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Amber Road

Sweeping away the old

A WAVE of collective sales is gradually sweeping old properties out of the area, to make room for high-style condos that will give the street a brand-new look.

This enclave is becoming the hottest on East Coast Road as buyers snap up units at yet-to-be-completed, relatively large condos, jacking up the area’s value.

Prices averaged $850 to $1,000 per sq ft (psf) in the first quarter, up 40 to 45 per cent from $600 to $700 psf a year ago, said consultancy CB Richard Ellis (CBRE).

Condos under construction include Wheelock Properties’ 546-unit The Sea View; MCL Land’s 400-unit The Esta; the 562-unit One Amber from United Industrial Corp and United Overseas Land; and Ho Bee’s 42-unit Vertis.

The three large freehold condos have seen active sub-sales, said CBRE. They are popular for the location, facilities and well-known developers, said a consultant. Recent deals for The Sea View were done near $1,000 psf on average.

Buyers will soon have more choices.

A new project is earmarked for the sites now housing Amber Lodge and Jin Fu Apartments. Voda Land bought these estates en bloc in a private treaty at an undisclosed price and aims to launch Amber Residences in about three months.

It will be an ‘upper mid-market’ condo with 114 units in one 21-storey block, said Savills Singapore.

More condos will come when Far East Organization redevelops Amberville and Rose Garden, which it bought in collective sales last year.

For now, while construction roars ahead, the existence of older estates like Rose Garden makes for a noisy juxtaposition of past and future.

Marine Parade

Heart of the district with sea-front housing

MARINE Parade is the heart of the entire East Coast Road district and is a textbook example of how to develop reclaimed land. It brings together a popular shopping mall, schools and sea-front housing all within a linear stretch.

Public housing dominates, though older, large condos such as Mandarin Gardens and Neptune Court also enjoy the sea breeze and East Coast Park is just a stroll away.

It is no wonder the HDB flats here, particularly those with sea views, have always commanded a premium. And recently, they have benefited further from the robust activity in the private residential market, said CBRE.

Prices of five-room flats hit $358 per sq ft (psf) or some $467,000 on average in the first quarter, up 13.5 per cent from a year ago. This compares with a 7 to 8 per cent rise in prices of three- and four-room flats in the same period.

A four-room flat costs about $334 or some $305,000 on average, up nearly 7 per cent from a year ago.

But when it comes to rental, the four-roomers seem to be the most sought after. Average monthly rents of four-roomers rose by a hefty 47 per cent to $1.47 psf in the first quarter. This compares with a 23 per cent rise to $1.62 psf for three-roomers and a 7 per cent rise to $1.19 psf for five-roomers, said CBRE.

Private home prices in the area have risen by 20 to 40 per cent to $700 to $800 psf over a 12-month period as of the first quarter, said CBRE.

The area’s newest large condo is the 99-year leasehold Cote D’Azur.

Katong

Oozing old-world charm

RUSTIC shophouses, good food and a strong Peranakan heritage make Katong a real gem in the East Coast area.

The housing developments are mostly low-rise, with shophouses and boutique condominiums the mainstay, although there are quaint colonial houses for lease along Kuo Chuan Avenue.

Apart from the old-world charm, there is 24/7 shopping at Cold Storage in Katong Mall.

There are few new developments, though more may come as there have been several collective sale targets.

Sea Breeze Apartments was sold en bloc and should become an 88-unit project while a 229-unit condo in Jago Close is also expected, said CBRE.

Most of the properties here are small and rather old, so interest has not been very strong, with prices done in the past year or so at between $400 and $787 psf, said CBRE.

Developments such as Ceylon Crest and Katong Gardens transacted recently at about $540 to $550 psf on average.

Others such as East Galleria and Bellezza @ Katong go for about $650 psf on average.

St Patrick’s

Sleepy stretch enjoys new lease of life

IF YOU are looking for some peace and quiet in the East Coast locale, then the St Patrick’s area might be just your cup of tea.

The many boutique apartments, nestled alongside schools including St Patrick’s Secondary School and CHIJ Katong Primary, enjoy a special serenity that even the construction work at Grand Duchess at St Patrick’s and St Patrick’s Loft cannot disrupt.

The sleepy area has seen three launches recently. One was the 37-unit St Patrick’s Loft - marketed late last year at over $600 per sq ft (psf). Then came the fast sell-out of the 121-unit Grand Duchess, which created a stir. This project, which sold at $740 psf on average, further raised the area’s value.

