Singapore home prices rise 7.9% in Q2

S’pore’s home prices rise 7.9% in Q2 
Singapore home prices rose 7.9 per cent between April and June, compared to 4.8 per cent in the first quarter, the URA said. — ST PHOTO: ALPHONSUS CHERN
 
SINGAPORE home prices rose 7.9 per cent between April and June, compared to 4.8 per cent in the first quarter, and climbed for the 13th quarter in a row, the Urban Redevelopment Board (URA) said.
The Urban Redevelopment Authority (URA) said on Monday the price index for private residential homes rose to 147.3 points for the three months ended June, from 136.5 in the previous three-month period, according to its initial estimate.

The advance estimate is compiled from transaction prices lodged during the first 10 weeks of the quarter, as well as data from new apartments that have been booked.

Compared to the second quarter of 2006, when the index stood at 122.1 points, home prices are up 20.6 per cent.

The URA also said that the government will ensure that there will be sufficient supply of residential space to meet demand and pointed at the government land sales programme for the second half of 2007, which will create a potential supply of about 8,000 units of private housing and executive condominium housing.

‘If necessary, the government will make available even more sites for private residential development’ through its land sales programme next year, the URA said.

URA also said that in addition to the new sites released for development, there are about 42,200 new units of private housing that will be completed from the second half of 2007 to 2010. About 22,700 of these units have not been sold by developers yet.

‘Prospective home-buyers should take into consideration the sufficient pipeline supply of private housing, as well as the potential supply from government land sales sites, when deciding to make a property purchase,’ the URA said.

Singapore’s property sector recovery gained momentum after the government introduced measures in July 2005 to ease real-estate financing rules and foreign investment.
Source : The Straits Times, 02 July 2007

Luxury bungalows enjoy strong demand in Singapore buoyant market

Luxury bungalows enjoy strong demand in buoyant market 
Average asking prices now close to $1,000 psf on the back of rising land values, larger plots
By Joyce Teo, Property Correspondent 
DEMAND for prime bungalows is still high and prices show no sign of easing either - no surprise given the property market’s resurgence.
So far this year, 47 deals for good class bungalows have been done to the tune of $560 million, said CBRE Research.

This compares with 55 deals worth $564 million completed in the same period last year.

Good class bungalows are defined as those on at least 15,000 sq ft of land in 39 designated areas.

Asking prices for bungalows in coveted areas such as Nassim Road, Dalvey Estate, White House Park and Cluny Park now average $900 per sq ft (psf) to $1,000 psf, said Mr Douglas Wong, who heads PropNex Grandeur Homes.

This is up from transacted prices of $400 psf to $450 psf three years ago when the market for good class bungalows showed its first signs of recovery, he said.

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Savills Singapore’s director of marketing and business development, Mr Ku Swee Yong, said asking prices for Nassim Road have crept up to about $1,200 psf.

Average total prices for good class bungalow deals this year have crossed the $12 million mark, compared with last year’s average of $10.8 million and the 2005 average of $8.5 million, he said.

A bungalow on 15,075 sq ft in next door Dalvey Estate in district 10 was sold for $1,091 psf of land area in March. This brought the average price of done deals in the area to $898 psf this year.

It represents an 83 per cent rise from the average price of $501 psf recorded for five deals done last year, said CB Richard Ellis Research (CBRE Research).

Another Dalvey Road bungalow with a land area of 20,139 sq ft was sold in April for $14.2 million, up 63 per cent from the $8.7 million price that the seller paid last February, it said.

The Binjai Park area in district 21, near Bukit Timah Road, has also seen a significant price increase this year.

Three deals worth an average of $666 psf have been done compared with an average of $363 psf for three sales last year.

Higher-priced deals are being recorded because of rising land values, larger plots being sold and newer houses on those plots, said Savills Singapore’s Mr Ku.

Some owners who had bought a few years ago rebuilt or renovated their homes before putting the properties back on the market at higher prices, he said.

The prime bungalow market had a record year last year with 119 deals worth $1.23 billion.

But it cannot be compared with the condominium market as it is largely restricted to local buyers, consultants said.

Foreigners have to be permanent residents and apply for special approval to buy landed homes on mainland Singapore, with Sentosa Cove being the only location where non-PR foreigners can purchase landed property.

Foreigners are further restricted to landed properties with a land area of no more than 15,000 sq ft.

CBRE Research said good class bungalow sales this year would be similar in value to those of last year, but the number of sales may not be as high as the 119 recorded last year.

‘That is because sellers’ expectations are now much higher than before, given the very positive outlook,’ it said.

