Over the Lunar New Year holidays, Singapore’s first casino and Universal Studios theme park at Resorts World Sentosa garnered all the attention.

But some are wondering if the focus on roulette tables and roller coaster rides will cause the mainland’s central shopping belt along Orchard Road to lose its glitter.

Singapore’s first casino and Universal Studios theme park opened over the weekend creating a buzz, not just here, but in the region as well.

With Singaporeans and tourists expected to throng the attractions – the question is – what will happen to the country’s premier shopping belt, Orchard Road?

For one, hotels there said they are not perturbed by the competition.

Katherine Wong, GM, Mandarin Orchard Singapore, said: “It is an anticipated competition where it’s the IR or new hotels coming into the market. We monitored our occupancy very closely. It could be a friendly threat for all, but I do not see any significant ups and downs.”

Hotels said it’s unlikely Orchard Road will be overshadowed by developments in Sentosa, a point echoed by retailers.

Jimmy Fong, CEO, AFOR – EpiCentre, said: “Resorts World Sentosa will bring in more crowds because more tourists will be in Singapore. Not everyone will head to the casino, where it’s more entertainment. Our place here is more for shopping.”

And Orchard Road, after the recent revamp at its many shopping malls, is still pulling in the crowds.

In fact, 313@Somerset saw some 80,000 shoppers during the Lunar New Year holidays with retailers saying business doubled.

The mall is also linking up with Orchard Central in two to three years’ time, all part of plans to enhance the shopping experience.

While the situation for now seems okay for Orchard Road hotels and businesses, it remains to be seen how it’ll be like when the second integrated resort opens in Singapore.

Ruprecht Schmitz, general manager, Orchard Hotel Singapore, said: “If you go to the resort in Sentosa, you may not want to stay only in Sentosa and if you go to Marina Bay, may not only want to stay in Marina Bay. There are many other things to do in Singapore and you may also have clients who want to go to these resorts but don’t want to stay there.”

Orchard Hotel said the influx of tourists to Singapore as a result of the integrated resorts should boost their weekend occupancy as well.

Source: Channel News Asia, 17 Feb 2010

Kampung Baru lies in the shadow of the world-famous Petronas Twin Towers, but the Malay enclave may soon have a shine of its own.

Prime Minister Najib Razak recently announced that the government will redevelop the enclave of old houses sited among narrow streets in downtown Kuala Lumpur.

He promised that the plan will include the participation of the residents, but knows he has to tread carefully when talking about the 110-year-old enclave.

Plans to redevelop the area had been announced at least three times previously, but residents and land owners objected to the compensation offered.

Said Mr Haji Ali, 62, who owns a nasi lemak stall in the area: ‘Land owners should be paid the market value of RM2,000 (S$825) per square foot, which is the rate of other properties in this prime area.’

Previous developers offered only RM300 to RM350 per square foot, he added.

Kampung Baru is Malay reserve land, which means it can be sold only to Malays, making it hard to develop.

There is also the issue of land ownership, as some of the lots are owned by as many as 200 people.

This happens because, under Islamic law, the land is passed on to other heirs after an owner dies. Thus, the number of owners can multiply in a hundred years.

There were also attempts to turn Kampung Baru into a tourist attraction, but the project failed to catch on.

With a population of about 35,000, the village is rich in Malay history.

Umno founders held their meetings there. Today, Malay grassroots groups often gather at the famous Kampung Baru mosque to protest against current issues.

The roads, dotted with Malay food stalls, are narrow two-way streets with parked cars taking up one whole lane.

Political analysts said the project would be a good move for the ruling Barisan Nasional (BN) as it would attract the vote of urban Malays if Mr Najib can successfully redevelop the area.

‘All the previous prime ministers, including Tun Dr Mahathir Mohamad in his 22 years, failed to do it,’ Professor Shaharuddin Badaruddin of Universiti Teknologi Mara said.

The village falls under the Titiwangsa parliamentary seat in the Federal Territory of KL. Previously under the BN, it fell to opposition Parti Islam SeMalaysia for the first time in the 2008 polls.

But they warned that Datuk Seri Najib must tread carefully to avoid a possible backlash, as Kampung Baru holds sentimental value for most Malays.

Political science lecturer Agus Yusoff also said the government must be careful when compensating the land owners and developing new buildings.

‘They have to be careful or there could be unhappiness and a backlash later,’ he said. ‘If possible, the land owners should still be the owners of the newly developed property.’

Another problem is changing the mindset of some of the old residents, who would not be able to accept changes, said businessman Arbain Yahya, 50.

Federal Territories and Urban Well-being Minister Raja Nong Chik Raja Zainal Abidin, knowing the hurdles ahead, said land owners stand to receive up to

RM4 million each upon accepting the redevelopment concept plan proposed by the government.

He said the value of the 80ha of land is RM20 billion.

He added that the government is looking at the possibility of introducing laws whereby if 80 per cent of residents in a particular area agree to development, the 20 per cent who disagree must accede to the majority.

Fast facts

Location: The 110-year-old village is less than 1km from the Petronas Twin Towers.

