Tuesday, April 1, 2008

HDB And Private Property Prices Up In Q1 Flash Estimates

Source : Channel NewsAsia, 1 April 2008

Private residential property prices in Singapore rose 4.2 percent in the first quarter this year, according to the latest preliminary estimates from the Urban Redevelopment Authority.

The pace was slower than the 6.8 percent clip recorded in the fourth quarter of last year.

On a quarter-on-quarter basis, the biggest rise in property prices for non-landed properties came from outside central region - up 4.8 percent in the January-March quarter compared with the October-December period.


Related Video - http://tinyurl.com/2jfdug

Properties in the prime districts of 9, 10 and 11, as well as the downtown area and Sentosa, rose 4.4 percent on quarter.

Prices in the rest of the central region increased 3.9 percent in the first quarter from the previous three months.

The preliminary estimates were based on transaction prices given in caveats lodged during the first 10 weeks of the quarter, as well as the number of new units sold.

Meantime, the Housing and Development Board (HDB) said prices of HDB resale flats rose 3.4 percent in the January to March period over the previous three months. This was lower than the 5.7 percent increase in the fourth quarter.

Both the URA and HDB will release final figures at the end of April.

The URA said that as at 4th Quarter 2007, there are about 64,900 private residential units in the pipeline, of which about 56,100 new private housing units are expected to be completed between 2008 and 2011.

There are also some 38,300 units that have yet to be put on sale by developers.

As for the supply of government flats, the HDB said it had made available in the first quarter of this year some 1,100 new flats in two Build-To-Order (BTO) projects in Punggol and Yishun.

It said that depending on demand, there could be another 5,000 new BTO flats in towns such as Punggol, Sengkang, Woodlands and Bukit Panjang.

The total planned BTO supply of 6,100 new flats for January till September 2008 will surpass the annual BTO flat supply in 2007 and 2006.

This new supply of flats will be in addition to those offered under Balloting Exercises for surplus replacement SERS and other flats, as well as the planned release of three Design-and-Build sites in Simei, Toa Payoh and Bedok with some 1,500 flats in the first half of 2008. - CNA/sf

Home Office Scheme Period Extended

Source : The Business Times, April 1, 2008

THE Home Office Scheme (HOS), introduced in June 2003 with approval periods of three years, has been revised to allow longer approval of five years.

In a joint statement yesterday, the Housing and Development Board (HDB) and Urban Redevelopment Authority (URA) also said 20,600 HOS applications have been approved so far. Of these, 19,500 are for HDB flats and 1,100 for private properties.

The applications are mainly for IT consultancy, Web design, real estate services and advertising. A report in March 2007 put the number of people using HOS at about 21,000.

While there is no significant change in the active number, it is understood that some ventures that started off under HOS have moved on to commercial premises after their scope expanded beyond HOS.

One former HOS user is Chia Kok Tiong, who applied for HOS to set up his 3D-computer visualisation business called VIImaging in his four-room HDB flat in Serangoon North.

After about eight months, he found that business had grown to a point where he needed to employ three staff. He has since moved to a 600-sq-ft office premises on French Road for which he pays $1,500 per month. ‘It looks more professional,’ he said. HOS is seen as a possible launch pad for SMEs.

Lawrence Leow, president of the Association of Small and Medium Enterprises, said: ‘With HOS, entrepreneurs are able to save on the cost of setting up office space, which often forms the bulk of business costs. HOS is, therefore, tremendously helpful in encouraging start-ups and promoting entrepreneurship in Singapore.

‘I believe that extending the approval periods from three to five years will help entice more individuals to set up businesses.’

Asia’s Property Market Shines

Source : The Business Times, April 1, 2008

Global investors are showing a lot of interest in Asia because of the region’s strong economic fundamentals, reports UMA SHANKARI

THE future for investment markets across the world is mixed, but Asia should emerge from the current turmoil as the most attractive location, property analysts say.

Coming off the sub-prime crisis in the US, global investors are showing a lot of interest in Asia because of the region’s strong economic fundamentals and problems in other markets.

According to Donald Han, managing director of Cushman & Wakefield (C&W), 20-30 per cent of the investors looking at Asia have dropped off since the sub-prime crisis - but the rest are still interested.

‘If there were 10 investors looking at an allocation of assets into Asia before the sub-prime problem, now there are six or seven still looking,’ he said.

Ong Choon Fah, executive director and regional head of consulting and research at property firm DTZ, agrees.

‘Concern over the US and global economies, as well as the credit squeeze, will continue to impact sentiment in the investment market,’ she said. ‘But prospects remain cautiously optimistic as institutional funds look towards Asia for growth opportunities.’

Citigroup economists Huang Yiping and Chua Hak Bin pointed out similarly - in a recent note - that capital inflows into Asia could increase because of the region’s robust fundamentals and resilient growth.

This growth is set to continue. Asian Development Bank president Haruhiko Kuroda said recently he sees Asia’s growth overall growth moderating to only 7.5-8 per cent this year, from 8-8.5 per cent last year.

But the difficulty of finding good stock to invest in, combined with different regulatory and property rights regimes in different countries, remains a challenge for investors looking at Asia, a recent report from C&W noted.

‘The majority of office stock in most Asia countries is owner-occupied,’ it said. ‘Compared with London and New York, the proportion of investment stock is low. Even Tokyo, the largest market in Asia, is only one third the size of London or New York by floor area.’

Development opportunities in Asia also vary greatly from country to country, and regulations governing foreign investment can change at short notice. China, for example, restricted entry to its real estate market in June 2007 in a bid to avoid hot foreign money creating bubbles in its property market.

Foreign investors now have to establish a real estate company before they can invest in a China project. Establishment, however, is heavily restricted, and investors cannot bypass regulations by acquiring or controlling a domestic real estate company.

But difficulties for foreigners in developing markets may mean increasing interest in Singapore and Hong Kong, which are perceived as easier Asian cities to invest in, C&W believes. Relatively transparent property rights and land registration systems - compared with other Asian cities - mean lower risk.

However, there is a downside of certain classes of investor - especially those with high gearing - falling by the wayside in amid tight credit markets.

For example, the lending squeeze has meant that traditional buyers such as real estate investment trusts (Reits) are holding off.

Reit managers in Singapore and the rest of the world have been growing their portfolios by using cheap credit.

But now, amid a volatile climate and liquidity squeeze, they are finding it more difficult to raise new funds by way of debt or equity, according to DMG & Partners analysts Terence Wong and Brandon Lee.

‘Most notably, rising capital values of properties and higher costs of capital cannot only erode yields, but also lead to dilutive acquisitions,’ they said in a recent note.

C&W’s Mr Han reckons the pace of collective sales will also slow. ‘The en bloc market will be a little quieter this year. It is yet to be seen if vendors will become more reasonable when it comes to pricing their properties, which will make them more attractive to buyers,’ he said.

This could have an significant impact, especially in Singapore, where investment sales in 2007 were boosted by active Reit-related acquisitions and buoyant collective sales in the first half of the year.

‘Investment sales in Singapore and Malaysia increased, driven by strong interest for income-generating buildings and the listing of several new Reits in 2007,’ said DTZ. ‘They were also boosted by strong collective sale of residential properties in Singapore during the first half of 2007.’

