APEC CEO Summit in Singapore to see record turnout of leaders

APEC CEO Summit in Singapore to see record turnout of leaders
By Satish Cheney,

SINGAPORE: The APEC CEO Summit in Singapore next week will see a record number of 1,500 participants, underscoring the strategic importance of this year’s meeting. Taking centre stage will be world leaders such as US President Barack Obama and Chinese President Hu Jintao.

Organisers of the APEC CEO Summit have launched an online discussion forum, featuring opinion-editorial pieces by prominent personalities and leaders to stimulate public discussion on the summit agenda.

The organisers will also be distilling the proceedings for APEC leaders ahead of their meetings, in a bid to ensure views from every sector are presented to the highest level of government and business.

Chong Siak Ching, chair of organising committee, APEC CEO Summit, said: “There is an urgency for the business community and the governments to come up with sustainable and new business models.

“In order to do that, we need to engage the wider community from across the Asia Pacific and get their voices and have their say in terms of what is needed to rebuild the global economy.”

Besides the online forum, organisers are also commissioning a survey, asking some 300 CEOs for their views on various economic issues. Details of this survey will be released next week.

Meanwhile, various broadcasters are busy preparing for the big event, getting the technical knots sorted out at Suntec Singapore.

Host broadcaster MediaCorp is building the International Broadcast Centre, which will encompass various television broadcasting aspects required by international TV stations.

Singapore’s Channel NewsAsia is also one of the official media partners of the APEC CEO Summit.

- CNA/so

Source : Channel NewsAsia - 05 November 2009

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Phase 1 of Marina Bay project 72% leased

Phase 1 of Marina Bay project 72% leased
By Gabriel Chen

PHASE 1 of the new Marina Bay Financial Centre (MBFC) mega office development is now 72 per cent leased, thanks to mining company BHP Billiton taking a further four floors.

The company has taken the additional floor space at Tower Two which, together with Tower One, comprises the first phase of the ambitious project intended as a seamless extension of the Central Business District.

BHP committed to 142,000 sq ft at Tower Two a year ago and is now slated to have a total leased floor area for 10 years from 2011 of 231,000 sq ft on levels 40 to 50 of Tower Two.

Phase 2 of MBFC will be complete when Tower Three has been opened. But already, about 64 per cent of total office space in Phases 1 and 2 has been leased.

The three office towers have almost three million sq ft of grade A office space. MBFC will also have two residential towers of 649 luxury apartments, and 176,000 sq ft of retail space.

Mr Wilson Kwong, chief executive of Raffles Quay Asset Management, which manages the centre, said BHP’s decision to take up additional space is testament to the MBFC’s vision of being Asia’s best business address.

BHP’s commitment is a healthy boost of confidence for the Asian office market, which some analysts have tipped to improve as rental decline slows further.

According to a new report by property consultancy firm CB Richard Ellis, the Asian office market downturn stabilised in the third quarter, as the improvement in Asian employment markets clearly indicated that the office market was close to bottoming out.

It also said that activity surrounding the planning of new premises in Singapore rose, as did occupier requests for relocation alternatives.

The firm noted that while Singaporean office rents fell for the fourth consecutive quarter, clear evidence has emerged that the pace of rental decline has eased following an improvement in business confidence.

The MBFC is being developed by a joint venture comprising property developers Cheung Kong Holdings, Hongkong Land and Keppel Land.

Source : Straits Times - 05 November 2009

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1,500 to attend Apec CEO Summit

1,500 to attend Apec CEO Summit

ABOUT 1,500 business and political leaders are set to attend a top business event next week at Suntec Singapore as part of the Asia-Pacific Economic Cooperation (Apec) meetings.

The two-day Apec CEO Summit - first started in 1996 - has never drawn so many participants before, according to the organising committee.

The star attractions will be world leaders such as United States President Barack Obama, Chinese President Hu Jintao and Russian President Dmitry Medvedev. They will be among 14 leaders of Apec’s 21 economies speaking at the CEO Summit on Nov 13 and 14.

The event’s guest list reads like a who’s who of the political world, with Chilean President Michelle Bachelet, Hong Kong chief executive Donald Tsang, Japanese Prime Minister Yukio Hatoyama, Australian Prime Minister Kevin Rudd and Indonesian President Susilo Bambang Yudhoyono also in attendance.

Singapore Prime Minister Lee Hsien Loong will deliver the opening keynote address.

