Early birds flock to Parc Lumiere

Early birds flock to Parc Lumiere

Developer says it may open bookings today if queue grows longer

By Joanna Seow

Even though bookings for Parc Lumiere in Simei (next picture) will open only next Tuesday, about 200 people had already lined up by 5pm yesterday to buy a flat on the spot. This is the first time buyers can purchase DBSS apartments on a first-come first-served basis.

HUNDREDS of potential buyers queued overnight at the Parc Lumiere site in Simei hoping to secure one of the new condo-like apartments that are not due to go on sale until next Tuesday.
An estimated 200 people had joined the line by 5pm, hoping to land a unit in the latest project developed under the Design, Build and Sell Scheme (DBSS).

Buyers do not have to chance a ballot like in usual DBSS developments but can book a unit on the spot. The average selling price at the Parc Lumiere is $425 per sq ft.

Two tents sheltering rows of chairs have been set up outside the project’s show flat - one for those interested in ‘booking’ a flat and one for those who want a viewing.

The booking tent was teeming with interested buyers yesterday.

Developer Sim Lian Group, which brought in extra cooling units and gave those queuing free lunches, planned to start bookings on Tuesday but may end up opening bookings today if the queue lengthens.

‘I’m overwhelmed,’ said Sim Lian executive director Diana Kuik. ‘We didn’t expect them to come on Friday before seeing the show flat.’

The walk-in-selection process - a first for new flats in recent years - involves a basic pre-screening process while certain conditions must be met before buyers can book a unit.

They must then pay a deposit of 5 per cent of the purchase price. The final confirmation of a buyer’s eligibility will be determined by the HDB.

Flats will be booked on a first-come first-served basis, which is why potential buyers like Ms Florence Lim turned up at 8am yesterday.

The assistant sales manager, who is in her 40s, took leave to queue and was intending to stay overnight, taking turns with her husband and son. She was first in line and hopes to get a five-room flat.

‘I’ve aimed here for a long time, ever since I applied for The Premiere (at Tampines) but was unsuccessful,’ she said.

Ms Queena Tan, 30, who works in advertising, said she preferred a new DBSS unit to a resale HDB flat, adding: ‘I like this area as it’s rather peaceful and accessible.’

Ms Tan and her fiance will take turns to queue and they plan to stay in line until the booking period begins, even if it is not brought forward to today from next Tuesday.

‘With the upcoming university and the development of Changi Business Park, we expect increases in the prices of houses in this area. That’s why we feel it is a good investment,’ she added.

Some in the queue jumped at the chance to buy a flat that did not require too much extra work.

‘We want the balcony and the fittings, and it’s in move-in condition so we don’t need to fork out extra to renovate,’ said bank executive Cheong C. H., 30.

Ms Kuik of Sim Lian believes the small number of units available - 240 five-roomers and 120 four-room units - ‘maybe makes some buyers anxious’.

‘There could also be some pent-up demand as there have been no new HDB flats in Simei and Tampines for the past 12 years, with the exception of The Premiere @ Tampines,’ she said.

Knight Frank director of research and consultancy Nicholas Mak said the strong response ‘is another indication that the buying interest in the mass market is still quite buoyant’.

He added that the purchasing power of some first-time buyers may limit the take-up rate of the four- and five-room flats.

‘It’s going to be interesting, seeing as there are no three-room flats. Four-room flats will probably sell quite well but five-room flats may need some demand from HDB upgraders.’

The four-roomers at 1,012 sq ft each are priced at between $378,000 and $425,000. Five-room flats range from 1,152 to 1,195 sq ft and are priced at between $462,000 and $575,000 each.

March sales of private homes revealed that HDB upgraders were the most active group of buyers. It may be that this group is also interested in DBSS projects, which offer condo-like fittings at what is perceived to be a slightly lower price.

Source : Straits Times - 18 April 2009

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Condo units turned hotels

Condo units turned hotels

Rental of such rooms may have adverse effect on other residents: URA

By Jessica Lim & Yeo Sam Jo

‘Condotel’ rooms, such as this one at Soho 188 condominium, are being rented out at between $40 and $150 per day each. They are said to be popular with students, people here for medical treatment and business travellers. — ST PHOTO: ALBERT SIM

SOME entrepreneurial owners of condominium units are renting out and marketing their properties as hotel rooms, going against regulations set by the Urban Redevelopment Authority.
The Straits Times knows of at least four condominium developments with units being rented out on a daily basis.

Marketed as ‘condotels’, ‘holiday apartments’ or ‘hotel-style apartment room accommodation’, the rooms are advertised freely on hostel directories online and personal websites.

One website, claiming ‘award-winning service’, even indicated check-in and check-out times, a $70 key deposit and free wireless Internet.

Advertised as the Soho 188 Condotel, it is actually known as the Soho 188 condominium development in Race Course Road, near Little India.

