Feb 07 2010

Tuas mega port: Experts back idea

Yes, go west and make Tuas the new mega port, if a proposal to free the Tanjong Pagar port area for a waterfront makeover gets the green light, experts suggest.

Although the lease at Tanjong Pagar, Keppel and Pulau Brani terminals ends only in 2027, it was a proposal by the Economic Strategies Committee (ESC) last week that sparked the buzz among shipping and property analysts.

The ESC had mooted turning Tanjong Pagar into a new waterfront development. It also called for a study on the long-term possibility of consolidating current port facilities at Tuas into a mega container port.

The Tanjong Pagar port area currently boasts an area of 85ha and a quay length of 2.3km.

The Maritime and Port Authority of Singapore (MPA) said that under the Government’s Concept Plan review, it will assess the feasibility of a consolidated mega port.

The MPA will take into account its need to achieve best-in-class efficiency and sustain Singapore’s long-term competitiveness.

Mr Ho Eng Joo, executive director of investment sales for real estate consultancy Colliers International, said giving the go-ahead would be good both for the Tanjong Pagar and Tuas areas.

He said: ‘With its good location and easy access to Raffles Place and Shenton Way, Tanjong Pagar will be a very exciting waterfront and developers will be interested in it.

‘Tuas, mostly industrial, will have the complementary infrastructure for a port.’

Mr Karamjit Singh, managing director of Credo Real Estate, said it makes sense to relocate the port as it is unproductive to have it so close to the heart of town as the land could be better used.

‘Tanjong Pagar will be of interest to developers and investors alike,’ he added.

Dr Thomas Menkhoff, practice associate professor of organisational behaviour and human resources at the Singapore Management University’s Lee Kong Chian School of Business, said many ports elsewhere have moved because they were no longer competitive at their original location or because of ’strategic common sense’.

Citing the German city of Bremerhaven, he said its new riverside quay on the mouth of the River Weser enhanced the competitiveness of the city’s port.

Associate Professor (Practice) Tan Kok Choon from the department of decision sciences at the National University of Singapore Business School, said Singapore’s main container traffic is now distributed over two locations: Tanjong Pagar and Pasir Panjang.

He agreed that if all container traffic could be concentrated at one place, efficiency and utilisation will go up.

Prof Tan said the new port must have such capabilities as turning around container vessels fast and getting vessels to berth quickly on arrival.

‘As Singapore’s container volume continues to grow beyond 2027 to become a super mega trans-shipment hub, the new location should be large enough to cater to more container vessels calling at Singapore,’ he said.

He added that given Singapore’s geography, the new port will most likely have to be along the southern coast, which leaves Tuas as the ideal choice since Changi Airport is in the east.

Dr Menkhoff said: ‘The Jurong Island project and the successful extension of the Tuas Peninsula over the last few years show that the western area has what it takes to have new port facilities.

‘However, concerns might include balancing development needs and protecting marine life as the waters around Tuas contain dozens of marine species.’

At least one shipping line is keen to see such a move.

Mr Teo Siong Seng, president of the Singapore Shipping Association and managing director of Pacific International Lines, said most of the container goods movement is towards factories in Tuas.

‘So a port in Tuas would save on road transport greatly. It’s a good plan and we definitely welcome it.’

Source: Sunday Times, 7 Feb 2010

Feb 07 2010

Rental disputes on the rise

Vacate the flat at once, project supervisor Ashirafur Rahaman Khan said he was told by a group of six people just before midnight.

It happened more than a week ago, the 37-year-old said. He was with his wife in their rented flat’s corridor in Yishun Street 81.

His wife, eight months pregnant and who had recently flown in from Bangladesh, was exercising in the corridor.

The group of six men and women who confronted the couple included the landlord and his son.

‘One of the men said I didn’t pay my rent, so I had to move out. But I had already paid for the month and even gave some advance payment,’ said the permanent resident, who rented the flat for $1,400 a month with a fellow tenant who was not present during the encounter.

Part of the group then entered the flat, saying they were removing the furniture.

Seeing his wife agitated, Mr Ashirafur then agreed to leave. ‘I said, ‘Don’t touch the furniture. We’ll move it ourselves’,’ he said.

So in the wee hours of the morning, the flat’s occupants scrambled to find lodging with friends, Mr Ashirafur said.

When contacted, the landlord’s son, who did not give his name, said it was his father who had decided on the course of action.

But he said: ‘Let’s say you rented a house. If anyone else comes (to stay), the owner should be informed.’

