Kwek Leng Beng: Property slowdown not widespread - Singapore

Kwek Leng Beng: Property slowdown not widespread  - Singapore

Lower prices may be due to panic-selling by a few owners, says CDL chief 

By Fiona Chan, Property Reporter 

CITY Developments (CDL) chief Kwek Leng Beng is not convinced that the property market slowdown is as widespread as it seems, despite the recent easing in home sales and prices.
The executive chairman of Singapore’s second-largest developer said the lower prices may just be the result of ‘panic-selling’ by a few owners who had bought their high-end homes cheap.

‘There is a bit of panic in the market, and what has gone up very high in a straight line will also come down,’ Mr Kwek said, referring to how property prices have soared in the last few years. But he added that a few lower-priced sales may not be representative of the overall high-end market.

‘Bear in mind, just because of a couple of low transactions, one swallow doesn’t make a summer,’ he said yesterday at the release of CDL’s second-quarter financial results. He added that few buyers so far have defaulted on their purchases.

Mr Kwek also brushed aside concerns about a looming oversupply of homes in the market. He cited higher land and building costs, pressure on the construction sector that may result in completion delays, as well as possible financing difficulties faced by developers who want to build new homes.

CDL yesterday posted a 15 per cent drop in net profit to $165.2 million for the three months to June 30. It said this was due to the absence of a one-off tax credit given last year, without which net profit would actually have risen 0.6 per cent. Revenue inched up 0.7 per cent to $780.8 million.

But Mr Kwek stressed that the current slowdown is ‘different from the Asian financial crisis of 1997′, saying CDL has ‘very little unsold residential stock, a healthy balance sheet and locked-in profits yet to be recognised from its pre-sold residential units’.

Between now and December, the group plans to launch phase 2 of Livia in Pasir Ris, as well as two new projects: The Arte in Thomson Road and The Quayside Collection at Sentosa Cove.

Earnings per share dropped to 17.5 cents in the second quarter, from 20.7 cents a year ago, CDL said. But group net asset value rose to $5.77 as at June 30, from $5.72 as at Dec 31 last year.

The group also said it has signed up all the anchor tenants for its City Square mall in Kitchener Road and is filling up the rest of the space steadily.

CDL’s new debt issue to tap Islamic sources
CITY Developments (CDL) is planning to raise funds through what will be Singapore’s first Islamic unsecured financing arrangement.
The developer said it will issue a $1 billion Islamic multi-currency medium-term notes programme. This will allow CDL to tap new markets and investors, including Islamic sources, for possible acquisitions in a slowing economy.

‘It is to keep ourselves liquid so we are ready to bottom-fish at any time,’ said CDL executive chairman Kwek Leng Beng.

The group said in a statement it is ‘optimistic that under this challenging economic situation lies tremendous opportunities’. This deal will give it a ‘diversified, alternative and non-traditional financing stream to further enhance its war chest.’

FIONA CHAN

Source : Straits Times - 15 Aug 2008

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Singapore Building projects busting budgets

Singapore Building projects busting budgets

Shortage of construction workers and materials causing costs to shoot up by as much as 50%

By Francis Chan

SOME building projects in Singapore are facing cost blowouts of 30 to 50 per cent above their original budget as higher construction costs bite hard.
The continuing shortage of construction workers and building materials has left project bosses with little choice but to pay upfront for the far higher costs or abandon the project.

Anecdotal evidence suggests that building budget blowouts are far bigger than official figures indicate.

One project that has been hit by higher building costs is the Khoo Teck Puat Hospital in Yishun.

The chief executive of Alexandra Hospital, Mr Liak Teng Lit, who is overseeing the construction project, said some parts of the project face cost hikes of 30 to 40 per cent. The original total cost of the project was $400 million.

Another project that has been hit is Safra’s Jurong clubhouse. Costs for the project have shot up 30 per cent since its groundbreaking ceremony in February last year. Its original budget: $30 million.

And earlier this month, the Health Ministry announced that it would provide Ren Ci charity with additional funding of ‘up to $9.3 million’ for its new hospital at Irrawaddy Road.

This was to help cover the hike in construction costs for the medical centre - now set to cost up to $42.4 million.

Although Ren Ci declined to comment on the issue, previous reports indicated that the initial budget for the project was $30.8 million.

One of the biggest cost increases reported this year involves the Singapore Island Country Club (SICC). The club was reported in June to have sought club members’ approval to increase its budget to construct a new clubhouse from $60 million to $90.3 million - a whopping 50 per cent rise.

