Q3 private residential property transactions rise 20%

Q3 private residential property transactions rise 20%

Dec 9, 2009 - PropertyGuru.com.sg

Singapore's private residential market experienced a strong surge in the third quarter, as the volume of transactions increased 20 percent over the second quarter.

According to property consultancy firm Savills, around 11,000 units were sold between July and September, mostly in the mid-tier and mass market sectors.

Projects like the Optima at Tanah Merah, Hundred Trees at West Coast, and The Gale at Flora Road benefited from this buying interest.

However, the high-end sector observed that the government’s implementation of the cooling-off measures and the limited number of launches eased off transaction volumes in the third quarter.

Behind the buoyant sales, prices of private properties increased 15.8 percent in Q3 - the sharpest quarterly rise in 28 years.

Even in the high-end sector, prices recorded two consecutive increases, despite being around 22 percent under the previous peak in the last quarter of 2007.

Savills said that it expects to have slow transaction volumes in the private residential sales market in the next few months, as purchasing activity tends to ease during the year-end holiday season and there will be fewer major launches.

However, island-wide prices of homes are expected to stay firm, with a modest increase from Q3 to Q4.

Meanwhile, office vacancy rates surged 12.5 percent in Q3. The figure was up by 2.5 percentage points from Q2, as 1.25 million sqft of new office space was completed.

According to Savills, net supply now exceeds net demand by around 1.2 million sqft. Companies stayed cost conscious in Q3 despite a more positive outlook for the economy.

Consequently, tenants relocating to seize the chance of transferring to new office buildings that give them a more competitive rental package largely led the leasing activity.

Looking forward, Savills said that the slow pick up of business confidence will prompt more companies to revisit or to expand their space planning needs that will result in an increase in the demand for leasing.



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Asian property funds to expand to $200 billion in coming years

Asian property funds to expand to $200 billion in coming years

Dec 9, 2009 - PropertyGuru.com.sg

Asia's property fund size will expand by over 50 percent to $200 billion in the next two to three years. This is fueled by demand from institutional investors from several countries including China, industry executives said.

Sovereign wealth funds, pension funds, and wealthy individuals would likely enhance their portfolios for property funds in the coming years after interests waned harshly during the sharp economic recession earlier this year, said the executives.

“The next 12 months will probably be a bit slow because we are still coming out of this difficult global situation, but then I think it will pick up more quickly after that,” said Nicholas Loup, Asia-Pacific chief executive of Grosvenor Limited, a UK-based private property group.

Fund managers from Asia have $130.9 billion worth of property assets under management, as shown in a survey conducted by the Asian Association for Investors in Non-listed Real Estate Vehicles, a non-profit organization that focuses on fund-related firms within the region.

This first-ever survey done by the association showed that the total global property funds have reached $409.6 billion. According to Loup, chairman of the association, Asia's fund size could easily generate $200 billion over the next few years, excluding risks outside the region, like debt issues faced by financial institutions in markets outside Asia.

“The big sovereign wealth funds in the region, the Chinese insurance companies, will start investing, (and) you'll see the Middle East looking more eastwards for their capital to be deployed,” said Morgan Stanley Asia Managing Director Willem de Geus.

Morgan Stanley, Australia's AMP Capital and Singapore's CapitaLand Financial are the top three property fund managers in Asia, composing nearly 40 percent of the total property funds in the region, the survey showed.

“We are doing some homework at the moment on domestic Chinese funds and domestic Indian funds. We haven't decided on anything yet,” said de Geus.

Property investment sales recover after slow start

Property investment sales recover after slow start

Dec 8, 2009 - PropertyGuru.com.sg

Investment sales of Singapore property recovered with a $9.4 billion year-to-date tally, after a slow start in the first quarter. CB Richard Ellis (CBRE) projects that the full-year figure will reach more than $10 billion after all transacted caveats in November and December have been lodged. However, the figure would only be around half of $17.9 billion in 2008.

Hitting investment sales deals of about $15 to $20 billion, property consultants anticipate 2010 to be a better year. Such transactions are the basis for the medium to long-term view of developers and investors to the property market.

Investment sales are defined by CBRE as transactions with a value of no less than $5 million, including landed residential property and apartments, private and government sales of buildings and land, both en bloc and strata. It likewise includes change of ownership of property through share sales.

“With 2010 expected to be a recovery year for the Singapore economy, investment sales could be in the region of $15 billion, similar to that of 2005. Economic fundamentals should start to catch up with the positive sentiments in the stock market and the residential market, with more stability in the financial and business sectors,” said Jeremy Lake, executive director for investment properties at CB Richard Ellis.

Chris Fossick, managing director of Jones Lang LaSalle (South East Asia and Singapore) said, “Investors are starting to focus on the recovery, and whilst still cautious about the short term, they are optimistic about the mid and long-term outlook of the Singapore real estate market.”

Most market watchers are expecting that the residential segment will lead the way for next year’s investment sales deals, with the Government scheduled to resume the sale of residential sites through its confirmed list from January. The collective sales market is also expected to be more active next year, after just one major deal this year (the $100.8m sale of Dragon Mansion).

According to Mr. Lake, investors' interest for retail malls in suburban areas continues to be strong.

“So the appetite for office space, which has been somewhat weak in the past 12 months or so, will pick up again. However, deal flow may be limited as many of the sellers who were keener to sell have probably already sold,” he said.

Shaun Poh, senior director for investment advisory services at DTZ, says there are reserved funds for office properties in 2010 but deal sizes will be limited to $200 to $300 million for each building. “Office investors are also more stringent, demanding initial property yields of at least 4-5 per cent, compared with 2-3 per cent during the 2007 boom. And they'll only look at buildings that are substantially leased, given supply overhang issues,” he added.

“The office market would likely see more investment activity next year as the rental slide eases or rents even begin to recover. And with credit loosening further, major institutions like real estate investment trusts could be priming themselves for further acquisitions, having addressed refinancing concerns,” said Karamjit Singh, Credo Real Estate managing director.

Sentosa Cove draws more transactions

Sentosa Cove draws more transactions

Dec 7, 2009 - PropertyGuru.com.sg

Homes in Sentosa Cove drew strong interest in the first 10 months of 2009 from high-net-worth investors. More properties costing over $10 million were transacted over this period compared to the last four years.

