100 of the best in MIPIM Asia awards
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One hundred of the most innovative and prestigious real estate projects in the Asia Pacific region are competing in the inaugural MIPIM Asia Awards. The Awards will be held prior to the November 28 opening ceremony for the second MIPIM Asia, the international Asia Pacific property market, to be held in Hong Kong, November 28-30, 2007.
Around 30% of the entries have been made in the ´Futura Projects´ category which recognises planning-stage projects for their architectural, technical or environmental qualities. In the running are projects from such well-known international companies as Edaw, Aedas Limited, Arquitectonica, Benoy, Omniyat Properties and Arup.
For Gilles Saint Georges Chaumet, Director of MIPIM Asia, "the success of these first MIPIM Asia Awards is driven by the remarkable dynamism in the region´s property sector. It also reflects the property industry´s interest in being highly visible at an event that brings together both regional players and leading international firms. The 2007 winners will truly be the best of the best."
Entries have flowed in from across the region with projects from 15 Asia Pacific countries. 29 entries concern projects located in China, followed by Singapore (13), Hong Kong (12), India (8), the United Arab Emirates (8), Japan (7), Australia (6), Thailand (4), South Korea (4), Vietnam (4) and one each for Macao, Indonesia, the Philippines, the Maldives and Sri Lanka.
The MIPIM Asia Awards jury will meet at the end of September to select three projects in each of the following seven categories: Business Centres, Shopping Centres, Mixed-use Buildings, Residential Developments, Hotels & Tourism Resorts, Green Buildings and Futura Projects.
The 21 nominated projects will be on view in a dedicated MIPIM Asia Awards zone throughout the event.
Chaired by Dr Robert Lie, CEO of ING Real Estate Investment Management Asia, Hong Kong, the jury of investors, developers and associations, comprises twelve of the leading property specialists operating in the Asia Pacific region: Michael Smith, Managing Director and Head of Asian Real Estate for Goldman Sachs Pte (Singapore), Thomas M. Pearson, Managing Director, Co-Head Global Real Estate Group - Asia, for Lehman Brothers Real Estate Ltd (Japan), Richard David, Managing Director, Treasury Holdings China Limited (China), Graeme Torre, Managing Director of AIG Real Estate (Hong Kong), Cheng-Soon Lau, Managing Director of INVESCO Real Estate - Asia (Hong Kong), Hiroo Mori, Senior Managing Director of Mori Building Co., Ltd (Japan), Nicholas Loup, Managing Director of Grosvenor Asia (Hong Kong), Reuben Chu, Chairman of the PGBC (Professional Green Building Council, Hong Kong), Peter Mitchell, CEO of the Asian Public Real Estate Association (Singapore), Dr Ronald Lu, President of the Hong Kong Institute of Architects and Hokyu Lee, Managing Director of the international property consultancy BHP Korea (Korea).
Friday, September 7, 2007
Strong sales at ’The Chava’
Strong sales at ’The Chava’
The Chava, the luxury apartment on Surin Beach, Phuket has received a lot of positive feedback from holiday home buyers and investors, with 65% of the units sold despite the recent property market slow down.
The luxury apartment market in Phuket is continuing to be strong compared to other segments and has become popular among holiday home buyers and investors who would like to buy a holiday home to suit their lifestyle and also earn from a rental return.
Mr. Larry Cunningham, CEO and developer of The Chava said: “We launched The Chava in May last year and have achieved sales of over 65% in fifteen months. Even though the Phuket property market has experienced a recent slow down, we continue to receive interest and positive feedback from potential buyers. We are confident that Phuket is still the most popular holiday home destination in Asia and buyers continue to show interest in buying quality apartments in prime locations”.
”The sales of our project was not only driven by the trend of increased interest in luxury apartments. Buyers and investors consider key factors such as location and quality before making a decision. At The Chava, apart from the great location on the popular Surin Beach, we invested a lot of time and money on architecture and design, and ensuring that all details of the residence are of the high quality our clients expect” Mr. Cunningham added.
The Chava project is worth 800 million baht and covers three rai overlooking Surin Beach. Surin Beach is an area well known with wealthy holiday makers from all around the world. In the nearby area of The Chava are high-end resorts such as Amanpuri, The Chedi, Twin Palms and Laguna Phuket. From the site, it takes only 10 minutes to golf courses, 15 minutes to marinas, and 15-20 minutes to entertainment, shopping centres and Phuket town.
The Chava recently launched the display apartment showcasing the quality and finishing of its unit and allows clients optional finishing or decorations for their own apartment.
The Chava consists of 45 contemporary, luxury apartments set within 5,000 sqm. of lush tropical gardens, which have been design by internationally acclaimed Paradise Designs. The Chava offers 16 unit types ranging from 151 - 332 sq metres with two to four ensuite bedrooms. Prices start from 15 million baht per unit. Ground floor units enjoy private gardens with plunge pools and the penthouse units enjoy superb sea views across Surin Beach.
In addition to a high quality build and superb architecture and design, The Chava also offers 24-hour service with concierge, valet parking and security surveillance.
All apartments include modern comforts of home and the latest in WiFi technology. Apartments are designed to create an interior courtyard sanctuary set around a magnificent 35 metre swimming pool with in pool daybeds, giving a resort-style apartment feel.
The Chava combines a distinctive lifestyle with a superb investment opportunity that maximizes both personal and financial returns. The Chava has appointed a leading property management group to manage and maintain the apartments and facilities to international five-star standards, making the investment safe and generating a return.
The project will be completed in mid 2008. The display apartment is available for inspection every day at The Chava, Surin Beach.
The Chava, the luxury apartment on Surin Beach, Phuket has received a lot of positive feedback from holiday home buyers and investors, with 65% of the units sold despite the recent property market slow down.
The luxury apartment market in Phuket is continuing to be strong compared to other segments and has become popular among holiday home buyers and investors who would like to buy a holiday home to suit their lifestyle and also earn from a rental return.
Mr. Larry Cunningham, CEO and developer of The Chava said: “We launched The Chava in May last year and have achieved sales of over 65% in fifteen months. Even though the Phuket property market has experienced a recent slow down, we continue to receive interest and positive feedback from potential buyers. We are confident that Phuket is still the most popular holiday home destination in Asia and buyers continue to show interest in buying quality apartments in prime locations”.
”The sales of our project was not only driven by the trend of increased interest in luxury apartments. Buyers and investors consider key factors such as location and quality before making a decision. At The Chava, apart from the great location on the popular Surin Beach, we invested a lot of time and money on architecture and design, and ensuring that all details of the residence are of the high quality our clients expect” Mr. Cunningham added.
The Chava project is worth 800 million baht and covers three rai overlooking Surin Beach. Surin Beach is an area well known with wealthy holiday makers from all around the world. In the nearby area of The Chava are high-end resorts such as Amanpuri, The Chedi, Twin Palms and Laguna Phuket. From the site, it takes only 10 minutes to golf courses, 15 minutes to marinas, and 15-20 minutes to entertainment, shopping centres and Phuket town.
The Chava recently launched the display apartment showcasing the quality and finishing of its unit and allows clients optional finishing or decorations for their own apartment.
The Chava consists of 45 contemporary, luxury apartments set within 5,000 sqm. of lush tropical gardens, which have been design by internationally acclaimed Paradise Designs. The Chava offers 16 unit types ranging from 151 - 332 sq metres with two to four ensuite bedrooms. Prices start from 15 million baht per unit. Ground floor units enjoy private gardens with plunge pools and the penthouse units enjoy superb sea views across Surin Beach.
In addition to a high quality build and superb architecture and design, The Chava also offers 24-hour service with concierge, valet parking and security surveillance.
All apartments include modern comforts of home and the latest in WiFi technology. Apartments are designed to create an interior courtyard sanctuary set around a magnificent 35 metre swimming pool with in pool daybeds, giving a resort-style apartment feel.
The Chava combines a distinctive lifestyle with a superb investment opportunity that maximizes both personal and financial returns. The Chava has appointed a leading property management group to manage and maintain the apartments and facilities to international five-star standards, making the investment safe and generating a return.
The project will be completed in mid 2008. The display apartment is available for inspection every day at The Chava, Surin Beach.
Jakarta: Local drive
Jakarta: Local drive
By Terry Blackburn
For many years, the real estate money in Jakarta has gone one way – out of the city into places such as KL, Sydney, Perth and especially Singapore, the overseas investment destination of choice for wealthy Indonesians. Now, though, some of the capital is beginning to flow in the opposite direction. Luxury real estate developers are targeting both local and adventurous foreign buyers, looking either for a home in the city or a long-term investment in one of the region’s emerging markets.
"In terms of price, Jakarta is much lower than Singapore and still somewhat lower than Kuala Lumpur or Bangkok. But in terms of quality, I think it does not differ a lot," says Anton Sitorus, Jones Lang LaSalle’s Head of Research for Indonesia.
The new luxury boom in the capital is being spearheaded by the likes of branded developments by St Regis and Kempinski, the eye-catching Regatta by Burj Al Arab designer Atkins, and the mixed-use Essence on Darmawangsa. Although foreign investors make up a small percentage of the market overall, they’re extremely active in the high end of the market.
"Approximately 40% of our buyers are from Korea, America, England, Australia, Singapore, Malaysia, Hong Kong, Japan and China," admits Ivada L. Santoso, Marketing Director for the Essence on Darmawangsa.
This is a high percentage considering the restrictive investment laws, which make foreign ownership difficult. As in Bali and elsewhere in the country, various titles exist that allow foreigners to have long leases and effective control of land and property, as well as nominee schemes allowing companies to own properties.
In practice, where apartments are concerned in urban Jakarta, this generally means a long lease with an option to sell. "We accommodate the regulations by using an Option Agreement, thus the buyer has the right to sell the property, so there’s no difficulty in attracting foreigners," Ivada says.
However, many industry players believe the government could be doing more to attract foreign investors. "The private sector has frequently asked the government to provide more relaxed regulations concerning foreign ownership; to learn from Malaysia and Singapore," Sitorus says. "But so far, the government has only accommodated the regulation about land-ownership periods."
Downtown appeal
As with most other luxury products, the Essence on Darmawangsa is located in the south of the city, on the outskirts of the ‘Golden Triangle’ central business district. The project features three apartment towers and a five-star hotel set in 5.3 hectares of land, 70% of which will be dedicated to landscaped gardens and a water park.
Since launching in 2005, the development has recorded impressive sales for its two principle residential towers. "In our first two days of launching the Eminence Tower, we sold 60%," Ivada says. "At the moment, we have sold 95%. As for the South Tower, at the present time we have sold 50%."
Ironically, the accommodation boom in the CBD is helped along by Jakarta’s poor infrastructure, particularly its notoriously bad traffic and lack of a mass transit system, which ensures that the suburbs aren’t as an attractive an option as in other Asian cities.
"The Jakarta residential market will continue to be dominated by downtown and CBD apartments, partly driven by the global trend for ‘inner city living’," says Hary Jap, President of Indoproperty Real Estate. "The traffic jams and the high costs of landed property mean living in the suburbs is no longer suitable for most Jakarta people working in the CBD."
Sitorus concurs that the business district area is the most exciting area for new developments. "Projects in prime CBD areas that are offered between Rp300-700 million (US$33,000-$77,000) per unit, for one or two bedrooms, are what interests me most in the market right now," he says. "Due to the location, these projects have better prospects for rental or capital increment."
That said, the same infrastructure problems are also hampering the city in terms of foreign appeal, as Jap explains. "People soon learn that it’s all related to things not being well planned, even going back to the Dutch era, such as flooding and mass transportation. The government is now studying the traffic and looking at buses and water transportation, although these are yet to be proven as long-term solutions."
Upward curve
Despite these setbacks, the city’s real estate market as a whole has bounced back impressively since the 1997/8 crash. Surprisingly, the residential sector has already surpassed pre-1998 growth, while other sectors are developing more slowly.
During the last decade’s peak between 1995-1997, ‘new completions’ grew around 5,000 units per annum. Between 2004-2007, the figure is predicted to average out at about 10,000 units per annum. In other property sectors, the market has shown some positive growth yet is still below pre-1998 levels.
In fact, the residential market could be judged to be in better shape than ever, as it’s underpinned by local investment with a minimum of foreign speculation. "In the past, property demand was supported by high economic growth and strong foreign investment, but today property demand is primarily driven by local demand," Sitorus explains.
Like elsewhere in Southeast Asia, there’s much greater stability in residential property in the current growth cycle. Lessons have been learnt across the board, by the government, by investors and by financial institutions.
"After the crises, the financial sector is wiser in giving loans to developers, which was one of the main causes of the crises," Jap says. "It’s safe to say that the main difference after 1997 is that more projects are financed by the consumer. The projects offered are more consumer centred, compared to the ‘new town opening’ style before the crises. Location choice is more sensitive. The consumers are more sceptical towards big-scale projects, and developers’ good names and corporate branding are big issues now."
Brand building
Branding is being utilised in two ways, both through the power of big international names such as St Regis and Kempinksi, and through commissioning internationally renowned architects and designers to work on prestige projects. The latter trend is exemplified by Regatta, which launched in April 2006 and is set to fulfil its self-titled ‘icon’ status due to its distinctive curved design by WS Atkins, the firm behind Dubai’s Burj Al Arab hotel.
Like its famed elder sister, Regatta will follow a nautical theme and feature an aerodynamically shaped hotel as its centrepiece, set to be one of the most striking landscape features overlooking the Java Sea, while series of 10 apartment towers will sport the same curves. Indeed, the name Regatta was inspired by the vision that the towers will"“symbolise tall ships sailing around the ‘lighthouse’ represented by the hotel". All the apartment towers will be named after major port cities of the world, and each is orientated toward their corresponding city.
Badan Kerjasama Mutiara Buana (BKMB), the local developer of Regatta, is betting big on Jakarta’s continued growth with its coastside location outside the CBD, which is linked by toll road access.
Launched in April, the St Regis Hotel and Residences, Jakarta is set to be completed in 2011 and will have 284 residential units for sale. As with most luxury developments in the city, the project will be mixed use, including a hotel, but will have the added advantage of having one of Starwood’s most prestigious brands behind it.
“The strategic location of the project in the heart of Jakarta, combined with the bespoke service of the St Regis brand, will make this property an extremely attractive choice for discerning travellers,” Ross Klein, President of the Luxury Brand Group, said at the launch. “Offering premium hotel accommodation and luxurious residences, St Regis Hotel and Residences, Jakarta will be a welcome addition to the city’s booming financial district and will help meet the surge in demand from multinational corporations as well as Jakarta’s growing numbers of tourists.”
With all this new stock arriving on the market, speculative investors and non-owner occupiers should still be wary, as one sector of the market that has been sluggish over the last few years is rentals of luxury apartments.
“The luxury rental apartment market depends, to a certain extent, on the expatriate market, but since the growth of expats in Jakarta remains slow, demand is also limited, not to mention the competition from luxury houses,” Sitorus says. “On the other hand, new supply has grown quite significantly, boosted by condominium developments, thus triggering higher competition. Going forward, we expect the market to face higher vacancy rates and limited rental growth.”
Jap agrees, but also highlights the potential of strong capital gains. “I always doubt that the luxury rental market can beat or even be at the same level as the ordinary rental market. The reason is very simple: the target is the upper end of the pyramid, which is rare, and usually luxury means adding more price at the same utility level. This is why we usually get lower rentals [psf] for bigger units,” he says.
“In my opinion, it’s better to expect higher capital gains for this kind of market, since rarity is the keyword here. Compared to neighbouring countries, investing in Jakarta is still considered very cheap by regional currency standards and brings a good return. Most investments bring handsome capital gains during a short period of time.”
By Terry Blackburn
For many years, the real estate money in Jakarta has gone one way – out of the city into places such as KL, Sydney, Perth and especially Singapore, the overseas investment destination of choice for wealthy Indonesians. Now, though, some of the capital is beginning to flow in the opposite direction. Luxury real estate developers are targeting both local and adventurous foreign buyers, looking either for a home in the city or a long-term investment in one of the region’s emerging markets.
"In terms of price, Jakarta is much lower than Singapore and still somewhat lower than Kuala Lumpur or Bangkok. But in terms of quality, I think it does not differ a lot," says Anton Sitorus, Jones Lang LaSalle’s Head of Research for Indonesia.
The new luxury boom in the capital is being spearheaded by the likes of branded developments by St Regis and Kempinski, the eye-catching Regatta by Burj Al Arab designer Atkins, and the mixed-use Essence on Darmawangsa. Although foreign investors make up a small percentage of the market overall, they’re extremely active in the high end of the market.
"Approximately 40% of our buyers are from Korea, America, England, Australia, Singapore, Malaysia, Hong Kong, Japan and China," admits Ivada L. Santoso, Marketing Director for the Essence on Darmawangsa.
This is a high percentage considering the restrictive investment laws, which make foreign ownership difficult. As in Bali and elsewhere in the country, various titles exist that allow foreigners to have long leases and effective control of land and property, as well as nominee schemes allowing companies to own properties.
In practice, where apartments are concerned in urban Jakarta, this generally means a long lease with an option to sell. "We accommodate the regulations by using an Option Agreement, thus the buyer has the right to sell the property, so there’s no difficulty in attracting foreigners," Ivada says.
However, many industry players believe the government could be doing more to attract foreign investors. "The private sector has frequently asked the government to provide more relaxed regulations concerning foreign ownership; to learn from Malaysia and Singapore," Sitorus says. "But so far, the government has only accommodated the regulation about land-ownership periods."
Downtown appeal
As with most other luxury products, the Essence on Darmawangsa is located in the south of the city, on the outskirts of the ‘Golden Triangle’ central business district. The project features three apartment towers and a five-star hotel set in 5.3 hectares of land, 70% of which will be dedicated to landscaped gardens and a water park.
Since launching in 2005, the development has recorded impressive sales for its two principle residential towers. "In our first two days of launching the Eminence Tower, we sold 60%," Ivada says. "At the moment, we have sold 95%. As for the South Tower, at the present time we have sold 50%."
Ironically, the accommodation boom in the CBD is helped along by Jakarta’s poor infrastructure, particularly its notoriously bad traffic and lack of a mass transit system, which ensures that the suburbs aren’t as an attractive an option as in other Asian cities.
"The Jakarta residential market will continue to be dominated by downtown and CBD apartments, partly driven by the global trend for ‘inner city living’," says Hary Jap, President of Indoproperty Real Estate. "The traffic jams and the high costs of landed property mean living in the suburbs is no longer suitable for most Jakarta people working in the CBD."
Sitorus concurs that the business district area is the most exciting area for new developments. "Projects in prime CBD areas that are offered between Rp300-700 million (US$33,000-$77,000) per unit, for one or two bedrooms, are what interests me most in the market right now," he says. "Due to the location, these projects have better prospects for rental or capital increment."
That said, the same infrastructure problems are also hampering the city in terms of foreign appeal, as Jap explains. "People soon learn that it’s all related to things not being well planned, even going back to the Dutch era, such as flooding and mass transportation. The government is now studying the traffic and looking at buses and water transportation, although these are yet to be proven as long-term solutions."
Upward curve
Despite these setbacks, the city’s real estate market as a whole has bounced back impressively since the 1997/8 crash. Surprisingly, the residential sector has already surpassed pre-1998 growth, while other sectors are developing more slowly.
During the last decade’s peak between 1995-1997, ‘new completions’ grew around 5,000 units per annum. Between 2004-2007, the figure is predicted to average out at about 10,000 units per annum. In other property sectors, the market has shown some positive growth yet is still below pre-1998 levels.
In fact, the residential market could be judged to be in better shape than ever, as it’s underpinned by local investment with a minimum of foreign speculation. "In the past, property demand was supported by high economic growth and strong foreign investment, but today property demand is primarily driven by local demand," Sitorus explains.
Like elsewhere in Southeast Asia, there’s much greater stability in residential property in the current growth cycle. Lessons have been learnt across the board, by the government, by investors and by financial institutions.
"After the crises, the financial sector is wiser in giving loans to developers, which was one of the main causes of the crises," Jap says. "It’s safe to say that the main difference after 1997 is that more projects are financed by the consumer. The projects offered are more consumer centred, compared to the ‘new town opening’ style before the crises. Location choice is more sensitive. The consumers are more sceptical towards big-scale projects, and developers’ good names and corporate branding are big issues now."
Brand building
Branding is being utilised in two ways, both through the power of big international names such as St Regis and Kempinksi, and through commissioning internationally renowned architects and designers to work on prestige projects. The latter trend is exemplified by Regatta, which launched in April 2006 and is set to fulfil its self-titled ‘icon’ status due to its distinctive curved design by WS Atkins, the firm behind Dubai’s Burj Al Arab hotel.
Like its famed elder sister, Regatta will follow a nautical theme and feature an aerodynamically shaped hotel as its centrepiece, set to be one of the most striking landscape features overlooking the Java Sea, while series of 10 apartment towers will sport the same curves. Indeed, the name Regatta was inspired by the vision that the towers will"“symbolise tall ships sailing around the ‘lighthouse’ represented by the hotel". All the apartment towers will be named after major port cities of the world, and each is orientated toward their corresponding city.
Badan Kerjasama Mutiara Buana (BKMB), the local developer of Regatta, is betting big on Jakarta’s continued growth with its coastside location outside the CBD, which is linked by toll road access.
Launched in April, the St Regis Hotel and Residences, Jakarta is set to be completed in 2011 and will have 284 residential units for sale. As with most luxury developments in the city, the project will be mixed use, including a hotel, but will have the added advantage of having one of Starwood’s most prestigious brands behind it.
“The strategic location of the project in the heart of Jakarta, combined with the bespoke service of the St Regis brand, will make this property an extremely attractive choice for discerning travellers,” Ross Klein, President of the Luxury Brand Group, said at the launch. “Offering premium hotel accommodation and luxurious residences, St Regis Hotel and Residences, Jakarta will be a welcome addition to the city’s booming financial district and will help meet the surge in demand from multinational corporations as well as Jakarta’s growing numbers of tourists.”
With all this new stock arriving on the market, speculative investors and non-owner occupiers should still be wary, as one sector of the market that has been sluggish over the last few years is rentals of luxury apartments.
“The luxury rental apartment market depends, to a certain extent, on the expatriate market, but since the growth of expats in Jakarta remains slow, demand is also limited, not to mention the competition from luxury houses,” Sitorus says. “On the other hand, new supply has grown quite significantly, boosted by condominium developments, thus triggering higher competition. Going forward, we expect the market to face higher vacancy rates and limited rental growth.”
Jap agrees, but also highlights the potential of strong capital gains. “I always doubt that the luxury rental market can beat or even be at the same level as the ordinary rental market. The reason is very simple: the target is the upper end of the pyramid, which is rare, and usually luxury means adding more price at the same utility level. This is why we usually get lower rentals [psf] for bigger units,” he says.
“In my opinion, it’s better to expect higher capital gains for this kind of market, since rarity is the keyword here. Compared to neighbouring countries, investing in Jakarta is still considered very cheap by regional currency standards and brings a good return. Most investments bring handsome capital gains during a short period of time.”
Verve Suites launch Vibe Tower
Verve Suites launch Vibe Tower
By Pete Wong
Bukit Kiara Properties (BKP) recently soft launched the second block of its Verve Suites project in Mont’Kiara. Named Vibe Tower, the block was almost 70% sold on day one of its soft launch, despite the asking price of between RM597-760psf. Prices in the surrounding area average between RM500-600psf, while the nearby Casa Kiara II project starts from RM426psf.
BKP is counting on its solid reputation as a niche developer and the fact that all units are fully furnished with designer fittings, enabling buyers to literally move in after collecting the key. The downside is that each unit will look exactly the same as the other few hundred units on the block.
BKP is a maestro of sorts when it comes to marketing and brand building. By staggering the launch of the four towers within its Verve Suites project, investor interest is sustained over a longer period and the developer is able to adjust its pricing accordingly based on demand and prevailing market sentiments. The first block, Viva Tower, was launched in early 2006 and is almost sold out.
In terms of ideas, Vibe Tower seems to have outdone Viva. The entire rooftop, called Hypercubes Lounge (pictured), has been turned into an entertainment and relaxation area. While a rooftop lounge area with glass-edged swimming pool is nothing new, BKP tops it up with smaller plunge pools, private jacuzzis and glass-enclosed dining room cum kitchen with retractable roof, among other attractions.
Investors who missed out on choice units in the first and second blocks need not worry. Word has it that the third block will be released soon, although it’s expected that the asking price will inch up for each new release. The developer is expected to save the best for last, as the fourth and final block is located furthest away from the high-tension cables that encircle the condominiums around the area.
Potential investors should note that while every block will have their own unique features, residents are free to utilise the facilities on every block, which means, when fully completed, there could be 1,500 residents queueing up to use the two tennis courts, gym, pools and other facilities. One potential concern is that there’s just one access road to the Verve Suites, and traffic can get quite hectic, especially in the nearby international school vicinity during school hours.
Verve Suites sits on commercial land, which means there will be no handing over of title deeds to unit owners and no chance of a resident committee with mandate being set up in future. BKP will manage the property and decide on the maintenance fees in perpetuity.
However, BKP has a good track record established by the founding Group Chairman, Dato’ Alan Tong Kok Mau, dubbed the ’condo king’ and attributed with putting Mont’Kiara on the property map. BKP’s careful management of its branding and reputation has been outstanding, and to increase the capital values of Verve Suites, BKP will build a Performing Arts Centre on the retail front of the project.
Even though apartments are small, ranging from 633-890sqft for standard units, and the price per square foot relatively high, the entry price of around RM400,000 is still within the budget of many young professionals and working couples. There’s also the attraction of an expected high annual rental yield, with current estimates around 12%.
Gauging from the popularity of Verve Suites, investors are prepared for the slight inconveniences and more than willing to pay a premium to have a Mont’Kiara address and the perceived notion of a quality lifestyle within the popular expatriate enclave.
Elsewhere in Mont’Kiara …
One of the more interesting pieces of news of late is Mycom’s announcement to develop a huge 10-acre tract in the Mont’Kiara vicinity in a joint-venture deal with London-based Westcity Plc, part of an upcoming supply of new residential and retail units that should put a check on the soaring prices of properties in the area.
Ireka Group has recently unveiled Seni Mont’Kiara, its third project in the area. Sitting on about nine acres of elevated freehold land, probably the highest in the vicinity, the development will feature 605 large units in two 40-storey towers and two 12-storey blocks, and is set to be distinguished by a permanent art gallery. Grand views of the city skyline are promised for most units, which start from 2,400sqft.
Meanwhile, BTC Development is planning to launch landed homes on a three-acre freehold plot in Mont’Kiara in the second half of 2008. BTC’s Development Manager Hii Ik Tiing said the company will offer over 30 units of two and three-storey townhouses, semi-detached homes and bungalows at prices starting from RM500psf.
By Pete Wong
Bukit Kiara Properties (BKP) recently soft launched the second block of its Verve Suites project in Mont’Kiara. Named Vibe Tower, the block was almost 70% sold on day one of its soft launch, despite the asking price of between RM597-760psf. Prices in the surrounding area average between RM500-600psf, while the nearby Casa Kiara II project starts from RM426psf.
BKP is counting on its solid reputation as a niche developer and the fact that all units are fully furnished with designer fittings, enabling buyers to literally move in after collecting the key. The downside is that each unit will look exactly the same as the other few hundred units on the block.
BKP is a maestro of sorts when it comes to marketing and brand building. By staggering the launch of the four towers within its Verve Suites project, investor interest is sustained over a longer period and the developer is able to adjust its pricing accordingly based on demand and prevailing market sentiments. The first block, Viva Tower, was launched in early 2006 and is almost sold out.
In terms of ideas, Vibe Tower seems to have outdone Viva. The entire rooftop, called Hypercubes Lounge (pictured), has been turned into an entertainment and relaxation area. While a rooftop lounge area with glass-edged swimming pool is nothing new, BKP tops it up with smaller plunge pools, private jacuzzis and glass-enclosed dining room cum kitchen with retractable roof, among other attractions.
Investors who missed out on choice units in the first and second blocks need not worry. Word has it that the third block will be released soon, although it’s expected that the asking price will inch up for each new release. The developer is expected to save the best for last, as the fourth and final block is located furthest away from the high-tension cables that encircle the condominiums around the area.
Potential investors should note that while every block will have their own unique features, residents are free to utilise the facilities on every block, which means, when fully completed, there could be 1,500 residents queueing up to use the two tennis courts, gym, pools and other facilities. One potential concern is that there’s just one access road to the Verve Suites, and traffic can get quite hectic, especially in the nearby international school vicinity during school hours.
Verve Suites sits on commercial land, which means there will be no handing over of title deeds to unit owners and no chance of a resident committee with mandate being set up in future. BKP will manage the property and decide on the maintenance fees in perpetuity.
However, BKP has a good track record established by the founding Group Chairman, Dato’ Alan Tong Kok Mau, dubbed the ’condo king’ and attributed with putting Mont’Kiara on the property map. BKP’s careful management of its branding and reputation has been outstanding, and to increase the capital values of Verve Suites, BKP will build a Performing Arts Centre on the retail front of the project.
Even though apartments are small, ranging from 633-890sqft for standard units, and the price per square foot relatively high, the entry price of around RM400,000 is still within the budget of many young professionals and working couples. There’s also the attraction of an expected high annual rental yield, with current estimates around 12%.
Gauging from the popularity of Verve Suites, investors are prepared for the slight inconveniences and more than willing to pay a premium to have a Mont’Kiara address and the perceived notion of a quality lifestyle within the popular expatriate enclave.
Elsewhere in Mont’Kiara …
One of the more interesting pieces of news of late is Mycom’s announcement to develop a huge 10-acre tract in the Mont’Kiara vicinity in a joint-venture deal with London-based Westcity Plc, part of an upcoming supply of new residential and retail units that should put a check on the soaring prices of properties in the area.
Ireka Group has recently unveiled Seni Mont’Kiara, its third project in the area. Sitting on about nine acres of elevated freehold land, probably the highest in the vicinity, the development will feature 605 large units in two 40-storey towers and two 12-storey blocks, and is set to be distinguished by a permanent art gallery. Grand views of the city skyline are promised for most units, which start from 2,400sqft.
Meanwhile, BTC Development is planning to launch landed homes on a three-acre freehold plot in Mont’Kiara in the second half of 2008. BTC’s Development Manager Hii Ik Tiing said the company will offer over 30 units of two and three-storey townhouses, semi-detached homes and bungalows at prices starting from RM500psf.
Singapore hits 12-year high
Singapore hits 12-year high
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Singapore´s Consumer Price Index (CPI) hit a 12-year inflationary high of 2.6% in July as the increased Goods and Services Tax (GST) were felt alongside soaring housing costs and inflated food prices.
The CPI rose by 2.1% over June 2007 and 2.6% slump, compared with July last year, Singapore´s Department of Statistics said in a statement on Thursday. It also noted that housing costs reflected the most growth at 4.9% due to higher electricity tariffs, rental prices and maintenance charges but upward movement was seen in all areas.
The increase surpassed the expectations of Dow Jones economists who estimated a 1.8% rise in a Newswires poll. July´s figures represent the fastest CPI increase since January 1995. Food prices, including vegetables, fruit, fish and milk powder increased 1.4% while health care rose 2.2%
Higher fees at universities and commercial institutions led to a 2.1% increase in the education and stationary sector, at a time when Singapore´s government has been debating the construction of a new university to meet consumer demand. The GST increase from 5% to 7% on July 1st was likely a contributing factor, the Department acknowledged.
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Singapore´s Consumer Price Index (CPI) hit a 12-year inflationary high of 2.6% in July as the increased Goods and Services Tax (GST) were felt alongside soaring housing costs and inflated food prices.
The CPI rose by 2.1% over June 2007 and 2.6% slump, compared with July last year, Singapore´s Department of Statistics said in a statement on Thursday. It also noted that housing costs reflected the most growth at 4.9% due to higher electricity tariffs, rental prices and maintenance charges but upward movement was seen in all areas.
The increase surpassed the expectations of Dow Jones economists who estimated a 1.8% rise in a Newswires poll. July´s figures represent the fastest CPI increase since January 1995. Food prices, including vegetables, fruit, fish and milk powder increased 1.4% while health care rose 2.2%
Higher fees at universities and commercial institutions led to a 2.1% increase in the education and stationary sector, at a time when Singapore´s government has been debating the construction of a new university to meet consumer demand. The GST increase from 5% to 7% on July 1st was likely a contributing factor, the Department acknowledged.
Asian tourism joint venture
Asian tourism joint venture
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Tourism officials from Cambodia, Thailand and Vietnam have gathered at a meeting in Cambodia´s Sihanoukville to look into ways to boost the development of tourism in the three countries´ common sea area.
Cambodia´s Secretary of State for Tourism, Thong Khon, said after the meeting that participants had agreed upon measures to strengthen cooperation among the three countries. This new project has come to light after neighbouring Asian cities sense that boasting their tourism would lead to greater investment into property areas within their countries.
High on the agenda of the meeting were discussions on the training of human resources for sea tourism, linkage tours between tourism destinations in the three countries, as well as the exchange of experience and tour operation management in the tourism sector. The second meeting of its kind is scheduled to take place in Thailand in 2008.
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Tourism officials from Cambodia, Thailand and Vietnam have gathered at a meeting in Cambodia´s Sihanoukville to look into ways to boost the development of tourism in the three countries´ common sea area.
Cambodia´s Secretary of State for Tourism, Thong Khon, said after the meeting that participants had agreed upon measures to strengthen cooperation among the three countries. This new project has come to light after neighbouring Asian cities sense that boasting their tourism would lead to greater investment into property areas within their countries.
High on the agenda of the meeting were discussions on the training of human resources for sea tourism, linkage tours between tourism destinations in the three countries, as well as the exchange of experience and tour operation management in the tourism sector. The second meeting of its kind is scheduled to take place in Thailand in 2008.
Industrial property markets upbeat
Industrial property markets upbeat
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CB Richard Ellis Reports Asian Industrial Property Markets Remained Largely Upbeat In The First Half of 2007
The second quarter continued to record upbeat performance in most of Asia´s industrial property markets, buttressed by sustained growth in the manufacturing sector and robust demand in logistics facilities. Industrial land prices in China appreciated further following the establishment of a system of minimum industrial land prices and the implementation of mandatory use of market mechanisms in the primary sales of industrial land.
In Japan, vacancy at large-scale multi-tenant distribution centres in and around Tokyo edged up by 50 basis points over the quarter to 8.9 per cent, as continued demand from 3PL operators was offset by the completion of new facilities. With a strong development pipeline, competition among landlords to attract tenants intensified, resulting in downward pressure on rents. Despite weaker market conditions, logistics assets continued to attract interest from both overseas and domestic private funds, and market sentiment suggests that the perceived risk premium for the sector is diminishing on the back of its growing acceptance as an investment class.
Average rents for all industrial space in Singapore continued to increase in the second quarter of 2007, with high-tech space posting its highest quarterly increase in five years. Rents are expected to rise further due to supply constraints in the office market and increasing demand amid optimism about business conditions.
The combined effect of the newly opened Hong Kong-Shenzhen Western Corridor and booming trading activity in Hong Kong has ensured that demand for local industrial properties persisted and property values continued to rise in the second quarter. However, limited stock and multiple ownership of local industrial properties made large-scale acquisitions difficult and smaller industrial buildings made up most of the quarter´s en bloc transactions.
In Mainland China, the second quarter saw full implementation of the policies requiring industrial land to be sold through public bidding, auction and listing. Industrial property rents and prices in cities under survey generally continued to increase or remained stable.
In Beijing, the average industrial rent was RMB 52.1 per square meter, an increase of 2 per cent compared with the first quarter. The price of industrial land, at RMB 1,200 per square meter, registered 4.1 per cent growth compared with the previous quarter. The land use rights of 120 industrial sites in Shanghai were transferred under the new regime during the second quarter. Industrial land prices rose 2.2 per cent quarter on quarter to RMB 898.8 per square meter (RMB 83.5 per square feet), while the average facility rent increased 0.8 per cent to RMB 31.5 per square meter (RMB 2.9 per square feet) per month. Guangzhou´s industrial property market was relatively stable during the second quarter. Both the average rents and land prices for industrial property remained the same as the previous quarter, with rents averaging RMB 25.2 per square meter per month and prices averaging RMB 445.3 per square meter. Chengdu´s industrial sector continued to develop rapidly in the second quarter of 2007, with concentrated industrial development zones attracting increasing numbers of enterprises.
In Vietnam, the value of Ho Chi Minh City´s industrial output increased by 12.6 per cent quarter on quarter in the first half of 2007, but at a rate slightly lower than the 13 per cent growth rate during the same period last year. Lawsuits regarding leather and footwear exports to Europe and garment and textile exports to the United States have led to the loss of some major contracts, one cause of the drop in the growth rate. However major high-tech investments and industrial park development projects were announced during the quarter. Hanoi´s second quarter GDP growth of 11.2 per cent was the highest in the past five years. During the first half of 2007, an estimated US$120 million of investment capital entered industrial parks, 71 per cent of the amount in the same period of 2006, with the decline due to lack of available space. The total income of FDI enterprises in industrial parks increased sharply as WTO commitments enabled direct transactions with overseas partners with preferential tariffs and trading rules.
The prospect of a general election in Thailand at the end of the year or in early 2008 acted to slightly improve market confidence in the second quarter, while the government´s approval of tax incentives for automakers investing at least THB 5 billion in eco-car manufacturing spurred investment in the sector. However sales of industrial land in the second quarter remained subdued and the full impact of these positive developments is only likely to be felt from the second half of the year onwards.
Activity in the semiconductor, manufacturing and electronics sectors continued to dominate activity in the Philippines´ industrial property markets. Amid a shortage of traditional office space, the majority of ICT/ITeS companies have relocated to business and industrial parks to take advantage of the flexibility and incentives they offer. There has also been strong demand for industrial properties from shipbuilding, logistics and utilities companies, due to the present upbeat demand conditions.
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CB Richard Ellis Reports Asian Industrial Property Markets Remained Largely Upbeat In The First Half of 2007
The second quarter continued to record upbeat performance in most of Asia´s industrial property markets, buttressed by sustained growth in the manufacturing sector and robust demand in logistics facilities. Industrial land prices in China appreciated further following the establishment of a system of minimum industrial land prices and the implementation of mandatory use of market mechanisms in the primary sales of industrial land.
