Source : The Straits Times, Sep 2, 2008
Building premium waiver will boost upkeep of ageing property
A LEVY that property owners had to pay the Government when they extended a lease on state land has been axed.
The so-called 'building premium' is being waived with immediate effect, said the Law Ministry yesterday.
The move gets rid of a potential hindrance to owners keen to upkeep, improve or redevelop an ageing property nearing the end of its lease.
It will help owners of industrial land, which tends to have shorter leases, and conservation properties but will have little effect on residential sites.
The Government has been charging both a land premium and a building premium when extending a lease.
'The charging of these premiums was based on the common law principle that both land and buildings would revert to the landlord at the end of the lease,' said a statement from the Law Ministry.
In the past, the Chief Valuer, who decides the premiums, had computed the building premium, if applicable, into the land premium. This made it unclear how much of the building premium makes up the land premium.
It is understood that only owners of a handful of sites, including industrial properties and conservation shophouses, have had to pay the building premium upon lease extension.
In general, the Government's policy is still to allow leases to expire without extension because it needs to reallocate land to meet fast-changing socio-economic needs. It will consider lease extensions only on a case-by-case basis.
Industrial properties are likely to benefit more from the levy waiver. Residential en bloc sites are not affected. Under redevelopment, the estate sold en bloc is torn down so no building charge is payable even if the site's 99-year lease is extended.
There is no building premium payable when leases are renewed on vacant land.
Yesterday's move is not entirely new. In 1997, the Government waived the building premium for short-term or 30-year-old industrial and institutional leases on the recommendation of the Committee on Singapore's Competitiveness, said the Law Ministry.
The latest waiver applies to all types of land, including longer industrial leases and residential properties.
It said the decision was made to encourage 'lessees to continue to invest in the upkeep and improvement of the property' when a lease extension is granted.
Previously, if an owner was granted a lease extension, he could opt not to redevelop the property if there was only a few years left on the lease.
He would be able to avoid paying a building premium if he let the lease run out and redeveloped the property only when the new lease started.
The waiver will give the owner no reason to hold back on redevelopment plans.
The waiver will please some owners of conservation shophouses, said Knight Frank's director of research and consultancy, Mr Nicholas Mak.
Rising construction costs could make it worthwhile for some owners to upkeep their buildings instead of tearing them down for redevelopment, he said.
Overall, waiving the building premium is expected to affect only a small group of owners, market watchers say.
'It's about urban renewal but in Singapore, the strategy is to demolish and rebuild,' said Mr Mak. Also, market watchers say most buildings are not built to last forever, particularly those on leasehold sites.
'Properties generally become obsolete after 30 years,' he said. 'Factories, for instance, may become obsolete within a shorter period because of changing technology and changing manufacturers' needs.'
The question of lease renewal will be a big issue nearer to 2070, when most of the leases on Singapore's 99-year leasehold land will expire, Mr Mak added.
Waiver aimed at lessees of state land
# What is a building premium?
It is a charge payable by an owner when he extends the lease on state land.
The amount is determined by the chief valuer but not disclosed as it is computed into the land premium.
The premium is calculated based on the building's condition. Lessees tended to let properties run down until the leases expire in the hope of paying less when they extend their lease.
# Why waive it?
It is to encourage lessees to continue to invest in the upkeep and improvement of a property when a lease extension is granted so they will not let the site run down.
If a building premium is payable, lessees will not be motivated to upkeep, improve or redevelop a property.
It is not meant as an incentive but rather removes a factor that may have discouraged improvement work.
# What's the impact?
The waiver is expected to have minimal impact as few people will be affected, although lessees of long-term industrial land are among those likely to benefit.
In general, the Government will allow leases to expire without extension. It will consider lease extensions on a case-by-case basis. For instance, it may allow extensions for conservation properties to give as incentive for lessees to carry out major conservation works.
Tuesday, September 2, 2008
Now, Deferred Payments With A Twist
Source : The Business Times, September 2, 2008
Credit-worthy buyers offered loans with no interest and instalment payment until TOP
deferred payment scheme may have been banned, but something strikingly similar is doing the rounds to help developers sell their properties.
