Singapore Property News Upfront 9

Pavilion Park - 12 units left
Allgreen Properties has sold 70 per cent of its 43-unit Pavilion Park (Phase Two) and will launch the remaining 12 units this weekend. Allgreen general manager Yong Voon Chen said: ‘This is not surprising at all, given that there are very few landed projects being offered island-wide.’

The second phase of Pavilion Park, which is off Bukit Batok Road, was previewed last week. For the remaining units, terrace units will be priced from about $1.4 million while semi-detached units will be offered from about $1.8 million. Sizes of the units range between 2,926 sq ft and 3,214 sq ft inclusive of roof terraces.
The freehold development is expected to be completed by 2009. Pavilion Park (Phase One) was first launched in 1999 and all 78 units offered for sale were sold within fours hours of the launch.

Prices then were reported to be between $1.37 million and $2.03 million for terrace units and between $1.67 million and $2.06 million for semi-detached units. Pavilion Park is being marketed by CB Richard Ellis, and its director (residential) Joseph Tan said: ‘We are at the upswing of the market at the moment and there is no better time than now to enter the landed property market.’

Source: The Business Times, 12 May 2007
Posted by Property Wizkid

What happens when some enbloc parties are still not happy?
Some residents in a Bedok Reservoir condominium are facing a financial crunch, now that they will get the money from the sale of their homes en bloc later than expected.

The Straits Times understands that, with their cheques expected to come at the end of the month, or even next month, instead of this week, at least five residents at Waterfront View have not been able to pay for their new properties.
They will need to stump out penalties because of this; some have even had to take up loans to pay these fines.

The delay was caused by two residents who were against the sale and had gone to court to fight it out, said Dr Kevin Tan, a resident and a member of the committee formed to oversee the en bloc process. Aside from the few caught in a financial bind, there are others who are unhappy about the delay for a different reason: They said they have had to forego buying properties they have eyed because of the unexpected delay in the cashflow.

Among those who have to pay a penalty for not being able to complete the sale of their next property is Mrs Agnes Ho-Gupta, 54, who has to pay a $5,400 penalty on her new purchase in Loyang. She said: ‘We thought we could pay up for a new place within the specified grace period, but now, with the delay, I have to fork out a bit more.’

She is resigned to the fine, but other residents are more anxious, and even irate.
One of Mrs Ho-Gupta’s neighbours, Mr Warren Tan, 53, told The Straits Times how he had to give up on a home he would have liked to buy. ‘My family and I found a home we liked a lot at the end of March after a two-month search. But the agent advised us not to buy it because we did not know for sure when we would get the money for our present home. We were very disappointed.’

Residents say that they first found out about the delay last week, when they got letters from their lawyers. ‘Why did they tell us only now?’ one asked angrily. He did not want to be named. Dr Tan, the sale committee member, said the legal tussles had a spillover effect on the rest of the process.

Now, the estimate is that lawyers acting on behalf of the residents of Waterfront View will eventually finalise accounts and give owners their cheques around early June. Most residents now say that they are anxious about the process.
Said Mr Warren Tan: ‘We have to start all over again to look for a new home. I really hope this goes through on time, this time.’

Source: The Straits Times, 12 May 2007
Posted by Property Wizkid

CDL turns others Green with envy
City Developments (CDL) has received more than one-third of all the Green Mark Awards that were handed out to private developers by the Building and Construction Authority recently.

CDL’s 16 awards account for more than 25 per cent of the total number of Green Mark Awards that have been given out since the inaugural one was presented in 2005. Take a look at the numbers: CDL has achieved a reduction of 42 per cent of water and 19 per cent of energy used for construction. The developer’s construction sites also generated 49 per cent less worksite waste between 2004 and last year.

Just how did the developer go big on eco-friendly buildings without ramping up business costs? “We believe that everyone involved — the architect, contractor, building managers and consumers — must think green and act on it. We must try our best to influence them by increasing their awareness and instill in them a need to be environmentally responsible,” said Mr Eddie Wong, general manager, projects division, CDL.

Hence, it introduced the CDL Environmental, Health and Safety (EHS) policy in 2003 to address the project management areas of energy and water conservation, waste management, safety and public health. CDL’s contractors are appraised via the company’s 5-Star EHS Assessment System and are graded quarterly on a scale of 1 to 5 stars by independent auditors.

The results and practices of all contractors are then reviewed at seminars, providing a learning platform for all parties in the construction value chain for CDL’s properties. Its approach has rubbed off on the property developer’s partners as well, with more than half of their key consultants obtaining ISO 14001 and OHSAS 18001 certifications.

