Property developer CapitaLand said on Wednesday its high-end development, Urban Suites, saw good results in its recent preview sales.

Under the first phase of the sale launched before Christmas, 60 of the 165 units were released to buyers who were prepared to purchase more than one unit.

CapitaLand said all 60 units were sold at prices ranging from S$2,400 to S$2,700 per square foot. It plans to launch the second phase, comprising some 50 units, in Jakarta next week.

Urban Suites sits on a freehold site, spanning nearly 8,700 square metres, at the former Char Yong Gardens, bounded by Cairnhill Road, Hullet Road and Saunders Road.

The 165-unit development is made up of two 20-storey towers and one 17-storey tower. There are two-, three-, and four-bedroom apartments as well as duplex and triplex penthouses.

Urban Suites is developed by CapitaLand Residential Singapore together with its joint venture partner.

Source: Channel News Asia, 6 Jan 2010

Malaysia-based YTL Corporation is officially launching “Kasara – The Lake“, a collection of 13 luxury villas in Singapore’s Sentosa Cove.

Six of the 13 villas previewed have already been bought by buyers from Singapore, Europe and the Asia-Pacific region at prices ranging from S$14 million to S$22 million.

Villas range in sizes – from 9,000 square feet, with two good-sized parcels of more than 14,000 square feet.

Kasara is the only residential property in Sentosa Cove with views of the lake and the world-class Serapong golf course.

Margaret Thean, managing director of property consultancy DTZ, said the high take-up rate of the development during the preview demonstrates the optimism of market sentiment and confidence in Singapore’s luxury property sector.

She added that market sentiment will be further strengthened with the completion of developments around the Marina Bay Financial Centre and the two iconic integrated resorts later this year.

Source: Channel News Asia, 6 Jan 2010

THE Urban Redevelopment Authority (URA) yesterday launched the sale tender of a site slated for a combined residential and commercial development at the junction of Choa Chu Kang Road and Woodlands Road.

The 1.56ha integrated site, which has an existing commercial block, will be co-located with the Ten Mile Junction LRT station on the third storey of the podium block, the URA said.

It will also be near the future Bukit Panjang MRT station, part of the future Downtown Line 2 and due for completion by 2015.

The successful bidder will have clearance to build a block of approximately 14 storeys, comprising flats or serviced apartments. The existing two-storey commercial block has a maximum gross floor area of 11,259 sq m and is currently let out to Sheng Siong Supermarket. Its tenancy expires in November and it has no renewal option.

The plot is the first residential parcel on the confirmed list of sale sites to be unveiled for the first half of the year.

In September last year, National Development Minister Mah Bow Tan announced the Government’s intention to reinstate the confirmed list following its suspension in October 2008 to calm the market.

Sites on the confirmed list are released for tender according to scheduled dates, without the need for developers to indicate prior interest.

CBRE Research expects bids to range from $135 million to $150 million – reflecting $60 million to $65 million for the residential component, and $75 million to $85 million for the commercial podium.

Ngee Ann Polytechnic lecturer Nicholas Mak believes the plot will attract interest, with between five and eight parties bidding. He said the LRT station and the commercial component could help drive bids to between $140 million and $147 million, or $373 per sq ft (psf) to $391 psf of potential gross floor area.

DTZ head of South-east Asia research Chua Chor Hoon, however, expects to see fewer than five bids because developers will have to build over the existing podium rather than over a vacant piece of land.

The site was first made available for sale under the reserve list back in 2002, but developers showed no interest and it was not freed for sale.

It was next put up for sale under the confirmed list in late December 2007 at a time when the market started to weaken.

Only two bids were submitted by the time the tender closed in April 2008, and both were opportunistic with the higher bid at $61 million and the lower bid at just $45.68 million.

The higher bid worked out to $162.40 psf of potential gross floor area. The Government rejected it on the grounds that the price was not high enough.

Property experts had expected to see bids of at least $200 psf to $250 psf at that time.

CBRE Research executive director Li Hiaw Ho believes the project is likely to attract HDB upgraders and those who work in Bukit Panjang, Choa Chu Kang and Woodlands.

If the site is awarded, the potential selling price for newly developed residential units will be around $650 psf to $700 psf, he said.

Source: Straits Times, 6 Jan 2010

Asking price for the units said to start from $2,500 psf

PREVIEWS are open for only multiple unit purchases, yet this project is already drawing interest – pointing towards better days for the high-end residential market.

Urban Suites, located at the former Char Yong Gardens site at Hullet Road, is attracting serious buyers from overseas, according to sources.

