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Archive for August 23rd, 2008

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Nathan Residences

Posted by luxuryasiahome on August 23, 2008

Location: 23/25 Nathan Road (District 9)
Tenure: Freehold
Site Area: approx 2165.8 sqm / 23,313 sqft
Expected Completion: Dec 2015 (contract) early 2012 (expected)
Total Units: 91 in 2 blocks of 12 storeys

Unit Types:
1 bedroom ~ 55 – 80 sqm (42 units)
1 bedroom + roof terrace ~ 94 sqm (4 units)
2 bedroom ~ 73– 188 sqm (41 units)
2 bedroom + roof terrace ~ 114 – 115 sqm (4 units)

Where the sky & landscape meets

This freehold development consists of two towers of 91 units apartment, comprising of luxurious 1 & 2 bedroom type. All apartments come with a spacious balcony.

Close proximity to the upcoming Business Financial District, Marina Integrated Resort and the vivacious Orchard Turn & Orchard Central is a heaven for city dwellers.

Located in a private estate near to good class bungalows, this hip development will appeal to the young, successful and mobile. Nathan Residences – the home you want to own.

Contact us at info@lushhomemedia.com or +65 9631 8037 with the following for more information:

Nathan Res / Name / Contact # / Unit Type Interested

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Regional countries look at PPPs for infrastructure development

Posted by luxuryasiahome on August 23, 2008

Governments in Asia are starting to explore the potential of working with private firms when developing domestic infrastructure.

Such public-private partnerships, or PPPs, have been a mainstay in countries like Britain and the United States in the past decade. And it is starting to catch on in the region as governments look to cut costs on large scale projects like building roads and airports.

Industry players are calling it the new frontier for Asian infrastructure.

Singapore’s future sports hub in Kallang is already getting people excited and these are not just sports fans. Governments in neighbouring Thailand and Malaysia are looking at the public-private partnership deal to see how they too can get in on the action.

Lynn Tho, HSBC Singapore’s director for project and export finance, said: “Singapore has really embraced the PPP initiative in delivering better value in infrastructure services sector. Other countries are looking at PPP and how to implement it, and Singapore has a great reputation in terms of developing new initiatives and following them through.

“So as the different governments look at how we do PPP as an Asian country they can relate better to the Singapore PPP framework rather than US or UK because the issues are more similar.”

PPP is still in its infancy in Asia although countries are studying ways to put contractual frameworks in place. In 2005, the total dollar value of PPP deals came up to some US$40 billion.

William Streeter, MD, head of global infrastructure & project, finance, Fitch Ratings Singapore, said: “I think it’s going to expand very quickly. I think the next country to jump (in) is China. There’s been a lot of progress in terms of contractual law development there and certainly a lot of interest in large projects.”

Experts said governments are starting to see the limitations of pure public sector financing. They are studying how to use private sector skills and financing to relieve the burden of infrastructure development.

HSBC estimates that global demand for infrastructure development today is around US$2 to US$3 trillion. And a significant portion could go the PPP way.

Ms Tho said: “As the Asia infrastructure demand grows and there’s a huge burden on governments, different governments are looking at how best to utilise private sector skills and financing to relieve the burden of developing infrastructure.”

HSBC said the growth of such projects will not happen overnight.

Ms Tho continued: “Putting together a PPP framework is more complex (than) you can imagine because of the sheer size and issues to consider. This will take a few years to put in place.”

Such projects allow companies to gain a foothold into new markets in emerging Asia with a reliable partner. Already, some international firms have come to the region just to bid on PPP projects.

“Infrastructure asset class is something that’s picked up over the last few years and from the experience over in the West, you find that construction companies see this as a new way to get into the market,” said Ms Tho.

