面、美国药物开发服务公司Pharmanet也搬迁到春叶大厦(Springleaf Tower)大约5000平方英尺的办公楼去。

历来最贵 文庆路私人发展组屋 五房式阁楼卖73万元

《联合早报》Jan 4, 2008

由私人发展商设计、兴建和销售的文庆路组屋“City View@Boon Keng”，明天推出示范公寓并接受申请，售价也首次公布。

五房式阁楼单位，售价接近73万元，可说是历来售价最高的新组屋。

这3座40层楼高的私人组屋，共有714个单位。三房式单位72个、四房式单位168个，五房式单位最多，有474个。

这些私人组屋是由海峡双威（Hoi Hup Sunway）设计、兴建和销售的，昨天公布的平均售价是每平方英尺520元，三房式售价介于34万9000元和39万4000元，四房式售价介于52万3000元和59万7000元，五房式售价介于53万6000元和72万7000元。

超大阳台和植物槽是City View@Boon Keng的一大卖点。阳台加植物槽的面积近20平方公尺，俨然是个小房间。

这样的屋价，接近西部和北部一些大众化公寓的价位。海峡双威是新马老字号海峡实业（Hoi Hup Realty）及双威集团（Sunway Group）子公司的联营公司。

这是我国第二批推出的私人组屋。由森联集团于去年10月间在淡滨尼推出的首批私人组屋——The Premiere@Tampines，平均售价是每平方英尺318元，但就地点的优越性而言，The Premiere显然不如City View@Boon Keng。

文庆路的私人组屋拥有高楼美景及大量公寓设计装潢如宽大阳台、植物槽、冷气化客厅及卧房，顶楼的6间五房式属阁楼设计，有6公尺高的天花板。

海峡双威发言人黄志恒受访时说，该公司有信心这项目会受到买家支持，而且反应可能比The Premiere还要好，主要原因是地点靠近市中心，也靠近地铁站，而且目前组屋转售价高企，新加坡经济前景良好也让人们有信心。

他说，70多万元的单位只占少数，其他单位是买家负担得起的价位。“买家来看我们的设计和格局，就知道这是物有所值的。目前一些受追捧的组屋转售价大概是这个价位，而私人住宅的售价则比以往高，我们只是在提供不同的选择给夹在这两个层次之间的买家。”

对于建屋局接下来将提供更多地段供私人发展商发展组屋，也是海峡实业董事的黄志恒不认为这会影响City View@Boon Keng的行情，他相信新加坡有足够需求消化私人组屋。

他说：“这4个地段都在不同的地点。它们无疑会增加不少供应，但我们相信需求还是高于供应。如果每个项目有600至700个单位，（加上目前这两个项目的）总数估计有将近5000个私人组屋单位，从组屋转售市场的火热来看，即便是建屋局推出更多私人组屋地段，我们认为也不是问题。”

City View@Boon Keng的最大卖点是地点优越和高楼无敌美景。它靠近市中心，20楼以上的单位视线无阻碍，可以远眺新加坡摩天观景轮、滨海湾金沙、体育城等，驱车或搭公共交通前往全岛各地都非常方便。

超大阳台和植物槽是另一大卖点。阳台加植物槽的面积就占了17至19平方公尺，俨然是个小房间。建筑师也在主卧房和厕所纳入凸窗（bay window）设计，营造与一般组屋不一样的感觉。

City View@Boon Keng将引进磁卡保安系统，拥有保安磁卡的住户才可使用电梯上楼。

City View@Boon Keng将从明天开始接受申请，至本月16日截止，建筑工程预料在2011年完工。位于文庆路和明地迷亚路交界处的示范单位从明天起开放至本月31日，公众可浏览发展商网站（www.hoihup.com）或拨电62585955了解更多详情。

CBD Parking Icon To Fall Before Demand For Office Space?

Source : TODAY, Friday, January 4, 2008

IT WAS the first multi-storey car park built in Singapore, and today serves the office-workers of Shenton Way with some 700 valuable parking lots.

But by the end of the year, it could be torn down to make way for an even more priceless commodity these days - office space.

