Climate Change Capital, a London-based fund manager and adviser on global warming, plans to start a fund to invest in properties that use energy more efficiently.
Climate Change, which manages about US$1.6 billion, will start meeting investors in the first quarter of 2008 and aims to raise ‘hundreds of millions’, said James Cameron, vice- chairman. So-called green buildings cut energy usage and reduce carbon dioxide emissions.
‘We will build a portfolio of properties, either retrofitted or improved, and buildings built from scratch or those that already meet the high standards that we would like to own a piece of,’ Mr Cameron said in an interview in Singapore yesterday. ‘It is not yet proven but perhaps we will get more value because it’s green.’
Scientists say carbon dioxide is one of the main emissions causing temperatures to rise, which may lead to potentially irreversible climate shifts and rising sea levels that would threaten world economies, ecosystems and human health.
The Kyoto Protocol binds 35 industrialised nations to curb carbon emissions by 5.2 per cent from 1990 levels by 2012. Developing nations including China and India are not required to cut emissions.
The United Nations’ climate change body will host its annual meeting in Bali next month to discuss a successor to the Kyoto Protocol. The European Union (EU) introduced ‘The Directive on the Energy Performance of Buildings’ in January 2003, to increase awareness of energy use in buildings and result in a substantial increase in investments in energy efficiency measures, according to Frost & Sullivan, a research company.
European countries wasted at least 20 per cent of their energy due to inefficiency in 2006 and applying more stringent standards to new buildings and renovations will enable the EU to reduce greenhouse gas emissions and realise an energy-saving potential of more than 20 per cent by 2020, Frost & Sullivan said.
‘The case is not proven that we will get a premium at all, but what we are sure about is that the changes that are taking place in Europe will stratify the market,’ Mr Cameron said. ‘There will be winners and losers and there will be value shift in the property sector and we want to be on the right side of that value shift.’ - Bloomberg
Source : Business Times - 8 Nov 2007
Showing posts with label New Property Launch. Show all posts
Showing posts with label New Property Launch. Show all posts
Saturday, November 10, 2007
A JOINT venture between City Developments Ltd (CDL) and US-based Wachovia Development Corporation is buying two blocks at CDL’s Cliveden
A JOINT venture between City Developments Ltd (CDL) and US-based Wachovia Development Corporation is buying two blocks at CDL’s Cliveden at Grange condo for $432.4 million or an average price of about $3,750 per sq ft (psf).
And according CDL executive chairman Kwek Leng Beng, the deal attests to the freehold project’s ‘high investment potential’ and reflects CDL’s ‘business strategy of leveraging on the capital appreciation potential of our developments’.
In an interview with BT in May this year, Mr Kwek said he was considering retaining a portion of some new residential developments for rental income and capital appreciation.
At CDL’s Q2 results briefing in August, he said he was considering retaining two blocks at Cliveden.
A Hock Lock Siew column in BT later that month speculated on whether CDL was mulling a residential real estate investment trust (Reit) to which it could spin off apartments held for investment.
CDL was silent on this in its statement to the Singapore Exchange yesterday. But market watchers reckon a possible exit strategy for the CDL-Wachovia joint venture for their investment in the two Cliveden blocks would be to divest them to a residential Reit.
Without elaborating, a CDL spokesman said yesterday: ‘We will look into this business model of retaining units in some of our future residential developments.’
CDL is taking a 40 per cent stake in the joint venture company Grange 100 Pte Ltd that is buying the Cliveden blocks, comprising 44 apartments. Wachovia holds the majority 60 per cent.
The 44 units are three and four-bedders, and two penthouses. The prices at which they were bought range from $3,392 psf to $4,313 psf.
Before the deal was announced yesterday, CDL had sold 42 units at Cliveden at an average price of $3,690 psf since the project’s soft launch in June. More than 90 per cent of these units were bought by foreign buyers from the UK, Australia, Hong Kong, China, Taiwan, Indonesia, France, Korea and Japan.
After the latest deal, only 24 apartments will be left at the 110-unit Cliveden, which is coming up on the former Kim Lin Mansion site.
Last year, CDL bought the Lucky Tower site, diagonally opposite the Kim Lin plot, for $1,134 psf per plot ratio.
Source : Business Times - 6 Nov 2007
And according CDL executive chairman Kwek Leng Beng, the deal attests to the freehold project’s ‘high investment potential’ and reflects CDL’s ‘business strategy of leveraging on the capital appreciation potential of our developments’.
In an interview with BT in May this year, Mr Kwek said he was considering retaining a portion of some new residential developments for rental income and capital appreciation.
At CDL’s Q2 results briefing in August, he said he was considering retaining two blocks at Cliveden.
A Hock Lock Siew column in BT later that month speculated on whether CDL was mulling a residential real estate investment trust (Reit) to which it could spin off apartments held for investment.
CDL was silent on this in its statement to the Singapore Exchange yesterday. But market watchers reckon a possible exit strategy for the CDL-Wachovia joint venture for their investment in the two Cliveden blocks would be to divest them to a residential Reit.
Without elaborating, a CDL spokesman said yesterday: ‘We will look into this business model of retaining units in some of our future residential developments.’
CDL is taking a 40 per cent stake in the joint venture company Grange 100 Pte Ltd that is buying the Cliveden blocks, comprising 44 apartments. Wachovia holds the majority 60 per cent.
The 44 units are three and four-bedders, and two penthouses. The prices at which they were bought range from $3,392 psf to $4,313 psf.
Before the deal was announced yesterday, CDL had sold 42 units at Cliveden at an average price of $3,690 psf since the project’s soft launch in June. More than 90 per cent of these units were bought by foreign buyers from the UK, Australia, Hong Kong, China, Taiwan, Indonesia, France, Korea and Japan.
After the latest deal, only 24 apartments will be left at the 110-unit Cliveden, which is coming up on the former Kim Lin Mansion site.
Last year, CDL bought the Lucky Tower site, diagonally opposite the Kim Lin plot, for $1,134 psf per plot ratio.
Source : Business Times - 6 Nov 2007
Monday, November 5, 2007
PROPERTY investors love new launches - they can get their hands on a unit fresh off the plans and hope for huge overnight gains.
PROPERTY investors love new launches - they can get their hands on a unit fresh off the plans and hope for huge overnight gains.
But long-term investors would do well to also check out completed properties that can generate an immediate rental income.
‘Too many people are overweight in their investment portfolio in terms of new launches,’ says Savills Singapore director for marketing and business development, Mr Ku Swee Yong. ‘To lower one’s risks, part of the portfolio should be income-producing.’
That will give investors a certain amount of income from property even during a short-term market dip, he says.
Although Singapore’s market is currently buoyant, it has its ups and downs as any homebuyer over the past 10 years knows only too well.
For those buying on a progressive payment scheme, the instant income from a completed property could help cover mortgage payments.
This option has become more attractive with the recent axing of the deferred payment scheme, which puts buying a completed property on a level playing field with buying an uncompleted one.
Buyers will have to take out a loan sooner since they can no longer defer the bulk of the payment for an uncompleted property until completion.
When it comes to getting a mortgage, it may not necessarily be easier to get a loan for a completed property compared with an uncompleted one.
OCBC Bank says it does not differentiate between completed and uncompleted property.
Still, in line with the pickup in home prices, the rental market has shot up across the board, making the purchase of a completed property for rental gains more worthwhile.
Official data showed that rents of private homes rose by 11.4 per cent in the third quarter, making a 32.2 per cent rise between January and September.
Completed properties are generally more ‘reasonably priced’ compared with new launches, says one investor.
A recent Jones Lang LaSalle study found that the gap between new sale prices and resale prices is at a record high.
But this is likely to narrow as buyers find it less attractive to buy new developments when habitable resale homes at more affordable prices are readily available, it said.
A tip from a seasoned investor: Consider projects that will get their temporary occupation permit within the next three to six months.
‘These projects would have been launched about three years ago when prices were low,’ he says, so their sub-sale prices will usually be lower than those of new launches.
‘Another advantage is that you will be the first landlord and have the privilege of charging rental based on the current market rate,’ he adds.
‘There’s no point taking over a lease that has two years to go and that was based on old, lower rental rates.’
As a guide, properties offering a rental yield of at least 3 per cent are a safe bet, says Mr Ku. These can be found in completed properties in city fringes such as Siglap and Balestier.
Bargains are tougher to find in hot areas like Amber and Meyer roads where asking prices have risen so much that yields have fallen below 2.5 per cent, he says.
Some older properties may offer fairly high yields but investors must factor in maintenance costs, consultants say.
Source : Sunday Times - 4 Nov 2007
But long-term investors would do well to also check out completed properties that can generate an immediate rental income.
‘Too many people are overweight in their investment portfolio in terms of new launches,’ says Savills Singapore director for marketing and business development, Mr Ku Swee Yong. ‘To lower one’s risks, part of the portfolio should be income-producing.’
That will give investors a certain amount of income from property even during a short-term market dip, he says.
Although Singapore’s market is currently buoyant, it has its ups and downs as any homebuyer over the past 10 years knows only too well.
For those buying on a progressive payment scheme, the instant income from a completed property could help cover mortgage payments.
This option has become more attractive with the recent axing of the deferred payment scheme, which puts buying a completed property on a level playing field with buying an uncompleted one.
Buyers will have to take out a loan sooner since they can no longer defer the bulk of the payment for an uncompleted property until completion.
When it comes to getting a mortgage, it may not necessarily be easier to get a loan for a completed property compared with an uncompleted one.
OCBC Bank says it does not differentiate between completed and uncompleted property.
Still, in line with the pickup in home prices, the rental market has shot up across the board, making the purchase of a completed property for rental gains more worthwhile.
Official data showed that rents of private homes rose by 11.4 per cent in the third quarter, making a 32.2 per cent rise between January and September.
Completed properties are generally more ‘reasonably priced’ compared with new launches, says one investor.
A recent Jones Lang LaSalle study found that the gap between new sale prices and resale prices is at a record high.
But this is likely to narrow as buyers find it less attractive to buy new developments when habitable resale homes at more affordable prices are readily available, it said.
A tip from a seasoned investor: Consider projects that will get their temporary occupation permit within the next three to six months.
‘These projects would have been launched about three years ago when prices were low,’ he says, so their sub-sale prices will usually be lower than those of new launches.
‘Another advantage is that you will be the first landlord and have the privilege of charging rental based on the current market rate,’ he adds.
‘There’s no point taking over a lease that has two years to go and that was based on old, lower rental rates.’
As a guide, properties offering a rental yield of at least 3 per cent are a safe bet, says Mr Ku. These can be found in completed properties in city fringes such as Siglap and Balestier.
Bargains are tougher to find in hot areas like Amber and Meyer roads where asking prices have risen so much that yields have fallen below 2.5 per cent, he says.
Some older properties may offer fairly high yields but investors must factor in maintenance costs, consultants say.
Source : Sunday Times - 4 Nov 2007
Friday, October 26, 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
Wednesday, August 1, 2007
Ex-Red House Bakery to be part of $15m project July 31, 2007
New complex in Katong will also have shops and service rooms By Jane Ng
THE former Katong Red House Bakery will soon welcome customers again - but perhaps not the kind craving fragrant cakes and rolls.
