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Archive for March 17th, 2008

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Property investment market robust but outlook ahead challenging

Posted by luxuryasiahome on March 17, 2008

Singapore’s property investment market remained robust in the first two and a half months of this year, with investment sales totalling S$5.9 billion in that period.

The is according to a survey by consultant CB Richard Ellis.

It said strong economic fundamentals and the positive long-term outlook in Singapore underpinned property investment activity.

This is despite uncertain global economic conditions and a slowdown in the US economy.

The private sector led the property sales, raking in S$3.27 billion and accounting for more than half of the total investments here.

Public land sales contributed the remaining 45 percent or S$2.6 billion.

The office sector performed well in the first quarter of 2008, with about a third of total investment sales or S$2 billion so far.

Investment activity in the residential sector slowed considerably in the first quarter.

It contributed 38 percent of total investment sales or S$2.23 billion to date.

CBRE noted that developers are no longer as keen to acquire more sites for redevelopment compared with last year.

Investment in the industrial sector amounted to some S$333 million so far in the first quarter, driven largely by purchases by real estate investment trusts.

For the rest of the year, CBRE said it expects conditions for investment sales to be challenging.

It believes that investors are likely to take a longer time to assess the market before making any deals.

Going forward, CBRE said a healthy level of investment activity in the Singapore property market is expected to continue amidst strong growth in Asia and Singapore’s position as a financial services hub. – CNA/ms

Source : Channel NewsAsia – 17 Mar 2008

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Sales of private residential homes fell by 46% in February

Posted by luxuryasiahome on March 17, 2008

Sales of new private residential homes in February fell 46 per cent compared with the previous months.

This is according to figures released by the Urban Redevelopment Authority.

And industry watchers said this is the slowest sales since last August when the URA first released the data.

About 170 new private apartments were sold in February, compared with 316 units in January.

Donald Han, Managing Director of Cushman & Wakefield, said: “The market has gone through a period of slumber because of the current global economic turmoil. The stock market hasn’t been performing too well in the last 3 to 4 months.

“But that said, I think there’s still a lot of cash liquidity out there in the market place waiting for the right time to jump in and to do the purchase.”

While buyers hold back their purchases, developers too are waiting.

The data also showed supply falling 13 per cent on month in February, with a total of 343 units launched.

But more projects are expected in the next two quarters.

While sales volumes have dropped, prices don’t seem to have followed suit.

Dr Chua Yang Liang, Head of Research & Consultancy, Jones Lang LaSalle, said: “If you are looking purely at the low median that we’ve recorded of transactions in the various districts, prices have contracted between 0.7 and 5 per cent – that’s marginal contraction.

“While the sub-prime debacle has affected demand, price has remained stable, I think there is a strong underlying demand and that’s coming from occupiers, en bloc residents seeking alternative homes as well as foreigners who are now looking at buying instead of renting. “

Meantime, CB Richard Ellis expects the total number of new homes sold this quarter to be around 700 to 800 units.

It added that the only other times when the local residential market experienced such low sales volume were during the SARS period in 2003 and the Asian Financial Crisis around 1998.

Analysts said Singapore hasn’t been hit badly by the US sub-prime crisis, but it has somewhat affected buying confidence and credit availability.

For now, they are not overly concerned about the contraction in the property market, but they said that it’s crucial to monitor the impact of the sub-prime crisis in the next three to six months. – CNA/vm

Source : Channel NewsAsia – 17 Mar 2008

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Sales of private residential homes fell by 46% in February

Posted by luxuryasiahome on March 17, 2008

Sales of new private residential homes in February fell 46 per cent compared with the previous months.

This is according to figures released by the Urban Redevelopment Authority.

And industry watchers said this is the slowest sales since last August when the URA first released the data.

About 170 new private apartments were sold in February, compared with 316 units in January.

Donald Han, Managing Director of Cushman & Wakefield, said: “The market has gone through a period of slumber because of the current global economic turmoil. The stock market hasn’t been performing too well in the last 3 to 4 months.

“But that said, I think there’s still a lot of cash liquidity out there in the market place waiting for the right time to jump in and to do the purchase.”

