COOLING MEASURES TAKING EFFECT, SAY ANALYSTS

COOLING MEASURES TAKING EFFECT, SAY ANALYSTS
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by Chris Howells

SINGAPORE – Figures released yesterday appear to show that the Government’s property cooling measures, the last round announced in January, have started to take effect.

The NUS Private Residential Price Index, which tracks month-on-month price movements of private, non-landed residential properties, fell 0.4 per cent compared with January, with prices in non-central areas falling 1.5 per cent. Prices of central area properties, however, continued to gain, rising by 1 per cent.

Analysts said the fall, although small, does show some impact of the cooling measures.

Mr Liang Thow Ming, head of residential services at Credo Real Estate, said that the overall decline was too marginal to confirm a trend. “But in a way, it does suggest that the market has taken a breather, as compared to how it was behaving last year and in January this year,” he said.

The cooling measures announced in January, included higher stamp duties for sellers and a reduction in the amount of credit available to those who already have outstanding mortgages.

Meanwhile, real estate services firm DTZ pointed out that prices of prime and suburban resale homes continued to rise in the first quarter, but at a more moderate pace, while luxury resale home prices remained unchanged.

According to DTZ, the average resale price of leasehold condominiums in suburban areas inched upwards by 0.8 per cent to S$665 per sq ft, while average resale prices of freehold non-landed condominiums in price districts grew 0.4 per cent on quarter to S$1,525 per sq ft.

Luxury condominiums in prime areas remained unchanged at an average of S$2,630 per square foot for the second consecutive quarter, DTZ said.

Ms Chua Chor Hoon, head of DTZ South East Asia Research, said: “We expect the pace of increase in prices to continue to slow down and plateau. There is more uncertainty this year, not just from the possibility of more cooling measures, but also from the recent regional events in the Middle East and Japan, the full impact of which are still not known.” Chris Howells

Source : TODAYonline – MediaCorp Press Ltd’s copyright

HDB TO PUT UP BUANGKOK/SENGKANG EAST SITE FOR SALE »« Site at Fusionopolis Link launched for sale by public tender

Site at Fusionopolis Link launched for sale by public tender

Site at Fusionopolis Link launched for sale by public tender

By Jonathan Peeris | Posted: 25 March 2011

SINGAPORE : JTC Corporation has launched the site at Fusionopolis Link, for Fusionopolis Phase 3, for sale by public tender.

The 6,253 square metre site has a 60-year lease and is on the Confirmed List of the Industrial Government Land Sales programme.

With a plot ratio of 4.0, the zoned business park has set aside 40 per cent of its space for offices.

JTC said Fusionopolis is the key development at one-north that supports infocomm technology and media industries, as well as R&D activities in physical sciences and engineering.

The launch of Fusionopolis Phase 3 is set to further enhance growth of research and development in these sectors, strengthening JTC’s efforts in promoting private sector partnership.

The tender for the site will close on May 20.

- CNA/ms

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

COOLING MEASURES TAKING EFFECT, SAY ANALYSTS »« FRASERS TO ADD 4,300 UNITS IN NEXT 2 YEARS

FRASERS TO ADD 4,300 UNITS IN NEXT 2 YEARS

FRASERS TO ADD 4,300 UNITS IN NEXT 2 YEARS

SINGAPORE – Serviced-apartment chain Frasers Hospitality is undertaking its most ambitious expansion project yet.

It has announced plans to add 4,300 serviced-apartment units to its current inventory in the next two years, bringing its total number of units to about almost 10,000.

“Asia, particularly China and India, has been the global economic engine over the past two years and will continue to drive growth as the world climbs out of the recession,” said Mr Choe Peng Sum, CEO Frasers Hospitality.

The company kicked off its aggressive expansion plan with the launch of Fraser Residence Orchard.

Fraser Residence Orchard is Frasers Hospitality’s fourth serviced apartment properties in Singapore.

The company took over the property from The Ascott last November and refurbished it for S$6.5 million.

