Lushhomemedia

Archive for August 11th, 2008

« Previous Entries

Property prices set for continued growth

Posted by luxuryasiahome on August 11, 2008

This year’s Hungry Ghost Festival, which is celebrated on the seventh month of the Chinese lunar calendar, comes at a time when the global economy is also slowing.

Traditionally, it means a quieter property market as investors and developers lie low during what they perceive to be an inauspicious occasion.

The Singapore property market is no exception, but experts said lower volumes may not be due to superstitions alone. According to market watchers, buyers in the market today tend to put bargains over and above bogeymen.

Eugene Lim, associate director, ERA Asia Pacific, said: “They tend to be less affected by their grandmother’s tales and all that kind of thing, and they basically make their decisions on what they see and the dollars and cents behind it. In that sense, they are more open to buying properties even during the Chinese seventh month.”

In fact, last year’s boom saw developers and buyers alike doing brisk business throughout the seventh month.

While no concrete data is available after just the first week of the seventh month, most market watchers expect volume to have slowed a little. But this does not mean prices will be heading south anytime soon.

Eric Cheng, executive director, HSR Group, said: “Developers out there will not price their prices even lower than the construction costs plus the land cost that they actually purchased.”

It would appear that the property industry as a whole has fewer reasons to be spooked.

Source : Channel NewsAsia – 11 Aug 2008

Posted in General, Market Reports | Tagged: , , , , | Leave a Comment »

Second state property in Changi offered for hotel use

Posted by luxuryasiahome on August 11, 2008

A SECOND state property, which is part of a former military camp in Hendon Road, in Changi, is put up for public tender on Monday for dedicated hotel use.

The site has a land area of 9,666 square metres, slightly larger than a football field with a gross floor area (GFA) of 5,097 square metres. It comprises two blocks of three-storey buildings and a covered shed.

The tenancy, with a guide rental of $28,500 a month, is for an initial term of three years. renewable up to 2018, said the Singapore Land Authority (SLA) on Monday.

SLA said the land is well suited for hotel use as the Changi area is being transformed into an exciting destination for locals and tourists alike with its wide ranging leisure, recreational and lifestyle attractions.

It is also conveniently located next to a park connector, a walking route along Netheravon Road from Cranwell Road to Changi Village, and the Changi Point boardwalk.

More buzz can also be expected with the introduction of motor sports near the Changi Beach Park, as announced by the Government.

The first state property that has been converted for hotel use is at No. 175A Chin Swee Road.

Today, it is a boutique business hotel called ‘Hotel Re!’ with 140 rooms. It officially opened for business in mid-May with an initial occupancy rate of around 50 per cent.

Since last year, SLA has awarded four state properties – in Lorong Bekukong, Turnhouse Road and the former Changi Hospital) – in the Changi area for adaptive commercial re-use after receiving strong response.

Two of them are now restaurants while the former Changi General Hospital at Halton Road is being transformed into a spa resort. The groundbreaking will take place next month and the development is expected to be ready by next year.

The Government, on its part, has upgraded the car parks at Changi Village and provided additional car park lots at Turnhouse Road.

Mr Teo Cher Hian, director of Land Operations (Private) Division, said: ‘SLA is offering a number of the vacant State properties for adaptive re-use such as hotels and lifestyle attractions in line with the government’s vision for Changi Point as an attractive and rustic seaview hotel, resort and recreational destination’.

‘This latest property will add greater buzz and vibrancy to the Changi area’.

According to the Singapore Tourism Board (STB), leading hoteliers have expressed keen interest in this property.

Ms Caroline Leong, Director, Travel Services & Hospitality Business, STB said: ‘The STB encourages the development of different types of accommodation to add to the hotel mix available here.

‘With its lush greenery and historical charm which the old military barracks lend, a hotel development on the former Changi Camp site will provide an ideal alternative to visitors who prefer staying amidst a rustic environment’.

According to STB, mid-tier and economy hotels enjoyed healthy average room occupancy rates of 85 per cent and 87 per cent respectively in the first six months.

Source : Straits Times – 11 Aug 2008

Posted in General, Hotel, Land Sales | Tagged: , , , | Leave a Comment »

Ho Bee net profit falls 70% in Q2

Posted by luxuryasiahome on August 11, 2008

Ho Bee Group said on Monday its net profit for the second quarter ended June 30, 2008 fell 70.4 per cent to $36.96 million compared to $125.1 million a year ago.

Revenue for the quarter of registered a 27 per cent decrease over the corresponding period last year, down from $160 million to $116.8 million.

Ho Bee said this was mainly attributed to the lower recognition of revenue from property development projects in the current quarter.