Although sentiment has turned, there are still buyers in the market. ‘In the US, there are mainly sellers, not buyers,’ said C&W’s Mr Han. ‘Here, there are still buyers looking to put money into Asia, as the potential for growth remains.’

In particular, investors with stable income - such as pension funds - are likely to be keen on Asia, analysts say.

Strong fundamentals mean the investment market will continue to do well in 2008, they believe.

For example, strong bidding at recent government sales of mass-market residential sites in Singapore shows there is still demand, Mr Han notes.

And DTZ believes investors in Singapore are likely to look towards non-traditional asset classes as yields of ‘core’ and ‘core-plus’ investment assets continue to compress.

Rolling Times For Hotels And Tourism

Source : The Business Times, April 1, 2008

The sector is set to offer exciting products and experiences over the next few years, write CHEE HOK YEAN and DOREEN GOH

SINGAPORE’S tourism and hotel industry turned in a stellar performance in 2007, with record levels in visitor arrivals and trading performance. Total international arrivals crossed the 10-million mark in 2007, rising 5.4 per cent year on year to 10.3 million visitors. In tandem with the record visitor volume, hotels reported higher revenue per available room (RevPAR). In the wake of limited supply, this RevPAR growth was driven almost entirely by the growth in average daily rates (ADR).

Luxurious stay: A room at The St. Regis Singapore (above), a luxury hotel that soft-opened in December 2007, and the Crowne Plaza Changi Airport hotel (next), which will open in May
According to Jones Lang LaSalle Hotels Research, Singapore’s five-star hotel market ended the year with a high average occupancy of 81.4 per cent and ADR of $276. This translates into a gain of around two percentage points in average occupancy and a significant 16.5 per cent growth in ADR from 2006. Consequently, RevPAR rose by around 19 per cent to $224 over the same period.

The fundamentals are strong. Singapore boosted its airport capacity and status as an important regional air hub with the opening of a third passenger terminal in early 2008. A line-up of prominent events and new attractions can also be expected over the next few years - after the recently held Singapore Airshow and the recent opening of Singapore Flyer, as well as the Formula One Grand Prix to be held later this year. Singapore will see the opening of the Marina Bay Sands integrated resort (IR) in 2009. Come 2010, the republic will also have its own Universal Studios theme park within the Resorts World Sentosa IR and a new passenger cruise terminal at Marina South. More recently, the republic won the bid to host the inaugural Youth Olympic Games 2010.

In the light of these tourism developments and the anticipated corresponding growth in visitor numbers, the hotel sector should see healthy demand. The continued release of hotel development sites by the government to address a potential shortfall in room supply will provide opportunities for aspiring hotel owners and investors to join the bandwagon, while existing players could strengthen their foothold.














The introduction of new brands and new product concepts in new locations will also add variety to the Singapore hotel industry. Catering to different market segments and travellers’ needs, these new developments will help to rejuvenate the existing stock of hotels in Singapore. Examples include the 299-key St. Regis, a luxury hotel which soft opened in December 2007.

In May, Singapore’s new Crowne Plaza Changi Airport hotel will open at Terminal 3. A new Singapore farm hotel will also be operational in Lim Chu Kang by September, while the Singapore Recreation Club has plans to add about 35 guest rooms on its third-floor terraces in 2009. Proposed plans to add a hotel at the Laguna National Golf & Country Club and Jurong Country Club are also underway.

Expected competition

Stiffer competition is expected with the opening of new hotels over the next few years. While we believe this supply can be absorbed, greater product differentiation in terms of branding and targeted markets will be required.

Increasing sophistication among travellers seeking a stay experience rather than just a roof over their heads means that hotels need to constantly innovate and improve their physical product and service offerings. Older hotels that have not undergone any refurbishments recently will therefore feel more pressure to do so when this new supply comes on stream.

The supply influx over the next few years will also create challenges in staffing and manpower needs. Talent retention and management should be accorded greater priority as the mobility of the workforce increases with the availability of new employment opportunities both within Singapore and elsewhere in the region.

It is also important to note that while sentiment is currently looking up in the hotel industry, it is always prudent to be prepared for less favourable trading conditions as markets move in cycles. This is important as the highly volatile nature of the tourism and hotel industry means that often, the pain inflicted by any external shocks (for example 9/11, Sars, tsunami, a political unrest) are felt almost instantaneously. This will be reflected in falling visitor numbers and occupancy levels. As the occurrence of these external shocks is usually unpredictable, business contingency plans should be in place to ride out these challenging times.

Continuing investments

Overall, prospects for the Singapore hotel industry remain upbeat over the next few years, barring any external shocks.

The Singapore government will continue to invest heavily in tourism infrastructure, focusing on the meetings and conventions market and medical and cruise tourism to attain its target of 17 million visitors by 2015. Strong growth in Asia, coupled with Singapore’s standing as a key regional financial and business hub, as well as the introduction of new tourism generators such as the development of the two IRs will drive visitor arrivals to new highs over the next few years. This will form a demand base for the nearly 20,000 rooms in the supply pipeline, including potential rooms that could be generated from the sale of sites under the Government Land Sales programme.

The upcoming supply will also help to rejuvenate the Singapore hotel market, providing travellers with a more diverse and interesting array of accommodation options and stay experiences.

In the medium to longer term, the Singapore market could also witness the potential entry of other accommodation concepts such as condotels or condo hotels, which involves the purchase of a right of ownership of the unit, that is, strata sub-division. While condotels or condo hotels are established in the United States, this concept is relatively new in Asia and yet to establish a presence in Singapore. Given its strata-title nature, however, its feasibility will hinge on the regulatory framework.

All in all, the transformation of the Singapore tourism and hotel industry is on track and visitors can look forward to more exciting products and experiences over the next few years.

Chee Hok Yean is executive vice-president and head of corporate advisory, Asia, Jones Lang LaSalle Hotels, and Doreen Goh is associate, Jones Lang LaSalle Hotels

CapLand Revamp To Focus On China, S’pore

Source : The Business Times, April 1, 2008

CAPITALAND chief executive Liew Mun Leong will take a more direct role in the company’s China outfit and Singapore residential business as the developer looks to those segments for growth.

Under changes announced yesterday, Lim Ming Yan, chief executive of the company’s China business, and Patricia Chia, head of its Singapore residential unit, will report directly to Mr Liew from today.

With this ‘flattened organisational structure’, the position of chief executive of CapitaLand Residential is no longer necessary, the company said. With this in mind, Lui Chong Chee, to whom Mr Lim and Ms Chia had reported, will become head of financial services.

Pua Seck Guan, chief executive of CapitaLand’s retail arm, will relinquish his role as co-head of the financial services operations and focus on expanding the group’s retail mall business in Singapore and abroad.

‘It’s a reflection of how quickly the business of China and Singapore homes have grown and how important they have become,’ Vikrant Pandey, an analyst with UOB Kay Hian, told Bloomberg. ‘I view this as a positive signal in the sense that they are putting the emphasis on fast-growing segments.’

CapitaLand’s three biggest markets are China, Singapore and Australia. The developer said that China and Singapore will see a marked increase in the value and volume of residential units to be built over the next few years.

The company’s China unit also oversees the development of integrated projects like the Raffles City developments in Beijing, Chengdu and Hangzhou in addition to building homes. And in Singapore, CapitaLand manages a landbank with a few large-scale developments in the pipeline.