Other accommodation can be found at Parkview Condotel, officially known as Parkview apartments in Bukit Batok; Braddell Road’s Braddell Regalia and Serangoon’s Avon Park.

These rooms are being rented out at between $40 and $150 a day and are popular with students, people here for medical treatment and vegetarian business travellers from Bangladesh who want a kitchen to cook their own food.

These lodgers typically rent for a few days, although it can go up to a month.

‘For properties approved for residential use, they are intended for long-term residential stay,’ said a URA spokesman, adding that the use of such properties for transient accommodation is similar to how hotels operate. ‘The leasing of such properties on a daily, weekly or monthly basis is not permitted.’

He added that the URA needs to assess the appropriateness of such accommodation and if it has an adverse impact on neighbouring residents.

Condominium managers agree that this arrangement may spell trouble. ‘The concept of a condominium is for home living, not short-term living,’ said Avon Park’s manager Haroon Aisree, who will be discussing the matter with the property’s management.

His worry: Tenants may be irresponsible and not take care of facilities because they have no ownership.

‘We definitely have to take a stand and protect the interest of residents,’ he said, adding that he did not know such a business was going on.

Owners of these units, like Mr Roger Pay, said they did not know they were doing anything wrong.

The owner of four units at Avon Park started renting out his 20 rooms half a year ago when he ‘received calls from people saying they wanted daily or weekly stay’.

The 41-year-old, who told The Straits Times that all but two rooms are currently occupied, charges about $50 to $90 per room each day and has seen ‘increased popularity over time’.

It is the same story for a 75-year-old owner who did not want to be named.

He has been renting out units to lodgers who fork out $70 daily. ‘I didn’t know that it was wrong,’ he said. ‘If the authorities give me a letter to tell me to stop doing this in black and white, then I will stop.’

Mr Surendra Kumar Sinha, who is in Singapore for colon cancer treatment, rents a room at a condo unit at Soho 188.

He and his wife, both from Bangladesh, pay $130 a night. Depending on how intensive treatment is, his stay could last from two weeks to a month.

‘It’s rather expensive for us, but it is still cheaper than hotels and other studio apartments,’ said the 59-year-old, who arrived in Singapore earlier this month.

For Miss Crystal Deleon, who is on a 13-day trip to visit her Singaporean boyfriend, her condotel room brings many benefits.

‘It’s cheaper than a hotel and near my boyfriend’s house, so he can send me back after work,’ said the Philippine national, who pays about $70 daily for a room at Braddell Regalia.

The URA is currently investigating the matter.

Source : Straits Times - 18 April 2009

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Casino body aims to strike right balance

Casino body aims to strike right balance

One arm to keep bad hats out; another to curb harmful social impact

By Lim Wei Chean & Teh Joo Lin

THE job of keeping watch over Singapore’s two casinos will require a delicate balancing act.
On the one hand, there is a need to ensure the gaming tables at Marina Bay Sands and Resorts World at Sentosa, set to open at the end of the year and early 2010 respectively, draw the crowds, so business booms and Singapore benefits from a steady stream of tax income.

Doing this will mean keeping out crime syndicates, including prostitution and money-laundering rings.

On the other, there is the task of protecting the gambler and society from the social impact of allowing large-scale gambling here.

Giving its first glimpse of how this will be done yesterday, the Casino Regulatory Authority (CRA) revealed that it will follow a hybrid approach: The statutory board will have two arms - one dedicated mainly to the task of keeping bad hats out, the other to prevent Singaporeans from gambling beyond their means.

It came up with this model after studying how countries like Australia and the United States manage their casinos.

Elaborating on the task before CRA at its first Workplan Seminar yesterday, Home Affairs Minister Wong Kan Seng said in his speech: ‘While we seek to reap the job and tourism benefits of the integrated resorts, we must guard against any fallout in crime and social problems.

‘The challenge before us is to balance the competing imperatives.’

Mr Wong added that the challenge is made tougher by the fact that Singapore’s relative inexperience in operating casinos means it could prove a tempting target for criminals.

The experience of other cities with casinos reflects the difficulty of the task at hand.

Las Vegas, for instance, had hardly any regulation in its early days. It became a haven for organised crime, and a long, costly clean-up was needed before it gained a reputation as a tourist mecca.

Other cities adopted overly strict regulations from the word go. They were then forced to loosen up as gamers stayed away and business all but dried up.

The CRA was first established as part of the Home Affairs Ministry in June 2005, and became an independent statutory board in April last year. Its job is to enforce the Casino Control Act.

With the clock ticking down to the opening of the casinos, yesterday’s seminar was held to take stock of what it has done and what else it needs to do.

Also revealed at the event: The CRA will work with a plethora of partners to ensure everything runs as it should.

A police unit called the Casino Investigation Branch will be set up by the Criminal Investigation Department. It will have offices within the casino, and its task is to detect and probe casino-related crimes, include the forgery of chips and tinkering with gaming equipment.

