Waterfall Gardens at Holland/Farrer Road - Singapore - District 10

Waterfall Gardens at Holland/Farrer Road - Singapore - District 10

Set back against the confluence of Farrer Road and Holland Road, Waterfall Gardens is your sanctuary from the ebb and flow of everyday life.

Located in Singapore’s exclusive District 10, this freehold condominium offers unobstructed views in every direction. With the city and major expressways mere minutes away, take a plunge at anytime into the river of excitement that urban living offers.

Name :  Waterfall Gardens
Developer :  Acecharm Pte Ltd
Tenure : FH
Property Type :  CONDO
Location : 8, Farrer Road,Singapore 268820
District : 10
Unit Type :(Waterfall Gardens)

Total Units: 132 in two 12-storey buildings

3, 4 Rooms:

Penhouses with rooftop swimming pool (12 units): up to 450 sq.m. (4844 sq.ft.)

 
Facilities

BBQ pits
Covered car park
Playground
24 hours security
 Squash court
Swimming pool
Wading pool
 

 
Nearest MRT Station

Commwealth MRT Station (1.29 km)
Buona Vista MRT Station (1.73 km)
Queenstown MRT Station (1.96 km)

Nearest Schools

St Margaret’s Secondry School (1.03 km)
Nanyang Primary School (1.07 km)
New Town Primary School (1.21 km)
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Design awards for Singapore HDB estates

Design awards for Singapore HDB estates 

Sengkang, Ghim Moh estates score well for innovative design, user-friendly features

By Ong Bi Hui 
 
HOUSING Board estates are not known for their innovative designs, but two cutting-edge ones are starting to change all that.
They have just become the first HDB estates to win design awards for both their good looks and user-friendly features.

The Coris, a precinct in Sengkang New Town, and the upgraded Ghim Moh Gardens estate, which is 32 years old, both won bronze awards at the Building and Construction Authority (BCA) Universal Design Awards.

‘Universal Design’ generally refers to design that allows users to get around easily, with easy-to-use facilities.

The BCA Awards were launched in September last year, and this year saw 34 entries, with most being refurbished buildings.

Both estates stood out due to their accessibility to residents, with seamless connectivity throughout.

The Coris at Sengkang, which has 14 residential blocks, had a comprehensive signage system so visitors can find their way around easily. There are also various recreational and communal facilities, including an area for the elderly to exercise, jogging tracks and pavilions.

Ghim Moh Gardens features wheelchair-friendly lifts that stop at every floor, safer clothes-drying racks and elderly-friendly toilets. Getting around is easy, with markets and bird- viewing spots all linked by sheltered walkways.

This year, three silver and six bronze awards were given in six categories of buildings: commercial, institutional, residential, open spaces, refurbished and open.

Other winners include Terminal 3 at Changi Airport and the National Museum of Singapore.

At last year’s awards, Ikea Tampines clinched the top prize, the gold award, but a prize in this category was not handed out this year.

Professor Cheong Hee Kiat, chairman of the award assessment panel, attributes this to it having ‘raised the bar’ this year.

He said: ‘Buildings need to be a holistic package. They must be comprehensive, integrative and have that special touch, while taking into account the owner’s corporate philosophy.’

Winners will receive their awards from Minister for National Development Mah Bow Tan next Thursday. Those interested in applying for next year’s awards can visit www.bca.gov.sg.

Source : Straits Times - 16 May 2008

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Singapore MM’s wife in serious condition after stroke

Singapore MM’s wife in serious condition after stroke
 
She can speak and recognise family members but remains in hospital after Monday’s stroke

By Li Xueying & Kor Kian Beng 
MORE ALERT NOW: Mrs Lee’s daughter said her intelligence is not affected but physical movements may be frustrating. — ST FILE PHOTO
 
MRS Lee Kuan Yew, wife of the Minister Mentor, is in hospital after suffering a stroke on Monday.
However, her haemorrhage has since stabilised and, while she remains in ‘a serious condition’, she is able to recognise immediate family members, said a statement from the Minister Mentor’s office yesterday.

Mrs Lee, 87, experienced sudden weakness in the left side of her body and slurring of speech at 12.20pm on Monday.

She was taken to the National Neuroscience Institute (NNI) for an urgent brain scan, which revealed bleeding in the right side of the brain, and was subsequently admitted to the Neurointensive Care Unit in Tan Tock Seng Hospital.

‘The haemorrhage stabilised after two days of close monitoring and treatment, before she was transferred to the general ward on Wednesday,’ said the statement.

‘Currently, she remains in a serious condition although she is able to recognise immediate family members.’

The Lees’ daughter, Associate Professor Lee Wei Ling, who is director of the NNI, told The Straits Times that Mrs Lee was ‘more alert’ yesterday compared to earlier in the week.

‘Her intelligence is not affected, but physical movements may be frustrating,’ she said, adding that Mrs Lee’s left arm is not moving well.

‘But what we said, she understood. She can also speak. She is in good spirits given the circumstances.’

Mrs Lee suffered a stroke in 2003 when she and Mr Lee were in London on a European tour. The bleeding was also in the right side of the brain then.

She recovered soon after and was well enough to continue accompanying Mr Lee on official trips.

Their last official trip was in March when they visited Saudi Arabia, Dubai and Bahrain in the Middle East.

Source : Straits Times - 16 May 2008

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Mindy Yong

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What is a stroke?

What is a stroke? 
 
ACCORDING to Dr Alvin Hong, consultant neurosurgeon at Mount Elizabeth Medical Centre and Gleneagles Medical Centre, there are two types of stroke.
‘One is caused by blockage in a blood vessel, so that blood cannot flow to the part of the brain that the vessel supplies.

The other is when a blood vessel within the brain bursts, causing blood to leak inside the brain. Mrs Lee suffered this type of stroke.”
What causes it?
Most haemorrhagic strokes are spontaneous, meaning there are no underlying causes, such as tumours or blood abnormalities. It often happens in older people due to degenerative changes in blood vessels.

In people in their 40s to 60s, the most common cause is high blood pressure.
Effects of stroke
Effects can vary. If the bleeding is in the brain stem, the damage can be serious.

If the stroke is in the left side of the brain, the person could be paralysed on the right of the body and also have problems communicating with others as speech is controlled in the left brain. This can be very disabling.

If the stroke is in the right side of the brain, language ability most probably won’t be affected.

Another factor is the size of the blood clot. A big blood clot will do more harm.

Swelling around the blood clot usually gets worse in the first 24 to 48 hours. Blood clots can threaten life by exerting so much pressure that the rest of the brain is also affected.
How to treat the condition
Sometimes, to save a life, doctors operate to remove the blood clot.

If the clot is not so big and the rest of the brain is less affected, doctors use medication to bring down the swelling in the brain.

If one waits long enough, all blood clots disappear. The problem is that one could die before a clot disappears.

