THE Housing and Development Board is inviting tenders for a 14,000 sq m condominium housing site at Elias Road in Pasir Ris.
The HDB is selling the land under the Confirmed List of the Government Land Sales Programme.
The maximum gross floor area for the 99-year parcel is 42,378.9 sq m.
Tender closes on Dec 18.
In late July, the HDB offered a 6,000 sq m condo site in Ang Mo Kio Ave 8 under the Reserve List System.
The land which is near Ang Mo Kio Hub was bidded for a record $202.9 million or $601 psf by Far East Organisation.
Far East's break-even cost is estimated to be around $900 to $1,000 psf, which means apartments will likely be priced at a record $1,000 to $1,200 psf.
Friday, October 26, 2007
PARAGON Shopping Centre has clinched two awards in Shopping Centre Scorecard, an annual national industry rating scheme which recognises well-run mall
PARAGON Shopping Centre has clinched two awards in Shopping Centre Scorecard, an annual national industry rating scheme which recognises well-run malls in Singapore.
Paragon, which is fully owned by Singapore Press Holdings Ltd (SPH), emerged tops in two of the three categories - best efforts in advertising & promotions and tenant relationships.
The results were based on votes by retailers. The contest is organised by the Singapore Retailers Association.
This is the second year the mall has won the Shopping Centre Scorecard. Last year, it won for best efforts in maintaining its premises, the third category.
Paragon, which now enjoys full occupancy, is positioned as an upscale fashion and accessories mall. The mall is home to many international fashion designer names such as Prada, Gucci, Burberry and Versace.
'Good mall management is a synergy of getting the right tenant mix and increasing shopper traffic, apart from handling ongoing building maintenance,' said Linda Kwan, the mall's general manager . 'Cultivating a good working relationship with our tenants is a big factor in our success. Coupled with strong brand building and proactive A&P programmes, our efforts in mall management would further boost shopper traffic and sales for the mutual benefit of all.'
Paragon, which is fully owned by Singapore Press Holdings Ltd (SPH), emerged tops in two of the three categories - best efforts in advertising & promotions and tenant relationships.
The results were based on votes by retailers. The contest is organised by the Singapore Retailers Association.
This is the second year the mall has won the Shopping Centre Scorecard. Last year, it won for best efforts in maintaining its premises, the third category.
Paragon, which now enjoys full occupancy, is positioned as an upscale fashion and accessories mall. The mall is home to many international fashion designer names such as Prada, Gucci, Burberry and Versace.
'Good mall management is a synergy of getting the right tenant mix and increasing shopper traffic, apart from handling ongoing building maintenance,' said Linda Kwan, the mall's general manager . 'Cultivating a good working relationship with our tenants is a big factor in our success. Coupled with strong brand building and proactive A&P programmes, our efforts in mall management would further boost shopper traffic and sales for the mutual benefit of all.'
AN UNUSUAL proposal is being pitched at apartment owners
AN UNUSUAL proposal is being pitched at apartment owners at Richmond Park:
Its management corporation (MC) is seeking the power to co-broke the sale and rental of their units in return for half the commission from the transactions, which will go into the management fund.
Owners who let the MC play co-broker will get a 20 per cent discount off what they pay to the management fund for up to 12 months.
Those who want no part of this scheme will need to opt out, and pay 20 per cent more in their monthly contribution. However, it is not clear how this will apply to an owner who is selling his unit.
These are among the by-laws which the condo's MC chairman, Dr David Tan, will propose at its seventh annual general meeting (AGM) tomorrow.
Noting that about a third of Richmond Park's apartment owners were living in Indonesia or Hong Kong and were either absentee landlords or absentee home owners, he said: 'It is primarily in their interest that we have conceptualised this by-law.'
Its objective, said the 69-year-old retired eye surgeon, is to generate revenue for the maintenance fund so contributions to the fund can be kept low, since raising contribution rates always meets with resistance.
Not everyone is thrilled with the idea - the resident-owners, for instance.
A resident who has lived there for seven years said: 'Why should I give up my sole right to sell or lease my unit? This narrows my choices of agents who are willing to help me market my apartment, since they get only half the commission.'
Located in the heart of Orchard Road, Richmond Park has 159 units, each paying between $330 and $660 in monthly maintenance fees, depending on unit size.
Industry experts say the by-law is unusual.
Knight Frank Estate Management - which manages the condo and 90 other estates - went as far as to say it was unheard of.
Lawyer S. K. Phang of Phang & Co, saying an MC had no right to be a broker, explained that such a function fell outside the roles and powers of an MC as defined by the Building Maintenance and Strata Management Act.
He added that even if all attendees at tomorrow's AGM are fine with the proposed by-law, it does not follow that it would pass muster with the Strata Titles Board.
Chesterton International's head of research and consultancy, Mr Colin Tan, added: 'People don't realise that they can challenge certain by-laws. If they are unreasonable, they may not stand in the court of law.'
Real estate company PropNex's chief executive, Mr Mohamad Ismail, said no one had so far proposed this to his agents, and that PropNex would 'keep the option open at this juncture'.
Dr Tan is also proposing that security guards and staff be paid to show the units to prospective buyers and tenants.
He said: 'We know our property better than anybody else. We know the market value and the rentals charged by all units.'
Mr Ismail, however, said real estate agents had a better idea of market changes and demand.
He, too, sees resident-owners losing out in the scheme, because the agent working with the condo management may not want to co-broke with other agents, which would further divide up the commission pie.
It might thus take longer to find buyers and tenants, and resident-owners may lose a month's rental waiting for the deal to close.
Dr Tan, saying he expected resistance as he was 'going into uncharted waters', added: 'I don't see why this by-law will not be passed. It benefits everyone all round.'
Its management corporation (MC) is seeking the power to co-broke the sale and rental of their units in return for half the commission from the transactions, which will go into the management fund.
Owners who let the MC play co-broker will get a 20 per cent discount off what they pay to the management fund for up to 12 months.
Those who want no part of this scheme will need to opt out, and pay 20 per cent more in their monthly contribution. However, it is not clear how this will apply to an owner who is selling his unit.
These are among the by-laws which the condo's MC chairman, Dr David Tan, will propose at its seventh annual general meeting (AGM) tomorrow.
Noting that about a third of Richmond Park's apartment owners were living in Indonesia or Hong Kong and were either absentee landlords or absentee home owners, he said: 'It is primarily in their interest that we have conceptualised this by-law.'
Its objective, said the 69-year-old retired eye surgeon, is to generate revenue for the maintenance fund so contributions to the fund can be kept low, since raising contribution rates always meets with resistance.
Not everyone is thrilled with the idea - the resident-owners, for instance.
A resident who has lived there for seven years said: 'Why should I give up my sole right to sell or lease my unit? This narrows my choices of agents who are willing to help me market my apartment, since they get only half the commission.'
Located in the heart of Orchard Road, Richmond Park has 159 units, each paying between $330 and $660 in monthly maintenance fees, depending on unit size.
Industry experts say the by-law is unusual.
Knight Frank Estate Management - which manages the condo and 90 other estates - went as far as to say it was unheard of.
Lawyer S. K. Phang of Phang & Co, saying an MC had no right to be a broker, explained that such a function fell outside the roles and powers of an MC as defined by the Building Maintenance and Strata Management Act.
He added that even if all attendees at tomorrow's AGM are fine with the proposed by-law, it does not follow that it would pass muster with the Strata Titles Board.
Chesterton International's head of research and consultancy, Mr Colin Tan, added: 'People don't realise that they can challenge certain by-laws. If they are unreasonable, they may not stand in the court of law.'
Real estate company PropNex's chief executive, Mr Mohamad Ismail, said no one had so far proposed this to his agents, and that PropNex would 'keep the option open at this juncture'.
Dr Tan is also proposing that security guards and staff be paid to show the units to prospective buyers and tenants.
He said: 'We know our property better than anybody else. We know the market value and the rentals charged by all units.'
Mr Ismail, however, said real estate agents had a better idea of market changes and demand.
He, too, sees resident-owners losing out in the scheme, because the agent working with the condo management may not want to co-broke with other agents, which would further divide up the commission pie.
It might thus take longer to find buyers and tenants, and resident-owners may lose a month's rental waiting for the deal to close.
Dr Tan, saying he expected resistance as he was 'going into uncharted waters', added: 'I don't see why this by-law will not be passed. It benefits everyone all round.'
POTENTIAL buyers have rushed to put their name down for 400 new premium flats near the heart of town, launched for sale by the Housing Board yesterday
POTENTIAL buyers have rushed to put their name down for 400 new premium flats near the heart of town, launched for sale by the Housing Board yesterday.
By 5pm yesterday - nine hours after applications opened - 687 people had registered their interest for the flats, which will be built within an existing HDB estate at the foot of Mount Faber. Another batch of 516 flats were also launched for sale yesterday, further out in Punggol. They received 152 applications by 5pm.
Both projects are being offered under the build-to-order programme, so they will be built only when most flats have been booked.
Going by recent red-hot demand for new HDB flats, housing agents do not expect any problems on that front.
As the level of the response yesterday shows, the Mount Faber area project - called Telok Blangah Towers - is the more popular.
The premium project in Telok Blangah Street 31 comprises 90 elderly-friendly studio apartments, 100 three-room flats and 210 four-room units. Its prime location near the Central Business District, VivoCity mall and Sentosa is one reason behind the high level of interest.
It will be built within the established town of Bukit Merah - one of the few occasions when a build-to-order development will be located in a mature town with established facilities.
Its flats will have timber strip flooring in the bedrooms and ceramic floor and wall tiles in the bathrooms.
Build-to-order projects are usually located in new towns like Punggol and Sengkang - both far from the city centre. This has meant home buyers wanting to live closer to central Singapore have had to settle for older resale flats or pay a higher price for private condominiums.
The attractive location in Telok Blangah comes at a price: Four-room flats will cost between $308,000 and $402,000, more than 50 per cent above similar units in the Punggol project. Three-room flats will cost between $187,000 and $238,000, while studio units will go for $70,000 to $91,000.
The Punggol development, called the Punggol Lodge, will offer standard flats without flooring, with more modest prices.
Four-room ones are between $190,000 and $234,000, with three-room flats priced between $122,000 and $150,000.
Property firm ERA Singapore said four-room flats in the Telok Blangah area built from 1999 onwards cost between $370,000 and $408,000 on the resale market.
From April to June this year, resale four-room flats in Bukit Merah town - where flats in the Telok Blangah area are located - went for a median price of $371,000.
Mr Chandran Pillay, a senior division director of Global Real Estate Services, felt the new Telok Blangah flats were far from cheap.
'I think $400,000 is a bit high, but anybody who wants to live close to the city knows they have to pay a higher premium,' he said.
The HDB said this month that it was stepping up sales to meet rising demand for new flats. Its stock of unsold flats has dwindled from more than 10,000 three years ago to 3,500 now, and is expected to drop to 2,200 by the end of the year.
It will also offer about 4,500 new flats in the next six months under the build-to-order system.
By 5pm yesterday - nine hours after applications opened - 687 people had registered their interest for the flats, which will be built within an existing HDB estate at the foot of Mount Faber. Another batch of 516 flats were also launched for sale yesterday, further out in Punggol. They received 152 applications by 5pm.
Both projects are being offered under the build-to-order programme, so they will be built only when most flats have been booked.
Going by recent red-hot demand for new HDB flats, housing agents do not expect any problems on that front.
As the level of the response yesterday shows, the Mount Faber area project - called Telok Blangah Towers - is the more popular.
The premium project in Telok Blangah Street 31 comprises 90 elderly-friendly studio apartments, 100 three-room flats and 210 four-room units. Its prime location near the Central Business District, VivoCity mall and Sentosa is one reason behind the high level of interest.
It will be built within the established town of Bukit Merah - one of the few occasions when a build-to-order development will be located in a mature town with established facilities.
Its flats will have timber strip flooring in the bedrooms and ceramic floor and wall tiles in the bathrooms.
Build-to-order projects are usually located in new towns like Punggol and Sengkang - both far from the city centre. This has meant home buyers wanting to live closer to central Singapore have had to settle for older resale flats or pay a higher price for private condominiums.
The attractive location in Telok Blangah comes at a price: Four-room flats will cost between $308,000 and $402,000, more than 50 per cent above similar units in the Punggol project. Three-room flats will cost between $187,000 and $238,000, while studio units will go for $70,000 to $91,000.
The Punggol development, called the Punggol Lodge, will offer standard flats without flooring, with more modest prices.
Four-room ones are between $190,000 and $234,000, with three-room flats priced between $122,000 and $150,000.
Property firm ERA Singapore said four-room flats in the Telok Blangah area built from 1999 onwards cost between $370,000 and $408,000 on the resale market.
From April to June this year, resale four-room flats in Bukit Merah town - where flats in the Telok Blangah area are located - went for a median price of $371,000.
Mr Chandran Pillay, a senior division director of Global Real Estate Services, felt the new Telok Blangah flats were far from cheap.
'I think $400,000 is a bit high, but anybody who wants to live close to the city knows they have to pay a higher premium,' he said.
The HDB said this month that it was stepping up sales to meet rising demand for new flats. Its stock of unsold flats has dwindled from more than 10,000 three years ago to 3,500 now, and is expected to drop to 2,200 by the end of the year.
It will also offer about 4,500 new flats in the next six months under the build-to-order system.
HOMEBUYERS can look forward to some 65,400 private residential units coming on stream in the next few years to meet surging demand.
HOMEBUYERS can look forward to some 65,400 private residential units coming on stream in the next few years to meet surging demand.
This new supply in the pipeline comprises projects that are already under construction and those that have been granted planning approval but are not being built yet as at the third quarter of this year.
This is 16.4 per cent higher than the 56,200 units at the end of the second quarter, according to the latest quarter data released by the Urban Redevelopment Authority (URA) on Friday.
About 44,500 units are expected to be completed between the last quarter of this year and 2010. Construction has begun for almost all the units scheduled for completion up to 2008. About 48 per cent of the units that are expected to be completed in 2009 and 2010 are also being built, while the remaining units not under construction yet can be ready on schedule.
Of the Q3 supply, 38,013 units, were still unsold. These comprised 1,897 units that had been launched for sale by developers and 6,546 units which had the pre-requisite conditions for sale and could be launched for sale immediately.
The remaining 29,570 units with planning approvals did not have the pre-requisite conditions for sale. But the sale license from the Controller of Housing and Building Plan approval from the Building and Construction Authority (BCA) could be obtained quite quickly and these units could be made available for sale quite soon, if the developers choose to do so.
The URA said more supply will also come from the sites made available by the Government in the second half year of the Government Land Sales (GLS) Programme, which can yield about 8,000 new units.
When sold, the supply from these sites can be made available for sale within the next one year or so.
The Government will also increase supply in the first half of next year, if necessary, said the URA.
It added that there will also be additional supply from new private residential developments on private land which will be coming in for planning approval, including those on sites where the existing developments have been sold en-bloc. This will further increase the number of units for sale in the next few years.
According to the URA data, a total of 3,709 uncompleted private residential units were launched for sale by developers in the third quarter, compared with the 4,362 units launched in the previous quarter.
Of the 3,709 uncompleted units launched in the quarter, 1,360 units were in the core central region, 1,148 units were in rest of central region, and 1,201 units were outside the central region.
Major residential projects launched in the quarter included The Parc Condominium at West Coast Walk (659 units), The Soleil @ Sinaran at Sinaran Drive (417 units) and The Rochester at Rochester Park (366 units).
During the 3rd Quarter 2007, 3,367 uncompleted private residential units were sold by developers, compared with the 4,820 units sold in Q2.
Tthe number of sub-sales fell across the board during the region, to 1,163 in the third quarter, compared to 1,791 three months ago.
However, subsales accounted for 12.7 per cent of all sale transactions in the quarter, compared to 12.1 per cent in Q2.
A total of 2,229 private residential units were completed during the quarter. Major residential projects completed included the Icon at Gopeng Street (646 units), 8@Mount Sophia at Mount Sophia (313 units) and The Lakeshore at Jurong West Street 41 (280 units of the total 848 units).
The vacancy rate of completed private residential units was 5.4 per cent as at the end the quarter, compared with 4.9 per cent the previous quarter.
For Executive Condominiums, there were 444 units in the pipeline, all of which were under construction.
The total stock of completed EC units remained unchanged at 9,986 units as at the end of Q3, while the vacancy rate stood at 0.8 per cent.
This new supply in the pipeline comprises projects that are already under construction and those that have been granted planning approval but are not being built yet as at the third quarter of this year.
This is 16.4 per cent higher than the 56,200 units at the end of the second quarter, according to the latest quarter data released by the Urban Redevelopment Authority (URA) on Friday.
About 44,500 units are expected to be completed between the last quarter of this year and 2010. Construction has begun for almost all the units scheduled for completion up to 2008. About 48 per cent of the units that are expected to be completed in 2009 and 2010 are also being built, while the remaining units not under construction yet can be ready on schedule.
Of the Q3 supply, 38,013 units, were still unsold. These comprised 1,897 units that had been launched for sale by developers and 6,546 units which had the pre-requisite conditions for sale and could be launched for sale immediately.
The remaining 29,570 units with planning approvals did not have the pre-requisite conditions for sale. But the sale license from the Controller of Housing and Building Plan approval from the Building and Construction Authority (BCA) could be obtained quite quickly and these units could be made available for sale quite soon, if the developers choose to do so.
The URA said more supply will also come from the sites made available by the Government in the second half year of the Government Land Sales (GLS) Programme, which can yield about 8,000 new units.
When sold, the supply from these sites can be made available for sale within the next one year or so.
The Government will also increase supply in the first half of next year, if necessary, said the URA.
It added that there will also be additional supply from new private residential developments on private land which will be coming in for planning approval, including those on sites where the existing developments have been sold en-bloc. This will further increase the number of units for sale in the next few years.
According to the URA data, a total of 3,709 uncompleted private residential units were launched for sale by developers in the third quarter, compared with the 4,362 units launched in the previous quarter.
Of the 3,709 uncompleted units launched in the quarter, 1,360 units were in the core central region, 1,148 units were in rest of central region, and 1,201 units were outside the central region.
Major residential projects launched in the quarter included The Parc Condominium at West Coast Walk (659 units), The Soleil @ Sinaran at Sinaran Drive (417 units) and The Rochester at Rochester Park (366 units).
During the 3rd Quarter 2007, 3,367 uncompleted private residential units were sold by developers, compared with the 4,820 units sold in Q2.
Tthe number of sub-sales fell across the board during the region, to 1,163 in the third quarter, compared to 1,791 three months ago.
However, subsales accounted for 12.7 per cent of all sale transactions in the quarter, compared to 12.1 per cent in Q2.
A total of 2,229 private residential units were completed during the quarter. Major residential projects completed included the Icon at Gopeng Street (646 units), 8@Mount Sophia at Mount Sophia (313 units) and The Lakeshore at Jurong West Street 41 (280 units of the total 848 units).
The vacancy rate of completed private residential units was 5.4 per cent as at the end the quarter, compared with 4.9 per cent the previous quarter.
For Executive Condominiums, there were 444 units in the pipeline, all of which were under construction.
The total stock of completed EC units remained unchanged at 9,986 units as at the end of Q3, while the vacancy rate stood at 0.8 per cent.
This is the highest level in a decade. -ST
This is the highest level in a decade. -ST
Fri, Oct 26, 2007
Reuters
SINGAPORE, Oct 26 - Singapore private home prices rose 8.3 percent between July and September to their highest level in a decade, but fewer uncompleted residential units were sold versus the previous quarter, government data showed on Friday.
