Visitors to Resorts World Sentosa will be able to shop there when the first of its retail belt opens in time, for its soft launch on Wednesday.

The shopping strip makes up about 20 per cent of the entire retail space at the integrated resort.

As for its casino and the Universal Studio theme park, the company is hoping to open both in time for the Lunar New Year.

Last minute touches are being made to greet guests when Singapore’s first integrated resort opens. With just four of its six hotels and 10 restaurants opened, there is already strong interest from both locals and tourists.

Andrew Hickey, vice president (Rooms), Resorts World Sentosa said: “We had over 5,000 room nights booked in the first days of our reservations centre opening. (There is a) strong local demand from the overseas travel trade.

“Chinese New Year is already booked out. Indicators are very very strong. Weekends are filling up obviously”.

Resorts World has said it is targeting 12 to 13 million visitors each year, boosting Singapore’s visitor arrival numbers.

The Singapore Tourism Board has said that it hopes the two Integrated Resorts, including the one at Marina Bay Sands, will help double visitorship figures to 17 million by 2015.

Also making its grand opening on Wednesday is the Galleria – where retail staff have been put through the paces. This retail belt links the Festive Hotel, the casino entrance and Hotel Michael.

Noel Hawkes, vice president, Resort Operations, Resorts World Sentosa said: “We also have a Swarovski, we have a beauty hall and we have a Swiss shop gallery. We have some very nice new to market brands like Canali, which will open its first retail shop in Singapore as well as a very famous brand from Canada called Damiani, which is a very high-end jewellery shop.”

“Apart from these high-end jewellery (shops), we also have our very famous Chihuly gallery. This is going to be very exciting. We have about S$6 million worth of his very beautiful art works and his chandeliers in the casino as well as the Crockfords Tower, and now guests will be able to go and buy smaller pieces which are absolutely fabulous or some of his wonderful paintings.

“We have also got a Michael Graves gallery – first in the world in fact – and Michael Graves is the one who designed this entire project. He will have his own gallery selling stuff that he designed himself like the whistling teapot.”

The completed retail stretch at Resorts World Sentosa is about 300 metres long, with over 20 high-end brands including the highly anticipated Victoria’s Secret boutique.

Mr Hawkes said: “A lot of the retail here is geared towards our casino customers, (and) impulse buying.

“So that is why we have targeted some of the products. There are very high-end retail, expensive watches, diamonds, jewellery.”

About 70 per cent of the resort’s entire retail space is expected to be ready by next month.

“Especially if you take into consideration our Universal Studios, which is huge. We have got about 16 shops over there and we have something for absolutely everybody within our retail offerings in Universal Studios,” added Mr Hawkes.

But the clincher for most people would be the opening of the theme park and casino.

Ron Lim, general manager, Crossroad Tours & Travel said: “I already got a group of 12 persons coming from Taiwan into Resorts World. From what we see, it is supposed to be good.

“Furthermore, Casino is tied up with a theme park so when the adults play at the casino they will still go to the theme park”.

Wendy Leong, general manager, City Tours said: “The main concern right now is when Universal Studio is going to be opened, so that we will be able to package it together including all the hotel stay as well.”

Resorts World is currently awaiting licensing approvals from authorities for both the casino and theme park. And when Universal Studios opens, 20 out of its 24 rides will be fully operational.

Over the next two years, visitors can expect phase two of Resorts World Sentosa to be completed. These include two more hotels and the marine life park, the world’s largest oceanarium.

Source: Channel News Asia, 18 Jan 2010

Housing analysts said it is a sellers’ market right now, with resale flats being a hot commodity lately.

But the Housing and Development Board (HDB) has urged buyers to exercise caution when paying high cash premiums, and to do their homework to determine if a house is truly worth its asking price.

A 4-room flat in Bishan was recently put up for sale. It was valued at S$460,000 by an independent valuer appointed by HDB, and the owners are asking for an additional S$100,000 cash-over-valuation (COV).

The owners, who declined to be named, are a young couple in their 30s who run an F&B business. They claimed to have received three offers so far, but all were rejected.

“The COV is too low. There are those who are asking for S$50,000 to S$60,000. There was one offer which was close, about $95,000. We are not in urgent need to sell. In a way, it’s to test the market. If we sell, we sell. If we don’t sell, we will just continue to stay,” said the owner of the 4-room flat in Bishan.

