A 50-cm gap at the top of the railings along some common corridors has upset some residents of Pinnacle@Duxton.

They claim this ’security flaw’ increases the risk of break-ins. But the Housing Board (HDB) rejects this, adding that the design avoids a ‘cage-like’ environment.

Mr Max Sim, 34, an executive, is among some 20 residents who wrote to the HDB about the matter. He said he noticed the ‘flaw’ after he collected the keys to his apartment about two weeks ago.

He has also flagged the issue on The Straits Times’ online portal Stomp.

At 50 storeys, the seven-block Pinnacle is the country’s tallest public housing project. Each floor has six units.

The common corridor leading to the two middle units has railings that do not reach the ceiling beam.

Residents of these units worry that a burglar could scale the railing and go through the 50-cm gap – about the height of a desktop computer cabinet – to reach a narrow platform.

From there, he can get onto the ledge for the air-conditioner, where the toilet window is.

‘It is not easy but a burglar may try… I’m worried about the safety of my wife and children,’ said engineer John Yeo, owner of a middle unit. He is in his 40s.

Another resident, businessman Terence Hu, 32, agreed.

‘If HDB takes action only after a break-in happens, it’ll be too late,’ he said.

The HDB told The Sunday Times that there is ‘no design flaw’. Its spokesman said safety and security are major considerations in the design of HDB flats.

She said the openings at the common corridors are for cross ventilation.

The Pinnacle has 1.8m-high railings, a height which exceeds the required industry standard of 1.1m, she said.

‘At this 1.8m height, the opening between the railing and the beam is 50cm, which does not allow a person to climb through easily.

‘Anyone who attempts to do so also faces the risk of falling down the airwell,’ said the HDB spokesman.

‘Furthermore, the common corridors adopt an open concept. Once residents start moving in, it is difficult for anyone to climb through the railing undetected.’

She said residents can install grilles with locks and security appliances to make their homes more secure.

For the initial period, HDB will also work with the police to step up their patrols there.

The HDB’s response, however, does not satisfy some residents.

Mr Hu said: ‘There’s nothing much we can do now. We just have to wait and see who’s the unlucky guy.’

Another resident, IT administrator Kelvin Lim, 34, said he would install a ventilation fan to replace his toilet window to secure his home.

The Pinnacle@Duxton was first launched in May 2004. It features a sky garden on its roof, with views of the harbour and much of Singapore.

In 2004, its four-room flats cost an average $335,000 and the five-room flats, $395,000. Last year, the HDB priced these same-sized flats at an average of $486,000 and $590,000, respectively.

Source: Sunday Times, 10 Jan 2010

Housing agent Mike Poon is looking forward to working in Toa Payoh, on new premises just a stone’s throw from the HDB Hub.

His employer, OrangeTee, joins a host of other property agencies irresistibly drawn there.

After all, location, location, location is the industry’s mantra and the public housing market caters to almost 80 per cent of Singaporeans.

Being near the HDB Hub, in Lorong 6, Toa Payoh, is thus a plus. The HDB moved to its current premises from Bukit Merah in 2002.

Among the big players, ERA and HSR have buildings in Toa Payoh. DTZ, C&H Properties, Global Real Estate and PropNex have units within the HDB Hub, where a major bus interchange and train station are also located.

Another agency, DWG, has its offices along Lorong 6, Toa Payoh as well – at Toa Payoh Shopping Centre.

For now, Mr Poon works out of OrangeTee’s premises in Lock Road, in the Alexandra area.

The company’s new 16-storey building in Lorong 6, leased from the HDB, is nearing completion. When it is ready, 2,500 agents and 60 support staff will move in.

‘Being closer to the Hub will allow me to be closer to my clients and this will allow me to give them more personal service,’ said Mr Poon.

Mr Alan Tock, managing director of OrangeTee, echoed Mr Poon’s point about Toa Payoh’s central location.

Serving private property clients is also a cinch as the area is a short drive to Changi Airport where clients from countries such as China, Indonesia and Malaysia have to be picked up, he added.

With the availability of banks and law firms within the HDB Hub itself, Toa Payoh is becoming a one-stop for home buyers.

Indeed, these factors are crucial to success, said PropNex, which has been based in the HDB Hub since 2004.

Its corporate communication manager, Mr Adam Tan, said that being in Toa Payoh has been a contributing factor to its growth. PropNex has about 6,000 agents.

‘Location is key in the property market,’ he said.

‘People remember you better when you say that your office is in the HDB Hub itself,’ he added, referring especially to buyers of HDB units.

Another company, HSR, moved into the former Pei Chun Primary school premises in Lorong 6, Toa Payoh in November 2008.

It had been based in Toa Payoh Central but decided to move because it needed a bigger place to house its 7,000 staff, said CEO Patrick Liew.

The new premises are still near enough to the HDB Hub, so he does not feel that not being actually there puts him at a disadvantage.

He added: ‘The new premises provide more services for my staff too, such as a spa and a childcare centre.’

Source: Sunday Times, 10 Jan 2010

100 deals worth $1.6b done last year, with average price soaring to $826 psf

The market for the segment of Singapore’s most coveted homes – bungalows on sprawling prime land called good class bungalows (GCBs) – did very well last year, and is expected to remain fairly strong this year as the economy improves.

Average price on a per sq ft basis reached a high of $826 last year, up from $820 in 2008 and $681 in 2007, according to CB Richard Ellis.

