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Archive for September 11th, 2008

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Cuppage Terrace gets trendy

Posted by luxuryasiahome on September 11, 2008

ONCE a sleepy walkway in an area known for Japanese food, Cuppage Terrace hopes to woo a more trendy crowd after a $15-million revamp.

A tantalising array of 15 al fresco outlets, including restaurants, bars and spas, will open later this month, offering more late-night options for office workers and tourists alike. The area will open from from 11am till late, said Mr Kishin R.K. of Royal Brothers Group, the property-investment group which owns Cuppage Terrace.

He said: ‘It will help bring back vibrancy to the Somerset end of Orchard Road and give visitors greater choices in a stylish new hangout steeped in local history.’

Indeed, the 17 shophouses’ historic Peranakan facade will be restored, and the area will feature a variety of new faces. Restaurants like fine-grill restaurant and bar Bobby’s, Mexican restaurant VivaMexico, and Japanese fine-dining restaurant Hibiki, will offer cuisines from around the globe. Popular bar Harry’s will also set up shop there in a bid to boost its presence in the area, said Harry’s Holdings’ chief executive officer Mohan Mulani.

Said Mr Mulani: ‘We just wanted to be somewhere at the lower end of Orchard Road. We think we’re not represented in the neighbourhood.’

There is currently a Harry’s bar in Orchard Towers and also one in Far East Shopping Centre. Stalwart tenants, such as North Indian restaurant Maharajah and fusion eatery Cross Straits, which have been serving diners there for more than two decades, will remain.

Also staying on are Cable Car Bar and Japanese restaurant Tamaya, which has a bar and private rooms with karaoke machines. Both have been there for nearly ten years.

Said Mr Oh Ichikawa, managing director of Sential Jobs, which owns Cable Car Bar and Tamaya: ‘We are here because of the prime location.

Meanwhile, the nearby Killiney Post Office is going through a revamp of its own. A new dining- and champagne-bar concept by the Imaginings Group – which runs bars such as Balaclava, Wala Wala and Bar-Stop – is in the works and is expected to open before Christmas.

Source : My Paper – 11 Sep 2008

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Foreign workers prefer to stay away from residential estates

Posted by luxuryasiahome on September 11, 2008

The idea of a self-contained township for foreign workers has been given a thumbs-up by foreign workers themselves. But foreign worker advocates said more should be done to help these workers integrate with the wider community.

Singaporeans who do not want foreign workers living near them cite security concerns and even a downgrade in their property value as reasons.

But are these fears rational? Some foreign workers welfare groups said it is simply a fear of the unknown. That is why they are advocating that foreign workers be integrated with the wider community through a more structured orientation programme.

“I think community centres are a good start. If they are able to do social activities that can involve both migrant workers along with its local community, either through festivals or through sports activities or National Day Parade, it’s a good opportunity to bring the two groups together,” said Sha Najak, helpline manager at Transient Workers Count Too.

She added that current orientation roadshows may be a little too top-down in approach.

But some foreign workers said they are quite happy to live among themselves, away from housing estates.

“Wherever the dormitories, if it is away from the residents, it’s better because when it’s very near to the residents’ area, the workers have to go to the same FairPrice supermarket, or … canteen, they might misunderstand each other,” said Keve Xavier, a foreign worker.

But others said they would like to get to know Singaporeans better to ease misunderstandings.

“Really, we feel shame too (when) the people go and disrupt everybody, and nobody likes to stay with those people,” said Nathan Neduzcheliyan, also a foreign worker.

“We want to establish a good relationship between the Singaporeans and workers,” said foreign worker Humayun Kabeer.

Responding to Channel NewsAsia, the People’s Association said some grassroots organisations have engaged foreign workers through ad-hoc programmes aimed at helping them integrate into the community.

The government has said that more Singaporeans will find themselves living in the midst of foreign workers as Singapore expands.

