Owners of HDB flats who sub-let rooms will have to register with HDB within 7 days of doing so.

The rule, taking effect from February 1, also requires owners to notify HDB when they renew or terminate the sub-letting of rooms, and when there are changes to their sub-tenants’ particulars.

The Housing and Development Board (HDB) said the new requirement will support the Ministry of Home Affairs’s efforts to eradicate loan-shark activities and better protect HDB residents.

Currently, some people use their old addresses to borrow from loansharks
while they rent a room in another HDB flat.

By moving their place of residence without updating addresses in their NRICs, new occupants of the flat end up being harassed by loan sharks while the borrowers are untraceable.

Through this new rule, the HDB will be able to capture the particulars of sub-tenants, while the MHA will be able to trace the movements of borrowers.

The new rule will apply to all new and existing cases of room sub-lets.

For those with existing sub-letting tenancies that commenced before February 1, owners have a 6-month grace period to register.

Those who flout the rule face a penalty of up to S$3,000 and may have their flat compulsorily acquired by the HDB if they repeatedly fail to comply with the new requirement.

The registration – which includes details of the tenant, duration and rental fees as well as family structure – can be done online or at the Branch Office, where HDB staff will be on hand to help.

Source: Channel News Asia, 12 Jan 2010

SINGAPORE’S system of land use planning ensures that the infrastructure and amenities are adequate to meet the needs of a growing population, said the Senior Minister of State for National Development, Ms Grace Fu, yesterday.

She told Parliament that enough land is provided for supporting facilities and infrastructure such as parks.

‘Additional infrastructure is set aside when we release (land) parcels… In our planning system, we’ve taken into consideration the planned residential area.

‘So when new parcels of land are being released, that will ensure that there’s sufficient infrastructure, including roads, as well as recreational needs (that) are already provided for in the area. That goes for new estates as well as mature estates,’ she said.

Ms Fu was responding to questions by MPs Jessica Tan (East Coast GRC) and Muhammad Faishal Ibrahim (Marine Parade GRC) on whether existing infrastructure can meet growing population needs and whether reviews are being conducted to assess the impact of this growth.

The questions come amid growing concern that a larger population, boosted mainly by immigrants, will strain facilities and infrastructure.

Ms Fu said that as part of the Concept Plan 2011 Review, which the ministry began last July, the public will be consulted for feedback on how to optimise land use.

The Concept Plan 2011 is a major review of Singapore’s long-term land use strategies to cater to the changing needs of a growing economy and population.

Ms Fu said the Government will also create an additional 900ha of parkland and triple park connectors by 2020. Major improvements will be made to the transport network.

‘We will plan for higher density housing and commercial uses around these transport nodes to provide greater connectivity to our population,’ she said.

Still, she noted that there will be cases where ’short-term demand may not be easily met’.

‘It’s very hard to predict demand accurately, especially when you look at supply of commercial as well as residential buildings, there’s always a lead time involved. So we will do our best to try to reduce the volatility in the market,’ she said.

‘But it is not possible to predict demand accurately because we can never foresee conditions that may affect Singapore, such as the dip in demand in the last 18 months. So that’s really what we plan to do in our planning horizon.’

On a query by Dr Muhammad about bringing forward the rejuvenation of heartland housing estates, Ms Fu said this was something ‘that we have been doing all the time’. For example, lift upgrading is a focus as many elderly residents have been asking for lift access.

‘But we have been undertaking home improvement programmes as well as neighbourhood renewal programmes. That’s to continuously remake, rejuvenate our housing estates to make them more suitable for our current population,’ she added

Source: Straits Times, 12 Jan 2010

Owners of HDB flats who sub-let rooms will have to register with HDB within 7 days of doing so.

The rule, taking effect from February 1, also requires owners to notify HDB when they renew or terminate the sub-letting of rooms, and when there are changes to their sub-tenants’ particulars.

The Housing and Development Board (HDB) said the new requirement will support the Ministry of Home Affairs’s efforts to eradicate loan-shark activities and better protect HDB residents.

Currently, some people use their old addresses to borrow from loansharks
while they rent a room in another HDB flat.

By moving their place of residence without updating addresses in their NRICs, new occupants of the flat end up being harassed by loan sharks while the borrowers are untraceable.

Through this new rule, the HDB will be able to capture the particulars of sub-tenants, while the MHA will be able to trace the movements of borrowers.

The new rule will apply to all new and existing cases of room sub-lets.

For those with existing sub-letting tenancies that commenced before February 1, owners have a 6-month grace period to register.

Those who flout the rule face a penalty of up to S$3,000 and may have their flat compulsorily acquired by the HDB if they repeatedly fail to comply with the new requirement.

The registration – which includes details of the tenant, duration and rental fees as well as family structure – can be done online or at the Branch Office, where HDB staff will be on hand to help.