The property consultancy’s data also showed that a total of 100 GCB deals worth $1.59 billion were done last year, making it the second-highest volume recorded after the 119 deals in 2006.

Despite the weak market, a new record price was set last year when a 25,231 sq ft GCB at upscale Leedon Park near Holland Road was sold in October for $1,407 psf, or $35.5 million overall.

It broke the previous psf record of $1,308 psf for a White House Park GCB sold in August 2007, experts said.

GCBs are special because they are big and, more importantly, exclusive. They typically sit on plots of at least 1,400 sq m, or 15,070 sq ft, in size and can be found only in 39 prime gazetted areas such as Nassim Road.

‘The GCB market is typically viewed as a barometer for the residential market,’ said property consultancy firm Savills Singapore’s director of investment sales and prestige homes, Mr Steven Ming.

‘With anticipated economic recovery this year and a market fuelled by liquidity and cheap lending, the GCB market can be expected to remain strong this year.’

Deals may slow a little this year though, but prices are likely to continue to rise, albeit slightly, said CBRE’s director of luxury homes, Mr Douglas Wong.

‘GCBs are evergreen products. They can withstand stormy weather as proven by the crisis last year. When the market goes down, GCB prices can still hold very well.’

Mr Ming too believes that deals will likely slow this year. Many of those who wanted to buy a GCB would have done so last year, he said.

‘Because of the sudden market resurgence last year, buyers went into the market as they were afraid that they would be priced out,’ he added.

Demand is still strong but deals in the next three months may slow because sellers are a lot more optimistic than the buyers, explained Newsman Realty managing director K. H. Tan.

GCB owners include well-known chief executive officers, businessmen and celebrities.

China-born gongfu star Jet Li, who has acted in Hollywood movies, bought one in Bukit Timah for nearly $20 million last year after he became a Singapore citizen.

Two new groups of buyers have emerged for GCBs in the past two years, said CBRE’s Mr Wong.

He is seeing more young professionals and entrepreneurs in their late 30s buying GCBs to live in.

Another growing pool of buyers comprises new citizens as well as permanent residents who have obtained approval to buy landed homes.

Quite a few China-born new citizens bought GCBs in the past year, experts said.

GCB buyers are typically more savvy and would be the first to react to any market upturn, said Mr Ming.

‘If the GCB market were to move, you can expect the rest of the landed market to follow.’

Source: Sunday Times, 10 Jan 2010

It may be early days yet but en bloc fever could be making a comeback, and not just for home-owners.

At least two ageing malls are trying for collective sales now that the economic crisis looks to have blown over.

Katong Shopping Centre in East Coast Road has appointed a marketing agent, the Dennis Wee Group. Its collective sale committee has held at least four meetings with the agent in the past three months.

At Golden Mile Complex in Beach Road, unit owners said property agents from PropNex went around a few months ago to collect signatures from anyone interested in selling their shops, offices or residence.

Owners said the agency promised them a high reserve price of $1,300 per sq ft (psf), double what was being transacted then.

Mr Winston Low, chairman of Katong Shopping Centre’s collective sale committee, said the mall’s owners talked about selling as far back as 1996. But it was not until 2007 that they decided to take action.

‘The surrounding area was already developed, and we felt it was a good time to try,’ he said, referring to the many residential projects that have come up in the vicinity. You see a lot of successful stories but also lots of disputes. We were very careful,’ he said.

The committee received approval from more than 80 per cent of the 410 owners. About 30 per cent of the 36-year-old mall is owned by Singapura Developments, a subsidiary of City Developments.

Mr Jimmy Teng, investment sales director at Dennis Wee Group, believes the 90,000 sq ft site might be prime for another mall – one that is less ‘overwhelming’ than the nearby Parkway Parade.

Mr Low said the committee is working out the apportionment details and has set a reserve price of $2,000 psf.

Apportionment is always the biggest challenge facing a collective sale for mixed developments with multiple owners.

For instance, shop units on the ground floor or those with frontage would likely demand a larger share of the pie compared to less visible units.

Relying on share values and strata areas is not enough, and professional valuations are often needed when doing the sums, said property experts.

‘The challenges may be overcome if the profit element is immense. Part of the solution to overcoming that is to incur more money to get valuers in,’ said Mr Karamjit Singh, managing director of Credo Real Estate.

Property consultant Steven Ming thinks there may be a few launches of mixed-development collective sales this year. ‘We will still need to hold our breath and see if a transaction will materialise as there generally is still a disconnect in price expectations between en bloc sellers and buyers,’ said Mr Ming, Savills’ director of investment sales and prestige homes.

Only a few commercial buildings, including Kim Seng Plaza, Kim Tian Plaza and Ming Arcade, have been sold en bloc in the past few years.

Others, like Paramount Hotel and Shopping Centre, Roxy Square and Parklane Shopping Mall, tried to jump on the bandwagon during the last property boom, but with no success – and, for now, are not trying to do so again.

Mr Ho Eng Joo, Colliers International’s executive director for investment sales, believes land values are not high enough yet for most owners of mixed developments to bite.

The old malls sit on prime land, and the owners are in no great hurry. Still, the price must be right to draw interest from developers.

‘If owners can get their act together, fulfil all the amended laws, get consensus, then developers will of course be keen to look at these developments,’ said Mr Ho.

Source: Sunday Times, 10 Jan 2010