Plans are afoot to transform the iconic Market Street Car Park, built in 1964, into a Grade A office building possibly by 2011, according to CapitaCommercial Trust (CCT), the real estate investment trust (Reit) that owns the eight-storey edifice.

The move comes as a surprise as less than two years ago, the car park underwent a $14-million renovation that saw the old crowded sidewalk kopitiams replaced with hip air-conditioned food and beverage outlets.

Even so, the Reit manager has been constantly looking for ways to “enhance the value of its assets”, said CCT chief executive Lynette Leong.

The proposed redevelopment would both “maximise the full potential of the site which is currently under-utilised” and cater to financial and business institutions that want to be located “in the heart of the Central Business District”.

The plan is subject to financial viability and a decision should be made in “a few months”, Ms Leong added.

News that the building could be torn down, however, came as an unpleasant jolt to both motorists and the hub’s F&B tenants.

“It’s a pity as many people working in this area are dependent on the car park,” said Knight Frank property consultant Nicholas Mak. There are some 4,800 parking lots in the vicinity, according to CCT, and Mr Mak was concerned the loss of 700 lots could send parking fees rocketing.

The tight demand for prime office space has caused office rental rates as well as car park fees to escalate in recent years. Drivers now pay about $290 a month for season parking at the Market Street Car Park.

“(The closure) is unfair to us as rentals were recently increased following the renovations,” said Mr Eugene Chay, 35, who has been using the carpark for two-and-a-half years. He used to pay about $250 a month. “Where are we going to park if it is pulled down?”

Its centralised location has made it a favourite of many drivers, and those TODAY spoke to are not looking forward to being put on the waiting lists for other locations such as the Golden Shoe Car Park or AIA Building.

It was only “a few weeks ago”, said Ms Leong, that the Urban Redevelopment Authority (URA) granted CCT what it had been lobbying for for several years - the Outline Planning Permission (OPP) to redevelop a site. This allows the land use to be changed from transport to commercial use.

“This is the first REIT to have been granted it,” she said.

The lifting of the land use restriction is subject to two conditions: CCT will have to pay a development premium which is 100 per cent of the enhancement in land value, instead of 70 per cent. And there will be no extension of the existing land lease, which expires in 2073.

The new building can be as tall as One Raffles Quay, which hits 50 storeys, while the maximum plot ratio is 14.49 and the estimated gross floor area totals 850,000 sq-ft, said Ms Leong

The bill for CCT could be as much as $1.5 billion. Ms Leong said various ways of raising the funds would be explored — including a joint venture, setting up a business trust and issuing convertible bonds.

“If we go into joint venture with a partner, we may not have to issue new share units,” said Ms Leong, addressing one potential concern of the Reit’s shareholders. “Whatever we do, we are guided by the principle that we will not undertake any yield dilutive activity, so it will have to be yield accretive for our investors.”

She also revealed that CCT had been lobbying for the Golden Shoe Car Park to be granted OPP - but as the integrated hawker centre is owned by the Singapore Land Authority, this would be “trickier” and take more time.

Market Street Car Park May Convert To $1.5b Office Site

Source : The Straits Times, Jan 4, 2008

Move comes as concerns rise over Raffles Place’s parking crunch.

MORE premium office space may soon be offered in Raffles Place - at the expense of fewer parking lots in an area where drivers often battle to find a spot to park.

Property trust CapitaCommercial Trust (CCT) yesterday announced plans to redevelop Market Street Car Park (MSCP) into a $1.5 billion office building.

CHANGE IN THE WORKS: The Market Street Car Park opened in 1964 and was Singapore's first multi-storey carpark. The eight-storey building, which offers 704 parking lots and 46 shop units on the first two levels, is one of the largest carparks in the Central Business District. It was recently refurbished for $14 million.

CCT chief executive Lynette Leong said outline planning permission from the Urban Redevelopment Authority came ‘in the last few weeks’.

This is on condition that the property will be developed for office use only, with retail space on the first storey, Ms Leong said.

CCT estimates the total cost to be $1 billion to $1.5 billion, depending on the development charge.

‘The decision to proceed is subject to its financial viability,’ said Ms Leong.

CCT is looking into a joint venture or a possible business trust to finance the investment, she added.

