Resort-style design for waterfront flats

Resort-style design for waterfront flats

Punggol housing project to feature flats with roof gardens and sky terraces

By Jessica Cheam

International architectural firm Group8asia and local firm Aedas’ winning design for the waterfront flats is inspired by Asia’s rice fields and dense rainforests. — PHOTO: HDB

SINGAPORE’S first waterfront public housing project in Punggol will offer 1,200 flats featuring sky terraces, roof gardens and panoramic views of the Punggol Waterway.

The Housing Board (HDB) yesterday unveiled the winning design for the first batch of flats that will line the 4.2km waterway. They will be launched for sale by the middle of next year.

The 4.9ha project’s unique design will feature blocks of flats that will ’step down’ towards the water like terraces, and have solar panels on their rooftops to supply power to common areas.

National Development Minister Mah Bow Tan said the winning design ‘offers a new lifestyle option for Punggol residents’.

‘Its distinctive sky terrace concept will create quality public spaces along the waterway for the community, keeping the kampung spirit alive,’ said Mr Mah, who announced the winning team behind the design at the HDB’s annual awards held at HDB Hub yesterday.

International architectural firm Group8asia and local firm Aedas clinched the top prize for their refreshing, resort-style design, which was inspired by Asia’s rice fields and dense rainforests, said Group8asia’s principal architect, Mr Manuel Der Hagopian.

‘Singapore has a close relationship with water and we wanted to design something that reflected that,’ said Mr Hagopian, who is Swiss and has 10 years of industry experience.

The project’s design enables a high percentage of flats to have views of the waterway, and allows for many green, open spaces such as open courtyards and sky gardens - all leading to the water.

Mr Hagopian incorporated high Swiss standards of sustainability in the project, maximising natural light and ventilation. The project will aim to achieve the highest green building award, he said.

The naming of the winning design brings to a close the Punggol Waterfront Housing Design Competition that the HDB launched in December last year.

The two-stage design competition, which attracted 108 entries with a good mix of local and foreign firms, had a theme of Green Living By The Waters.

Surbana International Consultants, B4FS Arquitectos and RSP Architects received merit awards for their designs.

HDB deputy director (physical planning) Chong Fook Loong said the board wanted to seek innovative ideas on how to get the best value out of the waterway.

The new housing project and the upcoming Punggol Waterway and Promenade are part of the ‘Punggol 21-plus’ vision unveiled by Prime Minister Lee Hsien Loong in his National Day Rally speech in 2007.

By 2011, there will be 23,000 completed homes in Punggol, said HDB.

The Government aims to build an extra 21,000 homes along the waterway - 60 per cent HDB flats and 40 per cent private ones.

HDB hopes to offer the first batch of waterfront flats for sale next year, and residents are expected to get their flats by 2014 or 2015.

Mr Mah also presented 12 awards to seven winners in the categories of construction safety, quality and design.

He recognised the contribution by industry partners towards Singapore’s successful public housing programme.

‘But, success brings with it a new set of challenges, one of which is meeting the rising expectations of Singaporeans for quality public housing,’ he said.

This is why HDB and its partners should continue to keep abreast of technological improvements and innovation to make HDB flats and estates even better, said Mr Mah.

Among the winners were China Construction and Surbana International, which won multiple awards.

HDB award winners

Construction Safety Award

China Construction (South Pacific) Development (Building)

Thong Huat Brothers (Main upgrading)

Design Award

Surbana International Consultants (Three awards for new housing, two for main upgrading)

Quality Award

China Construction (South Pacific) Development

Kian Hiap Construction

Kienta Engineering Construction

Sim Lian Construction

United Premas

Source : Business Times - 12 November 2009

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M&C to open Studio M hotel

M&C to open Studio M hotel

$120m project will open at Robertson Quay in second quarter of 2010

By NISHA RAMCHANDANI

MILLENNIUM & Copthorne Hotels (M&C) has added a new brand to its portfolio, Studio M, with the first hotel slated to open in Singapore in the second quarter of 2010.

