Fortnight of festival fun for F1 race - Singapore

Fortnight of festival fun for F1 race  - Singapore

River magic and beer fest among the highlights

By Tessa Wong 

 
GET ready for a jam-packed fortnight of festivals, events and parties when the Formula One season zooms into town in September.
At least 12 different events will be crammed into three weekends, dubbed the Singapore Grand Prix (GP) Season.

The aim: To rev up the buzz, attract more tourists, and provide entertainment alternatives for those keen on the race as well as non-fans of the sport.

Spearheaded by the Singapore Tourism Board (STB), the season will run from Sept 20 through to Oct 5.

The highlight is set to be the inaugural Singapore River Festival from Sept 19 to 28, which will link the key event areas.

It will incorporate a music festival held at Empress Place, outdoor parties and performances by the river at Clarke Quay, a floating parade and dance drama at Boat Quay, an illusion show and walking tours.

Other events in the season include the first Singapore Beer Festival at Fort Canning Park, the opening of the Singapore Biennale arts extravaganza, the Singapore Motorshow and a concert by jazz artiste Diana Krall.

An outdoor sculpture exhibition along Orchard Road and the Singapore River, and a Tag Heuer watch exhibition where racing star Kimi Raikkonen will make an appearance are also on the calendar. More events are expected to be announced later.

The STB declined to give specific numbers, but The Straits Times understands that marketing and running the season is expected to cost the government body and its partners ’several millions’ of dollars.

This will be on top of the sum the Government is spending on the GP itself. It is expected to foot 60 per cent of the cost of staging the annual race, a sum which can hit $150 million.

The race - the first one at night - is expected to generate between $100 million and $150 million in tourist spending; the STB also declined to say how much the GP Season will add to that amount.

Ms Margaret Teo, STB’s assistant chief executive of leisure, said the events were aimed at entertaining the estimated 90,000 visiptors coming here for the race.

‘There are many offerings available. We hope that the tourists can come, spend more, and enjoy themselves,’ she said, adding that free events with mass appeal such as the illusion show and River Festival were included to draw in those living here too.

The STB is marketing the race and the GP Season in China, Hong Kong, Indonesia, Malaysia, Thailand, India, Japan, the Philippines and Australia.

An estimated 40 per cent of the tickets for the race sold so far have been snapped up by foreigners.

Source : straits Times  - 24 Jun 2008

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S’pore property market approaching peak: report

S’pore property market approaching peak: report

By UMA SHANKARI
SINGAPORE is still a safe haven for property investments but a market peak is approaching, Pacific Star says in a recent report.
The Singapore-based property group is most bullish on the retail sector here, recommending that investors add to investments in that segment. The residential and office sectors, on the other hand, are rated ‘neutral’.

In the same vein, OCBC Investment Research reiterated its ‘neutral’ view on the residential sector here in a June 12 report.

According to Pacific Star, the retail market here is tightening. Vacancy rates have fallen to levels not seen since 1993 and rents continue to climb slowly, with an increase of one per cent in Q1 this year, after a 0.6 per cent rise in Q4 2007.

Retail spending is expected to increase in line with growing tourism and rising incomes.

‘Marketing agents report that Orchard Central and Ion Orchard, two prime (upcoming) shopping centres in Orchard Road, are attracting strong rental enquiries from retailers that currently do not operate in Singapore,’ Pacific Star’s report said. ‘Rents at Ion are expected to significantly surpass current prime retail rents.’

 
 
For the office sector, the current demand-supply imbalance is expected to support rents till 2009, said Pacific Star. ‘Office demand is still firm with leasing agents lamenting the lack of available space rather than a lack of enquiries, although the number of enquiries would have fallen somewhat.’

But an above-normal supply of office space will put pressure on rents from 2010, even if growing demand from the services sector prevents any excessive correction, it said.

In the residential segment, Pacific Star expects the current stupor to continue, as there are few catalysts for the rest of 2008. It believes prices and transaction volumes will continue to soften for the rest of the year.

However, the initial catalysts for recovery are expected in 2009, when Singapore’s economic growth is expected to exceed that of 2008, according to Pacific Star.

The recovery will be fuelled by immigration and higher incomes that will make it more affordable for Singaporeans to buy mid and high-end private homes, it said.

In a report on the residential market here, OCBC sounded a warning, saying past trends point towards another price correction over the next few quarters.

On the other hand, interest in mass market properties should come back, said OCBC.

‘Given that only five projects with total of 1,139 units are expected to be launched in the outside central region between Q2 2008 and Q3 2008, this should ease concerns of oversupply and drive the take-up rate higher over the next few quarters,’ analyst Foo Sze Ming noted.

 
Source : Business Times  - 24 Jun 2008

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Singapore Office rents to rise 10%: RREEF

Singapore Office rents to rise 10%: RREEF

But no hike next year as new supply from key projects starts coming in
By ARTHUR SIM
OFFICE rents here are expected to rise a further 10 per cent or more this year - before growth all but disappears in 2009.