Source: Channel News Asia, 12 Jan 2010

DUBAI) Abu Dhabi Investment Authority (ADIA), considered the world’s largest sovereign wealth fund, still sees big risks to the global economy and plans to refine its investment approach to cope with downturns.

In an interview published in German business daily Handelsblatt yesterday, Sheikh Ahmed bin Zayed al Nahayan, ADIA’s managing director, also said US treasuries were still the most liquid benchmark, and will remain an important diversification tool.

The sovereign wealth fund, believed to have assets around US$500-700 billion, rarely details its investment strategy or investments.

Sheikh Ahmed – part of the ruling family of Abu Dhabi, the wealthiest member in the United Arab Emirates’ federation – said ADIA would focus on a highly diversified investing strategy and ‘exercise great caution’ before making long-term adjustments in the midst of a major downturn.

‘While attention now is on the recovery, we can’t lose sight of the many substantial risks that still exist,’ he said in the transcript of the interview provided to Reuters.

In the wake of the global financial crisis, Sheikh Ahmed said ADIA was reviewing its performance.

‘You can be sure that, like everyone else, we are looking closely to identify areas where strategies perhaps did not work as well as they could have, and will refine our approach where needed.’

ADIA has switched its weightings across asset classes to reduce the impact of economic downturns over the past 18 months, he said, adding that its allocation to global equities had averaged 40-60 per cent, with 60 per cent of that indexed. — Reuters

Source: Business Times, 12 Jan 2010

Contributions will be modest as both just starting operations: Lim Hng Kiang

SINGAPORE’S two integrated resorts (IRs) will boost the economy, but they are not likely to add as much to growth figures this year as they are only just opening their doors.

Giving an update on economic prospects for the year, Trade and Industry Minister Lim Hng Kiang said the two IRs are expected to contribute between 0.5 per cent and 1 per cent of Singapore’s gross domestic product (GDP) when both are fully operational.

But he added: ‘For this year, when they are only beginning operations, we can see the contribution to be slower.’

Mr Lim was responding to Madam Halimah Yacob (Jurong GRC), who had asked the question on the lips of many: What is the Government’s latest assessment on how much the two IRs would contribute to economic growth?

In 2006, it was estimated that Marina Bay Sands and Resorts World Sentosa could together generate about $5.4 billion of value add – about 1.6 per cent of Singapore’s GDP – by 2015.

But the global economic crisis had prompted some analysts to shave the contribution figure from both to as little as 0.3 per cent to 0.5 per cent of GDP from now till 2015.

Yesterday, Mr Lim told Parliament the Government will watch the figures closely.

However, he reiterated that the opening of the two IRs and new facilities in the biomedical and chemicals industries will help grow the economy, which is still fraught with uncertainty this year.

‘The recovery in 2010…is expected to be uneven,’ he said, adding that growth momentum is likely to slow down in the second half of the year as the effects of global fiscal stimulus measures wane.

But unlike some analysts who have predicted a double-dip recession this year, Mr Lim remains sanguine. ‘The risk of a return to recession is low in the absence of further financial shocks,’ he said.

Still, he noted that growth could be derailed if creeping trade protectionism becomes more prevalent, causing global trade flows to contract once again.

But such a likelihood is low due to peer pressure from global organisations such as the Asia-Pacific Economic Cooperation (Apec) forum, he said.

At the recently concluded Apec summit in Singapore, he said countries had re-affirmed their commitment to keep markets open and refrain from raising new barriers to investment or trade in goods and services.

Turning to Singapore’s employment outlook, Mr Lim said the situation has stabilised, with the latest figures showing more jobs created and fewer layoffs.

‘The unemployment rate, however, is likely to stay up for some time as it typically lags economic recovery,’ he said.

But there are many jobs available for Singaporeans at all levels, he said, with vacancies in industries such as pharmaceuticals, clean energy, retail, food and beverage, hospitality, health care, aerospace, IT, finance and the IRs.

Source: Straits Times, 12 Jan 2010

Integrated resorts, biomed and chemicals will give some boost, Hng Kiang says in economy update

(SINGAPORE) The chances of the economy falling back into recession in 2010 are low, but its recovery in the months ahead is likely to be uneven with the growth momentum slowing in the second half of the year, according to Trade and Industry Minister Lim Hng Kiang.

Economic growth in the coming months may still be derailed if creeping trade protectionism spreads and shrinks global trade, but this likelihood is again low.

‘Thanks to the public commitment and exhortations by forums such as the G-20 and Apec, protectionism has largely been kept in check,’ Mr Lim told Parliament yesterday. ‘The threat today is lower than it was at the start of last year.’

Last year is likely to see the economy contract by 2.1 per cent, according to advance estimates. But Mr Lim said the global economy is turning around.

