Marina Bay Sands’ opening delayed to early 2010

Marina Bay Sands’ opening delayed to early 2010

By Valarie Tan

SINGAPORE: The Marina Bay Sands integrated resort has pushed back its opening by at least two months due to difficulties in the building of one of its attractions.

It was originally slated to open by the end of the year, but will now only be ready in the beginning of 2010.

Developer Las Vegas Sands said the delay is due to the complicated construction of the SkyPark at the top of Marina Bay Sands’ 55-storey hotel.

The SkyPark is a 340-metre rooftop strip that has three swimming pools and gardens for 3,900 people. Construction for the SkyPark’s foundation will start in August.

The developer is also facing shortages of labour and materials such as sand and steel.

It said half the facilities, including the casino, half the retail and dining outlets and the first 20 storeys of each of the three hotel towers will open in early 2010. The rest will be operational two to three months later.

Marina Bay Sands is Singapore’s first casino project to be awarded, in 2006. As well as gaming, the complex will include hotel, convention, luxury retail and performing arts facilities.

A second casino, Resorts World at Sentosa, is scheduled to open in phases also starting early 2010 and will feature the world’s biggest oceanarium with 700,000 fish and a Universal Studios theme park.

Singapore in 2005 gave the approval for casinos to be developed in a bid to draw more visitors to the city-state, whose main attractions are shopping, dining, night life and animal parks.

- CNA/AFP/yb/ir

Source : Channel NewsAsia - 09 July 2009

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Prices of HDB resale market stable for now

Prices of HDB resale market stable for now

By Asha Popatlal

SINGAPORE: National Development Minister Mah Bow Tan said the HDB resale market is stable despite prices rising 1.2 per cent between April and June.

Market watchers had expected HDB prices to continue to slide with recessionary pressures.

Although HDB resale prices have risen in the last quarter, Mr Mah said there is no real cause for concern for now as long as there are no wild fluctuations in price movements and flat prices remain affordable.

Mr Mah added: “The fact is the HDB market is a large market, and a plus or minus one per cent - I would call it stable, I wouldn’t call it a rising market.”

On concerns that prices may be going up because the HDB is not building enough new flats, he said that is not the case.

Mr Mah continued: “If there is increased demand, yes, we will push out new flats. But we cannot be building new flats to cater to every last person who wants a new flat because if you do that, you are overbuilding and you don’t want to do that. So some of the new demand will have to be met by resale flats.”

This year, some 8,000 new flats will be launched, which is slightly more than last year. But Mr Mah said this figure could go up, if the pick-up is stronger. - CNA/vm

Source : Channel NewsAsia - 09 July 2009

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Over 70% Vista Residences units sold within one week

Over 70% Vista Residences units sold within one week

By Tang See Kit

SINGAPORE: More than 70 per cent of the 182 apartments released for sale at Vista Residences have been sold within a week of its launch.

The 280-unit development in Balestier offers one-bedroom units and penthouses ranging from 617 square feet to 2,575 square feet.

Prices started at S$960 per square foot and the average selling price was S$1,070 per square foot.

The 130 apartments taken up were mostly bought by Singaporeans, with three in four buyers locals.

Developer Far East Organization said about half of the buyers were HDB upgraders.

Despite the encouraging sales, Far East said there are no immediate plans to release the remaining apartments on the 24th to 36th floors.

However, it will launch another property, Silversea, this weekend. Silversea is located at Amber Road, one of the last available plots in East Coast. It is a few minutes’ drive from New Downtown at Marina Bay and Changi Airport.

The 21-storey high development promises a good view of the central business district and the South China Sea.

The 383-unit development will offer two-bedroom units and four-bedroom penthouse units ranging from 968 square feet to 4,962 square feet, with prices starting from S$1,300 per square foot. - CNA/vm

Source : Channel NewsAsia - 09 July 2009

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Shophouses: best of both worlds

Shophouses: best of both worlds

They have traditionally been good investment properties as they are very lettable and are suitable for both business and residential use

By MARY SAI

IF YOU’RE looking for a property investment that could allow you to own a bit of Singapore’s history and offer attractive yields at the same time, you might consider buying a shophouse. These shophouses can be found lining the main streets of Singapore. They are typically two- to four-storey buildings with distinctive facades and form part of the city’s architectural heritage since many were built before the war.

