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They add designer fittings, spas and extras - but some analysts say this creates a cycle of price rises

As prices of luxury property continue their seemingly unstoppable climb, the heat is on developers to give buyers more bang for their buck. And they are rising to the challenge by offering more “”exclusive” projects with fewer, bigger units full of fancy trimmings.

Some 39 luxury projects with a total of more than 3,600 units could be launched this year, says Colliers International. And about two-thirds of these developments will have 100 units or less.

The number of units per project is shrinking as apartments get bigger, market watchers say. For example, penthouse sizes have grown by 20-100 per cent since the 1990s, according to Colliers’ director of research and consultancy Tay Huey Ying.

“”In the 1990s, penthouses were usually about 3,500-5,000 square feet,” she says. “”Today we are looking at more and more penthouses in the range of 7,000 sq ft and above.”

Developers are also throwing in goodies such as European designer fittings, spas in all apartments and a separate pool for each unit to sweeten the pot.

“”As prices go up, people expect more,” Koh Brothers chief executive Francis Koh told BT.

“”If you buy a new unit instead of a resale unit, it has to be value-added. So we need to innovate.”

Luxury home prices in Singapore are indeed on the way up.

In just the first quarter of 2007, prices of uncompleted projects in the Core Central Region - which includes Districts 9, 10, 11, Marina Bay and Sentosa - rose 7.3 per cent.

And for the whole of 2006, prices of uncompleted projects in these prime areas rose 25.4 per cent. With prices expected to keep climbing for the rest of the year, developers are getting creative, making sure their offerings have the works.

The Marq

SC Global Developments has a few firsts in mind. Its Marq On Paterson Hill will feature one tower with a 15-metre private lap pool in every apartment on every floor. The Marq is expected to be launched this year at upwards of $2,800 per square foot.

And another SC Global project, Hilltops, promises a resort-style steam spa in every apartment. Hilltops is expected to be launched this year at $2,500 to $3,000 psf.

Similarly, Koh Brother’s 53-unit The Lumos, in the Leonie Hill area, will have a sky garden on every floor. Every unit will open on to a landscaped plot of green living space, which Koh Brothers says will provide residents with “”a refreshing sanctuary and an access to nature that is unrivalled among high-rise developments”.

Besides exclusives like these, developers are splashing out to install the latest designer fittings in their apartments.

At The Lumos, each unit will come with an Italian-made Visentin Rainbow Shower, so you can change the backlight colours to suit your mood while showering. The master bathroom in each unit will be walled with Strass Swarovski Crystal tiles.

And in what the company says is another first, the exterior-facing bathroom windows are made of Liquid Crystal Glass, so you can turn from frosted to clear at the flick of a switch.

With features such as these, says Colliers’ Ms Tay, developers are trying to create a lifestyle that sells their apartments.

But some analysts say all the extras are adding to the cost - which again leads to increased prices.

“”It’s a cycle,” said an analyst with a foreign brokerage here. “”People pay more, so the developers spend more money to justify the price. And this again drives prices up.”

But with luxury home prices still continuing to climb, the trend can be expected to continue this year, the analyst said.

Source : Business Times - 5 May 2007

Professional body urges reviews to aid conservation

EN bloc sales of old residential developments may take a new twist if the Singapore Institute of Architects (SIA) has its way.

Related article: Click here for the full text of SM Goh’s speech

Highlighting developments like Futura and Beverly Mai, which were sold through collective sales last year, SIA president Tai Lee Siang said: ‘We need to urgently debate whether these buildings form the architectural heritage of our city.’

Acknowledging that there were ‘inherent difficulties’, tied to the commercial value of the land, Mr Tai nevertheless said that there could be buildings that were less than 30 years old that had the same value as national monuments or conserved shop houses.

Highlighting another development that could potentially be put on the block - the Golden Mile Complex - Mr Tai explained that its design, ‘pioneered mixed development thinking’ and ‘pointed to the future of urban renewal that was relevant at that time’.

He said: ‘Given that buildings that fit such criteria of review are few and far between, it is worthy to consider national level solutions to prevent such buildings from being demolished.’

The SIA president did point out, however, that it is not currently in discussions with the relevant authorities on this matter.

Mr Tai was speaking at the press conference held for the SIA 46th annual dinner celebration last night, which saw the professional association confer its highest honour on a non-architect - the Honorary Fellow of the Singapore Institute of Architects - on Senior Minister Goh Chok Tong.

In his acceptance speech, Mr Goh said: ‘Given increasing demand on land use, we must find new and innovative ways to maximise our limited space.’