In Japan, vacancy at large-scale multi-tenant distribution centres in and around Tokyo edged up by 50 basis points over the quarter to 8.9 per cent, as continued demand from 3PL operators was offset by the completion of new facilities. With a strong development pipeline, competition among landlords to attract tenants intensified, resulting in downward pressure on rents. Despite weaker market conditions, logistics assets continued to attract interest from both overseas and domestic private funds, and market sentiment suggests that the perceived risk premium for the sector is diminishing on the back of its growing acceptance as an investment class.
Average rents for all industrial space in Singapore continued to increase in the second quarter of 2007, with high-tech space posting its highest quarterly increase in five years. Rents are expected to rise further due to supply constraints in the office market and increasing demand amid optimism about business conditions.
The combined effect of the newly opened Hong Kong-Shenzhen Western Corridor and booming trading activity in Hong Kong has ensured that demand for local industrial properties persisted and property values continued to rise in the second quarter. However, limited stock and multiple ownership of local industrial properties made large-scale acquisitions difficult and smaller industrial buildings made up most of the quarter´s en bloc transactions.
In Mainland China, the second quarter saw full implementation of the policies requiring industrial land to be sold through public bidding, auction and listing. Industrial property rents and prices in cities under survey generally continued to increase or remained stable.
In Beijing, the average industrial rent was RMB 52.1 per square meter, an increase of 2 per cent compared with the first quarter. The price of industrial land, at RMB 1,200 per square meter, registered 4.1 per cent growth compared with the previous quarter. The land use rights of 120 industrial sites in Shanghai were transferred under the new regime during the second quarter. Industrial land prices rose 2.2 per cent quarter on quarter to RMB 898.8 per square meter (RMB 83.5 per square feet), while the average facility rent increased 0.8 per cent to RMB 31.5 per square meter (RMB 2.9 per square feet) per month. Guangzhou´s industrial property market was relatively stable during the second quarter. Both the average rents and land prices for industrial property remained the same as the previous quarter, with rents averaging RMB 25.2 per square meter per month and prices averaging RMB 445.3 per square meter. Chengdu´s industrial sector continued to develop rapidly in the second quarter of 2007, with concentrated industrial development zones attracting increasing numbers of enterprises.
In Vietnam, the value of Ho Chi Minh City´s industrial output increased by 12.6 per cent quarter on quarter in the first half of 2007, but at a rate slightly lower than the 13 per cent growth rate during the same period last year. Lawsuits regarding leather and footwear exports to Europe and garment and textile exports to the United States have led to the loss of some major contracts, one cause of the drop in the growth rate. However major high-tech investments and industrial park development projects were announced during the quarter. Hanoi´s second quarter GDP growth of 11.2 per cent was the highest in the past five years. During the first half of 2007, an estimated US$120 million of investment capital entered industrial parks, 71 per cent of the amount in the same period of 2006, with the decline due to lack of available space. The total income of FDI enterprises in industrial parks increased sharply as WTO commitments enabled direct transactions with overseas partners with preferential tariffs and trading rules.
The prospect of a general election in Thailand at the end of the year or in early 2008 acted to slightly improve market confidence in the second quarter, while the government´s approval of tax incentives for automakers investing at least THB 5 billion in eco-car manufacturing spurred investment in the sector. However sales of industrial land in the second quarter remained subdued and the full impact of these positive developments is only likely to be felt from the second half of the year onwards.
Activity in the semiconductor, manufacturing and electronics sectors continued to dominate activity in the Philippines´ industrial property markets. Amid a shortage of traditional office space, the majority of ICT/ITeS companies have relocated to business and industrial parks to take advantage of the flexibility and incentives they offer. There has also been strong demand for industrial properties from shipbuilding, logistics and utilities companies, due to the present upbeat demand conditions.
Investment in Vietnam complex by US
Investment in Vietnam complex by US
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Vietnam´s President Nguyen Minh Triet has applauded a plan by the Gillmann Group, Fidelity Ventures and partners from the US to invest in a US$5 billion recreational complex in southern Ba Ria-Vung Tau Province.
While receiving Gillmann Group CEO Fred Gillmann, Fidelity Ventures President and Director Xuan Vu (Peter) Nguyen and partner representatives here yesterday, President Triet said Vietnam has spared no efforts to improve its investment environment as it looks to attract more foreign investment to the countrys already significant economic progress.
"An increasing number of foreign investors have flocked to Vietnam in the recent past, creating an impetus for the investors themselves as well as their Vietnamese partners," he
said.
The State leader also pointed to Vietnam´s accession to the World Trade Organisation (WTO) as another advantage for foreign investors and hoped that Gillmann Group and Fidelity Ventures would be successful in Vietnam.
The two guests briefed President Triet of their ambitious plan, saying Vietnam possesses wonderful beaches where resorts and recreational centres should be built to bring in more foreign holidaymakers.
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Vietnam´s President Nguyen Minh Triet has applauded a plan by the Gillmann Group, Fidelity Ventures and partners from the US to invest in a US$5 billion recreational complex in southern Ba Ria-Vung Tau Province.
While receiving Gillmann Group CEO Fred Gillmann, Fidelity Ventures President and Director Xuan Vu (Peter) Nguyen and partner representatives here yesterday, President Triet said Vietnam has spared no efforts to improve its investment environment as it looks to attract more foreign investment to the countrys already significant economic progress.
"An increasing number of foreign investors have flocked to Vietnam in the recent past, creating an impetus for the investors themselves as well as their Vietnamese partners," he
said.
The State leader also pointed to Vietnam´s accession to the World Trade Organisation (WTO) as another advantage for foreign investors and hoped that Gillmann Group and Fidelity Ventures would be successful in Vietnam.
The two guests briefed President Triet of their ambitious plan, saying Vietnam possesses wonderful beaches where resorts and recreational centres should be built to bring in more foreign holidaymakers.
Malaysia contractor wins KL build
Malaysia contractor wins KL build
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Putrajaya Perdana Bhd just announced its wholly-owned subsidiary, Putra Perdana Construction Sdn Bhd, has accepted a letter of award from Bandar Raya Developments Bhd to move forward with the luxurious condominium development in Taman Bukit Bandaraya, Kuala Lumpur for RM279 million.
The project involves the construction of 229 condominium units, a five-level basement parking lot and amenities, one three-storey clubhouse and three three-storey houses outfitted with swimming pools inn Jalan Menerung in Taman Bukit Bandaraya, it said in a statement to Bursa Malaysia on Aug 28th.
The date of site possession is 25th August 2007 and the date of completion is on 3rd July 2009. The project is expected to have a positive impact on the earnings and net assets of the group for the financial years ending 31 March 2008 to 2010.
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Putrajaya Perdana Bhd just announced its wholly-owned subsidiary, Putra Perdana Construction Sdn Bhd, has accepted a letter of award from Bandar Raya Developments Bhd to move forward with the luxurious condominium development in Taman Bukit Bandaraya, Kuala Lumpur for RM279 million.
The project involves the construction of 229 condominium units, a five-level basement parking lot and amenities, one three-storey clubhouse and three three-storey houses outfitted with swimming pools inn Jalan Menerung in Taman Bukit Bandaraya, it said in a statement to Bursa Malaysia on Aug 28th.
The date of site possession is 25th August 2007 and the date of completion is on 3rd July 2009. The project is expected to have a positive impact on the earnings and net assets of the group for the financial years ending 31 March 2008 to 2010.
L&G stake bought by HK tycoon
L&G stake bought by HK tycoon
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A property tycoon from Hong Kong, Tan Sri David Chiu, recently emerged as an 8.35% shareholder in Kuala Lumpur-based property developer Land & General Bhd (L&G).
It is thought that L&G´s relatively low share price and landbank in Bandar Sri Damansara, Kuala Lumpur and Tebrau, Johor could have been the reasons for Chiu´s recent investment.
Mayland Parkview Sdn Bhd purchased 50 million shares in L&G according to an announcement to the Bursa Malaysia. Mayland Parkview is linked to Malaysia Land Properties Sdn Bhd (Mayland) which was set up by Chiu nearly two decades ago and operates as a property development and investment group.
Mayland has a landbank also, with some prime plots in Kuala Lumpur and Johor Bahru. It is thought that some of these, and properties owned by Mayland, may be transferred to Land & General
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A property tycoon from Hong Kong, Tan Sri David Chiu, recently emerged as an 8.35% shareholder in Kuala Lumpur-based property developer Land & General Bhd (L&G).
It is thought that L&G´s relatively low share price and landbank in Bandar Sri Damansara, Kuala Lumpur and Tebrau, Johor could have been the reasons for Chiu´s recent investment.
Mayland Parkview Sdn Bhd purchased 50 million shares in L&G according to an announcement to the Bursa Malaysia. Mayland Parkview is linked to Malaysia Land Properties Sdn Bhd (Mayland) which was set up by Chiu nearly two decades ago and operates as a property development and investment group.
Mayland has a landbank also, with some prime plots in Kuala Lumpur and Johor Bahru. It is thought that some of these, and properties owned by Mayland, may be transferred to Land & General
Thai resort properties launch in China
Thai resort properties launch in China
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Engel & Völkers, one of the leading European real estate companies will unveil a number of its high-end luxury lifestyle properties in Hua Hin at the China International Luxury Property Show to be held on September 7-9,2007, in Shanghai, China.
Engel & Völkers is the leading real estate agency for luxury property worldwide. The Engel & Völkers network operates over 300 residential shops and commercial offices in 24 countries on 4 continents. Engel & Völkers’ Hua Hin Office will spearhead for the first time the launch of resorts properties from Hua Hin, Thailand to the mainland China market.
Hua Hin’s proximity to Bangkok has allowed the coastal village to become a favorite retreat for Thailand’s royal family. With white sandy beaches and rolling foothills, Hua Hin’s location offers the best of Thailand’s tropical climate and scenic landscapes. More and more people, not only the Thai elite, including expatriates, diplomats and retirees are recognizing the great potential of Hua Hin as second home town or a weekend retreat.
Engel & Völkers Hua Hin is set to launch Black Mountain Golf Course Homes, Panorama Pool Villas and KM Beach Condominiums as well as Hua Hin Boulevard into the China Market.
The open exhibition is to be held at the Shanghai International Convention Center. After China, an open exhibition of resort properties represented by Engel & Völkers Hua Hin will also be held in Dublin, Belgium and Hong Kong in the following months. Executives from Engel & Völkers Hua Hin will be on hand and available to meet with interested parties looking to invest.
The recently opened Black Mountain Golf Course is now launching the first phase of its residential development overlooking the magnificent golf course including 43 villas priced from US$1.2m to US$1.4 million, as well as a 120 unit condominium complex (From US$310,000 to US$800,000) and a condotel is also in the planning.
Panorama is a resort project with 65 individual Thai / Balinese inspired pool villas priced from US$270,000 to US$900,000 with 5 star resort facilities including club house and business center at your fingertips.
For investors looking to buy multiple units in one complex KM Beach Condominiums offers 36 beachfront condos from US$240,000 to US$450,000 per unit whilst Hua Hin Boulevard is a mixed development in the heart of Hua Hin consisting of a 78 unit condominium complex as well as a 4-storey shopping plaza. Prices for the condominium units range from US$90,000 to US$250,000 and guarantee great returns on investment within the first two years.
“Engel & Völkers Hua Hin is very excited in bringing high quality resort projects of the Hua Hin area to Shanghai. Our focus is on mid to high-end developments with outstanding capital appreciation and diversity. Our portfolio covers different market segments such as golf course projects, beachfront or resort developments and land plots. Engel & Völkers feels honored to be bringing the charms of Hua Hin to Shanghai giving investors the opportunity not only to invest into an emerging market with interesting capital gains from increasing property values that also lets owners use their investment for holidays or solely as rental property” says Bruce Davison, Managing Partner of Engel & Völkers Hua Hin, who will be attending the exhibition.
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Engel & Völkers, one of the leading European real estate companies will unveil a number of its high-end luxury lifestyle properties in Hua Hin at the China International Luxury Property Show to be held on September 7-9,2007, in Shanghai, China.
Engel & Völkers is the leading real estate agency for luxury property worldwide. The Engel & Völkers network operates over 300 residential shops and commercial offices in 24 countries on 4 continents. Engel & Völkers’ Hua Hin Office will spearhead for the first time the launch of resorts properties from Hua Hin, Thailand to the mainland China market.
Hua Hin’s proximity to Bangkok has allowed the coastal village to become a favorite retreat for Thailand’s royal family. With white sandy beaches and rolling foothills, Hua Hin’s location offers the best of Thailand’s tropical climate and scenic landscapes. More and more people, not only the Thai elite, including expatriates, diplomats and retirees are recognizing the great potential of Hua Hin as second home town or a weekend retreat.
Engel & Völkers Hua Hin is set to launch Black Mountain Golf Course Homes, Panorama Pool Villas and KM Beach Condominiums as well as Hua Hin Boulevard into the China Market.
The open exhibition is to be held at the Shanghai International Convention Center. After China, an open exhibition of resort properties represented by Engel & Völkers Hua Hin will also be held in Dublin, Belgium and Hong Kong in the following months. Executives from Engel & Völkers Hua Hin will be on hand and available to meet with interested parties looking to invest.
The recently opened Black Mountain Golf Course is now launching the first phase of its residential development overlooking the magnificent golf course including 43 villas priced from US$1.2m to US$1.4 million, as well as a 120 unit condominium complex (From US$310,000 to US$800,000) and a condotel is also in the planning.
Panorama is a resort project with 65 individual Thai / Balinese inspired pool villas priced from US$270,000 to US$900,000 with 5 star resort facilities including club house and business center at your fingertips.
For investors looking to buy multiple units in one complex KM Beach Condominiums offers 36 beachfront condos from US$240,000 to US$450,000 per unit whilst Hua Hin Boulevard is a mixed development in the heart of Hua Hin consisting of a 78 unit condominium complex as well as a 4-storey shopping plaza. Prices for the condominium units range from US$90,000 to US$250,000 and guarantee great returns on investment within the first two years.
“Engel & Völkers Hua Hin is very excited in bringing high quality resort projects of the Hua Hin area to Shanghai. Our focus is on mid to high-end developments with outstanding capital appreciation and diversity. Our portfolio covers different market segments such as golf course projects, beachfront or resort developments and land plots. Engel & Völkers feels honored to be bringing the charms of Hua Hin to Shanghai giving investors the opportunity not only to invest into an emerging market with interesting capital gains from increasing property values that also lets owners use their investment for holidays or solely as rental property” says Bruce Davison, Managing Partner of Engel & Völkers Hua Hin, who will be attending the exhibition.
The Landmark Scheme wins award
The Landmark Scheme wins award
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Hongkong Land has announced that The Landmark Scheme was named one of the five winners in the Urban Land Institute (ULI) Awards of Excellence: Asia Pacific. The US$210 million Scheme, formally completed in November 2006, has helped strengthen Central´s reputation as the heart of the city and reinforced The Landmark as a premier address in Hong Kong for world-class shopping,
dining and business.
The Awards for Excellence programme has been recognising superior achievements of excellence in land use planning since 1979. This is the third year of the Awards for Excellence programme in the Asia Pacific region. Five projects in three countries were selected as winners: one from Australia; two from Hong Kong; and two from Japan. The five winners were chosen from a field of 12 finalists.
Projects were evaluated based on financial viability, resourcefulness of land use, design, relevance to contemporary issues, and sensitivity to the community and environment. According to ULI, The Landmark Scheme "propels to the lead an already popular retail centre... Now, one hectare of valuable land gathers on one block luxury retail with offices and a 113-room hotel."
In a little over three years, Hongkong Land executed a comprehensive development and refurbishment programme that enhanced the surrounding cityscape and brought even more of the best in urban lifestyle to Hong Kong. A redesigned atrium for The Landmark, Asia´s first Harvey Nichols store, the new Landmark Mandarin Oriental hotel, more premium office space through the development of York House, and enhanced indoor and outdoor access are just a few of the programme´s components.
"We are delighted to be one of just five developments recognised by the Urban Land Institute in Asia this year," said Y K Pang, Chief Executive of Hongkong Land. "This award validates everything Hongkong Land set out to achieve with The Landmark Scheme—making one of the world´s best luxury developments even better, and helping strengthen Central´s status as the place to be."
Over the years, Hongkong Land has demonstrated its commitment to improving and enhancing Hong Kong´s CBD through its ambitious programme "Brand CENTRAL." This ongoing effort aims to further boost Central´s reputation as the head of the city through additions and refurbishments to some of the city´s most well-known shopping and business addresses, including Charter House, Exchange Square, Prince´s Building and Alexandra House, as well as the surrounding cityscape. Hongkong Land initiated The Landmark Scheme in August 2003 as the latest phase of this programme.
The ULI is a non-profit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. It was established in 1936 and has more than 37,000 members representing all aspects of land use.
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Hongkong Land has announced that The Landmark Scheme was named one of the five winners in the Urban Land Institute (ULI) Awards of Excellence: Asia Pacific. The US$210 million Scheme, formally completed in November 2006, has helped strengthen Central´s reputation as the heart of the city and reinforced The Landmark as a premier address in Hong Kong for world-class shopping,
dining and business.
The Awards for Excellence programme has been recognising superior achievements of excellence in land use planning since 1979. This is the third year of the Awards for Excellence programme in the Asia Pacific region. Five projects in three countries were selected as winners: one from Australia; two from Hong Kong; and two from Japan. The five winners were chosen from a field of 12 finalists.
Projects were evaluated based on financial viability, resourcefulness of land use, design, relevance to contemporary issues, and sensitivity to the community and environment. According to ULI, The Landmark Scheme "propels to the lead an already popular retail centre... Now, one hectare of valuable land gathers on one block luxury retail with offices and a 113-room hotel."
In a little over three years, Hongkong Land executed a comprehensive development and refurbishment programme that enhanced the surrounding cityscape and brought even more of the best in urban lifestyle to Hong Kong. A redesigned atrium for The Landmark, Asia´s first Harvey Nichols store, the new Landmark Mandarin Oriental hotel, more premium office space through the development of York House, and enhanced indoor and outdoor access are just a few of the programme´s components.
"We are delighted to be one of just five developments recognised by the Urban Land Institute in Asia this year," said Y K Pang, Chief Executive of Hongkong Land. "This award validates everything Hongkong Land set out to achieve with The Landmark Scheme—making one of the world´s best luxury developments even better, and helping strengthen Central´s status as the place to be."
Over the years, Hongkong Land has demonstrated its commitment to improving and enhancing Hong Kong´s CBD through its ambitious programme "Brand CENTRAL." This ongoing effort aims to further boost Central´s reputation as the head of the city through additions and refurbishments to some of the city´s most well-known shopping and business addresses, including Charter House, Exchange Square, Prince´s Building and Alexandra House, as well as the surrounding cityscape. Hongkong Land initiated The Landmark Scheme in August 2003 as the latest phase of this programme.
The ULI is a non-profit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. It was established in 1936 and has more than 37,000 members representing all aspects of land use.
Frasers opens third Bangkok property
Frasers opens third Bangkok property
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International serviced apartment developer Frasers is set to open its third Bangkok property, Fraser Suites Sukhumvit.
The 118 unit development, on Sukhumvit Soi 11, will open its doors to guests in October. Jacqui Cuthbertson, general manager of the development, says Fraser Suites Sukhumvit will provide both corporate and leisure guests with a high quality beautifully designed living space, suitable for both long and short-term stays.
“I think what’s important about this property is the design aspect of it and the facilities that we offer. We understand as Frasers that living in a foreign country is not just about the apartment that you’re living in. It’s also about the home environment, so the facilities that we’re offering always add value to the guest’s life when they’re in a foreign country.”
Rates start at Bt4,500 a night, and Frasers is offering discounted rates for long term guests. Facilities include a gym, swimming pool, sauna, restaurant, room service, meeting rooms which seat up to 20 people and a business centre. Apartments range in size and include 52sqm studios, 72sqm one-bedroom suites and 160sqm three bedroom penthouses. All units feature fully-fitted kitchens, washer/dryer and a full size fridge/freezer.
Cuthbertson says they expect the property to do well, as the very nature of the Sukhumvit area is that it attracts both types of travellers – corporate and leisure.
“We understand that serviced apartments are becoming the first choice for so many types of travelers so that it’s really sometimes the first option rather than a hotel for tourism and corporate travelers,” she said. “Because we’re targeting both markets we can be quite flexible and adapt our services to suit both types. There’s more space.”
Fraser Suites Sukhumvit is the Singapore firm´s third Bangkok property, joining Fraser Place in Langsuan and Fraser Suites in Sathorn.
“Frasers is always looking for new opportunities, especially where the market is strong,” said Cuthbertson. “In the first two developments we are achieving very high occupancy rates, which are proving to be sustainable all year round. Now Frasers has three very good locations throughout the city. It’s a great portfolio to offer all our guests.”
As for the current state of the serviced apartment market in Bangkok, Cuthbertson says Frasers is in a good position to continue to prosper, despite the high number of firms that enter the market every year. In fact, they even welcome the competition.
“It keeps us on our toes and raises the standard of quality, so that can only be a good thing for our guests.”
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International serviced apartment developer Frasers is set to open its third Bangkok property, Fraser Suites Sukhumvit.
The 118 unit development, on Sukhumvit Soi 11, will open its doors to guests in October. Jacqui Cuthbertson, general manager of the development, says Fraser Suites Sukhumvit will provide both corporate and leisure guests with a high quality beautifully designed living space, suitable for both long and short-term stays.
“I think what’s important about this property is the design aspect of it and the facilities that we offer. We understand as Frasers that living in a foreign country is not just about the apartment that you’re living in. It’s also about the home environment, so the facilities that we’re offering always add value to the guest’s life when they’re in a foreign country.”
Rates start at Bt4,500 a night, and Frasers is offering discounted rates for long term guests. Facilities include a gym, swimming pool, sauna, restaurant, room service, meeting rooms which seat up to 20 people and a business centre. Apartments range in size and include 52sqm studios, 72sqm one-bedroom suites and 160sqm three bedroom penthouses. All units feature fully-fitted kitchens, washer/dryer and a full size fridge/freezer.
Cuthbertson says they expect the property to do well, as the very nature of the Sukhumvit area is that it attracts both types of travellers – corporate and leisure.
“We understand that serviced apartments are becoming the first choice for so many types of travelers so that it’s really sometimes the first option rather than a hotel for tourism and corporate travelers,” she said. “Because we’re targeting both markets we can be quite flexible and adapt our services to suit both types. There’s more space.”
Fraser Suites Sukhumvit is the Singapore firm´s third Bangkok property, joining Fraser Place in Langsuan and Fraser Suites in Sathorn.
“Frasers is always looking for new opportunities, especially where the market is strong,” said Cuthbertson. “In the first two developments we are achieving very high occupancy rates, which are proving to be sustainable all year round. Now Frasers has three very good locations throughout the city. It’s a great portfolio to offer all our guests.”
As for the current state of the serviced apartment market in Bangkok, Cuthbertson says Frasers is in a good position to continue to prosper, despite the high number of firms that enter the market every year. In fact, they even welcome the competition.
“It keeps us on our toes and raises the standard of quality, so that can only be a good thing for our guests.”
New foreign ownership law in Cambodia?
New foreign ownership law in Cambodia?
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Cambodia´s private sector has urged the government to allow foreign ownership this week saying an open-minded real estate market would promote economic growth. The Cambodian investment law was amended back in 2005 to allow foreign ownership of permanent fixtures, but as yet has not been enforced. The non-implementation of the act has in fact rendered the amendments as a forgotten law, and as such has now become out dated. In the current legal understanding, the old law will only allow a property investment in the name of a Cambodian national but with the pressure from the private sector to increase wealth, urgent action will be required.
Chris Green, Head of Research at Obelisk International says ‘The key improvements to the property investment law would open up a whole new economic world to the country of Cambodia. These measures would not only further develop Cambodia´s property investment market, but the new interest from those investors who want to take advantage early, will not only create a boom putting Cambodia on the map, but will also make the country more competitive with its neighbours.’
American lawyer and chairman of the International Business Club, Bretton Sciaron comments on the property investment news ‘There are several reasons for urgent action, this is already a sector of the economy that is dynamic, but foreign ownership of apartments, condominiums and other such structures on the land will help spur further economic growth. Such a regulatory development will provide a dramatic indication that Cambodia has an investor-friendly environment.’
Vast new building projects have increased over the past few years, including a great number of satellite cities worth billions of dollars that when completed will fundamentally alter the appearance of the capital. After years of disorder within Cambodia, the country is now turning things around as a growing economy posting a steady 11% growth over the last three years, fuelled by a strong tourism industry and clothing manufactures.
Cambodian Commerce Minister, Cham Prasidh said that Cambodia still relies on international aid for half of its annual budget, but must now diversify by seeking more varied foreign investments. ‘There are other sectors we are trying to encourage, but we have to find out what are the sectors where we can be competitive. If we try to produce the same thing as Thailand or Malaysia, it will be very difficult’.
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Cambodia´s private sector has urged the government to allow foreign ownership this week saying an open-minded real estate market would promote economic growth. The Cambodian investment law was amended back in 2005 to allow foreign ownership of permanent fixtures, but as yet has not been enforced. The non-implementation of the act has in fact rendered the amendments as a forgotten law, and as such has now become out dated. In the current legal understanding, the old law will only allow a property investment in the name of a Cambodian national but with the pressure from the private sector to increase wealth, urgent action will be required.
Chris Green, Head of Research at Obelisk International says ‘The key improvements to the property investment law would open up a whole new economic world to the country of Cambodia. These measures would not only further develop Cambodia´s property investment market, but the new interest from those investors who want to take advantage early, will not only create a boom putting Cambodia on the map, but will also make the country more competitive with its neighbours.’
American lawyer and chairman of the International Business Club, Bretton Sciaron comments on the property investment news ‘There are several reasons for urgent action, this is already a sector of the economy that is dynamic, but foreign ownership of apartments, condominiums and other such structures on the land will help spur further economic growth. Such a regulatory development will provide a dramatic indication that Cambodia has an investor-friendly environment.’
Vast new building projects have increased over the past few years, including a great number of satellite cities worth billions of dollars that when completed will fundamentally alter the appearance of the capital. After years of disorder within Cambodia, the country is now turning things around as a growing economy posting a steady 11% growth over the last three years, fuelled by a strong tourism industry and clothing manufactures.
Cambodian Commerce Minister, Cham Prasidh said that Cambodia still relies on international aid for half of its annual budget, but must now diversify by seeking more varied foreign investments. ‘There are other sectors we are trying to encourage, but we have to find out what are the sectors where we can be competitive. If we try to produce the same thing as Thailand or Malaysia, it will be very difficult’.
Changing face of foreign owners
Changing face of foreign owners
Sonia Kolesnikov-Jessop
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Along with Malaysians and Indonesians, an increasingly diverse group of nationalities are buying into Singapore, reflecting its ambition to become a genuinely global city.
Malaysians and Indonesians have traditionally been the dominant foreign buyers of property in Singapore and they still remain at the top of the list. However, over the last year, their shares of the property market bought by foreigners have been diminishing in favour of other nationalities.
According to Donald Han, Managing Director (Singapore) of Cushman and Wakefield, requests for information are coming fast and furious from Middle Eastern, Indian and Korean investors, although investors from different counties are looking at different sectors of the market.
While the deeper-pocketed Middle Eastern buyers are more interested in District 9 and the Orchard Road areas, the Koreans, who typically have a US$1-$3 million budget, are looking at the fringes of the central core area. Indians generally target the mid-market to upper-tier market and are willing to go further into the suburbs like Clementi, Yishun and Bukit Batok, while Europeans tend to go for projects that are under construction.
“Europeans are playing the rising market. They’re not looking into yield but strictly looking into being an absentee investor. When the property is ready, they might offload it instead of having the headache of finding a tenant,” Han explains.
Data from the URA shows that the number of Korean purchasers increased 132% in 2006, while the number of French increased by 138%. Indian buyers were up 72%, while American buyers were up 67% and Australian buyers were up 45%. However, it should be remembered that some of these figures may be skewed by low base figures, professionals said.
“Singapore has long been a favoured country for foreign investors,” notes Chia Ngiang Hong, Group General Manager of City Developments Limited. “However, we’re also experiencing increased interest from many first-time foreign buyers as well as many from non-traditional markets. This is a positive sign that Singapore is developing into a global city for investors. It marks its success of transforming into one of the most attractive and exciting cities to live and work in.”
Global appeal
The latest URA data shows that foreign buying interest has remained strong so far this year. Purchases by foreigners made up 29% of total purchases in the first half of 2007, said Tay Huey Ying, Director of Research and Consultancy at Colliers International.
Between January 2006 and June 2007, 33.6% of foreign purchases were for properties in districts 9 and 10, while 12.1% of foreign purchases were for properties in District 15. In terms of pricing, 6% of all foreign purchases were for properties priced at S$5 million and above, and 39% were for properties priced between S$1.5 million and S$5 million, Tay revealed.
Given the ongoing restrictions on landed properties, the majority of the properties purchased were condominium units. Even so, there has also been a growth in the number of buyers for landed properties.
Based on DTZ Debenham Tie Leung’s analysis of caveats captured by the URA’s Realis database, foreigners bought 2,008 non-landed private homes in the first quarter of this year, accounting for 30.3% of the total condos/apartments bought in the period, while foreigners (mainly Permanent Residents) bought 93 landed homes, only 8.4% of the total of 1,108 landed homes purchased.
While buyers from Indonesia and Malaysia remain the dominant players in the current market, the share of the top-five nationalities (68%) continued to slide, a trend that started in 2005. “This shows that private residential properties are attracting interest from other nationalities and that Singapore is becoming more international,” points out Ong Choon Fah, Executive Director at DTZ Debenham Tie Leung.
Developers are also reporting anecdotal evidence of the increase in these new buyers. At the launch of luxury boutique development Parkview Éclat, foreigners represented 83% of buyers, with some South Asian owners, the second-largest group of buyers, taking on more than one unit, said Eddie Chow, a Senior Executive at the Hong Kong Parkview Group.
Spreading the message
To cater for this wider international demand, developers are now going further afield in their road shows and spending top dollar on their show flats. Kan Kum Wah, Head of Residential Marketing for Marina Bay Financial Centre, revealed that this year’s current marketing plans include exhibitions and talks at luxury property conferences in Hong Kong (twice), Shanghai and Dubai, to build interest and awareness ahead of their second residential tower planned for later this year or early next year. When the Marina Bay Residences’ first tower was launched last December, around 40% of the buyers were from overseas.
Kan said the presence of this new type of buyers was to be expected given the rapid expansion of the banking and financial sector due to Singapore’s growing reputation as a financial hub. He also pointed to a new trend, also evidenced in Parkview Éclat: the rise of the multiple home owner.
“These buyers typically own multiple homes in multiple destinations,” Kan said. “I envisage the buyers of high-end developments in Singapore owning homes in other vibrant cities like Hong Kong, Shanghai, Tokyo and Dubai. These buyers are attracted by location, being near leisure and business districts, as well as quality and exclusiveness. Price is not the major concern with this type of buyer, and many are prepared to write blank cheques up to a pre-arranged price.”
Foreign investors are not only buying for investment but also to live in, property experts point out. Ong noted that foreigners have become more active in the resale market where they now account for 32% of resale apartment transactions. Unlike new projects, these homes are usually ready for lease immediately. Tay anticipates buying interest from foreigners will grow from strength to strength in the coming years.
“Singapore’s journey as a global property market has just only begun,” she said. “As such, we believe that to date, only a small fraction of the world’s high net worth individuals have invested in Singapore’s residential property market. We’re of the opinion that as Singapore’s reputation as an attractive country for investment, particularly due to our economic makeover, reaches out to an even wider global market, more foreigners can be expected to purchase residential properties in Singapore.”
Sonia Kolesnikov-Jessop
Advertisement
Along with Malaysians and Indonesians, an increasingly diverse group of nationalities are buying into Singapore, reflecting its ambition to become a genuinely global city.
Malaysians and Indonesians have traditionally been the dominant foreign buyers of property in Singapore and they still remain at the top of the list. However, over the last year, their shares of the property market bought by foreigners have been diminishing in favour of other nationalities.
According to Donald Han, Managing Director (Singapore) of Cushman and Wakefield, requests for information are coming fast and furious from Middle Eastern, Indian and Korean investors, although investors from different counties are looking at different sectors of the market.
While the deeper-pocketed Middle Eastern buyers are more interested in District 9 and the Orchard Road areas, the Koreans, who typically have a US$1-$3 million budget, are looking at the fringes of the central core area. Indians generally target the mid-market to upper-tier market and are willing to go further into the suburbs like Clementi, Yishun and Bukit Batok, while Europeans tend to go for projects that are under construction.
“Europeans are playing the rising market. They’re not looking into yield but strictly looking into being an absentee investor. When the property is ready, they might offload it instead of having the headache of finding a tenant,” Han explains.
Data from the URA shows that the number of Korean purchasers increased 132% in 2006, while the number of French increased by 138%. Indian buyers were up 72%, while American buyers were up 67% and Australian buyers were up 45%. However, it should be remembered that some of these figures may be skewed by low base figures, professionals said.
“Singapore has long been a favoured country for foreign investors,” notes Chia Ngiang Hong, Group General Manager of City Developments Limited. “However, we’re also experiencing increased interest from many first-time foreign buyers as well as many from non-traditional markets. This is a positive sign that Singapore is developing into a global city for investors. It marks its success of transforming into one of the most attractive and exciting cities to live and work in.”
Global appeal
The latest URA data shows that foreign buying interest has remained strong so far this year. Purchases by foreigners made up 29% of total purchases in the first half of 2007, said Tay Huey Ying, Director of Research and Consultancy at Colliers International.
Between January 2006 and June 2007, 33.6% of foreign purchases were for properties in districts 9 and 10, while 12.1% of foreign purchases were for properties in District 15. In terms of pricing, 6% of all foreign purchases were for properties priced at S$5 million and above, and 39% were for properties priced between S$1.5 million and S$5 million, Tay revealed.
Given the ongoing restrictions on landed properties, the majority of the properties purchased were condominium units. Even so, there has also been a growth in the number of buyers for landed properties.
Based on DTZ Debenham Tie Leung’s analysis of caveats captured by the URA’s Realis database, foreigners bought 2,008 non-landed private homes in the first quarter of this year, accounting for 30.3% of the total condos/apartments bought in the period, while foreigners (mainly Permanent Residents) bought 93 landed homes, only 8.4% of the total of 1,108 landed homes purchased.
While buyers from Indonesia and Malaysia remain the dominant players in the current market, the share of the top-five nationalities (68%) continued to slide, a trend that started in 2005. “This shows that private residential properties are attracting interest from other nationalities and that Singapore is becoming more international,” points out Ong Choon Fah, Executive Director at DTZ Debenham Tie Leung.
Developers are also reporting anecdotal evidence of the increase in these new buyers. At the launch of luxury boutique development Parkview Éclat, foreigners represented 83% of buyers, with some South Asian owners, the second-largest group of buyers, taking on more than one unit, said Eddie Chow, a Senior Executive at the Hong Kong Parkview Group.
Spreading the message
To cater for this wider international demand, developers are now going further afield in their road shows and spending top dollar on their show flats. Kan Kum Wah, Head of Residential Marketing for Marina Bay Financial Centre, revealed that this year’s current marketing plans include exhibitions and talks at luxury property conferences in Hong Kong (twice), Shanghai and Dubai, to build interest and awareness ahead of their second residential tower planned for later this year or early next year. When the Marina Bay Residences’ first tower was launched last December, around 40% of the buyers were from overseas.
Kan said the presence of this new type of buyers was to be expected given the rapid expansion of the banking and financial sector due to Singapore’s growing reputation as a financial hub. He also pointed to a new trend, also evidenced in Parkview Éclat: the rise of the multiple home owner.
“These buyers typically own multiple homes in multiple destinations,” Kan said. “I envisage the buyers of high-end developments in Singapore owning homes in other vibrant cities like Hong Kong, Shanghai, Tokyo and Dubai. These buyers are attracted by location, being near leisure and business districts, as well as quality and exclusiveness. Price is not the major concern with this type of buyer, and many are prepared to write blank cheques up to a pre-arranged price.”
Foreign investors are not only buying for investment but also to live in, property experts point out. Ong noted that foreigners have become more active in the resale market where they now account for 32% of resale apartment transactions. Unlike new projects, these homes are usually ready for lease immediately. Tay anticipates buying interest from foreigners will grow from strength to strength in the coming years.
“Singapore’s journey as a global property market has just only begun,” she said. “As such, we believe that to date, only a small fraction of the world’s high net worth individuals have invested in Singapore’s residential property market. We’re of the opinion that as Singapore’s reputation as an attractive country for investment, particularly due to our economic makeover, reaches out to an even wider global market, more foreigners can be expected to purchase residential properties in Singapore.”
Biggest UK property firm mulls break-up
Biggest UK property firm mulls break-up
September 7th, 2007 · No Comments
(LONDON) Paul Myners, chairman of Britain’s biggest listed property firm Land Securities, has ordered the group to examine a possible break-up, the Daily Telegraph said yesterday.
The move is one of the options being looked at as part of a wider strategic review in response to poor share price performance, the paper said, without citing sources.
A break-up is likely to involve the demerger of the firm’s property outsourcing business Trillium, it said.
Its chief executive Francis Salway said in June at the Reuters Real Estate Summit that he would not rule out spinning off some of its units, including Trillium, whose contribution to group earnings was likely to grow to 20-30 per cent from around 16 per cent now.
But he said then that the company would stick to a diversified business model, with its emphasis on both office and retail property, despite a view among some fund managers that Reit shareholders were better served by firms that specialised by property type.
Land Securities shares have fallen around 20 per cent so far this year.
Source: Reuters (Business Times 6 Sept 07)
September 7th, 2007 · No Comments
(LONDON) Paul Myners, chairman of Britain’s biggest listed property firm Land Securities, has ordered the group to examine a possible break-up, the Daily Telegraph said yesterday.
The move is one of the options being looked at as part of a wider strategic review in response to poor share price performance, the paper said, without citing sources.