The Urban Redevelopment Authority said there was more supply in the pipeline to meet the overall rise in property demand, adding that there remained a number of residential projects with "a significant number" of unsold units.
The government agency's price index for private residential homes rose to 160.0 for the three months ended September, from 147.8 in the previous three-month period.
Private home prices also rose by 8.3 percent rise in the April-June period.
Private apartments in Singapore's core prime districts continued to lead the price gains although homes in the rest of the city-state also commanded higher prices.
A total of 3,367 uncompleted private units were sold by developers in the third quarter, down from 4,820 units in the April to June period.
Analysts said lower sales reflected investor unease following the subprime mortgage debt fallout in the U.S., as well as government moves to cool property prices that include hikes in redevelopment charges for real estate firms such as CapitaLand and City Developments .
Private home rents rose 11.4 percent in the July to September period, a slightly higher rate than the second quarter's 10.4 percent.
Office rents rose 14.8 percent in the third quarter, higher than the 11 percent increase recorded in the previous three months and bringing the total rise over the nine months since the start of the year to 40.7 percent.
The URA said it would make more sites available for development into office buildings next year to further boost supply.
Fri, Oct 26, 2007
Reuters
SINGAPORE, Oct 26 - Singapore private home prices rose 8.3 percent between July and September to their highest level in a decade, but fewer uncompleted residential units were sold versus the previous quarter, government data showed on Friday.
The Urban Redevelopment Authority said there was more supply in the pipeline to meet the overall rise in property demand, adding that there remained a number of residential projects with "a significant number" of unsold units.
The government agency's price index for private residential homes rose to 160.0 for the three months ended September, from 147.8 in the previous three-month period.
Private home prices also rose by 8.3 percent rise in the April-June period.
Private apartments in Singapore's core prime districts continued to lead the price gains although homes in the rest of the city-state also commanded higher prices.
A total of 3,367 uncompleted private units were sold by developers in the third quarter, down from 4,820 units in the April to June period.
Analysts said lower sales reflected investor unease following the subprime mortgage debt fallout in the U.S., as well as government moves to cool property prices that include hikes in redevelopment charges for real estate firms such as CapitaLand and City Developments .
Private home rents rose 11.4 percent in the July to September period, a slightly higher rate than the second quarter's 10.4 percent.
Office rents rose 14.8 percent in the third quarter, higher than the 11 percent increase recorded in the previous three months and bringing the total rise over the nine months since the start of the year to 40.7 percent.
The URA said it would make more sites available for development into office buildings next year to further boost supply.
Price increases were seen across most flat types and towns.
Price increases were seen across most flat types and towns.
Fri, Oct 26, 2007
The Straits Times
RIDING on the property boom, HDB resale prices are on the rise.
The price index of resale flats was up 6.6 per cent higher in the third quarter compared to the previous quarter, the HDB said in a press release on Friday. Price increases were seen across most flat types and towns.
'As at end-September, the HDB RPI has increased by about 11 per cent since the start of the year,' the HDB said.
For five-room flats, the median resale price in Queenstown is the highest at $603,000, followed by Marine Parade at $560,000 and Bukit Merah at $530,000.
Queenstown tops the list for median resale prices of 4-room flats as well, fetching $410,000. It is followed by Bukit Merah which commands a price of $396,500 and Central at $382,500.
The median Cash-Over-valuation (COV), which is the difference between the Resale Price and Market Value of the flat, in the July to September period was $17,000.
Eighty per cent of all resale transactions required COV while 20 per cent of the transactions were conducted at or below valuation.
Five-room flats in Queenstown commanded the highest median COV of $110,000, followed by Central with $91,500 and marine Parade at $85,000. However, the latter two towns saw less than 20 resale transactions in the quarter.
For four-room flats, apartments in Central fetched the highest median COV of $57,500, but there were less than 20 resale transactions for the town in the quarter. Queenstown at $57,000 and Bukit Merah at $40,500 were the next two highest on the list.
Highly popular in the last quarter were 4-room flats, which made up the bulk of resale transactions. There were 2,833 in total. The number was, however, lower than the second quarter which saw 2,833 resale transactions of such flat type.
Three-room flats were more popular than 5-room flats in the last quarter, with 2,179 transactions compared to 1,901.
New flats With its good take-up rates for public housing projects launched under the Build-To-Order system, HDB launched about 2,700 new flats under four BTO projects in the first three quarters of the year.
It launched another 916 units on Thursday and has plans to offer another 3,500 in the next six months.
'There are also plans to release another three Design, Build and Sell Scheme (DBSS) sites with an estimated combined yield of 1,500 units over this period,' the HDB said.
The new flats will be in addition to those offered under the Balloting Exercises for surplus Sers flats and the bi-monthly/monthly sales exercises for unsold flats.
Rental market Sublet rents for HDB flats were up in the last quarter in line with higher rents for private residential properties.
Marine Parade commanded the highest median subletting rents for both 3- and 4-room flats at $1,250 and $1,700.
HDB approved the subletting of 3,500 flats, bringing the total number of HDB flats approved for subletting to about 16,000 units, up from about 14,600 units in the second quarter.
HDB said it will be leasing out flats vacated under the Selective En bloc Redevelopment Scheme (Sers) to the general public under a special pilot project. It recently concluded a tender for the leasing of vacated Sers flats at Tiong Bahru Road and will assess the response to this pilot project, before deciding whether to expand the scheme in future.
This scheme puts 'the vacated Sers flats to better use in the interim period, pending their redevelopment', it said.
HDB said it 'has a potential supply of about 4,000 to 5,000 units that can be introduced to bolster rental supply in the HDB market over the next 3 years'.
Fri, Oct 26, 2007
The Straits Times
RIDING on the property boom, HDB resale prices are on the rise.
The price index of resale flats was up 6.6 per cent higher in the third quarter compared to the previous quarter, the HDB said in a press release on Friday. Price increases were seen across most flat types and towns.
'As at end-September, the HDB RPI has increased by about 11 per cent since the start of the year,' the HDB said.
For five-room flats, the median resale price in Queenstown is the highest at $603,000, followed by Marine Parade at $560,000 and Bukit Merah at $530,000.
Queenstown tops the list for median resale prices of 4-room flats as well, fetching $410,000. It is followed by Bukit Merah which commands a price of $396,500 and Central at $382,500.
The median Cash-Over-valuation (COV), which is the difference between the Resale Price and Market Value of the flat, in the July to September period was $17,000.
Eighty per cent of all resale transactions required COV while 20 per cent of the transactions were conducted at or below valuation.
Five-room flats in Queenstown commanded the highest median COV of $110,000, followed by Central with $91,500 and marine Parade at $85,000. However, the latter two towns saw less than 20 resale transactions in the quarter.
For four-room flats, apartments in Central fetched the highest median COV of $57,500, but there were less than 20 resale transactions for the town in the quarter. Queenstown at $57,000 and Bukit Merah at $40,500 were the next two highest on the list.
Highly popular in the last quarter were 4-room flats, which made up the bulk of resale transactions. There were 2,833 in total. The number was, however, lower than the second quarter which saw 2,833 resale transactions of such flat type.
Three-room flats were more popular than 5-room flats in the last quarter, with 2,179 transactions compared to 1,901.
New flats With its good take-up rates for public housing projects launched under the Build-To-Order system, HDB launched about 2,700 new flats under four BTO projects in the first three quarters of the year.
It launched another 916 units on Thursday and has plans to offer another 3,500 in the next six months.
'There are also plans to release another three Design, Build and Sell Scheme (DBSS) sites with an estimated combined yield of 1,500 units over this period,' the HDB said.
The new flats will be in addition to those offered under the Balloting Exercises for surplus Sers flats and the bi-monthly/monthly sales exercises for unsold flats.
Rental market Sublet rents for HDB flats were up in the last quarter in line with higher rents for private residential properties.
Marine Parade commanded the highest median subletting rents for both 3- and 4-room flats at $1,250 and $1,700.
HDB approved the subletting of 3,500 flats, bringing the total number of HDB flats approved for subletting to about 16,000 units, up from about 14,600 units in the second quarter.
HDB said it will be leasing out flats vacated under the Selective En bloc Redevelopment Scheme (Sers) to the general public under a special pilot project. It recently concluded a tender for the leasing of vacated Sers flats at Tiong Bahru Road and will assess the response to this pilot project, before deciding whether to expand the scheme in future.
This scheme puts 'the vacated Sers flats to better use in the interim period, pending their redevelopment', it said.
HDB said it 'has a potential supply of about 4,000 to 5,000 units that can be introduced to bolster rental supply in the HDB market over the next 3 years'.
COMPLETION OF EN BLOC PURCHASE OF SOPHIA COURT
COMPLETION OF EN BLOC PURCHASE OF SOPHIA COURT
The Company refers to its announcement of 8 December 2006 in relation to the conditional en bloc purchase of Sophia Court, a freehold property comprised in Lots 420X and 406M both of Town Subdivision 19. GuocoLand Limited (“GLL”) wishes to announce that its wholly-owned subsidiary, Sophia Residence Development Pte. Ltd. has as at 5 September 2007 completed the en bloc acquisition of Sophia Court for a total purchase consideration of $230 million (the “Acquisition”).
The site is slated for the development of Sophia Residence, which will have a gross floor area of 32,413 square metres. Sophia Residence is located at Mount Sophia in the vicinity of Orchard Road, within walking distance of the Dhoby Ghaut MRT station.
The Acquisition was financed by internal resources, bank borrowings and from part of the net proceeds from the Company’s recent Rights Issue.
The Acquisition is not expected to have any material effect on the net tangible assets per share or earnings per share of the GLL Group for the current financial year ending 30 June 2008.
The Company refers to its announcement of 8 December 2006 in relation to the conditional en bloc purchase of Sophia Court, a freehold property comprised in Lots 420X and 406M both of Town Subdivision 19. GuocoLand Limited (“GLL”) wishes to announce that its wholly-owned subsidiary, Sophia Residence Development Pte. Ltd. has as at 5 September 2007 completed the en bloc acquisition of Sophia Court for a total purchase consideration of $230 million (the “Acquisition”).
The site is slated for the development of Sophia Residence, which will have a gross floor area of 32,413 square metres. Sophia Residence is located at Mount Sophia in the vicinity of Orchard Road, within walking distance of the Dhoby Ghaut MRT station.
The Acquisition was financed by internal resources, bank borrowings and from part of the net proceeds from the Company’s recent Rights Issue.
The Acquisition is not expected to have any material effect on the net tangible assets per share or earnings per share of the GLL Group for the current financial year ending 30 June 2008.
The Company refers to its announcement of 8 December 2006 in relation to the conditional en bloc purchase of Sophia Court, a freehold property comprised in Lots 420X and 406M both of Town Subdivision 19. GuocoLand Limited (“GLL”) wishes to announce that its wholly-owned subsidiary, Sophia Residence Development Pte. Ltd. has as at 5 September 2007 completed the en bloc acquisition of Sophia Court for a total purchase consideration of $230 million (the “Acquisition”).
The site is slated for the development of Sophia Residence, which will have a gross floor area of 32,413 square metres. Sophia Residence is located at Mount Sophia in the vicinity of Orchard Road, within walking distance of the Dhoby Ghaut MRT station.
The Acquisition was financed by internal resources, bank borrowings and from part of the net proceeds from the Company’s recent Rights Issue.
The Acquisition is not expected to have any material effect on the net tangible assets per share or earnings per share of the GLL Group for the current financial year ending 30 June 2008.
The Company refers to its announcement of 8 December 2006 in relation to the conditional en bloc purchase of Sophia Court, a freehold property comprised in Lots 420X and 406M both of Town Subdivision 19. GuocoLand Limited (“GLL”) wishes to announce that its wholly-owned subsidiary, Sophia Residence Development Pte. Ltd. has as at 5 September 2007 completed the en bloc acquisition of Sophia Court for a total purchase consideration of $230 million (the “Acquisition”).
The site is slated for the development of Sophia Residence, which will have a gross floor area of 32,413 square metres. Sophia Residence is located at Mount Sophia in the vicinity of Orchard Road, within walking distance of the Dhoby Ghaut MRT station.
The Acquisition was financed by internal resources, bank borrowings and from part of the net proceeds from the Company’s recent Rights Issue.
The Acquisition is not expected to have any material effect on the net tangible assets per share or earnings per share of the GLL Group for the current financial year ending 30 June 2008.
OUG junction an accident-prone area
OUG junction an accident-prone area
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A JUNCTION turning left into Taman OUG, Kuala Lumpur, along Jalan Besar leading to the Awan Besar interchange, is now an accident-prone area, especially during the morning peak hour.
The junction into Jalan Hujan 2 is a vital entry point to the neighbourhood, but due to the heavy traffic leading to the Awan Besar interchange, many accidents happened along the stretch.
Dangerous spot: Kok (left) with residents of OUG, Bukit OUG and Taman Yarl at the stretch leading to the Awan Besar Interchange.
According to Seputeh MP Teresa Kok, the particular spot is the black area because of the numerous accidents there.
“When the Awan Besar interchange opened some 14 months ago, I had anticipated that it would be an accident-proneg area,” Kok said.
“Vehicles heading to Shah Alam via the Awan Besar interchange usually travel very fast and do not give way to those turning left at the junction. Hence many accidents have occurred at the spot,” she said.
Kok said although the residents wanted the Kuala Lumpur City Hall (DBKL) to install a traffic light at the junction, it was not suitable at the place.
“Jalan Awan Besar already has two traffic lights, a third one is just not practical.
“At the moment I would suggest closing the junction as our priority should be safety,” she said.
Kok said she would be meeting with the DBKL Public Works Department to seek a solution to the problem.
The Awan Besar interchange is a vital link for those living in Old Klang Road, OUG, Taman Yarl, Bukit OUG to go Kesas Highway, the main access road to Bukit Jalil, the MRR2 highway, Subang, the KLCC and Klang.
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A JUNCTION turning left into Taman OUG, Kuala Lumpur, along Jalan Besar leading to the Awan Besar interchange, is now an accident-prone area, especially during the morning peak hour.
The junction into Jalan Hujan 2 is a vital entry point to the neighbourhood, but due to the heavy traffic leading to the Awan Besar interchange, many accidents happened along the stretch.
Dangerous spot: Kok (left) with residents of OUG, Bukit OUG and Taman Yarl at the stretch leading to the Awan Besar Interchange.
According to Seputeh MP Teresa Kok, the particular spot is the black area because of the numerous accidents there.
“When the Awan Besar interchange opened some 14 months ago, I had anticipated that it would be an accident-proneg area,” Kok said.
“Vehicles heading to Shah Alam via the Awan Besar interchange usually travel very fast and do not give way to those turning left at the junction. Hence many accidents have occurred at the spot,” she said.
Kok said although the residents wanted the Kuala Lumpur City Hall (DBKL) to install a traffic light at the junction, it was not suitable at the place.
“Jalan Awan Besar already has two traffic lights, a third one is just not practical.
“At the moment I would suggest closing the junction as our priority should be safety,” she said.
Kok said she would be meeting with the DBKL Public Works Department to seek a solution to the problem.
The Awan Besar interchange is a vital link for those living in Old Klang Road, OUG, Taman Yarl, Bukit OUG to go Kesas Highway, the main access road to Bukit Jalil, the MRR2 highway, Subang, the KLCC and Klang.
HBA/Hirsch Bedner strikes gold in Beijing
HBA/Hirsch Bedner strikes gold in Beijing
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Hong Kong – Leading international interior design company HBA/Hirsch Bedner Associates, responsible for some of the world’s most prestigious hospitality, leisure and residential projects, has struck gold with the 2008 Beijing Olympics.
The world’s largest hospitality design firm has landed 13 unique hospitality projects in the Chinese capital, all due for completion ahead of the games in August 2008.
A guestroom of the Regent Beijing which overlooks the Forbidden City.
Ian Carr, HBA principal overseeing the Beijing projects, says: “HBA is proud to play such a large role in Beijing’s transformation in the lead up to the Olympi cs. The changes that are now taking place in Beijing are truly remarkable and we see our projects setting the trends for the city’s future.”
The projects in Beijing include a significant number of Beijing’s new five-star hotel projects, and by August 2008, HBA will have completed almost 4,000 stylish new guest rooms throughout the city, as well as the capital’s most luxurious new spa and the first overseas clubhouse for the prestigious Hong Kong Jockey Club.
Among the landmark hotel projects is the newly opened, state-of-the-art Regent Beijing in the commercial heart of Beijing . Overlooking the Forbidden City, the 500-room hotel is an exclusive sanctuary which skillfully blends contemporary luxury with accents of Chinese history.
Another milestone project is the China World Trade Centre Phase III, a mega-tower development incorporating a five-star internation al hotel in Chaoyang District, which is set to become a new Beijing icon.
Other five-star hotel projects in the city already completed or due to be completed before the Olympics include the Four Seasons Hotel Beijing; The Ritz-Carlton Beijing， Financial Street; Ritz-Carlton Guohua; Renaissance Beijing Hotel and JW Marriot Hotel Beijing. Outstanding design initiatives have already earned in Interior Design magazine’s 2007 Design Award for HBA’s work on The Ritz-Carlton Beijing ， Financial Street. This award-winning hotel is listed as one of 2007 Best of Best, Hotels in Robb Report, USA and is included in 2007 Hot List of Condè Nast Traveler, USA .
Work is also progressing on the renovation of the Hilton Beijing hotel and the new Yanjing Hotel owned by Hainan Airlines.
Besides these hotel projects, Shangri-La Hotel Beijing’s Chi Spa opened earlier this year and takes its place as the most cutting-edge spa in the capital. Its interiors are based on design cues from Tibetan culture and are based on the five elements of Earth, Fire, Water, Metal and Wood.
HBA also designed the Chi Spa at the Shangri-La Hotel Pudong in Shanghai, which won the Baccarat AsiaSpa Awards in 2006 and was nominated among the Top Ten Hottest Hotel Spas in the World 2006 by Forbes.com.
In the heart of Beijing, The Hong Kong Jockey Club’s first clubhouse outside Hong Kong provides a world-class home away from home for club members when visiting the capital. The facility offers 90 guest suites as well as restaurants, a business centre and leisure facilities including a health club, swimming pool, library and sporting options.
The Ritz-Carlton Beijing， Financial Street, has been listed as one of "2007 Best of Best, Hotels" in the Robb Report publication and is included in "2007 Hot List" of Condè Nast Traveler, USA.
HBA has a 30-year track record of designing luxury property and hotel projects across China – begun with the iconic White Swan Hotel in Guangzhou. To date the company has designed more than 115 leading projects in China.
“Our Olympic effort brings together more than 150 designers and includes teams from our offices in Singapore, Hong Kong, Austral ia, San Francisco, Los Angeles and Shanghai,” says Carr.
“We take great pride in joining the spirit of the 2008 Beijing Olympics, working hard to meet all the challenges to help create a really world-class experience for China to showcase to the world,” he said.
“As always, our designs for each project are unique, luxurious, contemporary and create experiences that will be memorable. Over the years people have regarded HBA projects as trendsetting, and we hope our projects in Beijing will reinforce this image.”
Even after the games, HBA has several more projects on board in Beijing. The firm is also busy in Shanghai, with projects for completion ahead of the 2010 World Expo including the landmark restoration of the legendary Peace Hotel.
“With the explosion in wealth and prosperity in the Asia region, and an influx of global hospitality brands, China is now an enormously fast-growing market in which we aim to take an even greater role in the future,” added Carr.
About HBA/Hirsch Bedner Associates
Interior design firm HBA/Hirsch Bedner Associates which specialises in luxury hospitality projects, is credited with revolutionizing the design industry. In its 43 years of business the company has continu ally set design trends, pushing boundaries and injecting fresh ideas in to some of the worlds most prestigious and well-known addresses.