Size: About 80ha, the size of 60 football fields, with 35,000 residents.

Restrictions: It is Malay reserve land, which means it can be sold only to Malays.

Problems: Difficult to develop because there are about 1,000 landowners, each owning small plots.

Attractions: Famous for its nasi lemak and Malay food stalls.

Source: Straits Times, 17 Feb 2010

As the US housing market boomed in the past decade and fuelled a bull market in mortgage investments, Norway’s government-owned investment fund went along for the ride, and the fall.

After the fund recorded its worst-ever year in 2008, managers blamed investments backed by US mortgages as a key culprit and began to cut back.

Now, US officials are looking to foreign government funds again.

The Federal Reserve is scheduled at the end of March to halt its purchases of mortgage-backed securities, a move that could drive up the low interest rates that have helped the housing market show new signs of life.

The Fed is gambling that private investors will step in to buy the securities, helping to keep rates from spiking. Senior officials in the Obama administration and at the Fed say they are counting in part on foreigners to keep the housing market funded.

But financial analysts and advisers familiar with foreign government funds, known as sovereign wealth funds, predicted that the United States will get limited relief from abroad.

‘I don’t think it will be enough to fill the hole,’ said Ajay Rajadhyaksha, head of fixed-income strategy for the United States at Barclays Capital.

Nor is Norway’s experience encouraging. Its government’s holdings of securities issued by the mortgage financier Fannie Mae declined from a 2007 high of more than US$15 billion, at current exchange rates, to just more than US$5 billion as of Sept 30, 2009, according to the fund’s public reports.

Contracts with external investment mangers were slashed, and the fund’s guidelines were refocused toward individual stocks, real estate and other deals that the fund’s staff had the expertise to vet.

The largest sovereign wealth funds belong to big exporters such as China and the oil-rich monarchies of the Persian Gulf that accumulate trade surpluses.

These funds often set guidelines for the amount of money they are willing to put into bonds or other fixed-income investments, including mortgage-backed securities. Even if interest rates begin a modest rise, as he expects, Mr Rajadhyaksha said he does not think it will be enough for sovereign wealth funds to direct large amounts of money away from alternatives, particularly US Treasury notes, that are less risky and not associated with the mortgage crisis.

‘A lot of sovereign wealth funds have a vested interest in seeing the US stabilise,’ said RP Eddy, whose Ergo consulting firm advises foreign funds on US and global economic issues. ‘But some wealth fund coming in to save the day? That is not going to happen.’

The securities issued by government-sponsored enterprises such as Fannie Mae and Freddie Mac are not debts of the US government, but do carry an implicit guarantee that the companies not be allowed to default. In December, the government carried that a step further, saying it would not limit the amount of money made available to keep the firms solvent.

Senior US officials said the goal was to reassure buyers of the companies’ mortgage securities that they were safe. ‘That’s particularly true for foreign investors,’ said Eric Rosengren, president of the Federal Reserve Bank of Boston.

The Fed’s departure from the market for mortgage-backed securities is only one step being taken to wind down the emergency measures put in place by the US government during the financial crisis. But it is one that could have a direct effect on homeowners and potential buyers and on the tentative recovery in the real estate market.

By packaging home mortgages into large bundles that are then sold to investors, Fannie Mae and Freddie Mac generate funds that allow banks and other lenders to provide more loans. Keeping that market liquid during the depths of the global credit crisis was a high priority – much so, that the Federal Reserve is expected to own US$1.25 trillion in mortgage-backed securities by the time the program ends.

If funding evaporates in the absence of federal support, that would mean higher interest rates – making purchases more difficult for buyers and payments more expensive for those with adjustable-rate loans.

Some financial analysts said US officials consider a healthy housing market so vital to an economic recovery that they would roll out new policies to keep mortgage rates low if sovereign wealth funds and other private investors fail to step in with enough funding.

Source: Business Times, 17 Feb 2010

I READ the report, ‘Uproar over new rental flats going up’ (Feb 9), with great concern. Although Singapore is a developed country, we have somehow created divisions in our cohesive society.

People are now more self-centred. Some look at the type of flats they live in and conclude that having rental flats around theirs will lower the value of their property. Some assume that people who live in rental flats are trouble makers.

I grew up in a rental flat in Hoy Fatt Road and later moved to the Port of Singapore Authority (PSA) quarters. When my mother retired from PSA, we moved to Telok Blangah Drive, renting a one-room and one-hall flat in Block 45. Our doors were open most of the time. We knew our neighbours well and even exchanged gifts on festive occasions.

Today, many people live in large flats but the doors are closed and neighbours hardly know one another.

Smokers and drinkers are everywhere, but they should not be seen as an unwanted group. Foreign workers are here to help Singapore by doing jobs Singaporeans are not interested in. Without them, many jobs in the cleaning and construction sectors would remain unfilled.

We should not segregate fellow citizens with comments and undesirable attitudes.All Singaporeans should bond together to ensure a better living environment.