Ho Bee also said another contributing factor was the $71 million gain in fair value of investment properties recorded in the second quarter of last year. Excluding the $71 million fair value gain, it said the the drop in net profit would be 32 per cent.

Revenue from property investment continues to grow. For the first half of 2008, it registered revenue of $8.3 million, which exceeds the corresponding period last year by 79 per cent. This was attributed to the higher rental income from the office space at Samsung Hub and industrial buildings at HB Centre II and One Tannery Road.

Source : Business Times – 11 Aug 2008

Posted in Developer News, General | Tagged: , | Leave a Comment »

BBR’s Q2 net profit surges 356%

Posted by luxuryasiahome on August 11, 2008

Construction-related BBR Holdings (S) Ltd said on Monday that its net profit for the second quarter ended June 30, 2008 surged 355.7 per cent to $2.04 million on back of higher sales recognition.

Revenue for the quarter rose 2.63 per cent to $91.66 million.

Earnings per share stood at 0.23 cents compared to 0.08 cents as at 30 June 2007.

For the first six months of this year, net profit rose 226 per cent to $3.47 million.

Group revenue was up 25 per cent to S$132.9 million as a result of more recognition of income from projects of higher values in the period under review.

The group’s order book currently stands at $435 million spread across projects secured in Singapore, Malaysia and Sri Lanka.

With the healthy order book, the group expects toremain profitable for FY2008.

Source : Business Times – 11 Aug 2008

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

Orchard Parade net profit slumps 66%

Posted by luxuryasiahome on August 11, 2008

Orchard Parade Holding said on Monday that net profit fell 66.3 per cent to S$4.62 million for its fiscal second quarter.

Revenue was down 6.4 per cent to S$18 million for the three months ended 30 June 2008.

Source : Business Times – 11 Aug 2008

Posted in Developer News, General | Tagged: , | Leave a Comment »

Former Changi Military Camp offered for development as hotel

Posted by luxuryasiahome on August 11, 2008

The former Changi Military Camp at Hendon Road has been offered for development as a hotel. This is the second state property that has been put up for hotel use.

The first state property that has been converted for hotel use is No. 175A Chin Swee Road. It is now a boutique business hotel called Hotel Re!.

The former military camp has a land area of 9,666 square metres – slightly larger than a football field with a gross floor area of 5,097 square metres. It comprises two blocks of three-storey buildings and a covered shed.

The tenancy is for an initial term of three years and is renewable on terms up to 2018. The guide rental is S$28,500 per month.

Nicholas Mak, director of Consultancy & Research, Knight Frank, said: “I think the developer will have to think creatively. For example, the building is fairly historical. It’s of British military nature – they may want to play up this fact.

“I don’t think you can find many places in Singapore which are a bit out of the way but still accessible. It’s fairly near to the sea and it has a holiday resort, and a bit of a laid-back kampung kind of feeling. So, I think Changi is right for this sort of holiday getaway.”

Sharing the same view, the Singapore Land Authority (SLA) said the property is well-suited for hotel use as Changi is being transformed into an exciting destination for locals and tourists, with its wide-ranging leisure, recreational and lifestyle attractions.

Since 2007, the SLA has awarded four state properties in the Changi area, namely Lorong Bekukong, No. 23 A/B, No. 24 Turnhouse Road and the former Changi Hospital, for adaptive commercial reuse.

Two of the properties have been converted into restaurants, while another is being transformed into a spa resort.

Source : Channel NewsAsia – 11 Aug 2008

Posted in General, Hotel, Land Sales | Tagged: , , , | Leave a Comment »

Private home prices starting to dip

Posted by luxuryasiahome on August 11, 2008

IT IS a bit like the dog that didn’t bark in the night: Economic growth is slowing, shares are crashing and property sales have slowed, yet private home prices have refused to take the hint and fall.

Indeed, they have barely budged since the slowdown began about nine months ago, despite conventional wisdom saying they should be plunging.

But property experts see increasing signs that a price fall is coming, and while no one knows by how much, few believe a crash is on the cards.

Anyone waiting for bargain basement deals might be out of luck, with the local market trading at a higher range based on the country’s rosier long-term prospects.

Prices are being kept up partly by low mortgage rates and the ability of developers flush from last year’s bumper returns to hold off launching new flats.

A seasoned market watcher said the impression that Singapore was not dramatically hit by the United States’ sub-prime woes has helped keep prices stable.

However, new sales have slowed significantly, and prices are starting to reflect this. The Urban Redevelopment Authority showed that private home prices inched up just 0.17 per cent in the second quarter – the least in four years and well below the 3.8 per cent in the first quarter.

