Developers To Unveil More Modestly-Priced Condos

Source : The Business Times, June 10, 2008

Dakota slated for preview this month at under $1,000 psf average, lower than earlier indicated

Developers are getting ready to release mass- to mid-market condos, encouraged by the response to modestly-priced developments recently.

City Developments Ltd (CDL) previewed Shelford Suites about a week ago at an average price believed to be around $1,550 psf, although CDL's spokeswoman said the average price for the five-storey freehold project in the Shelford/Adam roads vicinity is in the $1,500 to $1,700 psf range.

Testing the market: CDL previewed Shelford Suites about a week ago at $1,500-$1,700 psf. The group is also aiming to preview the first phase of Livia, a condo in Pasir Ris, by month's end or early July.

The property giant is also aiming to preview by the end of this month or early July the first phase of Livia, a 724-unit condo at Pasir Ris Drive 1.

The 99-year leasehold condo, near Pasir Ris MRT Station, is being developed by a joint venture involving CDL, Hong Realty and Hong Leong Holdings.

'The average price will be revealed closer to the preview,' CDL's spokeswoman said.

However, market expectation is that CDL will price the project attractively, at below $700 psf for the initial phase.

Those taken in by the charms of riverfront-living close to the city can look forward to Ho Bee's and NTUC Choice Homes' preview of The Dakota later this month.

The average price of the 99-year leasehold condo is expected to be 'under $1,000 psf', BT understands. This is lower than than the $1,000-1,100 psf average price expectation Ho Bee had indicated in June last year when the developers emerged as the top bidder for the plot at a state tender.

The 348-unit project is expected to be 20 storeys high and will front Geylang River. It will also be close to Dakota MRT Station, which opens on the Circle Line next year. The Dakota will comprise six blocks with a mix of two-, three- and four-bedroom apartments, and penthouses.

Over in Pasir Ris, CDL's spokeswoman said that the company is in 'in the final stage' of preparing a phased soft launch of Livia. The condo is targeted at the mass market and will comprise several blocks of 15 to 16 storeys with two-, three- and four-bedroom apartments, and penthouses.

Elsewhere on the island, freehold projects with tiny studio units dubbed 'shoebox apartments' (ranging from under 400 sq ft to about 500 sq ft in size) in places like Sophia Road and Race Course Road, have been selling fairly quickly at around $1,100 to $1,400 psf in the past couple of months.

Over in the Botanic Gardens vicinity, UOL Group, Kheng Leong and Orix Corporation will officially launch today Nassim Park Residences condo.

Nearly 50 units have been sold at an average $3,000-3,200 psf since the preview began the week of Vesak Day, although this is expected to go up slightly from today.

罗里斯德园20栋黑白洋房 将改为优质服务别墅出租

《联合早报》June 9, 2008

裕廊集团(JTC)计划把罗里斯德园(Rochester Park)内的20栋黑白洋房，发展为优质服务别墅(quality serviced villas)并出租给公众。

市场人士相信，这项目不但将成为我国首批拥有“服务”元素的有地住宅之一，更受到在波那维斯达一带工作的外籍人士，及本地高收入单身“雅皮士”(yuppies)的欢迎。

裕廊集团计划把罗里斯德园的20栋黑白洋房发展为优质服务别墅

根据本报了解，这20栋双层黑白洋房属于我国大型科技城“纬壹”(one-north)计划的一部分，距离罗里斯德园内的餐馆仅步行之隔，也相当靠近波那维斯达地铁站。裕廊集团初步计划把它们进一步装修成服务别墅并将之出租，至于时间表、是否交由私人发展商发展等仍有待确定。

受访的分析师指出，本地对拥有悠久历史的黑白住宅向来拥有良好的需求，该项目地点方便、靠近市区，加上罗里斯德园结合绿意及流行餐饮休闲的概念，应该会引起市场、尤其是在附近及“纬壹”科技城工作人士的浓厚兴趣。

然而，高力国际(Colliers)研究部主管郑惠匀指出，黑白洋房吸引的主要租户应该多为外国人。

她说：“新加坡人一般上都喜欢自有住宅，这些出租服务别墅所吸引的应该大多是外国人，但职位应不会及‘总裁’水平。唯一有可能产生兴趣的本地人很可能是高收入单身雅皮一族，以及在附近工作的科研人才。”