Shophouses are built on land zoned for commercial or residential use, with commercial use reserved for the first storey. Most of them are found in conservation areas, namely:

The historic districts of Boat Quay, Chinatown, Kampong Glam and Little India;

The residential historic districts of Blair Plain, Cairnhill and Emerald Hill;

The secondary settlements of Balestier, Beach Road, Geylang, Jalan Besar, Joo Chiat, River Valley, Tanjong Katong and Tiong Bahru.

Shophouses hold their value well especially if they are located in the CBD or near MRT stations.

Outside these conservation areas, there are clusters of shophouses in Killiney Road, Serangoon Gardens, Holland Village, Pasir Panjang and Thomson Road.

Shophouses have traditionally been good investment properties as they are very lettable being generally able to provide both business and residential use. But if they fall within commercial zoning, they are strictly for retail use or offices.

Before the mushrooming of shopping complexes, most retail trades were found on the ground floors of shophouses with ancillary offices and dwellings on the upper floors. This explains the popularity of shophouses among family businesses and small operators as they can house all their trade operations and accommodation under one roof.

Due to limited supply and their unique design, shophouses hold their value well especially if they are located in the Central Business District or near MRT stations. Their values will also command a premium if there is a possibility of change of use to boutique hotels or boarding houses.

Sales activity

A total of 1,148 shophouses changed hands between 2006 and the first half of this year, representing about 40 per cent of all shophouses transacted since 1995. A record 526 shophouses were transacted in 2007, which points to prices becoming so attractive that owners who felt some pride of possession were tempted enough to sell.

In the first half of this year, several shophouses have been sold for decent profits. This is remarkable considering that property prices have suffered a major drop since end-2008.

Rental yield

Generally, yields of shophouses are fairly attractive, as some tenants are willing to pay rental premiums to enjoy their unique features. It is possible to achieve net rental yields of about 6 per cent or more for shophouses in choice locations which have been refurbished and fully restored.

Some shophouses within shopping belts such as Orchard Road can possibly fetch double-digit rents of $20 to $40 per sq ft (psf) a month, which are levels commanded by prime retail space. Elsewhere, such as Holland Village, where shophouses are used as bank branches, spas and food & beverage outlets, rents range from $12 to $20 psf.

Notes to buyers - what to look out for

Financing

As with most property transactions, getting funding is pivotal to the buying decision. Since July 2006, Central Provident Fund savings cannot be used to finance a shophouse purchase. As such, getting a bank loan is critical.

With most banks granting loans of 70-80 per cent of the purchase price or valuation (whichever is lower), prospective buyers must have cash upfront for the remaining 20-30 per cent.

And should the shophouse require addition and alteration, a budget of another few hundred thousand dollars must be set aside.

Zoning

Shophouses sited on land zoned residential are essentially terrace buildings with ‘tolerated’ commercial uses and the occupants have to pay Temporary Occupation Licence (TOL) fees to the relevant authority for the non- residential usage.

Some of these buildings are found in Blair Road and Onan Road. Buyers cannot assume that the building erected on residential zoned land can continue to run as a shophouse when there is a transfer of ownership.

Temporary Occupation Licence (TOL) fees

Some older shophouses have balconies or parts of the building encroaching on state land. In some cases, TOL fees are payable on a yearly basis for these encroachments and buyers have to be aware of the amount payable.

Road lines

Shophouses that face the main road are often affected by road lines. If the property is adversely affected - say, by a major road line - it will be more difficult to get bank financing as there is the risk of government acquisition for road widening.

However, if the shophouses are conserved or located within a conservation area, they are generally safe buys as these are ‘protected’ areas.

Building features

a) Shophouses with external side staircases are usually preferred by investors as they can lease the various floors to different tenants because of easy access to the upper floors via the external staircases. b) Shophouses with concrete upper floor slabs also appeal more to buyers because they have higher loading than those with timber floors.

