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Over the past two decades, Paramount Shopping Centre has developed a rather infamous reputation for itself; more known for the seedy karaoke bars and pubs that crowd its ground level rather than the retail and computer shops on the upper levels.

Once the sun goes down, bar hostesses and their guests filter to their watering holes in the building that is often regarded as the Orchard Towers of the east side.

But the sun is set to go permanently down on this scenario as the Paramount Hotel and Paramount Shopping Centre are to be sold by public tender, according to an announcement by Cushman & Wakefield, which is conducting the exercise.

The freehold property has a total land area of 102,710 square feet and has just obtained an outline approval for a hotel development with a plot ratio of 3.0. This means the successful bidder for the site could develop a total gross floor area of 308,130 sq ft.

It is understood that a retail cum hotel development with around 450 to 600 rooms could be developed on the site.

The successful bidder will also have the option of developing the land into a residential development, as the hotel is not under any safeguard list.

With prices in the Katong, Meyer and Amber Road areas reaching $1,500 to $1,800 per square foot, this could be an enticing option for potential developers.

The tender closes on July 6.

Further down the road, Colliers International has put up an Expression of Interest exercise for the sale of St Patrick’s View at 54 and 56 St Patrick’s Road. The freehold development sits on a 83,013 sq ft plot and consists of four- and three-storey blocks housing 52 apartments.

The site is zoned for residential use and is subjected to a plot ratio of 1.4. It can be developed into a five-storey development that comprises 80 apartment units averaging 1,400 sq ft each in size.

The indicative price guide of $63 million equates to $544 psf per plot ratio, inclusive of development charges.

Parties interested in the site can submit their offers to Colliers by 3pm on June 19.

Source : Weekend Today - 26 May 2007

SINGAPOREANS may baulk at the record prices that luxury developments are fetching today, but a London-based businessman has shown that the well-heeled are willing to shell out good money for a top acquisition.

The unidentified man has just signed a contract for a US$56 million ($85.6 million), 9,200-square-foot triplex penthouse in New York’s Plaza Hotel.

That equates to around US$6,087 per square foot, or $9,293 psf — more than double the amount fetched by Orchard Residences, which reported prices of more than $4,000 psf.

According to a recent New York Times report, real-estate executives expect the penthouse to be the most expensive Manhattan apartment sale to date when the deal closes at the end of the year — topping the US$45-million contract signed by hedge-fund manager Daniel Loeb for an apartment in 15 Central Park West.

But even the US$56-million record may not stand for long — there is a 16-room penthouse at the top of the Pierre Hotel at Fifth Avenue and 61st Street in New York City with a US$70-million price tag.

The Plaza Hotel penthouse is a combination of a duplex and a triplex apartment and has a 500 sq ft terrace that overlooks Central Park.

Although the buyer had signed the contract to purchase the apartment, the developer, Elad Properties, will not merge the two apartments into a single unit until the sale is completed

The 805-room, 19-storey Plaza Hotel, located at Central Park South and Fifth Avenue, was bought for US$675 million in 2004. It offers 180 luxury condominium apartments as well as 152 hotel rooms.

The hotel was closed in 2005 to make way for the conversion to become a part-residential building.

A spokesperson for Elad Properties revealed that 85 per cent of the apartments on offer were on sale contracts.

Source : Weekend Today - 26 May 2007

Rents here jumped 53.6% year-on-year to US$67.97 psf per annum: CBRE report

The latest evidence of fast escalating office rentals in Singapore is provided by a CB Richard Ellis report which shows that office rents on the island are the fifth fastest growing globally. The report, issued yesterday, compared percentage change in occupation costs over a 12-month period for 176 cities worldwide.

Most Expensive Office Markets

Rents in Singapore jumped 53.6 per cent year-on-year to US$67.97 per square foot per annum (or S$8.60 psf per month) in the study dated May 2007 and based on Q1 2007 data. CBRE’s survey also shows that 90 per cent of the office markets monitored reflected positive growth in the 12 months to Q1 2007.

Abu Dhabi reported the highest year-on-year rental rise globally (up 102.9 per cent), followed by New Delhi (79.1 per cent), Sofia, Bulgaria (62.9 per cent), Edmonton (60.1 per cent) and Singapore (53.6 per cent). Mumbai took the sixth place (45.1 per cent).

The US$67.97 psf annual rental figure for Singapore makes it the 24th most expensive office market globally as of May 2007, up from 37th placing in November last year and 43rd spot in May last year.

London’s West End was the world’s most expensive office market in the latest survey, with annual rental of US$241.22 psf, followed by the City of London (US$165.72 psf), and Tokyo’s Inner and Outer Central Five Wards.

