Lushhomemedia

Archive for September 26th, 2008

« Previous Entries

Ho Bee to sell Frontech Centre for $30 mln

Posted by luxuryasiahome on September 26, 2008

Ho Bee Investment Ltd said on Friday that its subsidiary, Ho Bee Developments Pte Ltd, has entered into a contract to sell its industrial building, Frontech Centre to AG Frontech Private Limited for S$30 million.

The net book value of the property on June 30, 2008 was S$13.93 million.

The sale will yield a pre-tax profit of about S$15.7 million.

The building is located at 15 Jalan Kilang Barat, Singapore.

The sale is expected to be completed on November 15, 2008 or earlier depending on the buyer.

The sale proceeds are intended to be used for the reduction of the group’s borrowings and provide additional working capital.

This will be reflected in the group’s financial result for the fourth quarter of 2008 and it will have a positive impact on consolidated earnings and net tangible assets per share in the current financial year ending December 31, 2008.

Source : Business Times – 26 Sep 2008

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

HDB launches 992 flats under balloting exercise

Posted by luxuryasiahome on September 26, 2008

The Housing and Development Board (HDB) of Singapore has launched the sale of 992 flats under its Balloting Exercise on Friday.

They include surplus flats available from the Selective En Bloc Redevelopment Scheme (SERS) in Ang Mo Kio, Kallang, Whampoa, Queenstown and Jurong West, as well as remaining units at The Pinnacle@Duxton.

HDB said on Friday the units offered are of different types and designs that will suit varying needs and budget of home buyers.

Prices of three and four-room flats in Jurong West are expected to cost between S$142,000 and S$253,000.

While the 428 units at Singapore’s first iconic 50-storey public housing project, The Pinnacle@Duxton are priced between S$457,000 and S$646,000.

The Board said that buyers who do not find a flat of their choice in this balloting exercise can consider applying for a new flat under the Build-To-Order exercises in the future.

Interested buyers can view models of the projects at the Habitat Forum at the HDB Hub or visit unfurnished sample units on site.

Applications for the new flats can be submitted online at www.hdb.gov.sg from September 26 to October 9.

Source : Channel NewsAsia – 26 Sep 2008

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

Population grew to 4.84 million, boosted by strong non-resident growth

Posted by luxuryasiahome on September 26, 2008

Singapore’s population hit 4.84 million in June this year, marking a 5.5 per cent increase from a year before. The figure is buoyed by an increasing number of foreigners in the country, boosted by strong economic growth over the past few years.

The number of non-residents grew by 19 per cent, while the resident population went up by a mere one per cent.

The National Population Secretariat said foreigners increasingly view Singapore as an attractive place to relocate.

Most come from neighbouring Asian countries.

There are also more new Permanent Residents (PRs) and citizens. In the first half of this year, 34,800 were granted PRs. That’s up by some 20 per cent from the same period last year.

Meanwhile, 9,600 were granted citizenship, up by some 30 per cent, compared to the year before.

And nearly seven in 10 new PRs aged 20 and above had post-secondary qualifications.

Moving forward, the Secretariat said integration would be a key challenge.

It added that the government will also continue to exercise discretion and facilitate the naturalisation of foreigners who can add value and contribute to Singapore socially and economically.

Roy Quek, director, National Population Secretariat, said: “Integration is not just about what the government can do because the government is limited in terms of its ability to reach out to everyone. Integration happens all the time, in our schools at the workplace, in our local community, in the neighbourhoods.”

Mr Quek added that a strong non-resident presence in Singapore is also testament to the country’s good growth.

“In a way it’s a compliment to Singapore that we have a place where others want to come to, that we have economic opportunities, we have enough jobs not just for locals but also for people who are willing to come in to spend time here.

“So the key is not to look at it as competition for jobs but adding value to Singapore’s economy and ultimately contributing to a better life for all of us in Singapore,” he said.

The number of Singaporeans grew to 3.16 million due to the higher number of citizen babies and more PRs taking up citizenship.

There were some 18,000 births registered in the first half of this year, slightly higher than the numbers registered the same period last year.

So while Singapore is on track for another historic high fertility rate, the biggest concern is still about making babies.

The country’s total fertility rate was 1.29 in 2007, far below the replacement level of 2.1.

Mr Quek said: “Of course, it’s going to be an uphill task but we are hopeful at least of crossing the 1.3 level at some point in the future.”

As for overseas Singaporeans, more are making their homes abroad either for work or study.

As of June 2008, there’re about 153,500 overseas Singaporeans compared to 147,500 a year ago.

The countries with a high concentration of overseas Singaporeans are Australia, the UK, US and China.

For a full list of the statistics, you can log on to www.nps.gov.sg.

Source : Channel NewsAsia – 26 Sep 2008

Posted in All Singapore, General | Tagged: , | Leave a Comment »

Pulsating Marina Bay

Posted by luxuryasiahome on September 26, 2008

This new prime area for living, working and playing will become even more vibrant once Marina Bay Sands is ready, writes HAN HUAN MEI

FOR a long time, when the question was asked, ‘where do wealthy Singaporeans live’? The answer would either be ‘the bungalows in Tanglin, Bukit Timah and Holland Road’ or ‘the luxurious apartments in Orchard, Cairnhill and Grange Road’. This is set to change.

While these prestigious addresses evolved through Singapore’s history over several decades, two new prime residential areas have emerged in recent times as a result of brilliant land use planning based on the government’s vision of lifestyles in the new millennium. These are the New Downtown and Sentosa Cove.