Other big names taking centre stage at the summit are World Bank president Robert Zoellick, US Secretary of Commerce Gary Locke, Oracle executive vice-president Derek Williams and HSBC chairman Stephen Green.

For the first time, the public will have an opportunity to weigh in on the summit’s key issues via online forum asiapacvoices.com.

Source : Straits Times - 05 November 2009

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China buyers prefer properties under $1m

China buyers prefer properties under $1m

HOME buyers from China prefer properties under $1 million and tend to favour apartments near MRT stations as they generally do not own cars here.

Many are permanent residents and work here, possibly in areas such as Jurong, Bedok and Kallang.

That is the typical profile of a buyer from China, say agents The Straits Times spoke to.

A total of 707 buyers from China, of whom 432 were PRs, bought homes in the first nine months of the year.

As with buyers from Malaysia and India, PRs from China far outnumber those who are non-PRs, data from Savills Singapore showed.

‘Lately, for mass market products, we are seeing more Chinese buyers than Indian buyers,’ said PropNex chief executive Mohamed Ismail Gafoor.

Agents said a large group of China buyers are Singapore PRs who already have families or are about to settle down here and are buying properties for their own use.

A small group of investors are young couples in their 30s to 40s who run their own businesses back home, said mortgage consultant Ally Yang of her clients.

There is also a group of ‘flamboyant high net worth types who has at least several millions to burn’ looking to buy, possibly for investment, said a property agent who deals mainly with new projects.

A Frasers Centrepoint spokesman said a lot more China buyers had snapped up units at its Caspian project next to Lakeside MRT station, launched in February, than earlier projects.

Those China buyers were residing or working in the area, she said.

Savills said that most of the buying activity from China nationals this year was concentrated in Jurong West and Bedok, followed by Kallang.

‘Those who want to invest like Singapore because the rental returns are better and they can look forward to capital appreciation. They would have a friend or relative here,’ said Ms Yang, a PR from China. ‘They are happy with leasehold properties here because in China, the maximum lease is only 70 years.’

JOYCE TEO

Source : Straits Times - 05 November 2009

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Ho Bee, MCL launching Parvis condo at $1,480 psf average

Ho Bee, MCL launching Parvis condo at $1,480 psf average

By KALPANA RASHIWALA

(SINGAPORE) As other developers mull over whether to release new projects this quarter or hold back until 2010, Ho Bee and MCL Land have moved to launch their Parvis condo at Holland Hill this week.

Parvis: 85 of the 248 units in the freehold project are being released, with absolute prices ranging from $1.62m for a 990 sq ft unit to $3.02m for a 1,991 sq ft unit
The average price is about $1,480 per sq ft for the initial batch of 85 units. The 12-storey freehold project has 248 units.

The pricing is considered fair for the location, said a property consultant who is not marketing Parvis, adding that it could easily be $1,500-1,600 psf on average.

The Lush on Holland Hill nearby is selling for about $1,500 psf on average. In the secondary market, units at Waterfall Gardens in Farrer Road are changing hands for about $1,450-1,500 psf.

The 85 units MCL Land and Ho Bee are releasing at Parvis will be priced between $1,400 psf and $1,600 psf. In absolute terms, prices range from $1.62 million for a two-bedroom unit of 990 sq ft to $3.02 million for a four-bedder of 1,991 sq ft.

The project comprises three blocks being built on the former Holland Hill Mansions site, which Ho Bee and MCL bought in late 2006 for $292 million or $750 psf per plot ratio.

Market watchers estimate the developers’ breakeven cost could be about $1,200 psf. Assuming a $1,480 psf average selling price for the entire development, their total pre-tax profit for the project could be about $120 million, some analysts reckon.

This is the second time MCL Land and Ho Bee have teamed up. Their first partnership was the 716-unit Rio Vista condo at Hougang. The project was launched in 2001 and completed three years later.

MCL is developing solo a 608-unit condo on a 99-year leasehold plot near Yishun MRT Station, fronting Lower Seletar Reservoir and close to Singapore Orchid Country Club/Golf Course.

It paid $350 psf ppr for the site in a state tender in March last year. The project, named The Estuary, will be launch-ready by year-end but is more likely to be released only in the first quarter of next year, said MCL’s CEO Koh Teck Chuan.

