A Singaporean who only wants to be known as Mr Tan put his three-bedroom, 1,528 sq ft unit at Chuan Park condominium on Lorong Chuan for sale a month ago. Within a day, he found a buyer who was willing to pay his asking price of $980,000, or $641 psf.

“We sold because the price reached our expectations,” he says in a phone interview. “The property may be old, but it is well-maintained. Rental demand is healthy, given the proximity to good schools and the Australian International School. There is potential for en-bloc sale and the location is wonderful — right next door to the MRT station.”

For the period from Jan 4 to 8, there were three transactions at the 452-unit Chuan Park, at prices from $690 to $800 psf. On Jan 5, a 710 sq ft studio apartment on the second floor was sold for $568,000, or $800 psf. The owner had purchased it for $450,000 in 2007, thus enjoying a 26% price appreciation in just two years.

Another studio apartment on the fourth floor went for $520,000, or $732 psf. The owner had purchased it for $458,000, or $645 psf, in 1995. This represents a gain of 13.5%. The previous owner had bought it for $395,000 in the same year, thus enjoying a gain of 16%.

Excitement is mounting in the Serangoon Gardens Estate in the vicinity of Lorong Chuan and Serangoon Avenue 3 as the Circle Line nears completion and another 11 new MRT stations from Tai Seng to Dhoby Ghaut open in April. The Lorong Chuan MRT station opened last May.

Good schools like Nanyang Junior College and St Gabriel’s Primary School as well as the Australian International School have also attracted families with schoolgoing children and investors to Chuan Park. The condo is a short distance from the New Tech Park and one stop away from the Serangoon MRT station, where a new mall called nex is coming up.

What’s also fuelling optimism among investors and owners of existing condos looking to sell is Hong Leong Holdings’ 400-unit condo that is expected to be launched in the coming months. Hong Leong was awarded the 99-year leasehold site on Serangoon Avenue 3 last October with a top bid of $221 million, or $529 psf of gross floor area, which was 164% above the reserve price. Property consultants have estimated that the breakeven price for the project is likely to be $900 to $950 psf. They expect the new condo to be priced above $1,000 psf.

Fred Teo, a property agent at Knight Frank, says these two factors are the main reasons driving increased demand at Chuan Park. He notes that prices in the 26-year-old, 99-year leasehold condo have risen from around $500 psf last April to $700 psf in recent months. The launch of the new project by Hong Leong would probably lift prices higher, says Teo.

Opposite Chuan Park are two 99-year leasehold condos: 372-unit, 11-year-old The Springbloom and 500-unit 15-year-old Chiltern Park. Prices in those two projects have also been creeping up. On Jan 6, an 893 sq ft unit at The Springbloom was sold for $650,000, or $728 psf.

At Chiltern Park, a 915 sq ft unit was sold for $660,000, or $721 psf, according to a caveat lodged with URA Realis on Jan 6. At the Jones Lang LaSalle property auction on Jan 20, a second-floor, 1,518 sq ft apartment at Chiltern Park was put up for mortgagee sale with an opening price of $980,000. A few parties bid for the property, which was sold for $1.015 million, or $669 psf.

With the Circle Line nearing completion and Hong Leong’s new condo launch in the offing, it looks like interest in condos in the Lorong Chuan and Serangoon Avenue 3 neighbourhood will intensify in the coming months.

Source: The Edge, 25 Jan 2010

A NEW survey shows that 80 per cent of all real estate transactions in Singapore are done through real estate agents and most of these end with customers encountering some sort of ‘bad service’.

Respondents disappointed with services of estate agents highlighted ‘bad or wrong advice’ as well as the failure to get favourable prices to be the key problems they had with the agents.

This was a part of the findings by final-year Diploma in Real Estate Business students of Ngee Ann Polytechnic in their recent research project on the public’s perception and expectations of property agents.

The survey covered 1,014 respondents from diverse age groups, professional and educational backgrounds.

Giving details, Nicholas Mak, real estate lecturer at the tertiary institution who helmed the survey, noted that eight out of every 10 property transactions in Singapore are done through an estate agent and 77 per cent of those who use estate agents encountered ‘bad service’ of some sort.

The survey also showed that 73 per cent of the respondents felt that accreditation of the profession is necessary with two-thirds of them expressing their satisfaction with the current accreditation scheme.

Mr Mak added that 97 per cent of those who indicated that accreditation is necessary for every agent also wanted some form of government intervention.

He felt that the findings are well timed with the new regulatory framework for estate agents, which the government is planning to put in place soon.

‘This survey was initiated with the objectives of finding out consumer opinion of real estate agents and improving the existing accreditation system,’ Mr Mak noted.

The lecturer noted that those disappointed with services of estate agents had highlighted ‘bad or wrong advice’ as well as the failure to obtain favourable prices to be the key problems they had with the estate agents.

‘Some of them also felt that their real estate agents neglected their opinions or suggestions,’ he added.

