It is a Thursday evening and Prinsep Street is heaving with funseekers. Cars line the narrow street in front of a stretch of shophouses that are venues for several drinking holes.

Yes, Prinsep Street. The once sleepy enclave located opposite Parklane Mall in Selegie Road has undergone a change.

Inside one of the shophouses, the Room Full Of Blues music bar, a four-piece live band entertain a crowded room with good old rock classics.

Next door, karaoke fans are crooning Mandarin ballads at the four-month-old LeBar.

Not far away, students and families are hard at play at the latest venue The Hangout Cafe, which offers boardgames, Xbox and Wii console games.

On weekends, the parking lots at the chill-out district are full and, sometimes, the valets have to turn customers away.

Prinsep Street has recently been drawing more working adults and families to its new food and beverage outlets, including year-old Sumomo Okonomiyaki Japanese eatery at Prinsep Place.

The shophouses along Prinsep are managed or owned by individuals and companies.

Mr Maximilien Fedkiw, who runs Le Bistrot du Sommelier at Prinsep Place, declines to reveal figures but says of the lively business vibe: ‘Surprisingly, the weekdays have been fairly busy and we usually advise customers to make table reservations towards the end of the week.’

Mr Steven Low, 51, who runs Room Full Of Blues, says: ‘The new tenants such as LeBar have attracted more young working adults to the area.

‘There have also been more residents from the residential properties in the Mount Sophia and Wilkie estates coming here to unwind.’

He is one of the oldest tenants along Prinsep Street, having operated the bar there for 11 years.

For new business owners, Prinsep’s proximity to the Singapore Management University, Nanyang Academy of Fine Arts and LaSalle College of the Arts is a draw.

It is also popular among young adults as a game venue with outlets such as Homeground, e-games and The Mind Cafe.

Ms Wong Kai Yun, 25, who runs The Hangout Cafe, chose Prinsep over a space in Bugis Junction as ‘the student community is set to grow with the upcoming School of the Arts’.

The school is located opposite Prinsep Street.

Together with a partner, Ms Wong, a former auditor, sank a ‘high six-figure’ sum refurbishing the 297 sq m premises, which used to house a steamboat restaurant.

The Hangout Cafe, which is divided into two sections, caters to boardgame and console game lovers.

Another new kid on the block, Le Bar karaoke, opened its second outlet in Prinsep Street in October last year. The $300,000 Zen-inspired venue occupies two levels of a shophouse.

Its business development manager, MrZacc Tay, says: ‘The area has matured and it no longer has that rowdy vibe. We also checked out the available space at the Boat Quay area but it seems to draw a younger crowd in their 20s.’

However, the popularity of Prinsep has also led to a rise in rentals.

Mr Low says: ‘It has gone up from $3 to nearly $10 per square foot (psf) in a decade for the commercial properties in Prinsep.’

Ms Wong is paying about $6 psf but she says: ‘I was offered about the same rental for a third-floor space in a shopping mall. But the advantage of being in a shophouse is that you get walk-in traffic from the street.’

She adds: ‘The Prinsep area, which is part of the Bras Basah and Bugis precinct, is developing into a thriving entertainment and arts hub.’

And it is among the reasons British expatriate Russ Aldridge, a private banker, moved into a three-bedroom apartment in Sunshine Plaza in Prinsep Street early this year.

The 29-year-old bachelor says: ‘I was drawn to the quaint F&B enclave. It’s very convenient if you want to wine and dine or entertain friends. I don’t have to travel so far.

‘The shopping malls Iluma and Bugis Junction, plus the Singapore Art Museum and the National Museum, are also a stone’s throw away.’

Source: Sunday Times, 7 Mar 2010

Amid cheers from the congregation, City Harvest Church (CHC) yesterday announced that it will pay $310 million to become a co-owner of Suntec Singapore, a prime piece of downtown real estate.

Senior pastor Kong Hee broke the news first at CHC’s service at its Jurong West building, then later at another service at the Singapore Expo in Changi.

He said CHC had acquired a ’substantial stake in a consortium company that owns 80 per cent of a joint venture fund that owns Suntec Singapore’.

The complex’s full name is Suntec Singapore International Convention and Exhibition Centre.

The $310 million includes the cost of acquiring shares in the consortium, rental costs, renovation costs and others.

