Popular condo site draws 15 bids

Popular condo site draws 15 bids

Top bid for Serangoon land parcel higher than expected at $221m

By Joyce Teo

DEVELOPERS have again shown how hungry they are for land.

Hong Leong Holdings has topped the tender for a popular condominium land parcel at Serangoon Avenue 3, which attracted a whopping 15 bids at its close yesterday.

The top bid, made through Intrepid Investments, came in higher than expected at $221.2 million, or $529 per sq ft (psf) of gross floor area. It is about 13 per cent ahead of the second highest bid of $195.9 million, or $468.3 psf of gross floor area, from Far East Organization’s Tuas Hi-Tech Park.

The high offer price is 164 per cent above the trigger bid of $83.7 million, or about $200 psf of gross floor area. This is the minimum bid submitted by a developer to trigger a site for sale from the Government’s reserve list.

Analysts had mostly expected the 1.38ha plot next to Lorong Chuan MRT station to draw bids of between $350 psf and $450 psf.

Some had expected fewer bidders and more cautious bids after the Government announced on Sept 14 that it was introducing measures to calm the housing market, including upping land supply.

But, according to Ngee Ann Polytechnic real estate lecturer Nicholas Mak, the number of bidders and bullish top bids ‘indicate that the government measures have not dented developers’ appetite for attractive development sites’.

The Serangoon plot is near the Australian International School and can generate a maximum permissible gross floor area of 38,857 sq m.

Other developers in contention for the site included Keppel Land, Frasers Centrepoint, Sim Lian Land and MCL Land.

There were three tie-ups, including Sing Holdings and Kim Eng Holdings’ Strategic Acquisitions, according to the tender results released by the Urban Redevelopment Authority.

China’s Qingjian Realty and Singapore Press Holdings’ Times Properties also joined the bidding.

‘Developers are clearly keen to replenish their land bank as they believe the market is strong enough to absorb any new supply,’ said Colliers International executive director (investment sales) Ho Eng Joo.

Property experts say most developers are running low on their supply of mass-market land, even if they still have high-end land supply. And now that confidence has returned to the mass and mid-tier markets, they are eager to dip in.

Experts estimate the top bid will translate into a likely break-even price of $900 psf to $950 psf, and a possible selling price of between $1,000 psf and $1,100 psf.

Nearby, deals at the 999-year leasehold The Chuan and the freehold Goldenhill Park have been clinched at $830 psf to slightly more than $1,000 psf.

Units at the 99-year leasehold The Springbloom were selling at $600 psf to $700 psf, pointed out CBRE Research. It expects to see demand coming from HDB upgraders living in five-room and executive flats in nearby Hougang and Serangoon. These flats, it said, have been selling for $350,000 to $550,000 per unit.

In total, four sites have been triggered and put up for sale since July after a long lull, and all have attracted more than 10 bids each and a top bid exceeding expectations.

Source : Straits Times - 08 October 2009

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Annual reports going ‘green’

Annual reports going ‘green’

They help cut costs and reduce carbon footprint

By Smita Krishnaswamy

A HANDFUL of government statutory boards and companies are in the vanguard of moves to revamp their annual reports in order to reduce their carbon footprints and cut costs.

One government agency that has taken a novel approach to reduce costs is the Singapore Land Authority (SLA), which had its employees design its annual report in-house on a volunteer basis.

The result? The SLA managed to achieve more than 80 per cent savings, bringing down the cost of each report from $42 a copy to a mere $7.50.

Its savings amounted to almost $35,000.

Costs aside, increasing concern about the environmental impact of large-scale print runs and the subsequent distribution of reports is also prompting companies to look at unconventional platforms.

International Enterprise (IE) Singapore published its annual report entirely online last month in two versions: One a PDF version for easy printing, and the other an interactive format on its website.

As a result, the agency sliced 30 per cent off its production costs.

Ms Caroline Wong, deputy director of corporate communications at IE Singapore, said: ‘It is really about going green, which is very important to us. We don’t see any downside to the change - it is all positive.’

Citing environmental considerations, the Singapore Exchange is distributing its annual report via CD-ROMs this year.

It estimates that with about 30,000 shareholders on its mailing list, the initiative will save seven million sheets of paper, or 840 trees.