The interest absorption scheme (IAS) and the zero instalment scheme allow the buyer to make a 20 per cent downpayment - and then pay nothing until the temporary occupation permit, which may still be up to three years down the road.
Maybank, OCBC Bank and United Overseas Bank (UOB) are currently offering the scheme. Standard Chartered Bank is launching it soon, according to Dennis Khoo, its general manager of lending. Interestingly, DBS Bank has decided to stop offering such schemes.
The deferred payment scheme was banned by the government last October to dampen excessive speculation. It was offered by buyers and you did not even have to qualify as a borrower to buy property worth millions of dollars - as long as you had funds for the downpayment.
Under the new schemes, the buyers have to sign up to a bank loan for the property. 'The buyer has to be credit-worthy,' said Nicholas Mak, Knight Frank's director of research and consultancy. Once the creditworthiness is established, the buyer pays nothing more till TOP. During that period, it is the developer that pays interest to the bank, under the IAS.
Some small projects such as Chepstow Ville and Lynwood Grove are practically sold out after resorting to the IAS. However, the developer of another project who asked not to be named said the IAS has not helped his sales and he thinks it is the pricing that could be critical.
DBS Bank used to offer a zero instalment home loan scheme until TOP to buyers. The results were not always clear-cut. At the preview period of the 724-unit Livia, 160 units were sold in early July when DBS Bank offered a zero instalment home loan scheme. Subsequently, sales at the Livia slowed down and by end-July, it had sold 301 units, according to the latest data from the URA.
DBS said that the bank no longer offers the scheme. 'We had targeted the HDB upgraders on a project-by-project basis,' said Koh Kar Siong, DBS' head of deposits and secured loans. Some observers say such schemes could come back to bite the banks if the value of the properties fall. Last month, Citi analyst Wendy Koh said she expects a 20-30 per cent price correction for high-end properties from their recent peak, and reckons the mid-tier is likely to decline 10-20 per cent.
Said Helen Neo, Maybank Singapore head of consumer banking: 'Our credit assessment policy has always been to ensure that the buyer has the capacity to repay. It boils down to repayment capability.'
Kevin Lam, UOB head of loans, said the assessment of the customer is key. 'If the profile of the customer is good for a regular loan, he is good enough for this.' He also noted that the risks to the developer is lower with the IAS because the bank will disburse the loan to the developer according to the progressive payment schedule during construction. 'Unlike the deferred payment scheme, the developer gets no money from the buyers during the construction period.'
Gregory Chan, OCBC Bank head of secured lending, noted: 'Under the interest absorption scheme, the bank will not be exposed to additional risk as loan applicants are assessed based on their ability to repay both the principal and the subsequent instalments.'
Credit-worthy buyers offered loans with no interest and instalment payment until TOP
deferred payment scheme may have been banned, but something strikingly similar is doing the rounds to help developers sell their properties.
The interest absorption scheme (IAS) and the zero instalment scheme allow the buyer to make a 20 per cent downpayment - and then pay nothing until the temporary occupation permit, which may still be up to three years down the road.
Maybank, OCBC Bank and United Overseas Bank (UOB) are currently offering the scheme. Standard Chartered Bank is launching it soon, according to Dennis Khoo, its general manager of lending. Interestingly, DBS Bank has decided to stop offering such schemes.
The deferred payment scheme was banned by the government last October to dampen excessive speculation. It was offered by buyers and you did not even have to qualify as a borrower to buy property worth millions of dollars - as long as you had funds for the downpayment.
Under the new schemes, the buyers have to sign up to a bank loan for the property. 'The buyer has to be credit-worthy,' said Nicholas Mak, Knight Frank's director of research and consultancy. Once the creditworthiness is established, the buyer pays nothing more till TOP. During that period, it is the developer that pays interest to the bank, under the IAS.
