House okays changes to en bloc sale rules

House okays changes to en bloc sale rules

By UMA SHANKARI
PARLIAMENT yesterday approved changes to the Land Titles (Strata) Bill, which spells out proper procedure for en bloc sales.

The changes are meant to provide more safeguards and transparency for all owners

The changes will now become law sometime next month after it has been cleared by the President’s office.

During the second reading of the Bill in Parliament yesterday, Deputy Prime Minister and Law Minister S Jayakumar said that the changes are meant to provide more safeguards and transparency for all owners - and not intended to make it harder to reach a collective sale agreement.

‘We have to craft the amendments in a way that strikes a balance between trying to make the process more transparent and fair with suitable safeguards, while at the same time not making it unduly unmanageable or too onerous to bring about an en bloc sale,’ Prof Jayakumar said.

He was responding to Members of Parliament (MPs) who wanted more safeguards added to the Bill.

For example, one suggestion was to make it mandatory for developers to offer sellers a replacement unit within the same estate as their old property.

Prof Jayakumar explained that the government will not implement more safeguards this time round as he does not want to ‘micro-manage’ the en bloc process.

However, the Ministry of Law will not ‘close shop’ and forget about the issue, he said: ‘This review by my Ministry and the Strata Titles Board and the Singapore Land Authority will be an ongoing one.’

For now, in line with several MPs’ suggestions, the Ministry of Law will see if a best practices guide for en bloc sales can be developed.

For now, the passing of the bill means that the en bloc process will change somewhat.

For example, a lawyer will have to be present when an owner signs the collective sales agreement.

Owners can also change their minds after signing the agreement within a five-day ‘cooling off’ period.

Prof Jayakumar also explained that the changes will not apply to projects that have already got the required 80 or 90 per cent majority - based on share value - before the start of the amended act.
Source : Business Times - 21 sept 2007

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More accountability, stricter regulation with building bill

More accountability, stricter regulation with building bill

Key amendments in place for underground works, high-rise buildings

By ARTHUR SIM

THE Building Control Bill was passed by Parliament yesterday, paving the way for a stronger regulatory framework to raise professionalism, quality and safety standards in the construction industry.

Ms Fu: Nicoll Highway collapse in 2004 was a ‘wake up call’
Speaking in Parliament, Minister of State for National Development Grace Fu said the Nicoll Highway collapse in 2004 was ‘a wake up call for the construction industry’.

The Building and Construction Authority (BCA) consulted industry stakeholders and the public over the past two years on possible measures, she said. ‘The feedback has been considered and some suggestions have been incorporated into the Bill or will be taken up when drafting the relevant subsidiary legislation.’

The Bill puts in place the recommendations of the Ministry of National Development-Ministry of Manpower Joint Review Committee (JRC) on Construction Safety, which was formed to examine the regulation of construction following the Nicoll Highway collapse.

Key amendments arising from the JRC’s recommendations include more stringent regulation of underground building works, licensing of general builders and specialist builders, provision of accredited site supervisors, ensuring independence of parties in construction projects and raising of penalties for non-compliance with building control regulations.

In addition, there are also new provisions to set minimum standards of environmental sustainability for buildings and require the continual maintenance of barrier-free provisions in buildings.

Explaining the first of these, Ms Fu said major underground building works, in particular temporary earth-retaining structures such as those that failed in the Nicoll Highway incident, will now need to be designed by a professional engineer (PE) and must be reviewed by an accredited checker (AC). Works going deeper than 6m must be designed and checked by PEs and ACs who are specialists in geotechnical engineering.

Geotechnical specialists will also now be required for tunnels greater than 2m in diameter, underground structures deeper than 6m and complex foundations for buildings of more than 30 storeys.

The Bill was debated, with Ang Mo Kio GRC MP Lee Bee Wah, a PE, raising the issue of ultimate responsibility. ‘When there are two engineers involved, accountability can never be clear,’ she said.

She also said it is unclear whether the services of a specialist in geotechnical engineering would have made much difference in the only known case of a faulty high-rise building in Singapore - 3 Church Street.