While buyers hold back their purchases, developers too are waiting.

The data also showed supply falling 13 per cent on month in February, with a total of 343 units launched.

But more projects are expected in the next two quarters.

While sales volumes have dropped, prices don’t seem to have followed suit.

Dr Chua Yang Liang, Head of Research & Consultancy, Jones Lang LaSalle, said: “If you are looking purely at the low median that we’ve recorded of transactions in the various districts, prices have contracted between 0.7 and 5 per cent – that’s marginal contraction.

“While the sub-prime debacle has affected demand, price has remained stable, I think there is a strong underlying demand and that’s coming from occupiers, en bloc residents seeking alternative homes as well as foreigners who are now looking at buying instead of renting. “

Meantime, CB Richard Ellis expects the total number of new homes sold this quarter to be around 700 to 800 units.

It added that the only other times when the local residential market experienced such low sales volume were during the SARS period in 2003 and the Asian Financial Crisis around 1998.

Analysts said Singapore hasn’t been hit badly by the US sub-prime crisis, but it has somewhat affected buying confidence and credit availability.

For now, they are not overly concerned about the contraction in the property market, but they said that it’s crucial to monitor the impact of the sub-prime crisis in the next three to six months. – CNA/vm

Source : Channel NewsAsia – 17 Mar 2008

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What goes up stays up, what goes down also stays up

Posted by luxuryasiahome on March 17, 2008

I REFER to the news report, ‘Mortgage war breaks out as DBS and UOB offer new rates’ (March 8). It said that a mortgage loan war has broken out partially due to competition and also lower Sibor and SOR (3 per cent to 1.5 per cent) since 2007. However, the banks are not being fair to their existing customers as mortgage loan rates are not lowered for their existing customers.

In 2006, the interest rate of my HDB mortgage loan with UOB was raised three times from 2.6 per cent to 4.1 per cent. Inevitably, the reason given for the increase was the increase in interbank market interest rates. As I noticed that the interbank market interest rate had fallen steadily since last year, I wrote to UOB to request a revision in my mortgage loan rate. However, I was told that the bank was monitoring the situation and that no revision would be made to my loan. Instead, I was offered a new package that required me to pay a conversion fee of $500 and have my loan locked with the bank for a longer period of time.

When interbank market interest rates go up, banks revise our mortgage loan rate upwards almost immediately. However, when interbank market interest rates go down, no revision is made at all. Is this fair?

Yeo Heng Ngi

Source : Straits Times – 17 Mar 2008

Posted in Finance, General | Tagged: , , , , , , , | 1 Comment »

What goes up stays up, what goes down also stays up

Posted by luxuryasiahome on March 17, 2008

I REFER to the news report, ‘Mortgage war breaks out as DBS and UOB offer new rates’ (March 8). It said that a mortgage loan war has broken out partially due to competition and also lower Sibor and SOR (3 per cent to 1.5 per cent) since 2007. However, the banks are not being fair to their existing customers as mortgage loan rates are not lowered for their existing customers.

In 2006, the interest rate of my HDB mortgage loan with UOB was raised three times from 2.6 per cent to 4.1 per cent. Inevitably, the reason given for the increase was the increase in interbank market interest rates. As I noticed that the interbank market interest rate had fallen steadily since last year, I wrote to UOB to request a revision in my mortgage loan rate. However, I was told that the bank was monitoring the situation and that no revision would be made to my loan. Instead, I was offered a new package that required me to pay a conversion fee of $500 and have my loan locked with the bank for a longer period of time.

When interbank market interest rates go up, banks revise our mortgage loan rate upwards almost immediately. However, when interbank market interest rates go down, no revision is made at all. Is this fair?

Yeo Heng Ngi

Source : Straits Times – 17 Mar 2008

Posted in Finance, General | Tagged: , , , , , , , | Leave a Comment »

The Hamilton: Upcoming condo equipped with garage in the sky

Posted by luxuryasiahome on March 17, 2008

PARKING the car is set to reach a whole new level – with a high-rise condominium where every apartment comes with its own private garage in the sky.

The Hamilton, coming up at 37 Scotts Road on the former site of Hotel Asia, will make this fantasy come true.