Suntec Singapore was acquired by ARA Asset Management through the ARA Harmony Fund last year, with its investors comprising Suntec Reit – which holds 20 per cent – and a consortium company which holds 80 per cent.

The latter is what CHC has bought a stake in. However, CHC said it was unable to reveal its current shareholdings due to conditions stated in the agreement.

The church has spent the past five years looking for a suitable plot of land, said Dr Kong, who founded it in 1989 as a small Bible study group of 20.

Suntec was its 26th attempt after other sites such as Lion City Hotel in Tanjong Katong and Iluma in Bras Basah Road were considered unsuitable due to their small size or likely traffic congestion.

Dr Kong revealed in January this year that CHC had secured a large complex in the ‘central-south’ district that also housed shops, restaurants and a 12,000-seat auditorium. Further details were unavailable then due to a non-disclosure agreement.

Yesterday, he told his congregation he had approached Suntec’s new owners to explore the possibility of co-ownership in July last year, after an initial unsuccessful bid for the property in November 2008.

The option agreement was signed in six months, with the sale sealed on Feb 5.

The 33,000-strong megachurch is expected to move there by the second quarter of next year, after its lease at Singapore Expo expires. It will retain its Jurong West building for prayer services and Bible study.

Singaporean singer Sun Ho, who is married to Dr Kong, is also back this weekend – from Los Angeles, where she is currently based – for the celebrations.

The more than one million square feet of usable space in Suntec – equivalent to 25 soccer fields – would make it 20 times the size of the church’s premises in Jurong West and 10 times the size of the hall it currently leases at Singapore Expo, Dr Kong said.

‘This is a prime location with 78 years left in its lease. Right now we’re paying $310 million, but how much is it going to be worth 30 years from now? I have to be a good steward…to maximise every dollar our members have given,’ he said.

CHC told The Sunday Times it will be operating an ‘ownership and lease’ business model. This would allow the rent paid to Suntec Singapore to be recovered in the form of profits and dividends from space rental and tenant leases.

The church’s plan is that its share of the profit from the business will eventually be able to cover the rent, and the financing will be self-sustaining.

With the opening of the Esplanade and Promenade MRT stations on the Circle Line next month, and together with the existing City Hall MRT station, members will have easier access to its services.

In a posting on the church website, Dr Kong wrote that the project ‘allows us to move from a present expensive rental model to a more financially sustainable ownership model for the long term’.

He added that his present congregation is more than 14 times the capacity of its Jurong West building, which can accommodate only 2,300 people.

As to why the money was not spent on the poor and needy instead, Dr Kong said on the website that CHC spends 20 per cent of its annual budget on local community and overseas humanitarian work.

‘With a facility to house the church’s growing congregation and multifaceted ministries, we can serve the needs of the community in an even greater way.’

He said that while some areas will be used solely by CHC – such as the sixth and seventh storeys which will be used to house its 12,000-seater auditorium – other areas like the three ballrooms on the second floor and the exhibition halls will be open to the public for rental.

‘But as co-owners of the entire convention centre, we have a share of the annual revenues of all facilities. Every time somebody rents a room there, we get a cut for the next 78 years,’ he said.

The news coincided with the start of CHC’s fund-raising drive that hopes to raise $17.3 million from this month to June, its fifth campaign in a series of 13. It has raised $99 million in its past four campaigns.

Knight Frank group managing director Danny Yeo said the acquisition was a good alternative to buying a plot of land.

‘Existing plots of land offered by the Government are too small for the large auditorium that City Harvest is looking to build and it’s even more difficult if you’re looking for somewhere central.’

Similar plans were also announced in 2007 by New Creation Church, another large Christian group.

New Creation’s business arm Rock Productions has teamed up with mall developer CapitaMalls Asia to build an ‘integrated hub’ in Buona Vista. When ready in 2012, the $1 billion project will house shops, a concert hall and a theatre.

Source: Sunday Times, 7 Mar 2010

A planned makeover of Katong Mall, a popular retail space in its heyday, has provoked mixed feelings and even grouses among tenants and their patrons.

Some worry about finding nearby retail space while others will miss its laid-back retro ambience.

Built in 1983, the mall has in recent years become an educational and enrichment hub for children, with several tenants offering services from tuition to ballet classes.

