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Owners waiting for the right time to sell

Bungalow at 727 Bukit Timah Road

The land is worth $15 million, but the bungalow lies vacant as its owners reckon they can reap even more when the property market heats up further.

One of the owners, Mr Quek Kim Heng, said: ‘We have received many calls from real estate agents and brokers, but we’re still waiting for the right time.’

The Quek family, which is in the wholesale business, has owned the site since the 1950s, and for a period, the 10,000-sq-ft bungalow housed a family of seven.

But as the children grew and set up homes elsewhere, the parents also decided to move out seven years ago as they felt the place was too big.

The place was quite old and rundown but they did not want to spend money renovating it for the rental market, so it was left vacant, said Mr Quek’s mother.

Property consultants estimate that a similar-size bungalow in that location could fetch about $600 to $700 psf but the land could accommodate a far larger home.

Hidden treasure on ultra-prime land

Chee Guan Chiang House 25, Grange Road

The bungalow is dilapidated, the site is shrouded by trees and looks nondescript. Oh, and it is worth a whopping $425 million.

This is because the site is ultra-prime - at the corner of Grange and Devonshire Roads, opposite the Youth Park.

That location and a plot ratio of 2.8 means about 10 to 13 blocks of up to 36 storeys can be built on the 100,000-sq-ft site. The new apartments could be sold for $1,600 to $1,800 psf, say property consultants.

While it occupies a land area equivalent to about 71/2 Olympic-size pools, thick foliage obscures the site from view so few passers-by take much notice of it.

The house was so called because it was built by Mr Chee Guan Chiang, eldest son of late Malacca-born tycoon, Chee Swee Cheng, the first chairman of the OCBC group.

It was designed in the 1930s by well-known Singapore architect Ho Kwong Yew, who also designed the original Haw Par Villa, which was destroyed during World War II.

Singapore’s most expensive warehouse?

Grand Hotel 25, Still Road South

Its glory days have long gone but the old Grand Hotel still has one claim to fame - the site’s $300 million value probably makes it Singapore’s most expensive warehouse.

‘It is used primarily as storage for unwanted furniture,’ said Mr Andrew Lim, an accountant for the Lee Rubber Company, which owns the land.

Lee Rubber - part of the Lee Foundation, which owns about 30 per cent of OCBC Bank - did not say why the prime site remained undeveloped.

Its 60,000 sq ft plot could accommodate about 10 small-size blocks of up to five storeys each, with a selling price of $850 to $900 psf, say property consultants.

The building was built by an Indian cattle merchant in the 1900s as a house for himself and his many wives. He named it Karikal Mahal.

Around 1948, it was sold to Lee Rubber, which renovated and renamed it the Grand Hotel, though it was only a 20-room budget operation.

A caretaker, who gave her name only as Madam Poon, said: ‘I have been working at the hotel since my 20s.

‘The land used to extend all the way over there. The sea used to be right in front of the hotel.’

The land Madam Poon was referring to is also owned by Lee Rubber and is larger than the hotel site. It is 78,000 sq ft - almost the size of a football field.

A bungalow located at one end, in front of the Marine Parade Community Centre, has been conferred conservation status.

Architectural writer Dinesh Naidu believes the Grand Hotel should also be so listed.

Its bay windows, roof parapet balustrades and decorative arches, contain a mix of elements that may be partly modelled on the Italianate style, said Mr Naidu.

‘It’s a marker of a bygone era, before the East Coast area was reclaimed in the late 1960s. It gives a sense of history and romance. It could be converted into a museum, clubhouse, or even a boutique hotel.’

And according to Lee Rubber’s Mr Lim, some people are not aware the glory days have passed.

He said: ‘A few weeks ago, I received a phone call from someone asking to book a room. I have no idea where he got the number from.’

Source : Sunday Times - 22 Apr 2007

Events are being lined up to create activity before most of the major projects are completed in 2010

The government and the private sector are working hard to create more buzz around Marina Bay so the area is bursting with activity long before major projects like the Marina Sands resort and Gardens by the Bay go up.