 
Upcoming bay views: Artist’s impression of the Marina Bay Financial Centre 
According to a report by Deutsche Bank’s property arm RREEF, rental growth is expected to ‘evaporate’ by 2009 as extensive new supply starts to come onstream from projects such as the Marina Bay Financial Centre (MBFC), Ocean Building and Marina View.

From 2010 to 2012 - when the market adds 570,000 square metres of new Grade A office space - Grade A stock is expected to increase 25 per cent, the report says.

‘The vacancy rate, currently near one per cent, will shoot up to 2005 levels by the time this new wave of supply is all brought on line,’ it adds.

RREEF expects rent momentum - the ‘general momentum behind the potential changes in rent, not an absolute variation in rates’ - to decrease in 2010 and 2011, then stabilise in 2012.

In its report, Asia Pacific Property Cycle Monitor, it says each property sector has a clearly identifiable cycle with four main phases:
recovery (high but declining vacancy rates - stable to rising rents);

growth (low and declining vacancy rates - rising rents supportive of construction);

post-growth (low but increasing vacancy rates - rising/flattening rents); and

contraction (high or increasing vacancy rates - falling rents).

‘The office market has the greatest volatility of the three main commercial sectors,’ says RREEF. ‘The retail and industrial sectors are less volatile due to the relatively high levels of owner-occupation, with less investment activity and limited modern supply, particularly in the industrial sector.’

While the office sector is currently still in the growth stage, a post-growth stage is expected in 2009, followed by two years of contraction, and finally recovery in 2012.

On the upside, the retail property sector is expected to remain in the growth stage until at least 2012.

RREEF attributes this to a ‘broad construction boom’ and ‘robust economy’. ‘Two new malls in the Orchard Road area will join the island’s existing stock of dated retail space in 2008, which could spur structural change in the market,’ it says. ‘Extensive pre-leasing of this space will keep Singapore’s retail vacancy rate steady in the one per cent range.’

RREEF expects retail rental growth to average 3 per cent per annum between now and 2012.

It also sees the industrial property market booming - especially business parks. It projects growth until 2010, when a post- growth stage will kick in until at least 2012. Rents, which grew at double-digit levels in 2006 and 2007, should continue to rise this year, before the rate of increase tapers off to single digits.

While the spillover effect from the office sector has led some companies to turn to business-park space for their back-office operations, RREEF reckons that this effect will ‘diminish’ when the large supply of new office space comes onstream from 2010.

It also adds a note of caution: ‘While it poses no immediate competitive threat to Singapore, Malaysia’s long-term plan to develop the Iskandar Development Region in Johor will be a project with structural implications for Singapore, and its progress should be monitored over the long-term.’

Source : Business Times  - 24 Jun 2008

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Subsales carve out bigger slice of Singapore home deals

Subsales carve out bigger slice of Singapore home deals

In some popular projects, average subsale prices slipped by up to 5% in the first five months
By KALPANA RASHIWALA
(SINGAPORE) Subsale volumes are down amidst a quieter property market, but a new study by Jones Lang LaSalle shows that in most parts of Singapore, subsales actually rose as a percentage of total private apartment and condo sales in the first five months compared with last year.

 
Driving the trend have been players who bought properties from developers on deferred payment schemes (DPS) but who are seeking to exit the market as projects near completion.

In some popular projects such as Icon, Marina Bay Residences, 8 @ Mt Sophia, Park Infinia at Wee Nam, The Grange, One Amber and The Sea View, average subsale prices have slipped between one and 5 per cent in the first five months of 2008 (5M 2008) compared with levels scaled in H2 2007. However, in some projects, prices are still much higher than H1 2007 levels, the study shows.

Subsales are secondary market transactions involving projects that have yet to receive a Certificate of Statutory Completion (CSC) and are often used as a gauge of speculative activity.

JLL’s head of research (SE Asia) Chua Yang Liang expects the percentage of subsales to continue to increase till end-2008 before some high-profile projects receive their Temporary Occupation Permit (TOP). Property market watchers are keeping tabs on the potential unwinding of positions by speculators and specuvestors as the scale of such transactions could lead to a much-predicted slide in subsale prices that could ripple through the broader market.

JLL’s study showed that in the prime districts 9, 10 and 11, subsales made up 23 per cent of non-landed private home sales in 5M 2008, up from a 17 per cent share in H1 2007 and an 18 per cent share for the whole of 2007.

In the east coast (districts 15 and 16), the proportion of subsales rose from 8 per cent in H1 2007 to 11 per cent in 5M 2008. In mass-market areas (defined as all districts falling outside prime, central and east coast), the subsale share went up from 9 per cent to 14 per cent over the same period.

However, in the central districts 1 to 4 (which include places like Marina Bay, Harbourfront and Sentosa Cove), the subsale percentage dipped from 35 per cent in H1 2007 to 33 per cent in 5M 2008, although the latest share remains the highest in the four submarkets in JLL’s study.

‘Going by the relatively high subsales proportion in the Central district, this location has a higher probability of future consolidation in subsale prices given that a number of projects in the area are reaching completion,’ Dr Chua says.