Along with the five shophouses next to it, it will become part of a $15 million complex housing shops and rooms managed like service apartments.
The landmark fire-engine red facade of the two-storey building at 75, East Coast Road will be retained, as will the traditional floor tiles and pillars, because the shophouse is a conservation property.
But whether or not it will go back to being a bakery will depend on its future tenant, said Mr Mohammad Zahid Yacob, who heads Warees Investments, a subsidiary of the Islamic Religious Council of Singapore (Muis), the legal owner of the property.
The former bakery, hugely popular with Singaporeans, sold traditional cream cakes and Swiss rolls until its closure in 2003.
The former tenants said they could not afford to pay the $15,000-a-month rent, which was almost eight times the old rate.
Mr Zahid said: ‘If we can get a tenant selling kueh, we’ll take him.
‘But as much as we want to preserve the original concept, the bottom line is it has to be commercially viable.’
He added that the plan was for the Red House to remain a food-and-beverage outlet to evoke memories of the bakery.
A food outlet will serve the needs of the long-term residents in the five-storey block of 80 to 100 service rooms to be built behind it.
Talks in recent years have been about turning the former bakery into a halal foodcourt or Indonesian restaurant.
The five shophouses adjacent to the Red House will be redeveloped, for instance, into a 24-hour convenience store, a launderette and business centre serving the residents.
Work on the complex will start early next year and will take two years.
Mr Zahid said it was hoped that the complex would liven up that stretch of Katong.
‘We want to revitalise the whole area. With a sizeable plan, we can create a more ‘happening’ district, raise human traffic and bring Katong back to the way it was in the old days.’
The Red House is a wakaf property, meaning it is held in trust for Muis.
It was put in trust by Sherrifa Zain Alsharoff Mohamed Alsagoff, who wanted the income generated from the property to be used to provide free medicine for the community.
She was the great-granddaughter of Hajjah Fatimah, who built the Hajjah Fatimah Mosque in Beach Road.
Source: The Straits Times, 30 July 2007
THE former Katong Red House Bakery will soon welcome customers again - but perhaps not the kind craving fragrant cakes and rolls.
Along with the five shophouses next to it, it will become part of a $15 million complex housing shops and rooms managed like service apartments.
The landmark fire-engine red facade of the two-storey building at 75, East Coast Road will be retained, as will the traditional floor tiles and pillars, because the shophouse is a conservation property.
But whether or not it will go back to being a bakery will depend on its future tenant, said Mr Mohammad Zahid Yacob, who heads Warees Investments, a subsidiary of the Islamic Religious Council of Singapore (Muis), the legal owner of the property.
The former bakery, hugely popular with Singaporeans, sold traditional cream cakes and Swiss rolls until its closure in 2003.
The former tenants said they could not afford to pay the $15,000-a-month rent, which was almost eight times the old rate.
Mr Zahid said: ‘If we can get a tenant selling kueh, we’ll take him.
‘But as much as we want to preserve the original concept, the bottom line is it has to be commercially viable.’
He added that the plan was for the Red House to remain a food-and-beverage outlet to evoke memories of the bakery.
A food outlet will serve the needs of the long-term residents in the five-storey block of 80 to 100 service rooms to be built behind it.
Talks in recent years have been about turning the former bakery into a halal foodcourt or Indonesian restaurant.
The five shophouses adjacent to the Red House will be redeveloped, for instance, into a 24-hour convenience store, a launderette and business centre serving the residents.
Work on the complex will start early next year and will take two years.
Mr Zahid said it was hoped that the complex would liven up that stretch of Katong.
‘We want to revitalise the whole area. With a sizeable plan, we can create a more ‘happening’ district, raise human traffic and bring Katong back to the way it was in the old days.’
The Red House is a wakaf property, meaning it is held in trust for Muis.
It was put in trust by Sherrifa Zain Alsharoff Mohamed Alsagoff, who wanted the income generated from the property to be used to provide free medicine for the community.
She was the great-granddaughter of Hajjah Fatimah, who built the Hajjah Fatimah Mosque in Beach Road.
Source: The Straits Times, 30 July 2007
Thai tycoon snaps up entire Cairnhill project before launch
Thai tycoon snaps up entire Cairnhill project before launch
Posted August 1st, 2007
Hoi Hup Realty was supposed to begin previews for its freehold Suites @ Cairnhill on the former Cairnhill Gardens site about a fortnight ago.
But just a day before it could do that, it found a buyer for all 48 apartments in the project in a deal worth about $200 million, BT understands. This would work out to around $2,500 psf for the 19-storey development.
Sources said the buyer is a party linked to Thai Beverage tycoon Charoen Sirivadhanabhakdi. Mr Charoen controls the TCC group in Thailand, and is also one of the country’s richest businessmen.
Interestingly, the $2,500 psf achieved for the sale to a single buyer was the same average price that Hoi Hup is said to have been targeting for the preview.
‘What’s more, the buyer will be paying Hoi Hup on normal progress payment terms, not deferred payment! That’s great for Hoi Hup,’ said a fellow developer.
Sources also said that City Development’s recent preview of its 59-unit Solitaire project in the Balmoral Park area drew a Chinese buyer, who snapped up 10 units - or almost an entire block - for over $52 million.
CityDev last week announced that the project was sold within a week at an average price of over $2,000 psf.
Over at Reflections at Keppel Bay, Keppel Land said on Monday it had been approached by foreign investors interested in buying entire blocks in the 1,129 unit development. So far, it has achieved an average price of about $1,900 psf.
A seasoned property consultant said: ‘It just reflects the current state of the high-end residential market - that foreign investors still consider our market attractive, despite the run-up in prices.’
‘The money for bulk purchases is coming in substantially from the region, like Hong Kong and Indonesia, but there’s also institutional money from US, Europe and Australia,’ he added.
While foreign funds and investors buying up stacks or blocks of apartments in Singapore is not a new phenomenon, their bargaining strength against developers has waned lately and they have had to dilute the profile of properties they are choosing. This is because the market is flush with overseas money chasing a limited pool of properties available for sale.
‘A few years ago, these overseas investors would have extracted a bulk discount from the developer and would buy only completed projects (preferably with leased apartments) that can start generating rental income almost immediately upon purchase. ‘These days, however, they’re finding they can’t expect a discount and are looking at projects under construction. Another difference is these foreign funds are more flexible now and are prepared to consider not-so-prime locations. In the past, they focused only on the choicest areas,’ the seasoned property consultant said.
Hoi Hup will develop Suites @ Cairnhill on the 25,083 sq ft Cairnhill Gardens site that it bought last year for $52.38 million. This works out to $795 psf of potential gross floor area inclusive of development charges. Market watchers reckoned Hoi Hup’s break even cost for the project could be of the order of $1,100 to $1,200 psf.
Last year, Mr Charoen’s unit Pacific Coast Assets inked deals that gave it full ownership of Intercontinental Hotel at Bugis Junction. The deals valued the underlying hotel property at over $250 million, according to earlier media reports.
His TCC group has a joint venture with Singapore’s CapitaLand Group to invest in, develop and manage properties in Thailand.
Source : Business Times
Posted August 1st, 2007
Hoi Hup Realty was supposed to begin previews for its freehold Suites @ Cairnhill on the former Cairnhill Gardens site about a fortnight ago.
But just a day before it could do that, it found a buyer for all 48 apartments in the project in a deal worth about $200 million, BT understands. This would work out to around $2,500 psf for the 19-storey development.
Sources said the buyer is a party linked to Thai Beverage tycoon Charoen Sirivadhanabhakdi. Mr Charoen controls the TCC group in Thailand, and is also one of the country’s richest businessmen.
Interestingly, the $2,500 psf achieved for the sale to a single buyer was the same average price that Hoi Hup is said to have been targeting for the preview.
‘What’s more, the buyer will be paying Hoi Hup on normal progress payment terms, not deferred payment! That’s great for Hoi Hup,’ said a fellow developer.
Sources also said that City Development’s recent preview of its 59-unit Solitaire project in the Balmoral Park area drew a Chinese buyer, who snapped up 10 units - or almost an entire block - for over $52 million.
CityDev last week announced that the project was sold within a week at an average price of over $2,000 psf.
Over at Reflections at Keppel Bay, Keppel Land said on Monday it had been approached by foreign investors interested in buying entire blocks in the 1,129 unit development. So far, it has achieved an average price of about $1,900 psf.
A seasoned property consultant said: ‘It just reflects the current state of the high-end residential market - that foreign investors still consider our market attractive, despite the run-up in prices.’
‘The money for bulk purchases is coming in substantially from the region, like Hong Kong and Indonesia, but there’s also institutional money from US, Europe and Australia,’ he added.
While foreign funds and investors buying up stacks or blocks of apartments in Singapore is not a new phenomenon, their bargaining strength against developers has waned lately and they have had to dilute the profile of properties they are choosing. This is because the market is flush with overseas money chasing a limited pool of properties available for sale.
‘A few years ago, these overseas investors would have extracted a bulk discount from the developer and would buy only completed projects (preferably with leased apartments) that can start generating rental income almost immediately upon purchase. ‘These days, however, they’re finding they can’t expect a discount and are looking at projects under construction. Another difference is these foreign funds are more flexible now and are prepared to consider not-so-prime locations. In the past, they focused only on the choicest areas,’ the seasoned property consultant said.
Hoi Hup will develop Suites @ Cairnhill on the 25,083 sq ft Cairnhill Gardens site that it bought last year for $52.38 million. This works out to $795 psf of potential gross floor area inclusive of development charges. Market watchers reckoned Hoi Hup’s break even cost for the project could be of the order of $1,100 to $1,200 psf.
Last year, Mr Charoen’s unit Pacific Coast Assets inked deals that gave it full ownership of Intercontinental Hotel at Bugis Junction. The deals valued the underlying hotel property at over $250 million, according to earlier media reports.
His TCC group has a joint venture with Singapore’s CapitaLand Group to invest in, develop and manage properties in Thailand.
Source : Business Times
Friday, July 27, 2007
Condos-on-columns the in thing in S’pore July 27, 2007
Soleil@Sinaran is latest in new trend for high-rises that enhances privacyTHE upcoming Frasers Centrepoint Homes condo Soleil@Sinaran is the latest to reflect the trend for soaring buildings raised high on columns.
Architects 61, which also designed The Cosmopolitan in the River Valley area, said that by elevating the 417-unit Soleil@Sinaran, ‘the privacy of the units is enhanced to greater heights’.
Considerations in the design of Soleil@Sinaran included a high plot ratio of 3.5, a height restriction of about 40 storeys and high-density living.
The architects also felt that adjacent mid-rise private flats and Novena Square commercial development had large footprints and, therefore, views were minimised.
Architects 61 said: ‘Privacy of the lowest level of units is further enhanced by locating it as high from the ground as possible.’
Like The Cosmopolitan - and many other new condominiums - Soleil@Sinaran will rise from above street level.
But will columns be the only thing visible from street level?