It is understood that despite a PE and a geotechnical specialist being involved with construction work on the Nicoll Highway, it still collapsed.

Replying to Ms Lee, Ms Fu said: ‘I am sure by formalising these requirements and doing so judiciously for a very limited number of buildings, we believe the PE Civil (professional civil engineers) and PE Geo (professional geotechnical engineers) will come up with some amicable working relationship because these relationships already exist at the present day.’

Ms Fu said only one per cent of new buildings in 2006 were more than 30 storeys and that there are currently more than 50 specialist geotechnical engineers in Singapore.

Asked to comment on the Bill, a spokesman for the Institute of Engineers of Singapore said: ‘Our opinion is that there is no need for this statutory requirement to be extended to cover foundation works that exceed 30 storeys, as most civil professional engineers are sufficiently competent to handle such designs.’

M Sivakumaran, a PE with SMS Consulting Engineers, said: ‘The amendment will certainly put some pressure on contractors and engineers. Construction costs are already escalating. And they may go up further.’

Source : Business Times - 21 sept 2007

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Home market will grow even if punters retreat: report

Home market will grow even if punters retreat: report

Developers may go for higher volumes, lower margins in mass, mid-segment
By KALPANA RASHIWALA
(SINGAPORE) Recent events could make the residential property market vulnerable to declines in collective sales and speculative activity.

However, Goldman Sachs believes that other demand drivers such as the increase in resident population will help mitigate the fall in those selling their homes through collective sales and looking for replacement homes.

It reckons there will be little adverse impact from a drop in speculation while foreign buying will be relatively sticky. And the silver lining from the recent market slowdown brought about by the sub-prime mortgage crisis in the US is that it has weakened reasons for the Singapore government to curb price rises, argues a paper by Goldman Sachs Global Investment Research.

‘Going forward, we think all developers will see more of their residential exposure being tied to mid- and mass-market projects via new site acquisitions so as to meet expected demand in those segments.

‘We look for achievement of strong selling prices and take-up in forthcoming residential launches to demonstrate the strength of demand in the residential market and drive share price performance of Singapore developers,’ according to the paper, titled ‘Residential market shaken but still good for developers’.

The paper, authored by Goldman Sachs executive director (Asia-Pacific Investment Research) Leslie Yee, says the sharpest increases for Singapore residential property prices are over.

However, the operating environment in Singapore for developers is good, as they can still enjoy fat margins from developing their existing prime district residential landbanks, and reinvesting the money they make from selling such projects into mass/mid market sites where profit margins will be lower but volumes will be high.

‘We see developers achieving margins of about 20 per cent in mid to mass market projects and tapping into opportunities as population increases,’ Mr Yee said. He expects a positive demand picture, with net incremental annual demand of around 19,000 private homes over the next few years.

New demand will come from increases in the resident population, of which an increase in the number of permanent residents is a major driver; increase in the non-resident population; sellers of properties that are the subject of en bloc sales; and Housing and Development Board (HDB) upgraders.

The bank said its demand numbers do not factor in speculative buying. ‘Given the speed and scale of price increases this year, we think a fall in speculative activity benefits the property market in the longer run by reducing pressure for government intervention to cool prices,’ it added.

Goldman Sachs says it is not overly concerned about a decline in en bloc sellers looking for replacement properties arising from a near-term slowdown in collective sales amidst higher development charges and changes in legislation. This is because other components of demand will remain strong.

As for a slowdown in the supply of redevelopment sites if en bloc sales cool off, the paper argues that developers have enough residential projects on hand to execute, and the ability to acquire mid- and mass-market land from state tenders.

Goldman Sachs says it does not expect foreign buying, which has been instrumental in driving up residential property prices here, to dissipate as the factors attracting these buyers to the local property market - including transparency, openness to foreigners, and absence of capital gains tax - still hold.

Also, foreign buyers include permanent residents, whose property purchases here are likely to remain strong provided the momentum of new investments and jobs is maintained.