Over in Singapore, a pipeline of such projects are likely to come from the education sector in the next few years. – CNA/vm

Source : Channel NewsAsia – 23 Aug 2008

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Housing: S’poreans first, reiterates HDB

Posted by luxuryasiahome on August 23, 2008

I REFER to the letters, ‘Citizens may suffer as PRs buy up HDB Flats’ by Mr Chua Teck Kee (July 15) and ‘Home and Singapore from a PR’s viewpoint’ by Mr Amit Nagpal (July 25).

We wish to reiterate the principles underlying our public housing policy.

First, public housing in Singapore caters primarily to the housing needs of Singapore citizens and their families.

Second, the Government is committed to keeping public housing affordable, particularly for first-timers and the lower-income households.

Third, it does this by subsidising public housing, either directly by way of a grant to buy resale HDB flats or indirectly by pricing new HDB flats below their equivalent market values.

We recognise and value the contributions of Singapore Permanent Residents (SPRs). However, some benefits such as subsidised public housing are for Singapore citizens only. This differentiation between citizens and SPRs is necessary to safeguard the privileges of citizenship. Nonetheless, SPRs enjoy certain privileges such as being able to buy resale HDB flats in the open market, an option not available to foreigners.

Mr Chua was concerned that SPRs may be driving up prices of resale HDB flats, and suggested a separate quota for SPRs.

Prices of resale HDB flats are influenced by various factors, such as the supply and demand, pace of economic growth, and market sentiments.

In the last 18 months, prices of resale flats have risen in tandem with economic growth, reduced unemployment rate, and improved market sentiments. To meet the growing demand, HDB has stepped up its building plan from 2,400 units in 2006 to 6,000 units in 2007, and 8,400 units in 2008.

The increase in the supply of new HDB flats would cater to the higher demand for public housing from citizens, particularly the first-timer households. There is no need for a separate quota for SPRs buying resale flats.

Mr Chua also asked how the increased numbers of SPRs would affect the Ethnic Integration Policy (EIP).

The EIP is an important national policy promoting racial harmony by ensuring a balanced ethnic mix in Singapore’s public housing estates. It provides HDB residents of different races with opportunities to interact as neighbours, which is important especially for new immigrants amongst us.

The EIP is applied consistently to both citizens and SPRs. We regularly review the EIP policy to ensure it achieves its intended objective.

Ignatius Lourdesamy Ag
Deputy Director (Marketing & Projects)
Director (Estate Administration & Property)
Housing & Development Board

Source : Straits Times – 23 Aug 2008

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Standards of housing agents: How will two-tiered scheme help?

Posted by luxuryasiahome on August 23, 2008

I REFER to yesterday’s letters ‘Test ensures housing agents are more qualified’ by Mr David Ong, president of the Association of Singapore Estate Agencies, and ‘Two-tier test system raises standards of estate agency industry’ by Mr Wilson Lim, executive director of the Singapore Accredited Estate Agencies (SAEA).

Both were responses to Mr Steven Lau’s ‘HDB resale net services open to abuse’, published last Saturday.

I would like to ask how the two-tiered accreditation scheme is expected to raise the service standards of property agents.

Firstly, the new Common Examination for Salespersons (CES) introduced by the SAEA actually covers less than the existing Common Examination for Housing Agents.

Secondly, the passing mark for this multiple-choice test is a mere 50 per cent.

And thirdly, candidates only need two GCE O level passes to sit for the CES.

PropNex understands the need to establish high service standards in this industry.

That is why one of our recent developments was a PropNex proficiency test, mandatory for all our new agents, as well as long-time agents who are no longer active.

It covers the Code of Conduct and Ethics and tests applicants on HDB or private property market policies, programmes and procedures, depending on their area of specialisation.

While it is also a multiple-choice test, we require our agents to attain at least 75 per cent for certification.

We believe in setting such stringent requirements for practising property agents, as they are going to be professionals who will facilitate possibly the largest financial transactions their customers will undertake.

Another question I would like to raise is, who were the ‘industry and agency bosses’ that SAEA consulted, with regards to the feedback they obtained in the implementation of CES?

