Is Gallery Hotel on the market?

Is Gallery Hotel on the market?
THE Gallery Hotel in the River Valley area - the first ‘funky’ hotel in Singapore when it opened in 2000 - could go on the market soon, sources say.
BT understands that the hotel’s owner has been talking to several parties with a view to appointing an agent to market the property.

But when contacted by BT, the chief executive of The Gallery Hotel Pte Ltd Ted Ngo said: ‘At this moment, as far as I am concerned, there is no plan to sell Gallery Hotel or to appoint a marketing agent.’

The Gallery Hotel Pte Ltd, which manages the 223-room freehold hotel, is a fully-owned subsidiary of Robertson Quay Investment Pte Ltd (RQI) which owns the property.

Mr Ngo is also a director of RQI and his family is the company’s controlling shareholder. Other RQI shareholders include the Ang and Lim families.

Industry observers polled by BT estimated a wide range of prices for the property at Robertson Quay - from around $450,000 to $900,000 per room. This translates to an absolute price range of about $100 million to $200 million.

Mr Ngo said that the hotel’s average room rate so far this year is above $200, an improvement from almost $180 achieved last year, which was higher than the 2006 rate of close to $150.

 
 
He did not deny that there has been interest in the hotel.

‘I have been getting unsolicited enquiries from all sorts of people since the passing away of my father (Ngo Kheng Hoon) in September 2006,’ he said. ‘I presume someone must be very keen to acquire our property and he is very persistent.

‘Speaking on a personal basis, I don’t see any reason why Gallery Hotel should be on the market. We are doing very well. Singapore is a hot spot for tourism. Our shareholders are getting fantastically good returns compared to just a few years ago. It is hard to get similar returns from other sources these days.’

The property was originally known as Gallery Evason Hotel when it opened in September 2000 but the Evason name was dropped in January 2002 when Six Senses Hotels, Resorts and Spas, owner of the Evason brand and manager the hotel, dropped out.

A property consultant said: ‘There is scope to add value to the property by refurbishing and repositioning it, which would create some upside for an investor. Because the hotel can be sold without an ongoing management contract, the asset may be more appealing to potential investors, who will be free to manage the hotel themselves or appoint an established hotel chain to operate it for them.’

Source : Business Times - 01 July 2008

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Singapore Ophir/Rochor Rd white site for sale

Singapore Ophir/Rochor Rd white site for sale

But developers are not expected to bid bullishly
By ARTHUR SIM

A 2.7 hectare prime white site at Ophir/Rochor Road has been offered for sale by the Urban Redevelopment Authority (URA) - but developers are not expected to bid bullishly.
The site, in the new Beach Road/Ophir-Rochor Corridor, has been put on the confirmed list of the first-half 2008 Government Land Sales (GLS) programme.

And according to URA, it is a ‘natural extension from the established convention, office, hotel hub at Marina Centre’.

But given current quiet market conditions and rising construction costs, property analysts say that developers are unlikely to bid strongly. Bids are expected to range between $600 and $900 per square foot per plot ratio (psf ppr).

Cushman and Wakefield managing director Donald Han believes the site does not compare with a ’super prime’ Beach Road site awarded in September 2007 for $1,068.6 psf ppr.

He also said that with a North Bridge Road site already identified as part of the second-half GLS programme, ‘developer and investor interest in the Ophir/Rochor Road site could be diverted’.

The new ‘corridor’ will be a 24/7 mixed-use area comprising integrated office, hotel, retail, entertainment and residential projects, according to URA.

 
 
‘New developments in the Beach Road/Ophir-Rochor Corridor will inject vibrancy and activities into this part of the city and form a new office cluster for financial and business institutions that will complement the existing financial district at Raffles Place and Marina Bay,’ it says.

The first development site for sale in the ‘corridor’ will have a maximum permissible gross floor area (GFA) of about 160,000 sq m, (1,722,224 sq ft). At least 40 per cent of the total GFA is for office use, with at least 15 per cent for hotel and hotel-related uses. The remaining GFA can be for office, hotel or other complementary commercial and residential use.

CBRE Research executive director Li Hiaw Ho said that if awarded, the office development is likely to be ready in 2013 and could offer city-fringe office occupiers an option to ‘upgrade or expand into a higher-grade quality building without moving into the CBD’.

Mr Li said that occupancy rates in the Beach Road/City Hall area remain strong at 93.3 per cent.

