Source : The Straits Times, Dec 19, 2007
A FUND to be managed by Islamic investment bank Kuwait Finance House has paid GuocoLand about $818.4 million for 97 units in the developer's Goodwood Residence.
The huge deal for the units - all four-bedders ranging from 2,500 sq ft to 3,900 sq ft - in Bukit Timah Road near Newton Circus has set new benchmarks.
GuocoLand's group president and chief executive officer, Mr Quek Chee Hoon, said the sale at the 210-unit estate 'is the singlelargest purchase of residential units under construction'.
Market sources say the price works out to slightly more than $3,000 per sq ft (psf), above levels achieved by nearby developments.
The 40-unit Sui Generis in nearby Balmoral Crescent has achieved a median price of $2,474 psf and a high of $2,713 psf.
A little farther away, new developments within a 2km radius of the Orchard MRT Station are priced from $3,000 psf to $4,500 psf.
The deal comes amid weak sentiment in the property market largely due to ongoing concerns over the sub-prime woes in the United States.
Savills Singapore's director of marketing and business development, Mr Ku Swee Yong, said foreign investors remained optimistic about Singapore's growth story.
These investors have more advantages when buying as they can leverage on tax savings and potential foreign exchange gains, he said.
GuocoLand plans to launch the rest of the freehold Goodwood Residence in the first quarter of next year. The date and prices will hinge on market conditions.
The estate also has 22 deluxe four-bedders - these are a bit bigger than the 97 units sold - and 81 two- and three-bedders.
There are 10 penthouses, eight with pools, ranging in size from 5,000 sq ft to 12,000 sq ft. The smallest will cost at least $15 million and the largest possibly up to $40 million.
The 210 apartments are housed in two 12-storey blocks, and the 24,845 sq m estate shares a 150m boundary with the lush Goodwood Hill park.
Landscaping and facilities will take up almost 80 per cent of the estate grounds.
Datuk K. Salman Younis, managing director of Kuwait Finance House (Malaysia), said: 'The charm of Goodwood Residence lies not only in its setting a new benchmark for luxurious residential living in Singapore but also in its unique location next to 20ha of green reserve at Goodwood Hill.'
Goodwood Residence is on the former Casa Rosita site, which GuocoLand acquired for $280 million, or $706 psf of potential gross floor area, in a collective sale in April.
The developer expects to launch its 270-unit Sophia Residence on the former Sophia Court site later next year.
In 2009, it will launch a project to be built on another collective sale site, Leedon Heights, which it purchased for $835 million.
Kuwait Finance House, which is listed on the Kuwait Stock Exchange, previously joined hands with a unit of Malaysian trustee company Amanah Raya to set up a fund to purchase two low-rise waterfront villa apartment blocks for $286 million.
GOOD BUY
'The charm of Goodwood Residence lies not only in its setting a new benchmark for luxurious living in Singapore but also in its unique location.'
DATUK SALMAN, on why a fund to be managed by Kuwait Finance House purchased units at the estate
Wednesday, December 19, 2007
5,000 Apply For 316 Flats
Source : The Straits Times, Dec 19, 2007
PUNGGOL, SENGKANG,HOUGANG SEE UNPRECEDENTED DEMAND
OVERWHELMING demand for the latest batch of new Housing Board (HDB) flats suggests newlyweds are now looking at outlying estates they once shunned.
A total of 5,147 applications had been made yesterday by the close of the HDB's latest sale of just 316 flats in the far-flung areas of Hougang, Punggol and Sengkang.
That is 16 would-be buyers for every flat - a big jump in demand since June when 922 flats in the same areas attracted 3,955 applicants, or about four buyers for every flat.
Market watchers say only mature estates used to experience such high demand.
But the latest figures suggest new trends in which couples are turning increasingly to new HDB flats as resale prices rise - and to estates further away from the city.
The August and October sale of flats in established towns, and in the north and west zones, saw a 100 per cent take-up rate for the first time, the HDB said last week.
Earlier this year, applications for mature towns such as Bukit Merah were seven to 13 times the flats offered, while in newer estates such as Sengkang, this number was a lower 1.8 to 4.7 times, said the HDB in answer to queries from The Straits Times.
Housing experts The Straits Times spoke to said the limited flat supply means couples cannot afford to be too picky as competition is tough.