MSCP, with a land area of 5,478 sq m, opened in 1964 and was Singapore’s first multi-storey carpark.

The eight-storey building, which offers 704 parking lots and 46 shop units on the first two levels, is one of the largest carparks in the Central Business District (CBD).

It was recently refurbished for $14 million.

This is the first time a property trust is redeveloping a carpark into an office space, said CCT.

The move comes amid concerns that Raffles Place’s carpark crunch is worsening.

Early last year, it was reported that about 2,000 lots in the CBD area could disappear in the next few years, as development plans took shape.

Newer buildings tend to have fewer lots due to the higher revenue that office space generates.

A CCT spokesman confirmed that the new office building would not offer as many lots as MSCP.

If the project goes ahead, CCT will begin construction by year-end or early 2009 and complete the building within four years.

Ms Leong said CCT was preparing to give notice to its tenants and season-parking holders, pending project approval.

CCT said the new tower would be ‘as tall as One Raffles Quay’, with a gross floor area of 850,000 sq ft and a maximum plot ratio of 14.49. It expects to achieve monthly rentals of $12 to $14 per sq ft.

The office sector has had a bull run, with Grade A office rents up 96 per cent, CB Richard Ellis said recently. There are concerns, however, that Singapore will face a supply glut from 2010.

Still, analysts that The Straits Times spoke to were bullish about the project.

If Singapore’s economy keeps doing well, the market will be able to absorb this much supply, said Mr Ku Swee Yong, director of marketing and business development at Savills Singapore.

‘But the carpark crunch will be even worse now.’

Mr Colin Tan, Chesterton International’s head of research, said while the project could be ‘a bit late,…in the long term, this is a sound investment due to its prime location and proximity to the new Marina Bay Financial Centre’.

Goodman Group Set To Manage JTC Reit

Source : The Business Times, January 04, 2008

JTC Corporation is set to appoint Australian-listed property and wealth manag ement company Goodman Group to manage its upcoming real estate investment trust (Reit), sources say.

The news follows last month's report in the Austral ian Financial Review that Goodman Group beat competitors - including Singapore's CapitaLand an d Mapletree Investments - to become the manager of Singapore government-owned JT C Corporation's upcoming trust.

Other names in the running included Chall enger Financial Services Group and CapitaLand subsidiary Australand, both of which are listed on the Australian stock exchange, the report said.

The report als o said that UBS, Goldman Sachs and DBS are in line to underwrite the offer.

< p> Industry players said the Reit's initial property portfolio is expected to be worth more than $1 billion.

When contacted by BT, JTC said that the selection is sti ll ongoing. JTC said in July 2007 that it would announce the winning manager and underwriter by the end of that year.

'We are in the process of selecting the Reit man ager and we will give updates at the appropriate time,' said a JTC spokeswoman.< /p>

Goodman already has substantial assets in Asia, including a 40 per cent s take in the manager of Singapore-listed Ascendas Real Estate Investment Trust (A-Reit).

< p> Goodman is looking to expand in the region, market watchers have said. In mid -2007, Macquarie and Goodman ended a partnership that began in 2001. Macquarie p aid more than A$730 million (S$922.4 million) to divest its investment in Goodman.

JTC, Singapore's biggest industrial landlord, said last July that it will divest som e $1.4 billion-$1.6 billion worth of assets and focus its attention on strategic developments with a longer payback time.

The bulk of the assets to be sold will be pum ped into a Reit, chief executive Ow Foong Pheng told reporters at the time.

< p> JTC also said at the same time that it has short-listed seven Reit managers a nd would announce the winning manager by the end of 2007. The Reit was scheduled to be li sted on the Singapore Exchange (SGX) in the second quarter of this year.

A-Reit, Singapore's second Reit, was set up by JTC unit Ascendas five years ago. The trust has since expanded by acquiring industrial buildings.

Condo-Like Flats In Boon Keng Going On Sale

Source : The Strait Times, Jan 4, 2008

Hot demand expected for second lot of public housing offered by private developers

A FLURRY of applications is expected for the latest batch of flats that look like condominiums but sell for just about two-thirds the price of condo units in the same area.