While no solution has been reached yet for residents of Serangoon Gardens, the National Development Ministry is looking into the issue and is expected to respond soon.

Source : Channel NewsAsia – 11 Sep 2008

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NZ house sales slump to 26-year low

Posted by luxuryasiahome on September 11, 2008

Sales of New Zealand houses fell to a 26-year low last month as interest rates close to a record curtailed demand for property.

Weak demand: The median house price last month fell to NZ$330,000 from NZ$350,000 a year earlier – a drop of 5.7 per cent

The number of homes sold dropped 34 per cent to 4,220 last month from 6,394 a year earlier, according to a report from the Real Estate Institute of New Zealand Inc.

The median house price dropped 5.7 per cent.

Slowing consumer spending and a plunge in the housing market tipped New Zealand’s economy into a recession in the first half of this year, prompting Reserve Bank governor Alan Bollard to cut interest rates for the first time in five years in July.

The central bank will probably cut borrowing costs again today, according to all 15 economists surveyed by Bloomberg News.

‘The underlying fundamentals for housing demand remains weak, with mortgage rates still at high levels,’ said Jane Turner, economist at ASB Bank Ltd in Auckland. ‘It is tough going for households financially, and they need interest rates to be much lower to provide any real improvement.’

An over-supply of houses in the market will weigh on prices, she said.

Buyers are staying on the sidelines, forcing vendors to either take their property off the market or accept a lower price.

‘Economists are on the money with predictions of a 5-10 per cent decrease’ in prices, said Murray Cleland, national president of the institute. ‘Much will depend on the Reserve Bank’s decision. The expected decrease will take the pressure off mortgage costs.’

The median house price fell to NZ$330,000 (S$316,509) from NZ$350,000 a year earlier. Prices dropped NZ$10,000 from July.

The median time it took to sell a house was 55 days compared to 33 days in August last year. Still, the number of days it took to sell declined from a record-high of 58 in July.

Ms Turner said that wet weather last month may have added to the slump in sales, keeping buyers at home rather than inspecting properties.

Source : Business Times – 11 Sep 2008

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Barratt posts 13% profit fall, cancels dividend

Posted by luxuryasiahome on September 11, 2008

UK house prices fell for the seventh month running in August

A slide in Britain’s housing market led builder Barratt Developments plc to cancel its final dividend yesterday after underlying annual profit fell 13 per cent and it warned that the market remained difficult.

‘There is little prospect for any material improvement in trading conditions until mortgage finance and customer confidence return,’ chief executive Mark Clare said.

Latest monthly data from HBOS, Britain’s biggest mortgage lender, showed house prices fell for the seventh month running in August to stand 12.7 per cent lower than a year earlier, a sign the property downturn has turned into a crash.

More than £25,000 (S$62,900) have been wiped off the value of the average British home in the past year as the economy came to a standstill and the global credit crunch bit.

Mr Clare told reporters yesterday the group had successfully completed a £400 million refinancing, with a new covenants package also in place until 2011. However, he warned that the total interest cost on the finance package had increased around two percentage points to 9.5 to 9.75 per cent.

Rival housebuilder Redrow also announced a new finance package on Tuesday, which took its effective interest rate up two percentage points to around 8.5 per cent.

Barratt made a pre-tax profit before exceptional items of £392.3 million in the year to end-June. It announced landbank write-downs to the tune of £208.4 million as the group’s underlying selling price dipped 5 per cent.

Panmure Gordon said it expected further write- downs in the coming 12 months and that these will be in the region of £450 million to £550 million.

Barratt unveiled a new package of measures to stimulate flagging sales, including its own stamp duty holiday on purchases up to £500,000, effectively a price cut, and a price guarantee to protect buyers from short-term falls in prices.

Under its so-called Price Promise scheme, if a buyer sells a house at a loss within three years, Barratt will refund the difference, up to a maximum of 15 per cent.