Goldman Sachs favours GuocoLand and City Developments for their leverage to the Singapore residential sector, accounting for 35 and 38 per cent respectively of their revalued net asset values.

In the mass segment of the private housing market, ‘we see strong domestic economic factors and rising HDB resale prices underpinning price performance’, the paper says.

‘We think the government will be happy to see HDB resale prices rise so that larger segments of the population can enjoy the fruits of Singapore’s success while continuing to ensure affordable housing for citizens through the HDB primary market,’ Goldman Sachs reasons.
Source : Business Times - 21 sept 2007

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Horizon Towers resolution may be in sight

Horizon Towers resolution may be in sight

Owners of 135 units vote to extend sale deadline to Dec 11
By MICHELLE QUAH
(SINGAPORE) There may finally be a resolution, of sorts, for the long-running Horizon Towers saga.
Owners of 135 units at the Leonie Hill development - who attended a hastily convened meeting at the Raffles Town Club last night - voted in favour of extending the deadline for the en bloc sale of the development.

These owners - who form the bulk of the owners of the 177 units who had consented to the en bloc sale in February - agreed to push back the collective sale deadline to Dec 11. They also agreed to do everything ‘reasonably necessary’ to effect the collective sale.

And while these owners of 135 units recognise that their votes are not binding on the owners of the remaining 42 units - who didn’t attend last night’s meeting - they say they hope the other owners will support their decision.

They will be reaching out to these remaining owners soon, to seek their support.

This startling twist to recent events may be the key to unlocking the impasse between the majority sellers of Horizon Towers and the development’s buyers - Hotel Properties Ltd (HPL), Morgan Stanley Real Estate-managed funds and Qatar Investment Authority.

HPL and its partners sued the majority sellers after repeated requests to the sellers - to extend the Aug 11 sale completion deadline by four months - were not met.

The collective sale had collapsed on a technicality before the Strata Titles Board (STB) in early August, and the buyers wanted an extension of the deadline so that there would be enough time to file a fresh application to the STB for a collective sale order.

HPL and its partners have threatened to sue every one of the majority sellers for millions of dollars each.

HPL chief Ong Beng Seng - who rarely makes public appearances - even met some 40-odd sellers at the Hilton on Wednesday, in a bid to convince them of the need to extend the deadline.

His lawyers, Allen & Gledhill, also told the attendees at the Hilton meeting that they would be prepared to adjourn the legal proceedings if the sellers agreed to extend the deadline - and that they would drop the lawsuit altogether if the sale goes through.

Some observers believe that this overture by HPL may have swayed the vote at the Raffles Town Club meeting yesterday.

A group of sellers, represented by Wong & Leow, however, told BT that their decision to extend the deadline wasn’t motivated by the threat of the lawsuit filed against the sellers.

‘Throughout this entire period, from the time the STB rejected the collective sale application, we have never said we were not going to extend the deadline. We have chosen to extend the deadline today, as an act of good faith,’ said a spokesperson for the group, which comprises owners of about 60 units.

When contacted by BT last night, HPL’s group executive director Christopher Lim said the buyers would honour the undertaking given to sellers at the Hilton meeting.

‘We will stand by what we offered, which is that we are prepared to apply for the adjournment of the legal proceedings once we get formal confirmation that the deadline has been extended. And we will drop the lawsuit altogether once the collective sale goes through,’ he said.

It means, however, that the lawsuit still hangs over the majority sellers.

The Horizon Towers owners at last night’s Raffles Town Club meeting also voted in a new sales committee - comprising five new members and two members from the first sales committee.
Source : Business Times - 21 sept 2007

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Companies seeking to entertain guests may have to pay top dollar for packages over race period

Companies seeking to entertain guests may have to pay top dollar for packages over race period
By NISHA RAMCHANDANI

(SINGAPORE) Corporations preparing to entertain their guests at trackside hotels during the Singapore Formula One Grand Prix in September next year may have to dig deep into their pockets.
Hot circuit: Suites at Swissotel the Stamford are believed to be already fully booked with a price tag hovering around $3,500 per night
Though most hotels have not publicised their rates yet, indications are that guests may be charged several times the normal tariff when F1 fever is in full swing. Also, some hotels may not agree to let out rooms just for race night, but could sell packages for several nights.