The properties in the traditional prime residential areas are largely freehold estates, but those in the New Downtown and Sentosa Cove are mainly 99-year leasehold estates. Not only are they among the most expensive leasehold properties, their price levels are almost on par with the new freehold projects in the Orchard area and 25-30 per cent below those of new luxury properties.

The evolution of these two new prime residential locations was partly fuelled by the sharp growth of local high net worth individuals (HNWIs) as a result of the global wealth effect in 2005-2007. Most of them would have invested in real estate in one way or another during this period.

In the past few years, not only have locals invested in property, but the Singapore property market boom has also attracted a lot of permanent residents (PRs) and foreigners as the government relaxed rules on foreign ownership. There is no restriction on the purchase of any non-landed property in Singapore but a foreigner or PR who wishes to purchase a restricted residential property still needs to obtain the approval from the Land Dealing (Approval) Unit. A restricted property refers to vacant residential land, landed property (such as a detached house, semi-detached house, terrace house and landed property in strata developments which are not approved condominium developments under the Planning Act).

However, PRs and foreigners who wish to purchase landed property on Sentosa island have been able to obtain fast track approval from the government since 2005.

Between the emerging prime areas of Sentosa and the New Downtown, the New Downtown possesses a dynamic multi-faceted character that makes it a more ‘happening’ place. This is because it is being developed into a place where living, working and playing will be blended together into an exciting mix of diverse activities. The Esplanade – Theatres By The Bay provides for the enjoyment of the arts. The Marina Bay Financial Centre (MBFC), the purpose-built financial district of the New Downtown, will offer nearly three million sq ft of prime Grade A office space and two residential towers comprising 649 upmarket apartments to complement the newly completed iconic skyscraper, The Sail @ Marina Bay. Both The Sail and MBFC will also provide some 20,000 sq ft and 105,000 sq ft of retail space respectively.

To top it all, the proposed Marina Bay Sands integrated resort will feature three hotel towers with 2,500 suites, over a million sq ft of space for conventions and meetings, the ArtScience Museum designed like ‘floating’ crystal pavilions, more than 800,000 sq ft of retail space known as Marina Bay Shoppes as well as a 160,000 sq ft casino. There is no doubt that Marina Bay will be a focal point of business, recreation and living for many years to come.

While the concept of in-city living has hogged the headlines in recent times, the number of residential units in the New Downtown is still rather limited. Around Marina Bay, only The Sail (1,111 units), Marina Bay Residences (428 units) and Marina Bay Suites (221 units) are available. The first two projects are fully sold while the third is not for sale yet. One Shenton (341 units) at One Shenton Way is 93 per cent sold to date while The Clift (312 units) at McCallum Street is 76 per cent sold. In the Tanjong Pagar area, Lumiere (168 units) is 58 per cent sold.

As for projects in the pipeline, 76 Shenton Way has obtained written permission to be converted into a 179-unit apartment block while the owners of 5 Shenton Way (UIC Building) are waiting for the lifting of the moratorium on the conversion of office buildings to residential use at end-2009 before they proceed. Two new projects at Enggor Street in Tanjong Pagar have also obtained written permission as at June this year.

Over at Icon in Tanjong Pagar, one-bedroom units (570-800 sq ft) were recently leased at $5-$7.50 psf while two-bedroom units (900-940 sq ft) were leased at $5.50-$7 psf. This works out to a gross yield of 4-5 per cent. Using these as a proxy for the possible rental range for the recently completed The Sail (Tower 2), it is likely that similar-sized units may be leased at $7-$8.50 psf. This would translate to a lower yield of 3-4 per cent due to their higher capital values.

For 2009, modest growth is expected as the US financial and housing slumps ripple through the rest of the world, affecting employment, business confidence, consumer spending and overall demand. The slowdown in the global economy and inflation woes are likely to curtail residential sales and cause overall home prices to dip by 10-15 per cent.

Despite the current tentative sentiment in the residential market, there are several fundamental merits for living in the new prime area of Marina Bay. And momentum should pick up again once the Marina Bay Sands commences operations at the end of next year. The lure of living, working and playing in an area that never sleeps would once again prove too attractive for home buyers to ignore.

The writer is by associate director of CBRE Research

Source : Business Times – 26 Sep 2008

Posted in General, Luxury Property, Marina Bay / CBD | Tagged: , , , , , , , , , | Leave a Comment »

Sentosa Cove a coveted address

Posted by luxuryasiahome on September 26, 2008

CHIA SIEW CHUIN and AUDREY TAN look at the projects that make up Singapore’s exclusive marina residential community

FANCY revelling in a resort home that’s just under 15 minutes from the central business district and shopping malls? Where can you enjoy a round of golf at an international golf course situated right at your doorstep? And if travel is on the cards, the airport is just a 30-minute ride away. If that sounds appealing to you and you have anywhere from $2 million to $20 million to spare, a resort home in Sentosa Cove could be the answer.

Sentosa Cove is to Singapore what Sanctuary Cove is to Australia and the French Riviera is to France. Set on the eastern shore of Sentosa island (just south of the main Singapore island), Sentosa Cove, which spans 117 hectares of mostly reclaimed land, is undergoing a transformation that will see it become Singapore’s first and only integrated oceanfront gated marina residential community.