CapitaLand’s stock closed one cent up at $6.35 yesterday.

Making The City More Dense And Compact

Source : The Business Times, April 1, 2008

Sustainability is about retrofitting a city and allowing for local initiatives, reports MATTHEW PHAN

MALONE-LEE Lai Choo, director of the environmental management programme at the National University of Singapore, is no stranger to city planning. Prior to academic life, she headed the conservation division at the Urban Redevelopment Authority and was deputy director of strategic planning and the Ministry of National Development.

In a paper, Dr Malone-Lee and co-author Chua Yang Liang, head of research (South Asia) at Jones Lang LaSalle, argue that changing circumstances - a growing and ageing population, immigration, wider income gaps and a drive to resource efficiency - will challenge traditional planning frameworks.

One Shenton: A pair of towers in the heart of Singapore's new financial district, One Shenton will feature over 340 apartment units as well as some 5,000 sq ft of retail space. Designed with energy and water efficient devices, its facilities - such as a gym, yoga terrace, gardens and theatrette - are located at intermediate floors

Business Times: In the paper, you say ‘the planning ideology of technical rationality that emphasises economic growth, spatial order and functional efficiency has been the predominant paradigm’ but this top-down approach needs to evolve into one that draws on local community initiatives. What do you mean by local initiatives?

Malone-Lee: We have to go back to incremental and adaptive thinking. Instead of the big-bang approach - of having a big organisation to plan and design the whole solution all the time - we can look at alternative ways - say there are 10 guys, smaller entities, who understood the local problems and work something out in different ways, perhaps not systematically, but the problem could still be solved in the end, with probably more interesting and varied outcomes.

When you break down something big into smaller components, it may seem chaotic, but some order will emerge if your ultimate goals for the country are congruent.

BT: What’s wrong with traditional approaches?

ML: Traditionally we’ve used the ‘predict-and-provide’, ‘more-of-everything’ model when population and the economy grow. New towns on greenfields, the use of undeveloped land, more roads, more shopping centres, etc.

Now, in European cities, people are rediscovering city centres, converting rooftops, moving back. For example, in Berlin, they turned old areas like single-storey houses and bombed-out areas into cluster housing and in the end only added 10 per cent of the required development on greenfield land.

You can already see this type of thinking partly evolving in Singapore’s plans:

In the 1991 Concept Plan, we talked about needing ‘x’ number of Ang Mo Kio’s. In the 2001 Plan, it was not about adding new towns but making familiar places better, and increasing densities.

But Singapore’s urban planners are always hedging. They have not fully embraced the idea of no more new towns on greenfields until all possibilities of development within existing areas have been exhausted.

BT: Higher densities - can Singapore absorb this?

ML: When we argue that the city can be more dense and compact, people usually counter that it is already very crowded. I think the idea is to be more efficient and optimal in our allocation of density.

Maybe, for example, taking things to different levels, like having a multi-layered city with walking on street as well as upper levels, and densely compact activities around public transport nodes.

And connectivity - we’ve never planned a pedestrian-oriented city, so most people drive in, and much of the city land has to be devoted to road space for cars.

But we have a good MRT system. If we improve links to the stations and bus stations with covered footpaths, overhead bridges or underground links, and focus on mobility of people within urban spaces, we would not have that sense of crowdedness.

BT: Presumably this whole movement requires a mindset change?

ML: We live in a planned city. We do not have a random sprouting of land uses. This has its merits as we avoid certain environmental impacts. But sustainability is not just about building a new city such as the Masdar City in Abu Dhabi or eco-cities in China. It is also about retrofitting a city, which is much harder.

We still have opportunities to do something different, particularly at the urban fringes, like Balestier, Whampoa, Lavender or Rochor, which already have mixed uses - opportunities to allow these places to develop their own symbiosis.

Let Greenwich (a New York neighbourhood) develop out of Balestier. As it is, the land use pattern is not pristine, so additional mixed users will not make it worse. These are some areas where you can let local initiatives take off - albeit with minimum regulations to safeguard things like public health and the environment.

BT: What are the hindrances?

ML: Sometimes zoning guidelines hinder local initiatives. Take, for example, the Bollywood farm-cafe run by Ivy Singh-Lim at Lim Chu Kang. If the restaurant is not allowed on zoning grounds, the viability of the farm could be affected.

BT: How could planners address this?

ML: Perhaps finer-grained zoning, rather than traditional zoning with its big chunks of specialised land use.

Integration allows users, for example, within a big area of residential land, to subdivide it into smaller parcels, for schools, restaurants, light industries or a bus interchange, all at close proximity.

Singapore is already doing that in some areas like One-North, where there are many activities - restaurants, research facilities, infocomm offices, creative industries, condominiums - within a small area.

At the building level, you can have many uses within a single complex.

The Pinnacle@Duxton is a good example. The concept is exciting - you don’t need shops on the ground floor and apartments for 30-40 storeys above, but rather have more mid-level decks where you have, for example, a clinic, supermarket, gym or other amenities, so people move less for daily or basic needs.

When a single multi-storey complex has mixed uses, transport is verticalised within the complex, instead of horizontal.

BT: What are your thoughts on malls?

ML: There is a limit to putting in more of the same kind of shopping malls as far as the retail environment is concerned.

However, the tendency is that in time, large developers will go in and buy up many of the fringe areas, especially if they become vibrant. We may need to protect these areas, such as by allocating large sites elsewhere or having guidelines to keep the developments small, say in four to six-storey dense clusters.

I am in favour of market forces - our real estate industry can only respond to demand - but the question then is how to provide for the diverse smaller groups or individuals, with more alternatives where rental is more moderate.

BT: Are you suggesting that there should be fewer shopping malls?

ML: A lot can be said for home delivery for daily needs - some supermarkets like Cold Storage have on-line facilities and deliver daily necessities to your doorstep.

Then, if people go to the supermarket just for specialities, developers and retailers will change their planning and marketing methods to focus on these. You might then need less space for the big supermarkets, which consume a lot of energy, and need huge space for car-parks or other attendant uses such as on-site storage.

Smaller shops can then compete by getting more specialised in niche areas. For example, we are beginning to see shops selling organic food, Manuka honey, or wine, in places like Bukit Timah and even HDB estates.

Neighbourhood shops are the most environmentally responsible way to go. The concept is to reduce travel distance and encourage walking.

Makeway View En Bloc Deal Falls Through

Source : The Business Times, April 1, 2008

Development charge higher than expected, says buyer

The $162.8 million collective sale of Makeway View in the Newton area to an associate of Bravo Building Construction has been rescinded.

BT understands that the one per cent of purchase price paid by Bravo so far has been forfeited.

A Bravo spokeswoman told BT yesterday that it had earlier sought payment extensions to ascertain the quantum of development charge (DC) payable.

Confirming the move to rescind the sale, she added: ‘We decided not to proceed with the Makeway deal as the actual DC turned out to be higher than what we had been told. So the breakeven price would end up being much higher than what we expected. That’s why my partner (in the proposed acquisition) decided not to proceed further.’

She confirmed that the initial information about the DC did not come from Knight Frank, which was the marketing agent representing the owners of Makeway View.