Asked about the impact on the streetscape from buildings raised on columns, the Urban Redevelopment Authority said: ‘Generally, in certain areas within the city centre, urban design guidelines are put in place where the context requires buildings to relate to the street and their surrounding developments.
‘In the case of The Cosmopolitan, it is located in a residential area where the relation of the building to the street is not as critical. Hence the guidelines do not specifically require the building to do so.’
For Soleil@Sinaran, raising the building has allowed Architects 61 to free more space for landscaping that will include lagoons, pool lounges, entertainment pavilions with spa alcoves and spa pavilions to create a ‘green podium’.
‘The landscaping extends into the depth of the tower footprint,’ the architects said. ‘Trees grown within the covered first-
storey terrace provide a human scale to the tower rising above, ‘dissolving’ the boundary between the inside and the outside. It is this landscaped podium that provides the human scale at street level.’
Soleil@Sinaran is expected to be launched mid-August. Prices have not be fixed yet.
Architects 61, which also designed The Cosmopolitan in the River Valley area, said that by elevating the 417-unit Soleil@Sinaran, ‘the privacy of the units is enhanced to greater heights’.
Considerations in the design of Soleil@Sinaran included a high plot ratio of 3.5, a height restriction of about 40 storeys and high-density living.
The architects also felt that adjacent mid-rise private flats and Novena Square commercial development had large footprints and, therefore, views were minimised.
Architects 61 said: ‘Privacy of the lowest level of units is further enhanced by locating it as high from the ground as possible.’
Like The Cosmopolitan - and many other new condominiums - Soleil@Sinaran will rise from above street level.
But will columns be the only thing visible from street level?
Asked about the impact on the streetscape from buildings raised on columns, the Urban Redevelopment Authority said: ‘Generally, in certain areas within the city centre, urban design guidelines are put in place where the context requires buildings to relate to the street and their surrounding developments.
‘In the case of The Cosmopolitan, it is located in a residential area where the relation of the building to the street is not as critical. Hence the guidelines do not specifically require the building to do so.’
For Soleil@Sinaran, raising the building has allowed Architects 61 to free more space for landscaping that will include lagoons, pool lounges, entertainment pavilions with spa alcoves and spa pavilions to create a ‘green podium’.
‘The landscaping extends into the depth of the tower footprint,’ the architects said. ‘Trees grown within the covered first-
storey terrace provide a human scale to the tower rising above, ‘dissolving’ the boundary between the inside and the outside. It is this landscaped podium that provides the human scale at street level.’
Soleil@Sinaran is expected to be launched mid-August. Prices have not be fixed yet.
Wednesday, July 18, 2007
Woodsville condo site draws 8 bids; top offer at $50.7m
Woodsville condo site draws 8 bids; top offer at $50.7m
Grace Ng
Wed, Jul 18, 2007
The Straits Times
GOOD news for home buyers: More suburban condo units should be coming on stream in Woodsville Close, now that a residential site up for tender there has attracted eight bids.
The Urban Redevelopment Authority (URA) yesterday announced that it had closed the public tender for the 3,870.5 sq m site near Potong Pasir MRT station.
If sold, Woodsville Close, which has a 99-year lease and a maximum permissible gross floor area of 116,648 sq ft, will be the first suburban residential site sold by the URA this year.
The URA launched the tender for Woodsville on June 19, following the Government's move to release more office and residential sites in order to give developers more options and ease a tightening supply situation.
The eight bids from developers for the site ranged from $32.6 million to the top offer of $50.68 million submitted by developer Frasers Centrepoint.
Frasers' bid, at $434 per sq foot (psf) per plot ratio, is about 69 per cent above the reserve price of $30 million, which works out to $257 psf per plot ratio.
'This price will translate into a break-even price of about $750 psf to $800 psf for the future apartment project to be built on this site,' said Mr Leonard Tay, director of CBRE Research.
The second highest bid of $46.8 million was submitted by Eastpoint Development. Other developers that put in bids include EL Development and Meadows Property.
Property consultants pointed to the Woodsville site's convenient location near Potong Pasir MRT station, expressways and schools such as St Andrew's Junior College as a draw for developers looking to target the suburban market.
Knight Frank director of research Nicholas Mak estimated that about 90 three-bedroom units may be built on the Woodsville site. He expects the units to be 'sought after by HDB upgraders' from areas such as Sengkang, Upper Serangoon, Potong Pasir and Bishan.
Mr Tay noted that recent HDB data showing the average cash over-valuation for resale flats in central areas such as Bishan and Toa Payoh range among the highest islandwide, from $13,900 to $33,600 for the various flat types.
'This would provide greater incentive for HDB households in these nearby estates to make the transition to private property,' he said.
URA said in a statement that it will announce the award of the tender 'at a later date'.
Grace Ng
Wed, Jul 18, 2007
The Straits Times
GOOD news for home buyers: More suburban condo units should be coming on stream in Woodsville Close, now that a residential site up for tender there has attracted eight bids.
The Urban Redevelopment Authority (URA) yesterday announced that it had closed the public tender for the 3,870.5 sq m site near Potong Pasir MRT station.
If sold, Woodsville Close, which has a 99-year lease and a maximum permissible gross floor area of 116,648 sq ft, will be the first suburban residential site sold by the URA this year.
The URA launched the tender for Woodsville on June 19, following the Government's move to release more office and residential sites in order to give developers more options and ease a tightening supply situation.
The eight bids from developers for the site ranged from $32.6 million to the top offer of $50.68 million submitted by developer Frasers Centrepoint.
Frasers' bid, at $434 per sq foot (psf) per plot ratio, is about 69 per cent above the reserve price of $30 million, which works out to $257 psf per plot ratio.
'This price will translate into a break-even price of about $750 psf to $800 psf for the future apartment project to be built on this site,' said Mr Leonard Tay, director of CBRE Research.
The second highest bid of $46.8 million was submitted by Eastpoint Development. Other developers that put in bids include EL Development and Meadows Property.
Property consultants pointed to the Woodsville site's convenient location near Potong Pasir MRT station, expressways and schools such as St Andrew's Junior College as a draw for developers looking to target the suburban market.
Knight Frank director of research Nicholas Mak estimated that about 90 three-bedroom units may be built on the Woodsville site. He expects the units to be 'sought after by HDB upgraders' from areas such as Sengkang, Upper Serangoon, Potong Pasir and Bishan.
Mr Tay noted that recent HDB data showing the average cash over-valuation for resale flats in central areas such as Bishan and Toa Payoh range among the highest islandwide, from $13,900 to $33,600 for the various flat types.
'This would provide greater incentive for HDB households in these nearby estates to make the transition to private property,' he said.
URA said in a statement that it will announce the award of the tender 'at a later date'.
Sunday, July 15, 2007
They have not even been built yet, but apartments at popular new projects like The Sail @ Marina Bay are changing hands
at a rate not seen in almost a decade.
Sales of these uncompleted homes, known in the industry as sub-sales, almost doubled to 1,184 between April and last month for private non-landed homes, according to new figures released by property firm Savills Singapore yesterday.
Such transactions comprised 13.9 per cent of all private home sales in the June quarter - up from 6.3 per cent in the first three months of this year and the highest level in almost 10 years.
Sub-sales are often used to measure speculative activity in the private home market and as such are closely watched - now more than ever, as the Government tries to gauge how far it should go to calm the red-hot property market.
The latest figures show that more buyers are quickly reselling recently-bought homes, adding to the growing property frenzy.
But while the numbers are rising fast, property consultants are not too concerned yet.
‘It’s surprising that sub-sales have doubled in three months, but they still haven’t reached the same levels as in 1996, which triggered government intervention,’ said Mr Nicholas Mak, director of research and consultancy at Knight Frank.
At the height of the property boom in 1996, sub-sales reached 28.4 per cent of all home sales.
But Mr Mak warned: ‘If it keeps going at this rate, the authorities may step in.’
At projects such as the uncompleted Sail, sub-sales have been roaring along. There were 61 Sail units resold three times each in the last two years, according to investment bank JP Morgan.
Six more units changed hands four times, and one unit found new buyers five times.
Most of these sellers made big bucks, thanks to escalating prices - some units have tripled in price since their 2004 launch.
One buyer paid $750,000 for a unit in early 2005 and resold it for $1.8 million recently, said Savills.
But not all sub-sales turn profits.
At Icon in Tanjong Pagar, one seller made more than $314,000 in three months, while another resold his unit at a $348,000 loss after two months.
Savills, whose estimates were taken from the Urban Redevelopment Authority’s caveat database ahead of official Government figures due on July 27, pointed out that more sub-sales do not necessarily imply more speculation.
‘These sellers may not have bought their units with the intention to speculate,’ said Mr Ku Swee Yong, Savills’ director of marketing and business development.
‘But prices have risen so quickly that they are tempted to cash in.’
Indeed, projects in the prime districts - where home prices have shot up the fastest - made up the bulk of the sub-sales in April to June, said Savills.
More than half the sub-sales in the period took place in Districts 1 to 4 and 9 to 11, which cover Orchard, River Valley, Bukit Timah, Newton, Shenton Way, Marina Bay and Tanjong Pagar.
Sub-sales accounted for about one in five of all home sales in these areas. But some districts saw higher figures of up to 80 per cent.
In District 2, where Icon is located, four out of every five sales were sub-sales. In District 1, where The Sail is, the figure was 64 per cent.
The proportion of sub-sales was a lower 25 per cent in District 9 and only 11 per cent in District 10.
The Sail and Icon topped the sub-sale list in the quarter, with 81 and 71 deals, respectively. Sky@Eleven in Thomson Road was third with 51, while City Square Residences and Citylights in the Jalan Besar area saw 40 deals each.
With most of these projects due to be completed soon, Mr Ku added that the spike in sub-sales could backed by genuine buying demand from displaced collective sale sellers.
This may be a balm to the Government, which has periodically referred to low levels of sub-sales as a sign that rising property prices are fuelled by genuine home demand.
Last year, there were just 989 sub-sale deals, accounting for a mere 4.1 per cent of total private home sales.
Source: The Straits Times, 14 July 2007
Sales of these uncompleted homes, known in the industry as sub-sales, almost doubled to 1,184 between April and last month for private non-landed homes, according to new figures released by property firm Savills Singapore yesterday.
Such transactions comprised 13.9 per cent of all private home sales in the June quarter - up from 6.3 per cent in the first three months of this year and the highest level in almost 10 years.
Sub-sales are often used to measure speculative activity in the private home market and as such are closely watched - now more than ever, as the Government tries to gauge how far it should go to calm the red-hot property market.
The latest figures show that more buyers are quickly reselling recently-bought homes, adding to the growing property frenzy.
But while the numbers are rising fast, property consultants are not too concerned yet.
‘It’s surprising that sub-sales have doubled in three months, but they still haven’t reached the same levels as in 1996, which triggered government intervention,’ said Mr Nicholas Mak, director of research and consultancy at Knight Frank.
At the height of the property boom in 1996, sub-sales reached 28.4 per cent of all home sales.
But Mr Mak warned: ‘If it keeps going at this rate, the authorities may step in.’
At projects such as the uncompleted Sail, sub-sales have been roaring along. There were 61 Sail units resold three times each in the last two years, according to investment bank JP Morgan.