Associate Professor Tu Yong of the National University of Singapore's department of real estate said the buoyant economy is fuelling demand as more people get married.
The booming HDB resale market has priced homes out of reach of many buyers, so it is no surprise more people are turning to new, cheaper flats.
Resale home prices grew by 11 per cent in the first nine months of this year.
The HDB's latest sale offers flats from $142,000 for a four-room flat in Hougang where the median price is $250,500 in the resale market, and from $278,000 for an executive flat in Sengkang compared to $346,000 for a resale unit.
New flats can be paid for with Central Provident Fund monies or a home loan, unlike in the resale market where couples typically have to fork out cash to get a flat. Typically too, the more established the town, the higher the sum of cash needed upfront.
The problems faced by newlyweds in finding homes was flagged in Parliament last month by Aljunied GRC MP Cynthia Phua, who said she gets appeals from distressed couples every week.
IT consultant Goh Jhin Hin, 29, has tried to get a flat nine times in the past year - and rejects the notion that couples are too choosy.
He has applied for a range of locations from Toa Payoh to Sengkang - all without success. 'Getting a flat now is like gambling - it all depends on your luck,' he said.
Last month, National Development Minister Mah Bow Tan said the HDB will offer 7,000 new flats in the next seven months. He also urged newlyweds not to be too choosy, adding that it was not realistic 'for the HDB to offer only new flats in mature estates in the heart of the city'.
First-timer Leonard Tan, 27, widened his net and got lucky. He bagged a Bukit Panjang executive flat earlier this year, after failing to get his dream Ang Mo Kio home.
Property agency PropNex's chief, Mr Mohamed Ismail, said outlying, less mature estates such as Punggol and Sengkang are now seen as more attractive by young couples - hence the higher demand.
Mr Goh said build-to-order flats - which are built only if a certain level of demand is reached - are not a solution for him as the flats will be ready only in four to five years time.
PUNGGOL, SENGKANG,HOUGANG SEE UNPRECEDENTED DEMAND
OVERWHELMING demand for the latest batch of new Housing Board (HDB) flats suggests newlyweds are now looking at outlying estates they once shunned.
A total of 5,147 applications had been made yesterday by the close of the HDB's latest sale of just 316 flats in the far-flung areas of Hougang, Punggol and Sengkang.
That is 16 would-be buyers for every flat - a big jump in demand since June when 922 flats in the same areas attracted 3,955 applicants, or about four buyers for every flat.
Market watchers say only mature estates used to experience such high demand.
But the latest figures suggest new trends in which couples are turning increasingly to new HDB flats as resale prices rise - and to estates further away from the city.
The August and October sale of flats in established towns, and in the north and west zones, saw a 100 per cent take-up rate for the first time, the HDB said last week.
Earlier this year, applications for mature towns such as Bukit Merah were seven to 13 times the flats offered, while in newer estates such as Sengkang, this number was a lower 1.8 to 4.7 times, said the HDB in answer to queries from The Straits Times.
Housing experts The Straits Times spoke to said the limited flat supply means couples cannot afford to be too picky as competition is tough.
Associate Professor Tu Yong of the National University of Singapore's department of real estate said the buoyant economy is fuelling demand as more people get married.
The booming HDB resale market has priced homes out of reach of many buyers, so it is no surprise more people are turning to new, cheaper flats.
Resale home prices grew by 11 per cent in the first nine months of this year.
The HDB's latest sale offers flats from $142,000 for a four-room flat in Hougang where the median price is $250,500 in the resale market, and from $278,000 for an executive flat in Sengkang compared to $346,000 for a resale unit.
New flats can be paid for with Central Provident Fund monies or a home loan, unlike in the resale market where couples typically have to fork out cash to get a flat. Typically too, the more established the town, the higher the sum of cash needed upfront.
The problems faced by newlyweds in finding homes was flagged in Parliament last month by Aljunied GRC MP Cynthia Phua, who said she gets appeals from distressed couples every week.
IT consultant Goh Jhin Hin, 29, has tried to get a flat nine times in the past year - and rejects the notion that couples are too choosy.
He has applied for a range of locations from Toa Payoh to Sengkang - all without success. 'Getting a flat now is like gambling - it all depends on your luck,' he said.