He also said: ‘The government will be bold and creative in working with partners in the private sector like architects, building owners and developers.’

He said: ‘Overall, I would say that we are on the right track to become a truly global city, yet one which is distinct from others because it is a tropical city where the East truly blends with the West in harmony.’

The occasion of the SIA annual dinner was also an opportunity for Mr Tai, who is serving his first term as president, to present the institute’s manifesto for 2007.

Mr Tai said that the manifesto was not about making policy changes but ‘changing mindsets’.

Mr Tai said that architects need to take a more active role in designing the city. He said: ‘For too long, economics and rules have been blamed for stifling creativity . . . Our designs must now seek new solutions, new materials and new ways of design to ensure that our city is not one of boredom but one bustling with energy of creativity.’

Source : Business Times - 5 May 2007

Pressure grows as prices soar, new en bloc rules set to kick in

With residents increasingly holding out for higher payouts as estates around the island continue to fetch record reserve prices in en bloc sales, allegations have emerged of sale committees trying to push through deals before new legislation kicks in.

Clementi Park

King’s Mansion resident Abdul Hamid, for one, was shocked at the haste in which the en bloc sale process was carried out. All it took was three days and “all that was left for us to do was to sign or not sign the Collective Sale Agreement (CSA)”, he said.

The Government has announced plans to amend the current laws governing en bloc sales by the year’s end. While this was welcomed by many, calls are growing for urgent action to address issues such as the lack of transparency and neglect of minority interests during an en bloc sale.

Over at Minton Rise, a resident, who declined to be named, accused his estate’s sales committee of pressuring unit owners into agreeing to the sale.

When contacted, the estate manager maintained that the sale committee did everything by the book, but he declined to comment further.

A member of Clementi Park’s sale committee, Mr K C Lim, conceded that his committee was looking to bring forward the deadline for residents to decide on the deal — not because of the impending legislative changes but due to the soaring prices.

Already, a group of owners at Horizon Towers are trying to back out of an en bloc sale because they felt that the $500-millon deal no longer reflect the condominium’s “true value”.

Said Mr Lim: “If everybody is playing a waiting game, it becomes very tedious and time-consuming to carry on.”

When contacted, a Ministry of Law spokesperson told Today that the ministry has “no intention” to suspend the current en bloc regulations pending the review exercise.

The spokesperson said: “Owners who object to the en bloc sale of their development need not sign the CSA. If they have valid grounds to object, they can file their objections with the Strata Titles Board (STB).”

And refuting suggestions that the current regulatory framework appeared to side with the majority owners, the ministry reiterated that the STB was “not partisan”.

So, can anything be done to help the aggrieved parties before the new laws kick in?

One way, lawyer S K Phang suggested, is for more developers and sale committees to work out old-for-new exchanges for unit owners, under which they would get back a comparable unit in the same location.

Said Dr Phang, who has helped facilitate such deals at Eng Kong Green and Paterson Lodge, where all the owners opted for a straight swap: “If I were a developer, I would save on land costs, cash outlay and the interest to pay. The risk is also smaller.” This way, homeowners would not be affected by property-market fluctuations, he added.

Chesterton International’s research director Colin Tan attributes the unhappiness to a “misunderstanding” of the majority consent rule. He said: “Many of those on the sale committees see the 80- or 90-per-cent majority consent required as the magic number. They think that as long as they structure a deal which the majority will agree to, their job is done.”

A change in approach on the part of the sale committee, such as taking into account the interest of everyone involved, could go a long way in reducing acrimony during an en bloc sale. Mr Tan added that the impending legislative amendments merely seek to “make it clearer that the whole process must be fair”.

For some such as Mr Abdul Hamid, the amendments cannot arrive quickly enough. He said: “Year-end is too late. By then, I would have lost my home. What the Government does six months later is of no advantage to me.”

Source : Today - 4 May 2007

The owners of Tanglin Shopping Centre may hit the en bloc trail and could pocket a total of around $500 million, property market watchers say.

Tanglin Shopping Centre

Some owners have been mulling over a collective sale of the ageing freehold property, and have requisitioned an extraordinary general meeting tomorrow to discuss the idea and elect a sales committee, BT understands.

Tanglin Shopping Centre is on a site of about 68,500 sq ft and has a strata area of about 230,000 sq ft. It comprises a seven-storey retail podium, a 12-storey office tower, a basement carpark and a multi-storey carpark.

Analysts estimate the existing gross floor area (GFA) at 300,000 sq ft and reckon a new project would be allowed the same maximum GFA, even though this is slightly above the maximum 287,700 sq ft based on the site’s 4.2 plot ratio under Master Plan 2003.

