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Units in upcoming 30-storey luxury condo on Scotts Road to come with car porches

If you had a Porsche, wouldn’t you like to spend every single waking moment polishing and admiring it?
 
And if possible, park it right in your living room, instead of some basement carpark?

Well, wish granted.

Soon, you can drive into your estate, then get whisked from the ground level to your apartment by a car lift and reverse right into your unit.

You step out and you’ll be right inside your living room.

And if you do own a Porsche, what a great conversation piece it will be compared with, say, a boring antique table.

This private carpark in each unit is likely to be the most talked-about feature in a proposed 30-storey condominium on Scotts Road.

The yet-to-be-named project will be built on the former Hotel Asia site and will be the tallest development encompassing ‘car porches’ in the world, said developer Hayden Properties.

The loading limit for the car lift will be about two tonnes, and it will be big enough to accommodate a Rolls-Royce.

A normal four-door sedan weighs just over a tonne.

Hayden Properties director Leny Suparman said they first heard about the concept in New York and Dubai.

She added: ‘It’s high time that Singapore enters into a bold, new dimension of world class affluence living like… in New York and Dubai.

‘This is something ultra luxurious for home-owners and something they can relate to. It’s like living in a bungalow and it’s great for car lovers who want to be close to their prized possession.’

There will be 54 units and two penthouses in this development, which will be launched later this year.

Each three-bedroom unit will be about 3,000 sq ft, including the car-porch space of 400 to 450 sqft - big enough for two cars, said the developer.

Each 5,700 sq ft penthouse will have two car-porches.

The price will be about $4,000 psf, said the developer, so expect to pay about $12 million for the three-bedroom units.

The car porch and the living area will be separated, possibly with glass.

That is because not many will appreciate choking on exhaust fumes in the living room.

There will be two car lifts and two passenger lifts.

And for those who prefer their cars on solid ground, every unit will also be allocated parking space in the basement carpark, said the developer.

There will be a valet service for those who prefer the passenger lift and want someone to park their car for them.

What happens if the car lift breaks down?

Then the home-owner may not be able to move his car till the lift is fixed.

But the developer said the condo would have a lift maintenance system with 24-hour service.

The company said it has received a provisional planning permit from the Urban Redevelopment Authority and construction is expected to start at the end of this year.

The developer has not worked out the maintenance costs per unit yet.

Though the project has not been launched, prospective buyers, attracted to the concept, have begun calling.

Chesterton International research director Colin Tan said it’s the first time he has heard of such a concept for a residential property here.

There are mechanised carparks in commercial properties such as Peninsula Shopping Centre and Thomson Medical Centre.

LIKE LANDED PROPERTY

Said Mr Tan: ‘One of the best things about living in a private condo is parking right next to the lift lobby and taking the lift right to your doorstep. This takes it one step further.

‘This is a premium, a plus point for the development. It’s like living in a landed property.’

But Knight Frank research director Nicholas Mak wondered if such extravagance was necessary.

He said: ‘Do you really need to bring your car into your living room? If you argue that it’s for the purpose of security, you can always have garages with locks. I wonder if buyers will accept it.’

Businessman Leonard Wee, 49, liked the idea though.

He said: ‘It’s every car enthusiast’s dream to have your car parked right inside the living room. And what better way to show off your Ferrari? It’s like having your own car showroom.’

Source : The New Paper - 31 May 2007

The property market’s ascent is welcome news to anyone who has lived through the boom and painful bust cycle of the 1990s. The relief would be acute for those who endured the black hole that a mortgaged property in negative equity would have put them. How long can this bull cycle last? For now, the signs are encouraging.

Plans to turn Singapore into a tourist capital, most visibly headlined by the billion dollar integrated resorts projects; coupled with the ongoing push to become a hub for private wealth management, higher education and various other initiatives are set to unleash structural changes that provide a solid underpinning for property values. These changes include new jobs and new expatriate residents who will be looking for homes. After all, Singapore’s home prices and rents, even with the recent spike, still lag those of developed markets.