HBA has completed well over 900 projects in 80 countries. Gaining an unrivalled knowledge of the cultural, financial, geographical and programmatic requirements involved in design projects from world-class hotels and resorts, to individual boutique hotels, spas, casinos, cruise ships and private residences.
HBA employees 450 design professionals in 12 offices worldwide: Los Angeles, Atlanta, San Francisco, Hong Kong, Singapore, London, New Delhi, Dubai, Brisbane, Melbourne, Tokyo and Shanghai. HBA hinges its achievements on its fundamental values of research and sensitivity to the needs of its markets and clients.
HBA celebrates 30 years in Asia this year.
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Hong Kong – Leading international interior design company HBA/Hirsch Bedner Associates, responsible for some of the world’s most prestigious hospitality, leisure and residential projects, has struck gold with the 2008 Beijing Olympics.
The world’s largest hospitality design firm has landed 13 unique hospitality projects in the Chinese capital, all due for completion ahead of the games in August 2008.
A guestroom of the Regent Beijing which overlooks the Forbidden City.
Ian Carr, HBA principal overseeing the Beijing projects, says: “HBA is proud to play such a large role in Beijing’s transformation in the lead up to the Olympi cs. The changes that are now taking place in Beijing are truly remarkable and we see our projects setting the trends for the city’s future.”
The projects in Beijing include a significant number of Beijing’s new five-star hotel projects, and by August 2008, HBA will have completed almost 4,000 stylish new guest rooms throughout the city, as well as the capital’s most luxurious new spa and the first overseas clubhouse for the prestigious Hong Kong Jockey Club.
Among the landmark hotel projects is the newly opened, state-of-the-art Regent Beijing in the commercial heart of Beijing . Overlooking the Forbidden City, the 500-room hotel is an exclusive sanctuary which skillfully blends contemporary luxury with accents of Chinese history.
Another milestone project is the China World Trade Centre Phase III, a mega-tower development incorporating a five-star internation al hotel in Chaoyang District, which is set to become a new Beijing icon.
Other five-star hotel projects in the city already completed or due to be completed before the Olympics include the Four Seasons Hotel Beijing; The Ritz-Carlton Beijing， Financial Street; Ritz-Carlton Guohua; Renaissance Beijing Hotel and JW Marriot Hotel Beijing. Outstanding design initiatives have already earned in Interior Design magazine’s 2007 Design Award for HBA’s work on The Ritz-Carlton Beijing ， Financial Street. This award-winning hotel is listed as one of 2007 Best of Best, Hotels in Robb Report, USA and is included in 2007 Hot List of Condè Nast Traveler, USA .
Work is also progressing on the renovation of the Hilton Beijing hotel and the new Yanjing Hotel owned by Hainan Airlines.
Besides these hotel projects, Shangri-La Hotel Beijing’s Chi Spa opened earlier this year and takes its place as the most cutting-edge spa in the capital. Its interiors are based on design cues from Tibetan culture and are based on the five elements of Earth, Fire, Water, Metal and Wood.
HBA also designed the Chi Spa at the Shangri-La Hotel Pudong in Shanghai, which won the Baccarat AsiaSpa Awards in 2006 and was nominated among the Top Ten Hottest Hotel Spas in the World 2006 by Forbes.com.
In the heart of Beijing, The Hong Kong Jockey Club’s first clubhouse outside Hong Kong provides a world-class home away from home for club members when visiting the capital. The facility offers 90 guest suites as well as restaurants, a business centre and leisure facilities including a health club, swimming pool, library and sporting options.
The Ritz-Carlton Beijing， Financial Street, has been listed as one of "2007 Best of Best, Hotels" in the Robb Report publication and is included in "2007 Hot List" of Condè Nast Traveler, USA.
HBA has a 30-year track record of designing luxury property and hotel projects across China – begun with the iconic White Swan Hotel in Guangzhou. To date the company has designed more than 115 leading projects in China.
“Our Olympic effort brings together more than 150 designers and includes teams from our offices in Singapore, Hong Kong, Austral ia, San Francisco, Los Angeles and Shanghai,” says Carr.
“We take great pride in joining the spirit of the 2008 Beijing Olympics, working hard to meet all the challenges to help create a really world-class experience for China to showcase to the world,” he said.
“As always, our designs for each project are unique, luxurious, contemporary and create experiences that will be memorable. Over the years people have regarded HBA projects as trendsetting, and we hope our projects in Beijing will reinforce this image.”
Even after the games, HBA has several more projects on board in Beijing. The firm is also busy in Shanghai, with projects for completion ahead of the 2010 World Expo including the landmark restoration of the legendary Peace Hotel.
“With the explosion in wealth and prosperity in the Asia region, and an influx of global hospitality brands, China is now an enormously fast-growing market in which we aim to take an even greater role in the future,” added Carr.
About HBA/Hirsch Bedner Associates
Interior design firm HBA/Hirsch Bedner Associates which specialises in luxury hospitality projects, is credited with revolutionizing the design industry. In its 43 years of business the company has continu ally set design trends, pushing boundaries and injecting fresh ideas in to some of the worlds most prestigious and well-known addresses.
HBA has completed well over 900 projects in 80 countries. Gaining an unrivalled knowledge of the cultural, financial, geographical and programmatic requirements involved in design projects from world-class hotels and resorts, to individual boutique hotels, spas, casinos, cruise ships and private residences.
HBA employees 450 design professionals in 12 offices worldwide: Los Angeles, Atlanta, San Francisco, Hong Kong, Singapore, London, New Delhi, Dubai, Brisbane, Melbourne, Tokyo and Shanghai. HBA hinges its achievements on its fundamental values of research and sensitivity to the needs of its markets and clients.
HBA celebrates 30 years in Asia this year.
Sunrise keen on overseas property jobs
KUALA LUMPUR: Sunrise Bhd, which has made a name for itself in the development of Mont’Kiara in Kuala Lumpur, is looking at sustainable overseas property development as an option for the future as its landbank in the country depletes.
Executive chairman Tong Kooi Ong said the company had, in the middle of the year, acquired a 4.8-acre freehold site in Vancouver, Canada, for RM112mil that would be rezoned to a 700,000 sq ft net saleable strata-titled residential development with a commercial element.
“Sunrise needs to consider this as an option in the future but we don’t want to do a one-off project, it must be long term and meaningful,” Tong said after the company AGM yesterday.
Sunrise currently has 85.16 acres of undeveloped freehold land in Mont’Kiara.
Tong, who is also executive chairman of Taiga Building Products Ltd, a Canadian distributor of building products, said he hoped there would be more opportunities there but did not discount development ventures in other parts of the world.
The as-yet-unnamed development in the suburb of Richmond, Vancouver, is the second-largest development in the city, he said, adding that the more premium condominium units in the suburb were going for an average of C$500 to C$530 psf while in Vancouver, it was C$800 to C$2,000 psf. The development would be launched in two phases, in mid-2008 and mid-2009.
From left: Sunrise Bhd deputy executive chairman Datuk Allan Lim Kim Huat, Tong Kooi Ong and Sunrise managing director Datuk Michael K.C. Yam at the press conference
The Vancouver development will mark Sunrise’s maiden foray into the North American market. The company’s previous exposure to overseas property development had been small, including a joint venture in Britain and a three-acre freehold site in Sydney, Australia.
Meanwhile, Tong said there were over 6 million sq ft of net saleable area under construction in Mont’Kiara, ranging from developments that were in the beginning stages of construction to those that were just being completed. Going forward, he said, there was over 5 million sq ft of net saleable area in seven projects that would be launched in the near future.
“We’ve over RM1.3bil in unbilled sales to date and, if MK11 is included, we’ll pass the RM2bil mark once the sales and purchase agreements are signed,” Tong said.
The RM800mil MK11 comprises five 43-storey condominium tower blocks on 5.3 acres and will be launched at year-end. Unbilled sales rose 90.8% in the financial year ended June 30, 2007 (FY07) compared with FY06.
The company also plans to launch a similar mixed development project next to its Solaris Dutamas project currently under construction.
Sunrise posted a net profit of RM67.49mil on revenue of RM558.09mil in FY07.
Executive chairman Tong Kooi Ong said the company had, in the middle of the year, acquired a 4.8-acre freehold site in Vancouver, Canada, for RM112mil that would be rezoned to a 700,000 sq ft net saleable strata-titled residential development with a commercial element.
“Sunrise needs to consider this as an option in the future but we don’t want to do a one-off project, it must be long term and meaningful,” Tong said after the company AGM yesterday.
Sunrise currently has 85.16 acres of undeveloped freehold land in Mont’Kiara.
Tong, who is also executive chairman of Taiga Building Products Ltd, a Canadian distributor of building products, said he hoped there would be more opportunities there but did not discount development ventures in other parts of the world.
The as-yet-unnamed development in the suburb of Richmond, Vancouver, is the second-largest development in the city, he said, adding that the more premium condominium units in the suburb were going for an average of C$500 to C$530 psf while in Vancouver, it was C$800 to C$2,000 psf. The development would be launched in two phases, in mid-2008 and mid-2009.
From left: Sunrise Bhd deputy executive chairman Datuk Allan Lim Kim Huat, Tong Kooi Ong and Sunrise managing director Datuk Michael K.C. Yam at the press conference
The Vancouver development will mark Sunrise’s maiden foray into the North American market. The company’s previous exposure to overseas property development had been small, including a joint venture in Britain and a three-acre freehold site in Sydney, Australia.
Meanwhile, Tong said there were over 6 million sq ft of net saleable area under construction in Mont’Kiara, ranging from developments that were in the beginning stages of construction to those that were just being completed. Going forward, he said, there was over 5 million sq ft of net saleable area in seven projects that would be launched in the near future.
“We’ve over RM1.3bil in unbilled sales to date and, if MK11 is included, we’ll pass the RM2bil mark once the sales and purchase agreements are signed,” Tong said.
The RM800mil MK11 comprises five 43-storey condominium tower blocks on 5.3 acres and will be launched at year-end. Unbilled sales rose 90.8% in the financial year ended June 30, 2007 (FY07) compared with FY06.
The company also plans to launch a similar mixed development project next to its Solaris Dutamas project currently under construction.
Sunrise posted a net profit of RM67.49mil on revenue of RM558.09mil in FY07.
Jalan Imbi: Eclipsed by its starry neighbour
Jalan Imbi: Eclipsed by its starry neighbour
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Properties from a feng shui perspective: Part 11
No tour of the Golden Triangle can be complete without a look at Jalan Imbi, an area often eclipsed by the more vibrant Jalan Bukit Bintang that runs parallel to it. The road begins at the intersection of Jalan Hang Tuah and Jalan Pudu from Plaza Berjaya, and stretches up to Jalan Bukit Bintang near the Dorsett Regency hotel.
Jalan Bukit Bintang is built on a ridge which slopes down on both sides. There used to be a small river running between this road and Jalan Imbi: it is more like a natural drain formed when it rained. Over the years, this was probably turned into an underground drainage tunnel.
The monorail’s effect is reduced at the Imbi Station, since the monorail has to slow down before coming to a halt
This means Jalan Imbi is also a ridge, albeit a lower one than Jalan Bukit Bintang. From here, the landform continues to slope gently downwards into Pudu. Sometime ago, rainwater would drain into a pond somewhere in Pudu, in the vicinity of the Smart Tunnel project. This is where Jalan Changkat Thambi Dollah joins Jalan Davis and curiously forms a semi-circle that surrounds … nothing. Except for shrubs and small trees, that is.
Jalan Imbi itself runs parallel to Klang/Ampang River in the north. This unique alignment means, buildings on one side of the road where Plaza Berjaya, Melia Hotel, Imbi Plaza, Wisma SPS and so forth are located, have their back to the embracing river. This is not very conducive in terms of feng shui. However, this direction also parallels the downstream flow of the Klang/Gombak River located west. This is a positive.
In such a case, it just means that the good cancels out the bad and vice versa. It also indicates that businesses here will experience ups and downs. Tilting the balance either way are additional landform factors.
HIGH GROUND, LOW GROUND
For example, buildings that sit with their rear on high ground and face a gently sloping lower ground are ideal in feng shui. The opposite applies to buildings that sit with a low back and high front. We have observed many such instances in the undulating Golden Triangle area where business is brisk but there are plenty of boom-and-bust stories.
Jalan Imbi itself runs parallel to Klang/Ampang River in the north
To the casual shopper and visitor, it may look like a vibrant area that keeps changing and never stays the same. There is always something new – a shop or restaurant – to try out. It also means one business went bust and another has taken over! When a newcomer sets up shop, he enjoys good business because of the novelty (and positive features of the location’s feng shui, perhaps?). Then, the fad passes or the excitement wanes. If he has the stamina and resources, he may last a few ups and downs over a few months or even years. Eventually, he calls it a day. Enter another newcomer and the cycle repeats.
The sceptics may put it down to human nature and frailty. I would concur that these are key factors as to why a business may not last a generation. It is a common saying among the Chinese that wealth does not go through three generations: the first struggles to create it; the second generation children appreciate the toil and work to preserve it; and the spoiled third generation squander it. Often, the wealth is squandered by the second generation.
FOOLS AND THEIR MONEY
Yet, don’t all tycoons and businessmen realise this? Don’t they take precautions to educate their children to be business-savvy and wiser with money?
Then what happened? How do some people learn their lesson and continue to expand on their parents and forefathers’ business, while some destroy it? I believe, the subtle influence of feng shui – both yin and yang – could have played a factor in their harmony and prosperity. Back to our tour of Jalan Imbi, as we can see, buildings between Jalan Bukit Bintang and Jalan Imbi have mixed influences which may require some mitigation to increase the good or reduce the negatives. We are also concerned about the monorail which runs along this stretch of Jalan Imbi up to Imbi Plaza and Wisma SPS. A fast moving train drags the wind in its wake and this has a tendency to suck up and disperse gentle homogenous energy in its immediate vicinity.
Of course, the effect is somewhat reduced at the Imbi Station, since the monorail has to slow down before coming to a halt. So, buildings nearest the station are likely to experience a lesser impact.
Berjaya Times Square
CONFLICTING INFLUENCES
On the opposite side, we find the massive Berjaya Times Square. This project boasts of being the world’s largest building ever constructed in a single phase, with 7.5mil sq ft (0.6mil sq m) of built-up floor area. It comprises a shopping mall, hotel, cineplex, an Imax cinema and a theme park. Most projects are usually built in stages to ease financing pressures, but the developer of Berjaya Times Square was optimistic.
Thus, when the Asian economic crisis hit during the building’s construction, he went through a difficult phase. It required a lot of perseverance, sacrifice and creative strategies to finally complete the project, an amazing achievement in itself.
The complex sits facing the Klang/Ampang River in the north, which is good. However, this parallels the Klang/Gombak River facing upstream. Again, we have conflicting influences here. The front is also higher than the rear which slopes downwards. It is interesting to note that Berjaya Times Square was first designed to face Pudu Prison. Then the entrance was redesigned to face Jalan Imbi where the monorail station is located.
In such a situation, a “reverse orientation” whereby the entrance opens to the De Vegas nightclub could be a better choice. It may not be ideal aesthetically but doing so would mean that the building technically sits on Jalan Pudu and faces the same direction as Sungei Wang Plaza. There is a little stream in the Conlay area that creates a confluence of positive energy which the building (and its occupants) can tap into.
HIDDEN RIVER
The gradient between Jalan Bukit Bintang and Jalan Imbi is seen more clearly after the Jalan Sultan Ismail intersection. Jalan Gading, between Menara Berjaya and Star Hill Gallery, is a downhill slope. This is where Jalan and Lorong Walter Grenier, Jalan Padang and Jalan Palmer are also located. Therefore, buildings in this area that sit with Bukit Bintang at their rear and face Jalan Imbi face lowland, which is good, but not the Klang River. However, further ahead in front of these buildings, there used to be a river somewhere between Imbi and Pudu, before Pudu Plaza. It was known as “tai sui hum” to the Chinese and is probably an underground drain now.
This is why businesses along this row, such as Overseas Restaurant, are doing roaring business. It is generally a good direction with the exception of a few spots at traffic junctions where some shops sit at the convex or outer arm of the curve.
On the other hand, buildings facing the other way have mixed influences. They face the embracing Klang/Ampang River (good) but face high ground. These businesses and occupants will have a bit of a struggle and may enjoy single-generational prosperity. This stretch of road curves north-east as it approaches Jalan Bukit Bintang near Bangunan LTAT. Buildings that sit on the embracing or concave side of this curve benefit from this, but this is reduced by having their backs turned against the river.
Buildings that face the river on the opposite side suffer from the convex or outer curve of the road. This makes Jalan Imbi quite a tricky proposition from a feng shui perspective as every good has an opposing bad, though the proportion may differ along the road.
It is interesting to note here that the posh Ritz Carlton hotel has one good thing going for it. Instead of having the “logical” entrance opening into Jalan Imbi, it chose to have its entrance facing Jalan Yap Tai Chi, essentially a side exit road from the Star Hill Gallery. This has several good points: it avoids turning its back to the embracing river and it faces the same little known river in the Conlay area that Sungei Wang Plaza faces.
ECLIPSED
With the conflicting forces of nature at work here, is it any surprise that Jalan Imbi, despite its prime location and importance as a main road, remains eclipsed by the glitzier Bukit Bintang? Despite efforts to ease jams by rerouting traffic flows into Medan Imbi, and the establishment of wet markets such as the relocated Pasar Baru Bukit Bintang and Pasar Rakyat, the Imbi area remains relatively undeveloped though there is certainly no lack of traffic.
Clearly, this gives credence to the influence of nature on man’s success. Thus far the development of Kuala Lumpur has been haphazard, which explains why roads twist and turn in the strangest ways, unlike some cities that are built in grids or spokes emanating from a centre.
As city dwellers and businesses take up residence, they are affected unwittingly by the natural forces and energies at work here. The lucky ones enjoy tremendous success while the hapless ones make way for others to fill their shoes.
While it is necessary in many cases to mitigate unfavourable feng shui factors, isn’t it better to design the buildings correctly in the first place or better yet, redesign the city to conform to these principles?
As parts of the city grow old and require redevelopment, tear down the old buildings and start anew. Hong Kong is doing that. Why not us?
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Properties from a feng shui perspective: Part 11
No tour of the Golden Triangle can be complete without a look at Jalan Imbi, an area often eclipsed by the more vibrant Jalan Bukit Bintang that runs parallel to it. The road begins at the intersection of Jalan Hang Tuah and Jalan Pudu from Plaza Berjaya, and stretches up to Jalan Bukit Bintang near the Dorsett Regency hotel.
Jalan Bukit Bintang is built on a ridge which slopes down on both sides. There used to be a small river running between this road and Jalan Imbi: it is more like a natural drain formed when it rained. Over the years, this was probably turned into an underground drainage tunnel.
The monorail’s effect is reduced at the Imbi Station, since the monorail has to slow down before coming to a halt
This means Jalan Imbi is also a ridge, albeit a lower one than Jalan Bukit Bintang. From here, the landform continues to slope gently downwards into Pudu. Sometime ago, rainwater would drain into a pond somewhere in Pudu, in the vicinity of the Smart Tunnel project. This is where Jalan Changkat Thambi Dollah joins Jalan Davis and curiously forms a semi-circle that surrounds … nothing. Except for shrubs and small trees, that is.
Jalan Imbi itself runs parallel to Klang/Ampang River in the north. This unique alignment means, buildings on one side of the road where Plaza Berjaya, Melia Hotel, Imbi Plaza, Wisma SPS and so forth are located, have their back to the embracing river. This is not very conducive in terms of feng shui. However, this direction also parallels the downstream flow of the Klang/Gombak River located west. This is a positive.