Although the market is subdued, sites on the confirmed list are generally expected to sell faster compared to those on the reserve list.

DTZ Debenham Tie Leung executive director Ong Choon Fah reckons the Ophir/Rochor Road site could appeal to developers who want to position a project ‘differently’.

‘Not everybody wants to be in Marina Bay,’ she said.

Source : Business Times - 01 July 2008

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Singapore 2 BTO projects draw only 111 on 1st day

Singapore 2 BTO projects draw only 111 on 1st day

Response affected by changes in HDB’s application process
By ARTHUR SIM
THE Housing and Development Board launched two new BTO projects yesterday with a potential 1,587 flats. But at the end of the first day, only 111 applications were received - a big drop from previous launches this year.
 
Good value: Four-room flats will cost $223,000-$278,000 at Punggol Breeze (above) and $207,000-$275,000 at Fernvale Residence. The flats will come with all the flooring and fittings completed 
The latest launch comprises mainly four-room flats in two projects - Punggol Breeze at Punggol and Fernvale Residence at Sengkang.

The response to BTOs has been affected since HDB changed the application process in May so first-time buyers who reject two offers lose their priority for a year.

But there were still 400 applications on the first day for 1,485 BTO flats at Compassvale Pearl and Punggol Sapphire that month.

Earlier, the 494-unit Punggol Spring BTO attracted 278 applications on the first day of the launch in February.

While the low number of applications this time around may suggest that buyers have become more cautious in light of the weakening global economy, property consultants believe it is more a reflection of the location of the projects.

Recent BTOs have been in the Punggol and Senkang area, says PropNex chief executive Mohamed Ismail. ‘What people really want are different locations.’

ERA Realty Network assistant vice-president Eugene Lim added: ‘It is too soon to launch another BTO in the same area.’

Still, Mr Ismail believes the launches are ‘timely’ because many young couples cannot afford resale flats. ‘Resale flats are traditionally more costly, especially with the island-wide median cash over valuation standing at $20,000,’ he said. ‘Renovations and furnishings usually add to these costs too.’

As such, Mr Ismail expects Punggol Breeze and Fernvale Residence to be at least two-times subscribed - even with HDB’s new policies in place.

Four-room flats will cost $223,000-$278,000 at Punggol Breeze and $207,000-$275,000 at Fernvale Residence.

Mr Lim reckons that with the new supply expected in Sengkang and Punggol, price increase for resale flats there could be limited.

Prices for Fernvale Residence and Punggol Breeze flats are about 20-30 per cent lower than resale flat prices, he said. ‘This is good value as these are premium flats that come with all the flooring and fittings completed, and buyers have but to do minimal fitting out.’

Source : Business Times - 01 July 2008

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S’pore’s real estate transparency ranking dips

S’pore’s real estate transparency ranking dips

JLL cites enhanced survey questions for slide from 9th to 11th position
By ARTHUR SIM

SINGAPORE and Hong Kong now rank side by side in 11th position on Jones Lang LaSalle’s (JLL) Global Real Estate Transparency Index 2008, down from joint ninth position when the index was last revealed in 2006.
However, JLL said the reason is not a change in market practices but enhancement of the survey questions.

The company’s head of research (South East Asia) Chua Yang Liang said: ‘Singapore remains one of the most transparent markets in Asia alongside Hong Kong. Among the five key attributes assessed in the survey - performance measurement, market fundamentals, listed vehicles, legal and regulatory environment, transaction process - both countries scored very well for their legal and regulatory environment. Together with Finland, they topped the global ranking for this sub-index.’

JLL said that in keeping with historical results, the Australian and US real estate markets remain among the most transparent in the world and now are joint-ranked second. But with the addition of new variables relating to the quality and frequency of valuations, service charge transparency and financing transparency, Canada now ranks as the world’s most transparent commercial real estate market.

The index, which provides a framework for comparing the level of real estate transparency in 82 markets around the world, revealed that eight countries moved up a full transparency tier since the last index in 2006.

 
 
Dubai, Romania, Ukraine and Russia showed the biggest improvements in transparency over the past two years.

A number of countries in the frontier markets are included in the index for the first time, with Belarus, Sudan, Algeria, Cambodia and Syria all scored as ‘opaque’.