Typically it takes five to seven days before a clot subsides significantly.

If a patient is quite stable after three to five days, he will probably remain so because swelling and bleeding are worst in the first two days.

In Mrs Lee’s case, the fact that she can recognise family members means the rest of the brain is working. The reason why it’s considered a serious condition is because it’s only the fourth day.
Recovery prospects
Doctors will have to first treat the complications of the stroke, of which a chest infection is the most common. Such patients often lie in bed and do not cough or breathe deeply enough. Secretions from the lungs are not cleared and they get a chest infection.

As the blood clot disappears and the pressure on the surrounding brain drops, the brain will begin to recover.

‘Once the danger period has passed, the patient will require intensive rehabilitation. It takes time, and patience,’ said Dr Hong.

Source : Straits Times - 16 May 2008

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Mindy Yong

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Singapore Retail sales index up 5.6% in March

Singapore Retail sales index up 5.6% in March

By OH BOON PING

Excluding motor vehicles, overall sales volume rose by 6.1 per cent.

The strong growth was partly attributed to higher prices, but at constant prices the volume of retail sales actually declined marginally from a year ago, says the DOS.

Total retail sales value in March was estimated at $2.89 billion, compared with February’s $2.59 billion, with almost all retail sectors reporting higher turnover year on year.

 
 
For example, sales of supermarket goods, furniture & household equipment, department store items, optical goods & books, watches & jewellery and telecommunications apparatuses & computers in March this year continued to grow at 13.6 per cent to 16.7 per cent.

However, the motor-vehicle segment reported a decline of 8.1 per cent, continuing its downward trend since October 2007.

As for restaurants, receipts fell 1.8 per cent from the previous year, even though sales of fast-food outlets and food caterers rose during the period.

For example, turnover at fast-food restaurants rose by 1.6 per cent while revenue of food caterers and other eating places increased by 8.9 per cent and 6 per cent respectively.

The DOS said the increase was partly due to higher food prices. ‘After removing the price effect, the volume of catering trade declined by 3.1 per cent.’

In a report, HSBC economist Prakriti Sofat noted the contraction in motor-vehicle sales, but added that as certificate of entitlement (COE) premiums fall ‘to the lowest level in around a year, motor-vehicle sales will probably see a bounce in the months ahead’.

Looking ahead, the economist believes that retail spending here should remain firm.

‘Singaporeans got their first ‘growth dividend’ at the end of April (with the second in October) which, together with tax rebates, healthy job gains and historically low interest rates, suggests that households should let loose the purse strings,’ Ms Sofat said.

 
Source : Business Times - 16 May 2008

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Mindy Yong

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Singapore CDL reveals what it does for society and environment

Singapore CDL reveals what it does for society and environment

By CONRAD TAN
CITY Developments Ltd (CDL) yesterday launched its first annual report focusing on the property developer’s impact on the environment, such as energy usage and carbon emissions.
The 54-page voluntary report, one of the first of its kind for a Singapore public-listed company, also details CDL’s activities and performance on various social and environmental issues, including efforts to improve the efficiency of energy and water use at its property projects and to reduce the amount of waste it generates.

But profits still come first, managing director Kwek Leng Joo said at a media conference to launch the report yesterday.

‘Businesses are for profit. Companies are out there not primarily to do charity work, think about how they should protect the environment or how they should repay kindness to society,’ he said. ‘The primary obligations are to the shareholders and investors.’

A company needs to be profitable first ‘before it can even put itself in a position to talk about CSR (corporate social responsibility) or anything else’, Mr Kwek said.

Just a day earlier, CDL reported a 31 per cent jump in net profit to $165 million in the first quarter from a year earlier. And last year saw record revenue and profit for the second-largest developer here amid the boom in property prices.

 
 
But a public-listed company must also be sure that ‘whatever kind of business it is in is sustainable’, which is where CSR issues are relevant, Mr Kwek said.

As a major property developer, paying attention to environmental conservation and protection issues is necessary to ensure that its core business of developing and managing new projects is sustainable in the long term, he added.

According to the report, CDL invests 2-5 per cent of the construction cost of a project in environmentally friendly ‘green’ design and features.

The company said it aims to track and measure its social and environmental efforts and performance against international benchmarks, and is setting up a formal CSR committee comprising senior management that will report directly to Mr Kwek.

Zoe Knight, head of socially responsible investment research at Merrill Lynch, said the report is a ‘breakthrough’ for Singapore.

Other Singapore-listed companies that have published separate environmental impact reports include Singapore Airlines and Chartered Semiconductor Manufacturing.

Source : Business Times - 16 May 2008

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Mindy Yong

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Leng Beng says Singapore real estate market sustainable

Leng Beng says Singapore real estate market sustainable

CityDev boss sees further investment opportunities ahead
By EMILYN YAP

HOTEL and property tycoon Kwek Leng Beng believes Singapore’s real estate market is sustainable and further investment opportunities lie ahead.
‘I am also waiting for the opportunity … to go in and buy at the right time,’ he said at a property conference yesterday.

The executive chairman of City Developments said growth in Macau’s gaming industry had driven up residential property prices there sharply. And with two integrated resorts and big events such as the Youth Olympics in the next few years, Mr Kwek reckons the future is bright for Singapore real estate.

According to country head of Jones Lang LaSalle Singapore Christopher Fossick, the current slowdown in property demand is largely sentiment-driven, and many investors are probably waiting to purchase at better prices.

In terms of office space, Mr Kwek said: ‘There has been a lot of talk that by 2010 and 2011 there will be a lot of oversupply. I do not believe so because in the first place, construction is a problem here.’

He cited rising construction costs as a reason for this view.

 
 
While office rents have been rising, Mr Fossick does not see this as a major business concern. Sharing feedback from multinational companies, he said wages are a much larger component of the cost of doing business, compared with rents.

Mr Kwek is also positive on the outlook for the hospitality real estate market. He believes the shortage of hotel rooms in Singapore and the rise in intra-regional travel will keep room rates on an uptrend.

Although Mr Kwek is generally upbeat on prospects for local real estate, he did express one concern. While investments from institutional funds have helped steady the market, ‘funds have a duration of life and will get out’, he said.

On the other hand, ‘for the retail buyers, when they get out, they don’t get out all at the same time’.

Mr Kwek asked in a panel discussion why the recent boom in Singapore’s property market did not attract many individual investors from the West, while funds showed huge interest. The director of property at Henderson Global Investors Asia, Chris Reilly, said this could be due to the lack of familiarity with Asian real estate among retail buyers in the West.

