SGHOUSING.COM 新加坡房地产网

This is more than 6 times the expected number this year; over 70% in central region

A FLOOD of more than 31,000 completed private homes will hit the market between 2009 and 2010 - more than six times the number expected to be completed this year.

The dramatic increase in the amount of new property is likely to ease an escalating supply squeeze - and curb runaway rent increases - but relief is still a couple of years away.

Until 2009, the supply of new completed homes will be only comparatively modest, according to new government figures released yesterday.

Just under 11,000 homes are expected to be finished between now and the end of 2008 - slightly less than the 11,147 new homes developers sold last year.

This means the supply of completed properties will continue to lag behind demand until 2009, said property consultants.

They added that rents, already rising because of an influx of expatriates and the demolition of collective sale properties, will surge further.

‘Rentals and prices will probably strengthen until at least the end of the year, especially in the central region,’ said Dr Chua Yang Liang, head of Singapore research at Jones Lang LaSalle.

Rising private home rents - which have doubled over the past year in some cases - are already driving tenants to the more affordable public housing market and are starting to push up Housing Board rents.

This has led property experts to dismiss concerns about an oversupply in 2009, even with the profusion of new completed homes then.

‘The supply that is coming up is not alarming; it is reassuring,’ said Mr Nicholas Mak, director of research and consultancy at Knight Frank.

‘There’s going to be a tight supply until 2008, so the new supply in 2009 will help restore a certain balance, a new equilibrium.’

The new supply of completed homes should also help alleviate the spate of complaints from expatriates about recent rent increases, he added.

More than 70 per cent of these new homes will be in the central region, which includes Orchard, Marina, Bukit Timah, Queenstown, Bishan and Marine Parade.

‘This could help restore some of the confidence in Singapore’s competitiveness after all the talk about rising costs,’ added Mr Mak.

Dr Chua also said the active collective sales market will mean that displaced home owners will soak up most of any excess home supply in the market anyway.

But he admitted that the unusually large number of completed homes expected in 2009 may cause ‘adjustments in the market’.

‘The rate of increase in rents and prices may stabilise a bit before continuing to rise,’ he said, adding that they are unlikely to drop at all because ‘we are still in a growth cycle’.

‘We shouldn’t expect rents and prices to go down. It’s just a matter of a slower rate of increase,’ he said.

Another consultant, Mr Li Hiaw Ho of CB Richard Ellis Research,estimates that more than half of the new homes to be completed by 2010 could have already been sold.

‘With the government’s projection of a future population of 6.5 million, demand for new homes is expected to be taken up by newly-formed families, expatriates and foreign investors,’ he said.

The deluge of new completions expected in 2009 and 2010 will largely be a result of the massive wave of collective sales that have occurred over the past two years.

The large estate of Gillman Heights, for example, was sold en bloc recently with CapitaLand planning a development that will have double the number of existing units.

PRICE IMPACT

‘Rentals and prices will probably strengthen until at least the end of the year, especially in the central region.’

DR CHUA YANG LIANG, head of Singapore research at Jones Lang LaSalle

SUPPLY BALANCE

‘There’s going to be a tight supply until 2008, so the

new supply in 2009 will help restore a certain balance, a new equilibrium.’

MR NICHOLAS MAK, director of research and consultancy at Knight Frank

Source : Straits Times - 15 Jun 2007

A GROUP of heritage property lovers has saved part of a 95-year-old historical bungalow from the wrecking ball.

Instead, the entrance porch and stair hall of the unique, crescent-shaped building at 23 Amber Road will front a new high-rise building.

The Urban Redevelopment Authority (URA), the governing body on land-use in Singapore, told The Straits Times yesterday that given the competing needs for development and conservation on tiny Singapore, this was a ‘win-win solution’.

The Neo-Renaissance-style two-storey structure is the only house here designed by Regent Alfred John Bidwell, architect of the Victoria Memorial Hall, Goodwood Park Hotel and Raffles Hotel.

The bungalow was seen as unique because it was the only semi-circular colonial residence in existence here, said the group who fought to preserve it.

The site was bought by developer AG Capital last year for $8.9 million, and it had been free to tear the building down, as the house had not been included in URA’s list of more than 6,000 heritage buildings selected for conservation.

That is when the Historic Architecture Rescue Plan (Harp) group stepped in. The group of 40 people from diverse professions rallied to save the building through online petitions and e-mail requests to the Government.

On its part, the URA sounded out the developers about reviewing their redevelopment plans.

‘The developers were open to exploring alternatives instead of a complete redevelopment,’ said the URA.

The authority and developers worked closely with the architect and various agencies to overcome the site constraints.

It was a bittersweet victory for Harp.

One member, media officer Terrence Hong, 26, said he was happy that a partial solution could be found, but was disappointed that the structure’s crescent-shaped verandah would be demolished.

Mr Kevin Tan, 45, president of the Singapore Heritage Society, said: ‘So much of our heritage is being destroyed, and all the things we are familiar or grew up with are gone.Thumbs up to the URA for responding to the public.’