Six more units changed hands four times, and one unit found new buyers five times.
Most of these sellers made big bucks, thanks to escalating prices - some units have tripled in price since their 2004 launch.
One buyer paid $750,000 for a unit in early 2005 and resold it for $1.8 million recently, said Savills.
But not all sub-sales turn profits.
At Icon in Tanjong Pagar, one seller made more than $314,000 in three months, while another resold his unit at a $348,000 loss after two months.
Savills, whose estimates were taken from the Urban Redevelopment Authority’s caveat database ahead of official Government figures due on July 27, pointed out that more sub-sales do not necessarily imply more speculation.
‘These sellers may not have bought their units with the intention to speculate,’ said Mr Ku Swee Yong, Savills’ director of marketing and business development.
‘But prices have risen so quickly that they are tempted to cash in.’
Indeed, projects in the prime districts - where home prices have shot up the fastest - made up the bulk of the sub-sales in April to June, said Savills.
More than half the sub-sales in the period took place in Districts 1 to 4 and 9 to 11, which cover Orchard, River Valley, Bukit Timah, Newton, Shenton Way, Marina Bay and Tanjong Pagar.
Sub-sales accounted for about one in five of all home sales in these areas. But some districts saw higher figures of up to 80 per cent.
In District 2, where Icon is located, four out of every five sales were sub-sales. In District 1, where The Sail is, the figure was 64 per cent.
The proportion of sub-sales was a lower 25 per cent in District 9 and only 11 per cent in District 10.
The Sail and Icon topped the sub-sale list in the quarter, with 81 and 71 deals, respectively. Sky@Eleven in Thomson Road was third with 51, while City Square Residences and Citylights in the Jalan Besar area saw 40 deals each.
With most of these projects due to be completed soon, Mr Ku added that the spike in sub-sales could backed by genuine buying demand from displaced collective sale sellers.
This may be a balm to the Government, which has periodically referred to low levels of sub-sales as a sign that rising property prices are fuelled by genuine home demand.
Last year, there were just 989 sub-sale deals, accounting for a mere 4.1 per cent of total private home sales.
Source: The Straits Times, 14 July 2007
Thursday, July 12, 2007
Property developer Soilbuild Group Holdings is set to issue $60 million worth of convertible bonds aimed at tapping the bullish market sentiment.
Property developer Soilbuild Group Holdings is set to issue $60 million worth of convertible bonds aimed at tapping the bullish market sentiment.
The company expects strong investor interest to facilitate the long-term expansion of its capital base and support its future growth. Soilbuild plans to use the net proceeds from the bond issue to finance new investments, acquisitions and development of new land sites for residential and business properties.
The issue includes an over-allotment option of $10 million to be exercised to meet the strong demand from institutional investors. The four-year bonds will bear a yearly coupon rate of one per cent payable half yearly and are convertible into new Soilbuild shares at $2.0182 each, representing a 28 per cent premium above the 30-day volume weighted average price of Soilbuild shares.
It is also the first unsecured corporate debt issued by the company, which has been listed on the Singapore Exchange since 2005.
Soilbuild’s chief financial officer, Then Chee Tat, believes that this corporate debt, which is the longest maturity period extended to the company, represents a vote of confidence in its financial prospects and is in line with its long-term goal of equity capital expansion.
‘The use of convertible bonds for funding enables us to broaden our funding base and better manage our capital structure by tapping both the debt and equity capital markets,’ Mr Then said.
Soilbuild has won numerous industry awards since 1998 and has a track record of over 30 years. With the success of numerous prime residential projects and the recent completion of a business park in Changi under its belt, Soilbuild’s executive director Low Soon Sim believes the company is well positioned in the current residential property cycle.
‘Moving ahead, we will use the funds raised to selectively acquire and develop new residential sites and to continue building up our portfolio of business space properties where we believe has good potential for growth,’ said Mr Low.
Soilbuild’s market cap stood at about $363 million at closing yesterday.
Standard Chartered Bank is the sole book-runner and lead manager for the bond issue.
Source: The Business Times, 11 July 2007
The company expects strong investor interest to facilitate the long-term expansion of its capital base and support its future growth. Soilbuild plans to use the net proceeds from the bond issue to finance new investments, acquisitions and development of new land sites for residential and business properties.
The issue includes an over-allotment option of $10 million to be exercised to meet the strong demand from institutional investors. The four-year bonds will bear a yearly coupon rate of one per cent payable half yearly and are convertible into new Soilbuild shares at $2.0182 each, representing a 28 per cent premium above the 30-day volume weighted average price of Soilbuild shares.
It is also the first unsecured corporate debt issued by the company, which has been listed on the Singapore Exchange since 2005.
Soilbuild’s chief financial officer, Then Chee Tat, believes that this corporate debt, which is the longest maturity period extended to the company, represents a vote of confidence in its financial prospects and is in line with its long-term goal of equity capital expansion.
‘The use of convertible bonds for funding enables us to broaden our funding base and better manage our capital structure by tapping both the debt and equity capital markets,’ Mr Then said.
Soilbuild has won numerous industry awards since 1998 and has a track record of over 30 years. With the success of numerous prime residential projects and the recent completion of a business park in Changi under its belt, Soilbuild’s executive director Low Soon Sim believes the company is well positioned in the current residential property cycle.
‘Moving ahead, we will use the funds raised to selectively acquire and develop new residential sites and to continue building up our portfolio of business space properties where we believe has good potential for growth,’ said Mr Low.
Soilbuild’s market cap stood at about $363 million at closing yesterday.
Standard Chartered Bank is the sole book-runner and lead manager for the bond issue.
Source: The Business Times, 11 July 2007
Singapore could face a private housing supply crunch in the short term even though as many as 57,900 units are under construction or planned
Singapore could face a private housing supply crunch in the short term even though as many as 57,900 units are under construction or planned, says JP Morgan in a report.
Supply should ‘normalise’ in the next 12-18 months, says the investment bank, pointing out that 4,400 units were added to housing stock in just the first quarter of 2007.
But much of the supply will only kick in about one or two years from now. ‘Most of the inventory will be brought on-line over the next year or two for completion post-2010, with 16,800 private residential properties due in 2009.’
At end-2006, about 14,200 available units were unoccupied and a further 4,100 were due to be completed by this year-end.
‘These in total will yield 18,400 ready-to-occupy units to meet the demand from those who need a completed unit to occupy in 2007,’ says JP Morgan.
Its analysts, Christopher Gee and Joy Wang, point out that their estimates for the private housing pipeline do not include the supply from the government land sales programme, which could yield another 3,500 units. Nor do their figures take into consideration an estimated 16,000 units that could come up on the sites of projects sold en bloc.
JP Morgan says the government, which has over the past month made a number of cautionary statements about the excessive property price movements, can be expected to continue to back up those statements with supply-side initiatives.
But no official action to dampen demand - such as real property gains taxes - should be expected, it adds.
The analysts also point out that luxury home prices in Singapore are fast approaching those in Hong Kong. ‘Singapore’s luxury market prices are no longer such an apparent relative bargain as they were two or three years ago, especially in contrast to Hong Kong and some major cities around the world.’
Official estimates show that prices of uncompleted projects in the core central region climbed 46.3 per cent from the first quarter of 2004 to the first quarter of 2007.
JP Morgan has an ‘underweight’ rating on Singapore property stocks, saying prices already reflect ‘an optimistic outlook on further housing price increases’. It is keeping its ‘overweight’ calls on CapitaLand and GuocoLand, but has downgraded City Developments to ‘underweight’. Allgreen Properties and Wheelock Properties are also rated ‘underweight’.
Source: The Business Times, 12 July 2007
Supply should ‘normalise’ in the next 12-18 months, says the investment bank, pointing out that 4,400 units were added to housing stock in just the first quarter of 2007.
But much of the supply will only kick in about one or two years from now. ‘Most of the inventory will be brought on-line over the next year or two for completion post-2010, with 16,800 private residential properties due in 2009.’
At end-2006, about 14,200 available units were unoccupied and a further 4,100 were due to be completed by this year-end.
‘These in total will yield 18,400 ready-to-occupy units to meet the demand from those who need a completed unit to occupy in 2007,’ says JP Morgan.
Its analysts, Christopher Gee and Joy Wang, point out that their estimates for the private housing pipeline do not include the supply from the government land sales programme, which could yield another 3,500 units. Nor do their figures take into consideration an estimated 16,000 units that could come up on the sites of projects sold en bloc.
JP Morgan says the government, which has over the past month made a number of cautionary statements about the excessive property price movements, can be expected to continue to back up those statements with supply-side initiatives.
But no official action to dampen demand - such as real property gains taxes - should be expected, it adds.
The analysts also point out that luxury home prices in Singapore are fast approaching those in Hong Kong. ‘Singapore’s luxury market prices are no longer such an apparent relative bargain as they were two or three years ago, especially in contrast to Hong Kong and some major cities around the world.’
Official estimates show that prices of uncompleted projects in the core central region climbed 46.3 per cent from the first quarter of 2004 to the first quarter of 2007.
JP Morgan has an ‘underweight’ rating on Singapore property stocks, saying prices already reflect ‘an optimistic outlook on further housing price increases’. It is keeping its ‘overweight’ calls on CapitaLand and GuocoLand, but has downgraded City Developments to ‘underweight’. Allgreen Properties and Wheelock Properties are also rated ‘underweight’.
Source: The Business Times, 12 July 2007
Thursday, July 5, 2007
Singapore’s property market is booming, with activity centred in districts 4, 9, 10, 11 and 15. And I believe there is a lot more upside yet. Why?
Singapore’s property market is booming, with activity centred in districts 4, 9, 10, 11 and 15. And I believe there is a lot more upside yet. Why? For each key event listed below, I expect an above average movement of $200 per square foot for the districts mentioned in the years ahead:
Year 2008: Singapore will host the world’s first Formula One night racing. The world will be invited to Singapore, interact with and invest in Singapore.
Year 2009: The first integrated resort (IR) at Marina Bay will be completed with US$5 billion flowing into Singapore from the first wave of tourists. They will come from the business travel, meetings, conventions and dexhibitions segment.
Year 2010: The second IR on Sentosa will be completed with another US$5 billion flowing in from the second wave of tourists. These tourists will come from destinations beyond a nine-hour flight radius.
Year 2011: My guess is that there will be a general election in Singapore which could see some election year goodies.
Year 2015: Singapore celebrates her 50th birthday and hopefully fulfils Prime Minister Lee Hsien Loong’s vision of Singapore as the jewel of the region.
Can we really profit from investing in the property market?
While many wealth creation fads come and go, property investment has consistently created more permanent millionaires than any other investing strategy in history. Here are what some of the wealthiest Americans have said:
‘Real estate is the basis for all wealth.’ - Theodore Roosevelt
‘Eighty per cent of all millionaires made it through real estate.’ - Andrew Carnegie
‘Buying real estate is the best, safest way to become wealthy.’ - Marshall Fields
The truth is that property investment is not just for the rich. If done correctly, anyone who has the desire to succeed can create enough passive income or a lump sum of cash to become financially free.