According to property consultancy firm Savills Singapore, its analysis of URA Realis data as of Dec 1 showed that September and October 2009 were noticeably active months. In fact, Sentosa Cove’s three largest residential transactions to date – at $20.18 million, $22 million and $30 million respectively – happened during this time. The biggest transaction involved a completed bungalow at Ocean Drive, which changed hands in October this year in the secondary market. The selling price of $30 million works out to $1,753 per sq ft, based on the 17,115 sq ft land area.

Two Chinese citizens, who are also permanent residents of Singapore, were the buyers of the bungalow, and the seller is a locally incorporated firm.

The second and third biggest deals were transacted in September, involving the subsales of two villas at Paradise Island for $22 million and $20.18 million.

In general, the analysis of Savills showed that the number of lodged caveats for homes in Sentosa Cove costing more than $10 million jumped to 24 in the first 10 months of the year – from just 17 between the last quarters of 2004 and 2008.

More than half or 14 of the 24 transactions were sealed in September and October. According to the firm, a more optimistic outlook for the global economy at the time, before the recent debt problems of Dubai World, enhanced investor’s confidence in making big-ticket purchases like super-luxury homes.

Savills said that the stable recovery of Singapore’s economy in the past few months and the renewed prominence of the Republic on the global financial map have boosted optimism among investors to invest monies here.

Steven Ming, Savills director of investment sales & prestige homes, offered another reason for the flow of transactions in October. He related the anecdotal evidence that some high-net-worth mainland Chinese were in Singapore to shop for properties during their National Day Golden Week holiday.

Overall, the total number of caveats lodged for private homes in Sentosa Cove increased to 133 in the first 10 months of 2009 from 72 in the whole of 2008. Nevertheless, the latest figure is just 26 percent of the peak in 2006, having a record of 516 transactions.

Savills also confirmed that the bulk of transactions in 2009 were in the resale and subsale markets. Deals in the primary market, which involved developer sales accounted for just 9 percent of caveats. This reflected the limited release of new projects in 2009.

Ong Choon Fah, DTZ executive director (consulting), believes that prices of homes at Sentosa Cove will continue to appreciate in 2010, although a lot will depend on the wider property market. “Prices in Sentosa Cove could be more volatile than in the prime districts on the mainland because Sentosa Cove buyers are relatively more investment driven than motivated by owner occupation, compared to the prime districts. When markets go up or down markedly, investors may be more inclined to sell than owner-occupiers, whether it is to cut loss or realize a gain,” she said.

Singapore property prices increasing

Singapore property prices increasing

Dec 7, 2009 - PropertyGuru.com.sg

The dramatic rebound of the real estate sector in Singapore, including the renewed interest of foreign buyers, has become a big concern to government officials. This resulted in new measures being created to stop property speculations. The government’s earlier measures to boost the housing market were successful, and its effort to slow it down is working as well.

After the prices of residential property in Singapore increased 15.75 percent in the third quarter this year, the government warned against property speculations, as well as the formation of property bubbles. From 953 housing units sold in the fourth quarter of last year, home sales surged to 10,120 units in the second quarter and 11,518 units in Q3 2009 this year.

After strengthening from 2005 to 2007, home prices in Singapore declined in 2008 due to the global recession. As global demand plummeted, Singapore’s economic condition shrank 9.5 percent in 2008 to the first quarter of 2009, and there was a 24.9 percent fall in home prices during the year to the second quarter of 2009.

In Q3 this year, Singapore’s economic cycle reversed and GDP increased by 0.8 percent year-on-year. Prospects of an economic stability, combined with low borrowing costs, triggered the massive increase in home prices.

With this, the government warned that it will manage the housing cycle.

In September, the government implemented measures to cool down the housing market, including policies, making it difficult for all households to defer mortgage payments.

“We do want to manage the property cycle as best we can, prevent boom and bust,” said Finance Minister Tharman Shanmugaratnam, admitting that it’s uneasy to foresee the property needs of the country. The government is reviewing the use of other measures to manage the home price cycle, such as modifying rules on credit, adjusting land supply and in extreme cases, amending the tax policies of the country.

The MAS also noted in its Financial Stability Review released in November: "As Singapore emerges from recession and with the market expecting low interest rates to persist for some time, the risk of a renewed escalation of speculative momentum cannot be discounted."

Singapore and Hong Kong investors expect portfolio value to rise

Singapore and Hong Kong investors expect portfolio value to rise

Dec 4, 2009 - PropertyGuru.com.sg

Based on a survey done by Barclays Wealth on high net worth individuals, Singapore and Hong Kong investors are very much interested in properties. In fact, HK investors have apportioned 25 percent of their portfolios to property.

Both groups are expecting to allocate a larger portion of their portfolios to property by around 3 percentage points for the next two years.

They cited that capital appreciation and potential yield are two primary advantages of investing in residential properties.

According to Barclays Wealth, it expects that the demand of investors for property will remain relatively strong due to the loosening of liquidity and economic recovery. However, it noted that diversification is vital to any investment portfolio.

“At the end of the day, 25 per cent concentration for a Singaporean respondent is a fairly high part of the portfolio to invest in one asset class – one which, depending on the specific instance, could be potentially illiquid. That's a higher number than what we would be recommending,” said Manpreet Gill, Asia strategist, Barclays Wealth.

“At this point in time, we think it makes sense to invest in risky assets, which will include property, but also other asset classes like equities. We think diversification is a very important part of what clients and investors should be looking at today. That's one of the important findings of our survey.”

Barclays also noted that property does not usually deliver high long-standing returns as an asset class.

In Singapore, Barclays anticipates rising price trends in the mid- to higher-end segments of the market, where prices of properties have taken a hit due to the global credit crunch.

Barclays conducted the survey in August and September. It polled more than 2,000 respondents from across the world, including India, Spain, the US and the UK.

Six whole floors purchased at Marina Bay Suites preview

Six whole floors purchased at Marina Bay Suites preview

Dec 3, 2009 - PropertyGuru.com.sg

About half a dozen floors at Marina Bay Suites were sold during last week’s preview. Its buyers are believed to be Singaporeans, Indonesians and other Asians.