Other new entrants to the index, Bahrain, Bulgaria, Estonia, Latvia, Croatia, Abu Dhabi and Lithuania, scored in the ’semi-transparent’ range, while Oman, Qatar, Morocco, Kuwait, Pakistan and Kazakhstan all scored in the ‘low transparency’ range.

The biggest improvers in Asia-Pacific were India, China and Vietnam. China (Tier-1 cities) showed the greatest improvement, moving up to the ’semi-transparent’ tier to rank in 49th position.

Not all investors, however, target markets that are highly transparent.

LaSalle Investment Management global strategist Jacques Gordon said: ‘Many cross-border investors focus on more mature, open and transparent real estate markets such as the UK, Canada, Netherlands and Hong Kong. However, opportunistic investors will consider the emerging, less mature, less open and semi-transparent markets, but will require higher returns to compensate for the higher risks associated with lower transparency.’

 
Source : Business Times - 01 July 2008

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A-Reit targets $5b portfolio size by 2010

A-Reit targets $5b portfolio size by 2010

Unitholders approve issuing new units, convertibles to add to financing options
By EMILYN YAP
ASCENDAS Real Estate Investment Trust (A-Reit) is looking to invest some $500 million in industrial properties and business space each year to reach its target portfolio size of $5 billion by the end of 2010.
 
Mr Tan: ‘A-Reit’s target to invest some $500 million in industrial and business space yearly is achievable.’ 
A-Reit will expand its portfolio through development projects and yield-accretive acquisitions.

The annual investment target is achievable, said Tan Ser Ping, CEO of A-Reit manager Ascendas Funds Management (S) Ltd. A-Reit’s latest investment has been the $246.8 million purchase of 31 International Business Park, Creative Technology’s headquarters building in Jurong East.

A-Reit unitholders yesterday approved a general mandate to issue new units or convertible securities in the financial year ending March 31, 2009. ‘This mandate would provide A-Reit with the necessary financing flexibility to respond to market opportunities,’ said Mr Tan.

Nevertheless, ‘the manager does not expect any immediate need to utilise the mandate to either issue new equity or debt securities such as convertible bonds’, he said.

To diversify funding sources, A-Reit is also putting in place a medium-term note issuance programme, Mr Tan told BT. This should be ready by the end of the third quarter or early fourth quarter.

With a gearing level of around 38 per cent in March, A-Reit also has debt capacity for near-term investments, Mr Tan said. ‘Access to capital is more difficult now, but … the better Reits, including A-Reit, have still got strong support from banks. Our existing banking lines are intact.’

Mr Tan believes that rental growth for business and science park properties and hi-tech industrial properties will remain healthy in A-Reit’s current financial year - rents for business and science park properties, for instance, are likely to grow by around 15 per cent.

However, he points out that uncertainty in the global economic environment will continue to cast a shadow over local conditions.

A-Reit units fell four cents yesterday to close at $2.21. CLSA issued a ‘buy’ call on the counter last week.

 
Source : Business Times - 01 July 2008

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3 Asian stock markets plan billions to fight volatility: report

3 Asian stock markets plan billions to fight volatility: report

Taiwan, Vietnam and Pakistan set aside stabilisation funds to allay market fears
(TAIPEI) Taiwan, Vietnam and Pakistan are poised to inject billions of dollars into their own stock markets soon, reported the Financial Times (FT) on Sunday.
 
Tough times: A scene at a Taipei brokerage last Friday, when the market sank to a five-month low 
All have set aside market stabilisation funds to allay investors’ fears over the volatility of the market, and are coming under increasing pressure to utilise them.

This comes even as there has been a 13 per cent fall this year in the MSCI Asia Pacific Index, which looks as though it would end June with its worst first-half performance since 1992, when it sank by 23 per cent as the Japanese economic bubble deflated.

The Cabinet in Taipei, where the local market dropped to a five-month low last Friday, had called on government pension and insurance funds to buy more domestic shares and to hold their investments for a longer period.

Economic and financial ministers and central bank officials met over the weekend to discuss how to boost investor confidence, reported FT. They stopped short, for now, of ordering the use of a NT$500 billion (S$22.4 billion) National Stabilisation Fund designed to support markets in times of volatility caused by non-economic events. However, the board of the fund, which was last used during political turmoil after the 2004 presidential election, will meet again this Friday.

 
Karachi had one of the hottest markets in the world in 2007, but its loss of nearly one-third in value since April has created ’systemic risk’.
 