When completed in 2010, Sentosa Cove will be a luxurious estate comprising some 2,500 99-year leasehold homes in the form of oceanfront villas, waterway bungalows, hillside mansions and upscale condominiums. These will be complemented by an intimate marina village offering supporting amenities such as the 240-berth One Degree 15 Marina, the 320-room W Hotel being developed jointly by City Developments and Starwood, and a three-storey retail and commercial complex with a wide array of shops, upmarket F&B outlets, spa and fitness centre and small-office-home-office (SoHo) units.

To top it all, the development of Resorts World at Sentosa, Singapore’s second integrated resort with a casino, will undeniably attract high-rollers who covet luxury homes to invest in Sentosa Cove, making it the Monte Carlo of Asia.

There are no restrictions on foreigners purchasing condominium units in this enclave. However, foreigners looking to purchase a landed home here will need to submit an abridged application form to the Land Dealings (Approval) Unit of the Singapore Land Authority for approval to purchase what is classified as restricted property in Singapore.

This abridged application, only available for landed homes in Sentosa Cove, will enable a foreigner to receive fast-track approval in 48 hours on the back of simplified purchasing criteria and approval procedure. The catch is that foreigners who have been granted the abridged approval will be required to occupy the landed homes themselves and must not own more than one restricted property in Singapore.

Furthermore, as one of the options under the Global Investor Programme, an applicant can apply for Singapore permanent residency by utilising his property investment in Singapore to form up to half the minimum $2 million required to be invested in approved businesses or investments in Singapore.

With these attractions, it is no wonder that high net worth individuals from all over the world have been making a beeline for a slice of this luxurious resort home market. Foreigners are believed to have accounted for 50 per cent of the property sales in Sentosa Cove. By 2010, 60 per cent of the 10,000 Sentosa Cove residents will likely be foreigners, thus setting the stage for a truly international community.

Since 2004, at least 12 projects comprising six condominium and six landed housing developments have been launched for sale. These projects have enjoyed brisk sales, save for those launched after the onset of the US sub-prime mortgage crisis in 3Q 2007.

Here is a a snapshot of some of the projects in Sentosa Cove.

NON-LANDED DEVELOPMENTS

The Berth by the Cove: This was the first condominium development to be launched and completed in Sentosa Cove. The development consists of 15 six-storey blocks and provides an array of facilities including 25 berths for private yachts. All the apartments have views of the ocean, with the master bedroom and living rooms facing the sea.

There are 200 units in the development comprising 188 two- to four-bedrooms apartments and penthouses, ranging from 1,015 sq ft to 3,100 sq ft; and two duplex sky villas of 6,028 sq ft, each with a balcony lap pool.

The Oceanfront @ Sentosa Cove: This seafront condominium comprising three 15-storey and two 13-storey blocks is by far the largest and tallest residence in Sentosa Cove. Designed by world-renowned architects Wimberly Allison Tong and Goo Inc and Antonio Citterio, it features a host of luxurious facilities including a fully equipped gym and an infinity lap pool stretching into the horizon.

There are 264 units in the development, comprising 239 two- to four-bedrooms apartments ranging from 1,216 sq ft to 4,282 sq ft, seven sky suites of 3,326 sq ft to 5,038 sq ft, two villas measuring 4,585 sq ft to 4,704 sq ft and 16 sky villas of 2,745 to 8,095 sq ft.

Turquoise: One of the most recently launched developments in Sentosa Cove, Turquoise comprises two six-storey blocks with attics fronted by a waterway near the fairways for views of the golf courses. It boasts full condominium facilities as well as 21 private berths within the development.

Turquoise will have a total of 91 residential units, with 78 three- to four-bedrooms ranging from 2,088 sq ft to 3,035 sq ft, 10 duplex penthouses of 3,111 sq ft to 3,746 sq ft with private spa pools and terraces and three sky villas ranging from 6,900 sq ft to 7,987 sq ft with private sky gyms, infinity lap pools and terraces. Units are still available for sale by the developer.

Marina Collection: Marina Collection is the latest condominium project to be launched in Sentosa Cove. Located next to the One Degree 15 Marina, the development comprises three four-storey blocks. Facilities provided include a lap pool, gym, clubhouse and concierge service. Buyers are offered One Degree 15 Marina club membership and 40 berths will be made available for lease to owners.

The 124-unit project will have 93 three- to four-bedroom apartments ranging from 1,873 sq ft to 3,272 sq ft and 31 penthouses (with private lap pools) measuring 3,369 sq ft to 4,693 sq ft. The project is still open for sale by the developer.

LANDED DEVELOPMENTS

Those who want to design and build their own homes have the chance to do so on Sentosa Cove with land parcels on offer for sale. So popular are they that all the land parcels at Sentosa Cove have been sold as at end-August 2008. There are, however, opportunities to purchase landed homes in the primary and secondary markets. Landed projects that keen buyers can still lay their hands on include:

The Berthside: The Berthside comprises eight terraces with their own private berth and a spacious deck area for outdoor dining. It is the first landed housing development to be launched and completed in Sentosa Cove. The land size for each terrace unit ranges from 2,324 to 3,851 sq ft, with a built-up area of 4,168 sq ft to 5,170 sq ft.

Coral Island: This is an island in the North Cove of Sentosa Cove. It houses 21 bungalows, each equipped with its own private mooring berth for a pleasure craft. The bungalows are built on land plots ranging from 6,000 sq ft to 15,000 sq ft and have built-up areas of between 6,000 sq ft and 12,000 sq ft.

FUTURE PROJECTS

In the pipeline are some 535 condominium and landed houses in Sentosa Cove, which could potentially be launched in the next two to three quarters. These include the 105 yet-to-be-launched condominium units from Turquoise and Marina Collection as well as City Developments’ 228-unit Sentosa Quayside and Ho Bee Group’s 151-unit Seascape.

