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BYLINE: Lu Keehong, Singapore

I WAS surprised to learn that the new HBD flat prices are to be influenced by resale market prices (’More supply but HDB prices will go up: Mah’, BT, Nov 29).

I wonder whether ‘new’ HDB prices came down during the extremely poor resale period of five or six years ago?

If they did come down, did they ever touch the ‘cost plus’ level, including the ‘value’ placed by the government/HDB on state lands upon which the flats are built?

Since when did resale prices decide the cost of building a flat? How much money did HDB make from selling its new flats over the last five years?

The article also reveals that the property market is not a free market but a ‘controlled’ one as the government controls the supply side. There is thus no need to panic, as Singapore still has plenty of land to build cheap and affordable and high-quality housing for its citizens.

For the expensive and luxurious segments, permanent residents and other new migrants can afford them.

Source : Business Times - 30 Nov 2007

Some of the 99-year leasehold residential land parcels went for bargain prices.

THE Singapore Land Authority (SLA) yesterday auctioned off six 99-year leasehold residential land parcels for some $30.6 million in all - but some of the sites went for bargain prices.

A 16,690 sq ft good class bungalow (GCB) site at Eng Neo Avenue was picked up by a buyer for at the starting auction price of $6 million - which works out to $360 per square foot (psf). The buyer, Foo Chee King John, said that he was lucky to have won the site at such a good price.

‘Leasehold land on Sentosa can go for over $1,000 psf,’ he pointed out. The land, he said, is for his own private use.

And another GCB plot, also on Eng Neo Avenue, was sold to individual buyer Hu Nan Lee for $12.1 million - significantly above the starting price of $9.5 million. But the 29,200 sq ft site was still considered a good buy as it went for $414 psf.

The auction was SLA’s first for infill sites, the government agency said. Over 120 individuals and companies turned up for the auction, including professionals, businessmen, construction companies and niche developers.

Other than the GCB sites, SLA also auctioned off one other site in one of Singapore’s prime districts - a 6,290 sq ft semi-detached housing plot Moonbeam Walk, which is in District 10. The site fetched $3.9 million (as compared to the starting bid of $3.3 million), which works out at $626 psf.

The three other sites, at Somme Road, Jalan Insaf and Bedok Close went for $3.8 million, $3.5 million and $1.3 million respectively. The price works out to $353 psf for the Somme Road site, $508 psf for the Jalan Insaf site and $307 psf for the land parcel on Bedok Close.

The Somme Road plot proved to be the most popular of the six land parcels on offer and there were altogether 64 bids before it was awarded to Sarda Pte Ltd.

‘We are very encouraged by the strong bids shown at this auction,’ said SLA chief executive Lam Joon Khoi. ‘We will consider releasing more infill sites to help meet the current market demand for high quality residential properties.’

Source : Business Times - 30 Nov 2007

JTC Corporation said yesterday it has awarded two industrial sites - one at Commonwealth and the other in Jalan Tepong.

The 120,300 sq ft site at L1 Commonwealth Drive/Lane went to WHB Pte Ltd, which submitted the highest of 14 bids received. WHB paid $51.2 million, or $170 per square foot per plot ratio (psf ppr). The 30-year leasehold site has a 2.5 plot ratio, giving it a maximum floor area of 300,700 sq ft.

The Jalan Tepong site was awarded to EL Development, which is fully owned by Evan Lim & Co Pte Ltd. The company submitted the highest of six bids received. It paid $9.5 million, or $30 psf ppr, for the site. The 23-year leasehold site has a land area of 224,600 sq ft and 1.4 plot ratio, giving it a maximum floor area of 314,500 sq ft.

The tender for the L1 Commonwealth Drive/Lane parcel was launched on Sept 21 and closed on Nov 2. The tender for the Jalan Tepong parcel was launched on Sept 28 and closed on Nov 9.

JTC is Singapore’s biggest industrial landlord.

Source : Business Times - 30 Nov 2007

HO BEE Group and Banyan Tree Holdings have won two of the seven categories in the inaugural Mipim Asia Awards held in Hong Kong.

Mipim, the Marche international des professionnels de l’immobilier, is a real estate and city development fair that also honours innovative and outstanding buildings.

Over 100 projects from 15 different countries across the Asia-Pacific region were submitted to the Mipim Asia Awards.

‘The quality of the final projects is a testimony to the high standards in Asian real estate today,’ commented Robert Lie, president of the jury and chairman of ING Real Estate Investment Management Asia (Hong Kong).

Ho Bee on Wednesday won in the Residential Developments category with its Sentosa development, The Berth by the Cove, by architects Axis Architects Planners.

This is the first award for The Berth, and Ho Bee general manager of marketing and business development Chong Hock Chang added that it is also ‘the first true waterfront housing in Singapore’.

He said: ‘The development is designed such that you either face the vast South China Sea or the enchanting waterways within the Cove. Further, it is also the first of its kind to have its own berthing facilities.’

On the efforts of Axis Architects, Mr Chong said: ‘They may be a local architect but the team has proven themselves to be able to compete against the best in the region by helping us bag this prestigious award.’

Banyan Tree Holdings won in the Hotels and Tourism Resorts category with its Banyan Tree Lijiang in China by Architrave Design & Planning.

Banyan Tree managing director (Design Services) Ho Kwoncjan explained that each Banyan Tree Resort is designed to blend into its natural surroundings, using indigenous materials as far as possible and reflecting the landscape and architecture of the destination.

‘Whether redesigning rustic Tibetan farmhouses as lodges, or visualising a resort within an intimate village setting, we promote the uniqueness of indigenous cultures,’ he said.

Source : Business Times - 30 Nov 2007

Powermatic will lease back the property for 5 years.

MACARTHURCOOK Industrial Reit (MI-Reit) has signed an agreement to acquire an office and warehouse facility in the Tai Seng industrial precinct for $25 million.

Under the agreement, Powermatic Data Systems, which is listed on the Singapore Exchange, will lease back the property at 135 Joo Seng Road for five years with the option to extend for another five years. The lease will commence upon the completion of the acquisition, which is scheduled for February 2008.

The property was transacted at the initial yield of 7.3 per cent, and will be accretive to MI-Reit’s distribution per unit following completion, said MacarthurCook Investment Managers (Asia) Ltd (MCKIM), the manager of the Reit.

Chris Calvert, CEO of MCKIM, said: ‘We are pleased with the acquisition of 135 Joo Seng Road. The inclusion of SGX-listed Powermatic as one of our tenants further enhances our portfolio, of which approximately 70 per cent is comprised of SGX-ST listed companies or their subsidiaries.

‘This acquisition provides unitholders with the twin benefits of medium to long-term income stability and also the opportunity for capital and rental value growth, which will form the steadily increasing demand for quality office accommodation in the Tai Seng industrial precinct.’

The inclusion of the property in MI-Reit’s portfolio will further contribute to income stability through enhanced tenancy and property diversification, and reduced exposure to its largest tenant, UE Tech Park Pte Ltd, from 31.6 per cent to 29.4 per cent of portfolio income, MCKIM said.

With the latest acquisition, MI-Reit will have total investments of approximately $642.6 million in 22 properties.

It intends to finance the acquisition wholly with debt but may consider alternative means of funding as appropriate. Assuming 100 per cent debt financing, the acquisition will increase MI-Reit’s committed gearing level from 36.7 per cent to 39.5 per cent.

Source : Business Times - 30 Nov 2007