Mr Clare said he hoped the combination of the government’s plans to encourage first-time buyers and Barratt’s own incentives would stimulate additional demand through the important autumn selling season.

Barratt said forward sales at end-June were £698 million, compared with £1.4 billion a year ago. By the end of August, forward sales had increased to £783 million.

Mr Clare said Barratt, which in July announced plans to cut 1,200 jobs, is now looking to make cost savings of some £140 million in the current year and wants suppliers to ‘bear some of the pain’.

Source : Business Times – 11 Sep 2008

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Hopewell full-year profit soars

Posted by luxuryasiahome on September 11, 2008

Hopewell Holdings Ltd, the Hong Kong-based real-estate company controlled by billionaire Gordon Wu, said that full-year profit more than doubled on one-time gains from asset disposals.

Net income increased to HK$5.97 billion (S$1.1 billion), or HK$6.62 a share, for the year ended June 30, from HK$2.63 billion, or HK$2.92, a year earlier, the company said in a statement yesterday. Profit was in line with the HK$6 billion average estimate of five analysts in a Bloomberg survey.

Hopewell booked gains of HK$4.79 billion from selling assets including a Macau project and a stake in a Guangdong toll road held by unit Hopewell Highway Infrastructure Ltd. Profit excluding the gains fell 30 per cent, partly because of lower contributions from the assets that were sold, the company said.

Earnings before interest and tax, excluding the gains, fell to HK$1.88 billion from HK$2.69 billion.

Hopewell will pay a final dividend of 40 Hong Kong cents a share and a special dividend of HK$1.10. The company paid a final dividend of 82 HK cents and a special dividend of 35 HK cents a share a year earlier.

The company, with real estate assets in Hong Kong and China, had earnings before interest and tax of HK$255 million from its property rental division, up from HK$204 million a year earlier, the statement said.

Hopewell Highway, 73 per cent-owned by Hopewell Holdings, said yesterday that full-year profit rose 48 per cent to HK$2 billion from HK$1.35 billion a year earlier. The unit’s sales fell to HK$1.72 billion from HK$2.03 billion on lower toll revenue.

Hopewell said in February that it was in the running to build a HK$60 billion bridge linking Hong Kong, Macau and the city Zhuhai.

Source : Business Times – 11 Sep 2008

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Abu Dhabi bank putting 1b dirhams in property unit

Posted by luxuryasiahome on September 11, 2008

Its Burooj Properties plans aggressive expansion in Africa, Europe and Asia

Abu Dhabi Islamic Bank plans an aggressive real estate expansion outside its home base into Africa, Europe and Asia by putting one billion dirhams (S$390 million) into its Burooj Properties unit. The bank also aims to float a majority of Burooj shares in 2010 as cash profit at the division, which excludes revaluation of assets, should at least triple in 2008 from 2007, Burooj managing director Adel Al Zarouni said.

‘All these markets look attractive and stable for investments to be done where the fundamentals are good with strong demand,’ Mr Al Zarouni said.

He also said that ADIB would add 500 million dirhams to the unit’s capital base, after injecting 500 million dirhams last month, to capture big growth opportunities in the Middle East. Burooj is also on track to float the company by staging an initial public offering (IPO) in 2010. ‘This is our plan and we could probably float 50 to 60 per cent of the company through the IPO to raise capital,’ Mr Al Zarouni said.

He projects cash profits to grow at least three-fold by the end of this year.

‘Our cash profits (excluding revaluation of assets), which was 110 million dirhams at end-2007, will grow to between 300 million and 400 million dirhams by end-2008. These expectations are based on sales and the company’s performance up to now,’ he said.

Burooj is setting up branches in Egypt, Algeria and Syria, and will examine commercial and residential property development.

‘We are closing a number of deals to develop property in Cairo valued at between three billion and four billion dirhams,’ he said. ‘In Algeria, there is a shortage in all segments – luxury, middle-class and low-income housing. So the potential is huge.’