Beyond the next nine months, would-be purchasers and investors can also look forward to another estimated tally of 350 condominiums and landed homes that are likely to be generated from developers’ land banks.

Buoyant demand for Sentosa Cove’s resort homes has resulted in the trebling of launch prices of non-landed properties, from an average of $785 per sq ft for the first condominium project, The Berth by the Cove, launched in November 2004, to $2,800 psf for latest release for The Marina Collection in December 2007.

Based on caveats lodged, prices of landed homes in Sentosa Cove have similarly trended up steeply. Prices of bungalows have increased some 75 per cent from an average of $743 psf of land  area as at late 2005 to $1,303 psf of land area as at end-2007. For terrace houses, average prices have leaped by 185 per cent from $847 psf of land area as at 1Q 2005 to $2,414 per sq ft as at 1H 2008.

With the stock of resort homes in Sentosa Cove capped at 2,500 units, one can be assured that the exclusivity and resort ambience of homes in the marina community will be preserved. In addition, the rising population of well-heeled expatriates brought about by Singapore’s growing status as a global city and regional financial hub will continue to support demand for resort homes in Sentosa Cove. Hence, despite the current market weakness due to global economic and financial turbulence, the mid-to-long term prospects for resort homes in Sentosa Cove are bright.

Singapore’s sound political, social, economic and geographic environment that is free from natural disasters makes buying a home in this island state, be it for investment, holiday or retirement, a worthwhile option. Hence, laying one’s bet on Sentosa Cove could just be the match made in investment heaven.

Chia Siew Chuin is associate director while Audrey Tan is analyst at Research & Advisory, Colliers International

Source : Business Times – 26 Sep 2008

Posted in General, Landed Property, Luxury Property, Sentosa Property | Tagged: , , , , , , , , , , , , , , | Leave a Comment »

Singapore property investment: Spoilt for choice

Posted by luxuryasiahome on September 26, 2008

Home buyers have a wide range of projects to choose from that will match their lifestyles, write CHUA CHOR HOON and ONG KAH SENG

PROPERTY investment requires substantial capital outlay and it takes a longer time to dispose of it compared to other assets like shares, especially in a soft market. Important factors to consider before making a purchase therefore include:

~ Purpose of purchase, ie whether for owner-occupation or investment;
~ Your budget and the price of the property;
~ Surrounding environment;
~ Proximity to amenities such as MRT stations, schools, and shopping centres;
~ Rental and resale values (especially if you are buying for investment);
~ and Reputation of the developer.

Many of these factors are related to location, which is often cited as the most important criterion in property purchase. Besides the traditional prime districts 9, 10 and 11, there are other areas worth considering.

The east coast has always been a favourite among Singaporeans, being close to the city and beach, easily accessible to the airport, and with many amenities like shopping, food and beverage, and the Marina Bay golf course. Faced with high rents in the prime districts, the East Coast has also become a popular alternative with many expatriates.

Joo Chiat and Katong are rich in the culture of Eurasian and Peranakan communities, and their food and architecture. Residents in the East Coast will also enjoy proximity to the Sports Hub when it is completed in a few years’ time. Besides Parkway Parade and Kallang Leisure Park, the Sports Hub will offer 441,000 sq ft of commercial space and the redevelopment of Katong Mall is expected to have about 185 retail units.

There are ample choices of developments to suit different budgets. Developments with sea views such as The Belvedere, Water Place and Sanctuary Green enjoy strong leasing interest with monthly median rentals ranging from $3.80 to $4.50 per sq ft.

The last three years have seen other areas getting popular as they offer alternative quality lifestyle living.

Waterfront living, which in the past had been mostly confined to the east and by the Singapore River, gathered momentum in the last few years with areas like Sentosa Cove, Keppel Bay and Marina Bay coming up.

Sentosa Cove offers luxurious houses and condominiums with sea or canal views, and more than 50 per cent of the buyers are foreigners. Many of the properties are bought as weekend or holiday homes. Keppel Bay offers exhilarating views of Sentosa, ships cruising in and out of the harbour front and pleasure boats berthed at Marina at Keppel Bay.

Since the completion of Caribbean at Keppel Bay in 2004, the Harbourfront area has livened up with many lifestyle amenities such as VivoCity, St James Power Station, Marina at Keppel Bay and Jewel Box at Mount Faber.

Future developments that residents in Sentosa Cove and Keppel Bay can look forward to are the integrated resort at Sentosa and the government’s development of the Southern Ridges and waterfront.

The Southern Ridges, Labrador area and Keppel waterfront will collectively form a major recreational and leisure destination at the southern part of Singapore. Already bridge connections have been made to link the 9km chain of green, open spaces across Mount Faber Park, Telok Blangah Hill Park and Kent Ridge Park. Soon, an elevated boardwalk over the sea will be built skirting the foothills of Bukit Chermin, and connect eastwards to the future promenade at The Reflections at Keppel Bay condominium project and westwards to Labrador Park.

According to URA statistics, Caribbean at Keppel Bay consistently enjoys one of the highest rentals among condominiums islandwide. Its median rent was $6.40 per sq ft in 2Q 2008. The potential supply in the area is fairly limited. Besides the uncompleted The Reflections at Keppel Bay, with 507 units available out of a total 1,129 units as at end 2Q 2008, the only other projects in the pipeline in the area are 307 units on a parcel next to Caribbean at Keppel Bay and 94 units on Keppel Island.