The Building and Construction Authority reported that construction costs rose 20 to 30 per cent last year.

A statement by National Development Minister Mah Bow Tan last month said a rise of another 3 to 5 per cent was recorded in the first quarter of this year.

Mr Goh Ngan Hong, president of the quantity surveying division at the Singapore Institute of Surveyors and Valuers (SISV), said: ‘Based on leading quantity surveyor firms and general industry feedback, construction cost was estimated to have increased by about 20 to 30 per cent in 2007.’

He added that costs were ‘estimated to have increased by another 10 to 15 per cent by mid-2008′.

Market watchers and most industry players such as property developers, contractors, suppliers and construction-related firms that The Straits Times spoke to broadly agreed with SISV’s figures.

However, a number of projects surveyed by The Straits Times painted a bleaker picture.

Project bosses cited the escalating cost of essential construction materials, including sand, concrete, steel and other base metals. Another problem is the lack of construction industry manpower.

‘This spike in basic plant, equipment, materials and labour costs is affecting construction project budgets,’ said the executive director of the Singapore Contractors Association, Mr Simon Lee.

He said such cost increases would inevitably cause delays in the completion of contracts, which was ‘not good for business’.

The construction cost hikes have affected big and small projects alike.

The Marina Bay Sands and Resorts World at Sentosa integrated resorts have also fallen prey to cost hikes.

Marina Bay Sands was recently reported to have blamed soaring prices of building materials for its cost rising from an estimated US$3.6 billion ($4.9 billion) to US$4.5 billion. And last November, Resorts World at Sentosa bumped up its budget to $6 billion from $5.2 billion.

The Singapore Manufacturers’ Federation (SMa) took a more contrarian view of construction costs.

‘Although raw material and labour prices have risen significantly over the past two years, costs or selling prices of most construction-related materials… have by and large not risen more than 15 per cent year-on-year,’ said Mr Alan Lee, chairman of the SMa’s building products and construction materials industry group.

When asked what measures the construction industry may put in place to tackle the problem of rising costs, the SISV said: ‘Passing the higher costs to the property purchasers and other consumers - this seems to be the likely case.’

Source : Straits Times - 14 Aug 2008

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BHP Billiton to lease Singapore office space at MBFC

BHP Billiton to lease Singapore office space at MBFC

Aussie firm will take up 150,000 sq ft at Marina Bay Financial Centre’s Tower 2

By KALPANA RASHIWALA

(SINGAPORE) Mining and resources giant BHP Billiton of Australia is leasing about 150,000 sq ft at Marina Bay Financial Centre, BT understands.

With a view to grow: The space BHP Billiton will be leasing at MBFC is said to be more than twice its existing space in S’pore, suggesting expansion plans here —
The space will be in MBFC’s 50-storey Tower 2, under the mega project’s first phase, which is slated for completion in second quarter 2010.

BHP Billiton is one of the world’s biggest producers of primary aluminium, copper, lead, zinc, nickel, iron ore and metallurgical coal. It is also a major producer and marketer of export thermal coal and has a significant oil and gas business with production operations in Australia, the UK, Gulf of Mexico, Algeria and Pakistan, according to information on the group’s website.

Singapore is already one of BHP Billiton’s three centralised marketing hubs (the other two are in The Hague in The Netherlands and Antwerp in Belgium) focusing on the Asian energy market, base metals, stainless steel materials and carbon steel-making raw materials. The centre in The Hague focuses on aluminium, petroleum and the European energy coal market, while the Antwerp office serves the group’s diamond customers around the world.

BHP Billiton’s Singapore operations are currently located at Capital Tower and Springleaf Tower, both near Tanjong Pagar MRT Station. Market watchers expect the group to give up its existing premises when it moves to MBFC. The 150,000 sq ft or so it will be leasing at MBFC is said to be more than twice the group’s existing space in Singapore, suggesting expansion plans in Singapore.

BHP Billiton, which is listed on the Australian and London bourses, posted profit after taxation of US$13.5 billion for the year ended June 30, 2007, up 28.2 per cent from the preceding year.

Some property market watchers were pretty impressed with news of BHP Billiton’s leasing deal at MBFC given the slower office leasing market.

MBFC is iconic of Singapore’s ambitions to be a major financial centre. Including the latest leasing deal with BHP Billiton, MBFC’s 2.9 million sq ft total net lettable area of offices is about 60 per cent pre-committed.