Located at 3 Nanson Road in the Robertson Quay area, the 365-room Studio M hotel will fuse style and functionality by offering integrated technology and wireless connectivity, as well as other features such as an open-air tropical deck.

The project will cost $120 million, of which the land cost was $53 million. Construction is under way.

‘The concept of smart business travel is evolving rapidly. There is increasing demand from this largely untapped market segment that craves a distinctive experience, even as they demand functional services like wireless connectivity. Studio M aims to fill this gap,’ said M&C chairman Kwek Leng Beng. M&C is a subsidiary of City Developments Ltd.

And when Studio M is launched next year, Mr Kwek - who is also executive chairman of M&C’s parent company Hong Leong Group - reckoned that it will benefit from the two integrated resorts.

‘When they open, they will bring in new types of customers. You’re not taking away existing customers,’ he said.

The next stop for the Studio M brand is likely to be the Middle East. M&C is also looking at China, India and Vietnam. ‘We plan to take this new brand global,’ said Mr Kwek. ‘The question is always which will give me more stabilised earnings?’

M&C’s financial results for the nine months ended Sept 30 showed that revenue per available room (RevPAR) for its Singapore hotels fell 35.5 per cent year on year to £57.60 (S$133.32), on the back of a 9.2 percentage point drop in occupancy to 74.8 per cent. Room rates for 9M 2009 were 27.6 per cent lower at £77.

However, the decline in RevPAR has started to slow, as seen from a 31.2 per cent drop in Q3 2009, versus 44.5 per cent in Q2. Occupancy increased 0.7 percentage point for Q3. But room rates are still under pressure, declining 31.7 per cent in Q3.

‘As occupancy demands start to increase, this decline in rate will start to be addressed,’ M&C said in its interim statement.

Listed in London, M&C has more than 120 hotels worldwide under several brands.

Source : Business Times - 12 November 2009

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group8asia-Aedas design for Punggol homes

group8asia-Aedas design for Punggol homes

By UMA SHANKARI

THE design for the first public housing project along the upcoming Punggol waterway has been chosen.

Refreshing: The winning design stood out from the rest for its sky terrace concepts, HDB says
International architectural firm group8asia has emerged as winner of the Housing & Development Board’s Punggol Waterfront housing design competition. Group8asia teamed up with local firm Aedas to come up with the winning design.

The development, which will be launched in mid-2010, will have about 1,200 mostly four-bedroom apartments and will offer residents an eco-friendly housing experience, HDB said.

National Development Minister Mah Bow Tan announced the winner at an HDB awards ceremony yesterday.

The design will set the benchmark for other developments along the 4.2km waterway. Mr Mah said: ‘I am glad to note that the private sector has responded enthusiastically to the challenge of coming up with truly innovative design proposals for this highly anticipated housing project.’

More than 100 firms took part in the contest, half of them foreign firms from as far as Spain, the Netherlands, Japan and Hong Kong.

The government’s plans call for about 21,000 homes to be built along the Punggol waterway - comprising 60 per cent public housing and 40 per cent private housing. The waterway is slated to be completed by end-2010.

The winning design will take shape on the first residential plot to be developed along the waterway.

HDB said that the design by group8asia and Aedas stood out from the rest for its sky terrace concepts, with spaces for roof gardens. Other winning attributes include the resort-like design of the development, the ‘functional and workable layout’ of the site, and the refreshing housing forms that could be replicated along the waterway.

Chong Fook Loong, HDB’s deputy director for physical planning, said that homes in the development will be kept affordable. In the same vein, Mr Mah said during the awards ceremony that HDB must be mindful to be cost-effective when designing and building its flats.

The ceremony recognised seven winners with a total of 12 awards in the categories of construction safety, quality and design. Two companies, China Construction and Surbana International, won multiple awards. The other five winners were Thong Huat Brothers, Kian Hiap Construction, Kienta Engineering Construction, Sim Lian Construction and United Premas.