Analysts said with a continued strong demand for resale flats, owners are taking advantage of the situation to increasingly ask for higher prices.

Based on the latest HDB figures, 78 per cent of home sales transacted in the third quarter of last year were above valuation. That is a 22 percentage-point jump from the second quarter of last year’s figure of 57 per cent.

The median COV is also on the rise – jumping from S$3,000 in the second quarter to S$12,000 in Q3.

With HDB resale flat prices hitting an all-time high, housing agents said most flats now command at least S$20,000 to S$30,000 cash-over-valuation.

Units situated at good locations, close proximity to an MRT station and good renovation can see COV go up to S$50,000 to S$70,000.

But there is a limit to how much buyers are willing to pay.

“If it’s not to my liking, then I’d have to do up, (renovate) it again. So how much (am I willing to pay)? About $50 to $60,000,” said one member of the public.

“It’s too high for me. Because of my income I don’t think I can afford it,” said another.

HDB said only four out of the 13,000 4-room flats sold last year had premiums higher than S$70,000.

And analysts cautioned against jumping into deals that require high cash premiums.

“COV is a premium. Five years down the line, the renovation will deteriorate. And there’s no guarantee that you can sell at S$100,000 above the then value. Therefore, buyers should exercise discretion as far as how high you want to pay,” said Mohamed Ismail, CEO of PropNex.

HDB said it does not control resale flat prices as they are the result of negotiations between willing buyers and sellers.

It added that intervening in COV means forcing people to buy and sell at fixed prices.

HDB also urge buyers to have the relevant information before negotiating with sellers, and to offer a price within their means.

Source: Channel News Asia, 18 Jan 2010

CITY Harvest Church has announced a $310 million expansion plan to buy land, and to erect a building that will house shops, restaurants and a 12,000-seat auditorium.

Founder Kong Hee, 45, said during church services yesterday and last Saturday that the land sale would be completed later this month. He did not specify the location, but said the site would be in the ‘central south’ district.

He described the site as ’super large’. It is believed the site covers an area as large as three football fields – six times the size of the Protestant church’s current home in Jurong West Street 91, which it owns.

‘This is truly amazing,’ Dr Kong said yesterday at the Singapore Expo, where it has been renting a hall for services. ‘Finally, we will have a church in the marketplace, for the marketplace, to penetrate the marketplace.’

The church’s plans to incorporate retail elements into its building project follow similar plans announced in 2007 by New Creation Church, another large Christian group in Singapore.

New Creation has teamed up with mall developer CapitaLand Retail to build an ‘integrated hub’ at Buona Vista. The $1 billion project, when ready in 2012, will house shops, a concert hall and a theatre.

Details of the City Harvest project remain fuzzy. It is not known how many floors the building will have, how much space will be for retail and religious use, or when construction will start and end.

It is also unclear if the church will rope in partners, as New Creation did, to develop the site.

In response to queries from The Straits Times, Reverend Derek Dunn, City Harvest’s executive pastor, said yesterday that a non-disclosure agreement prevented him from commenting on the project.

At yesterday’s service, Dr Kong said only that there would be ‘ample parking’, and that the building would have ‘eateries, restaurants and world-class facilities’. The news surprised many churchgoers, who cheered and waved their hands.

Last Saturday night, Dr Kong posted a message on his Twitter service that proclaimed: ‘Told them the great news. People were laughing, crying, clapping. A new day for City Harvest Church.’

Yesterday, he told the congregation that expansion plans had been germinating since 2005, when the church began renting a hall at Singapore Expo to hold additional services for its growing congregation – now 27,000 strong. The Jurong West church seats only about 2,400.

According to City Harvest financial statements, it spent $3 million on rent from July 2007 to October 2008.

Dr Kong said he had considered 25 potential sites, including the Capitol Theatre at Stamford Road, The Pines Club at Stevens Road and the Toa Payoh Sports Complex, but had found them all unsuitable.

At $310 million, the proposed facilities would cost each member about $11,000 if they divided the amount equally.

Member donations make up more than 95 per cent of the church’s annual income.

The church plans to pay for the project over seven to 10 years, although it has set an initial target of $17 million by June.

Members were optimistic, despite the recession, that they would reach the target. They also pointed to how New Creation Church members managed to raise $19 million in just one day last year in March – at a time when banks were failing and millions worldwide were out of jobs.