At least eight events to pull in tens of thousands of visitors have been lined up for the remainder of this year - from blockbusters such as the National Day Parade to more light-weight but still heartwarming outings such as Kids’ Dash, a race for children.

‘Over the next two years, Marina Bay will become the area for many new activities,’ says Mark Goh, head of the Marina Bay Development Agency (MBDA), set up in 2004 to help make the area more vibrant.

The idea is to create a buzz and maintain this buzz until most major projects are completed in 2010, says Mr Goh. MBDA wants to change the perception that Marina Bay is ‘just a financial hub’.

The agency, with other government bodies and private sector players, has lined up several events spread over the next eight months.

The biggest will no doubt be the annual National Day Parade. A floating platform being built in the bay to host large events will be ready in time for the parade - its first big show.

BT understands that supporting activities are also planned by the same committee that is organising the parade.

Besides these, the authorities are trying to make Marina Bay a hot spot for sport. Four sporting events - collectively called the Marina Bay Urban Challenge - will be held over the next few months. The first is the Oakley City Duathlon on May 20. An expected 1,500 participants will run and cycle 55km in a city landscape of urban skyscrapers and scenic waters within the larger Marina Bay area.

Next up is a vertical challenge, planned for September, in which about 500 runners will scale stairs in a tall building - possibly One Raffles Quay.

The two other events are the Great Eastern Women 10K on Oct 21 and Kids’ Dash on Nov 11. For the Great Eastern Women 10K, about 6,000 women are expected to run along a route starting at Esplanade Drive and ending at the Padang.

And for Kids’ Dash, about 3,000 children are expected to take part in a variety of activities, including 5km runs and potato sack races.

All four events are organised by private sector company Enterprise Sports Group with government support. The events will add to two previously announced sporting activities in the area: WaterFest by the Bay and an Ironman challenge.

WaterFest by the Bay is a weekend fiesta to showcase water and beach sports such as canoeing, jet-skiing and wakeboarding. The Singapore Sports Council, which is supporting the event, hopes to draw about 15,000 people.

And triathlon-lovers can look forward to the AVIVA Ironman challenge, in which 600 triathletes are expected to compete for 75 slots in the Ford Ironman 70.3 World Championships in Florida.

More events may be announced. A lot of the events are private sector-led and funded, and the authorities will continue to support good ideas, says MBDA’s Mr Goh.

Other than that, discussions are under way to integrate the promenade at Marina Bay with both the Gardens by the Bay and the Marina Bay Sands integrated resort once they are up.

‘With the IR, the floating platform, Collyer Quay, BFC (Business and Financial Centre) and the Gardens, the Marina Bay area is set to be a attractive lifestyle hub,’ Mr Goh says. ‘We are just trying to add to that.’

Source : Business Times - 21 Apr 2007

With strong demand for high-end property, S’pore’s real estate market is red-hot again

Singapore’s private property market is on the rise after years in the doldrums.

It looks like the boom times are back for real estate, given strong demand from locals and expatriates alike.

There is talk that it is just speculation behind the frothy market, with reports of investors flipping purchases for hefty profits and anecdotal evidence of wealthy expatriates snapping up a half dozen or so luxury apartments at property launches.

Sellers have not been complaining, with prices of non-landed private properties in the heart of Singapore’s prime area up by 17 per cent last year, while prices outside that area are up between 3 per cent and 4.2 per cent.

New property launches are also giving their older neighbours a boost, with reports that the asking prices of existing developments have jumped by between 10 per cent and 50 per cent in the space of weeks.

Secondary market prices for the Caribbean at Keppel Bay were pegged at around $1,000 per square feet (psf) early this year.

But when the neighbouring Reflections at Keppel Bay launched at $1,900 psf, it sent the asking prices for the Caribbean up to the $1,200 to $1,500 psf range.

The bulk of the price increases have been in the luxury segment, but that is expected to filter down to the rest of the market, with some analysts tipping as much as a 20-per-cent increase in prices this year.

While there may be a speculative element to these price gains, data also suggest there is strong underlying demand for property — and that demand is set to grow in the next few years.

According to the 2003 master plan from the Urban Redevelopment Authority, the country’s land-use planning agency, there are 324,000 homes in what it defines as Central Singapore.