Source : Business Times - 12 November 2009

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High luxury-home prices are good

High luxury-home prices are good

Policymakers can focus on alleviating life’s anxieties such as providing low-cost quality education, healthcare coverage

By LESLIE YEE

I WORK in the real estate sector in Hong Kong but do not cover the residential property market. Nevertheless, like many residents of the Special Administrative Region, I have been fascinated by recent market developments. Over the past few months, prices have been rising, China buyers have been increasingly active, developers have been launching units and analysts have been talking about the lack of supply. Debate raged over the sustainability of price rises with the argument centring on lingering economic weakness versus abundant liquidity coupled with early signs of economic improvement.

News then broke in late October of Henderson Land’s sale of a duplex at 39 Conduit Road for HK$439 million (S$78.54 million) or a world record HK$71,280 per square foot. What has since ensued is heated discussion over whether dreams of home ownership for the middle class in Hong Kong have been shattered in part due to rich China buyers driving up prices. Calls are being made for the government to tame the raging animal spirits in the Hong Kong residential market.

The themes playing out in the Hong Kong market are to some extent applicable to Singapore, although the Singapore private residential market rally this time round has been mass-market-led while that in Hong Kong is driven by the high end. Still, with Singapore’s imminent opening of the integrated resorts, there could be a new spring in step for high-end properties.

In Hong Kong, questions being discussed include: Are foreigners pricing out locals? Do sky high prices for luxury units matter? What can and should government do to control property prices? What help if any should government render middle-class locals in owning their homes? Are the controversies in the property market a reflection of economic growth in recent years benefiting high-income earners disproportionately while the rest lag behind?

Invariably, there will be some degree of envy when wealthy foreigners come to any city and lord it over the locals. Such a scenario emerges in many a successful city, with rich Russians and Arabs in London, rich China nationals in Hong Kong and rich Indonesians in Singapore. However, should one follow the head rather than the heart, it is not just the Hong Kong property tycoons who ought to celebrate the sale of a luxury unit for HK$71,280 psf but everyone.

Wealthy people have a choice of where to invest their money. Hong Kong people should be proud that there are a fair number of rich people confident enough in Hong Kong’s prospects to pay princely sums for property in the territory. Indeed, having millions poured into residential property helps generate real-estate-related jobs plus spending by the dwellers of luxury properties. Real estate investment may not generate the same amount of economic spin-offs as investment into manufacturing but they still bring economic benefits.

Singapore and Hong Kong share many similarities, key of which is that both cities, in my view, have a bright future catering to a rapidly growing Asia as hubs of finance, trade, transport, tourism, and various other services. Economic success of both cities does depend on keeping an open door to foreigners and this includes being broadly welcoming to participation by foreigners in the property market. Hong Kong has an important strategic fight on its hands of being competitively positioned as Shanghai and Beijing make strides up the league of global cities. The people of Hong Kong should be more concerned with the city’s ability to thrive in an ever-changing global landscape than the state of the property market. Of course, should Hong Kong continue to grow as a key business hub, expect more reports of developers selling luxury units for mind-boggling sums.

Shelter is a basic need of man and owning a home is a key purchase decision for many people. Defining the type of housing that the middle class should be able to afford is, however, tricky. I believe that all policymakers can largely do is to ensure that there is adequate land supply such that there is a range of property types at different price points available. Just as with any consumer product, we should rely on developers to offer choice to meet a variety of needs.

It is not surprising that developments in the residential property market generate strong emotions. Very high prices at luxury projects are not mere aberrations and high prices at the high end can lead the rest of the market up. Nonetheless, the high end typically forms a small part of the wider market and purchasers at the high end tend to be financially strong, Thus, it would be wrong to see high luxury-unit prices as indicative of a property bubble, which is what policymakers rightly fret about. Instead, what policymakers could do is to be more effective in winning hearts and minds - that high prices at the high end are generally a good thing.