A break-up is likely to involve the demerger of the firm’s property outsourcing business Trillium, it said.
Its chief executive Francis Salway said in June at the Reuters Real Estate Summit that he would not rule out spinning off some of its units, including Trillium, whose contribution to group earnings was likely to grow to 20-30 per cent from around 16 per cent now.
But he said then that the company would stick to a diversified business model, with its emphasis on both office and retail property, despite a view among some fund managers that Reit shareholders were better served by firms that specialised by property type.
Land Securities shares have fallen around 20 per cent so far this year.
Source: Reuters (Business Times 6 Sept 07)
HK not hit by sub-prime woes: central bank
HK not hit by sub-prime woes: central bank
September 8th, 2007 · No Comments
(HONG KONG) Information provided by locally incorporated banks indicates that their aggregate exposure to the US sub-prime mortgage market will not have systemic implications for Hong Kong’s banking sector, according to Hong Kong Monetary Authority chief executive Joseph Yam.
In his weekly Viewpoint column published on the Hong Kong central bank’s website on Thursday, Mr Yam said, however, that banks and other market participants should watch for risks and uncertainties.
‘Thanks in part to comparatively slower development of the credit derivatives market in Hong Kong, the risk arising from exposure to securities and credit derivatives with a sub-prime component is closely monitored by banks in Hong Kong,’ he said.
‘While some in the market are hoping for more government intervention in the form of interest-rate cuts or government-sponsored entities buying more mortgage-backed securities to keep the market going, others are projecting that the US mortgage credit quality will weaken further in the second half of 2007 or even well into 2008 as more sub-prime adjustable-rate mortgages reset to higher floating rates.’
He said the outcome of the sub-prime mortgage problem and its effect on the global economy are still unpredictable, and market participants should watch developments closely.
Source: Xinhua (Business Times 8 Sept 07)
September 8th, 2007 · No Comments
(HONG KONG) Information provided by locally incorporated banks indicates that their aggregate exposure to the US sub-prime mortgage market will not have systemic implications for Hong Kong’s banking sector, according to Hong Kong Monetary Authority chief executive Joseph Yam.
In his weekly Viewpoint column published on the Hong Kong central bank’s website on Thursday, Mr Yam said, however, that banks and other market participants should watch for risks and uncertainties.
‘Thanks in part to comparatively slower development of the credit derivatives market in Hong Kong, the risk arising from exposure to securities and credit derivatives with a sub-prime component is closely monitored by banks in Hong Kong,’ he said.
‘While some in the market are hoping for more government intervention in the form of interest-rate cuts or government-sponsored entities buying more mortgage-backed securities to keep the market going, others are projecting that the US mortgage credit quality will weaken further in the second half of 2007 or even well into 2008 as more sub-prime adjustable-rate mortgages reset to higher floating rates.’
He said the outcome of the sub-prime mortgage problem and its effect on the global economy are still unpredictable, and market participants should watch developments closely.
Source: Xinhua (Business Times 8 Sept 07)
Home shopping scales new heights
Home shopping scales new heights
September 8th, 2007 · No Comments
Two new stores widen consumers’ choices in picking the finest for their personal and office spaces as well as travels
FROM fashion, WingTai Asia Group subsidiary Wing Tai Branded Lifestyle has expanded into a retail segment that one would have expected it to move into much earlier.
As a leading Singaporean property developer, one would have thought that Wing Tai’s retail arm might have added furniture and home decor stores to its retail offerings long ago.
But better late than never, as they say. And now that Wing Tai Branded Lifestyle has stepped into this space, it’s not pulling any punches.
Zone Singapore is a one-stop store for home, bathroom, kitchen and office ware - the first franchise store in Asia for a Danish brand founded by Poul Jepsen.
Making its debut at Raffles City, the 2,500 sq ft store is set up to furnish all areas and rooms of a house. The 2,000-plus products are categorised into PersonalZone (bath accessories), LivingZone (living area), FoodZone (kitchen) and WorkZone (office).
Zone has teams of designers in Denmark, Hong Kong and China that conceptualise Scandinavian-style products.
The focus is on classic functionality and quality, says Mr Jepsen, who was in Singapore for the launch of the Raffles City store this week. ‘But we also want to reach out to the younger crowd, so there’s a variety of new materials used, like rubber and silicone.’
Mr Jepsen founded the brand in 1991, having grown up as part of a family with a homeware business.
Helen Khoo, executive director of Wing Tai Branded Lifestyle, says that Zone is an extension of the group’s lifestyle activities. ‘Shopping for the home has also become like buying fashion. Home furnishing is an expression of the owner’s personality. We had to look for the right partner to bring in - and Zone was just what we were looking for.’
Zone is run on a franchise basis, a proven and systematic retail model. ‘We’re not wasting a lot of time and effort reinventing the wheel,’ says Ms Khoo. ‘We just need to understand local consumers’ needs.’
Zone is distributed in the United States and some European countries and has standalone stores in Cyprus, Greece, Sweden, Bahrain, Dubai, Kuwait, Oman, Qatar and Hong Kong.
The company aims to have 100 stores by 2011.
In Singapore, Wing Tai Branded Lifestyle plans to set up three to five stores over the next two years, plus at least one in Kuala Lumpur by next year.
With products ranging from a slim satin-steel sugar dispenser at $12.50 to a saucepan with lid at $702 and a sevencm satin-steel York candlestick holder at $22 to a coconut designer vase at $162 as well as cotton washcloths at $8.50 to five-litre stainless steel pedal bins at $192, Zone is pretty much the equivalent of a high street fashion brand for homeware.
‘The choice of Zone as a partner reflects WingTai’s retail outlook,’ says Ms Khoo.
‘We started with mass brands that are affordable and accessible, like G2000, before we moved up the market to UK high street brands. Now, we’re concentrating on the mid to mid-high range of brands. We’re moving in sync with our property arm,’ which is now building luxury properties.
Mr Jepsen chose Wing Tai Branded Lifestyle as its local partner because of its retail experience.
‘We also prefer to partner with fashion retailers because they understand the way we display our products,’ he says.
‘Like fashion, we’ll have new products in the shop every month to create the demand among consumers.’
Zone is located at Raffles City, #03-25.
Source: Business Times 8 Sept 07
September 8th, 2007 · No Comments
Two new stores widen consumers’ choices in picking the finest for their personal and office spaces as well as travels
FROM fashion, WingTai Asia Group subsidiary Wing Tai Branded Lifestyle has expanded into a retail segment that one would have expected it to move into much earlier.
As a leading Singaporean property developer, one would have thought that Wing Tai’s retail arm might have added furniture and home decor stores to its retail offerings long ago.
But better late than never, as they say. And now that Wing Tai Branded Lifestyle has stepped into this space, it’s not pulling any punches.
Zone Singapore is a one-stop store for home, bathroom, kitchen and office ware - the first franchise store in Asia for a Danish brand founded by Poul Jepsen.
Making its debut at Raffles City, the 2,500 sq ft store is set up to furnish all areas and rooms of a house. The 2,000-plus products are categorised into PersonalZone (bath accessories), LivingZone (living area), FoodZone (kitchen) and WorkZone (office).
Zone has teams of designers in Denmark, Hong Kong and China that conceptualise Scandinavian-style products.
The focus is on classic functionality and quality, says Mr Jepsen, who was in Singapore for the launch of the Raffles City store this week. ‘But we also want to reach out to the younger crowd, so there’s a variety of new materials used, like rubber and silicone.’
Mr Jepsen founded the brand in 1991, having grown up as part of a family with a homeware business.
Helen Khoo, executive director of Wing Tai Branded Lifestyle, says that Zone is an extension of the group’s lifestyle activities. ‘Shopping for the home has also become like buying fashion. Home furnishing is an expression of the owner’s personality. We had to look for the right partner to bring in - and Zone was just what we were looking for.’
Zone is run on a franchise basis, a proven and systematic retail model. ‘We’re not wasting a lot of time and effort reinventing the wheel,’ says Ms Khoo. ‘We just need to understand local consumers’ needs.’
Zone is distributed in the United States and some European countries and has standalone stores in Cyprus, Greece, Sweden, Bahrain, Dubai, Kuwait, Oman, Qatar and Hong Kong.
The company aims to have 100 stores by 2011.
In Singapore, Wing Tai Branded Lifestyle plans to set up three to five stores over the next two years, plus at least one in Kuala Lumpur by next year.
With products ranging from a slim satin-steel sugar dispenser at $12.50 to a saucepan with lid at $702 and a sevencm satin-steel York candlestick holder at $22 to a coconut designer vase at $162 as well as cotton washcloths at $8.50 to five-litre stainless steel pedal bins at $192, Zone is pretty much the equivalent of a high street fashion brand for homeware.
‘The choice of Zone as a partner reflects WingTai’s retail outlook,’ says Ms Khoo.
‘We started with mass brands that are affordable and accessible, like G2000, before we moved up the market to UK high street brands. Now, we’re concentrating on the mid to mid-high range of brands. We’re moving in sync with our property arm,’ which is now building luxury properties.
Mr Jepsen chose Wing Tai Branded Lifestyle as its local partner because of its retail experience.
‘We also prefer to partner with fashion retailers because they understand the way we display our products,’ he says.
‘Like fashion, we’ll have new products in the shop every month to create the demand among consumers.’
Zone is located at Raffles City, #03-25.
Source: Business Times 8 Sept 07
Horizon Towers deal in limbo as sales committee quits
Horizon Towers deal in limbo as sales committee quits
September 8th, 2007 · No Comments
(SINGAPORE) The majority sellers of Horizon Towers were supposed to get together last night to resolve a problem, but things ended up being possibly worse.
The sales committee quit last night at the meeting held at Holiday Inn Park View Hotel, and even up to 11pm, no new committee had been formed, BT understands.
The majority sellers who arrived with their lawyers in tow were supposed to decide how to respond to a lawsuit which they face brought by Hotel Property Ltd (HPL), Morgan Stanley Real Estate managed funds and Qatar Investment Authority after the en bloc sale of their Leonie Hill property fell through last month.
The Strata Titles Board (STB) refused to grant a collective sale order, saying that Horizon Towers had filed a defective application. HPL and its partners are suing the majority sellers for failing to file a proper application.
HPL and its partners in February signed a deal with 84 per cent of the owners of Horizon Towers to buy the property en bloc for $500 million, for redevelopment. There have been media reports that some sellers regretted their decision to sell at that price when neighbouring developments later sold for twice as much per square foot.
Last night’s meeting plunged into limbo when the sales committee quit. Sellers who appeared at the meeting said volunteers were being asked to serve on a new sales committee, and that two men stepped forward on condition they would be granted blanket immunity from legal proceedings.
However, they did not get their condition, and no conclusion was reached.
BT understands that by the time the meeting started, there were only three people left on the committee as the other members had quit in the past weeks. This fails to meet the quorum needed of five people on the committee.
Throughout the meeting that started at 8pm and was scheduled to end by 11:59pm yesterday, groups of people and individuals were seen leaving the ballroom at different times to discuss and to smoke.
The meeting was tightly monitored by about six security officers who made sure only majority sellers were allowed into the ballroom. Applause interspersed with cheering was heard at different intervals of the meeting.
The majority owners whom BT spoke to estimated there were more than a hundred people who turned up.
They had a mixed response regarding the outcome. One man seemed upset that the sales committee had quit and said: ‘I don’t know what’s going to happen now. Who cares?’ Another seemed pessimistic about the chances of another committee being formed: ‘Who would want to be on the sales committee now with the threats of legal suits?’
At press time, the meeting was still going on, BT understands.
Source: Business Times 8 Sept 07
September 8th, 2007 · No Comments
(SINGAPORE) The majority sellers of Horizon Towers were supposed to get together last night to resolve a problem, but things ended up being possibly worse.
The sales committee quit last night at the meeting held at Holiday Inn Park View Hotel, and even up to 11pm, no new committee had been formed, BT understands.
The majority sellers who arrived with their lawyers in tow were supposed to decide how to respond to a lawsuit which they face brought by Hotel Property Ltd (HPL), Morgan Stanley Real Estate managed funds and Qatar Investment Authority after the en bloc sale of their Leonie Hill property fell through last month.
The Strata Titles Board (STB) refused to grant a collective sale order, saying that Horizon Towers had filed a defective application. HPL and its partners are suing the majority sellers for failing to file a proper application.
HPL and its partners in February signed a deal with 84 per cent of the owners of Horizon Towers to buy the property en bloc for $500 million, for redevelopment. There have been media reports that some sellers regretted their decision to sell at that price when neighbouring developments later sold for twice as much per square foot.
Last night’s meeting plunged into limbo when the sales committee quit. Sellers who appeared at the meeting said volunteers were being asked to serve on a new sales committee, and that two men stepped forward on condition they would be granted blanket immunity from legal proceedings.
However, they did not get their condition, and no conclusion was reached.
BT understands that by the time the meeting started, there were only three people left on the committee as the other members had quit in the past weeks. This fails to meet the quorum needed of five people on the committee.
Throughout the meeting that started at 8pm and was scheduled to end by 11:59pm yesterday, groups of people and individuals were seen leaving the ballroom at different times to discuss and to smoke.
The meeting was tightly monitored by about six security officers who made sure only majority sellers were allowed into the ballroom. Applause interspersed with cheering was heard at different intervals of the meeting.
The majority owners whom BT spoke to estimated there were more than a hundred people who turned up.
They had a mixed response regarding the outcome. One man seemed upset that the sales committee had quit and said: ‘I don’t know what’s going to happen now. Who cares?’ Another seemed pessimistic about the chances of another committee being formed: ‘Who would want to be on the sales committee now with the threats of legal suits?’
At press time, the meeting was still going on, BT understands.
Source: Business Times 8 Sept 07
Wing Tai leads 800m yuan development in Chengdu
Wing Tai leads 800m yuan development in Chengdu
September 8th, 2007 · No Comments
Consortium to carry out 900,000 sq ft project due for completion in 2011
A CONSORTIUM led by Wing Tai Holdings will develop an 800 million yuan (S$161.1 million) real estate project in Chengdu, China.
Under a memorandum of understanding that Wing Tai signed yesterday with China’s Chengdu Jinli Group, the consortium will own ‘more than 60 per cent’ of the joint venture, which means its investment will be at least 480 million yuan.
The project, in Chengdu’s city centre, will have a gross floor area of about 900,000 sq ft. It will comprise hotel/ serviced apartment, residential, office and retail space.
This is the consortium’s first move to create a real estate development and investment platform in China after it was set up earlier this year.
Wing Tai said in May that it would lead a multinational consortium to invest in and develop about US$1 billion of real estate in China.
The company entered into a strategic relationship with Germany’s SEB Immobilien-Investment, Forum Partners of the US and Israel’s Eilam Group.
The consortium said then that it would inject a total of US$450 million into the venture.
Wing Tai said that it will lead the consortium in identifying business opportunities and managing the venture and its assets.
It also said that the venture with the three investors is in line with its strategy to embark on a pan-Asian drive to increase its overseas earnings.
The consortium is now looking at other Chinese cities to expand into. The Chengdu project is expected to be completed in four years.
‘I am confident that we will successfully develop a premier real estate model that will serve and benefit Chengdu in its rapid economic development and growth as one of China’s leading cities,’ said Wing Tai chairman Cheng Wai Keung.
Wing Tai’s shares closed six cents higher at $3.36 yesterday. The stock has climbed 47.4 per cent this year.
Source: Business Times 8 Sept 07
September 8th, 2007 · No Comments
Consortium to carry out 900,000 sq ft project due for completion in 2011
A CONSORTIUM led by Wing Tai Holdings will develop an 800 million yuan (S$161.1 million) real estate project in Chengdu, China.
Under a memorandum of understanding that Wing Tai signed yesterday with China’s Chengdu Jinli Group, the consortium will own ‘more than 60 per cent’ of the joint venture, which means its investment will be at least 480 million yuan.
The project, in Chengdu’s city centre, will have a gross floor area of about 900,000 sq ft. It will comprise hotel/ serviced apartment, residential, office and retail space.
This is the consortium’s first move to create a real estate development and investment platform in China after it was set up earlier this year.
Wing Tai said in May that it would lead a multinational consortium to invest in and develop about US$1 billion of real estate in China.
The company entered into a strategic relationship with Germany’s SEB Immobilien-Investment, Forum Partners of the US and Israel’s Eilam Group.
The consortium said then that it would inject a total of US$450 million into the venture.
Wing Tai said that it will lead the consortium in identifying business opportunities and managing the venture and its assets.
It also said that the venture with the three investors is in line with its strategy to embark on a pan-Asian drive to increase its overseas earnings.
The consortium is now looking at other Chinese cities to expand into. The Chengdu project is expected to be completed in four years.
‘I am confident that we will successfully develop a premier real estate model that will serve and benefit Chengdu in its rapid economic development and growth as one of China’s leading cities,’ said Wing Tai chairman Cheng Wai Keung.
Wing Tai’s shares closed six cents higher at $3.36 yesterday. The stock has climbed 47.4 per cent this year.
Source: Business Times 8 Sept 07
ON the back of good demand for industrial space, JTC Corporation yesterday launched a 235,400 sq ft land parcel at Pioneer Road/Tuas Avenue 11
ON the back of good demand for industrial space, JTC Corporation yesterday launched a 235,400 sq ft land parcel at Pioneer Road/Tuas Avenue 11 for sale, and market watchers estimate that the site could fetch as much as $7.6 million - or $23 per square foot per plot ratio (psf ppr).
JTC launched the site after it received a bid of $5.9 million on July 18. Observers, however, said that the site could fetch more than the initial bid.
Savills Singapore’s director of industrial business space Dominic Peters pointed out that in February, an industrial site at Tuas Bay Drive/Tuas South Avenue 3 was awarded for $23 psf ppr. That site had a 60-year lease.
While the lease for the site launched yesterday is for 30 years, Mr Peters expects the site to fetch $20-23 psf ppr due to good demand. The price translates to between $6.6 million and $7.6 million.
‘We anticipate very strong demand from end-users,’ he said. Companies in certain sectors - such as oil & gas and construction - are doing well at the moment and could be interested in the site, he said.
The site has a 1.4 plot ratio, giving it a gross floor area of 329,600 sq ft. It is zoned for ‘Business 2′ use, which means it can be used for clean, light and general industrial purposes, and warehousing.
The land parcel was on the Reserve List before its sale was triggered by the $5.9 million bid. Now, it is being launched under the Confirmed List.
The government had previously announced that it will launch two industrial sites under the Confirmed List and seven industrial sites under the Reserve List in the second half of 2007 under its Government Land Sales programme.
The tender for the site will close at 11 am on Oct 18.
Source : Business Times - 7 Sept 2007
JTC launched the site after it received a bid of $5.9 million on July 18. Observers, however, said that the site could fetch more than the initial bid.
Savills Singapore’s director of industrial business space Dominic Peters pointed out that in February, an industrial site at Tuas Bay Drive/Tuas South Avenue 3 was awarded for $23 psf ppr. That site had a 60-year lease.
While the lease for the site launched yesterday is for 30 years, Mr Peters expects the site to fetch $20-23 psf ppr due to good demand. The price translates to between $6.6 million and $7.6 million.
‘We anticipate very strong demand from end-users,’ he said. Companies in certain sectors - such as oil & gas and construction - are doing well at the moment and could be interested in the site, he said.
The site has a 1.4 plot ratio, giving it a gross floor area of 329,600 sq ft. It is zoned for ‘Business 2′ use, which means it can be used for clean, light and general industrial purposes, and warehousing.
The land parcel was on the Reserve List before its sale was triggered by the $5.9 million bid. Now, it is being launched under the Confirmed List.
The government had previously announced that it will launch two industrial sites under the Confirmed List and seven industrial sites under the Reserve List in the second half of 2007 under its Government Land Sales programme.
The tender for the site will close at 11 am on Oct 18.
Source : Business Times - 7 Sept 2007
Horizon Towers sales committee tried to scupper the en bloc sale by rallying the rest of the majority sellers
Several members of the Horizon Towers sales committee tried to scupper the en bloc sale by rallying the rest of the majority sellers into going back on their collective agreement, according to an affidavit filed in the High Court yesterday by the buyers.
The claim is one of several in the late-night filing made yesterday by Hotel Properties Ltd (HPL), Morgan Stanley Real Estate-managed funds and Qatar Investment Authority.
HPL and its partners had in February signed a deal with 84 per cent of the owners of Horizon Towers to buy the Leonie Hill property en bloc for $500 million. The sale fell through last month when the Strata Titles Board (STB) refused to grant a collective sale order, saying that Horizon Towers had filed a defective application.
HPL and its partners, through their lawyers Allen & Gledhill, are suing the majority sellers for failing to file a proper application.
In its affidavit - a copy of which was obtained by BT - HPL and its partners alleged that some members of the Horizon Towers sales committee tried to defeat the collective sale by encouraging the other majority sellers to go back on the agreement.
The affidavit said an anonymous circular was sent to all residents of Horizon Towers in late April. The circular said: ‘If enough like-minded owners rescind the agreement and the majority falls below 80 per cent, the application to the STB can be repealed . . . With cohesive cooperation, this movement can be successful.’
The circular included a blank ‘Letter to rescind participation in the collective sale agreement of Horizon Towers’ and urged owners to send their replies to two mailboxes - which the affidavit claims belong to two current members of the sales committee.
The affidavit also quoted from other anonymous flyers sent to the residents of Horizon Towers, which said the sellers were being paid a ‘paltry sum’ for their development.
HPL and its partners charge that some of the sellers want to back out of the deal because they were unhappy with the price offered for the development.
There had been several media reports that some sellers regretted their decision to sell Horizon Towers to HPL and its partners for $500 million, when neighbouring developments - such as The Grangeford - subsequently sold for double the per-square-foot amount.
The buyers’ case is that the majority sellers of Horizon Towers did not do their utmost to submit a proper application for a collective sale order to the STB.
They said the sellers filed the application only in April - two months after the deal was signed, and just four months ahead of the deadline for the completion of the sale. The buyers said this was a ‘breach of (the sellers’) express obligation to apply expeditiously for the collective sale order’.
They also claim the sellers were ambivalent about the dates for the STB hearing and were slow in releasing documents which the objectors - the minority sellers who objected to the en bloc sale - had requested.
This affidavit comes just ahead of a meeting today of all the majority sellers of Horizon Towers. They are meeting to decide how they should respond to HPL’s suit.
The sellers need to decide if they should accede to HPL’s demand that the sellers extend the deadline of the sale by four months, appeal against the STB’s decision and file a fresh application to the STB, if necessary. Alternatively, they can contest the suit.
Source : Business Times - 7 Sept 2007
The claim is one of several in the late-night filing made yesterday by Hotel Properties Ltd (HPL), Morgan Stanley Real Estate-managed funds and Qatar Investment Authority.
HPL and its partners had in February signed a deal with 84 per cent of the owners of Horizon Towers to buy the Leonie Hill property en bloc for $500 million. The sale fell through last month when the Strata Titles Board (STB) refused to grant a collective sale order, saying that Horizon Towers had filed a defective application.
HPL and its partners, through their lawyers Allen & Gledhill, are suing the majority sellers for failing to file a proper application.
In its affidavit - a copy of which was obtained by BT - HPL and its partners alleged that some members of the Horizon Towers sales committee tried to defeat the collective sale by encouraging the other majority sellers to go back on the agreement.
The affidavit said an anonymous circular was sent to all residents of Horizon Towers in late April. The circular said: ‘If enough like-minded owners rescind the agreement and the majority falls below 80 per cent, the application to the STB can be repealed . . . With cohesive cooperation, this movement can be successful.’
The circular included a blank ‘Letter to rescind participation in the collective sale agreement of Horizon Towers’ and urged owners to send their replies to two mailboxes - which the affidavit claims belong to two current members of the sales committee.
The affidavit also quoted from other anonymous flyers sent to the residents of Horizon Towers, which said the sellers were being paid a ‘paltry sum’ for their development.
HPL and its partners charge that some of the sellers want to back out of the deal because they were unhappy with the price offered for the development.
There had been several media reports that some sellers regretted their decision to sell Horizon Towers to HPL and its partners for $500 million, when neighbouring developments - such as The Grangeford - subsequently sold for double the per-square-foot amount.
The buyers’ case is that the majority sellers of Horizon Towers did not do their utmost to submit a proper application for a collective sale order to the STB.
They said the sellers filed the application only in April - two months after the deal was signed, and just four months ahead of the deadline for the completion of the sale. The buyers said this was a ‘breach of (the sellers’) express obligation to apply expeditiously for the collective sale order’.
They also claim the sellers were ambivalent about the dates for the STB hearing and were slow in releasing documents which the objectors - the minority sellers who objected to the en bloc sale - had requested.
This affidavit comes just ahead of a meeting today of all the majority sellers of Horizon Towers. They are meeting to decide how they should respond to HPL’s suit.
The sellers need to decide if they should accede to HPL’s demand that the sellers extend the deadline of the sale by four months, appeal against the STB’s decision and file a fresh application to the STB, if necessary. Alternatively, they can contest the suit.
Source : Business Times - 7 Sept 2007
Naumi, the latest name in boutique hotels, opens in Singapore next week, with room rates ranging from $390 to $1,200.
Naumi, the latest name in boutique hotels, opens in Singapore next week, with room rates ranging from $390 to $1,200.
Located next to Raffles Hotel in Seah Street, the 40-room Naumi will offer mostly deluxe suites costing $500 a night - about the same as a room at a five-star hotel. But Naumi is a different proposition. Owned by the Hind Group, its managing director Surya Jhunjhnuwala says that the hotel will provide ‘highly personalised’ service.
The initial staff-to-guest ratio is one to one - and Mr Jhunjhnuwala still expects this to increase. His family owned the Imperial Hotel off River Valley Road between 1977 and 1999 before selling it. ‘We have always been keen to get back into the hospitality business,’ he says.
This time, Hind Group wants to focus on the boutique segment. Mr Jhunjhnuwala says that the target is to have hotels with a total of 1,000 rooms within three years, with the ideal size for a Naumi hotel being 30-70 rooms.
The group will look for opportunities in China, Vietnam, Hong Kong and Thailand and is still looking in Singapore. But it is not likely to find anything for $18 million - the price it paid for the Metropole Hotel in April 2006, which was converted into Naumi in eight months.
Indeed, it could sell the hotel now and make a tidy profit. But Mr Jhunjhnuwala says that although there is ‘a price for everything’, selling Naumi is not the plan at present. The old Metropole Hotel was gutted and given a hip makeover by award-winning local firm Eco-id Architecture and Design at a cost of more than $10 million or an estimated $250,000 a room.
Naumi is by no means Singapore’s first boutique hotel. Establishments such as The Scarlet, Hotel 1929 and the New Majestic Hotel are already popular with the fashion-conscious crowd.
But Mr Jhunjhnuwala says Naumi is less ‘thematic’. He is confident it will provide at least a 5 per cent return on investment.
Source : Business Times - 06 Sept 2007
Located next to Raffles Hotel in Seah Street, the 40-room Naumi will offer mostly deluxe suites costing $500 a night - about the same as a room at a five-star hotel. But Naumi is a different proposition. Owned by the Hind Group, its managing director Surya Jhunjhnuwala says that the hotel will provide ‘highly personalised’ service.
The initial staff-to-guest ratio is one to one - and Mr Jhunjhnuwala still expects this to increase. His family owned the Imperial Hotel off River Valley Road between 1977 and 1999 before selling it. ‘We have always been keen to get back into the hospitality business,’ he says.
This time, Hind Group wants to focus on the boutique segment. Mr Jhunjhnuwala says that the target is to have hotels with a total of 1,000 rooms within three years, with the ideal size for a Naumi hotel being 30-70 rooms.
The group will look for opportunities in China, Vietnam, Hong Kong and Thailand and is still looking in Singapore. But it is not likely to find anything for $18 million - the price it paid for the Metropole Hotel in April 2006, which was converted into Naumi in eight months.
Indeed, it could sell the hotel now and make a tidy profit. But Mr Jhunjhnuwala says that although there is ‘a price for everything’, selling Naumi is not the plan at present. The old Metropole Hotel was gutted and given a hip makeover by award-winning local firm Eco-id Architecture and Design at a cost of more than $10 million or an estimated $250,000 a room.
Naumi is by no means Singapore’s first boutique hotel. Establishments such as The Scarlet, Hotel 1929 and the New Majestic Hotel are already popular with the fashion-conscious crowd.
But Mr Jhunjhnuwala says Naumi is less ‘thematic’. He is confident it will provide at least a 5 per cent return on investment.
Source : Business Times - 06 Sept 2007
A Goldman Sachs-linked fund is believed to be the buyer of Chevron House (formerly Caltex House)
A Goldman Sachs-linked fund is believed to be the buyer of Chevron House (formerly Caltex House) whose sale by CapitaLand and its partners was announced last week. The deal values the leasehold Raffles Place office block at $730 million or a record $2,780 per square foot (psf) of net lettable area. CapitaLand last week declined to identify the buyer.
Market watchers noted that Chevron House will be Goldman Sachs’ second major acquisition of an office property in Singapore. A Goldman Sachs real estate fund bought DBS Towers 1 and 2 on Shenton Way in November 2005 for $690 million, or around $800 psf of net lettable area.
‘They could reap a nice profit if they decide to sell DBS Towers 1 and 2 today, given that they bought the asset during the early days of the office market upcycle,’ an industry observer noted.
Industry watchers said that capital values of offices in Singapore today are around two-and-a-half times what they were in the final quarter of 2005 so based on that, DBS Towers 1 and 2 should be able to command around $2,000 psf or possibly even more, given the shortage of offices.
This is despite the leasehold tenure of the property. The older 49-storey Tower 1 was completed in 1974, while the 34-storey Tower 2 was completed 13 years ago. The property has parking for about 400 cars.
Goldman Sachs bought the property from DBS, which leased back the office space it then occupied in the two towers for an initial eight-year term, with an option to renew the lease for two three-year periods, according to an earlier news report.
As for Chevron House, the change of ownership is taking place through shares in Savu Properties Ltd. Basically, CapitaLand, IP Property Fund Asia and NTUC Income Insurance Co-operative are selling their respective stakes - of 50 per cent, 25 per cent and 25 per cent - in Savu, which owns Chevron House, which stands on a site with a remaining lease of about 81 years.
CapitaLand said in its release last week that the completion date for the deal is Sept 24, and that upon completion, it will recognise in its group consolidated accounts a gain of about $150.8 million.
CapitaLand also owns a 50 per cent stake in neighbouring Hitachi Tower, where an exclusivity period has been granted to a potential buyer to conduct due diligence after discussions with the previous top bidder hit some snags, BT understands.
If the latest negotiations for the 999-year leasehold Hitachi Tower succeed, a new benchmark price is expected to be achieved for a Singapore office block.
Source : Business Times - 06 Sept 2007
Market watchers noted that Chevron House will be Goldman Sachs’ second major acquisition of an office property in Singapore. A Goldman Sachs real estate fund bought DBS Towers 1 and 2 on Shenton Way in November 2005 for $690 million, or around $800 psf of net lettable area.
‘They could reap a nice profit if they decide to sell DBS Towers 1 and 2 today, given that they bought the asset during the early days of the office market upcycle,’ an industry observer noted.
Industry watchers said that capital values of offices in Singapore today are around two-and-a-half times what they were in the final quarter of 2005 so based on that, DBS Towers 1 and 2 should be able to command around $2,000 psf or possibly even more, given the shortage of offices.
This is despite the leasehold tenure of the property. The older 49-storey Tower 1 was completed in 1974, while the 34-storey Tower 2 was completed 13 years ago. The property has parking for about 400 cars.
Goldman Sachs bought the property from DBS, which leased back the office space it then occupied in the two towers for an initial eight-year term, with an option to renew the lease for two three-year periods, according to an earlier news report.
As for Chevron House, the change of ownership is taking place through shares in Savu Properties Ltd. Basically, CapitaLand, IP Property Fund Asia and NTUC Income Insurance Co-operative are selling their respective stakes - of 50 per cent, 25 per cent and 25 per cent - in Savu, which owns Chevron House, which stands on a site with a remaining lease of about 81 years.
CapitaLand said in its release last week that the completion date for the deal is Sept 24, and that upon completion, it will recognise in its group consolidated accounts a gain of about $150.8 million.
CapitaLand also owns a 50 per cent stake in neighbouring Hitachi Tower, where an exclusivity period has been granted to a potential buyer to conduct due diligence after discussions with the previous top bidder hit some snags, BT understands.
If the latest negotiations for the 999-year leasehold Hitachi Tower succeed, a new benchmark price is expected to be achieved for a Singapore office block.
Source : Business Times - 06 Sept 2007
After the breathless rush earlier in the year, there was just a single collective sale in August - that of Margate Mansion at a modest $58 million.
After the breathless rush earlier in the year, there was just a single collective sale in August - that of Margate Mansion at a modest $58 million.
In contrast, the first seven months of 2007 saw a total of 62 collective sale transactions worth about $11.86 billion, based on industry figures compiled by Credo Real Estate. This reflects an average of around nine deals each month, worth almost $1.7 billion between them. The impact of the sub-prime mortgage woes in the US and the stock market rout that followed was obvious.
Credo managing director Karamjit Singh observed that the Singapore property market usually tends to take a breather in the third quarter.
But he expects the pace of collective sale transactions to pick up again in Q4 - assuming that the sub-prime crisis does not escalate further. Still, he does not expect activity to be as intense as in the first seven months of this year, before the current lull set in. ‘Any recovery in land buying would be resuming from a high base. Some developers have already bought sites, so their appetites are satiated and they would need to offload some new projects before they replenish their landbanks,’ Mr Singh added.
CB Richard Ellis executive director Jeremy Lake expects the number of collective sale transactions to average about two to three per month for the rest of the year. Contributing to this trend are high asking prices on part of the owners and upcoming changes to the en bloc legislation that could lengthen the gestation period before sites can be launched for tender.
Both Mr Lake and Mr Singh believe that benchmark prices may still be achieved for residential land in the months ahead. ‘The critical factor will be how the end-product market fares. If developers see strong home buying at their launches, they will keep replenishing their landbanks. If not, developers may be more selective about their land acquisitions,’ Mr Lake says.
DTZ Debenham Tie Leung director (investment advisory services) Shaun Poh reckons that over the next couple of months one is unlikely to see any benchmark residential land prices being achieved through en bloc sales. He felt that deals were likely to be in the $50 million to $100 million range and the buyers were likely to be smaller developers and contractors.
On a more positive note, Cushman & Wakefield managing director Donald Han felt that the current lull in the collective sales market presented buying opportunities. ‘For investors who’ve missed out on the action earlier, especially international funds, because the pace of transactions was too quick for them to do due diligence, this is the best time to come in and negotiate - on their (buyers’) terms,’ Mr Han added.
Credo’s Mr Singh noted that fundamentals in the property market were still very strong. ‘There’s still an undersupply situation, created by strong home buying since 2005 and exacerbated by the strong wave of en bloc sales which will cause a temporary withdrawal of supply as sites sold through collective sales are redeveloped. International funds are still prepared to invest in Singapore property because this place seems to have some exciting years ahead,’ he said.
Source : Business Times - 06 Sept 2007
In contrast, the first seven months of 2007 saw a total of 62 collective sale transactions worth about $11.86 billion, based on industry figures compiled by Credo Real Estate. This reflects an average of around nine deals each month, worth almost $1.7 billion between them. The impact of the sub-prime mortgage woes in the US and the stock market rout that followed was obvious.
Credo managing director Karamjit Singh observed that the Singapore property market usually tends to take a breather in the third quarter.
But he expects the pace of collective sale transactions to pick up again in Q4 - assuming that the sub-prime crisis does not escalate further. Still, he does not expect activity to be as intense as in the first seven months of this year, before the current lull set in. ‘Any recovery in land buying would be resuming from a high base. Some developers have already bought sites, so their appetites are satiated and they would need to offload some new projects before they replenish their landbanks,’ Mr Singh added.
CB Richard Ellis executive director Jeremy Lake expects the number of collective sale transactions to average about two to three per month for the rest of the year. Contributing to this trend are high asking prices on part of the owners and upcoming changes to the en bloc legislation that could lengthen the gestation period before sites can be launched for tender.
Both Mr Lake and Mr Singh believe that benchmark prices may still be achieved for residential land in the months ahead. ‘The critical factor will be how the end-product market fares. If developers see strong home buying at their launches, they will keep replenishing their landbanks. If not, developers may be more selective about their land acquisitions,’ Mr Lake says.
DTZ Debenham Tie Leung director (investment advisory services) Shaun Poh reckons that over the next couple of months one is unlikely to see any benchmark residential land prices being achieved through en bloc sales. He felt that deals were likely to be in the $50 million to $100 million range and the buyers were likely to be smaller developers and contractors.
On a more positive note, Cushman & Wakefield managing director Donald Han felt that the current lull in the collective sales market presented buying opportunities. ‘For investors who’ve missed out on the action earlier, especially international funds, because the pace of transactions was too quick for them to do due diligence, this is the best time to come in and negotiate - on their (buyers’) terms,’ Mr Han added.
Credo’s Mr Singh noted that fundamentals in the property market were still very strong. ‘There’s still an undersupply situation, created by strong home buying since 2005 and exacerbated by the strong wave of en bloc sales which will cause a temporary withdrawal of supply as sites sold through collective sales are redeveloped. International funds are still prepared to invest in Singapore property because this place seems to have some exciting years ahead,’ he said.
Source : Business Times - 06 Sept 2007
Republic will power ahead with 7.5-per-cent growth this year.
WITH just four months to go before 2007 draws to a close, private-sector economists have given the economy the thumbs up, predicting that the Republic will power ahead with 7.5-per-cent growth this year.
This is up from an estimate of 6 per cent in the last Monetary Authority of Singapore (MAS) survey in June.
And next year, Singapore could enjoy economic growth of 6.5 per cent, up from a previous estimate of 5.8 per cent.
Interestingly, this optimism comes through even though the survey was done amid the stock market volatility last month over the United States’ sub-prime concerns.
The survey was released yesterday, almost a month after the Government raised its GDP targets to between 7 and 8 per cent on the back of a buoyant second-quarter showing.