The company conducted a survey of shareholders last year and discovered that more than 80 per cent of respondents were in favour of receiving their report online or in CD-ROM format.

Singapore Airlines is also sending out its annual report to shareholders via CD-ROMs this year.

A spokesman said the change is in line with the airline’s commitment to environmental causes and to use technology to improve access to information, but the move has also helped the company keep costs down.

People are even exploring options such as thumb drives, said Ms Elena Ling, director of Raindance, a publication design company that derives 90 per cent of its business serving print-based clients.

But despite the growing number of organisations moving over to digital and online publication, the majority seem to prefer printed reports. Last year, only one Raindance client was looking at publication online.

Ms Ling doubts that her clients will go completely online any time soon, citing the convenience factor of hard-copy reports and their appeal to older readers. Instead, companies may prefer combining print reports with other media, she said.

For Mr Timothy Yew of Big Advertising, a digital marketing agency with 80 per cent of its business in designing online solutions, the steady trickle of organisations moving away from print is welcome.

Companies in technology-intensive fields risk being considered traditional unless they publish an electronic version of their annual reports, Mr Yew said.

Going online also allows companies to build brand equity and gain international audiences, he said.

But the savings from going online may not be as large as imagined, especially if organisations outsource the design work.

Big Advertising, for example, charges between $50,000 and $120,000 to design an interactive annual report.

Source : Straits Times - 08 October 2009

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HDB responds to couples’ claims

HDB responds to couples’ claims

Mr Ng and his wife Jacelyn rejected offers to select a flat as units were on the second floor. — ST PHOTO: ALPHONSUS CHERN

THE HDB has addressed some recent media reports and readers’ letters concerning first-time home buyers complaining that they could not get a flat despite repeated attempts.

CASE 1

The Sunday Times reported on Sept 20 that Mr Jayce Ng and Madam Jacelyn Yong had applied at least eight times, five for build-to-order (BTO) projects and half-yearly sales.

They claimed they were successful in only one application - for a five-room flat in Clementi two years ago and regretted not buying then.

HDB’s response:

The couple submitted 15 applications, out of which only four were for BTO projects, where couples have to wait typically three to four years.

Their other applications were for limited flats in mature estates. Records show they were offered a chance to select a flat seven times but did not do so.

The couple’s response:

Mr Ng said he does not remember being offered as many as seven times.

In some cases, he said he chose not to select a flat because the ones left over were on the second floor.

CASE 2

Home buyer Soh Say Kiat wrote to The Sunday Times Forum Page on Sept27 saying that he and his wife married in 2001, but had yet to hold their customary wedding.

They said ‘we have been unsuccessful in our numerous attempts - around 18 times since 2001 - to get an HDB flat’ which they put down to ‘rotten luck’.

HDB’s response:

Records from 2002 showed the couple made 12 applications.

Out of these, only two were for BTO projects, the rest were for popular flats in mature estates.

The HDB says the couple was offered a chance to select flats three times but they did not take it up.

It pointed out that Mr Soh was offered a BTO flat in Sengkang in 2003. If he had accepted, he would have got his flat in 2006.

The couple’s response:

Mr Soh said he could not remember all three offers, but recalled that he gave up one offer because the flats were on the second floor.

He admitted they were picky about location when they started applying for homes, but say they will try for BTO flats on offer now.

CASE 3

A home buyer sent an e-mail to the Prime Minister’s Office on Sept 21 saying: ‘I have been married since 2007, and to date, unable to secure a HDB flat after numerous balloting exercise at least 10 times over the years.

‘This has greatly affected first-timer applicants especially like myself where I could not live a normal life.’

HDB’s response:

The couple applied eight times, not 10, and only one application was for a BTO flat, where there is a much higher chance of success.

They had four chances to select a flat but did not do so, including an option to take up a BTO flat in 2005, which would have been completed last year.

Source : Straits Times - 08 October 2009

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Hard to get that first flat? Not so

Hard to get that first flat? Not so

Mah sets records straight on claims by couples

By Jessica Cheam

Mr Mah speaking with couple and first-time flat buyers Giam Jian Yew, 23, and his fiancee Lim Yu Fang, 22, at the sales counters of the HDB Hub in Toa Payoh yesterday. The minister said, citing Housing Board data, that many home buyers reject flats offered to them.

NATIONAL Development Minister Mah Bow Tan has refuted claims by some first-time buyers that they could not get an HDB flat despite repeated applications.