 
Source : Business Times - 16 May 2008

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Mindy Yong

(+65)91002985

mindy@mindyyong.com

Interest in Asian property seen growing - Singapore

Interest in Asian property seen growing - Singapore

GIC Real Estate says weaker market favours those taking strategic position
By EMILYN YAP

(SINGAPORE) The sub-prime crisis may have affected Asian property markets, but interest in the sector is likely to grow. The Government of Singapore Investment Corp’s (GIC) real estate arm is also confident about investment opportunities going forward.
‘There is plenty to go around - we will all have fun competing,’ said president of GIC Real Estate Seek Ngee Huat at a property conference yesterday.

Going by the pace at which real estate projects are emerging in Asian cities, Dr Seek believed that there would be a continuous supply to meet different risk-return appetites.

Dr Seek recognised that the sub-prime crisis has weakened Asian markets, particularly Japan and Australia. ‘The contagion effects of the sub-prime crisis . . . can potentially accelerate the downward spin of the current cycle,’ he said.

Nevertheless, the outlook for the property market was not entirely bleak. ‘Weak markets favour those who have capacity to take a strategic position,’ Dr Seek said. ‘The sub-prime meltdown presents threats but there are also opportunities.’

And many around the world are likely to see investment opportunities in Asian property markets as well. ‘Massive build-up of investment funds in the world, coupled with the attraction of Asia as a growth region of the future, will ensure continuous global interest in Asian real estate,’ said Dr Seek. He pointed out that this will inevitably lead to greater competition.

 
 
Dr Seek said that GIC Real Estate had focused mainly on developed markets in its first 10 years, and only started investing in Asia in the 1990s. Even then, it was ‘way ahead’ of other institutional investors.

GIC Real Estate ranks among the world’s top 10 real estate investment firms, according to its website. The unit has over 200 investments across more than 30 countries, culminating in a multi-billion US dollar portfolio.

GIC Real Estate had in March, through its affiliate Reco Hotels JV Private Ltd, entered into a joint venture with Host Hotels & Resorts Inc to explore investment opportunities in Asia and Australia. The real estate unit also bought the Westin Tokyo hotel for about 80 billion yen (S$1.05 billion) in February.

Source : Business Times - 16 May 2008

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Mindy Yong

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mindy@mindyyong.com

Singapore Temasek Foundation silences the cynics

Singapore Temasek Foundation silences the cynics

Its projects in Asia make a difference that goes beyond any PR exercise
By CHUANG PECK MING

JUST a week shy of Temasek Foundation’s first anniversary, Temasek Holdings, which started the $500 million foundation to help people in Asia, was again in the news. Last Friday, an Indonesian court threw out the Singapore investment company’s appeal against a ruling that it had breached the country’s anti-monopoly law in a case involving the two largest Indonesian telecom operators.
Unlike a similar dispute in Thailand about a year ago, the proceedings this time were more civilised. The Thai episode saw public protests against Temasek’s investments in a telecommunication company - Shin Corporation - owned by then Thai prime minister Thaksin Shinawatra and his family. The protests culminated in the Thaksin government’s ouster. It was soon after this that Temasek Foundation was formally set up.

The new Thai government subsequently declared that Temasek’s stake in Shin was ‘just business’, backing away from earlier claims that Singapore could use Shin’s assets to spy on the military.

But Temasek’s deep pockets and aggressive overseas investments in recent years have been a constant source of concern for nationalists in a number of countries - a concern magnified by Temasek’s link to the Singapore government.

Launching Temasek Foundation was thought to be a move that would ’soften’ Temasek’s image, win the hearts and minds of the people in countries where Temasek has sunk money, and make its investments more acceptable.

 
 
Temasek has denied this from the start. Its chairman S Dhanabalan said at the launch of the foundation on May 16, 2007: ‘Just as we have both benefited from and contributed to Singapore’s success through our investments since the 1970s, we hope to similarly benefit from and contribute to Asia’s growth and development as a prosperous and stable region, through our role as a long-term investor in Asia and through our contributions as a corporate citizen.’

Still, a year after the foundation was rolled out, after dispensing some $16 million in 14 educational, health and research projects in the region, the question is still asked - was Temasek Foundation started to take the sting out of Temasek’s investment activity, and is the foundation’s work a public relations exercise for Temasek?

Temasek Foundation’s chief executive officer, Benedict Cheong, points out that Temasek had the foundation in mind five years ago, long before its troubles with Shin Corp in Thailand. But a cynic may yet counter that the foundation was just an idea earlier - and Temasek was only nudged to act after its nasty experience with Shin, which prompted it to do something about its image.

But actions speak louder than words. The foundation’s deeds in the past year - and its plans to do more in the coming year, spending up to $22 million - should go a long way to silence the cynics.

While dishing out only a fraction of what it could have given out - up to $50 million yearly - Mr Cheong, formerly CEO of the National Council of Social Service, and his lean team of seven staffers have worked with partners to get the most out of the money spent in the past year.

Whether it is training educators in Manila, grooming nurses and teachers in Hainan, or bringing students in the region together in exchange programmes, Temasek Foundation never lost sight of its mission - to develop people, build bridges between them, build institutions of excellence through good governance and ethics, and rebuild lives and livelihoods hit by natural disasters.

These are projects that are more than PR exercise - they will make a difference to the lives of people, especially those in the less developed part of Asia.

‘If we only want publicity, we get more of it if we focus on children and old folks,’ Mr Cheong says.

Too much PR, in fact, will come in the way of the foundation’s efforts to contribute to development in the region, he says.

The foundation’s guiding philosophy is essentially capacity-building - that is, ‘teaching people to fish rather than giving them fish’ - and ensuring that the lessons cascade down far and wide. Thus its emphasis on funding training health and education trainers.

Mr Cheong stresses that the foundation’s approach is to listen to the people it helps - and then work with them as partners. To be prescriptive would be to turn them off and lose their cooperation.

The foundation itself does not take directions from Temasek, even though the money comes from the returns on its investments. Temasek Foundation has an independent board; none of its members are from Temasek.

Indeed, most of the foundation’s work in the past year was in countries where Temasek has few investments - the first country it went into was the Philippines. Mr Cheong says Temasek Foundation has some projects coming up in Indonesia, but this will happen long after the fate of Temasek’s appeal is decided by the courts there.

Source : Business Times - 16 May 2008

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Mindy Yong

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mindy@mindyyong.com

Singapore Property seems paler, but it’s anyone’s call

Singapore Property seems paler, but it’s anyone’s call

Volumes shrink, prices weaken but some segments are holding firm
By ARTHUR SIM

(SINGAPORE) Based on the latest monthly developer sales data from the Urban Redevelopment Authority (URA), property prices could be on the downward trend.
Developer sales fell, with April seeing only 274 transactions. This is about 9 per cent lower than the 301 units sold in March, though still higher than the 174 units sold in February.

And while it is difficult to accurately pinpoint price movements with such low volume, an analysis by Knight Frank of overall median prices achieved nevertheless registered an 8.9 per cent drop in April, falling to $943 psf compared to $1,035 psf in March.