The 18 economists raised their median growth forecasts for all sectors, except for marginal downgrades for the hotel/ restaurant industry and non-oil domestic exports.
Most notably, the construction sector is expected to gain 15 per cent for the year — up from 10 per cent in the previous forecast — overtaking financial services as the main engine of growth.
The MAS distributed the survey on Aug 13, just as global stock markets plummeted from fears of a worldwide credit crunch caused by rising default rates in the US housing market.
Citibank economist Chua Hak Bin attributed the optimism to an exceptionally strong second quarter showing here and the limited impact of the US housing recession.
He said: “One argument is that there are multiple growth drivers, and some of these drivers are actually because of the strong investment rebound. And the investment would continue regardless of what happens to external demand.”
But experts are split on whether the US housing slump — said to be the worst in 16 years — will affect the broader economy and spiral to Asia.
UOB economist Alvin Liew cautioned that the effects of US sub-prime crisis “have yet to unravel”.
Said Mr Liew: “There’s still a lot of uncertainty. But the US Federal Reserve has already shown the commitment to come in to ease liquidity.”
Last month, the Fed cut the rate on direct loans to banks in an effort to increase liquidity as investors shunned assets linked to sub-prime mortgages.
And last Friday, Fed chairman Ben S Bernanke said the central bank will do what is needed to stop the credit market rout from wrecking the six-year expansion — a move that some experts think will involve the cutting of interest rates, currently at 5.25 per cent, at a highly-anticipated meeting on Sept 18.
Said Citibank’s Dr Chua: “Once the Federal Reserve cuts interest rates, I think the market will probably stabilise.”
He also pointed out that the US consumer market was not as heavily hit this time, compared to the previous US housing recessions that took place at both ends of the 1980s, when both the mortgage rate and unemployment figures hit double digits.
Still, any slowdown in the US will also be buffered by the rosy economies elsewhere, particularly in China, said Mr David Cohen, director of Asian economics forecasting at Action Economics.
He added: “The fact that the rest of the world is pretty healthy right now is helping to boost US exports.”
Which is why economists are predicting a smooth end to the year, with continued growth in all the sectors — even as the US sub-prime woes loom large.
As Mr Liew put it: “We already have three quarters of growth in the bag. I don’t see how we can drop off to below 7-per-cent growth.”
Source : Today - 06 Sept 2007
This is up from an estimate of 6 per cent in the last Monetary Authority of Singapore (MAS) survey in June.
And next year, Singapore could enjoy economic growth of 6.5 per cent, up from a previous estimate of 5.8 per cent.
Interestingly, this optimism comes through even though the survey was done amid the stock market volatility last month over the United States’ sub-prime concerns.
The survey was released yesterday, almost a month after the Government raised its GDP targets to between 7 and 8 per cent on the back of a buoyant second-quarter showing.
The 18 economists raised their median growth forecasts for all sectors, except for marginal downgrades for the hotel/ restaurant industry and non-oil domestic exports.
Most notably, the construction sector is expected to gain 15 per cent for the year — up from 10 per cent in the previous forecast — overtaking financial services as the main engine of growth.
The MAS distributed the survey on Aug 13, just as global stock markets plummeted from fears of a worldwide credit crunch caused by rising default rates in the US housing market.
Citibank economist Chua Hak Bin attributed the optimism to an exceptionally strong second quarter showing here and the limited impact of the US housing recession.
He said: “One argument is that there are multiple growth drivers, and some of these drivers are actually because of the strong investment rebound. And the investment would continue regardless of what happens to external demand.”
But experts are split on whether the US housing slump — said to be the worst in 16 years — will affect the broader economy and spiral to Asia.
UOB economist Alvin Liew cautioned that the effects of US sub-prime crisis “have yet to unravel”.
Said Mr Liew: “There’s still a lot of uncertainty. But the US Federal Reserve has already shown the commitment to come in to ease liquidity.”
Last month, the Fed cut the rate on direct loans to banks in an effort to increase liquidity as investors shunned assets linked to sub-prime mortgages.
And last Friday, Fed chairman Ben S Bernanke said the central bank will do what is needed to stop the credit market rout from wrecking the six-year expansion — a move that some experts think will involve the cutting of interest rates, currently at 5.25 per cent, at a highly-anticipated meeting on Sept 18.
Said Citibank’s Dr Chua: “Once the Federal Reserve cuts interest rates, I think the market will probably stabilise.”
He also pointed out that the US consumer market was not as heavily hit this time, compared to the previous US housing recessions that took place at both ends of the 1980s, when both the mortgage rate and unemployment figures hit double digits.
Still, any slowdown in the US will also be buffered by the rosy economies elsewhere, particularly in China, said Mr David Cohen, director of Asian economics forecasting at Action Economics.
He added: “The fact that the rest of the world is pretty healthy right now is helping to boost US exports.”
Which is why economists are predicting a smooth end to the year, with continued growth in all the sectors — even as the US sub-prime woes loom large.
As Mr Liew put it: “We already have three quarters of growth in the bag. I don’t see how we can drop off to below 7-per-cent growth.”
Source : Today - 06 Sept 2007
Taking a cue from the government, private-sector economists have bumped up their forecasts of Singapore’s 2007 economic growth to a median of 7.5 per
Taking a cue from the government, private-sector economists have bumped up their forecasts of Singapore’s 2007 economic growth to a median of 7.5 per cent, with the most optimistic gunning for 8.1 per cent.
The 7.5 per cent forecast from 18 respondents to the Monetary Authority of Singapore’s quarterly survey of professional forecasters last month is 1.5 percentage points higher than the May poll’s results - and smack in the middle of the latest revised 7-8 per cent official growth forecast.
The 2007 growth forecasts from the latest MAS poll - which range from 6.7 to 8.1 per cent - are heavily skewed towards the high end.
The survey respondents put a near-50 per cent chance on the economy growing 7 to 7.9 per cent this year and a 23 per cent probability that growth will be in the 8 to 8.9 per cent range.
The economy grew 7.6 per cent in the first six months of 2007, and the forecasters expect the pace to continue in the second half.
The economists see third-quarter growth at a median 7.8 per cent, and fourth quarter at 7.6 per cent. Growth this year is expected to be driven by two resurgent sectors in particular - financial services and construction.
The forecasters see financial services growing a median 12.2 per cent in Q3 and 13.5 per cent year-round.
For construction, the estimates are a median 15 per cent growth, for both Q3 and year-round. The sector grew 17.6 in Q2, when overall GDP expanded a blistering 8.6 per cent.
Among other key indicators, the economists forecast inflation to come in at 1.5 per cent this year and the jobless rate to edge down to 2.5 per cent by year-end.
Next year, GDP growth is projected to moderate to 6.5 per cent. This too has been raised from an earlier estimate of 5.8 per cent in the previous survey. The economists reckoned that the Singapore economy will most likely grow between 6 and 6.9 per cent.
Source : Business Times - 06 Sept 2007
The 7.5 per cent forecast from 18 respondents to the Monetary Authority of Singapore’s quarterly survey of professional forecasters last month is 1.5 percentage points higher than the May poll’s results - and smack in the middle of the latest revised 7-8 per cent official growth forecast.
The 2007 growth forecasts from the latest MAS poll - which range from 6.7 to 8.1 per cent - are heavily skewed towards the high end.
The survey respondents put a near-50 per cent chance on the economy growing 7 to 7.9 per cent this year and a 23 per cent probability that growth will be in the 8 to 8.9 per cent range.
The economy grew 7.6 per cent in the first six months of 2007, and the forecasters expect the pace to continue in the second half.
The economists see third-quarter growth at a median 7.8 per cent, and fourth quarter at 7.6 per cent. Growth this year is expected to be driven by two resurgent sectors in particular - financial services and construction.
The forecasters see financial services growing a median 12.2 per cent in Q3 and 13.5 per cent year-round.
For construction, the estimates are a median 15 per cent growth, for both Q3 and year-round. The sector grew 17.6 in Q2, when overall GDP expanded a blistering 8.6 per cent.
Among other key indicators, the economists forecast inflation to come in at 1.5 per cent this year and the jobless rate to edge down to 2.5 per cent by year-end.
Next year, GDP growth is projected to moderate to 6.5 per cent. This too has been raised from an earlier estimate of 5.8 per cent in the previous survey. The economists reckoned that the Singapore economy will most likely grow between 6 and 6.9 per cent.
Source : Business Times - 06 Sept 2007
MACARTHURCOOK Industrial Reit (MI-Reit) said independent revaluations of six of its properties have resulted in the total value
MACARTHURCOOK Industrial Reit (MI-Reit) said independent revaluations of six of its properties have resulted in the total value of its initial portfolio of 12 properties standing now at $346.8 million, a rise of $30.6 million or 9.7 per cent.
MacarthurCook Investment Managers (Asia), the manager of MI-Reit, has a policy of revaluing properties in the portfolio on a rolling basis throughout the financial year and in accordance with the property fund guidelines.
The initial portfolio of the real estate investment trust, which was listed on April 19 this year, comprises 12 industrial assets across Singapore with a combined value of $316.2 million at the date of listing.
The largest rise in valuation came from UE Technology Park - MI-Reit’s largest property by value - which saw a revaluation gain of $23.9 million, or 21 per cent.
The revaluations of all the six properties were conducted by CB Richard Ellis.
Just last month, Singapore’s fourth listed industrial Reit said it was extending its investments into offices and technology parks by agreeing to buy Plot 4A, International Business Park from Eurochem Corporation (a member of Tolaram Group), for $91 million.
MI-Reit invests primarily in industrial real estate assets in Singapore, Japan, Hong Kong, Malaysia and China.
Last month, the Reit reported a distributable income of $3.9 million for its first quarter ended June 30.
Distribution per unit (DPU) was 1.52 cents, which, was 3 per cent higher than the forecast DPU of 1.47 cents.
Source : Business Times - 05 Sep 2007
MacarthurCook Investment Managers (Asia), the manager of MI-Reit, has a policy of revaluing properties in the portfolio on a rolling basis throughout the financial year and in accordance with the property fund guidelines.
The initial portfolio of the real estate investment trust, which was listed on April 19 this year, comprises 12 industrial assets across Singapore with a combined value of $316.2 million at the date of listing.
The largest rise in valuation came from UE Technology Park - MI-Reit’s largest property by value - which saw a revaluation gain of $23.9 million, or 21 per cent.
The revaluations of all the six properties were conducted by CB Richard Ellis.
Just last month, Singapore’s fourth listed industrial Reit said it was extending its investments into offices and technology parks by agreeing to buy Plot 4A, International Business Park from Eurochem Corporation (a member of Tolaram Group), for $91 million.
MI-Reit invests primarily in industrial real estate assets in Singapore, Japan, Hong Kong, Malaysia and China.
Last month, the Reit reported a distributable income of $3.9 million for its first quarter ended June 30.
Distribution per unit (DPU) was 1.52 cents, which, was 3 per cent higher than the forecast DPU of 1.47 cents.
Source : Business Times - 05 Sep 2007
INCITY Lofts, an eight-storey block of small office, home office (Soho) units at Beach Road
INCITY Lofts, an eight-storey block of small office, home office (Soho) units at Beach Road completed about three years ago, is being offered for sale at a minimum price of $70 million or $1,149 per square foot (psf) of strata area.
The land lease tenure of the site has been extended to a full 99-year term starting April 2004, after the building was completed.
InCity Lofts, at 700 Beach Road, is being sold by its developer, In-Space Pte Ltd, whose shareholders are said to include Wee Chwee Heng of Kumpulan Akitek.
InCity Lofts comprises a ground-floor retail unit as well as 54 Soho units - ranging from studio units to maisonette penthouses - spread across the second to eighth levels of the building, which has a roof-top pool. There are also 24 surface and covered carpark lots on the ground level of the development.
‘The majority of the units in the development are leased; and leases are mostly short-term, hence the new investor can reposition or re-let the building and ride on the strong office rental market,’ said Cushman & Wakefield managing director Donald Han, whose firm is marketing the InCity Lofts en bloc sale through an expression of interest exercise that closes on Sept 28.
Nearby commercial buildings like The Concourse are operating near full occupancy with asking rents for office units in the region of $10 psf a month, Mr Han said.
Assuming InCity Lofts units are rented out conservatively at $6 psf a month and based on a minimum price of $70 million, the net yield for an investor works out to over 5 per cent a year, he added.
‘This is a top-end yield play for investors looking for an aggressive rental with capital appreciation growth,’ Mr Han said.
InCity Lofts has a land area of 18,401 sq ft and a fully built up plot ratio (ratio of maximum potential gross floor area to land area) of 4.15.
Source : Business Times - 05 Sep 2007
The land lease tenure of the site has been extended to a full 99-year term starting April 2004, after the building was completed.
InCity Lofts, at 700 Beach Road, is being sold by its developer, In-Space Pte Ltd, whose shareholders are said to include Wee Chwee Heng of Kumpulan Akitek.
InCity Lofts comprises a ground-floor retail unit as well as 54 Soho units - ranging from studio units to maisonette penthouses - spread across the second to eighth levels of the building, which has a roof-top pool. There are also 24 surface and covered carpark lots on the ground level of the development.
‘The majority of the units in the development are leased; and leases are mostly short-term, hence the new investor can reposition or re-let the building and ride on the strong office rental market,’ said Cushman & Wakefield managing director Donald Han, whose firm is marketing the InCity Lofts en bloc sale through an expression of interest exercise that closes on Sept 28.
Nearby commercial buildings like The Concourse are operating near full occupancy with asking rents for office units in the region of $10 psf a month, Mr Han said.
Assuming InCity Lofts units are rented out conservatively at $6 psf a month and based on a minimum price of $70 million, the net yield for an investor works out to over 5 per cent a year, he added.
‘This is a top-end yield play for investors looking for an aggressive rental with capital appreciation growth,’ Mr Han said.
InCity Lofts has a land area of 18,401 sq ft and a fully built up plot ratio (ratio of maximum potential gross floor area to land area) of 4.15.
Source : Business Times - 05 Sep 2007
Banks are tightening up on the way they lend money for buying homes while the property market is coming off the boil, housing agents report.
Banks are tightening up on the way they lend money for buying homes while the property market is coming off the boil, housing agents report.
With the world’s financial markets in turmoil, following a crisis in US mortgage lending to people with bad credit records, bankers in Singapore say that when it comes to assessing home loan applications, the ability of borrowers to pay is paramount.
The trouble in the financial markets, coupled with the ‘ghost month’ here which makes the third quarter traditionally a slower period for home sales, has led to asking prices easing, especially in the secondary market, agents say.
Citigroup economist Chua Hak Bin says: ‘Banks have definitely become more cautious.
‘Just look at The Straits Times classifieds - they’re flooded with speculators trying to offload.’
Dr Chua reckons that property prices have cooled about 5-10 per cent.
Knight Frank managing director Tan Tiong Cheng has a different take on the situation; he says prices from actual deals that he has seen have not slipped. ‘That impression may have come from those ridiculous (asking) prices,’ he said.
He said the apparent increased wariness of bankers was a reaction to the volatility in the stock market which was affected by the US sub-prime mortgage crisis. And bankers’ ‘natural instinct’ is also to be more prudent, said Mr Tan.
Generally, banks continue to finance a maximum of around 80 per cent of the value of a property, despite rules allowing up to 90 per cent funding. And some housing agents say banks have become stricter in valuations and are lending less than 80 per cent of the value of the property.
‘Banks control the valuations,’ said one agent.
The agent said feedback from buyers is that banks can’t match the valuations and they have to cough up more cash for the purchase.
Especially at times of rapidly changing prices, the notional value of a property as set by expert valuers can be adrift from what buyers are actually called on to pay.
Banks say they rely on their panel of experts appointed from property consultant firms for valuations.
Some also have in-house valuers to provide a view of the overall market.
‘In general, we will take the valuations by the appointed valuer as fair value,’ said Gregory Chan, OCBC Bank head of consumer secured lending.
‘However, where new benchmark pricing is concerned, we will take the average. Although valuation is a key component, a borrower’s creditworthiness remains the primary consideration in determining loan eligibility and some factors taken into account include income level, credit history and repayment ability.’
Helen Neo, Maybank Singapore head of consumer banking, said the bank does not discriminate against high-end properties, especially where purchase price is supported by valuation.
‘However, we would take a more conservative stance in terms of loan quantum should the purchase price exceed valuation significantly,’ she said. ‘However, for loans amount of $2 million and below, we require the borrower to use our in-house valuer.’
A DBS spokeswoman said: ‘In assessing loan applications, we accept valuations professionally done by reputable certified valuers who are on the DBS panel. In addition, we consider the buyer’s ability to repay and the purpose of the purchase.’
At DBS’s second-quarter results briefing in July, chief executive Jackson Tai said the bank had been taking a ’stringent view’ on credit quality and had ‘avoided any concentration’ in a single development or district.
At the very high end, foreigners make up a significant portion of buyers - and banks have been seeing more of such borrowers.
Edmund Koh, DBS’s head of regional consumer banking, said there had been an increase in foreigners taking up loans, from 5.6 per cent of the total new loans book last year to 7.8 per cent for the year to date. United Overseas Bank executive vice-president Eddie Khoo disclosed last month at the bank’s secondquarter results that foreigners account for about 10 per cent of home loans. Overall, too, the bank was being cautious, given the market conditions.
‘As you know, property prices are moving up quite rapidly,’ said Mr Khoo. ‘But what’s good is that we are seeing less than 10 per cent of loans being booked (with) more than 80 per cent financing. We have a good portion of customers putting in more cash and equity in the purchase of property.’
Dr Chua said that banks were becoming more cautious in extending property loans to foreigners, especially in cases where prices were sizzling and people were buying for investment.
Anecdotally, he was aware of several cases where people could not get valuations to match their purchase prices.
For the mid-tier segment and if it is for owner occupation, banks are still more relaxed in their loan criteria, Dr Chua said.
Latest official data show that borrowing by homebuyers was up 8.1 per cent in July, accelerating from 6.9 per cent in June.
Mortgage growth had been sluggish for several months despite the Singapore property boom.
In the 11 months to March, mortgage growth in Singapore remained under 3 per cent even though home sales surged.
A key factor for this is the popularity of deferred payment schemes offered by developers, and many of these projects are approaching completion.
Dr Chua expects mortgage growth to reach double digits by the end of the year.
UOB and DBS said their Singapore mortgage book grew at 15 and 14 per cent respectively in the first half of this year.
There is little similarity between US lending practices and those in Singapore, where the banks have a good buffer in their exposure to mortgages. Although the Monetary Authority of Singapore eased financing limits from 80 per cent to 90 per cent two years ago, most banks said the bulk of their loans are booked at not more than 80 per cent financing.
They also said that investment properties do not account for more than 20 per cent of total loans.
Source : Business Times - 05 Sep 2007
With the world’s financial markets in turmoil, following a crisis in US mortgage lending to people with bad credit records, bankers in Singapore say that when it comes to assessing home loan applications, the ability of borrowers to pay is paramount.
The trouble in the financial markets, coupled with the ‘ghost month’ here which makes the third quarter traditionally a slower period for home sales, has led to asking prices easing, especially in the secondary market, agents say.
Citigroup economist Chua Hak Bin says: ‘Banks have definitely become more cautious.
‘Just look at The Straits Times classifieds - they’re flooded with speculators trying to offload.’
Dr Chua reckons that property prices have cooled about 5-10 per cent.
Knight Frank managing director Tan Tiong Cheng has a different take on the situation; he says prices from actual deals that he has seen have not slipped. ‘That impression may have come from those ridiculous (asking) prices,’ he said.
He said the apparent increased wariness of bankers was a reaction to the volatility in the stock market which was affected by the US sub-prime mortgage crisis. And bankers’ ‘natural instinct’ is also to be more prudent, said Mr Tan.
Generally, banks continue to finance a maximum of around 80 per cent of the value of a property, despite rules allowing up to 90 per cent funding. And some housing agents say banks have become stricter in valuations and are lending less than 80 per cent of the value of the property.
‘Banks control the valuations,’ said one agent.
The agent said feedback from buyers is that banks can’t match the valuations and they have to cough up more cash for the purchase.
Especially at times of rapidly changing prices, the notional value of a property as set by expert valuers can be adrift from what buyers are actually called on to pay.
Banks say they rely on their panel of experts appointed from property consultant firms for valuations.
Some also have in-house valuers to provide a view of the overall market.
‘In general, we will take the valuations by the appointed valuer as fair value,’ said Gregory Chan, OCBC Bank head of consumer secured lending.
‘However, where new benchmark pricing is concerned, we will take the average. Although valuation is a key component, a borrower’s creditworthiness remains the primary consideration in determining loan eligibility and some factors taken into account include income level, credit history and repayment ability.’
Helen Neo, Maybank Singapore head of consumer banking, said the bank does not discriminate against high-end properties, especially where purchase price is supported by valuation.
‘However, we would take a more conservative stance in terms of loan quantum should the purchase price exceed valuation significantly,’ she said. ‘However, for loans amount of $2 million and below, we require the borrower to use our in-house valuer.’
A DBS spokeswoman said: ‘In assessing loan applications, we accept valuations professionally done by reputable certified valuers who are on the DBS panel. In addition, we consider the buyer’s ability to repay and the purpose of the purchase.’
At DBS’s second-quarter results briefing in July, chief executive Jackson Tai said the bank had been taking a ’stringent view’ on credit quality and had ‘avoided any concentration’ in a single development or district.
At the very high end, foreigners make up a significant portion of buyers - and banks have been seeing more of such borrowers.
Edmund Koh, DBS’s head of regional consumer banking, said there had been an increase in foreigners taking up loans, from 5.6 per cent of the total new loans book last year to 7.8 per cent for the year to date. United Overseas Bank executive vice-president Eddie Khoo disclosed last month at the bank’s secondquarter results that foreigners account for about 10 per cent of home loans. Overall, too, the bank was being cautious, given the market conditions.
‘As you know, property prices are moving up quite rapidly,’ said Mr Khoo. ‘But what’s good is that we are seeing less than 10 per cent of loans being booked (with) more than 80 per cent financing. We have a good portion of customers putting in more cash and equity in the purchase of property.’
Dr Chua said that banks were becoming more cautious in extending property loans to foreigners, especially in cases where prices were sizzling and people were buying for investment.
Anecdotally, he was aware of several cases where people could not get valuations to match their purchase prices.
For the mid-tier segment and if it is for owner occupation, banks are still more relaxed in their loan criteria, Dr Chua said.
Latest official data show that borrowing by homebuyers was up 8.1 per cent in July, accelerating from 6.9 per cent in June.
Mortgage growth had been sluggish for several months despite the Singapore property boom.
In the 11 months to March, mortgage growth in Singapore remained under 3 per cent even though home sales surged.
A key factor for this is the popularity of deferred payment schemes offered by developers, and many of these projects are approaching completion.
Dr Chua expects mortgage growth to reach double digits by the end of the year.
UOB and DBS said their Singapore mortgage book grew at 15 and 14 per cent respectively in the first half of this year.
There is little similarity between US lending practices and those in Singapore, where the banks have a good buffer in their exposure to mortgages. Although the Monetary Authority of Singapore eased financing limits from 80 per cent to 90 per cent two years ago, most banks said the bulk of their loans are booked at not more than 80 per cent financing.
They also said that investment properties do not account for more than 20 per cent of total loans.
Source : Business Times - 05 Sep 2007
THE Urban Redevelopment Authority (URA) has put a residential site at Enggor Street on the Confirmed List of the Government Land Sales Programme
THE Urban Redevelopment Authority (URA) has put a residential site at Enggor Street on the Confirmed List of the Government Land Sales Programme for the second half of 2007.
Previously on the Reserve List, the site - Enggor Street (Land Parcel A) - is now almost certainly assured of a faster sale as it no longer requires a committed minimum bid before being put up for public tender.
The site has an area of about 0.30 ha and can generate a maximum permissible gross floor area of about 25,504 sq m (274,522.5 sq ft), and is zoned for residential use with commercial use on the first storey.
CBRE Research executive director Li Hiaw Ho notes that transactions in June and July showed that prices for units at the neighbouring Icon ranged from $1,150 psf to $1,700 psf while those at The Clift ranged from $1,400 psf and $2,100 psf.
‘The subject site can be developed into 260-300 apartments and assuming that it will take up the commercial option for the first storey, we expect that the site could fetch a price of $180 million to $200 million or $655 per square foot per plot ratio (psf ppr) to $715 psf ppr,’ said Mr Li.
‘At this level, the residential units could be launched at around $1,300 psf to $1,400 psf,’ he added.
In May, the URA announced that it would temporarily disallow the conversion of office use in the Central Area, which includes the CBD, to other uses like residential apartments until Dec 31, 2009, to curb further depletion of the existing stock of office space.
The move put on hold the strategy to revitalise the CBD by encouraging owners to redevelop their old office buildings.
Mr Li notes that the core CBD area has traditionally been a place for business and as such, human activities tend to be confined to business hours on weekdays.
But revitalisation of the CBD could continue regardless of the temporary halt on office conversions.
Already being built are Icon, Lumiere, The Clift, and One Shenton.
‘With the live-in population of the core CBD areas increasing in the foreseeable future due to the influx of residential developments, more complementary uses of retail, food and beverage and entertainment might prove to be sustainable on weekends and after hours,’ he added.
Source : Business Times - 05 Sep 2007
Previously on the Reserve List, the site - Enggor Street (Land Parcel A) - is now almost certainly assured of a faster sale as it no longer requires a committed minimum bid before being put up for public tender.
The site has an area of about 0.30 ha and can generate a maximum permissible gross floor area of about 25,504 sq m (274,522.5 sq ft), and is zoned for residential use with commercial use on the first storey.
CBRE Research executive director Li Hiaw Ho notes that transactions in June and July showed that prices for units at the neighbouring Icon ranged from $1,150 psf to $1,700 psf while those at The Clift ranged from $1,400 psf and $2,100 psf.
‘The subject site can be developed into 260-300 apartments and assuming that it will take up the commercial option for the first storey, we expect that the site could fetch a price of $180 million to $200 million or $655 per square foot per plot ratio (psf ppr) to $715 psf ppr,’ said Mr Li.
‘At this level, the residential units could be launched at around $1,300 psf to $1,400 psf,’ he added.
In May, the URA announced that it would temporarily disallow the conversion of office use in the Central Area, which includes the CBD, to other uses like residential apartments until Dec 31, 2009, to curb further depletion of the existing stock of office space.
The move put on hold the strategy to revitalise the CBD by encouraging owners to redevelop their old office buildings.
Mr Li notes that the core CBD area has traditionally been a place for business and as such, human activities tend to be confined to business hours on weekdays.
But revitalisation of the CBD could continue regardless of the temporary halt on office conversions.
Already being built are Icon, Lumiere, The Clift, and One Shenton.
‘With the live-in population of the core CBD areas increasing in the foreseeable future due to the influx of residential developments, more complementary uses of retail, food and beverage and entertainment might prove to be sustainable on weekends and after hours,’ he added.
Source : Business Times - 05 Sep 2007
THE rejuvenation of Tanjong Pagar, right on the doorstep of the Central Business District (CBD),
THE rejuvenation of Tanjong Pagar, right on the doorstep of the Central Business District (CBD), is gathering steam, with a new residential site launched for sale yesterday.
It could feature one of only a few new condominiums to be built downtown for the next two to three years, property watchers say.
The 0.3ha land parcel in Enggor Street, behind Far East Organization’s Icon condominium, is earmarked for a residential development with shops on the first floor.
Right next door is another residential plot, of 0.28ha, which will be put up for tender later this month.
The release of these two sites comes after four other plots in the vicinity were sold over the past few months.
These are two office sites along Anson Road - on either side of Gopeng Street - and two hotel sites between Tanjong Pagar Road and Tras Street, near Amara Hotel.
A seventh plot, at Bernam Street opposite Fuji Xerox Tower, will be made available in December.
Together, these upcoming developments will inject more life and add more definition to Tanjong Pagar. The site released yesterday can host a 50-storey condominium. Similarly, 50-storey buildings can be built on the office plots.
Of the two hotel sites, one can be built up to 30 storeys while the other can accommodate a building of up to 20 storeys.
With the release of the new residential sites in Enggor Street, more inner-city dwellers will also be drawn into the neighbourhood, said property consultants.
Currently, the only two residential projects in the immediate area are Icon and Lumiere, which sits on the former HMC Building in Parsi Road.
Developers and investors keen on the city-living concept may be particularly interested in the two new sites, because the Government recently stopped allowing the conversion of office buildings to homes in the CBD.
This means that the two residential plots in Enggor Street are part of the few possibilities for a condominium downtown until at least end-2009.
Other options are the ‘white’ sites in the Marina area, which can host some homes.This policy may be what the Government is banking on to offload the Enggor Street sites, which have been sitting on its reserve list for land sales for at least four years with no takers.
The two were offered as a single parcel until late last year, when they were divided to make them more attractive. In June, the two sites were transferred to the confirmed list to be put up for sale at a fixed date regardless of bidder interest.
The site put up for public tender yesterday has a 99-year lease and can be built up to 274,523 sq ft of gross floor area. A condominium with about 255 units can be built on the plot.
A development on the parcel ‘will be attractive to urbanites working in the CBD’, said Mr Li Hiaw Ho, executive director at property consultancy CB Richard Ellis.
‘Investors are likely to benefit from the pool of expatriates looking to rent homes in the CBD,’ he added.
He expects the site to fetch $180 million to $200 million, or $655 to $715 per sq ft (psf) per plot ratio.
Based on this, the finished units could be launched for sale at $1,300 to $1,400 psf, he said.
Recent transactions at the Icon have ranged from $1,250 to $1,928 psf. The last recorded sale of a Lumiere unit was in May, for $1,602 psf.
Source : Straits Times - 05 Sep 2007
It could feature one of only a few new condominiums to be built downtown for the next two to three years, property watchers say.
The 0.3ha land parcel in Enggor Street, behind Far East Organization’s Icon condominium, is earmarked for a residential development with shops on the first floor.
Right next door is another residential plot, of 0.28ha, which will be put up for tender later this month.
The release of these two sites comes after four other plots in the vicinity were sold over the past few months.
These are two office sites along Anson Road - on either side of Gopeng Street - and two hotel sites between Tanjong Pagar Road and Tras Street, near Amara Hotel.
A seventh plot, at Bernam Street opposite Fuji Xerox Tower, will be made available in December.
Together, these upcoming developments will inject more life and add more definition to Tanjong Pagar. The site released yesterday can host a 50-storey condominium. Similarly, 50-storey buildings can be built on the office plots.
Of the two hotel sites, one can be built up to 30 storeys while the other can accommodate a building of up to 20 storeys.
With the release of the new residential sites in Enggor Street, more inner-city dwellers will also be drawn into the neighbourhood, said property consultants.
Currently, the only two residential projects in the immediate area are Icon and Lumiere, which sits on the former HMC Building in Parsi Road.
Developers and investors keen on the city-living concept may be particularly interested in the two new sites, because the Government recently stopped allowing the conversion of office buildings to homes in the CBD.
This means that the two residential plots in Enggor Street are part of the few possibilities for a condominium downtown until at least end-2009.
Other options are the ‘white’ sites in the Marina area, which can host some homes.This policy may be what the Government is banking on to offload the Enggor Street sites, which have been sitting on its reserve list for land sales for at least four years with no takers.
The two were offered as a single parcel until late last year, when they were divided to make them more attractive. In June, the two sites were transferred to the confirmed list to be put up for sale at a fixed date regardless of bidder interest.
The site put up for public tender yesterday has a 99-year lease and can be built up to 274,523 sq ft of gross floor area. A condominium with about 255 units can be built on the plot.
A development on the parcel ‘will be attractive to urbanites working in the CBD’, said Mr Li Hiaw Ho, executive director at property consultancy CB Richard Ellis.
‘Investors are likely to benefit from the pool of expatriates looking to rent homes in the CBD,’ he added.
He expects the site to fetch $180 million to $200 million, or $655 to $715 per sq ft (psf) per plot ratio.
Based on this, the finished units could be launched for sale at $1,300 to $1,400 psf, he said.
Recent transactions at the Icon have ranged from $1,250 to $1,928 psf. The last recorded sale of a Lumiere unit was in May, for $1,602 psf.
Source : Straits Times - 05 Sep 2007
Their homegrown firm, Woha Architects, received the prestigious Aga Khan Award for Architecture yesterday in Kuala Lumpur for its residential project
ARCHITECTS Wong Mun Summ and Richard Hassell have reason to shout Woha.
Their homegrown firm, Woha Architects, received the prestigious Aga Khan Award for Architecture yesterday in Kuala Lumpur for its residential project 1 Moulmein Rise.
This is the first winning project from Singapore.
The award was established by the Aga Khan, spiritual leader of the Shia Imami Ismaili Muslims, in 1977.
Attention is given to buildings that use local resources and technology in an innovative way and to projects likely to inspire similar efforts elsewhere.
The 28-storey 1 Moulmein Rise for property firm UOL Development, which was completed in 2003, boasts solutions to deal with high-rise living in the tropics.
One example is the use of monsoon windows, which are special horizontal windows in each apartment to let in the breeze but keep out the rain.
Other tropic-friendly features include designing the condominium to have a north-south facing (to avoid direct sunlight) and overhangs to provide shade.
Of the win, which is 13-year-old Woha’s top international award to date, Mr Wong said it is meaningful because ‘it looks at what the building does for the end-user, rather than just on how the building looks’.
UOL chief operating officer Liam Wee Sin said the award is international recognition for the company’s commitment to design excellence in the homes it builds.
The award has a triennial prize fund of US$500,000 (S$760,000), making it the largest architectural prize.
The prize money is split among the nine winners this year.
This is not the first time a homegrown company has won such recognition though.
In 2001, Singapore-based architect Kerry Hill won the award for designing The Datai resort in Langkawi.
The awards are handed out every three years. This year, 343 projects were presented for consideration and 27 were reviewed on site by international experts.
The award is governed by a steering committee chaired by the Aga Khan. Members include German architect Omar Akbar, Swiss architect Jacques Herzog and American art historian Glenn Lowry.
The steering committee selects the master jury for each award cycle.This year’s nine winners include the Royal Netherlands Embassy in Ethiopia, a school in Rudrapur, Bangladesh and the University of Technology Petronas in Malaysia.
The award ceremonies have been held in settings selected for their architectural and cultural importance to the Muslim world, such as Istanbul’s Topkapi Place in 1983 and the Alhambra in Granada, Spain in 1998.
This year’s ceremony was held in Kuala Lumpur’s Petronas Twin Towers, a 2004 award-winner.
The awards were handed out by Malaysian Prime Minister Abdullah Badawi and the Aga Khan.
Of Woha’s winning design, Ms Brigitte Shim, an architecture professor from the University of Toronto and a master jury member, said: ‘Woha’s way of handling the residential units and the site is sophisticated and elegant.’
Asked how they will celebrate, Mr Wong said: ‘By working harder.’
Mr Hassell said they do not know exactly how much of the prize money they will get but it will be used to fund research or set up a research grant.
Source : Straits Times - 05 Sep 2007
Their homegrown firm, Woha Architects, received the prestigious Aga Khan Award for Architecture yesterday in Kuala Lumpur for its residential project 1 Moulmein Rise.
This is the first winning project from Singapore.
The award was established by the Aga Khan, spiritual leader of the Shia Imami Ismaili Muslims, in 1977.
Attention is given to buildings that use local resources and technology in an innovative way and to projects likely to inspire similar efforts elsewhere.
The 28-storey 1 Moulmein Rise for property firm UOL Development, which was completed in 2003, boasts solutions to deal with high-rise living in the tropics.
One example is the use of monsoon windows, which are special horizontal windows in each apartment to let in the breeze but keep out the rain.
Other tropic-friendly features include designing the condominium to have a north-south facing (to avoid direct sunlight) and overhangs to provide shade.
Of the win, which is 13-year-old Woha’s top international award to date, Mr Wong said it is meaningful because ‘it looks at what the building does for the end-user, rather than just on how the building looks’.
UOL chief operating officer Liam Wee Sin said the award is international recognition for the company’s commitment to design excellence in the homes it builds.
The award has a triennial prize fund of US$500,000 (S$760,000), making it the largest architectural prize.
The prize money is split among the nine winners this year.
This is not the first time a homegrown company has won such recognition though.
In 2001, Singapore-based architect Kerry Hill won the award for designing The Datai resort in Langkawi.
The awards are handed out every three years. This year, 343 projects were presented for consideration and 27 were reviewed on site by international experts.
The award is governed by a steering committee chaired by the Aga Khan. Members include German architect Omar Akbar, Swiss architect Jacques Herzog and American art historian Glenn Lowry.
The steering committee selects the master jury for each award cycle.This year’s nine winners include the Royal Netherlands Embassy in Ethiopia, a school in Rudrapur, Bangladesh and the University of Technology Petronas in Malaysia.
The award ceremonies have been held in settings selected for their architectural and cultural importance to the Muslim world, such as Istanbul’s Topkapi Place in 1983 and the Alhambra in Granada, Spain in 1998.
This year’s ceremony was held in Kuala Lumpur’s Petronas Twin Towers, a 2004 award-winner.
The awards were handed out by Malaysian Prime Minister Abdullah Badawi and the Aga Khan.
Of Woha’s winning design, Ms Brigitte Shim, an architecture professor from the University of Toronto and a master jury member, said: ‘Woha’s way of handling the residential units and the site is sophisticated and elegant.’
Asked how they will celebrate, Mr Wong said: ‘By working harder.’
Mr Hassell said they do not know exactly how much of the prize money they will get but it will be used to fund research or set up a research grant.
Source : Straits Times - 05 Sep 2007
PROPERTY stocks fell yesterday after Friday’s news that the government will increase development charge (DC) charges as much as 112 per cent.
PROPERTY stocks fell yesterday after Friday’s news that the government will increase development charge (DC) charges as much as 112 per cent.
Analysts said the revised DC rates will push up costs and also discourage developers from paying ever-increasing prices for collective sale sites.
The Singapore Property Equities Index - a weighted index of all stocks in the Singapore Exchange’s property sector - lost 9.2 points or 0.6 per cent to end at 1,447.6 points yesterday.
The fall was led by Singapore Land which slid 40 cents or 4.0 per cent to close at $9.50.