The biggest transaction recorded in the preview was about $45 million, including at least two whole floors that were purchased by an Indonesian party.

Some market watchers believe it could cost buyers between $17million and $18 million to buy a whole floor at the 99-year leasehold condo based on last week’s selling price.

Each floor has four apartments, two three-room units and two four-room units. The total area per floor is about 8,000 square feet.

Thomas Tan, head of marketing (residential) for Raffles Quay Asset Management (RQAM), said 87 out of 90 units released for preview were purchased. The total amount made from the sales is approximately $400 million.

Two-thirds of the total units were purchased by Singapore residents, including PRs. The remaining units were bought by non-PR foreigners, including Malaysians, Indonesians, Americans, Australians and mainland Chinese.

“We do have multiple-unit buyers, but due to client confidentiality and privacy reasons, we are unable to reveal such information,” said Mr. Tan when asked about the buyers.

RQAM is the asset manager for Marina Bay Suites, which is being developed through a joint venture between Cheung Kong Holdings, Hongkong Land and Keppel Land.

Mr. Tan declined to share the details but reiterated that “the average price range was between $2,200 psf and $2,500 psf.” It was understood that the selling price of the 90 units were close to $2,300 per square foot (psf).

However, the range of the apartments that were sold could be about $1,800 psf to over $2,600 psf.

Mr. Tan said the apartments that were released at last week’s preview were located at the 7th to 40th plus floors of the 66-storey project.

Marina Bay Suites consists of 218 three- to four-room units and three penthouses. The construction of the project is set to begin in the first-half of next year.

“We have no immediate plans to release more units for the rest of this year but we'll continue to register interested buyers. We'll monitor the market and determine the price at the time of launch,” said Mr. Tan.

Six whole floors purchased at Marina Bay Suites preview

Six whole floors purchased at Marina Bay Suites preview

Dec 3, 2009 - PropertyGuru.com.sg

About half a dozen floors at Marina Bay Suites were sold during last week’s preview. Its buyers are believed to be Singaporeans, Indonesians and other Asians.

The biggest transaction recorded in the preview was about $45 million, including at least two whole floors that were purchased by an Indonesian party.

Some market watchers believe it could cost buyers between $17million and $18 million to buy a whole floor at the 99-year leasehold condo based on last week’s selling price.

Each floor has four apartments, two three-room units and two four-room units. The total area per floor is about 8,000 square feet.

Thomas Tan, head of marketing (residential) for Raffles Quay Asset Management (RQAM), said 87 out of 90 units released for preview were purchased. The total amount made from the sales is approximately $400 million.

Two-thirds of the total units were purchased by Singapore residents, including PRs. The remaining units were bought by non-PR foreigners, including Malaysians, Indonesians, Americans, Australians and mainland Chinese.

“We do have multiple-unit buyers, but due to client confidentiality and privacy reasons, we are unable to reveal such information,” said Mr. Tan when asked about the buyers.

RQAM is the asset manager for Marina Bay Suites, which is being developed through a joint venture between Cheung Kong Holdings, Hongkong Land and Keppel Land.

Mr. Tan declined to share the details but reiterated that “the average price range was between $2,200 psf and $2,500 psf.” It was understood that the selling price of the 90 units were close to $2,300 per square foot (psf).

However, the range of the apartments that were sold could be about $1,800 psf to over $2,600 psf.

Mr. Tan said the apartments that were released at last week’s preview were located at the 7th to 40th plus floors of the 66-storey project.

Marina Bay Suites consists of 218 three- to four-room units and three penthouses. The construction of the project is set to begin in the first-half of next year.

“We have no immediate plans to release more units for the rest of this year but we'll continue to register interested buyers. We'll monitor the market and determine the price at the time of launch,” said Mr. Tan.

Singapore is the 9th most expensive Asian city

Singapore is the 9th most expensive Asian city

Dec 3, 2009 - PropertyGuru.com.sg

Singapore now belongs to the list of top 10 most expensive Asian cities for expats, due to the strengthening Singapore dollar.

A survey by ECA International, a human resource consultancy firm, showed that Singapore is now the ninth most expensive city in the region.

Last year, the city-state claimed the twelfth spot.

ECA International said the cost of living for tourists in Singapore is also increasing with that of its neighbouring countries.

Singapore’s cost of living last year was 15 percent lower compared to Hong Kong. But now, the difference is only 7 percent.

Lee Quane, regional director of ECA International, said the rise in the cost of living is unlikely to prevent several firms from relocating their staff in the country.

Tokyo remains in top spot as the most expensive location for expatriates, as Japan’s stronger currency has outweighed the impact of its deflation rates.

Dragon Mansion sold for $101 million

Dragon Mansion sold for $101 million

Dec 2, 2009 - PropertyGuru.com.sg

A unit of Roxy-Pacific Holdings bought the Dragon Mansion located at 18 Spottiswoode Park Road for $100.8 million, including the development charge (DC). This works out to around $863 per sq ft per plot ratio (psf ppr).

The property has become the first successful collective sale in Singapore for 2009.

In July, CKS Property launched a tender for the site, after 80 percent of the owners consented to proceed with the en bloc sale.

This collective sale is still subject to approval from the Strata Titles Board. Each owner of the 72-unit apartment with three bedrooms is expected to receive $1.4m from the proceeds of the sale.

The entire 42,000 sq ft land area of the freehold site is designated for residential use with a 2.8 plot ratio. The new development could possibly accommodate around 120 units of apartments with a size area of 1,000 sq ft, said CKS Property Consultants.

According to property brokers, the sale price reflects the limited availability of freehold residential land close to the Central Business District, and introduces a new benchmark for the Spottiswoode Park area.

Rich people prefer investing in property

Rich people prefer investing in property

Dec 2, 2009 - PropertyGuru.com.sg

Rich people are more likely to invest in properties, which are now considered as better opportunities for long-term returns than bonds and stocks, according to a recent survey done by Barclays.

The global survey shows that several people are now planning to increase their investments in commercial and residential properties.

Those with over $800,000 to invest are leading the race for property investments and their willingness to invest in the real estate market has amazed researchers.

“I was surprised how big a share of their wealth property represents,” said Mike Dicks, research head for Barclays Wealth.