The peak median price of over $1,400 psf was reached in August 2007.

Knight Frank director (research and consultancy) Nicholas Mak also explained that the analysis was a ‘median of median prices’, and so may not be a precise reflection of price movements.

Mr Mak also said that applying a different mode of analysis to the same data - the formula used to calculate URA’s quarterly property price index for instance - could even show that prices have increased slightly.

Still, a comparison of monthly median prices of recently launched developments does suggest that prices could be falling.

 
 
The 79-unit Blu Coral was launched in February with nine units sold at a median price of $872 psf. In March, 28 units were sold at a median price of $802 psf, while in April, 18 units were sold at a median price of $657.

Similarly, 53 units of the 106-unit, The Verve, were launched in March with 36 units sold at a median price of $1,187 psf. In April, 8 units were sold at a median price of $1,055 psf.

And nine units of the 625-unit, The Quartz, were sold in March at a median price of $742 psf, followed by 14 units sold in April at a median price of $721 psf.

Interestingly, one unit of Waterfront Waves was sold at $909 psf in April, higher than the median price of $806 in March when 14 units were sold.

Perhaps another indication of the weakening market is that 43 units of 659-unit The Parc Condominium, previously reported as being fully sold, have re-emerged on the market. According to the monthly data, the returned units first appeared in February.

A source that did not want to be named also said that these units were returned by buyers who chose not to exercise their options, forfeiting a quarter of the 5 per cent downpayment in the process.

Jones Lang LaSalle head of research (South-East Asia) Chua Yang Liang has also analysed median prices as a measure of volatility and suggests that this has increased in the Outside Central Region (OCR).

Dr Chua explained that volatility, as a measure of how wide market prices are per unit dollar of the median price achieved could also reflect, ‘the market’s speculative level’. As such, he said: ‘It would appear that upgraders may be returning, with entry level projects that are moderately priced between $750 to $850 psf as the preferred choice.’

Supporting this were the healthy sales of the 56-unit Stadia at Yio Chu Kang, which saw 52 units sold. Two units were sold for under $750 psf while the remaining 50 were sold at between $750 and $1,000 psf.

In the OCR, Dr Chua said based on the analysis, median prices continued to soften by 4.2 per cent. But he also added that the analysis was just an ‘indication of the market’s mood’, and does not account for product differentiation or physical attributes of each development.

While the volume of sales was low in the Central Core Region with just 19 non-landed homes transacted, Dr Chua believes that the low volatility in median prices there suggests that market activity and future prices in the high end market are likely to remain stable.

Also holding this view is CB Richard Ellis Research executive director Li Hiaw Ho who noted that two units in Scotts Square were sold at around $4,300 psf, a unit at Orchard Scotts was sold at $2,520 psf and two units at Skypark were sold at around $2,300 psf.

‘Although high-value transactions were limited, the individual transactions seemed to indicate that prices in the high-end market were still holding firm,’ he added.

The analysis of price movements will however, remain an academic one, and as such will remain open to debate.

Colliers International director (research and advisory) Tay Huey Ying said there were too few transactions at the higher end of the market to comment fairly on the sector.

And even for the OCR, she noted that the median transacted price for mass-market units averaged $792 psf in April, about 8 per cent higher than the average median price of $729 in August 2007 when the highest sale volume for the sector was registered.

 
Source : Business Times - 16 May 2008

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Mindy Yong

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mindy@mindyyong.com

Subsidised Singapore HDB rental flats in greater demand now

Subsidised Singapore HDB rental flats in greater demand now 

30% jump in applicants in past few months; HDB says not all are needy

By Theresa Tan 
THE number of people applying for heavily subsidised HDB rental flats has shot up by at least 30 per cent in the past few months - to about 4,000 eligible applicants on the waiting list now.
As a result, the wait for these one- and two-room rental units is now up to 15 months - double the waiting time in 2006.

Though families hit by soaring rentals on the open market and those in financial difficulty are among those in the queue, the Housing Board said not all applicants are ‘needy or have urgent housing needs’.

It said that last year, more than half who applied for its rental units were former home owners who did not owe the HDB any money when they sold their flats.

In fact, some of those in the rental queue had enough money to buy a smaller unit after selling their flat, said National Development Minister Mah Bow Tan in the recent Budget debate.

The HDB stressed that its rental flats are meant for the poor who cannot afford to own a flat and have no other housing option.

Any family whose household income is $1,500 or less a month can apply for rental housing. Also, they must wait for 30 months after selling their flats before being eligible for subsidised rental homes.

MPs interviewed say they are seeing more and more people approaching them for help in securing a rental flat.

Besides those hit by rising rentals and financial troubles, there were others who had their flats repossessed by banks when they could not service their home loans.

The heavily subsidised HDB rental units are the only lifeline for these people, say the MPs interviewed, who included Ms Indranee Rajah, Madam Cynthia Phua and Madam Halimah Yacob.

Depending on household income and other factors, rentals are between $26 and $205 a month for a one-room flat; and between $44 and $275 for a two-room unit.

One person who has been on the waiting list for the past few months is part-time promoter Chan Yoke Yin, 46.

Her family ran into debt when her husband, a bus driver, was hit by cancer and a stroke, and had to stop work about four years ago.

The family started to fall behind in loan payments, and now owes the HDB more than $300,000 for a five-room flat. Madam Chan, who earns about $1,000 monthly, says she has ‘no choice’ but to sell her flat.

Ms Rajah said: ‘I have had an inordinately large number of people coming for help to get a rental flat last year.

‘There seems to be an acute shortage of rental flats.’

She has seen at least two cases of people living in the open while waiting for a rental unit, she said. One is an odd-job worker who has been sleeping at a bin centre for months, while the other is a family living on the beach.

The HDB says people who need a flat urgently can switch to estates where the wait is shorter, for example, in Woodlands. Waiting time at these estates is around three months, compared to Bedok and Tampines, where one can wait for up to 15 months.

Meanwhile, the HDB is referring those in urgent need to charities which run temporary shelters. The first shelter for homeless families, New Hope Community Services, has taken in about 20 families since opening last year.

It is managing ‘a few’ flats for this purpose, the Ministry of Community Development, Youth and Sports (MCYS) told The Straits Times.

‘These families are not allowed to stay long term at these flats and are expected to move out as soon as they find alternative housing,’ said the MCYS spokesman. ‘Many such families have been able to move on to stay with their relatives or friends.’

HDB is also increasing the supply of rental flats from the current 43,000 units to 50,000 over the next few years and reviewing the eligibility criteria for rental housing to help the ‘genuinely poor’.
 