Residents of the 30-storey tower will be able to drive their vehicle into a special glass elevator that will lift the vehicle from the ground floor to their ‘porch’ on the same level as their living rooms.

The 56-unit development has not been launched yet. But when built, it will become the first residential high-rise in Singapore, and only the third in the world after developments in New York and Dubai, to have this vroom-with-a-view parking feature.

Ms Leny Suparman, director of developer Hayden Properties, said the feature offers ‘a unique way of living in a condominium yet with the advantages of a landed property’.

Motorists here have already become familiar with high-tech ’stack’ parking, though it is not quite the seamless elevator ride The Hamilton promises.

At the Chinatown nightlife hub Club Street, the first fully mechanised public carpark was launched last month.

And MacDonald House in Orchard Road has had an elevator take vehicles to its carpark on the second and third levels after its refurbishment in June 2005.

Owning a unit at The Hamilton, complete with its own private parking bay, will not come cheap.

Hayden Properties is unable to give any price indication for its units – averaging 3,000 sq ft in size.

But according to the Urban Redevelopment Authority’s website, apartments in the vicinity have been going for around $4,000 per sq ft.

At The Hamilton, that could work out to about $12 million a unit.

In land-scarce Singapore, mechanised parking systems may seem the way to go, taking up less space than conventional parking lots.

Source : Sunday Times – 16 Mar 2008

Posted in General, Luxury Property, New Launches | Tagged: , , , , , , , | Leave a Comment »

How the Dollar Affects Interest Rates and Home Loans

Posted by luxuryasiahome on March 17, 2008

The dollar has fallen to an all time low, around the world. The dollar has struggled against the Euro for some time now, but is now at a record low against this currency. In addition, the economic troubles the US is facing have dropped the value of the dollar against many currencies which it is traditionally stronger than. What does the falling value of the American dollar mean to those looking for loans and mortgages?

For one thing, the falling value of the dollar will drive up interest rates on many loans. This has already been seen on many home mortgages for consumers with less than stellar credit. Their loan payments have ballooned upwards as the housing market has fallen to almost rock bottom. Even the economic incentive plan President Bush is proposing this summer may be too little, too late. The economic damage has been done; now consumers must simply wait and see if a recession is in offing.

The market for loans is as weak as the value of the dollar, as a result. Unless you are a consumer with perfect credit or substantial cash reserves for a down payment, many lenders will not extend a line of credit. The impact of this has led to the federal government instituting new regulations on lenders, particularly those in the housing market.

These new regulations force lenders to base their decision on the actual income of the loan applicant, rather than their credit rating. In a sense, this is actually a good thing for both sides. Another benefit, though indirect and much maligned, is the fact that the looming economic crisis in America may force consumers to rethink their spending habits. Many American consumers treat credit as though it were hard currency, banking on future earnings, rather than saving anything for themselves.

The falling value of the dollar is further exacerbating the housing market crunch, by driving housing prices back up, despite a weak market. This means that there is a very small window in which consumers can invest in property below market value, before those values are increased by inflation.

Posted in Finance, General | Leave a Comment »

How the Dollar Affects Interest Rates and Home Loans

Posted by luxuryasiahome on March 17, 2008

The dollar has fallen to an all time low, around the world. The dollar has struggled against the Euro for some time now, but is now at a record low against this currency. In addition, the economic troubles the US is facing have dropped the value of the dollar against many currencies which it is traditionally stronger than. What does the falling value of the American dollar mean to those looking for loans and mortgages?

For one thing, the falling value of the dollar will drive up interest rates on many loans. This has already been seen on many home mortgages for consumers with less than stellar credit. Their loan payments have ballooned upwards as the housing market has fallen to almost rock bottom. Even the economic incentive plan President Bush is proposing this summer may be too little, too late. The economic damage has been done; now consumers must simply wait and see if a recession is in offing.

The market for loans is as weak as the value of the dollar, as a result. Unless you are a consumer with perfect credit or substantial cash reserves for a down payment, many lenders will not extend a line of credit. The impact of this has led to the federal government instituting new regulations on lenders, particularly those in the housing market.