With the global recession pushing property prices down in every region except parts of Asia, it is an assumption that properties are now undervalued, which has become one of the reasons for increasing investments.

Property investment for wealthy individuals is set to increase to 30 percent by next year, from the current 28 percent, according to the survey. This does not include properties used as principal residences.

The survey also showed that wealthy investors are unwilling to sell properties at short notice and may be less careful in measuring its performance as an asset.

Investors from the Gulf region as well as in Canada are likely to increase their real estate allocations, with a four percent increase being put into the real estate market.

The survey also indicated that Spain is the only country where most individuals prefer to lessen the proportion of their real estate investments. About 60 percent of wealthy individuals in Spain have more than half of their wealth tied up in the property market.

About 30 percent of Indian and British investors have more than half of their total wealth associated in real estate while 40 percent of the total respondents with over £30 million have a similar allocation.

Three out of four investors said residential property looks attractive while two-thirds prefer to invest in commercial real estate. However, about 75 percent said they feel hampered by borrowing costs.

The United States is currently the most attractive location for real estate investors outside their own country, as it's regarded as having the highest potential for investment returns.

Singapore plunges to 32nd spot in the global office rental price list

Dec 2, 2009 - PropertyGuru.com.sg

In Singapore, office rental prices declined significantly, causing the country to fall to the 32nd spot in a list of the most expensive office rental markets around the world.

Previously, Singapore was in 9th place on the list a year ago and took the 15th spot in June 2009.

Singapore saw a 53.4 percent year-on-year decline in rents, said property consultant CB Richard Ellis (CBRE).

The office occupancy cost in Singapore now stands at US$63.89 per sq ft per annum. In 2008, rents in the country stood at US$135.13 per sq ft per annum. Singapore experienced the second steepest year-on-year decline in rentals – only behind Kiev, which dropped by 64.4 percent.

London's West End is once again the most expensive office market in the world, with rents at US$184.85 per sq ft per annum.

The Inner Central district in Tokyo came in second, with its Outer Central district in the number three spot.

Rounding up the top five are the central business district in Hong Kong in the number four spot and Moscow finishing at number five on the list.

Office markets around the world are going through declines in prime office occupancy prices, said CBRE.

In general, prices of prime office occupancy saw an average of 7.7 percent year-on-year drop worldwide.

Affordability remains a key factor in purchasing property

Dec 1, 2009 - PropertyGuru.com.sg

The rising housing prices and upturn in the economy makes 34-year-old communications manager Lisa Low worried.

She fears that when she finally finds her dream home, she may not have enough money for the cash-over-valuation (COV) that resale unit buyers must pay.

"Is there such a thing as affordable property in Singapore today? With skyrocketing COV, I wonder if I'm able to fork out the $10,000 to $20,000 upfront," said Ms. Low, who resides in Bedok.

According to Mark Teo, senior group division director of ERA Realty Network, potential home owners like Ms. Low are considering several factors prior to buying a property.

Affordability is still a key factor.

First-time buyers who qualify for the HDB criteria can make "the most economic sense" by passing their application for a flat directly from the HDB, since they may spend up to three times more for private properties than for public housing.

Home buyers can benefit from the housing-loan interest rates and subsidized prices that remain the same for an extended period, Mr. Teo said.

At present, there is an annual interest rate of 2.6 percent.

According to Nicholas Mak, a real- estate lecturer at Ngee Ann Polytechnic, the 99-year condos and second-hand executive condominiums are also attractive.

“Executive condos that are five to 10 years old are slightly cheaper and come with all the amenities of full-fledged condos, like carparks, swimming pools and tennis courts,” Mr. Mak noted.

“Ninety-nine-year condos are also cheaper but they may not be as conveniently located.”

Ultimately, selecting a property depends on the buyer’s personal savings from the time of purchase to their earnings in the future.

"As a rule of thumb, it is not prudent for anyone to use more than 40 per cent of their income to service their monthly home installment,” said Mr. Teo.

However, Mr. Mak said that primary residences do not usually make good investments, as they are only chosen for their proximity to certain amenities or schools.

Mr. Teo suggested that investors who can spare $1 million should consider condos in the Tiong Bahru area, which has 3 to 4 percent rental returns, a relatively high figure.

Google Street View in S'pore

http://www.todayonline.com/singapore/EDC091203-0000076/Google-Street-View-in-S-pore


Google Street View in S'pore
05:55 AM Dec 03, 2009
SINGAPORE - Google Street View has arrived - making this the first country in South-east Asia to have a virtual street guide based on photographs.

Cars fitted with cameras went around Singapore earlier this year to take the shots. The technology by Google allows users to view and navigate 360-degree street-level imagery, including the country's most iconic sights.

Google said that faces and licence plates are blurred out, and one can see what already is visible on public roads.

The Web-based application can also be used on mobile phones. Businesses and organisations can add their own listings to the application for free.

Google Street View was launched in 2007, and is currently available in 100 cities around the world. Countries in the Asia-Pacific region that already have Street View are Japan, Australia and New Zealand. Hoe Yeen Nie

More global partnerships for S'pore

http://www.todayonline.com/singapore/EDC091203-0000080/More-global-partnerships-for-S-pore


More global partnerships for S'pore
by Cheryl Lim cheryll@mediacorp.com.sg
05:55 AM Dec 03, 2009
SINGAPORE - The local media industry is fast becoming a leading hub growth sector.

At the Asia Media Festival, more than $10 million worth of deals were signed between local firms and international partners this year.

The Media Development Authority (MDA) said this represents a major vote of confidence in the Singapore media industry.

Partnerships between Singapore and international media companies produced more than 10 official projects this year, and more are set to take place between Singapore firms and partners in the United Kingdom, Australia and China.

Singapore, China and the UK will co-produce a documentary called "Monumental Challenge".

The project sees Singapore's Oak3 Films, UK's MediaLab and the History Channel and China Intercontinental Communication Centre working together.

The documentary will consist of six one-hour episodes produced in High Definition how six of the world's greatest monuments are being restored.

Xinya Media and StarHub announced that they will work towards providing China-made media content and productions to the local market. This will include shows from the various genres like music shows and teen idol dramas.

An agreement between Singapore's MyChinaChannel and Shanghai Media Group's distribution arm Wings Media will see both sides co-producing two infotainment television series.

