Thomson Line. Bukit Panjang LRT. Sengkang. North-East Line. Cross Island Line. Circle Line. Sentosa

Transcription

1 Source From LTA MRT SINCE 1845 network size to double by % of homes here will be within 10-minute walk of a station by then By CHRISTOPHER TAN SENIOR CORRESPONDENT SINGAPORE S train network is set to double in size over the next 17 years, with two new lines and three extensions announced yesterday. The slew of new projects means 80 per cent of households will be no more than 10 minutes walk from a station by 2030, said Transport Minister Lui Tuck Yew. They come on top of half a dozen others that are already in various stages of planning and construction. The new projects will boost the size of the network to about 360km the current size is 178km and increase the proportion of households within a 10-minute walk of a station from the current 57 per cent. They are: Cross Island Line, a 50km train line running from Changi in the east to Jurong industrial estate in the west. In between, it will link towns and districts such as West Coast, Clementi, Bukit Timah, Sin Ming, Ang Mo Kio, Hougang and Pasir Ris. From Pasir Ris, it will have an offshoot that goes to Punggol forming the first rail link between the two northern estates. Jurong Region Line, a 20km H-shaped network targeted for completion by It will link Choa Chu Kang, Tengah, Jurong East, West Coast, Boon Lay and Jurong West to the North-South and East-West lines. It is expected to have a stop at the Nanyang Technological University. A 4km extension that will join the two southern ends of the orbital Circle Line, making it a complete circle by A 2km extension of the All the lines in 2030 Jurong Region Line Jurong Island Thomson Line Circle Line North-East Line north of Punggol, to serve the future new Punggol downtown by A 2km extension to link Downtown Line 3 to the future Eastern Bukit Panjang LRT Cross Island Line North-East Line Sentosa North-South Line Sengkang LRT Region Line. When it is completed by 2025, commuters will be able to travel from Singapore Expo to Marine Parade in less than 10 minutes. Punggol LRT Downtown Line East-West Line Pulau Ubin Eastern Region Line Source: Land Transport Authority ST GRAPHICS Planners are also considering building a new station on the North-South Line between Yishun and Sembawang stations to serve future mixed developments FRIDAY, JANUARY 18, 2013 there. Speaking during a visit to Downtown Line 1 s Chinatown station yesterday, Mr Lui said the denser network will not only give commuters better connectivity but will also create a more resilient network that can better mitigate disruptions. This means that if there is an incident on one line, commuters can switch to another fairly easily to continue their journey. The minister said it will also allow parts of the network to be closed for extended periods for improvement works. Asked if the timing of his announcement was in any way linked to the Punggol by-election, he said: No, no, we ve been planning to announce these for some time now. In any case, the new lines are not quite at the Punggol East SMC (single-member constituency). They will benefit everybody in Singapore. Although no details of the cost were available as engineering studies have not started, observers estimate that the cost of the new lines totalling 78km in length could come to between $70 billion and $100 billion. Government Parliamentary Committee for Transport chairman Cedric Foo said: Some commuters will say that the completion date is not ambitious enough. But in adding some 180km of rail, there are many second-order effects that the Government needs to balance against. Some of which are disruptions, more foreign workers, the capacity of contractors and sub-contractors, demand for materials and so on. Mr Lui said the expanded network will have more than the capacity needed to meet the expected increase in public transport ridership in the next two decades. He added: On the other hand, our response cannot always be to build more lines... we need to find other options, such as a more aggressive decentralisation strategy so that there is a better geographical balance of jobs and people. He was referring to a plan spelt out as early as the 1980s to create regional centres such as Tampines and Jurong East to bring jobs closer to where people lived. One benefit is shorter, fewer commutes. christan@sph.com.sg

2 CROSS ISLAND LINE Source From LTA JURONG REGION LINE Source From LTA CROSS ISLAND & JURONG REGION LINE

3 Developers landbanks depleted by robust sales Most have smaller stock of units now despite bumper site release by Govt SATURDAY, MARCH 30, 2013 Companies with the largest landbanks CITY DEVELOPMENTS AND HONG LEONG GROUP 6,383 units including projects like D nest (left) and Bartley Ridge (below) CAPITALAND 1,699 units HONGKONG LAND AND MCL LAND 1,605 units By ESTHER TEO PROPERTY CORRESPONDENT ROBUST sales of new private homes have depleted the landbanks of most developers, amid a period of intense competition for new sites. A survey shows that 16 of the 27 major builders have a smaller store of development land now, compared with January last year. The fall comes despite the bumper supply of sites released by the Government over the past year. Moreover, 19 developers had fewer than 1,000 apartments left in their landbanks as of the end of last month, according to the survey by DTZ Research. A further seven developers had between 1,000 and 2,000 units. The numbers do not take into account strong home sales this month, which should deplete landbanks even more. A landbank comprises unsold units including executive condominiums from projects with planning approval and estimated number of units from sites yet to obtain approval. Units in projects that have obtained their certificate of statutory completion, and redevelopment projects without planning permission, are excluded. City Developments and its parent company Hong Leong Group have the biggest stock, with 6,383 homes made up of land parcels in Sengkang and projects like D nest and Bartley Ridge that are being built. Most other developers have fewer than 2,000 units in their landbanks. Second-placed CapitaLand has 1,699 units, and Hongkong Land and its subsidiary MCL Land have 1,605 units. IOI Corporation, Allgreen Properties, Wheelock Properties and Frasers Centrepoint all have fewer than 1,000 units each. Experts note that many landbanks have been eroded by roaring home sales over the past year. Privately held Far East Organization fell from second to fifth spot within a year, with its landbank down from 2,592 units to 1,498. Frasers landbank fell from 1,951 units and third position in January last year to just 632 and 12th spot in the rankings. CapitaLand, Keppel Land and Wheelock have moved up the league table after securing Government Land Sales (GLS) sites in the past 12 months. At least two foreign players have also bucked the trend, gaining a larger market share by acquiring GLS parcels. Chinese company MCC Land and Hao Yuan Investment have 1,484 units in total. This puts them in sixth position, up from 13th place last time. While they are unrelated parties, their landbanks have been seen as one as they often work together on projects, DTZ noted. MCL Land and Hongkong Land climbed from 13th spot to third this year. DTZ s head of Singapore research Lee Lay Keng noted that PHOTOS: HONG LEONG, CITY DEVELOPMENTS the GLS programme was the main source of growth for developers that expanded their landbanks, while those that missed out on many sites went down the rankings. As a result, most units in developers landbanks are in suburban areas, where most GLS sites are. In general, a developer should have a few projects on hand, but the number of units that constitute a healthy landbank depends on the scale of these projects and the size of the developers, their business models and risk appetites, noted Ms Lee. Experts add that listed developers often face pressures to replenish their landbanks to bring in returns for shareholders, but high land prices and an increase in the number of bidders for GLS sites have thrown up challenges. Tuan Sing Holdings chief financial officer Chong Chou Yuen noted that smaller contractors and groups of investors making their foray into development have made it more difficult to secure a site. Apart from GLS sites, one other area we might consider could be en bloc sites instead, he added. esthert@sph.com.sg