The $162.8 million deal for Makeway View announced in early November last year, reflected a unit land price of about $1,583 psf ppr including an estimated $21.5 million DC at the time.

Bravo group was one of the biggest buyers of collective sale sites last year, with deals like Tulip Garden for $516 million. Bravo formed separate associate companies for the acquisitions of the various collective sales sites, as the plan was to have different partners for each project.

A Bravo associate has so far paid the initial 5 per cent deposit on Tulip Garden, amounting to about $25 million.

Tulip Garden’s collective sale was approved by STB in late February and the Bravo associate was supposed to have made the second 5 per cent payment shortly after that. However, it requested for an extension on this till early April.

Bravo’s spokeswoman said her company is seeking a further extension to early June to pay this sum and to also extend the completion deadline for the deal from late May currently to early August.

‘We need time to sort out an agreement with our partner and at the same time, sort out the financing arrangement.’

Tulip Garden’s owners are expected to meet this weekend to decide whether to give the payment extensions. Tulip Garden’s price works out to $1,018 psf per plot ratio price (no DC is payable).

Two En Bloc Sales Delayed; Developer Asks For More Time

Source : The Straits Times, Apr 1, 2008

Bravo’s deals involve Tulip Garden for $516m and Pender Court for $80m

A SMALL property firm that snapped up enough sites to place it among the top en bloc players last year has put off completing two deals while it ties up funding.

Because of the delays, owners at one condo are still waiting to pick up cheques for well over $1 million each. They expected payment in late February but an extension put this back to March and now the due date is late this month.

The payments are pending from Bravo Building Construction, a relatively new firm on the property scene. It bought freehold Pender Court condominium in the Telok Blangah area for $80 million last July and soon after purchased Tulip Garden near Holland Road - also freehold - for $516 million.

But completion of both deals seems to have stalled.

Completion is at the final stage of the sale process and triggers the final payment - usually around 95 per cent of the purchase price - to owners. The remaining 5 per cent is paid when the owner vacates.

These headaches for the owners come amid a slowing market for collective sales. The first quarter this year saw just one relatively small deal, compared with some 25 notched up in the same period last year.

The Tulip Garden transaction is expected to be completed late next month but Bravo has already asked for two postponements - first to July 23 and then Aug 7.

It has also asked for extensions to pay an additional 5 per cent of the purchase price - $25.8 million.

This is a routine payment required once the Strata Titles Board approves a sale. An initial 5 per cent deposit was paid when the sale was done.

The deadline for the second 5 per cent payment was March 13 but Bravo won approval to move it to April 7. Then in mid-March, it again asked to move the date, this time to May 5.

However, before the sale committee could respond to the request, it is understood that Bravo asked again to have the date moved even further back, to June 7.

Tulip Garden sold for about $1,018 per sq ft. It has 164 units comprising 96 flats, 66 maisonettes and two shophouses. Flat owners stand to reap $2.5 million to $4.2 million while maisonette owners will receive about $3.4 million each. The shop units will get about $1.1 million each.

The owners are meeting this weekend to consider Bravo’s requests that the completion date be pushed back to Aug 7 and the deadline for the $25.8 million payment be extended to June 7.

The Pender Court deal is even further behind schedule.

Bravo was supposed to have completed the sale on Feb 25 but had it postponed, initially to around mid-March. It then asked for a further extension to April 24, which has apparently been granted.

Pender Court’s 48 owners should each get $1.6 million or so for their flats, which sold for about $872 psf.

Sources have told The Straits Times that they understand Bravo is committed to completing the two purchases and just needs more time to arrange funding.

Bravo, which was registered in 2002, reportedly picked up $824.5 million worth of en bloc sale deals last year, making it the fourth-largest buyer of en bloc sites.

Bravo’s directors could not be reached for comment, despite numerous telephone calls and a visit to its office in an industrial building in Geylang Road last Friday. A Bravo staff member said that the company directors were away on business.

Applicants Lose Out In Build-To-Order Project

Source : The Straits Times, Apr 1, 2008

I WOULD like to voice my frustration over the unfairness of the recent so-called ‘launch’ of the Jade Spring Phase 2 project. I’m sure many other unsuccessful applicants for Phase 1 feel the same way.

My girlfriend and I applied for Jade Spring Phase 1 (we didn’t know there were two phases when we first applied) in December last year and again received an impossible ballot number of over 1,000 (we have tried balloting a couple of times before). We resigned ourselves to our fate, hoping something better might come our way when we finally get to choose our first flat.

However, Phase 2 of the Jade Spring build-to-order project was announced recently on the HDB website. What infuriates us is that it is open to applications again. What happens to applicants who applied unsuccessfully in December? According to the the friendly HDB helpdesk staff: ‘They have to send in their applications again, as this is a new announcement.’

What does this mean? It means, like all other couples who applied in December, my girlfriend and I must pay $10 (more than the cost of a lottery ticket, by the way, although chances of striking the lottery seem higher) again to take part in another draw. With perhaps another few thousand people, for the same project, on the same site, for which we applied barely three months ago.

My question is, why is this considered a new project? I’m sure there are more than enough applicants in December to fill these flats on offer now.

Even if there aren’t, shouldn’t these applicants be given priority?

Because we paid, because we endured the pain of large ballot numbers and because Phase 2 should not be considered a new project at all. Why do we have to pay to re-enter the balloting system?

Lim Yong Chuan

Five-Year Terms For Home Office Scheme

Source : The Straits Times, Apr 1, 2008

PROPERTY owners can now run businesses from home for five-year periods instead of the previous three-year terms.

The change, which kicked in today, was to ‘provide greater convenience to home office users’ and help them formulate longer-term business plans, said the Housing Board (HDB) and the Urban Redevelopment Authority (URA) yesterday.

The Home Office Scheme was launched in 2003 to encourage entrepreneurship by giving ‘private property and HDB home owners the flexibility to conduct small-scale business from their homes’, the two agencies said.

Applications are granted subject to certain conditions such as having low noise levels and not involving selling physical goods.

Since its introduction, about 21,000 applications have been approved, primarily for companies in IT consulting, Web design, advertising and real estate services. About 95 per cent of successful home office applications are for public housing.

For more information on the scheme, call the HDB service hotline on 1800-225-5432 or the URA’s customer hotline on 6223-4811. Applications and renewals cost $20 each.

URA Launches Hotel Site In Balestier Road

Source : The Business Times, April 1, 2008

Analysts say the land could fetch $350-$470 psf per plot ratio

THE Urban Redevelopment Authority (URA) yesterday put a one-of-a-kind hotel site in Balestier Road on the market.

The 1.77-hectare plot, next to Sun Yat Sen Nanyang Memorial Hall, includes a 0.46-hectare park.

The park will be named Zhongshan Park and the successful developer will have to provide a public event space there.

The land’s proximity to the memorial hall allows a unique hotel project that draws inspiration from Chinese culture and architecture, URA said.

The memorial hall gets about 50,000 visitors a year now, but URA believes the hotel will boost numbers.

Walk in the park: The land's proximity to the memorial hall allows a unique hotel project that draws inspiration from Chinese culture and architecture

The site is the first released by the government where a developer will have to integrate a park.

The site will go to the highest tenderer, but the development proposal will be reviewed by an advisory panel to ‘ensure a well designed development of appropriate quality and standard’, URA said.