Companies in a hurry to book rooms for their guests and clients have already started negotiating with the hotels and some have been quoted tentative rates.

One hotel that usually charges $900 a night for a suite tentatively quoted a package of more than $18,000 for the period leading up to the race.

This works out to a daily rate of around $4,000 a night.

Trackside hotels will pay a levy of 30 per cent to the Ministry of Trade and Industry for the five-day period between Sept 24 and Sept 28 next year to offset some of the expenses involved in staging the event. While the levy contributes to raising the rates somewhat, the period also coincides with the drivers’ practice sessions, qualification races and the main event itself - all of which are eagerly watched by racing aficionados. This also enables hotels to sell packages for the entire period for which the F1 circus will be in town.

While the hotels involved seem hesitant to pin down concrete prices, BT was tipped that the suites at one of the trackside hotels, Swissotel the Stamford, are already fully booked with a price tag hovering around $3,500 per night.

One source trying to book rooms for his company said that he had been quoted a tentative rate of around $1,300 a night at The Pan Pacific Singapore. The hotel refused to confirm this. Cheryl Ng, public relations manager for the Pan Pacific, said: ‘Based on the market forces of variable demand and supply, certain room rates have been finalised and extended to potential guests. There are many wait-listed enquiries regarding rooms during Formula One and we are in the midst of responding to interested parties.’

She added that the price floor and ceiling will not be apparent until the hotel has completed its entire pricing strategy.

Ritz-Carlton Millenia general manage Allan Federer told BT that similar rates would be offered to individuals and corporations, and differentials would arise only on the basis of room types and the view of the track during the F1 period. The official room rates would be released on the Ritz-Carlton website around the end of the month. At this point, the Ritz-Carlton has committed about 85 per cent of its guest rooms, with bookings largely stemming from both local and international companies.

‘The F1 is a terrific way to entertain your top customers,’ enthused Mr Federer, adding that the hotel began to confirm bookings from its wait-list about a month ago.

The Oriental director of communications Ruth Soh said that no official bookings have been made although the hotel has also been maintaining a waiting list for interested clients, consisting of both F1 enthusiasts and corporations. Various packages will be available in time to come, with prices to be determined by a confluence of factors such as room size, a view of the track as well as special amenities.

Other trackside hotels include The Fullerton, Marina Mandarin, Raffles Hotel, Conrad Centennial, Carlton Hotel and Peninsula-Excelsior.

Unsurprisingly, even non-trackside hotels - which will pay a levy of 20 per cent during the lead-up to the race - say that the response so far has been heartening. According to Thierry Douin, area manager and general manager for Shangri-La Hotel Singapore, there have been many inquiries from various race teams as well as travel agencies.

One factor that will decidedly influence the prices of hotel rooms is the time of the race. The world governing body for motorsports, Federation Internationale de l’Automobile (FIA), is expected to confirm soon whether - as expected - Singapore will conduct a night race. An affirmative response would be significant as it will mark the first night race in F1 history.

Source : Business Times - 21 sept 2007

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Horizon Towers sellers vote to extend sale deadline

Horizon Towers sellers vote to extend sale deadline

New sale committee formed and they hope to avert potential lawsuit
By Joyce Teo, Property Correspondent
A LARGE group of Horizon Towers sellers voted last night to extend a deadline for the sale of the condominium, in a bid to head off a lawsuit over an earlier $500 million sale that fell through.
The sellers last night voted to do everything ‘reasonably necessary’ to effect the collective sale of their estate, which has been mired in uncertainty for months.

The sellers hope to avert a lawsuit filed by a Hotel Properties-led (HPL-led) consortium, which is trying to buy the condo. The case is due in court next week.

