Singapore Nassim condo turns in surprisingly good sales

Singapore Nassim condo turns in surprisingly good sales 
 
A LUXURY condominium in the posh Nassim area has turned in surprisingly good preview sales, even as property analysts are predicting a sharp slowdown in the high-end home segment.
Buyers have taken up 38 units at Nassim Park Residences, forking out a whopping $10 million or more for each apartment, sources said.

The 100-unit development, which United Overseas Land (UOL) is building on the former Nassim Park site in Nassim Road, is understood to be priced upwards of $3,000 per sq ft (psf).

The project consists of only four-bedroom and penthouse apartments. Each of the four-bedders is believed to be at least 3,000 sq ft in size, while the penthouses are between 6,000 sq ft and 7,000 sq ft.

UOL declined to comment on the figures yesterday, but sources said the developer might not release some of the units and instead keep them for its own use.

Nassim Park Residences is the first major luxury development to be released for sale this year. Most other launches, especially large, high-end ones, have been held back as developers wait out the market gloom.

Elsewhere, some smaller projects have also seen brisk sales after discounts were offered. Over the Vesak Day weekend, Macly Group sold 60 per cent of the 102-unit Vutton in Novena at a 10 per cent discount off list prices, or about $1,100 psf to $1,400 psf.

 
Source : Straits Times - 28 May 2008

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Malaysia Fuel ban: JB kiosks fear loss of business

Malaysia Fuel ban: JB kiosks fear loss of business 

As much as 90 per cent of their customers are Singaporeans

By Arlina Arshad 
RUNNING DRY: After the ban on foreign-registered vehicles filling up on fuel within 50km of Malaysia’a borders comes into force on Friday, Singapore motorists will have less incentive to drive to Johor Baru on shopping or eating trips. — PHOTO: JOYCE FANG
 
JOHOR petrol station operators and businesses are up in arms over the Malaysian government’s move to ban foreign-registered vehicles from topping up their fuel tanks at petrol stations within 50km of the country’s borders.
Without business from Singaporeans, Johor petrol kiosks say they will ‘die’ because as much as 90 per cent of their business comes from Singapore motorists.

It is understood the move will also hit petrol stations in the north patronised by Thais.

With Singaporeans barred from topping up at Johor stations within 50km of the Singapore-Malaysia border, they will have one fewer reason to shop in Johor Baru - which means hypermarts and restaurants there will also be hit.

The fuel ban, due to kick in on Friday, is aimed at stopping foreign motorists from reaping savings from Malaysian fuel, which cost the Malaysian government RM40 billion (S$17 billion) to subsidise last year.

The move will hit about 300 petrol kiosks in the designated ‘ban’ zones.
 
At BHPetrol, which sits near the Causeway, half the customers are Singaporeans, said kiosk assistant Chai Shao Chin, 37, who added:

‘Die already lah, really die. Business will be down. There are so many kiosks, some will have to close shop.’

Mr Sallehuddin Saidon, 46, who runs a Shell station in Taman Sri Tebrau, where a food centre popular among Singaporeans is located, agreed, saying the ruling will ‘cripple Johor’s economy badly’.

Of his 1,000 weekday and 1,500 weekend customers, 40 per cent are Singaporeans.

Petrol kiosk operators hope the Petrol Dealers Association of Malaysia will protect their interests.

The Straits Times confirmed their fears: Most of a dozen Singapore motorists who were in JB yesterday said they will cut back on trips across the Causeway, since they will not bother driving to Sedenak or Kota Tinggi - about 50km away - for fuel.

The Land Transport Authority said about 16,000 local vehicles leave Singapore via the Woodlands and Tuas checkpoints daily.

Sales engineer Alvin Tan, 35, said when the rule takes effect, he will cut down his trips to Johor from eight times to once a month.

‘I come here because of the savings. It is not worth it to drive so far up to get petrol. I might as well just spend in Singapore,’ he said.

Retired cabby Jimmy Tan, 62, who visits his daughter in JB daily, suggested charging Singaporeans fuel at non-subsidised rates instead of barring them from buying any.

Subsidised petrol, regardless of brand, costs RM1.92 a litre, and diesel, RM1.58. Removing the subsidy will add RM1 to the cost.

Singapore businessmen in Johor also griped about the inconvenience the move will pose.

Mr Jaffar Ali, 61, a tour guide who takes visitors to JB’s attractions twice a month, said his friends who own printing factories in Kulai, within 50km of the border, need to drive around to visit their factories.