The site has a maximum permissible gross floor area (GFA) of 430,556 sq ft.

At least 60 per cent of this must be set aside for hotel and hotel-related use. The rest can be used for commercial and residential purposes.

URA reckons about 650 hotel rooms can be built on the site.

Analysts say the land could fetch $350-$470 per square foot per plot ratio (psf ppr) - which works out to $150.7-$202.4 million.

But the tender could draw fewer than five bids because of the challenges a developer will face, said Nicholas Mak, director of research and consultancy at Knight Frank.

The developer will need a strong concept to maximise the historical theme of the memorial hall, as well as a plan to promote and increase the usage of the park, which is intended to be a selling point for the hotel, Mr Mak said.

The site is not close to an MRT station, he pointed out. And there is an element of uncertainty because the developer’s plans will be reviewed by an independent panel.

The government identified Balestier as a Singapore ‘identity node’ in 2002 because of its heritage value and old world charm.

Balestier Road right now has a mix of conserved shophouses that were built in the 1840s and modern commercial and residential buildings.

The tender for the site closes at noon on July 16.

Sprawling Hotel Site In Balestier Put Up For Sale

Source : The Straits Times, Apr 1, 2008

Among the restrictions: Developer must build a park in the middle of the 1.77ha plot

IT IS hardly one of Singapore’s must-see tourist destinations, but Balestier Road is getting the sort of boost that might make it more visitor-friendly.

The Government yesterday released a sprawling hotel site for sale between Balestier Road and Ah Hood Road, in front of the Sun Yat Sen Nanyang Memorial Hall.

And there is an unprecedented twist: The developer must build and manage a park that takes up a quarter of the land right in the middle of the site.

It has even been named - Zhongshan Park - and its use has also been decided, with the Urban Redevelopment Authority (URA) stating that it wants it to, among other things, ‘enhance the experience for…visitors to the memorial hall’, which draws about 50,000 tourists a year.

Other restrictions, such as a required public event space and outdoor food and beverage or retail outlets in the park, also apply.

The URA said yesterday that the land release provides a ‘great opportunity to develop a unique hotel development’ in an area rich with heritage.

While Balestier is better known for famous eateries and lighting shops, it is also lined with shophouses, many of which have been earmarked for conservation and are a niche tourist attraction.

But the site’s large size and many restrictions mean that there are likely to be few bidders in the public tender, said property experts.

Mr Nicholas Mak, the director of research and consultancy at Knight Frank, expects fewer than five offers, with bids coming in at $150 million to $200 million, pricing it at $350 per sq ft (psf) to $470 psf per plot ratio.

The 1.77ha plot is the biggest hotel site released by the URA since 2001 and is a tad smaller than the Orchard Turn parcel, where the Ion Orchard mall and The Orchard Residences condominium are being built.

Sixty per cent of the site’s total gross floor area of 430,556 sq ft must be used for a hotel, which would yield about 675 rooms - slightly more than the 663 rooms at the Grand Hyatt Singapore in Scotts Road.

The rest of the land can be used for homes, shops, offices or more hotel rooms.

Even the hotel’s design, envisioned as contemporary Chinese, must be approved by a URA advisory panel.

The agency had previously offered a smaller version of the site for sale, without the park. But that plot - half the size of the present one - lingered on the market for a year without any takers before the URA took it off in October last year to combine it with other vacant land nearby.

It is now on the URA’s confirmed list, so it is up for sale regardless of demand.

Consultants noted the challenges inherent in the site.

Bidders will need a strong design concept and a strategy to make the park generate income, said Mr Mak.

He added that the site is not near an MRT station and is in fact ‘on the outskirts of everything’.

But some developers may still be attracted ‘because the challenges may reduce the number of competitors’, Mr Mak said.

‘This site could attract niche developers who are experienced in developing hotels with strong themes.’

Another bright spot is the strong sentiment in the hotel sector, especially for the mid-tier segment, said Ms Tay Huey Ying, director of research and consultancy at Colliers International.

‘The market is quite short of mid-tier hotels, so the prospect is good,’ she said.

The hotels dotting Balestier Road are mainly budget stays, including multiple outlets of Fragrance Hotel and Hotel 81.


Requirements

# Developer must build and manage a park that takes up a quarter of the land.

# Sixty per cent of the site's total gross floor area must be used for a hotel, which would yield about 675 rooms.

# The rest of the land can be used for homes, shops, offices or more hotel rooms.

# The hotel's design must be approved by a URA advisory panel.

# Other restrictions include a required public event space and outdoor food and beverage or retail outlets in the park.

A Revolutionary Idea - A Hotel In A Park

Source : TODAY, Tuesday, April 1, 2008

Balestier Road site will face Sun Yat Sen Memorial Hall

IMAGINE a hotel development in the midst of a public park. Better still, one that blends in with the area’s heritage.

That could soon be a reality following the Urban Redevelopment Authority’s (URA) launch of a land parcel for sale by tender off Balestier Road.

The site, located across the Sun Yat Sen Nanyang Memorial Hall, will be nestled in the 0.46-hectare Zhongshan Park. This means the developer will be able to create a unique garden setting for the hotel, and enhance the experience for hotel guests and visitors to the memorial hall - a national monument in tribute to Dr Sun Yat Sen who led the 1911 Chinese Revolution.

Some 50,000 people visit the memorial hall annually.

The developer is also required to provide space for public events within the park. This, together with outdoor refreshment areas as well as tea pavilions, will help to inject greater vibrancy into the park and the surrounding area.

With excellent frontage along Balestier Road, the plot has a maximum permissible gross floor area of about 40,000sq m, at least 60 per cent of which is meant for a 650-room hotel and hotel-related uses, while the rest is for commercial and residential use.

The tender is an improved version of the previous one that was released in October 2006, but withdrawn a year later. According to a URA spokesman, it was withdrawn to review the land use of the site together with other vacant land in the vicinity.

Mr Nicholas Mak, director of consultancy and research at Knight Frank, said that while it would be unique to tie in the hotel with the area’s heritage, it poses several challenges for the developer and may draw less than five bids.

The future developer will need a strong concept to maximise the historical theme of the memorial hall, he said. The developer will also need a strategy to promote and increase the usage of the park, which is intended to be the selling point for the proposed hotel, or it may be overshadowed by the nearby Toa Payoh Town Park.

However, Mr Mak added that the unique requirements would attract niche developers who are experienced in developing hotels with strong themes.

“As most of the nearby hotels in the area are small, the proposed hotel, if it is targeted at a different market segment, would not face stiff competition when completed,” he said.

In light of the temporary hotel room crunch facing Singapore, property analysts Today spoke to say that while the area’s heritage would be an added bonus, what is really driving the market is the increase in visitors to the island.

“To really make a difference, it would be necessary to preserve the whole Balestier area, and not just selected parts such as the Sun Yat Sen memorial hall,” said at Chesterton International head of research Colin Tan.

Balestier Road has an interesting mix of conservation shophouses built in the 1840s, and modern commercial and residential buildings. The area was selected as one of Singapore’s Identity Nodes in the URA’s Identity Plan in 2002. Since then, about 150 shophouses have been gazetted for conservation.

The area is also known for its local delicacies, such as bak kut teh, sold in shophouses lining the main road.

