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Archive for August 17th, 2008

Hue and cry over Tiong Bahru paint job

Posted by luxuryasiahome on August 17, 2008

Some residents find the proposed colour schemes for estate’s art deco flats too garish or cartoonish

Pink, purple and blue are colours that have made some people see red instead.

A proposed paint job for Tiong Bahru estate’s iconic art deco flats has upset some residents, some of whom feel the area will look too loud or cartoonish.

On Aug 8, the Tanjong Pagar Town Council had sent out survey forms to residents of the 57 pre-war and post-war apartment blocks. It sought their vote for an upcoming repainting job.

Among the options: brighter colours like pink, purple and blue in place of the current cream and beige shades of the past decade.

Residents have to send in their votes by tomorrow and the council expects work to begin next month.

Mr Andrew Loh of LG Architects & Associates was hired by the council to come up with several colour schemes. Members of the residents committee then narrowed these down to eight schemes: four for the pre-war and four for the post-war buildings.

All was well, until the survey forms were sent out.

One resident, advertising executive Eugene Yip, 37, who moved there four years ago, said the proposed colours will make the area look ‘very cartoonish and kiddy, like a Disneyland’.

‘It’s good to give the buildings fresh paint, but these colours won’t enhance the ambience of Tiong Bahru,’ he said. ‘I prefer softer colours.’

He and other residents have written to the town council asking for better options. Several spoke of the buildings’ legacy.

Accountant Edwin Leow, 38, who moved into the neighbourhood last year, said: ‘A place that evokes memories of the past doesn’t need such loud colours.’

Fellow resident Terence Yeung, 36, an installation artist, agreed. ‘The colours proposed show a poor understanding of conservation. We will lose the authenticity of this area’s charm and art deco architectural heritage.’

Built by the then Singapore Improvement Trust in the 1930s, the pre-war buildings formed the first public housing estate in Singapore.

The area, bounded by Seng Poh Road, Outram Road and Tiong Poh Road, was given conservation status in 2003.

An Urban Redevelopment Authority (URA) spokesman told The Sunday Times that owners of conserved buildings do not need to consult the URA when repainting is carried out as part of regular maintenance work.

‘The exceptions are certain landmarks and categories of buildings where a specific colour scheme is part of the conservation building’s architectural value.’

Examples include black and white bungalows and buildings of stone, brick tile and Shanghai Plaster finish, which are all required to keep their original appearance.

Said the spokesman: ‘URA has generally given the owners of conservation buildings greater flexibility in the choice of colour because it does not affect the building structure and is easily reversible. However, we do encourage owners to use colours that would enhance the architectural qualities of their heritage buildings.’

Over the past five years, these conserved Tiong Bahru flats have attracted growing numbers of young professionals, including many from the creative industries.

Property agent Alvin Yeo, 37, who lives in one of these flats, estimates that these buyers make up about 20 per cent of the thousand or so households in his neighbourhood.

He felt going ahead with the colour schemes will affect property prices there.

A 1,000 sq ft apartment here currently costs about $550,000 to $600,000, said Mr Yeo, who estimated that garishly coloured facades may dent these prices by around 10 per cent.

‘The kinds of people interested in living in these buildings in recent years resist HDB blocks because they find them boring and they want something different,’ he said.

‘The potential buyers from this niche group will probably just shift their interest to areas like Balestier or Joo Chiat, which still retain their character.’

But not all residents objected to the proposed colours.

Housewife Patricia Yong, 36, who has been living in the estate for 10 years, liked the pale purple option. ‘It’s more feminine, and it’s good to give the place a bit more colour.’

Retiree Michael Tan, 57, who has been living there since 1951, also liked the suggested colours. ‘It will make the place look brighter.’

Mr Loy Sai Sai, 56, the senior property manager for Tanjong Pagar Town Council, has been in charge of this estate since 1991.

He said that Mr Loh was briefed on the architectural significance of the estate.

‘Colours are very subjective. We just wanted to let the residents have a chance to participate in this process of giving the whole estate a better living environment.