The second batch of public housing being offered by private developers goes on sale tomorrow, one year after the first lot was launched to overwhelming demand.

Like the first project in Tampines, the latest 714-unit project in Boon Keng, to be ready in September 2011, offers condo-like trappings such as timber flooring, built-in wardrobes and kitchen cabinets, and air-conditioning.

In fact, some boast features condo owners would love.

Some flats will have wall-to-wall balconies in living rooms and master bedrooms that look out onto the Kallang River and beyond.

Large bay windows will extend to all bedrooms - and even the shower stalls in the bathrooms. And lift lobbies will come equipped with a card access system.

Giving a sneak peak of showflats at the development called City View @ Boon Keng yesterday, developer Hoi Hup Sunway Development said it is offering 72 three-room flats, 168 four-room flats, and 474 five-room flats - housed in three 40-storey blocks.

Under this programme, private developers are given a free rein over the design, pricing and sale of the homes, as long as they adhere to the general rules of public housing.

For the Boon Keng development, three-room flats units are priced at $349,000 to $394,000; four-room units at $523,000 to $597,000; five-room units at $536,000 to $727,000. On average, they are going for $520 psf.

Their prices are wedged between those of resale Housing Board flats and private 99-year leasehold condos in the same area.

A five-room, 11-year-old HDB flat near the project site changed hands for $545,000 in November, for example, while units at private condo Kerrisdale in Sturdee Road sold for $731 psf to $786 psf late last year.

Property agency chief Chris Koh, from Dennis Wee Properties, expects demand to be good. He said that the prices are 'very reasonable', considering the flats are near central Singapore and owners of HDB flats in the area are asking for $50,000 to $70,000 above the valuation of their properties, even if they are more than 10 years old.

Potential buyers are also watching closely. Hoi Hup Sunway has received about 1,000 inquiries in the past month. Those who sign up for a unit face a computer ballot to decide who books a unit.

The 616-unit project in Tampines attracted nearly 6,000 applications - just before the property market recorded a huge upswing. Last month, 316 surplus flats offered by the HDB in the outlying towns of Hougang, Sengkang and Punggol attracted a staggering 5,147 applications.

Competition for these Boon Keng flats is expected to be intense. Businesswoman Serene Sia, 38, wants a unit 'badly' as she thinks private property is out of her reach. Asked what she thought her chances would be, she said: 'I seriously don't know.'

Those interested can apply online at www.hoihup.com from 9am tomorrow. Applications close on Jan 16.

Other similar developments - which could house about 2,500 more units - are being planned for Ang Mo Kio, Bishan, Toa Payoh, Simei and Bedok.

But Hoi Hup Sunway spokesman Wong Chee Herng does not think it will dent the response to his project. 'The demand is still very much greater than supply,' he said.

--------------------------------------------------------------------------------

Design, build, sell

UNDER the Design, Build and Sell Scheme, private developers are free to design, price and sell the flats as long as they work within the confines of public housing rules.
This means that buyers must be families earning not more than $8,000 a month. They have to meet an ethnic quota. The development cannot be fenced off and its common facilities must be easy to maintain. Swimming pools, therefore, are not allowed.

Keppel Bay Bridge: A New Waterfront Icon

Source : The Business Times,January 4, 2008

SINGAPORE'S newest bridge was officially opened by President SR Nathan yesterday evening to the accompaniment of a spectacular pyrotechnics show. It is the first public bridge to be built by a private developer and will be handed over to the Land Transport Authority.

Sparkling beauty: Pyrotechnics lit up the sky yesterday evening to mark the official opening of Keppel Bay Bridge. Designed by DCA Architects and TY Lin International, the bridge cost $30 million to build and forms part of the 32-hectare waterfront living precinct of Keppel Bay

Spanning 250 metres, Keppel Bay Bridge is the longest cable-stayed bridge locally.

About 300 guests attended the grand lighting-up ceremony. The bridge links Marina at Keppel Bay and future homes on the private Keppel Island to the mainland.

Designed by DCA Architects and TY Lin International, the bridge cost $30 million to build and forms part of the 32-hectare waterfront living precinct of Keppel Bay.