But its new owner wants to move with the times. Last year, it was reported that Perennial Katong Retail Trust bought over the mall for $247.6 million.

A $55 million revamp will see the mall converted into a food and beverage and lifestyle hub with facilities that include a cinema, foodcourt and gourmet supermarket.

The BreadTalk Group is already interested in leasing space there to house some of its brands, such as Food Republic and Din Tai Fung.

When The Sunday Times visited the mall last week, about 30 tenants – less than 20 per cent of the original number – were still there.

They have until June this year to move out. The makeover will take 12 to 15 months.

Several tenants said they had difficulty finding a new place in the vicinity so as to maintain their customer base.

Ms Vicky Yu, 42, a teacher at Forever Education School, which provides Chinese enrichment at primary level, said: ‘Everyone’s moving out at the same time, so many spots are filling up fast.

‘In nearby Parkway Centre, only two units are left.’

Mr Peter Ng, 37, owner of Baby Meadows, a mothercare shop, has moved to Parkway Centre. He said: ‘What I’ll miss is the more personal feel of Katong Mall – it’s not as busy or clinical as typical shopping malls.’

Mr Paul Lee, 44, founder of UniqArts & Technologies, which has moved to nearby Roxy Square, said: ‘I’ll definitely miss the mall. After being here for over 10 years, I’m familiar and comfortable with the environment, and am good friends with the other tenants.’ He provides art and creativity programmes for children and adults.

Tenants moving farther away were worried about their customer bases. One tenant, who runs a Chinese language enrichment centre at primary level, said: ‘We’re moving to Joo Chiat and it’s inconvenient for some customers.’

Some tenants felt the new management had kept them in the dark for a long time about its renovation plans. An employee of Lilac Fashion, which sells women’s apparel and costume jewellery, said: ‘Our queries were pushed around from person to person.’

Others said they had wanted to terminate their contracts early to facilitate their moves to new locations but were not allowed to do so.

When asked about these issues, a spokesman for the mall’s owner said: ‘We have been working closely and communicating with many tenants since Jan 29. For early termination, we have acceded to nearly all requests.’

Patrons had mixed views.

Mrs Lorraine Tan, 48, a housewife, said: ‘The mall has built up a reputation as an education hub. It’ll be inconvenient for parents like me who now have to travel from one place to another.’

Her daughter Teresa, eight, attended Chinese enrichment classes and piano lessons at two different providers in the mall. They have moved to different locations.

But Mrs Dawn Yee, 35, an image consultant, welcomed the change, saying: ‘It’s good to have more options. There is no other good mall nearby except Parkway Parade, which is always crowded.’

Source: Sunday Times, 7 Mar 2010

The slew of new measures announced by the Government last Friday to curb speculative buying and selling of Housing Board flats does not address one issue – subletting – said property experts.

Under current rules, buyers of resale HDB flats can sublet the entire flat after three years if they did not take a government grant or HDB loan.

If they bought the flat with the grant and HDB loan, the minimum stay-in period is five years.

‘If you want to stop prices from rising and people from speculating, control the rental market too,’ said Mr Raymond Quah, president of Dennis Wee Properties.

The rental market indirectly influences the price of resale flats, said agents.

Home owners, realising that they can make money from rentals, are unlikely to sell their flats should they go on to buy private property.

This may lead to a dip in the supply of resale flats in the market, resulting in resale flat prices going up, said Mr Steven Tan, executive director of OrangeTee’s residential division.

There are also other factors that influence resale flat prices. One is the reselling of flats as soon as the minimum occupation period is up – one year for those who bought a resale flat without government subsidies or loans.

That is why the Government unveiled new rules last Friday to curb speculative buying and selling of public housing.

Among these new rules is one that states that the minimum occupation period for resale flats with and without subsidy is now three years.

The current rules on subletting were laid down in 2007 – after earlier rule changes in 2005 and 2003 – to allow more people to earn cash from leasing out their property.

Before 2003, owners were not allowed to rent out their flats unless they were working abroad, for example.

That year, HDB relaxed the rule to allow home owners to rent out their flats after 10 years if they had paid up the loan, and 15 years if they had not. In 2005, this was cut to five and 10 years respectively.

‘But the circumstances are different now – prices have spiked – and it is time to go back to the old rules,’ said Mr Quah.