High plot ratio

Some shophouses under commercial zoning have plot ratios of three or four which are not fully utilised. In such cases, the owners can build rear extensions up to the maximum height allowable for the area. This increases the usable floor area and value of the property.

Possible change of use

Change of use to commercial or retail use is permitted in the historic districts subject to the Urban Redevelopment Authority’s approval. However, note that the strictest form of conservation is practised in these districts.

Corner Units

Corner shophouses are sought after because they occupy more prominent sites in the row of buildings. In addition, they usually have more window openings at the sides and bigger end walls for advertisement signages.

Carparks

Most shophouses do not have carpark lots within their compound so having a public carpark nearby or access to parking in buildings in the vicinity is a major consideration.

With sentiment improving in both the stock and property markets in the past three months, shophouse activity is stirring again. As commercial space is facing a rental correction now, buyers of investment shophouses have to be aware of the challenging rental prospects in the short term. Notwithstanding that, their limited supply and potential for capital appreciation make shophouses gems in the long run.

The writer is executive director and auctioneer, Knight Frank

Source : Business Times - 09 July 2009

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New bridge to Sentosa open to traffic

New bridge to Sentosa open to traffic

CONSTRUCTION of the new bridge to Sentosa is complete - and the first traffic crossed it yesterday.

Until July 22, all traffic to and from the island will be diverted to the new bridge, which runs parallel to the existing bridge. The existing bridge will be closed for works.

The $80 million new bridge was commissioned by Resorts World at Sentosa (RWS) to handle the 13 million visitors it expects when it opens in early 2010.

Australian-based engineering and construction company McConnell Dowell started the bridge project in March 2008.

The new bridge will carry traffic from the mainland to Sentosa. The existing bridge will carry traffic the other way.

When enhancement of the Sentosa Gateway is completed, there will be a three-lane carriageway for traffic in each direction.

Mike Barclay, CEO of Sentosa Leisure Group, said: ‘Sentosa Gateway is poised to take on the increase in traffic when RWS opens and as more residents move into Sentosa Cove.’

RWS’s executive vice-president of projects, Michael Chin, said: ‘We built the new bridge as we are committed to providing our visitors a world-class destination. Their memorable experience must include hassle-free access to and from our resort and Sentosa.’

In 2008, the Land Transport Authority announced a package of road improvement measures aimed at enhancing travel for visitors to the Sentosa-HarbourFront area, including the construction of a new Gateway Tunnel to meet a long-term increase in traffic volume.

The tunnel is slated for completion in 2015.

Sentosa Leisure Group will boost transport on the island by increasing the Sentosa Express fleet.

Mount Faber Leisure Group will upgrade and expand its cable car system and rebrand the cable cars as a premium gateway to Sentosa.

Source : Business Times - 09 July 2009

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CDL unveils Tampines Concourse

CDL unveils Tampines Concourse

It is developer’s first CarbonNeutral® project in region

CITY Developments Ltd (CDL) yesterday unveiled 11 Tampines Concourse - the first CarbonNeutral® development in Singapore and the Asia-Pacific.

The three-storey office building - with a gross floor area of 124,001 square feet and lettable space of 108,000 sq ft - has an energy-efficient design and eco-friendly fittings that will yield energy savings of 620,000 kWh, or at least $120,000, a year.

The building has been awarded the CarbonNeutral® mark, which certifies that all carbon dioxide gas from construction and energy consumption has been measured and offset either through savings arising from more environmentally friendly processes, systems and behaviour, or by paying for an equivalent amount of carbon dioxide to be saved by an accredited project elsewhere.

Aside from natural lighting in the atrium and lift lobbies, the building has an indoor non-compressor cooling system that uses water instead of ozone-depleting chemical refrigerants to cool incoming air through a natural heat exchange process.

The building itself is constructed from recycled materials and ‘green concrete’ comprising sustainable materials.

No dollar figures were given, but all in all, the eco-friendly features added about 2 to 5 per cent more to building costs. These costs have been budgeted for.