Guocoland fell 14 cents or 2.9 per cent to end at $4.62 and City Developments lost 10 cents or 0.7 per cent to close at $14.80.
Other property stocks that slipped include Allgreen Properties, Ascott Group, Wing Tai, Wheelock Properties, MCL Land, UOL Group, Ho Bee and SC Global.
The government announced what is possibly the sharpest hike in DC rates, payable for enhancing the use of some sites or building bigger projects on them.
On average, the DC rate for non-landed residential use was raised 58 per cent.
While the move is not expected to derail the rise in housing prices, analysts reckon it will affect developers because the overall cost of redeveloping sites will go up.
‘We estimate the revised DC rates could increase average redevelopment costs by 3-4 per cent from July 2007 levels,’ said CIMB analyst Donald Chua.
This in turn means that developers will be less willing to fork out record dollars for sites.
‘For future en bloc purchases the sentiment is likely to be negative as break-even cost is likely to be higher,’ said OCBC Investment Research analyst Winston Liew. ‘We do not anticipate any more benchmark prices to be reached.’
CIMB’s Mr Chua said developers will be more selective with land-banking, especially in the prime districts, where surging property prices could cause even greater cost pressure. As a substitute, government land sale sites could now attract more interest, he said.
Phillip Securities Research said the DC hikes could affect home prices. It expects they will continue to increase, but at a slower pace from now on compared with the first half of 2007.
‘First, the rises in DC rates are likely to slow en bloc sales and reduce the demand for replacement homes,’ the firm said in a research note. ‘Second, both local and foreign investors are likely to be more cautious when they select homes after the recent steep price increases.’
Also, the credit tightening in US and the economic slowdown there will affect sentiment among buyers here, who may have lost money in global equity and bond markets, Phillip added.
Analysts said the revised DC rates will push up costs and also discourage developers from paying ever-increasing prices for collective sale sites.
The Singapore Property Equities Index - a weighted index of all stocks in the Singapore Exchange’s property sector - lost 9.2 points or 0.6 per cent to end at 1,447.6 points yesterday.
The fall was led by Singapore Land which slid 40 cents or 4.0 per cent to close at $9.50.
Guocoland fell 14 cents or 2.9 per cent to end at $4.62 and City Developments lost 10 cents or 0.7 per cent to close at $14.80.
Other property stocks that slipped include Allgreen Properties, Ascott Group, Wing Tai, Wheelock Properties, MCL Land, UOL Group, Ho Bee and SC Global.
The government announced what is possibly the sharpest hike in DC rates, payable for enhancing the use of some sites or building bigger projects on them.
On average, the DC rate for non-landed residential use was raised 58 per cent.
While the move is not expected to derail the rise in housing prices, analysts reckon it will affect developers because the overall cost of redeveloping sites will go up.
‘We estimate the revised DC rates could increase average redevelopment costs by 3-4 per cent from July 2007 levels,’ said CIMB analyst Donald Chua.
This in turn means that developers will be less willing to fork out record dollars for sites.
‘For future en bloc purchases the sentiment is likely to be negative as break-even cost is likely to be higher,’ said OCBC Investment Research analyst Winston Liew. ‘We do not anticipate any more benchmark prices to be reached.’
CIMB’s Mr Chua said developers will be more selective with land-banking, especially in the prime districts, where surging property prices could cause even greater cost pressure. As a substitute, government land sale sites could now attract more interest, he said.
Phillip Securities Research said the DC hikes could affect home prices. It expects they will continue to increase, but at a slower pace from now on compared with the first half of 2007.
‘First, the rises in DC rates are likely to slow en bloc sales and reduce the demand for replacement homes,’ the firm said in a research note. ‘Second, both local and foreign investors are likely to be more cautious when they select homes after the recent steep price increases.’
Also, the credit tightening in US and the economic slowdown there will affect sentiment among buyers here, who may have lost money in global equity and bond markets, Phillip added.
MAPLETREE Industrial Fund Ltd is acquiring a factory building in Tech Park Crescent for $12.48 million
MAPLETREE Industrial Fund Ltd is acquiring a factory building in Tech Park Crescent for $12.48 million, and has also bought a light industrial building at 19 Tai Seng Drive for $12.5 million.
In a statement, the company said it has signed a sale-and-leaseback agreement with Centillion Environment and Recycling for the three-storey Teck Park property.
The factory has a gross floor area of about 9,800 square metres and is located within the Tuas Industrial Estate, which houses a wide range of industries from bio-medical to food, manufacturing and warehousing industries.
Separately, the fund also bought a six-storey light industrial building, with a gross floor area of about 8,600 square metres.
Located in Tai Seng Industrial Estate, the building currently serves various functions such as a telephone exchange, mobile telephone switching centre and international gateway network management centre. StarHub is taking out a long lease on the property, the statement added.
Both properties will be managed by Mapletree Industrial Fund Management (MIFM) - a wholly owned subsidiary of Mapletree Investments.
Phua Kok Kim, CEO of MIFM, believes that these acquisitions will enhance the fund’s portfolio value given their choice locations and the ’strong demand for industrial space on the back of the continued firm growth of the manufacturing sector’.
Source : Business Times - 04 Sep 2007
In a statement, the company said it has signed a sale-and-leaseback agreement with Centillion Environment and Recycling for the three-storey Teck Park property.
The factory has a gross floor area of about 9,800 square metres and is located within the Tuas Industrial Estate, which houses a wide range of industries from bio-medical to food, manufacturing and warehousing industries.
Separately, the fund also bought a six-storey light industrial building, with a gross floor area of about 8,600 square metres.
Located in Tai Seng Industrial Estate, the building currently serves various functions such as a telephone exchange, mobile telephone switching centre and international gateway network management centre. StarHub is taking out a long lease on the property, the statement added.
Both properties will be managed by Mapletree Industrial Fund Management (MIFM) - a wholly owned subsidiary of Mapletree Investments.
Phua Kok Kim, CEO of MIFM, believes that these acquisitions will enhance the fund’s portfolio value given their choice locations and the ’strong demand for industrial space on the back of the continued firm growth of the manufacturing sector’.
Source : Business Times - 04 Sep 2007
APOLLO Centre, a commercial building in Havelock Road, is for sale for more than $200 million, the property firm marketing it said yesterday.
APOLLO Centre, a commercial building in Havelock Road, is for sale for more than $200 million, the property firm marketing it said yesterday.
The 99-year leasehold property is being sold by Singapore-listed Apollo Enterprises.
And since the sale was announced, there have been many enquiries from potential investors, said marketing agent Knight Frank.
‘Given the lack of similar investment buildings in the market and the many interests expressed, a transaction price in excess of $200 million is not unexpected,’ it said.
At $200 million, the price would work out to $1,345 per square foot (psf) of net lettable area.
By comparison, almost a whole floor of nearby Chinatown Point was sold recently for about $1,250 psf of net lettable area.
The Apollo Centre, a seven-storey office and retail building, has a land area of about 54,600 sq ft, and a gross floor area of around 217,500 sq ft. At present, the net lettable area is 148,700 sq ft.
There are shops in the basement and on the first and second storeys and offices on the upper floors.
Because of the limited supply of office space in the central business district, Apollo Enterprises has obtained in-principle approval to change the use of the building’s second storey from retail to office.
If the whole floor is converted to office space and targeted at a single occupier, the lettable floor area could increase by about 11,000 sq ft, Knight Frank said.
It said rents in the area range from $7.50-$8.00 psf per month (psf pm) for office space and $8.00-$8.50 psf pm for retail space.
The tender for the Apollo Centre is open until 3pm on Oct 16.
Source : Business Times - 04 Sep 2007
The 99-year leasehold property is being sold by Singapore-listed Apollo Enterprises.
And since the sale was announced, there have been many enquiries from potential investors, said marketing agent Knight Frank.
‘Given the lack of similar investment buildings in the market and the many interests expressed, a transaction price in excess of $200 million is not unexpected,’ it said.
At $200 million, the price would work out to $1,345 per square foot (psf) of net lettable area.
By comparison, almost a whole floor of nearby Chinatown Point was sold recently for about $1,250 psf of net lettable area.
The Apollo Centre, a seven-storey office and retail building, has a land area of about 54,600 sq ft, and a gross floor area of around 217,500 sq ft. At present, the net lettable area is 148,700 sq ft.
There are shops in the basement and on the first and second storeys and offices on the upper floors.
Because of the limited supply of office space in the central business district, Apollo Enterprises has obtained in-principle approval to change the use of the building’s second storey from retail to office.
If the whole floor is converted to office space and targeted at a single occupier, the lettable floor area could increase by about 11,000 sq ft, Knight Frank said.
It said rents in the area range from $7.50-$8.00 psf per month (psf pm) for office space and $8.00-$8.50 psf pm for retail space.
The tender for the Apollo Centre is open until 3pm on Oct 16.
Source : Business Times - 04 Sep 2007
HAYDEN Properties has clinched the rights to build the first Ritz-Carlton Residences in Asia, after pursuing the luxury brand for months.
HAYDEN Properties has clinched the rights to build the first Ritz-Carlton Residences in Asia, after pursuing the luxury brand for months.
Hayden director Ong Chih Ching said that negotiations between the two parties stretched over nine months, with over 600 e-mails sent.
Speaking at a press conference to announce the partnership yesterday, she added in good humour that the negotiations had been ‘hard work’.
There are currently 16 Ritz-Carlton Residences in the world and Ms Ong said that to be branded one, stringent requirements have to be met, including limiting the number of units an individual can buy.
Prices for the 58-unit development in Cairnhill have not been fixed yet but Ms Ong said it will be priced ‘at the top end of the market’.
Ritz-Carlton’s regional vice-president (sales and marketing) Asia-Pacific, Simon Manning, said that unlike some other branded residences here, the Hayden development will be completely managed by Ritz-Carlton.
This will involve training and managing the staff who will provide housekeeping, 24-hour concierge, sommeliers and doormen services. It will not, however, have an equity stake in the development.
A relatively new player in the real estate industry here, boutique developer Hayden has already scored a couple of firsts in the market.
Not only has it secured the Ritz-Carlton brand for its Cairnhill property (formerly Horizon View), it earlier announced that it would be the first to provide living room-carparking for its 56-unit Scotts Road condo development, formerly the Hotel Asia.
Launch dates for both developments have not been fixed.
Hayden is a 50/50 joint venture between Singapore-based KOP Capital and Emirates Investment Group-linked Emirates Tarian Capital (ETC).
Hayden director Kunalan Sivapuniam, who is also managing director at ETC, said it was looking for more development opportunities in the region.
Middle-East investors have been increasingly making their presence felt in Singapore recently and Mr Sivapuniam puts this down to a need to ‘diversify’.
He also said there is a lot of liquidity in the Middle-East and exposure to the US sub-prime market and the credit crisis is minimal.
‘Post 11 September 2001 (9/11), a lot of Middle-East investments were made away from the US,’ he explained.
Emirates Investment Group’s real estate portfolio is worth over US$500 million and includes Palazzo Versace Gold Coast in Australia.
Source : Business Times - 04 Sep 2007
Hayden director Ong Chih Ching said that negotiations between the two parties stretched over nine months, with over 600 e-mails sent.
Speaking at a press conference to announce the partnership yesterday, she added in good humour that the negotiations had been ‘hard work’.
There are currently 16 Ritz-Carlton Residences in the world and Ms Ong said that to be branded one, stringent requirements have to be met, including limiting the number of units an individual can buy.
Prices for the 58-unit development in Cairnhill have not been fixed yet but Ms Ong said it will be priced ‘at the top end of the market’.
Ritz-Carlton’s regional vice-president (sales and marketing) Asia-Pacific, Simon Manning, said that unlike some other branded residences here, the Hayden development will be completely managed by Ritz-Carlton.
This will involve training and managing the staff who will provide housekeeping, 24-hour concierge, sommeliers and doormen services. It will not, however, have an equity stake in the development.
A relatively new player in the real estate industry here, boutique developer Hayden has already scored a couple of firsts in the market.
Not only has it secured the Ritz-Carlton brand for its Cairnhill property (formerly Horizon View), it earlier announced that it would be the first to provide living room-carparking for its 56-unit Scotts Road condo development, formerly the Hotel Asia.
Launch dates for both developments have not been fixed.
Hayden is a 50/50 joint venture between Singapore-based KOP Capital and Emirates Investment Group-linked Emirates Tarian Capital (ETC).
Hayden director Kunalan Sivapuniam, who is also managing director at ETC, said it was looking for more development opportunities in the region.
Middle-East investors have been increasingly making their presence felt in Singapore recently and Mr Sivapuniam puts this down to a need to ‘diversify’.
He also said there is a lot of liquidity in the Middle-East and exposure to the US sub-prime market and the credit crisis is minimal.
‘Post 11 September 2001 (9/11), a lot of Middle-East investments were made away from the US,’ he explained.
Emirates Investment Group’s real estate portfolio is worth over US$500 million and includes Palazzo Versace Gold Coast in Australia.
Source : Business Times - 04 Sep 2007
Ritz-Carlton’s luxury accommodation will soon be able to buy homes in Singapore that come stamped with the five-star hotel brand.
Well-heeled fans of the Ritz-Carlton’s luxury accommodation will soon be able to buy homes in Singapore that come stamped with the five-star hotel brand.
Asia’s first Ritz-Carlton Residences will be launched for sale in Singapore late next month, with 56 apartment units and two penthouses up for grabs.
The 36-storey tower will be built in Cairnhill Road on the former Horizon View site, and will be completed by early 2010.
Residents will enjoy a 24-hour concierge service, housekeeping and sommelier service. All the staff will be trained and managed by Ritz-Carlton.
While the apartment prices have not yet been finalised, Ritz-Carlton’s vice-president of international hotel development, Shawn Hill, said the hotel’s branded apartments usually fetch up to 50 per cent more than comparable non-branded homes.
“Typically, comparing against non-branded residential properties, we see a 20 to 50 per cent premium over the highest-end homes in each market,” he told The Straits Times.
There are currently 32 other Ritz-Carlton Residences around the world, including in New York, Boston, Hawaii and the Bahamas. Similar projects are in the pipeline in Europe and the Middle East, Hill said.
In Asia, Singapore was chosen for the residences’ debut over cities such as Kuala Lumpur and Tokyo, where Ritz-Carlton has service apartments.
“We chose Singapore because we consider it to be a pace-setter in the region, and it’s a highly sought-after city to live in,” explained Hill.
“Singapore, as a city, has some of its own branding and a very strong international appeal. It represents a high quality of living as well as stability.”
But the group is also looking at building more of such homes in other “gateway cities” in Asia, including Hong Kong, Shanghai, Tokyo, Ho Chi Minh City and Jakarta, Hill added.
The Singapore project is a partnership between Ritz-Carlton and Hayden Properties–a 50:50 joint venture between real estate firm KOP Capital and Emirates Investment Group unit Emirates Tarian Capital.
Hayden, which was set up last October, is also the developer behind the luxury project at 37 Scotts Road that boasts a garage in every apartment.
The Ritz-Carlton Residences in Singapore will offer units in three sizes. The three-bedroom units will be 2,800 sq ft while the four-bedders will be 3,100 sq ft and the penthouses will weigh in at more than 5,000 sq ft.
Each unit will have designer fittings and appliances. The property will also have a lap pool, library, wine cellar, and a kitchen and entertainment area managed by the Ritz-Carlton.
Monthly maintenance fees for the apartments may add up to between S$2,000 (US$1,314) and S$3,000 ($1,971), said Ong Chih Ching, Hayden’s founder and lead director.
She said the trend of hotel-branded residences is set to grow in Asia, as homebuyers become more affluent.
“Apart from the luxurious hardware that you will see in buildings, the other thing that buyers will look for is service. A lot of the hotel chains have good reputations for their service.”
Other hotel-branded residences in Singapore include Four Seasons Park and St Regis Residences.
Ku Swee Yong, director of marketing and business development at Savills Singapore, agreed that more co-branded apartments will emerge, and not just involving hotels.
“The co-branding trend includes architects, designers, fashion labels such as Armani and Versace, and these will put Singapore on the world map.”
He expects foreigners to make up most of the buyers of the Ritz-Carlton apartments. These could “definitely fetch a minimum” of S$4,000 ($2,628) per sq ft, which is at least 20 per cent more than current prices in Cairnhill, he said.
Highlights of Ritz-Carlton Residences:
- Ritz-Carlton Residences in Singapore will offer 56 apartment units and two penthouses.
- The 36-storey tower in Cairnhill will be completed by early 2010.
- Residents will enjoy a 24-hour concierge service, housekeeping and sommelier service.
- Similar projects are in the pipeline in Europe and the Middle East.
- The group is also eyeing other ‘gateway cities’ in Asia such as Hong Kong, Shanghai, Tokyo, Ho Chi Minh City and Jakarta.
Source : Straits Times - 4 Sept 2007
Asia’s first Ritz-Carlton Residences will be launched for sale in Singapore late next month, with 56 apartment units and two penthouses up for grabs.
The 36-storey tower will be built in Cairnhill Road on the former Horizon View site, and will be completed by early 2010.
Residents will enjoy a 24-hour concierge service, housekeeping and sommelier service. All the staff will be trained and managed by Ritz-Carlton.
While the apartment prices have not yet been finalised, Ritz-Carlton’s vice-president of international hotel development, Shawn Hill, said the hotel’s branded apartments usually fetch up to 50 per cent more than comparable non-branded homes.
“Typically, comparing against non-branded residential properties, we see a 20 to 50 per cent premium over the highest-end homes in each market,” he told The Straits Times.
There are currently 32 other Ritz-Carlton Residences around the world, including in New York, Boston, Hawaii and the Bahamas. Similar projects are in the pipeline in Europe and the Middle East, Hill said.
In Asia, Singapore was chosen for the residences’ debut over cities such as Kuala Lumpur and Tokyo, where Ritz-Carlton has service apartments.
“We chose Singapore because we consider it to be a pace-setter in the region, and it’s a highly sought-after city to live in,” explained Hill.
“Singapore, as a city, has some of its own branding and a very strong international appeal. It represents a high quality of living as well as stability.”
But the group is also looking at building more of such homes in other “gateway cities” in Asia, including Hong Kong, Shanghai, Tokyo, Ho Chi Minh City and Jakarta, Hill added.
The Singapore project is a partnership between Ritz-Carlton and Hayden Properties–a 50:50 joint venture between real estate firm KOP Capital and Emirates Investment Group unit Emirates Tarian Capital.
Hayden, which was set up last October, is also the developer behind the luxury project at 37 Scotts Road that boasts a garage in every apartment.
The Ritz-Carlton Residences in Singapore will offer units in three sizes. The three-bedroom units will be 2,800 sq ft while the four-bedders will be 3,100 sq ft and the penthouses will weigh in at more than 5,000 sq ft.
Each unit will have designer fittings and appliances. The property will also have a lap pool, library, wine cellar, and a kitchen and entertainment area managed by the Ritz-Carlton.
Monthly maintenance fees for the apartments may add up to between S$2,000 (US$1,314) and S$3,000 ($1,971), said Ong Chih Ching, Hayden’s founder and lead director.
She said the trend of hotel-branded residences is set to grow in Asia, as homebuyers become more affluent.
“Apart from the luxurious hardware that you will see in buildings, the other thing that buyers will look for is service. A lot of the hotel chains have good reputations for their service.”
Other hotel-branded residences in Singapore include Four Seasons Park and St Regis Residences.
Ku Swee Yong, director of marketing and business development at Savills Singapore, agreed that more co-branded apartments will emerge, and not just involving hotels.
“The co-branding trend includes architects, designers, fashion labels such as Armani and Versace, and these will put Singapore on the world map.”
He expects foreigners to make up most of the buyers of the Ritz-Carlton apartments. These could “definitely fetch a minimum” of S$4,000 ($2,628) per sq ft, which is at least 20 per cent more than current prices in Cairnhill, he said.
Highlights of Ritz-Carlton Residences:
- Ritz-Carlton Residences in Singapore will offer 56 apartment units and two penthouses.
- The 36-storey tower in Cairnhill will be completed by early 2010.
- Residents will enjoy a 24-hour concierge service, housekeeping and sommelier service.
- Similar projects are in the pipeline in Europe and the Middle East.
- The group is also eyeing other ‘gateway cities’ in Asia such as Hong Kong, Shanghai, Tokyo, Ho Chi Minh City and Jakarta.
Source : Straits Times - 4 Sept 2007
Malaysian maximalism
Malaysian maximalism
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The living room resembles a reception hall in an “istana”. Note the golden trimmings and furnishings
By Johnni Wong
Photographs by Kamal Sellehuddin
Section 11 in Shah Alam is not your ordinary housing enclave and the owners of the luxury homes here represent some of the more elite members of society.
In fact, many of the owners – some of whom are retired politicians, senior government servants and entrepreneurs - have illustrious titles to their names.
One particular owner – who declined to be named - decided that his double-storey detached house needed something extra.
The prayer room is furnished with equally ornate decorative elements
With the help of three friends, the Datuk turned his house into an art gallery named Astana Warisan.
Here, elite collectors could gather to admire and perhaps acquire collectibles such as Victorian glassware, Malay silverware, Nyonyaware and memorabilia of Malaya.
The architecture of the corner house is contemporary vernacular style typical of the 1980s and early 1990s.
The land area is 2,880sq m (32,000sq ft) and the built-up space is about 900sq m (10,000sq ft).
The front doors open up to a covered terrace with a landscaped garden in front while the back of the house has a car porch with several luxury automobiles parked there.
An European style Chinese clock sits on top of a blackwood table inlaid with mother-of-pearl and Chinese marble in the Melaka Lounge. Note the cabinet of Nyonyaware porcelain
An ornate European style marble-top table matched with an equally grand chandelier greet the visitor, as one steps inside.
To the left of the entrance is the living room, decorated in the style of Malay palaces.
The room overwhelms with rich trimmings and furnishings fit for royalty. Not quite Versailles but the influence of the Louis XVI style is quite evident.
Vintage clocks and ornaments are placed around the living room.
An elaborately decorated cabinet showcases an assortment of vintage crystals, glassware and Victorian epergnes.
Next to the dining room is a prayer room intended for Muslim guests to fulfil their religious duties.
It is decorated with a diverse collection of Malay brassware, porcelain and silverware that reflect the Islamic influence.
The kitchen has been transformed into an interior that resembles an old warship.
Kebaya Room: Looks like it is the trend these days to collect the traditional sarong kebaya apparel
Displayed here is a remarkable collection of military collectibles including WWI and WWII helmets, weapons and even a complete set of Spanish armour.
Maritime artifacts such as clocks, compasses, sextons, telescopes and other items used by early sailors are kept here.
Melaka Lounge
Going upstairs, guests will notice the unusual staircase, built from wood salvaged from an old Malaccan house.
The Oriental Room looks as if it has been set for a period movie
Even the banisters were sourced from an old Malay palace.
The Melaka Lounge on the first floor has been decorated to reflect the Baba Nyonya taste of old Malacca.
Ornate blackwood furniture with mother-of-pearl inlay are displayed.
An antique cabinet is crammed with Nyonyaware porcelain.
The lounge is the common space that leads to the four bedrooms which have been given specific names to reflect the artifacts kept there.
The Penang Room is also known as the Kebaya Room.
The Colonial Room is decorated with teak furniture including a king-size bed, Art Deco cabinets, tables and chairs as well as a gramophone
Hundreds of kebaya apparel collected from Penang and Malacca are kept here together with vintage jewellery, batik and traditional Malay textiles.
The Colonial Room is decorated with mainly teak furniture including an elaborate bed, cabinets, tables and chairs.
These were typically used during the Colonial era by British planters, tin miners and administrative officers.
In the Oriental Room, the showpiece is a Chinese wedding bed complete with accessories.
The French Room is dominated by the elaborately decorated bed
Chinese furniture, ceramics and silverware are placed all around the room.
The French Room used to be the master bedroom.
It is decorated in the French Colonial style with furniture of European design made from Asian wood.
The heavy-set furniture includes a carved blackwood bed which purportedly costs more than RM100,000.
The Conference Room is actually part of an annexe and it houses artifacts and old photographs tracing the history of Malaysia.
Items are mainly from the era of the Federated Malay States, Malay Sultanates, the Straits Settlements and Malaya until 1957.
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The living room resembles a reception hall in an “istana”. Note the golden trimmings and furnishings
By Johnni Wong
Photographs by Kamal Sellehuddin
Section 11 in Shah Alam is not your ordinary housing enclave and the owners of the luxury homes here represent some of the more elite members of society.
In fact, many of the owners – some of whom are retired politicians, senior government servants and entrepreneurs - have illustrious titles to their names.
One particular owner – who declined to be named - decided that his double-storey detached house needed something extra.
The prayer room is furnished with equally ornate decorative elements
With the help of three friends, the Datuk turned his house into an art gallery named Astana Warisan.
Here, elite collectors could gather to admire and perhaps acquire collectibles such as Victorian glassware, Malay silverware, Nyonyaware and memorabilia of Malaya.
The architecture of the corner house is contemporary vernacular style typical of the 1980s and early 1990s.
The land area is 2,880sq m (32,000sq ft) and the built-up space is about 900sq m (10,000sq ft).
The front doors open up to a covered terrace with a landscaped garden in front while the back of the house has a car porch with several luxury automobiles parked there.
An European style Chinese clock sits on top of a blackwood table inlaid with mother-of-pearl and Chinese marble in the Melaka Lounge. Note the cabinet of Nyonyaware porcelain
An ornate European style marble-top table matched with an equally grand chandelier greet the visitor, as one steps inside.
To the left of the entrance is the living room, decorated in the style of Malay palaces.
The room overwhelms with rich trimmings and furnishings fit for royalty. Not quite Versailles but the influence of the Louis XVI style is quite evident.
Vintage clocks and ornaments are placed around the living room.
An elaborately decorated cabinet showcases an assortment of vintage crystals, glassware and Victorian epergnes.
Next to the dining room is a prayer room intended for Muslim guests to fulfil their religious duties.
It is decorated with a diverse collection of Malay brassware, porcelain and silverware that reflect the Islamic influence.
The kitchen has been transformed into an interior that resembles an old warship.
Kebaya Room: Looks like it is the trend these days to collect the traditional sarong kebaya apparel
Displayed here is a remarkable collection of military collectibles including WWI and WWII helmets, weapons and even a complete set of Spanish armour.
Maritime artifacts such as clocks, compasses, sextons, telescopes and other items used by early sailors are kept here.
Melaka Lounge
Going upstairs, guests will notice the unusual staircase, built from wood salvaged from an old Malaccan house.
The Oriental Room looks as if it has been set for a period movie
Even the banisters were sourced from an old Malay palace.
The Melaka Lounge on the first floor has been decorated to reflect the Baba Nyonya taste of old Malacca.
Ornate blackwood furniture with mother-of-pearl inlay are displayed.
An antique cabinet is crammed with Nyonyaware porcelain.
The lounge is the common space that leads to the four bedrooms which have been given specific names to reflect the artifacts kept there.
The Penang Room is also known as the Kebaya Room.
The Colonial Room is decorated with teak furniture including a king-size bed, Art Deco cabinets, tables and chairs as well as a gramophone
Hundreds of kebaya apparel collected from Penang and Malacca are kept here together with vintage jewellery, batik and traditional Malay textiles.
The Colonial Room is decorated with mainly teak furniture including an elaborate bed, cabinets, tables and chairs.
These were typically used during the Colonial era by British planters, tin miners and administrative officers.
In the Oriental Room, the showpiece is a Chinese wedding bed complete with accessories.
The French Room is dominated by the elaborately decorated bed
Chinese furniture, ceramics and silverware are placed all around the room.
The French Room used to be the master bedroom.
It is decorated in the French Colonial style with furniture of European design made from Asian wood.
The heavy-set furniture includes a carved blackwood bed which purportedly costs more than RM100,000.
The Conference Room is actually part of an annexe and it houses artifacts and old photographs tracing the history of Malaysia.
Items are mainly from the era of the Federated Malay States, Malay Sultanates, the Straits Settlements and Malaya until 1957.
For wonderful showers
For wonderful showers
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IN VIEW of the increasing complexity in our modern world, designers are making things simple again. This holds true for one of the most important rooms in a house, the bathroom.
In order to cater to these contemporary design demands, the Hansgrohe brand expanded its Talis fixtures line, and is presenting the Croma 100 shower collection, the Raindance AIR 300 overhead Shower, the Raindance Rainfall and the new Pharo Showerpanel SkyLine.
Hansgrohe Talis S2 and Talis E2
Recently, the Talis S2 and Talis E2 designs received the 2007 iF Design Award. Stylish in design, the Talis S2 fits in with the stripped-down forms of present-day bathrooms.
"Modestly elegant" describes the new Talis E2 faucet set. The ergonomic solid lever handle integrates into the basic shape and is flattering to the overall design.
Hansgrohe Croma 100 Shower Collection
The Croma 100 Multi Hand Shower offers individually tailored showering fun with three different spray modes – from a soft rain to the powerful pulsating massage spray and the soothing mono spray.
Lime scale does not stand a chance of settling on the Croma 100 Hand Showers with the proven Rubit anti-lime scale function.
The range of products extends from flexible hand showers and permanently installed overhead showers to shower and thermostat sets, and the Croma 100 Showerpanel.
The timeless design of the Croma 100 hand shower was honoured with the 2006 Red Dot Design Award.
Shower Power – Raindance AIR 300
Wide-Pattern Overhead Shower
For sheer pleasure, not much can beat the new Raindance AIR 300 Overhead Shower.
A veritable downpour of soft raindrops gushes down from the 300mm spray disc. At the same time, the AIR technology allows the Raindance AIR 300 with its connection to consume almost as little water (approx. 22 liters/min.) as overhead showers with smaller spray discs.
Measuring 300mm in diameter, the new showerhead completes the Raindance product line. And, even though the all-metal wide-pattern overhead shower is large, it doesn't overpower. It has lean, ultra-flat straight contours with premium-quality surfaces and high-precision craftsmanship.
Hansgrohe Raindance Rainfall
There is no better place to experience the natural power and vitality of water than under a waterfall.
Getting this elemental, sensually invigorating feeling of bathing under tropical cascades of water in the bathroom was the inspiration behind the development of the Hansgrohe overhead shower Raindance Rainfall.
With the three spray modes of the Raindance Rainfall, taking a shower will be more interesting
With three different spray modes that can be conveniently adjusted directly on the corresponding wall fittings, the Raindance Rainfall simultaneously creates a completely new way to shower.
The four powerful rotating whirl-massage sprays, which automatically swivel forward when turned on, massaging the body over a broad area like a powerful downpour, are also impressive.
Raindance Rainfall is also available with a discreet ambience lighting fixture whose pleasantly warm light is reflected in the water, imparting additional atmosphere to the bathroom.
Pharo Showerpanel SkyLine
The high-end Pharo Showerpanel SkyLine flatjets shower system sets new standards thanks to its unique interplay of design and sophisticated technology
The unmistakable silhouette of the modern metropolis is immortalised in the powerful and purposeful lines of the new Pharo Showerpanel SkyLine.
Four different shower functions are hidden behind the surface of the SkyLine. A gentle touch on the panel reveals the system’s performers via the hinged push-open mechanism.
A large shower head folds out from above, and another hide-away shower at shoulder level allows showering pleasure without getting your hair wet.
At the same time, the three-jet massage spray mode of the shoulder spray offers massage relief to tense neck and shoulders.
For an ultimate showering pleasure, five extremely flat body sprays can be switched on to add more stimulating massage units.
Caring for your feet and legs is made easier thanks to a hide-away foot support in the lower section of the panel that can be folded out to comfortably rest your leg on.
Both shower head and shoulder sprays as well as the foot support can be closed up – appearing to vanish into the flat, easy-to-clean finish that is available in satin-chrome look, until its next use.
Hansgrohe is the premium brand for showers, bathroom and kitchen mixers as well as thermostat and drainage technology within the Hansgrohe Group.
Visit Bina Warehouse showrooms to view these products.
Digg this story Add to your del.icio.us account
IN VIEW of the increasing complexity in our modern world, designers are making things simple again. This holds true for one of the most important rooms in a house, the bathroom.
In order to cater to these contemporary design demands, the Hansgrohe brand expanded its Talis fixtures line, and is presenting the Croma 100 shower collection, the Raindance AIR 300 overhead Shower, the Raindance Rainfall and the new Pharo Showerpanel SkyLine.
Hansgrohe Talis S2 and Talis E2
Recently, the Talis S2 and Talis E2 designs received the 2007 iF Design Award. Stylish in design, the Talis S2 fits in with the stripped-down forms of present-day bathrooms.
"Modestly elegant" describes the new Talis E2 faucet set. The ergonomic solid lever handle integrates into the basic shape and is flattering to the overall design.
Hansgrohe Croma 100 Shower Collection
The Croma 100 Multi Hand Shower offers individually tailored showering fun with three different spray modes – from a soft rain to the powerful pulsating massage spray and the soothing mono spray.
Lime scale does not stand a chance of settling on the Croma 100 Hand Showers with the proven Rubit anti-lime scale function.
The range of products extends from flexible hand showers and permanently installed overhead showers to shower and thermostat sets, and the Croma 100 Showerpanel.
The timeless design of the Croma 100 hand shower was honoured with the 2006 Red Dot Design Award.
Shower Power – Raindance AIR 300
Wide-Pattern Overhead Shower
For sheer pleasure, not much can beat the new Raindance AIR 300 Overhead Shower.
A veritable downpour of soft raindrops gushes down from the 300mm spray disc. At the same time, the AIR technology allows the Raindance AIR 300 with its connection to consume almost as little water (approx. 22 liters/min.) as overhead showers with smaller spray discs.
Measuring 300mm in diameter, the new showerhead completes the Raindance product line. And, even though the all-metal wide-pattern overhead shower is large, it doesn't overpower. It has lean, ultra-flat straight contours with premium-quality surfaces and high-precision craftsmanship.
Hansgrohe Raindance Rainfall
There is no better place to experience the natural power and vitality of water than under a waterfall.
Getting this elemental, sensually invigorating feeling of bathing under tropical cascades of water in the bathroom was the inspiration behind the development of the Hansgrohe overhead shower Raindance Rainfall.
With the three spray modes of the Raindance Rainfall, taking a shower will be more interesting
With three different spray modes that can be conveniently adjusted directly on the corresponding wall fittings, the Raindance Rainfall simultaneously creates a completely new way to shower.
The four powerful rotating whirl-massage sprays, which automatically swivel forward when turned on, massaging the body over a broad area like a powerful downpour, are also impressive.
Raindance Rainfall is also available with a discreet ambience lighting fixture whose pleasantly warm light is reflected in the water, imparting additional atmosphere to the bathroom.
Pharo Showerpanel SkyLine
The high-end Pharo Showerpanel SkyLine flatjets shower system sets new standards thanks to its unique interplay of design and sophisticated technology
The unmistakable silhouette of the modern metropolis is immortalised in the powerful and purposeful lines of the new Pharo Showerpanel SkyLine.
Four different shower functions are hidden behind the surface of the SkyLine. A gentle touch on the panel reveals the system’s performers via the hinged push-open mechanism.
A large shower head folds out from above, and another hide-away shower at shoulder level allows showering pleasure without getting your hair wet.
At the same time, the three-jet massage spray mode of the shoulder spray offers massage relief to tense neck and shoulders.
For an ultimate showering pleasure, five extremely flat body sprays can be switched on to add more stimulating massage units.
Caring for your feet and legs is made easier thanks to a hide-away foot support in the lower section of the panel that can be folded out to comfortably rest your leg on.
Both shower head and shoulder sprays as well as the foot support can be closed up – appearing to vanish into the flat, easy-to-clean finish that is available in satin-chrome look, until its next use.
Hansgrohe is the premium brand for showers, bathroom and kitchen mixers as well as thermostat and drainage technology within the Hansgrohe Group.
Visit Bina Warehouse showrooms to view these products.
Know how to invest
Know how to invest
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Leong's seminar on "Property Mastery Programme – Road Map to Profitable Residential Investment" offer participants her wealth of knowledge on canny property investments.
When done correctly, property investment can yield huge returns. However, it is very important that investors first learn how to invest before spending their hard-earned cash.
A wrong investment can only go one way – badly.
In order to avoid wasting money, a property investor needs to understand the dynamics of property investment. There are few ways to acquire such knowledge: through guidebooks (but unless written by local experts, most of the information may not apply to the Malaysian property market) or friendly advice.
However, these are not enough to achieve success.
The vital skills and strategies in property investment can only be acquired through trial and error, which can be very expensive. Fortunately for Malaysian property investors, there is Renesial Leong (left), dubbed the Queen of Properties by a local English daily.
Leong has over 19 years’ experience in property investment and a proven track record. She wrote Malaysia’s first property investment guidebook and a national bestseller called Property Jewels. Her second book, Your Tenants, Your Jewels, a guide to tenant management, is a must-read for every landlord.
Real estate investment expert Leong, with her book "Property Jewels".
Leong believes in sharing her knowledge with anyone interested in property investment.
“Looking back at those 19 solid, long years and especially recalling how lost I was when I started off, I feel that there is so much I’d love to share with people who want to venture into property investing,” says Leong.
To that end, Leong has successfully conducted seminars locally as well as in Singapore and Hong Kong. The guru herself will conduct The Property Mastery Programme – Road Map to Profitable Residential Property Investment from Oct 26 to Oct 28 at Holiday Villa, Subang.
The main objective of the programme is to help people understand property investment inside out, the rewards and risks.
“I hope through the programme, I can help shorten investors’ learning curve by at least five years, while comprehensively guiding them to understand the formula for success,” she explains.
The programme is designed to help property investors map out a path to financial independence and ultimately, financial freedom.
“It is easy to get into properties but difficult and costly to get out. Wrong property investments can result in the loss of thousands of dollars and years of undoing the damage done. That is why this programme is designed to ensure participants get it right the first time and every time,” says Leong.
Many past participants have successfully bought properties with low to zero down payment and enjoy a positive monthly cash flow from rental returns.
“A common comment I have heard from participants is how they wish they had attended the programme a few years earlier,” adds Leong.
Participants of The Property Mastery Programme – Road Map to Profitable Residential Investment stand to gain indispensable knowledge on property investment and valuable insight on tenant and property management.