Burooj started up in early 2006 with a capital of 500 million dirhams and has focused on property development in the United Arab Emirates.

It is developing projects worth 25 billion dirhams.

‘We are operating in dynamic markets and our portfolio will keep increasing steadily at least until 2015 as we take on new projects in the country, the region and outside,’ Mr Al Zarouni said.

Burooj is in talks with potential partners in Romania and India to speed its drive abroad.

As part of a new strategy, Burooj plans to set up two wholly owned companies before the end of this year to complement its property business.

‘We are setting up two subsidiaries, one a facility and property management company and the other a Sharia-compliant hospitality management company. These will complement our offering to the public,’ Mr Al Zarouni said. — Reuters

Source : Business Times – 11 Sep 2008

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Political uncertainty in Malaysia mars some investments: report

Posted by luxuryasiahome on September 11, 2008

THE jury is still out on whether the Opposition’s recent success in the Permatang Pauh by-election as well as the March general election have affected the country’s attractiveness to local and foreign property investors, according to a new report by DTZ.

Stacking up: The country is seeing frequent headlines of political upheaval – raising concerns about stability

The current political situation has affected short-term fund flow, especially in equities, and created more ‘fence-sitters’. But major real estate investments which require a longer term perspective have so far weathered the hiatus well, it said.

Malaysia has traditionally prided itself on its political stability and attractiveness to foreign direct investments. But since March 2008, when the ruling party lost its two-thirds majority, the country has seen almost daily headlines of political upheaval – raising concerns about political stability.

But empirical evidence gathered by DTZ Research has not provided solid indications that the increased political uncertainty has hit investment interests.

For one, there continues to be a stream of foreign investors coming to Malaysia for early prospecting or to explore opportunities, according to DTZ.

Although the number has declined compared with 9-12 months ago, DTZ attributes this to the sub-prime crisis rather than concerns about the country’s political stability.

DTZ also points out that since March, there have been several open biddings for two key properties up for sale, both prime office buildings in downtown Kuala Lumpur.

According to DTZ, the responses to both properties were very encouraging. The decision to sell is also in no way a reflection of owners’ concerns as they were made before the current political developments, DTZ says.

DTZ’s reports conclude: ‘Hopefully, the political situation will soon settle, and whether it is by the Opposition or the present government, the push to provide a stronger reformist economic policy that will steer the country towards greater development can only be a boon for investors.’

Source : Business Times – 11 Sep 2008

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Singapore Flyer raises its game

Posted by luxuryasiahome on September 11, 2008

Television sets on its premises and in each of its 28 capsules showing live Formula 1 action. Fringe activities such as fire twirlers, samba dance and live band performances. Deejays hitting the deck and gigs by local celebrities like Kumar and John Molina.

The Singapore Flyer is going all out with these to woo visitors during the Republic’s inaugural night Grand Prix race over the weekend of September 26-28.

“Next to getting an F1 Paddock Pass, you can’t get any closer to the pit building than at the Singapore Flyer,” said its general manager Steven Yeo.

But it appears to be the only tourist attraction in town doing so.

A random check with other popular attractions, such as Sentosa, the Singapore Zoo and Night Safari, revealed that little has been planned to tap the influx of at least 50,000 visitors for the race.

This, when the Flyer is rolling out a slew of ticketing packages to cater to crowds of various levels of affluence: From a regular flight at S$29.50 with an open bar, to a luxurious lounge party at S$688, which includes a three-day trackside pass.

With Singapore hosing the first F1 night race, it seems the perfect opportunity to aggressively market this as the choice tourist destination – and also boost chances of hitting the target of 10.8 million visitors this year, given slowing tourist arrivals in the first half.

So, why are other tourist attractions not doing more?

It could be because they do not think these will increase visitorship significantly, said tourism and hospitality expert Judy Siguaw.