4 FRIDAY, NOVEMBER 9, 2012 Number of doctors here crosses 10,000 TOTAL Figures at a glance NUMBER OF DOCTORS , , , , ,018 More than half of new docs last year were foreigners, largely from Asia By SALMA KHALIK HEALTH CORRESPONDENT THE number of doctors here has risen to more than 10,000 for the first time, thanks in large part to a continued influx of foreign doctors. Foreigners made up more than half of the 836 new doctors here last year, a spokesman for the Singapore Medical Council (SMC) told The Straits Times. A large number of these doctors are from elsewhere in Asia and most work in public hospitals and polyclinics. Today, more than one in three doctors in the public sector are foreigners. In the private sector, they account for fewer than one in six. The total number of doctors here is stated in the SMC s latest annual report. With 10,057 doctors on the registry as of last year, Singapore now has one doctor for every 537 people. This is a far better ratio than 2001 s one doctor to 700 people. Despite this, the doctor:population ratio is still behind that of most developed countries. The United States has one doctor for every 390 people, while Australia has one per 334 people. The need for doctors will continue to grow given the new hospitals and nursing homes that are set to open in the next few years. Professor Benjamin Ong, head of the National University Health System, said foreign doctors bring different perspectives and usually unique talents and competencies to complement what we have here. But he added that managing doctors with different backgrounds takes special effort. Though many of the foreign doctors are Asian, the rise in their numbers in recent years has led to some patients complaining of their inability to speak local languages. To tackle this, many public health-care institutions provide local-language classes so foreign doctors can better understand non-english-speaking patients. SMC president Tan Ser Kiat, in his foreword to the annual report, noted that more Singaporeans and permanent residents (PRs) were returning to work here as doctors. They accounted for 110 new doctors last year, compared to just 68 in In 2010, the Ministry of Health (MOH) introduced a grant for Singaporeans and PRs studying medicine abroad to help offset the cost of their final two years of study. This was to entice them to return to work here. So far, 185 students in Britain, Ireland and Australia are on the scheme. Among them, 39 have returned and are undergoing their residency or serving as house officers and medical officers, said an MOH spokesman. Professor Chee Yam Cheng, chief executive of the National Healthcare Group, said it is easier to get Singaporeans studying in Britain and Ireland to return because of the European Union s preference for their citizens. The reverse is true of those studying in Australia, who prefer to do their housemanship there as that gives them an option to work there or return to seek employment here. The decision to return sometimes hinges on whether they get a place in specialist training there, he added. The two medical schools here Yong Loo Lin School of Medicine at NUS and the Duke-NUS Graduate Medical School produced 275 new doctors last year. SPECIALISTS (at end-2011) Public sector... 2,242 (of whom 711 are foreigners) Private sector... 1,393 (of whom 251 are foreigners) Total... 3,635 NON-SPECIALISTS (at end-2011) Public sector... 3,913 Private sector... 2,509 Total... 6,422 SOURCE: SMC ANNUAL REPORT 2011 This is set to increase in the coming years as both have been upping their student intake. On top of that, the opening of the Lee Kong Chian School of Medicine next year will add to the local pipeline of doctors. At a steady state, it should produce 150 new doctors a year. Singapore is targeting 500 locally trained doctors a year by the latter part of this decade. salma@sph.com.sg home Medical tourists flock here from across Asia Rise in numbers from India and China, and smaller nations too BY POON CHIAN HUI TRAVELLERS from across Asia are making a beeline for Singapore not to holiday here, but to seek medical treatment. Health-care providers say they are handling more patients from India and China, on top of traditional sources such as Indonesia and Malaysia. Two years ago, Russia and the Middle East were identified as growing markets. Now, patients from less developed nations such as Cambodia and Mongolia are turning up on the Republic s shores in greater numbers as well, according to health-care providers. This trend is in line with one identified by the Singapore Tourism Board in 2010, where Asia was expected to be a key player in driving the industry s growth as it recovered from the global recession. Even back then, there were signs that more patients from India and other parts of South Asia would head here, said the agency. Among them was Indian national Timir Patel, 48. Two years ago, with both his kidneys failing, the jeweller took a leap of faith and came here for a transplant. For me, it was a fresh experience because I had never travelled for medical reasons, said the Mumbai native, who had his surgery at Mount Elizabeth Hospital. His 29-year-old cousin was the donor. The approach to medicine here is very modern. In India, there is, for example, a tendency to over-medicate. Many of his countrymen are also making their way here. Parkway saw a 38 per cent spike in patients from India last year compared with Treatment for blood disorders, and kidney and liver transplants rank among the top three areas where patients seek help. Last year, Parkway carried out about 20 such transplants on patients from India. THE STRAITS TIMES MONDAY, APRIL PAGE B3 Privacy and Singapore s reputation as a safe country are among the reasons Bollywood stars and wealthy businessmen choose to fly to Singapore for treatment, said Dr Lim Suet Wun, executive vice-president of Parkway s Singapore operations. They can relax and recover in peace, away from public attention. He added that Parkway had seen strong growth in medical travellers from Vietnam and Myanmar as well in the past three years or so. Meanwhile, Raffles Hospital the other major private hospital here received more foreign patients last year, especially from Cambodia, Myanmar, Vietnam and even Papua New Guinea. The number from each of these countries grew 20 to 50 per cent last year compared with Most sought costly treatments for ailments such as cancer and heart disease. Over at the Singapore Medical Group, which has 19 clinics, patients from China and India are a fast-growing group. Chief executive Cheryl Baumann said medical tourists formed 25 per cent of its patient base. A substantial number of Indian nationals make use of the group s obstetrics and gynaecology expertise for