Some small projects such as Chepstow Ville and Lynwood Grove are practically sold out after resorting to the IAS. However, the developer of another project who asked not to be named said the IAS has not helped his sales and he thinks it is the pricing that could be critical.
DBS Bank used to offer a zero instalment home loan scheme until TOP to buyers. The results were not always clear-cut. At the preview period of the 724-unit Livia, 160 units were sold in early July when DBS Bank offered a zero instalment home loan scheme. Subsequently, sales at the Livia slowed down and by end-July, it had sold 301 units, according to the latest data from the URA.
DBS said that the bank no longer offers the scheme. 'We had targeted the HDB upgraders on a project-by-project basis,' said Koh Kar Siong, DBS' head of deposits and secured loans. Some observers say such schemes could come back to bite the banks if the value of the properties fall. Last month, Citi analyst Wendy Koh said she expects a 20-30 per cent price correction for high-end properties from their recent peak, and reckons the mid-tier is likely to decline 10-20 per cent.
Said Helen Neo, Maybank Singapore head of consumer banking: 'Our credit assessment policy has always been to ensure that the buyer has the capacity to repay. It boils down to repayment capability.'
Kevin Lam, UOB head of loans, said the assessment of the customer is key. 'If the profile of the customer is good for a regular loan, he is good enough for this.' He also noted that the risks to the developer is lower with the IAS because the bank will disburse the loan to the developer according to the progressive payment schedule during construction. 'Unlike the deferred payment scheme, the developer gets no money from the buyers during the construction period.'
Gregory Chan, OCBC Bank head of secured lending, noted: 'Under the interest absorption scheme, the bank will not be exposed to additional risk as loan applicants are assessed based on their ability to repay both the principal and the subsequent instalments.'
Developers Starting To Preview Projects
Source : The Straits Times, Sep 02, 2008
With Hungry Ghost month over, condo projects being launched to test market
NOW that Hungry Ghost month is over, property developers are starting to line up project previews and launches to test the market.
Keppel Land released a new high-rise tower block at its Reflections at Keppel Bay on the weekend, putting up a third of the block's 83 units for sale in Singapore and
Hong Kong.
An artist's impression of Reflections at Keppel Bay. Units in a new tower block there were released for sale over the weekend. -- PHOTO: KEPPEL CORP
About 10 apartments have been sold since Saturday, at an average of just over $2,000 per sq ft (psf). Prices range from $1,500 to $2,300 psf, depending on the floor and the view.
A two-bedroom apartment on a low floor would cost about $1.5 million, according to property agents. Reflections has a total of 1,129 units in six high-rise tower blocks and 11 low-rise villa blocks.
Also on the weekend, Far East Organization invited interested buyers to its showflat for Miro in Lincoln Road, which sources say will be launched in about two weeks.
The freehold 85-unit development is priced at around $1,700 per sq ft (psf) on average, they said. Prices start at about $1.6 million for a one-bedroom studio loft of 990 sq ft.
Also available in the 32-storey tower are two-bedroom units of 1,302 sq ft and three-bedroom lofts at more than 1,600 sq ft.
A boutique project at nearby Moulmein Road starts previews this weekend with plans for a launch next Monday.
Mulberry Tree has 32 freehold units and a 'retro-style' facade, said an agent marketing the development. Indicative prices have been set at $1,300 to $1,500 psf. They start at less than $700,000 for the smallest apartment.
Agents said the two-bedroom flats, of about 710 sq ft each, would cost around $900,000. The project is forecast to be completed at the end of 2011.
Developer Hong Fok is expected to preview its Concourse Skyline in Beach Road later this month. Prices are likely to range from $1,600 to $2,000 psf, with two-bedroom units priced upwards of $1.8 million, The Straits Times understands.
The 360-unit development is slated to be completed in 2013.
Tat Aik Group has also started to preview its Nathan Residences, which will be developed on the former Nathan Court in Nathan Road.
Sales are expected to start this week, with prices in the region of $2,000 psf, said marketing agents. One-bedroom units will start at $1.2 million and two-bedroom apartments are likely to go for $1.6 million.