Source : Business Times - 05 November 2009

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Property investment in Asia grows in Q3

Property investment in Asia grows in Q3

Office market’s fall stabilises due to improvement in employment

By UMA SHANKARI

(SINGAPORE) The Asian real estate investment market continued to gain momentum in the recent third quarter, as capital values generally stabilised and sentiment improved.

Direct real estate investment in Asia jumped 25 per cent quarter-on-quarter to an estimated US$9.1 billion, according to a report by CB Richard Ellis (CBRE).

The property firm also said in a separate note that the Asian office market down-cycle stabilised in Q3 as a general improvement in the region’s employment markets provided clear indication that the office market was close to bottom.

‘Investors in Asia have become more optimistic over the past few months,’ said Andrew Ness, executive director of CBRE Research for Asia. ‘Cash-rich domestic buyers continue to underpin investment activity, while foreign investors are slowly emerging from a quiet first half-year to look for medium to long-term investments.’

However, several Asian governments - including those in Hong Kong, Singapore, China and South Korea - have voiced concern that real estate is rebounding too strongly and have taken steps to limit risks associated with potential over-investment, Mr Ness said.

‘The measures are likely to cool down the market but are expected to have only a limited effect on pricing,’ he said.

In Q3, Hong Kong accounted for 36 per cent of total investment sales, followed by China, Korea and Taiwan. In Singapore, the number of transactions above $15 million continued to edge up quarter-on-quarter, with volume exceeding US$900 million, or 10 per cent of the total volume in Asia.

However, overall transaction volume remained low in the first nine months of this year, falling 49 per cent year-on-year.

By sub-sectors, the Asian office market attracted US$4.7 billion of investment in Q3, or 52 per cent of the total flow of capital. Residential properties accounted for 16 per cent and the retail sector 13 per cent.

In a separate report, CBRE said that Asian office markets continued to improve in Q3 as rental falls slowed further.

The overall vacancy for Asian cities remained at 12.5 per cent - unchanged from the previous quarter. But Tokyo, Hong Kong, Beijing, Seoul and several South-east Asian cities all recorded a minor decline in the amount of space vacancy.

‘Corporations outside of the export trade sector commenced expanding headcount and financial institutions began hiring staff to pursue high-margin businesses as economic conditions improved,’ said CBRE. ‘Historically, office vacancy has trailed closely behind the unemployment rate.’

On the back of this, the CBRE Asia Office Rental Index shows office rents in Asia fell 3.1 per cent in Q3, decelerating from a 6.7 per cent decline in Q2. CBRE expects the rate of decline to ease further or bottom out in the coming months.

In Singapore, office rents fell for a fourth consecutive quarter in Q3 but the pace of decline eased.

Leasing activity is also beginning to pick up slightly, industry players have said. Marina Bay Financial Centre (MBFC) said in an update yesterday that BHP Billiton will take up an additional 89,000 sq ft of space at Tower Two, bringing the total floor area leased at the development by the Australian resource company to 231,000 sq ft.

Overall pre-leasing levels at MBFC now stand at 64 per cent.

Source : Business Times - 05 November 2009

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Capella Niseko to launch sale here

Capella Niseko to launch sale here

By NISHA RAMCHANDANI

(SINGAPORE) The luxury 149-unit Capella Niseko Resort and Residences in Hokkaido will be launched for sale here on Friday.

Valley deep, mountain high: The freehold residences are set on 32 acres of greenery close to popular Hokkaido ski destination Annupuri-Niseko Mountain, and are expected to be completed in 2012
Set on 32 acres of greenery and close to popular ski destination Annupuri-Niseko Mountain, the freehold residences - which comprises 94 apartments, 36 houses and 19 villas - are expected to be completed in 2012. Construction is to start around April next year.

Capella Hotels and Resorts has come on board as the operator and renowned Japanese architect Tadao Ando will design the project.

The 67-room Capella Niseko resort will be a full-service hotel, including a Village Centre that offers fine dining, bars and a spa.

Property developer Annupuri Land said that about 20 residential units have been taken up so far - with the majority of buyers from Hong Kong - and it hopes that the rebounding economy will spur sales.

‘The timing is right. The Asian economies are taking off again,’ said Annupuri Land co-founder Harry Pang.

The entire project will cost some US$220 million, while the residences are in the range of US$1 million to US$5 million.

Mr Pang also reckoned that buyers can net an estimated 4-5 per cent yield annually from renting out their residences when they are not in use. ‘There’s a lot of potential for upside,’ he said.