He said: ‘Does that mean they have to go to Kota Tinggi or back to Singapore for refills? It does not make sense.’

Petrol kiosks warn that a black market could arise from the ruling. Ms Sharon Kee, who runs a Shell kiosk, pointed out that people may smuggle fuel in local vehicles or come up with modified tanks.

But even as kiosk operators ask how the ruling will be enforced, they say they will comply with it because the fine of RM250,000 is just too hefty to risk getting caught.

A Johor police source told The Straits Times that checking where Singapore vehicles top up their tanks was certainly not the job of the police force.

The Johor department handling domestic trade and consumer affairs has so far received no guidelines from its headquarters on how the ruling will be enforced.
 

Effect on tourism
JOHOR Menteri Besar Abdul Ghani Othman said yesterday the move to ban petrol sales will not hurt the tourism industry.
‘I believe Johor has other attractions for foreigners, and this new ruling will not hamper them from coming in.’ He said the state government supported the ruling as it was time to reduce fuel subsidy costs.

THE STAR/ASIA NEWS NETWORK

Source : Straits Times - 28 May 2008

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Mid-tier, upscale Singapore hotels faring best: STB figures

Mid-tier, upscale Singapore hotels faring best: STB figures
 
For first time, data groups hotels into classes, shows their performance

By Lim Wei Chean 
DOING WELL: Link Hotel in Tiong Bahru is among those in the mid-tier category, which are reported to be fairing the best, along with upscale hotels which would include the likes of Orchard Hotel. — ST PHOTO: DESMOND FOO

MID-TIER and upscale hotels have fared best among different types of hotels in the current tourism boom.
The Singapore Tourism Board (STB), releasing the latest tourism statistics here, has grouped the hotels into four classes and released figures on their performance for the first time.

The four are:

Luxury hotels: those in prime locations or historic buildings (4,500 rooms);

Upscale hotels: boutique hotels and those in prime locations, charging slightly lower rates (12,400 rooms);

Mid-tier hotels: those in commercial zones (9,500 rooms); and

Economy hotels: those with budget rooms in outlying districts (3,800 rooms).

The STB declined to cite examples of hotels in each category, but going by its descriptions of each, luxury hotels include the likes of The Ritz-Carlton Millenia; upscale ones include Orchard Hotel; mid-tier hotels cover Link Hotel in Tiong Bahru and economy hotels include Hotel Bencoolen.

Going by STB figures, upscale and mid-tier hotels did best in average room occupancy, average room rate and revenue per available room last month.

Among the four categories, upscale hotels saw the biggest jump in revenue from each available room - 27.9 per cent - from a year ago.Revenue per available room is calculated by multiplying average room occupancy by average room rate.

Mid-tier hotels had the biggest increase in average room rates, up 28.2 per cent over last April’s.

Mr Colin Tan, director of research and consultancy at Chesterton International, said the sound performance by mid-tier and upscale hotels could have come from the room crunch and higher demand for these hotels.

The average hotel occupancy rate stood at 84 per cent last month, at an average room rate of $254. Hotels are expected to earn $186 million from their rooms, up 30.1 per cent from last April.

Knight Frank director of research and consultancy Nicholas Mak, noting an uptrend across all four hotel categories, said that, by releasing such data, the STB is helping investors judge the industry’s state and decide which categories are worth putting money into.

Chesterton International’s Mr Tan surmised that the recent ‘no-bid’ situation for a 0.9ha Little India hotel site could have spurred the STB to make this information part of its monthly updates.

The plot above Little India MRT station made the news last week as the first instance in seven years where a government land tender failed to draw bids.

Mr Tan said one reason could be that the site is suitable for mid-tier or budget accommodation and developers had the idea returns on these types of hotels are lower.

However, he added, with STB information that all sectors are doing well, investors may be spurred to take up non-prime land to build non-luxury hotels.

The STB confirmed it made the data available ‘to facilitate their business and investment decisions’.

Fuelling the growth of hotels is a rise in the number of tourists. Last month was another sterling month, with 826,000 arrivals: Indonesians led the charge with 131,000, followed by 107,000 Chinese, 63,000 Australians and about the same number of Indians, and 53,000 Malaysians.

Source : Straits Times - 28 May 2008

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Singapore New flats under stricter rules in hot demand

Singapore New flats under stricter rules in hot demand 

By Jessica Cheam 

DEMAND has been strong for the latest batch of Housing Board (HDB) flats - despite new rules designed to prevent frivolous applications.
As at 5pm yesterday, 2,397 applications had poured in for the 1,485 premium flats launched by HDB just last Thursday.