With occupancy rates for most Frasers apartments at 80 per cent, it plans to add 25 new properties over the next two years in gateway cities like New Delhi, Istanbul, Suzhou and Chengdu.

And by next year, the company aims to manage a total of 64 properties across 37 cities. Frasers Hospitality has grown to 39 properties in 21 cities in the past decade.

Despite a threat of nuclear radiation leak, its Japanese properties are faring well.

“Osaka being further down south from Tokyo actually we are experiencing very high occupancy and we are on a wait list basis,” said Mr Choe.

“Expatriates and families are relocating away into Osaka so we are actually experiencing very high occupancy. We have also a flow of expatriates going into our Seoul properties and our Singapore properties,” he said.

But that is not the case for its operations in Bahrain, which is currently in the eye of the political storm that is sweeping the Middle East.

“Our Bahrain property has been hit in a sense that we were experiencing occupancies of 90 per cent, right now it’s about 40 per cent. So hopefully the situation will ease up,” Mr Choe said.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Site at Fusionopolis Link launched for sale by public tender »« 1,525 FLATS OFFERED IN TWO NEW BTO PROJECTS

1,525 FLATS OFFERED IN TWO NEW BTO PROJECTS

1,525 FLATS OFFERED IN TWO NEW BTO PROJECTS

SINGAPORE – Two new Build-to-Order (BTO) projects – Boon Lay Fields in Jurong West and Compassvale Ancilla in Sengkang – have been launched.

A total of 1,527 new flats are on offer.

Prices at Compassvale Ancilla range from S$77,000 for a studio apartment to S$444,000 for a five-room flat.

Flats at Boon Lay Fields sell for between S$168,000 for a three-room unit and S$391,000 for a five-room flat.

The application period will be reduced to a week.

The HDB will inform applicants of their ballot results within three weeks of the launch.

Selection of flats will start from the fourth week onwards, instead of the ninth week previously.

The faster turnaround will enable applicants to know their queue number for the current launch, before deciding whether to apply for the next BTO launch, said the HDB.

Eligible first-timers applicants earning not more than $$5,000 a month can also apply for the Additional CPF Housing Grant of up to S$40,000.

First-time flat buyers are estimated to use 24 per cent to 30 per cent of their monthly household income to meet their monthly loan payments for flats in Boon Lay Fields and Compassvale Ancilla.

The HDB says that it has ramped up its new flat supply significantly to meet the demand from first-timer households.

Four more BTO projects are planned for launch in April and six more in May.

The BTO supply will be supplemented by the housing units under the Design, Build & Sell Scheme (DBSS) and the Executive Condominium (EC) Housing Scheme.

This year, land sites for 4,000 DBSS flats and 4,000 EC units are scheduled for sale.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

FRASERS TO ADD 4,300 UNITS IN NEXT 2 YEARS »« HOME OWNERSHIP A ‘FUNDAMENTAL POLICY’: MM

HOME OWNERSHIP A ‘FUNDAMENTAL POLICY’: MM

HOME OWNERSHIP A ‘FUNDAMENTAL POLICY’: MM

SINGAPORE – When he took office in 1959, then-Prime Minister Lee Kuan Yew noted homes in fast-growing Asian cities comprised of small rooms which came with high rentals. “Therefore, they decorated their cars as if they were their homes. But these additions have no lasting value,” he said.

With that in mind, Mr Lee and the Government embarked on making Singapore a home-owning society and home ownership a fundamental policy. By the 1980s – and in “a short time” – the Government had housed 85 per cent of the population.

“If we had not helped our citizens to own their homes, Singapore would be very different,” said Mr Lee, who is now Minister Mentor. “Society would not be so stable. Our lives would have been worse off. They have valuable assets in their homes to protect against riots and civil commotion.”

Mr Lee made these remarks on home ownership – which is expected to dominate the hustings during the coming elections – during Saturday’s launch of the Tanjong Pagar Town Council’s five-year masterplan and ABC Waters at Alexandra Canal. The full speech was made available yesterday.