PropNex was not consulted, and we would have been happy to offer our insights as an industry leader, on how to develop a more professional industry.

The public deserves excellent service, and this can only be possible by setting even higher standards.

Adam Tan
Corporate Communications & Marketing Manager
PropNex Realty

Source : Straits Times – 23 Aug 2008

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Retailers hit by soaring rentals

Posted by luxuryasiahome on August 23, 2008

FOR a retailer, it is a nightmare scenario – getting stuck in a shop with expensive rent that attracts no shoppers.

Yet retail rental levels, especially in prime areas, are still skyrocketing despite the slower economy.

That has left industry players wondering if retailers who committed to lease shop spaces at very pricey levels have over-extended themselves.

‘The top retail rents of about $80 per sq ft (psf), which were announced recently by Ion Orchard, are a cause for concern,’ said Mr Colin Tan, head of research and consultancy at Chesterton International. ‘How do you ensure a reasonable profit?’

Said Mr Nash Benjamin, chief executive of fashion retailer FJ Benjamin: ‘Very, very few people can pay that rate. It’s a top-end rate which everyone’s making big noise about, but it’s neither a realistic nor sustainable rate.’

‘A lot of retailers are struggling,’ noted Ms Lau Chuen Wei, executive director of the Singapore Retailers’ Association.

She said: ‘(It’s getting) more difficult for retailers to maintain top line sales. And what’s hitting them quite hard is sustaining the bottom line.’

According to Jones Lang Lasalle, average retail rents are about 27 per cent higher than they were 10 years ago.

They stood at an average of $41.25 psf a month in the first quarter of this year, compared to about $32.50 psf a month in the first quarter of 1998.

They have risen about 57 per cent since the rock-bottom days of the Asian financial crisis, when they hit $26.25 psf in the first quarter of 1999.

CB Richard Ellis said ’super-prime space along Orchard Road saw the highest quarterly increase of 5.3 per cent, hitting an average of $54.40 psf a month’.

‘If the shop size is very small and the shop is situated in a very busy place, the rentals can be as high as $60 psf or more. (But) the majority will be between $10 and $50 psf,’ said Mr Nicholas Mak, Knight Frank’s director of research and consultancy.

Retailers interviewed by The Straits Times all sigh with despair at the rising rentals, which property consultants say show no sign of abating yet.

‘Quite a good number of retailers are getting worried about whether they can sustain present sales volumes in the current economic slowdown,’ said Mr Danny Yeo, Knight Frank’s director of retail.

‘But have they been complaining that sales have dropped by a very substantial amount? I don’t think so.’

Other industry experts agree, saying that demand for prime retail spaces remains high.

Rising demand is reflected in the rising occupancy rate, said Mr Mak, who added that the average occupancy rate for retail space in Orchard Road rose from 95.4 per cent in the middle of last year to 96.7 per cent in the middle of this year.

Knight Frank said in a recent research brief that the projected supply of five million sq ft of retail space expected to be completed next year will ’serve to relieve the supply crunch seen over the past couple of years’.

It added that ‘retailers can look forward to higher retail sales psf’ as the nominal retail sales figure is expected to rise from $650.60 psf last year to almost $700 psf in 2010.

And it seems the so-called retail hot spots have remained roughly the same through the years.

Property consultants are unanimous that Orchard Road remains Singapore’s primary and premier shopping belt, mainly because of its central location and the large density of malls on the strip.

Said Chesterton’s Mr Tan: ‘Orchard Road has been Singapore’s only major shopping belt. Other shopping areas just cannot match up to Orchard Road in terms of size, quality and variety.’

‘If we classify retail hot spots according to the level of shopper traffic, the malls nearer to Orchard MRT Station would still be considered the hottest,’ said Ms Daisy Loo, head of leasing and consulting at Sandalwood Retail.

By these experts’ definition, malls such as the upcoming Ion Orchard and Orchard Central would certainly make it to the ‘Singapore’s hottest retail spaces’ list and continue commanding premium rental rates from retailers.