Properties provide an excellent long-term investment vehicle to fund education and retirement needs. In property investment, inflation works for the investor, whereas in other portfolio investments, inflation erodes returns. It has been proven that rental income is a steady and predictable passive income. With the current market climate where property prices are affordable and bank interest rates are low, there is no better time to start investing in property.
The Property Mastery Programme – Road Map to Profitable Residential Investment is being organised by Real Property Mastery Sdn Bhd, a joint venture between MasteryAsia (M) Sdn Bhd and Leong to provide the best in education and mentorship programmes in the area of property and real estate investment.
Digg this story Add to your del.icio.us account
Leong's seminar on "Property Mastery Programme – Road Map to Profitable Residential Investment" offer participants her wealth of knowledge on canny property investments.
When done correctly, property investment can yield huge returns. However, it is very important that investors first learn how to invest before spending their hard-earned cash.
A wrong investment can only go one way – badly.
In order to avoid wasting money, a property investor needs to understand the dynamics of property investment. There are few ways to acquire such knowledge: through guidebooks (but unless written by local experts, most of the information may not apply to the Malaysian property market) or friendly advice.
However, these are not enough to achieve success.
The vital skills and strategies in property investment can only be acquired through trial and error, which can be very expensive. Fortunately for Malaysian property investors, there is Renesial Leong (left), dubbed the Queen of Properties by a local English daily.
Leong has over 19 years’ experience in property investment and a proven track record. She wrote Malaysia’s first property investment guidebook and a national bestseller called Property Jewels. Her second book, Your Tenants, Your Jewels, a guide to tenant management, is a must-read for every landlord.
Real estate investment expert Leong, with her book "Property Jewels".
Leong believes in sharing her knowledge with anyone interested in property investment.
“Looking back at those 19 solid, long years and especially recalling how lost I was when I started off, I feel that there is so much I’d love to share with people who want to venture into property investing,” says Leong.
To that end, Leong has successfully conducted seminars locally as well as in Singapore and Hong Kong. The guru herself will conduct The Property Mastery Programme – Road Map to Profitable Residential Property Investment from Oct 26 to Oct 28 at Holiday Villa, Subang.
The main objective of the programme is to help people understand property investment inside out, the rewards and risks.
“I hope through the programme, I can help shorten investors’ learning curve by at least five years, while comprehensively guiding them to understand the formula for success,” she explains.
The programme is designed to help property investors map out a path to financial independence and ultimately, financial freedom.
“It is easy to get into properties but difficult and costly to get out. Wrong property investments can result in the loss of thousands of dollars and years of undoing the damage done. That is why this programme is designed to ensure participants get it right the first time and every time,” says Leong.
Many past participants have successfully bought properties with low to zero down payment and enjoy a positive monthly cash flow from rental returns.
“A common comment I have heard from participants is how they wish they had attended the programme a few years earlier,” adds Leong.
Participants of The Property Mastery Programme – Road Map to Profitable Residential Investment stand to gain indispensable knowledge on property investment and valuable insight on tenant and property management.
Properties provide an excellent long-term investment vehicle to fund education and retirement needs. In property investment, inflation works for the investor, whereas in other portfolio investments, inflation erodes returns. It has been proven that rental income is a steady and predictable passive income. With the current market climate where property prices are affordable and bank interest rates are low, there is no better time to start investing in property.
The Property Mastery Programme – Road Map to Profitable Residential Investment is being organised by Real Property Mastery Sdn Bhd, a joint venture between MasteryAsia (M) Sdn Bhd and Leong to provide the best in education and mentorship programmes in the area of property and real estate investment.
Mycom teams up with Merrill Lynch
Mycom teams up with Merrill Lynch
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They will jointly develop land in Kenny Heights
By YAP LENG KUEN
KUALA LUMPUR: Mycom Bhd is teaming up with Merrill Lynch Asia to jointly develop 16.2 acres, valued at RM450mil, in Mont’ Kiara, just two months after striking a deal with Westcity plc of London to develop another parcel of land in the same location.
This could be the first time that a US fund is involved in a joint development project in Kuala Lumpur and signals the confidence of foreigners in Malaysia's property market where prices have yet to peak.
Compared with an average S$4,000 per sq ft in Singapore, property in Kuala Lumpur is still fetching around RM1,500 to RM2,000 per sq ft in good locations around the KL City Centre (KLCC).
This positive response from foreigners is the result of steps by the Government following the exemption from real property gains tax.
Mycom’s development of the entire 88 acres under Kenny Heights is also seen as possibly “the last integrated development on the last choice site” in the suburban area of KL.
The joint venture with Merrill Lynch, on a 49:51 basis, is for the development of Parcels 1, 4 and 5 of Kenny Heights. The previous deal with Westcity was for a similar joint development of 10 acres in Parcel 3, valued at RM300mil.
“Kenny Heights is a very exciting project to us. It is unparallelled to any single development in Kuala Lumpur except for KLCC,” Mycom chief Datuk Yap Yong Seong, also known as Duta Yap, told StarBiz. “It will evolve into a new suburban city with about 23 million sq ft of gross floor area.”
The land belonging to Kenny Heights Development Sdn Bhd was injected into Mycom (58%) and Olympia Industries Bhd (42%) under their restructuring schemes that have just been completed.
It is planned as the main commercial centre and high-class residential area next to Kenny Hills. The project is segmented into nine parcels and is to be developed over 15 years.
It will comprise 3,000 residences, hotels with a total 1,600 rooms, 3.8 million sq ft of offices, 3.9 million sq ft of retail space, 500,000 sq ft of conference facilities, a 350,000-sq-ft medical centre and 150,000 sq ft for a cultural centre.
Indeed, it is envisioned to be twice the size of Covent Garden in London, three times that of Roponggi Hills in Tokyo and four times that of the Rockefeller Centre in New York.
Some of the world’s leading architects and designers, such as Adjaye and Associates, Benoy, Conran and Partners, Foster & Partners, ga.a architects, Heatherwick Studio, Jerde Partnership, Kengo Kuma and Associates and WDA, will be involved in the creation.
The market is already abuzz with news of the entry of these two foreign partners into Mycom. Analysts expect more surprises from Duta Yap, who looks like he will have more good news regarding his prime pieces of land and properties in the city.
Upon completion of these transactions, Mycom will be almost completely de-geared.
These transactions are likely to lead to more US and European interests in the Malaysian property investment scene.
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They will jointly develop land in Kenny Heights
By YAP LENG KUEN
KUALA LUMPUR: Mycom Bhd is teaming up with Merrill Lynch Asia to jointly develop 16.2 acres, valued at RM450mil, in Mont’ Kiara, just two months after striking a deal with Westcity plc of London to develop another parcel of land in the same location.
This could be the first time that a US fund is involved in a joint development project in Kuala Lumpur and signals the confidence of foreigners in Malaysia's property market where prices have yet to peak.
Compared with an average S$4,000 per sq ft in Singapore, property in Kuala Lumpur is still fetching around RM1,500 to RM2,000 per sq ft in good locations around the KL City Centre (KLCC).
This positive response from foreigners is the result of steps by the Government following the exemption from real property gains tax.
Mycom’s development of the entire 88 acres under Kenny Heights is also seen as possibly “the last integrated development on the last choice site” in the suburban area of KL.
The joint venture with Merrill Lynch, on a 49:51 basis, is for the development of Parcels 1, 4 and 5 of Kenny Heights. The previous deal with Westcity was for a similar joint development of 10 acres in Parcel 3, valued at RM300mil.
“Kenny Heights is a very exciting project to us. It is unparallelled to any single development in Kuala Lumpur except for KLCC,” Mycom chief Datuk Yap Yong Seong, also known as Duta Yap, told StarBiz. “It will evolve into a new suburban city with about 23 million sq ft of gross floor area.”
The land belonging to Kenny Heights Development Sdn Bhd was injected into Mycom (58%) and Olympia Industries Bhd (42%) under their restructuring schemes that have just been completed.
It is planned as the main commercial centre and high-class residential area next to Kenny Hills. The project is segmented into nine parcels and is to be developed over 15 years.
It will comprise 3,000 residences, hotels with a total 1,600 rooms, 3.8 million sq ft of offices, 3.9 million sq ft of retail space, 500,000 sq ft of conference facilities, a 350,000-sq-ft medical centre and 150,000 sq ft for a cultural centre.
Indeed, it is envisioned to be twice the size of Covent Garden in London, three times that of Roponggi Hills in Tokyo and four times that of the Rockefeller Centre in New York.
Some of the world’s leading architects and designers, such as Adjaye and Associates, Benoy, Conran and Partners, Foster & Partners, ga.a architects, Heatherwick Studio, Jerde Partnership, Kengo Kuma and Associates and WDA, will be involved in the creation.
The market is already abuzz with news of the entry of these two foreign partners into Mycom. Analysts expect more surprises from Duta Yap, who looks like he will have more good news regarding his prime pieces of land and properties in the city.
Upon completion of these transactions, Mycom will be almost completely de-geared.
These transactions are likely to lead to more US and European interests in the Malaysian property investment scene.
Landmarks selling 26.6% stake in Shangri-La
Landmarks selling 26.6% stake in Shangri-La
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PETALING JAYA: Landmarks Bhd has proposed to sell its 26.6% stake in another listed firm Shangri-La Hotels (M) Bhd for a profit, as the company seeks to reduce debt and focus on its own hotel development project.
Shares in Landmarks surged to an intra-day high of RM2.26 yesterday, but settled up 30 sen at RM2.16 before trading was halted at 2.32pm after the announcement was made during the midday break.
The stock will resume trading today.
“The proposed disposal is consistent with Landmarks' long-term plan to focus its resources, both financial and management time, to be a regional player in resort development and management, as well as in the hospitality sectors,'' the company said in a statement to Bursa Malaysia yesterday.
Under the proposal, Landmarks plans to place out 117 million shares in Shangri-La for RM287mil, or RM2.45 per share, to investors to be identified by appointed placement agent CIMB Investment Bank Bhd.
Shangri-La shares jumped eight sen in thin trading to RM2.58 before their suspension yesterday. The counter will also resume trading today.
The shares' disposal would result in a one-off gain of RM102.7mil, or 21 sen a share, for Landmarks. “The prevailing market price for Shangri-La shares is favourable and (Landmarks) intends to realise its investment at a fair price,'' the company said.
Of the total proceeds, RM130mil will be used to reduce bank borrowings and the balance for working capital requirement of Landmarks and its subsidiaries. It is estimated that the lower debts would result in interest savings of RM6.1mil a year for Landmarks.
This is the second major disposal this year by Landmarks following the sale of its stake in Sungei Wang Plaza for RM284.8mil.
The company is also believed to be looking to sell its 20% stake in an independent power plant in Perlis.
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PETALING JAYA: Landmarks Bhd has proposed to sell its 26.6% stake in another listed firm Shangri-La Hotels (M) Bhd for a profit, as the company seeks to reduce debt and focus on its own hotel development project.
Shares in Landmarks surged to an intra-day high of RM2.26 yesterday, but settled up 30 sen at RM2.16 before trading was halted at 2.32pm after the announcement was made during the midday break.
The stock will resume trading today.
“The proposed disposal is consistent with Landmarks' long-term plan to focus its resources, both financial and management time, to be a regional player in resort development and management, as well as in the hospitality sectors,'' the company said in a statement to Bursa Malaysia yesterday.
Under the proposal, Landmarks plans to place out 117 million shares in Shangri-La for RM287mil, or RM2.45 per share, to investors to be identified by appointed placement agent CIMB Investment Bank Bhd.
Shangri-La shares jumped eight sen in thin trading to RM2.58 before their suspension yesterday. The counter will also resume trading today.
The shares' disposal would result in a one-off gain of RM102.7mil, or 21 sen a share, for Landmarks. “The prevailing market price for Shangri-La shares is favourable and (Landmarks) intends to realise its investment at a fair price,'' the company said.
Of the total proceeds, RM130mil will be used to reduce bank borrowings and the balance for working capital requirement of Landmarks and its subsidiaries. It is estimated that the lower debts would result in interest savings of RM6.1mil a year for Landmarks.
This is the second major disposal this year by Landmarks following the sale of its stake in Sungei Wang Plaza for RM284.8mil.
The company is also believed to be looking to sell its 20% stake in an independent power plant in Perlis.
Kampung house revisited
Kampung house revisited
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Note the high ceiling for ventilation purposes
Pictures by T.K. Lim
The guard at the security post asked me my business at the gated community.
I told him that I was looking for Desmond Ho’s house, and he pointed out a “wooden house” nearby.
This is no ordinary wooden house for it stands two stories high, topped by a double volume ceiling.
It is a 21st century version of the traditional kampung house complete with tangga Melaka(Malacca steps), serambi(verandah) and dinding papan(wooden walls).
Apparently an interior decoration no-no: bamboo leaf mat on the ceiling instead of plaster in the sitting room
At the moment, it stands alone as its neighbouring plots have not been built up yet.
Driving up its fenceless driveway, a pool with a multitude of tilapia, water plants and a fountain offers a soothing sight.
A few steps lead up to the outdoor foyer, which then connects to the outdoor living areas.
The house owner is the managing director of Terra Garden, which designs and builds outdoor living spaces.
It is therefore no surprise when he says the outdoors take up two-thirds of the total land area.
Designing the outdoors is where his strength lies; after all, he is the developer of the Neo Nusantara concept which revolves around gardens which can be "lived in".
Rattan chairs are just the thing in this outdoor terrace beside the pool
But the reality is, one has to have a roof and walls for a living space.
The next best thing is to bring in the outdoors, and a verandah along the front of the house is a good place to start.
It leads to the sitting room through pivot doors, which can be adjusted to control the amount of air and light entering.
He takes great pains to explain his Neo Nusantara concept, which evolved from his study of the arts and crafts of the Malay archipelago.
"I have interpreted the findings and expressed them in my own way.
Shower under the stars in this outdoor bathroom
"There are many ideas which we can extract from local art and craft; there is enough to tap from this region as Malaysia is a melting pot."
The characteristics of the house are based on this research.
Examples of this are all over the house.
The wooden lattice work above the doors are based on the kain pelekat(sarong).
Certain sections of the walls are constructed in the old dinding papan style, where the timber planks overlap each other horizontally, much like roof tiles, so that the rain water can run off.
A lifestyle centred around dinner beside the pool and outdoor living when the sun is not overhead
Art deco chairs sit on natural fibre mats.
Rather than using the usual plaster to cover the ceiling, bamboo leaf mats are used to bring in the kampung ambience.
“I have broken quite a few interior decoration rules,” Ho admits.
Next to the sitting area is the dining area, which has hardly been used, not because it is not comfortable, but because the outdoor seating has a stronger pull.
His wife, Annie Chitty explains: “We have been living here for a couple of years, and we normally have breakfast and lunch at the breakfast counter in the kitchen area and dinner, outdoors.”
But that is not to say that this dining area, which faces the garden and swimming pool, has a confined feeling about it as diners can look out through glass walls.
The sitting and dining area make up the rumah ibu (literally ‘mother house’ to mean ‘main part of the house’) and a few steps lead down to the kitchen area.
The window sill next to the breakfast counter is a convenient bench
A sizeable area, it is unusual in that it has no wet kitchen.
The breakfast counter is obviously a much loved and used area, as it opens to the garden area.
A window sill serves as a bench where Ho can loll on, contemplating his garden while he sips his coffee.
The stairs, which lead up to the rooms and down to the basement, are placed towards one side of the house.
The railings of the bannisters are lovely, decorated with a pucuk paku (fern shoots) motif.
Plenty of sitting area with comfortable rattan chairs and daybed in the outdoor living area near the pool
As one goes up the steps, one can look out through glass windows which are enhanced by another motif seen quite a lot around the house, that of the pucuk rebung(bamboo shoot).
The bedrooms lead off a corridor, starting with the children’s rooms and at the end of the corridor, the guest bedroom, which enjoys a good view from three sides of the room.
The three rooms have high ceilings, but the ceiling in the children’s rooms “have been covered up to give the rooms a more cosy look,” explains the lady of the house, “while the guest room retains the high ceiling as adults can appreciate it.”
A convenient place to place keys and the like beside the main door
Visitors to this house feel they are visiting a resort and joke that they have booked the guest room!
The master bedroom has a double-volume ceiling which increases the height and volume of the room to cater for hot and cold air transfer.
As with most houses, there is the usual bathroom attached but what Ho is justifiably proud of is another bathroom, which is out in the open, leading off from the bedroom.
Stepping out from his bedroom first thing in the morning, he sees his beloved potted plants, and slightly to the left, his open-air shower and jacuzzi.
A night-time shower must be an experience to be savoured as the moon is directly overhead.
Chengal wood is used extensively all over the house, and here, beside the jacuzzi and the swimming pool downstairs, chengal boards are left unvarnished, as Ho loves the old, seasoned look, besides being not slippery.
The basement (“actually it is a sub-basement as it is not entirely dug into the ground”) is the coolest part of the house, and it houses the den and the study.
The outdoors is dedicated to numerous sitting areas with rattan chairs, a pond, a swimming pool, an alfresco dining area and a herb garden at the back.
The top of the fence serves as a planter box as well
At one corner is another outdoor shower.
The wooden fence which runs right down one side of the garden is very creative; a planter box runs right across the top, from which hang petunias and other plants.
Vertical wooden slats make up the fence and at intervals, hidden behind Baba Nyonya carvings are lamps, which should turn the outdoors into a nusantara wonderland as the evening wears on.
Right now the occupants of the house have a clear view all around, “but when the other houses come up, I’ll move,” jokes Ho.
Having put in such a lot of effort, one would think not, but who knows, Ho might just need another avenue for his creative expression.
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Note the high ceiling for ventilation purposes
Pictures by T.K. Lim
The guard at the security post asked me my business at the gated community.
I told him that I was looking for Desmond Ho’s house, and he pointed out a “wooden house” nearby.
This is no ordinary wooden house for it stands two stories high, topped by a double volume ceiling.
It is a 21st century version of the traditional kampung house complete with tangga Melaka(Malacca steps), serambi(verandah) and dinding papan(wooden walls).
Apparently an interior decoration no-no: bamboo leaf mat on the ceiling instead of plaster in the sitting room
At the moment, it stands alone as its neighbouring plots have not been built up yet.
Driving up its fenceless driveway, a pool with a multitude of tilapia, water plants and a fountain offers a soothing sight.
A few steps lead up to the outdoor foyer, which then connects to the outdoor living areas.
The house owner is the managing director of Terra Garden, which designs and builds outdoor living spaces.
It is therefore no surprise when he says the outdoors take up two-thirds of the total land area.
Designing the outdoors is where his strength lies; after all, he is the developer of the Neo Nusantara concept which revolves around gardens which can be "lived in".
Rattan chairs are just the thing in this outdoor terrace beside the pool
But the reality is, one has to have a roof and walls for a living space.
The next best thing is to bring in the outdoors, and a verandah along the front of the house is a good place to start.
It leads to the sitting room through pivot doors, which can be adjusted to control the amount of air and light entering.
He takes great pains to explain his Neo Nusantara concept, which evolved from his study of the arts and crafts of the Malay archipelago.
"I have interpreted the findings and expressed them in my own way.
Shower under the stars in this outdoor bathroom
"There are many ideas which we can extract from local art and craft; there is enough to tap from this region as Malaysia is a melting pot."
The characteristics of the house are based on this research.
Examples of this are all over the house.
The wooden lattice work above the doors are based on the kain pelekat(sarong).
Certain sections of the walls are constructed in the old dinding papan style, where the timber planks overlap each other horizontally, much like roof tiles, so that the rain water can run off.
A lifestyle centred around dinner beside the pool and outdoor living when the sun is not overhead
Art deco chairs sit on natural fibre mats.
Rather than using the usual plaster to cover the ceiling, bamboo leaf mats are used to bring in the kampung ambience.
“I have broken quite a few interior decoration rules,” Ho admits.
Next to the sitting area is the dining area, which has hardly been used, not because it is not comfortable, but because the outdoor seating has a stronger pull.
His wife, Annie Chitty explains: “We have been living here for a couple of years, and we normally have breakfast and lunch at the breakfast counter in the kitchen area and dinner, outdoors.”
But that is not to say that this dining area, which faces the garden and swimming pool, has a confined feeling about it as diners can look out through glass walls.
The sitting and dining area make up the rumah ibu (literally ‘mother house’ to mean ‘main part of the house’) and a few steps lead down to the kitchen area.
The window sill next to the breakfast counter is a convenient bench
A sizeable area, it is unusual in that it has no wet kitchen.
The breakfast counter is obviously a much loved and used area, as it opens to the garden area.
A window sill serves as a bench where Ho can loll on, contemplating his garden while he sips his coffee.
The stairs, which lead up to the rooms and down to the basement, are placed towards one side of the house.
The railings of the bannisters are lovely, decorated with a pucuk paku (fern shoots) motif.
Plenty of sitting area with comfortable rattan chairs and daybed in the outdoor living area near the pool
As one goes up the steps, one can look out through glass windows which are enhanced by another motif seen quite a lot around the house, that of the pucuk rebung(bamboo shoot).
The bedrooms lead off a corridor, starting with the children’s rooms and at the end of the corridor, the guest bedroom, which enjoys a good view from three sides of the room.
The three rooms have high ceilings, but the ceiling in the children’s rooms “have been covered up to give the rooms a more cosy look,” explains the lady of the house, “while the guest room retains the high ceiling as adults can appreciate it.”
A convenient place to place keys and the like beside the main door
Visitors to this house feel they are visiting a resort and joke that they have booked the guest room!
The master bedroom has a double-volume ceiling which increases the height and volume of the room to cater for hot and cold air transfer.
As with most houses, there is the usual bathroom attached but what Ho is justifiably proud of is another bathroom, which is out in the open, leading off from the bedroom.
Stepping out from his bedroom first thing in the morning, he sees his beloved potted plants, and slightly to the left, his open-air shower and jacuzzi.
A night-time shower must be an experience to be savoured as the moon is directly overhead.
Chengal wood is used extensively all over the house, and here, beside the jacuzzi and the swimming pool downstairs, chengal boards are left unvarnished, as Ho loves the old, seasoned look, besides being not slippery.
The basement (“actually it is a sub-basement as it is not entirely dug into the ground”) is the coolest part of the house, and it houses the den and the study.
The outdoors is dedicated to numerous sitting areas with rattan chairs, a pond, a swimming pool, an alfresco dining area and a herb garden at the back.
The top of the fence serves as a planter box as well
At one corner is another outdoor shower.
The wooden fence which runs right down one side of the garden is very creative; a planter box runs right across the top, from which hang petunias and other plants.
Vertical wooden slats make up the fence and at intervals, hidden behind Baba Nyonya carvings are lamps, which should turn the outdoors into a nusantara wonderland as the evening wears on.
Right now the occupants of the house have a clear view all around, “but when the other houses come up, I’ll move,” jokes Ho.
Having put in such a lot of effort, one would think not, but who knows, Ho might just need another avenue for his creative expression.
Properties from a Feng Shui Perspective
Properties from a Feng Shui Perspective
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Klang Valley and the KLCC
Part 4: Feng shui tour of the Klang Valley
In the previous article, we discussed the four parameters that come into play in feng shui. We first look for “the dragon” or mountain, then the river followed by meridian points and screens or shields.
Peninsular Malaysia has eight mountain ranges descending from the mighty Himalayas. The largest of these is the Titiwangsa range. At Bukit Tinggi, the dragon branches out into two directions: · northwards to Rawang and curving back to Meru in Klang · southwards into Cheras, IOI Mall in Puchong and finally Pulau Indah in Klang
Energy can still travel through the solid ground below the river. Buildings with deep piling can tap into this energy
The valley embraced by these two arms (“the dragon”) and bounded by the Straits of Malacca ("the river") is called the Klang Valley. Among all the embracing arm formations in Malaysia, including Sabah and Sarawak, the Klang Valley appears to be the biggest. Is it any surprise that the Klang Valley happens to be the most prosperous region in the whole country?
Within this region, there are also meridian points or spots where prosperity is more apparent. They are influenced by the presence of rivers and roads, which reflect, deflect and re-direct the energy emanating from the dragon.
Kuala Lumpur had six rivers in its early days but due to massive development, many rivers were re-directed or converted into monsoon drains. How mighty are the humans for they can reshape the world and redirect rivers! I wonder if anyone realises the long-term impact.
Klang River The Klang River originates from Ulu Klang. It flows through Kuala Lumpur on its way to Klang. As it enters the city, it is joined by Sungai Gisir in Taman Permata and the Ampang River at Kuala Ampang. The conjoined Klang River eventually joins Gombak River at Masjid Jamek, creating the famous muddy confluence that gave the city its name.
The Ampang Elevated Highway is built along the Ampang and Klang Rivers. It was the path of least resistance and lower cost, since land acquisition is minimised. In a sense, it also locks in the shape of the river. Now, let us trace back along the Klang River and see if and how it could have influenced the fortunes of property developments along the way.
Over the next few articles, we will analyse sections of Kuala Lumpur and its surroundings from a feng shui perspective.
We will see if ancient concepts are still applicable in the modern world, where technology and rapid development have transformed the land on which we live.
Bear in mind that a river blocks energy flow in so far as its depth presents a barrier. Energy to a lesser extent can still travel through the solid ground below the river although the underground water table inhibits this. Buildings with deep piling can tap into this energy.
We begin with the segment surrounded by the Ampang Elevated Highway, Jalan Yap Kwan Seng, Jalan Tun Razak and Jalan Sultan Ismail. The river along this segment curves in an embracing manner to encompass some very high profile and prosperous projects, among which is the Kuala Lumpur City Centre (KLCC).
Concave Pools As discussed in an earlier article, the embracing side of a river – the concave side – collects and accumulates a pool of homogenous energy. Thus, properties that face a concave river will benefit from it, much like the protective arms of a parent around a little child. Those with their backs to the river are like the elbow; they deflect earth energy and cannot accumulate and hold it. In fact, it can even “hurt”.
We can see that even in so-called prime locations, certain property developments do better than others. For example, the KLCC sits facing the Klang River and is well suited to tap into this energy. Jalan Yap Kwan Seng runs parallel to the river. Properties located along this road are likely to do well if they are constructed in a similar fashion: with the entrance facing the river.
Alternatively, the entrance should parallel the river facing downstream.
Land Code The National Land Code stipulates that no development can be done on land within 33 feet of river banks. This legacy from colonial times could have been intended to create a safety buffer against floods. This distance also happens to be significant in feng shui – the concentration of energy is high within this range. So there may be a geomantic reason for this, forgotten over time.
Nonetheless, the land code is often disregarded, possibly because the authorities figured they have solved the flooding issue by deepening the river and building higher embankment walls. This is an interesting theory and remains a theory as floods still plague Kuala Lumpur after heavy downpours.
If the land code is adhered to, there would be no buildings found along the riverbanks. Instead, parks could be built for the enjoyment of the public. Roads running parallel to the river could be constructed and all properties along them would face the river and enjoy beneficial energy – and a nice riverside view!
By tapping into this positive energy, the property generates good vibes that attract people to it. It would attract tenants and visitors, and command higher rentals. Alas, many main roads are not built along riverbanks. Therefore, many buildings in KL have their backs to the river.
Humans are typically proud of their building’s frontage. Owners and managers will go to great lengths to beautify the front and keep it clean. On the other hand, they also have a bad habit of throwing rubbish out the back, what more a river to conveniently wash it away!
If buildings were to face the river, there is less likelihood of the occupants polluting the river or clogging it with unsightly and smelly rubbish. The owners would take pains to clean it and keep it clean. If not for feng shui reasons, this environmentally friendly approach makes sense and should be adopted!
From a feng shui perspective, I wonder how much better they would have fared, had such buildings faced the river instead. Perhaps, the property would look more vibrant and attractive. There could be fewer maintenance problems or difficult tenants.
Subtle Confluence Behind Menara Safuan and Wisma Denmark is an obscure stream that joins the Klang River. Small as it may be, it forms a confluence and this is a powerful configuration. Buildings that face a confluence (facing downstream) are also very likely to do well.
Though it is some distance away, the Mandarin Oriental which directly faces this confluence is not doing too badly. This high-end hotel enjoys brisk business and is a popular choice for corporate functions. Was it a mere coincidence that it is aligned that way?
Even further away, there is the PNB Darby Park, which also faces this confluence. However, the effect may not be as noticeable given the distance. It also happens to be a relatively new development so the long-term effects remain to be seen.
Between Jalan Ampang and the Klang River in the vicinity of the Renaissance Hotel, the river forms a very visible concave. This is a very good site for positive energy for any building that faces the river. The Renaissance’s entrance is well positioned to tap into this energy.
Beside the hotel, there is the Cendana Condominium which is currently under construction. It parallels the river and faces downstream. If the entrance is appropriately sited, it is likely to do well, too.
Nonetheless, a big chunk of real estate in this area is still undeveloped. Perhaps its close proximity to the Ampang Muslim cemetery is a deterrent for developers.
Across the road from the Renaissance is the Berjaya Central Park project currently under development. This is a very promising location as its entrance (should it face the main road) faces the concave side of the river.
River-like roads Apart from rivers, roads can also influence the flow of energy, albeit to a lesser extent. The heavy flow of traffic on the road has a similar effect of disrupting and deflecting energy as a flowing river. In the segment under study, the main road is Jalan Ampang, which curves like a river as well.
On the “concave” side of this road, there are Wisma MCA, Menara Citibank and the Nikko Hotel. These properties have a vibrant feel and seem to attract high traffic. Could their success again be attributed to the positive energy collected here?
Busy junctions, like the Jalan Ampang-Jalan Yap Kwan Seng-Jalan P. Ramlee intersection, form a confluence of sorts. Properties with entrances facing this intersection are considered favourable, too. The KLCC enjoys this position as does Menara Public Bank.
Does this mean that properties facing the convex side of the river or road are doomed to fail, just like properties that have the river to their backs? I leave the answer to you.
Take a look at the properties and developments along a major road, or Jalan Ampang, in this case. Why do some buildings, be they office blocks or shopping complex, perform better than their next door neighbours? Why do they attract different clientele and traffic? Why do some command premium rentals and have long-term tenants?
Is it because the property manager does not understand the idea of good tenant mix, or has no idea what he or she is doing? Surely not. If you see someone more successful at doing something, wouldn’t you learn from or at least copy them?
I think they have very little choice. If the property attracts only certain types of clientele, can the owner or manager turn them away?
Property developers may want to consider these factors when they plan new projects on prime land. The location itself does not guarantee the project’s success. Location may play a big part in attracting initial buying interest in a development but its subsequent success – resale, tenancy, maintenance cost, rental income, traffic volume, etc., – may not be guaranteed.
*This series on feng shui and real estate properties appear courtesy of the Malaysia Institute of Geomancy Sciences (MINGS). David Koh is the founder of MINGS and has been a feng shui master and teacher for the past 35 years.
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Klang Valley and the KLCC
Part 4: Feng shui tour of the Klang Valley
In the previous article, we discussed the four parameters that come into play in feng shui. We first look for “the dragon” or mountain, then the river followed by meridian points and screens or shields.
Peninsular Malaysia has eight mountain ranges descending from the mighty Himalayas. The largest of these is the Titiwangsa range. At Bukit Tinggi, the dragon branches out into two directions: · northwards to Rawang and curving back to Meru in Klang · southwards into Cheras, IOI Mall in Puchong and finally Pulau Indah in Klang
Energy can still travel through the solid ground below the river. Buildings with deep piling can tap into this energy
The valley embraced by these two arms (“the dragon”) and bounded by the Straits of Malacca ("the river") is called the Klang Valley. Among all the embracing arm formations in Malaysia, including Sabah and Sarawak, the Klang Valley appears to be the biggest. Is it any surprise that the Klang Valley happens to be the most prosperous region in the whole country?
Within this region, there are also meridian points or spots where prosperity is more apparent. They are influenced by the presence of rivers and roads, which reflect, deflect and re-direct the energy emanating from the dragon.
Kuala Lumpur had six rivers in its early days but due to massive development, many rivers were re-directed or converted into monsoon drains. How mighty are the humans for they can reshape the world and redirect rivers! I wonder if anyone realises the long-term impact.
Klang River The Klang River originates from Ulu Klang. It flows through Kuala Lumpur on its way to Klang. As it enters the city, it is joined by Sungai Gisir in Taman Permata and the Ampang River at Kuala Ampang. The conjoined Klang River eventually joins Gombak River at Masjid Jamek, creating the famous muddy confluence that gave the city its name.
The Ampang Elevated Highway is built along the Ampang and Klang Rivers. It was the path of least resistance and lower cost, since land acquisition is minimised. In a sense, it also locks in the shape of the river. Now, let us trace back along the Klang River and see if and how it could have influenced the fortunes of property developments along the way.
Over the next few articles, we will analyse sections of Kuala Lumpur and its surroundings from a feng shui perspective.
We will see if ancient concepts are still applicable in the modern world, where technology and rapid development have transformed the land on which we live.
Bear in mind that a river blocks energy flow in so far as its depth presents a barrier. Energy to a lesser extent can still travel through the solid ground below the river although the underground water table inhibits this. Buildings with deep piling can tap into this energy.
We begin with the segment surrounded by the Ampang Elevated Highway, Jalan Yap Kwan Seng, Jalan Tun Razak and Jalan Sultan Ismail. The river along this segment curves in an embracing manner to encompass some very high profile and prosperous projects, among which is the Kuala Lumpur City Centre (KLCC).
Concave Pools As discussed in an earlier article, the embracing side of a river – the concave side – collects and accumulates a pool of homogenous energy. Thus, properties that face a concave river will benefit from it, much like the protective arms of a parent around a little child. Those with their backs to the river are like the elbow; they deflect earth energy and cannot accumulate and hold it. In fact, it can even “hurt”.
We can see that even in so-called prime locations, certain property developments do better than others. For example, the KLCC sits facing the Klang River and is well suited to tap into this energy. Jalan Yap Kwan Seng runs parallel to the river. Properties located along this road are likely to do well if they are constructed in a similar fashion: with the entrance facing the river.
Alternatively, the entrance should parallel the river facing downstream.
Land Code The National Land Code stipulates that no development can be done on land within 33 feet of river banks. This legacy from colonial times could have been intended to create a safety buffer against floods. This distance also happens to be significant in feng shui – the concentration of energy is high within this range. So there may be a geomantic reason for this, forgotten over time.
Nonetheless, the land code is often disregarded, possibly because the authorities figured they have solved the flooding issue by deepening the river and building higher embankment walls. This is an interesting theory and remains a theory as floods still plague Kuala Lumpur after heavy downpours.
If the land code is adhered to, there would be no buildings found along the riverbanks. Instead, parks could be built for the enjoyment of the public. Roads running parallel to the river could be constructed and all properties along them would face the river and enjoy beneficial energy – and a nice riverside view!
By tapping into this positive energy, the property generates good vibes that attract people to it. It would attract tenants and visitors, and command higher rentals. Alas, many main roads are not built along riverbanks. Therefore, many buildings in KL have their backs to the river.
Humans are typically proud of their building’s frontage. Owners and managers will go to great lengths to beautify the front and keep it clean. On the other hand, they also have a bad habit of throwing rubbish out the back, what more a river to conveniently wash it away!
If buildings were to face the river, there is less likelihood of the occupants polluting the river or clogging it with unsightly and smelly rubbish. The owners would take pains to clean it and keep it clean. If not for feng shui reasons, this environmentally friendly approach makes sense and should be adopted!
From a feng shui perspective, I wonder how much better they would have fared, had such buildings faced the river instead. Perhaps, the property would look more vibrant and attractive. There could be fewer maintenance problems or difficult tenants.
Subtle Confluence Behind Menara Safuan and Wisma Denmark is an obscure stream that joins the Klang River. Small as it may be, it forms a confluence and this is a powerful configuration. Buildings that face a confluence (facing downstream) are also very likely to do well.
Though it is some distance away, the Mandarin Oriental which directly faces this confluence is not doing too badly. This high-end hotel enjoys brisk business and is a popular choice for corporate functions. Was it a mere coincidence that it is aligned that way?
Even further away, there is the PNB Darby Park, which also faces this confluence. However, the effect may not be as noticeable given the distance. It also happens to be a relatively new development so the long-term effects remain to be seen.
Between Jalan Ampang and the Klang River in the vicinity of the Renaissance Hotel, the river forms a very visible concave. This is a very good site for positive energy for any building that faces the river. The Renaissance’s entrance is well positioned to tap into this energy.
Beside the hotel, there is the Cendana Condominium which is currently under construction. It parallels the river and faces downstream. If the entrance is appropriately sited, it is likely to do well, too.
Nonetheless, a big chunk of real estate in this area is still undeveloped. Perhaps its close proximity to the Ampang Muslim cemetery is a deterrent for developers.
Across the road from the Renaissance is the Berjaya Central Park project currently under development. This is a very promising location as its entrance (should it face the main road) faces the concave side of the river.
River-like roads Apart from rivers, roads can also influence the flow of energy, albeit to a lesser extent. The heavy flow of traffic on the road has a similar effect of disrupting and deflecting energy as a flowing river. In the segment under study, the main road is Jalan Ampang, which curves like a river as well.
On the “concave” side of this road, there are Wisma MCA, Menara Citibank and the Nikko Hotel. These properties have a vibrant feel and seem to attract high traffic. Could their success again be attributed to the positive energy collected here?
Busy junctions, like the Jalan Ampang-Jalan Yap Kwan Seng-Jalan P. Ramlee intersection, form a confluence of sorts. Properties with entrances facing this intersection are considered favourable, too. The KLCC enjoys this position as does Menara Public Bank.
Does this mean that properties facing the convex side of the river or road are doomed to fail, just like properties that have the river to their backs? I leave the answer to you.
Take a look at the properties and developments along a major road, or Jalan Ampang, in this case. Why do some buildings, be they office blocks or shopping complex, perform better than their next door neighbours? Why do they attract different clientele and traffic? Why do some command premium rentals and have long-term tenants?
Is it because the property manager does not understand the idea of good tenant mix, or has no idea what he or she is doing? Surely not. If you see someone more successful at doing something, wouldn’t you learn from or at least copy them?
I think they have very little choice. If the property attracts only certain types of clientele, can the owner or manager turn them away?