Mr Lee reiterated that home ownership gives every Singaporean “a sense of ownership”.

“Our families own their homes and are rooted to Singapore … Moreover, with National Service, every family must have a stake in a property to defend,” he added.

As Singaporeans take great pride in their homes, Mr Lee said, “it is crucial to prevent our estates from becoming urban slums”.

“As Singapore prospers, the value of their HDB homes also appreciate. Home ownership motivates Singaporeans to work hard and to aspire for a better future for their family, to upgrade to better and bigger flats,” he added.

While the Government has met Singaporeans’ basic needs, it has to “meet the rising aspirations” too, said Mr Lee, as he traced the “HDB story” which reflects Singaporeans’ social mobility.

Mr Lee noted that as younger families began moving out of the older HDB towns, for newer and more modern flats in the late 1980s, the Government introduced the HDB Upgrading Programme – providing new playgrounds, covered linkways, landscaped gardens and open spaces for residents to mingle.

In 1995, the HDB launched the Selective En Bloc Redevelopment Scheme, or SERS, to free up land in the older estates, and to replace them with higher-quality, higher-density flats.

In 2001, with an ageing population, the Government implemented the Lift Upgrading Programme.

“We are near the final phase of its completion, and works will complete by 2014,” Mr Lee noted.

The Minister Mentor stressed public housing cannot be allowed to become obsolete. Which is why HDB embarked in 2007 on its plan to rejuvenate the housing estates – starting with the pilot towns and estates in Punggol, Yishun and Dawson. Towns in Hougang, East Coast and the Jurong Lake areas will soon follow.

By next year, the Government will be laying out the next generation nationwide broadband network “so that everybody will have easy access to the computer, to all information that they will require, and they can video-conference with each other and with families abroad”, said Mr Lee.

But Mr Lee stressed: “We must build upon the strong foundation laid; continue to work hard, and share the fruits of our nation’s progress.”

Source : TODAYonline – MediaCorp Press Ltd’s copyright

1,525 FLATS OFFERED IN TWO NEW BTO PROJECTS »« Former AIG building at Martin road for sale

Former AIG building at Martin road for sale

Former AIG building at Martin road for sale

By Jo-ann Huang | Posted: 22 March 2011

SINGAPORE: A seven-storey office building at 22 Martin Road, formerly known as the AIG Building, has been put up for sale by expression of interest.

The property sits on a freehold land of about 11,473 square feet, says its marketing agent Colliers International.

The 10-year old development has a gross floor area of 34,556 square feet and a net lettable area of 31,603 square feet.

It comprises retail space on the ground floor and office space from the second to seventh floor, as well as 29 car park lots at the basement and ground levels.

The site is zoned for “commercial” use, with an allowable plot ratio of 2.8 and a maximum height of up to 15 storeys.

Under the street block plan for River Valley, it also has high potential to be re-zoned to “residential” use, which is subject to approval from the relevant authorities.

The property is currently fully leased out to AIG at about S$2.8 million. The lease expires in 2012.

The property is along the Robertson Quay, strategically located on the fringe of Central Business District (CBD), says Colliers.

It is within a short drive to Clarke Quay MRT station and has immediate access to several major expressways, including the Central Expressway and Ayer Rajah Expressway.

Colliers International’s executive director of investment services Ms Tang Wei Leng is expecting transaction prices in the area to exceed S$2,000 per square foot.

“Recent prime office spaces in the CBD have been transacted in the region of S$2,300 to S$2,500 per sq ft. For instance, Capital Square recently changed hands at S$2,300 per sq ft, while four strata floors at Prudential Tower were sold at S$2,430 per sq ft. Both properties are of 99-year leasehold tenure,” says Ms Tang.

She adds that the property will appeal to corporate office end users, investors and developers seeking to redevelop the property.

“On the back of a recovering economy, strengthening business confidence, increasing tenant demand and expected rent increases, we expect strong interest for this quality building from corporate office users looking to own their own building,” says Ms Tang.