With price growth disappearing amid sluggish demand, a downtrend – with a bigger blip seen for the luxury sector – seems inevitable, said market watchers.

Private home prices are still beyond the reach of most owner-occupiers, said Chesterton International’s head of research and consultancy, Mr Colin Tan.

But any correction is likely to be gradual, with experts tipping a timeframe of a year or more. It will not be steep at this point as interest rates are low and the economic outlook is not that bad.

Mr Tan said home prices will take a long time to fall because the decline is being led by individual investors. They will be forced to sell when their rentals cannot meet mortgage payments, a situation that will become increasingly apparent as more units go on market.

These will mostly be the flats bought at the market’s peak around the middle of last year, said the market watcher.

Investors who bought low under the deferred payment scheme will be able to sell below developers’ asking prices and still make a profit. When they do, their deals will weigh on the market, he said.

‘The decline will not be led by developers as they have profited immensely from the price run-up in 2006 and 2007,’ added Mr Tan. ‘At the moment, they only have to sell enough units to keep revenue streams flowing.’

If the market remains weak in the next six months, prices could easily fall 20 per cent to 30 per cent on average over a period of time to levels seen in 2006, with the high-end sector bearing the brunt.

Still, the lows seen in the post-Asian financial crisis days or the Sars period are gone forever unless Singapore is hit by a major catastrophe, experts say.

‘We do not see a repeat of the prices in 1997 or 2003 because those were big shocks,’ said National University of Singapore associate professor, real estate, Mr Sin Tien Foo. ‘There is no bubble effect.’

Besides, prices hinge on quality. ‘Nowadays, people are looking for better designs and materials, which would increase developers’ costs,’ he said.

Jones Lang LaSalle’s head of research for South-east Asia, Dr Chua Yang Liang, said: ‘Theoretically, property values appreciate over time.’

While poor fundamentals can send prices below the replacement cost level, this is an unlikely scenario here as fundamentals have been good and look to remain stable, he said.

Singapore’s employment rate is still strong and income growth stable. As the director of Savills Residential, Mr Ku Swee Yong put it: ‘The sellers are not losing their jobs.’

Source : Straits Times – 11 Aug 2008

Posted in General, Market Reports | Tagged: , , , | Leave a Comment »

Hope for owners fighting en bloc

Posted by luxuryasiahome on August 11, 2008

A website with information on the laws and processes in collective sales is aimed at helping minority owners

THE name of the website – www.hope4stayers.com – says it all. It is a forum for, and set up by, people who are worried about losing their homes in a collective sale.

Its opening words are a call to arms.

‘We need to share our experiences to get us through this nightmare,’ it reads.

‘We hope that our daily lives can be free from the constant worries of losing our homes to those who see home as a mere financial tool for wealth.’

Cosmetics distributor Tan Keng Ann started the site when his neighbours wanted their condominium along Toh Tuck Road sold en bloc last year.

The 60-year-old said there had been a dearth of information online about collective sales.

‘We want this to be an educational site, for people to learn more about en bloc sales.’

And so the Hope website was born. (It is an acronym for Home Owners’ Protecting Entitlements.)

The site started in February with about five or six members from estates on the chopping block. Today, it has a core group of 25 flat owners scattered in 15 estates that are going through the sale process, some for the second time.

They include Bayshore Park, Green Lodge and Pine Grove, some of which made waves in the media by forming an anti-sales brigade.

The Hope group’s objective is to equip stayers, also called minority owners, with information about the en bloc process so they can fight to keep their homes.

The website is expansive. It includes a compilation of the collective sales law, legal tips for minority owners and a list of confirmed, on-going and failed en bloc deals.

One member, who declined to be named, joined after some new faces at her condominium tried to get elected to the management committee.

She said: ‘I didn’t know what these people were up to.’

She learnt soon after when a collective sales order was tabled.

For those who opposed the sale, information about the en bloc law was key, she said. They were facing an uphill battle against a majority of owners who had professional consultants to guide them through the legal minefield.

One minority owner in Rainbow Gardens along Toh Tuck Road wishes he had known earlier how to navigate the en bloc landscape.

The resident, who declined to be named, protested against the sale even though it had the requisite 80 per cent support to go through.

His appeal to the Strata Title Board, a government authority that rules on en bloc sales, was turned down. He took the case to the High Court but, the sale went through before it was heard.

Disappointed, the man said he is considering writing about his ordeal for the Hope website.

He said: ‘My advice to minority owners is pray hard you don’t get the 80 per cent.’

Meanwhile, the Hope group is cobbling together a list of proposals for the Law Ministry to consider.

A ministry spokesman said it will ‘continue to monitor the effect of the changes in practice, and review the feedback to see if further amendments to the en bloc rules are necessary’.