Mr Mah said yesterday that some of the assertions that have appeared in media reports recently were ‘not entirely truthful’.

Home seekers had claimed that they were unsuccessful despite making several applications, while one hopeful said he lodged 18 attempts but still did not secure a home.

But Mr Mah said: ‘What is actually happening, is not a matter of buyers getting a flat, it’s a matter of them getting it and not selecting it for one reason or another.’

HDB figures yesterday showed that eight in 10 first-timers could get a flat on their first try if they were not choosy; the success rate was 96 per cent for the second try.

This is under the build-to-order (BTO) scheme, the HDB’s main supply of new flats. Projects get built when a certain demand is reached and flats typically take three to four years to be built.

‘If you look at this, you’ll know that the supply of new flats under the BTO programme is more than adequate, that is an assurance that I want to give to younger couples setting up homes for the first time,’ said Mr Mah.

‘Don’t worry, there are flats available for you, in different parts of Singapore at prices that are affordable. But we need to impress upon flat buyers that you may not get the dream flat of your choice the first time, but you have to make the decisions, and consider the trade-offs.’

This could mean living in a more affordable home but further away from the city, he said.

One of the media reports that prompted Mr Mah to speak out featured Mr Soh Say Kiat, who said he and his wife had applied 18 times since 2001 but did not get a flat.

The HDB said yesterday that its records, which started from 2002, showed that the couple made 12 applications and were offered flats three times but did not take any.

In another instance, Mr Jayce Ng and his wife told The Sunday Times that they applied at least eight times but were offered only one unit, which they turned down.

The HDB said records showed the couple were offered a flat seven times but did not select any.

Mr Ng, 30, however, pointed out that buyers who reject flats could have been offered leftovers with undesirable attributes.

‘You can’t blame me for having high expectations and not wanting to live on the second floor when I’ll be living there for the next 10 years - and this is a lifelong investment,’ he told The Straits Times.

The prospect of living on the second floor also proved a deal breaker for Mr Soh, who gave up the chance to book flats when he found out what level they were on.

‘I don’t want to be forced to get a flat I don’t want,’ he said.

The HDB data yesterday showed that even when applicants have the entire block of flats to choose from, three in 10 buyers still reject units.

In February’s launch of Champions Court in Woodlands, the rejection rate on the first day of selection was 24 per cent. The rate was 36 per cent for Fernvale Crest in Sengkang launched in June.

The rejection rate for BTO projects by first-timers was as high as 67 per cent in 2007 - meaning almost seven in 10 applicants rejected any flats offered to them.

This figure has since come down to about 52 per cent after the HDB introduced new rules in May last year to penalise non-serious buyers by removing their first-timer priorities.

Mr Mah acknowledged yesterday that three to four years might be a long wait for some young couples but noted the best way to cut short the waiting time was to plan ahead.

Couples can book a flat under HDB’s Fiance/Fiancee Scheme, which lets them join the flat queue early - before they get married, he said.

Mr Mah was speaking to the media after chatting to buyers at the sales counters at the HDB Hub in Toa Payoh.

One home buyer the minister spoke to, Ms Lim Yu Fang, 22, signed up yesterday for a five-room flat at a Punggol BTO project which cost $331,000.

‘Although the wait is long, we still went ahead because it’s more affordable compared to resale flats,’ said Ms Lim.

Source : Straits Times - 08 October 2009

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10 units released, 6 sold

10 units released, 6 sold

Asking average price is about $3,300 psf or about $8.5m per unit

(SINGAPORE) SC Global Developments yesterday said it is releasing about 10 of the total 41 units at its Seven Palms Sentosa Cove condo at an average price of about $3,300 psf. In absolute quantum, prices start at about $8.5 million per unit.

Imagine: Tanjong Beach on one side, a golf course adjacent to it and the South China Sea on the other side
The upscale developer recently held private previews for the first phase and has sold six of the 10 units at an average lumpsum price of about $11 million per residence. Prices of the six units sold range from about $3,100 psf to $3,400 psf.