This was evident in the upturn in Singapore’s economy in the second and third quarters of 2009, when the economy posted a sharp rebound of 20.7 per cent and 14.2 per cent quarter-on-quarter growth respectively.

The final quarter saw a ‘moderate’ dip of 6.8 per cent, but Mr Lim brushed off the setback.

‘This does not imply a return to recessionary conditions,’ he said. ‘Instead, it largely reflects a moderation in the pace of recovery after the exceptionally strong expansion in the previous two quarters.’

His ministry expects the economy to grow 3-5 per cent this year.

‘External demand will continue to grow, but at a sluggish pace,’ Mr Lim said. ‘There will be some support from continued inventory restocking and a resumption in global trade.’

At home, the opening of two plants in the chemicals and biomedical sector, plus the rollout of the integrated resorts, will also provide some boost to growth.

Yet the pace of growth is likely to slow down in the second half of the year – as ‘the effects of global fiscal stimulus measures and inventory restocking wane’, Mr Lim said.

‘In addition, weak household balance sheets and persistently high unemployment, especially in the US, will weigh down on consumer demand in our key export markets,’ he added.

The jobless rate in Singapore is also tipped to stay up for ’some time’, even as the labour market has stabilised and overall employment expanded in the third quarter of 2009.

Mr Lim noted that the recovery of the job market typically lags behind the recovery of the larger economy.

‘There are many jobs available for Singaporeans, at the rank-and-file and PMET (professional, managerial, executive and technician) level,’ he said. ‘These jobs can be found across a diverse span of industries, such as pharmaceuticals, clean energy, retail, food and beverage, hospitality, healthcare, aerospace, IT and finance. The integrated resorts coming up this year will also be recruiting.’

Mr Lim said Apec, whose leaders last met in Singapore in 2009, will also help to spur growth in the Asia-Pacific region.

He noted that Apec’s 21 economies have agreed to make it 25 per cent cheaper, faster and easier to do business in the region by 2015. It has set an interim target of 5 per cent improvement by next year.

‘The announced targets will translate into concrete gains for business,’ Mr Lim said. ‘For example, it could cost on average up to US$450 less to import and export a container of goods in and out of Apec economies. The time taken to start a business within Apec economies could be reduced by one week on average.’

Source: Business Times, 12 Jan 2010

New Zealand’s house values ended 2009 just 4.9 per cent below the late-2007 peak, having been as much as 9.6 per cent below the peak last April, Quotable Value’s (QV’s) residential index for December showed yesterday .

While the recovery was led by the urban centres, QV is now seeing signs of confidence returning to the provincial markets.

For the whole of 2009, New Zealand house values rose 2.8 per cent, with an average sale price of NZ404,671 (S$416,390) in December, up from NZ$393,373 in November, when prices were 5.9 per cent below the peak.

The year 2009 had shown a dramatic and somewhat unexpected level of turnaround in house values, QV said in publishing the December figures yesterday.

After reaching their peak in late 2007, house values dropped steadily throughout 2008.

At the beginning of 2009, two camps developed – those that considered the market had much further to fall, and those that considered it was near the bottom, and perhaps heading towards a good time to buy.

The property market was strongly influenced by consumer confidence, and as consumer confidence began to grow in 2009, so did property values in the main centers, QV valuation manager Glenda Whitehead said.

Driven by the main centres, nationwide values rose 5.1 per cent between the market bottom in April and the end of the year.

For the main urban areas, the rise since April was 6.5 per cent, taking values in those areas to just 3.9 per cent below their peak.

Source: Business Times, 12 Jan 2010

Australian commercial property sales to overseas buyers are set to increase by about a quarter this year as international investors are lured by the nation’s economic growth, according to Kevin Stanley, head of research at CB Richard Ellis, the world’s largest real estate broker.

Overseas buyers will spend about A$2 billion (S$2.6 billion) on Australian commercial real estate this year, up from about A$1.6 billion last year, he said.

The South Korean National Pension Fund’s purchase of the Aurora Place Office Tower in Sydney for A$685 million on Dec 30, the biggest deal in two years, shows overseas buyers continue to see strong prospects for the Australian market, Mr Stanley said in a telephone interview.

The Australian economy skirted the global recession last year and is forecast by the central bank to strengthen this year.

Overseas investors bought almost a third of all commercial properties sold in Australia last year, six times the long-term annual average, according to yet-to-be published research by Mr Stanley.

In the second half of last year, offshore buyers spent about A$1.1 billion on Australian commercial real estate, up from about A$550 million in the second half of 2008, Mr Stanley said.

Overseas investors looking for a steady and growing income stream will also be drawn by a strong rental market and long lease terms, Mr Stanley said.

Vacancies in rental office properties in Australia’s capital city centres, now at 7.7 per cent, will peak at 11 per cent this year, according to JP Morgan Securities Australia Ltd, below the 1993 peak of almost 21 per cent.