 
 
 
 
 
The Karachi Stock Exchange (KSE) in Pakistan is coming under increasing pressure to use a 30 billion rupee (S$604 million) stabilisation fund set up last week for use in ‘volatile circumstances’.

Karachi had one of the hottest stock markets in the world in 2007, but its loss of nearly one-third in value since April has created ’systemic risk’, the KSE said.

Meanwhile in Vietnam, state media reported that the stock exchange and securities regulator was setting up a stabilisation fund to support a market that has lost nearly two-thirds of its value this year as inflation surged.

Official intervention to support share prices has a long history in Asia, reported FT.

One of the most successful examples was in 1998, when the Hong Kong government bought shares in the aftermath of the Asian financial crisis to support the value of the assets backing the territory’s currency, which is pegged to the dollar.

Japan started to intervene in the stock market in 1991 when prices halved after the ‘bubble economy’ burst. Interventions continued for several years, but more than a decade later the Nikkei average is only worth a third of its value in 1989.

‘The success (of official support) depends on one thing only: how cheap the market is,’ said Khiem Do, head of multi-asset at Baring Asset Management in Hong Kong. ‘The price- earnings ratio has ideally to be below 10 times, or no higher than the mid-teens, and then you have some chance of it working.’

Taiwan is currently trading at about 11 times forecast profits, Pakistan at 14 and Vietnam at about 10, he said, reported FT.

Source : Business Times - 01 July 2008

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Singapore Central, prime condo take-up rates outpace other areas

Singapore Central, prime condo take-up rates outpace other areas

Softer H1 prices in these areas cited, pointing to strong latent demand: JLL
By KALPANA RASHIWALA
(SINGAPORE) Softening condo and private apartment prices in the first six months of this year in the prime and central districts - the latter of which covers the financial district, Harbourfront area and Sentosa Cove - have been accompanied by a push in demand in these locations.

This, according to a study by Jones Lang LaSalle, has been reflected in the higher primary market take-up rates for properties in these locations.

‘This suggests the presence of a strong latent market where potential buyers are waiting at the sidelines, eagerly buying up properties when the price is right,’ Jones Lang LaSalle’s head of research (Southeast Asia) Chua Yang Liang says.

JLL measured the take-up rate as the ratio of the number of non-landed private homes sold by developers to such homes launched by developers. It then compared these take-up rates against the average resale prices in four locations on the island - prime (districts 9, 10 and 11), central (districts 1-4), east coast (15 and 16) and mass market (all other districts).

The prime and central districts achieved relatively higher take-up rates of 87 per cent and 250 per cent respectively during H1 2008 compared with take-up rates of 67 per cent for east coast and 66 per cent for mass-market during the same period.

The prime and central districts also saw weaker price movement. The average resale price for prime districts in H1 2008 was 12 per cent higher than in H1 2007 but down 3 per cent from the figure for full-year 2007. In the central districts, the H1 2008 average resale price represented an improvement of 9 per cent year-on-year but was flat against the full-year 2007 figure.

In the east coast, the H1 2008 average resale price raced 20 per cent ahead against a year ago while mass-market locations topped the chart with a 25 per cent year-on-year price gain.

‘The conservative attitude of buyers coupled with cautious outlook by developers will continue to moderate market performance in terms of take-up rates. Buyers are generally sensitive and cautious about prices.

‘Developers are more likely to discount prices to maintain the demand, either through direct discounts of between 5 and 10 per cent on selling prices as we’re already seeing, or absorption of other costs like stamp duty and furnishing vouchers,’ Dr Chua reckons.

JLL’s study also showed that amidst the overall quieter market the number of non-landed private homes bought by those living in HDB flats as well as those with private addresses fell in the first five months of this year.

However, there was an increase in HDB upgraders’ share of total non-landed private homes bought (in both primary and secondary markets) during the first five months of this year in all locations.

This was the case even in the prime districts, where buyers with HDB addresses made up 16 per cent share of total private apartments/condos bought in January to May 2008. This was higher than a 10 per cent share for the whole of last year in this location.

Most of the HDB upgraders who bought a prime district property in the first five months of 2008 picked up a unit in District 9, mainly at new project launches like Wilkie 80 and Mount Sophia Suites, according to JLL.

HDB upgraders accounted for 33 per cent of non-landed homes sold in the east coast in the first five months of 2008, up significantly from a 21 per cent share in full-year 2007.