In addition, three new proposals have been selected for development under the MDA-ScreenWest Cross-Media Development Initiative.

The proposals are "Potted Histories" by Australia's Great Western Entertainment and Singapore's Infinite Frameworks, "Are You Smarter than Nature" by Australia's Sea Dog Films and Singapore's Very Productions, and "Global Sound Hunters" by Australia's Circling Shark Productions and Singapore's Xtreme Production.

Also, Singapore media companies can now seek closer collaboration with their Japanese counterparts with the signing of an MOU between Technology Seed Incubation and Singapore's Thymos Capital.

The two companies will identify and pair up promising media companies from both countries to co-develop and distribute mobile games and applications, new media technologies and animation productions for the global market.

The MDA has also launched a new initiative, jointly-funded by South West Screen, its counterpart in the south-west of England. This will see more than $100,000 invested towards multi-platform and cross-media projects.

Mr Mark Leaver, director of development, South West Screen said: "We have come up with some very interesting applications that work on mobile or applications that help you have a sense of where you are in the world, like the GPS."

The MDA said such collaborations reflect growing demand for original media content with an Asian perspective.

The MDA is also putting focus on the three-dimensional media market.

Mr Christopher Chia, MDA's chief executive officer, said: "The first two to three years will be experimental. There will be some countries and some companies that will try first, just to test the market ... "So we hope to be one of the earliest ones, to see what it could mean for the television viewing public - first in Singapore, and then for the rest of the world."

This year's Singapore Pavilion at the Asian Television Forum will showcase Singapore's end-to-end production of 3D content.

The announcements were made at the Asian Television Forum - the anchor event of the annual Asia Media Festival, a premier trade event hosted by the MDA.

Don't be taken in by HK scam

http://www.todayonline.com/singapore/EDC091203-0000116/Don-t-be-taken-in-by-HK-scam




Don't be taken in by HK scam

Elaborate new ruse looks like Hong Kong tourism flyer
05:55 AM Dec 03, 2009


SINGAPORE - A new and elaborate version of the lucky draw scam has surfaced here. This one uses fancy brochures to trick Singapore victims into believing they have won a prize from the Hong Kong Tourism Board.

In a typical lucky draw or lottery scam, the culprits call or email victims and trick them into believing they have won prizes.

But in the new variation - which the police say has surfaced in the past month - the victims are first informed through phone calls that they would be receiving letters containing a brochure allegedly issued by the Hong Kong Tourism Board.

Through the brochure, the victims are told they would be given a chance to take part in a "Scratch and Win" lucky draw, with a top prize of HK$500,000 ($89,000) in cash, conducted by the board in commemoration of its 30-year anniversary.

In most cases, the victims who removed the scratch-off label would find the winning lucky draw code of "HK6888" - leading them to believe they have won the top prize.

To claim their prizes, however, the victims would have to call a Hong Kong telephone number. And if they do so, they would be instructed to pay various fees so that the "winnings" can be released.

After remitting several payments to the culprits, the victims would eventually catch on to the scam.

According to the police, the Hong Kong Tourism Board "does not conduct any lottery advertising activity by telephone or mail".

Members of the public who encounter the scam should should inform the police immediately.



More information on scams: www.spf.gov.sg and www.cad.gov.sg.

Finance Ministry, too

http://www.todayonline.com/singapore/EDC091201-0000069/Finance-Ministry-too


Finance Ministry, too
05:55 AM Dec 01, 2009
Tell the Ministry of Finance what initiatives you would like Budget 2010 to include, to enhance the economy while being the best home for all Singaporeans.

Launched yesterday, the feedback exercise in partnership with Reach invites the public to share both their general feedback and specific suggestions at www.singaporebudget.gov.sg; via SMS at 9-Speak-Up (9-77325-87); or via phone (1800-226-0806), fax (6332-7435) or mail (Ministry of Finance, 100 High Street, #10-01 The Treasury, Singapore 179434).

Dialogue sessions and school debates will also be organised.

HDB accidents drop

http://www.todayonline.com/hotnews/EDC091201-0000083/HDB-accidents-drop


HDB accidents drop
05:55 AM Dec 01, 2009
The Housing and Development Board's accidents rate dropped for the first nine months of this year, despite there being more construction and upgrading projects. The figure of 0.36 accidents per million man-hours was much lower than last year's rate of 0.52, and far below the industry average of 2.9.

However, the HDB will further drive workplace safety efforts, as it opens up the construction market to consultants and contractors who are new to HDB works and, thus, unfamiliar with its safety requirements.

Worksite briefing, safety assessment and checks have been stepped up, while four contractors have been taken to task for not following proper construction procedures: They were fined and barred from bidding for jobs for between three months to a year. BYRON HO

Set commission, scope of work?

http://www.todayonline.com/hotnews/EDC091126-0000092/Set-commission-scope-of-work


Set commission, scope of work?

These are among several suggestions for new regulatory framework
by Tan Hui Leng
05:55 AM Nov 26, 2009
SINGAPORE - A property seller signs a commission agreement to pay the property agent 2 per cent on the deal but later complains to the Singapore Accredited Estate Agencies (SAEA), saying that he should not be paying so much as the agent had not "fulfilled his responsibilities".

A scenario like this could soon become a thing of the past if a proposal - that the Government set a standard commission guideline and implement a standardised form that sets out what an agent is expected to do - becomes part of a new regulatory framework for the real estate industry.

"We would usually ask what is the scope of work committed in a commission agreement but there's usually nothing more than that of an agent who will procure a buyer for the seller," said SAEA chief executive, Dr Tan Tee Khoon. "When this is done, his work is done."

With agents' commissions being a touchy issue, it comes as no surprise that one suggestion the Ministry of National Development (MND) has received in its public consultation on the regulatory framework is that of regulating the commission rate of property agents.

Some respondents suggested that the Government should set standard commission guidelines to curb undercutting among agents and protect less-educated consumers from being overcharged.

The public consultation - carried out between Oct 13 to Nov 17 - drew over 200 independent comments and suggestions, some of which may not be feasible, said industry players.

The suggested commission fee guideline for one, may not be viable. There was already such a guideline from the Institute of Estate Agents (IEA) previously but it was removed last year because the Competition Commission of Singapore had deemed it to be anti-competitive.