CDL is looking for ‘green’ tenants. Rents for office space in the Tampines area is between $3.50 and $4 psf.

CDL managing director Kwek Leng Joo said: ‘Championing the environmental cause is no walk in the park. In earlier years, there were not many who believed in sustainable development.

‘But fast-forward to today, with greater awareness of climate change issues, ‘green’ and ’sustainability’ have become the buzz words.’

Esther An, head of corporate social responsibility at CDL, said: ‘We have just started marketing 11 Tampines Concourse and have been doing so quite selectively, looking for tenants who share our commitment to environmental conservation.

‘The response has been very positive. We have leased over 50 per cent to date.’

Source : Business Times - 09 July 2009

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Property market continues riding on buying mood

Property market continues riding on buying mood

By UMA SHANKARI

PROPERTY market activity continued in the first week of last month as more private homes were launched - or re-launched - to ride the buying momentum.

Good demand: Bukit Sembawang Estates has sold 50 of the 78 units at Luxus Hills, a 999-year leasehold landed development at Ang Mio Kio, in a preview
Bukit Sembawang Estates said yesterday that it has sold 50 of the 78 units at Luxus Hills, a 999-year leasehold landed development at Ang Mio Kio, in a preview. Intermediate terrace homes were sold for an average of $1,085 per sq ft of land area, while corner terraces went for an average of $980 psf.

BT understands that agents have also started to market prime projects, including GuocoLand’s 272-unit freehold Sophia Residence, City Developments’s 85-unit project on the former Garden Hotel site and Wing Tai’s 346-unit Ascentia Sky in Alexandra Road.

For Sophia Residences, asking prices range from $1,400-$1,600 psf. For CityDev’s project, agents are quoting $1,800-$2,000 psf. At Ascentia Sky, a limited number of units have been released at prices ranging from $1,150- $1,350 psf.

Other developers are re-launching projects. CapitaLand is believed to have re-launched Latitude in the River Valley area last week. Asking prices range from about $1,600-$1,900 psf, a significant decline from $2,600 psf fetched for the 11 units sold from September 2007 to April 2008. Far East Organization re-launched Silversea a few weeks ago, selling some units at $1,250-$1,400 psf.

Developers can be expected to expedite new launches and continue promoting already-launched projects over the next two weeks as the Hungry Ghost month - which is traditionally slow for property sales - draws near.

Sales at recently launched projects have continued apace. ‘We visited show flats for a few mid and prime projects last weekend,’ said DMG & Partners Securities analyst Brandon Lee in a July-6 note. ‘More developers are now offering additional price discounts of 2-5 per cent during soft launches to incentivise buyers.’

Prices rose 4.8 per cent quarter-on-quarter in Q2, Mr Lee said. ‘Along with a flat stock market performance, we believe this has led to a less fervent show-flat turnout. However, sales volumes remain healthy.’

In an update, Far East Organization said yesterday that it has sold 130 apartments at its 280-unit Vista Residences at Thomson.

Separately, Credo Real Estate yesterday released for sale by tender a cluster of 18 shophouses at Joo Chiat/Onan Road. The properties are owned by a family trust, which is seeking offers in the region of $25 million to $30 million. The freehold site is 35,440 sq ft and the total gross floor area of the shophouses is 62,489 sq ft.

Source : Business Times - 09 July 2009

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Rebound in resale flats shows stability, says Mah

Rebound in resale flats shows stability, says Mah
URA data shows Q2 resale price index rising 1.2%, against dip of 0.8% in Q1

By JOANNE TANG

THE slight rebound in HDB resale flat prices indicates a stable, not a rising, market, said Minister for National Development Mah Bow Tan yesterday.

‘New flats to cater to every last person… if you do that, then obviously, you are overbuilding.’
- Mr Mah
Flash estimates from the Urban Redevelopment Authority (URA) had shown that the HDB resale price index rose 1.2 per cent in the second quarter, against a 0.8 per cent dip in the first quarter - suggesting a recovery in the sector.