Besides skiing, the Niseko region also offers other recreation such as golf, horseback riding, whitewater rafting and hiking. It is accessible by rail and road as well as by direct international flights. For instance, Singapore Airlines runs a direct flight to Sapporo, which is 120 km away.

‘It is a rare opportunity for potential buyers looking at investing overseas. Buyers will not only be able to appreciate the work of master architect Tadao Ando and enjoy the luxury provided by the Capella Group but also take in the fineness of the Annupuri-Niseko Mountain and its surroundings,’ said Jones Lang LaSalle (JLL) head of residential, Jacqueline Wong.

JLL is the sole marketing agent for the residences, and Peter Silling & Associates is in charge of the interior design for the project.

Source : Business Times - 05 November 2009

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CapitaLand sells two Kallang properties

CapitaLand sells two Kallang properties

Group now left with another two S’pore industrial assets in its portfolio

By KALPANA RASHIWALA

CAPITALAND has agreed to sell two of its industrial properties in Kallang for a total of $68 million to construction and industrial property development group Chiu Teng.

Likely gain: CapitaLand expects to book a gain of about $19.2 million on the completion of sale of Kallang Avenue Industrial Centre (above) and Kallang Bahru Complex (next)
The move, which is part of a strategy to divest non-core assets, leaves CapitaLand with just two industrial properties - Corporation Place in Jurong, in which it has a 75 per cent stake, and Technopark@Chai Chee, which it fully owns.

BT reported in November last year that the property giant was believed to be looking to sell its four industrial properties in Singapore either individually or as a portfolio.

Technopark had a book value of $210 million at end-2008. Corporation Place was understood to be worth about $80 million at end-June 2009.

A CapitaLand spokeswoman said: ‘We will continue to look into the possibility of divesting Corporation Place and Technopark at the appropriate time, for the right price and when target returns are met. However, as of now, we have no definitive plans for their sale.’

CapitaLand said in a news release yesterday that it expects to book a gain of about $19.2 million on the completion of sale of the two leasehold Kallang properties, which is expected to be next month.

Had the sale been effected on Jan 1, 2009, CapitaLand’s earnings per share for the nine months ended Sept 30 would have increased almost 10 per cent, from 4.1 to 4.5 cents.

CapitaLand said yesterday the book value at Sept 30, 2009, of Kallang Bahru Complex (KBC) was $28.9 million and that of Kallang Avenue Industrial Centre (KAIC) was $19.4 million.

Colliers International brokered the sale of the two properties through an expression-of-interest and tender process that ended last month. Chiu Teng was the highest bidder.

Bidders had to make offers for the two assets together, said Colliers managing director Dennis Yeo.

‘The properties have redevelopment potential,’ he said. ‘Under Master Plan 2008, the sites are zoned for Business 1 use with a plot ratio of 2.5 plus a bonus plot ratio of 0.5 for white uses such as offices, shops and showrooms.’

KAIC, which is on a site with a remaining lease of about 65 years, comprises four blocks of two-storey light industrial factory space occupied by SMEs such as carpentry, printing and engineering workshops.

KBC is a nine-storey flatted warehouse with total net lettable area of about 170,000 square feet. It is on a 109,000-sq-ft site with a remaining lease of about 68 years. The current occupancy rates for KBC and KAIC are 97 per cent and 82 per cent respectively.

CapitaLand Commercial CEO Ee Chee Hong said: ‘This sale is in line with our active portfolio management strategy which includes divesting non-core assets. The current positive market sentiment provided us a window of opportunity to unlock the value of KAIC and KBC through divestment.

‘Proceeds from the sale will be redeployed to new investments that will enhance our presence in our core office business, and for expansion in high-growth overseas markets.’

Source : Business Times - 05 November 2009

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Oct developer sales probably just 700-800

Oct developer sales probably just 700-800

Estimate is down significantly from September’s 1,143

By KALPANA RASHIWALA

(SINGAPORE) A BT poll this week of major developers as well as agents that marketed projects actively in October showed that about 660 private homes were sold in the primary market in October.

Developers reckon that, including other developments on the market, the total tally for primary market sales last month could come in at about 700-800 units - down significantly from the 1,143 private homes sold in September.

Developers’ monthly home sales peaked at 2,772 units in July this year, according to official data from Urban Redevelopment Authority. Its figures on developer sales for October will be released on Monday.