Not everyone is supportive of the Hope website, though.

Mr Issac Chin, an investor who sits on the sales committee of Pearl Bank Apartments at Outram Park, which is trying to go en bloc, does not see the need for such a group.

He said the law is clear: if 80 per cent of the owners want to sell, the sale will go through.

Source : Straits Times – 11 Aug 2008

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

En bloc tussles take nasty turn as market cools

Posted by luxuryasiahome on August 11, 2008

NAME calling: check. Anonymous letters: check. Scratched cars and damaged property: check.

Residents of an East Coast condominium are now entering the next phase of what has become an especially fractious en bloc sale: finger-pointing.

At a Laguna Park meeting last Saturday, residents against the collective sale squared off against those in favour. They each blamed the other for a recent spate of vandalism which saw cars doused with what was likely to be acid.

The situation is the latest example of en bloc battles that are bleeding the neighbourliness out of neighbourhoods. As the fever for collective sales cools and profits thin, some insiders say the battles are becoming nastier.

Property consultant CBRE says a total of 112 sites sold for $12.45 billion last year. So far this year, six sites have been sold for $360.03 million.

Residents in some estates have seen a surge in pressure tactics, from name-calling and flyers shoved into letter boxes to paint thinner poured on cars.

But just who is behind the crimes is a matter of much debate.

En bloc vandals work on the sly and have yet to be caught, but those in the property industry feel that investors are the ones playing dirty.

Property consultant David Chia said that the crimes are unlikely to have been committed by long-time owners, as they would not want to risk the embarrassment of being found out.

‘This narrows it down to investors who have nothing to lose,’ he said.

Many of these investors bought multiple flats at the height of the en bloc fever last year and are eager to sell them off in the face of a cooling property market.

But investors such as Mr Simon Teh, 50, disputed the accusations: ‘Why should we go and fight and vandalise cars? That doesn’t help us get 80 per cent approval for the sale and, worse still, we can get jailed.’

Mr Patrick Kumar, 53, who has been involved in three collective sales, agreed: ‘Violence will just harden a person’s sentiment not to sign.’

As an investor, he said, he was ‘more likely to placate the residents’. ‘Investors are there for the money, not for the violence,’ he explained.

Instead, he passed the buck to owners living in the condominiums, saying some might be anxious to catch the tail end of the en bloc wave and cash out.

Another bogeyman cited by unhappy home owners: agents appointed by the sales committee, who usually collect a fee of 0.2 per cent to 1.5 per cent of the property value.

Veteran ‘en blocker’ Mr Kumar said agents are the ones who ‘rile people up’ and keep track of who has signed the collective sale agreement and who has not.

But Mr Jeremy Lake, CBRE’s executive director of investment properties, maintained otherwise.

He said: ‘We will be proactive, but we also know that if we push too far, it would be counter-productive.

‘In fact, we do take appropriate steps to dissipate tension during meetings.’

Property consultants who deal with en bloc sales say the ugliest cases, like in Laguna Park, are rare.

More common, said Mr Karamjit Singh, the managing director of Credo Real Estate, are shouting matches during residents’ meetings.

Property firm Savills’ director of marketing and business development Ku Swee Yong said: ‘When it comes to en blocs, even educated people become idiots.’

Source : Straits Times – 11 Aug 2008

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

Property fee guidelines: Praise for Competition Commission

Posted by luxuryasiahome on August 11, 2008

I READ with gladness that at last the Competition Commission of Singapore has decided that the guidelines adopted by the Institute of Estate Agents are uncompetitive and must go (‘Property fee guidelines must go, ways watchdog’).

For too long, estate agents acting in Housing Board sale and purchase transactions have called the shots and demanded that sellers pay a 2 per cent commission and buyers a 1 per cent commission, even though the buyers do not appoint the agent in the purchase, nor do the buyers agree to pay them any commission.

There have been cases in the past where agents sued buyers for their commission because they thought they were ‘entitled’ to it, citing the guidelines and ‘market practice’ and because they have the upper hand and the means to start legal proceedings.

With the clear stand taken by the Competition Commission, I have no doubt that sellers and buyers will now be in a better position to weed out agents who are unprofessional, unscrupulous and arrogant, thinking they can bull doze their way through without conducting themselves properly.

To be fair, there are agents who are well trained, professional and act in the interests of their clients, be they sellers or buyers, and they would be more than willing to pay them the commission agreed in writing before they accept the agents’ services.

I hope all sellers and buyers will now be more aware of their rights when dealing with housing agents and not allow agents to control them in the area of their commission.

Tan Swee Hong (Mdm)

Source : Straits Times – 11 Aug 2008

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

« Previous Entries