In the mass-market districts - the traditional haunt of upgraders buying private property - their share was 39 per cent in Jan-May 2008, up from 32 per cent in 2007. In the central districts, the upgrader share edged up from 16 per cent last year to 19 per cent in the first five months.

‘Although prices in 2007 have moved past the average-income buyers’ affordability, the current softer prices as well as stronger economic performance in 2007 have provided the impetus for many HDB upgraders in all locations,’ Dr Chua notes.

‘As HDB resale flat prices are likely to remain strong given limited supply, upgraders who benefit from the gain in the resale market are likely to enter into the private market. We reckon the percentage of upgraders is likely to grow by year-end if developers and sellers keep prices at realistic levels,’ he added.

Source : Business Times - 01 July 2008

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Asian govts may buy shares to aid tumbling markets

Asian govts may buy shares to aid tumbling markets 

Vietnam, Taiwan and Pakistan face calls to intervene to boost investor confidence
NOT SO GOOD: Japan started to intervene in the stock market in 1991 when the ‘bubble economy’ burst. Interventions continued for several years, but more than a decade later, the Nikkei average is worth only a third of its value in 1989. — PHOTO: REUTERS
 
SEVERAL Asian governments are looking at spending billions of dollars on shares to support plunging stock markets, in a move likely to be welcomed by global investors who fear emerging markets may be about to suffer further dramatic falls, the Financial Times (FT) reported.
The move follows a 13 per cent fall this year in the MSCI Asia Pacific Index, which looks as though it will end the month with its worst first-half performance since 1992, when it sank by 23 per cent as the Japanese economic bubble deflated, the FT said yesterday.

Government officials in Taipei, where the local market dropped to a five-month low last Friday, said the Cabinet had called on government pension and insurance funds to buy more domestic shares and to hold their investments for a longer period, said the paper.

Taiwan’s economic and financial ministers and central bank officials met over the weekend to discuss how to boost investor confidence.

They stopped short, for now, of ordering the use of a NT$500 billion (S$22.5 billion) National Stabilisation Fund designed to support markets in times of volatility caused by non-economic events, said the paper. However, the board of the fund, which was last used during political turmoil after the 2004 presidential election, will meet again on Friday.

In Vietnam, state media reported that the stock exchange and securities regulator was setting up a stabilisation fund to support a market that has lost nearly two-thirds of its value this year as inflation surged.

And in Pakistan, the Karachi Stock Exchange (KSE) is coming under increasing pressure to use a 30 billion rupee (S$604.2 million) stabilisation fund set up last week for use in ‘volatile circumstances’, said the FT.

Last year, Karachi had one of the hottest stock markets in the world, but its loss of nearly one-third in value since April has created ’systemic risk’, the KSE said.

Official intervention to support share prices has a long history in Asia, said the FT. One of the most successful examples was in 1998, the paper added, when the Hong Kong government bought shares in the aftermath of the Asian financial crisis to support the value of the assets backing the territory’s currency, which is pegged to the United States dollar.

Japan started to intervene in the stock market in 1991 after prices halved when the ‘bubble economy’ burst. Interventions continued for several years, but more than a decade later, the Nikkei average is worth only a third of its value in 1989, said the FT.

In Singapore, however, the Government favours a ‘hands-off’ approach to stock market volatility and does not interfere to prop up the market.

Source : Straits Times - 01 July 2008

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Yacht charter service at Singapore Keppel Bay

Yacht charter service at Singapore Keppel Bay 
 
KEPPEL Bay home owners will soon be able to get more out of their prime waterside location.
Keppel Land announced yesterday that it will be launching a luxury yacht charter service later this month - the first such service in Singapore.

The new Grand Banks 52 Europa model yacht, The Admiral, is owned and managed by the Marina at Keppel Bay, and will be available to residents at a ‘privileged rate’, Keppel said in a statement.

The service, said Keppel Land residential chief executive officer Augustine Tan, will help Keppel Bay deliver ‘on its promise to be a vibrant waterfront precinct where home owners can enjoy the best in urban and waterfront lifestyles’.

The Keppel Bay precinct, comprising office development Keppel Bay Tower, the Marina at Keppel Bay, and the residential sites Caribbean at Keppel Bay and upcoming Reflections at Keppel Bay, is developed by Keppel Corp and its property arm, Keppel Land.