example, the women sometimes fly here to give birth. All in all, the group has served people from more than 50 countries in the past three years. Dr Baumann said the trend was not as obvious before. Commenting on the growth in the number of patients from China and India, she said: People in these markets have more spending power now, and they also love to travel. In addition, many feel more comfortable with the language, culture and food here, which are similar to their own. Meanwhile, at the Asian Centre For Liver Diseases and Transplantation, more patients are now arriving from Vietnam, Laos, Myanmar, Cambodia and Mongolia. It said the increase was due to the opening up of smaller Asian nations. The private liver transplant centre, which has performed more than 60 such procedures in the past three years, said more than 90 per cent of its transplant patients came from abroad. Some foreigners choose Singapore for more personal reasons. For Mr Patel, the post-operative care he received and the clean hospital environment were plus points. I was having transplant surgery which would normally scare the hell out of you in India but I felt that everything was as simple and easy as removing an appendix. chpoon@sph.com.sg

5 Rentals keep up with rise in home prices Yields stay at 3.7% islandwide, but not all districts fare equally PHOTO: ISTOCKPHOTO By MELISSA TAN RENTALS have kept pace with the rise in private home prices, but not across the board. Rental yields remain at 3.7 per cent islandwide, Maybank Kim Eng said in a report that compared 2011 and 2012 rentals at projects with more than 10 rental contracts. The minimal change in the figure indicates condominium rental rates have generally kept up with the increase in prices last year. However, not all districts fared equally. The worst showings were in Newton and Sentosa, with yields compressing to just 2.2 per cent last year. Median rentals fell by 15 cents per sq ft (psf) in Newton and 12 cents psf in Sentosa last year, which Maybank Kim Eng said was likely due to the rise in completed supply in those areas. Condos in Newton that received their temporary occupation permit last year include the 30-storey freehold condo Trilight, which has 205 units. Maybank Kim Eng estimated that net yields could be as low as 1.8 per cent in Sentosa. The chart-toppers were Woodlands, Jurong and Choa Chu Kang, which offered rental yields of 4.4 per cent last year. Sengkang, a former favourite with rental yields of 4.4 per cent in 2011, has seen its yields decline to 4.2 per cent last year, Maybank Kim Eng said. The research house GROSS RENTAL YIELDS FOR PRIVATE NON-LANDED RESIDENTIAL PROJECTS Choa Chu Kang 4.4% Bt. Batok 3.6% Jurong 4.4% SIGN OF MODERATION noted that yield compression last year was most apparent in the city fringe. Newton and Bukit Timah rental yields fell by between 0.25 and 0.31 percentage point, reflecting a greater appreciation of resale values relative to rental rates, Maybank Kim Eng said. Woodlands 4.4% Bt. Panjang 3. Bukit Timah 3.1% Clementi 3.9% Queenstown 3.9% Yishun 4. Ang Mo Kio Sengkang 3.9% 4.2% Bishan Pasir Ris 3.7% Hougang 3.8% Toa Payoh 3.9% Tampines 3.8% Serangoon % Newton Kallang Bedok 2.2% Novena 3.8% 3.9% 3.5% Geylang 3.9% Orchard Downtown 2.9% 3.6% Bt. Merah Outram 4% 3.9% Sentosa 2.2% Rentals have started to slow as (a greater) supply of complete units appears in the market. ERA Realty key executive officer Eugene Lim SATURDAY, JANUARY 26, 2013 The Urban Redevelopment Authority (URA) said yesterday that private residential prices increased 2.8 per cent year-on-year last year, a slowdown from the segment s 5.9 per cent price rise in 2011 from the preceding year. At the same time, rents for private residential properties Source: MAYBANK KIM ENG RESEARCH ST GRAPHICS grew 2.1 per cent last year from those of 2011, a slower pace than the 3.8 per cent rise in 2011, URA said. But property consultants said they are already seeing signs of moderation in rental rates. Rentals have started to slow as (a greater) supply of complete units appears in the market, said ERA Realty key executive officer Eugene Lim. Knight Frank senior manager Alice Tan added that the uncertain global economy and cautious business environment have affected housing allowances for expatriates in Singapore, who constitute a major source of rental demand. melissat@sph.com.sg Singapore set to be No. 2 wealth centre in the world It will overtake NY in 10 years; London remains No.1, says report By CHERYL ONG SINGAPORE will not only continue to be a favourite investment destination for rich folk but will become one of the world s top two wealth centres, according to a new report. It found that Singapore will move up from its third ranking now to surpass New York and take the number two position within 10 years. London is expected to hold the number one spot. Singapore s growing importance as a global city bodes well for its development as Asia s wealth management hub, said Mr Renato de Guzman, chief executive of Bank of Singapore, which compiled the report with property consultancy Knight Frank. Our clients have often cited Singapore s political and economic stability and well-regulated financial sector as key factors that make it an attractive investment decision. Knight Frank director and research head Png Poh Soon added: The 10-year forecast affirms our place in the global scene in the future as a city of choice for [high net worth individuals]. The firm also forecasts that the number of such wealthy people here will increase by 40 per cent within 10 years. It noted that European wealth centres have weakened since last year s survey. Paris drops to ATTITUDES SURVEY: CITIES THAT MATTER Rank City London New York Singapore Hong Kong Geneva Shanghai Dubai Miami Paris Beijing Now % of responses 25% 14% 11% 9% 4% MORE RICH RESIDENTS The 10-year forecast affirms our place in the global scene in the future as a city of choice for high net worth individuals. This is in line with our forecast for the population of high net worth individuals in Singapore to grow by 40 per cent in the next 10 years. Knight Frank director and research head Png Poh Soon TUESDAY, MARCH 12, 2013 Top 10 cities important to high-net-worth individuals City London Singapore New York Hong Kong Shanghai Beijing Miami Geneva Dubai Paris In 10 years % of responses 22% 12% 11% 9% 6% 4% 2% 2% 2% Source: THE WEALTH REPORT 2013 ST GRAPHICS ninth place in the popular vote and Berlin falls out of the top 10 altogether, the report said. Once again, Singapore has had a very strong year, eclipsing Paris and even Hong Kong, which it has previously lagged. A separate Knight Frank survey of 400 private bankers around the world placed Singapore in sixth place out of 40 cities considered important to wealthy investors. The survey was based on a indicators such as economic activity, political power, quality of life and knowledge and influence. Mr Poh also noted that property will continue to feature strongly in the investment portfolios of the rich. As prices of prime homes stabilise, we believe Singapore homes will be a good long-term investment as high net worth individuals continue to favour Singapore as a global city of choice. He added that the increased taxes for pricey real estate unveiled in the Budget will not deter investment from the rich. I think this is something more of a slight dent in their wealth, it s probably not going to be a big issue. ocheryl@sph.com.sg