Last month, National Development Minister Mah Bow Tan said the HDB will offer 7,000 new flats in the next seven months. He also urged newlyweds not to be too choosy, adding that it was not realistic 'for the HDB to offer only new flats in mature estates in the heart of the city'.
First-timer Leonard Tan, 27, widened his net and got lucky. He bagged a Bukit Panjang executive flat earlier this year, after failing to get his dream Ang Mo Kio home.
Property agency PropNex's chief, Mr Mohamed Ismail, said outlying, less mature estates such as Punggol and Sengkang are now seen as more attractive by young couples - hence the higher demand.
Mr Goh said build-to-order flats - which are built only if a certain level of demand is reached - are not a solution for him as the flats will be ready only in four to five years time.
Islamic Bank Fund Buys Up Condo Units For $818m
Source : TODAY, Wednesday, December 19, 2007
A fund managed by Kuwait Finance House has bought all 97 luxury apartments of Phase 1of Goodwood Residence from developer Guocoland for $818 million.
The four-bedroom apartments, located in one of the most exclusive addresses near the prime Orchard Road area, are each between 2,500 sq ft and 3,900 sq ft, and commanded slightly more than $3,000 per sq ft on average, said Singapore-listed Guocoland. The temporary occupation permit for the 210-unit Goodwood Residence project is expected in October 2010.
Last month, investors bought 20 units in 8 Napier for about $3,500psf and 44 units in Cliveden at Grange for about $3,700psf.
"The international fund investment appetite is still strong," said Mr Donald Han, Cushman and Wakefield managing director.
"It's a good price for Guocoland. If you look at the sales volume last month, developers are holding firmly on their price. They will not do a block deal unless there is a good offer on the table."
According to data from the Urban Redevelopment Authority, the number of transactions in private residential units increased modestly in the last three months as property prices held firm.
Mr Han expects more investment purchases as the high-end residential property sector is seen as one of the preferred plays because of potential rental appreciation.
A fund managed by Kuwait Finance House has bought all 97 luxury apartments of Phase 1of Goodwood Residence from developer Guocoland for $818 million.
The four-bedroom apartments, located in one of the most exclusive addresses near the prime Orchard Road area, are each between 2,500 sq ft and 3,900 sq ft, and commanded slightly more than $3,000 per sq ft on average, said Singapore-listed Guocoland. The temporary occupation permit for the 210-unit Goodwood Residence project is expected in October 2010.
Last month, investors bought 20 units in 8 Napier for about $3,500psf and 44 units in Cliveden at Grange for about $3,700psf.
"The international fund investment appetite is still strong," said Mr Donald Han, Cushman and Wakefield managing director.
"It's a good price for Guocoland. If you look at the sales volume last month, developers are holding firmly on their price. They will not do a block deal unless there is a good offer on the table."
According to data from the Urban Redevelopment Authority, the number of transactions in private residential units increased modestly in the last three months as property prices held firm.
Mr Han expects more investment purchases as the high-end residential property sector is seen as one of the preferred plays because of potential rental appreciation.
A Heady Feeling As Flyer Fun Gears Up
Source : TODAY, Wednesday, December 19, 2007
It's all in the spin.
Behind the much-publicised boom in bookings for the Singapore Flyer, well in advance of its March 1 opening next year, is a host of package ideas by its management.
Several corporates have already signed up, while charities will also be on board.
JPMorgan Chase will hold a traditional lo hei function there on Feb 19 to mark Chinese New Year. This is, in fact, the Flyer's first corporate group function — the financial services firm has booked all 28 capsules, each of which can hold 28 people.
It will cost as much as $8,888 to book a Flyer capsule during the festive period — the normal price is $2,000.
JPMorgan Chase started talks with the attraction in July and will invite its corporate clients to the event. "Singapore is an important location for us, and it is a good chance to thank our clients and highlight the country and promote tourism here," said its executive director for regional MNC Corporate Banking, Toi Gaik Poh.
The Flyer is also working with a mobile phone-maker to invite adopted charity beneficiaries at a discounted rate before the official opening on Apr 15.
Ideas to drive interest in the 165-m observation wheel at Marina Bay are also based on special events such as the National Day period, when fireworks enthusiasts can stake out the area, and of course, the Singapore Grand Prix race on Sep 28, for which ticketing and package prices are being finalised.