Source : Straits Times - 15 Jun 2007

They include land for apartments in suburbs, as well as for hotels and office space

FIFTEEN new sites have been put up for sale under the Government’s programme to offer land for development, in response to a robust economy and the red-hot property market.

The sites included land for apartments in suburbs such as Sembawang and Bishan, as well as office space and hotels to meet growing demand.

With yesterday’s release, there are now 41 mainly residential sites on sale in the second half of this year - the largest number since 1997.

One of the new sites was for executive condos (EC). ECs were introduced in 1996, and the last one was sold in June 2004.

Analysts say the large offering of fresh plots is a sign of the authorities’ bullishness in the economy and the Government’s efforts to grow the population.

Sites put on the confirmed list - meaning they will be tendered out, regardless of whether developers have indicated interest - doubled to 14, of which eight are for homes.

‘It reflects the confidence in the market and the need for space to cater to our growing population and economy,’ said Savills Singapore director of marketing and business development Ku Swee Yong.

‘It’s a pretty balanced programme and a reflection that the Government is listening to the ground and addressing market concerns.’

The supply crunch in the booming office and residential sectors has given rise to concerns about higher living and business costs affecting Singapore’s competitiveness.

‘While releasing more land for commercial and residential development will not increase the supply of office and homes overnight, the perception that ample new supply is on the way will hopefully help to ease pressure on rents and prices,’ said Ms Tay Huey Ying, director for research and consultancy at Colliers International.

The 20 residential sites, including eight new ones, could yield 8,000 homes.

The large number of residential sites is a response to the expected increase in mass market demand, said Knight Frank director of research and consultancy Nicholas Mak.

The Housing Board said the EC site would cater to those who aspire to buy private housing but may find it beyond their means.

Jones Lang LaSalle’s head of research, Dr Chua Yang Liang, said the residential land release ‘will pre-empt any run-up in mass market prices’.

The residential sites also include coveted suburban spots in Alexandra Road, Toa Payoh, Tanah Merah and Bishan, and should ensure there is affordable housing to cater to demand in the $500 to $550 per sq ft range, said Mr Ku.

Dr Chua lauded the Government’s ‘far-sighted’ view in releasing just two commercial sites, so as not to flood the market in future, as it will take time to develop them.

Still, relief may be in sight for suffering office tenants, said the executive director of CBRE Research, Mr Li Hiaw Ho. In the medium term, about 1.5 million sq ft of offices could hit the market, plus transitional offices of about 1.3 million sq ft due as early as late 2008, he said.

Keen interest is expected in a Marina View ‘white site”, which allows offices, hotel rooms and other uses.

There are now 10 hotel sites on the list, which will yield the highest ever number of 6,500 rooms to cater to anticipated growth in tourist arrivals. One of the new sites is near Little India and another in Tanjong Pagar Road.

Overall, the list offers a wider variety of sites, consultants said. For instance, the landed Sembawang Park site will be subdivided into smaller plots for sale, enabling investors to buy and build their own house.

The Government also sells land on a reserve list where sites are tendered out only after developers show interest.

Where they are

THE 15 new sites are:

Residential sites

Sembawang Park

Boon Lay Way/Yuan Ching Road

Alexandra Road/Tiong Bahru Road

Toa Payoh Lorong 2/3

Yishun Avenue 1/2

New Upper Changi Road/Tanah Merah Kechil Ave

Bishan Street 14

Punggol Field/Punggol Road (executive condo)

Hotel sites

Jalan Bukit Merah/Alexandra Road

Jalan Besar/Sturdee Road

Race Course Road/Bukit Timah Road

Bernam Street/Tanjong Pagar Road

Commercial sites

Jalan Sultan

Tampines Concourse

White site

Marina View

Source : Straits Times - 15 Jun 2007

Mixed signals sent as Govt releases more land for sale

Is the Government worried or sanguine about the piping-hot property market?

Industry observers held mixed views yesterday when the closely-watched, half-yearly government land sales (GLS) programme was released.

In number, variety and motivations, the list was breathtaking: More homes for the middle-class, including the offer of an executive condominium site not seen since 2004; more land to ease the shortage of offices and hotels; and even strategies to boost public transport ridership in certain areas.

In all, the next six months will see the offer of 41 sites, which are expected to be completed by 2010.

More controversial is the Government’s decision to put 14 plots on the “confirmed” list — double that in the first half — including 11 that were unsold from the first half’s GLS programme.

Under the “confirmed” list, a site will be tendered at a pre-determined schedule regardless of whether developers show interest. In contrast, the 27 plots under the “reserved” list will be released only if an interested party’s bid meets the Government’s minimum price. The industry generally favours the second, market-driven approach, which has been in place since the 2001 recession.

To CBRE Research executive director Li Hiaw Ho, the number of residential sites for sale shows the Government’s confidence in the residential market.

The Ministry of National Development (MND) itself said in a statement that the injection of new sites was to “meet strong demand” and “in line with the robust growth of the economy”.

However, Chesterton International’s head of consulting and research Colin Tan read the increasing number of confirmed sites as “a reflection of worry”.

