Supply of private home sites in Singapore to go up

Supply of private home sites in Singapore to go up

By Hoe Yeen Nie

SINGAPORE: The Singapore government is boosting the supply of private residential sites in the first half of next year.

It has announced new sites for sale, which could yield over 10,500 homes – the highest number of units since the Government Land Sales (GLS) Programme started in the second half of 2001.

The Urban Redevelopment Authority (URA) said on Friday that in deciding supply, it looks at market conditions and medium-term demand.

Demand has been buoyant, with over 5,700 units sold in the third quarter of this year alone – more than the total number in 2008.

While demand has cooled off slightly, following high prices and moves by the government to curb a speculative bubble, observers believe the property market is on the mend.

For the whole of 2009, regular land sales through the confirmed list were suspended due to poor market conditions. But scheduled sales will resume next year, with a site in Buangkok being one of the largest on offer.

The land parcel, located along Buangkok Drive, can be turned into a 520-unit executive condominium.

In total, eight residential sites are on the confirmed list of the GLS Programme for the first half of next year.

Located at Buangkok, Yishun, Choa Chu Kang, Tampines, Boon Lay, Simei, Sembawang and Upper Serangoon, these sites could see nearly 3,000 new homes built, all aimed at the mass market.

Choy Chan Pong, senior group director, Land Sales & Administration, URA, said: “They are all in suburban areas, so there’s a limit to what prices can be. Some may be near MRT station, some may be further from MRT station, so we’re really giving a very broad spread of choice for development.”

Donald Han, managing director of Cushman & Wakefield, said: “A lot of these are mainly to tackle the concern if prices get out of synch in terms of market fundamentals, and if they get out of reach of the common people.

“In terms of the buyers, you won’t have to panic… If you find that today’s prices are not affordable, you can afford to wait. There are always alternatives.

“If you are getting married, if you need a place, you could rent first because rentals are still affordable. It has been softening over the last 12 months and it will continue to soften in the next six months.”

The remaining 16 residential sites will be sold through the reserve list, which is triggered only when a developer makes a bid that the government considers acceptable.

The list includes a site at Ten Mile Junction at Bukit Panjang, which could see a 200-unit condominium built on top of existing developments. The site will be open for tender in January 2010.

More sites will also be released for hotel use under the GLS Programme, which will have 42 sites in all.

- CNA/so

Source : Channel NewsAsia - 07 November 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Hotels in Singapore make preparations for APEC Summit

Hotels in Singapore make preparations for APEC Summit

By Cheryl Lim

SINGAPORE: Preparations are well underway as Singapore’s hotel industry gears up for the Asia-Pacific Economic Cooperation (APEC) meetings, which will begin on November 8. Many of the hotels here are eagerly awaiting the arrival of delegates from around the world.

While several of the hotels have declined to give the details of their preparations, Channel NewsAsia understands that delegates will receive a welcome drink when they arrive – a specially concocted APEC mocktail.

Both The Fairmont Singapore and Swissotel The Stamford will host delegates from two economies. Delegates staying there can look forward to special welcome amenities like APEC souvenirs and a range of gifts and services.

Magdalene Tai, director of human resources, Fairmont Singapore & Swissotel The Stamford, said: “To welcome the world leaders, we have put in place our service measures to train our colleagues in three areas – namely, kitchens, rooms and food & beverage service.”

Security at hotels will be tight as well, with plans closely intertwined with APEC preparations.

Moreover, hotels are making changes to features in their rooms to ensure the comfort of their guests. For example, bed extensions for taller guests and subscriptions to specific television channels have been made.

Many are also sending staff for language courses to help them communicate better with the APEC guests.

- CNA/so

Source : Channel NewsAsia - 07 November 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

8 residential sites on confirmed list of GLS Programme for H1 2010

8 residential sites on confirmed list of GLS Programme for H1 2010

By Irene Chan

SINGAPORE: The government will place eight residential sites on the confirmed list of the Government Land Sales (GLS) Programme for the first half of next year. These include four new sites and four that are carried over from the GLS Programme for the second half of this year.

The National Development Ministry (MND) said on Friday that these new sites can potentially yield about 2,925 residential units.