According to an annual World Wealth Report compiled recently by Merrill Lynch and research firm Capgemini, Singapore has 66,660 millionaires (in US$ terms). They account for about 1.5 per cent of the population, that is, three out of every 200 people here are millionaires.
But the sad truth is that only three out of every 200 Singaporeans will be financially independent when they retire. The rest will either be dependent on family, friends or charity, or have to work indefinitely.
If you’re spending all the money you make and banking on your Central Provident Fund (CPF) for retirement, I want you to wake up from your sweet dreams! The CPF is designed as a supplement to your retirement plan. If CPF savings are all you’ve got, you are either going to have to continue working well past retirement age, or live a meagre lifestyle.
Most people think that the safest option is to park their money in fixed deposits. But they fail to take account of inflation. Today’s inflation rate is about one per cent a year. You need to earn one per cent on your money in fixed deposits just to break even. You’ll need to earn more if you want to create wealth. As such, you will definitely want to invest in instruments that will not only give you a good return but also appreciate in value over time. One good way is to invest in property.
There are two roles to consider. In the beginning, you enter the property market as a buyer and after some time, you exit as a seller. We call this: ‘Buy low, sell high, make money.’ I’ll use a real-life example of the process that made a buyer a cool profit of almost $1 million in a year.
Step 1: The buyer places a one per cent deposit for an option to purchase a property at $1.6 million. That comes to $16,000. The option gives the buyer the right, but not the obligation, to buy the property within two weeks. The owner of the property is not allowed to sell the property to someone else during this period.
Step 2: The buyer exercises the option two weeks later with an additional payment of 4 per cent or $64,000. Once this step is completed, the buyer will have about eight weeks to raise money for the outstanding amount.
Meanwhile, conveyancing work will have started to ensure both parties are legally approved by the authorities for this transaction.
Step 3: Eight weeks later, the buyer pays another 5 per cent - or $80,000 - to complete the purchase.
All in, the buyer has to fork out a cash amount of a $205,600. This comprises 10 per cent for the downpayment, $42,600 for the stamp duty and $3,000 for legal fees. (Stamp duty is taxed at 3 per cent of $1.6 million minus $5,400).
At this stage, the buyer would have invested 10 per cent of the value of the property in cash. The other 90 per cent is financed through bank borrowing. Once this process is completed, the seller hands over the house key to the buyer.
One year later, the owner sells the property for $2.7 million and reaps a profit of $970,715. That is calculated on the sale price of $2.7 million minus the purchase price of $1.6 million. On top of that are the other expenses: stamp duty of $42,600, legal fees of $3,000 X 2 (incurred on the buying and selling); bank redemption of $26,685 (the bank’s penalty as part of loan agreement); 2 per cent for agent’s fee of $54,000 (this is double the market rate to incentivise performance).
There is no secret formula to investing in the property market. All it takes is an understanding of the key terms, a commitment of time and most importantly, a ready lump sum of cash to initiate the purchase.
Where are the areas to invest?I highly recommend Sentosa Cove and District 10.
Sentosa Cove offers one of the most exciting propositions - a residential enclave that shares the island with an integrated resort. The wealthiest individuals in the world will be looking to buy your property which will be situated right next to their favourite entertainment spot.
In district 10, the Duchess area is the place where you can invest in your child’s future. Within a one-km radius, it offers several premier schools: the Nanyang and Raffles Girls’ primary schools, St Margaret’s Secondary School, Nanyang Girls’ High, Chinese High School, Hwa Chong Institution, National Junior College and Hwa Chong Junior College.
When do we invest in the property market? The answer is: Now! There is no better time to start investing for the future.
The writer is CEO, Freely Business School. www.freely.com
Source: The Business Times, 04 July 2007
Year 2008: Singapore will host the world’s first Formula One night racing. The world will be invited to Singapore, interact with and invest in Singapore.
Year 2009: The first integrated resort (IR) at Marina Bay will be completed with US$5 billion flowing into Singapore from the first wave of tourists. They will come from the business travel, meetings, conventions and dexhibitions segment.
Year 2010: The second IR on Sentosa will be completed with another US$5 billion flowing in from the second wave of tourists. These tourists will come from destinations beyond a nine-hour flight radius.
Year 2011: My guess is that there will be a general election in Singapore which could see some election year goodies.
Year 2015: Singapore celebrates her 50th birthday and hopefully fulfils Prime Minister Lee Hsien Loong’s vision of Singapore as the jewel of the region.
Can we really profit from investing in the property market?
While many wealth creation fads come and go, property investment has consistently created more permanent millionaires than any other investing strategy in history. Here are what some of the wealthiest Americans have said:
‘Real estate is the basis for all wealth.’ - Theodore Roosevelt
‘Eighty per cent of all millionaires made it through real estate.’ - Andrew Carnegie
‘Buying real estate is the best, safest way to become wealthy.’ - Marshall Fields
The truth is that property investment is not just for the rich. If done correctly, anyone who has the desire to succeed can create enough passive income or a lump sum of cash to become financially free.
According to an annual World Wealth Report compiled recently by Merrill Lynch and research firm Capgemini, Singapore has 66,660 millionaires (in US$ terms). They account for about 1.5 per cent of the population, that is, three out of every 200 people here are millionaires.
But the sad truth is that only three out of every 200 Singaporeans will be financially independent when they retire. The rest will either be dependent on family, friends or charity, or have to work indefinitely.
If you’re spending all the money you make and banking on your Central Provident Fund (CPF) for retirement, I want you to wake up from your sweet dreams! The CPF is designed as a supplement to your retirement plan. If CPF savings are all you’ve got, you are either going to have to continue working well past retirement age, or live a meagre lifestyle.
Most people think that the safest option is to park their money in fixed deposits. But they fail to take account of inflation. Today’s inflation rate is about one per cent a year. You need to earn one per cent on your money in fixed deposits just to break even. You’ll need to earn more if you want to create wealth. As such, you will definitely want to invest in instruments that will not only give you a good return but also appreciate in value over time. One good way is to invest in property.
There are two roles to consider. In the beginning, you enter the property market as a buyer and after some time, you exit as a seller. We call this: ‘Buy low, sell high, make money.’ I’ll use a real-life example of the process that made a buyer a cool profit of almost $1 million in a year.
Step 1: The buyer places a one per cent deposit for an option to purchase a property at $1.6 million. That comes to $16,000. The option gives the buyer the right, but not the obligation, to buy the property within two weeks. The owner of the property is not allowed to sell the property to someone else during this period.
Step 2: The buyer exercises the option two weeks later with an additional payment of 4 per cent or $64,000. Once this step is completed, the buyer will have about eight weeks to raise money for the outstanding amount.
Meanwhile, conveyancing work will have started to ensure both parties are legally approved by the authorities for this transaction.
Step 3: Eight weeks later, the buyer pays another 5 per cent - or $80,000 - to complete the purchase.
All in, the buyer has to fork out a cash amount of a $205,600. This comprises 10 per cent for the downpayment, $42,600 for the stamp duty and $3,000 for legal fees. (Stamp duty is taxed at 3 per cent of $1.6 million minus $5,400).
At this stage, the buyer would have invested 10 per cent of the value of the property in cash. The other 90 per cent is financed through bank borrowing. Once this process is completed, the seller hands over the house key to the buyer.
One year later, the owner sells the property for $2.7 million and reaps a profit of $970,715. That is calculated on the sale price of $2.7 million minus the purchase price of $1.6 million. On top of that are the other expenses: stamp duty of $42,600, legal fees of $3,000 X 2 (incurred on the buying and selling); bank redemption of $26,685 (the bank’s penalty as part of loan agreement); 2 per cent for agent’s fee of $54,000 (this is double the market rate to incentivise performance).
There is no secret formula to investing in the property market. All it takes is an understanding of the key terms, a commitment of time and most importantly, a ready lump sum of cash to initiate the purchase.
Where are the areas to invest?I highly recommend Sentosa Cove and District 10.
Sentosa Cove offers one of the most exciting propositions - a residential enclave that shares the island with an integrated resort. The wealthiest individuals in the world will be looking to buy your property which will be situated right next to their favourite entertainment spot.
In district 10, the Duchess area is the place where you can invest in your child’s future. Within a one-km radius, it offers several premier schools: the Nanyang and Raffles Girls’ primary schools, St Margaret’s Secondary School, Nanyang Girls’ High, Chinese High School, Hwa Chong Institution, National Junior College and Hwa Chong Junior College.
When do we invest in the property market? The answer is: Now! There is no better time to start investing for the future.
The writer is CEO, Freely Business School. www.freely.com
Source: The Business Times, 04 July 2007
Monday, July 2, 2007
The suburban residential market is finally catching up with the verve of the high-end luxury market
The suburban residential market is finally catching up with the verve of the high-end luxury market, according to a report by real estate specialists CB Richard Ellis.
“The strong take-up recorded for suburban projects is in part due to the limited supply of new homes within the price range of $600psf and $800psf,” said Mr Joseph Tan, CB Richard Ellis’ executive director (residential). “Most new launches in the past 12 months have been high-end projects.”
While luxury projects continued to break price records for the second quarter of the year, three major projects in the suburban areas sold out within weeks of their launch.
The first batch of units at the 99-year leasehold, 556-unit Casa Merah near Tanah Merah MRT station averaged $590psf when it was launched in April. But these prices quickly rose to an average of $700psf, reflecting the demand for these units.
The 140 units at Northwood in Jalan Mata Ayer sold for an average price of $620psf while over at Woodleigh Close, Parc Mondrian’s 100 units averaged $680psf amid brisk sales.
Prices of mid-tier projects climbed as well, with The Seafront On Meyer and Wing Tai’s Riverine By The Park being offered to the primary market at prices between $1,400psf and $1,500psf.
Keppel Land’s Reflections at Keppel Bay set a new benchmark price for the Telok Blangah area with its launch price of $1,900psf.
Speculation on the property market has also resulted in a jump in the sub-sale market, with CB Richard Ellis expecting the sub-sale market to hit over 4,000 transactions by the end of the second quarter. This will be a slight increase over the 3,866 sales registered in the first quarter.
This hike, according to the property specialist, is because of the increase in the number of sub-sales of popular projects as well as a jump in collective sale numbers, resulting in an influx of buyers looking for replacement properties.
“Moving on to the third quarter, we expect the current positive sentiment to continue,” Mr Tan said.
“The take-up of new homes is likely to exceed 3,000 units while home prices may continue to head up by another 3 per cent to 5 per cent in the next quarter,” he added.
Awaiting this next batch of homebuyers in the next quarter will be developers with a variety of offerings to cater to these diverse tastes.
CB Richard Ellis expects Hilltops, Scotts Square and the 99-year leasehold condominium at the Marina Collection on Sentosa Cove to be launched for the high-end segment.
For the prime and mid-tier segment, there is the expected launch of the 99-year leasehold condominium project on Sinaran Drive and the developments on the sites of the former Dragon View Park and Eastern Mansion.
The suburban projects are also getting in on the act, with the possibility of the Versilia On Haig and the development on the former site of Westpeak in West Coast Walk being put on the market.