At Marina Bay, there will be plenty of buzz from the Marina Bay Sands integrated resort, Marina Bay Shoppes, and events and activities that are being/will be held in the bay. Marina Bay Shoppes will provide 800,000 sq ft of retail space, close to the one million sq ft in VivoCity. Nearby is the uncompleted Gardens at Marina South which will provide nature relief from the hustle and bustle.

Tiong Bahru, with its MRT station, Tiong Bahru Plaza, conserved buildings, Tiong Bahru market and hawker centre and freehold condominiums like Twin Regency, Regency Suites and The Regency at Tiong Bahru, has a strong following for its convenience of transport and amenities. The area is attractive with many expatriates and working professionals who like the quaint living environment near their workplaces. Monthly rents of Twin Regency, which was completed in 2007, are generally above $4.50 per sq ft.

Other growing fringe city areas are at Selegie and Beach Road/Kallang area. Both are near the Bras Basah/Bugis area which is developing nicely into a bustling arts, cultural, entertainment and education hub. The rich history and conserved shophouses at Beach Road and Kampong Glam offer a variety of experiences with their traditional trades, interesting shops and food outlets. Nearby at Bugis, Illuma will be completed soon by end of the year.

At Selegie, there are upcoming malls like Wilkie Edge, while Tekka Mall is being re-positioned and re-named The Verge. New residential developments include Parc Emily and Parc Mackenzie. Monthly rents of Parc Emily are at least $4.50 per sq ft while some units were recently sold for about $1,100 to $1,200 per sq ft. Projects currently available for sale include Parc Sophia and Mount Sophia Suites, with the latter not fully released.

At the Beach Road/Kallang area, the government plans to develop the Ophir-Rochor corridor into a vibrant office cluster for financial and business institutions that will complement the financial district at Marina Bay and Raffles Place. The Circle Line will further enhance the accessibility and connectivity of the vicinity.

Further up at Kallang Riverside, plans are announced in the draft Master Plan 2008 to develop it into a commercial hub with a residential enclave capitalising on the beach and waterfront. Launched at about $1,400 per sq ft last year, The Riverine by the Park, a 96-unit development at Kallang Road, was well-received and fully sold in weeks. A more recent launch is Concourse Skyline with selling price of $1,500-$1,800 per sq ft, which will be able to take advantage of an area that is anticipated to grow into a sought-after mixed commercial and residential area at the city fringe and with waterfront views of the Kallang River and the sea.

Property buyers are now spoilt for choice, as more areas take off, backed by the government’s plan to introduce city living and develop different parts of the island to provide for varied lifestyle needs. Understanding the attractions and potential of each area is therefore important so that it will be easier to sell or rent the property that is purchased and to ensure that there is better capital protection or appreciation.

Chua Chor Hoon is senior director, while Ong Kah Seng is assistant manager, DTZ Research Singapore

Source : Business Times – 26 Sep 2008

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

Singapore prime areas beckon

Posted by luxuryasiahome on September 26, 2008

High-end homes in these exclusive areas appeal to foreign buyers whose numbers have risen over the years

IN Singapore, Districts 9, 10 and 11 are traditionally recognised as prime residential areas.

Districts 9 and 10 are located around the main shopping belt of Orchard Road (Orchard, Cairnhill, River Valley, Ardmore, Holland Road, Tanglin), while District 11 is situated to the north of Orchard Road, in the Bukit Timah, Watten Estate, Novena and Thomson areas.

Since 2005, District 1 (the financial district) and Sentosa Cove have been new additions to Singapore’s prime residential market.

While offering a much-admired lifestyle like no other in Singapore, developments in these prime areas offer an exclusive sanctuary for an individual or family, amid the bustle of city life.

Ranked high on appeal, prices of homes in these areas also come with a hefty price tag. It is not surprising that the developments surrounding or within the Orchard Road area have been some of the most expensive properties in Singapore. With Orchard Road renowned as the epicentre of Singapore’s shopping and entertainment district as well as upcoming malls that seek to titillate one’s senses, the heart of the 1,650ha urban landscape of the Central Area is set to undergo a slew of changes.

On the same note, older prestigious residential projects in the area are usually situated on a five-minute drive from Orchard Road, typically nestled in quiet enclaves. This has changed over the years as we see newer projects planned to be visually apparent from Orchard Road itself compared to those built in the 1980s.

Likewise, Orchard Road is gradually being transformed with new malls such as Orchard Central and Ion Orchard set to enhance the shopping scene. Not only has this led to an alteration of Orchard Road’s urban landscape, but it has also enhanced the nature of high-end developments in Singapore. While still able to furnish a level of opulence, exclusivity and uniqueness, high-end developments are now embedded into the flurry of urban activity, with Orchard Road as its backdrop.

To buttress these claims, the large number of collective sales in recent years would eventually contribute to the remodelling of high-end urban areas.

From 2005 to 2007, a total of 116 residential projects in District 9,10 and 11 were sold in collective sales for re-development. Given this substantial number, and with freedom to re-develop, older residential buildings in the high-end districts would increasingly give way to modern and taller apartment blocks that feature modern architectural designs with complete range of recreational facilities.

Furthermore, some of the new high-end condominiums also offer the luxury of space as seen in developments in the Ardmore Park and Draycott area where the units are larger than 200 sq m.