Programmable special effects lighting allow the pylon and stay cables to be spotlit, and the dynamic LED lights along the span of the bridge can be changed for different occasions.

To commemorate the historical significance of Keppel Harbour, informative plaques are placed along both sides of the bridge.

These plaques feature images and nuggets of information on places of historical significance such as Sentosa, Labrador Park, Mount Faber and the former Keppel Shipyard.

Circle Line Key To Higher Plot Ratios: JLL

Source : The Business Times, January 4, 2008

Study looks at how Master Plan 2008 could change landscape, usher in new initiatives

When Master Plan 2008 is unveiled sometime this year, certain areas are likely to see an increase in plot ratios. A study by Jones Lang LaSalle has tried to zero in on which areas could be allowed more intensive use of land.



















Its conclusion: Look out for undeveloped state sites within walking distance of Circle Line MRT stations, particularly those that intersect with existing MRT lines. They are the top candidates for higher plot ratios.

The property consulting group specifically highlighted the areas near Paya Lebar MRT Station, Buona Vista MRT Station (which will see the Circle Line intersecting with the existing East-West Line) and HarbourFront MRT Station (Circle Line crosses North-East Line). Also, while Buona Vista is shaping into an R&D/commercial hub, the HarbourFront district's redevelopment potential is increasing because of projects in Sentosa and Keppel Bay nearby.

Another promising area is in the vicinity of the Circle Line Station at Telok Blangah. Although it does not intersect with an existing MRT line, it will benefit from a spillover from the ongoing redevelopment in Sentosa and HarbourFront.

JLL does not see major, across-the-board increases in plot ratios in MP 2008. But it argues that intensifying land use for undeveloped state plots along these stations will spread social benefits from the government's investment in the Circle Line to more people and also improve accessibility.

Raising plot ratios (ratio of maximum potential gross floor area to land area) will also address the issue of rising demand for Singapore's properties and prevent overcrowding in specific areas such as the central and CBD regions.

Although the Circle Line also touches locations near Dhoby Ghaut and Bishan MRT stations, JLL excludes them as these areas already have high plot ratios.

The study also suggests that white sites - with a range of uses and change in use mix allowed - will be more readily available islandwide instead of being confined largely to the CBD. 'It further promotes creativity in future projects,' says JLL's head of research (South-east Asia) Chua Yang Liang.

He also sees the Urban Redevelopment Authority introducing more mixed use, rather than traditional single-use zones, to 'further provide the flexibility needed to accommodate changing demand patterns as a result of shifting demographics'. MP 2008 could also be more tolerant of non-traditional types of residences. For instance, obsolete industrial buildings could be re-modelled along the lines of New York's Manhattan lofts. 'This will accommodate shifting market forces and tastes,' Dr Chua argues.

JLL also suggests that URA may realign traditional industrial estates to support demand needs of the knowledge-based economy or rezone them for other uses. 'For example, industrial areas within housing estates such as those found in Jalan Pemimpin could potentially be rezoned to residential or possibly an education hub,' it said. After all, the area is near Raffles Institution and Raffles Junior College.

MP 2008 could also extend the 'work, live and play' concept beyond Marina Bay into the suburbs as Singapore cannot live by its business image alone, JLL predicts. 'We can expect to see more areas designed for cultural developments, for example, the civic, cultural and retail complex in Buona Vista, and new conservation areas that serve to retain the fabric of the collective memory,' Dr Chua said.

JLL also expects to see many more recreational zones across Singapore. 'The likes of the recent Punggol announcement will be more common,' the study said.

On the back of Sentosa Cove's success, JLL expects other islets around Singapore like Southern Islands and Pulau Ubin to be put for waterfront residential use.

In the existing CBD, JLL suggests that Shenton Way will see a further shift towards a mixed-use (including residential) district, once the current office supply crunch eases. In May last year, URA announced a temporary ban on conversion of office use in the central area, including the CBD, to other uses until end-2009.

Last year, the government identified Jurong East and Paya Lebar for development into business hubs. Dr Chua says land around Paya Lebar MRT Station will be intensified in line with government plans to transform it into a sub-regional centre and that the location will be ideal for cost-conscious office tenants.

