SINGAPORE : The S$5 billion Marina Bay Sands project is on track to be completed by the second half of 2009.
This is despite the recent sand ban and disruption in the supply of granite.
Meanwhile, according to project designer and architect Moshe Safdie, some of the original designs have been updated.
The new addition to Singapore’s cityscape is a mammoth task, especially given obstacles such as rising costs and a shortage of manpower.
Mr Moshe Safdie said, “It’s one of those things that happen when you take a project of such a scale. It certainly didn’t make it easier for us. Marina Bay Sands is looking for alternative sources as everybody else is and we’ll keep going and overcome the issue.”
He also said some of the designs have evolved since they were first conceptualised - like the Art-Science museum.
He said, “The form of the Art-Science museum was free form. We spent months making it a very orderly mathematical structure of spheroids which makes it a sounder structure, cheaper to build and I think more beautiful at the same time.”
Mr Moshe Safdie said, “The first shock and surprise is when we started excavating and we found the old sea wall which used to be the wave break which used to protect the boats in the bay. And we’ve had to remove that and it’s been an extremely costly and complicated process.”
Las Vegas Sands signed an agreement with the Singapore government in May last year, to build a S$5 billion (US$3.2 billion) integrated resort, three months after winning the bid.
The Singapore Government announced today that it will award the project to develop the Integrated Resort (IR) at Marina Bay to Las Vegas Sands Corporation (“Sands”).
The Ministerial Committee (Tender Approving Authority or TAA) evaluating the four proposals, chaired by Deputy Prime Minister Professor S Jayakumar , announced their decision at a press conference this evening. Prof Jayakumar said, “All four proposers submitted very strong proposals which reflected their commitment to developing a truly outstanding integrated resort in Singapore”. He added that “Sands had submitted the best overall proposal that meets our economic and tourism objectives.”
The RFP for the Marina Bay IR was launched on 15 Nov 2005 and closed on 29 Mar 2006. Four proposers responded to the RFP – i.e. Sands; Harrah’s Entertainment and Keppel Land (“Harrah’s”); Genting International and Star Cruises (“Genting”); and MGM Mirage and CapitaLand (“MGM”).
Each of the four proposers committed to invest a total of $4 billion to $5 billion in a world-class development that would generate substantial economic benefits for Singapore. This reflects the strong confidence of international investors in Singapore’s tourism sector. All the proposals offered an excellent range of tourism products, ranging from MICE (i.e. Meetings, Incentives, Conventions and Exhibitions) facilities to leisure attractions and entertainment shows. The proposals also all met the stringent social safeguards set by the Singapore Government for the casino component.
The evaluation of the proposals was based on the following four main criteria, with approximate weights as shown:
a. Tourism appeal and contribution (40%);
b. Architectural concept and design (30%);
c. Development investment (20%); and
d. Strength of consortium and partners (10%).
Sands committed to the highest development investment of $3.85 billion. Together with the land price and other associated capital costs, the total investment by Sands would exceed $5 billion. This is one of the largest investments in the world for a single IR. The Marina Bay Sands is expected to stimulate an additional $2.7 billion (or approximately 0.8%) to Singapore’s annual Gross Domestic Product and generate 30,000 jobs throughout the economy by 2015.
Friday, June 1, 2007
How long can this bull cycle last?
THE property market’s ascent is welcome news to anyone who has lived through the boom and painful bust cycle of the 1990s. The relief would be acute for those who endured the black hole that a mortgaged property in negative equity would have put them. How long can this bull cycle last? For now, the signs are encouraging.
Plans to turn Singapore into a tourist capital, most visibly headlined by the billion dollar integrated resorts projects; coupled with the ongoing push to become a hub for private wealth management, higher education and various other initiatives are set to unleash structural changes that provide a solid underpinning for property values. These changes include new jobs and new expatriate residents who will be looking for homes. After all, Singapore’s home prices and rents, even with the recent spike, still lag those of developed markets.
The financial backdrop is also conducive. A thriving economy, relatively low interest rates and a buoyant stock market are conspiring to make risk taking seem a pretty easy proposition. The appetite for leverage, in particular, is growing, and recent data on home loans attest to this. In March, housing loans grew 3.6 per cent, the strongest pace in a year. The Credit Bureau’s preliminary data show a trend towards larger loans and banks report a rise in the number applying for second or third mortgages. For those who have invested and still are investing in property, the going looks good. Rising rents can easily cover loan instalments, and a reasonable holding period can produce profits in the triple digits. But those who think that ‘this time is different’ could rue their words. There are clearly a number of risks that could mar the Goldilocks scenario, even if these seem remote for now. Rising interest rates and job uncertainty can easily cause a heavily geared balance sheet to come undone.