The survey also covered the public’s views on the following issues:

# What ought to be the minimum qualification of estate agents and if that affects their competency

# Consumers’ expectations of services from property agents

# Whether experience and qualification equally matter in the choice of an estate agent

# Suggestions for government action.

Source: Business Times, 25 Jan 2010

I REFER to last Thursday’s Forum Online letter by Mr Paul Chan, ‘New rules on property funds not safe enough’. Mr Chan’s main concern is the role of stakeholder that lawyers play, which allows them to hold conveyancing money pending completion.

The proposed regime of measures offers alternatives for consumers who hold the same view as Mr Chan. In situations where the conveyancing process requires a third party to hold money for the buyer and seller, the Singapore Academy of Law (SAL) will offer a stakeholding service. Buyers may also choose to make payment of transaction proceeds directly to sellers.

Escrow arrangements, where a bank holds money on behalf of both parties, will also be available where it is commercially feasible for the bank to offer the service.

Those who wish to be assisted by their lawyers for commercial convenience can do so using the conveyancing accounts of the law firms under the proposed arrangement. Lawyers will not have unilateral control over the release of money held in the conveyancing accounts. Both sets of lawyers will have to sign off before payment can be made from these accounts.

We are working with lawyers, banks, SAL and other stakeholders to ensure that the new system will not be more time-consuming nor cumbersome for the consumer.

We thank Mr Chan for his feedback, and welcome further views which will help us refine the proposed measures. The public consultation materials are at the Ministry of Law’s website (www.minlaw.gov.sg) and the Reach portal (www.reach.gov.sg).

Chong Wan Yieng (Ms)
Head, Corporate Communications
Ministry of Law

Source: Straits Times, 25 Jan 2010

ARTS studios and sports facilities will occupy three buildings at the site next to the workers’ dormitory in Serangoon Gardens.

The blocks were originally meant to form a buffer zone between the dormitory and the estate’s residential areas, to ease residents’ concerns about the workers living there.

The buildings are part of the former Serangoon Gardens Technical School along Burghley Drive.

Now, the Singapore Land Authority is tendering the blocks out on its website for use as arts, dance or drama studios and schools, or interim facilities for sports such as tennis, squash or badminton.

The blocks, with a gross floor area of 1,935 sq m, will be rented out at $14,500 a month for two years.

The website of Aljunied GRC, which administers the estate, also carried an announcement about the upcoming tender, which is expected to open later this month or next.

The tender results will be announced by April or May, according to the website.

Aljunied GRC MP Lim Hwee Hua said on Saturday that the area had already been zoned for use as a school, so it was feasible to use the site as an arts and drama studio or sports facility.

She made the remarks on the sidelines of a community programme to encourage more women to go for breast cancer screening.

Estate residents welcomed the prospective use of the buildings.

Mr John Leow, 69, who chaired a residents’ committee on the dormitory issue, said he was not worried about the buildings’ proximity to the dormitory because they could not be accessed from the dormitory.

‘Arts or sports facilities will enrich the community,’ he said.

When the workers’ dormitory, now called the Central Staff Apartments, was proposed in 2008, upset residents voiced concerns about security, safety and traffic congestion.

The dormitory now houses more than 100 workers from China, India, Malaysia and Bangladesh. The number will rise to 600 by mid-year.

Mrs Lim noted there had been no issues with the workers since they moved into the buildings last month.

Source: Straits Times, 25 Jan 2010

Nomura Singapore has inked a lease for 102,000 sq ft at Marina Bay Financial Centre (MBFC), Raffles Quay Asset Management (RQAM) announced on Monday.

The space is spread across levels 34 to 37 of MBFC’s 50-storey Tower Two. ‘The leading financial securities company in Japan, Nomura has signed a 12-year lease and will take occupancy of the space in 2011.

‘The latest tenant brings the total pre-commitment of MBFC Tower Two to approximately 66 per cent, with overall pre-leasing figures for MBFC Towers One and Two at approximately 79 per cent,’ said RQAM, the asset manager for MBFC.

The development’s Towers 1 and 2 are slated for completion this year.

MBFC is being developed by a consortium comprising Hongkong Land, Cheung Kong (Holdings) Ltd / Hutchison Whampoa and Keppel Land.

Source: Business Times, 25 Jan 2010

Aspen Heights may be 11 years old, but the massive 606-unit condominium located along River Valley Road has been enjoying a resurgence of interest from homebuyers, riding on strong sales of new developments nearby. After only 15 transactions hovering at the $1,000 psf level in the first half of 2009, more than 30 units have changed hands in 2H2009, with prices surging past $1,400 psf. For the period Dec 23 to 31, there were three caveats for units sold at $1,250 to $1,450 psf, according to URA Realis.

After the onset of the financial crisis in late 2008, prices at Aspen Heights sank below $1,000 psf for about half a year, before rebounding strongly in June 2009 with the rest of the market. The main reason for the upturn could be the strong sales of nearby developments, including The Wharf Residence and Martin Place Residences, which were among the top sellers last year.