Housing experts say demand looks likely to stay healthy, although the total number of applications may drop as HDB’s new rules begin to deter time-wasting and frivolous applications.

The latest flats are likely to be three times oversubscribed, they say - a drop from comparable sales earlier this year, which were about five times oversubscribed.

HDB’s two newest projects - Compassvale Pearl in Sengkang and Punggol Sapphire - are being offered under HDB’s build-to-order (BTO) system, where flats are built only when a certain level of demand has been reached.

HDB tweaked its application process last week to address concerns over relatively low take-up rates for new flats despite thousands of applications.

Under the new rules, a first-time buyer who rejects an offer to buy a flat twice at HDB’s BTO or balloting sales exercises will lose his first- timer priorities for a year. That effectively puts him at the back of the queue with the second-timers.

The new rules raised fears that buyers offered leftover flats will be penalised. HDB has since said it may exercise flexibility if applicants at the back of the queue have good reasons for rejecting available flats.

Market watchers such as Prop- Nex chief executive Mohamed Ismail told The Straits Times he estimates applications will drop by 40 per cent under the new rules.

‘But as new HDB flats are still the cheapest option for newlywed couples, demand should still be at the 70 per cent take-up rate,’ he said.

ERA Realty Network’s assistant vice-president Eugene Lim agreed. ‘The new rules cut out the time- wasters…what’s left is real demand.’

Earlier this year, BTO projects Punggol Spring and Jade Spring @ Yishun Phase 2 were about five times oversubscribed, HDB figures show. Mr Ismail said the latest projects are likely to be about three times oversubscribed, based on yesterday’s figures.

So far, Punggol Sapphire is the more popular, with 1,824 applications for 1,065 homes, compared to 573 for 420 homes at Sengkang.

First-timers such as IT officer Chua Yong Kiat, 28, said it will not be a surprise if total numbers drop.

‘I’ll definitely only apply if I’m sure I would buy a flat at that location. If not, getting that dream home becomes much harder if you lose your first-timer priorities,’ he said.

 
Source : Straits Times - 28 May 2008

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Singaporeans likely to cut down on trips to Malaysia once petrol sale ban starts

Singaporeans likely to cut down on trips to Malaysia once petrol sale ban starts

By Asha Popatlal,

SINGAPORE: Some Singaporeans said they may cut back on trips to Malaysia once the proposed ban on the sale of petrol and diesel to foreign registered vehicles within a 50-kilometre radius of Malaysia’s borders takes effect.

The ban is expected to kick in as early as this Friday in a move to prevent abuse of heavy fuel subsidies.

However, Malaysia’s Domestic Trade Minister, Shahrir Samad, said on Tuesday that the ban is a temporary one. It will be lifted once a new subsidy mechanism to replace the existing scheme, where everyone is subsidised, is put in place.

Still, the move is expected to affect hundreds of motorists who regularly cross over the border for cheaper oil.

Malaysia’s diesel and petrol prices are among the lowest in Asia due to high government subsidies.

The ban is expected to affect up to 300 petrol stations in the country. And Singaporeans who head to Johor Bahru for cheaper petrol will be the most affected.

For example, Loy Cheong, a businessman who is a regular traveller across the border, said he will cut back on his trips.

Mr Cheong, Business Development Manager, Medo Enterprises Holding, said: “Buying cheap petrol is one of the privileges and what attracts the Singaporean to go there. But with this implementation, it may deter people from visiting Johor.

“We go normally once a week or once in every two weeks. But if they implement this, maybe we will go less often, like once a month.”

Also facing problems are Malaysians who are Singapore permanent residents.

Koh Ming Li, a Singapore permanent resident, lives near the border and has been coming to Singapore almost every day for the past two years for work.

He said: “The problem now is that it prohibits me from driving directly into JB. And as for the 50-kilometre radius from JB, I would say (there’s) almost no petrol kiosks within JB that I can pump petrol from.”

Petrol kiosk operators who violate the ban face the possibility of a S$110,000 fine (RM$250,000) or a three-year jail term or both. - CNA/vm

Source : Channel NewsAsia - 28 May 2008

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Global investors see opportunities in nanotechnology in Singapore

Global investors see opportunities in nanotechnology in Singapore

By Timothy Ouyang,

SINGAPORE: Global investors said they are seeing a lot of investment opportunities in nanotechnology opening up here in Singapore.