However, Dr Chua suggests that the area around Jurong East MRT Station is more suited for research and development because of its proximity to universities, the Science Park and one-north rather than as an alternative backoffice hub along the lines of Tampines.

National Development Minister Mah Bow Tan last year also ruled out massive, across-the-board islandwide increases in plot ratios for MP 2008 to cope with a higher population target of 6.5 million. The Master Plan, a detailed land use plan that guides Singapore's medium-term physical development, is reviewed every five years.

Market St Car Park May Be Redeveloped Into Offices

Source : The Business Times, January 4, 2008

The total project cost could range from $1 billion to $1.5 billion

CAPITACOMMERCIAL Trust (CCT) has been granted outline planning permission by the Urban Redevelopment Authority (URA) to redevelop Market Street Car Park into an office tower that could cost up to $1.5 billion.

Lynette Leong, chief executive of CCT's manager CapitaCommercial Trust Management Ltd, said the viability of the project would depend on the development premium to be paid for changing the use of the 58,964 sq ft site from a car park to an office tower.

The premium will depend on the enhancement in land value as assessed by the chief valuer, which CCT expects to be made known by May.

Ms Leong said the outline permission is subject to the payment of 100 per cent of the enhancement in land value, instead of the standard 70 per cent, as well as there being no extension of the present lease, which runs to 2073.

Assuming a land value for 99-year commercial land of $900 psf per gross floor area, and adjusting for the shorter leasehold of the site, CCT estimates the land and development premium to be $800 psf.

Including construction and other costs, the project cost would be $1.25 billion.

But CCT said that depending on the development premium, the total project cost could range from $1 billion to $1.5 billion.

Assuming that necessary approvals are granted, a new office tower with an estimated gross floor area of 850,000 sq ft could be built within 36 or 40 months. Ms Leong said that existing tenants, who only moved into Market Street Car Park in end-2006 after a $14 million renovation, will be given notice soon.

Currently, there are 704 car parking spaces, 28 tenants, and 21,205 sq ft of net lettable area. As at June 1, it was valued at $59 million.

Saying that CCT has no plans to divest the office tower if built, Ms Leong added: 'When completed, the property would augment the core assets in CCT's portfolio which currently includes landmark office buildings such as Capital Tower and 6 Battery Road.'

She said she was bullish on the office sector. While she did not reveal estimated yields for the development, she said that it was looking at projected rents of $12-$14 psf per month.

The outline planning consent comes years after CCT parent CapitaLand first mooted plans to redevelop both Market Street Car Park and Golden Shoe Car Park.

It was reported that the URA first rejected redevelopment plans for the car parks as earlier as in the mid-1990s when the properties belonged to the now defunct Pidemco.

Ms Leong said there are currently no plans to redevelop Golden Shoe Car Park, although it has also applied for a change of use for the site.

Prices Of HDB Resale Flats May Go Up By 10% This Year

Source : Channel NewsAsia, 03 January 2008

Market watchers said HDB resale prices could go up by as much as 10 percent this year and this would bring prices close to their 1996 peak.

They said even though the HDB is releasing more units into the market, demand for resale units is likely to remain strong.

HDB resale prices picked up in the second half of last year, bolstered by a 30 percent jump in private residential prices islandwide.

By the end of last year, HDB resale flats were fetching 17 percent more on average.

Some real estate agents said they expect the uptrend to continue.

Mohamed Ismail, CEO of PropNex Corporation Pte Ltd, said: "The HDB prices went up by over 6 percent in Q4 2007. This momentum will carry forward at least in the next two quarters because when people pay high COV (cash over valuation), it cannot suddenly come to a halt in January and February."

Some market watchers are looking for a 5 to 7 percent price increase this year, although there are others who said 10 percent is possible.

Property consultants said the latest design-and-build flats announced by HDB in Simei, Toa Payoh and Bedok will not make much difference to the level of demand for resale units.

"There's still a shortfall of readily available houses. Even though HDB has come out to ease the situation with the build-to-order and DBSS (Design, Build and Sell Scheme), these houses are not immediately available until the next three years or so. Therefore, the demand for retail will still be strong," said Mr Ismail.