Source: Weekend Today, 30 June 2007
“The strong take-up recorded for suburban projects is in part due to the limited supply of new homes within the price range of $600psf and $800psf,” said Mr Joseph Tan, CB Richard Ellis’ executive director (residential). “Most new launches in the past 12 months have been high-end projects.”
While luxury projects continued to break price records for the second quarter of the year, three major projects in the suburban areas sold out within weeks of their launch.
The first batch of units at the 99-year leasehold, 556-unit Casa Merah near Tanah Merah MRT station averaged $590psf when it was launched in April. But these prices quickly rose to an average of $700psf, reflecting the demand for these units.
The 140 units at Northwood in Jalan Mata Ayer sold for an average price of $620psf while over at Woodleigh Close, Parc Mondrian’s 100 units averaged $680psf amid brisk sales.
Prices of mid-tier projects climbed as well, with The Seafront On Meyer and Wing Tai’s Riverine By The Park being offered to the primary market at prices between $1,400psf and $1,500psf.
Keppel Land’s Reflections at Keppel Bay set a new benchmark price for the Telok Blangah area with its launch price of $1,900psf.
Speculation on the property market has also resulted in a jump in the sub-sale market, with CB Richard Ellis expecting the sub-sale market to hit over 4,000 transactions by the end of the second quarter. This will be a slight increase over the 3,866 sales registered in the first quarter.
This hike, according to the property specialist, is because of the increase in the number of sub-sales of popular projects as well as a jump in collective sale numbers, resulting in an influx of buyers looking for replacement properties.
“Moving on to the third quarter, we expect the current positive sentiment to continue,” Mr Tan said.
“The take-up of new homes is likely to exceed 3,000 units while home prices may continue to head up by another 3 per cent to 5 per cent in the next quarter,” he added.
Awaiting this next batch of homebuyers in the next quarter will be developers with a variety of offerings to cater to these diverse tastes.
CB Richard Ellis expects Hilltops, Scotts Square and the 99-year leasehold condominium at the Marina Collection on Sentosa Cove to be launched for the high-end segment.
For the prime and mid-tier segment, there is the expected launch of the 99-year leasehold condominium project on Sinaran Drive and the developments on the sites of the former Dragon View Park and Eastern Mansion.
The suburban projects are also getting in on the act, with the possibility of the Versilia On Haig and the development on the former site of Westpeak in West Coast Walk being put on the market.
Source: Weekend Today, 30 June 2007
Singapore Press Holdings’ main property asset, Paragon, has been revalued at $1.82 billion. This is higher than the valuation of $1.52 billion
Singapore Press Holdings’ main property asset, Paragon, has been revalued at $1.82 billion. This is higher than the valuation of $1.52 billion the media group disclosed in July last year when it announced its results for the third quarter of FY2006.
The latest valuation of the retail and office complex at prime Orchard Road was carried out by Knight Frank. The valuation of Paragon, done on an annual basis, is required under the terms of the bank loan for the property.
While Paragon was once identified as a non-core asset, SPH has said in recent times that it is committed to holding on to the property for the foreseeable future. The complex enjoys full occupancy, and yielded about 9 per cent return on equity, according to SPH’s latest annual report. The group has made efforts to enhance rental yields from the complex.
Separately, SPH said it will absorb the Goods and Services Tax (GST) hike of 2 per cent for its suite of newspapers and magazines. Cover prices of its publications will remain unchanged from July 1, 2007. SPH has a stable of 14 newspapers in four languages and over 90 magazine titles in Singapore and the region. The additional cost to SPH of absorbing the 2 per cent GST hike is estimated to be about $4 million a year.
SPH shares rose six cents to $4.64 yesterday. The group will release its financial results for the third quarter ended May 2007 on July 11.
Source: The Business Times, 29 June 2007
The latest valuation of the retail and office complex at prime Orchard Road was carried out by Knight Frank. The valuation of Paragon, done on an annual basis, is required under the terms of the bank loan for the property.
While Paragon was once identified as a non-core asset, SPH has said in recent times that it is committed to holding on to the property for the foreseeable future. The complex enjoys full occupancy, and yielded about 9 per cent return on equity, according to SPH’s latest annual report. The group has made efforts to enhance rental yields from the complex.
Separately, SPH said it will absorb the Goods and Services Tax (GST) hike of 2 per cent for its suite of newspapers and magazines. Cover prices of its publications will remain unchanged from July 1, 2007. SPH has a stable of 14 newspapers in four languages and over 90 magazine titles in Singapore and the region. The additional cost to SPH of absorbing the 2 per cent GST hike is estimated to be about $4 million a year.
SPH shares rose six cents to $4.64 yesterday. The group will release its financial results for the third quarter ended May 2007 on July 11.
Source: The Business Times, 29 June 2007
Friday, June 29, 2007
A new record for home prices in Singapore has been set, once again. A unit in SC Global’s freehold The Marq On Paterson Hill has been sold for $5,100
A new record for home prices in Singapore has been set, once again. A unit in SC Global’s freehold The Marq On Paterson Hill has been sold for $5,100 per square foot (psf), the developer said yesterday.
SC Global, a developer of exclusive luxury residences, said it has sold all 21 apartments it released in the first phase of its 66-unit luxury development at an average selling price of $4,137 psf. The project started previewing last week.
The previous record for home prices was held by Parkview Eclat, where developer Chyau Fwu Group said it sold a four-bedroom apartment for ‘almost $4,200 psf’.
At The Marq, absolute prices for apartments ranged from about $11 million to $31 million, SC Global said.
Another luxury property - in the Bukit Timah area this time round rather than Orchard - has similarly seen hot demand. About 70 per cent of the UOL Group’s 120-unit Duchess Residences has been sold with prices crossing the $2,000 psf mark for several apartments, the company said. Sources said that the highest price fetched was in the region of $2,100 psf.
Duchess Residences started previewing on Monday, but most of the units were snapped up over four hours yesterday, BT understands. The project will be officially launched tomorrow, UOL said.
‘This (the high prices) confirms that the Bukit Timah area is seeing a lot of pent-up demand, and people are looking to buy,’ said Ku Swee Yong, director of marketing and business development at Savills Singapore.
Savills is marketing Duchess Residences together with DTZ Debenham Tie Leung.
Bukit Timah, which made waves during the last property boom, is expected to make a comeback this year. Other than Duchess Residences, at least five other developments will be launched there in the coming months, with prices expected to cross the $2,000 psf mark - a level not seen for the past 10 years.
SC Global shares traded unchanged at $6.40 yesterday before a late afternoon trading halt ahead of the announcement. UOL’s stock closed 15 cents higher at $5.80.
Source: The Business Times, 29 June 2007
SC Global, a developer of exclusive luxury residences, said it has sold all 21 apartments it released in the first phase of its 66-unit luxury development at an average selling price of $4,137 psf. The project started previewing last week.
The previous record for home prices was held by Parkview Eclat, where developer Chyau Fwu Group said it sold a four-bedroom apartment for ‘almost $4,200 psf’.
At The Marq, absolute prices for apartments ranged from about $11 million to $31 million, SC Global said.
Another luxury property - in the Bukit Timah area this time round rather than Orchard - has similarly seen hot demand. About 70 per cent of the UOL Group’s 120-unit Duchess Residences has been sold with prices crossing the $2,000 psf mark for several apartments, the company said. Sources said that the highest price fetched was in the region of $2,100 psf.
Duchess Residences started previewing on Monday, but most of the units were snapped up over four hours yesterday, BT understands. The project will be officially launched tomorrow, UOL said.
‘This (the high prices) confirms that the Bukit Timah area is seeing a lot of pent-up demand, and people are looking to buy,’ said Ku Swee Yong, director of marketing and business development at Savills Singapore.
Savills is marketing Duchess Residences together with DTZ Debenham Tie Leung.
Bukit Timah, which made waves during the last property boom, is expected to make a comeback this year. Other than Duchess Residences, at least five other developments will be launched there in the coming months, with prices expected to cross the $2,000 psf mark - a level not seen for the past 10 years.
SC Global shares traded unchanged at $6.40 yesterday before a late afternoon trading halt ahead of the announcement. UOL’s stock closed 15 cents higher at $5.80.
Source: The Business Times, 29 June 2007
Tuesday, June 26, 2007
The idea of owning a nest in Singapore is becoming increasingly attractive to foreigners.
In the eyes of some, at least, there may never be a better time to slaughter one of the sacred cows of the landed home market.
The idea of owning a nest in Singapore is becoming increasingly attractive to foreigners. The Government, too, has been effusive in its efforts to draw foreign talent here to build the economy.
So why not relax restrictions on the sale of landed property to foreigners — and satisfy both needs at one go?
Making this controversial proposal in a report released on Sunday, Goldman Sachs — one of the world’s largest investment banks — cited suggestive figures.
The proportion of foreigners buying private homes here climbed to 26 per cent in the first quarter of the year, up from 21 per cent in 2005. But as of May, foreigners were involved in only 8 per cent of landed property transactions this year — compared with 29 per cent of apartment transactions. The average price of a top-end bungalow falls short of that of a luxury condominium unit by about 35 per cent.
“We think this price gap could narrow to parity, or very close to it, should restrictions on foreign ownership be relaxed,” said the report, adding that “foreigners would like the flexibility of greater housing choice and the positive signal of Singapore’s open door policy emanating from such a move”.
But the argument will be a thorny one for the Republic to swallow, given the socio-political barbs of such a move. And going by industry players’ reactions, the debate is likely to remain an academic one.
Since 1973, the Residential Property Act has restricted foreigners and permanent residents from owning private residential property without prior official approval — and for good reason.
“The restrictions on foreign ownership of landed property is unlikely to be eased because it is an emotional issue. It involves (putting) a tangible, physical part of Singapore in foreign hands,” said Mr Colin Tan, director for research and development at Chesterton International.
“Landed properties should not be priced out of Singaporean’s reach (or) it could lead to disgruntled Singaporeans, which would be a cause of concern for the Government,” said Mr Charles Chong, chairman of the Government Parliamentary Committee for National Development and Environment.
Even so, a concession was made in 2004 for Sentosa Cove (picture), where potential foreign buyers were given fast-track approval. Of the 36 landed transactions at Sentosa Cove, 44 per cent involved foreigners. A seaview bungalow plot within the luxury enclave set the record at $1,308 per square foot.
But that is most unlikely to herald any universal lifting of control over landed property ownership in Singapore, say property analysts.
Goldman Sachs argues in its report that removing such restrictions would not hurt the national objective “of giving Singaporeans a stake in the country”; neither would it price them out of the market.
It reasoned that the public housing market met the needs of 80 per cent of Singaporeans by making affordable homes available. The report also conceded that any policy change could be limited to selected types of landed property, such as good-class bungalows.
But Mr Ku Swee Yong, director of marketing and business development at Savills Singapore, argued that the influx of buyers would give landed property owners the upper hand in this land-scarce environment. “It would be a sellers’ market. This will definitely have an immediate impact on prices,” he said.
According to forecasts released by property firm CB Richard Ellis yesterday, home prices are estimated to have risen by 4 to 6 per cent between April and June, and they are expected to climb by another 3 to 5 per cent. One driving factor: The limited supply of new homes in the $600 to $800 psf price range.