Source : Straits  Times - 04 April 2008

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Mindy Yong

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mindy@mindyyong.com

The Parc Condominium at West Cost - Singapore- District 01-08

The Parc Condominium at West Cost - Singapore- District 01-08

Tenure : Freehold (Foreigners Eligible)
TOP Date : Estimated 2012
Site Area : 34,042.4 sqm 1366,432.39 sqft
Devt 7 blocks of 24-storey condominium with
total 659 units

Freehold Condo located on West Coast Road. (Old West Reak)

7 blocks of 24 storey condominium with 659 units available
1+study approx 667sq ft (24 units)
2+study approx 980 sq ft (71units)
3br approx 1216-1302 sq ft (282units)
3+study approx 1421 sq ft (126 units)
4br approx 1442-1518 sq ft (144 units)
5br approx 2432 sq ft (9units)
Penthouse approx 3498 sq ft (3units)

Project Extensive site area

One of the largest USPs Freehold development that houses 659 dwelling units with full recreational facilities.Unobstructed views- Strategically orientated to North South facing offers unobstructed views towards the stadium,Pandan Reservoir View, Kent Ridge Views,etc.

Location- Easy access to AYE and Clementi MRT. It is within 5 km Harbourfront, Vivo City, Sentosa, the future Integrated Resort, One North, Biopolis, NUS, SIM and Ngee Ann Polytechnic, etc.

Quality finishes and fittings- Aircooled split system, built-in wardrobes and fully fitted kitchen with cabinets, hood & hob, conventional oven and microwave oven. Investment Potential- Rentable with huge pool of potential residents, lecturers and professionals form thenearby educational, science and business parks.Facilities Elderly Fitness Area 1 Spa Beds / Children’sPlayground / Floating Slabs / Reflective Pool/ Lagoon Pool / Toddler’s Pool / Spa Seats/ Timber Bridge / Jacuzzi / Continental Shelf Plaza/ Linear Slabs / Adventure Play Areal Fitness Corner/ 50m Lap Pool / BBQ Areal Basketball Half Court! Aqua Gymnasium/ Entertainment Deck / Wading pool 1 Boardwalk/ landscaped garden / Lazy River

5 mins walk to food centre and wet market
10 mins walk to Clementi town and MRT station
10 mins drive to West Coast Park, Education Hubs(NUS,Singapore Poly, United World College of S.E.A. , Biomedical Hubs of Buona Vista and Science Park.
15 mins drive to Mount Faber Park, Houborfront,Vivo City,Sentosa Future Integrated Resort.

Real Estate Properties of Singapore buy , sell, rent, invest,

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com ( email me )

http://www.hotvictory.com

One Devonshire at Devonshire - Singapore - District 09 - 10

ONE DEVONSHIRE at Devonshire - Singapore - District 09 - 10

The Devonshire residence is a high end condo by the about 118 units. The facility includes, especially, a club, swimming pool and tennis court. This is the prime housing development and it and the orchard road, the Singapore river, CTE and Somerset the MRT station sign close proximity it is ideal and the convenient place housing. In its vicinity is school for example CHIJ, the river valley primary school.

191 units

36 floors

4 storey carpark

Facilities:
- Tennis Court
- Swimming Pool
- Clubhouse
- etc

Real estate in Singapore - properties of Singapore, Buy, sales, rents, investment,

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com ( email me )

http://www.hotvictory.com

A Company Property Consultant can help you with your company’s real estate needs

A Company Property Consultant can help you with your company’s real estate needs

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Singapore Real Estate Property- Buy , Sell , Rent ,Invest , Singapore Properties
Buy, sell and rent Singapore property - private real estate , residential apartments, commercial and industrial properties. HDB flats for sale and rent. Foreign investors, buyers, tenants or relocating expats can easily get their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop,factory, warehouse & land right here.

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com ( email me )

Singapore Real Estate 2008, 6-Month Market Review and Projection

“Where is the Market Heading?”

6-Month Market Review and Projection For Singapore Real Estate 2008

The Myth, Reality and Awkwardness of 2008

Now, let me take you through the market performance in the past six months by way of answering the following questions and then do a projection of the real estate market in the next six months:

(A) How has the market performed? (B) How different is it this time than last? (C) What do all these mean to real estate agents in general? And where do we go from here?

A – How Has the Market fared?

(1) Private Home Prices Jump 31% in the whole of 2007

From October up to end of December 2007, Singapore private home prices rose 6.6%, compared to 8.3% in the third quarter. For the whole year, home prices climbed 31% over 2006. Take up rate for new homes hit a record 15,000 new homes in 2007. It is a 34.5% growth over the 11,147 new homes sold in 2006.

Here are the price movements of condos and apartments in the last quarter of 2007 (Oct – Dec):

- In the Core Central Region, prices increased 7.0% (8.3% in the third quarter) on a quarterly basis in second quarter. This region comprises the traditional prime districts 9, 10 and 11 and Marina Bay and Sentosa.
- In the Rest of Central Region, prices increased 7.3% (7.9% in the third quarter) on a quarterly basis in the second quarter. This region comprises locations like Queenstown, Bukit Merah, Outram, Bishan, Kallang and Marine Parade.
- Outside Central Region, prices increased 7.5% (7.9% in the third quarter) in the same period. This region comprises locations like Woodlands, Jurong, Hougang, Ang Mo Kio, and all the outlaying areas.

Myth or Reality (1) : For the whole of 2008, barring any miracles, the take-up rate of new homes should be less than 10,000 given current uncertainties in the global economy. With Singapore’s domestic economy continued to be strong (driven by the ongoing boom in the construction sector) and the allure of Singapore as a safe haven and a global financial hub for a bigger portion of private wealth, the upside is still good.

The booming domestic sector should continue to support the sale of mid-end and mass-market homes which are expected to experience a healthy growth of 10% to 15% price rise. For the luxury homes segment, prices and take-up rate are expected to moderate, having gone through a vintage year of fast growth.

Awkwardness (1) : Sale volume and prices may continue to grow in 2008 on the back of sustained inflow of foreign funds seeking safe haven outside the United State of America, but buying activities may be restricted to institutional and corporate type of portfolio investments, such as bulk purchases (e.g. overseas property funds acquiring a number of blocks in a project), swop deals (e.g. between developers) and marriage deals (e.g. local and overseas joint ventures buying back own projects for mid-term investment income). Such purchases usually occur in selected areas like the Core Central Region and the outskirt of Orchard Road areas.

(2) Condo / Apartment Sales and Foreign Ownership of Private Homes in 2007

Table 1 – FIRST HALF 2007 Total Sale of private apartments/condos (including sub-sales)

(FB = foreign buyers) Source of statistics SISV RealinkFirst half private property sales were 19,801 units. Foreigners accounted for 2,763 or 13.95% of total transactions.

Table 2 – SECOND HALF 2007 Total Sale of private apartments/condos (including sub-sales)

(FB = foreign buyers) Source of statistics SISV Realink

Second half private property sales were 11,666 units. Foreigners accounted for 1,986 or 17.02% of total transactions.