Monthly rents in the development are in the region of $16 per sq ft, said Kevin Wong, chief executive of Keppel Land, at a results briefing last month. KepLand is developing MBFC jointly with Hongkong Land and Li Ka-shing’s Cheung Kong Holdings/Hutchison Whampoa.

However, BHP Billiton will probably be paying less than the $16 psf rental being quoted, given the size of space it is leasing, market watchers reckon.

Earlier tenants clinched at MBFC include Standard Chartered, which is taking 508,298 sq ft at the 33-storey Tower 1, also in the project’s first phase. Barclays and American Express International have signed up for Tower 2, also in Phase 1 and where BHP Billiton will be housed.

The second phase of the project, expected to be completed in 2012, will include Tower 3, with about 1.3 million sq ft of offices, of which about 700,000 sq ft have been leased by DBS.

Source : Business Times - 14 Aug 2008

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SC Global’s Q2 net rises 117% to $11.47m

SC Global’s Q2 net rises 117% to $11.47m

By ARTHUR SIM

SC Global Developments has reported a net profit of $11.47 million for Q2 2008, up 117 per cent from the $5.28 million in the year-ago period.

Upmarket homes: The group saw revenue recognition from residential units sold in its Singapore development projects such as The Marq on Paterson Hill
Revenue for the quarter was $32.4 million, marginally lower by 5 per cent compared with $34 million in Q2 2007.

The group saw revenue recognition from residential units sold in its Singapore development projects, namely, The Marq on Paterson Hill and Hilltops. This was also the first quarter of revenue recognition for Hilltops.

SC Global said that its development project under its Kairong brand in Shenyang, China, called Kairong International Gardens, also made a positive contribution for the quarter as construction progressed.

Gross profit for the quarter increased 116 per cent to $16.5 million compared with $7.7 million in the same period last year. Gross margins were also higher at 51 per cent for the quarter versus 23 per cent in 2007.

On a half year basis, gross profit for 1H 2008 was $41.6 million, up 48 per cent compared with $28.1 million a year ago.

SC Global said that higher selling prices achieved for the projects coupled with management of construction costs enabled the group to attain a high gross margin of 55 per cent for 1H 2008 against 32 per cent recorded in the year-ago period.

The group’s associate company in Australia, AVJennings Ltd (AVJ), reported that its pre-tax profit for the full year ended 30 June 2008 was A$15.5 million (S$18.8 million) compared with A$17.8 million for the 15-month period ended 30 June 2007 (A$14.2 million annualised).

In Q208, the group increased its investment in AVJ through the subscription of its full entitlement under a rights issue undertaken by AVJ and acquired 32.6 million new shares at an issue price of A$0.67 each, increasing its shareholding from some 43 per cent to about 49 per cent.

Earnings per ordinary share for the quarter period was 2.9 cents compared with 1.65 cents (adjusted) a year ago.

At the close of trading, SC Global shares ended at $1.10 per share, down one cent.

SC Global added that operationally, its developments under construction are proceeding as planned and new projects in Ardmore Park and Sentosa Cove are continuing to progress in the planning stage.

Source : Business Times - 14 Aug 2008

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Just one bid for Singapore Tampines condo site

Just one bid for Singapore Tampines condo site

By Joyce Teo, Property Correspondent

THE property slowdown was clear for all to see yesterday when the tender for a condo site overlooking Bedok Reservoir closed with just one bid - and at a price well below expectations.
The Urban Redevelopment Authority (URA) will likely refuse to award the 3.2ha site, given the poor offer, consultants said.

Boon Keng Development bid $84.6 million, or $118 per sq ft (psf), for the 99-year leasehold site but consultants had expected anything from $150 to $230 psf.

Apartments on the site could sell for up to $700 psf, they said.

If Boon Keng does secure the site at the junction of Tampines Avenues 1 and 10, its break-even would be about $480 to $500 psf. It would then be able to sell the apartments for around $600 psf, said Knight Frank’s director of research and consultancy, Mr Nicholas Mak. But he does not expect the URA to sell the land at such a low price.

The increasingly cautious mood among developers explains why the site drew only one bid.

‘If this site was not on the confirmed list, it may not be triggered for tender,’ said Mr Mak.

Confirmed list sites are tendered out at pre-determined dates regardless of whether developers have shown interest.