Standard apartments in Seven Palms range from about 2,700 sq ft to 6,800 sq ft and have three to five bedrooms. Penthouses range from about 4,000 to 8,000 sq ft. The residences are housed in three four-storey high blocks formed around a square coconut grove. ‘A huge open-ended portal connects the coconut grove to the beach for physical and visual access. Under this portal is a luxuriously-appointed beach club, complete with storage for water sports equipment, a glass-walled gymnasium, and plenty of deck areas for lounging, yoga, catered events, or just doing nothing,’ SC Global said in its news release.

It will be developing the project on a 99-year leasehold plot flanked by Tanjong Beach on one side, a golf course adjacent to this and the South China Sea on the other side.

‘To step out of your residence and walk directly onto the beach is truly unique in urban Singapore. I have spent much time on site over the past year appreciating this unique and rare location and working diligently to create something befitting of this special site,’ said SC Global chairman and CEO Simon Cheong.

The company also said the name Seven Palms derives from its estate management arm, Seven Palms Resort Management, which has been providing resident services to all the group’s completed developments since 2002.

Source : Business Times - 08 October 2009

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HDB figures put perceptions in perspective

HDB figures put perceptions in perspective

High number of BTO applications does not equate to urgent housing need

(SINGAPORE) Slightly more than half of first-timer applicants invited to book a flat under HDB’s Built-To-Order system between May 2008 and June 2009 did not book a flat, although this rejection rate is lower than before HDB refined its BTO application process in May last year.

Mr Mah: Visiting HDB sales counters yesterday, the minister reiterated that the supply of new flats under the BTO programme is more than adequate
That fine tuning saw HDB removing first-timer priority for those who had turned down two chances to select a flat.

Ninety per cent of flats in each BTO project are set aside for those who have first-timer priority.

HDB issued figures yesterday to debunk the perception that a high number of applications for BTO projects equates to urgent housing need, given the relatively still high rates of rejections by first-time applicants.

The average rejection rates furnished by HDB yesterday refer to BTO flats in non-mature estates, where the vast majority of such flats are located, and exclude studio apartments. HDB’s figures yesterday showed that between March 2007 and March 2008, before the application process was refined, 9,088 or 67 per cent of the 13,605 first-timer applicants invited to make their selection did not book a flat. Between May 2008 and June 2009, the rejection rate had fallen to 52 per cent or 6,747 of the 13,080 first-timer applicants invited.

The rejection rate for first-half 2009 has declined to 45 per cent.

Reasons cited by applicants who did not book a flat include that their preferred units had already been taken up, they are reconsidering other housing options and the completion dates for the BTO projects are too long.

HDB also sought to debunk the perception that BTO applicants often made numerous unsuccessful attempts, pointing out that there is an 80 per cent chance of success for first-timer applicants to be invited to select a BTO flat. And the success rate of first-timer applicants being invited for flat selection within two tries is 96 per cent.

The BTO system remains the major source of supply of new HDB flats. HDB starts building flats in a BTO project only after it achieves a certain level of demand. Feedback from some potential buyers is that the three to four years it takes for the new flats to be built under BTO is too long. HDB officials urged young couples setting up home to plan ahead for their new flat purchases and apply for BTO flats under the existing fiance-fiancee scheme before they even get married.

Meanwhile, there has been strong demand for the 2,132 flats, which are either completed or nearing completion, that were launched on Oct 1 under the new Sales of Balance Flats scheme. As at 5 pm yesterday, 13,741 applications had been received. Applications close on Oct 14.

HDB is also ramping up the supply of BTO flats to be launched for the whole of this year, from 8,000 units planned previously to 9,000 units. With close to 4,000 BTO units launched in the first nine months of 2009, another 5,000 units in eight projects will be launched for application in Q4 this year. This month, HDB will release a project each in Sengkang and Jurong West, followed by two projects in Punggol next month, and four in December - including two in Dawson and one each in Bukit Panjang and Sembawang.

National Development Minister Mah Bow Tan, who spoke to reporters yesterday after visiting HDB sales counters, reiterated that the supply of new flats under the BTO programme is more than adequate.

He urged potential buyers including newly married couples to look for workable solutions and to weigh the trade-offs if they can’t find a flat in a mature estate where their parents live.

He also said HDB takes into account additional demand for resale HDB flats from the influx of permanent residents when it builds new flats as these units will eventually filter into the resale market.