Source: Straits Times, 18 Jan 2010

CapitaCommercial Trust (CCT) is close to selling Robinson Point for some $200 million, or about $1,500 per square foot of net lettable area, BT understands.

The buyer of the 21-storey freehold office property is said to be US property fund manager AEW. AEW bought the former Apollo Centre in late 2007 for $205 million, and has since revamped it through a major retrofitting exercise that was completed last year.

Robinson Point has a net lettable area of 133,139 sq ft and is said to have about 90 per cent occupancy.

The building generated $7.3 million net property income (NPI) for the financial year ended Dec 31, 2008. For the third quarter ended Sept 30, 2009, Robinson Point’s NPI was $2.62 million.

Some market watchers recall the property was in the market a few years ago, with a potential buyer even doing due diligence on it. However, the deterioration in office capital values put CCT’s target price at the time out of sight.

Robinson Point was completed in 1997 by DBS Land – which had merged with Pidemco Land in 2000 to form CapitaLand. In merger documents, the property was valued at $193 million as at June 15, 2000. It was part of CapitaLand’s office portfolio that was spun off to CCT when the trust was listed on the Singapore Exchange in 2004.

Market watchers wonder whether AEW will spruce up the property, just as it has done for the former Apollo Centre.

Under the revamp, the seven-storey building’s net floor area has increased from some 148,000 sq ft to 170,000 sq ft. The property is now known as 2 Havelock Road.

Market watchers note that Robinson Point’s impending sale reflects foreign investors’ growing appetite in the Singapore office market again.

The office blocks that had changed hands last year were mostly smallish deals of under $100 million apiece and bought mostly by local players.

For example, Parakou Building at the Robinson Road/McCallum Street junction was bought by a unit of Choo Meileen’s Cathay Organisation, and VTB Building at Robinson Road, Aviva Building at Cecil Street and Cecil House next-door were purchased by interests linked to Fission Group and Yi Kai Group.

AEW, which is headquartered in Boston, and its affiliates manage more than US$45 billion of real estate assets and securities, as at Sept 30, 2009, on behalf of institutional and private investors. The group set up an office in Singapore in April 2007.

Source: Business Times, 18 Jan 2010

MIDWAY through a 11/2-hour dialogue with Law Minister K. Shanmugam yesterday, 58-year-old Wee Kai Fatt stood up and gave voice to the claims of many coffee shop pundits here.

The senior engineer complained about the foreigner-fuelled population boom, saying he was shocked when he heard there were five million people living in Singapore.

This influx of foreigners, he added, had caused HDB home prices to rocket.

Taking it all in, Mr Shanmugam took pains to clarify what he said were several misconceptions in Mr Wee’s statement.

The Law Minister’s key message: Do not cast foreigners as the villains driving up the prices of HDB flats.

Speaking at the end of his three-hour visit to Yew Tee constituency in Hong Kah GRC, he said: ‘The first misconception is that somehow there are five million people and that is putting pressure on all of us. It doesn’t.’

Of the five million, 3.2million are citizens, and roughly 500,000 are permanent residents (PRs).

The remaining 1.3million are here on temporary work permits, and they ‘impose no burden’ on the public housing system, said Mr Shanmugam, who is also the Second Home Affairs Minister.

The reason: These foreigners are not allowed to buy any public housing flats, whether directly from the HDB or in the resale market.

As for the PRs, who can buy resale flats, he said they form too small a number at the moment to have any significant impact on prices.

So, who is supporting the high HDB prices?

Just last week, there were media reports of a two-room HDB flat in Chinatown selling for $245,000, or $45,000 more than the flat’s valuation.

Mr Shanmugam’s hunch is that Singaporeans are the likely culprits.

Asked by another Yew Tee resident about the high prices, he responded: ‘You say maybe foreigners are paying these high valuations. I think if you check, you’ll find that the majority are Singaporeans. The foreigners who come here and look at HDB flats generally buy the lower value flats.

‘You’ll see that they are spread out in the suburban areas, and their salaries tend not to be that high. They don’t get the kind of grants we give Singaporeans. And it’s not so easy for them. I haven’t done an analysis of the statistics, but I’d be prepared to say that it is primarily Singaporeans who are paying these prices.’

He added that it would be difficult for the Government to step in and impose some sort of limit on resale flat prices.

‘It requires the Government to intervene and for every one person you want to make happy, you will make another person unhappy,’ he said.