Stripping out public-housing flats from the Housing Development Board in the region — about 196,000 — leaves about 128,000 private condominiums and houses in the Central region.

That is not very many, when you consider there are 55,000 high-net-worth individuals — those with net assets of at least $1.5 million, excluding their primary residence — in Singapore, according to the 2006 Merrill Lynch/Capgemini report.

The current supply of properties looks even smaller given there are about 140,000 households with monthly incomes of above $10,000, according to the Government’s 2005 household survey.

At the very least, this suggests the current supply of private property in the central area should be met by demand.

But there is also demand coming from people who have participated in en bloc sales, from those pocketing windfalls from the booming stock market amid relatively low mortgage rates, and from foreign investors in the property market.

Even more demand can be expected given Singapore’s plans for an eventual population of 6.5 million, from about 4.5 million now. The total population grew about 142,000 or 3 per cent last year, helped by the Government’s efforts to woo skilled foreign workers.

Expatriate workers have already helped push rentals to their highest levels since 1999. Demand from this group will increase — last year Singapore’s non-resident workforce grew about 10 per cent, and there were about 90,000 skilled workers and professionals among them.

Savills Singapore says rents for private homes were up 18.5 per cent in the past year. Citigroup thinks rental rates could rise 30 per cent to 40 per cent this year as occupancy hits record highs.

Recent data show a shortage of supply looming with the number of private residential units due for completion at just 5,000 this year and 7,000 in 2008, according to Citigroup.

Last year, there was demand for 9,000 units, while 10-year average demand is at 8,000.

All told, local and foreign demand for private property in Singapore is set to grow, which, coupled with shortages in supply, put the real estate market on a path for red-hot growth over the next few years. — Dow Jones

Source : Weekend Today - 21 Apr 2007

Homeowners warming to idea of eco-housing but contractors must be educated, too

A Home that draws energy from the sun, breathes with the wind and drinks from the rain. It’s the stuff of dreams, for an environmentalist at least.

Situated at the prestigious Sentosa Cove, this gem of an eco-home was dreamed up by a Singaporean doctor, who only wants to be known as Dr Lau.

When the home, now in its final design stages, is completed in about a-year-and-a-half, it will boast photovoltaic technology that will generate electricity from sunlight; a rainwater-harvesting system for watering plants and flushing toilets; heat-reflecting paint; and elements such as natural cross ventilation, lush greenery and water features.

“I’ve long wanted to do something like this,” said Dr Lau. “We can live in a sustainable manner and hopefully prevent climate change from getting worse.

“I want to show it can be done, albeit at a higher price.”

There aren’t many Singaporeans like Dr Lau who are passionate enough to take responsibility for the climate change issue by starting, literally, in their own backyards. But with Earth Day falling on this Sunday, there’s no better time to think about doing so.

Architects say that while building one’s own eco-home is not a growing trend — this is far beyond the means of most people — eco-awareness is slowly taking root in the Singapore psyche.

Said Dr Nirmal Kishnani, a green building design consultant with CPG Consultants: “Anecdotally speaking, people are increasingly conscious about energy issues when buying a home.”

This awareness, perhaps more evident in larger residential developments, is starting to have a knock-on effect on developers of residential properties.

Recently, the Housing and Development Board (HDB) launched its first Eco-Precinct, the build-to-order Treetops@Punggol development, which saw 3,356 applications for the 712 units on offer — making it oversubscribed by more than four times.

Industry watchers say the Building and Construction Authority (BCA) Green Mark Scheme, a green building rating system introduced in 2005, was a huge catalyst in the building of green homes.

“Prior to the Green Mark, we spent a lot of time educating project teams and clients on how to operationalise green thinking. But with the Green Mark, many technical requirements were collapsed into categories and actions, much like a to-do checklist,” said Dr Kishnani. “Now, some developers come to us and say, ‘I want my building to be of Gold standard’ — and that immediately gives the project team a benchmark.”