With Hungry Ghost month over, condo projects being launched to test market
NOW that Hungry Ghost month is over, property developers are starting to line up project previews and launches to test the market.
Keppel Land released a new high-rise tower block at its Reflections at Keppel Bay on the weekend, putting up a third of the block's 83 units for sale in Singapore and
Hong Kong.
An artist's impression of Reflections at Keppel Bay. Units in a new tower block there were released for sale over the weekend. -- PHOTO: KEPPEL CORPAbout 10 apartments have been sold since Saturday, at an average of just over $2,000 per sq ft (psf). Prices range from $1,500 to $2,300 psf, depending on the floor and the view.
A two-bedroom apartment on a low floor would cost about $1.5 million, according to property agents. Reflections has a total of 1,129 units in six high-rise tower blocks and 11 low-rise villa blocks.
Also on the weekend, Far East Organization invited interested buyers to its showflat for Miro in Lincoln Road, which sources say will be launched in about two weeks.
The freehold 85-unit development is priced at around $1,700 per sq ft (psf) on average, they said. Prices start at about $1.6 million for a one-bedroom studio loft of 990 sq ft.
Also available in the 32-storey tower are two-bedroom units of 1,302 sq ft and three-bedroom lofts at more than 1,600 sq ft.
A boutique project at nearby Moulmein Road starts previews this weekend with plans for a launch next Monday.
Mulberry Tree has 32 freehold units and a 'retro-style' facade, said an agent marketing the development. Indicative prices have been set at $1,300 to $1,500 psf. They start at less than $700,000 for the smallest apartment.
Agents said the two-bedroom flats, of about 710 sq ft each, would cost around $900,000. The project is forecast to be completed at the end of 2011.
Developer Hong Fok is expected to preview its Concourse Skyline in Beach Road later this month. Prices are likely to range from $1,600 to $2,000 psf, with two-bedroom units priced upwards of $1.8 million, The Straits Times understands.
The 360-unit development is slated to be completed in 2013.
Tat Aik Group has also started to preview its Nathan Residences, which will be developed on the former Nathan Court in Nathan Road.
Sales are expected to start this week, with prices in the region of $2,000 psf, said marketing agents. One-bedroom units will start at $1.2 million and two-bedroom apartments are likely to go for $1.6 million.
Pedra Branca: New Joint Panel Formed
Source : The Straits Times, Sep 2, 2008
SINGAPORE and Malaysia have set up a new sub-committee to deal with maritime, airspace and fishing matters around Pedra Branca, Middle Rocks and South Ledge.
Both sides will also finalise over the next few weeks technical preparations for a joint survey of the area.
ST PHOTO: TERENCE TAN
That will pave the way for eventual discussions on how to delimit the territorial seas there.
Both sides yesterday provided an update on issues relating to the enforcement of the International Court of Justice (ICJ) judgment on sovereignty over the three maritime features.
The update followed the second meeting of the Joint Technical Committee on Aug 20 at Malaysia's seat of government in Putrajaya.
In May, the ICJ awarded Pedra Branca to Singapore and Middle Rocks to Malaysia. It also ruled that South Ledge belonged to whoever owns the territorial waters it sits in.
The three features in the Singapore Strait are located some 40km east of the Republic's main island.
At the latest meeting, both sides agreed that the new sub-committee on maritime and airspace management and fisheries should continue to hold discussions in the following weeks.
They also gave the go-ahead for fishermen to continue with their traditional fishing activities in waters beyond 0.5 nautical miles off the three maritime features.
The joint press statement issued yesterday, by Malaysia's Foreign Minister Rais Yatim and Singapore's Foreign Minister George Yeo, reiterated both countries' commitment to 'honour and abide by the ICJ's judgment and fully implement its decision'.
The Joint Technical Committee, co-chaired by Malaysia's Foreign Ministry secretary-general Rastam Mohd Isa and Singapore's Permanent Secretary for Foreign Affairs Peter Ho, is due to meet again in the middle of this month in Singapore.