These new regulations force lenders to base their decision on the actual income of the loan applicant, rather than their credit rating. In a sense, this is actually a good thing for both sides. Another benefit, though indirect and much maligned, is the fact that the looming economic crisis in America may force consumers to rethink their spending habits. Many American consumers treat credit as though it were hard currency, banking on future earnings, rather than saving anything for themselves.

The falling value of the dollar is further exacerbating the housing market crunch, by driving housing prices back up, despite a weak market. This means that there is a very small window in which consumers can invest in property below market value, before those values are increased by inflation.

Posted in Finance, General | Leave a Comment »

NUS link in Gillman Heights sale under query

Posted by luxuryasiahome on March 17, 2008

Fresh revelations about the relationship between the National University of Singapore (NUS) and purchaser Ankerite have surfaced, adding a new twist to the Gillman Heights condominium collective sale brouhaha.

Acting for a group of minority owners fighting to scupper the Strata Titles Board’s (STB) approval of the S$548-million sale of the property to developer CapitaLand, Senior Counsel Michael Hwang revealed in submissions to the High Court last Friday that condo majority owner NUS became a shareholder of Ankerite sometime around July 5 last year — about five months after the en bloc sale was inked.

This fact, which was not available to the STB before it approved the deal, meant the Board was unable to make a “fully-informed judgment”.

CapitaLand had reportedly announced on May 15 last year that HPL Orchard Place and “two private funds” had bought 50 per cent of its subsidiary Ankerite.

The court learnt on Friday that the NUS was one of the two unidentified private funds and had acquired a 15-per-cent stake in Ankerite. The NUS owns 303 units, or about half, of the property.

The 22 owners are also citing other grounds to oppose the sale of the sprawling 607-unit Alexandra Road estate. They revolve around how the former HUDC estate’s age was calculated, the way the sale process was conducted and how the sale price was arrived at.

One of the issues was whether Gillman Heights had acquired consent from 90 per cent of the owners for an en bloc sale if it were less than 10 years old.

Although it was completed in 1984, the condo only underwent privatisation in 1995 and acquired the Temporary Occupation Permits or Certificates of Strata Completion (CSC) in 2002. At the time, the NUS had agreed to the en bloc sale on June 22, 2002, the agreeing signatories made up 82.43 per cent only.

However, Senior Counsel Quek Mong Hwa, who is representing the majority owners, said en bloc sales of three privatised HUDC estates — Amberville, Waterfront View and Farrer Court — had been successfully completed before the Gillman Heights saga.

Two other similar estates, Minton Rise and Tampines Court, were also awaiting approval from the STB.

In his rebuttal, Mr Hwang said these estates did not have Temporary Occupation Permits or Certificates of Strata Completion issued by the Building and Construction Authority at the time the en bloc sales were completed.

On Sunday, some of the 22 minority owners told TODAY they were fighting to overturn the deal because they “love their homes”. The hearing continues tomorrow. – TODAY/ar

Source : Today – 17 Mar 2008

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Some HDB residents unhappy despite freeze on S&C charges

Posted by luxuryasiahome on March 17, 2008

They feel rates are too high compared with charges for condo residents

THE 14 town councils under the People’s Action Party are all freezing their service and conservancy (S&C) rates, but some HDB residents still feel the charges are too high.

Mr Richard Lim, 42, lives in a five-room flat in Pasir Ris, but pays more for parking and maintenance charges than some condominium residents.

The accountant pays $163.50 a month: $90 for parking and $73.50 in S&C fees.

What residents in private estates pay can go as low as $150, a check with 10 condominiums found.

Mr Lim said: ‘My friend who lives in a similar-size unit in a Bishan condo pays $200 and he gets so many more facilities.’

Writing to The Straits Times Forum recently, he asked why, despite fewer perks, HDB residents pay more than some condo residents: ‘Are they overcharging residents or are they not giving enough value for the amount we pay?’

His letter ignited discussions in at least three online forums, with many asking why S&C charges for HDB flats were only a little lower than those for private estates.