"The consumer feedback may not be in the spirit of existing laws or rules, it is also in the consumers' favour to let the market dictate," said PropNex chief executive, Mr Mohamed Ismail.

IEA president Jeff Foo, however, is for restoring the fee guideline as it would help consumers gauge the market rate for commissions.

Other suggestions to regulate the industry include standardising real estate industry practices; limiting the size of agencies for better control of agents; and disallowing agencies and agents from direct buying of properties from sellers or developers.

The last point is a breach of "basic human rights" to invest, said Dr Tan. This should be allowed as long as there is proper disclosure and the transaction is above board, he added.

In general, the public was supportive of key features proposed, including mandatory accreditation of agencies and agents; maintaining a public central registry for accredited agents; setting up an independent tribunal specialising in the industry; and introducing a demerit points system for errant agents.

MND will consolidate views from various channels when refining the regulatory framework - with the key elements expected to be announced early next year.

Too early to give a rollback date

http://www.todayonline.com/hotnews/EDC091124-0000053/Too-early-to-give-a-rollback-date

Too early to give a rollback date

05:55 AM Nov 24, 2009

SINGAPORE - Measures taken to cool the property market seem to have had the desired effect, said National Development Minister Mah Bow Tan, who signalled that the Government may remove certain anti-speculative measures in future if the property market stabilises or weakens - but it is yet too early to say when.

Mr Mah noted that since steps were introduced, starting with the ban on the Interest Absorption Scheme (IAS) and Interest-Only Loans, private home sales fell 37 per cent on-month in September and another 29 per cent last month.

The Government also reinstated its Confirmed List for its land sales programme in the first half of 2010.

It will continue to monitor the market closely to assess its response to the measures, before deciding whether further anti-speculative steps are needed, Mr Mah told Parliament.

"We want to curb erratic spikes in prices due to excessive speculation, inaccurate information or market manipulation. But we must let market forces determine prices, based on genuine demand from home-buyers and investors," he stressed.

Credo Real Estate managing director Karamjit Singh reads this as meaning that the property market should function with minimal intervention. "It's difficult to say when the Government would reinstate the (IAS and interest-only loans), since the property market changes year to year. The measures may be recalled to prevent a meltdown, but I don't see that happening in the short term," Mr Singh said.

PropNex CEO Mohamed Ismail, who credited the Government's action with bringing "sanity to the property market" by curbing speculators, concurred: "We do not think it is necessary for IAS restoration within the next one year." Yasmine Yahya and Esther Fung

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'Buffer flats' for urgent needs: Mah

http://www.todayonline.com/hotnews/EDC091124-0000073/Buffer-flats-for-urgent-needs-Mah

'Buffer flats' for urgent needs: Mah

by Esther Ng

05:55 AM Nov 24, 2009

SINGAPORE - To meet the demand for public housing, the Housing and Development Board (HDB) projects it needs to build some 10,000 to 12,000 flats annually over the next five years.

That should provide sufficient flats for all first-time homebuyers, usually young couples, National Development Minister Mah Bow Tan said in Parliament yesterday.

But even as the HDB anticipates demand, does it do enough to meet the housing needs of those who book their flats and have to wait until they are built?

MP Cynthia Phua (Aljunied) asked if the Government would set aside 10 per cent of new flats as buffer accommodation. "There are a lot of families who are in urgent need of a home over their head, for example, a pregnancy before marriage," she said.

As this and other housing issues got an airing in Parliament, Mr Mah revealed for the first time that while the policy does not set out to have a buffer, in the "scheme of things" a buffer of that size already exists.

"These are the flats which are available from other programmes like Sers (Selective En bloc Redevelopment Scheme) flats and some buy-back flats," he said. Flats marked for redevelopment, and which have yet to be demolished, are available through a managing agent at "reasonable rentals".

In addition, there are now 2,000 flats available under the Sale of Balance Flats and extra flats from the Build-To-Order (BTO) scheme.

"We will build when, say, the take-up rate is 70 per cent, so there will always be another 30 per cent not taken up ... Once the programme is launched, we will put this 30 per cent on the market for sale," he said.



BTO projections are flexible

The BTO scheme, Mr Mah added, may rely on HDB's medium-term projections but is flexible enough to be ramped up.

For example, HDB is offering 13,500 flats this year, up from the 6,000 originally planned, due to strong turnaround in the second half of the year.

"If the take-up of BTO flats remains strong, we will continue to push out more flats under BTO next year - at least one every month if necessary," he said.

PropNex CEO Mohamed Ismail believes the current HDB supply and projections are "adequate", and

that any more would be an "oversupply" which could "dampen the asset value" of flats, given that there is a "continual supply of resale flats".

But should the economy recover well, a buoyant resale market would result in buyers having to pay more cash above flat valuations, he said.

"In that case, the Government should be prepared to release more than the projected number of 12,000 flats per year," he said, as newly-married couples would not have enough cash on hand.

Mr Mah noted that 80 per cent of new flat buyers pay for their mortgage loans fully using their Central Provident Fund monies.

His message for new home buyers, though: Do not expect to walk into HDB and buy a ready-to-move-in flat as soon as they get married, even with a buffer stock.

They can shorten the waiting time by booking a new flat ahead of their marriage under the Fiance-Fiancee Scheme, and move in once they get married. "Forty per cent of first-time flat buyers make use of this scheme today," he said.

Those who want a flat immediately upon marriage can buy a resale flat, using housing grants.

Member of Parliament Lam Pin Min (Ang Mo Kio) wanted to know if the HDB would refund the registration deposit under the Fiance-Fiancee Scheme, if matrimonial plans "genuinely" failed.

To laughter in the house, Mr Mah wondered how Dr Lam would define "genuine", but added that his ministry would "look into it, as (they) have always done".

 

Higher property taxes in 2010

http://www.todayonline.com/hotnews/EDC091119-0000116/Higher-property-taxes-in-2010  

Higher property taxes in 2010

To cushion the rise, Govt to give a one-off rebate of 50%

by Esther Ng

05:55 AM Nov 19, 2009

SINGAPORE - Expect to pay higher property taxes next year, but the rise will come with some cushioning. The Inland Revenue Authority of Singapore (Iras) has announced that it is raising the Annual Value (AV) of Housing Development Board (HDB) flats.