Risk management is key, particularly for those who do not have the resources to hold the properties in the event of a downturn. A substantial number is likely to have bought uncompleted properties on deferred payment schemes and will be looking for a profitable exit. Timing will be critical, and yet timing is something even veteran fund managers get wrong. This is particularly so for individuals who tend to develop attachments to their investments.
The onus is then on individuals to exercise restraint. In this context, the recent move by the government to improve the transparency of the property market will be critical, as individuals count on publicly available data for their decisions. At the moment, developers often highlight record prices of homes sold, when average prices could present a far different picture. Details are currently being worked out by the Urban Redevelopment Authority.
Meanwhile, individuals would do well to remember that cycles are alive and recurring, even if the good times seem extended. Throwing prudence to the wind risks a recurrence of the black hole of negative equity, a prospect that is surely to be avoided.
EDITORIAL
Source: The Business Times, May 31, 2007
Plans to turn Singapore into a tourist capital, most visibly headlined by the billion dollar integrated resorts projects; coupled with the ongoing push to become a hub for private wealth management, higher education and various other initiatives are set to unleash structural changes that provide a solid underpinning for property values. These changes include new jobs and new expatriate residents who will be looking for homes. After all, Singapore’s home prices and rents, even with the recent spike, still lag those of developed markets.
The financial backdrop is also conducive. A thriving economy, relatively low interest rates and a buoyant stock market are conspiring to make risk taking seem a pretty easy proposition. The appetite for leverage, in particular, is growing, and recent data on home loans attest to this. In March, housing loans grew 3.6 per cent, the strongest pace in a year. The Credit Bureau’s preliminary data show a trend towards larger loans and banks report a rise in the number applying for second or third mortgages. For those who have invested and still are investing in property, the going looks good. Rising rents can easily cover loan instalments, and a reasonable holding period can produce profits in the triple digits. But those who think that ‘this time is different’ could rue their words. There are clearly a number of risks that could mar the Goldilocks scenario, even if these seem remote for now. Rising interest rates and job uncertainty can easily cause a heavily geared balance sheet to come undone.
Risk management is key, particularly for those who do not have the resources to hold the properties in the event of a downturn. A substantial number is likely to have bought uncompleted properties on deferred payment schemes and will be looking for a profitable exit. Timing will be critical, and yet timing is something even veteran fund managers get wrong. This is particularly so for individuals who tend to develop attachments to their investments.
The onus is then on individuals to exercise restraint. In this context, the recent move by the government to improve the transparency of the property market will be critical, as individuals count on publicly available data for their decisions. At the moment, developers often highlight record prices of homes sold, when average prices could present a far different picture. Details are currently being worked out by the Urban Redevelopment Authority.
Meanwhile, individuals would do well to remember that cycles are alive and recurring, even if the good times seem extended. Throwing prudence to the wind risks a recurrence of the black hole of negative equity, a prospect that is surely to be avoided.
EDITORIAL
Source: The Business Times, May 31, 2007
The Marq: Project is expected to be launched this year at upwards of $2,800 per square foot
The Marq: Project is expected to be launched this year at upwards of $2,800 per square foot
Some 39 luxury projects with a total of more than 3,600 units could be launched this year, says Colliers International. And about two-thirds of these developments will have 100 units or less.
The number of units per project is shrinking as apartments get bigger, market watchers say. For example, penthouse sizes have grown by 20-100 per cent since the 1990s, according to Colliers’ director of research and consultancy Tay Huey Ying.
“”In the 1990s, penthouses were usually about 3,500-5,000 square feet,” she says. “”Today we are looking at more and more penthouses in the range of 7,000 sq ft and above.”
Developers are also throwing in goodies such as European designer fittings, spas in all apartments and a separate pool for each unit to sweeten the pot.
“”As prices go up, people expect more,” Koh Brothers chief executive Francis Koh told BT.
“”If you buy a new unit instead of a resale unit, it has to be value-added. So we need to innovate.”
Luxury home prices in Singapore are indeed on the way up.
In just the first quarter of 2007, prices of uncompleted projects in the Core Central Region - which includes Districts 9, 10, 11, Marina Bay and Sentosa - rose 7.3 per cent.