"The opening of the Flyer will mark a new chapter for tourism in Singapore," said Ms Patsy Ong, managing director of Adval Brand Group, the sales, marketing and ticket distribution agent for the Flyer.
Some 60 per cent of capacity has been booked online by travel agents and individuals, while 20 per cent will be set aside for walk-in visitors. In June, the Flyer will have packages targeted at families.
More than 80 full-time and 50 to 100 part-time employees have been recruited, while retail space for the terminal building is almost fully let.
Slots on the Flyer's inaugural flights from Feb 11 to 13 have already been fully snapped up. But Feb 14 is still open to the public: The Flyer's special Valentine's Day package, at $399 per couple, will feature champagne, roses and chocolates.
It's all in the spin.
Behind the much-publicised boom in bookings for the Singapore Flyer, well in advance of its March 1 opening next year, is a host of package ideas by its management.
Several corporates have already signed up, while charities will also be on board.
JPMorgan Chase will hold a traditional lo hei function there on Feb 19 to mark Chinese New Year. This is, in fact, the Flyer's first corporate group function — the financial services firm has booked all 28 capsules, each of which can hold 28 people.
It will cost as much as $8,888 to book a Flyer capsule during the festive period — the normal price is $2,000.
JPMorgan Chase started talks with the attraction in July and will invite its corporate clients to the event. "Singapore is an important location for us, and it is a good chance to thank our clients and highlight the country and promote tourism here," said its executive director for regional MNC Corporate Banking, Toi Gaik Poh.
The Flyer is also working with a mobile phone-maker to invite adopted charity beneficiaries at a discounted rate before the official opening on Apr 15.
Ideas to drive interest in the 165-m observation wheel at Marina Bay are also based on special events such as the National Day period, when fireworks enthusiasts can stake out the area, and of course, the Singapore Grand Prix race on Sep 28, for which ticketing and package prices are being finalised.
"The opening of the Flyer will mark a new chapter for tourism in Singapore," said Ms Patsy Ong, managing director of Adval Brand Group, the sales, marketing and ticket distribution agent for the Flyer.
Some 60 per cent of capacity has been booked online by travel agents and individuals, while 20 per cent will be set aside for walk-in visitors. In June, the Flyer will have packages targeted at families.
More than 80 full-time and 50 to 100 part-time employees have been recruited, while retail space for the terminal building is almost fully let.
Slots on the Flyer's inaugural flights from Feb 11 to 13 have already been fully snapped up. But Feb 14 is still open to the public: The Flyer's special Valentine's Day package, at $399 per couple, will feature champagne, roses and chocolates.
S'pore Becoming A Magnet For The World's Wealthy
Source : The Business Times, December 19, 2007
Non-residents' deposits rise, fuelled by strong S$, private banking drive
As wealth from across the globe seeks new homes, a growing chunk is finding its way to Singapore. In fact, more rich people who live elsewhere have decided to let their money reside in the Republic.
According to the Monetary Authority of Singapore, deposits by non-residents grew 46 per cent to almost $30 billion at end-October from a year ago. This is almost three times the $10.6 billion parked here in 2002.
Singapore's strong fundamentals and its growing reputation as a private banking hub have obviously proved to be a strong magnet. Most of the money - $20.4 billion - is in longer-term fixed deposits. The rest is in short-term demand deposits and savings and other deposits.
Domestic resident deposits were up a more sedate 20 per cent at $232 billion in October.
Bankers and economists say that Singapore's efforts to be a private banking hub are paying off. Much of the money piling up here is from rich individuals in the region, the Middle East and even as far away as Russia, they say.
Standard Chartered Private Bank this year became the first international bank to make Singapore its global private banking headquarters.
More boutique private banks are also setting up shop here. Lombard Odier Darier Hentsch, a Geneva-based institution with a history going back more than 200 years will open a Singapore office next month. Its target clients are predominantly family entrepreneurs from Singapore, Malaysia, Indonesia, Brunei and Thailand.
'It shows that people are comfortable putting money in Singapore,' said Citigroup economist Chua Hak Bin. In addition, an explicit policy change towards steeper appreciation of the Singapore dollar has led many private bankers to recommend that clients hold more Sing dollars, he said. The forecast is for the Sing dollar to rise about 5 per cent against the US unit by the end of 2008.