The two upper-mid-tier projects were relaunched in mid-May last year at prices that were 20% lower than in early 2008. For instance, in mid-May last year, CapitaLand had priced the remaining units at the 173-unit The Wharf Residence on Tong Watt Road off River Valley Road at $1,200 to $1,500 psf, compared with $1,500 to $1,900 psf for the first phase released at previews in mid-2008. Meanwhile, Frasers Centrepoint Ltd also relaunched Martin Place Residences at Martin Place off Kim Yam Road at $1,260 to $1,700 psf, compared with its soft launch in early 2008, when 28 units were sold between $1,700 and $2,000 psf.

Since last May, however, prices of both projects have enjoyed an uplift. Last October, a high of $1,496 psf was achieved in a new sale by the developer when a 2,206 sq ft unit at The Wharf Residence was sold for $3.3 million. The condo is expected to be completed in 2013.

Likewise, at the 302-unit Martin Place Residence, sales have picked up since May. Last month, a 1,044 sq ft unit was sold for $1.88 million, or $1,800 psf, in a sub-sale according to a Dec 2 caveat. This is a 13.7% gain for the original owner, who purchased the unit from Frasers Centrepoint Homes and sold it in just six months.

The buoyant demand for homes in the River Valley Road area could also have been sparked by the new shopping centres that opened along Orchard Road last year: ION Orchard, Orchard Central, 313@Somerset and Triple One Somerset (at the former Singapore Power Building site). Easy access to a range of good schools like River Valley Primary School and Singapore Management University as well as cafés and restaurants in the Robertson Quay area continue to reel in families with school-going children as well as investors.

New developments under construction have also drawn buyer interest to existing developments in the River Valley and Mohamed Sultan neighbourhood. The largest project in the area is easily Aspen Heights, developed by the former DBS Land (now part of CapitaLand). Units range from 882 sq ft two-bedroom apartments to 1,604 sq ft for four-bedrooms, while penthouses measure 2,691 to 3,143 sq ft.

With prices recovering to 2007 levels, it’s also a good time for owners looking to sell their properties. According to a Dec 30 caveat, a 1,324 sq ft unit on the fifth floor of block 263 (one of two blocks) changed hands for $1.67 million, or $1,260 psf, translating into a 23% gain for the seller, who purchased the unit in early 2007.

On the 10th floor of the neighbouring block 261, a 2,691 sq ft penthouse fetched $3.9 million, or $1,450 psf. That’s a 19% gain for the seller, who purchased the unit for $3.28 million three years ago, according to a March 2007 caveat.

With renewed investor interest in projects in Orchard Road and investors targeting both older projects and new launches, it won’t be surprising to see resale prices at Aspen Heights returning to or even surpassing mid-2007 levels.

Source: The Edge, 25 Jan 2010

IT MIGHT have been where old folk played chess, tended to vegetable patches or pet birds, or just gossiped.

But HDB void decks of today are anything but breezy, and more geared towards the techie.

With videos, photos and live updates, they have evolved into online forums addressing everything from suitable wallpaper to leaky toilets – and are as much about being utilitarian as they are about fulfilling a social function.

My generation does not even know we can donate old-but-still-working furniture to the residents’ corner, let alone the people who might sit there.

But HDB ‘social networking’ sites – created by and for young heartland residents – are entirely new creatures, portals where youths are anything but apathetic.

Given the right setting, they are heralding a revival of buzzing community life in residential estates. (Never mind that they are generally the first to avoid traditional community activities deemed ‘uncool’ or only for the old.)

There are at least 10 such sites – apart from dozens of Facebook and Twitter accounts – ranging from the more popular such as Punggol.org to the quirkier MyHomeTown.sg

Like other social networks, these sites have photos, videos, forums and information for residents of a particular town. Punggol and Pinnacle@Duxton, for instance, have scores of young residents in their 20s and 30s among their members.

They befriend one another there, in a whole new kampung experience. It is something my parents’ generation might have missed out, having had to move from smaller settlements into high-rise apartments, whose dwellers barely glimpsed at one another before slamming their doors shut.

Online, a new breed of neighbours are friendlier than their closed doors suggest. Punggol.sg noted: ‘In towns, like Punggol which is densely populated, it is much more difficult to be friendly to people you see on the streets.’

Yet online, people chat about the latest developments even before they move in, grouse about defects or trade decorating tips. They even know who is living in which unit.

They bond quickly too, because it is speedier to get information or alerts out to a large mass of people.

Spotted a dodgy fellow loitering at the lift lobby for several days? Send out an immediate warning on the forum.

Want to know how your new flat is progressing? Log on to see other people’s photos.

The new Pinnacle@Duxton residents have even banded together online to generate debate over the lack of security in certain areas.

In an instant, neighbours become friends, something that in the offline world took people years to do.

The virtual void deck is as much a part of life to young people today as the older, physical model is to seniors.

The downside, of course, is that an iconic Singapore scene – that of residents relaxing at void decks – is disappearing.

But even if we lose a physical piece of our heartland culture, it is heartwarming to see that some things survive, even flourish, in virtual form.

Source, Straits Times 25 January 2010