‘If confirmed list sites were launched for tender in an increasingly uncertain market, they would attract opportunistic bids, such as the one we witnessed today,’ said Mr Mak.

Savills Singapore’s director of business development and marketing, Mr Ku Swee Yong, who had tipped bids of $150 to $180 psf for the site, said: ‘Most developers have ample land, so unless a choice plot is available, they won’t bid.’

Rising building costs are forcing developers to look for cheaper land. In such a climate, the Government has to decide whether to lower reserve prices to ensure a steady supply of mass-market private housing, or maintain the value of plots on the sales list as they form part of the nation’s reserve, said Mr Mak.

He does not expect any residential site on the government sales list to be triggered for tender unless reserve prices are lowered. If not, there could be a sharp drop in the sale of residential land from the Government this year.

Singapore tenders out land on the reserve list if developers indicate interest by committing to a minimum bid acceptable to them.

Source : Straits Times - 13 Aug 2008

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SC Global to launch Singapore Martin No38

SC Global to launch Singapore Martin No38

By ARTHUR SIM

SC GLOBAL will launch Martin No 38 next month at an average price close to $2,000 per square foot.

Sleek beauty: Artist’s impression of the development, designed by award-winning architect Kerry Hill. It will launch at an average price close to $2,000 psf.
The company said in a statement yesterday that the 91-unit development in Martin Road, near Mohammed Sultan Road and Clarke Quay, will mostly comprise one-plus-one bedroom and two-bedroom apartments ranging from 969-1,130 sq ft. There will be a limited number of larger two-plus-one and three-bedroom apartments, ranging from 1,335-1,485 sq ft.

Knight Frank director (research and consultancy) Nicholas Mak said the pricing appears a little ‘bullish’ but the developer may feel the project’s ‘design’ merits this.

A unit in nearby Robertson Blue sold recently for around $1,800 psf, he said.

And in March, it was reported that about 30 units at Martin Place Residences in Kim Yam Road sold for an average price of of about $1,800 psf after discounts.

SC Global is best known for developing high-end niche projects. And according to its chairman and chief executive officer Simon Cheong: ‘There is always room for the right product. Martin No 38, with the SC Global reputation for quality, will be unique and original. We are confident it will be well received.’

The development is designed by award-winning architect Kerry Hill. It is based on warehouse lofts in New York and London and features high ceilings and seamless interior spaces.

SC Global says: ‘An austere and beguiling industrial aestheticism pervades the details of this development, from the blackened tap fittings to the sheet-metal panels in the bathrooms, with their exposed bolt heads, unplastered interior concrete walls, exposed plywood edges of the cabinetry and acres of unvarnished timber.’

SC Global bought the site in 1999 but deferred development until the area had ‘rejuvenated itself and the context for this housing concept became ripe’.

SC Global projects under construction include The Marq on Paterson Hill and Hilltops at Cairnhill. The group has a landbank of more than 1.1 million sq ft of gross floor area in the Orchard Road and at Sentosa Cove.

Source : Business Times - 13 Aug 2008

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Solitary, low bid for Singapore Tampines site

Solitary, low bid for Singapore Tampines site

At $118 psf ppr it is below expectations, but analyst says site is not plum anyway

By KALPANA RASHIWALA

(SINGAPORE) Cautious sentiment, soaring construction costs and a not-so-hot site all combined to yield just one bid at a state tender yesterday for a 99-year leasehold condo site at Tampines Ave 1/Ave 10 facing Bedok Reservoir.

The sole bid of about $118 per square foot per plot ratio (psf ppr) was below general market expectations which ranged from $150 to $230 psf ppr.

The sole bidder at yesterday’s tender was Boon Keng Development, a unit of Midview group, which is involved in the construction and property businesses.

Most property consultants reckon there’s only a slim chance of the site being awarded.

Looking at the $118 psf ppr sole bid at yesterday’s tender, property consultants told BT that no 99- year leasehold condo/ apartment site has been sold at a lower price than this since 1991.

Yesterday’s top bid, which was for a private condominium site, was also below the $137 psf ppr at which the government sold a Design, Build and Sell Scheme site in Simei for development into Housing & Development Board flats in June.

‘This outcome is negative for property market sentiment. It may be even worse for sentiment if the government actually awards the site as that could affect land valuations for other residential sites too,’ Knight Frank director (research and consultancy) Nicholas Mak said.

However, Savills Singapore director (marketing and business development) Ku Swee Yong noted that the Tampines site was not a plum one to begin with.