Consultants noted that homebuyers are paying S$20,000 above valuation for good HDB units in the outlying areas, and S$50,000 to S$70,000 for central districts.

Higher valuation plus the increase in transactions last year meant bonus takings for property agents.

PropNex said out of its 7,000 agents, three of them earned over a million dollars last year and about 100 agents earned over S$200,000 each – a record for the firm.

Property agents said they expect sales to remain brisk for the first half of this year due to pent-up demand from the last quarter. - CNA/so

Economists Unfazed By Weaker Quarterly Growth

Source : The Straits Times, Jan 03, 2008

Only 1 in 6 polled revises first-quarter estimates despite latest data being weaker than expected

ANALYSTS are upbeat about the economy's outlook in the current first quarter despite some weaker-than-expected economic figures yesterday.










In fact, out of six analysts polled by The Straits Times, only one was revising her first-quarter estimate.

The rest are sticking to their guns despite the lower-than-forecast advance estimates for Singapore's fourth-quarter growth.

Many said a key factor behind the weaker results last quarter was a cyclical slowdown in the pharmaceutical sector, which meant lower manufacturing contributions to economic growth.

This was more a reflection of the industry's volatility and less a sign of weakening demand. Also, continued strong performances from other sectors, such as services and construction, will buoy the economy, they said.

The Ministry of Trade and Industry yesterday released economic growth estimates for the fourth quarter of 6 per cent on a year-on-year basis, after a 9 per cent gain in the third quarter.

On a quarter-on-quarter seasonally adjusted annualised basis, economic output actually fell by 3.2 per cent compared with a 4.4 per cent gain a quarter earlier.

This translates to a 7.5 per cent economic growth for the full year, which falls at the bottom end of the official government forecast range of 7.5 per cent to 8 per cent full-year growth.

Advance estimates are computed largely from data from the first two months of the quarter and are subject to revision when more comprehensive data becomes available.

Of the six analysts polled, only Ms Selena Ling, an economist with OCBC, lowered her first-quarter forecast to 5.8 per cent from 6.2 per cent after reviewing the advance fourth-

quarter estimates. She also lowered her full-year 2008 estimates by half a percentage point to 6 per cent.

A key financial indicator of how the first quarter will perform is if the notoriously volatile pharmaceutical sector remains suppressed this year or bounces back rapidly, she said.

However, United Overseas Bank economist Ho Woei Chen believes there is no need to panic.

Although surprised at the weaker numbers, she said: 'It's down to the routine shutdown of plants in the pharmaceutical industry, which is part of the production process.

'The sector tends to be inelastic to global business cycles, and I expect the biomedical industry to do well in the first half of this year and offset any potential slowdown in the electronics sector.'

She maintained her first-quarter estimate of 5.5 per cent and expected full-year gross domestic product to grow by 6.3 per cent.

The construction sector is expected to benefit from work on two integrated resorts and the Marina Bay Financial Centre, which are moving into the higher-value stages of development, Ms Ho added.

'Services and tourism will also receive a boost when attractions and events, such as the Formula 1 race, come to town,' she said.

When asked if fears of a technical recession - when the economy contracts for two quarters in a row - are well-founded, Action Economics economist David Cohen said it was not an impossibility.

'We have to wait and see how things play out in the rest of the world. But the unemployment rate is at its lowest in almost a dozen years, so any contraction would literally be 'technical' because it is obviously not a downturn here in Singapore.'

He also said he expected the latest numbers to encourage the Monetary Authority of Singapore (MAS) to exercise patience when it came to adopting an aggressive monetary policy to handle burgeoning inflation.

A stronger Singapore dollar will help reduce prices of imported goods, but will also make exports more costly and less competitive. Singapore's latest November consumer price index surged 4.2 per cent - a 25-year high.

Mr Cohen said: 'The moderating growth is likely to encourage the central bank to exercise patience when it comes to steepening currency appreciation to handle inflation.

'Any pickup in inflation this year could also be attributed to the hike in the goods and services tax, which cannot be dealt with through monetary policy anyway.'

Ms Ling agreed, saying: 'The moderating growth should dampen speculation that the MAS will shift to a more aggressive monetary policy before its policy review in April.'