To enable visitors to enjoy the area better and enhance their walking experience, the URA spokesman said plans are in place to improve the walkways and landscaping along the road.

“From time to time, the Government will, after studying the uniqueness of each area as well as opportunity for developments, consider suitable proposals for distinctive development concepts and these could include preserving the heritage around us,” said the URA spokesman.

The tender will close at 12pm on July 16.

Pinetree Back With Lower En Bloc Asking Price

Source : The Business Times, April 1, 2008

PINETREE Condominium, which was put up for collective sale in September 2007, has been relaunched at a lower indicative price of about $1,700 per square feet per plot ratio (psf ppr). This is about 20 per cent lower than the previous indicative price of $2,100 psf ppr seven months ago. The indicative asking price now is $128 million.

The property is being marketed by Jones Lang LaSalle (JLL). JLL associate director (investments) David Batchelor said: ‘Market conditions have changed.’ But on the residential collective sales market, he added: ‘I believe there is still interest but the market is more cautious.’

The 41,361 sq ft site at Balmoral Park has a 1.6 plot ratio. JLL said the site has the potential to be redeveloped into a residential development with a gross floor area (GFA) of up to 66,178 sq ft, subject to approval. Mr Batchelor said that currently, Pinetree Condominium is built up to a plot ratio of about 1.816 and added that there is no development charge payable.

The potential developer of the Pinetree site also has the opportunity to combine seven adjoining landed properties to form a total potential land area of 81,303 sq ft, yielding a combined GFA of 130,084 sq ft. This combined total will allow a developer to have a project with 60 to 80 apartment units ranging from 1,500 sq ft to 2,000 sq ft.

Mr Batchelor said the seven landed properties have a total indicative price of about $62 million, bringing the total land price to about $190 million. There is also a development charge of $46 million to $47 million for the landed housing properties.

In March 2006, Pinetree was on the market with an indicative price of around $59 million, or $888 psf ppr.

Mapletree Buys Industrial Property From First Engineering Plastics

Source : Channel NewsAsia, 31 March 2008

Mapletree Industrial Fund has bought an industrial property from First Engineering Plastics for nearly S$22 million.

The property comprises three buildings with a gross floor area of 14,387 square metres.

The land, which spans more than 10,000 square metres, is located in the established Woodlands East Industrial Estate.

First Engineering Plastics will lease back the premises following the sale.

The company makes high-precision moulds, plastic components and business machines for high-technology engineering applications.

It also offers an integrated suite of solutions for the hard disk drive, PC peripheral and automotive industries. - CNA/ms

Balestier Road Land Parcel Launched For Sale

Source : Channel NewsAsia, 31 March 2008

A hotel site at Balestier Road has been launched for sale.

The 1.77-hectare plot is one of two hotel sites on the Confirmed List of the Government Land Sales Programme for the first half of this year.

But for the first time, the government has made developing a park a requirement as part of the tender.

Balestier Road is buzzing with activity. And adding to it will be a new contemporary hotel which draws inspiration from Chinese culture.

The site, released for sale by the Urban Redevelopment Authority (URA), will have a maximum permissible gross floor area (GFA) of 39,000 square metres.

60 percent of the area will be for hotel-related uses, with the remaining GFA going towards complementary commercial and residential uses.

Some 0.46 hectares of the plot will also be dedicated to the development of a public park. Named Zhongshan Park, it is envisioned to be the grand entrance of the hotel, leading to the heritage attraction, Sun Yat Sen Nanyang Memorial Hall.

Tan See Ni, Deputy Director, Development, Physical Planning Division, URA, said: "The public event space will be 1,000 square metres in area; it's actually to provide the space for the public, National Heritage Board, even the Sun Yat Sen Memorial Hall, to hold events in the park if they so desire.

"In addition, we also allow some F&B developments within the park, up to 450 square metres of built-up area, and this is to enable some activities to be generated within the park."

URA estimates that the site will yield between 500 and 600 hotel rooms.

Analysts said the project could draw less than five bids due to the unique condition attached to the project. In addition, developers will also need a strong concept to leverage on the historical value of the place and draw visitors to the park.

Nicholas Mak, Director, Knight Frank, said: "The development of this site will also have some challenges, such as the development will be separated by a park in between, and the developer is required to develop and maintain the park, so this may increase the development cost somewhat. The land price will be in the range of S$150 million to the low end of S$200 million."

The URA has met extensively with local and overseas developers to market the site. It also took part in the Mipim real estate convention in Hong Kong last year to showcase the plans to investors from Hong Kong, China and Taiwan.

URA said this project has generated some foreign interest, but it was unable to disclose the names of the companies who came to assess the site.

Tender for the site will close at noon on July 16. The selection of successful bidders will be based on tendered land prices only.

As the project is a key development along Balestier Road, the development proposal for the site will be subject to review by a Design Advisory Panel to ensure it meets quality standards. - CNA/ms

Pinetree Condominium Site Relaunched For Sale By Tender

Source : Channel NewsAsia, 31 March 2008

The freehold Pinetree Condominium site in prime district 10 has been re-launched for sale by tender.

The property in the Balmoral area currently comprises a five-storey block with 50 apartment units.

Consultants Jones Lang LaSalle, which is marketing the site, said it has an indicative asking price of S$128 million.

But if a neighbouring plot, which is presently housing some landed homes, is included, the total price increases to S$190 million.

Overall, the successful developer may be paying S$1,700 per sq ft per plot ratio.

Under the masterplan, the 41,361 sq ft property is zoned for residential use and has a gross plot ratio of up to 1.6. This means the new development can be up to 12 storeys high.

The site could be redeveloped into an exclusive residential development with a gross floor area of 66,178 sq ft, subject to approval. No development charge is payable.

Jones Lang LaSalle also said the land could be combined with an adjoining plot of landed properties to form a total potential land area of 81,303 sq ft. This will yield a combined gross floor area of 130,084 sq ft.

With this combined area, a developer could build 60 to 80 high-end apartment units of between 1,500 and 2,000 sq ft each.

The tender will close on 23 April. - CNA/so

Your Piggy Bank Is Protected, In The Event Of A Bank Run

Source : TODAY, Tuesday, 01 April 2008

Like the bird flu or SARS, it is one of those global contagions most Singaporeans never truly expected to hit home.

Yet, if Bear Stearns, the United States' fifth-largest investment bank, can collapse as the credit crisis spreads, some are asking if commercial banks and depositors anywhere are truly safe.

The reassuring word from analysts is that Singaporeans have more reason than most to be confident in the health of local banks and the regulatory system.

Yet, should the worst somehow happen and that is a scenario even regulators here do not rule out how well-protected is the average heartlander's life-savings?

The answer is in two parts: Insurance and the government.

Ordinary depositors here come under the free umbrella of the Singapore Deposit Insurance Corporation (SDIC) which, in the event their bank or finance company fails, will compensate individuals and charities for the first $20,000 of their Singapore dollar deposits in standard savings, current and fixed deposit accounts, minus liabilities.

Such payouts will come from insurance premiums paid every year by the banks. On the need for such a scheme, in 2005, Mr Tharman Shanmugaratnam, then the deputy chairman of the central bank, had said: "International experience has shown that the possibility of a bank failure and loss to depositors cannot be eliminated, even in reputable and well-supervised jurisdictions."