BT understands that the asking price for these freehold units starts from around $2,500 per sq ft. It is currently available to those who will buy at least two units and there is no news as to when it will be open to those who wish to purchase only a single unit.

Urban Suites, designed by Kerry Hill Architects, comprises 165 units spread across three towers.

There are 26 two-bedders, 94 three-bedders, 40 four-bedders and five duplex and triplex penthouses. The development is expected to receive temporary occupation permit in 2013.

Joint developers CapitaLand and Wachovia Development Corporation had bought Char Yong Gardens en bloc for $1,788 psf of potential gross floor area, including development charges, when the property market was booming in 2007.

The high-end residential sector endured a tough 2009 as the global financial mess unravelled – prices of private homes in the core central region slid an estimated 2 per cent for the full year.

But market watchers expect activity in the high-end sector to pick up this year as the economy recovers.

Colliers International research and advisory director Tay Huey Ying says that the interest which Urban Suites has reportedly drawn is not surprising.

She notes that buyers have become increasingly keen on prime apartments since late last year, as recent transactions have shown.

For instance, Urban Redevelopment Authority data for November shows that 87 units at Marina Bay Suites were sold at prices ranging from $1,826 psf to $2,623 psf.

Ms Tay also says that more foreigners have inquired about homes here since the end of last year. In general, many of them are Malaysians, Indians, Chinese and Indonesians.

The situation is different from that in 2007, when buyers came from as far as Europe or Middle East. ‘Those (buyers) have not really come back in a big way,’ she shares.

In a report yesterday, OCBC Investment Research maintained its positive view on the high-end sector, saying that ‘it is likely to benefit most from the opening of the two integrated resorts this year’.

Source: Business Times, 6 Jan 2010

The number of contracts to buy previously owned US homes fell more than forecast in November as Americans waited for a first-time buyer tax credit to be extended.

The index of signed purchase agreements, or pending home sales, dropped 16 per cent after a revised 3.9 per cent October gain that was more than initially reported, the National Association of Realtors said yesterday in Washington. It was the first decrease in 10 months.

The figure shows housing may be at risk of weakening when homebuyer incentives, which were extended in November, expire later this year. Unemployment close to a 26-year low and weaker consumer finances remain hurdles to a sustained acceleration in home sales that would help fuel the economy.

‘There will be a couple of months where you’ll see noticeable weakness in home resales,’ Joshua Shapiro, chief US economist at Maria Fiorini Ramirez Inc in New York, said before the report. ‘I don’t expect the trajectory we’ve seen over the past three to six months to be maintained.’

Sales were projected to fall 2 per cent after an originally reported gain of 3.7 per cent in October, according to the median of 35 forecasts in a Bloomberg News survey. Estimates ranged from a drop of 12 per cent to a 3.9 per cent increase.

Compared with November 2008, pending sales were up 19.3 per cent, the real estate group said.

All four US regions registered decreases in November, led by 26 per cent slumps in the Northeast and Midwest. Pending sales dropped 15 per cent in the South and 2.7 per cent in the West.

Pending home sales are considered a leading indicator because they track contract signings. The Realtors’ existing-home sales report tallies closings, which typically occur a month or two later. The Realtors’ group started publishing the index in March 2005, and data go back to January 2001.

Transactions had to close by Nov 30 for buyers to qualify for the tax credit, which explains why resales continued to rise through November.

Separately, factory orders in the United States rose in November more than twice as much as anticipated, led by gains in demand for business equipment that indicate companies are boosting spending and production.

Bookings rose 1.1 per cent, the seventh increase in eight months, figures from the Commerce Department showed yesterday in Washington. The median estimate of economists surveyed by Bloomberg News called for a 0.5 per cent gain.

Source: Business Times, 6 Jan 2010

Phased opening planned as it waits for casino licence

TECHNICALLY, Resorts World at Sentosa (RWS) can now open for business as it has received TOP (temporary occupation permit) from the authorities. It also has more than 6,000 staff on board and over 1,000 more on their way soon.

However, the operator’s casino licence is still being processed.

Nevertheless, it has committed to opening some parts of the resort this month anyway.

In a statement released yesterday, RWS, which is owned by Genting Singapore, said that it would begin its ‘phased opening’ from Jan 20 beginning with four hotels.

Reservations for rooms and restaurants begin on Jan 10.

A check with RWS revealed that the Universal Studios Singapore buildings have also received TOP but will open later.