‘It does not have good attributes in terms of transportation links. Neither is it near major amenities,’ he said.

‘Generally, developers already have good landbanks, so unless a very good site comes along, we’ll not see too much participation,’ Mr Ku said.

‘But if a site with solid transportation connection and amenities comes up, like the Ophir Road white site or the condo plot next to Tanah Merah MRT station, these will be attention grabbers,’ he added.

The tender for the Tanah Merah plot closes on Sept 9 while that for the Ophir Road plot closes in December.

The $118 psf ppr bid for the Tampines plot, plus construction costs of about $320-350 psf of gross floor area, reflects a breakeven cost of about $500-550 psf for a new condo project.

Units in completed condos around the Bedok Reservoir area have been selling at between $550 psf and $680 psf, although the new Waterfront Waves condo which is being built on a choice spot along the reservoir has achieved average prices of about $750 psf for pool-facing units and $800 psf for reservoir-facing units.

The latest plot on Tampines Ave 1/Ave 10 can be built into a condo with about 650 units. It was offered through the confirmed list of the Government Land Sales Programme.

Debating the likelihood of the plot being awarded, a property consultant who declined to be named said: ‘There was just one bid. But I hope the government will award this site if it wants to show foreign investors that Singapore is a competitive place to invest in.’

Knight Frank’s Mr Mak said that the government will gradually lower reserve prices for sites offered through the Government Land Sales Programme, to take into account rising construction costs and weak property market sentiment.

‘It’s walking on a tight rope. The government can’t trim reserve prices too much as that may send a negative signal to the market; besides it also has to protect the nation’s reserves. But on the other hand, if the reserve prices are maintained too high and sites can’t be awarded at state tenders, the government may not be able to ensure a steady state of supply to avoid busts and booms in the property market,’ Mr Mak said.

Source : Business Times - 13 Aug 2008

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Russell to double Asia property investments

Russell to double Asia property investments

(SINGAPORE) US-based Russell Investments, which manages over US$211 billion in assets, wants to boost its exposure to Asian real estate as it sees growing markets in China and India withstanding a global downturn.

The company, which raises money from institutions such as pension funds and invests them with other fund managers, said it expects to more than double its investments in Asia properties over the next three years, from about US$300 million currently.

‘Our clients tell us they want to be in Asia property, and we go where our clients want to go,’ said Martin Lamb, newly appointed Asia Pacific head of property for Russell, the funds and indices unit of Northwestern Mutual Life Insurance.

‘Regardless of the downturn in the US and Europe, there is a strong domestic need particularly in India and China that continues to fuel demand for housing and retail,’ said Mr Lamb, who is Russell’s first property chief to be based within the region.

An increasing number of financial and property firms have set up funds to invest in Asia property in the past year, including the property investment units of Jones Lang LaSalle and Prudential, and Singapore developers such as CapitaLand and Keppel Land. — Reuters

Source : Business Times - 12 Aug 2008

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State property at Singapore Changi on offer

State property at Singapore Changi on offer

The parcel has a land area of 104,044 sq ft and GFA of 54,864 sq ft

By UMA SHANKARI

HOTEL operators can look forward to another state property to develop - this time at Changi.

The Singapore Land Authority (SLA) yesterday launched the plot - part of a former military camp - for public tender.

The tenancy, for an initial three years, is renewable up to 2018. The guide rental is $28,500 a month.

The parcel has a land area of 104,044 sq ft and a gross floor area (GFA) of 54,864 sq ft. It comprises two three-storey buildings and a shed.

‘SLA is offering a number of vacant state properties for adaptive re- use, such as hotels and lifestyle attractions, in line with the government’s vision for Changi Point as a seaview hotel, resort and recreational destination,’ said Teo Cher Hian, SLA’s director for land operations (private).

Since last year, SLA has awarded four state properties in the Changi area for adaptive commercial re- use. Two are now restaurants, while the former Changi General Hospital is being turned into a spa resort.

Groundbreaking takes place next month and the resort is expected to be ready by next year.

The Singapore Tourism Board (STB) says leading hoteliers have expressed keen interest in the latest property.

According to STB, mid- tier and economy hotels enjoyed average room occupancy rates of 85 and 87 per cent respectively in the first half of 2008.

Nicholas Mak, director of research and consultancy at Knight Frank, said the successful tenderer for the Changi plot will have to come up with a unique concept.

He said the hotel needs to play on Changi’s laid- back character and is likely to be mid-tier.