Just a year ago, average levels were at just below $500 psf. Five Grand Duchess sub-sales were done at $700 psf to $900 psf, said CB Richard Ellis (CBRE). MCL Land’s recently sold-out Tierra Vue rode on the success of Grand Duchess and started sales at $800 psf. One 1,270 sq ft unit was said to have been sold at $1,051 psf, a record for the area, said CBRE.

More new projects are expected for the area.

Joo Chiat / Telok Kurau

Steady stream of small projects

THE sleaze of Joo Chiat is often put in the spotlight but beyond the colourful nightspots, the area is a quiet residential zone dominated by low-rise boutique developments and terrace houses.

A sprinkling of amenities such as schools, a medical centre, a park and good food also make this a conducive residential district.

Home prices rose to $600 to $700 per sq ft (psf) on average in the first quarter of the year, up from $450 to $550 psf a year ago, said CBRE.

There has been a steady stream of small apartments launched, with projects like Le Merritt selling for $650 psf this year. Last month, a 1,626 sq ft terrace house went for $1.2 million while a 2,190 sq ft semi-detached home went for $1.51 million.

Sim Lian Land bought Wen Yuan Court, K Gardens and Leyuke Apartments last year, but will launch its new project for sale only next year.

Siglap / Frankel

Cafes give quiet area some buzz

THE hub of activity in the otherwise homogeneous area of bungalows and semi-detached houses is the Siglap Road and East Coast Road junction.

Siglap Shopping Centre and rows of cafes and eateries give the otherwise quiet area some buzz, upping the area’s hip quotient.

With few new projects, Axis @ Siglap, a 40-unit boutique condo marketed earlier this year, sold out in a matter of weeks at an average price of nearly $800 per sq ft (psf). This was above the range of $600 to $700 psf for most properties in the area, Savills had said.

The strong demand is good news to developers who have bought sites in the area. Sing Holdings and a fund will redevelop Finland Gardens while Frasers Centrepoint will redevelop Flamingo Valley.

Prices for landed homes tend to vary widely, though they have moved up moderately. In May, a 4,700 sq ft bungalow on Siglap Road sold for $1.9 million while a 9,586 sq ft bungalow on the same stretch sold for $5 million.

Source : Straits Times - 3 Jun 2007

Thousands of Singaporeans check their credit history with Credit Bureau Singapore every month to ensure they have a clean bill of financial health before they apply for loans. The increased awareness is behind plans by DP Information Group to set up a second such bureau. So what exactly goes in your credit history and what surprises could spring up if you miss a credit card payment? Grace Ng and Gabriel Chen give you the low-down on credit reports.

Common questions

Q What is a credit report?

A It is your credit payment history, and is released to banks or other credit providers when they inquire about you. It includes personal profile details and records how promptly you made payments over the previous 12 months. The data is provided to Credit Bureau Singapore (CBS) by all retail banks that are members of The Association of Banks in Singapore (ABS).

Q What goes into the report?

A It can include the following:

- Basic individual profile, including IC number, date of birth, address, occupation and marital status;

- Records of all credit checks made; and

- Monthly records of how prompt repayments were in relation to the due dates.

Q Who can access my report?

A Only CBS and institutions participating in CBS that are approved by the Monetary Authority of Singapore (MAS) can access your credit report.

Access by unauthorised personnel, such as direct marketing companies, is prohibited. All access to the CBS database is tracked.

Q How does having a credit bureau benefit me?

A Over time, banks can use the data to differentiate between creditworthy and credit-risky customers. This helps cut processing time for loans.

If your credit history is good, you stand a better chance of having mortgage packages, personal loans, car loans or credit cards approved.

Q How can I obtain my report?

A You can use your SingPass to access your credit file online at the CBS website at www.creditbureau.com.sg

You can also go to the CBS office at #17-02 SGX Centre 2 or a SingPost office. Bring your photo ID or passport.

Collect the file after five working days at the bureau or SingPost branch. It can also be sent to you by normal or registered post.

Getting your file costs $5 plus GST.

Q What should I do if I disagree with the information in my report?

A Ask CBS to investigate and rectify any errors.

Q How do I avoid having any negative data about me in my report?

A Exercise good money management and make repayments on time.

Q If I am a first-time borrower, will I be at a disadvantage as there will be no information about me?

A For new borrowers, a new file is created, so there is a disadvantage.

Q Why do you get a credit score in numerical form in reports in Britain and the United States, but not here?

A A credit score is a numerical representation of an individual’s creditworthiness. The higher it is, the more cre- ditworthy you are deemed to be.