CBRE executive director (office services) Moray Armstrong, while acknowledging that increases in cost base are always going to be an issue for occupiers, reasons that ‘the more immediate concern is the lack of office space, which is placing constraints on business expansion’.

‘I don’t think we are at the pivotal point where Singapore is becoming uncompetitive and businesses are starting to re-think expansion plans. After all, the driver for this strong office demand is an economy that’s performing extremely well and a city that MNCs and international banks are excited about,’ he added.

‘Of course, things could change at some point if exponential rental growth continues unabated. But the government’s policy reaction is already in play - with the Urban Redevelopment Authority’s plans to release temporary office sites, additional office plots and other measures. And the private sector, that is developers and investors, are gearing up to build future offices.’

Singapore still has huge tracts of prime developable land, especially in the Marina Bay area. ‘So its position as an attractive place for accommodating business growth is assured,’ Mr Armstrong reckons.

Source : Business Times - 25 May 2007

The HDB yesterday began accepting applications for 678 flats in Phase 2 of the Fernvale Vista estate in Sengkang West Avenue.

Located near the Fernvale LRT station, the units include 340 four-room flats priced from $145,000 to $200,000.

The other flats - two-room and three-room units - will be sold for between $60,000 and $139,000.

Potential buyers can visit a three-week exhibition, launched at the HDB Hub in Toa Payoh yesterday, to pick up a sales brochure and view 3-D models of the flats.

The estate is on the Build-To-Order System, which means that construction will go ahead only if a majority of the units are booked.

If the target is reached, the HDB will ask shortlisted applicants by the end of July - a little more than a month after applications close on June 13 - to select their flats.

The Phase 2 launch follows the sale of more than 90 per cent of the 508 flats offered in the first phase in July last year.

More information on Fernvale Vista, which is slated to be completed by the end of 2011, is available at the HDB’s e-Sales website at www.hdb.gov.sg

Source : Straits Times - 25 May 2007

BCA dismisses contractors’ claims on excessive concrete prices since sand ban; says positive steps in pipeline on cost-sharing

The Building and Construction Authority (BCA) has dismissed claims made by contractors that concrete suppliers have been profiteering from high concrete prices.

In a statement to The Straits Times yesterday, BCA said it had examined the documents submitted by the Singapore Contractors Association Limited (Scal).

BCA concluded that ‘they do not provide sufficient basis to substantiate the allegations of profiteering’.

This ‘thick file’ of evidence on profiteering - making excessive profits on goods in short supply - was raised in Parliament by Ang Mo Kio GRC MP Lee Bee Wah on Monday.

She asked if the Ministry of National Development (MND) had responded.

BCA said the file, submitted on Feb 23, contained copies of contracts, orders, and terms and conditions signed between contractors and ready-mixed concrete companies before and after the Indonesian ban on land sand exports.

Although Scal’s claims have been dismissed, the industry has been taking positive steps towards resolving the issue of sharing costs.

BCA said it was aware the Construction Industry Joint Committee’s (CIJC) - which represents the construction industry - is currently finalising a ‘practice note’ with other industry players on the increase in costs for private sector projects affected by the sand ban.

This note will contain recommended guidelines on how the cost should be shared between concrete suppliers, contractors and developers, said CIJC chairman Chang Meng Teng.

‘We’re trying to follow the Government’s 75-25 per cent formula, but we recognise this is probably not possible in all cases,’ said Mr Chang.

After the sand ban, the price of a tonne of sand went up from $25 to $60.

The disruption of granite supplies from Indonesia made matters worse, with concrete prices soaring from $70 per cubic metre to $200 per cubic metre.

Prices for concrete have recently stabilised at around $170 per cubic metre.

One concrete supplier, who declined to be named, said there was no reason to talk about profiteering because prices are not fixed.

‘There’s still competition between us, and prices fluctuate with the market. So during uncertain times, it was only natural that it moved up,’ he said.

He also noted that things were moving towards resolution between the parties involved.

In response to BCA’s statement, Ms Lee said that after three months of waiting for a response, some contractors were disappointed.

If more information was needed, BCA could have asked for it, she said.

Mr Simon Lee, executive director of Scal, maintained that its report showed that the increase in sand prices did not correspond with the hike in concrete prices.

Sand is an essential ingredient in concrete.

The report, which focused only on the effect of the price increase of sand, stated clearly contractors’ expected losses if they were not compensated, he said.

To encourage more concrete suppliers to enter the market, the Government has released land for new concrete batching plants.

National Development Minister Mah Bow Tan said in Parliament on Monday that if necessary, the Government ‘is prepared to release more if there is demand for it’.

Source : Straits Times - 25 May 2007