And in an effort to encourage contractors to think green, CDL’s annual 5-Star EHS Excellence Award recognises contractors that score high during the EHS Assessment exercise. One of the recipients is Tiong Seng Contractors, which has won the award twice. “CDL’s vision and culture to continuously promote new eco-friendly solutions and alternatives have inspired us not only to adopt green practices but to continually search for even better results,” said Mr Pek Lian Guan, managing director of Tiong Seng Contractors.

Source: Weekend Today, 12 May 2007
Posted by Property Wizkid

Sentosa Cove releases new land parcels for tender
If you fancy seafront living on Sentosa, time is running out for you to snare a prized plot of land there. Sentosa Cove has started inviting offers for one of the final batches of seafront bungalow parcels available in the gated Southern Residential Precinct.

The four bungalow land parcels that are on offer are literally located at the edge of the water. These land parcels range in size from 904.1sq m to 993.3sq m. With a maximum permissible gross plot ratio of 0.77, the maximum permissible gross floor area for the land parcels could range from 696.2sq m to 764.8sq m.

Twenty-one of the 29 prime seafront bungalow land parcels available in the Southern Residential Precinct have already been released and sold. To date, more than 83 per cent of Sentosa Cove land has been sold, and around 70 families have moved into their new homes in the exclusive residential enclave.
The current benchmark price for a seafront bungalow land parcel stands at $1,308 per square foot (psf). This record was set in October last year.

The parcels on offer have a minimum reserve price of $1,000psf. Interested parties would have to submit their offers by May 22. The decision on the sale will depend solely on price.

Source: Weekend Today, 12 May 2007
Posted by Property Wizkid

Another Cashback case due for reckoning
Property agent Goh Chong Liang, first accused of cheating in December last year, was yesterday slapped with 35 additional charges in a district court. The 37-year-old father of two is accused of having perpetrated a $900,000 cashback scam between December 2003 and March last year.

A cashback deal refers to a property seller declaring a price higher than the actual transacted sum - helping the buyer get a bigger bank loan and thus providing him with instant cash. The cash difference is kept by the buyer, or split between the two parties.

Yesterday, Goh’s case was moved to the Bail Court in the afternoon for the bail amount to be reviewed. The prosecution said the sum - set at $300,000 in December last year - should be raised to $900,000.

District Judge Danielle Yeow asked the two sides to make submissions on issues such as Goh’s family background and cooperation with investigators - which would help determine if the accused is a flight risk. She also allowed Goh’s lawyer, Mr Peter Fernando, and police prosecutor Shabbir Yusuf to agree on a bail amount - which they did, at a total of $600,000.

The first charge against Goh in December last year concerned the selling price of a Bukit Batok flat. He allegedly duped a bank into believing it was $312,000, when the actual price was only $285,000. This led the bank to approve a $292,000 loan to the buyers of the flat.

Investigations into Goh have brought up a name the courts are becoming increasingly familiar with - David Rasif. The runaway lawyer and his former partner David Tan - though not charged with any crime - are alleged to have conspired to help Goh pull off the cashback scam.

It was not mentioned exactly what their role was. Rasif, 42, disappeared on June 5 last year - allegedly with $12 million of clients’ money. Goh, who could be jailed for up to seven years if convicted, will return to court on May 15.

Source: The Straits Times, 12 May 2007
Posted by Property Wizkid

The F1 deal is on. How does it affect the property market?
Singapore has won a five-year deal to host a Formula One race on a street circuit starting next year, and hopes to break new ground by staging the first Grand Prix night race, a government minister said on Friday.

The race could be held in September or early October 2008, and the city-state has the option to extend the deal for another five years. ‘Singapore could potentially stage the first-ever night race. It would be unique, different, and allow the Singapore event to reach out to television audiences in Asia, Europe and even the US,’ Minister of State for Trade and Industry S Iswaran told a press briefing.

Several Grand Prix drivers have spoken against the idea of a night race, citing safety concerns. But Formula One supremo Bernie Ecclestone, speaking by teleconference, said he was confident that a night race would be held and that safety conditions would be met.

‘It’s going to be lit as if it’s daylight,’ he said. Formula One cars do not have headlights, so the track would have to be floodlit at night to make it safe enough for drivers used to hitting top speeds in excess of 300kph.

Australian Formula One driver Mark Webber has expressed concern that rainy weather during a night race would mean poor visibility. In March, Mr Webber tested a 4.8km street circuit through Singapore’s business district, proposed by leading grand prix circuit designer Hermann Tilke.

Mr Ecclestone is keen on a night race to boost television audiences in the sport’s European heartland. But organisers are still looking at safety issues, said Mr Iswaran. ‘Safety is of paramount importance to all of us. Therefore we will proceed with a night race only if the safety and operational requirements of all parties… are fully met,’ he said. ‘If not we will revert to a day race.’