In addition, the reserve list for the first half of next year will have 16 residential sites and two mixed use sites. Of the 18 sites, six are new and 12 will be carried over from the GLS Programme for the second half of this year.

MND said in total, these 18 sites can yield about 7,625 private residential units. It added that there will be a total of five executive condominium sites under the GLS Programme for the first half of next year – two under the confirmed list and three under the reserve list.

All the sites in the GLS Programme for the first half of next year are located in the suburban or city fringe areas where more affordable private housing are expected to be built.

MND will also add two new hotel sites to the reserve list. One is located at Robinson Road and the other at Robertson Quay. It said this will provide more variety of sites for hotel development to suit the accommodation needs of business travellers and visitors.

The government suspended the confirmed list for its GLS Programme last October in view of uncertain market conditions at that time. The suspension was extended another six months, stretching till the end of this year.

But MND said in view of the strong demand for private housing and improved conditions in the property market, it has decided to reinstate the GLS Programme for the first half of next year to ensure that there is adequate supply of private housing to meet demand.

The GLS Programme for the first half of 2010 will have 42 sites in all.

- CNA/vm/so

Source : Channel NewsAsia - 07 November 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Govt to offer slew of sites for homes

Govt to offer slew of sites for homes

Eight confirmed sites and as many as 26 to allay fears of shortage

By Joyce Teo, Property Correspondent

THE Government acted ahead of schedule yesterday in following through on its pledge to release plenty of land sites to meet strong demand for mass market homes outside the city centre.

In the first half of next year, at least eight residential sites - and as many as 26 sites - will be offered to developers.

The move is being seen as a bid to allay fears of a shortage of these homes - often bought by HDB upgraders - which may have sent prices surging.

The 26 sites could produce 10,550 private homes - the highest number from any half-yearly government land sales since the second half of 2001, said the Urban Redevelopment Authority (URA).

In an announcement that came a few weeks earlier than usual, the Government said it would put eight residential sites, including two executive condominium (EC) sites, on the confirmed list. This is where sites are put up for sale regardless of developers’ prior expressions of interest.

These sites could boast about 2,925 new homes, close to the boom time 3,000 in the second half of 2007.

‘There’s some anxiety about housing supply, so its better to tell people that there will be adequate supply,’ said URA senior group director of land sales and administration Choy Chan Pong.

‘The private residential market has seen very strong demand in the past eight months, so we want to ensure there is enough supply to meet demand, so that prices can move more in sync with economic fundamentals,’ he said.

To calm the market, National Development Minister Mah Bow Tan, in mid-September, flagged the move to reinstate the confirmed list after it was suspended for about a year.

Sales of new private homes this year are now above 12,828 units and could hit 2007’s record of 14,811 units. Developers have thus been bidding for land at much higher than expected prices.

The high-end homes market has not fully recovered, but mass market prices are now similar to levels seen in the previous boom, sparking fears of runaway mass market prices, experts said.

‘The programme will ensure the property market stays stable and price increases are kept to moderate levels,’ said Knight Frank’s executive director of residential, Mr Peter Ow.

Aggressive bids by developers could also become a thing of the past.

The Government is trying to calm panicky buyers as well as developers who have been tendering for sites at record prices, said Cushman & Wakefield managing director Donald Han.

Of the 26 sites for residential use on the land sales programme, 10 are new sites, not rolled out previously.

In January, the Government will push out three confirmed sites, including a new EC site in Buangkok Drive.

The five EC sites, one new, will mean the largest EC supply since 2000.

‘Putting two ECs on the confirmed list reflects the Government’s concern about the widening gap between HDB resale prices and private housing prices,’ said DTZ head of South-east Asia research Chua Chor Hoon.

Two of the 26 residential sites are mixed-use, whereby private homes can be built. Another 16 are on the reserve list, whereby sites are offered for sale after a developer commits to a minimum bid.

Two confirmed list sites near MRT stations - in Pheng Geck Avenue and Simei Street 3 - are very attractive, and could fetch $400 to $500 per sq ft of gross floor area, Mr Ow estimated.

Units on the sites may then sell for close to $1,000 psf, he added.

On the reserve list, the sites likely to be triggered for tender are in Bishan Street14, Bartley Road and Stirling Road, said CBRE Research.