So would the Orchard Road-facing double-storey stores in existing malls Ngee Ann City, Wisma Atria, Paragon and Mandarin Gallery.

‘At the end of the day, it’s who wants who more,’ said Ms Lau.

‘We’ve heard of times when the mall can bend backwards to accommodate what the tenant wants.’

Said Mr Yeo: ‘I think, going forward, retailers contracting for renewal will just be more careful about committing to a $60 or $80 psf kind of rent.’

Mr Benjamin said: ‘I always tell our landlords to please remember one thing – You own the property but we are your customers. If we can’t afford to rent your premises, you have a problem. So be nice to your customers.’

Singapore’s hottest retail spots

1: Ion Orchard

Location: Being built at the corner of Orchard Road and Orchard Turn

Top rental range: $60 to $80 per sq foot (psf) per month

Star tenants: Six double-storey stores totalling 50,000 sq ft, including luxury fashion brands Prada, Louis Vuitton and Cartier

2: Wisma Atria

Location: On Orchard Road between Ion and Ngee Ann City

Top rental range: $55 to $70 psf

Star tenants: Double-storey Nike concept store, totalling 8,000 sq ft, which has taken over the former Topshop space.

3: Mandarin Gallery

Location: At the corner of Orchard and Bideford Roads

Top rental range: $50 to $60 psf

Star tenants: Double-storey stores, ranging from 2,700 sq ft to 6,800 sq ft, for Emporio Armani, Marc by Marc Jacobs and D&G.

4: Ngee Ann City

Location: At the corner of Orchard and Bideford Roads

Top rental range: $40 to $60 psf

Star tenants: Luxury giants Chanel and Louis Vuitton on the first floor. They are due to expand into double-storey spaces, or duplexes, over the next two years – Chanel into a 7,000 sq ft store and Louis Vuitton into a 10,500 sq ft one.

5: Paragon

Location: At the corner of Orchard and Bideford Roads

Top rental range: $40 to $60 psf

Star tenants: Four duplexes facing Orchard Road, ranging in size from 3,600 sq ft to more than 10,000 sq ft, to be occupied by luxe labels Gucci, Salvatore Ferragamo, Prada and Tod’s.

Note: Rental figures provided by Mr Danny Yeo, director of retail at Knight Frank

Source : Straits Times – 23 Aug 2008

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Hoi Hup-Led Group Wins HDB Project

Posted by luxuryasiahome on August 23, 2008

It will build 1,200 DBSS flats at Lor1A Toa Payoh

THE Housing and Development Board yesterday awarded a Design, Build and Sell Scheme (DBSS) site at Lorong 1A Toa Payoh to a Hoi Hup Realty-led consortium that emerged as the top bidder when the tender for the site closed on Tuesday.

The winning bid of about $198.82 million works out to about $160 per sq ft per plot ratio – the highest of three bids for the 103-year leasehold plot.

The consortium also includes Sunway Developments and Hoi Hup JV Development, whose shareholders include Straits Construction and Hoi Hup Realty.

A Hoi Hup spokeswoman said yesterday the group plans to build about 1,200 HDB flats on the site, of which about a third will be three and four-room flats and the rest five-room flats. ‘We’re looking at launching the project in early second-quarter 2009,’ she said.

The average selling price is expected to be around $500 psf and will depend on whether Hoi Hup succeeds in securing exemption of bay windows and planter boxes from gross floor area calculations.

This will hinge on whether Hoi Hup can submit its formal application for the project to the Urban Redevelopment Authority in time to secure provisional permission before Oct 7.

After that date, bay windows and planter boxes will no longer be exempt from GFA calculations.

‘We’re looking at building a total of five blocks, of which two will be 46 storeys high and with a sky terrace on one of the upper levels (above the 20th floor). The remaining blocks will be 40 storeys high,’ the spokeswoman said.