Mr Ashirafur told The Sunday Times his wife and his sister had flown in from Bangladesh. His sister had come along to take care of her.

He said his next move is to go to the Small Claims Tribunal, taking along his tenancy agreement, which states that one month’s notice is required for a mutually agreed termination of tenancy.

In recent years, more tenants – and to a lesser extent, landlords – have approached the tribunal for help to settle rental disputes.

This increase took place after it extended its jurisdiction in February 2006 to include disagreements on contracts for homes rented out for two years or less.

The tribunal was set up in 1985 to resolve small claims between consumers and suppliers.

Last year, 1,349 rental disagreement claims were lodged, more than three times the 401 claims filed in 2006. In 2008, 1,137 claims were lodged.

The majority of such claims – 84 per cent of last year’s cases, for example – are filed by tenants, statistics from the Subordinate Courts showed.

Prior to 2006, such aggrieved parties settled disputes such as unpaid rents or leaky ceilings between themselves or through the courts – a time-consuming and usually expensive process.

The Small Claims Tribunal handles cases involving sums of up to $10,000, though this limit can be raised to $20,000 if the parties agree.

Once a claim is lodged, the tribunal arranges a consultation before a registrar who will mediate the claim. The case goes to a hearing if there is no settlement during the meeting.

The time taken to resolve a claim depends on the nature and circumstances of each case, said the Subordinate Courts’ spokesman.

From the date of filing to the first consultation, the waiting period is usually between 10 and 14 days. From the final consultation to the hearing, the waiting period is usually within 10 working days.

When contacted, a Housing Board spokesman said it advises flat owners and tenants to settle their differences amicably when disputes come to its attention.

‘HDB will usually advise the complainant to lodge a claim with the Small Claims Tribunal. If mediation is not an option, the complainant may choose to take a private suit against the other party,’ she said.

The spokesman added that common disputes included issues over payment of rental, forfeiture of deposits and the termination of tenancies without sufficient notice.

Various types of rental disputes have hit the news in the past several years. At times, tenants returned to their flats only to find the locks changed.

Landlords have also suffered. When the economy dipped last year, tenants reportedly skipped town without paying the rent. They left the keys in the flats’ letterboxes.

‘Nowadays, such cases are common. Why? Because the tenant can’t afford to pay, or the landlord has some reasons to get back his place and finds an excuse,’ said Mr Andrew Tan, a senior division director from real estate agency Dennis Wee Group.

Rental agents who spoke to The Sunday Times said tenants and landlords should exercise due diligence and abide by proper tenancy procedures – to protect themselves if a dispute arises.

For example, tenants should ensure that their landlords are the actual owners of the flats and have approval to rent the units out. Landlords, on their part, should check their tenants’ particulars.

Proper tenancy agreements should be drawn up, setting out detailed terms and conditions. Stamp duty has to be paid too.

‘If everything is done in the right manner, the tenant should have no fear at all,’ said Mr Richard Sim, an agent with real estate agency ERA.

Mr Tan also advised tenants to pay the monthly rental using bank transfers, so ‘there’s a record’.

‘It’s not advisable to pay cash. Even if you had written a receipt, the owner can say he didn’t sign it,’ he said.

Above all, said ERA agent Paul Ravie, tenants and landlords must honour the tenancy agreement.

‘This is an important document, but many people don’t really take it as a serious, binding contract,’ he said, adding that agents must take care to explain the terms to both parties ahead of the signing.

Source: Sunday Times, 7 Feb 2010

Feb 07 2010

The homeless deserve better treatment

As someone who works with like-minded individuals to help and raise awareness of the homeless in Singapore, I am heartened by last Sunday’s article, ‘Number of homeless people doubles’, which gave the issue a much-needed public airing.

Among several shortcomings is the treatment of the homeless by some agencies which purport to help them.

For instance, some of the homeless people tell us they are treated rudely by National Parks Board (NParks) officials.

Also, a pregnant mother of two told us that when she went to the Ministry of Community Development, Youth and Sports to seek help, she was advised to rent a room at a backpackers’ hotel for $20 per night.

One of us managed to find her a place at a homeless shelter.

We also learnt that two families who were taken to and stayed overnight at the Angsana Home, a home for the destitute mentioned in another article (‘Govt help turned his life around’), were not informed of the involuntary confinement there.

Even though two of the family members had jobs, they were not allowed to report for work the next day.

It is also relevant to consider whether the Angsana Home, with its high fences and heavy police presence, and which has inmates who may be prone to violent behaviour, is a good place to house people who, apart from a lack of shelter, can care for themselves.