The move comes on the back of rising resale prices and rents.

The tax authority noted that while rents for HDB flats have stabilised after a moderate decline between the end of last year and the middle of this year, rentals have begun to rise since.

"As a result, current values of HDB rentals, as well as HDB resale prices, are still significantly higher than levels observed in 2007. The AVs of HDB flats will therefore have to be adjusted," said Iras.

The last time there was a revision in the AV for HDB flats was in January last year.

Even though HDB rental increased by up to 37 per cent last year relative to 2007, Iras deferred adjusting the AV for the start of this year because of the "uncertainty in market rental trends" in a recession.

To help HDB flat owners cope with the increase in January, the Government will give a one-off property tax rebate of 50 per cent of the tax payable, capped at $120. This applies to all those who live in the flats they own.

To help those in smaller flats, Iras will offset the total tax amount for households which have to pay property tax of $50 or less. This would mean that two-roomers will not need to pay property tax.

"It will help soften the blow," said real estate consultant Nicholas Mak.

He added that owner-occupiers of HDB flats will not be affected that much as "property tax on HDB is lower than (that of) private property".

On average, the increase will in property tax will be $72 for three-room flats, $97 for four-room flats, $107 for five-room flats and $103 for those in executive flats.

For those renting out their HDB flats and who will not receive the rebate, Mr Mak said that with demand still buoyant from the immigrant population, the "increase in rentals could offset the increase in AV". As of March this year, HDB has approved 22,754 applications by owners to rent out their units.

The Government will have other help measures for the "down-and-out", added Member of Parliament Ho Geok Choo, a Government Parliamentary Committee member for national development.

A higher AV may also have implications for inflation, although economists were mixed about the expectations of the

impact

"It will be benign because underlying inflation is low," said DBS economist Irvin Seah.

While others expect headline inflation to go up, unlike in Jan 2008 - when the government last raised the AV of public flats - it will not hit the heights of 6.6 per cent then.

"The housing component is a large contributor to the CPI basket and inflation might reach 2 to 4 per cent by the first quarter," said CIMB-GK economist Song Seng Wun, who added, though, that higher food, utility and COE prices could present greater upside pressure.

 

When To Tax Property Gains

Straits Times July 8, 2009

When to tax property gains

By Goh Eng Yeow

A PROPOSED change to income tax laws will make clearer to property sellers when they will be taxed on their profits.

Anyone who sells only one property in any four-year period will not be taxed on his profit, according to a proposed amendment to the Income Tax Act.

But if he sells another property within four years of the first sale, the profit from the second sale may be taxable.

If the proposal becomes law, it will provide certainty for owners who now cannot be sure if the taxman will come calling after they sell.

Under existing rules, an individual does not pay tax on gains made from selling a property unless the taxman decides that he is trader - someone who buys and sells multiple properties within a short time span. And there is no way for the seller to know in advance if he might be deemed a trader.

The new way of taxing property profits is one of many changes listed in a draft Income Tax (Amendment) Bill 2009 put up for public feedback last month by the Finance Ministry. If implemented, the change will take effect from January.

A ministry spokesman told The Straits Times on Tuesday that the proposed change aims to provide certainty of non-taxation to individuals who own property.

Once it takes effect, the individual who sells a property for a profit can be sure that his gains will not be taxed - provided he had not sold any other property in the previous four years.

If he sold other properties within that period, the spokesman said, the Inland Revenue Authority of Singapore (Iras) will decide whether he should be taxed, 'based on the facts and circumstances, no different from the present tax treatment'.

The draft Bill can be read at the Finance Ministry website www.mof.gov.sg and the public has up to next Tuesday to give feedback. The Bill is expected to go before Parliament later in the year.

New Homes Set To Raise Level Of City Centre Buzz

June 1, 2008

New homes set to raise level of city centre buzz

With office units in short supply, condos make a good option for investors: Analysts

By Jessica Cheam

Singapore's city centre is set to get bigger and bolder in the next decade, with the injection of around 23,000 homes that promise to take the buzz to another level.

And if Singapore's urban planners have their way, more office buildings will sprout at Marina Bay, along with mixed-use developments in the Beach Road and Ophir-Rochor areas - bringing people closer to their jobs.

All this will come to pass while hotels and lifestyle hot spots in Little India and the Singapore River surroundings ensure that the city teems with activity.

And even if you need a quick getaway from the city's frenzy, green open spaces such as the upcoming Gardens by the Bay and Esplanade Park are all within walking distance.

This vision for Singapore's 1,650ha central area was unveiled by the Urban Redevelopment Authority (URA) last week as part of its latest masterplan, which outlines Singapore's land use over the medium term.

With all these grand plans and more, is it time for investors to hunt within the city for a good buy?

Property experts say this depends on the location of the property, the timing and how quickly URA's blueprint materialises in the next few years.

Let us start with the Central Business District (CBD).

Office space investments are limited, although there are some strata-titled commercial units available, such as those at The Arcade in Raffles Place and International Plaza in Tanjong Pagar.

However, there is only a small pool to shop from, and units in good locations could be beyond the reach of the average investor. Units at The Arcade, for example, changed hands at around $5,000 per sq ft (psf) at the end of last year.

Knight Frank director of research and consultancy Nicholas Mak said there are 'very few good strata-titled office spaces in the city'. A more obvious choice would be to shop for homes.

With the government's latest strategy to repopulate the city centre and bring people closer to their jobs, investors can rest assured that this pool will only get bigger.

Some projects that have already been launched include The Sail@Marina Bay and Marina Bay Residences. Further inland, One Shenton Way and Scotts Square also offer units in the heart of the city.

The latest URA data shows Marina Bay properties transacting at around $2,100 psf. This is a slight dip from the peak prices seen in the property boom last year.

At Scotts Square in Scotts Road, units are being sold at an average price of $3,700 psf this year, down about 8 per cent from $4,000 psf in last year's fourth quarter.

At One Shenton Way, the latest sale went at $2,069 psf in January.

Prices might be falling at some condos now, but as these homes were launched at just below or around the $1,000 psf level, the question remains whether the upside is limited if one buys now, say some market watchers.