At a meeting on Wednesday between HPL chief Ong Beng Seng and about 50 sellers, it was made clear that the buyers would adjourn the court hearing if there was an extension of the sale deadline.

Yesterday, HPL spokesman Christopher Lim reiterated this position. ‘If the Horizon Towers transaction goes through, we will drop the lawsuit as well as claims for damages,’ he said.

The buyers are seeking hundreds of millions of dollars in damages for an alleged breach of contract by the condo majority owners.

Last night, the sellers also elected seven members to form a new sale committee - their third so far in the drawn-out saga.

The new committee is to be headed by Mr Lim Seng Hoo. The team includes one person from the old sale committee.

‘The meeting was very well organised and amicable,’ said an owner who attended the meeting.

Sellers of 135 units - out of 177 units - gathered at Raffles Town Club yesterday to attempt to resolve its botched collective sale after their previous sale committee quit.

Only one unit did not vote in favour of the resolutions passed yesterday. Horizon Towers has 199 apartment units and 11 penthouse units.

The 7.30pm meeting ended after 10pm, even though owners were still streaming in from 8pm to 8.30pm. Many owners at the meeting refused to speak to the media.

HPL and its two partners, Morgan Stanley Real Estate-managed funds and Qatar Investment Authority, want to buy Horizon Towers at the $500 million price it inked in February. But the collective sale application was thrown out by the Strata Titles Board (STB) early last month because of a technical error.

The agreement then lapsed because the sellers did not extend an Aug 11 deadline that was written into their contract. Meetings followed and the sale committee eventually quit.

Sellers from 21 units had then called for yesterday’s meeting to pass a few resolutions such as forming a new sale committee and to vote on an extension of the sale deadline to seek an STB order for the sale to go through.

This is ahead of a High Court hearing next Thursday and a High Court appeal to quash the STB order next Friday.

Also yesterday, a group of more than 80 owners represented by lawyers from Wong & Leow engaged a public relations consultant to help them with media relations.
Source : Straits Times - 21 sept 2007

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Count the social impact of en bloc sales

Count the social impact of en bloc sales

By Lydia Lim, Senior Political Correspondent

WHEN Nominated MP Kalyani Mehta rose to speak about en bloc sales yesterday, the sounds one heard were not of cash registers ringing but of hearts breaking and communities crumbling.
One of six MPs to join the debate on the Land Titles (Strata) Amendment Bill, she spoke of elderly folk forced to leave their homes of many decades, and of people separated from neighbours they counted on for companionship and support.

She raised a valid question: did these dislocations serve a larger good?

She compared the collective-sale phenomenon to the clearing of old kampung.

People could accept the sweeping away of those old social communities for the sake of progress and a better environment for all, she said.

But the current en bloc sale fever seemed largely fuelled by a small group’s ‘greed’.

‘When communities of people who have lived in peace and harmony are destroyed, we are paying a very high price because it takes decades for such living organisms as communities to be formed,’ she said.

She also pointed out the irony of having, on the one hand, community development councils to build social bonds, and on the other hand, allowing ‘the fast destruction of communities without really valid reasons’.

Her fellow Nominated MP Siew Kum Hong provided a different perspective.

For now, the en bloc process seemed to be meeting its objective of urban rejuvenation, he said.

That was the conclusion he reached after looking at figures released earlier this week by Deputy Prime Minister and Law Minister S. Jayakumar, in reply to a question he had filed.

They showed that the average age of all developments which applied for collective sale between January 2005 and August 2007 was 25.9 years.

Still, Mr Siew called for the figure to be monitored.

Any dip in the average age might indicate that the collective sale process was being used, not for urban renewal, but for maximising economic gain, which might not be healthy, he said.

It was within this wider context that all six MPs welcomed the Bill, which was later passed by the House.

They said the changes it contained were long overdue and would inject much-needed transparency into the en bloc process and enhance safeguards for owners.

The Bill sets out new rules to govern the formation and proceedings of the collective sales committee.

These include a stipulation that committee members must declare their ties with any other interested party in the sale, such as a developer or marketing agent.