Different institutions employ different assessment criteria, so no one system is necessarily ‘better’. CBS says it is developing a scoring system that is being assessed by some banks.

Q Do banks receive the same reports that consumers do?

A Banks and consumers have access to the same credit payment performance data shown in the credit report.

But banks can also request a search for litigation information, such as whether a writ of summons has been issued. CBS says litigation data does not form a direct part of the report, and it searches the litigation writ database only if a bank asks for it.

Q If my report shows many ‘C’ and ‘D’ codes, will I still get my loan?

A A credit report is just one factor in the bank’s decision. It will also look at a client’s debt-to-income ratio, or his income level and occupation.

‘If there is any delinquency on the file, the banks will take notice, but that’s not to say that a bank will not supply (credit) because of some delinquency,’ said CBS general manager Mark Rowley. ‘The more delinquent the loan repayment history, the higher the risk for a bank to go ahead with the loan, but…each bank employs different risk policies.’

How bad credit affects you

Q How long are my credit ‘black marks’ recorded for?

A Records of bad debts are kept for six years from the date they were uploaded to CBS. Bankruptcy records are kept for six years from the date of discharge.

Payment defaults reported by financial institutions (for mortgages, credit cards, unsecured loans and car loans) are kept for six years from the date they were loaded.

Credit accounts are displayed for three years from when the account was reported as closed or terminated.

Q Apart from my credit history, what factors do banks weigh when looking at a loan application?

A Occupation and salary. A high salary is a plus but doesn’t always guarantee success in an application. Banks also consider your debt burden: whether loans make up a comfortable 30 per cent of your income or 80 per cent.

Q Does the bank view payment defaults on secured loans more seriously than those on unsecured loans?

A No difference. Whether you’re applying for a secured loan (say, a car loan) or an unsecured one (say, a personal credit line), banks will be uneasy about granting you the money if you are perpetually late in paying or always giving excuses for defaulting.

Q Do CBS or banks have ‘blacklists’?

A CBS doesn’t have such a list, but banks do keep a ‘negative list’ with names of clients whose debts were written off. For instance, if you default on a $5,000 loan, that will go into your history, though the sum is too small to justify the bank suing you.

Q If my credit application fails, will this fact appear in my record?

A No. Lenders do not provide this information to CBS.

Q If one bank denies me credit, will others also reject me?

A Not necessarily. A different lender might look at the information differently, or weigh other factors. If you have been denied credit, you can review your credit report at CBS free of charge.

Q When is an account classified as a ‘default’?

A Typically, an account is at least 90 days overdue before it is tagged as being in default. It is a commercial decision made by the banks, not CBS.

Q If I’m late in paying the minimum sum on my credit card but the bank waives the fees, is the late payment still recorded in my report?

A Yes. Even if the bank waives your fees, it has already been auto-recorded that you paid late.

Source : Straits Times - 3 Jun 2007

Q If I buy a property with an existing tenancy, what are the legal implications, given all of the following circumstances:

1. The option specifies that the property is sold with an existing tenancy.

2. However, the existing tenancy agreement between tenant and property owner does not incorporate an explicit clause to allow the owner to transfer all rights and obligations under the tenancy agreement to the new owner or purchaser via a simple notification to the tenant of a change of ownership of property.

3. I had proposed to pay all legal costs in respect of a deed of assignment to be executed for the existing tenancy agreement so that I would assume all current rights and obligations of a landlord owner in the tenancy agreement.

This would have freed the existing landlord owner from the tenancy contract. But for some inexplicable reason, the seller does not regard this as necessary and refused to sell his property on that basis.

I had proposed that the deed of assignment be prepared by a lawyer. His estate agent advised him against this - even though I thought I was being fair to all parties: buyer, seller and tenant.

If I agree to buy his property on his terms, no deed of assignment will be executed between seller and buyer in respect of the tenancy agreement.

4. The seller is agreeable to transferring the balance of the rental deposit to me upon completion of the sale, after first deducting all dues owed by the tenant to him as the existing owner.

If the tenant refused to allow the transfer of deposit to me as the new owner, the balance would be transferred to my lawyer as stakeholder and it would be held till completion of the tenancy.

However, my lawyer does not want the responsibility of being the stakeholder.

Please advise me of the legal implications if I proceed with the purchase of the property under the vendor’s terms.

Is it implicit that all rights and obligations of a tenancy agreement are still binding between the property buyer and tenant even though there is no deed of assignment executed between buyer and seller in respect of the agreement?