'It has become a store of value, and it has helped that interest rates have not come off despite the Fed cuts,' Dr Chua said.
The US Federal Reserve this month cut interest rates. But interest rates globally, including Singapore, did not slide because of a continued liquidity squeeze in the credit markets.
Singapore's economic fundamentals, well-regulated markets and stable currency are also attractive for wealthy entrepreneurs.
Standard Chartered economist Alvin Liew believes much of the increase in non-resident deposits here is from the growing ranks of wealthy individuals and the level of wealth in the non-Western world, from Asia to Middle East to Eastern Europe.
Standard Chartered global head of private bank Peter Flavel said: 'From our research, the majority of wealth is in cash or near cash, and a lot of wealth created in Asia is relatively recent - first or second generation.'
Singapore's strong regulations, good infrastructure and government support for the wealth management business are magnets, he said. These factors, coupled with an attractive tax environment and a stable currency, have made it a top place to do business. Interest on non-resident funds deposited here is tax-exempt.
Some non-resident deposits could be parked here before the money is invested in property, though some is also used by those betting on the appreciation of the Chinese renminbi.
The Singapore unit is the best proxy for investors betting on renminbi appreciation, according to United Overseas Bank's head of economics and treasury research, Jimmy Koh.
'The Sing dollar has the least restrictions and is the most liquid currency in the region,' he said.
Non-residents' deposits rise, fuelled by strong S$, private banking drive
As wealth from across the globe seeks new homes, a growing chunk is finding its way to Singapore. In fact, more rich people who live elsewhere have decided to let their money reside in the Republic.
According to the Monetary Authority of Singapore, deposits by non-residents grew 46 per cent to almost $30 billion at end-October from a year ago. This is almost three times the $10.6 billion parked here in 2002.
Singapore's strong fundamentals and its growing reputation as a private banking hub have obviously proved to be a strong magnet. Most of the money - $20.4 billion - is in longer-term fixed deposits. The rest is in short-term demand deposits and savings and other deposits.
Domestic resident deposits were up a more sedate 20 per cent at $232 billion in October.
Bankers and economists say that Singapore's efforts to be a private banking hub are paying off. Much of the money piling up here is from rich individuals in the region, the Middle East and even as far away as Russia, they say.
Standard Chartered Private Bank this year became the first international bank to make Singapore its global private banking headquarters.
More boutique private banks are also setting up shop here. Lombard Odier Darier Hentsch, a Geneva-based institution with a history going back more than 200 years will open a Singapore office next month. Its target clients are predominantly family entrepreneurs from Singapore, Malaysia, Indonesia, Brunei and Thailand.
'It shows that people are comfortable putting money in Singapore,' said Citigroup economist Chua Hak Bin. In addition, an explicit policy change towards steeper appreciation of the Singapore dollar has led many private bankers to recommend that clients hold more Sing dollars, he said. The forecast is for the Sing dollar to rise about 5 per cent against the US unit by the end of 2008.
'It has become a store of value, and it has helped that interest rates have not come off despite the Fed cuts,' Dr Chua said.
The US Federal Reserve this month cut interest rates. But interest rates globally, including Singapore, did not slide because of a continued liquidity squeeze in the credit markets.
Singapore's economic fundamentals, well-regulated markets and stable currency are also attractive for wealthy entrepreneurs.
Standard Chartered economist Alvin Liew believes much of the increase in non-resident deposits here is from the growing ranks of wealthy individuals and the level of wealth in the non-Western world, from Asia to Middle East to Eastern Europe.
Standard Chartered global head of private bank Peter Flavel said: 'From our research, the majority of wealth is in cash or near cash, and a lot of wealth created in Asia is relatively recent - first or second generation.'
Singapore's strong regulations, good infrastructure and government support for the wealth management business are magnets, he said. These factors, coupled with an attractive tax environment and a stable currency, have made it a top place to do business. Interest on non-resident funds deposited here is tax-exempt.
Some non-resident deposits could be parked here before the money is invested in property, though some is also used by those betting on the appreciation of the Chinese renminbi.
The Singapore unit is the best proxy for investors betting on renminbi appreciation, according to United Overseas Bank's head of economics and treasury research, Jimmy Koh.
'The Sing dollar has the least restrictions and is the most liquid currency in the region,' he said.
Subscribe to:
Posts (Atom)
.jpg)