In such a case, it just means that the good cancels out the bad and vice versa. It also indicates that businesses here will experience ups and downs. Tilting the balance either way are additional landform factors.
HIGH GROUND, LOW GROUND
For example, buildings that sit with their rear on high ground and face a gently sloping lower ground are ideal in feng shui. The opposite applies to buildings that sit with a low back and high front. We have observed many such instances in the undulating Golden Triangle area where business is brisk but there are plenty of boom-and-bust stories.
Jalan Imbi itself runs parallel to Klang/Ampang River in the north
To the casual shopper and visitor, it may look like a vibrant area that keeps changing and never stays the same. There is always something new – a shop or restaurant – to try out. It also means one business went bust and another has taken over! When a newcomer sets up shop, he enjoys good business because of the novelty (and positive features of the location’s feng shui, perhaps?). Then, the fad passes or the excitement wanes. If he has the stamina and resources, he may last a few ups and downs over a few months or even years. Eventually, he calls it a day. Enter another newcomer and the cycle repeats.
The sceptics may put it down to human nature and frailty. I would concur that these are key factors as to why a business may not last a generation. It is a common saying among the Chinese that wealth does not go through three generations: the first struggles to create it; the second generation children appreciate the toil and work to preserve it; and the spoiled third generation squander it. Often, the wealth is squandered by the second generation.
FOOLS AND THEIR MONEY
Yet, don’t all tycoons and businessmen realise this? Don’t they take precautions to educate their children to be business-savvy and wiser with money?
Then what happened? How do some people learn their lesson and continue to expand on their parents and forefathers’ business, while some destroy it? I believe, the subtle influence of feng shui – both yin and yang – could have played a factor in their harmony and prosperity. Back to our tour of Jalan Imbi, as we can see, buildings between Jalan Bukit Bintang and Jalan Imbi have mixed influences which may require some mitigation to increase the good or reduce the negatives. We are also concerned about the monorail which runs along this stretch of Jalan Imbi up to Imbi Plaza and Wisma SPS. A fast moving train drags the wind in its wake and this has a tendency to suck up and disperse gentle homogenous energy in its immediate vicinity.
Of course, the effect is somewhat reduced at the Imbi Station, since the monorail has to slow down before coming to a halt. So, buildings nearest the station are likely to experience a lesser impact.
Berjaya Times Square
CONFLICTING INFLUENCES
On the opposite side, we find the massive Berjaya Times Square. This project boasts of being the world’s largest building ever constructed in a single phase, with 7.5mil sq ft (0.6mil sq m) of built-up floor area. It comprises a shopping mall, hotel, cineplex, an Imax cinema and a theme park. Most projects are usually built in stages to ease financing pressures, but the developer of Berjaya Times Square was optimistic.
Thus, when the Asian economic crisis hit during the building’s construction, he went through a difficult phase. It required a lot of perseverance, sacrifice and creative strategies to finally complete the project, an amazing achievement in itself.
The complex sits facing the Klang/Ampang River in the north, which is good. However, this parallels the Klang/Gombak River facing upstream. Again, we have conflicting influences here. The front is also higher than the rear which slopes downwards. It is interesting to note that Berjaya Times Square was first designed to face Pudu Prison. Then the entrance was redesigned to face Jalan Imbi where the monorail station is located.
In such a situation, a “reverse orientation” whereby the entrance opens to the De Vegas nightclub could be a better choice. It may not be ideal aesthetically but doing so would mean that the building technically sits on Jalan Pudu and faces the same direction as Sungei Wang Plaza. There is a little stream in the Conlay area that creates a confluence of positive energy which the building (and its occupants) can tap into.
HIDDEN RIVER
The gradient between Jalan Bukit Bintang and Jalan Imbi is seen more clearly after the Jalan Sultan Ismail intersection. Jalan Gading, between Menara Berjaya and Star Hill Gallery, is a downhill slope. This is where Jalan and Lorong Walter Grenier, Jalan Padang and Jalan Palmer are also located. Therefore, buildings in this area that sit with Bukit Bintang at their rear and face Jalan Imbi face lowland, which is good, but not the Klang River. However, further ahead in front of these buildings, there used to be a river somewhere between Imbi and Pudu, before Pudu Plaza. It was known as “tai sui hum” to the Chinese and is probably an underground drain now.
This is why businesses along this row, such as Overseas Restaurant, are doing roaring business. It is generally a good direction with the exception of a few spots at traffic junctions where some shops sit at the convex or outer arm of the curve.
On the other hand, buildings facing the other way have mixed influences. They face the embracing Klang/Ampang River (good) but face high ground. These businesses and occupants will have a bit of a struggle and may enjoy single-generational prosperity. This stretch of road curves north-east as it approaches Jalan Bukit Bintang near Bangunan LTAT. Buildings that sit on the embracing or concave side of this curve benefit from this, but this is reduced by having their backs turned against the river.
Buildings that face the river on the opposite side suffer from the convex or outer curve of the road. This makes Jalan Imbi quite a tricky proposition from a feng shui perspective as every good has an opposing bad, though the proportion may differ along the road.
It is interesting to note here that the posh Ritz Carlton hotel has one good thing going for it. Instead of having the “logical” entrance opening into Jalan Imbi, it chose to have its entrance facing Jalan Yap Tai Chi, essentially a side exit road from the Star Hill Gallery. This has several good points: it avoids turning its back to the embracing river and it faces the same little known river in the Conlay area that Sungei Wang Plaza faces.
ECLIPSED
With the conflicting forces of nature at work here, is it any surprise that Jalan Imbi, despite its prime location and importance as a main road, remains eclipsed by the glitzier Bukit Bintang? Despite efforts to ease jams by rerouting traffic flows into Medan Imbi, and the establishment of wet markets such as the relocated Pasar Baru Bukit Bintang and Pasar Rakyat, the Imbi area remains relatively undeveloped though there is certainly no lack of traffic.
Clearly, this gives credence to the influence of nature on man’s success. Thus far the development of Kuala Lumpur has been haphazard, which explains why roads twist and turn in the strangest ways, unlike some cities that are built in grids or spokes emanating from a centre.
As city dwellers and businesses take up residence, they are affected unwittingly by the natural forces and energies at work here. The lucky ones enjoy tremendous success while the hapless ones make way for others to fill their shoes.
While it is necessary in many cases to mitigate unfavourable feng shui factors, isn’t it better to design the buildings correctly in the first place or better yet, redesign the city to conform to these principles?
As parts of the city grow old and require redevelopment, tear down the old buildings and start anew. Hong Kong is doing that. Why not us?
The Avare condominiums sold out
The last Avare condominium unit was sold at RM2,100 per sq ft, from an average price of RM1,350 per sq ft when it was launched early last year.
PETALING JAYA: Second Board-listed Magna Prima Bhd, which is repositioning itself as a developer, announced yesterday that it had completed the sales of The Avare, a 41-storey freehold condominium development located in KLCC.
In a press release, the company said the last unit was sold at RM2,100 psf, from an average price of RM1,350 psf when it was launched early last year. The Avare comprises 78 condominiums with built-up areas of 3,800 sq ft to 7,700 sq ft. The project’s scheduled completion date is next August.
Executive director Lim Ching Choy said the successful sales of the luxury condominiums took the firm closer to realising its repositioning as a developer.
Apart from The Avare, the firm’s property development arm, which contributed over 60% of turnover, is developing Magnaville in Selayang and Dataran Automobil in Shah Alam.
PETALING JAYA: Second Board-listed Magna Prima Bhd, which is repositioning itself as a developer, announced yesterday that it had completed the sales of The Avare, a 41-storey freehold condominium development located in KLCC.
In a press release, the company said the last unit was sold at RM2,100 psf, from an average price of RM1,350 psf when it was launched early last year. The Avare comprises 78 condominiums with built-up areas of 3,800 sq ft to 7,700 sq ft. The project’s scheduled completion date is next August.
Executive director Lim Ching Choy said the successful sales of the luxury condominiums took the firm closer to realising its repositioning as a developer.
Apart from The Avare, the firm’s property development arm, which contributed over 60% of turnover, is developing Magnaville in Selayang and Dataran Automobil in Shah Alam.
Three new vital links for Puchong
Three new vital links for Puchong
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Story and photo by LIM CHIA YING
PUCHONG residents will be given a new year gift by the Subang Jaya Municipal Council (MPSJ). It will build three vital link roads in the bustling township at the end of the year to ensure smoother traffic flow and better inter-connectivity among the neighbourhoods there.
The first link connects Bandar Puteri Puchong to Puchong Hartamas, the second links Puchong Permai and Pangsapuri Puchong Permata, and the third links Pusat Bandar Puchong and Puchong Jaya Selatan.
According to Awtar Singh, the personal assistant to Sri Serdang assemblyman Datuk Satim Diman, the new links would act as alternatives in diffusing congestion at the usually busy routes, and provide residents with short cuts from one housing estate to another.
“At present, there is no link between Bandar Puteri Pu-chong and Puchong Hartamas, so residents are using the old Puchong road to travel between the two residential estates,” Awtar said.
One of three: This is where the first link will be built to connect Bandar Puteri Puchong to Puchong Hartamas via Laman Puteri and Persiaran Hartamas.
“The proposed link is a 500m road which would be constructed by the MPSJ at a cost of about RM500mil. The developer of Puchong Hartamas will foot half the bill of RM250mil. Flora Development will provide the other RM250mil since the road would go across the border of its land.
Work is scheduled to start in December, and will take six months to complete. Once ready, this four-lane link would connect Persiaran Hartamas at Puchong Hartamas and Laman Puteri at Bandar Puteri.
Another piece of good news, Awtar said, was that the drai-nage system and road widening works along the front portion of Jalan Bakawali, the main en-trance from the old Puchong road, would be completed by next month, and this would provide smoother and wider access for residents.
Work on the link between Puchong Permai and Pangsa-puri Puchong Permata is also scheduled to start in December.
Awtar said it was an important alternative road that would benefit residents of Puchong Prima, Puchong Intan, Puchong Permai, and Desa Millennium.
“There is a massive after-work jam every evening at the junction of Persiaran Puchong. It is not just people travelling from their homes to USJ, but also those going into the various housing estates and those travelling to Putrajaya. The proposed 1km link will be a good short cut to and from USJ,” Awtar said.
The construction cost for this second link would be borne by the MPSJ.
According to Awtar, the second link was been planned a long time ago but construction was frustrated by the problems of squatter relocation.
The third vital link to be built, meanwhile, will connect Persia-ran Wawasan at Pusat Bandar Puchong to Jalan Serindit at Puchong Jaya Selatan.
“There is no such route in the plan but the MPSJ has decided to build it. Works will also start in December and once completed, road users no longer need to use the LDP whenever they want to access Pusat Bandar Puchong from Puchong Jaya Sela-tan and vice-versa. This link will be a two-lane road meant only for light vehicles,” Awtar said.
Developer Jen Bina Sdn Bhd, meanwhile, will build the 2km link from Pangsapuri Puchong Permata to the LDP highway, so that residents can turn in straight to their homes just after the IOI Mall Puchong.
Construction works for this link, however, will only begin after the Chinese New Year next year.
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Story and photo by LIM CHIA YING
PUCHONG residents will be given a new year gift by the Subang Jaya Municipal Council (MPSJ). It will build three vital link roads in the bustling township at the end of the year to ensure smoother traffic flow and better inter-connectivity among the neighbourhoods there.
The first link connects Bandar Puteri Puchong to Puchong Hartamas, the second links Puchong Permai and Pangsapuri Puchong Permata, and the third links Pusat Bandar Puchong and Puchong Jaya Selatan.
According to Awtar Singh, the personal assistant to Sri Serdang assemblyman Datuk Satim Diman, the new links would act as alternatives in diffusing congestion at the usually busy routes, and provide residents with short cuts from one housing estate to another.
“At present, there is no link between Bandar Puteri Pu-chong and Puchong Hartamas, so residents are using the old Puchong road to travel between the two residential estates,” Awtar said.
One of three: This is where the first link will be built to connect Bandar Puteri Puchong to Puchong Hartamas via Laman Puteri and Persiaran Hartamas.
“The proposed link is a 500m road which would be constructed by the MPSJ at a cost of about RM500mil. The developer of Puchong Hartamas will foot half the bill of RM250mil. Flora Development will provide the other RM250mil since the road would go across the border of its land.
Work is scheduled to start in December, and will take six months to complete. Once ready, this four-lane link would connect Persiaran Hartamas at Puchong Hartamas and Laman Puteri at Bandar Puteri.
Another piece of good news, Awtar said, was that the drai-nage system and road widening works along the front portion of Jalan Bakawali, the main en-trance from the old Puchong road, would be completed by next month, and this would provide smoother and wider access for residents.
Work on the link between Puchong Permai and Pangsa-puri Puchong Permata is also scheduled to start in December.
Awtar said it was an important alternative road that would benefit residents of Puchong Prima, Puchong Intan, Puchong Permai, and Desa Millennium.
“There is a massive after-work jam every evening at the junction of Persiaran Puchong. It is not just people travelling from their homes to USJ, but also those going into the various housing estates and those travelling to Putrajaya. The proposed 1km link will be a good short cut to and from USJ,” Awtar said.
The construction cost for this second link would be borne by the MPSJ.
According to Awtar, the second link was been planned a long time ago but construction was frustrated by the problems of squatter relocation.
The third vital link to be built, meanwhile, will connect Persia-ran Wawasan at Pusat Bandar Puchong to Jalan Serindit at Puchong Jaya Selatan.
“There is no such route in the plan but the MPSJ has decided to build it. Works will also start in December and once completed, road users no longer need to use the LDP whenever they want to access Pusat Bandar Puchong from Puchong Jaya Sela-tan and vice-versa. This link will be a two-lane road meant only for light vehicles,” Awtar said.
Developer Jen Bina Sdn Bhd, meanwhile, will build the 2km link from Pangsapuri Puchong Permata to the LDP highway, so that residents can turn in straight to their homes just after the IOI Mall Puchong.
Construction works for this link, however, will only begin after the Chinese New Year next year.
Mah Sing expects 2008 to be a good year
KUALA LUMPUR: Mah Sing Group Bhd managing director Datuk Leong Hoy Kum is confident that 2008 will be a prosperous year for the property market and the company as well.
“We believe the property market will do well, underpinned by interest from foreigners and increased domestic demand, especially in medium to high-end residential and commercial projects,” he said.
Leong said the spillover projects from the Ninth Malaysia Plan, low unemployment and high savings rates, and the sustained economic growth momentum would all contribute to the property market's positive run.
“This would be boosted further by recent property incentives announced in the 2008 Budget, and Mah Sing will implement several complementary measures to benefit home buyers,” Leong told reporters after the company EGM yesterday.
To complement the Government's 50% stamp duty exemption for the purchase of homes under RM250,000, Leong said the group would be subsidising the remaining 50% stamp duty for the purchase of Mah Sing homes.
Datuk Leong Hoy Kum
The recently announced increase in the Employees Provident Fund dividend could potentially open up more than RM9bil for the property market to tap, he added.
Group chief financial officer Steven Ng Poh Seng said the local property market would be unaffected by the slowdown in the current US economy.
“The US dollar may be weakening, but our ringgit will strengthen because we have a healthy economy,” he said.
The residential and commercial developer currently has 10 ongoing projects, of which four will be launched next year, including The Icon Mont' Kiara, a commercial development cradled within Mont' Kiara and Sri Hartamas; Duta Perdana, a township in Puchong; Southbay Penang, a mix of residential and commercial components on the island;and the Southgate Commercial Centre, a medium-rise office tower block opposite the group's headquarters.
Leong said response to Southbay Penang had been overwhelming, with up to 1,500 reservations received for the commercial/residential units on offer.
He said the group was also confident of robust sales for Southgate, citing the first phase of d7, YTL Land & Development Bhd's debut commercial development in Sentul East, which sold all 100 units in just one hour.
Leong also said the group was planning to expand to east Malaysia.
“Sabah and Sarawak are states with the highest growth rates in Malaysia. Now is the right time for the cities there to upgrade. We would like to replicate and improve our current designs in east Malaysia.”
“We believe the property market will do well, underpinned by interest from foreigners and increased domestic demand, especially in medium to high-end residential and commercial projects,” he said.
Leong said the spillover projects from the Ninth Malaysia Plan, low unemployment and high savings rates, and the sustained economic growth momentum would all contribute to the property market's positive run.
“This would be boosted further by recent property incentives announced in the 2008 Budget, and Mah Sing will implement several complementary measures to benefit home buyers,” Leong told reporters after the company EGM yesterday.
To complement the Government's 50% stamp duty exemption for the purchase of homes under RM250,000, Leong said the group would be subsidising the remaining 50% stamp duty for the purchase of Mah Sing homes.
Datuk Leong Hoy Kum
The recently announced increase in the Employees Provident Fund dividend could potentially open up more than RM9bil for the property market to tap, he added.
Group chief financial officer Steven Ng Poh Seng said the local property market would be unaffected by the slowdown in the current US economy.
“The US dollar may be weakening, but our ringgit will strengthen because we have a healthy economy,” he said.
The residential and commercial developer currently has 10 ongoing projects, of which four will be launched next year, including The Icon Mont' Kiara, a commercial development cradled within Mont' Kiara and Sri Hartamas; Duta Perdana, a township in Puchong; Southbay Penang, a mix of residential and commercial components on the island;and the Southgate Commercial Centre, a medium-rise office tower block opposite the group's headquarters.
Leong said response to Southbay Penang had been overwhelming, with up to 1,500 reservations received for the commercial/residential units on offer.
He said the group was also confident of robust sales for Southgate, citing the first phase of d7, YTL Land & Development Bhd's debut commercial development in Sentul East, which sold all 100 units in just one hour.
Leong also said the group was planning to expand to east Malaysia.
“Sabah and Sarawak are states with the highest growth rates in Malaysia. Now is the right time for the cities there to upgrade. We would like to replicate and improve our current designs in east Malaysia.”
Berinda Group to launch latest property project at IDR
Berinda Group to launch latest property project at IDR
Berinda Group will launch Impian Heights - Park Precinct on Oct 27. With 200 units within the Taman Impian Emas township, the development is located in the Iskandar Development Region (IDR). Prices for the two-storey Park Terrace houses range from RM298,000 to RM338,000 and from RM598,000 to RM700,000 for the Park Link Villa units.
Berinda Group will launch Impian Heights - Park Precinct on Oct 27. With 200 units within the Taman Impian Emas township, the development is located in the Iskandar Development Region (IDR). Prices for the two-storey Park Terrace houses range from RM298,000 to RM338,000 and from RM598,000 to RM700,000 for the Park Link Villa units.
AN UNUSUAL proposal is being pitched at apartment owners at Richmond Park:
AN UNUSUAL proposal is being pitched at apartment owners at Richmond Park:
Its management corporation (MC) is seeking the power to co-broke the sale and rental of their units in return for half the commission from the transactions, which will go into the management fund.
Owners who let the MC play co-broker will get a 20 per cent discount off what they pay to the management fund for up to 12 months.
Those who want no part of this scheme will need to opt out, and pay 20 per cent more in their monthly contribution. However, it is not clear how this will apply to an owner who is selling his unit.
These are among the by-laws which the condo’s MC chairman, Dr David Tan, will propose at its seventh annual general meeting (AGM) tomorrow.
Noting that about a third of Richmond Park’s apartment owners were living in Indonesia or Hong Kong and were either absentee landlords or absentee home owners, he said: ‘It is primarily in their interest that we have conceptualised this by-law.’