Moreover, the existing tenancy agreement does not explicitly allow the transfer of tenancy contract to the new owner - it is silent on this point.

If there is a breach of the tenancy agreement, can I pursue legal action against the tenant?

Can the tenant pursue legal action against me as landlord if I fail to honour terms of the agreement?

A NORMALLY, the tenancy agreement does not incorporate an explicit clause to allow the owner to transfer all rights and obligations under the agreement to the new owner via a simple notification to the tenant of the change of ownership of property.

However, the law does recognise that with the transfer in ownership, all rights and obligations under the tenancy agreement will pass to and be binding on the new owner and the tenant.

There is therefore no need to execute a deed of assignment.

As the new landlord, you could pursue legal action against the tenant if he breached the terms of the tenancy agreement.

Similarly, the tenant could take action against you if you breached the terms.

However, the situation would be different for the rental deposit.

The court has held that the obligation in respect of the rental deposit does not pass as it is a personal contractual obligation.

Hence, the owner cannot transfer the rental deposit to the new owner unless he does so with the tenant’s consent.

In some cases, a three-party agreement called a Deed of Novation is executed by the previous owner, the new owner and the tenant to provide for the transfer of the rental deposit.

Again, this would require the consent of the tenant. The seller has suggested that your lawyer be the stakeholder for the rental deposit till completion of the tenancy.

This is one way to resolve the problem. If your lawyer refuses to be the stakeholder, you might want to suggest that the seller’s lawyer be the stakeholder instead.

Ang Kim Lan Director Goodwins Law Corporation

Advice provided in this column is not meant as a substitute for comprehensive professional advice.

Source : Straits Times - 3 Jun 2007

First Reit announced yesterday that it will add a $12.8 million nursing home to its portfolio.

The Lentor Residence - a 148-bed home with a gross floor area of almost 3,000 sq m - is the third nursing home in Singapore that the real estate investment trust (Reit) has bought since it was listed by Indonesia’s Lippo Group last December.

The deal will expand First Reit’s asset base by 14 per cent. It is also expected to reap $998,400 in annual rent from its lease of the Lentor Avenue nursing home to First Lentor Residences.

‘Not only will this acquisition further strengthen our income stream, it will also enlarge First Reit’s asset portfolio, raising it to $293.1 million,’ said Dr Ronnie Tan, chief executive officer of Bowsprit Capital Corporation, which manages First Reit.

First Reit, which is Singapore’s first health-care Reit, also owns a hospital and four properties in Indonesia.

Its new acquisition will be funded fully by a $90 million term loan from OCBC Bank issued in January this year.

‘Our gearing after the acquisition will still be relatively low, giving us financial flexibility to undertake more acquisitions that fit in with our strategy,’ said Dr Tan.

The firm aims to grow its asset base to $500 million within three years of its initial listing, but Singapore may not be the next destination.

Dr Tan said: ‘We will continue to look for quality health-care assets in different parts of Asia so as to reduce our reliance on any single country or type of tenants.’

Source : Straits Times - 2 Jun 2007

HONG LEONG ASIA (HLA), a subsidiary of Singapore’s Hong Leong Group, has been awarded an exclusive contract to supply ready-mixed concrete to the Marina Bay Sands integrated resort (IR). The contract could be worth as much as $210 million.

Under the contract, HLA will supply about 800,000-1.2 million cubic metres of ready-mixed concrete for the construction of the IR until it is completed in 2009, the company said yesterday.

While HLA declined to provide the value of the contract, industry players said that price of a cubic metre of ready-mixed concrete ranges between $167-$175 at present. HLA’s contract could, therefore, be worth anything between $133.6-$210 million depending on the price of and amount of ready-mixed concrete it supplies.

‘This award, as the sole supplier of ready-mix concrete to the Marina Bay Sands integrated resort, will have a positive effect on the group’s building materials unit,’ said HLA CEO Teo Tong Kooi.

The contract from Marina Bay Sands follows an earlier one awarded to CSC Holdings subsidiary L&M Foundation Specialist Pte Ltd. Last month, CSC Holdings won a $240 million deal for piling and diaphragm walls for the IR.

Contracts awarded by the IR are expected to boost the construction sector here - set to grow in 2007 after years of being in the doldrums. Industry regulator Building and Construction Authority expects deals awarded here to reach $17-19 billion this year. HLA’s shares climbed 10 cents to close at $2.73 yesterday. The stock has surged 60.6 per cent since the start of the year.

Source : Business Times - 2 Jun 2007