The Government’s approach instead was to give Singaporeans a leg up with concessionary loans and housing grants which can amount to as much as $40,000 just for young couples seeking to live near their parents.

Mr Shanmugam also noted that eight in 10 Singaporeans pay their HDB monthly mortgages completely with funds from their CPF savings and do not cough up any additional cash. All in, he said, flats remain affordable.

This year, the Government is ready to launch up to 12,000 build-to-order units to keep up with demand. In fact, HDB launched a new project in Yew Tee two weeks ago.

Yesterday’s dialogue highlighted again the simmering tension between foreigners and locals here, as the issue dominated the meeting with around 150 residents.

In the past year, the surge in foreigners has been blamed for various ills – from the rise in home prices to a lack of jobs for Singaporeans.

Mr Shanmugam’s remarks mark the latest attempt by a political leader to clarify the issue. He noted the Government need to work harder on getting across the message on the role of foreigners.

He said: ‘Politics is, in fact, the art of communication, and this question shows how much misconception there is on the ground, and that is one of the problems a Government has and must overcome.’

——————————————————————————–
THE SELF-SERVICE WAY

‘Let me pose a question back to you – ‘What do you think is the solution if we can’t get Singaporeans who all speak English? Then we have to get foreigners. Where do you think we can get them from, and can we educate all of them in English?’ Therefore, if you are given a choice, either there is someone there to serve you, which is Singapore’s style, or like in many Western countries, you do self-service.

I suspect…most Singaporeans will say ‘OK, never mind, even if he can’t speak English, I will prefer that to a self-service situation’. ‘

Mr Shanmugam, on foreign workers in the service sector who cannot speak English well

GOVT WILL PROVIDE OPPORTUNITIES

‘What the Government can do is to provide a secure environment, good education, housing and health care. Then it is up to the individual to take advantage of that situation. We are a global city and we have to compete globally…Can the Government ensure the person who is not so well qualified earns the same as the person who can go to (work in) New York or London? We can’t do that. If we did, we’ll be finished as a city.

But we live together. We can’t have some people doing very well and a lot of people suffering. So we have to ensure basic affordable housing, health care and so on. All that the Government will do, and upgrade and give opportunities to our people so that they can have a very high quality of life.’

Mr Shanmugam, on the Government’s role in narrowing the widening income gap

BILINGUAL POLICY GIVES AN EDGE

‘Our emphasis on second language has put us in good stead because as China is developing, the fact that Singaporeans are well-educated, hard-working, honest and have the ability to speak Mandarin, gives us tremendous advantage. Certainly, our businesses in China tell us that.

So I don’t think the bilingual policy is wrong. Maybe requiring you to master it at a very high level, writing as well as speaking, may have to be changed. The policy is not a mistake, but the expectations that were placed, in terms of the proficiency that was expected, may have been too high.’

Mr Shanmugam, answering a student who asked if the Government’s bilingual policy, in particular, the teaching of the Chinese language, is a mistake

Source: Straits Times, 18 Jan 2010

CapitaLand, Southeast Asia’s biggest developer, agreed to buy the Chinese property assets of Orient Overseas (International) for US$2.2 billion ($3.06 billion), doubling its real estate holdings in the world’s most-populous nation.

The purchase of the Orient Overseas Developments unit includes seven sites in Shanghai, Kunshan and Tianjin, with about 1.48 million square meters of floor space, the Singapore- based developer said in a statement today. About half is residential and the rest is office, retail and hotel space.

CapitaLand raised $2.8 billion from the initial public offering of CapitaMalls Asia in November. Orient Overseas, Hong Kong’s biggest container line, is selling its real estate projects in China after a slump in global trade and excessive capacity in the shipping industry led to its first loss in 10 years. Orient Overseas reported a US$231.8 million ($322.4 million) loss in the first half ended June 30.

“It’s a good price,” said Geoffrey Cheng, a transport analyst at Daiwa Institute of Research in Hong Kong. “Orient Overseas should be using the cash to focus on shipping.”

Orient Overseas spokesman Stanley Shen declined to comment on the deal. Orient Overseas, controlled by the family of former Hong Kong Chief Executive Tung Chee-hwa, had revenue from property development of HK$14 million ($2.5 million) in the first half of 2009, or less than 1% of total sales of HK$2.07 billion. Tung was Hong Kong’s first post-colonial leader after Britain handed the colony back to China in 1997.