Also, why were HDB flats suddenly leased out as shelters to the homeless, when the authorities must have known about their increasing numbers for a long time?

And if there is a reasonable explanation for the shortage of shelters, why are NParks officials chasing the homeless away from the beaches, knowing full well they have nowhere else to go?

Another article, ‘Strict housing policies, illness and divorce leave some stuck’, suggests that the homeless are irresponsible and cannot plan for their future, by stating that they do not save for crises like unemployment or illness.

In fact, some of the homeless people spend their entire income on the bare necessities, so it would be impossible to have enough money to service a housing loan.

Finally, if the financial crisis is not to be blamed for the increase in the number of homeless people, is it possible that there are many people who cannot afford public housing any more?

Joshua Chiang

Source: Sunday Times, 7 Feb 2010

Feb 07 2010

Single PR can’t buy resale HDB flat

I refer to last Sunday’s sidebar, ‘What properties can PRs buy?’, alongside the article on what permanent residents look for when buying resale flats (‘When PRs buy HDB resale flats, key considerations are cost, location’).

The sidebar stated that ‘PRs are allowed to buy resale HDB flats – but not new flats – without housing and mortgage subsidies’.

This is not entirely true.

Single Singaporeans over the age of 35 are allowed to buy resale HDB flats, but a single PR cannot do so.

I have appealed against this ruling for the last year or so, but have been unsuccessful.

I am nearly 59 and divorced, but am contributing to Singapore by teaching English and creative writing. I was born and raised in Singapore and was a citizen.

Nearly 30 years ago, I married an Englishman, and later took up British citizenship. I did so not because I was disloyal to Singapore, but because Singapore did not permit dual citizenship.

Five years ago, I divorced my husband. I have two sons who have served national service and retained their Singapore citizenship. They now live here.

I decided to come back to Singapore to live when my grandchildren were born. My sons managed to help me get PR status here.

I applied for an HDB flat as I could not afford a private apartment. I went to see the Housing Board, but my application was rejected. This year, I made an appeal and it was rejected too. So I have to stay with my family when I am in Singapore.

I understand the need for stringent housing rules so that people do not abuse the system, but I feel that some cases have to be reviewed with humanity.

Josephine Chia (Ms)

Source: Sunday Times, 7 Feb 2010

Feb 07 2010

Collective-sale fervour returning

Last Wednesday, Credo Real Estate sealed the first collective sale of the year.

Four owners of a Balestier industrial plot benefited when they sold their Jalan Ampas site – which can be converted into residential use – for $27.5 million.

More such deals are likely to be inked this year, after a dry year when just one collective sale was done. That was Block 18 of Dragon Mansion, completed in early December.

But the success rate will depend a lot on the market and owners’ expectations, consultants said.

Already, property consultants say many owners are again placing their hopes on hitting the collective-sale jackpot, in line with the improved property market and brighter economic outlook.

‘More estates are now forming sales committees to either start the sale process or re-start the process for those that had not been transacted successfully previously,’ said CKS Property Consultants’ investment manager Chia Mein Mein.

An industry observer pointed out that most developers are running out of land for mass market projects, so they are very keen to buy.

‘But prime land is another story. They still have quite a lot of it.’

Credo Real Estate’s deputy managing director Tan Hong Boon said: ‘We should see more activities towards the end of this year as many owners are keen to start the collective-sale process now.’

With more inquiries coming in, property consultants are busy pitching for jobs.

Many keen estates are those that had tried to sell en bloc but failed in the previous peak in 2007, the consultants said.

These include Pender Court off West Coast Highway, Royalville in Bukit Timah and Hawaii Tower in Meyer Road.

Collective-sale launches so far this year include the 11-unit Holland Hill Lodge, which was put up for sale en bloc last month at an indicative price range of $15 million to $16 million, or $1,038 to $1,107 per sq ft per plot ratio.

More launches can be expected from the second quarter, said Mr Tan.

A total of 116 collective sales were done at the peak of the property boom of 2007.

This figure slipped to only eight in 2008 amid the global financial crisis.

This year, there will certainly be more sales, consultants predict. However, some owners of prime or mid-end projects continue to hope for prices that are above the previous peak, they said.

Now that resale prices are moving up, more people are worried that they cannot get a similar replacement property, explained a consultant who declined to be named.

Still, the problem is the gap between buyers and sellers’ expectations.

‘There’s still a great mismatch in prices. Developers are quite cautious,’ he said.

Source: Sunday Times, 7 Feb 2010

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