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I REFER to the article, ‘Case, property body seek licensing of housing agents’ (ST, Sept 26).

I fully support the move towards industry self-regulation of real-estate agents by the Institute of Estate Agents (IEA). It is long overdue.

The launch of a ‘practising certificate’ for all its members is a step forward. It is not surprising that the IEA is doing so as, for years, it had sought to regulate estate agents.

With IEA as the national regulatory body, consumers can be sure of better control over housing agents.

Perhaps the relevant government body can recognise, endorse and support IEA’s new initiative at self-regulation.

The Consumers Association of Singapore (Case), HDB, the Small Claims Tribunal, Immigration and Checkpoints Authority and now NTUC have been working closely with IEA because they recognised it as the proactive body representing real-estate agents. Over the last year or so, IEA has also been more proactive in organising public forums and educational talks for both agents and consumers.

Both Mr Yeo Guat Kwang, president of Case, and Mr Lim Swee Say, Minister, Prime Minister’s Office, have voiced their support for the IEA initiative to promote high standards of professionalism and integrity in real-estate agents. Self-regulation will boost the image of agents as well as the interests of consumers. The latter will now have a body that they can turn to for redress.

It is timely that real-estate agents be regulated because of the rise in complaints, as reported by Case.

Dave Lau Executive DirectorRoof Real Estate Group

Source : Straits Times - 3 Oct 2007

I REFER to the article, ‘Case, property body seek licensing of housing agents” (ST, Sept 26).

I fully endorse the positive move as we are behind many developed countries which already have this in practice.

I was at the public forum on Sept 25 organised by the Institute of Estate Agents (IEA) with speakers from HDB, Case, the Immigration and Checkpoints Authority, the Small Claims Tribunal and NTUC. NTUC secretary-general Lim Swee Say and Case president Yeo Guat Kwang were there to grace the event.

Firstly, let me applaud IEA for initiating the launch of its ‘Practising Certificate’ for its members. By taking this first step, IEA shows that it is seriously concerned with the regulation of estate agents in Singapore.

However, it needs the support of the various government bodies to recognise and endorse its intention so that complaints lodged with Case can be reduced.

Mr Yeo’s remarks that complaints lodged against real estate agents have almost doubled in the last two years (991 last year) makes one ponder how many of these complaints are from agents who have passed the Common Exam for Housing Agents (Ceha).

Most of its complaints can be avoided if agents were more ethical in their business transactions. I suggest that besides the ‘paper qualification’ of Ceha, agents should also go through a course on ‘code of conduct and ethics’ before they are given their practising certificate.

To eliminate ‘rogue agents’, there must be a system. If agents breach any code of conduct and ethics during their course of duty, they should be given a firm warning. If they continue to practise in an unethical manner, they should be barred from practice. In this way, we can be sure of high standards of professionalism and integrity.

During the forum, Mr Lim and Mr Yeo voiced their support of IEA in promoting real estate professionalism. Mr Lim also mentioned that the Government is looking into various categories of workers, comprising Blue, White, Silver, Gold and No collar workers. Real estate agents should be categorised as Gold collar workers as they are professionals. They should be regulated, go through a comprehensive course on ethical behaviour and pass Ceha to qualify them as full-fledged professionals.

Dennis Wee Chuan Peng

CEO

Dennis Wee Group

Source : Straits Times - 3 Oct 2007

BIG gun property developers who lined up for a prime residential site in the Kovan area were pipped in the bidding by a firm hardly anyone has heard of.

Duke Development placed the top bid of $290 million for the 190,000 sq ft site in Simon Road, trumping high-profile rivals Far East Organization, Hong Leong Holdings, Frasers Centrepoint and Allgreen Properties.

Duke is believed to be a group of private investors with a pair of top dealers as shareholders.

A company search turned up Mr Han Seng Juan and Mr David Loh as Duke shareholders. They are former executive directors at UOB Kay Hian, the brokerage arm of United Overseas Bank.

Both Mr Han and Mr Loh, who are believed to be related, also hold shares in Cybertech Communications and Healthstats International, among other companies.

Their winning bid works out to about $437 per sq ft (psf) per plot ratio, and is a ‘reasonable bid’, said CB Richard Ellis Research executive director Li Hiaw Ho.

Mr Li believes this offer can break even at about $800 psf for the finished condominium units, which are likely to sell at between $850 psf and $950 psf.