Added Associate Professor Lee Siew Eang of the National University of Singapore (NUS) School of Design and Environment, and the director of the university’s Centre for Total Building Performance: “‘Green building’ through individual effort has been on and off on a small scale, but with the launch of the Green Mark, the number of people coming forward to design and meet that requirement has been growing surprisingly fast.”

According to the BCA, the increase in the number of applications for the environmental sustainability scheme for buildings has been “very significant”. Already, more than 50 applications have been submitted this year, more than the total number of applications for 2005 and last year put together.

A total of 34 buildings, 16 of them condominiums, have been accredited in the last two years. Another 27 will be receiving awards in the first half of this year, including — for the first time — a landed residential property.

But even as homeowners catch on to the idea that they can go green at home, the people they hire to build their homes often resist this. Most contractors still prefer to go with conventional designs and offer cheaper, less efficient appliances.

Mr Bobby Han, 41, who decided to integrate a rainwater-harvesting system into his semi-detached home — which employs energy efficient and LED lights, as well as windows, glass roof tiles and light-reflecting ducts to maximise natural light — found the first person he had to convince was his own contractor. The latter complained about his design and called the feature “troublesome”.

“We still have a long road ahead training contractors to understand the issues,” said the energy consultant, whose utilities bill for his seven-member family now averages $200 a month. Similar-sized families living in semi-detached houses often run up costs of more than $500 in utilities.

Knowledge gaps stand in the way of any great leap in the popularity of eco-design, said veteran architect Tay Kheng Soon.

“There are a host of new technologies available, but very few people know about them,” said Mr Tay, citing the harnessing of wind power in homes as one example. This has not taken off here, he said, because “capital cost is an issue where the state must step in”.

But most experts agree the main push has to come from the market itself.

“At the end of the day, developers are looking for buyers who are looking for green homes, but they are still not convinced there is strong demand. This will come perhaps in one or two years, when those who live in eco-friendly homes enjoy the benefits and send the message out,” said Prof Lee, who heads NUS’ Energy Sustainability Unit.

Only when the value of such energy-efficient homes outpaces other homes will “more people scramble for them”, he said.

He observed that, currently, not many projects are conducting enough tests and technical appraisals to ensure the design of an eco-home performs better than a typical home’s.

For example, a greater degree of care has to go into ensuring that building orientation, ventilation and lighting is of such high quality that residents can stay comfortable without turning on the fan or air-conditioner.

The low cost of utilities serves as another market disincentive for energy-consciousness in homes. Said Dr Kishnani: “Many don’t pay attention to wastage because energy is relatively cheap. As a homeowner, I would alter my behaviour when it starts to hurt, such as if there is a higher tariff for excessive usage.”

In trying to speed up the process of “greening” more homes, it is difficult to shy away from asking for more Government intervention.

On Tuesday, Senior Parliamentary Secretary for the Ministry of Environment and Water Resources Amy Khor said the Government was considering including the optimal level of electricity that households should use in a national energy efficiency plan. But no deadline has been set.

“I am pretty sure eventually the answer will lie in a hybrid mechanism — part legislation, part energy-pricing and part awareness-building through instruments such as the Green Mark,” said Dr Kishnani.

Mr Tay said energy efficiency criteria must be toughened. “The total energy required per household should be declared. The Green Mark must become more stringent.”

There is also a need for strong legislative policies to bring down cost of going really green, say other industry players. A tax incentive for green credits is one option, said Mr Sim Boon Yang, co-founder of architect and design consultancy firm Eco-id.

“Green policies are still limited at this stage,” he said.

Source : Weekend Today - 21 Apr 2007

Designed by world-renowned architect

Filled with premium European furniture

All could be demolished in a matter of weeks
 
AS property prices continue to rise, so has the cost of condo showflat displays.

But is it getting crazy when developers are splurging millions just for show - only to tear it down in a matter of weeks?

For instance, drool over these pictures of a lavish designer showflat.

Keppel Land paid $8 million to build it.

It is possibly Singapore’s most expensive showflat, industry watchers said.

The previous record was held by City Developments Ltd (CDL) - its showflat promoting upmarket St Regis Residences cost $6m.

Average prices for a St Regis unit, which was launched last year, are about $2,700 psf.