Nevertheless, where value is concerned, there is still room to move up, said Mr Wong, who predicts a 5 per cent to 10 per cent rise in bungalow prices for the rest of the year.

Prices could move even higher next year given that 99-year leasehold Sentosa Cove bungalow plots have sold for higher prices than good class bungalow plots.

‘Good class bungalows are a unique product. There are only 2,500 units in Singapore and all are freehold,’ said Mr Wong. 
 
Source : The Straits Times, 02 July 2007

Cigarette prices up as bar ban kicks in

Cigarette prices up as bar ban kicks in

By Arti Mulchand & Melody Zaccheus

SMOKERS were dealt a double blow yesterday - cigarette prices were raised just as the smoking ban at nightspots took effect. Tobacco companies raised the prices of popular brands by an average of 40 cents. This brought the price of a 20-stick pack of Marlboro or Dunhill cigarettes, for example, to $11.60. Usually, such price increases accompany a rise in tobacco taxes. But for a second year in a row, the tax has remained unchanged at $352 per 1,000 cigarettes. In a letter to retailers, British American Tobacco attributed the increase to the 2 percentage point rise in GST and industry trends. The price increases came just as bars accepted last puffs along with last drinks at the close of the business day on Saturday. Across the island, many pubs and bars put away ashtrays and geared up for their first smoke-free day. Up until Friday, only 118 nightspots had applied for permission to allow smoking in designated areas. A total of 777 others are going completely smoke-free. The Ministry of Sound at Clarke Quay even got a headstart. As midnight approached, smokers were asked to use special smoking rooms, said spokesman Bernard Lim. This, despite the National Environment Agency having given nightspots until the start of business yesterday to comply. Elsewhere, the cleanup started yesterday afternoon. At St James Power Station, more than 200 ashtrays from the complex’s nine outlets were collected and put into designated smoking rooms. But besides a few grouses, most smokers seemed to accept the need to take their habit outside. About 60 NEA officers combing the island to issue friendly reminders found a high degree of compliance in more than 110 outlets checked, the NEA said last night. No smokers were fined in the operation. Sales coordinator and smoker Peter Martin, 27, said: ‘It is the best thing to happen in Singapore… Why should non-smokers be made to suffer?’ Other bar patrons maintained that the inconvenience to Singaporeans was slight. ‘In places like Oslo, people have to stand outside at minus 6 deg C puffing away,’ said a 62-year-old who wanted to be known only as Mr Logan. While bar owners are bracing themselves for a dip in business, most expect it will be temporary. Meanwhile bar staff will probably benefit the most. Ms Yeo Hui Ying, 22, a waitress at Number 5 Emerald Hill, said: ‘When you have big groups, especially if they are smoking cigars, it really stinks and it stings my eyes. ‘Now, we can really breathe.’ Source : The Straits Times, 02 July 2007

Foreign schools bursting at the seams as more expats move in

Foreign schools bursting at the seams as more expats move in 
Parents confront long waiting lists; some schools are expanding to take in more
By Nur Dianah Suhaimi 
EXPATS are not only feeling the pinch from rising rents but they are finding it much harder to get their kids into foreign schools, which are chock-a-block with students.
The booming economy is luring lots more foreigners here - the expat population grew from 798,000 to 875,500 last year - and has put severe pressure on international schools.

Parents desperate to get their child a place in one of the 38 schools that operate non-Singaporean education systems are confronting ever- lengthening waiting lists.

The classroom crunch is especially bad for preschoolers who can languish on a waiting list for as long as six months before a place opens, say some schools.

Parents are even registering their kids a year ahead of time to make sure they have a place in the classroom.

Engineer S. Nathan, 31, has approached several schools but still has not found a place for his five-year-old daughter.

The Indian national said: ‘My daughter has been on the waiting lists of two schools for about a month now. All the popular schools are full.’

The Canadian International School, which has 1,600 students spread over three campuses in Toh Tuck, Bukit Tinggi Road and Kampong Bahru, says it is ‘bulging at the seams’.

Head principal Glenn Odland says there are about 100 students across all levels on its waiting list.

The Singapore American School, which is closed for the summer break, has reached its maximum capacity of 3,700 students.

And pupil numbers at the Australian International School in Lorong Chuan have shot up 71 per cent over the past three years to hit 1,800.

The school has had to open 10 more classrooms and employ 10 more teachers in the past year to cope with the influx. But even that is not enough with 150 children across all levels on its waiting list still.

Schools do not expect the squeeze to ease any time soon given the healthy economy and the government effort to woo more foreign talent to realise its plans for a population of 6.5 million.

The Australian school is tackling the challenge by building an extension that will be completed next June with the capacity to accommodate a further 700 students.