Nearby Kovan Melody has sold out all 778 units, a testament to the strong demand for homes in the area. The units are now being resold in the secondary market for more than $800 psf, said Mr Li.

He added that part of the area’s attraction are the good schools in the vicinity, such as Rosyth School and Maris Stella High School.

A condominium with about 555 units can be built on the Simon Road site, which has a maximum gross floor area of 664,337 sq ft.

Apart from homes, the plot can also host service apartments, said the Urban Redevelopment Authority.

Source : Straits Times - 3 Oct 2007

Prime office rents climbed 16.7 percent in the third quarter to S$12.60 per square foot a month from the previous quarter. This was up 82.6 percent from a year ago.

According to CB Richard Ellis, prime rents have exceeded the historical peak of S$11.50 per square foot a month in 1990.

Grade A office rent saw a smaller quarterly increase of 13.7 percent to S$14.90. However, compared to a year ago, the gain was over 96 percent.

CBRE is expecting more modest rental growth as tenants become more resistant to rental hikes and are more prepared to explore lower-cost locations and alternative premises options.

Source : ChannelNewsAsia - 2 Oct 2007

Observers view supply increase as a signal to calm market amid high property prices.

THE Government has sent its strongest signal yet that it plans to increase the supply of homes and residential sites - a move that comes amid soaring real estate prices.

It will offer 6,000 new Housing Board flats over the next six months and might release more land for private homes next year if necessary.

The initiative comes as lower-end homes see a price spurt that is finally starting to match that in luxury homes.

Property consultants said the increased supply is the latest Government move to calm the market.

‘The Government is seeing a very strong take-up for homes, and it wants to avoid panic buying,’ said Mr Nicholas Mak, the director of research and consultancy at Knight Frank. ‘So it’s just telling potential buyers there is a lot of supply out there.’

Prices of entry-level private homes in suburban areas were 8.1 per cent higher in July to September than in the previous three months. The pace about matched that set by more expensive homes in the central region, going by initial estimates out yesterday.

In the same period, prices of HDB resale flats jumped by 6.5 per cent. This is double the 3 per cent rise in the previous quarter and is by far the biggest quarterly jump since 1999.

Given the recent ‘good response for new flats’, HDB will release a slew of new units in the coming months. Of these, 4,500 will come under the Build-to-Order (BTO) system. Another 1,500 units will be in three new Design, Build and Sell Scheme (DBSS) sites in central and eastern Singapore.

So far this year, HDB has released 2,700 BTO flats - about the same number as for the whole of last year. In the same period, it has sold a DBSS site at Boon Keng and launched another at Ang Mo Kio. The two combined can host at least 1,100 units.

HDB also said it ‘will continue to monitor the market situation closely, to ensure that there is an adequate and affordable supply of flats’.

A similar reassurance was issued by the Urban Redevelopment Authority (URA) with respect to private homes. It reiterated that it ‘will continue to monitor prices closely’.

In an unusual move, the agency added that it is reviewing the Government Land Sales scheme, launched every six months, for the first half of next year. It said it ‘will make available more sites…if the demand continues to remain strong’.

Experts interpreted this to mean that the URA intends to put out more sites for private home development, especially under its confirmed list.

The confirmed list system offers sites for sale outright, while the other option - the reserve list - follows a more cautious approach. Reserve sites are put out only when a developer submits a minimum acceptable bid.

While consultants believe the new HDB flats can be absorbed easily, some question the need for more land for private homes.

‘I don’t think there would be a glut on the HDB side,’ said Knight Frank’s Mr Mak. ‘If there is any risk of oversupply, it would be with private homes, three to four years from now.’

He noted the record run in collective sales in the past two years. Even if developers can sell all the new homes on these sites, those buying to rent out might not be able to find enough tenants when all the homes are finished.

This could bring rents and prices down, said Mr Mak. But for this year, he expects a record take-up of 15,000 new homes, compared with 11,000 last year and 7,500 in an average year.

On the other hand, collective sales will remove about 9,000 homes from the market, said Mr Ku Swee Yong, the director of marketing and business development at Savills Singapore.

‘If job growth continues to be strong, absorption may not be the problem; actually, there may not be enough to go around,’ he said.

The URA also removed a hotel site in Balestier from its land sales list yesterday. The 0.86ha site has been on the reserve list for a year or so, but the URA is reviewing its land use together with that of other vacant plots nearby.

Source : Straits Times - 2 Oct 2007