It is possible that prices might drop further, given the current cooling of the market, but Mr Mak added that owners are unlikely to let go of units if they would incur a loss.

Savills Singapore's director of business development and marketing, Mr Ku Swee Yong, said that sellers are more likely to negotiate now given the current market sentiment.

For investors holding out for drastic price drops, he said it is unlikely that home prices in the city will drop as much as 30 per cent, as recent bank reports have predicted.

'Current market conditions do not support that. At the most, we will see a 5 to 10 per cent decrease for top-end luxury homes.'

Mr Ku said that even at the $2,000 psf level, city homes can command rental yields of about 4 per cent as they are attractive properties to rent, catering to the international expatriate community.

At DTZ Debenham Tie Leung, senior director of research Chua Chor Hoon agreed.

'City centre homes fetch pretty good rentals and therefore give good yields...URA's data shows that rentals for condos such as Icon were in the range of $6.50 to $7.50 psf a month,' she said.

Mr Ku added that investors who are in for the long haul might find that their investments will pay off in the next five to 10 years, especially after the Marina Bay integrated resort opens and the city gets busier.

Other homes to consider include those at Robertson Quay and Tanjong Pagar.

The condos include Robertson Blue, RiverGate and Watermark at Robertson Quay; at Tanjong Pagar, there are the Pinnacle @ Duxton and Icon. Units at these projects have changed hands for $1,400 to $1,600 psf in the last three months.

The other option for investors is to wait for further government land sales, for more new homes to be developed, said Mr Mak. These developments would probably be in the Marina Bay area, he added, unless URA allows city properties to be converted into mixed-use projects.

Around Beach Road and the Ophir-Rochor area - touted as the northern gateway to the city - investment opportunities are more diverse.

There is a good mix of shophouses and strata-titled commercial and residential units on the market for the average investor.

The 101, Premier Centre and The Plaza, for example, are all strata-titled properties with a mix of commercial and residential units. At The Plaza, transacted apartment prices have gone up 28 per cent, rising from $600 psf in June last year to $900 psf currently.

Commercial units in this area have generally stayed at the $1,500 psf price level this year, though transaction volumes have fallen since last year, said Mr Ku.

Over at Tanjong Pagar, shophouses are also a staple of the district. These properties are usually more affordable, added Mr Mak, although he warned that they are more sensitive to market downturns.

If plans for a revamped Kallang Riverside and Paya Lebar Central go ahead, the city centre will also benefit from the buzz added by these new, nearby commercial hubs.

How soon investors will see price movements in city investments will depend on the pace of development. Market watchers agree it is still too early to see the price effects from URA's masterplan.

'Prices are peakish now, so one should consider the investment time horizon and yield before making a purchase,' said Ms Chua.

Private Banks Roll Targeting Mega-Rich

Straits Times May 2, 2008

Private banks roll out special units targeting mega-rich

Individuals with over US$30m in investible assets are moving more wealth to Singapore By Grace Ng

 

MORE private banks in Singapore are rolling out new special units to cater to Asia's super wealthy - a lucrative but largely under-served segment.

Banks observe that the region's mega-rich, who have well over US$30 million (S$41 million) in investible assets each, are moving more wealth to Singapore.

They do this to diversify their wealth beyond traditional ultra-high net worth banking hubs like Switzerland and Hong Kong.

The super wealthy grew in number to well over 17,500 in 2006 across the Asia-Pacific region, up 12 per cent from the previous year, according to a Capgemini/Merrill Lynch report.

While there is no official data for the amount of assets ultra-rich clients booked in Singapore, one senior banker reckons growth rates may be anywhere from 10 per cent to 25 per cent for some banks last year.

Ultra-high net worth clients in Asia who book assets in Singapore are largely entrepreneurs from Indonesia, the Philippines, Thailand, China and India. Banks say this is a particularly lucrative segment as the clients require a wide range of services, from investment banking to asset management.

They also tap the banks' expertise in key areas such as setting up a family office, a private company that manages investments and trusts for a wealthy family, as well as in specialised lending, private equity and philanthropic advisory service, said Mr Rajesh Malkani, head of Standard Chartered Bank's (Stanchart's) private bank in South-east Asia.

Singapore trusts are becoming popular, with many ultra-high net worth clients using these for estate planning, he added.

One sign that Singapore is increasingly becoming popular as a booking centre for the super wealthy is that banks here are setting up dedicated units and teams to serve them.

New players, such as Australia-based Macquarie, which is purely focused on clients with at least US$30 million in investible assets, recently made Singapore its regional wealth management base.

Other niche players already in the country, such as Pictet & Cie, mostly serve clients with at least US$100 million already with the bank.

Just a few months ago, Stanchart, which set up its private banking headquarters in Singapore in July last year, saw the need to set up a 'specific ultra-high net worth proposition', said Mr Malkani.

He said the growth of this segment had 'exceeded expectations', as Stanchart's private bank was able to tap its large base of relationships with entrepreneurs who had been using its expertise and network in Asia, Africa and the Middle East for decades.

Major banks acknowledge that they have not focused enough resources on Asian clients in the past, so this segment is still under-served in Singapore.

Citi Private Bank relocated Mr Akbar Shah to Singapore less than a year ago to head its mega-wealth division in the Asia-Pacific, setting up a new team to serve clients with a net worth of more than US$250 million each.

The team had been operating in Hong Kong for many years, but Citi decided it was time to use Singapore as another base.

'Many of these clients are from Indonesia and other South-east Asian countries, but there are also several Middle Eastern and European investors who are more keen to explore business opportunities in Asia and are also looking to place part of their liquid assets here,' said Mr Shah.

Citi's rivals are matching its moves.

UBS has a dedicated 'competency centre' in Singapore to create services and products just for its ultra-rich clients.

Credit Suisse is on the lookout for senior bankers to help it 'sharpen its penetration for ultra-high net worth clients', said Dr Francois Monnet, the head of private banking for South-east Asia and Australasia.

The margins earned from serving ultra-rich clients may be thin - thinner than for those in the high net worth segment, say bankers.

The average size of each transaction or trade, however, is considerably larger, said Citi's Mr Shah. So banks stand to earn hefty revenues from just one transaction for an ultra-high net worth client.