Table 2.2 – Comparison between FIRST and SECOND HALF 2007 non-landed properties transactions (including sub-sales)

In the second half of 2007, while primary sales dropped 81.65% to only 2,565 units sold, private secondary sales actually improved 56.23% to 9,101 units sold, on the strength of spectacular hikes in private rentals. For the whole year, the first half outperformed the second half by 8,135 transactions.

Table 3 – Percentage of foreign ownership of condos / apartment in First and Second half of 2007

In the second half, the absolute numbers of foreign purchasers of condo / apartments were down. However, the percentage of foreign purchasers actually went up 2.02 percentage point. It means that while the overall purchases were reduced due to one reason or another, the number of foreign purchasers did not change drastically. It was reduced by only 1,103 units (3,205 – 2,102) for the whole year.

Myth or Reality (2) : Although the overall private home sales went down in the second half of 2007, foreign ownership of Singapore private homes gained in percentage term, especially for high-end homes.

The Million Dollar Question now is: “Will the trend of ‘sustained foreign buying’ continue in the first half of 2008?” From the appearance of the statistics, the answer has to be a YES. This is because of the following reasons:

(i) The threat of an economic recession in the US in 2008 looms larger each time a global financial institution made a revelation of massive write-down in relation to its exposure to the US sub-prime mortgages (e.g. UBS, Citigroup, and Merrill Lynch).
(ii) The value of US dollar will continue to weaken against Singapore dollar throughout the year, and Singapore will continue to be a safe haven for international funds.
(iii) The European economy is similarly under the weather due to its symbiotic relationship with the US market.
(iv) The Chinese real estate market has shown signs of over-heating and the risks of investing there have grown much larger.

Awkwardness (2) : With limited upside of less than 10% projected price growth, the buying activities may continue to thin, which means the percentage gain of foreign ownership will continue to rise amid smaller business volume for real estate agents.

(3) Landed Property Sales in 2007

(3.1) Good Class Bungalows (GCBs)
In 2007 so far, a total of 96 GCB were transacted amounting to $1.28 billion. The value is an all-time record and has surpassed slightly the $1.24 billion achieved for the whole of 2006.

However, in terms of transaction volume, GCB transactions from January to November this year still falls short of the 118 deals transacted for the whole of 2006. This could be due to the phenomenal rise in GCB prices and the restrictions placed on non-residing foreigners (only PRs are allowed to own GCB provided they obtained the approval from the land authority).

(3.2) Upside of Landed Home Prices Good
There are a number of compelling reasons for landed home prices to rise further:
 Limited stock - Currently, there are 68,360 landed houses in Singapore, making up only 29% of the total 233,143 private property stock.
 Limited new supply - In the next five year, supply of landed homes will remain subdued with only 1,872 landed units under construction and another 2,579 landed units being planned, accounting for only 6.6% of all new supply expected from the second half of 2007 to 2011.
 High rental return - Rents of landed homes have outpaced its capital values, according to URA’s rental indices for all the landed property types. In the first half of the year, rents of detached houses increased by 13%, semi-detached houses by 11.4% and terrace houses 17.3% hike in rents.

Table 4 - Sale of Landed Properties in First-half of 2007

Source of statistics SISV RealinkTable 5 - Sale of Landed Properties in Second-half of 2007

Source of statistics SISV RealinkTable 6 – Sale of Landed Properties in 3 Years starting 2005

Myth or Reality (3) : The increase in demand for landed properties continues to go up from 2005 onwards. However, the fundamentals on landed properties are different from non-landed properties. The former hinges on continued good performance of locals; while the latter the continued confidence in Singapore by foreigners. The following factors may lead to more locals having to dispose of their landed properties and down grade to smaller homes in 2008 and 2009:(i) the domestic economy relies only on the construction and services sector,
(ii) the traditional economic drivers such as electronics and pharmaceuticals continue their slump especially the electronics sector which has gone through 15 quarters without growth,
(iii) the threat of our trading partners, i.e. the EU and the US going into recession this year.

Awkwardness (3) : With more positives than negatives in the domestic economy in 2008 and a general expectation that 2009 will be an even better year, sellers in general will factor in the completed casinos, the F1 Circuit, the Gardens at the Marina (which has nothing to do with their landed property prices) when putting their homes on the market. With such a rosy economic backdrop, it will be tough for inexperienced agents to ‘talk down’ the asking price.

(4) Sub-sales of private homes – volume down but value hit 10-year high

The number of sub-sale transactions fell to 1,374 (or a quarter-to-quarter decline of 23%) in the third quarter of 2007. There were 1,184 or 13.9% of sub-sales in the second quarter and 6.3% in the first quarter of 2007.

Sub-sale value of apartments transacted in the first three quarters of 2007 was at an all-time annual high of $6.7 billion. However, in terms of volume, it is about half of what it was in 1995.

Sub-sales deals made up 19% of the volume, up from 16% in the second quarter. Median sub-sale prices are at a new record high of $1,246 psf. Quarter-to-quarter, the increase is 13.6% and a year-on-year increase of 25%.

The value per transaction of sub-sale apartments is also at a record high this year at $1.71 million per transaction. However, some prestigious projects have already shown sign of fatigues such as The Sail in Marina Bay which, according to caveats lodged, saw six (6) transactions in December 2007. The sub-sale prices of many units have drastically dropped – suggesting forced sales.

Table 7 – Sub-sale activities over the past 3 years

Myth or Reality (4) : In 2008, the developers will price their new launch projects at a 15% to 20% premium to factor in higher inflation risks and to protect the value of redevelopment sites where construction have not started. It will take longer time for developers to offload leftover units due to higher asking prices and ample supply of new condos and hybrid HDB flats in the next one to two years. By 2010, there will be an additional 43,000 new condos and apartments available either for occupation or launches in many parts of Singapore.

Awkwardness (4) : With a short-lived bull-run, investors and speculators alike will be left with high-priced properties that they have bought in 2007 before the en bloc craze came to a sudden halt. With Deferred Payment Scheme scrapped and banks tightening credit, sellers and agents will be hit be a double whammy of high inflationary pressure on holding / marketing costs while new supply of similar condos continue to rise.

(5) En bloc deals at all time high

For the whole of 2007, a total of 109 en bloc sale deals worth $13.3 billion were done. But, en bloc sales will be a passing phenomenon this year due to a combination of negative factors against en bloc sales such as:

 Massive Government Land Sale Programme (since January 2007)
 Withdrawal of Stamp Duty postponement (from January 2007)
 Withdrawal of Deferred Payment Scheme (from September 2007)
 Increase of Development Charge percentage from 50% to 70% of market value (from July 2007)
 Change in the Collective Sale Law (from Oct 2007)

Table 8 – Past 10-year en bloc sale record

Myth or Reality (5) : The slew of collective sales in the whole year of 2007 yielded $13.3 billion in total collective sale proceeds. The huge cash windfalls would be arriving for thousands of en bloc sellers who would need replacement properties. Most of the amount is due to come in between mid 2008 all the way to 2010, and this will prompt a pickup in market activity. Assuming 50% of the sellers affected by en bloc sales already have a second home, there will be at least $5 billion about to be ploughed back into the market from 2008 through to 2011.