The financial backdrop is also conducive. A thriving economy, relatively low interest rates and a buoyant stock market are conspiring to make risk taking seem a pretty easy proposition. The appetite for leverage, in particular, is growing, and recent data on home loans attest to this. In March, housing loans grew 3.6 per cent, the strongest pace in a year. The Credit Bureau’s preliminary data show a trend towards larger loans and banks report a rise in the number applying for second or third mortgages. For those who have invested and still are investing in property, the going looks good. Rising rents can easily cover loan instalments, and a reasonable holding period can produce profits in the triple digits. But those who think that ‘this time is different’ could rue their words. There are clearly a number of risks that could mar the Goldilocks scenario, even if these seem remote for now. Rising interest rates and job uncertainty can easily cause a heavily geared balance sheet to come undone.

Risk management is key, particularly for those who do not have the resources to hold the properties in the event of a downturn. A substantial number is likely to have bought uncompleted properties on deferred payment schemes and will be looking for a profitable exit. Timing will be critical, and yet timing is something even veteran fund managers get wrong. This is particularly so for individuals who tend to develop attachments to their investments.

The onus is then on individuals to exercise restraint. In this context, the recent move by the government to improve the transparency of the property market will be critical, as individuals count on publicly available data for their decisions. At the moment, developers often highlight record prices of homes sold, when average prices could present a far different picture. Details are currently being worked out by the Urban Redevelopment Authority.

Meanwhile, individuals would do well to remember that cycles are alive and recurring, even if the good times seem extended. Throwing prudence to the wind risks a recurrence of the black hole of negative equity, a prospect that is surely to be avoided.

Source : Business Times - 31 May 2007

$850-1,000 psf ppr likely for plot next to One Shenton

A white site behind One Shenton, launched yesterday and slated predominantly for office development, could fetch $850 to $1,000 per square foot of potential gross floor area, property consultants say.

This translates into bids of $1.22 billion to $1.43 billion. And some analysts reckon that the price could go even higher.

The tender for the 110,206 sq ft site - offered on a 99-year lease by the Urban Redevelopment Authority - closes on Sept 19.

At least 70 per cent of the maximum 1.43 million sq ft of gross floor area must be developed as offices. Assuming the successful bidder puts up an all-office development, the net lettable space could be just over one million sq ft.

The development can rise higher than 40 storeys. And if roof forms are included, the maximum height can go beyond 50 storeys.

CB Richard Ellis executive director Li Hiaw Ho says that the site could fetch around $900 to $1,000 psf per plot ratio (psf ppr), which would result in a breakeven cost of $2,300 to $2,500 psf for the completed office project.

Using a yield-based approach and assuming gross monthly average rent of $12 psf and a capitalisation rate of 4.5 per cent, the value of the completed project would be about $2,600 psf.

Mr Li also notes that $2,500-2,600 psf capital values are in line with current office transactions. BT reported last week that Hong Leong Group had received an offer of about $2,500 psf for 1 Finlayson Green and has since learnt that this offer, from a European property fund, may actually be higher.

Knight Frank managing director Tan Tiong Cheng predicts a slightly lower price of $850 to $900 psf ppr, saying that bidders may take a cue from last month’s sale of nearby UIC Building for $870 psf ppr. He expects the URA site to draw at least four to five groups of bidders.

Taking a more upbeat view, Credo Real Estate managing director Karamjit Singh predicts that the top bid is ‘certain to go over $1,000 psf ppr’ because of interest from overseas institutional investors like funds. ‘Their perspective on target returns and market outlook may be rather different from local developers,’ he said.

Agreeing, a seasoned market watcher - alluding to the office glut that plagued Singapore a few years ago - pointed out: ‘Local players know local history.’

Some investors may now be concerned that the government could release a slew of new office sites - on 99-year leases and short tenures for temporary structures - to alleviate the current shortage of space.

Still, CBRE’s Mr Li expects URA’s latest site to draw strong bidding. ‘The future CBD will be in the Marina Bay area and if you want to be in the office market, you have to be there,’ he said.

Knight Frank director and head of research and consultancy Nicholas Mak reckons that the authorities would only release additional office sites selectively, knowing that new developments can be completed only after the first phase of the Business and Financial Centre is ready in early 2010.

The government’s proposal to offer short-tenure sites for temporary or ‘transient offices’ will have limited appeal, he said. ‘Big international financial institutions and other users concerned about image will probably not find such premises appealing. However, perhaps some smaller local firms facing pressure from rising rents - like architectural firms and law firms - may consider them.’