‘We are open to suggestions. We will look at the feedback, and if a majority of residents are not in favour of the proposed colours, we will make changes.’

Source : Sunday Times – 17 Aug 2008

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Still ‘one safe haven’ for investors – Reits

Posted by luxuryasiahome on August 17, 2008

Home prices are peaking, sales are sliding, and property counters are among the stock market’s worst performers.

What’s a property investor to do?

Fortunately, there is still one safe haven, according to a recent report by Credit Suisse. It tips real estate investment trusts, or Reits, as a good bet for investors.

Reits turned in ‘decent results’ in the second quarter and should see better earnings in the near term, the bank said in its report.

Reits are listed funds that buy properties and collect rental income, which they distribute to unit holders like dividends.

Credit Suisse said three Reits, in particular, surprised with better-than-expected results: Mapletree Logistics Trust, Suntec Reit and CDL Hospitality Reit. But another three – Frasers Centrepoint Trust (FCT), Lippo-Mapletree Indonesia Retail Trust, and CapitaRetail China Trust – were disappointments, it reported.

The bank noted that quarter-on-quarter, office trusts delivered the strongest growth in terms of earnings, while hospitality Reits turned in the weakest performances.

On a year-on-year basis, retail Reits grew the most in terms of earnings and industrial ones the least.

Overall, CapitaCommercial Trust was the only Reit expected to grow by more than 20 per cent in terms of distribution per unit for both the current and next financial year, predicted Credit Suisse.

It also said it preferred large defensive Reits in the suburban retail and industrial sectors, particularly CapitaMall Trust and Ascendas Reit.

Another bank, Citigroup, also issued some positive calls on Reits last month.

It upgraded Suntec Reit to a ‘buy’, forecasting high yields of over 7.5 per cent. The trust’s results had come in above market expectations, boosted by strong rental renewals for its office and retail space.

Credit Suisse’s report marked a turnaround of sorts for the Singapore Reit sector, which was overcast with clouds as recently as three months ago.

Ratings agency Moody’s Investors Service issued in May a negative rating outlook for Singapore Reits, citing negative sentiment and short-term refinancing risks due to tighter liquidity. Some analysts followed up by downgrading or cutting their target prices for Reits on the back of rising interest rates.

Most Reits, however, have since managed to secure refinancing for their debt despite the global credit crunch. They are also now better bets than developers for their ‘recurrent income and more predictable cash flows’, Credit Suisse said.

Its report concluded that the debt profile of Singapore Reits had improved and earnings were expected to be resilient in the near term.

The bank warned, though, that risks of credit availability and high borrowing costs still exist, as do concerns over asset devaluation.

For now, though, asset values are still expanding and interest rates are expected to remain low, it added.

Source : Sunday Times – 17 Aug 2008

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Havens away from home

Posted by luxuryasiahome on August 17, 2008

A Singaporean walking around the Tanjong Rhu area could be forgiven for thinking he is in a foreign country.

Minimarts at condos don’t sell just regular rice, they also stock the basmati variety.

Vegetables that most Singaporeans have never heard of, such as Indian Palak (spinach in English) and Mehti (a herb which resembles a bay leaf) are in good supply too, as are lentils and a staggering variety of spices.

At condos like The Sovereign, The Makena and Costa Rhu, about four in 10 residents are Indian nationals, exceeding the number of Singaporeans.

Small wonder, then, that the area is known as ‘Little Bombay’.

For Indian nationals in the area, it might as well be their home country.

As Ms Radha Suvarna, 36, a Citibank executive, puts it: ‘I can live here as I would in Bombay.’

The Tanjong Rhu and Meyer Road areas are among many in Singapore that are undergoing a vast transformation.

It used to be that there were just three ethnic enclaves in Singapore: Chinatown, Little India and Kampong Glam.

Now, Little America, Little Australia, Little Japan and a host of others have been added to the list.

As more and more expatriates head here – the number of foreigners here passed the one million mark for the first time last year – they are transforming not just Singapore’s economy but its community as well.