High-end luxury homes in the traditional prime districts, with their enduring charm, have always been highly regarded by those with large coffers and a distinct taste for the luxuriant high life. With chicly designed homes that offer a lush and lavish lifestyle, residential developments in these areas have drawn the interest of both locals and foreigners alike.

Over the past three years, the number of homes bought by foreigners has risen from around 3,600 in 2005 to about 9,100 in 2007. The proportion of foreign buyers islandwide for all landed and non-landed homes stood at 25.6 per cent as at 2Q 2008, a marginal fall of 2.3 percentage points from the previous quarter.

Over the last 13 years, the proportion of foreigners that purchased all types of private homes (excluding executive condominium units) islandwide reached its peak in 2007 when this figure registered at 25.7 per cent. Regardless of this slight slackening in terms of the proportion of foreign buyers in Singapore, the 25.6 per cent registered in 2Q 2008 is still 3.6 percentage points higher than the five-year quarterly average figure.

Foreign buyers originate from various continents and based on 1H 2008 statistics, the majority, 17.7 per cent, were from Indonesia. Not far behind, Malaysians also formed a significant proportion at 17.6 per cent followed by those from India and China. Farther across oceans and land masses, buyers from the UK and the US are also evident in Singapore’s private residential property market with a proportion of 8.7 per cent and 2.3 per cent respectively as at 1H 2008.

Most foreign home-buyers and investors would prefer to acquire a condominium unit in the prime districts, and figures indicate that for District 9, 10 and 11, the proportion that has purchased both landed and non-landed homes in these two districts was a considerable 35 per cent in 2007.

Driving forces behind foreigners’ interest in residential properties here can stem from a multitude of reasons. One major compelling reason is the efficiency, safety and open business environment in Singapore. There are also Singapore government policies in place to welcome foreigners to live here.

The service industry, especially the financial services segment has seen robust growth over the past decade. This has seen an increase in high-paying jobs, which have attracted many highly skilled foreigners to work in Singapore.

Coupled with various other socio-political reasons, the cosmopolitan city-state of Singapore is endless in its appeal. Not only was Singapore ranked as the best place for Asian expatriates to reside in earlier on in the year, but a recent poll also highlights that expatriates have rated Singapore to be the best place in the world to live, especially in terms of the quality of accommodation. With the introduction of the two integrated resorts and added casinos to boot, the F1 night races and a host of other initiatives, Singapore is also gradually becoming a more interesting place to work, live and play.

In addition, well-heeled investors prefer real estate in the prime districts because property prices in these areas would always be among the first to increase during a property boom. Moreover, investment in Singapore’s real estate is deemed to be relatively low risk in Asia.

With prime residential districts timeless in their appeal, it is still not too late to buy a property in these swanky, plush neighbourhoods within a city that is becoming more enchanting and cosmopolitan. An urban oasis in Singapore’s private residential landscape, these prime areas offer a splendour and lifestyle like no other.

This article is contributed by Knight Frank Consultancy & Research Dept

Source : Business Times – 26 Sep 2008

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

Branded residences set to take off

Posted by luxuryasiahome on September 26, 2008

Still in its infancy, the branded residential market in Asia has the potential to grow, write DESMOND SIM and MELISSA SNG

COMING home to an immaculately kept apartment with all the creature comforts or having a beach retreat at your own private villa with all the attendant luxuries are all possible in a branded residential development – the marriage of a luxury residential development and a reputable brand.

Such brands are typically from the luxury fashion world of the likes of Armani and Bulgari, or from an established designer like Yoo or Starck. Then there are the luxury hospitality brands such as St Regis and the Ritz Carlton.

Branding is imperative to an individual seeking a specific lifestyle that the brand espouses. A branded residential development not only provides the investors ownership of a tangible real estate, it also encompasses the brand’s image and value-added services. Branded residences thus become the epitome of an affluent lifestyle given the exclusivity and recognition that these brands provide, in addition to the security, trust and extensive privileges and services which other unbranded luxury residential developments do not generally offer.

Branded residential developments could either be single or mixed use located within an urban or resort setting. They provide the buyers the opportunity to enjoy a full range of services rendered by a branded hospitality service provider.

The target market for branded residential developments is of course the well-heeled high end of society. These affluent individuals have experienced similar quality services elsewhere and now seek the same uncompromised high quality hospitality services in their home country.

Branded residential developments usually command a premium. This is because they offer the owners a distinguished appeal with exclusively designed developments and luxury hotel services and amenities. This premium is estimated to range from 20 per cent up to 40 per cent as compared to similar unbranded residential developments.

While the branded residential market in the US and Europe is quite mature, this market is relatively non-existent and is still in its developing stage in South-east Asia. It is therefore not impossible to expect countries such as Indonesia, Thailand and Singapore to witness the continual development of this market.

Branded developments prefer locating in areas with strong resort markets or cities that offer occupiers and investors the opportunity for a second home. For example, Bali and Phuket are favoured for their unique cultures and luscious beaches. Singapore on the other hand, offers the unique blend of a modern multi-racial city set in a tropical environment.

Rising affluence in Asia is another primary driver for this growth. According to World Wealth Report by Merrill Lynch and Capgemini, the number of high net worth individuals (HNWI) grew by 6 per cent while the Ultra-HNWI band grew by 8.8 per cent in population size in 2006 globally.

Asian countries recorded the fastest growth in terms of the number of HNWIs. India, China, South Korea, Indonesia, Singapore and the United Arab Emirates are in the top 10 markets in HNWI population growth. Other countries in this list include Brazil, Slovakia, Czech Republic and Russia. Collectively, Asia currently holds a quarter of the global high net worth individuals.

