Plans To Improve Urban Spaces

Source : The Business Times, 29 May 2008

CHUA YANG LIANG gives an overview of the proposals in the Draft Master Plan 2008 and presents a wish list to planners

BESIDES the three strategic commercial hubs of Jurong Lake District, Kallang Riverside and Paya Lebar Central, which will strengthen the CBD alongside with development plans for Tanjong Pajar and the Beach Road/Ophir-Rochor corridor, there were no major changes or surprises to the zoning, plot ratio and planning directions in the 2008 Draft Master Plan. This observation is based on our brief review of three areas in particular - Buona Vista, Paya Lebar, and Harbourfront (which includes Telok Blangah) that will house the interchanges of two major transit lines (existing and the future Circle Line).













The 2008 Draft Master Plan maintains the time-tested planning vision that focuses on improving the overall quality of life, supported by a pro-business environment. It maintains the central planning philosophy found in the 2003 Master Plan - that of improving the quality of urban spaces and supporting general economic growth. This vision is inherent within the four key thrusts of 'home of choice, magnet for business, exciting playground, and home to cherish' and the zoning maps that developed from there.

Market trends

This planning deliverable is a highly practical one and focuses on concretising market trends that are conducive to improving the quality of living spaces and favourable to the overall business environment in Singapore.

The 2008 Draft Master Plan has not only respected the organic development trends, such as supporting the interim uses of vacant government buildings and sites, for example, Dempsey Road and Wessex Estates, it has also formally accepted and recognised other key market forces that would help improve the overall quality of living in Singapore. For example, a notable change in Buona Vista was the re-zoning of a popular area in Holland Village from 'Residential with commercial at first storey only' and 'Commercial and Residential' to purely commercial use.

The continual agglomeration of retail and commerce activities in this neighbourhood over the past few years has permitted retail activities to reach a threshold level thereby strengthening the area's image and attractiveness as an F&B neighbourhood that is well patronised by foreigners and young locals. Coupled with the upcoming Holland Village MRT station and the one-north intellectual cluster located slightly further south, re-zoning to permit full commercial activities within this area is practical and will further enhance the overall quality of living in and around the immediate vicinity.

Similarly, taking its cue from current market trends, the 2008 Draft Master Plan has also proposed more housing in key areas where demand has been strongest. The urban planners have proposed an additional 300,000-plus housing units (both private and public) islandwide with an emphasis on 'water-fronting'. This is similar to that proposed in the 2003 Master Plan where over 300,000 housing units were also suggested.

The largest increase is in the central and north-east regions where some 39 per cent and 38 per cent of additional housing units (over the existing stock) have been proposed. Likewise, in terms of the distribution of total new supply, the central and north-east regions again topped the list at 40 per cent and 24 per cent respectively. This can be expected given the strong residential demand as reflected in the recent surge in property values in these regions. This proposed new supply should help ease the values in these areas in the longer term horizon.

Echoing this trend is Buona Vista, which witnessed several residential sites being introduced. A site in Holland Drive, which was previously zoned for a civic and community institution, was re-zoned as a residential site with a plot ratio of 4.2, while sites at Slim Barracks Rise and Dover Close East, which were initially zoned white, are now zoned residential. The re-zoning of these three sites will support the area's growing prestige as an education and research hub in Singapore.

For the other planning regions, new housing has been proposed around existing water bodies, for example, reservoirs in Bedok and Lower Seletar, and the proposed 4.2 km waterway in Punggol. This concept of urbanising Singapore's waterways is not new but it has been given a greater push with the strong market response to developments in the Sentosa and Harbourfront area over the past two years. This emphasis on providing more waterfront homes would greatly enhance social equity by making such homes more affordable to the regular guy on the street and not just limited to the affluent.

Shifts in preferences

However, the danger of following market trends is sudden shifts in preferences. Just like dark undercurrents are a result of changing tides, a sudden turn in market preference may send urban plans out of orbit. The secret is providing sufficient free play to accommodate such shifts. In line with the evolving landscape of Buona Vista as an R&D and education hub, a site next to Buona Vista MRT station, which was initially zoned commercial, has been re-zoned White. This gives the future developer more flexibility in its development, providing the free play that could potentially eliminate any shifts in market preferences and possibly enhance the area further.

Likewise, the Harbourfront has seen a similar trend in providing more 'planning flexibility'. Notable changes in the region were the shift in sites at Telok Blangah Road that were initially zoned 'Subject to detailed planning - Residential' to 'Reserve' sites.