6 FRIDAY, JANUARY 25, 2013 Mixed-use sites still reel in the bids By ESTHER TEO PROPERTY REPORTER DEVELOPERS are still hungry for mixed-use sites despite the recent property cooling measures. A tender for a mixed residential and commercial site in Yishun, which closed yesterday, has attracted 13 bids from developers. Experts say the site s commercial element up to 40 per cent of the maximum allowable gross floor area had mitigated the impact of the seventh round of measures unveiled earlier this month. Interest in the 99-year leasehold parcel was also boosted by heightened interest in strata-titled commercial units a segment so far left unscathed by the various cooling measures. The 8,858 sq m site in Yishun Avenue 9 attracted a top bid of $212.1 million from Chip Eng Seng s CEL Property. That works out to $794 per sq ft (psf) per plot ratio (ppr). Pavilion Square retail units snapped up Prices go as high as $10,879 psf a record for outside CBD, Orchard Rd By KALPANA RASHIWALA [SINGAPORE] In tandem with the continued strong demand for small strata retail units, all 93 units at Pavilion Square in Geylang Road were snapped up on Saturday. BT understands that the prices achieved range from $2,000 per square foot for third-floor units with open terraces and some flat roof space above to a whopping $10,879 psf. The top price, for a 118 sq ft street-fronting food-and-beverage unit on the ground floor, is a record price for a retail unit outside the city and the Orchard Road shopping belt, analysts say. The retail units in Pavilion Square, a mixed development by Pollux Properties, garnered strong interest. Cheques were collected on Friday and the units sold through balloting the next day; some ground floor units are touted to have drawn more than 100 cheques each. Market watchers said that the buyers are predominantly investors. The $10,879 psf top price in the development surpassed the $8,000 psf achieved in January for Alexandra Central. Retail This is 9 per cent more than the second-placed bid of $193.8 million by Far East Organization units Boo Han Holdings and Far East Orchard. Other bidders include Frasers Centrepoint, Hong Leong Group, Sim Lian Group and Mezzo Development. The recent cooling measures do not seem to have affected this tender but this could be due to the relatively small residential development of around 160 units while the bulk of the development value is in the commercial component, said Mr Ong Teck Hui, Jones Lang LaSalle s national director of research and consultancy. He noted that the top bid also compares favourably with the $805 psf ppr achieved in November 2011 for a commercial and residential site in Jelebu Road, which was roughly similar in development mix and is next to the future Bukit Panjang MRT station. Mr Desmond Sim, associate director of CBRE Research, said YISHUN RING ROAD Pavilion Square in Geylang: Food and beverage units on the third floor were sold in the $2,000-$2,400 psf band as they come with open terraces and a flat roof units in the 99-year leasehold project being developed next to Ikea sold at between $4,000 and $8,000 psf. However, BT understands that islandwide, the highest psf price achieved for a retail unit is probably $18,000 psf for a prime Level 1 unit in the freehold Lucky Plaza in Orchard Road. This was sold early last year. No caveat was lodged by the buyer. Besides the $10,879 psf Northland Secondary School Land parcel Chinese temple YISHUN AVE 6 YISHUN AVE 9 ST GRAPHICS deal, six other ground-floor F&B units in Pavilion Square sold at above $10,000 psf. The remaining units on that level are all said to have fetched above $8,000 psf. F&B units on the third floor were sold in the $2,000-$2,400 psf band, as their strata areas include open terraces for alfresco dining in addition to a flat roof on the fourth level, which can be used for maintenance. Residential sites to feel impact of new curbs more acutely: Experts TOP 5 BIDDERS Company Chip Eng Seng Boo Han Holdings and Far East Orchard Ho Lee Group, Evia Real Estate and CNH Investment Cerapure City Developments and Hong Leong Group that the full impact of the measures will be felt more acutely on purely residential sites instead. However, the increased pool of developers might still see land bids hold up, he added. Interest and bids for the Yishun site were within expectations, he said, adding that the developer might consider selling the commercial component as strata-titled units. Based on this land price, the developer could sell the retail portion on a strata-titled basis at around $3,000 psf to $4,000 psf and the residential units at around $900 psf, Mr Sim said. Colliers International s director of research and advisory services, Ms Chia Siew Chuin, said this month s measures are likely Bid ($m) to divert buyer interest from the residential sector, and partly from the industrial segment, to the commercial sector. With new strata-titled retail properties being a relatively scarce product in Singapore, investors would now direct their attention towards such units. For instance, all but two of the 116 strata-titled units at Alexandra Central also developed by Chip Eng Seng were sold within the first day of its launch earlier Pavilion Square s 93 retail units, comprising shops and F&B units, have sizes of between 86 sq ft and 926 sq ft. The majority of the units are between 108 sq ft and 129 sq ft. The basement and first level will have a mix of shops and F&B units; all units on level 2 will be shops, while the third floor will have only F&B units. Absolute price quantums achieved for the 93 retail units varied from Unit price ($psf ppr) Source: HDB PHOTO: ISTOCKPHOTO this month at prices ranging from $4,000 psf to $7,000 psf. But Mr Lee Sze Teck, senior manager for training, research and consultancy at Dennis Wee Group, said that the top bid could have been even higher if not for the cooling measures. He expects the break-even price for the residential component to range from $1,100 psf to $1,150 psf with an estimated selling price of $1,300 psf to $1,350 psf. Chip Eng Seng group chief executive Raymond Chia told The Straits Times that plans for the commercial component are not firmed up as yet although the residential component is likely to see 160 apartments. If the retail market stays robust, we might sell the commercial component as strata-titled units. But for this land size and quantum, we can afford to hold so we re not overly concerned about it. esthert@sph.com.sg The Business Times, Thursday, March 28, 2013 $558,000 (for a 108 sq ft unit in the basement, reflecting $5,184 psf), to nearly $2 million for a 377 sq ft unit on level 2 ($5,304 psf). On Tuesday, the Urban Redevelopment Authority rolled out a minimum average size of 50 sq m (538 sq ft) for retail units, citing planning reasons. Some analysts reckon that by slowing down the creation of new small strata retail units, the move could put a lid on their transaction volumes. Savills Singapore research head Alan Cheong argued, however, that by limiting the existing stock of these small units, the new policy could raise prices. Low interest rates being kept in place for a prolonged period of time means there s so much liquidity now that it s very difficult to use traditional measures to curb property demand, he said. Asia will continue to suffer asset-price inflation while quantitative easing is still in place elsewhere in the world. While Pavilion Square s retail units have sold fast, demand has been slower for its apartments. Only 15 of the 42 apartments are said to have found buyers, with prices ranging from $1,400 to $1,600 psf. Apartment sizes in the development start from 398 sq ft for a one-bedder; the biggest unit is an 818 sq ft, two bedroom-plus-study unit.