And for the whole of 2006, prices of uncompleted projects in these prime areas rose 25.4 per cent. With prices expected to keep climbing for the rest of the year, developers are getting creative, making sure their offerings have the works.
SC Global Developments has a few firsts in mind. Its Marq On Paterson Hill will feature one tower with a 15-metre private lap pool in every apartment on every floor. The Marq is expected to be launched this year at upwards of $2,800 per square foot.
And another SC Global project, Hilltops, promises a resort-style steam spa in every apartment. Hilltops is expected to be launched this year at $2,500 to $3,000 psf.
Similarly, Koh Brother’s 53-unit The Lumos, in the Leonie Hill area, will have a sky garden on every floor. Every unit will open on to a landscaped plot of green living space, which Koh Brothers says will provide residents with “”a refreshing sanctuary and an access to nature that is unrivalled among high-rise developments’ ‘.
Besides exclusives like these, developers are splashing out to install the latest designer fittings in their apartments.
At The Lumos, each unit will come with an Italian-made Visentin Rainbow Shower, so you can change the backlight colours to suit your mood while showering. The master bathroom in each unit will be walled with Strass Swarovski Crystal tiles.
And in what the company says is another first, the exterior-facing bathroom windows are made of Liquid Crystal Glass, so you can turn from frosted to clear at the flick of a switch.
With features such as these, says Colliers’ Ms Tay, developers are trying to create a lifestyle that sells their apartments.
But some analysts say all the extras are adding to the cost - which again leads to increased prices.
“”It’s a cycle,” said an analyst with a foreign brokerage here. “”People pay more, so the developers spend more money to justify the price. And this again drives prices up.”
But with luxury home prices still continuing to climb, the trend can be expected to continue this year, the analyst said.
Some 39 luxury projects with a total of more than 3,600 units could be launched this year, says Colliers International. And about two-thirds of these developments will have 100 units or less.
The number of units per project is shrinking as apartments get bigger, market watchers say. For example, penthouse sizes have grown by 20-100 per cent since the 1990s, according to Colliers’ director of research and consultancy Tay Huey Ying.
“”In the 1990s, penthouses were usually about 3,500-5,000 square feet,” she says. “”Today we are looking at more and more penthouses in the range of 7,000 sq ft and above.”
Developers are also throwing in goodies such as European designer fittings, spas in all apartments and a separate pool for each unit to sweeten the pot.
“”As prices go up, people expect more,” Koh Brothers chief executive Francis Koh told BT.
“”If you buy a new unit instead of a resale unit, it has to be value-added. So we need to innovate.”
Luxury home prices in Singapore are indeed on the way up.
In just the first quarter of 2007, prices of uncompleted projects in the Core Central Region - which includes Districts 9, 10, 11, Marina Bay and Sentosa - rose 7.3 per cent.
And for the whole of 2006, prices of uncompleted projects in these prime areas rose 25.4 per cent. With prices expected to keep climbing for the rest of the year, developers are getting creative, making sure their offerings have the works.
SC Global Developments has a few firsts in mind. Its Marq On Paterson Hill will feature one tower with a 15-metre private lap pool in every apartment on every floor. The Marq is expected to be launched this year at upwards of $2,800 per square foot.
And another SC Global project, Hilltops, promises a resort-style steam spa in every apartment. Hilltops is expected to be launched this year at $2,500 to $3,000 psf.
Similarly, Koh Brother’s 53-unit The Lumos, in the Leonie Hill area, will have a sky garden on every floor. Every unit will open on to a landscaped plot of green living space, which Koh Brothers says will provide residents with “”a refreshing sanctuary and an access to nature that is unrivalled among high-rise developments’ ‘.
Besides exclusives like these, developers are splashing out to install the latest designer fittings in their apartments.
At The Lumos, each unit will come with an Italian-made Visentin Rainbow Shower, so you can change the backlight colours to suit your mood while showering. The master bathroom in each unit will be walled with Strass Swarovski Crystal tiles.
And in what the company says is another first, the exterior-facing bathroom windows are made of Liquid Crystal Glass, so you can turn from frosted to clear at the flick of a switch.
With features such as these, says Colliers’ Ms Tay, developers are trying to create a lifestyle that sells their apartments.
But some analysts say all the extras are adding to the cost - which again leads to increased prices.
“”It’s a cycle,” said an analyst with a foreign brokerage here. “”People pay more, so the developers spend more money to justify the price. And this again drives prices up.”
But with luxury home prices still continuing to climb, the trend can be expected to continue this year, the analyst said.
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