Alternatively, the developer can redevelop the project into a SOHO style development, which has been popular of late as witnessed in the positive response to The Tennery, SOHO@Central and The Lumiere, says Colliers.

Interested parties are invited to submit their offers to Colliers International by April 21.

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

HOME OWNERSHIP A ‘FUNDAMENTAL POLICY’: MM »« Competition for quality land sites expected to heat up

Competition for quality land sites expected to heat up

Competition for quality land sites expected to heat up

By Jo-ann Huang | Posted: 22 March 2011

SINGAPORE: It’s all about location for property developers who are on the lookout for quality land parcels.

Recent land tenders of government land sites close to MRT stations or regional centres have seen bids as high as S$550 million or S$869 per sq ft per plot ratio.

Market watchers say competition among developers for such sites will heat up, now that developers are churning out projects at a much faster rate.

The government land sales (GLS) programme for the first half of this year comprises 10 land parcels near MRT stations or regional centres.

Five of the land sites have already been released for sale.

Recently, Keppel Land won a tender for a Sengkang site for S$287 million. The site attracted about 11 bids.

A Bedok Reservoir site attracted eight bids earlier this month, with United Venture Development putting in the top bid of S$320 million.

And Capitaland submitted the highest bid of S$550 million for a reserve-list Bishan site. The tender attracted a record 19 bids.

Analysts say the remaining land sites should see keen interest from developers, now that the property boom is tapering off and developers are re-entering the land market in a big way to deploy their cash.

Colin Tan, head of research & consultancy at Chesterton Suntec International, said: “For the past two years, most of the developers have been highly profitable. This is a dilemma now. They have lots of cash and what do they do with it? That’s why you see quite a good participation rate for most of the state land sales.”

Analysts say competition for quality land sites will strengthen, as developers buy prime land sites to hedge against the risk of further government cooling measures and as home sales moderate. This is because a convenient location is a key selling point for property projects.

Nicholas Mak, executive director of research at SLP International, said:”(Previously) the developer might require anywhere from 12 months to 18 months from the time they acquire the land to the time they launch (homes) for sale. But nowadays this process may be shortened from 7 months to 12 months. What the developers are doing is try to reduce the risk of future market turbulence…if they are able to bring the product to the market as soon as possible.”

But land sites located near public transport hubs and everyday amenities do not come cheap.

Analysts say smaller developers may be priced out of such land tenders.

They will have to made do with public housing sites, which are less profitable than private land sites. Or, they will have to buy land at enbloc sales — which are time-consuming and often contentious.

- CNA/ir

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Former AIG building at Martin road for sale »« One Finlayson Green sells for S$227m

One Finlayson Green sells for S$227m

One Finlayson Green sells for S$227m

Posted: 22 March 2011

SINGAPORE : One Finlayson Green, a freehold commercial building, has been sold to Kerisvale Pte Ltd for S$227 million.

Jones Lang LaSalle (JLL), which brokered the deal on behalf of a fund managed by Lucrum Capital, said Kerisvale consists of a group of private investors and the sale price was the highest per square foot achieved this year at about S$2,520, or S$2360 per square foot on the strata area.

The building, comprising a 19-storey office tower with a total net lettable area of about 89,950 square feet, is located at the junction of Raffles Place and the New Downtown.

The retail unit on the first and second floors is currently occupied by AIA.

JLL said the building has obtained in-principle strata-title approval from the relevant authorities and each unit is about 6,437 square feet.

“With the rising office rental market and the limited availability of freehold office buildings in core Raffles Place, the interests in One Finlayson Green was very strong when it was put up for Expression of Interests late last year,” said Stella Hoh, national director and head of investments at Jones Lang LaSalle.

She added: “The property attracted good interest from both strata-titled and enbloc buyers. After much negotiation between the buyer and seller, the deal was finally sealed. The buyer intends to keep the building for long-term investments.”