Its objective, said the 69-year-old retired eye surgeon, is to generate revenue for the maintenance fund so contributions to the fund can be kept low, since raising contribution rates always meets with resistance.
Not everyone is thrilled with the idea - the resident-owners, for instance.
A resident who has lived there for seven years said: ‘Why should I give up my sole right to sell or lease my unit? This narrows my choices of agents who are willing to help me market my apartment, since they get only half the commission.’
Located in the heart of Orchard Road, Richmond Park has 159 units, each paying between $330 and $660 in monthly maintenance fees, depending on unit size.
Industry experts say the by-law is unusual.
Knight Frank Estate Management - which manages the condo and 90 other estates - went as far as to say it was unheard of.
Lawyer S. K. Phang of Phang & Co, saying an MC had no right to be a broker, explained that such a function fell outside the roles and powers of an MC as defined by the Building Maintenance and Strata Management Act.
He added that even if all attendees at tomorrow’s AGM are fine with the proposed by-law, it does not follow that it would pass muster with the Strata Titles Board.
Chesterton International’s head of research and consultancy, Mr Colin Tan, added: ‘People don’t realise that they can challenge certain by-laws. If they are unreasonable, they may not stand in the court of law.’
Real estate company PropNex’s chief executive, Mr Mohamad Ismail, said no one had so far proposed this to his agents, and that PropNex would ‘keep the option open at this juncture’.
Dr Tan is also proposing that security guards and staff be paid to show the units to prospective buyers and tenants.
He said: ‘We know our property better than anybody else. We know the market value and the rentals charged by all units.’
Mr Ismail, however, said real estate agents had a better idea of market changes and demand.
He, too, sees resident-owners losing out in the scheme, because the agent working with the condo management may not want to co-broke with other agents, which would further divide up the commission pie.
It might thus take longer to find buyers and tenants, and resident-owners may lose a month’s rental waiting for the deal to close.
Dr Tan, saying he expected resistance as he was ‘going into uncharted waters’, added: ‘I don’t see why this by-law will not be passed. It benefits everyone all round.’
Source : Straits Times - 26 Oct 2007
Its management corporation (MC) is seeking the power to co-broke the sale and rental of their units in return for half the commission from the transactions, which will go into the management fund.
Owners who let the MC play co-broker will get a 20 per cent discount off what they pay to the management fund for up to 12 months.
Those who want no part of this scheme will need to opt out, and pay 20 per cent more in their monthly contribution. However, it is not clear how this will apply to an owner who is selling his unit.
These are among the by-laws which the condo’s MC chairman, Dr David Tan, will propose at its seventh annual general meeting (AGM) tomorrow.
Noting that about a third of Richmond Park’s apartment owners were living in Indonesia or Hong Kong and were either absentee landlords or absentee home owners, he said: ‘It is primarily in their interest that we have conceptualised this by-law.’
Its objective, said the 69-year-old retired eye surgeon, is to generate revenue for the maintenance fund so contributions to the fund can be kept low, since raising contribution rates always meets with resistance.
Not everyone is thrilled with the idea - the resident-owners, for instance.
A resident who has lived there for seven years said: ‘Why should I give up my sole right to sell or lease my unit? This narrows my choices of agents who are willing to help me market my apartment, since they get only half the commission.’
Located in the heart of Orchard Road, Richmond Park has 159 units, each paying between $330 and $660 in monthly maintenance fees, depending on unit size.
Industry experts say the by-law is unusual.
Knight Frank Estate Management - which manages the condo and 90 other estates - went as far as to say it was unheard of.
Lawyer S. K. Phang of Phang & Co, saying an MC had no right to be a broker, explained that such a function fell outside the roles and powers of an MC as defined by the Building Maintenance and Strata Management Act.
He added that even if all attendees at tomorrow’s AGM are fine with the proposed by-law, it does not follow that it would pass muster with the Strata Titles Board.
Chesterton International’s head of research and consultancy, Mr Colin Tan, added: ‘People don’t realise that they can challenge certain by-laws. If they are unreasonable, they may not stand in the court of law.’
Real estate company PropNex’s chief executive, Mr Mohamad Ismail, said no one had so far proposed this to his agents, and that PropNex would ‘keep the option open at this juncture’.
Dr Tan is also proposing that security guards and staff be paid to show the units to prospective buyers and tenants.
He said: ‘We know our property better than anybody else. We know the market value and the rentals charged by all units.’
Mr Ismail, however, said real estate agents had a better idea of market changes and demand.
He, too, sees resident-owners losing out in the scheme, because the agent working with the condo management may not want to co-broke with other agents, which would further divide up the commission pie.
It might thus take longer to find buyers and tenants, and resident-owners may lose a month’s rental waiting for the deal to close.
Dr Tan, saying he expected resistance as he was ‘going into uncharted waters’, added: ‘I don’t see why this by-law will not be passed. It benefits everyone all round.’
Source : Straits Times - 26 Oct 2007
RISING office rentals is the biggest concern among Norwegian-owned businesses operating in Singapore.
RISING office rentals is the biggest concern among Norwegian-owned businesses operating in Singapore.
While 88 per cent of these firms expect to expand in the next 12 months, many are increasingly concerned about spiralling business and manpower costs.
The findings came from a recent survey conducted by the Norwegian Business Association in Singapore over the past six weeks.
The respondents were from 60 Norwegian companies, with more than half having an annual turnover of over $50 million.
A total of 24.4 per cent of the respondents said office rentals were their main concern, while 22.6 per cent cited rising wage bills.
A further 20.2 per cent said they were worried about the recent steep rises in living costs.
The survey findings - which were presented at the Norway Asia Business Conference held in Singapore yesterday - echoed those of a poll released by the American Chamber of Commerce in June.
This showed that rising rents and housing costs are becoming more of a worry for senior executives at American firms in the Republic.
Economic Development Board (EDB) managing director Ko Kheng Hwa addressed the rents issue at the conference, saying the EDB and the Government are ‘very concerned’ about business competitiveness and are working to increase the supply of commercial and residential space.
Mr Ko, the conference’s keynote speaker, added: ‘When supply and demand are better matched in the next couple of years, the cost escalation should be moderated.’
Norway is the sixth-largest foreign investor in Singapore, with a total foreign direct investment of $7.9 billion in 2005 - the latest year for which figures are available.
It is the fourth-largest European investor in Singapore behind Britain, the Netherlands and Switzerland.
There are more than 150 Norwegian business entities in the Republic.
Source : Straits Times - 26 Oct 2007
While 88 per cent of these firms expect to expand in the next 12 months, many are increasingly concerned about spiralling business and manpower costs.
The findings came from a recent survey conducted by the Norwegian Business Association in Singapore over the past six weeks.
The respondents were from 60 Norwegian companies, with more than half having an annual turnover of over $50 million.
A total of 24.4 per cent of the respondents said office rentals were their main concern, while 22.6 per cent cited rising wage bills.
A further 20.2 per cent said they were worried about the recent steep rises in living costs.
The survey findings - which were presented at the Norway Asia Business Conference held in Singapore yesterday - echoed those of a poll released by the American Chamber of Commerce in June.
This showed that rising rents and housing costs are becoming more of a worry for senior executives at American firms in the Republic.
Economic Development Board (EDB) managing director Ko Kheng Hwa addressed the rents issue at the conference, saying the EDB and the Government are ‘very concerned’ about business competitiveness and are working to increase the supply of commercial and residential space.
Mr Ko, the conference’s keynote speaker, added: ‘When supply and demand are better matched in the next couple of years, the cost escalation should be moderated.’
Norway is the sixth-largest foreign investor in Singapore, with a total foreign direct investment of $7.9 billion in 2005 - the latest year for which figures are available.
It is the fourth-largest European investor in Singapore behind Britain, the Netherlands and Switzerland.
There are more than 150 Norwegian business entities in the Republic.
Source : Straits Times - 26 Oct 2007
Higher rents in the Central Business District (CBD) are forcing companies to re-configure their current space
Higher rents in the Central Business District (CBD) are forcing companies to re-configure their current space, or consider shifting part of their operations to other locations.
To meet demand, the government is releasing transitional office sites into the market.
But property watchers say demand remains strong and rents will continue to push upwards.
Property firm Savills can now fit another 10 staff into its Shaw House office at Orchard Road.
It did so simply by halving its reception area.
Like Savills, more companies are reconfiguring their offices to maximise use of space and keep costs down.
Ku Swee Yong, Director, International Marketing, Savills, says: “There is still a lot more scope to restructure office space usage in the CBD - Shenton Way, Robinsons Road, Raffles Place. Many of these so called lower value type of work that probably is not customer facing, for example backroom operations, IT, maybe even administrative, human resource, transaction processing work, could be moved out of the CBD office.”
The government is releasing transitional office sites to help meet demand.
Property watchers say there are sites near the CBD which could be opened up.
Last Friday, the government released a site the size of two football fields at Upper Aljunied.
Mr Ku says: “So if you drive around town, you will see a few more properties, you will see a few more land parcels, just vacant grass land which could be potentially very attractive - for example next to Central Mall, Havelock Road. These sites I think would be a lot more attractive to the MNCs and the financial services industries.”
Consultants say transitional office sites will have little impact on rents in the CBD as they merely absorb low rent-yielding tenants so they can make way for companies who are willing to pay the higher rents.
They might, however, slow down the rate of increase.
Office rents in the CBD have shot up by 60 to 70 percent in the last 12 months.
Donald Han, Managing Director, Cushman & Wakefield, says: “Singapore is being recognised as a hub to position your original business in Southeast Asia as well as the Asian region, so more and more companies are demanding more space and expanding their operations. We are generally looking at almost every company (seeking) a minimal of 20 to 30 percent expansion of space upon every lease expiry, so that adds on to the pressure in terms of demand. So we think that this year, we expect net demand to be 3 to 3.5 million square feet.”
Analysts say Singapore needs about 2 million square feet of office space a year for the next 4 years but supply is estimated at just about half of that.
Source : ChannelNewsAsia - 25 Oct 2007
To meet demand, the government is releasing transitional office sites into the market.
But property watchers say demand remains strong and rents will continue to push upwards.
Property firm Savills can now fit another 10 staff into its Shaw House office at Orchard Road.
It did so simply by halving its reception area.
Like Savills, more companies are reconfiguring their offices to maximise use of space and keep costs down.
Ku Swee Yong, Director, International Marketing, Savills, says: “There is still a lot more scope to restructure office space usage in the CBD - Shenton Way, Robinsons Road, Raffles Place. Many of these so called lower value type of work that probably is not customer facing, for example backroom operations, IT, maybe even administrative, human resource, transaction processing work, could be moved out of the CBD office.”
The government is releasing transitional office sites to help meet demand.
Property watchers say there are sites near the CBD which could be opened up.
Last Friday, the government released a site the size of two football fields at Upper Aljunied.
Mr Ku says: “So if you drive around town, you will see a few more properties, you will see a few more land parcels, just vacant grass land which could be potentially very attractive - for example next to Central Mall, Havelock Road. These sites I think would be a lot more attractive to the MNCs and the financial services industries.”
Consultants say transitional office sites will have little impact on rents in the CBD as they merely absorb low rent-yielding tenants so they can make way for companies who are willing to pay the higher rents.
They might, however, slow down the rate of increase.
Office rents in the CBD have shot up by 60 to 70 percent in the last 12 months.
Donald Han, Managing Director, Cushman & Wakefield, says: “Singapore is being recognised as a hub to position your original business in Southeast Asia as well as the Asian region, so more and more companies are demanding more space and expanding their operations. We are generally looking at almost every company (seeking) a minimal of 20 to 30 percent expansion of space upon every lease expiry, so that adds on to the pressure in terms of demand. So we think that this year, we expect net demand to be 3 to 3.5 million square feet.”
Analysts say Singapore needs about 2 million square feet of office space a year for the next 4 years but supply is estimated at just about half of that.
Source : ChannelNewsAsia - 25 Oct 2007
BARCLAYS Wealth has found that wealthy Singaporeans have the highest appetite for risk in Asia when it comes to their private investments.
BARCLAYS Wealth has found that wealthy Singaporeans have the highest appetite for risk in Asia when it comes to their private investments.
What is more, they appear to take as much risk when running their private businesses. This bucks the global trend: people tend to take more risks in business than in their personal investments.
Working with the Economist Intelligence Unit, Barclays Wealth has published a wealth insights report on risk, return and reward. The report surveyed 790 individuals, 40 per cent of whom had investible assets of less than US$1 million. The rest had over US$1 million.
Barclays Wealth chief executive Didier von Daeniken said that the study should be viewed as a snapshot of risk attitudes at a certain point in time. The study was completed just before headlines broke on the sub-prime crisis. ‘If you had asked people (earlier this year) when business was doing well, property is well and so is equity, that would impact the way they answer questions.
‘We keep that in mind - in which environment did we ask the questions … It’s a strong reminder that we have to understand our clients, what they concentrate on, their businesses, families and where they are in the life cycle.’
Nearly half of the wealthy Singaporeans (42 per cent) surveyed said that they were willing to put their money into high risk investments to achieve a high return. This ranked them second in the global risk-taking table, ahead of investors in the US, Hong Kong and Switzerland.
Some 63 per cent of Singaporeans also reported that a high appetite for risk has been an influential factor in achieving the wealth they now hold.
Mr von Daeniken said: ‘Globally, the report reinforces the importance of the link between risk and wealth generation.’ On a global basis, 60 per cent of those with assets of more than US$1 million said that a high risk appetite was a big influence in wealth generation compared with 36 per cent of those with less than US$1 million of assets.
Wealthy Singaporeans are also among the most confident and knowledgeable investors. When asked about their knowledge of funds and other collective investments, 53 per cent said they were confident, compared with 37 per cent in the US and 31 per cent in Spain.
But Singaporeans were less confident on hedge funds (only 2 per cent) and the debt market. They were also among the least confident in estate planning, tax and inheritance.
Mr von Daeniken said: ‘Our responsibility is to continuously remind clients that there is a risk return equation and they should diversify. No market goes up forever … Whether the investor listens or not, we say it again and again - be diversified and don’t take undue risks. The moment there is a serious correction, they will remember.’
Globally, three-fifths of respondents agree that having enough money to leave to the next generation is a key motivation to securing their wealth.
Source : Business Times - 24 Oct 2007
What is more, they appear to take as much risk when running their private businesses. This bucks the global trend: people tend to take more risks in business than in their personal investments.
Working with the Economist Intelligence Unit, Barclays Wealth has published a wealth insights report on risk, return and reward. The report surveyed 790 individuals, 40 per cent of whom had investible assets of less than US$1 million. The rest had over US$1 million.
Barclays Wealth chief executive Didier von Daeniken said that the study should be viewed as a snapshot of risk attitudes at a certain point in time. The study was completed just before headlines broke on the sub-prime crisis. ‘If you had asked people (earlier this year) when business was doing well, property is well and so is equity, that would impact the way they answer questions.
‘We keep that in mind - in which environment did we ask the questions … It’s a strong reminder that we have to understand our clients, what they concentrate on, their businesses, families and where they are in the life cycle.’
Nearly half of the wealthy Singaporeans (42 per cent) surveyed said that they were willing to put their money into high risk investments to achieve a high return. This ranked them second in the global risk-taking table, ahead of investors in the US, Hong Kong and Switzerland.
Some 63 per cent of Singaporeans also reported that a high appetite for risk has been an influential factor in achieving the wealth they now hold.
Mr von Daeniken said: ‘Globally, the report reinforces the importance of the link between risk and wealth generation.’ On a global basis, 60 per cent of those with assets of more than US$1 million said that a high risk appetite was a big influence in wealth generation compared with 36 per cent of those with less than US$1 million of assets.
Wealthy Singaporeans are also among the most confident and knowledgeable investors. When asked about their knowledge of funds and other collective investments, 53 per cent said they were confident, compared with 37 per cent in the US and 31 per cent in Spain.
But Singaporeans were less confident on hedge funds (only 2 per cent) and the debt market. They were also among the least confident in estate planning, tax and inheritance.
Mr von Daeniken said: ‘Our responsibility is to continuously remind clients that there is a risk return equation and they should diversify. No market goes up forever … Whether the investor listens or not, we say it again and again - be diversified and don’t take undue risks. The moment there is a serious correction, they will remember.’
Globally, three-fifths of respondents agree that having enough money to leave to the next generation is a key motivation to securing their wealth.
Source : Business Times - 24 Oct 2007
Singapore will host its first Formula One race next season - and it will be the sport’s first at night.
Singapore will host its first Formula One race next season - and it will be the sport’s first at night.
Singapore GP said Federation International de L’Automobile (FIA), the sport’s governing body, gave its approval for the night race through the Singapore Motor Sports Council.
“We are well on our way to creating history. With two positive lighting tests under our belt, we are on track to delivering the first night race in Formula One history,” said Colin Syn, deputy chairman of Singapore GP.
The World Motor Sport Council released the 2008 F1 schedule on Wednesday, and Singapore was listed as the 15th event on the 18-race calendar. It will be held on a street circuit on Sept 28.
The 2008 season will begin in Melbourne, Australia, on March 13.
The calendar also includes 10 races in Europe, along with others in Malaysia, Bahrain, Canada, Japan, China and Brazil. — AP , AFP
Source : Business Times - 25 Oct 2007
Singapore GP said Federation International de L’Automobile (FIA), the sport’s governing body, gave its approval for the night race through the Singapore Motor Sports Council.
“We are well on our way to creating history. With two positive lighting tests under our belt, we are on track to delivering the first night race in Formula One history,” said Colin Syn, deputy chairman of Singapore GP.
The World Motor Sport Council released the 2008 F1 schedule on Wednesday, and Singapore was listed as the 15th event on the 18-race calendar. It will be held on a street circuit on Sept 28.
The 2008 season will begin in Melbourne, Australia, on March 13.
The calendar also includes 10 races in Europe, along with others in Malaysia, Bahrain, Canada, Japan, China and Brazil. — AP , AFP
Source : Business Times - 25 Oct 2007
Global direct real estate investment may fall this year as concerns about defaults on US mortgages prompted lenders to tighten credit, said Jones La
Global direct real estate investment may fall this year as concerns about defaults on US mortgages prompted lenders to tighten credit, said Jones Lang LaSalle Inc, the world’s second-largest commercial real estate broker.
Asia may be the only market to experience an increase in investment in the second half of this year, Jane Murray, Asia-Pacific head of research at Jones Lang LaSalle, said in Tokyo yesterday. Global direct property investment rose 41 per cent in 2006 to US$699 billion, advancing for a third-straight year.
‘The highly leveraged players who were very active earlier in the year are certainly sitting on the sidelines at the moment,’ Ms Murray said.
The four-year boom in real estate is threatened after the US housing slump raised concerns about the value of mortgages and bonds linked to those loans. Investors are finding it harder to borrow money when they want to fund property acquisitions.
Japan, Singapore, China and India are among the markets offering the best opportunities for investors, according to Jones Lang LaSalle research. Grade A office rents in Japan have gained 80 per cent in the past three years and have more than doubled in Singapore, Ms Murray said.
Grade A buildings are no more than 25 years old, with total leasable floor area of more than 10,000 square metres and more than 800 square metres a floor, according to Jones Lang LaSalle.
Japan features strong economic growth in a large market and is the only country where returns on office buildings exceed local interest rates, also known as a positive yield spread, Ms Murray said.
Morgan Stanley raised a record US$8 billion for a real estate investment fund in June. In April the firm agreed to buy 13 Japanese hotels from All Nippon Airways in the country’s biggest real estate deal.