SINGAPORE and Malaysia have set up a new sub-committee to deal with maritime, airspace and fishing matters around Pedra Branca, Middle Rocks and South Ledge.
Both sides will also finalise over the next few weeks technical preparations for a joint survey of the area.
ST PHOTO: TERENCE TANThat will pave the way for eventual discussions on how to delimit the territorial seas there.
Both sides yesterday provided an update on issues relating to the enforcement of the International Court of Justice (ICJ) judgment on sovereignty over the three maritime features.
The update followed the second meeting of the Joint Technical Committee on Aug 20 at Malaysia's seat of government in Putrajaya.
In May, the ICJ awarded Pedra Branca to Singapore and Middle Rocks to Malaysia. It also ruled that South Ledge belonged to whoever owns the territorial waters it sits in.
The three features in the Singapore Strait are located some 40km east of the Republic's main island.
At the latest meeting, both sides agreed that the new sub-committee on maritime and airspace management and fisheries should continue to hold discussions in the following weeks.
They also gave the go-ahead for fishermen to continue with their traditional fishing activities in waters beyond 0.5 nautical miles off the three maritime features.
The joint press statement issued yesterday, by Malaysia's Foreign Minister Rais Yatim and Singapore's Foreign Minister George Yeo, reiterated both countries' commitment to 'honour and abide by the ICJ's judgment and fully implement its decision'.
The Joint Technical Committee, co-chaired by Malaysia's Foreign Ministry secretary-general Rastam Mohd Isa and Singapore's Permanent Secretary for Foreign Affairs Peter Ho, is due to meet again in the middle of this month in Singapore.
淡滨尼30公顷树林 计划发展成生态公园
Source : 《联合早报》Sep 2, 2008
喜欢大自然的淡滨尼居民，可能在2010年青年奥运会前有一个休闲新去处。
国家公园局计划将淡滨尼12道一片约30公顷的树林，发展成为生态公园(eco-park)。当局上个星期在网上招标，邀请公司为这个计划提供咨询服务。
公园局发言人回答本报询问时说，当局将把生态公园设计成以乡野风格为主题的大自然绿色空间，公园内只会有非常基本的公园设施。由于公园还处于设计阶段，当局会在较后时公布其他细节。
这片树林被规划为住宅区，但由于短期内不会有发展计划，公园局打算把地段保留为生态公园。淡滨尼越野脚踏车道和拟议中的生态公园一带有不少昆虫及鸟类。（邬福梁摄）