7 A2 TOP OF THE NEWS WEDNESDAY, MARCH 27, 2013 New limits on shoebox units in malls Malls being proposed must have an average shop size of at least 50 sq m By JESSICA LIM and DARYL CHIN THE Urban Redevelopment Authority (URA) has put a limit to the number of shoebox shop units in future malls, in a move that analysts say could cut speculation in such properties. From today, proposed malls must have an average shop size of at least 50 sq m. So developers who want many shoebox units from 9 sq m to 25 sq m must balance them with bigger ones. Property analysts say the measure will reduce speculation in commercial properties, which were left largely untouched in the recent cooling measures. The URA said yesterday that over the last two years, it has received a growing number of proposals to build malls featuring mainly shoebox units, some just 9 sq m smaller than a carpark lot. While it did not say how many of such proposals it got, the URA noted that in many cases, the proposed number of shops was more than 10 times what was in the original development. In a post on his blog yesterday, National Development Minister Khaw Boon Wan hinted that the new rule was to stop developers from targeting investors rather than those looking for a shop. If these shops are not suitable for most retailers, then the developers motive is probably to target individual property investors rather than genuine retailers. Property analysts like Mr Chris Koh noted that higher stamp duties on residential and industrial properties have turned mass-market investors to commercial properties. These investors would not be able to afford large spaces, and developers are quick to offer them alternatives, he said. Typically, the price of retail space is about two to three times that of nearby residential areas. A recent report by HSR property consultants showed that $109.6 million worth of small strata shop units 15 sq m or less were transacted last year, up from $40.5 million in 2011 and $20 million in While the URA noted that smaller units cater to shops such as florists and money changers, it said there was a need to ensure a good range of sizes to meet genuine retailers space needs... and to serve the public better. More small retail spaces also means more employees, adding to traffic woes. The URA also wants wider corridors to reduce human congestion during peak periods. Developer Chip Eng Seng group s chief executive Raymond Chia said Alexandra Central, his firm s latest development, has an average shop size of less than 50 sq m. Of the 115 units, some 20 per cent are shops measuring 15 sq m or less. An estimated 20 buyers bid for each unit when it was launched in January. Not everyone snapping up small shops is an investor, he said. But the company s upcoming Yishun project will adhere to the new guideline. At the end of the day, we too don t want a mall comprising mostly smaller shops, as it isn t good for the image of the development, he said. limjess@sph.com.sg darylc@sph.com.sg Investors packing in nice gains from retail resales Liquidity, residential cooling measures boost deals in strata retail units By KALPANA RASHIWALA [SINGAPORE] Resales and subsales of strata retail units in the past couple of years have been predominantly profitable, shows a DTZ study. Those who buy and then sell such properties have largely ridden on a crest created by price appreciation amid strong demand from investors and speculators flush with liquidity and put off by the cooling measures imposed on the residential sector. DTZ had analysed URA Realis caveats data for resales and subsales for which it was able to find records of previous caveats. Take resale transactions, which are secondary-market deals in completed projects. (Secondary market transactions in uncompleted projects are referred to as subsales.) DTZ found caveat matches for 260 resale transactions in 2011, 291 last year and 51 in the first quarter of this year. Of these, between 96 per cent and 100 per cent put their owners in the black. The average percentage gain from these profitable deals, calculated without factoring in the holding period, was 72 per cent for 2011, 91 per cent for last year and 75 per cent for deals sealed in Q1 this year. You have to look at the whole development, whether it has a critical mass to attract the shopping crowd. Mary Sai, Knight Frank s executive director for investment, giving advice to those thinking of investing in retail units in existing or new developments On an annualised basis using the compound annual growth rate formula the average gains were in the 25 per cent to 30 per cent range for the three periods. In its analysis of subsales, DTZ looked at new projects launched between 2010 and Q and found 54 subsale transactions with previous caveat matches. Of these, all but three made a profit. The most profitable subsale in dollar terms raked in $819,780. This was for a ground-floor unit in Parc Elegance in Telok Kurau, picked up from the developer in May 2010 for $1.13 million and sub-sold last