The 'planning flexibility' in this instance is not accorded to the private market but given to the statutory planners. The 'Reserve' zone effectively buys the planners some extra time to evaluate and deliberate on the optimal land use zones on these sites.

This shift in zoning could also be a reflection of the evolving market dynamism in the area, i.e. the shift in demographic profile in the surrounding neighbourhood, particularly in light of current developments such as Resorts World at Sentosa, Reflections at Keppel Bay, VivoCity and the HarbourFront offices.

Coupled with the government announcing its intention to create a leisure and recreational destination along the Southern Ridges by introducing a 2.2 km linear park along the Southern Ridges Park, this could potentially be an indication of future alternative plans for the area other than simply residential. Whatever the intention, we do know that the statutory planners are deliberating on the potential uses and are not ready to disclose the plans for these areas as yet.

Urban sustainability

While the 2008 Draft Master Plan has clearly articulated the medium-term planning objectives, it could be further enhanced with an expression of how our statutory planners perceive and support the issue of environmentalism, particularly on the concept of urban sustainability, which stems from greater environmental awareness today. Increasingly, we have seen more private occupiers demanding, and developers providing, environmentally friendlier buildings.

Urban sustainability is more than just green buildings; it contains the same basic principles of social, economic and environmental sustainability but applied to a bigger spatial context, i.e. the urban conurbation in which sub-systems such as transportation, housing, retail, education and tourism should be duly considered.

We have the first ever Leisure Plan that would see to the tripling of existing park connectors, providing residents 150 km of round-island access 24 hours a day. Could we see an Urban Sustainability Plan that sets the targets, deliverables and specific actions of each sub-system, all towards a sustainable urban environment?

The writer is the head of research, South-east Asia and Singapore, Jones Lang LaSalle

Tenants Cashing In On Rental Flats

Source : The Straits Times, May 29, 2008

Heavily subsidised HDB units, which are much in demand, are often sub-let to foreigners

SOME tenants in heavily subsidised HDB rental flats have been illegally sub-letting their homes to cash in on surging demand for cheap accommodation.

There are no official figures but tenants in some estates say that as many as one in five rental flats is rented out to foreign workers - a clear breach of HDB rules.

The flats are often leased to workers from Malaysia, China and India - who are either unaware that they are renting illegally or do so because the units are the cheapest option.

Property agents and tenants told The Straits Times that there is an increasing number of such flats put up for rent by people keen to cash in on foreign workers' demand for cheap housing.

A Malaysian, who declined to be named, told The Straits Times that she leases a two-room HDB rental flat in Toa Payoh with a friend for $700 a month.

That could be as much as $650 more than the subsidised rent - a tidy profit for the original tenant.

Their 'landlord' told them to keep windows shut and not to answer the door. The 35-year-old said she knew the deal was illegal but she was 'desperate for cheap housing', adding in Mandarin that 'If I didn't rent this flat, I can't afford anything else'.

The abuse of HDB rental flats comes amid soaring demand for such homes, which are meant for needy Singaporean families.

The waiting list has shot up by at least 30 per cent over the past few months, with about 4,000 applicants in the queue. This translates to a 15-month wait, which is double the time in 2006.

Eligible Singaporeans can apply for HDB rental flats and pay $26 to $205 for a one-roomer and $44 to $275 for a two-roomer, depending on household income and other factors. The HDB manages about 43,000 such flats and plans to add 20 per cent more.

A Member of Parliament for Ang Mo Kio GRC, Ms Lee Bee Wah, told The Straits Times that residents had complained about the problem when she visited Teck Ghee last month.

'People tell me their neighbours are renting their flats out. They should not be hogging the flats if they have an alternative place to stay,' said Ms Lee.

When The Straits Times called five property agents last week, four said they had one- and two-room flats available for rent. Most of these flats would be rental units, said HDB.

And it is not just low-paid foreign workers renting such flats.

A Singapore permanent resident from Malaysia said he used to rent such flats as they were the cheapest on the market.

The 28-year-old finance executive rented a two-room subsidised flat in Owen Road for $550 in 2006. A similar unit on the open market would cost at least $1,000. Now, government-subsidised flats can fetch $1,000 in good locations, he added.

When The Straits Times visited Toa Payoh rental blocks last week, some tenants said they noticed an increasing number of workers from China and Bangladesh living in their blocks.

Coffeeshop worker Poh Lee Tee, 45, said her neighbour frequently rented out his flat to Indian workers, who kept her up when they came home from work.