Festive Hotel, Hard Rock Hotel Singapore, Crockfords Tower and Hotel Michael will provide a total of 1,350 rooms and 10 restaurants.

As the casino is located in the basement of Crockfords Tower, it too has received TOP. However, RWS said that the opening date for the casino will be announced when it gets the casino licence.

Earlier reports noted that RWS’s submission for the casino licence had been delayed because its submission was incomplete. RWS declined to comment on any outstanding issues.

When contacted, the Casino Regulatory Authority said the casino licence is still being processed.

To date, the price tag for RWS is US$4.4 billion.

Chairman of the Genting Group and RWS Lim Kok Thay said: ‘When the Genting Group won the bid to build Resorts World Sentosa in December 2006, we promised Singapore that we will deliver a true IR that will make Singapore and Singaporeans proud. We have been single-minded about this – no distractions or excuses – and today, we are happy to say we marked the first milestone towards delivering on that promise.’

Before the hotels open to the public on the Jan 20, two were opened to the staff of RWS yesterday.

RWS CEO Tan Hee Teck said that the phased schedule allows the resort and its projected 10,000 employees to ‘run in operations’.

He also acknowledged that RWS ‘had not only opened on time, but ahead of schedule’.

Phase Two of the integrated resort will open later. This includes two more hotels with a total of 500 rooms, a destination spa, the Marine Life Park and the Maritime Experiential Museum.

Source: Business Times, 6 Jan 2010

Colliers International and FirstService Real Estate Advisors said they will combine their operations, making the newly formed company the third-largest provider of commercial real estate services worldwide.

The company, which will operate as Colliers International, will have more than 15,000 employees in 480 offices in 61 countries, Colliers and FirstService REA said on Monday. With US$1.9 billion in annual revenue worldwide, Colliers will rank behind CB Richard Ellis Group Inc and Jones Lang LaSalle Inc, and ahead of Cushman & Wakefield, the firm said.

FirstService REA owns about 70 per cent of Colliers International, with the rest held by its local brokers, said Dylan Taylor, president and chief executive officer of FirstService REA. He will become president and CEO of Colliers International in the US after the merger. The company will be based in Seattle.

Commercial real estate prices, leasing and sales have been slumping. US commercial property values declined in October to the lowest level in more than seven years, Moody’s Investors Service Inc said last month. Office vacancies may approach 20 per cent this year as employers hold off hiring, Jones Lang LaSalle and Grubb & Ellis Co said in November.

‘We’re a bit contrarian in that we see a tremendous opportunity to grow in this environment,’ Mr Taylor said on Monday in an interview. The company is benefiting from the ‘best recruiting pipeline’ it’s ever had, and probably will make ‘further strategic investments in the US’, he said. ‘I would anticipate our growth model not only continuing, but I would expect it accelerating.’

FirstService REA is a unit of publicly traded FirstService Corp, based in Toronto. FirstService REA has been expanding since 2004, buying controlling stakes in FirstService PGP Property Valuation, PKF Hotel and Hospitality Consulting, MHPM Project Leaders and FirstService Williams, the brokerage hub in New York, New Jersey and Connecticut.

Source: Business Times, 6 Jan 2010

Another 1,500 units to come in February; some 12,000 could be offered this year

THE Housing and Development Board yesterday launched two build-to-order (BTO) projects at Choa Chu Kang and Hougang, offering 1,291 flats.

The agency plans to release another 1,500 units at Punggol and Woodlands next month. And if demand stays strong, it could make about 12,000 new BTO flats available this year.

PropNex CEO Mohamed Ismail expects to see high subscription rates of at least five times for the just-released flats, with those at Hougang possibly being more popular.

Buangkok Vale at Hougang will offer 699 standard flats, comprising 128 two-room units, 113 three-roomers and 458 four-roomers.

The estate is bounded by Buangkok Green and Yio Chu Kang Road and is close to Hougang and Buangkok MRT stations. Other nearby amenities include Hougang Mall, Hougang Plaza and Hougang Sports Hall.

Selling prices range from $88,000 to $111,000 for a two-roomer, $142,000 to $182,000 for a three-roomer and $231,000 to $288,000 for a four-roomer.

According to HDB, a comparable four-room resale flat near Buangkok Vale costs $310,000 to $356,500.

Limbang Green at Choa Chu Kang will offer fewer flats, and a larger proportion of them will be three-room or smaller. There will be 592 units, comprising 276 studio apartments, 128 three-room flats and 188 four-roomers.