In all, 42 sites are available for sale in the first half of next year, comprising 24 purely residential sites, two mixed use sites that must include residential use, five commercial sites, 10 hotel sites and one site permitting a range of uses.

Source : Straits Times - 07 November 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Two new hotel sites on H1 2010 reserve list

Two new hotel sites on H1 2010 reserve list

By KALPANA RASHIWALA

TWO new hotel sites - one of which is Ogilvy Centre, a conservation building opposite Lau Pa Sat - have made it to the government’s H1 2010 reserve list. But there are no new commercial sites on the list. And there are neither hotel nor commercial sites on the confirmed list for H1 2010.

GENERATING EXCITEMENT
Ogilvy Centre, a conservation building in the financial district, can be positioned as a luxury hotel with about 70 rooms
Still, according to the Urban Redevelopment Authority, there’s ample supply of sites for commercial and hotel developments in the reserve list.

Choy Chan Pong, URA senior group director for land sales and administration, pointed out that about 4.5 million square feet of commercial space will continue to be made available through the reserve list of H1 2010, including about 1.5 million sq ft that can potentially be generated from a white site at Ophir Road in the Bugis area and nearly 690,000 sq ft from a white site in the Jurong Gateway area.

CB Richard Ellis director (research) Leonard Tay said that recovery in the office market is at the incipient stage. ‘If the pace of recovery quickens, the authorities have the option of adding some confirmed list sites for second half 2010 to ensure timely supply of office buildings from 2013 onwards.’

CBRE’s figures show that between now and end-2014, about 7.72 million sq ft of net lettable area of offices are slated for completion.

‘One should not underestimate the pace at which the current supply will be absorbed when the market recovers in the medium term,’ said Mr Tay. ‘For instance, the annual takeup for 2000 was a very significant 4.22 million sq ft on the back of recovery after the Asian crisis.’

Cushman & Wakefield’s Singapore managing director, Donald Han, said: ‘It takes about 2 1/2-3 years from the time a developer bids for an office site to finishing the project, and probably a good time to buy sites would be in H2 2010 to get projects ready for the post-2013 period.’

Property market players were excited about Ogilvy Centre, at the corner of Robinson Road and Boon Tat Street, being added as a hotel site with about 70 rooms to the reserve list. The property was built in 1927 and accorded conservation status in February 2000. The building’s facade as well as part of its interior have to be conserved. The government is reviewing whether to sell the site on a 30 or 60-year lease.

‘This is not your typical hotel site. It’s in the financial district and can be positioned as a luxury property like an Armani Hotel,’ Mr Han said.

The other new hotel plot on the reserve list, at Robertson Quay, can generate some 350 rooms. The Ministry of National Development’s H1 2010 reserve list can potentially generate 4,515 hotel rooms.

Source : Business Times - 07 November 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Buffet-table spread of sites for developers

Buffet-table spread of sites for developers

But the jury is out on whether the govt’s release of plots will tame land bids, which have soared wildly at state tenders

By KALPANA RASHIWALA

THE government is offering developers a platter of residential sites through the confirmed and reserve lists for the next half - including several plots in the vicinities of hot-selling condo launches this year, such as Caspian near Jurong Lake and Alexis near Queenstown MRT Station.

However, the jury is out on how much this will tame land bids, which have soared wildly at recent state tenders.

Four of the eight sites on the confirmed list and at least four reserve list sites are near MRT stations - but there are also many sites not in the vicinity of train stations where more affordable private housing could be built.

A few plots are close to the city while the majority are in typical suburban locations where private condos catering to HDB upgraders are located.

Peter Ow, Knight Frank executive director (residential), said: ‘The government’s main message is that it is taking care of the upgraders’ market. The current release is to tackle and try to moderate prices in the upgraders market which concerns most Singaporeans.’

For new private homes, prices in the mass-market segment have surpassed their 2007 peak levels; whereas for high-end homes, prices have yet to recover to their 2007-highs, he added.

‘Thus, there are no sites in the Core Central Region, which includes the prime districts. The government recognises the fact that not all sectors of the residential market are doing well, especially high-end homes.’

Chua Chor Hoon, DTZ’s South-east Asia research head, said that with so many choices, developers are unlikely to put in aggressive land bids in future tenders.