UK commercial property vacancies rose to 12.6 per cent in the year ended Oct 31 from a year ago, with falling rents and the possibility of loan defaults threatening the market, the Bank of England said in its Dec 18 Financial Stability Report.

Retail vacancies in the US will reach a record 12.9 per cent this year, and the vacancy rate for the office market, at 16.1 per cent at the end of the third quarter, will peak at 18.6 per cent this year, CBRE said on Nov 11.

Increases in the Australian dollar, higher interest rates and competition from local buyers may slow the level of growth of overseas investments this year to a more sustainable 20 per cent of all buyers, said Mr Stanley.

The Reserve Bank of Australia raised its benchmark lending rate three times in the last quarter to 3.75 per cent, after cutting it to a historical low of 3 per cent in April.

The Australian dollar, after gaining 27 per cent against the US dollar and 25 per cent against the euro last year, will reach parity with the US currency this year, some forecasters say.

Source: Business Times, 12 Jan 2010

Evergrande Real Estate Group Ltd, China’s third-biggest developer by market value, will begin marketing its first sale of bonds this week to fund projects and repay the remaining balance on a US$433 million loan from 2007.

Guangzhou, southern China-based Evergrande will meet with investors in Hong Kong on Jan 13-14, then in Singapore, London, Boston, New York and Los Angeles for the US dollar-denominated benchmark offering, according to a person familiar with the matter, who asked not to be identified.

Benchmark typically means at least US$500 million. Investors may find bonds offered by Chinese developers attractive as the ‘downside is limited’, Lee Wee Liat, a property analyst at Nomura International Hong Kong Ltd, said by telephone yesterday.

The developers will probably have to offer the bonds at ‘good rates, as sentiment has changed’, due to government policies targeting the real estate industry.

China’s cabinet on Sunday said that agencies will boost monitoring of loan flows to prevent funds illegally entering the property market and tackle ‘overly rapid’ price gains in some cities. Prices across 70 cities in China increased at the fastest pace in 16 months in November after bank lending rose to a record. ‘Although the Chinese government is still relatively supportive of the property sector, it may tighten up some aspects, such as credit availability, in 2010,’ Michael Wu of Fitch Ratings in Hong Kong said yesterday.

The ratings company plans to rank Evergrande’s bonds at BB+, its highest non-investment-grade rating, according to the statement. Standard & Poor’s will grade the proposed debt BB-, its third-highest junk rating, according to a statement yesterday.

Moody’s Investors Service said it plans to grade the debt at B1, its fourth-highest non-investment-grade rating.

The rating reflects the company’s ‘high exposure to development and execution risks as it pursues rapid growth in China’s property sector’, Kaven Tsang, a Hong Kong-based analyst at Moody’s, said.

Evergrande hasn’t issued bonds before, according to data compiled by Bloomberg. S&P analyst Christopher Lee and Fitch analyst Mr Wu confirmed that the bonds would be the company’s first.

The company hired Bank of America Merrill Lynch, Goldman Sachs Group Inc and BOC International to manage the sale of senior guaranteed bonds, it said in a filing to the Hong Kong stock exchange yesterday. Evergrande stock fell 1.2 per cent to HK$4.03 in Hong Kong trading as of the lunchtime close yesterday.

Source: Business Times, 12 Jan 2010

Deal for high-end Shanghai residential property worth more than US$200m

Chinese property developer Shanghai Forte Land Co Ltd is in talks to buy a high-end residential property in Shanghai from Goldman Sachs in a deal worth more than US$200 million, two people familiar with the situation said.

Foreign investors including Goldman, Morgan Stanley and Macquarie Group Ltd have been reducing their China property holdings during the past year, taking advantage of the country’s real estate market rebound as the global financial crisis weakened some western banks.

Forte is in the final stages of negotiations with Goldman to buy Shanghai Garden Plaza, after rival bidders such as Poly Real Estate Group Co quit, the sources said.

Goldman bought the residential complex of villas and serviced apartments in 2007 for US$190 million, according to real estate agency CB Richard Ellis.

A Forte spokeswoman declined to comment.

China has vowed to curb speculative inflows, punish land hoarding and speed up home supplies in a bid to cool a property market boom fuelled by loose monetary policies and last year’s nearly 10 trillion yuan (S$2 trillion) in new bank lending.

China’s mature property market is losing lustre for foreign investors as yields decline due to surging prices and falling rental income, Grant Ji, director of global real estate agency Savills, said last Wednesday.

Last July, Macquarie’s investment unit sold Shanghai luxury property City Apartments for about US$44 million.

Morgan Stanley also exited some China projects last year, including high-end residential property Chateau Pinnacle in downtown Shanghai.

Source: Business Times, 12 Jan 2010