There are also new safeguards concerning the signing of the sales agreement, with owners now allowed to change their minds within a five-day cooling-off period.

But several of the MPs called for yet more safeguards, as well as special provisions for those forced to sell against their will.

Both Ms Irene Ng (Tampines GRC) and Ms Ellen Lee (Sembawang GRC) asked that buyers of a site be required to offer such owners one-for-one replacement units in the new development.

In his reply, Professor Jayakumar said the law had to strike a balance between making the process more transparent and fair, and not making it unduly difficult for en bloc sales to go through.

He also assured MPs that his ministry would monitor the en bloc process to see how well the new law worked to minimise cases of harassment, unfairness and lack of transparency.

‘If it’s necessary to make further amendments, then we’ll have no hesitation to do so,’ he said.

One salient point that did not come up during yesterday’s debate was the situation before the last round of amendments in 1999.

Then, en bloc sales could go through only if 100 per cent of owners agreed. It was a case of minority owners wielding excessive control over the process.

That was why the law was changed - after being referred to a Select Committee - to lower the threshold to the present 80 per cent for developments over 10 years old, and 90 per cent for those below.

In crafting these latest amendments, it seems the Law Ministry was right to strive for evenhandedness in balancing the interests of majority and minority owners, between those who want to reap the rewards of their financial investments and those who want to hold on to cherished memories and relationships.

But while the economic benefits of such sales are easily quantifiable, the intangible social costs are much less easy to measure.

Given growing public concern over the latter, the Government may want to consider investing resources in a fuller study of the social impact.

That might well have serious consequences for Singaporeans’ sense of home.

Source : Straits Times - 21 sept 2007

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All new buildings to go green from next year

All new buildings to go green from next year

IN A major push to make developers go green, the Government will require all new buildings to meet minimum environmental standards from next year.
Developers will be required to be more efficient in using water and energy than under current industry practice.

The Building Control (Amendment) Bill was passed in Parliament yesterday to give the Minister of National Development the power to impose the rules.

This latest change is perhaps the most significant extension of regulations so far to make buildings environmentally friendly.

The Building and Construction Authority (BCA) estimates the requirements would raise construction costs by just about 1 per cent.

But experts say the final figure would be even less - negligible in fact - if green features were factored into a building’s design from the start.

These could take the form of more efficient air-conditioning and lighting systems, water fittings or better insulation. More details of the rules will be released later.

Going green was optional for developers in the past. In December last year, the Government launched a $20 million incentive fund which private developers could use to make their buildings more environmentally sustainable.

In April, the Government required all new public buildings to meet green standards as set out by the BCA.

Under its two-year-old Green Mark certification programme, buildings are rated on how efficient they are in the use of water and energy, and their effect on their users’ health and the environment.

So far, 66 out of about 120,000 buildings in Singapore have received the Green Mark certificate, while another 25 are in the pipeline for this stamp of approval.

The BCA estimates that getting this minimum Green Mark standard would eventually shave 10 to 15 per cent off a building owner’s utilities bill.

Major developer City Developments, which has Green Mark certifications for 16 of its buildings, said the Government’s previous green initiatives had made the impending requirements easier to accept.

General manager for its projects division Eddie Wong told The Straits Times: ‘We believe that with early and efficient planning, green buildings can be both environmentally sustainable and financially successful.’

Meanwhile, another part of the Bill passed yesterday requires building owners to maintain facilities for the disabled. They will not be allowed to change, remove or block any features designed especially for these users. This would mean, for example, that they risk being penalised if they lock up a toilet built for the disabled.

Source : Straits Times - 21 sept 2007

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Tighter building controls, heavier penalties

Tighter building controls, heavier penalties

New rules passed include making licensing a must for contractors
By Tan Hui Yee, Housing Correspondent
ISSUE OF STANDARDS: Stiffer penalties would weed out bad hats, said Ms Fu.

A COMPREHENSIVE set of changes to building controls, passed in Parliament yesterday, aims to keep the construction industry on its toes.
This comes three years after the Nicoll Highway collapse exposed systemic flaws.