Redeploying Capital

CapitaLand is “in a very good position” to redeploy funds raised from the CapitaMalls IPO, Donald Chua, a Singapore-based analyst at CIMB-GK Pte., said before the announcement. “Redeployment of capital was lacking last year.”

CapitaLand was halted from trading in Singapore today pending an announcement, as was Orient Overseas in Hong Kong.

The developer said it will take over a shareholder loan of US$1.05 billion owed by Orient Overseas Developments to its parent, and fund the acquisition from internal cash resources.

The sale comes after the Chinese government’s attempts to cool the mainland property market, such as stopping hoarding by developers expecting price gains.

“Any measures that the Chinese government takes to stabilise the market, we welcome them,” CapitaLand Chief Executive Officer Liew Mun Leong said at a press briefing today.

More Takeover Targets

Underlying demand for property in China remains, Jason Leow, the CEO of CapitaLand China, said at the event in Singapore. The Orient Overseas unit will be integrated into CapitaLand China, including employees, Leow said. He said he didn’t know whether CapitaLand made the highest bid for the unit.

CapitaLand wants China to account for 35–45% of its total business in the next three to five years, or about $10 billion, it said Dec 11. The company’s asset size in China was $6.7 billion, or 28% of the total, at the end of September, it said.

CapitaLand may look at other acquisitions in China, and “also Vietnam and possibly Singapore” following this deal, Chief Financial Officer Olivier Lim said at today’s press event. Lim said there are no plans to list CapitaLand’s Chinese business at present.

Lim said the acquisition “will have some impact on the decision-making process” regarding whether to pay a special dividend from the CapitaMalls Asia IPO. The company said in November it would recommend paying a special dividend following the listing.

Source: The Edge, 18 Jan 2010

Private previews of The Shore Residences (the former Rose Garden enbloc site) by Far East Organization in December followed by an official launch on Jan 1 drew crowds to the showflat on weekends. The new 408-unit development opposite Katong Shopping Centre has seen close to 200 units sold at an average price of $1,175 psf as at last week.

What’s more, the project has also spurred renewed interest in the Marine Parade-Amber Road neighbourhood in East Coast, according to the URA Realis database of caveats lodged from Dec 18 to Dec 23.

The development that has seen close to half a dozen units change hands at prices ranging from $920 to $1,000 psf in December was the 612-unit Cote D’Azur, a 99-year leasehold condominium completed in 2004 by Fraser Centrepoint Homes. The highest transacted price at Cote D’Azur last month was for an 840 sq ft, fourth-floor apartment, which was sold for $840,000 ($1,000 psf), according to a Dec 1 caveat. The seller had bought the apartment only eight months earlier for $690,000, or $822 psf, hence seeing a 22% capital appreciation in that short period. It shows just how dramatic the turnaround in the market was last year.

Two 1,141 sq ft apartments — one on the 18th floor of Block 68 and the other on the seventh floor of Block 66 — were sold for $1.088 million ($954 psf) and $1.05 million ($920 psf), respectively in December. The owner of the 18th-floor unit had purchased it for $687,300 ($602 psf) in July 2002 when the project was first launched. Thus, the seller saw a 58.5% capital gain after seven years. Likewise, the owner of a seventhfloor unit had also purhased it from the developer for $662,070, or $580 psf, thus seeing a 58.6% gain over the same period.

Two fourth-floor apartments in Block 66 were sold in late December, according to caveats lodged on Dec 21 and 22. One was a 904 sq ft unit that was sold for $836,000 ($925 psf), while the other was a 1,539 unit that went for $1.52 million ($987 psf). The owner of the 904 sq ft unit had purchased it from the developer in August 2004 for $472,000, or $522 psf. At that time, the property market was at the bottom of the cycle, thus the owner saw a 77% gain from the sale after five years.

The owner of the 1,539 sq ft apartment had purchased the unit in July 2002, when the project was launched, for $854,340, or $555 psf. He enjoyed a 78% price appreciation after seven years.

Across the road from Cote D’Azur is the 546-unit freehold condo The Sea View by Wheelock Properties, which was completed in 2008. In December, two apartments at the high-end project were sold at prices in the $1,400 psf range.

A sixth-floor apartment of 1,410 sq ft at Block 37 of The Sea View was sold for $2 million ($1,418 psf). The last time the property changed hands was in a sub-sale in July 2006, when it was sold for $1.18 million ($838 psf). The first owner had purchased the unit for $1.08 million ($769 psf) when the project was first launched in July 2005.