Japan offers a positive yield spread of 1.56 per cent, compared with negative spreads in other major cities including London, Paris, Frankfurt and New York, said Takeshi Akagi, local director in Japan for Jones Lang LaSalle.
Investment in China rose 23 per cent in the first half of the year even after the government sought to curb property investment to cool gains in housing prices. India, where more than half the population is under the age of 25, doesn’t have enough offices, shops and houses to meet demand, Ms Murray said.
‘It will require major additions to the stock base across every sector over the coming years to accommodate its rapidly growing services sector and the increasing wealth of its population,’ Ms Murray said.
‘When the Indian government begins to deregulate investment for foreign players, we will see a flood of money pouring into that market.’ - Bloomberg
Source : Business Times - 25 Oct 2007
Asia may be the only market to experience an increase in investment in the second half of this year, Jane Murray, Asia-Pacific head of research at Jones Lang LaSalle, said in Tokyo yesterday. Global direct property investment rose 41 per cent in 2006 to US$699 billion, advancing for a third-straight year.
‘The highly leveraged players who were very active earlier in the year are certainly sitting on the sidelines at the moment,’ Ms Murray said.
The four-year boom in real estate is threatened after the US housing slump raised concerns about the value of mortgages and bonds linked to those loans. Investors are finding it harder to borrow money when they want to fund property acquisitions.
Japan, Singapore, China and India are among the markets offering the best opportunities for investors, according to Jones Lang LaSalle research. Grade A office rents in Japan have gained 80 per cent in the past three years and have more than doubled in Singapore, Ms Murray said.
Grade A buildings are no more than 25 years old, with total leasable floor area of more than 10,000 square metres and more than 800 square metres a floor, according to Jones Lang LaSalle.
Japan features strong economic growth in a large market and is the only country where returns on office buildings exceed local interest rates, also known as a positive yield spread, Ms Murray said.
Morgan Stanley raised a record US$8 billion for a real estate investment fund in June. In April the firm agreed to buy 13 Japanese hotels from All Nippon Airways in the country’s biggest real estate deal.
Japan offers a positive yield spread of 1.56 per cent, compared with negative spreads in other major cities including London, Paris, Frankfurt and New York, said Takeshi Akagi, local director in Japan for Jones Lang LaSalle.
Investment in China rose 23 per cent in the first half of the year even after the government sought to curb property investment to cool gains in housing prices. India, where more than half the population is under the age of 25, doesn’t have enough offices, shops and houses to meet demand, Ms Murray said.
‘It will require major additions to the stock base across every sector over the coming years to accommodate its rapidly growing services sector and the increasing wealth of its population,’ Ms Murray said.
‘When the Indian government begins to deregulate investment for foreign players, we will see a flood of money pouring into that market.’ - Bloomberg
Source : Business Times - 25 Oct 2007
Ivy Zelman’s view of the US housing market is gloomy, but it is probably the most realistic.
Ivy Zelman’s view of the US housing market is gloomy, but it is probably the most realistic.
A veteran Wall Street analyst, Ms Zelman, chief executive of the research firm Zelman & Associates, says it is unlikely that the US housing market will recover before 2009, adding that there is a ‘50 to 60 per cent chance of a recession’, as the housing slump curbs consumer spending.
Ms Zelman paints a much darker picture than Federal Reserve chairman Ben Bernanke, who said last week that housing will be a ’significant drag’ on the economy into next year.
When you consider the huge home inventories and tight-as-a-drum mortgage restrictions, it is easy to conclude that the housing slump could extend well past 2008. Unless financing loosens up and buyers return, her prophecy will become a reality.
‘I’ve never seen the market as bad as this,’ Ms Zelman said. ‘And it could get worse. The home-price decline could range from 16 per cent to 22 per cent.’ Monitoring inventory, builder incentives and demand, Ms Zelman is also watching adjustable-rate mortgage resets.
Homeowners with these loans will automatically face higher monthly payments that they may not be able to afford, another trigger for foreclosures or sales. Some US$500 billion of these loans will re-adjusted through 2008, Ms Zelman says.
While foreclosures have declined somewhat from August to September, they still doubled from a year ago, according to RealtyTrac Inc, which monitors the housing market. More homes are still coming on the market, and Ms Zelman says that will only add to the misery.
‘These are the worst inventories we’ve seen as a nation,’ she says. Ms Zelman originally presented her report on Oct 10 to the Home Improvement Research Institute, a trade group based in Florida.
Ms Zelman’s words carry some weight because she was one of the few major Wall Street analysts to warn of a housing decline months before it began late last year.
She was alarmed that home prices far outpaced personal-income increases during the boom, which is how the economic disconnect began. A bubble created artificially high demand that had to deflate sometime. Now, economists and analysts are trying to assess the collateral damage of the bust and sub-prime mortgage meltdown.
Meanwhile, builders are stuck with thousands of new homes they cannot sell and potential buyers are cancelling in droves or are unable to get a mortgage. Housing starts fell to a 14-year low in September.
‘Builders are desperate now and blowing through inventory,’ says Ms Zelman of homebuilders who are doing anything they can to sell homes. ‘Their revenues are shrinking so fast, they can’t keep up.’ The mass psychology that amplifies and spreads the angst of home sellers will put a brake on overall consumer spending, Ms Zelman predicts. ‘
Some 74 per cent of consumer expenditures are correlated to housing. I don’t think the consumer will hold up. They will cut back on things like buying cars and vacations.’ While Ms Zelman forecasts that sales will drop for the next two years, she is not as optimistic on home prices, which she says may continue falling until 2010 or 2011. ‘We’d be better off if prices corrected all at once. It will get worse before it gets better.’
Places where sales were strongest and speculators were most active before the bust will be bedeviled by high home inventories for more than a year. Cities that scored lowest with an ‘F minus’ grade, described as ‘very competitive with a negative bias’ in her firm’s September homebuilding survey, included San Diego, Phoenix, Inland Empire (California), and Fort Myers, Florida. Those rated ‘moderate and stable’ - a ‘C’ in their rankings - were Philadelphia; Raleigh, North Carolina; and San Antonio.
Areas connected to car-related job cuts in Michigan and Ohio will continue to feel pain. Not every market will get pummelled, though. Manhattan seems to be holding up for certain kinds of housing. Prices of co-op apartments with four bedrooms or more, for example, rose 19 per cent in the third quarter from a year ago.
Major markets with the lowest level of housing distress include Bethesda, Maryland; Boston-Cambridge, Massachusetts; and Manchester and Rockingham, New Hampshire. That is according to HomeSmartReports, a service that tracks six variables of home-market risk. ‘Boston is pretty moderate in terms of risk,’ says Mike Ela, president of the service. ‘Lenders have pulled back aggressively.’
But do not expect to land properties at bargain-basement prices. One assumption is that the best values will be in areas glutted with properties. Yet, many sellers will be holding out for prices that they saw at the peak of the boom. Motivated property owners, though, may be willing to deal.
If you are buying a second home or investment properties, keep in mind that your credit record should be up-to-date. You may also find it easier dealing with institutions that sell ‘real-estate-owned’ homes, or properties that went into foreclosure.
Mr Ela, who has ‘low-ball offers’ pending on two bank-owned properties, prefers dealing with institutions ‘because you’re not dealing with the emotion of the seller; it won’t take too long to get a decision’. Because lending standards have tightened, if there are any errors on your credit report that show missed payments or outstanding balances, you should get them corrected. Do not open any new lines you will not use and pay your bills on time. These variables will affect your score and may disqualify you from obtaining financing.
Keep in mind that job growth and consumer spending bear close scrutiny. If Ms Zelman is right about a recession coming, then prices may fall more, plunging the housing market into an even sorrier state. — Bloomberg
Source : Business Times - 25 Oct 2007
A veteran Wall Street analyst, Ms Zelman, chief executive of the research firm Zelman & Associates, says it is unlikely that the US housing market will recover before 2009, adding that there is a ‘50 to 60 per cent chance of a recession’, as the housing slump curbs consumer spending.
Ms Zelman paints a much darker picture than Federal Reserve chairman Ben Bernanke, who said last week that housing will be a ’significant drag’ on the economy into next year.
When you consider the huge home inventories and tight-as-a-drum mortgage restrictions, it is easy to conclude that the housing slump could extend well past 2008. Unless financing loosens up and buyers return, her prophecy will become a reality.
‘I’ve never seen the market as bad as this,’ Ms Zelman said. ‘And it could get worse. The home-price decline could range from 16 per cent to 22 per cent.’ Monitoring inventory, builder incentives and demand, Ms Zelman is also watching adjustable-rate mortgage resets.
Homeowners with these loans will automatically face higher monthly payments that they may not be able to afford, another trigger for foreclosures or sales. Some US$500 billion of these loans will re-adjusted through 2008, Ms Zelman says.
While foreclosures have declined somewhat from August to September, they still doubled from a year ago, according to RealtyTrac Inc, which monitors the housing market. More homes are still coming on the market, and Ms Zelman says that will only add to the misery.
‘These are the worst inventories we’ve seen as a nation,’ she says. Ms Zelman originally presented her report on Oct 10 to the Home Improvement Research Institute, a trade group based in Florida.
Ms Zelman’s words carry some weight because she was one of the few major Wall Street analysts to warn of a housing decline months before it began late last year.
She was alarmed that home prices far outpaced personal-income increases during the boom, which is how the economic disconnect began. A bubble created artificially high demand that had to deflate sometime. Now, economists and analysts are trying to assess the collateral damage of the bust and sub-prime mortgage meltdown.
Meanwhile, builders are stuck with thousands of new homes they cannot sell and potential buyers are cancelling in droves or are unable to get a mortgage. Housing starts fell to a 14-year low in September.
‘Builders are desperate now and blowing through inventory,’ says Ms Zelman of homebuilders who are doing anything they can to sell homes. ‘Their revenues are shrinking so fast, they can’t keep up.’ The mass psychology that amplifies and spreads the angst of home sellers will put a brake on overall consumer spending, Ms Zelman predicts. ‘
Some 74 per cent of consumer expenditures are correlated to housing. I don’t think the consumer will hold up. They will cut back on things like buying cars and vacations.’ While Ms Zelman forecasts that sales will drop for the next two years, she is not as optimistic on home prices, which she says may continue falling until 2010 or 2011. ‘We’d be better off if prices corrected all at once. It will get worse before it gets better.’
Places where sales were strongest and speculators were most active before the bust will be bedeviled by high home inventories for more than a year. Cities that scored lowest with an ‘F minus’ grade, described as ‘very competitive with a negative bias’ in her firm’s September homebuilding survey, included San Diego, Phoenix, Inland Empire (California), and Fort Myers, Florida. Those rated ‘moderate and stable’ - a ‘C’ in their rankings - were Philadelphia; Raleigh, North Carolina; and San Antonio.
Areas connected to car-related job cuts in Michigan and Ohio will continue to feel pain. Not every market will get pummelled, though. Manhattan seems to be holding up for certain kinds of housing. Prices of co-op apartments with four bedrooms or more, for example, rose 19 per cent in the third quarter from a year ago.
Major markets with the lowest level of housing distress include Bethesda, Maryland; Boston-Cambridge, Massachusetts; and Manchester and Rockingham, New Hampshire. That is according to HomeSmartReports, a service that tracks six variables of home-market risk. ‘Boston is pretty moderate in terms of risk,’ says Mike Ela, president of the service. ‘Lenders have pulled back aggressively.’
But do not expect to land properties at bargain-basement prices. One assumption is that the best values will be in areas glutted with properties. Yet, many sellers will be holding out for prices that they saw at the peak of the boom. Motivated property owners, though, may be willing to deal.
If you are buying a second home or investment properties, keep in mind that your credit record should be up-to-date. You may also find it easier dealing with institutions that sell ‘real-estate-owned’ homes, or properties that went into foreclosure.
Mr Ela, who has ‘low-ball offers’ pending on two bank-owned properties, prefers dealing with institutions ‘because you’re not dealing with the emotion of the seller; it won’t take too long to get a decision’. Because lending standards have tightened, if there are any errors on your credit report that show missed payments or outstanding balances, you should get them corrected. Do not open any new lines you will not use and pay your bills on time. These variables will affect your score and may disqualify you from obtaining financing.
Keep in mind that job growth and consumer spending bear close scrutiny. If Ms Zelman is right about a recession coming, then prices may fall more, plunging the housing market into an even sorrier state. — Bloomberg
Source : Business Times - 25 Oct 2007
Property investment in Japan grew 16 per cent to a record US$30 billion in the first half of 2007, reflecting the country’s solid real estate market
Property investment in Japan grew 16 per cent to a record US$30 billion in the first half of 2007, reflecting the country’s solid real estate market, consultancy firm Jones Lang LaSalle Inc said yesterday.
The Asia-Pacific region has largely escaped the sub-prime mortgage crisis and will likely see more money flowing in during the coming months while other regions may retreat, it said.
Japan accounted for nearly 55 per cent of total transaction volume in Asia-Pacific for the January-June period. Cross-border transaction volume in Japan’s property market also grew three times to US$15 billion, compared with US$28.2 billion of overall cross-border investments in the Asia-Pacific, region Jones Lang LaSalle said.
‘(Japan’s) office sector remains attractive but other sectors are also targeted such as industrial and hotel assets,’ Jane Murray, head of research for Jones Lang LaSalle, told a news conference.
Land prices in Japan started to pick up last year for the first time in 16 years against the backdrop of an economic recovery, and the property market has drawn money from domestic as well as foreign investors looking for higher returns.
With interest rates in Japan at rock bottom, the low cost of funding has made Japanese assets attractive. In the April-June quarter, the spread between the cap rate - a yield on property investments - and the five-year swop rate stood at 1.56 per cent for Tokyo, while the spread was negative for London, Paris, Frankfurt and New York, Jones Lang LaSalle said.
Still, competition is heating up in Japan.
‘We will see further increased competition from local investors, which means that cross-border investors are going to have to be more creative in their strategies and consider value-added and opportunistic plays,’ Ms Murray said.
Global direct commercial real estate investment leapt 25 per cent to a record US$385 billion in the first half, although Jones Lang LaSalle sees a slowdown in Europe and the United States as some property players which are highly leveraged and now face difficulties in funding amid the credit market woes are staying on the sidelines.
‘We do believe the second half this year will be somewhat lower for the other two regions but the Asia-Pacific region could even be stronger than the first half,’ said Ms Murray.
Cross-border investors purchased US$19.9 billion of assets in the US property market while they sold US$22.7 billion in the first half of this year. In Japan, on the other hand, US$9.6 billion of inter-regional purchases were made while only US$3.8 billion were sold.
Ms Murray said Asian countries had learnt a lesson from the Asian financial crisis of the 1990s and had been prudent in borrowing and had also limited their exposure to sub-prime loans.
China and India will continue to draw investors attracted by their robust economic growth.India, where more than a half of the population is under 25 years old, could offer huge potential, especially if the Indian government takes more deregulatory steps to allow more foreign capital to enter, she said.
India currently restricts foreign investments and activity is limited to property developments.
In Singapore, another hot market, office rents jumped 250 per cent in the last three years, compared with an 80 per cent rise in Japan, Ms Murray said. — Reuters
Source : Business Times - 25 Oct 2007
The Asia-Pacific region has largely escaped the sub-prime mortgage crisis and will likely see more money flowing in during the coming months while other regions may retreat, it said.
Japan accounted for nearly 55 per cent of total transaction volume in Asia-Pacific for the January-June period. Cross-border transaction volume in Japan’s property market also grew three times to US$15 billion, compared with US$28.2 billion of overall cross-border investments in the Asia-Pacific, region Jones Lang LaSalle said.
‘(Japan’s) office sector remains attractive but other sectors are also targeted such as industrial and hotel assets,’ Jane Murray, head of research for Jones Lang LaSalle, told a news conference.
Land prices in Japan started to pick up last year for the first time in 16 years against the backdrop of an economic recovery, and the property market has drawn money from domestic as well as foreign investors looking for higher returns.
With interest rates in Japan at rock bottom, the low cost of funding has made Japanese assets attractive. In the April-June quarter, the spread between the cap rate - a yield on property investments - and the five-year swop rate stood at 1.56 per cent for Tokyo, while the spread was negative for London, Paris, Frankfurt and New York, Jones Lang LaSalle said.
Still, competition is heating up in Japan.
‘We will see further increased competition from local investors, which means that cross-border investors are going to have to be more creative in their strategies and consider value-added and opportunistic plays,’ Ms Murray said.
Global direct commercial real estate investment leapt 25 per cent to a record US$385 billion in the first half, although Jones Lang LaSalle sees a slowdown in Europe and the United States as some property players which are highly leveraged and now face difficulties in funding amid the credit market woes are staying on the sidelines.
‘We do believe the second half this year will be somewhat lower for the other two regions but the Asia-Pacific region could even be stronger than the first half,’ said Ms Murray.
Cross-border investors purchased US$19.9 billion of assets in the US property market while they sold US$22.7 billion in the first half of this year. In Japan, on the other hand, US$9.6 billion of inter-regional purchases were made while only US$3.8 billion were sold.
Ms Murray said Asian countries had learnt a lesson from the Asian financial crisis of the 1990s and had been prudent in borrowing and had also limited their exposure to sub-prime loans.
China and India will continue to draw investors attracted by their robust economic growth.India, where more than a half of the population is under 25 years old, could offer huge potential, especially if the Indian government takes more deregulatory steps to allow more foreign capital to enter, she said.
India currently restricts foreign investments and activity is limited to property developments.
In Singapore, another hot market, office rents jumped 250 per cent in the last three years, compared with an 80 per cent rise in Japan, Ms Murray said. — Reuters
Source : Business Times - 25 Oct 2007
It has taken four consecutive interest rate increases to record high levels but New Zealand’s central bank looks to have finally taken the heat out
It has taken four consecutive interest rate increases to record high levels but New Zealand’s central bank looks to have finally taken the heat out of its biggest inflation worry - the housing market.
Still, the Reserve Bank of New Zealand is unlikely to let its guard down any time soon because other pockets of the economy, including a tight labour market and a booming dairy sector, are putting upward pressure on consumer prices.
That is likely to keep the central bank’s cash rate of 8.25 per cent, the highest in the industrialised world and a major draw for investors seeking high yields, at current levels well into 2008, economists say.
‘The Reserve Bank is having success in the housing arena, but the problem is that the slowdown in the housing sector is just not diffusing through to the rest of the economy,’ said Cameron Bagrie, chief economist at ANZ-National Bank.
‘Realistically, we’re going to have to see house prices fall.’ A house has long been the main investment asset for New Zealanders and so a key factor for the central bank in deciding monetary policy.
Government agency Quotable Value says residential house prices have climbed steadily for nearly 20 years, barring a slight dip in 1998.
The absence of a capital gains tax, an immigration-driven population expansion and consumer-friendly lending practices have all contributed to property prices nearly doubling between 2001 and 2007.
The property market cooled briefly last year but regained strength earlier this year, prompting the central bank to resume tightening monetary policy by lifting interest rates by a total of one percentage point.
‘The slowing housing market is core to RBNZ view of the economy slowing,’ said Shamubeel Eaqub, director of investment research at Goldman Sachs JBWere. ‘This has been a major source of inflation and activity and a major amplifier of the economic cycle. They need this housing market to slow and slow for a prolonged period of time.’
Housing data, showing median house prices levelling off and sales coming down sharply, suggest a slowdown has already begun.
The Real Estate Institute of New Zealand said annual price gains eased to 12.3 per cent in September from 12.9 per cent in August. Its figures show monthly sales have fallen for four straight months.
With lenders more risk averse following the global credit squeeze, growth in net migration easing and longer-term mortgage rates remaining elevated, many analysts think the current slowdown is here to stay.