Source : Straits Times - 01 July 2008

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Tuan Sing buys Singapore Katong Mall for $219m

Tuan Sing buys Singapore Katong Mall for $219m 

By Jessica Cheam 
 
PROPERTY group Tuan Sing Holdings bought Katong Mall for $219 million yesterday, in the first major collective sale of the year.
The four-storey complex of strata-titled shops and other businesses is the first fully retail site to be sold collectively, said marketing agent Jones Lang LaSalle (JLL).

The 78,158 sq ft site with a gross plot ratio of 3.6 went on sale at an indicative price of $220 million to $250 million.

Tuan Sing’s price values the land for the 99-year leasehold mall at about $865 per sq ft, including a lease top-up of $24.5 million.

It bought the mall through its unit Golden Cape Investments.

JLL investments director Stella Hoh told The Straits Times that ‘a few parties’ - including large and small property groups - entered bids and expressions of interest but she declined to reveal names.

Savills Singapore director for business development Ku Swee Yong said the sale was likely to be one-off and not indicative of a broader market trend, while Knight Frank director for research and consultancy Nicholas Mak said the deal was fairly priced given market conditions.

The mall went on sale in May amid some controversy.

Its public tender followed a contentious process from last September, when 35 minority owners claimed that they were not consulted in drawing up the collective sale deal.

They also took issue with the low reserve price - believed to be $180 million - and the fact that the sale was being conducted under the old rules and not the stricter new ones that took effect in October.

The owners also complained that two majority owners - Nustavino and Habitat Properties - had a potential conflict of interest as they were developers that could bid for the property. There were even questions raised during the tender launch over whether the consent of owners representing 80 per cent of the share value needed for the sale had been obtained.

Minority owner Robert Ong said the price was ‘above what we had expected’ but added that the minority owners could appeal against the sale to the Strata Titles Board.

Meanwhile, Tuan Sing already has a stake in the mall, obtained via an asset swop approved by its shareholders last month.

The mainboard-listed firm disposed of $107 million in loans owed by its associate Gul Technologies Singapore through an asset swop with the controlling shareholders of Tuan Sing for certain strata units in Katong Mall.

This involved 129 strata shop units with an aggregate purchase consideration of $63.1 million.

Tuan Sing said the deal allowed for a ‘realistic and tangible recovery of the loans, although it would have to recognise a partial write-down’ of about $44 million.

 
Source : Straits Times - 01 July 2008

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Singapore Govt puts up Bugis plot for sale in quiet market

Singapore Govt puts up Bugis plot for sale in quiet market

Appeal of 2.7ha site, near new Bugis MRT station, expected to draw bids over $1b

By Joyce Teo, Property Correspondent 
 
THE vacant U-shaped plot in Bugis used by art circus troupe Cirque du Soleil three years ago was put up for sale yesterday with a price expected in excess of $1 billion.
The prime 2.7ha site in front of Parkview Square could house a 40-storey office building, about 500 hotel rooms, as well as shops and homes.

There will also be direct basement level connections to the new Bugis MRT station that is being built to accommodate the upcoming Downtown Line.

The plot is designated a white site, meaning it can be used for different functions, such as residential or commercial.

Property consultants believe the white site’s size, location and transport links will make it particularly appealing.

‘Some developers will find it attractive as it is very big, which allows for various development and architectural options,’ said Knight Frank’s director of research and consultancy, Mr Nicholas Mak.

But the cautious mood in the property market is likely to affect demand and bids, the consultants said.

They expect the 99-year leasehold white site to fetch anything from $1 billion to $1.4 billion, or between $600 and $813 per sq ft (psf) of potential gross floor area.

A white site in nearby Beach Road was awarded to a City Developments-led consortium for $1.689 billion, or $1,068.6 psf of potential gross floor area, last September when the property market was buzzing.

‘The Beach Road site is pricier as it is closer to the financial hub, and thus more attractive,’ said a market watcher. ‘Besides, the market is so much quieter now, compared with last year.’

Mr Mak said the Bugis plot could have fetched a similar price if it was launched during last year’s property boom.

This is the first land parcel offered for sale in the Ophir-Rochor corridor, a new growth area that the Government hopes to turn into a commercial hub.

The Ophir-Rochor corridor, which is seen as a natural extension of the established convention, office, hotel hub at Marina Centre, is expected to become a busy mixed-use cluster, said the Urban Redevelopment Authority (URA) yesterday.