The first state property to be converted for hotel use, at Chin Swee Road, is a boutique establishment with 140 rooms. It officially opened in mid-May, with an initial occupancy rate of about 50 per cent.

Source : Business Times - 12 Aug 2008

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Singapore En bloc tussles take nasty turn as market cools

Singapore En bloc tussles take nasty turn as market cools

One of the vandalised cars at Laguna Park. The estate’s owners are engaged in an acrimonious battle over a collective sale, with vandalism among various tactics to ‘persuade’ dissenters to sign.

NAME calling: check. Anonymous letters: check. Scratched cars and damaged property: check.
Residents of an East Coast condominium are now entering the next phase of what has become an especially fractious en bloc sale: finger-pointing.

At a Laguna Park meeting last Saturday, residents against the collective sale squared off against those in favour. They each blamed the other for a recent spate of vandalism which saw cars doused with what was likely to be acid.

The situation is the latest example of en bloc battles that are bleeding the neighbourliness out of neighbourhoods. As the fever for collective sales cools and profits thin, some insiders say the battles are becoming nastier.

Property consultant CBRE says a total of 112 sites sold for $12.45 billion last year. So far this year, six sites have been sold for $360.03 million.

Residents in some estates have seen a surge in pressure tactics, from name-calling and flyers shoved into letter boxes to paint thinner poured on cars.

But just who is behind the crimes is a matter of much debate.

En bloc vandals work on the sly and have yet to be caught, but those in the property industry feel that investors are the ones playing dirty.

Property consultant David Chia said that the crimes are unlikely to have been committed by long-time owners, as they would not want to risk the embarrassment of being found out.

‘This narrows it down to investors who have nothing to lose,’ he said.

Many of these investors bought multiple flats at the height of the en bloc fever last year and are eager to sell them off in the face of a cooling property market.

But investors such as Mr Simon Teh, 50, disputed the accusations: ‘Why should we go and fight and vandalise cars? That doesn’t help us get 80 per cent approval for the sale and, worse still, we can get jailed.’

Mr Patrick Kumar, 53, who has been involved in three collective sales, agreed: ‘Violence will just harden a person’s sentiment not to sign.’

As an investor, he said, he was ‘more likely to placate the residents’. ‘Investors are there for the money, not for the violence,’ he explained.

Instead, he passed the buck to owners living in the condominiums, saying some might be anxious to catch the tail end of the en bloc wave and cash out.

Another bogeyman cited by unhappy home owners: agents appointed by the sales committee, who usually collect a fee of 0.2 per cent to 1.5 per cent of the property value.

Veteran ‘en blocker’ Mr Kumar said agents are the ones who ‘rile people up’ and keep track of who has signed the collective sale agreement and who has not.

But Mr Jeremy Lake, CBRE’s executive director of investment properties, maintained otherwise.

He said: ‘We will be proactive, but we also know that if we push too far, it would be counter-productive.

‘In fact, we do take appropriate steps to dissipate tension during meetings.’

Property consultants who deal with en bloc sales say the ugliest cases, like in Laguna Park, are rare.

More common, said Mr Karamjit Singh, the managing director of Credo Real Estate, are shouting matches during residents’ meetings.

Property firm Savills’ director of marketing and business development Ku Swee Yong said: ‘When it comes to en blocs, even educated people become idiots.’

LIM WEI CHEAN & MELISSA SIM

Source : Straits Times - 11 Aug 2008

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Second state property in Changi offered for Singapore hotel use

Second state property in Changi offered for Singapore hotel use

A SECOND state property, which is part of a former military camp in Hendon Road, in Changi, is put up for public tender on Monday for dedicated hotel use.

The site has a land area of 9,666 square metres, slightly larger than a football field with a gross floor area (GFA) of 5,097 square metres. It comprises two blocks of three-storey buildings and a covered shed.

The tenancy, with a guide rental of $28,500 a month, is for an initial term of three years. renewable up to 2018, said the Singapore Land Authority (SLA) on Monday.

SLA said the land is well suited for hotel use as the Changi area is being transformed into an exciting destination for locals and tourists alike with its wide ranging leisure, recreational and lifestyle attractions.

It is also conveniently located next to a park connector, a walking route along Netheravon Road from Cranwell Road to Changi Village, and the Changi Point boardwalk.

More buzz can also be expected with the introduction of motor sports near the Changi Beach Park, as announced by the Government.