Many owners of old condos and apartments, such Bayshore Park and some privatised HUDC projects, are hoping that the Government will increase the plot ratio in the new Master Plan to be promulgated this year, and this will allow them to sell their apartments collectively for a huge windfall.

Awkwardness (5) : A minority of en bloc sellers already flexed their muscles at the HDB resale flat market pumping up prices to unrealistically high level. Almost all flat sellers are now hoping to sell their flats to en bloc sellers and they will be willing to pass over a chance to sell at the market price and prefer to wait for their ‘Prince charming’.

(6) Investment sales hit historic high at $51 billion in 2007

Total investment sales of property registered an all-time historic record of $50.8 billion in 2007. It is a 66% jump from 2006’s $30.57 billion. Incidentally, the aggregate investment sales figure for eight long years of recession - from 1996 to 2003 - was only $54.9 billion.

Investment sales refer to major investment transactions like office buildings and shopping centres, as well as sites bought for development including collective sale deals, Government Land Sale (GLS) programme and strata-titled units of at least $5 million. They do not cover purchases of single property units by individuals.

Investment sales are considered a barometer of developers’ and big investors’ mid-to-long-term confidence in the market.

Table 9

With the passing of the new collective sales law and hefty increase in Development Charge percentage and DC rate, en bloc sales are expected to dwindle.

Residential deals halved from $20.3 billion in first half of the year (due mainly to robust collective sales) to $10.3 billion in the second, due to the sudden and drastic slowdown in collective sales.

Myth or Reality (6) : 2008’s overall investment sales of property are likely to be lower and hover around $30 billion. This is based on the assumption that foreign funds are still keen on Singapore’s commercial buildings and developers are still bullish about the Government Land Sale Programme. However, the situation will pan out depending very much on the resilience of the US economy against recession.

Awkwardness (6) : Sale of big ticket properties continue to shore up official numbers while individual agents are struggling to attract enquiries about their resale residential listings.

(7) HDB Resale Flat Prices Grew 17.4% in 2007

HDB resale flats price index registered a 5.6% increase in the fourth quarter of 2007. The quarter-on-quarter increases of HDB resale flats are as follows:

Table 10 – Price growth of HDB resale flats quarter-on-quarter

For the whole year, prices of HDB resale flats grew by 17.4% in 2007. The whole year resale transaction volume was 26,215 (excluding resale flats sold by HDB itself) and the majority of resale flats were transacted at high cash-over-valuation (COV) towards the second half of the year.

(7.1) More and more resale flat buyers need to fork out higher cash
Spurred on by the upward trend, flat sellers are now asking for prices that are significantly higher than valuations. And since July 2007, Cash-over-Valuation (COV) has become a norm for HDB resale flats and about 80% of HDB resale transactions attracted cash above valuation.

According to HDB figures, the median price for four- and five-room flats are $18,000 above valuation. For two- and three-room flats, the median amount was $15,000. The highest amount paid above valuation for a five-room flat was $150,000. The figures were $57,500 for a four-room flat and $40,000 for a three-room flat.

HDB statistics show that the median COV for executive flats in Bukit Timah rose to $137,500 in the third quarter of 2007. In Marine Parade, the COV for five-room flats hit $84,000 in the same quarter.

(7.2) Interests in HDB Resale Flats Up since July 2007
The table below shows the transaction volume of HDB resale flats for the whole of 2007.

Table 11 – Increasing volume of HDB resale flats transactions Month-on-Month

The tables below show that the 10 largest Housing estates have the highest number of flats sold; while the 3 smallest housing estates enjoy the highest transacted prices, due to rarity and good location.
Table 12 – The 10 largest HDB Estates sell the highest number of flats

Table

13 – The highest transaction prices always come from smaller HDB Estates

(7.3) HDB Resale Prices are Trending Upwards since July 2007
In December 2007, newer Design-and-Build 5-room flats at the precincts around Blocks 687 (A-D) and 690 (A-F) of Woodlands were transacted at between $320,000 and $347,000 depending on different attributes such as floor levels and facing. Other 5-room flats at older precincts have been transacted at the price range of between $270,000 and $300,000.

Six months earlier in June 2007, similar Design-and-Build 5-room flats at the same Woodlands precincts were transacted at between $270,000 and $315,000. That is a difference of 18.5% and 10% growth in transacted prices over a 6-month period.

Likewise, in December 2007, newer Design-and-Build 5-room flats at the precincts of Blocks 680 (A-E) to 683 (A-E) of Jurong West were transacted at between $307,000 and $370,000 depending on different attributes such as floor levels and facing. Other 5-room flats at older precincts have been transacted at the price range of between $205,000 and $287,000.
In June 2007, similar Design-and-Build 5-room flats at the same Jurong West precincts were transacted between $290,000 and $318,000. That is a price growth of around 15% for the similar resale flats.

(7.4) Case study on Tampinese Executive Flats
A study was done on the capital appreciation of Executive flats in Tampines during the past 12 months.

The parameter of the study is to compare prices of two categories of E flats – one group with poor attributes (therefore lower sale prices) and the other with good attributes (therefore higher sale prices) - and track the price mobility. The study yielded the following results:

Table 14

* LF = Low Floor / MF = Mid-Floor / HF = High Floor

 The price growth year-on-year (October 06 and Nov 07) between Executive flats with same attributes:

Price increase of Lowest priced E flat = $47,000 (14.7% increase in price)
Price increase of Highest priced E flat = $119,000 (27.3% increase in price)

 Compare First half-year growth (Oct 06 and May 07) between Executive flats with same attributes:

Price increase of Lowest priced E flat = - ($3,000) (price actually dropped)
Price increase of Highest priced E flat = $12,000 (2.8% increase in price)

 Compare Second half-year growth (May 07 and Nov 07) between Executive flats with same attributes:

Price increase of Lowest priced E flat = $50,000 (15.7% increase in price)
Price increase of Highest priced E flat = $107,000 (24.5% increase in price)

The following conclusions are drawn from the study:

(i) The comparative data shows that the price increase occurred only in the second half of 2007. This means that the HDB resale market is beginning to experience the effect of a better economy and the heightened activities may continue for a few years.
(ii) Price surge in E flat occurred after prices for private homes had reached a new historic height. It also showed that many middle-income group purchasers have been squeezed out of the private home market.
(iii) Resale flats with good attributes, such as high floor level, younger in age (newer in flat design) and closer to amenities like MRT station and shopping mall, achieve higher and faster appreciation in capital value.