August for $1.95 million. In just 2.3 years, the transaction generated an absolute gain of 73 per cent; this translated to an annualised gain of 26.5 per cent. Along Robinson Road in the Central Business District, a second-floor unit in Oxley Tower was flipped in the subsale market at $1.3 million last April after a mere two-week holding period generating a gain of $394,000 or 43 per cent. Subsales of at least three other second-floor Oxley Tower retail units, with holding periods of between three and nine months, produced gains ranging from $231,000 to $361,000 each. However, a subsale transaction in the same development ended with a loss of $102,400. The third-floor unit was acquired from the developer for $670,000 last June, and offloaded at $567,600 two months later. The other two loss-making subsales in the 2010-Q period involved units at Viva Vista in South Buona Vista Road and The Arizon in Geylang Road. Among completed retail units that changed hands in the resale market between 2011 and Q1 2013, the most profitable transaction in absolute dollar terms was a sixth-floor unit in Lucky Plaza. Held for a little over five years, the 12,540 sq ft unit generated a profit of nearly $15.05 million. It was bought for $17.6 million in March 2007 also off the resale market and resold last June for $32.6 million. The biggest absolute loss $600,000 was chalked up by a fourth-floor Sim Lim Square unit. It transacted in April 2011 at $1.7 million; the previous caveat record for the unit, dated July 2007, shows it changed hands at $2.3 million. In percentage terms, the biggest streak of red ink for a resale was for a ground-floor unit in Midpoint Orchard. The owner suffered a 56 per cent loss over a 17-year holding period. The property was bought for $675,890 in June 1995 and next transacted for $300,000 last May. DTZ s methodology entailed looking for matches in caveats. Where matches were found, it worked out the length of time the property was held. Gains or losses were reflected as the simple difference between the sale and purchase prices. Stamp duties, interest expense and commissions were not factored in. Mary Sai, Knight Frank s executive director for investment, said that the prices of strata retail properties in older developments benefited from a spillover of high prices of units in new launches. Her advice for those thinking of investing in retail units in existing or new developments: You have to look at the whole development, whether it has a critical mass to attract the shopping crowd. For example, Lucky Plaza, with six levels of shops, can occupy a local or tourist for hours. In contrast, some new mixed-development projects, with only, say, 10 to 20 small shops, may not generate the same shopper traffic; they are likely to be tenanted to operators in service trades, such as laundries and hair salons. Someone who has invested in such a property may not reap the desired net rental yield of about 4 per cent, said Ms Sai. Potential investors should also consider the neighbourhood: the presence of good malls nearby will generate beneficial spillover benefits, she added. Changing hands Biggest gains/losses from resales of strata retail units in Q Project name BIGGEST % GAIN Far East Plaza 14 Scotts Road 10.9 $3,979, % 23.0% 344 $4,450,000 $12,919 Dec 11, 2012 Freehold Resale 344 $470,741 $1,367 Feb 2002 Resale Far East Plaza 14 Scotts Road 10.8 $3,964, % 22.7% 355 $4,450,000 $12,528 Dec 11, 2012 Freehold Resale 355 $485,794 $1,368 Feb 19, 2002 Resale Far East Plaza 14 Scotts Road 10.9 $6,128, % 22.6% 549 $6,880,000 $12,533 Dec 11, 2012 Freehold Resale 549 $751,270 $1,369 Feb 2002 Resale Far East Plaza 14 Scotts Road 10.9 $4,079, % 22.6% 366 $4,580,000 $12,514 Dec 11, 2012 Freehold Resale 366 $500,847 $1,369 Feb 2002 Resale Concorde Hotel 100 Orchard Road 8.0 $1,320, % 23.4% 538 $1,620,000 $3,010 Dec 7, yrs from Resale and Shopping Mall 538 $300,000 $557 Dec 7, 2004 Aug 17, 1979 Resale Golden Mile 5001 Beach Road 5.7 $304, % 34.0% 312 $374,400 $1,199 July 4, yrs from Resale Complex 312 $70,000 $224 Oct 12, 2006 Aug 4, 1969 Resale BIGGEST ABSOLUTE GAIN Lucky Plaza 304 Orchard Road 5.2 $15,048,000 86% 12.6% 12,540 $32,604,000 $2,600 June 12, 2012 Freehold Resale 12,540 $17,556,000 $1,400 Mar 26, 2007 Resale Lucky Plaza 304 Orchard Road 12.2 $6,600, % 12.9% 797 $8,550,000 $10,734 July 5, 2012 Freehold Resale 797 $1,950,000 $2,448 May 5, 2000 Resale Far East Plaza 14 Scotts Road 10.9 $6,128, % 22.6% 549 $6,880,000 $12,533 Dec 11, 2012 Freehold Resale 549 $751,270 $1,369 Feb 2002 Resale Orchard Towers 1 Claymore Drive 7.4 $6,015, % 16.8% 2,648 $8,800,000 $3,323 June 13, 2012 Freehold Resale 2,648 $2,785,000 $1,052 Jan 14, 2005 Resale Far East Plaza 14 Scotts Road 10.9 $4,079, % 22.6% 366 $4,580,000 $12,514 Dec 11, 2012 Freehold Resale 366 $500,847 $1,369 Feb 2002 Resale Far East Plaza 14 Scotts Road 10.9 $3,979, % 23.0% 344 $4,450,000 $12,919 Dec 11, 2012 Freehold Resale 344 $470,741 $1,367 Feb 2002 Resale BIGGEST % LOSS Midpoint Orchard 220 Orchard Road $375,890-56% -4.7% 301 $300,000 $995 May 21, 2012 Freehold Resale 301 $675,890 $2,243 June 1995 Resale Sim Lim Tower 10 Jalan Besar $288,000-32% -2.7% 355 $600,000 $1,689 June 21, 2011 Freehold Resale 355 $888,000 $2,500 Apr 4, 1997 Resale Sim Lim Square 1 Rochor Canal 3.7 -$600,000-26% -7.8% 936 $1,700,000 $1,815 Apr 13, yrs from Resale Road 936 $2,300,000 $2,456 July 27, 2007 Apr 8, 1983 Resale Queensway 1 Queensway $106,500-26% -1.9% 140 $310,000 $2,215 Aug 24, 2011 Freehold Resale Shopping Centre 140 $416,500 $2,976 Nov 18, 1995 Resale Pearls Centre 100 Eu Tong $480,000-25% -1.8% 1,389 $1,420,000 $1,023 Aug 18, yrs from Resale Sen Street 1,389 $1,900,000 $1,368 Apr 1995 Oct 15, 1969 Resale BIGGEST ABSOLUTE LOSS Address Holding period (yrs) Gain/Loss ($) Gain (%) Annualised gain (%) Sim Lim Square 1 Rochor Canal Road 3.7 -$600,000-26% -7.8% 936 $1,700,000 $1,815 Apr 13, yrs from Resale 936 $2,300,000 $2,456 July 27, 2007 Apr 8, 1983 Resale Pearls Centre 100 Eu Tong $480,000-25% -1.8% 1,389 $1,420,000 $1,023 Aug 18, yrs from Resale Sen Street 1,389 $1,900,000 $1,368 Apr 1995 Oct 15, 1969 Resale Midpoint Orchard 220 Orchard Road $375,890-56% -4.7% 301 $300,000 $995 May 21, 2012 Freehold Resale 301 $675,890 $2,243 June 1995 Resale Sim Lim Tower 10 Jalan Besar $288,000-32% -2.7% 355 $600,000 $1,689 June 21, 2011 Freehold Resale 355 $888,000 $2,500 Apr 4, 1997 Resale High Street Centre 1 North Bridge Road $161,259-18% -1.1% 646 $730,000 $1,130 Sept 14, yrs from Resale 646 $891,259 $1,380 Mar 1995 June 2, 1969 Resale Biggest gains/losses from subsales of strata retail units launched in Q Project Name BIGGEST % GAIN Area (sq ft) Transacted price ($) Unit price ($psf) Contract date Tenure Type of sale Parc Elegance 11 Telok Kurau Road 2.3 $819, % 807 $1,950,000 $2,415 Aug 28, 2012 Freehold Sub Sale 807 $1,130,220 $1,400 May 4, 2010 New Sale Suites@ Katong 263 Tanjong 2.6 $546,000 57% 19.1% 463 $1,500,000 $3,241 Dec 21, 2012 Freehold Sub Sale Katong Road 463 $954,000 $2,061 May 20, 2010 New Sale Suites@ Katong 263 Tanjong 2.4 $534,000 50% 18.9% 517 $1,600,000 $3,097 Sept 10, 2012 Freehold Sub Sale Katong Road 517 $1,066,000 $2,063 May 6, 2010 New Sale Oxley Tower 138 Robinson Road 0.0 $394, ,225,630.8% 151 $1,300,000 $8,627 Apr 25, 2012 Freehold Sub Sale 151 $906,000 $6,012 Apr 11, 2012 New Sale Icon@changi 228 Changi Road 0.98 $170,900 40% 41.4% 161 $595,000 $3,685 Sept 20, 2012 Freehold Sub Sale 161 $424,100 $2,627 Sept 29, 2011 New Sale Oxley Tower 138 Robinson Road 0.2 $231,000 36% 258.7% 118 $880,000 $7,432 July 23, 2012 Freehold Sub Sale 118 $649,000 $5,481 Apr 27, 2012 New Sale Millage 55 Changi Road 0.1 $173,000 35% % 151 $670,000 $4,446 May 9, 2012 Freehold Sub Sale 151 $497,000 $3,298 Mar 26, 2012 New Sale BIGGEST ABSOLUTE GAIN Address Parc Elegance 11 Telok Kurau Road 2.3 $819, % 807 $1,950,000 $2,415 Aug 28, 2012 Freehold Sub Sale 807 $1,130,220 $1,400 May 4, 2010 New Sale Suites@ Katong 263 Tanjong 2.6 $546,000 57% 19.1% 463 $1,500,000 $3,241 Dec 21, 2012 Freehold Sub Sale Katong Road 463 $954,000 $2,061 May 20, 2010 New Sale Suites@ Katong 263 Tanjong 2.4 $534,000 50% 18.9% 517 $1,600,000 $3,097 Sept 10, 2012 Freehold Sub Sale Katong Road 517 $1,066,000 $2,063 May 6, 2010 New Sale Oxley Tower 138 Robinson Road 0.0 $394, ,225,630.8% 151 $1,300,000 $8,627 Apr 25, 2012 Freehold Sub Sale 151 $906,000 $6,012 Apr 11, 2012 New Sale Oxley Tower 138 Robinson Road 0.8 $361,000 30% 40.8% 205 $1,550,000 $7,579 Feb 7, 2013 Freehold Sub Sale 205 $1,189,000 $5,814 Apr 30, 2012 New Sale Suites@ Katong 263 Tanjong 0.97 $322,000 26% 26.5% 678 $1,580,000 $2,330 Apr 25, 2011 Freehold Sub Sale Katong Road 678 $1,258,000 $1,855 May 6, 2010 New Sale Oxley Tower 138 Robinson Road 0.4 $301,800 29% 79.2% 194 $1,330,000 $6,864 Oct 12, 2012 Freehold Sub Sale 194 $1,028,200 $5,307 May 4, 2012 New Sale Oxley Tower 138 Robinson Road 0.2 $231,000 36% 258.7% 118 $880,000 $7,432 July 23, 2012 Freehold Sub Sale 118 $649,000 $5,481 Apr 27, 2012 New Sale BIGGEST %/ABSOLUTE LOSS* Holding period (yrs) Gain/Loss ($) Gain (%) Annualised gain (%) Oxley Tower 138 Robinson Road 0.2 -$102,400-15% -66.7% 129 $567,600 $4,394 Aug 23, 2012 Freehold Sub Sale 129 $670,000 $5,187 June 29, 2012 New Sale The Arizon 538 Geylang Road 0.4 -$80,000-6% -13.2% 689 $1,250,000 $1,814 May 4, 2011 Freehold Sub Sale 689 $1,330,000 $1,931 Nov 25, 2010 New Sale Viva Vista 3 South Buona 1.8 -$26, % 344 $868,037 $2,520 Aug 14, 2012 Freehold Sub Sale Vista Road 344 $894,400 $2,597 Oct 22, 2010 New Sale Area (sq ft) Transacted price ($) The Business Times, Thursday, April 4, 2013 Unit price ($psf) Contract date Tenure Type of sale *Only three of the 54 matched subsales incurred losses. Source: DTZ Research, URA Realis caveats (downloaded on March 27, 2013)

8 DON T PUT YOUR $$$ IN THE BANK! BANK SAVINGS FIXED DEPOSIT DBS 0.05% 0.5% UOB 0.2 1% OCBC 0.05% 0.68% * Rates quoted are based on minimum amount of $200,000 for a minimum duration of 18 months. Rates are in % p.a. and are subject to change without prior notice.