Mr Nicholas Mak, Knight Frank’s director of research and consultancy, said: “Prior to the Residential Property Act, rich Indonesians snapped up properties, pricing Singaporeans out of the market. Today, high-end property prices are up. That is starting to filter down to the mid-tier properties.”
He added that keeping certain privileges of home ownership for citizens only “encourages foreigners to commit to Singapore, to sink their roots here”.
Chesterton’s Mr Tan added: “Some things have to be preserved for Singaporeans. Landed property ownership is one of them. It is the privilege of being Singaporean.”
Source: Today, 26 June 2007
The idea of owning a nest in Singapore is becoming increasingly attractive to foreigners. The Government, too, has been effusive in its efforts to draw foreign talent here to build the economy.
So why not relax restrictions on the sale of landed property to foreigners — and satisfy both needs at one go?
Making this controversial proposal in a report released on Sunday, Goldman Sachs — one of the world’s largest investment banks — cited suggestive figures.
The proportion of foreigners buying private homes here climbed to 26 per cent in the first quarter of the year, up from 21 per cent in 2005. But as of May, foreigners were involved in only 8 per cent of landed property transactions this year — compared with 29 per cent of apartment transactions. The average price of a top-end bungalow falls short of that of a luxury condominium unit by about 35 per cent.
“We think this price gap could narrow to parity, or very close to it, should restrictions on foreign ownership be relaxed,” said the report, adding that “foreigners would like the flexibility of greater housing choice and the positive signal of Singapore’s open door policy emanating from such a move”.
But the argument will be a thorny one for the Republic to swallow, given the socio-political barbs of such a move. And going by industry players’ reactions, the debate is likely to remain an academic one.
Since 1973, the Residential Property Act has restricted foreigners and permanent residents from owning private residential property without prior official approval — and for good reason.
“The restrictions on foreign ownership of landed property is unlikely to be eased because it is an emotional issue. It involves (putting) a tangible, physical part of Singapore in foreign hands,” said Mr Colin Tan, director for research and development at Chesterton International.
“Landed properties should not be priced out of Singaporean’s reach (or) it could lead to disgruntled Singaporeans, which would be a cause of concern for the Government,” said Mr Charles Chong, chairman of the Government Parliamentary Committee for National Development and Environment.
Even so, a concession was made in 2004 for Sentosa Cove (picture), where potential foreign buyers were given fast-track approval. Of the 36 landed transactions at Sentosa Cove, 44 per cent involved foreigners. A seaview bungalow plot within the luxury enclave set the record at $1,308 per square foot.
But that is most unlikely to herald any universal lifting of control over landed property ownership in Singapore, say property analysts.
Goldman Sachs argues in its report that removing such restrictions would not hurt the national objective “of giving Singaporeans a stake in the country”; neither would it price them out of the market.
It reasoned that the public housing market met the needs of 80 per cent of Singaporeans by making affordable homes available. The report also conceded that any policy change could be limited to selected types of landed property, such as good-class bungalows.
But Mr Ku Swee Yong, director of marketing and business development at Savills Singapore, argued that the influx of buyers would give landed property owners the upper hand in this land-scarce environment. “It would be a sellers’ market. This will definitely have an immediate impact on prices,” he said.
According to forecasts released by property firm CB Richard Ellis yesterday, home prices are estimated to have risen by 4 to 6 per cent between April and June, and they are expected to climb by another 3 to 5 per cent. One driving factor: The limited supply of new homes in the $600 to $800 psf price range.
Mr Nicholas Mak, Knight Frank’s director of research and consultancy, said: “Prior to the Residential Property Act, rich Indonesians snapped up properties, pricing Singaporeans out of the market. Today, high-end property prices are up. That is starting to filter down to the mid-tier properties.”
He added that keeping certain privileges of home ownership for citizens only “encourages foreigners to commit to Singapore, to sink their roots here”.
Chesterton’s Mr Tan added: “Some things have to be preserved for Singaporeans. Landed property ownership is one of them. It is the privilege of being Singaporean.”
Source: Today, 26 June 2007
The number of new homes sold in the second quarter of 2007 could exceed 4,300 units
The number of new homes sold in the second quarter of 2007 could exceed 4,300 units, but still less than the 4,800 homes sold in the first quarter, according to a new report released yesterday.
And third quarter sales are expected to be even lower than in the second quarter.
Property consultancy CB Richard Ellis (CBRE) expects the number of homes sold in the second quarter to fall - even as demand stays strong - mainly due to tight supply in the residential market.
Joseph Tan, CBRE’s executive director for residential, attributed the lower home sales from April to June to fewer launches of larger projects, as well as fewer launches overall.
‘There will be fewer launches,’ Mr Tan said. ‘Also, projects in the prime areas are getting smaller (in terms of the number of units) rather than larger.’
The drop in take-up rates for homes will continue into the third quarter, when the number of homes sold will exceed just 3,000, CBRE said.
Home prices, on the other hand, are expected to continue climbing in the second quarter.
‘We expect the overall price increase in the Urban Redevelopment Authority (URA) residential price index to be around 4 per cent to 6 per cent for the second quarter,’ CBRE said. The URA price index rose 4.8 per cent in the first quarter of 2007.
And CBRE also expects the positive uptrend to continue in the third quarter. Said Mr Tan: ‘The take-up of new homes is likely to exceed 3,000 units while home prices may continue to head up by another 3 per cent to 5 per cent in the next quarter.’
Developers will offer a variety of projects as they take advantage of the strong demand for new homes over the next quarter, said CBRE.
In the high-end segment, Hilltops, Scotts Square and a 99-year leasehold condominium at Marina Collection may be launched.
In the prime and mid-tier segments, condominium projects at Sinaran Drive (99-year leasehold), Jalan Mutiara (site of former Dragon View Park) and Meyer Road (site of former Eastern Mansion) are expected to be put on the market. Suburban projects such as the condominium on the former site of Westpeak in West Coast Walk and Versilia On Haig may also be launched.
Source: The Business Times, 26 June 2007
And third quarter sales are expected to be even lower than in the second quarter.
Property consultancy CB Richard Ellis (CBRE) expects the number of homes sold in the second quarter to fall - even as demand stays strong - mainly due to tight supply in the residential market.
Joseph Tan, CBRE’s executive director for residential, attributed the lower home sales from April to June to fewer launches of larger projects, as well as fewer launches overall.
‘There will be fewer launches,’ Mr Tan said. ‘Also, projects in the prime areas are getting smaller (in terms of the number of units) rather than larger.’
The drop in take-up rates for homes will continue into the third quarter, when the number of homes sold will exceed just 3,000, CBRE said.
Home prices, on the other hand, are expected to continue climbing in the second quarter.
‘We expect the overall price increase in the Urban Redevelopment Authority (URA) residential price index to be around 4 per cent to 6 per cent for the second quarter,’ CBRE said. The URA price index rose 4.8 per cent in the first quarter of 2007.
And CBRE also expects the positive uptrend to continue in the third quarter. Said Mr Tan: ‘The take-up of new homes is likely to exceed 3,000 units while home prices may continue to head up by another 3 per cent to 5 per cent in the next quarter.’
Developers will offer a variety of projects as they take advantage of the strong demand for new homes over the next quarter, said CBRE.
In the high-end segment, Hilltops, Scotts Square and a 99-year leasehold condominium at Marina Collection may be launched.
In the prime and mid-tier segments, condominium projects at Sinaran Drive (99-year leasehold), Jalan Mutiara (site of former Dragon View Park) and Meyer Road (site of former Eastern Mansion) are expected to be put on the market. Suburban projects such as the condominium on the former site of Westpeak in West Coast Walk and Versilia On Haig may also be launched.
Source: The Business Times, 26 June 2007
Friday, June 22, 2007
Lippo Group’s Stephen Riady could be teaming up with Kechapi Pte Ltd to build a resort in Changi. Kechapi is controlled by the Chua Family
Lippo Group’s Stephen Riady could be teaming up with Kechapi Pte Ltd to build a resort in Changi. Kechapi is controlled by the Chua Family who formerly held Cycle & Carriage here.
It was announced yesterday by the Urban Redevelopment Authority (URA) that HG Properties, a company linked to Mr Riady, emerged as the top bidder for a redevelopment site for a recreation club, hotel or holiday chalet at Fairy Point Hill in Changi.
Only two bids were received, with HG Properties offering $25.5 million - $144 per square foot per plot ratio for the 449,894 sq ft site.
The other bid of $10.68 million came from a Sino Land-linked entity called Precious Treasure. Sino Land, the Hong Kong sister company of Far East Organization, owns the Fullerton Hotel here.
Mr Riady and Kechapi could not be reached for comment but it is understood that HG Properties is 40 per cent owned by Kechapi and 60 per cent owned by Haggai Institute for Advanced Leadership Training Ltd (HIALTL) in which Mr Riady is a shareholder.
It is understood that HIALTL is an executive training and evangelical institute.
The site has a permissible gross floor area of 179,337.3 sq ft and a height restriction of about three storeys.
Industry sources say that the site can support a hotel with about 300 rooms or possibly 100 chalets.
If HG Properties does get awarded the site, HIALTL’s involvement could however see the site developed as a recreation club for its members or alumni.
Kechapi’s experience in the hospitality sector could also be useful. Kechapi sold the Garden Hotel to City Developments Ltd in 1999 for $108 million.
Kechapi still operates the hotel but the site is slated for redevelopment.
Source: The Business Times, 21 June 2007
It was announced yesterday by the Urban Redevelopment Authority (URA) that HG Properties, a company linked to Mr Riady, emerged as the top bidder for a redevelopment site for a recreation club, hotel or holiday chalet at Fairy Point Hill in Changi.
Only two bids were received, with HG Properties offering $25.5 million - $144 per square foot per plot ratio for the 449,894 sq ft site.
The other bid of $10.68 million came from a Sino Land-linked entity called Precious Treasure. Sino Land, the Hong Kong sister company of Far East Organization, owns the Fullerton Hotel here.
Mr Riady and Kechapi could not be reached for comment but it is understood that HG Properties is 40 per cent owned by Kechapi and 60 per cent owned by Haggai Institute for Advanced Leadership Training Ltd (HIALTL) in which Mr Riady is a shareholder.
It is understood that HIALTL is an executive training and evangelical institute.
The site has a permissible gross floor area of 179,337.3 sq ft and a height restriction of about three storeys.
Industry sources say that the site can support a hotel with about 300 rooms or possibly 100 chalets.
If HG Properties does get awarded the site, HIALTL’s involvement could however see the site developed as a recreation club for its members or alumni.
Kechapi’s experience in the hospitality sector could also be useful. Kechapi sold the Garden Hotel to City Developments Ltd in 1999 for $108 million.
Kechapi still operates the hotel but the site is slated for redevelopment.
Source: The Business Times, 21 June 2007
Tuesday, June 19, 2007
Seven years after he first decoupled his Hai Sun Hup Group into Singapore Shipping Corporation (SSC) and Stamford Land Corporation
Seven years after he first decoupled his Hai Sun Hup Group into Singapore Shipping Corporation (SSC) and Stamford Land Corporation, and less than a year after decoupling SSC’s logistics operations, Cougar Logistics Corporation, former tongkang operator Ow Chio Kiat is feeling itchy again.