More critically, what policymakers in successful Asian cities can focus on is to put any discussion of residential real estate in a wider context. While anxieties of the middle class with regards to home ownership may be difficult to assuage, the state can focus on doing more in other areas to alleviate life’s anxieties such as providing low-cost quality education, healthcare coverage and help with retirement savings. Let the pursuit of making a city a great place to work, live and play go together with ensuring that a range of needs of local residents are well taken care of. While not everyone can live in a prime neighbourhood, everyone can perhaps get reasonably good health care and education.

The writer is a Hong Kong-based real estate executive with extensive experience in the Singapore property market

Source : Business Times - 12 November 2009

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High-spec space losing favour due to low office rents

High-spec space losing favour due to low office rents

Some firms have gone back to leasing commercial space

By EMILYN YAP

HIGH-spec industrial space has lost favour with tenants in the past few months. As office rents plunged, some companies have gone back to leasing commercial space, says Colliers International.

The move has, in turn, driven down rents for high-spec space. According to the property consultancy, the average monthly gross rent of high-spec space fell 14.1 per cent to $2.93 per square foot at end-September from $3.41 psf at end-March.

The lower rents reflect stiff competition for tenants, Colliers said, adding that some companies had taken advantage of the sharp drop in office rents to relocate to office premises.

This marks a reversal of the trend that started in 2007. As office rents soared on the back of a booming economy, more firms moved away from the central business district to cheaper high-spec industrial space.

But office rents have plummeted amid the economic slowdown. CB Richard Ellis said in September that monthly prime office rents averaged $7.50 psf in the third quarter, dropping 12.8 per cent from the previous quarter. They have fallen 53.4 per cent from their peak in Q3 last year.

Colliers said that on top of shrinking demand, a large supply of high-spec space is expected to appear next year, which has also contributed to falling rents.

In contrast, rents for some factories and warehouses have been relatively stable. Colliers said that from end-March to end-September, the average monthly gross rent of single-user factories in central Singapore stayed firm at $1.30 psf, while that of warehouses in eastern Singapore held up at $1.20 psf.

And on a positive note, Colliers said that there has been a noticeable pick-up in sales of industrial space. These involved mainly private investors, owner-occupiers and domestic companies.

While industrial space markets across the Asia-Pacific appear to be bottoming out, Colliers remains cautious in its outlook. It believes that these markets could stay subdued in the next 12 months, given that the global economy is still recovering and excess manufacturing capacity still exists.

Colliers research and advisory director Tay Huey Ying expects rents and capital values of factories and warehouses in Singapore to rise by up to 5 per cent in the next 12 months ‘on the back of the expected improvement in the economy and the manufacturing sector, as well as more optimistic business sentiment’.

Source : Business Times - 12 November 2009

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Mitre site sold to Heeton group for about $121m

Mitre site sold to Heeton group for about $121m

Price works out to almost $1,100 psf ppr for freehold residential plot

By KALPANA RASHIWALA

A CONSORTIUM led by Heeton Holdings is understood to have signed a deal to buy the freehold Mitre Hotel site at Killiney Road for about $121-122 million. The price works out to almost $1,100 per sq ft of potential gross floor area including an estimated development charge (DC) of $770,000.

Mitre Hotel: The Killiney Road site can be redeveloped into a new project with about 110 apartments
Jones Lang LaSalle is understood to have brokered the sale following a tender exercise that closed in September.

The 39,972 sq ft site is zoned for residential use with a 2.8 plot ratio - the ratio of maximum potential gross floor area to land area - under Master Plan 2008. There is a 10-storey height limit. The plot can be developed into a new project with about 110 units of an average size of 1,000 sq ft.

Analysts estimate that based on the unit land price of almost $1,100 psf per plot ratio (psf ppr), Heeton’s breakeven cost for a new apartment development could be about $1,600 psf.

The Mitre Hotel, which opened in 1948, stopped letting rooms when it lost its licence in 2002, according to earlier media reports.