Market watchers noted that October was generally a quieter month, with developers launching fewer units as well as recording slower sales.

‘Things have become more cautious, after the constant messaging from the authorities advising home buyers that there’s no need to rush, that they should take their time and that there’ll be enough supply,’ said a property consultant who declined to be named.

Most developers would have sold fewer homes last month compared with September, unless they had released new projects during the month.

Far East Organization may possibly have sold the most homes last month. It told BT that it sold 173 private homes, more than double the September result of 78 units.

The 173 figure is made up of 162 units in uncompleted projects (including 13 in joint venture projects) and 11 units in completed developments. Far East’s top seller last month was Cyan, which is located along Keng Chin Road in the Bukit Timah area, with 76 units sold.

Cyan, which was released last month, is priced at $1,850 per square foot on average. Far East’s other better selling projects in October included Silversea along Marine Parade Road, and Mi Casa in Choa Chu Kang.

A joint venture involving Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group is said to have sold 50-plus units at Lincoln Suites at Khiang Guan Avenue in October. More than 65 units were sold at Suites@Guillemard last month.

Ho Bee Investment executive director Ong Chong Hua, who reckons that developers sold about 700-800 homes in October, said that sales volumes would ease in the fourth quarter of this year.

However, prices are unlikely to drop, he added.

‘If you look at the competitive bids at state land tenders, there’s no reason for developers to price their projects cheap. We’re generally optimistic about the market going forward.’

Source : Business Times - 05 November 2009

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Record attendance at Apec CEO summit

Record attendance at Apec CEO summit

Online discussion forum launched to seek views of broader audience

By LEE U-WEN

(SINGAPORE) Their initial target was 800 participants, but the organisers of a conference next week featuring the world’s top political, business and academic leaders are now expecting an over-subscribed attendance of nearly twice that number - 1,500, to be exact.

Ms Chong: Various channels have been created for the wider community to say their piece
This will be a record turnout for the Asia-Pacific Economic Cooperation (Apec) CEO Summit since its inception some 13 years ago. This year’s edition - taking place on the 20th anniversary of Apec - will be held at the Suntec Convention Centre from November 12-14.

Already confirmed on the guest list are leaders from the 21 Apec member economies, including United States President Barack Obama, who will be making his first official visit to Singapore since taking office earlier this year; Chinese President Hu Jintao; new Japanese Prime Minister Yukio Hatoyama and Russian President Dmitry Medvedev.

Also taking part at the annual by-invitation-only event are World Bank president Robert Zoellick, United States Commerce Secretary Gary Locke, Copenhagen Climate Council chairman Tim Flannery and several ministers from the Singapore Cabinet.

According to the summit’s organising committee, this year’s agenda - ‘Rebuilding the global economy: crisis and opportunity’ - resonates strongly with all the speakers and participants.

‘There is an urgency to come up with sustainable new business models, right here and right now. To achieve this, the support of all stakeholders across the Asia-Pacific is vital,’ said the committee’s chair, Chong Siak Ching.

To further engage a broader audience to seek their views, an online discussion forum called AsiaPacVoices (www.asiapacvoices.com) has been launched to stimulate public discussion. The site features articles penned by well-known business and thought leaders. ‘We have created these various channels for the wider community to say their piece and have a bigger voice in effecting changes in their economies,’ said Ms Chong, who is also president and CEO of Ascendas. ‘Apec, together with the business community, has undeniably a critical role to play in leading the change and paving the way to sustaining recovery and re-balancing the economies of Asia-Pacific, post-crisis.’

HSBC Holdings group chairman Stephen Green, who will speak at a luncheon address on the opening day, said that the summit would provide a ‘timely occasion’ for world leaders to take stock and look ahead.

‘The region remains remarkably robust in what have been very difficult times and, as we approach year’s end, Asia-Pacific is the world’s fastest growing regional economy,’ he said.

Huang Cheng Eng, vice-president of marketing and the regions at Singapore Airlines, chimed in: ‘It has been an eventful year for the global economy, and an especially difficult one for the aviation industry. I’m hopeful that the outcomes of the summit will serve as the impetus for businesses to discover fresh opportunities amid the downturn, providing a much-needed injection of confidence for people to start travelling again more frequently.’

All the conclusions at the CEO summit will be presented to the Apec leaders for their deliberations during their retreat at the Istana, said Ms Chong.

Source : Business Times - 05 November 2009

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