In Parliament last month, Dr Teo Ho Pin, coordinating chairman of the PAP town councils, announced there will be no hike in their S&C charges this year.

The move is in response to Finance Minister Tharman Shanmugaratnam’s call recently for them to follow the Government’s lead in freezing fees for its services.

S&C rates for Singaporeans living in public housing can range from $18.50 for a one-room HDB flat to $61.50 for a five-room unit. Non-Singaporeans pay up to $30 more.

S&C charges in HDB estates are collected by the town councils and go towards cleaning, grass cutting, lift maintenance and upkeep of common areas. Costs for cyclical work such as re-painting are also taken from this kitty.

A public housing resident who owns a car has to pay between $65 and $90 for a parking spot. This, according to HDB residents, is what causes the overall charge to rocket.

Parking charges are collected by the HDB which maintains the carparks.

In a Forum letter replying to Mr Lim, the HDB explained that, unlike private property, HDB parking spaces are not included in the selling price of the flat.

It said: ‘HDB parking charges are aimed at recovering the cost of providing and maintaining the carparks and help regulate demand so residents need not compete with visitors for lots.’

Mr Lim is now looking for a condo unit since the charges are not that much higher and he can enjoy condo facilities such as a swimming pool, clubhouse, playground, barbecue pit, gym, carpark and security for just a bit more.

Most condos charge a monthly fee of about $250, although some, like Ardmore Park near Orchard Road, can go as high as $1,250.

Those which charge below $200 include Normanton Park, Gillman Heights, Farrer Court and The Warren.

Condos usually collect money for a sinking fund, which is used for major repairs and improvements to the estate such as lift upgrading and re-painting.

Dr Teo, MP for Bukit Panjang, assured HDB residents that what they pay in S&C fees is ‘definitely value for money’.

‘We’ve many more covered linkways than condos and also amphitheatres and playgrounds,’ he said.

He added that the Government gives a grant every year to top up the S&C fund, making major projects like lift upgrading affordable.

Mr Charles Chong, an MP for Pasir Ris-Punggol GRC, said charges for condos are higher than for HDB units because condo residents pay more upfront when they buy their homes.

‘Besides, condos could also ask residents to fork out lump sums for major repairs when the sinking fund isn’t fat enough,’ he said.

Ms Eleana Teo, a director at Knight Frank Estate Management, said condos with more units can enjoy economies of scale and charge more affordable fees.

At Farrer Court, near Holland Road, which has 618 units, administration officer Mary Teo, 58, said the $160 a month she pays is ‘very low’.

‘We get our own jogging track, tennis courts and gym, and I’m paying less than some HDB residents,’ said the owner of a 1,500 sq ft unit.

Information technology specialist David Seah, 30, who lives in a five-room flat in Jurong West, agreed S&C and parking fees for bigger HDB units can add up to a hefty sum.

He pays $153 a month – $63 in S&C fees and $90 for parking.

‘The S&C charges for smaller flats are much lower and I think it’s fair,’ he said.

Mr Simon Chua, 34, owner of a four-room Bukit Batok HDB flat who pays $138 in monthly charges, has no complaints.

‘We never have to worry about having to fork out extra money for major upgrading work. I think we are well taken care of for the money we pay,’ he said.

TOO MUCH FOR HDB

‘My friend who lives in a similar- size unit in a Bishan condo pays $200 and he gets so many more facilities.’ -ACCOUNTANT RICHARD LIM, who lives in a five-room flat in Pasir Ris and pays $163.50 a month: $90 for parking and $73.50 for S&C fees

NO COMPLAINTS

‘We never have to worry about having to fork out extra money for major upgrading work. I think we are well taken care of for the money we pay.’ -MR SIMON CHUA, owner of a four-room Bukit Batok flat who pays $138 in monthly charges

LOW FEES FOR CONDO

‘We get our own jogging track, tennis courts and gym, and I’m paying less than some HDB residents.’ -ADMINISTRATION OFFICER MARY TEO, who lives in a 1,500 sq ft unit in Farrer Court near Holland Road. She pays $160 a month in charges.Source : Straits Times – 17 Mar 2008

Posted in General, HDB News | Tagged: , , | 1 Comment »

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