公园局在招标书中说，生态公园将设有山径、沼泽式的排水系统、公园桌椅、指示牌、厕所、避雨亭、户外教室、小型舞台、照明系统等。当局将确保照明系统不会影响动物的栖息。工程将在2010年第二季完工。
王建明提构想
淡滨尼集选区国会议员提议把这片树林建设成公园。淡滨尼北基层组织顾问王建明受访时说，这片树林有茂密的植物，是鸟类栖息觅食的地方，居民一般很少进入丛林之中。
这个地段由淡滨尼12道、淡滨尼高速公路和双溪淡滨尼围绕而成，呈扇形，面积约30公顷，约莫37个足球场大小，和樟宜海滨公园差不多，东西线高架地铁轨道贯穿部分树林。
根据新加坡发展总蓝图，淡滨尼12道和地铁轨道之间被规划为公园绿地，其余的空地是住宅区，规划细节有待进一步确定。
王建明说，地段在短期内不会有发展计划，因此他建议公园局把它发展成休闲地。“我们主要希望公园局能改善树林里的小径，方便进出，鼓励人们到那里休闲。”
越野脚踏车道将是青奥赛场
这片树林与淡滨尼越野脚踏车道(Tampines Mountain Biking Trail)隔着淡滨尼12道遥遥相对，所以国会议员们建议把树林发展起来，形成一个有连贯性的休闲设施，方便居民使用。淡滨尼越野脚踏车道也是青奥运的比赛场地之一。
王建明在去年底提出这项建议。他说：“我们和公园局讨论后，他们说会进一步研究这项建议，然后草拟建议书，细节有待确定。我们希望当局能够在青奥前完工，也就是2010年，所以估计当局明年中应该会宣布计划的细节。”
公园局寻求建筑公司为这项计划提供土木与结构工程、生物工程、电气工程及土地测量咨询服务。它也要求所有工程须符合环境可持续指导原则及绿色建筑标志的标准。招标工作在本月10日截止。
新加坡自然学会环保组组长何华宙博士对生态公园的概念深表赞赏。他说：“那块地有许多树木，是不少鸟类和昆虫的栖息地，当局把空地保留并提升，肯定有益于动物保育工作。
“事实上，越野脚踏车道那一带也有丰富的动植物品种，把脚踏车道对面的这片树林提升为生态公园，对那一带的整体生态系统来说是好事。”
喜欢大自然的淡滨尼居民，可能在2010年青年奥运会前有一个休闲新去处。
国家公园局计划将淡滨尼12道一片约30公顷的树林，发展成为生态公园(eco-park)。当局上个星期在网上招标，邀请公司为这个计划提供咨询服务。
公园局发言人回答本报询问时说，当局将把生态公园设计成以乡野风格为主题的大自然绿色空间，公园内只会有非常基本的公园设施。由于公园还处于设计阶段，当局会在较后时公布其他细节。
这片树林被规划为住宅区，但由于短期内不会有发展计划，公园局打算把地段保留为生态公园。淡滨尼越野脚踏车道和拟议中的生态公园一带有不少昆虫及鸟类。（邬福梁摄）
公园局在招标书中说，生态公园将设有山径、沼泽式的排水系统、公园桌椅、指示牌、厕所、避雨亭、户外教室、小型舞台、照明系统等。当局将确保照明系统不会影响动物的栖息。工程将在2010年第二季完工。
王建明提构想
淡滨尼集选区国会议员提议把这片树林建设成公园。淡滨尼北基层组织顾问王建明受访时说，这片树林有茂密的植物，是鸟类栖息觅食的地方，居民一般很少进入丛林之中。
这个地段由淡滨尼12道、淡滨尼高速公路和双溪淡滨尼围绕而成，呈扇形，面积约30公顷，约莫37个足球场大小，和樟宜海滨公园差不多，东西线高架地铁轨道贯穿部分树林。
根据新加坡发展总蓝图，淡滨尼12道和地铁轨道之间被规划为公园绿地，其余的空地是住宅区，规划细节有待进一步确定。
王建明说，地段在短期内不会有发展计划，因此他建议公园局把它发展成休闲地。“我们主要希望公园局能改善树林里的小径，方便进出，鼓励人们到那里休闲。”
越野脚踏车道将是青奥赛场
这片树林与淡滨尼越野脚踏车道(Tampines Mountain Biking Trail)隔着淡滨尼12道遥遥相对，所以国会议员们建议把树林发展起来，形成一个有连贯性的休闲设施，方便居民使用。淡滨尼越野脚踏车道也是青奥运的比赛场地之一。
王建明在去年底提出这项建议。他说：“我们和公园局讨论后，他们说会进一步研究这项建议，然后草拟建议书，细节有待确定。我们希望当局能够在青奥前完工，也就是2010年，所以估计当局明年中应该会宣布计划的细节。”
公园局寻求建筑公司为这项计划提供土木与结构工程、生物工程、电气工程及土地测量咨询服务。它也要求所有工程须符合环境可持续指导原则及绿色建筑标志的标准。招标工作在本月10日截止。
新加坡自然学会环保组组长何华宙博士对生态公园的概念深表赞赏。他说：“那块地有许多树木，是不少鸟类和昆虫的栖息地，当局把空地保留并提升，肯定有益于动物保育工作。
“事实上，越野脚踏车道那一带也有丰富的动植物品种，把脚踏车道对面的这片树林提升为生态公园，对那一带的整体生态系统来说是好事。”
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