Leonard Tay, CB Richard Ellis director (research), said that the latest supply may moderate slightly some of the exuberance at recent state tenders but prime sites near MRT stations would still be well contested and developers may put in a premium.

Putting the latest supply numbers in perspective, Knight Frank chairman Tan Tiong Cheng suggested that the 2,925 private homes that can be developed on the eight confirmed list plots for H1 2010 would not significantly bring down land bids as the reintroduction of supply on this list is long overdue after an absence of one year.

‘So it’s more like catching up. Plus, there’s no alternative supply of mass market sites from the private sector through collective sales, for instance,’ he added.

Of the 10 new housing sites on the latest confirmed and reserve lists, Knight Frank’s Mr Ow picks out the confirmed list plot next to Potong Pasir MRT Station, which can yield about 150 private homes, and the reserve list site at Stirling Road near Queenstown MRT Station as the ones likely to fetch the highest bids - about $500 per square foot per plot ratio (psf ppr) and above $500 psf ppr respectively, because of their proximity to the city.

DTZ’s Ms Chua pointed out that the Stirling Road site, which can be be turned into a condo with about 405 units, is quite near the CBD and very close to HDB flats. A new condo on the site would generate demand from both owner occupiers and investors. ‘There’s good rental demand for Queens and Anchorage condos nearby,’ she said.

Agreeing, Mr Ow said that the Stirling plot, with a 4.2 plot ratio (ratio of maximum potential gross floor area to land area) could probably be built up to 40 storeys, in line with Queens condo just in front of it as well as HDB blocks in the Dawson estate nearby.

Property consultants said that other new sites that are likely to be popular include plots near Simei and Lakeside MRT stations as well as a plot in Pasir Ris near Downtown East and Pasir Ris Park.

The land parcel near Lakeside MRT Station, which is under the confirmed list, can produce some 525 private homes. It is next to Caspian, which sold like hot cakes in February and helped revive private homes sales after last year’s global financial crash. Another plot on the confirmed list, diagonally opposite Simei MRT, can produce 250 units. It is also near UOL Group’s Double Bay Residences which was released this year. The confirmed list site at Pheng Geck Avenue near Potong Pasir MRT is close to another 2009 hot seller, 8@Woodleigh.

Among the new reserve list sites, the Stirling Road plot is in the vicinity of Alexis condo, which was also among the earlier hot projects this year.

The Ministry of National Development has also injected two plots in Hougang into the latest reserve list - one at Hougang Avenue 2 designated for a low-rise development near Rosyth School, and the other, at Hougang Avenue 7.

Another new reserve list plot is at Miltonia Close in Yishun, next to The Shaughnessy, a completed condo. It may be far from town and not next to an MRT station but a new low-rise development on the site will be attractively located, next to Orchid Golf Course and near Lower Seletar Reservoir.

Developers more familiar with the Eunos area may consider a plot at Foo Kim Lin Road which can generate about 535 units. It is a new plot on the reserve list.

‘Developers now have a whole buffet-table spread of sites to choose from,’ summed up CBRE’s Mr Tay.

Source : Business Times - 07 November 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Govt turns up supply tap to cool property fever

Govt turns up supply tap to cool property fever

10 new sites signal intent to keep home prices affordable

By EMILYN YAP

THE government yesterday fired a clear signal that it intends to keep private homes affordable by announcing its land sales programme for the first half of 2010 earlier than expected.

The 10 new residential sites introduced through the confirmed and reserve lists will allow developers to build many more homes - some of these in executive condominiums (ECs). There will also be more plots in less pricey regions.

‘The large number of sites in the confirmed and reserve lists shows how keen the government is to cool the residential property market,’ observed DTZ South-east Asia research head Chua Chor Hoon.

The Ministry of National Development (MND) reinstated the confirmed list with eight residential sites - four are new while the other four are from the H2 2009 government land sales (GLS) programme. Of these eight parcels, three could be launched in January alone.

The government puts up sites on the confirmed list for tender according to scheduled dates. It suspended this list last October as the property market weakened, but recently decided to reinstate it as private home demand and prices surged in the last few months.

The eight parcels on the confirmed list can hold an estimated 2,925 units. This is close to the largest potential supply of 3,014 units from the confirmed list in H2 2007, since the confirmed list and reserve list system began in H2 2001.