Builders will now be required to get themselves licensed, while underground work will be subject to tighter controls. Heavier penalties will also be imposed on those who flout the rules.

Outlining the changes yesterday, Minister of State for National Development Grace Fu stressed the need to raise standards at a time when the building industry faces a hike in construction demand.

The industry has an estimated $19billion to $22 billion of work this year compared to about $16.1 billion last year.

The changes have drawn mixed reactions from the industry, which acknowledged the need for greater professionalism and safety standards, but also questioned the heavier penalties.

There were also concerns that over-regulation might stifle the growth of certain firms.

Those who flout the rules would generally face stiffer penalties.

Someone who carries out building work without a permit, for example, would face a maximum penalty of a $200,000 fine and/or two years’ jail, as opposed to half of each before.

This drew fire from Ms Lee Bee Wah (Ang Mo Kio GRC) yesterday, who felt the jail sentence should be scrapped altogether as the tighter rules would raise standards. Having jail sentences would deter newcomers from joining the industry, she said.

Ms Fu argued, however, that the penalties would serve to weed out bad hats. Similar legislation exists in Hong Kong, California and New York City, she pointed out.

Meanwhile, the licensing requirements for building contractors are expected to kick in by July next year.

Currently, only contractors working on government projects need to register with the Building and Construction Authority (BCA).

Under the new regime, builders will be issued licences based on their track record, financial health, as well as the qualifications and experience of key personnel.

Sole proprietorships, partnerships and limited liability partnerships, however, would be limited to jobs of up to $3 million.

Based on the BCA’s records, more than 90per cent of its existing 2,500 general builders could qualify under the licensing scheme.

Temporary earth-retaining structures used during excavations will also need to be designed and reviewed by qualified experts, while specialists in geotechnical work will need to be involved for major underground building work.

The changes are expected to raise construction costs by just 0.06 to 0.1 per cent, estimated the BCA.

In Parliament yesterday, Ms Lee asked for the $3 million project value cap on smaller contractors to be raised, as many projects such as bungalows or upgrading work cost more than that these days.

When contacted, the president of the Singapore Contractors Association, Mr Desmond Hill, expressed similar concerns, adding that the cap may stifle the growth of these small firms.

But Ms Fu said the cap was reasonable, as it was adjusted to fit the capability of firms in that category. Raising the cap may make it harder for the builders to be licensed.

But Ms Fu agreed with a suggestion by Dr Muhammad Faishal Ibrahim (Marine Parade GRC) yesterday for the Government to work to improve the image of builders to attract more talent into this field.

Source : Straits Times - 21 sept 2007

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HDB launches sixth build-to-order project in Fernvale

HDB launches sixth build-to-order project in Fernvale

The 698 4-room flats will have full floor finishes, sanitary fittings
By Jessica Cheam
TO MEET the increasing demand for homes, the Housing Board (HDB) yesterday launched 698 flats for sale in Sengkang.
HDB’s latest build-to-order (BTO) project, Coral Spring, offers premium four-room units of 95 sq m to 96sq m, priced between $188,000 and $252,000.

These premium flats will be provided with full floor finishes and sanitary fittings.

Home buyers can choose other components to be installed under HDB’s Optional Component Scheme.

The project, which will consist of five 25-storey buildings, is located at the junction of Sengkang West Avenue and Fernvale Road.

The flats are within walking distance of Fernvale LRT station and Fernvale Point, which houses a wet market, supermarket and foodcourt.

It is also near schools such as Fernvale Primary School and Pei Hwa Secondary School.

Prices are higher than the last BTO project, launched in May, Fernvale Vista Phase 2, where four-room flats were priced between $145,000 and $200,000.

Four-room flats at Fernvale Court, launched two years ago, were priced from $138,000 to $177,000.

Coral Spring is the sixth BTO project in Fernvale.

With the exception of Coral Green, which was launched in 2004 and later dropped because of weak demand, the other projects have been well-received, said HDB.