There had been spikes in HDB resale prices in the three months following every rental rule change, suggesting there may be a connection between resale prices and subletting.

For instance, in the second quarter of 2003 following the February 2003 HDB rental rule change, resale prices went up by 2.13 per cent from first-quarter prices, according to HDB’s resale price index. This compared with only a 0.2 per cent increase in the same period a year ago.

More recently, after further easing of subletting rules in March 2007, the three months that followed saw resale prices jump 2.95 per cent. This compares with a 0.98 per cent increase during the same period in 2006.

Ms Jarina Shamsudeen, an agent with property firm PropNex, also felt the Government should revert to the old subletting rules to control property prices.

Based on anecdotal evidence, more Singaporeans approaching 35 years old are buying and subletting their flats for income. ‘Permanent residents are doing that too,’ she said.

Ms Jarina suggested that only Singaporeans posted overseas should be allowed to sublet their flats, and that private home owners should also be barred from subletting.

According to OrangeTee’s Mr Tan, tweaking subletting rules is necessary because ‘no matter how small the contributing factors are, they do add up’.

He was responding to a comment from National Development Minister Mah Bow Tan that only

3 per cent – or 20,460 flats – of eligible homes are sublet.

Mr Mah suggested that most flat owners are buying their flats for occupation and not rental.

‘If private property owners can buy HDB flats or keep their existing flat to earn money from rentals, the supply of resale HDB flats will dip,’ Mr Tan said. This will push up the prices of resale flats.

Illegal subletting may have indirectly contributed to rising HDB prices, said Knight Frank consultant Peter Ow.

It is known that some people lock up a room in the flat but lease out the entire unit, exploiting a loophole in the law.

‘This is not an issue of policy but policing,’ Mr Ow said.

Unless rules are enforced rigorously, having them will not deter people from doing things behind the backs of the authorities.

‘Even if there are rules to control subletting, people will still break them. So the rules – tighter or not – would not have much of an impact,’ said an ERA agent who did not want to be named.

But not all home owners who rent out their flats are speculators.

Retiree Christine Chan, 65, rents out two rooms in her five-room flat in Choa Chu Kang as this is her only source of income.

‘I cannot find employment anymore due to my age, so I rely on the $1,000 I make from renting out two rooms for retirement,’ she said.

‘I am not looking to make a quick buck. I feel that if the Government were to tighten the rules, it should make some exceptions.’

Source: Sunday Times, 7 Mar 2010

Like a circus performer spinning many plates at once, the Housing Board serves many purposes – housing people, fostering stability, strengthening cohesion and generating an income for flat owners.

Last Friday, it added ‘reinforcing citizenship privileges’ to the list.

To entice permanent residents (PRs) who marry Singaporeans to take up citizenship, the HDB will now withhold $10,000 of such couples’ housing subsidies.

That sum will be given to them once these foreigners take up citizenship, or produce a Singaporean child.

Meanwhile, some PR households will have to look elsewhere to buy their resale flats if too many congregate in a particular neighbourhood.

This new integration policy, which is fashioned along the lines of the long-standing ethnic integration policy, is meant to prevent the formation of enclaves.

The new policies raise questions that could pose challenges to the carefully calibrated housing system. Will the 8 per cent quota for non-Malaysian PR households in each block depress the price of such flats?

After all, it essentially cuts out 20 per cent of potential buyers if the quota has been reached, given that that is the proportion of resale flats bought by PRs nationwide each year.

Will it nudge PRs to become citizens? Or will it create a backlash from a group which has had its privileges – from education to health – steadily rolled back in recent years by a Government anxious to placate citizens who fear foreigners are encroaching in everything from housing to jobs?

It remains to be seen what kind of dynamics the HDB’s policies towards foreigners will introduce into the system, but these changes have definitely racked up the tension among the statutory board’s competing objectives.

One can see just how difficult this balancing act can be when we examine how the HDB last Friday ended up raising the minimum occupation period for people buying resale flats without subsidies.

In response to growing public anger over what is perceived to be speculation in the resale market, the HDB now requires non-subsidised buyers to live in their flats for three years – instead of just one year – before selling them again.

The tighter rules seem to run counter to its recent measures to free up the housing market to let home owners monetise their assets.