The first state property that has been converted for hotel use is at No. 175A Chin Swee Road.

Today, it is a boutique business hotel called ‘Hotel Re!’ with 140 rooms. It officially opened for business in mid-May with an initial occupancy rate of around 50 per cent.

Since last year, SLA has awarded four state properties - in Lorong Bekukong, Turnhouse Road and the former Changi Hospital) - in the Changi area for adaptive commercial re-use after receiving strong response.

Two of them are now restaurants while the former Changi General Hospital at Halton Road is being transformed into a spa resort. The groundbreaking will take place next month and the development is expected to be ready by next year.

The Government, on its part, has upgraded the car parks at Changi Village and provided additional car park lots at Turnhouse Road.

Mr Teo Cher Hian, director of Land Operations (Private) Division, said: ‘SLA is offering a number of the vacant State properties for adaptive re-use such as hotels and lifestyle attractions in line with the government’s vision for Changi Point as an attractive and rustic seaview hotel, resort and recreational destination’.

‘This latest property will add greater buzz and vibrancy to the Changi area’.

According to the Singapore Tourism Board (STB), leading hoteliers have expressed keen interest in this property.

Ms Caroline Leong, Director, Travel Services & Hospitality Business, STB said: ‘The STB encourages the development of different types of accommodation to add to the hotel mix available here.

‘With its lush greenery and historical charm which the old military barracks lend, a hotel development on the former Changi Camp site will provide an ideal alternative to visitors who prefer staying amidst a rustic environment’.

According to STB, mid-tier and economy hotels enjoyed healthy average room occupancy rates of 85 per cent and 87 per cent respectively in the first six months.

Source : Straits Times - 11 Aug 2008

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Hundreds of Singapore Commonwealth Drive households to get new flats

Hundreds of Singapore Commonwealth Drive households to get new flats

By Michelle Tay

HUNDREDS of households in Commonwealth Drive will be offered new flats as part of the Housing Board’s latest redevelopment exercise.

The 669 households in the 44-year-old precinct near Tanglin Halt can opt to move to a new site across the road when their current homes are ‘developed for residential use’ next year, the HDB announced yesterday.

Mr Baey Yam Keng, the adviser to Tanjong Pagar’s grassroots organisations, told residents of the plans during the Queenstown National Day celebration dinner last night.

Blocks 74 to 80 in Commonwealth Drive will be vacated, and about 730 two- to five-room replacement flats will be built on the other side of the road under the Selective En-bloc Redevelopment Scheme (Sers).

The old blocks have 10 floors. The new ones will go as high as 40 floors.

Eligible flat owners can register for their replacement flats in about a year.

Construction will start at the end of next year and be completed by late 2012 or early 2013.

Sers involves redeveloping selected old blocks of flats, with residents rehoused in new and better units nearby.

Owners are compensated for their homes at the prevailing market rate. They get a 20 per cent discount on their new flats. They are also assured of flats at the new site, so they can continue living with the same neighbours.

If a resident opts to move elsewhere, he can sell the rehousing benefits to an eligible buyer and use the proceeds to buy a resale flat in his preferred location.

This Sers plan will also involve 24 rental shops and two rental eating houses at the affected blocks.

Eligible shop and eating house tenants will get an ex-gratia payment of $60,000 per tenancy and a 10 per cent discount on their successful bids for other HDB rental commercial properties.

Source : Channel NewsAsia - 09 Aug 2008

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S’pore cuts 2008 GDP growth forecast to 4%-5%

S’pore cuts 2008 GDP growth forecast to 4%-5%

By S Ramesh/Lee Siew Hoon,

Singapore cuts 2008 GDP growth forecast to 4%-5%
National Day Message filmed in HD format at Sri Temasek for the first time
Special Report
• National Day 2008

SINGAPORE: Singapore Prime Minister Lee Hsien Loong, in his National Day message, has cut the 2008 GDP growth forecast to between 4 per cent and 5 per cent from an earlier estimate of between 4 per cent and 6 per cent.

He also said the country faces a tough year ahead as it is beginning to feel the impact of a US slowdown.

“For the whole year, we expect growth to be between 4 and 5 per cent,” Mr Lee said in his annual message, which was televised on the eve of Singapore’s 43rd birthday.

Mr Lee said the Singapore economy had expanded by 4.5 per cent in the first six months of 2008.