As is the case in other countries, the various nationalities setting up home here tend to set up enclaves where their countrymen gather.

In Singapore, education seems to be the determining factor for where they settle.

Property agents told The Sunday Times that clusters tend to come up around international schools.

The Americans, for example, have flocked to Woodlands because it is close to the Singapore American School.

The Japanese tend to live in condos in the West Coast, close to the Singapore Japanese School.

And the Serangoon area is popular with the Australians and the French, with the French and Australian schools nearby.

One in five households at the 310-unit Kensington Park Condominium – a 10-minute walk from Serangoon Gardens – is French, for example.

Once a critical mass of expats is settled in a particular area, food outlets soon follow.

With more and more Koreans flocking to the East Coast, for example, stores selling everything from kimchi to bulgogi have sprung up – there are at least three Korean restaurants in the area near Katong Mall.

For Koreans who prefer to cook their own food, the Seoul Mart, which opened in Parkway Parade last year, stocks provisions such as kimchi, Korean seaweed and Korean instant noodles.

The search for a taste of home has also led to the transformation of neighbourhoods.

Geylang, for example, has perhaps the greatest concentration of Chinese food outlets here.

Mr Du Zhi Qiang, president of the Tian Fu Club, a social networking club for new Chinese immigrants to Singapore, says there are now about 200 food outlets opened by Chinese nationals in the area.

The club’s 2,000 members, all professionals, and scores of other Chinese nationals flock to the area for homegrown treats like jiaozi (dumplings) and hot and sour soup.

It is a boon for folk like businessman An Qian Xue, 42, who came to Singapore in 2003 from his native Shanxi in China to enrol his daughter in the Singapore American School and to explore business opportunities.

Now a permanent resident, Mr An remembers the time when he had to fill his suitcases with food whenever he returned from China.

‘Now I can travel light because everything is here,’ says the businessman, who eats in Geylang at least six times a week.

Indeed, Singaporeans who spoke to The Sunday Times said that, next to their contributions to the economy, the best thing about expats is the authentic food which follows them here.

Authentic pasta, Spanish ham, traditional Korean rice cakes, Chinese jiaozi – they are all out there.

Foreigners are not just setting up physical enclaves, however.

Some nationalities are also dominating certain professions, and marking out gathering places as their own.

Walk into a hospital, for example, and you will more than likely encounter a Filipino nurse.

At Parkway Health, which owns the Mount Elizabeth, Gleneagles and East Shore hospitals, 40per cent of the nurses come from countries such as the Philippines, China, Myanmar, India and Malaysia.

And 60per cent of the radiographers are from the Philippines.

Indian and Chinese nationals, meanwhile, are heading for the IT and finance sectors.

At Citibank Singapore, for example, Indian nationals make up 10per cent of the 9,000 employees, even more than Malaysians, who make up 7per cent. Singaporeans make up 70per cent.

In leisure, too, foreigners are making a beeline for certain areas.

Clarke Quay, for example, is the party destination of choice for Indian nationals. Outlets like the Rupee Room offer Indian food at the bar and play the latest Bollywood hits.

It draws huge crowds at the weekend. Almost 80per cent of its customers are Indian professionals, says marketing manager Ketki Madane.

Mr Harish Mallipeddi, 22, who works for an IT start-up, circos.com, is quick to pick the Rupee Room as his favourite haunt.

‘We can meet Indian girls there,’ he says candidly.

The Myanmarese, meanwhile, make Peninsula Plaza their own at the weekend.

Hundreds gather there to stock up on goods for home, read newspapers, and even organise political protests, as happened during the crackdown on Buddhist monks in Myanmar last year.

There is also a library run by a group of about 30 Myanmarese for their fellow citizens, which stocks newspapers and weekly journals from home, and books banned in their own country.

As foreigners set up their own neighbourhoods and go about carving out a space in Singapore, however, a downside to the sheer numbers moving here is beginning to reveal itself.

Sociologists say most relate to xenophobic fears among Singaporeans – that foreigners will take away jobs and scholarships and drive up property prices, for instance.