Source : Business Times - 31 May 2007

Prime 1.02ha site likely to draw major developers, say consultants

BLUE-CHIP property players from across the region are expected to do battle for a prime piece of Marina Bay land released for tender yesterday.

Bids of well above $1 billion - although one expert tips $2 billion or more - are expected for the 1.02ha site behind One Shenton and The Sail @ Marina Bay condominiums.

A project of about 40 storeys can be built on the land, but 70 per cent of the gross floor area must be given over to offices. The rest of the space can hold more offices, hotel rooms, homes or shops.

Mr Nicholas Mak, the director of research and consultancy at Knight Frank, expects bids to come in at between $830 million and $1.09 billion, based on recent government land sales and an assumed rental yield of about 6.5 per cent to 7.5 per cent.

This range works out to $580 to $760 per sq ft per plot ratio (psf ppr), he said.

But Ms Tay Huey Ying, Colliers International’s director of research and consultancy, expects even higher bids - ‘upwards of $1 billion, or $750 psf ppr’, with the winning bid ‘likely to be above $2 billion’.

The likely contenders ‘include all the major local blue-chip developers’, Mr Mak said.

These would be CapitaLand, Keppel Land, Lippo Group, Far East Organization and City Developments, which is the developer behind One Shenton and The Sail.

Foreign funds could also tie up with local developers for the tender bid, he said.

The consortium building the nearby Marina Bay Financial Centre (MBFC) - Keppel Land, Hongkong Land and Cheung Kong Holdings - may also be interested, said consultants.

‘Other office players who have yet to have any presence in this new downtown of the future may also take this opportunity to form consortiums to participate in this tender,’ said Ms Tay.

She added that a winning bidder may want to build homes or service apartments along with the required offices.

But Mr Mak, who estimated that the project could accommodate 400 two-bedroom units, said homes were an unlikely option because the developer would also have to allocate more space for carparks.

The site, which opens up directly to a public open space, can be built up to 200m, or over 40 storeys.

It will be connected to surrounding developments such as One Raffles Quay, One Marina Boulevard, the MBFC and One Shenton through a network of underground walkways and second-storey links, the Urban Redevelopment Authority (URA) said.

The site will be served by a common services tunnel, a system of underground tunnels that house and distribute utility service lines such as power and telecommunication cables, the URA added.

This means future tenants will have an uninterrupted supply of major utilities and emergency back-up services.

The site - part of the Government’s plan to rejuvenate the Marina Bay area - will be awarded based solely on the tendered price, said the URA.

Developing the land ‘will help to build up the critical mass of office space in the Marina Bay area and develop the area as an international business and financial hub’, it added.

FOCUS ON OFFICE SPACE

A project of about 40 storeys can be built on the site, but 70 per cent of the gross floor area must be given over to offices. The rest of the space can hold more offices, hotel rooms, homes or shops.

ESTIMATES OF BID AMOUNTS

Knight Frank’s Mr Mak expects bids for the site to come in at between $830 million and $1.09 billion, while Colliers’ Ms Tay predicts that the winning bid is likely to be above $2 billion.

Source : Straits Times - 31 May 2007

A Recent newspaper article mentioned that Pearl Bank Apartments may become an en bloc acquisition candidate.
The unique design of the building is highly regarded by the architectural community, and the building has a worthy place in the architectural history of Singapore. It is considered by some locals as a landmark.

The apartment complex is suited for restoration, refurbishment and retro-fitting, and not suited for a complete tear-down and re-build.

The structure of the high-rise Pearl Bank Apartments is still solid. To attain such a structure today from ground zero, the developer must spend a great deal of money.

It appears somewhat strange to consider demolishing such a building to construct another one, when the surroundings are empty open land that is ready to be offered by the authorities for new construction.

In the case of Pearl Bank Apartments, how much net economic value will be created in a complete tear-down and re-build?

I assess that there will be an actual significant loss of economic, cultural and historical values.

Whatever apparent gain is merely the reallocation of financial resources from one party of the community to another, with no net gain to the community as a whole

It makes so much more sense for a new building to be built on adjacent empty sites, and for Pearl Bank Apartments to be refurbished.

Dr Chng Nai Wee

Source : Straits Times - 30 May 2007