Now my family lives in a three-room flat in Tiong Bahru. But if one day we had to move to a rental flat, would we be regarded as potential trouble makers?

Since we are from the lower-income group, I am deeply concerned and distressed.

Dennis Lee

Source: Straits Times, 17 Feb 2010

FAR East Organization said yesterday it has sold 100 units in its latest residential project, the 280-unit Altez in Enggor Street.

The developer said that during a preview for priority customers last week, 100 of the 104 units released were sold. Prices ranged from $1,600 to $2,000 per sq ft (psf).

The units sold comprised one and two-bedroom apartments from levels 10 to 22 of the 62-storey development.

Far East said that Altez, at 250 metres high, will be Singapore’s tallest residential development. It is next to Tanjong Pagar MRT station.

About 60 per cent of the buyers at Altez are foreigners, said Chia Boon Kuah, Far East’s chief operating officer for property sales.

‘The robust response to Altez demonstrates demand for well-conceived products of value in an excellent location in the city centre,’ Mr Chia said.

‘With the wide array of amenities and F&B outlets in this area, an MRT station at its doorstep, the upcoming New Downtown nearby and the possible future transformation of Tanjong Pagar into a waterfront city, buyers of Altez are assured of the positive prospects of this area.’

Far East will release more two-bedroom apartments tomorrow. Market watchers say these are expected to be priced higher on a psf basis than those sold already.

Among other amenities, Altez offers five floors of sky gardens and another two storeys of facilities.

Source: Business Times, 17 Feb 2010

NOW that the holidays are out of the way, property developers are ready to lay out a spread of new offerings for home-seekers.

At least six projects are being prepared for launch, while others have started preview sales or will have new phases released.

At the higher end of the market, Wing Tai is preparing to sell its 147-unit L’Viv in Newton Road at an average price believed to be about $2,000 per sq ft (psf).

The units at the freehold 32-storey development will be fairly small. About half are one-bedroom apartments between 600 sq ft and 700 sq ft, while the rest are two-bedders about 1,000 sq ft in size.

There are also three penthouses of more than 2,000 sq ft, according to Wing Tai. It is offering the deferred payment scheme for a limited period for the project, which is expected to be completed in 2014.

Elsewhere, Far East Organization has started selling units at Altez, a 62-storey project along Enggor Street at Tanjong Pagar, located near its Icon condominium.

Altez is set to be the tallest residential development in Singapore when completed in 2015, according to Far East.

A hundred units have already been sold, at prices ranging from $1,600 psf to $2,000 psf, said the developer in a release yesterday. Sales at the 99-year leasehold condo reportedly started last Wednesday.

The units sold were one- and two-bedroom apartments on the 10th to 22nd floors. Far East will release another batch of two-bedroom apartments on the 23rd level and higher tomorrow.

So far, 60 per cent of the buyers have been foreigners, said Far East’s chief operating officer for property sales, Mr Chia Boon Kuah.

The project has 280 units, ranging from one-bedders of 527 sq ft to a 4,058 sq ft penthouse.

Popular Holdings is also preparing to start sales of its boutique development, 18 Shelford Road, this weekend. The freehold project in Bukit Timah will have 19 units, but Popular declined to disclose prices. Recent transactions at nearby developments have been done from about $1,000 psf for older projects such as Nineteen Shelford, to about $1,400 psf for new launches like Shelford Suites, which is still being built.

House hunters can also look forward to more units being released at The Interlace in Alexandra Road, on the former Gillman Heights site. Developer CapitaLand said last week it would launch new phases after the Chinese New Year.

It may also start selling the 55-unit The Nassim, in Nassim Hill on the former ANA Hotel site, closer to the middle of the year. Analysts expect prices to exceed $3,000 psf.

Last week, CB Richard Ellis said it sold about 20 units of Centennia Suites, developed by Indonesia’s Lippo Group and located on the former Kim Seng Plaza site.

Units at the freehold project, which has 97 flats, were sold at $2,000 psf to $2,100 psf, it said.

In the mass market segment, agents are gearing up to market The Vision at West Coast, on West Coast Highway, and next to Waseda Shibuya Senior High School.

The 99-year leasehold development will have 295 units in total: 281 apartments and 14 strata houses, said agents.

Sizes start at about 800 sq ft for a two-bedroom unit and go up to 2,700 sq ft for a penthouse and about 5,000 sq ft for the strata houses.

In the East, Frasers Centrepoint is laying plans for its new project on the former Flamingo Valley site at Siglap, which it may launch after the first quarter. The five-storey development will have 393 units, including one-bedroom to four-bedroom apartments, duplexes and penthouses, agents said.

Prices have not been released, but the nearby Siglap V, located across the road from Siglap Centre, has reportedly sold units at between $1,100 psf and $1,500 psf.

Developer MCL Land is also said to be gearing up to launch The Estuary at Yishun, which will have 608 units.

The project will have one-bedroom to four-bedroom apartments, from under 700 sq ft to over 1,500 sq ft. Indicative prices are said to be about $850 psf, according to property agents.

Source: Straits Times, 17 Feb 2010