On Oct 18, 2005, the fund started building its reserves.

And as of the last financial year ended March 31, 2007, it had $13.8 million in the kitty. Growing at the same rate, the fund would have accumulated more than $23 million by now.

The goal is to hit $120 million by 2016, with the ability to cover about $40 billion in insured deposits or a reserve ratio of 0.3 per cent.

With the fund still in its infancy, should a bank run occur here, hypothetically speaking, four bank analysts that TODAY spoke to said they expect the government to intervene.

Kim Eng bank analyst Pauline Lee said: "The financial sector is crucial to the economy, so the government would take steps."

An analyst at a foreign bank added: "A bank run will cause systemic risk if the government does not step in."

Still, government bailouts have become a subject of some controversy in the US, with the Federal Reserve recently intervening to keep Bear Sterns from collapsing. Some question the "moral hazards" inherent in rescuing banks that have been overly reckless.

But the likelihood of such a dilemma cropping up here is very unlikely, observers say notwithstanding that a bank run has occurred before. In 1960, rumours sparked panic that led to memorable queues outside Chung Khiaw Bank of customers waiting to withdraw their life-savings.

These days, the Monetary Authority of Singapore (MAS) has rules to ensure that banks and finance companies have enough liquidity to meet unforeseen needs. Singapore-incorporated banks must keep a certain amount of capital to protect against defaults they need to hold a minimum capital adequacy ratio of 10 per cent.

As of Dec 31, 2007, the three local banks DBS, OCBC and UOB hold capital above MAS' requirements. "This means the banks' capital structure is still sound," said Ms Lee.

Also, the capital in banks here comes mainly from long-term and more stable sources, such as deposits, said Mr Benny Zhang, an analyst at research firm The Asian Banker. Conversely, capital that comes from loans from other banks and financial institutions is riskier as costs fluctuate more.

British bank Northern Rock had more of such "short-term funding", and was brought to the brink of collapse last September when it could not raise funds on credit markets to cover its liabilities. Britain's financial watchdog last Wednesday admitted to mistakes it made in supervising Northern Rock.

In Singapore, depositors can take heart that the regulatory framework is more stringent than the international benchmark. The MAS has set the Tier 1 CAR ratio the first line of defence against defaults at 6 per cent, while under the global Basel framework the ratio is set at 4 per cent, Ms Lee said.

On Monday, the US Treasury unveiled plans to consolidate its various regulatory agencies. This is where Singapore's regulatory regime is ahead as MAS already holds all the reins, said Singapore Management University associate professor Annie Koh.

And because of this, the central bank would have more to look after as products evolve. This means "we need training programmes to equip central bankers for this evolution of products and players", said Prof Koh.

"With the interconnectedness of financial markets, the system has become a lot more fragile and even one fraud case can cascade and bring down perfectly strong banks because their counterparty risks have multiplied many times."

The MAS can also learn from the mistakes of its UK and US counterparts, said Mr Zhang, who noted that run on Northern Rock happened after it was publicised that regulators had refused to give the bank funding.

"When handling such a crisis, it's important for them to intervene, but the question is how," said Mr Zhang, suggesting for instance that the bailout be done quietly.

Ultimately, bank analysts do not see any signs of breeding grounds for a bank run to happen here. Said an analyst at a local brokerage: "In US, you have the economic slowdown and possible recession, and consequently, the risk to the banking system is much higher. The Asian economies are still experiencing strong growth, so I don't see a similar scenario taking place here." - TODAY/ar

Jade Spring Over-Subscribed By Almost Five Times

Source : Channel NewsAsia, 31 March 2008

Jade Spring, the second batch of Built-To-Order flats in Yishun, is over-subscribed by almost five times.

Homebuyers, who are considering the housing project, have until Monday midnight to file their forms.

The project offers 576 units of two-, three- and four-room flats.

Launched on 18 March this year, the project received 241 applications on its first day.

The overwhelming response prompted the Housing and Development Board (HDB) to shorten the application period from three to two weeks. As of Monday afternoon, the project received 2,658 applications.

This project follows from the successful Punggol Spring launch in February, which was over-subscribed by almost six times. - CNA/so

Bromeliads For Gardens At Marina South Arrive In Singapore

Source : Channel NewsAsia, 31 March 2008

Some 50,000 bromeliads have arrived in Singapore all the way from Florida to be part of the Gardens at Marina South.

Similar to the pineapple plant, about 35 percent of more than 3,475 species of bromeliads are rare. These plants can remove water pollutants and play an important role in energy conservation.

Artist impression of part of Gardens at Marina South

One of the species of bromeliads is the Tillandsia. It does not need soil or water because it takes what it needs from the air by converting nitrogen into nitrates.

Another bromeliad species is the Billbergia Strawberry, which blooms for just one week every year.

Related Video : -http://tinyurl.com/yo4e8s

These species are native to North and South America and they are known for their unique features.

Anton van der Schans, Assistant Director of Horticulture, Gardens by the Bay, said: "One of the things we are trying to do is to introduce more colour. Not just because it looks more attractive, it also helps to capture people's attention and imagination, and hopefully that will encourage them to learn more about the environmental messages which are behind the collection as well."

These messages include how some bromeliads are endangered species because of deforestation and climate change.

To help these plants, the experts have erected artificial trees known as 'super trees'. These trees, some of which are up to 50 metres tall, not only support the plants but are also ecologically friendly.

Kenneth Er, General Manager, Gardens by the Bay, said: "The super trees, like real trees, would also photosynthesise using photovoltaic cells - converting solar energy into electricity... We are also exploring the possibility of the trees collecting rain water."

Another environmentally friendly feature is a conservatory which will use cooling technologies that can save up to 40 percent of the amount of energy used.

"Typically, some of these species require cooler temperatures for best foliage colour and flowering, so that's where our cool glass houses come in, to help provide the conditions to really display them at their best," said Mr van der Schans.

These plants will also absorb pollutants by cleaning the water that flows into three freshwater lakes – Kallang Basin, Marina Bay and Marina Channel. When combined, the three lakes will be Singapore's 15th reservoir, which will supply 10 percent of the country's drinking water.

Another 150,000 bromeliads will be coming to Singapore over the next two years. In all, the plants cost S$2 million. They will be available for public viewing by 2011.

The Gardens at Marina South – situated right beside the Marina Bay Sands Integrated Resort – will open 24 hours daily.

Together with Gardens at Marina East and Gardens at Marina Central, they form Gardens by the Bay, spanning over 155 football fields. - CNA/so

Approval Period For Home Office Scheme Extended To 5 Years

Source : Channel NewsAsia, 31 March 2008

From 1 April, Home Office Scheme approvals granted by the Housing and Development Board (HDB) and Urban Redevelopment Authority (URA) for new applications and renewals will be valid for five years - up from the current three years.

This is to provide greater convenience to home office users and to help them formulate longer term business plans.

The scheme was introduced in 2003 to allow private property and HDB homeowners to conduct small-scale businesses from their homes, if they fulfil certain criteria.

So far, more than 20,600 applications have been approved. Among them, 19,500 are for HDB flats and 1,100 for private properties.

The authorities said most of these applications are for IT consultancy, web design, real estate services and advertising. - CNA/so

F1 Trackside Hotels See Good Demand For Rooms

Source : Channel NewsAsia, 31 March 2008

Hotel rooms that provide a good view of Singapore's first Formula One Grand Prix race in September are being snapped up, including those that cost more than S$13,000 a night.