“Singapore’s economy has so far been partly buffered, because we’ve been carried along by the vibrancy of the Asian region. But Asian economies are starting to feel the impact of America’s problems, and so are we. We must therefore prepare ourselves for a bumpy year ahead,” he said.

Mr Lee acknowledged the problems Singaporeans are facing are due to global inflation. And while the government cannot prevent prices from going up as they are worldwide, it is trying to lighten the burden on Singaporeans through schemes like Workfare and ComCare.

“We are doing the next best thing: to put in place effective relief measures, and provide the poor and the needy with the help they need. We must look beyond immediate problems like the cost of living, to understand what is happening in the world around us, discover new opportunities and tackle our longer-term challenges,” he said.

The annual message is seen as a prelude to the National Day Rally, where the Prime Minister goes into further detail on the long-term challenges facing the country.

In the televised message on Friday, Mr Lee highlighted three other points.

First, the upgrading of Singapore’s economy: to do so, there must be investment in its people. One way is through education. To that end, Singapore is building a fourth university which will take its first batch of students in 2011, well ahead of the original target of 2015. The publicly-funded university will have its campus in Changi.

The second point Mr Lee highlighted was how to encourage Singaporeans to have more children to boost the country’s total fertility rate, which currently stands at only 1.29

PM Lee said: “We can create an environment where Singaporeans see them (children) as a natural and important part of life, and where young couples get support in starting families. We have looked at this comprehensively and will take further steps to address the practical problems which couples face.”

Mr Lee also spoke of adapting Singapore to be able to educate and engage what he called “cyber-citizens”.

He said: “We must adapt ourselves to it, and use it to educate and engage our cyber-citizens. We will evolve our policies and rules, our economy and society, to take full advantage. We will continue to open up our system progressively.”

Mr Lee hinted that the country will continue to open up space for political and societal debate, saying it is the “right way to go”. But he also said that as the country continues to open up, its new generation of citizens need to understand that all freedoms come with responsibilities.

For the first time, this year’s National Day Message was shot on high-definition video.

Another first - it was filmed at Sri Temasek, located within the Istana grounds in Singapore. The building is the Prime Minister’s official residence, though none of Singapore’s prime ministers has ever lived there.

Viewers of MediaCorp’s HD5 - Singapore’s free-to-air high-definition channel - were able to catch the National Day Message broadcast in true high-definition. Standard definition TV viewers also enjoyed sharper image quality than previously.

- CNA/ir

Source : Channel NewsAsia - 09 Aug 2008

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Singapore Heeton Holdings reports 94% plunge in H1 net profit

Singapore Heeton Holdings reports 94% plunge in H1 net profit

By Nicholas Fang,

SINGAPORE : Heeton Holdings on Friday said its net profit for the six months ended June 30 plummeted 94 per cent to S$4.2 million due in part to losses from associated companies and higher operating expenses.

The company reported a 40 per cent improvement in revenues to S$27 million, which it attributed to higher turnover from its property development segment and the sales of residential projects.

Despite the weaker first-half earnings, Heeton expects the contributions from its property investment and wet market operations to remain relatively stable in the months ahead.

It also expects to remain profitable for the current financial year. - CNA/ms

Source : Channel NewsAsia - 09 Aug 2008

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Singapore Marina Bay hotels in demand for National Day Parade

Singapore Marina Bay hotels in demand for National Day Parade

By Patwant Singh

SINGAPORE: Demand for hotel rooms around the Marina Bay area this weekend is high as many Singaporeans will be checking in to watch the National Day parade.

Many view the hotels as vantage points to watch the parade in air-conditioned comfort.

Some Singaporeans are willing to splurge, as rooms with a view at the Mandarin Oriental are going for a minimum of US$564.

Demand for such rooms is also strong for Ritz Carlton, Marina Mandarin and Pan Pacific. Bookings had started as early as May.

Aiden Mcauley, general manager of Swissotel The Stamford, said: “This year, we did something (different) for the first time - which is an early bird offer where we offered 15 per cent discount to early bird bookings, which is quite successful… we ended up achieving 25 to 30 per cent of our booking through that booking window.”

Some of the hotels are also having special buffets to enhance the package this year.

However, rooms will not be the only popular places at these hotels during the National Day Parade.

Food and beverage outlets, like restaurants and bars, are also expected to be packed as they also provide an excellent view of the parade and fireworks.

- CNA/yb

Source : Channel NewsAsia - 09 Aug 2008

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Mindy Yong

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mindy@mindyyong.com