The comment comes a day before the first ever NanoEquity Asia conference kicks off in Singapore. The conference is aimed at facilitating investment in nanotech start-ups and SMEs from around the region.

It was touted to be the next explosive growth area after information technology here in Singapore and nano-technology is starting to have a huge impact on a wide range of industries.

Marco Beckmann, CEO, Nanostart Investments, said: “We see products, new technologies that are just about to enter the market and they’re coming right out of Singapore. And sometimes, we see so many fast things that are developing here in Singapore that’s very promising and interesting for us.”

Investors said there’s a growing trend globally to look for investments in the application of nanotechnology in clean tech.

But industry watchers note that nanotech firms need help in growing their technologies into commercial businesses.

Mr Beckmann continued: “Every single nanotech company is most likely a scientific-driven team that needs help to commercialise their technology and that means they need support. They don’t only need money, they need support to commercialise their technology.”

Support in research and development infrastructure is also seen as important.

And according to some firms, this has been a big pull factor for them to set up their regional headquarters here in Singapore.

Jim Von Her, President, Zyvex Labs, said: “When I started to really come here and look at the quality of the institutions, I realised there’re couple of universities that are in the top 100 universities worldwide (like) NUS and NTU.”

Currently, the EDB estimates that there are some 50 nanotechnology companies based here in Singapore. - CNA/vm

Source : Channel NewsAsia - 28 May 2008

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Singapore URA releases 2 sites at Woodlands, Kallang Pudding Road for sale

Singapore URA releases 2 sites at Woodlands, Kallang Pudding Road for sale

SINGAPORE: The Urban Redevelopment Authority (URA) has launched an industrial site at Woodlands Industrial Park E5 for sale by public tender.

The site has an area of 1.68 ha and is zoned for a Business 2 development. The tender for the site will close at noon on July 22.

The URA also released the detailed sales conditions for a reserve list site at Kallang Pudding Road for industrial development. The 0.57 ha site is zoned for a Business 1 development.

Businesses are grouped under Business 1 and Business 2 zones, according to their impact on the environment.

Under the government’s reserve list system, a site on the reserve list would only be put up for tender if a developer’s indicated minimum bid price in his application is acceptable by the government.

Both sites have a gross plot ratio of 2.5 and have a lease period of 60 years.

- CNA/so

Source : Channel NewsAsia - 28 May 2008

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April visitors hit 826,000, a record for the month- Singapore

April visitors hit 826,000, a record for the month- Singapore

By WEE JUN KAI

SINGAPORE welcomed 826,000 visitors - 0.8 per cent more than in the same month a year ago and a new April record.

River cruise: Promotions and marketing efforts drew a record number of April visitors
Visitor days were estimated at 3.3 million days, an increase of 9.9 per cent from April 2007.

Indonesia (131,000 visitors), China (107,000), Australia (63,000), India (63,000) and Malaysia (53,000) were the top five visitor-generating markets. They accounted for 51 per cent of arrivals for the month.

Among the top 15 markets, Vietnam, China, and Australia registered the highest growth at 22 per cent, 8 per cent and 8 per cent respectively.

Factors that contributed to the growth included travel and airline promotions, strong branding and marketing efforts.

Singapore’s gazetted hotels reaped an estimated $186 million in room revenue, representing growth of 30.1 per cent from April 2007.

The average room rate (ARR) was estimated at $254, representing an increase of 32.5 per cent from April 2007.

Related article:

Click here for STB’s April 2008 factsheet

Mid-tier hotels achieved the highest ARR percentage growth of 28.2 per cent, to reach $203.

The Average Occupancy Rate (AOR) for hotels was estimated at 84 per cent in April, representing a one percentage point decrease from April 2007. Economy-tier hotels recorded the highest AOR at 87 per cent.

Revenue per available room (Revpar) grew 30.9 per cent to reach $212.

Upscale hotels registered the highest percentage growth of 11.9 per cent in Revpar to reach $236. Besides statistics on visitor arrivals and top visitor-generating markets, the monthly, half-yearly and annual factsheets issued by the Singapore Tourism Board now include tiers in reporting the performance of the hotel sector.

Source : Business Times - 28 May 2008

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Lower-income Singapore families got more in Growth Dividends

Lower-income Singapore families got more in Growth Dividends

LOWER-INCOME households received the lion’s share of the $407 million in Growth Dividends paid out last month, Finance Minister Tharman Shanmugaratnam said in a written reply yesterday.
He was responding to a question from Nominated MP Siew Kum Hong, who wanted a breakdown of how much families with different incomes had received in dividends.