The Canadian International School is taking a similar approach and will open two new campuses in Jurong and at the old Tanjong Katong Girls’ School site within the next two years.

ISS International School, which can accommodate up to 900 pupils at campuses in Paterson Road and Preston Road, plans to add another campus even though it still has about 200 vacancies.

But China businessman J. Wong, 51, is not waiting. He sent his 14-year-old son and only child to a local school when he learnt that some expat schools have at least 100 students on their waiting lists.

Mr Wong said: ‘Local schools are just as good, sometimes, even better.’
Source : The Straits Times, 01 July 2007

Johor’s IDR puts pressure on S’pore

Johor’s IDR puts pressure on S’pore 
In an interview with Berita Harian on the occasion of its 50th anniversary today, Minister Mentor Lee Kuan Yew was asked for his views on Singapore’s relations with Malaysia and Indonesia. ‘We always have ups and downs,’ he said, citing the latest episodes: the defence cooperation agreement with Indonesia, and Malaysia’s new development project in Johor. Zakir Hussain reports
SINGAPORE faces the prospect of losing industries and jobs to Johor’s new Iskandar Development Region, said Minister Mentor Lee Kuan Yew.
Still, Singapore supports the economic zone because from a broader perspective, Mr Lee sees both countries being better off when ‘Malaysia benefits from Singapore’s economic growth, and vice versa’.

The IDR is a 2,217 sq km zone that aims to make south Johor an economic dynamo. Malaysian Prime Minister Abdullah Badawi has invited the Singapore Government and businessmen to invest in it.

However, when Singapore responded positively, ’strong dissenting voices claimed that we were out to exploit Malaysia and the bumiputeras’, said Mr Lee.

It was a similar situation in Indonesia.

When a newly signed defence cooperation pact with Singapore came up for debate in Indonesia’s House of Representatives, members ‘accused Singapore of breaching the sovereignty of Indonesia by our SAF exercises in Indonesia’, said Mr Lee.

These issues, he said, were being exploited domestically by those out to embarrass their respective governments.

‘The chorus of protest voices sours up grassroots support for the leaders, and for cooperation projects with Singapore which benefit their own countries.

‘It is non-stop politicking to deny any credit to the Abdullah Badawi or SBY governments,’ he added, referring to Indonesia’s President Susilo Bambang Yudhoyono.

MM Lee cited the reaction of opposition Parti Islam SeMalaysia (PAS) as typical.

He quoted at length from the June 12 issue of Harakah, the official newspaper of the PAS.

It wrote that Singapore had never yielded to any of Malaysia’s demands.

‘In fact, Singapore treats the water and its water catchment areas in Johor as its own resources and territory, as if Malaysia has no sovereignty over them.

‘There is nothing to show that Malaysia has won in any of its bilateral dealings with Singapore.

‘Thus when Singapore is so enthusiastic about the IDR and says it is willing to help Malaysia progress by participating in the IDR, Malaysia must be on its guard.

‘We must find out what Singapore will stand to gain, that has made it so eager to participate.’

Accusing Singapore of needing land to support its growing strength and stability, the Harakah added: ‘Singapore is offering to help its neighbours develop their territories in the same way that Sir Stamford Raffles developed Singapore - after buying it from Johor some 200 years ago - thus causing the loss of Johor’s sovereignty and Malay land in Singapore.’

While the attack from PAS is not unexpected, Mr Lee said investors here need to take note when Umno leaders, especially from Johor, hit out in the same vein.

‘Potential investors from Singapore must seriously ask themselves when these attitudes will change, and how welcome their investments will be,’ he said.

He pointed out that the IDR project will put pressure on Singapore, just as Shenzhen did to Hong Kong.

But unlike Hong Kong, Singapore cannot expect Malaysia to be generous towards it.

When Shenzhen came up, industries from Hong Kong were drawn to it and other towns in the vicinity.

Hong Kong was left with little manufacturing businesses and higher unemployment. It now relies on providing services.

If the same loss hits Singapore, ‘we will have a severe unemployment problem because not all factory workers can find jobs in services’, said Mr Lee.

Also, no one will come to Singapore’s rescue, unlike with Hong Kong, which Beijing rescued by letting millions of mainland tourists go there, boosting spending, and by letting Hong Kong companies extend their operations into China on generous terms, he said.

Singapore cannot expect the same treatment from Malaysia, he added.

‘But we believe that, from a broader perspective, it is better for both countries that Malaysia benefits from Singapore’s economic growth, and vice versa.

‘Hence Singapore supports the IDR, on a win-win basis.’

 Source : The Straits Times, 01 July 2007