Savills Singapore director (marketing and business development) Ku Swee Yong says that agents have a long list of units in high-profile condos available for the subsale market. ‘But asking prices have yet to come down to a level that would be attractive to potential buyers. So we’re not seeing that many subsale transactions,’ he says.

Mr Ku says that things may not be so bad. ‘Some of them bought their units a few years ago from developers at pretty low prices, so they should be able to get bank loans when the project gets TOP and the DPS runs out. Others bought their units in the subsale market and the developers would not have extended DPS to them; so they’ve already got their housing loans in place. For these owners, it’s more the fear of prices falling that may drive them to put their units on the market.’

JLL’s Dr Chua argues that the rising proportion of subsales this year is ‘not a bad phenomenon as it may suggest a transfer of ownership from speculators to potentially long-term occupiers or investors with stronger investment stamina’.

‘The danger for the market lies with short-term speculators who decide to hold back in anticipation of a higher gain but only to be caught up by insufficient investment breath. This could result in a later surge in fire sales by these speculators, or in their returning units back to developers, who in turn may be hard put to find buyers at a time when sentiment may be weak,’ he argues.

Says Knight Frank executive director (residential) Peter Ow: ‘If I’m not a long-term player and I bought my unit sometime ago when prices were lower than today, it would be more prudent to let go and take some profit first. Property can be very illiquid in a weak market. By the time you want to sell, everybody may also want to do the same thing.’

The level of subsales, and the prices at which such deals are done, is being watched closely by market players as a slew of condos launched earlier and sold on DPS approach their physical completion. The Sail @ Marina Bay (Tower 2) received TOP this month, while Tower 1 is expected to be completed by Q3 2008. The Oceanfront @ Sentosa Cove is expected to be completed in Q1 2009.

A project usually gets its CSC three to 12 months after obtaining TOP. Hence deals in a project that has obtained TOP but not CSC are still classified as subsales.

Typically, the deferred payment expires when the project gets TOP, which is when buyers have to pay the developer a huge portion of the purchase price. ‘Those who bought on DPS and have not exited the market yet, will have to make a call as to whether to secure a loan or begin to release their holdings back into the market now,’ JLL says.

The government stopped granting DPS approvals in October last year.

Source : Business Times  - 24 Jun 2008

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New-concept Singapore JTC factory aims to save cost and space

New-concept Singapore JTC factory aims to save cost and space

‘Practical’ hoisting system to replace expensive cargo lifts
By EMILYN YAP

(SINGAPORE) In a move that could optimise land use and help businesses save on rentals, JTC Corporation has come up with a new concept for a ’small footprint high plot ratio’ standard factory to cater to small and medium-size enterprises (SMEs).
This factory is likely to be three storeys high, and take up a floor plate of 400 sq m.

With a total floor area of 1,200 sq m, the standalone facility would have a plot ratio of 1.3.

In contrast, JTC’s standard factories today stand at two-and-a-half storeys, with a total floor area of between 1,200 and 4,200 sqm. Plot ratios range from 0.8 to 1.1.

Businesses, particularly those in heavier industries, tend to prefer larger ground floor space for the movement and storage of goods.

To address this need, JTC’s concept includes a hoisting system that goes through every floor, to facilitate the movement of goods.

This system replaces the more expensive cargo lifts. The hoist is ‘a practical and more economical option’, says Colliers International managing director Dennis Yeo.

‘For the new prototype factory, land rentals will definitely be lower than that of the existing standard factory in view of its smaller footprint and therefore smaller land take-up,’ says a JTC spokesperson.

 
 
‘The actual rentals will depend on the market situation when the new factory is launched.’

The building rent for JTC’s standard factories ranges from $7.35 per sq m per month to $14 psm pm, and comes on top of land rent. Rents vary according to location.

To help reduce outfitting costs, the new factory concept would come with bolting points and corbels for companies to install customised handling systems, without having to obtain structural approvals.

And the switch room would be located on the roof top to free up more ground floor space.

‘Small footprint high plot ratio’ factories target SMEs which require smaller floor areas but cannot fit their operations into high-rise environments.

‘Hence, this new factory design serves a different market segment from those in the flatted factories,’ the JTC spokesperson says.

According to Soilbuild Group Holdings executive director Low Soon Sim, the design may be suitable for light engineering industries.

The concept is still under feasibility study. JTC will seek industry feedback in the third quarter before working out the details.

Knight Frank’s senior manager of industrial business space Chow Kok Seng points out that heavier industries tend to handle bulkier goods, so a conventional hoisting system may not be suitable for them.

For instance, a company in a three-storey facility, Dynasty Lift Trucks Services, told BT that its hoisting system cannot carry items heavier than two tonnes.

It is looking to shift to a factory with a larger ground floor space to facilitate the handling of its goods.

The new factory concept comes as JTC looks for cost- and space-saving real estate solutions to maximise Singapore’s limited land resource.

The idea could also catch on in the private sector. ‘By coming up with this new concept, JTC will help to encourage private developers to adopt such a design for their standard factories,’ says Mr Yeo.

Source : Business Times  - 24 Jun 2008

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