Mr Tharman said that the wealthier a family, the smaller the amount of dividends its members received.

For example, family members in households whose incomes placed them in the 11th to 20th percentile received an average of $140 in Growth Dividends.

By contrast, a family member in the top 10 per cent of households by income received an average of $80 in dividends.

Mr Tharman noted that, besides the dividends, households would get a slew of other benefits this year, such as this year’s instalment of goods and services tax credits, utility rebates and Medisave top-ups for the elderly.

Such measures were also targeted at helping those who need financial assistance most, he said.

KEITH LIN

Source : Straits Times - 28 May 2008

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24 hours to report all Singapore accidents to insurers

24 hours to report all Singapore accidents to insurers

From Sunday, motorists who don’t inform insurers in time will forfeit part of their no-claims discount or even insurance cover

By Christopher Tan, Senior Correspondent

REPORT EVEN MINOR ONES: Under the new rule, motorists must report all road accidents, even when there is no visible damage. — PHOTO: JOSEPH NAIR FOR THE STRAITS TIMES

FROM Sunday, motorists must report all accidents - no matter how minor - to their respective insurers within 24hours or part of their no-claims discount (NCD) will be docked.
Worse, their insurers might not cover them if a claim is filed against them.

This tough stance is the latest attempt by the insurance industry to curb runaway claims, which drove motor underwriting losses to a five-year high of $103.2 million last year.

The picture continues to look bleak this year: In the first quarter, motor-underwriting losses hit $35.3 million - nearly treble that for the same period last year.

Insurers reckon inflated claims are a major cause. These claims are often filed well after an accident.

Although it has long been a legal requirement to report all accidents, this is the first time insurers are insisting on a 24-hour timeframe so ‘fresh information’ is at hand.

DON’T CHANCE IT
‘You may have shaken hands with the other driver and parted in good faith but, in real life, he could well file a claim against you months later.’
GIA PRESIDENT DEREK TEO, on why even accidents that result in no visible damage to the vehicles involved must be reported

Insurers also believe people are less likely to lie or have less chance to collaborate with workshops to submit inflated claims within the first 24hours of an accident.

In announcing the new step, the General Insurance Association (GIA) - which represents about 30 motor insurers here - said yesterday that car owners will lose 10 percentage points of their NCD if they do not comply.

NCDs are given annually to motorists who have not made accident claims, up to a maximum of 50 per cent of their annual premium.

So a motorist who pays a premium of $500 after a 50 per cent NCD and does not report an accident to his insurer within 24hours would have to pay $600 the next time he renews his policy.

Motorists with no NCD will not suffer this penalty, but the GIA warned that those who do not comply with the new rule are in breach of policy terms and an insurer would have the right to refuse their claims.

GIA president Derek Teo said drivers must report an accident even if there is no visible damage to the vehicle.

‘You may have shaken hands with the other driver and parted in good faith but, in real life, he could well file a claim against you months later,’ Mr Teo explained.

To make reporting convenient, all insurers will have 24-hour hotlines.

When a motorist calls, he will be told which workshops he can send his vehicle to. He must then take his vehicle to it within 24 hours or by the next working day.

The GIA will launch a public education programme to tell motorists what they must do in an accident. The drill includes exchanging particulars with the other parties involved, taking note of identity card and contact numbers, home addresses and names of insurers.

Motorists are also advised to take photos of the vehicles involved in the accident whenever possible.

Most crucially, they must avoid unauthorised tow truck or workshop representatives, who often tout at the scene of an accident.

Mr Teo said he is ‘pretty confident’ the new scheme will reduce inflated claims ‘because for the first time, we have the support of all insurers’. This being so, he is hopeful there will be little need for premiums to rise.

Past efforts to curb contentious claims include the setting up of independent damage assessment centres (Idac). But most insurers found the scheme was either not cost-effective or plainly ineffective.

The latest plan has the support of other quarters. Consumers Association of Singapore executive director Seah Seng Choon said it will ‘go a long way in minimising the need to resolve claims and other disputes’ between consumers and insurers.

Automobile Association of Singapore senior manager Leslie Wong added: ‘We can look forward to a more open and fair system…where the interests of all parties, especially the motorist, can be better safeguarded.

Source : Straits Times - 28 May 2008

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