整个配套租金叫价 料可超越黄金地段洋房

至于租金范围，世邦魏理仕(CB Richard Ellis)执行董事李晓和表示，别墅增添了“服务”元素，整个配套叫价相信可超越本地黄金地段洋房的租金。

他说：“本地黄金地段洋房月租介于1万8000元和2万5000元之间，别墅配套里包括各种服务，推出后将可叫价达黄金地段洋房的水平，甚至更多。”

最近，从30年代英国殖民地时期保存下来的黑白有地住宅备受本地市场青睐。土地管理局(SLA)今年起，以两年期标租形式向外开放的36栋黑白住宅都获得热烈反应，成交租金平均高于租金指标(guidance rent)的30％，在热门地区增幅甚至高达一倍。

据了解，实里达和三巴旺的黑白住宅的成交月租达1万8000元，亚历山大(Alexandra Park)超过2万元，杜佛街(Dover Street)一带则超过1万5000元，它们部分以半装修形式出租。

裕廊集团也将进一步把罗里斯德园从目前以餐饮为主的休闲区，发展成为全方位生活方式中心(holistic lifestyle centre)。园内11栋面积各为300平方米的黑白洋房中，目前有五栋租给餐饮业者，其他租户包括一个治疗范围包括语言和睡眠障碍的多元化保健中心。

Makeover To Turn Paya Lebar Into Commercial Node

Source : The Sunday Times, June 8, 2008

Traditional Malay character to add unique flavour to area's development

Paya Lebar was one of Singapore's earliest commercial hubs, but it now stands neglected and underdeveloped, with the Singapore Post Centre building its sole marker of modernisation.

Within the next 15 years, however, all that will change.

The Paya Lebar Station Plaza, seen here as an artist's impression, is part of the Government's draft masterplan to position the area into a fringe hub along the lines of Novena and Buona Vista. -- PHOTO: URA

The neighbourhood around the Paya Lebar MRT station is slated for a major makeover as part of the Government's recently unveiled draft masterplan.

It will be transformed into Paya Lebar Central, a suburban commercial node nestled between the city centre and the bustling Tampines commercial hub.

About 12ha of land around Sims Avenue and Geylang Road will be put up for development, yielding some 5.4 million sq ft of commercial space.

More than half of this space has been earmarked for offices. The rest will be for shops and hotels with about 1,400 rooms.

While Paya Lebar will be positioned as a fringe hub along the lines of Novena and Buona Vista, the area's traditional local Malay character will add a unique flavour.

Apart from the new commercial buildings, some upcoming developments include landscaped public spaces around the cleaned-up Geylang River, a pedestrian mall along Geylang Road, and a new plaza square and civic centre next to the rebuilt Geylang Serai Market.

All these exciting plans make Paya Lebar an 'interesting sub-regional centre', said Mr Chia Ngiang Hong, the group general manager of property developer City Developments.

'It has the potential to become as successful as Novena,' he said at the masterplan's launch last month.

But what does this all mean for potential investors and current owners of Paya Lebar properties?

Property consultants say it is a bit premature to predict any trend in property values right now or even in the next few years.

Over time, however, starting from about five years from now, properties in the area will almost definitely become more valuable, they add.

Office buildings and shopping centres are the most obvious beneficiaries, said Dr Chua Yang Liang, the head of South-east Asia research at property consultancy Jones Lang LaSalle.

'The plans to improve Paya Lebar will have a long-term impact on the properties around the area,' he said. 'The first thing that comes to mind is that the commercial assets will benefit from the increased activity once things start to take shape.'

There are limited avenues for small-time investors to take advantage of, though, as there are not that many strata-titled commercial properties in the immediate area. The few that exist include City Plaza.

Dr Chua said, however, some properties in the nearby Geylang area might enjoy a spillover effect. Prices and rents of office and shop units there, such as coffee shops, have been on the rise recently.