Flanked by Kampong Glam and Beach Road, the area will also complement the financial district at Raffles Place and Marina Bay, URA said.

This planning vision dictates that at least 40 per cent of the total gross floor area of the U-shaped plot must be set aside for office use, while hotel and hotel-related uses should occupy at least 15 per cent.

The rest of the total gross floor area of about 160,000 sq m or 1.72 million sq ft can be used for more offices, hotel space, or shops and homes.

The URA, which unveiled plans for the Ophir-Rochor area last year, marketed the area’s first available sale site at an annual global property event at Cannes in March this year.

CBRE Research executive director Li Hiaw Ho said an office development on the site should be built by 2013 and could offer city fringe office occupiers an option to upgrade or expand into a higher-grade building without moving into the Central Business District.

The tender closes on Dec 3.

 Buyers wanted

The prime 2.7ha site in front of Parkview Square can house a 40-storey office building, about 500 hotel rooms, as well as shops and homes.

It is the first land parcel offered for sale in the Ophir-Rochor corridor, a new growth area that the Government hopes to turn into a commercial hub.

The site can be used for different functions, such as residential or commercial.
Source : Straits Times - 01 July 2008

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Singapore MAS to strengthen regulation in wake of US sub-prime crisis

Singapore MAS to strengthen regulation in wake of US sub-prime crisis
 
By Nicholas Fang 
 
THE Monetary Authority of Singapore (MAS) will tighten supervisory rules to ensure that financial institutions are well-placed to weather events such as the ongoing sub- prime crisis in the United States.
Its deputy managing director for prudential supervision, Ms Teo Swee Lian, said the events triggered by the sub-prime crisis had exposed a number of weaknesses in Singapore.

She said at the opening of the Second Annual Risk Management Conference yesterday that the crisis had spurred the MAS to re-examine its role as the financial industry’s supervisor.

‘It is inevitable that there will have to be some adjustments to our rules to address weaknesses that have been identified, for example, in relation to stress-testing processes,’ she said.

‘MAS will do this in a proportionate manner to ensure that there are no unintended consequences.’

She said MAS rules are not meant to be a comprehensive textbook for the management of risk, and urged board members and senior management to be responsible in ensuring that an institution’s risk management framework is robust.

Ms Teo also said that the MAS will continue to engage financial institutions on their risk management practices and said the central bank would increase its level of supervision.

‘During this phase, where the industry as a whole is seeking to internalise the lessons learnt from the crisis, institutions can expect more in-depth supervisory challenges by MAS on the appropriateness of their risk-management frameworks, especially in areas relating to stress testing and contingency planning.’

Banks in Singapore backed the MAS’ approach.

Standard Chartered Singapore chief executive Lim Cheng Teck said: ‘We welcome stronger and tighter regulatory supervision as it is in the interest of consumers.

‘Banking remains a risk-based industry and it is important that we remain prudent in our management and pricing of risk.’

OCBC Bank group chief risk officer Gilbert Kohnke agreed: ‘An effective risk-management programme is a prerequisite for any financially sound institution.

‘The board of directors and senior management each play critical roles in managing the risk environment, and thereby create, protect and enhance shareholder value.’

Source : Straits Times - 01 July 2008

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1,600 premium flats in Singapore Punggol, Sengkang for sale

1,600 premium flats in Singapore Punggol, Sengkang for sale
 
Latest projects bring total build-to-order homes to 4,500 - in bid to meet demand

By Jessica Cheam 
 
THE Housing Board launched 1,587 premium homes in Punggol and Sengkang for sale yesterday, the latest in a series of launches intended to meet high demand.

Its new projects - Fernvale Residence in Sengkang and Punggol Breeze - come just a month after 1,500

build-to-order (BTO) homes were released in the two up-and-coming locations.

Yesterday’s sale brings the total number of new homes launched under the BTO programme to 4,524 for the first half of the year.

And more homes are underway with the HDB launching the sale of a plum site on Lorong 1A Toa Payoh by tender under its Design, Build and Sell Scheme last week. This was the sixth since the first site was awarded in January 2006.

The HDB’s aggressive sales programme follows concerns that its stock of flats had dipped to an all-time low just as increasing numbers of newly-weds were turning to new flats after being priced out of the resale market.

But the chief executive of property agency PropNex, Mr Mohamed Ismail, cautioned that demand for the latest projects might fall off somewhat with the release of so many new flats.