Keppel Land’s latest project, Reflections at Keppel Bay, at an average unit price of about $1,900 psf, is a far cry from St Regis’ prices.

Yet, this extravagant showflat is seen as a worthwhile marketing investment.

The 1,129-unit project, launched last month, will be designed by New York’s Daniel Libeskind, who is known as the architect’s architect in the industry.

Mr Libeskind also had a hand in designing this multi-million dollar showflat, Keppel Land said, which is why it looks like an offshoot of the designer development.

COSTLY INVESTMENT

The hefty $8m that Keppel Land spent is just the cost of constructing the temporary structure and landscaping.

It’s even more expensive than most of the units it is selling.

The price tag doesn’t include the uber expensive European designer furniture and fixtures in the three suites, which boast international lifestyle brands such as Hansgrohe, Miele and Starck.

There’s even a Japanese baby grand piano in one of the suites.

It may look like an architectural marvel, but it won’t be here for long.

Sheer wastage?

Businesswoman Christine Lee, 52, doesn’t think so.

She was at the showflat with her friends and thinks it looks avant-garde from the outside.

Ms Lee said: ‘The developer has to put its best foot forward. Its showflat is its best marketing tool. It is, after all, selling a lifestyle. If you dislike the showflat, you won’t buy a unit.

‘So it makes business sense for it to splurge on its marketing tool.’

Businessman Tay Y J, 49, said he didn’t know showflats could cost so much.

‘It’s even more expensive than the units,’ he said. ‘But I guess if they’re marketing a huge multi-million dollar project, it’s justifiable to spend this money.’

The showflat, at 29,000 sq ft, is certainly one of the largest around with three different suites. It’s about the size of 10basketball courts and took 41/2 months to build.

Knight Frank’s research director Nicholas Mak said that the showflat creates awareness and is aimed at impressing well-heeled buyers.

He said: ‘In this case, the developer has spared no expense in creating it. Yes, you can argue that it’s excessive.

‘But if the developer takes a while to sell this project, than it’s a necessary expenditure in the long run.

‘In the bigger scheme of things, how much is this expense compared to their potential earnings from the project?’

If you’ve been property hunting, you’d realise that showflats have been getting swankier and more luxurious in this buoyant property market.

All the better to lure the buyers in, some may say.

Even the Housing Board has started marketing its units using showflats in recent years, something unheard of in the early days.

For example, developer Sim Lian Group spent $1.7m on its showflat to market the hugely popular and privately-built HDB flats in Tampines last year.

Keppel Land doesn’t think it is indulgent spending, since its showflat must be luxurious enough to attract its target audience - high net-worth individuals.

The unit sizes for Reflections range from 732 sq ft to 13,300 sq ft for the super penthouse.

An average three-bedroom unit at 1,109sq ft could set you back by at least $2m.

About 90 per cent of the 350 units launched so far have been sold.

The group’s corporate communications assistant, Ms Catherine Tan, said it has received positive feedback about the showflat. Many visitors were simply struck by its sheer size.

‘This is something that befits the property. If we’re getting a world-renowned architect for the project, the showflat can’t be lacking,’ she said.

And if the developer has already paid a premium for the designer architect, why should they quibble over the cost of the showflat, one marketing agent asked.

Mr Colin Tan, head of research and consultancy at Chesterton International, said: ‘If the selling point of this project is the design, the developer will want to show it off. And you can’t capture the essence of the design just by plans and model alone.

‘They’ll also want to show off the ‘wow’ factor of this design through the showflat.’

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LIFE CYCLE OF A SHOWFLAT

1 Showflat is built by developer either as part of actual project or as stand-alone unit. Keppel Land’s Reflections showflat at $8m (above and right) is probably the most expensive here so far This is something that befits the property. If we’re getting a world-renowned architect for the project, the showflat can’t be lacking.

2 Showflat will be opened during launch of project for prospective clients to view

3 Once the project is sold, which may take weeks, or months, showflat is demolished or sold off.

Furnishings which are on loan will be returned to shops, developer will keep the rest or reuse it GOT A VIEW?

Source : The New Paper - 20 Apr 2007