Finance Minister Michael Cullen told Reuters in an interview last week he was also seeing appropriate signs of a slowdown in the housing market though inflation remained a concern.
The central bank forecast in September that annual house price inflation, currently around 13 per cent, would slow to around 10 per cent by the end of the year and would then continue easing through 2008. It expects prices to start falling in 2009.
The RBNZ will review its policy today, although all 17 economists in a Reuters poll predicted interest rates would remain at 8.25 per cent.
Most of the 17 economists expect the central bank to stay put at least until mid-2008 because record low unemployment, rising wages and the prospects of higher farmers’ income from the global dairy boom will provide fuel for inflation. — Reuters
Source : Business Times - 25 Oct 2007
Still, the Reserve Bank of New Zealand is unlikely to let its guard down any time soon because other pockets of the economy, including a tight labour market and a booming dairy sector, are putting upward pressure on consumer prices.
That is likely to keep the central bank’s cash rate of 8.25 per cent, the highest in the industrialised world and a major draw for investors seeking high yields, at current levels well into 2008, economists say.
‘The Reserve Bank is having success in the housing arena, but the problem is that the slowdown in the housing sector is just not diffusing through to the rest of the economy,’ said Cameron Bagrie, chief economist at ANZ-National Bank.
‘Realistically, we’re going to have to see house prices fall.’ A house has long been the main investment asset for New Zealanders and so a key factor for the central bank in deciding monetary policy.
Government agency Quotable Value says residential house prices have climbed steadily for nearly 20 years, barring a slight dip in 1998.
The absence of a capital gains tax, an immigration-driven population expansion and consumer-friendly lending practices have all contributed to property prices nearly doubling between 2001 and 2007.
The property market cooled briefly last year but regained strength earlier this year, prompting the central bank to resume tightening monetary policy by lifting interest rates by a total of one percentage point.
‘The slowing housing market is core to RBNZ view of the economy slowing,’ said Shamubeel Eaqub, director of investment research at Goldman Sachs JBWere. ‘This has been a major source of inflation and activity and a major amplifier of the economic cycle. They need this housing market to slow and slow for a prolonged period of time.’
Housing data, showing median house prices levelling off and sales coming down sharply, suggest a slowdown has already begun.
The Real Estate Institute of New Zealand said annual price gains eased to 12.3 per cent in September from 12.9 per cent in August. Its figures show monthly sales have fallen for four straight months.
With lenders more risk averse following the global credit squeeze, growth in net migration easing and longer-term mortgage rates remaining elevated, many analysts think the current slowdown is here to stay.
Finance Minister Michael Cullen told Reuters in an interview last week he was also seeing appropriate signs of a slowdown in the housing market though inflation remained a concern.
The central bank forecast in September that annual house price inflation, currently around 13 per cent, would slow to around 10 per cent by the end of the year and would then continue easing through 2008. It expects prices to start falling in 2009.
The RBNZ will review its policy today, although all 17 economists in a Reuters poll predicted interest rates would remain at 8.25 per cent.
Most of the 17 economists expect the central bank to stay put at least until mid-2008 because record low unemployment, rising wages and the prospects of higher farmers’ income from the global dairy boom will provide fuel for inflation. — Reuters
Source : Business Times - 25 Oct 2007
Singapore’s hike in property tax on hotels next year will not apply to service residences, the Inland Revenue Authority of Singapore (IRAS) said yes
Singapore’s hike in property tax on hotels next year will not apply to service residences, the Inland Revenue Authority of Singapore (IRAS) said yesterday.
Service residences, many of which provide food and cleaning services, have emerged as an alternative to hotels in recent years for business travellers on longer stays.
Singapore-listed Ascott Group, the largest service residence operator in Europe and Asia, has about 600 units for rent in Singapore.
The annual value of a hotel next year will be calculated based on 20 per cent of gross room receipts in the preceding year, and at 25 per cent in 2009, up from the current 15 per cent, according to the IRAS. Hotel owners have to pay 10 per cent of the annual value to IRAS as property tax. — Reuters
Source : Business Times - 25 Oct 2007
Service residences, many of which provide food and cleaning services, have emerged as an alternative to hotels in recent years for business travellers on longer stays.
Singapore-listed Ascott Group, the largest service residence operator in Europe and Asia, has about 600 units for rent in Singapore.
The annual value of a hotel next year will be calculated based on 20 per cent of gross room receipts in the preceding year, and at 25 per cent in 2009, up from the current 15 per cent, according to the IRAS. Hotel owners have to pay 10 per cent of the annual value to IRAS as property tax. — Reuters
Source : Business Times - 25 Oct 2007
British bank Barclays is expected to sign a lease soon for about 100,000 square feet of space - or four floors - at Marina Bay Financial Centre
British bank Barclays is expected to sign a lease soon for about 100,000 square feet of space - or four floors - at Marina Bay Financial Centre’s 50-storey Tower 2, industry observers say. This will be under the project’s first phase, to be completed early in 2010.
So far, MBFC’s developer has signed up Swiss private bank Pictet and UK-based stockbroking firm Icap as tenants for Tower 2. They will take 25,000 sq ft and 35,000 sq ft respectively.
Singapore’s DBS is also believed to be close to finalising a deal to lease about 700,000 sq ft at MBFC’s Tower 3, which will also be 50 storeys high. This tower, which will have about 1.3 million sq ft of net lettable space for offices, is part of the second phase of the development, slated for completion in late 2011.
A host of other foreign banks - including Royal Bank of Scotland, Merrill Lynch, HSBC, JP Morgan and Lehman Brothers - are also in negotiations for space at MBFC, industry observers say.
MBFC’s 33-storey Tower 1 has been fully leased, mostly to Standard Chartered which is taking 508,298 sq ft. Smaller tenants signed up at this tower include French corporate and investment bank Natixis, which is taking 65,000 sq ft, and Wellington International Management Co (21,000 sq ft).
MBFC is developed by a consortium comprising Keppel Land, Hongkong Land and Cheung Kong Holdings. The trio also developed One Raffles Quay (ORQ) nearby. Barclays would be the first common tenant in the two developments. It occupies about 90,000 sq ft on the top three levels of ORQ’s 27-storey South Tower.
Barclays has also leased premises at Samsung Hub (about 52,400 sq ft) and Capital Square (more than 40,000 sq ft) - both in Church Street - and at The Atrium @ Orchard near Dhoby Ghaut MRT Station (about 80,000 sq ft).
MBFC’s total development cost is estimated at more than $4 billion. Its developers clinched the 99-year leasehold site in an Urban Redevelopment Authority tender in July 2005 and bought the land parcel in two phases - paying $381 per square foot per plot ratio for the initial phase in 2005, and an effective land price of $435 psf ppr for the second phase earlier this year under a formula that factored in an increase in office land values in the vicinity since the initial bid in the 2005 tender.
The entire site can be developed to yield a gross floor area of about 4.7 million sq ft.
Source : Business Times - 25 Oct 2007
So far, MBFC’s developer has signed up Swiss private bank Pictet and UK-based stockbroking firm Icap as tenants for Tower 2. They will take 25,000 sq ft and 35,000 sq ft respectively.
Singapore’s DBS is also believed to be close to finalising a deal to lease about 700,000 sq ft at MBFC’s Tower 3, which will also be 50 storeys high. This tower, which will have about 1.3 million sq ft of net lettable space for offices, is part of the second phase of the development, slated for completion in late 2011.
A host of other foreign banks - including Royal Bank of Scotland, Merrill Lynch, HSBC, JP Morgan and Lehman Brothers - are also in negotiations for space at MBFC, industry observers say.
MBFC’s 33-storey Tower 1 has been fully leased, mostly to Standard Chartered which is taking 508,298 sq ft. Smaller tenants signed up at this tower include French corporate and investment bank Natixis, which is taking 65,000 sq ft, and Wellington International Management Co (21,000 sq ft).
MBFC is developed by a consortium comprising Keppel Land, Hongkong Land and Cheung Kong Holdings. The trio also developed One Raffles Quay (ORQ) nearby. Barclays would be the first common tenant in the two developments. It occupies about 90,000 sq ft on the top three levels of ORQ’s 27-storey South Tower.
Barclays has also leased premises at Samsung Hub (about 52,400 sq ft) and Capital Square (more than 40,000 sq ft) - both in Church Street - and at The Atrium @ Orchard near Dhoby Ghaut MRT Station (about 80,000 sq ft).
MBFC’s total development cost is estimated at more than $4 billion. Its developers clinched the 99-year leasehold site in an Urban Redevelopment Authority tender in July 2005 and bought the land parcel in two phases - paying $381 per square foot per plot ratio for the initial phase in 2005, and an effective land price of $435 psf ppr for the second phase earlier this year under a formula that factored in an increase in office land values in the vicinity since the initial bid in the 2005 tender.
The entire site can be developed to yield a gross floor area of about 4.7 million sq ft.
Source : Business Times - 25 Oct 2007
PARAGON Shopping Centre has clinched two awards in Shopping Centre Scorecard, an annual national industry rating scheme which recognises well-run
PARAGON Shopping Centre has clinched two awards in Shopping Centre Scorecard, an annual national industry rating scheme which recognises well-run malls in Singapore.
Paragon, which is fully owned by Singapore Press Holdings Ltd (SPH), emerged tops in two of the three categories - best efforts in advertising & promotions and tenant relationships.
The results were based on votes by retailers. The contest is organised by the Singapore Retailers Association.
This is the second year the mall has won the Shopping Centre Scorecard. Last year, it won for best efforts in maintaining its premises, the third category.
Paragon, which now enjoys full occupancy, is positioned as an upscale fashion and accessories mall. The mall is home to many international fashion designer names such as Prada, Gucci, Burberry and Versace.
‘Good mall management is a synergy of getting the right tenant mix and increasing shopper traffic, apart from handling ongoing building maintenance,’ said Linda Kwan, the mall’s general manager . ‘Cultivating a good working relationship with our tenants is a big factor in our success. Coupled with strong brand building and proactive A&P programmes, our efforts in mall management would further boost shopper traffic and sales for the mutual benefit of all.’
Source : Business Times - 25 Oct 2007
Paragon, which is fully owned by Singapore Press Holdings Ltd (SPH), emerged tops in two of the three categories - best efforts in advertising & promotions and tenant relationships.
The results were based on votes by retailers. The contest is organised by the Singapore Retailers Association.
This is the second year the mall has won the Shopping Centre Scorecard. Last year, it won for best efforts in maintaining its premises, the third category.
Paragon, which now enjoys full occupancy, is positioned as an upscale fashion and accessories mall. The mall is home to many international fashion designer names such as Prada, Gucci, Burberry and Versace.
‘Good mall management is a synergy of getting the right tenant mix and increasing shopper traffic, apart from handling ongoing building maintenance,’ said Linda Kwan, the mall’s general manager . ‘Cultivating a good working relationship with our tenants is a big factor in our success. Coupled with strong brand building and proactive A&P programmes, our efforts in mall management would further boost shopper traffic and sales for the mutual benefit of all.’
Source : Business Times - 25 Oct 2007
Vietnam is drafting a real estate ownership tax law to curb skyrocketing property prices and speculation amid scenes of people queuing overnight
Vietnam is drafting a real estate ownership tax law to curb skyrocketing property prices and speculation amid scenes of people queuing overnight to join lotteries for apartments, property dealers said.
They said overall property prices have gone up about 50 per cent since the beginning of the year, mainly because investors diverted money from the stock market into property.
Speculation in land and equities in the emerging-market economy is becoming a concern for policy-makers and economists who want to avoid market bubbles and sustain Vietnam’s high growth rates for years to come.
‘In some areas in Hanoi and Ho Chi Minh City, especially in the luxury condominium sector, prices have tripled in the past year alone,’ Nguyen Xuan Dao, chief executive of property developer Vietnam Property Inc, said.
Dealers said most condominium projects in Hanoi and Ho Chi Minh City are sold out before they are even built.
Mr Dao said a 150- square-metre condominium in Hanoi’s Ciputra City, a development by Indonesian developer PT Ciputra Development Tbk, now sells for about US$240,000, compared with about US$80,000 last summer.
This in a country where the GDP annual per capita income is about US$835 this year, although economists believe it is five or six times higher in Hanoi and Ho Chi Minh City.
Property dealers said that according to the draft law, owners who have more than one home would be subject to annual real estate taxes. The law would come into effect in 2010.
Only transfer taxes are now levied on property sales and most transactions are paid in cash, making it difficult for the authorities to track them and collect taxes on capital gains.
Property dealers said that a government plan announced in July to allow Vietnamese living overseas and expatriates to own real estate on a freehold basis had also triggered speculators to buy more property for future re-sale.
‘Most people buy to re-sell and the people who really need a place to live cannot afford the price,’ said Tran Du Lich, director of Ho Chi Minh City Economic Institute.
In Ho Chi Minh City, where most overseas Vietnamese from the United States and Europe choose to resettle, prices have soared between 60 and 100 per cent.
A square metre at luxury project The Lancaster in the heart of business district 1 jumped from about US$3,000 last year to US$4,200 this month. Rents for luxury apartments are up by 20 per cent to about US$35-US$38 per sq m, property management firm CBRE Richard Ellis said.
Last week, hundreds of buyers camped overnight outside the sales office of Singapore’s CapitaLand, to pay deposits for The Vista project on the Saigon River with prices starting at about US$200,000 each.
Other developers, including Taiwanese developer Phu My Hung, asked prospective buyers to pay US$12,000 to participate in a lottery in which only 35 per cent would win the right to buy its apartments. — Reuters
Source : Business Times - 25 Oct 2007
They said overall property prices have gone up about 50 per cent since the beginning of the year, mainly because investors diverted money from the stock market into property.
Speculation in land and equities in the emerging-market economy is becoming a concern for policy-makers and economists who want to avoid market bubbles and sustain Vietnam’s high growth rates for years to come.
‘In some areas in Hanoi and Ho Chi Minh City, especially in the luxury condominium sector, prices have tripled in the past year alone,’ Nguyen Xuan Dao, chief executive of property developer Vietnam Property Inc, said.
Dealers said most condominium projects in Hanoi and Ho Chi Minh City are sold out before they are even built.
Mr Dao said a 150- square-metre condominium in Hanoi’s Ciputra City, a development by Indonesian developer PT Ciputra Development Tbk, now sells for about US$240,000, compared with about US$80,000 last summer.
This in a country where the GDP annual per capita income is about US$835 this year, although economists believe it is five or six times higher in Hanoi and Ho Chi Minh City.
Property dealers said that according to the draft law, owners who have more than one home would be subject to annual real estate taxes. The law would come into effect in 2010.
Only transfer taxes are now levied on property sales and most transactions are paid in cash, making it difficult for the authorities to track them and collect taxes on capital gains.
Property dealers said that a government plan announced in July to allow Vietnamese living overseas and expatriates to own real estate on a freehold basis had also triggered speculators to buy more property for future re-sale.
‘Most people buy to re-sell and the people who really need a place to live cannot afford the price,’ said Tran Du Lich, director of Ho Chi Minh City Economic Institute.
In Ho Chi Minh City, where most overseas Vietnamese from the United States and Europe choose to resettle, prices have soared between 60 and 100 per cent.
A square metre at luxury project The Lancaster in the heart of business district 1 jumped from about US$3,000 last year to US$4,200 this month. Rents for luxury apartments are up by 20 per cent to about US$35-US$38 per sq m, property management firm CBRE Richard Ellis said.
Last week, hundreds of buyers camped overnight outside the sales office of Singapore’s CapitaLand, to pay deposits for The Vista project on the Saigon River with prices starting at about US$200,000 each.
Other developers, including Taiwanese developer Phu My Hung, asked prospective buyers to pay US$12,000 to participate in a lottery in which only 35 per cent would win the right to buy its apartments. — Reuters
Source : Business Times - 25 Oct 2007
ASCOTT Residence Trust (ART), the first pan-Asian serviced residence real estate investment trust (Reit), achieved an 84 per cent
ASCOTT Residence Trust (ART), the first pan-Asian serviced residence real estate investment trust (Reit), achieved an 84 per cent year-on-year growth in unitholders’ distribution to $12 million for the third quarter ended Sept 30. The results, which also exceeded its own estimate by 9 per cent, were underpinned by strong operating performance and accretive acquisitions.
This gave a distribution per unit of 1.99 cents for the quarter, which is 39 per cent higher than for the corresponding period last year and 9 per cent better than forecast.
What stood out was that revenues per available unit for its serviced residences in the Philippines and Singapore were 32 per cent and 22 per cent better than forecast in the third quarter.
‘As part of the overall growth strategy, ART will continue to acquire quality serviced residences and rental housing properties to achieve a portfolio value of $2 billion by end-2008,’ said Lim Jit Poh, chairman of Ascott Residence Trust Management Ltd (ARTML), the manager of the trust.
ART has a geographically diversified portfolio of 18 properties in 10 cities across seven countries including Australia, China, Indonesia, Japan, the Philippines, Singapore and Vietnam. Its portfolio value is currently $1.2 billion, comprising of 2,952 serviced residence units.
‘Demand for serviced residences is expected to remain strong and we are confident of delivering the forecast distribution per unit of 7.27 cents for the year,’ ARTML’s chief executive Chong Kee Hiong said.
Source : Business Times - 25 Oct 2007
This gave a distribution per unit of 1.99 cents for the quarter, which is 39 per cent higher than for the corresponding period last year and 9 per cent better than forecast.
What stood out was that revenues per available unit for its serviced residences in the Philippines and Singapore were 32 per cent and 22 per cent better than forecast in the third quarter.
‘As part of the overall growth strategy, ART will continue to acquire quality serviced residences and rental housing properties to achieve a portfolio value of $2 billion by end-2008,’ said Lim Jit Poh, chairman of Ascott Residence Trust Management Ltd (ARTML), the manager of the trust.
ART has a geographically diversified portfolio of 18 properties in 10 cities across seven countries including Australia, China, Indonesia, Japan, the Philippines, Singapore and Vietnam. Its portfolio value is currently $1.2 billion, comprising of 2,952 serviced residence units.
‘Demand for serviced residences is expected to remain strong and we are confident of delivering the forecast distribution per unit of 7.27 cents for the year,’ ARTML’s chief executive Chong Kee Hiong said.
Source : Business Times - 25 Oct 2007
THE public tender for an industrial site at Sin Ming Lane has closed with the top bid of $68.9 million put in by MV Land Pte Ltd.
THE public tender for an industrial site at Sin Ming Lane has closed with the top bid of $68.9 million put in by MV Land Pte Ltd.
Based on land area of about 5.13 ha and a plot ratio of 2.5, the unit price of the parcel works out to about $50 per square foot per plot ratio (psf ppr).
The parcel was the first of the two industrial sites tendered under the confirmed list for the second-half 2007 Government Industrial Land Sales programme. The other site on the confirmed list is at Jalan Tepong.
The tender for the Sin Ming Lane site closed yesterday with five bids received by the Urban Redevelopment Authority.
The second highest bid of $65.4 million - about 5 per cent lower than MV Land’s bid - came from Soon Lee Land Pte Ltd.
This should come as some relief for MV Land, which through associate company Eastpoint Development, recently outbid EL Development for an industrial site at Kaki Bukit Road 3 by 58 per cent to pay $72 psf ppr - the highest-ever unit land price for a 30-year leasehold industrial plot.
Eastpoint Development is controlled by Lim Kim Hong and Lim Huixing.
The top bid of $50 psf ppr for the Sing Ming Lane site is ‘reasonable’, said Savills Singapore’s director of industrial business space Dominic Peters. ‘The market for such properties has gone up about 15 per cent in the last six months.’