'But I don't want to report my neighbours, in case I get into trouble,' said Madam Poh.

Mr Wu Mu Song, 74, who has lived in one of the rental blocks for the past 30 years, estimated that two out of 10 flats are rented out illegally. 'This is unfair; there are others who need these flats more,' he said in Mandarin.

Although abuse of rental units is on the rise, Mr Wu said it was hard to catch illegal tenants as they often ignore visitors - including HDB officers.

Tenants illegally renting out their home can lose the flat and face a five-year ban from renting or buying HDB property.

The HDB recovered 17 flats in 2005 and 27 last year. The increase was due 'to better public awareness and feedback', it said.

It also conducts inspections at least once a year and carries out regular 'enforcement blitzes'.

One blitz recovered 57 rental flats in three months in 2003 and 35 in a crackdown that began last year in areas like Tampines, Ang Mo Kio, Toa Payoh and Bukit Merah.

Anyone aware of illegal renting can contact the HDB at flw1@hdb.gov.sg. or call 6490 2410.

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Cases of illegal sub-letting






Blk 63 TOA PAYOH LORONG 5

When The Straits Times visited this HDB rental block last week, we identified one unit where voices in a heavy Chinese accent could be heard. The windows were shut, save for a panel at the top where we could see a light and a suitcase. When we knocked on the door, the voices fell silent and, even after repeated knocks, nobody answered the door.

HDB also cited two recent case studies of tenants illegally sub-letting their rental flats.

Blk 3 JALAN BUKIT MERAH

A one-room flat at Block 3, Jalan Bukit Merah, was leased by the HDB to the tenant and her two children. An inspection in January revealed that the flat was sub-let to five Chinese nationals at a monthly rental of $900. The tenant was working in Malaysia while her two children were living with relatives.

Blk 805 KING GEORGE'S AVE

A two-room rental flat was leased to the tenant and his two children. An inspection by HDB revealed that the flat was sub-let to Chinese nationals for $800 per month. The tenant and his family were living with his mother at Chai Chee.

In the latter two cases, the units were recovered in January and February, and the tenants banned from renting HDB flats for five years.

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What's the penalty?

Tenants who illegally sub-let their flats will have their units recovered by HDB, and banned from buying or renting a flat from HDB for five years, while any unauthorised occupier (above 18 years old) will be barred for 2-1/2 years.

Canopy Wins Jury's Vote

Source : The Straits Times, May 29, 2008

DESIGN OF NATIONAL ART GALLERY

Studio Milou's winning concept is the favourite of the public as well

FRANCE'S Studio Milou Architecture, in collaboration with Singapore's CPG Consultants, has won the competition to design the upcoming National Art Gallery, housed in the former Supreme Court and the City Hall.

The design features a linear, draped canopy linking the two historically significant buildings at roof level. A new basement connecting the two buildings will also be built, which will showcase local and South-east Asian art when it is opened in 2013.

Dr Lee Boon Yang, Minister for Information, Communications and the Arts, announced the choice at a news briefing yesterday.

An international jury panel of seven picked three winning designs from 111 entries in a design competition which began last February. The shortlist was unveiled last August.

The jury nominated Studio Milou's concept as top among the three. The design also won over the public.

An exhibition of all the 111 entries was held at City Hall last October, and more than half of 332 visitors interviewed picked Studio Milou's design as their favourite.

PUSHING BOUNDARIES: A new glass roof structure will provide a spectacular exhibition space bathed in filtered natural light. The mesh-like canopy will link the former Supreme Court and the City Hall at the roof level. -- ARTIST'S IMPRESSIONS: STUDIO MILOU

Mr Koh Seow Chuan, chairman of the National Art Gallery Executive Committee, said that the public's continued support is needed 'to build a world-class institution and one that all Singaporeans will be proud of'.

Other factors that determined Studio Milou's win included technical evaluation, track records of the firm and cost evaluation. 'Studio Milou's estimated development cost was within the $320-million budget,' said Dr Lee.

The National Art Gallery was initially scheduled to be completed by 2012. Dr Lee explained that delaying the project by a year will avoid the current resource squeeze in the construction industry.

The Singapore Art Museum (SAM) is assisting the Art Gallery in content development. SAM's director Kwok Kian Chow said the design shows a good understanding of how the art pieces, the buildings' architectural heritage and contemporary design will build the character of this new museum.

Local architectural experts also approve of the design.