Most hotels that line the track said business is good. With six more months to go before the big event, some have already had confirmed bookings for 50 to 95 percent of the rooms.

From the 26th floor of Fairmont Hotel, one gets to see almost half of the Singapore Grand Prix track – from Suntec Singapore to Nichol Highway, through St Andrew's Road and the Esplanade.

Related Video :- http://tinyurl.com/2n4hgy

During the F1 period, the Penthouse Suite at the hotel, which normally costs S$5,000 a night, will go for S$13,800. And with a minimum five-day booking period, that's S$69,000 in total.

Ian Wilson, General Manager, Fairmont Singapore, said: "The other thing which this view provides is some real perspective on the course and that you can really get a sense of how fast those cars are moving because you can see them over a longer distance."

Some 70 percent of the other 769 rooms at Fairmont Hotel, which are priced from S$1,320 onwards for a night during the F1 week, have already been booked.

The rooftop of the Fairmont Hotel offers a spectacular view of the race track, but it is not open for public booking. Only a few of the hotel staff will get to watch the race from that location.

Swissotel - another hotel within the same vicinity - did not provide actual figures, but they said demand is good. The lowest rate at this hotel is S$1,500 per night, with a minimum five-day booking period.

Both Swissotel and Fairmont are also offering hospitality suites at the Raffles City Convention Centre, which has a view of the track action.

Another hotel that is close to the action is Marina Mandarin and it has seen more than half of its rooms booked for the F1 period.

The hotel's most expensive room is priced at S$3,000 a night, with a three-day minimum booking period.

Serene Law, Director, Sales & Marketing, Marina Mandarin, said: "At this point, we are still awaiting confirmation from the F1 organisers on how they are going to set up the circuit and the peripheral barricade before we decide on whether the rooms with a good view will come with a premium."

The Ritz Carlton Millenia Singapore is not imposing any minimum number of days to be booked. The hotel said more than 95 percent of its rooms have been taken up for the last week of September.

Others like the Fullerton, Mandarin Oriental and Pan Pacific Hotel did not reveal the take-up rates, but said they have been receiving many queries. They added that their rooms will cost about three to four times the usual rates.

Hoteliers also generally feel that the 30 percent government levy on trackside hotels during the race week will not impact demand for their rooms. - CNA/so

Hotel Site Amidst Garden Setting In Balestier Road Up For Tender

Source : The Straits Times, Mar 31, 2008

THE Urban Redevelopment Authority (URA) on Monday launched a hotel site at Balestier Road for sale by public tender.



















The 1.77 ha land parcel is one of two hotel sites to be launched for sale in the Government Land Sales Programme for the first half of this year.

The hotel sitie, located across from the Sun Yat Sen Nanyang Memorial Hall, a national monument and heritage centre that pays tribute to Dr Sun Yat Sen who led the Chinese Revolution in 1911, will nestled in a 0.46 ha park, named 'Zhongshan Park'.

This means the developer will be able to capitalise on the park to create a unique garden setting for the hotel and enhance the experience for hotel guests and visitors to the Memorial Hall.













The developer is also required to provide a public event space within the park to serve as a venue for the staging of events and activities.

This public event space, together with outdoor refreshment areas and tea pavilions which are allowed in the park, will help to activate and inject greater vibrancy into the park and the surrounding area.

With excellent frontage along Balestier Road, the plot has a maximum permissible gross floor area (GFA) of about 40,000 sqm, 60 per cent of which can be used for hotel and hotel-related uses. The remaining GFA can be for complementary commercial and residential uses.

















'The land parcel's proximity to the Memorial Hall provides a great opportunity to develop a unique hotel development,' said the URA on Monday.

'This hotel development is envisaged to be a distinctive contemporary hotel that draws inspiration from the Chinese culture and architecture of symmetry and geometric forms interspersed with attractive landscaped garden and courtyards.'

Balestier Road has an interesting mix of conserved shophouses that were built in the 1840s and modern commercial and residential buildings.

The juxtaposition of these heritage shophouses and new buildings creates an interesting streetscape along Balestier Road, displaying its significant past and vibrant present.

In recognition of its strong heritage value and distinctive old world charm, Balestier was designated as one of Singapore's Identity Nodes in URA's Identity Plan in 2002.

Balestier Road is also known for its delicious local fares, such as Tau Sar Pia and Bak Kut Teh, that are tucked away in shophouses that line the road. Today, many locals and tourists explore Balestier Road to immerse in its historical charms and dine at many of the interesting eating outlets.

To enable visitors to enjoy the area better and enhance their walking experience, there are plans by URA to improve the walkways and landscaping along Balestier Road, said the URA.

Given that the site will be a key development along Balestier Road, the development proposal for the site will be subject to review by a Design Advisory Panel to ensure a well designed development of appropriate quality and standard.

Balestier Road Land Parcel Launched For Sale

Source : Channel NewsAsia, 31 March 2008

A hotel site at Balestier Road has been launched for sale.

The 1.77-hectare plot is one of two hotel sites on the Confirmed List of the Government Land Sales Programme for the first half of this year.

But for the first time, the government has made developing a park a requirement as part of the tender.

Balestier Road is buzzing with activity.

And adding to it will be a new contemporary hotel which draws inspiration from Chinese culture.

The site, released for sale by the Urban Redevelopment Authority (URA), will have a maximum permissible gross floor area (GFA) of 39,000 square metres.

60 percent of the area will be for hotel-related uses, with the remaining GFA going toward complementary commercial and residential uses.

Some 0.46 hectares of the plot will also be dedicated to the development of a public park.

Named Zhongshan Park, it is envisioned to be the grand entrance of the hotel, leading to the heritage attraction, Sun Yat Sen Nanyang Memorial Hall.

Tan See Ni, Deputy Director, Development, Physical Planning Division, URA, said, "The public event space will be 1,000 square metres in area; it's actually to provide the space for the public, National Heritage Board, even the Sun Yat Sen Memorial Hall, to hold events in the park if they so desire.

"In addition, we also allow some F&B developments within the park, up to 450 square metres of built-up area, and this is to enable some activities to be generated within the park."

URA estimates that the site will yield between 500 and 600 hotel rooms.

Analysts said the project could draw less than five bids due to the unique condition attached to the project.

In addition, developers will also need a strong concept to the leverage on the historical value of the place and draw visitors to the park.

Nicholas Mak, Director, Knight Frank, said, "The development of this site will also have some challenges, such as the development will be separated by a park in between, and the developer is required to develop and maintain the park, so this may increase the development cost somewhat. The land price will be in the range of S$150 million to the low end of S$200 million."

The URA has met extensively with local and overseas developers to market the site.

It also took part in the Mipim real estate convention in Hong Kong last year to showcase the plans to investors from Hong Kong, China and Taiwan.

URA said this project has generated some foreign interest, but it was unable to disclose the names of the companies who came to assess the site.

Tender for the site will close at 12 noon on July 16.

The selection of successful bidders will be based on tendered land prices only.

As the project is a key development along Balestier Road, the development proposal for the site will be subject to review by a Design Advisory Panel to ensure it meets quality standards. - CNA/ms