Others point to increasing friction as Singaporeans and foreigners live and work more closely, and fight a losing battle to paper over differences in social habits and lifestyle.

Much has been made of the differences between Indian Singaporeans and Indian expatriates, and Dr Leong Chan Hoong, head of the psychology programme at SIM University, sees the same thing happening between Chinese nationals and their local cousins.

Of the flow of expats, Dr Leong says: ‘It is unrealistic to think that we can, in a few years or so, ameliorate the tension and antagonism experienced by Singaporeans.’

Asked how Singapore will evolve, he says that it depends on how well foreigners integrate with locals in the Lion City.

Expats, however, do not see a problem.

Mr An, the China native turned Singapore PR, says: ‘I have come to love Singapore. The workers are good and don’t make trouble for you, the tax rate is lower and people are helpful.

‘Now when I go back to China, I feel out of place sometimes.’

Source : Sunday Times – 17 Aug 2008

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US housing market woes

Posted by luxuryasiahome on August 17, 2008

AS the US economy appears more than ever linked to the health of the housing market, analysts see no end to falling prices or recovery in the sector before 2009.

After several years of a sizzling boom, housing prices in the United States have fallen for the past year and a half, according to the closely watched S&P/Case-Shiller index. In May, prices fell a record 16 per cent from a year ago.

But for the majority of analysts, the price decline still is not enough to put the sector on the road to recovery.

‘Home prices in the US are likely to start to stabilize or touch bottom sometime in the first half of 2009,’ former Federal Reserve chairman Alan Greenspan said on Thursday.

But ‘prices could continue to drift lower through 2009 and beyond,’ he added.

Treasury Secretary Henry Paulson regularly repeats that the real-estate sector presently is the biggest danger for the US economy.

Mr Paulson in late July warned that foreclosures and the number of existing homes for sale ‘are likely to remain substantially elevated this year and next and home prices are likely to decline further on a national basis.’ Several factors are at work.

Housing prices, although lower, are still far from reaching pre-boom levels, according to a recent survey by TD Bank Financial Group.

Today’s home prices are roughly at mid-2004 levels, while the S&P/Case-Shiller index shows they are still nominally 34 per cent higher than 2002 prices.

‘The correction isn’t over,’ the TD Bank analysts said, adding that prices have further to fall, particularly in ‘cities such as Los Angeles, Las Vegas, and Miami which saw the largest price gains.’

The inventory of unsold homes on the market is so high – 11 months’ supply for existing homes, 10 for new homes – that sellers will have to lower their expectations before the market can return to normal, which analysts generally see as a five-month supply.

‘The rising share of foreclosed homes in overall sales bodes negatively for home prices,’ said Ethan Harris, chief US economist at Lehman Brothers, who sees prices falling between 25 and 30 per cent in the correction phase of a cycle he sees ending in late 2009.

In fact, the owners of foreclosed homes are often banks, which today hold a sixth of the homes on the market, according to RealtyTrac, a real-estate industry data firm.

The banks have not been shy about disposing of these distressed assets. The Wall Street Journal this week reported on a house in Corona, California, that was sold for US$198,000 9S$182,000) by a subsidiary of Credit Suisse and which was bought for US$450,000 in December 2006.

Another factor weighing on housing prices is the growing difficulty in obtaining a bank loan, and not just for high-risk borrowers.

In the second quarter, 75 per cent of US banks tightened their lending conditions on standard mortgages, home loans to borrowers with good credit histories, the Federal Reserve reported recently.

And the fragile economy’s woes – rising unemployment, inflation-eroded purchasing power and financial turmoil – hardly inspire optimism.

‘The light at the end of the tunnel is a faint and distant one. Further, the risks to this outlook weigh heavily on the downside, with the main risk being the potential for financial markets to unravel further,’ said Ms Celia Chen, director of housing economics at Moody’s Economy.com.

‘It will be well into 2009 before the market works off all the excesses accumulated during the housing boom,’ she said. — AFP

Source : Sunday Times – 17 Aug 2008

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