Other agencies involved include the Ministry of Community Development, Youth and Sports, which will seek to blunt the casinos’ social impact through the National Council of Problem Gambling. Even the Inland Revenue Authority of Singapore is involved - its task is to see that the casinos pay their tax quantum of 5 per cent of gross gaming revenue monthly for premium players and 15 per cent of gross monthly revenue for all other players.

Meanwhile, training for officers of the CRA is in full swing.

Its chairman, former senior district judge Richard Magnus, said proper selection and training of staff are crucial.

He said 75 people have been hired so far, out of several thousand who applied. CRA is looking to hire 41 more.

Even after they are deployed, close attention will be paid to officers. They are banned from gaming in casinos run by the two IR operators, both here and abroad, for instance.

Source : Straits Times - 18 April 2009

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GuocoLand Q3 net profit soars as condo relaunch pays off

GuocoLand Q3 net profit soars as condo relaunch pays off

By UMA SHANKARI

GUOCOLAND, the Singapore-listed property unit of Malaysian tycoon Quek Leng Chan, saw a near doubling of its net earnings for the third quarter ended March 31 as it booked profits from sales of its residential project, The Quartz, which it launched in May 2006.

Net profit for the quarter rose 91 per cent to $4.9 million, from $2.6 million a year ago. Earnings came mainly from development profits from sales of The Quartz, GuocoLand said.

The group achieved gross profit of $34.6 million - against $11 million a year ago - but the Q3 results were marred by a net foreign exchange loss of $24.6 million. Earnings per share rose to 0.60 cent from 0.31 cent.

Revenue for Q3 rose 21 per cent to $126.1 million, from $104 million a year ago. Revenue was also boosted by The Quartz.

GuocoLand successfully relaunched the remaining 182 units in The Quartz in February 2009. The relaunch was well received and The Quartz was almost fully sold, it said in its report yesterday.

For the nine months ended March 31, 2009, GuocoLand saw net profit dive 95 per cent to $2.9 million from $63.2 million a year ago. This came on the back of a net loss of $2.8 million in Q1, which was followed by a Q2 net profit of just $861,000.

Nine-month earnings were also hit by a net foreign exchange loss of $46.7 million comprising primarily of unrealised translation loss on US$270 million bank loans as the US dollar appreciated against the Singapore dollar.

Revenue for the nine months also fell 26 per cent to $373.8 million, from $506.1 million for the corresponding nine months a year earlier. This was attributed to lower sales recognised from development properties in China.

Looking ahead, GuocoLand said that it will continue to review its business strategies in this challenging and volatile operating environment.

‘The group intends to defer development of certain unlaunched projects as construction prices are expected to ease further,’ it said. ‘The group will monitor property markets closely and time new launches when opportunities arise.’

GuocoLand shares gained one cent to close at $1.29 yesterday.

Source : Business Times - 18 April 2009

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URA to spread wings

URA to spread wings

It will take expertise overseas while bringing places alive at home

By KALPANA RASHIWALA

AFTER 35 years of planning and shaping Singapore’s physical landscape, Urban Redevelopment Authority (URA) is ready for a bigger canvas. It has set set up a URA Consulting Group (URACG) to provide its planning expertise for projects overseas. Meanwhile, at home, it will make new places in Singapore come alive. After Marina Bay, the Singapore River could be the next to feel its energising touch.

At the URA Corporate Plan Seminar yesterday, National Development Minister Mah Bow Tan spoke of how the master planner would step up its ‘place management’ role. This meant combining the resources of the public and private sectors to create places, districts and areas that are more vibrant economically and socially, he said. In addition to URA’s role as master planner and infrastructure provider, the stat board will also work with stakeholders on ’softer’ initiatives such as branding, marketing and events programming, he said.

Mr Mah noted that URA is already undertaking the place management of Marina Bay. It will expand its portfolio to include the Singapore River. In addition, it will chair a coordinating forum to ’synergise the place management efforts of partner agencies at Orchard Road and also the Civic District-Bras Basah/Bugis areas’, he added.

The formation of URACG would help URA playing a bigger role outside Singapore’s shores.

‘Our planning expertise is very much sought after outside of Singapore. In fact, it has played a leading role in the master planning of projects like the Tianjin Eco-City, which is now being built, which has drawn on Singapore’s experience in integrated planning and urban management,’ Mr Mah said.

Elaborating, a URA spokeswoman said URACG’s priority will be to support the Singapore government in government-to-government level projects overseas which require master planning expertise. In addition, URA can partner local private companies, where suitable, to carry out consultancy work for big projects. URACG’s scope of services will generally include concept and master planning, urban design and development control processes.

Another role of URACG is to provide professional development training on urban planning and related matters for both local and international participants under the Urban Leadership Programme. URA recently conducted a four-day training programme on integrated land use planning for participants from Brunei, Abu Dhabi, Qatar, China and Singapore.

Source : Business Times - 18 April 2009

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