The upcoming confirmed list is striking not just for the number of sites on it. Two of the eight parcels are designated for ECs - a hybrid of public and private housing with resale and other restrictions.

These developments cater particularly to those who can afford more than an HDB flat but are still priced out of private property.

MND also boosted the reserve list for H1 2010 with six new residential sites which can generate another 2,455 units. Sites on this list are launched only when developers successfully apply for them.

With 16 residential sites and two mixed-used sites in all, the reserve list will be able to supply 7,625 units.

Together, the confirmed and reserve lists can potentially bring 10,550 housing units into the market. This is the highest number from any half-yearly government land sales (GLS) programme since the reserve list system began in H2 2001.

Another notable point: the 26 residential and mixed-use sites on the confirmed and reserve lists are all in the outside central region (OCR) and rest of central region (RCR), where cheaper homes can be built. Of the potential supply of 10,550 units, 9,220 will be in OCR while the remaining 1,330 will be in CCR.

‘There is a balanced spread of residential sites on the confirmed and reserve lists under the GLS programme for H1 2010, offering a variety of choices for the development of affordable homes,’ the Real Estate Developers’ Association of Singapore (Redas) said. ‘We believe that there is adequate supply of housing in the pipeline to meet future demand.’

As at Q3 this year, some 59,700 private homes were already in the pipeline. Of these, 34,120 units had not been sold.

MND typically releases details on the GLS programme in December. Yesterday’s announcement came weeks earlier than expected.

According to Urban Redevelopment Authority (URA) land sales and administration senior group director Choy Chan Pong, the market has been waiting for updates since National Development Minister Mah Bow Tan said in September that the confirmed list would be reinstated.

‘Since people say there is some anxiety about housing supply, it’s better to tell people now,’ he explained.

Cushman & Wakefield Singapore managing director Donald Han reckoned that the announcement also sends a ‘don’t panic’ signal to developers seeking to replenish their land banks. The likely launch of three sites from the confirmed list in January next year could help, because ‘the longer the wait, the higher is the pent-up demand and the potential premium pricing,’, he said.

MND did not introduce any commercial, hotel or white sites to the confirmed list for H1 2010. But it did add two new hotel plots to the reserve list. The reserve list will have five commercial sites, two white sites, 10 hotel sites and one commercial-and- residential site.

The ministry also underlined that more land could come from other government agencies. Planned supply from these agencies in H1 2010 can yield commercial space with a gross floor area of around 43,000 square metres.

‘The government will continue to monitor the demand-and-supply conditions not only for the residential sector, but also for various property sectors. We will monitor it closely and review the GLS programme accordingly to ensure that supply is more than sufficient to meet demand,’ URA’s Mr Choy said.

The market had been prepared for new land supply to be introduced and major property counters managed to post gains on the stock market yesterday. City Developments shares, for instance, rose 17 cents to close at $10.02.

Source : Business Times - 07 November 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

CapitaLand reverses staff pay cuts

CapitaLand reverses staff pay cuts

Labour leader hails developer’s ‘timely decision’

By CHEW XIANG

PROPERTY giant CapitaLand is reversing cuts of between 3 and 20 per cent made to executive and management salaries in January this year.

Tan Seng Chai, senior vice-president of human resource, said: ‘CapitaLand Group has performed significantly better this quarter than the previous two quarters and we are seeing an improvement in the business outlook in our core markets.

‘In the light of the continued business recovery, we have decided to restore company-wide salary reduction implemented in January this year as part of our cost management measures.’

Josephine Teo, assistant secretary-general of the NTUC, said in a statement: ‘We welcome the timely decision by CapitaLand to be among the first few companies in fully restoring its executives’ salary in view of good company performance and improved outlook.’

Ms Teo is also executive secretary of the Singapore Industrial and Services Employees’ Union, which had agreed to the pay cuts last year after it was consulted by CapitaLand.

The union said it was happy that CapitaLand continued to support workers during the downturn, noting that the company had donated money to a union fund and also supported NTUC’s work-life balance initiatives.

CapitaLand was awarded the May Day Model Partnership Award 2009, in recognition of its consultative and collaborative approach with the union, Ms Teo said.

Source : Business Times - 07 November 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com