“The other tourist attractions might not think it is necessary to have special promotions or programmes. We have the Singapore Biennale and the Singapore River Festival going on at the same time, for example, and these visitors will have enough on their hands to keep them entertained,” said the dean of the Cornell-Nanyang Institute of Hospitality Management.

But it’s not as if nothing can be done to “sell” Singapore, Dr Siguaw added. Having readily available information at the airport on the sights and activities in Singapore “wouldn’t hurt”.

Meanwhile, the Singapore Mint and Logo House Singapore will be launching commemorative F1 coins and medallions tomorrow.

The S$2 silver proof coin and S$2 cupro-nickel proof-like coin will be sold at S$282 and S$47 each.

Source : Today – 11 Sep 2008

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More PRs snapping up private homes

Posted by luxuryasiahome on September 11, 2008

Their share in pool of foreign buyers is rising after turmoil in global markets

THE proportion of permanent residents (PRs) in the pool of foreign buyers of private homes here has been rising since the third quarter of 2007, when the US sub-prime crisis struck, according to DTZ’s analysis of caveats data from Urban Redevelopment Authority’s Realis system.

Major attraction: Projects that received more foreign interest in Q2 include The Lakeshore in Jurong

Correspondingly, non-PR foreigners have seen their share of this pool decline from 54 per cent in Q3 2007 to 46 per cent in Q2 this year.

One explanation could be that PRs are more likely to buy Singapore homes for their own occupation whereas non-PR foreigners may be more inclined to buy for investment and would hence tend to become increasingly cautious amidst the volatile global financial markets.

DTZ senior director (research) Chua Chor Hoon expects the trend to continue in the coming months given the global economic uncertainty.

The property consultancy’s analysis showed that PRs made up 54 per cent of the total number of 913 private-home purchases by foreigners in Q2 this year captured by Realis as at early August. This was up from a 51 per cent share in Q1, which in turn was higher than 47 per cent and 46 per cent shares in the fourth and third quarters of last year respectively.

Foreigners (including PRs) bought a total 913 private homes here in Q2 2008, up 3 per cent from the preceding quarter. Malaysians overtook Indonesians as the top foreign buyers of private homes in Singapore in the second quarter.

Malaysians accounted for 19 per cent (172 transactions) of the overall purchases by foreigners (including PRs), followed by a 17 per cent share for Indonesians. China and India citizens each accounted for 11 per cent of foreign buyers while UK buyers had a 9 per cent share.

Projects which received more foreign interest in Q2 include The Lakeshore in Jurong, Vutton at Akyab Road and Nassim Park Residences. Foreigners (including PRs) made up 44 per cent of the 55 units sold at The Lakeshore, and about two-thirds of the 11 units sold at Scotts Square and nine units sold at Martin Place Residences.

‘The Indonesians favour prime districts 9 and 10. District 15 is popular with all the five major nationalities because it offers sea views, easy access to the airport and city, and is a popular residential area even with the locals with its attractive amenities.

‘The Chinese, Malaysians and Brits also buy into the west. This could be due to the proximity to the Science Park, industrial estates and National University of Singapore,’ Ms Chua said.

Source : Business Times – 11 Sep 2008

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TID wins URA condo-site tender with $84m bid

Posted by luxuryasiahome on September 11, 2008

THE Urban Redevelopment Authority (URA) yesterday awarded a 99-year leasehold condo site next to Tanah Merah MRT Station to top bidder TID, just a day after the tender closed on Tuesday.

This contrasts with the couple of weeks or more that URA has taken to deliberate on awarding earlier sites, which fetched bids below expectations.

TID’s $84 million winning bid reflects a land price of about $282 per square foot (psf) of potential gross floor area, within the $250-$300 psf per plot ratio range market watchers predicted for the confirmed list site when it was launched in mid-July.

TID is a joint venture between Singapore’s Hong Leong Group and Japan’s Mitsui Fudosan.The tender drew seven bids.

Source : Business Times – 11 Sep 2008

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