Three - Fernvale Grove, Fernvale Court and Fernvale Vista Phase 1 - are now at construction stage. HDB is selecting applicants for Fernvale Vista Phase 2.

An HDB spokesman told The Straits Times yesterday it is confident there will be good demand for Coral Spring.

If the response is good, applicants will be called to select their flats.

HDB will assess the take-up rate before deciding whether to call for a building tender under the build-to-order scheme.

Applications for the new homes close on Oct 9.

If Coral Spring is given the green light, it is expected to be completed by the end of 2011.

An exhibition of the project will be held at the HDB Hub’s Habitat Forum during the application period.
Source : Straits Times - 21 sept 2007

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New, tighter rules for en bloc sales passed

New, tighter rules for en bloc sales passed

Further changes may follow if necessary, Jaya tells MPs who want more to be done
By Fiona Chan, Property Reporter

A SLEW of intensely-debated changes aimed at making the red-hot collective sales market fairer was passed in Parliament yesterday. The revisions - keenly watched since they were mooted in March - will make it harder for residential developments to go en bloc as they must fulfil more conditions. And further changes may be in the works if they are necessary, said Deputy Prime Minister S. Jayakumar, also Law Minister.

He was responding to spirited appeals by several Members of Parliament yesterday, who peppered him with suggestions on how to further tighten the rules. Most felt more could be done to protect the interests of minority owners and the elderly, who are often strongly opposed to selling en bloc but find they have no choice. In response, Prof Jayakumar said that while their suggestions were not ‘without merit’, he was also concerned about not ‘micromanaging the process’. ‘We have to…strike a balance between trying to make the process more transparent…while at the same time not making it unduly unmanageable or too onerous.’ But he added that the ministry is not going to ‘close shop and forget about the process of en bloc sales’.

It will ‘monitor very closely’ the new laws and make further amendments if needed. The changes have already had some effect on the en bloc market, even before they are due to come into effect next month. Property players say they have spurred a rush among homeowners to go en bloc before the new rules make it harder. But some consultants, like Knight Frank director of research and consultancy Nicholas Mak, say the changes may not have a large impact on the market. ‘They will add more procedural hurdles, but on the whole, they were not designed to slow down en bloc sales and they are unlikely to do so,’ he said. More than 30 amendments were approved yesterday, after extensive public and industry feedback. They are meant to introduce more regulation into the market and ‘minimise complaints of harassment, unfairness and lack of transparency’, said Prof Jayakumar.

Key revisions include a five-day period for owners to change their minds after signing the collective sale agreement. Also to come are new rules on setting up a sale committee and new powers for the Strata Titles Board, which governs collective sales. Another major change addresses an imbalance in voting rights in a mixed development. It adds an extra level of owner consent, by floor area, before a sale can proceed.

The amendments were beefed up in recent months after 400 suggestions from the public and discussions with about 40 industry experts. They follow months of grievances from homeowners over a lack of clarity in collective sales, which have seen a spectacular record run in the last two years. The need for more regulation has also been thrown up by cases such as that of Horizon Towers, where owners are being sued by the estate’s buyer over a botched collective sale. Not to be outdone, MPs weighed in with their own proposals yesterday.

These ranged from not allowing ‘young’ buildings below 10 years of age to go en bloc to offering a one-for-one exchange of units in the new development. More than one MP also spoke of the non-monetary losses felt by owners forced to sell en bloc, and condemned ‘condo raiders’ who buy units in a development and push for a collective sale.

Nominated MP Kalyani Mehta suggested that only residents who have stayed in an estate for more than two years can sit on the sale committee. Prof Jayakumar took these outpourings in his stride. A two-year residency condition, he said, would discriminate against new bona fide homeowners. Replacement units are sometimes offered, but turned down by sellers for various reasons. As for those concerned about younger buildings, he offered this statistic: since 1999, almost 70 per cent of developments that have been sold en bloc were more than 20 years old. But he agreed to look into some proposals, such as a best practices guide and standard forms to help en bloc players.

Source : Straits Times - 21 sept 2007

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