Property developers may want to consider these factors when they plan new projects on prime land. The location itself does not guarantee the project’s success. Location may play a big part in attracting initial buying interest in a development but its subsequent success – resale, tenancy, maintenance cost, rental income, traffic volume, etc., – may not be guaranteed.
*This series on feng shui and real estate properties appear courtesy of the Malaysia Institute of Geomancy Sciences (MINGS). David Koh is the founder of MINGS and has been a feng shui master and teacher for the past 35 years.
TA to turn Seri Suria into major commercial hub
TA to turn Seri Suria into major commercial hub
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KUALA LUMPUR: TA Enterprise Bhd unit TA Properties Sdn Bhd plans to develop its Seri Suria project in Bandar Sri Damansara into a multi-billion ringgit commercial hub instead of a mixed development project as proposed earlier.
TA Enterprise managing director Datin Alicia Tiah said the company wanted to maximise land use of the 49-acre site.
“We want bigger retail space than what we earlier planned – something like the Mid Valley,” she said after the launch of Shepherd's Centre Bukit Beruntung yesterday.
She said the commercial hub would cater to the shopping needs of those living in the vicinity, especially Kepong.
Datin Alicia Tiah
“The project will provide an alternative for those who currently have to pay toll to get to commercial centres like One Utama and The Curve.”
Seri Suria will now be a 10-year project, with the first launch – comprising three- and four-storey shop-offices – slated for the last quarter ending Jan 31.
It would eventually feature a hotel, offices, shopping malls and serviced apartments. “We are not in a rush to develop this land,” Tiah said, adding that the group had re-submitted the development plan.
TA Enterprise, dubbed as the second-biggest landlord in Kuala Lumpur's Golden Triangle after Petronas, is awaiting relevant approvals to launch the first phase of Trinity Square.
The development would comprise three blocks of high-end condominiums and serviced apartments on a three-acre site at the junction of Jalan Bukit Bintang and Jalan Imbi.
“The first to be launched will be Nova Suite, a 200-unit serviced apartment that we want to run ourselves. Next will be a 250-unit condominium, Nova Residence, where some units will have private pools or gardens,” Tiah said.
Tiah said TA Properties bought the land at RM600 per sq ft from Talam group a few years ago and the land value had since doubled.
On its commitment to build and equip a home for Shepherd’s Centre Foundation, Tiah said: “Our corporate social responsibility initiatives are not just about philanthropy and donating money.
“More importantly, it is about integrating social and ethical practices into our business operations and strategies.”
Shepherd’s Centre Foundation is a charity that safeguards the welfare of underprivileged children.
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KUALA LUMPUR: TA Enterprise Bhd unit TA Properties Sdn Bhd plans to develop its Seri Suria project in Bandar Sri Damansara into a multi-billion ringgit commercial hub instead of a mixed development project as proposed earlier.
TA Enterprise managing director Datin Alicia Tiah said the company wanted to maximise land use of the 49-acre site.
“We want bigger retail space than what we earlier planned – something like the Mid Valley,” she said after the launch of Shepherd's Centre Bukit Beruntung yesterday.
She said the commercial hub would cater to the shopping needs of those living in the vicinity, especially Kepong.
Datin Alicia Tiah
“The project will provide an alternative for those who currently have to pay toll to get to commercial centres like One Utama and The Curve.”
Seri Suria will now be a 10-year project, with the first launch – comprising three- and four-storey shop-offices – slated for the last quarter ending Jan 31.
It would eventually feature a hotel, offices, shopping malls and serviced apartments. “We are not in a rush to develop this land,” Tiah said, adding that the group had re-submitted the development plan.
TA Enterprise, dubbed as the second-biggest landlord in Kuala Lumpur's Golden Triangle after Petronas, is awaiting relevant approvals to launch the first phase of Trinity Square.
The development would comprise three blocks of high-end condominiums and serviced apartments on a three-acre site at the junction of Jalan Bukit Bintang and Jalan Imbi.
“The first to be launched will be Nova Suite, a 200-unit serviced apartment that we want to run ourselves. Next will be a 250-unit condominium, Nova Residence, where some units will have private pools or gardens,” Tiah said.
Tiah said TA Properties bought the land at RM600 per sq ft from Talam group a few years ago and the land value had since doubled.
On its commitment to build and equip a home for Shepherd’s Centre Foundation, Tiah said: “Our corporate social responsibility initiatives are not just about philanthropy and donating money.
“More importantly, it is about integrating social and ethical practices into our business operations and strategies.”
Shepherd’s Centre Foundation is a charity that safeguards the welfare of underprivileged children.
Tuesday, September 4, 2007
Saraya to develop financial district in IDR
Saraya to develop financial district in IDR
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KUALA LUMPUR: Saraya Holdings unit Millennium Development International is investing US$325mil to develop a new International Financial District Zone in South Johor.
Saraya said in a statement on Saturday that the subsidiary would act as the master concessionaire and land developer of the 365-acre project.
The company said that Millennium signed a memorandum of understanding last Wednesday with South Johor Investment Corp Bhd (SJIC) to build the International Financial District part of the first integrated development area in the Iskandar Development Region (IDR).
SJIC would be a strategic partner with a 30% stake, it added.
“Our investment in the International Financial District Zone fits well with our objectives and meets the need for a new financial hub to serve the expanding markets in Asia.
“Millennium is committed to making IDR a model for smart growth and a global destination of choice for commercial and financial services,” said Saraya vice chairman and chief executive officer Ali Kolaghassi.
Millennium is the urban development management arm of Saraya. – Bernama
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KUALA LUMPUR: Saraya Holdings unit Millennium Development International is investing US$325mil to develop a new International Financial District Zone in South Johor.
Saraya said in a statement on Saturday that the subsidiary would act as the master concessionaire and land developer of the 365-acre project.
The company said that Millennium signed a memorandum of understanding last Wednesday with South Johor Investment Corp Bhd (SJIC) to build the International Financial District part of the first integrated development area in the Iskandar Development Region (IDR).
SJIC would be a strategic partner with a 30% stake, it added.
“Our investment in the International Financial District Zone fits well with our objectives and meets the need for a new financial hub to serve the expanding markets in Asia.
“Millennium is committed to making IDR a model for smart growth and a global destination of choice for commercial and financial services,” said Saraya vice chairman and chief executive officer Ali Kolaghassi.
Millennium is the urban development management arm of Saraya. – Bernama
Saraya to develop financial district in IDR
Saraya to develop financial district in IDR
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KUALA LUMPUR: Saraya Holdings unit Millennium Development International is investing US$325mil to develop a new International Financial District Zone in South Johor.
Saraya said in a statement on Saturday that the subsidiary would act as the master concessionaire and land developer of the 365-acre project.
The company said that Millennium signed a memorandum of understanding last Wednesday with South Johor Investment Corp Bhd (SJIC) to build the International Financial District part of the first integrated development area in the Iskandar Development Region (IDR).
SJIC would be a strategic partner with a 30% stake, it added.
“Our investment in the International Financial District Zone fits well with our objectives and meets the need for a new financial hub to serve the expanding markets in Asia.
“Millennium is committed to making IDR a model for smart growth and a global destination of choice for commercial and financial services,” said Saraya vice chairman and chief executive officer Ali Kolaghassi.
Millennium is the urban development management arm of Saraya. – Bernama
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KUALA LUMPUR: Saraya Holdings unit Millennium Development International is investing US$325mil to develop a new International Financial District Zone in South Johor.
Saraya said in a statement on Saturday that the subsidiary would act as the master concessionaire and land developer of the 365-acre project.
The company said that Millennium signed a memorandum of understanding last Wednesday with South Johor Investment Corp Bhd (SJIC) to build the International Financial District part of the first integrated development area in the Iskandar Development Region (IDR).
SJIC would be a strategic partner with a 30% stake, it added.
“Our investment in the International Financial District Zone fits well with our objectives and meets the need for a new financial hub to serve the expanding markets in Asia.
“Millennium is committed to making IDR a model for smart growth and a global destination of choice for commercial and financial services,” said Saraya vice chairman and chief executive officer Ali Kolaghassi.
Millennium is the urban development management arm of Saraya. – Bernama
Developing iconic and integrated property development
Developing iconic and integrated property development
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MALAYSIA should put on its thinking cap to attract surplus funds in the global real estate investment market to its shores.
Property developer Datuk C. K. Wong said real estate was evolving into a global asset class, and worldwide real estate investment transactions had hit a record high of US$600bil last year.
“A report by DTZ's Money Into Property said that there was US$2.4 trillion to be invested in real estate worldwide. We should not missed out on the opportunity to be on the radar screen of these property and institution funds,” he told StarBiz.
Wong has called the Government to work closely with property developers to support and promote the development of iconic and integrated property projects with thematic focus “that not only lend prestige to the country but will bring-in more tourist income.”
Sp Setia Bhd's MD Tan Sri Liew Kee Sin
“Fund managers worldwide are receiving record fund inflows as populations in developed countries' approach retirement age.
“With many of these funds attracted by real estate’s strong stable returns, there has been a significant re-weighting on investment portfolios favouring real estate assets, such as, real estate investment trusts and other property backed securities,” he said.
The greatest impact of the growing globalisation of real estate investment can be seen especially in developing markets where the majority of prime quality stocks and real estate have been bought by inter-regional investors.
“Malaysia has the attributes of an international real estate destination. It is regarded as an attractive destination to work and live compared with other Asian cities such as Seoul, Tokyo, Hong Kong, Osaka and Singapore where the cost of living is very much higher.
“Property prices have grown steadily in the past two years – approximately 7% a year, with rental yields remaining extremely attractive – fluctuating 7% to 9% and higher.”
The Jones Lang LaSalle global real estate capital report recently said direct commercial real estate investment in Asia Pacific was US$43bil in the first half of 2006, up 40% from the same period in 2005.
Cross-border investment represented 29% of total investment, up from 28% in the first half of 2005, while inter-regional investment reached 18% of total investment (up from 15% in H1 2005).
Japan accounted for 51% of total Asia Pacific transaction, with a further 40% taking place in four major markets: Australia (12%), China (11%), Hong Kong (10%) and Singapore (7%).
According to Wong, three broad factors - rapid economic growth, changing demographics in both the developed and developing countries, and the phenomenon of off-shoring - have come together and give rise to global real estate opportunities, particularly in the emerging economies.
The United States investors have deepen their exposure to real estate investment in Europe and Asia, while Middle Eastern investors continued to make significant net investments in Europe, the Americas, and Asia.
Large investments remained to be made in the Americas by Asia Pacific funds, that were predominantly from Australia.
SP Setia Bhd group managing director Tan Sri Liew Kee Sin said, Malaysia had lagged its Asian counterparts in grabbing a share of the regional real estate boom.
“This is because we have failed to communicate a compelling brand as a country despite that we have so much to offer. Ease of transaction and potential capital appreciation are paramount to foreigners.
“Well coordinated and concerted efforts to brand Malaysia into a liveable and sustainable destination with a world-class maintenance culture bode well for our ambitions to garner global attention,” Liew said.
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MALAYSIA should put on its thinking cap to attract surplus funds in the global real estate investment market to its shores.
Property developer Datuk C. K. Wong said real estate was evolving into a global asset class, and worldwide real estate investment transactions had hit a record high of US$600bil last year.
“A report by DTZ's Money Into Property said that there was US$2.4 trillion to be invested in real estate worldwide. We should not missed out on the opportunity to be on the radar screen of these property and institution funds,” he told StarBiz.
Wong has called the Government to work closely with property developers to support and promote the development of iconic and integrated property projects with thematic focus “that not only lend prestige to the country but will bring-in more tourist income.”
Sp Setia Bhd's MD Tan Sri Liew Kee Sin
“Fund managers worldwide are receiving record fund inflows as populations in developed countries' approach retirement age.
“With many of these funds attracted by real estate’s strong stable returns, there has been a significant re-weighting on investment portfolios favouring real estate assets, such as, real estate investment trusts and other property backed securities,” he said.
The greatest impact of the growing globalisation of real estate investment can be seen especially in developing markets where the majority of prime quality stocks and real estate have been bought by inter-regional investors.
“Malaysia has the attributes of an international real estate destination. It is regarded as an attractive destination to work and live compared with other Asian cities such as Seoul, Tokyo, Hong Kong, Osaka and Singapore where the cost of living is very much higher.
“Property prices have grown steadily in the past two years – approximately 7% a year, with rental yields remaining extremely attractive – fluctuating 7% to 9% and higher.”
The Jones Lang LaSalle global real estate capital report recently said direct commercial real estate investment in Asia Pacific was US$43bil in the first half of 2006, up 40% from the same period in 2005.
Cross-border investment represented 29% of total investment, up from 28% in the first half of 2005, while inter-regional investment reached 18% of total investment (up from 15% in H1 2005).
Japan accounted for 51% of total Asia Pacific transaction, with a further 40% taking place in four major markets: Australia (12%), China (11%), Hong Kong (10%) and Singapore (7%).
According to Wong, three broad factors - rapid economic growth, changing demographics in both the developed and developing countries, and the phenomenon of off-shoring - have come together and give rise to global real estate opportunities, particularly in the emerging economies.
The United States investors have deepen their exposure to real estate investment in Europe and Asia, while Middle Eastern investors continued to make significant net investments in Europe, the Americas, and Asia.
Large investments remained to be made in the Americas by Asia Pacific funds, that were predominantly from Australia.
SP Setia Bhd group managing director Tan Sri Liew Kee Sin said, Malaysia had lagged its Asian counterparts in grabbing a share of the regional real estate boom.
“This is because we have failed to communicate a compelling brand as a country despite that we have so much to offer. Ease of transaction and potential capital appreciation are paramount to foreigners.
“Well coordinated and concerted efforts to brand Malaysia into a liveable and sustainable destination with a world-class maintenance culture bode well for our ambitions to garner global attention,” Liew said.
Extra space in a jiffy
Extra space in a jiffy
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It’s a wonder sometimes how much clutter we keep in our house. As most Malaysian homeowners can attest, a tiny storeroom is just not enough space to keep all their belongings.
So, what do you do when you’re in dire need of a portable office, equipment room, extended wet kitchen, or an extra maid’s room? Hire a contractor to build you a small cabin? Not necessarily.
In Australia, homeowners set up their own garden sheds in the backyard to store things. The sheds also function as workshops to repair household items.
Now, Malaysians too can put up a multi-purpose garden shed in their backyards (or on the rooftop) too, thanks to Qb Products Sdn Bhd.
An office? A guardhouse? A makeshift room? Qb Sheds or Stores are practical solutions for various outdoor storage needs
“In Perth, Australia, every house has a garden shed in the backyard to store household stuff and gardening tools.
"Australian men, who are mostly good handymen, spend lots of time in these sheds that they also use as workshops,” says Qb Products sales manager Irene Tong.
Though you can assemble the garden shed yourself, Qb Products representatives can also do the job for you.
Qb Products makes and distributes multi-function storerooms, which come in various sizes to suit individual needs and serve as storage area for toys, bicycles, barbecue sets, gardening tools, household products, books or old newspapers.
Qb Products also makes shade sails which are ideal for various outdoor activities
Sizes vary from 5ft x 5ft x 7ft to 10ft x 10ft x 7ft; while the smaller Qb Cabinets (ideal for link houses, condos and apartments) range from 5ft x 33” x 7ft to 12.5 ft x 33” x 7ft.
Qb Sheds or Stores are made of strong metal sheets called aluminium alloy-zincalum with two layers of corrosion premium coating for anti-rust plus multi-layered paint. The sheets are oven-dried to prevent the paint from peeling and cracking.
These Colorbond steel sheets (available in variants of Ivory, Misty Green, Wheat and Zincalum) can withstand all types of weather and are corrosion resistant.
They also come with a five-year material warranty against any rust, peeling and cracking of the paint.
Optional windows and elevated platforms are available – to keep your mobile storeroom clean and dry, so you can store delicate items like household items, carpets or mattresses. How convenient!
For details, call 03-78033380 or drop by Qb Products’ new showroom factory at No. 9, Jalan PJU3/46, Sunway Damansara Technology Park, Petaling Jaya.
Qb Products also produces shade sail, HDPE lattice, 90% UV protection Coolaroo Blinds, and other products.
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It’s a wonder sometimes how much clutter we keep in our house. As most Malaysian homeowners can attest, a tiny storeroom is just not enough space to keep all their belongings.
So, what do you do when you’re in dire need of a portable office, equipment room, extended wet kitchen, or an extra maid’s room? Hire a contractor to build you a small cabin? Not necessarily.
In Australia, homeowners set up their own garden sheds in the backyard to store things. The sheds also function as workshops to repair household items.
Now, Malaysians too can put up a multi-purpose garden shed in their backyards (or on the rooftop) too, thanks to Qb Products Sdn Bhd.
An office? A guardhouse? A makeshift room? Qb Sheds or Stores are practical solutions for various outdoor storage needs
“In Perth, Australia, every house has a garden shed in the backyard to store household stuff and gardening tools.
"Australian men, who are mostly good handymen, spend lots of time in these sheds that they also use as workshops,” says Qb Products sales manager Irene Tong.
Though you can assemble the garden shed yourself, Qb Products representatives can also do the job for you.
Qb Products makes and distributes multi-function storerooms, which come in various sizes to suit individual needs and serve as storage area for toys, bicycles, barbecue sets, gardening tools, household products, books or old newspapers.
Qb Products also makes shade sails which are ideal for various outdoor activities
Sizes vary from 5ft x 5ft x 7ft to 10ft x 10ft x 7ft; while the smaller Qb Cabinets (ideal for link houses, condos and apartments) range from 5ft x 33” x 7ft to 12.5 ft x 33” x 7ft.
Qb Sheds or Stores are made of strong metal sheets called aluminium alloy-zincalum with two layers of corrosion premium coating for anti-rust plus multi-layered paint. The sheets are oven-dried to prevent the paint from peeling and cracking.
These Colorbond steel sheets (available in variants of Ivory, Misty Green, Wheat and Zincalum) can withstand all types of weather and are corrosion resistant.
They also come with a five-year material warranty against any rust, peeling and cracking of the paint.
Optional windows and elevated platforms are available – to keep your mobile storeroom clean and dry, so you can store delicate items like household items, carpets or mattresses. How convenient!
For details, call 03-78033380 or drop by Qb Products’ new showroom factory at No. 9, Jalan PJU3/46, Sunway Damansara Technology Park, Petaling Jaya.
Qb Products also produces shade sail, HDPE lattice, 90% UV protection Coolaroo Blinds, and other products.
Rising foreign interest
Rising foreign interest
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By ANGIE NG
FOREIGN institutional funds and investors are venturing into Malaysia in a bigger way to take advantage of the strong upside potential of the country's real estate market.
The Klang Valley, notably Kuala Lumpur, which has been the hotbed for property developers and investors, continues to attract substantial interests from foreigners.
Other regions include the Iskandar Development Region (IDR), which recently attracted multi-billion investments from the Gulf Cooperation Council (GCC) countries, and the Northern Economic Corridor.
Besides looking for good bargains in the commercial and high-end residential sectors, foreigners are also keen to undertake property development projects in strong growth regions.
Singaporean institutions such as the Government of Singapore Investment Corp (GIC) and CapitaLand Ltd, for the past decade, have made their way across the causeway and taken up equity stake in established property companies and also, ventured into property development in Malaysia.
In the past two years, the trend has also caught up with the Middle Easterns and Europeans.
Several recent major office transactions include Macquarie Global's purchase of Empire Tower, Crown Princess Hotel and City Square Shopping Centre in Kuala Lumpur for RM680mil, Injaz Mena Investment's purchase of Menara ING at RM495per sq ft (psf) and Injaz AsiaEquity's purchase of Kenanga International at RM555psf.
A survey by Real Estate and Housing Developers Association (Rehda) showed that enquiries from foreigners increased 13% in the second quarter of 2007.
SP Setia Bhd group managing director Tan Sri Liew Kee Sin said the recent spate of multi-billion investments by Middle Eastern consortiums in the property sector “is just the tip of the iceberg and is indicative of more exciting times to come.”
“The joint public-private sector initiative to market Malaysia globally is targeting to attract RM20bil in-flows of funds into the economy,” he added.
Liew said city centre real estate with integrated amenities under the same roof were popular, as foreigners tend to treat their properties as second home and holiday escapade.
Green-themed developments such as hill or beach resorts where residents can get close to nature and soak in the laid-back lifestyle are also catching up.
Established property developer Datuk C. K. Wong said Malaysia's strong development and economic growth had resulted in an upturn in its tourist, residential and commercial property markets.
Many international real estate investors are considering Malaysia as a highly lucrative option for three main reasons - well-priced property, strong economy for sustainable growth and good yields over the medium- to-long term.
“In the past two years, Middle Eastern investors had been coming into the country in a big way. Both their institutional and individual investors had invested close to RM5bil in real estate to-date.
“The recent announcement that they are investing another RM4.1bil in the IDR will make them the biggest real estate investor in the country, surpassing Singapore, which is said to have some RM5bil here,” Wong said.
The growing expatriate community, under Malaysia My Second Home (MM2H) or direct foreign investment in real estate, is also giving rise to demand for quality new accommodation in up-market central districts.
Mah Sing Group Bhd president Datuk Leong Hoy Kum said foreign real estate investment trusts (REITs), property funds and pension funds were driving interest in the local market.
With yields in certain countries below 4%, Kuala Lumpur's office assets - yielding 6% to 8% are very attractive, he said, adding that the sectors with the most appeal for international investors included residential, commercial and tourism-related properties.
Leong said foreign funds and investors from Singapore, Indonesia, Hong Kong, Japan, Australia, Europe, South Korea and the Middle East were going for medium to high-end gated and guarded residential projects, prime condominiums and service apartments in and around the Kuala Lumpur City Centre area, Grade A office towers in Kuala Lumpur's central business district, development land in the IDR and quality retail malls in major cities.
Echoing the strong foreign interest in the local market, Zerin Properties chief executive officer Previndran Singhe said: “We have seen major inflow of funds from the Middle East, Singapore, Hong Kong and recently Japan. I think recent acquisitions by CapitaLand and Maple Tree together with Kuwait Finance House's active acquisition mode is prove of the interest heating up.”
Generally, their interests are for niche residential, including luxury condominiums, gated bungalows and resort residences; and commercial properties like en-bloc offices, malls, hotels and warehouses with good tenants.
DTZ Nawawi Tie Leung executive director Brian Koh said while office sector had always been a favourite, retail and hotels, as well as high-end residential projects were increasingly growing popular.
“The amount of foreign investment continues to increase and international investment into the property sector in Malaysia is predicted to grow at unprecedented levels. Foreign investors are also more comfortable to undertake joint ventures with local developers, or underwrite projects financially,” Koh said.
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By ANGIE NG
FOREIGN institutional funds and investors are venturing into Malaysia in a bigger way to take advantage of the strong upside potential of the country's real estate market.
The Klang Valley, notably Kuala Lumpur, which has been the hotbed for property developers and investors, continues to attract substantial interests from foreigners.
Other regions include the Iskandar Development Region (IDR), which recently attracted multi-billion investments from the Gulf Cooperation Council (GCC) countries, and the Northern Economic Corridor.
Besides looking for good bargains in the commercial and high-end residential sectors, foreigners are also keen to undertake property development projects in strong growth regions.
Singaporean institutions such as the Government of Singapore Investment Corp (GIC) and CapitaLand Ltd, for the past decade, have made their way across the causeway and taken up equity stake in established property companies and also, ventured into property development in Malaysia.
In the past two years, the trend has also caught up with the Middle Easterns and Europeans.
Several recent major office transactions include Macquarie Global's purchase of Empire Tower, Crown Princess Hotel and City Square Shopping Centre in Kuala Lumpur for RM680mil, Injaz Mena Investment's purchase of Menara ING at RM495per sq ft (psf) and Injaz AsiaEquity's purchase of Kenanga International at RM555psf.
A survey by Real Estate and Housing Developers Association (Rehda) showed that enquiries from foreigners increased 13% in the second quarter of 2007.
SP Setia Bhd group managing director Tan Sri Liew Kee Sin said the recent spate of multi-billion investments by Middle Eastern consortiums in the property sector “is just the tip of the iceberg and is indicative of more exciting times to come.”
“The joint public-private sector initiative to market Malaysia globally is targeting to attract RM20bil in-flows of funds into the economy,” he added.
Liew said city centre real estate with integrated amenities under the same roof were popular, as foreigners tend to treat their properties as second home and holiday escapade.
Green-themed developments such as hill or beach resorts where residents can get close to nature and soak in the laid-back lifestyle are also catching up.
Established property developer Datuk C. K. Wong said Malaysia's strong development and economic growth had resulted in an upturn in its tourist, residential and commercial property markets.
Many international real estate investors are considering Malaysia as a highly lucrative option for three main reasons - well-priced property, strong economy for sustainable growth and good yields over the medium- to-long term.
“In the past two years, Middle Eastern investors had been coming into the country in a big way. Both their institutional and individual investors had invested close to RM5bil in real estate to-date.
“The recent announcement that they are investing another RM4.1bil in the IDR will make them the biggest real estate investor in the country, surpassing Singapore, which is said to have some RM5bil here,” Wong said.
The growing expatriate community, under Malaysia My Second Home (MM2H) or direct foreign investment in real estate, is also giving rise to demand for quality new accommodation in up-market central districts.
Mah Sing Group Bhd president Datuk Leong Hoy Kum said foreign real estate investment trusts (REITs), property funds and pension funds were driving interest in the local market.
With yields in certain countries below 4%, Kuala Lumpur's office assets - yielding 6% to 8% are very attractive, he said, adding that the sectors with the most appeal for international investors included residential, commercial and tourism-related properties.
Leong said foreign funds and investors from Singapore, Indonesia, Hong Kong, Japan, Australia, Europe, South Korea and the Middle East were going for medium to high-end gated and guarded residential projects, prime condominiums and service apartments in and around the Kuala Lumpur City Centre area, Grade A office towers in Kuala Lumpur's central business district, development land in the IDR and quality retail malls in major cities.
Echoing the strong foreign interest in the local market, Zerin Properties chief executive officer Previndran Singhe said: “We have seen major inflow of funds from the Middle East, Singapore, Hong Kong and recently Japan. I think recent acquisitions by CapitaLand and Maple Tree together with Kuwait Finance House's active acquisition mode is prove of the interest heating up.”
Generally, their interests are for niche residential, including luxury condominiums, gated bungalows and resort residences; and commercial properties like en-bloc offices, malls, hotels and warehouses with good tenants.
DTZ Nawawi Tie Leung executive director Brian Koh said while office sector had always been a favourite, retail and hotels, as well as high-end residential projects were increasingly growing popular.
“The amount of foreign investment continues to increase and international investment into the property sector in Malaysia is predicted to grow at unprecedented levels. Foreign investors are also more comfortable to undertake joint ventures with local developers, or underwrite projects financially,” Koh said.
SHL sees profit rising on strong take-up of projects
SHL sees profit rising on strong take-up of projects
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KUALA LUMPUR: SHL Consolidated Bhd sees improved profit for the current year ending March 31, 2008 (FY08) on strong take-up of its recently launched property projects outside Kuala Lumpur.
The group also expects to realise the bulk of its earnings from previously sold properties under the build-then-sell (BTS) concept.
“We see rising contribution from these ongoing projects in the coming quarters,” director Jack Wong told reporters after the group AGM yesterday.
In February, the group launched its maiden project Alam Budiman in Shah Alam, comprising 1,800 units of properties on a 150-acre mixed development township.
The project has a gross development value of RM430mil.
So far, a total 720 double-storey houses valued at RM250mil have been offered over two phases.
According to Wong, the first phase of 420 houses was 60% sold, while nearly half of the 300 units in the subsequent launch in late June was taken up.
To capture the growing demand for landed properties, SHL plans to start selling 150 double-storey terrace houses at its flagship development, Bandar Sungai Long, in Cheras.
The houses are priced from RM300,000.
“The response for both projects is encouraging so far,” Wong said.
Meanwhile, SHL owns 87 acres in Rasa north of Rawang in Selangor, which had been earmarked for future development.
In the more immediate term, the company has teamed up with Tan & Tan Developments Bhd to develop a high-end condominium project in Kuala Lumpur city centre.
For the year just ended, SHL registered a net profit of RM15.56mil, or 6.9 sen per share, on revenue of RM155mil.
It was the second consecutive annual decline since net earnings hit a record RM45.4mil, or 18.7 sen per share, in FY05.
But despite a slow start this year, net profit in the first quarter ended June 30 fell by almost half to RM3.5mil from RM6mil a year ago. It expects the earnings kicker for the year to come in during remaining quarters.
SHL adopts a BTS concept for its projects, which basically means that the company would only receive the bulk of the payment once the property is completed.
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KUALA LUMPUR: SHL Consolidated Bhd sees improved profit for the current year ending March 31, 2008 (FY08) on strong take-up of its recently launched property projects outside Kuala Lumpur.
The group also expects to realise the bulk of its earnings from previously sold properties under the build-then-sell (BTS) concept.
“We see rising contribution from these ongoing projects in the coming quarters,” director Jack Wong told reporters after the group AGM yesterday.
In February, the group launched its maiden project Alam Budiman in Shah Alam, comprising 1,800 units of properties on a 150-acre mixed development township.
The project has a gross development value of RM430mil.
So far, a total 720 double-storey houses valued at RM250mil have been offered over two phases.
According to Wong, the first phase of 420 houses was 60% sold, while nearly half of the 300 units in the subsequent launch in late June was taken up.
To capture the growing demand for landed properties, SHL plans to start selling 150 double-storey terrace houses at its flagship development, Bandar Sungai Long, in Cheras.
The houses are priced from RM300,000.
“The response for both projects is encouraging so far,” Wong said.
Meanwhile, SHL owns 87 acres in Rasa north of Rawang in Selangor, which had been earmarked for future development.
In the more immediate term, the company has teamed up with Tan & Tan Developments Bhd to develop a high-end condominium project in Kuala Lumpur city centre.
For the year just ended, SHL registered a net profit of RM15.56mil, or 6.9 sen per share, on revenue of RM155mil.
It was the second consecutive annual decline since net earnings hit a record RM45.4mil, or 18.7 sen per share, in FY05.
But despite a slow start this year, net profit in the first quarter ended June 30 fell by almost half to RM3.5mil from RM6mil a year ago. It expects the earnings kicker for the year to come in during remaining quarters.
SHL adopts a BTS concept for its projects, which basically means that the company would only receive the bulk of the payment once the property is completed.
Amanah Raya buys office tower for RM96m
Amanah Raya buys office tower for RM96m
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Agreement signed to lease building to Symphony House
KUALA LUMPUR: Amanah Raya Bhd (ARB) is acquiring a 13-storey office tower in Subang – another potential asset for its real estate investment trust (REIT) business – for RM96.5mil.
ARB yesterday signed a sale and purchase agreement with Puncakdana Sdn Bhd and also inked a 10-year-plus-five agreement to lease the tower to Symphony House Bhd.
Speaking at the signing ceremony, ARB director Datin Aminah Pit Abdul Raman said the office tower, Dana 13, had the potential to be injected into its REIT.
Due for completion by December, the tower will have a net lettable area of about 268,218 sq ft.
ARB’s REIT business is managed by its 70%-owned subsidiary AmanahRaya-JMF Asset Management Sdn Bhd.
Datin Aminah Pit Abd Raman with group managing director Datuk Ahmad Rodzi Pawanteh (third from left), Symphony House Bhd group chief officer Datuk Mohamed Azman Yahya (left) and PuncakDana Sdn Bhd managing director Mah Siew Sian (right). With them is ARB company secretary Zainul Abidin Ahmad (second from right).
AmanahRaya-JMF managing director Datuk Mohamed Azahari Kamil said Dana 13’s purchase was part of the acquisition trail to inject five new properties into its REIT, increasing the fund size to RM700mil by end-September from RM336mil currently.
“We hope to reach the RM1bil mark by year-end,” he said.
On Budget 2008, he said as a REIT player, the group expected the Government to reduce withholding tax so that REITs would appeal to more foreign investors.
When AmanahRaya REIT made its debut in February, 65% of the subscribers were foreign investors, he said, adding: “REIT managers should be allowed to invest in at least 10% to 20% of the net asset value of undeveloped properties.”
The group is currently managing, among others, the Holiday Villa in Alor Star, Holiday Villa Langkawi, Wisma Amanah Raya in Kuala Lumpur, Permanis factory in Bandar Baru Bangi, SEGi College and Wisma UEP in USJ, Wisma Amanah Raya in Bukit Damansara, and South City Plaza (Block A/B) in Seri Kembangan.
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Agreement signed to lease building to Symphony House
KUALA LUMPUR: Amanah Raya Bhd (ARB) is acquiring a 13-storey office tower in Subang – another potential asset for its real estate investment trust (REIT) business – for RM96.5mil.
ARB yesterday signed a sale and purchase agreement with Puncakdana Sdn Bhd and also inked a 10-year-plus-five agreement to lease the tower to Symphony House Bhd.
Speaking at the signing ceremony, ARB director Datin Aminah Pit Abdul Raman said the office tower, Dana 13, had the potential to be injected into its REIT.
Due for completion by December, the tower will have a net lettable area of about 268,218 sq ft.
ARB’s REIT business is managed by its 70%-owned subsidiary AmanahRaya-JMF Asset Management Sdn Bhd.
Datin Aminah Pit Abd Raman with group managing director Datuk Ahmad Rodzi Pawanteh (third from left), Symphony House Bhd group chief officer Datuk Mohamed Azman Yahya (left) and PuncakDana Sdn Bhd managing director Mah Siew Sian (right). With them is ARB company secretary Zainul Abidin Ahmad (second from right).
AmanahRaya-JMF managing director Datuk Mohamed Azahari Kamil said Dana 13’s purchase was part of the acquisition trail to inject five new properties into its REIT, increasing the fund size to RM700mil by end-September from RM336mil currently.
“We hope to reach the RM1bil mark by year-end,” he said.
On Budget 2008, he said as a REIT player, the group expected the Government to reduce withholding tax so that REITs would appeal to more foreign investors.
When AmanahRaya REIT made its debut in February, 65% of the subscribers were foreign investors, he said, adding: “REIT managers should be allowed to invest in at least 10% to 20% of the net asset value of undeveloped properties.”
The group is currently managing, among others, the Holiday Villa in Alor Star, Holiday Villa Langkawi, Wisma Amanah Raya in Kuala Lumpur, Permanis factory in Bandar Baru Bangi, SEGi College and Wisma UEP in USJ, Wisma Amanah Raya in Bukit Damansara, and South City Plaza (Block A/B) in Seri Kembangan.
Malaysian maximalism
Malaysian maximalism
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The living room resembles a reception hall in an “istana”. Note the golden trimmings and furnishings
By Johnni Wong
Photographs by Kamal Sellehuddin
Section 11 in Shah Alam is not your ordinary housing enclave and the owners of the luxury homes here represent some of the more elite members of society.
In fact, many of the owners – some of whom are retired politicians, senior government servants and entrepreneurs - have illustrious titles to their names.
One particular owner – who declined to be named - decided that his double-storey detached house needed something extra.
The prayer room is furnished with equally ornate decorative elements
With the help of three friends, the Datuk turned his house into an art gallery named Astana Warisan.
Here, elite collectors could gather to admire and perhaps acquire collectibles such as Victorian glassware, Malay silverware, Nyonyaware and memorabilia of Malaya.
The architecture of the corner house is contemporary vernacular style typical of the 1980s and early 1990s.
The land area is 2,880sq m (32,000sq ft) and the built-up space is about 900sq m (10,000sq ft).
The front doors open up to a covered terrace with a landscaped garden in front while the back of the house has a car porch with several luxury automobiles parked there.
An European style Chinese clock sits on top of a blackwood table inlaid with mother-of-pearl and Chinese marble in the Melaka Lounge. Note the cabinet of Nyonyaware porcelain
An ornate European style marble-top table matched with an equally grand chandelier greet the visitor, as one steps inside.
To the left of the entrance is the living room, decorated in the style of Malay palaces.
The room overwhelms with rich trimmings and furnishings fit for royalty. Not quite Versailles but the influence of the Louis XVI style is quite evident.
Vintage clocks and ornaments are placed around the living room.
An elaborately decorated cabinet showcases an assortment of vintage crystals, glassware and Victorian epergnes.
Next to the dining room is a prayer room intended for Muslim guests to fulfil their religious duties.
It is decorated with a diverse collection of Malay brassware, porcelain and silverware that reflect the Islamic influence.
The kitchen has been transformed into an interior that resembles an old warship.
Kebaya Room: Looks like it is the trend these days to collect the traditional sarong kebaya apparel
Displayed here is a remarkable collection of military collectibles including WWI and WWII helmets, weapons and even a complete set of Spanish armour.
Maritime artifacts such as clocks, compasses, sextons, telescopes and other items used by early sailors are kept here.
Melaka Lounge
Going upstairs, guests will notice the unusual staircase, built from wood salvaged from an old Malaccan house.
The Oriental Room looks as if it has been set for a period movie
Even the banisters were sourced from an old Malay palace.
The Melaka Lounge on the first floor has been decorated to reflect the Baba Nyonya taste of old Malacca.
Ornate blackwood furniture with mother-of-pearl inlay are displayed.
An antique cabinet is crammed with Nyonyaware porcelain.
The lounge is the common space that leads to the four bedrooms which have been given specific names to reflect the artifacts kept there.
The Penang Room is also known as the Kebaya Room.
The Colonial Room is decorated with teak furniture including a king-size bed, Art Deco cabinets, tables and chairs as well as a gramophone
Hundreds of kebaya apparel collected from Penang and Malacca are kept here together with vintage jewellery, batik and traditional Malay textiles.
The Colonial Room is decorated with mainly teak furniture including an elaborate bed, cabinets, tables and chairs.
These were typically used during the Colonial era by British planters, tin miners and administrative officers.
In the Oriental Room, the showpiece is a Chinese wedding bed complete with accessories.
The French Room is dominated by the elaborately decorated bed
Chinese furniture, ceramics and silverware are placed all around the room.
The French Room used to be the master bedroom.
It is decorated in the French Colonial style with furniture of European design made from Asian wood.