Dr Milton Tan, director of the DesignSingapore Council, said: 'This is the one that pushed boundaries and offers new experiences expected of modern art galleries today.'

Architect Mink Tan of Mink Tan Architects felt that though the canopy is 'flamboyant', its mesh-like, floral design will appeal to the public. 'It will be a good gesture to bring in crowds to an art gallery,' he added.

The other two shortlisted architectural firms were Taiwan's Ho + Hou Studio Architects, which proposed building a framework in wood laminate, and Singapore's Chan Sau Yan Associates, which suggested building another level on City Hall's roof.

The jury included Professor Tommy Koh, Singapore's ambassador-at-large and chairman of the National Heritage Board, Dr Jean-Francois Jarrige, president of the Guimet Musee National des Arts Asiatiques in France, and Dr Kenson Kwok, director of the Asian Civilisations Museum.

Mr Jean-Francois Milou, lead partner of Studio Milou, said his design will 'give Singaporeans a sense of being at home while at the Art Gallery.'

Ho Chi Minh City Overtakes S'pore As Having World's Fastest Growth In Office Rrentals

Source : Channel NewsAsia, 28 May 2008

Vietnam's Ho Chi Minh City has overtaken Singapore as having the world's fastest growth in office occupancy cost.

The cost of renting office space in Ho Chi Minh City grew 94 percent in the last six months, according to a global survey by consultants CB Richard Ellis.

Skyscrapers in Singapore's Central Business District

Moscow was second at 93 percent, while Singapore took third spot with an 86 percent growth rate.

Still, Singapore made its debut among the 10 most expensive markets, coming in 9th, with office rentals averaging US$139 per square foot per month.

Dubai was another new entrant, taking tenth spot, with rents hitting US$128 per square foot per month.

Despite this, CB Richard Ellis said Singapore's growth in office occupancy cost is not expected to remain as strong in the coming years. It said the market peak is close at hand and rents could come down with the supply of new office space in the next few years.

London remains the most expensive office market, with rents hitting as high as US$300 per square foot per month, followed by Moscow at US$232 and Tokyo at US$220. - CNA/ir

Property Analysts Say Muted Property Market Situation Is Temporary

Source : Channel NewsAsia, 28 May 2008

Investors have been cautious about the property sector amid expectations that the muted residential property market will weaken further. However, some property consultants are taking a slightly more positive stance, saying that this situation is temporary.

Transaction volumes for private homes have been thin, with developers holding back launches or cutting prices. And recently, there have been a slew of bearish reports from the likes of JP Morgan and Nomura, which are further dampening sentiment.

They said that private home prices could drop by as much as 35 per cent in the upper-end segments of the private residential property market by 2010 due to excess supply and poor sentiment.

They argue that marginal speculative sellers are likely to drive prices lower amid low transaction volumes and higher unsold pre-sale inventories.

Lower rental expectations and a large increase in supply are also seen compounding the situation in the longer term. Some also said the middle and low-end segments will not be spared.

But there are some property consultants who said that while things are slow now, dynamics will change going forward.

While the consensus view is that prices will continue to remain under pressure for the rest of the year and into 2009, some consultants said that the main reasons for falling prices are external.

Chua Chor Hoon, Senior Director, Research, DTZ Debenham Tie Leung, said: "It's mainly the external factor, because of what's happening in US, so sentiments are really weak now.

"(It's also) partly because prices have gone up quite a lot last year - especially after the deferred payment scheme has been removed that made buyers more cautious. It's a combination of factors, but I believe it's the US economy that has a greater impact."

She believes that prices will continue falling for the rest of this year and even into the year ahead, but a glimmer of hope exists.

Ms Chua said: "Prices are likely to fall for the rest of this year and they could continue to fall next year depending on how the US economy pans out.

"But we have a lot of good things coming up in 2010 - Youth Olympics, integrated resorts. So our fundamentals are quite strong. When the US economy picks up, I believe sentiments will follow suit."

And some point out that the bearish reports are due to an over-estimation of supply numbers.

Ku Swee Yong, Director, Marketing & Business Development, Savills (Singapore), said: "The differences arose because of variance in the interpretation of a very basic set of data - the supply numbers - how many apartments will be completed in the next three years.

"We believe that the supply numbers have been overstated because there have been many projects filed and we know that these projects have been delayed."

What is clear though is that shares in property developers have been taking a hit amid concerns over the property outlook. Most of them closed lower on Wednesday. - CNA/vm