Mr Li Hiaw Ho, executive director of CB Richard Ellis (CBRE) Research, also said hi-tech industrial buildings in the vicinity of Paya Lebar Central were likely to rise in value over time.

As for residential developments, there are currently no plans for new housing sites in Paya Lebar. This, however, may prove a boon to existing homes in the area.

Their prices and rentals are expected to rise, as the critical mass of workers that will flow into the commercial hub look for homes nearby to buy or rent, consultants say.

Currently, there are few major projects in the vicinity. Most apartment blocks are boutique developments around Guillemard Road, Guillemard Crescent, Sims Avenue, Haig Road and Geylang.

Prices differ widely, depending on the area, according to CBRE, citing data from the Urban Redevelopment Authority.

CBRE's analysis show some recent launches, such as Esta Ruby in Guillemard Road and Cosmo in Guillemard Crescent, have commanded prices well above $1,000 per sq ft (psf).

Latest transactions for nearby developments along Haig Road, such as Butterworth 8 and Haig Garden, have fetched prices hovering around $1,000 psf.

Others, such as Sunflower Regency in Lorong 20 Geylang, are hovering at between $500 psf and $600 psf.

The same trends can be seen for completed projects. Homes in Geylang proper - including those in Sims Green, The Sunny Spring, Wing Fong Mansions, The Waterina and Aston Mansions - have been transacted recently at well below $600 psf.

On the other hand, homes in Geylang East, in projects such as Simsville and Central Grove, have been sold for $600 to $900 psf.

Le Crescendo, one of the rare condominiums along Paya Lebar Road, is fetching between $800 psf and $1,000 psf for its newly completed units.

As for public housing, prices for a three-room flat in the Geylang town range from $170,000 to $300,000, according to sales in the last three months. Prices are lower in estates along Paya Lebar Way, Eunos Crescent, Balam Road and Circuit Road, and higher in Haig Road and Aljunied Crescent.

Five-room flat prices range from below $300,000 in the Ubi area to well above $400,000 in Eunos Crescent.


Development plan

Within the next 15 years, about 12ha of land in Paya Lebar will be put up for development around Sims Avenue and Geylang Road, which will yield some 5.4 million sq ft of commercial space.

Emerging Markets Weather Property Bust In The West

Source : The Straits Times, June 7, 2008

Urbanisation, rising incomes fuelling demand in Brazil, Russia, India, China

LONDON- WESTERN housing bust or not, real estate in emerging markets continues to be hot property.

The global credit crunch sent property prices skidding in developed markets from the United States to Spain, but it seemed to have done little to slow the real estate sector in emerging economies such as Brazil and Russia - still thriving on a commodities boom and increased access to mortgage-financing.

The dire combination of slowing economic growth and rising inflation may be prompting some investors to shun emerging market bonds and equities, but others are positioning themselves for property values to rise further in emerging markets.

'We're advising investors to own land and to buy into real estate brokers, construction firms or suppliers of raw materials. For purer property-related plays, we are recommending some property developers,' said Mr Jonathan Garner, the head of emerging markets strategy at Morgan Stanley.

Growing urbanisation and rising incomes are fuelling property demand in developing giants Brazil, Russia, India and China, or BRICs. Low interest rates in US dollar-peg economies such as the United Arab Emirates and a shortage of homes and offices are conspiring to keep real estate values there at record highs, too.

And unlike their counterparts in developed economies, banks in most emerging markets are largely unaffected by the liquidity squeeze sparked last year by massive sub-prime mortgage defaults in the US.

In a report on Thursday, Fitch Ratings said home builders in the BRIC economies were supported by rising home affordability and economic growth, though they faced risks such as less predictable legal and regulatory environments.

'The credit crunch has very limited relevance for many emerging markets. Not only are the banks in good shape, you've also got households that are not overextended,' Mr Garner said.

The ratio of household debt to gross domestic product in Brazil, Russia, India and China ranges between 5 per cent and 10 per cent, compared to over 100 per cent in the Britain and 90 per cent in the US, he said.

Soaring consumer prices - particularly vexatious for emerging economies as they typically spend more on food as a percentage of income than developed countries do - are also making the sector's inflation-linked rents an attractive hedge.