According to the same World Wealth Report, Asia’s high net worth wealth will grow at 7.9 per cent per annum and is projected to reach US$13.9 trillion by 2012. The Asia-Pacific region wealth market is expected to surpass Europe as the second wealthiest region after North America in the next five years.

Using real disposable income as an indicator of rising affluence, Asia as a region has the highest disposable income compared to West Europe and North America. As at 2007, the Asian disposable income has a 22 per cent and 47 per cent gap over North America and Western Europe respectively.

With rising affluence globally and regionally, demand for branded residential developments is likely to increase in tandem. Furthermore, it is the affluent from Asia Pacific that are most likely to spend on luxury items and judging by their investment portfolios, Asians have a greater affinity for tangible assets such as real estate and cash compared to their Western counterparts.

An investment in branded residential developments can be for personal occupancy or for income purposes which will help defray the carrying costs when these properties are leased. The demand for branded residential developments could therefore come from a mixture of high net worth individuals and institutions situated locally, regionally or across continents. Some examples of these investors include real estate funds, and individual investors from the Middle East, China, India, Indonesia and Eastern Europe.

It should be highlighted that investments in the branded residential development may differ from country to country.

With potential demand on the rise, the branded residential development market is set to grow in this region. While there is already an established market of branded residential developments in certain cities in South-east Asia, there is also a strong pipeline of branded residential coming on stream over the next few years. In terms of existing developments, the major players include St Regis in both Bali and Singapore and Four Seasons in Bali and Langkawi. Some other notable developments include Bulgari in Bali, Ritz Carlton in Bali and Marriott in Phuket.

Thailand seems to lead this market in terms of future supply. The St Regis Group and Regent Group will each open a branded residential development in Bangkok, Four Seasons and Shangri La in Phuket and Conrad in Koh Samui.

In addition, the St Regis Group and Regent Group is each developing a branded residential development in Kuala Lumpur while Singapore will welcome the completion of a Ritz Carlton branded residential development in the next couple of years.

The branded residential market in Asia is still in its infancy but the market has the potential to grow. We are already seeing a number of developments mushrooming around Asia.

There is also a strong investment demand from high net worth investors looking for branded products where price is not a major issue.

Desmond Sim is associate director of research and consultancy while Melissa Sng is research analyst, Jones Lang LaSalle

Source : Business Times – 26 Sep 2008

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

Spruce up your personal space

Posted by luxuryasiahome on September 26, 2008

IT’S NO secret that the upper echelons of Singaporean society love branded clothes, accessories and cars. But they crave designer labels on their furniture, too.

‘Interior design is increasingly geared towards incorporating branded furniture into personal tastes,’ said William Ong, executive chairman of Axis ID. ‘People are creating interiors that focus on their treasured items, and they are also willing to spend more on designer pieces.’

Premium furniture brand names like Poliform, Giorgetti, Minotti and Meridiani are making their way into local living rooms at an unprecedented pace.

Antonio Lupi bathroom fittings and SCIC kitchen cabinets have been installed in apartments and condos now come with Fendi Casa and Armani/Casa sofas and tables.

At Far East Organization’s Boulevard Vue, for example, buyers can have Poggenpohl kitchen cabinets and wardrobes, Antonio Lupi bathroom fittings and Toto Neorest water closets.

‘Many developers are looking to five and six-star hotels as their points of reference,’ said Grace Ng of real estate developer Colliers International. ‘More luxury items are being used, especially in high-end homes.’

Even traditionally non-furniture brands are looking to cash in on the rising demand for high-end homeware, parleying their existing properties into interior design ventures.

Bottega Veneta has branched out from handbags and wallets to create study desks in leather, while Ralph Lauren has diversified into gold cashmere-wool tweed throw pillows and velvet-upholstered lounge chairs.

‘We know clients who have paid thirty to forty thousand dollars for a dining set,’ said Mr Ong. ‘And there are those who pay upwards of twenty thousand dollars for a sofa set and consider it the norm. They don’t mind the high price, because they think it’s something they will enjoy using.’

Patty Mak of Suying Design said: ‘The high-end property homeowner wants interiors that are modern in terms of design language, but not minimalist in context.’

Homeowners are opting for furnishings that look rich, but not dated. According to Ms Mak, these include elaborate textures and prints on thick fabrics and embossed leathers.

‘Homeowners are keen on having items that make statements,’ she said. ‘It’s a joy for them to be able to showcase and own this type of furniture.’

Details should be simple yet sophisticated, declares Kunio Iwata, managing director of KKS International. Bold, natural materials, such as large stone in a rough finish, have replaced polished or laminated timber.

‘How one furnishes one’s home has become a benchmark of one’s success,’ explains Mr Ong. ‘Filling your home with exquisite furnishings, designer items and artwork represents the next level in sophistication.’

Why the shift towards such extravagance?

The trend could be explained by the increasingly global tastes of local consumers.

‘Clients nowadays are more enlightened, more well-travelled and more in tune with international design trends,’ said Eugel Yeo of Chik & Yeo Architects. ‘Increased affluence has also empowered them to make more discerning and bolder steps towards experimentation in design ideas.’

However, the prevalence of fancy fittings may also be attributed to soaring property prices. With the price of property through the roof, building cost now forms a relatively small percentage of a residence’s overall cost.

‘Property prices have shot up so much in Singapore,’ said Mr Ong. ‘If you have spent millions on your apartment, you want to furnish it in an appropriate way.’