The property - which is owned mostly by members of the Chiam family - was ordered to be put up for sale last year by the Court of Appeal, ending a 12-year legal tussle over its sale.

Market watchers said the last time the property was in the market was in August 2007 when it had a price tag of about $200 million or close to $1,800 psf ppr including an estimated $700,000 DC at the time.

Analysts also observe that the latest price of almost $1,100 psf ppr achieved for the property is a slight improvement on the $1,022 psf ppr (including DC) that Hoi Hup paid for the Killiney Apartments plot nearby in April 2007. Hoi Hup is now redeveloping that site into the Residences @ Killiney.

Heeton yesterday reported a 143 per cent year- on-year jump in net earnings for the nine months ended Sept 30, 2009 to $10.5 million.

The company is seeking shareholders’ approval for the disposal of five wet-market properties in Singapore to supermarket chain Sheng Siong.

Source : Business Times - 12 November 2009

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From S’pore to the world: an urban strategy that sells

From S’pore to the world: an urban strategy that sells

New programme with World Bank to take urbanisation expertise and investments to growing cities

By OH BOON PING

(SINGAPORE) The base is Singapore. The first projects are cities in Mongolia, China and Vietnam. And there’s money to be made for investors and a whole new world of amenities in store for the developing world.

A new global urban strategy has been officially launched in Singapore, with three projects in the pipeline.

A joint initiative with the World Bank, the strategy builds on Singapore’s extensive city management and public-private partnership (PPP) experience to help developing countries as they take advantage of the economic opportunities associated with rapid urbanisation.

Under the programme, participants will receive help with planning, preparation and management of cities that are environmentally sustainable.

The World Bank will also pursue ‘wholesaling’ strategies to target an expanding number of cities by working with financial intermediaries and municipal funds for assistance to local governments.

‘Urbanisation is a vital phase of development and, if managed well, it can be a key driver of long-term economic growth in a country,’ said World Bank chief Robert Zoellick.

‘That’s why it is so important for the global community to help developing countries address the urbanisation challenge. It is fitting to launch our Urban Strategy in Singapore, a world-recognised leader in urban planning.’

Private sector investment in Asia has been on the decline since the 1997 Asian crisis and new engines need to be found, Finance Minister Tharman Shanmugaratnam said at a summit yesterday.

Except for China, investment as a share of GDP in emerging Asia fell about 10 percentage points following the 1997 crisis and has remained essentially unchanged over the past five years.

‘Asian investments have not kept pace with the growth of exports and corporate profits,’ said Mr Tharman.

‘Investing in Asian infrastructure is not a silver bullet for curing current account imbalances, but it comes close.

‘Current estimates of the gaps in infrastructural investment vary, but they are all large. In a recent study, the Asian Development Bank (ADB) estimated that Asia needs to spend about US$8 trillion over the next 10 years - to build and maintain new power, transport, water and sanitation and telecommunications infrastructure.’

Based on some estimates, cities are projected to expand by another two billion people in the next two decades, while 90 per cent of urban population growth is expected to occur in the developing world.

The programme’s maiden projects will be undertaken by the Singapore Cooperation Enterprise (SCE), the World Bank, the governments of Mongolia and Vietnam, and the municipal government of Chongqing to assist in developing a regulatory and financing framework to prepare public-private partnership (PPP) projects for private sector investment.

The cooperation will focus on developing commercially viable infrastructure projects in water and environmental management, power, expressways and roads.

The World Bank and SCE will also jointly organise workshops to share Singapore’s public and private sector expertise, experiences and best practices in structuring PPP infrastructure projects.

It is expected that these projects will lead to collaboration on other projects with the respective countries, which in turn open up opportunities for Singapore’s private sector players to assist the countries as investors and advisers.

‘As a city-state, Singapore has learned many lessons in urban management, often after years of experimentation,’ Mr Tharman said.

‘This is an exciting partnership with the World Bank, which will allow us to share what we have learned with others at a time of massive urbanisation in Asia.’