Source : Business Times - 08 October 2009

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More tax deductions, exemption for new firms, SMEs

More tax deductions, exemption for new firms, SMEs

START-UPS and small and medium enterprises (SMEs) can now enjoy more tax deductions and exemption when they make their submissions this year, says the Inland Revenue Authority of Singapore (IRAS).

At a media briefing yesterday, tax officials said deductions for capital spending on renovation and refurbishment works are now allowed, while new companies can enjoy tax exemption of up to $200,000 for the first three years of operations - a doubling from $100,000 previously.

‘Every year, about 20,000 new companies are incorporated. And we estimate that one in five such new companies qualify for the start-up tax-exemption scheme which was enhanced in 2008,’ said assistant commissioner Chiam Yah Fang.

To claim for start-up tax exemption, a company must be incorporated and resident in Singapore and have 20 or fewer individual shareholders holding the shares in their own name throughout the basis period for Year of Assessment 2009.

Otherwise, at least one shareholder must be an individual holding at least 10 per cent of the shares of the company.

To defray renovation and refurbishment costs, IRAS said companies can make claims for such costs incurred between Feb 16, 2008 and Feb 15, 2013, subject to $150,000 to be claimed in equal portions over three years.

As for companies in the red, they can now carry back their unutilised trade losses and capital allowances to the previous three years of assessment at a cap of $200,000, up from $100,000 previously.

To help companies with tax submissions, IRAS said it has planned 11 seminars on various tax obligations and schemes before the submission deadline on Nov 30.

Three of these seminars will be held this month, and IRAS has reached out to about 1,000 company representatives so far this year.

Source : Business Times - 08 October 2009

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Serangoon residential site draws 15 bids

Serangoon residential site draws 15 bids

Top bid of $221.2m comes from Intrepid Investments, a unit of Hong Leong

By EMILYN YAP

FIERCE competition for residential land shows no signs of abating as 15 developers submitted bids for a 99-year-leasehold site in Serangoon Avenue 3.

This is the highest number of bids put in for government residential land so far this year. The last three tenders had drawn 12 to 13 bids each.

The Urban Redevelopment Authority (URA) closed the tender for the Serangoon site yesterday, and the top bid of $221.2 million or $529 per square foot (psf) of gross floor area (GFA) came from Intrepid Investments Pte Ltd, a unit of Hong Leong Holdings.

Tuas Hi-Tech Park Pte Ltd, a Far East Organization unit, came in second with a bid of $195.9 million or $468 psf of GFA. The highest offer was some 13 per cent more than this.

The top bids for the site markedly surpassed property consultants’ predictions - they had expected the numbers to fall closer to $400-$450 psf of GFA.

Other developers which put up offers for the site include Keppel Land, Frasers Centrepoint, Times Properties and Sim Lian Land.

The lowest bid came from Lippo Estates, at $120 million or $287 psf of GFA. The spread between the top and bottom bids was around 84 per cent.

The results show that ‘market sentiments are still very positive’, says Colliers International research and advisory director Tay Huey Ying. They also reflect the attractiveness of the site, she adds.

The plot is next to Lorong Chuan MRT Station and is close to several schools including Australian International School. It is also near Serangoon Gardens and the CTE.

CB Richard Ellis Research executive director Li Hiaw Ho believes the site’s breakeven cost will be around $900-$950 psf. This works out to a selling price of some $1,000-$1,100 psf.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak expects the breakeven cost to reach $950-$990 psf, translating to a selling price of $1,100-$1,200 psf.

Near the site, a 99-year-leasehold condominium, The Springbloom, has seen transactions priced from $633-$706 psf, going by caveats lodged since August.

The Serangoon area is an established residential estate and tends to draw families which would need larger apartments. But some market watchers predict that Hong Leong may work more small units into its project to achieve the estimated selling prices.

Also, the site’s proximity to the MRT station may draw some single professionals or potential landlords who would not mind smaller units, they say.

This is the second government residential land tender to close since the authorities announced several measures to cool the property market last month. There was also aggressive bidding at the previous tender for a residential and commercial plot at the corner of Yio Chu Kang Road and Seletar Road. Twelve bids came in, and the top bid was 35 per cent more than the second.

The Real Estate Developers’ Association of Singapore said last week that it is in talks with URA to seek an increase in the supply of affordable sites outside ‘hotspots’.

Source : Business Times - 08 October 2009

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MINDY YONG

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Source : Business Times - 08 October 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com