‘We have to complete the entire project within four years.’

A Hoi Hup-Sunway consortium is also developing another DBSS flat project, called City View @ Boon Keng. This was launched earlier this year at an average price of $520 psf.

More than 80 per cent of the 714 units have been sold so far.

Source : Business Times – 23 Aug 2008

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GuocoLand’s gains fall 43% on lower property sales

Posted by luxuryasiahome on August 23, 2008

COOLING regional property markets have taken a hefty chunk out of GuocoLand’s bottom line.

The property developer’s full-year net profits plunged 43 per cent to $161.8 million on the back of a 4 per cent dip in revenue to $670.9 million.

Besides lower contribution from property sales, GuocoLand enjoyed significant one-off contributions for the 2007 financial year. These included a $19.3 million contribution from the sale of a long-term investment, $16.9 million from the sale of a hotel in Hanoi, and $10.3 million from an equity swap.

Its finance costs had also risen by 22 per cent to $39.4 million, due to higher interest rates and higher bank
borrowings.

Earnings per share was 20.17 cents, down from 46.15 cents last year, while net asset value rose from $2.30 last June to $2.41 this year.

Despite the poorer showing in the 12 months ended June 30 this year, GuocoLand is paying out a dividend of eight cents per share, the same as last year.

It warned that this financial year is likely to be challenging due to slowing economic growth in Singapore and in the region.

This is already showing up in more ‘cautious sentiment in the property market…evidenced by a slowdown and delay in property launches and a lower take-up rate’ in Singapore, it said.

GuocoLand is hopeful that the upcoming integrated resorts will boost economic growth and, accordingly, its own fortunes. It added that the medium-term demand for residential property should remain stable.

Its other markets are also under pressure. China, despite higher growth compared with Singapore, is also facing a cooling property market due to ‘credit squeeze, slower sales and lower prices’. While it will continue to grow in the long term, medium-term demand will only be ’stable’ in the light of these problems.

And while Vietnam’s long-term prospects ‘remain bright’, it is currently beset by high inflation, which has prompted the government to tighten credit and reduce loans.

One bright spark is Malaysia. GuocoLand said government policies to make home ownership more attractive meant ‘property sentiment will remain positive in the medium term’.

Source : Straits Times – 23 Aug 2008

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GuocoLand FY08 net falls 43% to $162m

Posted by luxuryasiahome on August 23, 2008

PROPERTY developer GuocoLand’s earnings for the full year ended June 30 fell 43 per cent as it saw lower sales from its property development projects in Singapore and a one-third fall in other income.

Net profit attributable to equity-holders fell to $161.84 million from FY2007’s $281.89 million. Earnings per share dropped to 20.17 cents from 46.15 cents.

Revenue for the 12 months dipped 4 per cent to $670.9 million, from $702.5 million a year ago. Gross profit fell 12 per cent to $135.3 million.

The bottom line was also hit by a $63.9 million or 33 per cent fall in other income to $130.8 million. This came as interest income and net foreign exchange gains were more than wiped out by lower revaluation gain from investment properties and lower investment property provision writeback.

The group was also hit by higher income tax, mainly from its property development projects in China.

Finance costs also rose 22 per cent to $39.4 million due to higher bank borrowings and interest rates.

GuocoLand – which has operations in Singapore, China, Malaysia and Vietnam – did not provide separate numbers for its fourth quarter.

The group acknowledged that the property markets in the countries where it operates are slowing down as developers and buyers adopt a more cautious stance. But in the medium term, it expects these countries’ economies to remain resilient and grow.

‘Coupled with the implementation of regulatory measures and macro-economic policies to control inflation and prevent overheating of the economy and property markets, the attraction of Asia as a growth region should have positive effects on the demand for quality housing in these countries,’ GuocoLand said in a filing to the Singapore Exchange.