A 19th-floor, 1,216 sq ft apartment at Block 31 of The Sea View was sold for $1.726 million ($1,420) in December. The owner had purchased the property in a sub-sale in April 2008 for $1.568 million ($1,290 psf).

Also in the neighbourhood is One Amber, a 562-unit development by joint developers UIC, Singapore Land and UOL Group. The project is expected to receive its temporary occupation permit in 1Q2010. The most recent transaction was that of a 15th-floor apartment in one of the four 23-storey blocks. The unit was sold for $1.47 million ($1,120 psf). The owner had purchased the 1,313 sq ft apartment for $1.01 million ($769 psf) in December 2006, hence enjoying a 46% gain.

From the transaction prices in the secondary market, it is clear that prices in the Marine Parade-Amber Road neighbourhood are heading back to the peak levels seen in mid-2007.

Source: The Edge, 18 Jan 2010

I REFER to last Monday’s report, ‘Moneylenders target HDB sellers’, which mentioned that ‘agents…introduce desperate sellers to moneylenders, and may get a fee for the referral, usually about $500 a customer’.

The Singapore Accredited Estate Agencies does not support the practice of estate agents obtaining referral fees from moneylenders for introducing their clients to them.

Estate agents should not introduce HDB sellers to moneylenders for a referral fee as this is not within the ambit of their job and the real estate brokerage service rendered. Estate agents who do so may also breach ethical obligations to their clients.

Instead, according to the HDB resale checklist for sellers, estate agents should, among other duties, help HDB sellers work out their estimated sales proceeds before selling, and upon resale, sellers have to discharge their outstanding mortgage loan and refund the Central Provident Fund monies used to buy the flat with interest to their CPF accounts.

Estate agents should also advise sellers to plan for their next home before they sell their flat, and should the sellers wish to buy another HDB flat, they will need to know if they are eligible for an HDB or bank loan.

Consumers are encouraged to report estate agents who may, for their personal benefit, use pressure tactics to induce them to take up loans with moneylenders.

Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies

Source, Straits Times 18 January 2010

THE Law Ministry has tweaked proposed changes restricting lawyers’ access to their clients’ money in property deals and is going for a second round of public consultation before finalising changes.

The new suggestions will let conveyancing lawyers hold their clients’ money, although a string of safeguards will be put in place to make it that much harder for them to run off with the funds.

In the first round of public consultations last August, the ministry had suggested that lawyers no longer be able to deposit conveyancing money into their regular clients’ accounts and that the Singapore Academy of Law (SAL) be the main entity to hold it.

But after feedback, the ministry tweaked the measures to allow clients to choose to leave money matters with their lawyers but to be kept in approved banks, or leave it in the hands of the SAL.

The moves are geared towards providing a final solution to the longstanding problem of lawyers running off with their clients’ money. In the last six years, at least four rogue lawyers have fled with almost $20 million in funds meant for property transactions and held in client accounts in their law firms.

Conveyancing funds include the option to buy deposits, purchase and CPF money as well as the stamp duty payable on the deals. These typically come up to at least a six-digit sum for an average private property transaction.

Last year, about 33,000 private homes were sold. In addition, the HDB recorded some 28,441 flat resale deals, based on its last annual report ending March 2009.

Under the new proposals, law firms will have to open up a separate conveyancing account in approved banks which is separate from the client’s account.

Money from such conveyancing accounts can be withdrawn only with the signature of the lawyers of both parties of the property transaction and the payout will be only via cashier’s order.

In addition, the ministry will also appoint a party to set up a central signature repository of lawyers’ signatures to allow the banks and the SAL to check the counter-signatures against the records.

Lawyers will be allowed to hold up to $5,000 of their client’s money in their regular accounts, if their clients approve, to deal with last-minute payments and miscellaneous costs incurred in transactions.

For en bloc projects, they will be allowed to keep up to $2,000 per unit, subject to a $200,000 cap.

To give the changes bite, new legislation will be tabled in due course to subject those who breach the rules against keeping such conveyancing funds to fines of up to $50,000 or three years’ jail.

The proposals are not expected to slow down the transactions, which typically take two to three months to complete.

A trial run involving SAL and the three local banks – DBS, OCBC and UOB – on 400 new property deals will be conducted in April and May to iron out any kinks in the system.

Source, Straits Times 18 January 2010