The HDB’s latest offering at Punggol Breeze comprises 778 four-room units priced from $223,000 and 186 five-room flats, which will go from $315,000.

At Fernvale Residence, 55 three-room units, 444 four-room flats and 124 five-room homes will be built, with prices ranging from $133,000 to $365,000.

Construction of the premium flats - they have better finishes which make them slightly more costly - will begin only after a certain demand is reached.

Punggol Breeze is bounded by Punggol Drive and Edgefield Plains, and is served by Oasis LRT station, two stops from Punggol MRT station, where the future town centre will be built.

Fernvale Residence is at the junction of Sengkang West and Fernvale Road, a stone’s throw from Fernvale LRT station and Fernvale Point.

The HDB website www.hdb.gov.sg yesterday showed 111 applications for both new projects. Applications close on July 14.

Models of the estates are on display at the HDB Hub Habitat Forum in Toa Payoh until the closing date.

Source : Straits Times - 01 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Wages rose but not for those at the bottom

Wages rose but not for those at the bottom 

3.8% growth last year after inflation widens income gap

By Clarissa Oon 
 
THE strong economy and tight labour market have boosted the pay of Singapore workers - but only barely, owing to higher inflation.
Wages rose last year by 5.9 per cent - a seven-year high - from 4.5 per cent in 2006.

However, after adjusting for inflation, the increase was 3.8 per cent, said the Manpower Ministry’s annual report on wages released yesterday.

But for the lowest-paid group of cleaners, labourers and related workers, the picture is bleak.

Their wages have remained stagnant for 10 years, unlike other groups such as managers, professionals, sales and service workers, as well as plant and machine operators.

Last year, managers - the best-paid group - earned 4.86 times more than cleaners and labourers. The gap has widened in 10 years. It was 4.13 times in 1997.

Following the service sector’s buoyant growth, sales and service workers are the best-paid among lower-skilled and blue-collar groups. Their pay is double that of cleaners and labourers.

The ministry’s Report On Wages In Singapore surveyed 216,270 full-time workers in 2,909 companies.

The findings show the top earners are specialised surgeons ($22,196), followed by managing directors ($15,200) and general surgeons ($13,781).

Occupations in the bottom 10 per cent include private security guards ($1,278) and hospital attendants ($1,260), while cleaners, food and drink stall assistants as well as labourers were paid around $750 to $800.

Apart from the widening wage gap, the other piece of bad news is the decline in the productivity of workers. It fell 0.9 per cent last year after experiencing slowing growth in the previous two years.

From the viewpoint of companies, this means ‘labour costs are growing faster than productivity’, said Mr Kwan Chee Wei, chief human resources officer of logistics and shipping company IMC Corp.

Labour analysts and economists blamed the slide on employers stepping up their hiring of cheaper foreign workers, instead of spending money on retraining staff.

‘It’s an easy way out to keep costs down. We see it especially in the lower-skilled segment of the workforce,’ said Mr Chua Hak Bin, strategist for Deutsche Bank’s private wealth management.

He said the stagnant wages of the poorest among the lower-skilled are ‘unlikely to go away anytime soon’.

The wage gap is even more acute among older workers.

Managers in their 40s appear to be making top dollar. Those aged between 40 and 44 made nearly twice that of managers aged 25 to 29.

However, growing older seems to work against lower-skilled and blue-collar workers owing to the physical nature of their jobs. Their wages rose only slightly and peaked early in their 30s.

To ease the pain for low-wage workers above age 35, the Government has been giving them payouts under the Workfare Income Supplement scheme.

Companies were also urged by the National Wages Council to give a one-off inflation bonus amid rising prices. Inflation is running at a 26-year high of 6.6 per cent.

However, analysts are not optimistic that the real earnings of low-wage workers can keep up.

‘At the lower end (of the job market), increments are just going to be slightly ahead of inflation,’ said Mr Kwan.

He added that ‘the upper end is where competition for talent will drive up salaries, especially in growth sectors like hospitality and leisure’.

Economists say the Government is now juggling the twin challenges of growing the economy while trying to improve the average Singaporean’s standard of living.

‘It is going to have to balance the need for foreign workers - to cope with increasing labour demand - and the resulting downward pressure on residents’ wages,’ said Mr Chua.
 

Source : Straits Times - 01 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com