The heavy-set furniture includes a carved blackwood bed which purportedly costs more than RM100,000.
The Conference Room is actually part of an annexe and it houses artifacts and old photographs tracing the history of Malaysia.
Items are mainly from the era of the Federated Malay States, Malay Sultanates, the Straits Settlements and Malaya until 1957.
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The living room resembles a reception hall in an “istana”. Note the golden trimmings and furnishings
By Johnni Wong
Photographs by Kamal Sellehuddin
Section 11 in Shah Alam is not your ordinary housing enclave and the owners of the luxury homes here represent some of the more elite members of society.
In fact, many of the owners – some of whom are retired politicians, senior government servants and entrepreneurs - have illustrious titles to their names.
One particular owner – who declined to be named - decided that his double-storey detached house needed something extra.
The prayer room is furnished with equally ornate decorative elements
With the help of three friends, the Datuk turned his house into an art gallery named Astana Warisan.
Here, elite collectors could gather to admire and perhaps acquire collectibles such as Victorian glassware, Malay silverware, Nyonyaware and memorabilia of Malaya.
The architecture of the corner house is contemporary vernacular style typical of the 1980s and early 1990s.
The land area is 2,880sq m (32,000sq ft) and the built-up space is about 900sq m (10,000sq ft).
The front doors open up to a covered terrace with a landscaped garden in front while the back of the house has a car porch with several luxury automobiles parked there.
An European style Chinese clock sits on top of a blackwood table inlaid with mother-of-pearl and Chinese marble in the Melaka Lounge. Note the cabinet of Nyonyaware porcelain
An ornate European style marble-top table matched with an equally grand chandelier greet the visitor, as one steps inside.
To the left of the entrance is the living room, decorated in the style of Malay palaces.
The room overwhelms with rich trimmings and furnishings fit for royalty. Not quite Versailles but the influence of the Louis XVI style is quite evident.
Vintage clocks and ornaments are placed around the living room.
An elaborately decorated cabinet showcases an assortment of vintage crystals, glassware and Victorian epergnes.
Next to the dining room is a prayer room intended for Muslim guests to fulfil their religious duties.
It is decorated with a diverse collection of Malay brassware, porcelain and silverware that reflect the Islamic influence.
The kitchen has been transformed into an interior that resembles an old warship.
Kebaya Room: Looks like it is the trend these days to collect the traditional sarong kebaya apparel
Displayed here is a remarkable collection of military collectibles including WWI and WWII helmets, weapons and even a complete set of Spanish armour.
Maritime artifacts such as clocks, compasses, sextons, telescopes and other items used by early sailors are kept here.
Melaka Lounge
Going upstairs, guests will notice the unusual staircase, built from wood salvaged from an old Malaccan house.
The Oriental Room looks as if it has been set for a period movie
Even the banisters were sourced from an old Malay palace.
The Melaka Lounge on the first floor has been decorated to reflect the Baba Nyonya taste of old Malacca.
Ornate blackwood furniture with mother-of-pearl inlay are displayed.
An antique cabinet is crammed with Nyonyaware porcelain.
The lounge is the common space that leads to the four bedrooms which have been given specific names to reflect the artifacts kept there.
The Penang Room is also known as the Kebaya Room.
The Colonial Room is decorated with teak furniture including a king-size bed, Art Deco cabinets, tables and chairs as well as a gramophone
Hundreds of kebaya apparel collected from Penang and Malacca are kept here together with vintage jewellery, batik and traditional Malay textiles.
The Colonial Room is decorated with mainly teak furniture including an elaborate bed, cabinets, tables and chairs.
These were typically used during the Colonial era by British planters, tin miners and administrative officers.
In the Oriental Room, the showpiece is a Chinese wedding bed complete with accessories.
The French Room is dominated by the elaborately decorated bed
Chinese furniture, ceramics and silverware are placed all around the room.
The French Room used to be the master bedroom.
It is decorated in the French Colonial style with furniture of European design made from Asian wood.
The heavy-set furniture includes a carved blackwood bed which purportedly costs more than RM100,000.
The Conference Room is actually part of an annexe and it houses artifacts and old photographs tracing the history of Malaysia.
Items are mainly from the era of the Federated Malay States, Malay Sultanates, the Straits Settlements and Malaya until 1957.
SHL sees profit rising on strong take-up of projects
SHL sees profit rising on strong take-up of projects
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KUALA LUMPUR: SHL Consolidated Bhd sees improved profit for the current year ending March 31, 2008 (FY08) on strong take-up of its recently launched property projects outside Kuala Lumpur.
The group also expects to realise the bulk of its earnings from previously sold properties under the build-then-sell (BTS) concept.
“We see rising contribution from these ongoing projects in the coming quarters,” director Jack Wong told reporters after the group AGM yesterday.
In February, the group launched its maiden project Alam Budiman in Shah Alam, comprising 1,800 units of properties on a 150-acre mixed development township.
The project has a gross development value of RM430mil.
So far, a total 720 double-storey houses valued at RM250mil have been offered over two phases.
According to Wong, the first phase of 420 houses was 60% sold, while nearly half of the 300 units in the subsequent launch in late June was taken up.
To capture the growing demand for landed properties, SHL plans to start selling 150 double-storey terrace houses at its flagship development, Bandar Sungai Long, in Cheras.
The houses are priced from RM300,000.
“The response for both projects is encouraging so far,” Wong said.
Meanwhile, SHL owns 87 acres in Rasa north of Rawang in Selangor, which had been earmarked for future development.
In the more immediate term, the company has teamed up with Tan & Tan Developments Bhd to develop a high-end condominium project in Kuala Lumpur city centre.
For the year just ended, SHL registered a net profit of RM15.56mil, or 6.9 sen per share, on revenue of RM155mil.
It was the second consecutive annual decline since net earnings hit a record RM45.4mil, or 18.7 sen per share, in FY05.
But despite a slow start this year, net profit in the first quarter ended June 30 fell by almost half to RM3.5mil from RM6mil a year ago. It expects the earnings kicker for the year to come in during remaining quarters.
SHL adopts a BTS concept for its projects, which basically means that the company would only receive the bulk of the payment once the property is completed.
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KUALA LUMPUR: SHL Consolidated Bhd sees improved profit for the current year ending March 31, 2008 (FY08) on strong take-up of its recently launched property projects outside Kuala Lumpur.
The group also expects to realise the bulk of its earnings from previously sold properties under the build-then-sell (BTS) concept.
“We see rising contribution from these ongoing projects in the coming quarters,” director Jack Wong told reporters after the group AGM yesterday.
In February, the group launched its maiden project Alam Budiman in Shah Alam, comprising 1,800 units of properties on a 150-acre mixed development township.
The project has a gross development value of RM430mil.
So far, a total 720 double-storey houses valued at RM250mil have been offered over two phases.
According to Wong, the first phase of 420 houses was 60% sold, while nearly half of the 300 units in the subsequent launch in late June was taken up.
To capture the growing demand for landed properties, SHL plans to start selling 150 double-storey terrace houses at its flagship development, Bandar Sungai Long, in Cheras.
The houses are priced from RM300,000.
“The response for both projects is encouraging so far,” Wong said.
Meanwhile, SHL owns 87 acres in Rasa north of Rawang in Selangor, which had been earmarked for future development.
In the more immediate term, the company has teamed up with Tan & Tan Developments Bhd to develop a high-end condominium project in Kuala Lumpur city centre.
For the year just ended, SHL registered a net profit of RM15.56mil, or 6.9 sen per share, on revenue of RM155mil.
It was the second consecutive annual decline since net earnings hit a record RM45.4mil, or 18.7 sen per share, in FY05.
But despite a slow start this year, net profit in the first quarter ended June 30 fell by almost half to RM3.5mil from RM6mil a year ago. It expects the earnings kicker for the year to come in during remaining quarters.
SHL adopts a BTS concept for its projects, which basically means that the company would only receive the bulk of the payment once the property is completed.
No signs of slowdown
Have you been getting any indications, whether within your organisation or elsewhere in the industry, that the Singapore economy is entering a slowdown phase? How would a US economic slowdown affect Singapore and the region?
No signs of slowdown
Deb Dutta
Vice-President, Asia Pacific & Japan,
BROCADE
BULL and bear markets will always be part of macroeconomic cycles. What will be interesting to note would be whether the gap between the peaks and troughs will narrow over time as markets become more elastic due to a new set of parameters that are not necessarily related to the US and western Europe. The current sub-prime crisis in the US spread rapidly to Europe but thankfully did not significantly impact Asia, other than a few very jittery weeks.
While the rebound is not yet here, Asian financial markets have largely stabilised. Net-net, we should be happy that with the emergence of the financial muscle of China and India, the relative stability of Japan and the maturity of Singapore and Hong Kong, Asia now seems able to sustain macroeconomic shocks without buckling under. I am confident that this position will further strengthen over time.
The Asia Pacific and Japan tech sector has been robust through 2007. IDC forecasts technology spending in Asia Pacific to reach an estimated US$1.48 trillion by 2010. As organisations set up shop and expand and as business requirements continue to grow in size, spread and criticality, organisations will continue to invest in technology just to stay relevant in the 21st business world. The winners will have to do even better!
Eugene Wong
Managing Director,
Sirius Venture Consulting
OUR economy is now much more robust than it was during the Asian crisis as Singapore has a growing SME base, which is less dependent on export but has direct business dealings in China, India and the rest of Asia in addition to export to the US. So, any global slowdown would not affect Singapore SMEs much. In my area of business, which is in venture consulting and investments, any healthy correction or slowdown is good for us as it means that entrepreneurs’ expectations are back to realistic levels.
Tom Cheong
Managing Director, Singapore and Brunei,
Cisco
IN HIS comments following the recent announcement of Cisco’s Q4 and FY07 earnings, chairman and CEO John Chambers said that the quarter was the strongest one that the company has seen from a balanced product, geographic and customer segment perspective for many years. Elaborating, he said that growth was taking place throughout the world, unlike in previous boom years, when growth wasn’t so geographically balanced. The economic fundamentals in Singapore remain strong and with major projects such as the Next-Generation National Broadband Network and the integrated resorts, the future looks assured. The ICT build-out under iN2015 and Infocomm Development Authority of Singapore’s (IDA) leadership is going to be particularly crucial.
Globally, we are seeing what Cisco calls the second phase of Internet development, where Web 2.0 technologies and other collaboration tools are generating dramatic innovation and productivity increases.
Douglas Miller
Chairman,
The American Chamber of Commerce in Singapore
AMCHAM Singapore has not received any indications from its members that the Singapore economy is entering a slowdown phase. Many firms report very positively on their businesses’ growth in 2007.
If a US economic slowdown were to occur, while it would have some impact on Singapore and the region, it would be less than in previous years, given the much stronger economic and trade relationship among Asean, China, and India.
Liu Chunlin
Managing Director,
K&C Protective Technologies Pte Ltd
AS WE are dealing with the real estate and construction industry, we are not seeing a slowdown yet as there is a time lag between decision-making and the launch of a prospect. And there are quite a number of projects already on-stream.
A US slowdown would affect sentiment and there may be fewer projects after the current wave of building which is expected to last until the opening of the integrated resorts at end 2009 and early 2010.
For our business, which is in the security protective area, we are optimistic of continuing growth as there is demand both from new build and retrofit projects.
Erman Tan
CEO,
Asia Polyurethane Mfg
THE Singapore economy is currently facing fierce competition from other Asian countries that offer lower labour, operational and business costs. Undoubtedly, the US economy has a huge impact on Singapore’s economic performance. Being a small and open economy, Singapore’s growth is highly dependent on many factors such as the performance of the US and Asian economies, as well as global economic development.
Singapore has already developed new engines of growth, by establishing extensive business and trade links with other countries, such as the Middle East, China and India. The Free Trade Agreements (FTA) that Singapore has already established with countries such as India, the US, Japan and South Korea, have greatly facilitated the flow of trade and investment between Singapore and our trading partners.
This has, in turn, brought about closer economic cooperation between Singapore and our FTA trading partners. Last but not least, FTAs have also helped buffer Singapore’s economy from volatility in the global economy. I am generally upbeat about Singapore’s long-term economic growth. As such, I don’t see a slowdown for the Singapore economy, which should remain buoyant and robust in the next few years.
Tan Ser Giam
Chairman,
Eastern Navigation
THE marine, oil and gas industry does not appear to be heading for any significant slowdown. Orders for ships are still buoyant and the demand for offshore support vessels for the oil industry appears strong. In America, signs of a weakening economy and expected slower demand for Asian goods will see Singapore’s industrial exports decreasing.
But the momentum set by the integrated resorts and property upswing will continue to move the Singapore economy forward and will mitigate the expected slowdown and possible recession in the US. Singapore will see slower growth due to US problems but it is now less reliant on the US economy. As long as the Chinese, Indian and Vietnamese economies continue to grow, Singapore should be buffered against any dramatic slowdown and will remain positive.
Ross Wilson
Managing Director, Consumer Products
and Services, Apac region,
Trend Micro (Singapore)
I HAVEN’T personally witnessed any slowdown. A US slowdown would certainly affect a global hub like Singapore but, fortunately, Singapore has other markets in addition to the US to do business with. There is a lot of discussion as to why the sub-prime fiasco, the credit squeeze, rising oil prices and a hundred other things will affect us. They are all part and parcel of doing business. By all means take them into account when planning the future direction of your company’s growth, but don’t use them as an excuse for not trying!
Expect minimal impact
Derek Goh
Executive Chairman/Group CEO,
Serial System Ltd
THE official government forecast for the year remains rosy despite the recent US financial turbulence. The Singapore economy is fast diversifying and seems steady for the rest of 2007. Thus, there are no noticeable trends on the horizon to indicate any imminent slowdown. Nevertheless, we should not be resting on our laurels. The US economy may go on a roller-coaster again by year’s end.
Any major US slowdown will have an impact on Singapore and our Asian neighbours. Our exports to the US market will be affected. This will slow our manufacturing sector which employs a large segment of the workforce. Any outflow of capital will also slow the growth of our financial market.
Next year will be a year to watch as the US heads for its Presidential elections in November while China hosts the Beijing Olympics in August.
Wee Piew
CEO,
HG Metal Manufacturing
While confidence may be affected by the recent slide in global stock markets, I believe the fundamentals of the Singapore economy remain intact. Prime Minister Lee Hsien Loong, in his recent National Day rally speech, has raised the country’s long-term growth rates. There will be a temporary dent in investors’ confidence but the re-inventing of Singapore will continue. The construction of the integrated resorts is not stopping just because of a down swing in the stock markets. The development of Singapore as a wealth management hub and a magnet for high net worth individuals will also be unaffected by recent developments.
For the steel industry, demand for steel remains strong. There is no sign of developers and construction companies delaying their projects. Shipyards are still getting new contracts to build ships. In fact, prices for steel products are holding up or even rising, indicating the strong underlying demand for steel products.
Even if the US economy does actually slow down, I believe it will not affect Singapore and the region as badly as it did in the past. This is because Singapore’s economy is now more connected to the booming Asian economies like China and India and less reliant on the US economy alone.
Goh Chong Theng
General manager, Singapore,
Rabobank International
OUR clients in the energy, commodities, telecommunications and marine/logistics sectors tell us that their industries are still doing well. So I don’t think that the Singapore economy is entering a slowdown phase. In fact, I think some of these sectors are booming!
Many of the sectors in Singapore and the region are booming because of two very powerful, intertwined economic dynamos in Asia, namely, China and India. Their rapid industrialisation and the growing global market for their exports have increased demand for metals, fossil fuels and other materials.
Due to globalisation, raw materials and manufactured exports must be shipped between many countries. This has created numerous business opportunities for marine and logistics firms, and has thus increased demand for heavy engineering projects, ships, oil rigs, aeroplanes and other forms of capex.
Having said that, the US is still Singapore’s largest trading partner and it is also a substantial consumer of Chinese and Indian exports. As such, a slowdown in the US will lead to an economic downturn throughout Asia. However, the impact on Singapore and the region can be greatly limited if the European and Japanese economies remain healthy, and if China and India dip into their vast forex reserves for sustenance while the US economy recovers.
Downturn cannot be ruled out
Richard Chua
Managing Director,
Yusen Air @ Sea Service (S)
THE main markets for our company are the electronics/OA equipment industry and the automotive industry. Since the beginning of this year, the world electronics industry has slowed down drastically, as evidenced in the Singapore non-oil export of electronics products. The volume of such products handled by our company has dropped by over 15 per cent compared to a year ago, and the industry has not seen any recovery so far.
Pockets of opportunities arise, like the Rugby Australian Cup at the end of this year, while the Beijing Olympic 2008 will definitely stimulate consumer consumption and expand the economy further. However, a slowdown in the US or a dent in consumer sentiment, coupled with the financial market down cycle, would definitely pull down Singapore’s economy at this juncture.
Lim Soon Hock
Managing Director,
Plan-B Icag Pte Ltd
DESPITE the problems of the sub-prime market in the US, the Singapore economy appears to be on course and not entering a slowdown, as yet. This could be due to the momentum generated in the earlier quarters.
The problems of the sub-prime market will hit our shores. Financial markets today are complex and interconnected and I would not rule out other financial institutions, such as hedge funds and asset management companies, facing some problems arising from the non-performing collaterised debt obligations.
The economic slowdown in the US is already happening and the momentum which Singapore currently enjoys, in all probability, will not last for more than two quarters. Singapore and the region will likely experience an economic downturn in 2008, with the manufacturing and services sectors more severely hit. This won’t be due to a lack of strong economic fundamentals, which Singapore has, but more to an imminent deterioration of global economic health. Companies will do well to brace themselves for this eventuality.
Poh Mui Hoon
CEO,
NETS
DESPITE the recent market correction and the repercussions from the US sub-prime mortgage crisis, fundamentals for the Singapore economy remain sound, as acknowledged by various market watchers. While an imminent economic slowdown here is not impossible, it is unlikely to be prolonged as the introduction of Formula One racing and the two integrated resorts over the next few years will be an impetus to growth.
A US economic slowdown, on the other hand, will inevitably affect export-driven industries in Singapore and in the region, though the government’s move to reduce Singapore’s reliance on the electronics sector will lessen the impact here.
Under the NETS group’s regionalisation strategy, we have factored in such economic developments in our expansion plans at home and abroad. These will, however, have minimal impact on NETS’ long-term vision to be the integrated payment gateway of Asia.
We will weather the storm
Wong Teek Son
Executive Chairman and CEO,
Riverstone Holdings Ltd
THE US continues to be the largest economy in the world and has an impact for most businesses wanting to have a piece of the economic action. This is especially so for the electronics sector.
Riverstone, Asia’s leading manufacturer of high tech cleanroom gloves, produces a component that is needed at the electronics manufacturing chain. Since early this year, the hard disk drive and the semiconductor sector in the US and the rest of the world did show signs of weakness. But as we head towards the end of the year, we believe upstream and downstream players in the electronics industry will enjoy a more positive outlook, with the US economy aiding this upturn.
Annie Yap
CEO,
The GMP Group
WITH insight into recruitment trends from various industries, GMP has an indirect but unique vantage point of the health of the economy. Recruitment, especially for permanent placements and long-term contracts, reflects a broader sense of healthy activity because of its function as an expansionary investment. As a general overview, the talent squeeze and the consistent hiring indicate companies are not cutting back despite the recent turbulence from the west.
The current US crisis is undoubtedly making waves in our region, as stocks and shares continue to take a beating. However, in his National Day Rally speech, Prime Minister Lee Hsien Loong relayed a positive projection. He highlighted that the underlying fundamentals and infrastructure supporting the economy are strong and intact. In the same tone, I believe that with our eggs in many baskets, Singapore will be resilient enough to weather this slight setback.
Benjamin Low
Managing Director, SE Asia, India,
Secure Computing
SECURE computing has seen tremendous growth in Asia over the past year and we do not foresee a decline happening anytime soon. We have forged long-term relationships with our customers and are viewed as strategic partners, versus a mere security solutions supplier.
While the US market is currently experiencing some hiccups with their subprime loans, I believe it will be able to bounce back quickly. The advantage of being an open economy such as the US is its ability to correct itself and weed out the weak companies quickly.
On the Singapore front, I believe our strong financial sector will be able to weather the storm caused by the US subprime woes, without much disruption.
The US import-centric market will take a dip if their economic slowdown persists. Asian countries, such as Singapore, who are heavily dependent on exports, may be affected. However, Asian countries have been working towards better financial transparency and stronger corporate governance in the region. This, coupled with our ability to be interdependent, through the promotion of cross trade and strengthening bilateral ties during the economic boom, will help keep us afloat during the uncertain times ahead.
Lindsay Mann
Regional head, Asia,
First State Investments
Singapore’s macro environment appears healthy and the government’s long-term master plan is unlikely to be derailed by current events in global financial markets. However, the global credit crisis sees us in uncharted waters. Things may get worse before they get better, impacting some of the drivers of Singapore’s growth, particularly the financial services sector. This could affect employment with flow on effects on office and residential rents.
What’s encouraging is that Singaporeans are not highly leveraged and corporations have strong balance sheets. We are confident that the Singapore economy will weather this storm and continue to achieve strong growth. Our own Singapore business continues to achieve profit growth on the back of continuing growth in savings by Singapore investors. Despite the recent market volatility, Singaporeans continue to add to their investments, taking advantage of drops in the market to buy assets at cheaper prices.
Watch out
Ng Kong Yeam
Group Executive Chairman,
Sino-America Tours Corporation
IN THE travel business, it is true that the pace did flag in Q2 this year. However, heading into Q3, revenues for the sector are still positive and healthy. I do not think that is just a blip.
The tremendous rise in the price of properties is more a peak of the property sector than the general economy. With the new focus on making Singapore a financial and tourist centre, the economy will continue to grow at no less than 7-8 per cent. Singapore, despite its size, is the 10th largest trading partner of the US. Hence, any slowdown there will definitely affect our growth. It is perhaps time to increase trade with Europe, China and India to ensure that our economic growth continues.
Seamus O’brien
President & CEO,
World Sport Group
YOU would have to be living on Mars not to have read about the jitters emanating from the US housing sector. It is often too easy for business leaders (and even governments) to overlook how important housing is to a successful society and a successful economy. It could be argued that one of the pillars of Singapore’s success was establishing good housing for its citizens many decades ago.
Turning to the current day, I doubt there is a business manager in Singapore that has not had at least one member of staff come into their office extremely distressed about the current housing market in Singapore and how they can no longer afford the rental demands of landlords and are struggling to make ends meet.
This is a real problem and in my view perhaps the single biggest issue affecting Singapore’s burgeoning service sector. The result is that wages have to go up so that staff can simply afford to live. The end result of that is that Singapore becomes less competitive in the global economy.
I am all for free trade and letting market forces set a natural market price. However, what has gone on in the Singapore housing market over the past 12 months, perhaps the key supplier to the burgeoning service industry, is not natural. Singapore simply cannot sustain 100 per cent rent increases (as I have regularly seeen my staff suffer in recent months), let alone a 50 per cent rise. The time has probably come where this needs to be regulated otherwise we risk losing the unique competitive advantage that Singapore has.
A US economic slowdown triggered in the housing industry would obviously affect Singapore.
No signs of slowdown
Deb Dutta
Vice-President, Asia Pacific & Japan,
BROCADE
BULL and bear markets will always be part of macroeconomic cycles. What will be interesting to note would be whether the gap between the peaks and troughs will narrow over time as markets become more elastic due to a new set of parameters that are not necessarily related to the US and western Europe. The current sub-prime crisis in the US spread rapidly to Europe but thankfully did not significantly impact Asia, other than a few very jittery weeks.
While the rebound is not yet here, Asian financial markets have largely stabilised. Net-net, we should be happy that with the emergence of the financial muscle of China and India, the relative stability of Japan and the maturity of Singapore and Hong Kong, Asia now seems able to sustain macroeconomic shocks without buckling under. I am confident that this position will further strengthen over time.
The Asia Pacific and Japan tech sector has been robust through 2007. IDC forecasts technology spending in Asia Pacific to reach an estimated US$1.48 trillion by 2010. As organisations set up shop and expand and as business requirements continue to grow in size, spread and criticality, organisations will continue to invest in technology just to stay relevant in the 21st business world. The winners will have to do even better!
Eugene Wong
Managing Director,
Sirius Venture Consulting
OUR economy is now much more robust than it was during the Asian crisis as Singapore has a growing SME base, which is less dependent on export but has direct business dealings in China, India and the rest of Asia in addition to export to the US. So, any global slowdown would not affect Singapore SMEs much. In my area of business, which is in venture consulting and investments, any healthy correction or slowdown is good for us as it means that entrepreneurs’ expectations are back to realistic levels.
Tom Cheong
Managing Director, Singapore and Brunei,
Cisco
IN HIS comments following the recent announcement of Cisco’s Q4 and FY07 earnings, chairman and CEO John Chambers said that the quarter was the strongest one that the company has seen from a balanced product, geographic and customer segment perspective for many years. Elaborating, he said that growth was taking place throughout the world, unlike in previous boom years, when growth wasn’t so geographically balanced. The economic fundamentals in Singapore remain strong and with major projects such as the Next-Generation National Broadband Network and the integrated resorts, the future looks assured. The ICT build-out under iN2015 and Infocomm Development Authority of Singapore’s (IDA) leadership is going to be particularly crucial.
Globally, we are seeing what Cisco calls the second phase of Internet development, where Web 2.0 technologies and other collaboration tools are generating dramatic innovation and productivity increases.
Douglas Miller
Chairman,
The American Chamber of Commerce in Singapore
AMCHAM Singapore has not received any indications from its members that the Singapore economy is entering a slowdown phase. Many firms report very positively on their businesses’ growth in 2007.
If a US economic slowdown were to occur, while it would have some impact on Singapore and the region, it would be less than in previous years, given the much stronger economic and trade relationship among Asean, China, and India.
Liu Chunlin
Managing Director,
K&C Protective Technologies Pte Ltd
AS WE are dealing with the real estate and construction industry, we are not seeing a slowdown yet as there is a time lag between decision-making and the launch of a prospect. And there are quite a number of projects already on-stream.
A US slowdown would affect sentiment and there may be fewer projects after the current wave of building which is expected to last until the opening of the integrated resorts at end 2009 and early 2010.
For our business, which is in the security protective area, we are optimistic of continuing growth as there is demand both from new build and retrofit projects.
Erman Tan
CEO,
Asia Polyurethane Mfg
THE Singapore economy is currently facing fierce competition from other Asian countries that offer lower labour, operational and business costs. Undoubtedly, the US economy has a huge impact on Singapore’s economic performance. Being a small and open economy, Singapore’s growth is highly dependent on many factors such as the performance of the US and Asian economies, as well as global economic development.
Singapore has already developed new engines of growth, by establishing extensive business and trade links with other countries, such as the Middle East, China and India. The Free Trade Agreements (FTA) that Singapore has already established with countries such as India, the US, Japan and South Korea, have greatly facilitated the flow of trade and investment between Singapore and our trading partners.
This has, in turn, brought about closer economic cooperation between Singapore and our FTA trading partners. Last but not least, FTAs have also helped buffer Singapore’s economy from volatility in the global economy. I am generally upbeat about Singapore’s long-term economic growth. As such, I don’t see a slowdown for the Singapore economy, which should remain buoyant and robust in the next few years.
Tan Ser Giam
Chairman,
Eastern Navigation
THE marine, oil and gas industry does not appear to be heading for any significant slowdown. Orders for ships are still buoyant and the demand for offshore support vessels for the oil industry appears strong. In America, signs of a weakening economy and expected slower demand for Asian goods will see Singapore’s industrial exports decreasing.
But the momentum set by the integrated resorts and property upswing will continue to move the Singapore economy forward and will mitigate the expected slowdown and possible recession in the US. Singapore will see slower growth due to US problems but it is now less reliant on the US economy. As long as the Chinese, Indian and Vietnamese economies continue to grow, Singapore should be buffered against any dramatic slowdown and will remain positive.
Ross Wilson
Managing Director, Consumer Products
and Services, Apac region,
Trend Micro (Singapore)
I HAVEN’T personally witnessed any slowdown. A US slowdown would certainly affect a global hub like Singapore but, fortunately, Singapore has other markets in addition to the US to do business with. There is a lot of discussion as to why the sub-prime fiasco, the credit squeeze, rising oil prices and a hundred other things will affect us. They are all part and parcel of doing business. By all means take them into account when planning the future direction of your company’s growth, but don’t use them as an excuse for not trying!
Expect minimal impact
Derek Goh
Executive Chairman/Group CEO,
Serial System Ltd
THE official government forecast for the year remains rosy despite the recent US financial turbulence. The Singapore economy is fast diversifying and seems steady for the rest of 2007. Thus, there are no noticeable trends on the horizon to indicate any imminent slowdown. Nevertheless, we should not be resting on our laurels. The US economy may go on a roller-coaster again by year’s end.
Any major US slowdown will have an impact on Singapore and our Asian neighbours. Our exports to the US market will be affected. This will slow our manufacturing sector which employs a large segment of the workforce. Any outflow of capital will also slow the growth of our financial market.
Next year will be a year to watch as the US heads for its Presidential elections in November while China hosts the Beijing Olympics in August.
Wee Piew
CEO,
HG Metal Manufacturing
While confidence may be affected by the recent slide in global stock markets, I believe the fundamentals of the Singapore economy remain intact. Prime Minister Lee Hsien Loong, in his recent National Day rally speech, has raised the country’s long-term growth rates. There will be a temporary dent in investors’ confidence but the re-inventing of Singapore will continue. The construction of the integrated resorts is not stopping just because of a down swing in the stock markets. The development of Singapore as a wealth management hub and a magnet for high net worth individuals will also be unaffected by recent developments.
For the steel industry, demand for steel remains strong. There is no sign of developers and construction companies delaying their projects. Shipyards are still getting new contracts to build ships. In fact, prices for steel products are holding up or even rising, indicating the strong underlying demand for steel products.
Even if the US economy does actually slow down, I believe it will not affect Singapore and the region as badly as it did in the past. This is because Singapore’s economy is now more connected to the booming Asian economies like China and India and less reliant on the US economy alone.
Goh Chong Theng
General manager, Singapore,
Rabobank International
OUR clients in the energy, commodities, telecommunications and marine/logistics sectors tell us that their industries are still doing well. So I don’t think that the Singapore economy is entering a slowdown phase. In fact, I think some of these sectors are booming!
Many of the sectors in Singapore and the region are booming because of two very powerful, intertwined economic dynamos in Asia, namely, China and India. Their rapid industrialisation and the growing global market for their exports have increased demand for metals, fossil fuels and other materials.
Due to globalisation, raw materials and manufactured exports must be shipped between many countries. This has created numerous business opportunities for marine and logistics firms, and has thus increased demand for heavy engineering projects, ships, oil rigs, aeroplanes and other forms of capex.
Having said that, the US is still Singapore’s largest trading partner and it is also a substantial consumer of Chinese and Indian exports. As such, a slowdown in the US will lead to an economic downturn throughout Asia. However, the impact on Singapore and the region can be greatly limited if the European and Japanese economies remain healthy, and if China and India dip into their vast forex reserves for sustenance while the US economy recovers.
Downturn cannot be ruled out
Richard Chua
Managing Director,
Yusen Air @ Sea Service (S)
THE main markets for our company are the electronics/OA equipment industry and the automotive industry. Since the beginning of this year, the world electronics industry has slowed down drastically, as evidenced in the Singapore non-oil export of electronics products. The volume of such products handled by our company has dropped by over 15 per cent compared to a year ago, and the industry has not seen any recovery so far.
Pockets of opportunities arise, like the Rugby Australian Cup at the end of this year, while the Beijing Olympic 2008 will definitely stimulate consumer consumption and expand the economy further. However, a slowdown in the US or a dent in consumer sentiment, coupled with the financial market down cycle, would definitely pull down Singapore’s economy at this juncture.
Lim Soon Hock
Managing Director,
Plan-B Icag Pte Ltd
DESPITE the problems of the sub-prime market in the US, the Singapore economy appears to be on course and not entering a slowdown, as yet. This could be due to the momentum generated in the earlier quarters.
The problems of the sub-prime market will hit our shores. Financial markets today are complex and interconnected and I would not rule out other financial institutions, such as hedge funds and asset management companies, facing some problems arising from the non-performing collaterised debt obligations.
The economic slowdown in the US is already happening and the momentum which Singapore currently enjoys, in all probability, will not last for more than two quarters. Singapore and the region will likely experience an economic downturn in 2008, with the manufacturing and services sectors more severely hit. This won’t be due to a lack of strong economic fundamentals, which Singapore has, but more to an imminent deterioration of global economic health. Companies will do well to brace themselves for this eventuality.
Poh Mui Hoon
CEO,
NETS
DESPITE the recent market correction and the repercussions from the US sub-prime mortgage crisis, fundamentals for the Singapore economy remain sound, as acknowledged by various market watchers. While an imminent economic slowdown here is not impossible, it is unlikely to be prolonged as the introduction of Formula One racing and the two integrated resorts over the next few years will be an impetus to growth.
A US economic slowdown, on the other hand, will inevitably affect export-driven industries in Singapore and in the region, though the government’s move to reduce Singapore’s reliance on the electronics sector will lessen the impact here.
Under the NETS group’s regionalisation strategy, we have factored in such economic developments in our expansion plans at home and abroad. These will, however, have minimal impact on NETS’ long-term vision to be the integrated payment gateway of Asia.
We will weather the storm
Wong Teek Son
Executive Chairman and CEO,
Riverstone Holdings Ltd
THE US continues to be the largest economy in the world and has an impact for most businesses wanting to have a piece of the economic action. This is especially so for the electronics sector.
Riverstone, Asia’s leading manufacturer of high tech cleanroom gloves, produces a component that is needed at the electronics manufacturing chain. Since early this year, the hard disk drive and the semiconductor sector in the US and the rest of the world did show signs of weakness. But as we head towards the end of the year, we believe upstream and downstream players in the electronics industry will enjoy a more positive outlook, with the US economy aiding this upturn.
Annie Yap
CEO,
The GMP Group
WITH insight into recruitment trends from various industries, GMP has an indirect but unique vantage point of the health of the economy. Recruitment, especially for permanent placements and long-term contracts, reflects a broader sense of healthy activity because of its function as an expansionary investment. As a general overview, the talent squeeze and the consistent hiring indicate companies are not cutting back despite the recent turbulence from the west.
The current US crisis is undoubtedly making waves in our region, as stocks and shares continue to take a beating. However, in his National Day Rally speech, Prime Minister Lee Hsien Loong relayed a positive projection. He highlighted that the underlying fundamentals and infrastructure supporting the economy are strong and intact. In the same tone, I believe that with our eggs in many baskets, Singapore will be resilient enough to weather this slight setback.
Benjamin Low
Managing Director, SE Asia, India,
Secure Computing
SECURE computing has seen tremendous growth in Asia over the past year and we do not foresee a decline happening anytime soon. We have forged long-term relationships with our customers and are viewed as strategic partners, versus a mere security solutions supplier.
While the US market is currently experiencing some hiccups with their subprime loans, I believe it will be able to bounce back quickly. The advantage of being an open economy such as the US is its ability to correct itself and weed out the weak companies quickly.
On the Singapore front, I believe our strong financial sector will be able to weather the storm caused by the US subprime woes, without much disruption.
The US import-centric market will take a dip if their economic slowdown persists. Asian countries, such as Singapore, who are heavily dependent on exports, may be affected. However, Asian countries have been working towards better financial transparency and stronger corporate governance in the region. This, coupled with our ability to be interdependent, through the promotion of cross trade and strengthening bilateral ties during the economic boom, will help keep us afloat during the uncertain times ahead.
Lindsay Mann
Regional head, Asia,
First State Investments
Singapore’s macro environment appears healthy and the government’s long-term master plan is unlikely to be derailed by current events in global financial markets. However, the global credit crisis sees us in uncharted waters. Things may get worse before they get better, impacting some of the drivers of Singapore’s growth, particularly the financial services sector. This could affect employment with flow on effects on office and residential rents.
What’s encouraging is that Singaporeans are not highly leveraged and corporations have strong balance sheets. We are confident that the Singapore economy will weather this storm and continue to achieve strong growth. Our own Singapore business continues to achieve profit growth on the back of continuing growth in savings by Singapore investors. Despite the recent market volatility, Singaporeans continue to add to their investments, taking advantage of drops in the market to buy assets at cheaper prices.
Watch out
Ng Kong Yeam
Group Executive Chairman,
Sino-America Tours Corporation
IN THE travel business, it is true that the pace did flag in Q2 this year. However, heading into Q3, revenues for the sector are still positive and healthy. I do not think that is just a blip.
The tremendous rise in the price of properties is more a peak of the property sector than the general economy. With the new focus on making Singapore a financial and tourist centre, the economy will continue to grow at no less than 7-8 per cent. Singapore, despite its size, is the 10th largest trading partner of the US. Hence, any slowdown there will definitely affect our growth. It is perhaps time to increase trade with Europe, China and India to ensure that our economic growth continues.
Seamus O’brien
President & CEO,
World Sport Group
YOU would have to be living on Mars not to have read about the jitters emanating from the US housing sector. It is often too easy for business leaders (and even governments) to overlook how important housing is to a successful society and a successful economy. It could be argued that one of the pillars of Singapore’s success was establishing good housing for its citizens many decades ago.
Turning to the current day, I doubt there is a business manager in Singapore that has not had at least one member of staff come into their office extremely distressed about the current housing market in Singapore and how they can no longer afford the rental demands of landlords and are struggling to make ends meet.
This is a real problem and in my view perhaps the single biggest issue affecting Singapore’s burgeoning service sector. The result is that wages have to go up so that staff can simply afford to live. The end result of that is that Singapore becomes less competitive in the global economy.
I am all for free trade and letting market forces set a natural market price. However, what has gone on in the Singapore housing market over the past 12 months, perhaps the key supplier to the burgeoning service industry, is not natural. Singapore simply cannot sustain 100 per cent rent increases (as I have regularly seeen my staff suffer in recent months), let alone a 50 per cent rise. The time has probably come where this needs to be regulated otherwise we risk losing the unique competitive advantage that Singapore has.
A US economic slowdown triggered in the housing industry would obviously affect Singapore.
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