9 invest thesundaytimes September Strata landed homes look set to be big trend Fiona Chan PROPERTY REPORTER AUGUST and September are typically slow months for new property launches, due to the superstition surrounding the Hungry Ghost month. But developers are not sitting idly by this year. Several launches are in the works for the last months of the year, and one of the big emerging trends appears to be strata-titled landed homes, or cluster housing projects. Property firm CB Richard Ellis (CBRE), for one, identifies at least 21 such projects in the pipeline. For the uninitiated, cluster homes look exactly like conventional landed homes. They are usually at least two storeys high and come in a variety of sizes, ranging from terrace houses to bungalows. The main difference is that cluster homes come with strata titles, as do condominiums, rather than land titles. In a cluster project, the land is shared by all the owners, explained Mr Li Hiaw Ho, an executive director of CBRE Research. This has two main implications. First, cluster projects can be sold en bloc as long as the minimum required owner consensus is met. This means an 80 per cent agreement for projects more than 10 years old and 90 per cent for younger estates. Second, owners of strata houses do not have the flexibility of tearing down and rebuilding their properties. Owners of conventional landed homes, on the other hand, can make additions and alterations that affect the external appearance of the homes. Generally, cluster housing projects tend to be more standardised in appearance than the usual landed houses. Each unit is typically two to three storeys high, and most come with four to six bedrooms, attics or roof terraces, and basements, said Mr Li. Parking spaces are also a plus in cluster projects, which usually include one or two basement carpark lots for each house. The built-up area for each house ranges from about 2,500 sq ft for a terrace house to 3,500 to 4,000 sq ft for a detached house, added Mr Li. The larger bungalows can go up to almost 6,000 sq ft, with roof terraces usually accounting for another 500 sq ft. Cluster housing is not a new concept in Singapore, having first made an appearance in But these projects became more mainstream only from 2000 onwards, and have taken off in a big way just recently. More customers are accepting the product now, so developers are also encouraged to build more of these houses, said Mr Ku Swee Yong, the director of marketing and business development at Savills Singapore. He noted that Far East Organization s Greenwood series of landed homes, one of the more popular landed housing projects in recent years, is planning to release its next phase in a cluster housing style. Anecdotal evidence from property agents also seems to indicate that foreigners find it easier to get approval to buy strata landed homes than to buy conventional landed homes. Cluster homes are strata-titled, so in such a development, there would be a good balance of voting share rights between foreigners and Singaporeans, said one agent. Also, generally, the smaller the property, the easier it is to get approval if you are a foreigner. For the individual home buyer, there are several advantages to strata homes that conventional landed housing do not offer. Among the greatest draws of cluster houses are the communal facilities and security features. Facilities often include at least one swimming pool, jacuzzis, a gym, a clubhouse and barbecue areas. But these perks come at a cost: Strata home owners have to pay a monthly maintenance fee, much like condominium owners, to maintain these facilities. Previous estimates by consultancy Colliers International have put these fees at $250 to more than $400 a month, depending on the size of the estate and the facilities available. Apart from the maintenance cost, cluster homes and landed homes in the same location are usually similarly priced, said CBRE s Mr Li. The facilities provided in a cluster project will be a trade-off against the loss of the private enjoyment of land. For a home buyer who is trying to decide between strata and conventional landed homes, it will ultimately boil down to a question of lifestyle, said Mr Li. While some home owners might prefer a landed home with large common areas and some facilities within the compound, others might want to have the land title to their landed property, he added. fiochan@sph.com.sg THE BUSINESS TIMES Tuesday, April 3, 2012 Curbs on backdoor buys of landed homes Foreigners affected as URA won t allow strata landed homes on condo projects By KALPANA RASHIWALA [SINGAPORE] Starting today, Urban Redevelopment Authority (URA) will no longer allow strata landed homes to be built in projects with condominium status. Market watchers say that this will effectively close an avenue which has allowed foreigners to buy strata landed homes within such projects without having to seek permission from the Singapore Land Authority s Land Dealings (Approval) Unit. However, foreigners can continue to buy such strata landed homes in existing condos and in condo projects that have yet to be built but already approved by URA. In a circular issued yesterday evening, URA said it has observed that in recent years, there has been an increase in the number of condominium proposals comprising a mix of strata landed and apartment units within the same development. Analysts list D Leedon in the Farrer Road area, Thomson Grand, euhabitat at Jalan Eunos, Archipelago facing Bedok Reservoir Park and Woodhaven in Woodlands, among the projects with condo status containing strata landed homes. Developers have taken to including some strata landed homes within their condo projects to cater to the strong demand for such landed homes from foreign buyers, who don t need LDAU s permission to buy them. In contrast, foreigners wishing to buy any other type of landed homes, including units in a pure strata landed housing development, need LDAU s approval. They have to fulfil certain criteria before LDAU will give the nod, including being a Singapore permanent resident and making significant economic contribution to Singapore. However, under a further tightening in approval criteria last year, approvals to PRs to buy landed homes is expected to fall. Sentosa Cove is the only place in Singapore where even non-singapore PR foreigners may purchase a landed home, although still subject to obtaining LDAU approval. Foreigners have increasingly taken to buying strata landed homes in projects with condominium status. A URA spokesperson said that for the whole of 2011, 97 strata landed housing units in condominiums were sold by developers, of which about 90 per cent were bought by foreigners (including PRs). For the whole of 2010, 16 strata landed housing units in condominiums were sold by developers, of which about 60 per cent were bought by foreigners (including PRs). In its circular yesterday, URA noted: Strata landed housing is essentially a form of landed housing except for its strata title arrangement. Hence, developments comprising only strata landed housing are not accorded condominium status. URA clarified this through a professional circular in October To align with the treatment of strata landed housing developments announced in 1994, we will no longer accord condominium status to developments comprising a mix of strata landed and apartments units. Only residential developments comprising purely apartment units and complying with the condominium guidelines will continue to be approved as condominiums. The new guidelines will take effect today. Only formal development applications (excluding Outline Applications) submitted prior to 03 Apr 2012 which have already been granted Provisional Permission or which will result in a Provisional Permission will continue to be evaluated under the old guidelines. Development applications submitted prior to April 3 resulting in an advice or refusal of written permission will be evaluated based on the new guidelines upon submission after the advice or refusal, URA added. Credo Real Estate managing director Karamjit Singh noted that developers have been using the current guidelines as a clever way to market their strata landed properties to foreigners because a development scheme comprising strata landed homes within a project approved as condominium is open to foreign buying. With the latest change, URA guidelines are aligned with the general intention to safeguard landed properties for locals, he added. Knight Frank chairman Tan Tiong Cheng questioned the rationale behind URA s rule change to disallow strata landed units in projects with condo status. All the different unit types currently in projects with condo status, including strata landed units, share common facilities and make contributions for the maintenance of the shared facilities and common areas. Such units legally, are not the same as landed homes. You can t tear down and rebuild your unit, expand it by one square inch or change the facade or roof or appearance. Diverging trend poses challenge for policymakers, Page 4