The site is zoned Business 1 and can be used for clean and light industrial use. Mr Peters expects that the developer will want to build a ramp-up facility. A possible use could be a service centre, he said.
The breakeven price for a project could be around $220 psf, which would mean it could be sold for $250-$280 psf, he reckons. ‘Similar developments are already selling for between $260-$280 psf.’
A decision on the award of the tender will be made after the bids have been evaluated by URA.
MV Land and Eastpoint Development have been hot on the acquisition trail this year, bidding for - though not clinching - a commercial site next to HDB Hub in Toa Payoh, a residential site near Potong Pasir MRT Station and the maiden transitional office site next to Newton MRT Station.
Source : Business Times - 25 Oct 2007
Based on land area of about 5.13 ha and a plot ratio of 2.5, the unit price of the parcel works out to about $50 per square foot per plot ratio (psf ppr).
The parcel was the first of the two industrial sites tendered under the confirmed list for the second-half 2007 Government Industrial Land Sales programme. The other site on the confirmed list is at Jalan Tepong.
The tender for the Sin Ming Lane site closed yesterday with five bids received by the Urban Redevelopment Authority.
The second highest bid of $65.4 million - about 5 per cent lower than MV Land’s bid - came from Soon Lee Land Pte Ltd.
This should come as some relief for MV Land, which through associate company Eastpoint Development, recently outbid EL Development for an industrial site at Kaki Bukit Road 3 by 58 per cent to pay $72 psf ppr - the highest-ever unit land price for a 30-year leasehold industrial plot.
Eastpoint Development is controlled by Lim Kim Hong and Lim Huixing.
The top bid of $50 psf ppr for the Sing Ming Lane site is ‘reasonable’, said Savills Singapore’s director of industrial business space Dominic Peters. ‘The market for such properties has gone up about 15 per cent in the last six months.’
The site is zoned Business 1 and can be used for clean and light industrial use. Mr Peters expects that the developer will want to build a ramp-up facility. A possible use could be a service centre, he said.
The breakeven price for a project could be around $220 psf, which would mean it could be sold for $250-$280 psf, he reckons. ‘Similar developments are already selling for between $260-$280 psf.’
A decision on the award of the tender will be made after the bids have been evaluated by URA.
MV Land and Eastpoint Development have been hot on the acquisition trail this year, bidding for - though not clinching - a commercial site next to HDB Hub in Toa Payoh, a residential site near Potong Pasir MRT Station and the maiden transitional office site next to Newton MRT Station.
Source : Business Times - 25 Oct 2007
A 99-YEAR leasehold site for private condo development at Elias Road in Pasir Ris has been launched for tender by the state.
A 99-YEAR leasehold site for private condo development at Elias Road in Pasir Ris has been launched for tender by the state.
CB Richard Ellis expects the 152,054 square foot site to fetch bids of between $260 and $300 per square foot of potential gross floor area, translating into a breakeven cost of about $620 to $660 psf for a new condo on the site. CBRE reckons that the future project would be able to sell for above $700 psf, assuming it is launched in the third quarter next year.
It noted that recent transactions for units in the freehold Ris Grandeur have been at $650-700 psf and those at Savannah CondoPark and Modena (both on 99-year leasehold sites) at above $650 psf.
Referring to the Elias Road site, CBRE executive director Li Hiaw Ho reckons that there may be a pool of HDB dwellers in the neighbourhood ready to upgrade to a new private condo. ‘Units in the new condo project will also have rental potential given the proximity to the beach and other recreational facilities, as well as Changi International Airport,’ he added.
Analysts estimate that the site offered by the Housing & Development Board can be developed into a condominium with about 380 units averaging 1,200 sq ft. The tender closes on Dec 18.
The plot is on the confirmed list of the Government Land Sales Programme for second-half 2007. Earlier this month, the state offered two other condo sites, also under the confirmed list. They are a 2.2-hectare plot next to Lakeside MRT Station in Jurong that can be developed into about 680 units, and a site at Woodlands Ave 2/ Rosewood Drive that can yield about 200 units.
Source : Business Times - 25 Oct 2007
CB Richard Ellis expects the 152,054 square foot site to fetch bids of between $260 and $300 per square foot of potential gross floor area, translating into a breakeven cost of about $620 to $660 psf for a new condo on the site. CBRE reckons that the future project would be able to sell for above $700 psf, assuming it is launched in the third quarter next year.
It noted that recent transactions for units in the freehold Ris Grandeur have been at $650-700 psf and those at Savannah CondoPark and Modena (both on 99-year leasehold sites) at above $650 psf.
Referring to the Elias Road site, CBRE executive director Li Hiaw Ho reckons that there may be a pool of HDB dwellers in the neighbourhood ready to upgrade to a new private condo. ‘Units in the new condo project will also have rental potential given the proximity to the beach and other recreational facilities, as well as Changi International Airport,’ he added.
Analysts estimate that the site offered by the Housing & Development Board can be developed into a condominium with about 380 units averaging 1,200 sq ft. The tender closes on Dec 18.
The plot is on the confirmed list of the Government Land Sales Programme for second-half 2007. Earlier this month, the state offered two other condo sites, also under the confirmed list. They are a 2.2-hectare plot next to Lakeside MRT Station in Jurong that can be developed into about 680 units, and a site at Woodlands Ave 2/ Rosewood Drive that can yield about 200 units.
Source : Business Times - 25 Oct 2007
MACARTHURCOOK Industrial Reit (MI-Reit) said yesterday that its distributable income for the second quarter ended Sept 30 came in at $4.85 million
MACARTHURCOOK Industrial Reit (MI-Reit) said yesterday that its distributable income for the second quarter ended Sept 30 came in at $4.85 million, with distribution per unit (DPU) at 1.86 cents, both in line with its forecast.
This worked out to an annualised DPU of 7.38 cents, said MI-Reit. The annualised yield is 6.05 per cent based on the closing price of $1.22 per unit on Sept 30.
Its net property income of $5.91 million for the quarter was higher than the $4.7 million seen in the preceding quarter but was a 0.6 per cent dip from its own estimate.
Thanks to a revaluation of the initial 12 properties in MI-Reit’s portfolio, its net asset value per unit rose by 13.3 per cent quarter-on-quarter to $1.28, and raised its book value from $316.2 million to $354 million at the end of the fiscal second quarter.
‘In the short time since listing on April 19, we have successfully executed the acquisition of three properties; two of which are pending completion with an aggregate value of $109.3 million and the third, which has been completed for $16.8 million,’ said Chris Calvert, chief executive of the MI-Reit manager.
‘We continue to be focused on achieving our target of $500 million in acquisitions per annum,’ he added.
He noted that these acquisitions will enhance income stability and diversification as a result of the reduced reliance on any single asset for income.
Over the next 12-18 months, a majority of MI-Reit’s acquisitions will be made in Singapore but investment grade industrial property in Japan, Hong Kong, Korea and Malaysia will also be considered.
Given the bullish outlook on the rents and capital values of industrial space, which are poised for a further rise of up to 10 per cent in the final quarter of 2007, MI-Reit manager said it expects to deliver an annualised distribution of 7.58 cents for the current financial year ending March 31, 2008, in line with forecasts.
MI-Reit also announced yesterday that it has signed an agreement to buy a logistics and warehouse building at 11 Changi South Street 3 from Prologis Singapore Pte Ltd for $20.8 million. The property will then be sub-leased to its current tenant, Builders Shop Pte Ltd, for the remainder of the existing 10- year lease term that commenced on Dec 16, 2004.
At an initial yield of 7.23 per cent, the acquisition is accretive to MI-Reit’s DPU, it said, and is estimated to raise its fiscal 2008 DPU by 0.23 cent to 7.64 cents per unit and fiscal 2009 DPU by 0.22 cents to 7.81 cents per unit.
Source : Business Times - 25 Oct 2007
This worked out to an annualised DPU of 7.38 cents, said MI-Reit. The annualised yield is 6.05 per cent based on the closing price of $1.22 per unit on Sept 30.
Its net property income of $5.91 million for the quarter was higher than the $4.7 million seen in the preceding quarter but was a 0.6 per cent dip from its own estimate.
Thanks to a revaluation of the initial 12 properties in MI-Reit’s portfolio, its net asset value per unit rose by 13.3 per cent quarter-on-quarter to $1.28, and raised its book value from $316.2 million to $354 million at the end of the fiscal second quarter.
‘In the short time since listing on April 19, we have successfully executed the acquisition of three properties; two of which are pending completion with an aggregate value of $109.3 million and the third, which has been completed for $16.8 million,’ said Chris Calvert, chief executive of the MI-Reit manager.
‘We continue to be focused on achieving our target of $500 million in acquisitions per annum,’ he added.
He noted that these acquisitions will enhance income stability and diversification as a result of the reduced reliance on any single asset for income.
Over the next 12-18 months, a majority of MI-Reit’s acquisitions will be made in Singapore but investment grade industrial property in Japan, Hong Kong, Korea and Malaysia will also be considered.
Given the bullish outlook on the rents and capital values of industrial space, which are poised for a further rise of up to 10 per cent in the final quarter of 2007, MI-Reit manager said it expects to deliver an annualised distribution of 7.58 cents for the current financial year ending March 31, 2008, in line with forecasts.
MI-Reit also announced yesterday that it has signed an agreement to buy a logistics and warehouse building at 11 Changi South Street 3 from Prologis Singapore Pte Ltd for $20.8 million. The property will then be sub-leased to its current tenant, Builders Shop Pte Ltd, for the remainder of the existing 10- year lease term that commenced on Dec 16, 2004.
At an initial yield of 7.23 per cent, the acquisition is accretive to MI-Reit’s DPU, it said, and is estimated to raise its fiscal 2008 DPU by 0.23 cent to 7.64 cents per unit and fiscal 2009 DPU by 0.22 cents to 7.81 cents per unit.
Source : Business Times - 25 Oct 2007
FRASERS Centrepoint Trust, which owns three shopping malls in Singapore, may expand in China and Australia, seeking to tap rising consumer spending
FRASERS Centrepoint Trust, which owns three shopping malls in Singapore, may expand in China and Australia, seeking to tap rising consumer spending in the region.
‘We typically would like to go to a market where we’ve got some competitive advantage,’ Christopher Tang, chief executive officer of Frasers Centrepoint Asset Management Ltd, which manages the trust, said in an interview yesterday. ‘China is one of those, Australia is the other.’
Buying shopping malls in China would give Frasers access to a market where retail sales surged 16 per cent in the first nine months of this year, while Australia’s economy is benefiting from the lowest jobless rate in 33 years, which has stoked wage growth and fuelled consumer spending.
Mr Tang declined to specify acquisition targets, saying they were ‘opportunistic’. India is also on the trust’s ‘watch list’ for its expansion plans.
Frasers on June 5 bought a 27 per cent stake in Hektar Real Estate Investment Trust, which owns shopping malls in Malaysia, for RM104.5 million (S$45.4 million).
In Singapore, Frasers will add the Centrepoint shopping mall on Orchard Road to the trust, Mr Tang said, declining to specify a time frame. The Centrepoint mall is owned by Frasers’ parent, Fraser & Neave Ltd.
Frasers on Monday said it will distribute $10.3 million to its shareholders for the three months ended Sept 30, beating its forecast of $9.1 million as it raised rents at its properties.
Frasers fell 2 cents to close at 148 cents yesterday. — Bloomberg
Source : Business Times - 24 Oct 2007
‘We typically would like to go to a market where we’ve got some competitive advantage,’ Christopher Tang, chief executive officer of Frasers Centrepoint Asset Management Ltd, which manages the trust, said in an interview yesterday. ‘China is one of those, Australia is the other.’
Buying shopping malls in China would give Frasers access to a market where retail sales surged 16 per cent in the first nine months of this year, while Australia’s economy is benefiting from the lowest jobless rate in 33 years, which has stoked wage growth and fuelled consumer spending.
Mr Tang declined to specify acquisition targets, saying they were ‘opportunistic’. India is also on the trust’s ‘watch list’ for its expansion plans.
Frasers on June 5 bought a 27 per cent stake in Hektar Real Estate Investment Trust, which owns shopping malls in Malaysia, for RM104.5 million (S$45.4 million).
In Singapore, Frasers will add the Centrepoint shopping mall on Orchard Road to the trust, Mr Tang said, declining to specify a time frame. The Centrepoint mall is owned by Frasers’ parent, Fraser & Neave Ltd.
Frasers on Monday said it will distribute $10.3 million to its shareholders for the three months ended Sept 30, beating its forecast of $9.1 million as it raised rents at its properties.
Frasers fell 2 cents to close at 148 cents yesterday. — Bloomberg
Source : Business Times - 24 Oct 2007
HELPED by higher rental rates from its assets, Ascendas India Trust (a-iTrust) achieved distributable income of $22.2 million for the half year
HELPED by higher rental rates from its assets, Ascendas India Trust (a-iTrust) achieved distributable income of $22.2 million for the half year ended Sept 30, beating its estimate by 17 per cent.
Its distribution per unit for the period was 2.95 cents, giving an annualised yield of 5 per cent based on its initial public offer price of $1.18 per unit.
Its net property income touched $28.7 million, 66 per cent higher than the year-ago period and 18 per cent better than forecast.
a-iTrust has a diversified portfolio of four IT parks in Bangalore, Chennai and Hyderabad.
Over the first half year, 700,000 square feet of space within the portfolio of operating buildings was renewed or leased, at higher average rental rates than before. The overall occupancy rate of a-iTrust’s portfolio was 99 per cent as at Sept 30.
Ascendas Property Fund Trustee, the trustee-manager of a-iTrust, said it expects the trust to deliver the forecast performance for the second half of the year, and hence is confident of at least meeting the DPU forecast of 5.6 cents for the full year.
‘We are pleased to report a strong set of results which has benefited from the vibrant Indian IT-ITES sector, resounding support from the user-clients and the trustee-manager’s proactive asset and portfolio management,’ said the chief executive officer of the trustee-manager, Jonathan Yap. ‘We remain focused to build on the momentum and deliver returns to unitholders.’
The two completing buildings in the a-iTrust’s portfolio - Crest and Vega - have received strong pre-commitment of 73 per cent and 72 per cent of space respectively and income contribution is expected to start in the second half of 2007.
Besides having a right of first refusal from Ascendas Land International to acquire income-accretive business space, the trustee-manager said it is also pursuing acquisition opportunities from the market.
Source : Business Times - 24 Oct 2007
Its distribution per unit for the period was 2.95 cents, giving an annualised yield of 5 per cent based on its initial public offer price of $1.18 per unit.
Its net property income touched $28.7 million, 66 per cent higher than the year-ago period and 18 per cent better than forecast.
a-iTrust has a diversified portfolio of four IT parks in Bangalore, Chennai and Hyderabad.
Over the first half year, 700,000 square feet of space within the portfolio of operating buildings was renewed or leased, at higher average rental rates than before. The overall occupancy rate of a-iTrust’s portfolio was 99 per cent as at Sept 30.
Ascendas Property Fund Trustee, the trustee-manager of a-iTrust, said it expects the trust to deliver the forecast performance for the second half of the year, and hence is confident of at least meeting the DPU forecast of 5.6 cents for the full year.
‘We are pleased to report a strong set of results which has benefited from the vibrant Indian IT-ITES sector, resounding support from the user-clients and the trustee-manager’s proactive asset and portfolio management,’ said the chief executive officer of the trustee-manager, Jonathan Yap. ‘We remain focused to build on the momentum and deliver returns to unitholders.’
The two completing buildings in the a-iTrust’s portfolio - Crest and Vega - have received strong pre-commitment of 73 per cent and 72 per cent of space respectively and income contribution is expected to start in the second half of 2007.
Besides having a right of first refusal from Ascendas Land International to acquire income-accretive business space, the trustee-manager said it is also pursuing acquisition opportunities from the market.
Source : Business Times - 24 Oct 2007
GENTING International plc, a unit of Asia’s biggest casino operator by market value, is seeking to borrow a record S$3.2 billion to fund a casino
GENTING International plc, a unit of Asia’s biggest casino operator by market value, is seeking to borrow a record S$3.2 billion to fund a casino resort in Singapore, three people with knowledge of the transaction said.
The overseas unit of Kuala Lumpur-based Genting Bhd is adding to S$2.17 billion raised in a rights offer in August, and S$450 million of convertible bonds it sold in April to partly fund the resort.
Genting International’s loan will push lending to Asia’s casino industry to about US$9.1 billion, more than double the total for last year, according to data compiled by Bloomberg. Lending to the region’s industry is set to grow as countries including Japan consider joining Singapore in lifting bans on casinos.
‘There are quite a few countries in Asia where gambling is banned,’ said Harsh Agarwal, a credit analyst with Lehman Brothers. ‘If more countries legalise gambling, we should see an increase in bank lending for casinos.’
Las Vegas Sands, the world’s largest casino operator by market value, hired eight banks last month to arrange a loan of about S$5 billion for its Singapore gaming resort.
Genting International’s loan will be a record for the Singapore-listed company. The gaming operator has yet to pick arrangers, said the people, who declined to be identified because the information is private.
Tan Hee Teck, chief executive officer of Resorts World at Sentosa Pte, Genting International’s S$5.2 billion casino project in Singapore, didn’t return calls made to his office yesterday.
The regulated gambling market in the Asia-Pacific region is expected to expand 15.7 per cent a year to US$30.3 billion in 2011, according to PricewaterhouseCoopers. The region will replace Europe, the Middle East and Africa as the second-biggest gaming market after the US by 2011, PwC says.
Genting International will be building the casino on Sentosa island, known for its golf courses and beaches. The resort will include South-east Asia’s first Universal Studios theme park.
Singapore’s government lifted a four-decade ban on casinos two years ago and issued licences to Genting International and Las Vegas Sands.
‘Bankers will take a lot of comfort in that Genting does have a history in casinos,’ Mr Agarwal said. - Bloomberg
Source : Business Times - 24 Oct 2007
The overseas unit of Kuala Lumpur-based Genting Bhd is adding to S$2.17 billion raised in a rights offer in August, and S$450 million of convertible bonds it sold in April to partly fund the resort.
Genting International’s loan will push lending to Asia’s casino industry to about US$9.1 billion, more than double the total for last year, according to data compiled by Bloomberg. Lending to the region’s industry is set to grow as countries including Japan consider joining Singapore in lifting bans on casinos.
‘There are quite a few countries in Asia where gambling is banned,’ said Harsh Agarwal, a credit analyst with Lehman Brothers. ‘If more countries legalise gambling, we should see an increase in bank lending for casinos.’
Las Vegas Sands, the world’s largest casino operator by market value, hired eight banks last month to arrange a loan of about S$5 billion for its Singapore gaming resort.
Genting International’s loan will be a record for the Singapore-listed company. The gaming operator has yet to pick arrangers, said the people, who declined to be identified because the information is private.
Tan Hee Teck, chief executive officer of Resorts World at Sentosa Pte, Genting International’s S$5.2 billion casino project in Singapore, didn’t return calls made to his office yesterday.
The regulated gambling market in the Asia-Pacific region is expected to expand 15.7 per cent a year to US$30.3 billion in 2011, according to PricewaterhouseCoopers. The region will replace Europe, the Middle East and Africa as the second-biggest gaming market after the US by 2011, PwC says.
Genting International will be building the casino on Sentosa island, known for its golf courses and beaches. The resort will include South-east Asia’s first Universal Studios theme park.
Singapore’s government lifted a four-decade ban on casinos two years ago and issued licences to Genting International and Las Vegas Sands.
‘Bankers will take a lot of comfort in that Genting does have a history in casinos,’ Mr Agarwal said. - Bloomberg
Source : Business Times - 24 Oct 2007