Separately, the Government of Singapore Investment Corp (GIC), manager of more than US$100 billion of the city-state’s foreign reserves, will make more direct investments in infrastructure assets, Teh Kok Peng, president of GIC Special Investments, said yesterday.

He said direct investment in infrastructure is more attractive than through funds because it offers higher returns.

Source : Business Times - 12 November 2009

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Managing customer expectations at Sentosa

Managing customer expectations at Sentosa

Island resort offering more attractions, facilities

By UMA SHANKARI

IT has been a tough year for tourism - a fact reflected in the findings of a nationwide survey.

Popular: Sentosa Nature Discovery, where guests learn about its rich flora and fauna, and Wave House Sentosa, which boasts two enormous pools with artificial waves for surfing enthusiasts
In the latest Customer Satisfaction Index of Singapore (CSISG), the customer satisfaction score for the ‘attractions’ sub-sector fell 3.1 points to 67.9, out of a possible 100.

Sentosa fell less than the overall sub-sector. The island’s customer satisfaction fell 2.9 points year on year to 67.5.

The findings on Sentosa from the CSISG research reaffirm those from its in-house surveys, said Lim Suu Kuan, director for service quality at Sentosa Leisure Group.

‘Service quality levels have remained consistent at Sentosa,’ Ms Lim said. ‘However, guests have indicated that they hope to see more attractions and facilities when they visit.’

To address this, Sentosa has welcomed a number of participative and interactive attractions in the past year, which it said are becoming increasingly popular with guests.

Imbiah Lookout, Sentosa’s largest cluster of attractions, now boasts 11 attractions, from culture to nature and thrill rides. Additions this year include the Sentosa Nature Discovery, where guests learn about Sentosa’s rich flora and fauna, and the MegaZip Adventure Park, which allows guests to zip down to the beach via a ‘flying fox’ ride.

And by the second half of 2010, guests will also be able to take in spectacular views of the harbour and Sentosa when Mount Faber launches its new Jewel Rides.

Other attractions that have opened this year are Wave House Sentosa, which boasts two enormous pools with artificial waves for surfing enthusiasts, and Azzura, which caters to hydrosports fans.

Sentosa said its in-house research has pointed to several factors that contribute to a decline in satisfaction levels.

One of these factors is the increase in the development of infrastructure on Sentosa over the past year.

‘During this period, guest satisfaction ratings have naturally dipped,’ said Ms Lim. ‘However, as the various construction projects near completion, we anticipate a shift in satisfaction levels in the next year.’

Sentosa has also increased its branding and marketing efforts, despite the market slowdown, to ensure that it remains ‘top-of-mind’ when potential guests are looking for a getaway. The group is on the right track.

In the CSISG model, three drivers influence customer satisfaction: customer expectations, perceived quality of products and services and perceived value (value-for-money). Findings revealed that Sentosa’s customers are ‘type one’ customers - which means their satisfaction levels are strongly driven by all three drivers of customer satisfaction, but customer expectations have the biggest impact.

Sentosa can therefore improve the overall satisfaction of its guests by focusing on expectations, said Caroline Lim, director at the Institute of Service Excellence at Singapore Management University (ISES), which conducts the yearly CSISG survey.

‘This implies improving the communication of offerings and activities available on the island resort,’ she said.

By comparison, another tourist attraction that was evaluated, Wildlife Reserves Singapore (WRS), has a different customer satisfaction profile. WRS, for its part, can raise the satisfaction of its guests by focusing improvement efforts on overall quality, Ms Lim said.

Sentosa knows it needs to work on customer expectations.

‘The study (CSISG 2009) suggests that while guests are generally familiar with Sentosa’s product offerings, it is important for us to continue to familiarise them on the range of offerings and activities on Sentosa through communications and marketing efforts. This will help temper guest expectations,’ said Sentosa’s Ms Lim.

The company’s efforts have paid off - at least in visitor numbers. From April to October this year, Sentosa saw an increase in visitors compared with the same period last year.