He recently told shareholders he was thinking of putting all his hotels into a real estate investment trust (Reit) to bring about better shareholder value.
Mr Ow has proved more than once that he is able to unlock shareholder value. Before he separated Hai Sun Hup in 2000 into its marine-related businesses under SSC and property under Stamford in 2000, the market capitalisation of the single listing was about $216 million. SSC was worth just about $200 million before Cougar was spun off.
Today, the combined market capitalisation of the three listed companies is over $800 million, and this year they distributed over $100 million to shareholders. But if you ask Mr Ow, he will say that the group is still undervalued.
Not true value
Stamford Land, with a market capitalisation of over $500 million, at present has seven hotels in Australia and one in New Zealand which are not reflecting their true value since, under current accounting rules, this has to be depreciated.
The hotels in Sydney, Melbourne, Adelaide, Brisbane and Auckland are among the best in Australia and have won numerous accolades there and from abroad. Yet, because of strange accounting rules, shareholders cannot really comprehend their true worth.
The eight hotels - five purchased in the mid-1990s and the remaining three in 2000 - were bought for a total consideration of about A$480 million. Their book value after depreciation is now about A$388 million (S$504 million) and still heading south.
In a Reit, properties are revalued annually and the same hotels could now be worth A$700-800 million, allowing unit holders a better grasp of their assets.
Putting aside their capital appreciation, shareholders will still reap significant gains from the appreciation of the Aussie dollar, which was around S$1.05 in 2000 and is now hovering around S$1.30.
However, for shareholders to gain the full benefits of a Reit, Stamford wants to acquire a property in Singapore. It could then maximise its borrowings, and as the interest expenses can be offset against Australian hotel profits, benefits would be significant. Through efficient tax management, the Reit company will be able to optimise its returns.
Stamford recently bid $200 million for the 398-room Novotel Clarke Quay but was pipped by Kwek Leng Beng’s CDL Hospitality Reit, which offered a million dollars more and assumed debts totalling $18.8 million.
Although disappointed with the outcome of its initial foray into the local property market, Stamford - which has a cash hoard of around $80 million - is still on the lookout for a prime hotel property here.
For Stamford, putting its hotels into a Reit will make it asset-lighter, but hopefully with plenty of cash from listing the Reit to enable it to expand further into property development in
Australia and New Zealand. The plans are for it to retain a substantial stake in the Reit.
At present, Stamford has several high-end properties under development. This year, it is expected to book the profits from the sale of its remaining 22 residential units at its Stamford Marque in Sydney. As at yesterday, there was only one apartment left for sale. In the last financial year, it sold 61 units for pre-tax profit of $13.6 million and $85.2 million in revenue.
Choice site development
It is now developing another choice site near The Rocks - Sydney’s old town quarter. The dev which will be launched in the third quarter of this year, will comprise 129 apartments with a total saleable area of 17,360 sq m and 1,474 sq m of commercial space. Other developers are said to have offered double the A$22 million Stamford paid three years ago for the site.
In Auckland, the Albert Residences, comprising 149 residential units above the Stamford Plaza hotel, are expected to bring in much riches as there was no land cost or foundation-laying costs involved.
And in the hot office market of Perth, the company is building a 14-storey office block in the city centre, with a lettable area of 14,000 sq m.
Also, it is still looking for other choice development sites in the key cities of Australia. With all these things going on, Stamford Land is worth another look.
Source: The Business Times, 19 June 2007
He recently told shareholders he was thinking of putting all his hotels into a real estate investment trust (Reit) to bring about better shareholder value.
Mr Ow has proved more than once that he is able to unlock shareholder value. Before he separated Hai Sun Hup in 2000 into its marine-related businesses under SSC and property under Stamford in 2000, the market capitalisation of the single listing was about $216 million. SSC was worth just about $200 million before Cougar was spun off.
Today, the combined market capitalisation of the three listed companies is over $800 million, and this year they distributed over $100 million to shareholders. But if you ask Mr Ow, he will say that the group is still undervalued.
Not true value
Stamford Land, with a market capitalisation of over $500 million, at present has seven hotels in Australia and one in New Zealand which are not reflecting their true value since, under current accounting rules, this has to be depreciated.
The hotels in Sydney, Melbourne, Adelaide, Brisbane and Auckland are among the best in Australia and have won numerous accolades there and from abroad. Yet, because of strange accounting rules, shareholders cannot really comprehend their true worth.
The eight hotels - five purchased in the mid-1990s and the remaining three in 2000 - were bought for a total consideration of about A$480 million. Their book value after depreciation is now about A$388 million (S$504 million) and still heading south.
In a Reit, properties are revalued annually and the same hotels could now be worth A$700-800 million, allowing unit holders a better grasp of their assets.
Putting aside their capital appreciation, shareholders will still reap significant gains from the appreciation of the Aussie dollar, which was around S$1.05 in 2000 and is now hovering around S$1.30.
However, for shareholders to gain the full benefits of a Reit, Stamford wants to acquire a property in Singapore. It could then maximise its borrowings, and as the interest expenses can be offset against Australian hotel profits, benefits would be significant. Through efficient tax management, the Reit company will be able to optimise its returns.
Stamford recently bid $200 million for the 398-room Novotel Clarke Quay but was pipped by Kwek Leng Beng’s CDL Hospitality Reit, which offered a million dollars more and assumed debts totalling $18.8 million.
Although disappointed with the outcome of its initial foray into the local property market, Stamford - which has a cash hoard of around $80 million - is still on the lookout for a prime hotel property here.
For Stamford, putting its hotels into a Reit will make it asset-lighter, but hopefully with plenty of cash from listing the Reit to enable it to expand further into property development in
Australia and New Zealand. The plans are for it to retain a substantial stake in the Reit.
At present, Stamford has several high-end properties under development. This year, it is expected to book the profits from the sale of its remaining 22 residential units at its Stamford Marque in Sydney. As at yesterday, there was only one apartment left for sale. In the last financial year, it sold 61 units for pre-tax profit of $13.6 million and $85.2 million in revenue.
Choice site development
It is now developing another choice site near The Rocks - Sydney’s old town quarter. The dev which will be launched in the third quarter of this year, will comprise 129 apartments with a total saleable area of 17,360 sq m and 1,474 sq m of commercial space. Other developers are said to have offered double the A$22 million Stamford paid three years ago for the site.
In Auckland, the Albert Residences, comprising 149 residential units above the Stamford Plaza hotel, are expected to bring in much riches as there was no land cost or foundation-laying costs involved.
And in the hot office market of Perth, the company is building a 14-storey office block in the city centre, with a lettable area of 14,000 sq m.
Also, it is still looking for other choice development sites in the key cities of Australia. With all these things going on, Stamford Land is worth another look.
Source: The Business Times, 19 June 2007
Saturday, June 16, 2007
Goldman Sachs Group Inc’s urban real estate investment unit and homebuilder Noteware Development bought 5.75 acres in San Francisco’s Bayview-Hunters
Goldman Sachs Group Inc’s urban real estate investment unit and homebuilder Noteware Development bought 5.75 acres in San Francisco’s Bayview-Hunters Point section for US$19 million and will build 338 condominiums there.
The property, a former Coca-Cola plant at 5800 Third St near Monster Park at Candlestick Point, will have about 291 market rate condos priced above US$500,000. The US$146 million project will also have 47 affordable units priced above US$200,000 and stores occupying 11,000 square feet, the companies said on Tuesday.
The project, situated along the new Third Street light rail line that connects the Bayview to downtown, comes amid efforts to provide mid-priced housing in one of the most expensive US real estate markets.
The median price for a single-family home in April in San Francisco was US$850,000, up 4.9 per cent from a year ago, and the median condominium price was US$782,000, up 1.2 per cent, according to DataQuick Information Systems.
‘We believe in building moderately priced, quality housing that working families can afford, and bringing much needed retail to diverse and vibrant neighbourhoods like the Bayview,’ Alicia Glen, managing director of Goldman Sachs’s Urban Investment Group, said in a statement.
The national median home price in March was US$215,300, according to the Chicago-based National Association of Realtors.
The first apartments will open next fall, Noteware spokesman Claude Everhart said. Houston-based Noteware, founded by former Maxxam Property Co real estate executive James Noteware, has completed a 66-unit condo project in Phoenix and is building a 356-unit project in Las Vegas and a 198-unit building in San Francisco, near Third Street, according to the company’s website.
The Goldman Sachs Urban Investment Group funds real estate projects in emerging or transitional urban areas. Since 2001, it has invested over US$200 million.
The Third Street site was previously owned by Lennar Corp, the largest US homebuilder by revenue, and Levin Menzies & Associates, the statement said.
Lennar received approval from the San Francisco Board of Supervisors last month to build a mixed-use complex nearby that includes a new stadium that could be home to the National Football League’s 49ers. The team is negotiating with Santa Clara, 44 miles south, to build a stadium in that city.
Citigroup Inc, the world’s biggest financial firm, is providing construction financing for the Goldman-Noteware project.
Source: The Business Times, 14 June 2007
The property, a former Coca-Cola plant at 5800 Third St near Monster Park at Candlestick Point, will have about 291 market rate condos priced above US$500,000. The US$146 million project will also have 47 affordable units priced above US$200,000 and stores occupying 11,000 square feet, the companies said on Tuesday.
The project, situated along the new Third Street light rail line that connects the Bayview to downtown, comes amid efforts to provide mid-priced housing in one of the most expensive US real estate markets.
The median price for a single-family home in April in San Francisco was US$850,000, up 4.9 per cent from a year ago, and the median condominium price was US$782,000, up 1.2 per cent, according to DataQuick Information Systems.
‘We believe in building moderately priced, quality housing that working families can afford, and bringing much needed retail to diverse and vibrant neighbourhoods like the Bayview,’ Alicia Glen, managing director of Goldman Sachs’s Urban Investment Group, said in a statement.
The national median home price in March was US$215,300, according to the Chicago-based National Association of Realtors.
The first apartments will open next fall, Noteware spokesman Claude Everhart said. Houston-based Noteware, founded by former Maxxam Property Co real estate executive James Noteware, has completed a 66-unit condo project in Phoenix and is building a 356-unit project in Las Vegas and a 198-unit building in San Francisco, near Third Street, according to the company’s website.
The Goldman Sachs Urban Investment Group funds real estate projects in emerging or transitional urban areas. Since 2001, it has invested over US$200 million.
The Third Street site was previously owned by Lennar Corp, the largest US homebuilder by revenue, and Levin Menzies & Associates, the statement said.
Lennar received approval from the San Francisco Board of Supervisors last month to build a mixed-use complex nearby that includes a new stadium that could be home to the National Football League’s 49ers. The team is negotiating with Santa Clara, 44 miles south, to build a stadium in that city.
Citigroup Inc, the world’s biggest financial firm, is providing construction financing for the Goldman-Noteware project.
Source: The Business Times, 14 June 2007
Subscribe to:
Posts (Atom)