For Singapore, the cautious sentiment in the property market is evidenced by a slowdown and delay in property launches and a lower take-up rate compared to 2007, GuocoLand noted. But the ongoing development and subsequent completion of the two integrated resorts and the Marina Bay Financial Centre should help economic growth in the next few years, the developer added.

GuocoLand also said that it has increased its inventories from $1.6 billion to $4.5 billion over the past year, mainly due to an increase in its land bank. Among other purchases, the company completed its en bloc acquisitions of Sophia Court, Palm Beach Garden, Leedon Heights and Toho Garden condominiums in Singapore.

GuocoLand shares lost six cents to close at a 52-week low of $2.06 yesterday. The stock has shed 63.5 per cent so far this year.

Source : Business Times – 23 Aug 2008

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Bid for DBSS site goes to Ho Hup, Sunway Devts & Hoi Hup

Posted by luxuryasiahome on August 23, 2008

The Housing and Development Board has awarded the tender for a public housing site under Design, Build and Sell Scheme (DBSS) to Ho Hup Realty Pte Ltd, Sunway Developments Pte Ltd and Hoi Hup JV Development Pte Ltd.

Their successful joint bid was S$198,822,000 for the site at Lorong 1A Toa Payoh.

The plot has an area of 27,479.9 square metres and an allowable gross floor area of 115,415.58 square metres.

The site, the sixth to be offered under this scheme to build condominium-like public housing, has a lease term of 103 years.

The next tender for a 1.67-hectare site at Bedok Reservoir Crescent is expected to be launched in the second half of this year.

Source : Channel NewsAsia – 23 Aug 2008

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Li Ka-Shing says ‘worst is yet to come’ in global economy slump

Posted by luxuryasiahome on August 23, 2008

Hong Kong billionaire Li Ka-shing, who predicted China’s stock market bubble would burst, says the ‘worst is yet to come’ from the global credit crunch.

The crisis is turning Li ‘very conservative about acquisitions’, he told reporters here yesterday while announcing the results of his companies Hutchison Whampoa Ltd and Cheung Kong (Holdings) Ltd.

The US housing slump has triggered more than US$500 billion in credit- market losses for banks globally and led to the collapse and sale of Bear Stearns Cos, the fifth-largest US securities firm.

Mr Li, Asia’s richest man according to Forbes magazine, controls companies that operate businesses including retail, real estate, container ports and energy in 57 countries.

‘Mr Li’s views tend to be accurate,’ said Castor Pang, a strategist at Sun Hung Kai Securities Ltd here.

‘Looking ahead, signs of a US economic slowdown will become even more obvious. Asia has a high correlation with the US, so market performances will likely get worse.’

Sometimes called ’superman’ by Hong Kong’s media for his investing skill, Mr Li arrived here from mainland China in 1940 and built his Cheung Kong (Holdings) Ltd into Hong Kong’s second-biggest developer by market value from a company he founded in 1950 to make plastic flowers.

Mr Li’s comments echo those of Kenneth Rogoff, former chief economist at the International Monetary Fund, who said ‘the worst is yet to come in the US’.

Credit-market turmoil has driven the US into a recession and may topple some of the nation’s biggest banks, Mr Rogoff, a Harvard University professor of economics, said in an interview in Singapore on Aug 19.

‘The financial sector needs to shrink,’ Mr Rogoff said. ‘I don’t think simply having a couple of medium- sized banks and a couple of small banks going under is going to do the job.’

Hong Kong will be shielded to some extent because of China’s economic outlook, Mr Li said.

Hong Kong’s negative real interest rates are keeping the housing market stable and real estate ‘has always been a big part of the economy here’, Mr Li said.

China, the world’s fastest growing major economy, will see its economy continue to grow above 8 per cent ‘in the next few years’, Mr Li said.

China’s CSI 300 Index is down 54 per cent this year, the most among 88 major benchmark indexes tracked by Bloomberg, because of concern measures to cool inflation will damp both profit and economic growth. – Bloomberg

Source : Business Times – 22 Aug 2008

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