‘This increase in visitors can be attributed to our continuous effort to remain relevant to our guests, thus creating an emotional connection with them,’ said Ms Lim.

The island has also launched a new brand proposition ‘Asia’s Favourite Playground’.

Ms Lim said Sentosa will continue to build on its highly successful strategy to remain relevant to its guests by creating products and promotions that appeal to their unique needs.

Source : Business Times - 11 November 2009

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Interest grows for sustainable buildings: study

Interest grows for sustainable buildings: study

Real estate execs ready to pay a premium to retrofit their owned assets

By UMA SHANKARI

CORPORATE real estate executives, whose companies drive demand for office space, are increasingly willing to invest in refurbishing their owned assets to meet sustainability goals, according to a new survey.

The 2009 CoreNet Global and Jones Lang LaSalle sustainability survey found 74 per cent of real estate executives would pay a premium (generally one per cent to 5 per cent) to retrofit owned space for sustainability criteria, up from 53 per cent in 2008.

However, only 37 per cent would consider paying a premium rent (between one per cent and 10 per cent), while another 21 per cent indicated they would only be willing to pay a premium rent if it was offset by lower operating costs.

Some 67 per cent of respondents also said obtaining funds to implement sustainability strategies is a difficult or extremely difficult challenge.

The executives surveyed are responsible for real estate portfolios totalling billions of square feet worldwide.

‘These results clearly show that sustainability as an issue is here to stay, but companies are increasingly aware of the commercial realities,’ said Chris Wallbank, Jones Lang LaSalle’s head of energy and sustainability services for the Asia-Pacific region. ‘It is no longer enough to simply be ‘green’. Organisations want to see the benefits to the bottom line.’

The focus on cost reduction is seen in the 60 per cent of real estate executives that are adopting workplace strategies to meet sustainability goals while reducing overall occupancy costs - up from 54 per cent in 2008. The executives are continuing to focus on strategies that are easy to implement and provide short-term cost savings, such as energy efficiency programmes and waste recycling.

But making targeted investments in sustainability can be challenging. More than 50 per cent of executives said insufficient industry metrics, difficulty in calculating return on investment (ROI) and lack of tools for collecting necessary performance data are difficult or extremely difficult challenges.

‘Companies are looking for help in making targeted sustainability investment decisions and measuring the results in terms of both environmental and financial performance,’ Mr Wallbank said. ‘Clarification of industry metrics globally, tools that collect data and turn it into information, and clear methodologies for calculating project ROI will be critical to overcoming these challenges.’

The global survey of 231 corporate real estate executives was conducted in September and October 2009.

Source : Business Times - 11 November 2009

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All tools to avoid property boom, bust

All tools to avoid property boom, bust

FINANCE Minister Tharman Shanmugaratnam yesterday said the government will use every tool at its disposal ‘in a calibrated fashion’ to prevent boom and bust in the property market. One day after the Monetary Authority of Singapore served notice of further action to cool the housing market if needed, in the face of growing speculation risks, Mr Tharman spoke about the need to manage the property cycle.

It won’t involve macroeconomic levers such as the interest rate or exchange rate, though, as such tools apply across the board to businesses at large, not just the asset markets.

‘But we do have other tools like credit rules, land supply decisions and, in the extreme, tax policies, which we will use in a calibrated fashion depending on the circumstance, depending on the stage of the asset market.’ He was speaking about managing volatility generally at an Economic Strategies Committee industry forum when he cited the property market. ‘We will keep our eyes on the ball and use every tool at our disposal in a calibrated fashion to try to manage . . . as best as we can,’ he said.

But it’s ‘very hard to anticipate four to five years in advance what’s going to happen globally, regionally and hence within this global city’, he said, recalling how the government did pay heed to market signals of a supply glut in the property sector a few years ago, but found instead, by 2006 and 2007, a severe shortage, especially in the office market.

Source : Business Times - 11 November 2009

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