He felt that the Government was “mindful” of how the rocketing home prices were causing heartlanders to “give up” on upgrading, hence the outright release of eight residential sites in suburbs, such as Woodlands and Simon Road, to provide homes with “reasonable pricing”.

From the MND’s perspective, the confirmed list was “in response to the market conditions”. Another reason it is selling many of the sites — including the residential one at Boon Lay Way and Race Course Road’s white site, which can be used for any form of development — is “to expedite the development of land around Rapid Transit System stations and help to increase the ridership catchment for the rail system”.

Also, the MND sees “a need for certain sites to be developed early”. The latter reason covers the Marina View site to “maintain the momentum of building up the Marina Bay” and to cater to high demand for prime offices and hotels.

Colliers International’s director for research Tay Huey Ying lauded the release of “white” sites, which allow mixed usage. “This flexibility is particularly valuable at a time when the supply crunch in the office and residential markets could be of a temporary nature,” she said.

To meet near-term demand for office space, the MND said the Government would also supply 180,000 square metres of commercial space outside of the GLS scheme, besides identifying low-rise buildings for transitional offices.

Ms Tay, however, warned that the Government should not “over-react” and “over-correct” the present imbalance in supply and demand. This is because several en-bloc redevelopments will be completed in a few years’ time.

“The Government would do well to consider addressing concerns over Singapore’s eroding competitiveness via a combination of means instead of focusing on increasing land supply,” said Ms Tay, suggesting tax incentives and concessions to help businesses and individuals cope with rising rentals.

Source : Today - 15 Jun 2007

Shophouse in upmarket area - near Raffles Hotel: 

LANDLORD : You owe us rent
TENANT      : But you said we don’t have to pay
 
The construction firm had an agreement to rent and re-develop three pre-war shophouses, two of them near Raffles Hotel.

Then they hit three snags, one after another.

First, there were tenants who refused to move out as planned.

Then, the landlords - a trust - changed plans and wanted a much bigger building at one site.

Finally, the death of one of the trustees led to further delays.

The company and the surviving trustee later reached an agreement to waive rent for more than a year.

But there were more problems when new trustees took over as the landlords.

They refused to accept the rent waiver and fought a legal battle, going all the way to the Court of Appeal to seek $300,000 from the company.

COURT ALLOWS RENT WAIVER

The court ruled against them and allowed the company the rent waiver.

The story goes back to 1996, when the three shophouses were in a dilapidated state.

The company, A Formation Construction, entered into an agreement with the trustees, brothers Awad Omar Harharah and Shaik Mohamad Omar Harharah, to rent and re-develop the shophouses.

The brothers were holding the properties under a trust established in the will of Mr Shaik Roubayak Khalid, who died in 1934.

The rent for two shophouses on Purvis Street was to be $10,000 a month for 25 years, and the one at Amoy Street was to be $3,000 a month for 20 years.

The landlords were to recover the properties from the tenants by 9 Dec 1998 and A Formation would then bear the cost of re-developing them.

The construction firm was expected to earn rental income by subletting the properties after redevelopment.

But some of the tenants refused to move out and there was a delay in settling the compensation for them.

DEVELOPMENT HAMPERED

The development was also hampered because the landlords asked for a five-storey building to be erected instead of a two-storey one as was originally planned at the Purvis Street site.

Then Mr Awad died in January 1999 and it took four months to appoint a new trustee.

Till then, plans and forms could not be approved by the authorities as the trustees’ signatures were needed.

In the end, the properties were vacated only in February 2001 - a delay of more than two years.

After negotiations, A Formation and the trustees agreed that the company need not pay rent for the period of 9 Dec 1998 to 31 Dec 1999, which amounted to more than $154,000.

The redevelopment went ahead.

Then there was one last complication.

Three new trustees were appointed and they would not accept the rent waiver agreement reached when Mr Shaik Mohamad was still a trustee.

The new trustees, led by Mr Abdul Jalil, took legal action in October 2004, demanding not just the unpaid rent, but also interest at 12 per cent a year.

That brought the total sum to more than $300,000.

A Formation, represented by Mr Anthony Netto of Teo Keng Siang & Partners, said the agreement it signed with Mr Shaik Mohamad was legally binding and had waived the rent.

TRUSTEES’ SUIT DISMISSED

On 26 Sep last year, Justice Judith Prakash dismissed the trustees’ suit, saying that Mr Shaik Mohamad’s agreement was valid.

Mr Abdul Jalil then went to the Court of Appeal.

He even hired a Senior Counsel to bolster his appeal.

But on 28 May, Chief Justice Chan Sek Keong upheld Justice Prakash’s decision.

In the appeal, Mr Abdul Jalil’s lawyer had argued that the offer of the waiver was made by the Omar Harharah brothers, and not the present trustees.

But CJ Chan said this argument had no merit.

If the waiver was binding on the trust, it also applied to future trustees, including Mr Abdul Jalil.

Mr Abdul Jalil could not be reached for comment.

When contacted, Mr Netto said his client was happy with the judgment.

The lawyer added that his client continues to lease the properties, which have been sub-let to businesses like Killiney Kopitiam.

Source : The New Paper - 14 Jun 2007