The estate is at Choa Chu Kang Drive, near Yew Tee MRT station and other amenities such as Yew Tee Square and Choa Chu Kang Sports Hall.

Buyers can expect to pay $64,000 to $89,000 for a studio apartment, $140,000 to $169,000 for a three-room flat and $226,000 to $278,000 for a four-roomer.

A comparable four-room resale flat near Limbang Green costs $325,000 to $365,000.

Mr Ismail says that buyers tend to seek four-roomers, and because Buangkok Vale offers more of these, it could be more popular than Limbang Green.

Home seekers have until Jan 18 to submit applications for the new BTO flats.

Demand has been strong for new flats launched recently. For instance, some types of flats at two BTO projects in Queenstown were almost 12 times subscribed when applications closed last month.

Demand has also been high for resale flats, pushing prices up.

According to flash estimates, resale flat prices rose 8.1 per cent in 2009 from a year ago.

Mr Ismail believes that the new BTO projects are unlikely to dampen resale flat prices, given the new units will not be ready for three or four years.

‘Those who cannot wait will still have to turn to the resale market,’ he said.

Source: Business Times, 6 Jan 2010

The government has kick-started land sales for the year by putting up a residential site at the junction of Choa Chu Kang Road and Woodlands Road for tender – the first on the H1 2010 confirmed list to be launched for sale.

The 99-year-leasehold plot comes with the existing Ten Mile Junction development. Some market watchers are expecting higher bids ranging from $135-$150 million for the site this time, well above those received in 2008 when the government tried to sell it.

‘Market sentiments have picked up and there is actually quite a dearth of mass-market sites,’ says Colliers International research and advisory director Tay Huey Ying. ‘We should be able to see more respectable bids being put in.’

According to the Urban Redevelopment Authority yesterday, the site spans 1.56 ha and the three-storey Ten Mile Junction sits on it. Commercial space with a gross floor area (GFA) of around 121,191 sq ft takes up the first two levels, while an LRT station occupies the third level.

The winning developer would be able to build a residential development with a maximum permissible GFA of 254,394 sq ft on top of Ten Mile Junction. The latter already has loading provision for the residential project, which could have around 200 apartments.

On the whole, the land sale involves only the existing commercial component and the future residential development. Supermarket chain Sheng Siong is the master tenant of the commercial space.

Property consultants cite the land parcel’s proximity to Bukit Panjang Plaza, the upcoming Bukit Panjang MRT Station and other amenities as attractive features.

CB Richard Ellis Research executive director Li Hiaw Ho expects bids for the site to range from $135-$150 million, comprising $60-$65 million for the residential component and $75-$85 million for the commercial podium. Developers could sell the homes at around $650-$700 per square foot (psf).

‘The site is likely to attract HDB upgraders and people who work in Bukit Panjang, Choa Chu Kang and Woodlands,’ he says. At nearby Maysprings, apartments recently went for $509-$672 psf.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak believes that the site will attract five to eight bids, with the highest coming in at $140-$147 million.

He also draws up an interesting scenario – that Sheng Siong could team up with a developer to bid for the site. As part-owner, the supermarket chain would be able to ’secure its interest’ and keep rents down, he suggests.

But developing this site is not without challenges. As DTZ South-east Asia research head Chua Chor Hoon highlights: ‘It is more challenging to build over the existing podium than over a vacant piece of land.’

The tender will close on Feb 23. Estimated bids for this tender far exceed those which the government received some years ago when it tried to sell the site. When tender closed in April 2008, just two developers submitted bids and the highest one was $61 million – too low to be accepted.

The government will be launching more sites on the confirmed list soon. HDB will invite interested parties to tender for two executive condominium sites at Buangkok Drive and Yishun Ave 11 on Jan 15.

Source: Business Times, 6 Jan 2010

THERE has been much debate on the $8,000 monthly income ceiling for the purchase of new HDB flats and the ever-increasing prices of resale flats.

The income ceiling is said to be in place to ensure that public housing subsidies are available to those who are unable to afford other forms of housing.

But how realistic is the $8,000 ceiling today? If two graduates have been in the workforce for five or six years, it is almost certain that their combined income would have reached $8,000.

Many of us would have taken on the bread-winner’s role in the family, and thus, would not have much cash savings to afford a resale flat where a 5 per cent cash down payment is required and, on top of that, a hefty cash-over-valuation amount.

We are Singaporeans but we do not enjoy any housing grant, even when we find a place to live that is just across from our parents.

Yvon Lim (Miss)

Source: Straits Times, 6 Jan 2010