Fund managers say the overall rise in asset values from inflation could make real estate more attractive, although it raises borrowing costs for developers and buyers.

Paradoxically, the allure of bricks-and-mortar assets may be further burnished as a result of weakening equity values, which have fallen nearly 6 per cent in emerging markets since the start of the year.

Mr Jeff Chowdhry, the head of emerging equities at F&C Investments, said: 'When stock markets go down, some investors see physical assets, such as property, as a 'safe haven'.'

He is upbeat about Mexico and Brazil, where mortgage growth is making middle-class home ownership more affordable, but cautious about India, where residential property appears overvalued, and Turkey.

'We don't believe a property rise is sustainable when stock prices continue to fall and interest rates rise,' he said.

Since the start of the year, Turkey's stock market has lost 27 per cent of its value, while its lira has waned 5 per cent against the US dollar.

Still, Britain-based property fund manager Cordea Savills is undeterred.

This unit of British property services firm Savills is raising 400 million euros (S$844.8 million) for a property fund aimed at Turkish retail and residential real estate with a targeted 25 per cent investment rate of return.

'This is a country of some 70 million people, with half of the population under 30 and with an average annual population growth of about 1 per cent. The economy is slowing but coming down from a high base,' said Mr Ian Jones, Cordea Savills' director of investments.

The growing spending power of emerging market consumers means retail property in these economies is particularly promising, argues Mr Biljana Bozic, the head of real estate at East Capital.

'Retailers want to expand but can't find available space.'

Wee Family Goes Condo-Shopping

Source : The Business Times, June 7, 2008

Its members pick up three units in Nassim Park Residences for $40m

Members of the Wee family have bought three units at Nassim Park Residences near Botanic Gardens for a total of nearly $40 million, a filing by UOL Group to Singapore Exchange (SGX) on Wednesday shows.














Wee Ee Cheong, CEO of United Overseas Bank and son of UOL chairman and controlling shareholder Wee Cho Yaw, picked up a penthouse for $18.33 million or $2,670 per square foot (psf).

Two of his siblings bought a sky unit each in the five-storey freehold condo at about $10.6 million each. Wee Ee Chao, who sits on the UOL board, bought a unit with his wife Jennifer for $3,308 psf, while his sister Wei Chi snapped up a unit for herself for $3,293 psf.

The SGX filing also showed that UOL director Alan Choe's son Jonathan, through his company Montgomery Hills, bought a ground-floor unit, that comes with its own pool, for nearly $11.5 million or $2,513 psf.

Buyers of the four units received a special 2 per cent discount. More than 40 units have been sold in the development, which has a total 100 units, since its preview began the week of Vesak Day.

The average price achieved is said to be somewhere in the $3,000-$3,200 psf band, although analysts expect the developer to raise prices slightly when the project is officially launched next week. The project is being marketed by CB Richard Ellis and Savills.

The units in the development are priced at $10 million and above, with each having at least four bedrooms.

Nassim Park Residences has drawn a good mix of local and foreign buyers, and market watchers attribute its encouraging take-up to its 'reasonable pricing'.

'Had this project been launched a year ago, it could have been priced in the mid to high-$3,000 psf range, on average,' a market watcher said.

UOL is developing Nassim Park Residences jointly with Kheng Leong group (a privately owned vehicle of the Wee family) and Japan's Orix Corporation, on the former Nassim Park condo site that UOL bought in August 2006 for $380 million.

Its land cost worked out to about $1,131 psf of potential gross floor area inclusive of an estimated development charge of $8 million at the time. The breakeven cost then for a new development on the site was estimated at $1,600-1,700 psf.

UOL has also sold over 40 units of its 88-unit Breeze by the East condo along Upper East Coast Road near The Bayshore since it began selling the project around mid-April.

The five-storey freehold project was initially priced at about $950 psf on average, but this has since been raised to $980 psf, BT understands.

Even so, the pricing is considered attractive compared with the $1,600-$1,700 psf average price that Tiong Aik picked for its 20-storey freehold Parc Seabreeze in the Marine Parade/Joo Chiat area in early May.

Tiong Aik has since withdrawn the project from the market.