Myth or Reality (7) : HDB resale activities have returned to the forth after the past 8 years of doldrums. While the psf prices of private condominiums have increased by leaps and bounds, the unit floor area costs of HDB flats in the heartlands remain affordable. With more and more middle income earners being squeezed out of the private property market, resale HDB flats have regained their favour among the higher income earners – hence the increases in transaction volumes as well as resale prices of larger HDB flats such as 5-room and executive flats.
Sellers of HDB flats that attracted high COVs may upgrade to mass market private homes with spare cash from the high COVs and thereby pumping up market activities. However, the high COVs for HDB resale flats may cause mass market property prices to climb and once again put private homes out of reach of HDB upgraders.

Awkwardness (6) : More and more sellers of mass market private homes are increasing their asking prices with the logical thinking that if HDB flats could fetch more than $700,000, a four-room private condo should command at least $1 million. Before more new condos come on stream, the tug-of-war between the sellers’ asking prices and the realistic prices buyers are willing to pay may cause the market to go through a three- or four-month drought.

B – How different is this time?

The second half real estate market told a very different story from the first half. The global situation has worsened since last August with the revelation of the sub-prime mortgage problems in the US effectively sidelining the majority of buyers. While the whole year records look impressive, the detailed numbers of the second half results were worrying, to say the least.

(1) The world may go into recession following the cues from the US

The huge losses experienced on the first day of Wall Street augur ill for the entire global economy. Year 2008 will be a volatile and difficult year for the US – the world’s largest economy. The US domestic economy will slow down due to the financial market woes.

The housing crisis in the US is far from over and the credit markets and still saddled with bad debts. With write-offs of over US$40 billion by banks looking to clear their books of sub-prime loans and investments, 2008 looks set to be more of the same story.

This will certainly drag down the entire economy and put pressure on corporate earnings. The crisis is affecting everybody, not just the financial sector.

The threat of recession, inflation and even stagflation cannot be dismissed. It appears that 2008 will be amongst the most challenging market environments facing the US and the rest of the world in many years.

(2) Massive inflation causing entire market to be jittery about 2008

As houses become more expensive and prices of food and petrol continue to climb, Singapore inflation rate could hit a high of 6% in the first three months of 2008.

With an 18% to 25% upward revision, the increase in annual values of properties is significantly higher this year and the quantum of the recent taxi fare hike, food price and oil price increases are all much higher than earlier expected. As such, the inflation rate this year will exceed the Monetary Authority of Singapore’s forecast of 3.5 to 4.5 per cent for 2008.

The consumer price index (CPI) surged 4.2% in November 2007 year on year, a 25-year high. And housing value has a significant weight in the CPI.

However, the irony facing Singapore is that a likely US recession this year could ease inflationary pressure with demand for essential goods and oil going lower as a result.

(3) Inflation but a falling real estate rate

With the cheapening of US dollars, more foreign investors are bringing their funds into the Singapore system in bid to salvage the value of the money they are holding. This has resulted in two developments: firstly, an asset price inflation, and secondly a falling interest rate.

The two phenomena do not usually occur together. When they happen, that is, rising asset prices despite a falling Sibor (Singapore Interbank Offered Rate), asset price inflation will escalate.

The three-month rate has fallen from 3.44% a year ago to 2.13% in the second week of January 2008. This is a negative real interest rate as the bank’s interest rate is lower than the inflation rate.

The challenge this year for Singapore economy is how to stave off the possibility recession in the US. There will be a second round of gradual appreciation of Sing dollar against the US dollar. It is expected that Sing dollar will appreciate against the US unit from 1.43 at the end of the first quarter to 1.39 in the same period in 2009.

(4) Foreigners account for a quarter of total residential sales

Foreigners and permanent residents (PRs) chalked up 7,902 sales from January to November, which accounted for 24.9% of total residential sales so far.

The sales figures are the highest in 13 years, due to a robust regional economy and increasing arrivals of expatriates in Singapore.

Institutional investors also entered the market in a big way, picking up anything from several units to whole condo blocks and even development sites. They include Macquarie Global Property Advisors, Goldman Sachs and United States-based Wachovia Development.

The buying momentum propelled high-end condo prices pass the $4,000 psf mark and surged past the $5,000 psf mark for the very first time in local history. A 53rd floor 5,048 sq ft penthouse unit at The Orchard Residences went for $5,600 per sq ft in October, or slightly more than $28 million.

All thanks to participation of foreign buyers, other developments that have registered sales of above $4,000 psf include Hilltops, Ritz-Carlton Residences and Scotts Square.

In the meantime, MAS data shows deposits by non-residents totalled $29.8 billion in October 2007. Compared to 2002, the deposits were only $10.6 billion. Foreigners not residing in Singapore are not allowed to open bank accounts here in Singapore but the rule does not apply to individuals who intend to invest in real estate in Singapore.

(5) Foreign investment funds are top buyers of Singapore real estate

The total investment sales volume so far this year is $50.78 billion. Likewise, foreign funds are responsible for the majority of the purchases of investment properties. These foreign funds include names like Macquarie Global Property Advisors (MGPA), US-based Goldman Sachs, US-based Wachovia Development Corporation, German SEB and Dubai World Group – with MGPA topping the chart with $4.3 billion of purchases.

(6) One million foreigners making Singapore home

Singapore’s population is 4.68 million. This number has been contributed by qualified foreigners coming to Singapore in drove – to be exact 1,005,500. This is the highest number of immigrants in more than twenty years and the first time Singapore receives over a million new immigrants.

In terms of percentage rise, this year’s increase is 14.9% compared with last year which also achieved an impressive growth at 9.7%. The number of Singaporeans and permanent residents here also grew 1.8%, the same as the previous year.

In terms of population increase, the one-million-addition makes up a 4.4% rise over the previous year. The last time Singapore enjoyed a higher increase in population was in 1982 where population grew by 4.5%.

(7) Sales in the second half of 2007 were not as brisk the first

Despite strong overall sale figures for the whole year, the actual situation on the ground (especially towards the end of the year) was harsher than it appeared on paper. Let’s look at two aspects of the general market: (a) transaction figures; and, (b) marketing period (as such per listing’s holding costs).

(7.1) Transaction figures

Table 15 – Transaction figures with statistics on foreign purchasers

The allure of oceanfront living at Sentosa Cove and Keppel Bay can be seen in the second half of 2007. Despite a general weakness of the market, District 4 continues to attract strong demands from foreign buyers.

(7.2) Marketing period and holding costs
Listings took longer marketing period to sell, if they are sold at all. Below shows the statistics of marketing period (therefore holding costs) for every listing sold.

Singapore Real Estate - Buy , Sell , Rent ,invest Singapore Property
Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse & land right here.

MINDY YONG
( +65 ) 91002985
mindy@mindyyong.com ( email me )