Speaking at the unveiling of City Development Limited’s Tampines Concourse, Mr Mah said: ‘Well, I don’t know whether you could use the word rising - it’s only one per cent. It was minus less than one per cent in the previous quarter, it’s now plus one per cent. I would say it is stable, I wouldn’t call it rising.’

Noting that the HDB market is a very large one, he feels that price fluctuations within a range of one per cent is stable.

Looking ahead, Mr Mah also revealed that ‘8,000 or more’ new HDB flats may be launched this year, depending on the demand. However, not all the demand for public housing will be met by new flats.

Cautioning against an oversupply, Mr Mah said: ‘We cannot be building new flats to cater to every last person who wants a new flat. Because, if you do that, then obviously, you are overbuilding. So some of the demand will have to be made with resale flats.’

Oversupply of new flats may depress resale flat prices, leaving existing homeowners worse off and new homeowners feeling like they have overpaid for their flats. Thus, the supply of new HDB flats should be carefully calibrated to ‘cater to some of the new demand (for flats) but not all’, with an emphasis on maintaining price stability.

As for keeping public housing affordable, the minister said that the monthly instalments for new and resale HDB flats, as well as household incomes, are closely monitored to ensure that public housing remains affordable for the masses.

Source : Business Times - 09 July 2009

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Growing faster than other advanced economies

Growing faster than other advanced economies

Economic strategies panel fleshes out issues, names heads of sub-committees

By ANNA TEO

(SINGAPORE) Two weeks after it was formed, the Economic Strategies Committee (ESC) has carved out its work in eight areas, with one broad goal to grow Singapore ‘faster than other advanced economies’.

The 25-member panel charting Singapore’s long-term future - which held its first meeting on Tuesday - fleshed out yesterday the key issues that it will be studying, and named the heads of the eight sub-committees that will lead the review.

With its big-picture aim to develop and recommend strategies to ‘grow Singapore’s future as a leading global city in the heart of Asia’, the ESC - headed by Finance Minister Tharman Shanmugaratnam - sees four key national objectives guiding its work:

Enable sustained economic growth, ‘faster than other advanced economies’

Develop depth of talent and superior capabilities

Seize growth opportunities

Optimise use of scarce resources

In so doing, Singapore would be able to ‘provide opportunities for all’, by creating ‘quality jobs and real wage growth for the broad majority’, and making ‘continued social investments for an inclusive, upwardly mobile society’.

The sub-committee tasked with looking into growth opportunities, for instance, will, according to its terms of reference, identify growth themes ‘relevant to Singapore’s strengths’ and propose strategies to harness capabilities to seize the growth opportunities as well as how to tap global and regional markets for synergies.

Heng Swee Keat, managing director of the Monetary Authority of Singapore, and Siemens’ Asean CEO Lothar Herrmann will drive the review on growth opportunities.

But apart from the usual focus on the drivers of economic growth and encouraging enterprise, the economic blueprint this time will also look into ensuring energy reliance and maximising value from Singapore’s limited land bank.

The team spearheading efforts on securing Singapore’s energy resilience and sustainable growth will come up with ideas on developing a vibrant, competitive and innovative energy sector, and on preparing Singapore for a ‘carbon-constrained’ world.

For the sub-committee on land use, the need to optimise and prioritise usage of the scarce resource is more than apparent. They will also look into how to expand the supply of land and space in Singapore.

Details of the eight sub-committees’ terms of reference are up on the ESC website (www.esc.gov.sg).

An ESC statement yesterday said that the sub-committees will rope in people from both the private and public sectors. The new names among the sub-com co-leaders, who aren’t also on the 25-member main panel, are Jen Kwong Hwa, managing director of Micron Semiconductors Asia; and, from the public sector, Economic Development Board chairman Leo Yip; and A*Star chairman Lim Chuan Poh.

The ESC said that it will consult widely and solicit views from various organisations and individuals, and encouraged the public to give suggestions and feedback.

It has set a January 2010 target for announcing its key proposals, and aims to release its full report by the middle of next year.

Source : Business Times - 09 July 2009

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