One Finlayson Green is the third commercial deal brokered by Jones Lang LaSalle this year, following the Singapore Technologies Building in Tanjong Pagar and PoMo in Selegie.

- CNA/al

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Competition for quality land sites expected to heat up »« HDB receives 6 bids for Choa Chu Kang site

HDB receives 6 bids for Choa Chu Kang site

HDB receives 6 bids for Choa Chu Kang site

Posted: 22 March 2011

SINGAPORE : The Housing and Development Board (HDB) has received six bids for the land parcel proposed for executive condominium (EC) housing at Choa Chu Kang Drive.

The 49,250 square metre site was launched for sale on January 21 and closed at noon on Tuesday.

The highest bid came from Camborne Developments at S$170.1 million, followed by a joint bid of S$159 million by FCL Tampines Court and Keong Hong Construction.

The lowest bid of about S$117.2 million was submitted by Mezzo Development.

The 99-year leasehold site has a maximum gross floor area of 49,251 square metres.

HDB said it will announce the award of the tender at a later date after the bids have been evaluated.

CBRE Research said the top bid of S$170.1 million reflects S$321 per square foot (psf) per plot ratio and translates to a breakeven cost of around S$650 psf.

Li Hiaw Ho, executive director, CBRE Research, said: “The subject site is situated at Choa Chu Kang Drive, adjacent to Mi Casa condominium which is currently under construction. It is just a few minutes’ walk from Choa Chu Kang MRT station and Lot 1 shopping mall.”

He added: “In January-February 2011, units in Mi Casa were sold at around S$800 psf. It is likely that the new EC project can fetch around S$700 psf on the average, a differential from the price of private condominiums to take into consideration the eligibility conditions attached to EC projects.”

- CNA/al

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

One Finlayson Green sells for S$227m »« Prime Orchard site put up for tender

Prime Orchard site put up for tender

Prime Orchard site put up for tender

By Jo-ann Huang | Posted: 21 March 2011

SINGAPORE : A prime Orchard Road site, situated next to International Building and near Orchard MRT, has been put up for tender.

It is zoned for commercial use and has a potential gross floor area of about 16,000 square metres.

Notable buildings in the vicinity include Claymore Plaza, Pacific Plaza, Shaw House, Shaw Centre and the Royal Thai Embassy.

The successful tenderer will have the choice to develop and manage offices, retail shops, or a hotel, or a mixed development on the site, up to a maximum building height of 30 storeys, subject to approval.

Sole marketing agent Jones Lang LaSalle (JLL) said the tender will close on April 29.

It said the immediate proximity is the most sought-after and tightly held hotel and retail location in Singapore and includes Grand Hyatt Singapore, Hilton Singapore, Singapore Marriot Hotel, Pan Pacific Orchard, Royal Plaza on Scotts and Ion Orchard.

Provisional permission for the redevelopment of the site to a new 23-storey office tower with carparks and restaurants was obtained on February 28 this year. The development charge for the redevelopment based on the proposal approved under the said Provisional Permission will be borne by the lessor.

Quek Soh Hoon, national director and head of commercial investments at Jones Lang LaSalle, said: “We expect keen interest in the site as it represents an extremely rare opportunity for a long-term lease of a prime site along Orchard Road.

“The flexible development options for the site will appeal to a wide group of investors given that Orchard Road is the prime retail and entertainment belt in Singapore.”

She added: “Supply of retail, commercial or hotel space along Orchard Road is extremely limited.”

Tom Oakden, senior vice president of investment sales at Jones Lang LaSalle Hotels, said: “Orchard Road is arguably one of the most tightly held hotel pitches, not just in Singapore but in Asia, with opportunities for hotel development only coming along every ten years or so in this prestigious area.”

He added that “with the strong underlying fundamentals of Singapore’s hotel market” together with growing investor and developer demand, JLL expects the site to appeal to domestic and regional groups that are keen to exploit the potential of a hotel in the prime location.

- CNA/al

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

HDB receives 6 bids for Choa Chu Kang site »« Foreign banks offering more attractive home loans