The site is zoned for commercial use with a 20-storey maximum height under the Master Plan.

Industry observers reckon the plot could fetch about $1,800 psf of potential gross floor area, which works out to $518 million. The assumption is that no development charge is payable.

The breakeven cost for a new commercial project could be around $3,200 psf. ‘The site could be suitable for a retail mall and perhaps some small office, home office (Soho) units,’ a property player said.

Observers say redeveloping the landmark shopping centre would spruce up the stretch of Tanglin Road that joins Orchard Road and help it keep pace with major new developments going up near Orchard and Somerset MRT stations.

Furthermore, the present Tanglin Shopping Centre would stick out like a sore thumb when the St Regis Residences and hotel next door are completed soon by City Developments, Hong Leong Holdings and Trade and Industrial Development, which is a partnership between Hong Leong and Japan’s Mitsui Group.

Market watchers reckon Hong Leong Group, which includes listed CityDev, is eyeing Tanglin Shopping Centre with a view to putting up a project that would complement the luxurious St Regis.

CityDev, through its hotel arm Millennium & Copthorne Hotel, already has a stake of about 35 per cent in Tanglin Shopping Centre, including ownership of 325 parking lots.

Market watchers say Hong Leong has been in talks with some owners at the shopping centre to ask if they want to sell their units to it, rather than wait for an en bloc sale.

If CityDev were to gain control of the shopping centre, the new project on the site could likely have a bridge link to the St Regis development.

Hong Leong’s sizeable presence in the area includes Orchard Hotel, Palais Renaissance and Delfi Orchard. It also owns some units in Orchard Towers.

Other contenders for Tanglin Shopping Centre include Far East Organization and Hotel Properties, both of which also have big stakes in the area. Far East owns some units in Tanglin Shopping Centre and its listed unit Orchard Parade Holdings owns the namesake hotel next door.

Hotel Prop owns a stretch of properties nearby - HPL House, Forum The Shopping Mall, Hilton Hotel and Four Seasons Hotel. It also has a stake in Ming Arcade.

Tanglin Shopping Centre was developed in two stages, in the early 1970s and early 1980s. The project, developed by SK Chee Pte Ltd, was famous back then for its medical clinics.

Clinics still operate in the building, and property agents say some doctors who own their premises may be reluctant to do an en bloc sale because of the difficulty of buying replacement premises in the area.

Source : Business Times - 4 May 2007

Kajima-Tiong Seng consortium is main contractor for commercial towers

CONSTRUCTION contracts worth more than $700 million for the upcoming Marina Bay Financial Centre (MBFC) have been awarded and the principal contractor for the two commercial towers is a consortium of Kajima Overseas Asia and Tiong Seng Contractors.

Marina Bay Financial Centre

Woh Hup was named the main contractor for the residential tower.

Together, these buildings make up the 244,000 sq metre Phase 1 of the MBFC.

In February, the owners of MBFC - a consortium of Keppel Land, Cheung Kong Holdings/Hutchison Whampoa, and Hongkong Land - acquired a further 194,000 sq metres of land next to Phase 1 for $907.67 million.

In a statement yesterday, David Martin, general manager of BFC Development, the company in charge of MBFC, said: ‘The tenders for both the commercial and residential towers attracted strong interest and competitive bids from several quality contractors. We believe we have assembled from this bidding process a very strong construction team with the experience and expertise to execute large-scale projects.’

The appointment of the main contractors puts Phase 1 of MBFC on track for completion in 2010, he said.

Tiong Seng Contractors was earlier awarded the piling contract for Phase 1 of the development.

Director Pek Lian Guan said: ‘With Tiong Seng’s recent experience on the site with the piling process, we are off to a head start in ensuring a smooth process for construction through our deep understanding of the project and existing knowledge of the particular dynamics of this site.’

The contracts announced were only for Phase 1. Mr Martin said that design and construction planning is still in progress on Phase 2.

Also still in the planning stage is CapitaMall Trust’s plan to expand Funan DigitaLife Mall. In a statement yesterday, CMT said it is appealing to the Urban Redevelopment Authority (URA) for an ‘alternative waiver scheme so as to achieve a more efficient floor plate for the proposed development of an office block and to minimise disruptions to the retail tenants’.

BT reported on April 28 that CMT had received provisional permission from the URA to erect a nine-storey commercial building and for additions and alterations to the existing mall.

It is understood that the URA waiver CMT is seeking involves the height restriction of nine storeys for the new extension.

CMT said further information will be provided when details are agreed with the URA.

Source : Business Times - 4 May 2007