Singapore’s announcement came a day after Mr Ecclestone revealed that Valencia had reached an agreement to host a grand prix from 2008 on a circuit around the Spanish city’s new America’s Cup port. That race is scheduled for late in the season on a newly designed circuit of between 4.1 and 4.3km in length, reminiscent of Monaco’s with its harbour-side location.

Source: The Business Times, 11 May 2007
Posted by Property Wizkid

Behold! Wing Tai Q3 profit jumps 5x!
Boosted by a significant increase in development property sales, Wing Tai Holdings yesterday reported a near five-fold jump in net profit for its third quarter ended March 31, 2007. Net earnings for the three months hit $54.1 million, up from $11.1 million in the previous corresponding period. Q3 earnings per share surged to 7.53 cents from 1.54.

The Q3 results brought nine-month net earnings to $138.6 million, up 163 per cent from $52.7 million. Third-quarter revenue more than doubled from $140.8 million to $295 million. And for the nine months, revenue totalled $732.6 million, up 64 per cent from $448 million.

Wing Tai said that much of increase in revenue was from the significant increase in sales in the development property divisions. It said revenue on development properties for the current period came mainly from units sold in Draycott Eight, The Light @ Cairnhill, Kovan Melody and Amaryllis Ville.

Besides a surge in operating profit, the group also saw a jump in contributions from its associated and joint-venture companies. Wing Tai remained bullish about the property market, saying it will ‘continue to position itself favourable to ride the upswing in the Singapore property market’.

In April, it launched Casa Merah condominium near Tanah Merah MRT Station at a net average price of $588 per square foot, after a 12 per cent discount. It said that the joint venture development with NTUC Choice Homes is now more than 95 per cent sold.

Wing Tai is also looking to launch several other new developments this year. These include The Riverine By The Park in Kallang, Helios Residences in Cairnhill, the former Belle Vue site on Oxley Road, the former Newton Meadows in Newton and Floridian in Bukit Timah. Wing Tai shares ended six cents up yesterday at $3.46.

Source: The Business Times, 11 May 2007
Posted by Property Wizkid

Bid for Tanjong Pagar Hotel site heats up
European hotel company Accor says it will put in a bid for a government land sales hotel site in Tanjong Pagar and will consider bidding for another site nearby. Accor said it plans to build a 538-room Ibis hotel on the Bencoolen Street site it won in a public tender in December last year together with joint venture partner LaSalle Investment Management.

The Ibis Bencoolen Street, in which Accor has a 30 per cent stake, will cost $145 million and will be the largest Ibis hotel in the world outside Paris. Other Accor hotels in Singapore include Grand Mercure Roxy and Novotel Clarke Quay. Making the announcement yesterday, Accor Asia Pacific managing director Michael Issenberg said the company had decided to move its Asia Pacific headquarters from Sydney to Singapore.

Saying that Accor has 100 hotels under development or in advanced stages of planning across Asia, Mr Issenberg added that ‘Singapore is the perfect base to build and operate that network’. Accor’s hotel brands include the deluxe Sofitel, upper-scale Novotel and mid-scale Mercure. Ibis is Accor’s economy hotel brand.
Mr Issenberg said that a flagship Sofitel in Singapore would be ideal, but Accor’s key priority was to be financially prudent.

Accor may expand its time-share Accor Premiere Vacation Club here, and is considering buying properties in Singapore to do this. Mr Issenberg said that Accor has had discussions with developers although nothing has been finalised.
For Accor, economy hotels are viable as the company believes that people in the fastest growing markets such as China and and India are more likely to looking for quality three-star accommodation.

‘There are many hotel projects in the pipeline in Singapore, but of the 7,200 rooms committed, only 10 per cent of this supply is in the economy segment, while 43 per cent is committed to the mid-tier segment and 47 per cent to the upper-tier sector,’ he said.

Mr Issenberg said that when Ibis Bencoolen Street opens in 2009, room rates are expected to be between $100 and $110. Ibis is Accor’s fastest growing brand in Asia Pacific, with 35 hotels already operating and over 50 under development. In India alone, plans are under way to build up to 20 Ibis hotels in the next five years. Globally, there are 750 Ibis hotels in 38 countries, and the brand is set to grow by up to 50 hotels per year.

Accor also has plans to develop its other brands in Asia. Mr Issenberg said that it will invest US$200 million to do this. Opening in August will be its flagship hotel in China, the Sofitel Wanda Beijing.

Source: The Business Times ,11 May 2007
Posted by Property Wizkid