Regardless of reason, it is clear that high-end property owners are hardly skimping on filling their homes with only the best and brightest of interior design names. Bathrooms are fitted out with imported rain showers and jacuzzi bathtubs, produced by companies like Laufen, Hansgrohe and Duravit – where toilet bowls can run up to US$1,300 apiece.

But a thousand-dollar WC does not a well-designed home make. Rather than just seeking extravagance, homeowners should look for a tasteful blend of furniture that is both elegant and practical.

‘Over-the-top, opulent decorative treatment that does not balance form is something that these buyers cannot relate to,’ said Ms Mak. ‘Homeowners need to feel that they can express their lifestyles in a simple language, and will seek to do so through a good selection of furniture, art and well-treated interiors.’

And it seems they are doing just that, splurging on luxury versions of every day items in order to integrate form with function.

Hoffen Designer wardrobe systems, for example, come in sliding, bi-fold and walk-in varieties. Their cabinet doors and drawers are equipped with ’soft-close’ mechanisms, which use shock absorbers to ensure that they shut slowly and soundlessly.

Even kitchen appliances have become high-end. Take, for instance, an aluminium Gaggenau coffee machine, which boasts a customised coffee strength selector and retails in Gaggenau’s online store for a whopping US$2,499 – on sale. Household appliances manufacturer Miele also offers graphic text displays on their ovens for convenient operation, and triple-glazed doors that are cool and safe to touch.

Ultimately, the message seems to be that quality is king. Many luxury pieces of furniture are painstakingly handmade, and are specifically designed to be timeless. ‘Craftsmanship is something that homeowners are willing to pay top dollar for,’ said Ms Mak.

People want to own what will last for the next five to ten years; and with the recent upsurge in affluence, they can. As Mr Ong puts it: ‘With high-end furnishings, quality is assured. And uniqueness is a given.’

Source : Business Times – 26 Sep 2008

Posted in General, Interior Design | Tagged: , , , , , , , , , , , , , , , , , , , | Leave a Comment »

Property prices, rents set to fall in Asian cities

Posted by luxuryasiahome on September 26, 2008

Property prices and rents in Asia’s financial centres of Hong Kong, Singapore and Tokyo are set to fall as banks scale back hiring and investments in the global financial turmoil.

But while banks lay off tens of thousands in the United States, in Asia they are more likely to step back from ambitious expansion plans, so property markets will slip rather than slide.

In Hong Kong, property agents were scrapping to clinch a deal to put new tenants into three floors at the IFC2 building occupied by Lehman Brothers, which could have won them as much as US$2million (S$2.8 million) in commission.

But with Nomura Holdings snapping up Lehman’s Asia operations, the Japanese bank will probably keep most of the space as its own Hong Kong office is in the same building.

However, a reshuffling of tenants in the city is still likely.

Although the Central district, dominated by landlord Hongkong Land, is chock-a-block, rents will probably fall by 25 per cent by the end of next year as cheaper new offices across the harbour hit the market, says Macquarie Securities.

‘There’s a lot of supply coming on to the market,’ said Mr Richard Pyvis, chairman of CLSA Capital Partners, which runs private equity property funds. ‘Just look at that big joint out there,’ he added, pointing across Hong Kong’s harbour to the 118-storey International Commerce Centre (ICC) built by Sun Hung Kai Properties.

With prime Hong Kong office rents almost quadrupling since Sars ravaged the economy in 2003, the likes of Morgan Stanley, Credit Suisse and Deutsche Bank have agreed to move to the ICC building.

But now they could choose not to take up options for more space, or even off-load some.

‘Lots of banks are committed to long leases but some tenants could look to sub-lease space like they did after the dot.com bubble burst,’ said a property agent who works with several global banks but asked not to be identified because of commercial sensitivity.

‘That will put pressure on rents.’

The situation is similar in Singapore.

A whole new office project called the Marina Bay Financial Centre (MBFC) is under construction, spurred by the creation of 50,000 jobs since 2004 as hedge funds and banks lapped up incentives to expand in the city-state.

A loss of a fifth of those new jobs would cause monthly office rents to fall 47 per cent and capital values to drop 34 per cent by 2012, according to UBS analyst Regina Lim. It would hit landlords such as City Developments and CapitaCommercial Trust.

Mr Wilson Kwong, general manager of the management firm for MBFC, said two-thirds of the 150,000 sq m of office space in the project’s first phase had been pre-leased, but conceded that some tenants might choose to sub-let space if they could not fill it.

The US$2 billion development, built by a venture between Cheung Kong Holdings, Hongkong Land and Keppel Land, will eventually provide over 300,000 sq m of office space.

‘Given the current uncertainty in the global economy, we expect some caution from larger corporations with their leasing commitments,’ Mr Kwong said.

‘But many international companies still see Asia as an engine of growth and are confident of Singapore’s role as a key hub in the regional and global financial systems.’

In Tokyo, more gloom will fall on the property market because Morgan Stanley and Goldman Sachs will probably scale back their Japanese property investments, said Credit Suisse analyst Yoji Otani.

As they switch to commercial banks regulated by the US Federal Reserve, the two investment banks are expected to sell high-risk assets such as properties and unlock equity in real estate funds to meet capital adequacy requirements.

Mr Otani predicted falling values will be accompanied by a 5 per cent fall in average Tokyo office rents next year and a 10 per cent drop for grade-B buildings.

Source : Straits Times – 26 Sep 2008

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

« Previous Entries