To give ageing flat owners a chance to earn an income, it has steadily cut the number of years they needed to live in their homes before renting them out.

Before 2003, flat owners were not allowed to rent out their flats unless they met a set of strict criteria, like working or studying abroad.

That year, however, the authorities eased the rules to let flat owners rent them out if they had lived in them for 15 years, or 10 years if they had paid off their HDB loan.

From 2003, the HDB has reduced the minimum occupancy period for subletting every few years. Owners who bought resale flats without any subsidies can now rent out their property after living in it for three years.

The relaxed subletting rules gave rise to fears that people will buy them as investments instead of homes. Last Friday, the new figures revealed by the HDB showed that the fears were not unfounded.

The proportion of resale flats sold within three years grew from 6 per cent between 2005 and 2007 to 9 per cent last year. If left unchecked, such churning in the HDB resale market could further inflate prices, which have risen by 8 per cent last year alone.

Hence, while the HDB’s subletting policy increasingly helps put flats in the realm of the free market, its revised occupancy requirement for resale raises the bar for flat owners banking on their properties to raise cash for other needs.

These conflicting signals result from the inevitable tension between two of the HDB’s biggest objectives – to house a population and to grow its wealth by growing the value of homes.

No less than Minister Mentor Lee Kuan Yew reminded Singaporeans of the HDB’s latter role in January. He reminded citizens not to cast a protest vote over the affordability of public housing, as it was this system that provides homes that would in time appreciate in value.

The HDB also took pains last Friday to underline the principle that flats were primarily meant for providing shelter. It is putting on the forefront its role as a housing provider that will not hesitate to impose restrictions once that mission comes under threat.

What helps to reinforce that message is also another change announced that day: the extension of second subsidised home loans to households downgrading to smaller flats.

For years, households forced by financial circumstances to move to smaller flats were denied such loans because the HDB wanted to limit its leg-up to those moving on to bigger flats. With this change, the authorities have eased up on their fixation with asset enhancement and are now extending help to those who really just need shelter.

All things considered, there is another bugbear that has not been addressed: private property owners buying resale flats.

House hunters feeling the heat from rising prices have complained that these cash-rich buyers drive up prices and crowd out those in genuine need of homes.

National Development Minister Mah Bow Tan has ruled that out, saying their impact is minimal.

But that stand too could be up for review in time to come. The constant tension between the HDB’s competing objectives means that policies will vary according to demographic changes and public sentiment. Friday’s changes will not be the last.

Source: Sunday Times, 7 Mar 2010

Official property launches, often announced in full-page colour advertisements in newspapers, are for the masses.

That is when the public throngs the showflat. Individuals, couples and families with kids in tow turn up in full force. Many are not really buyers.

What can a keen buyer do to avoid the crowds? He can simply head for the VVIP preview – a preview for very, very important persons, or quite simply, a preview.

Contrary to what the name suggests, you become truly important to developers these days once you show keen interest. Gone are the days – at least for now – when some developers screened their potential buyers.

‘Previously, the VVIPs were bosses’ friends, business associates. Now, anybody with money to buy will become one,’ said a property agent who declined to be named.

‘The whole intention (of the VVIP preview) is for the property agency to assess interest, and accumulate names of potential buyers. Nowadays, we assess the interest first, before the launch.’

Indeed, previews or soft launches are a way for developers to test the market. If the preview response is strong, the developer will likely raise prices come launch time, experts said.

Take the latest mass market preview of the 608-unit The Estuary in Yishun, which was launched yesterday. During the preview, its units went for an initial average price of $750 per sq ft.

But following strong demand after a preview starting on Feb 25 for staff, business associates and its property agencies’ clients, developer MCL Land raised prices twice, by 2 per cent each time, for the new units released the following two days.

On Feb 25, about 150 units were snapped up. The next day, the figure was more than 200 units. By Feb 27, more than 300 of about 350 units that were released for sale were taken up.

For keen investors, attending a condo preview means getting the first bite of the cherry. ‘You don’t wait until the launch date to buy because the unit you want may not be available any more,’ said ERA Asia-Pacific associate director Eugene Lim. ‘Besides, the first day of the launch is usually packed.’

Buyers now do their homework way before the preview and why not, given the service property agents happily render these days? These agents now take a proactive approach and will even visit potential buyers’ homes to do presentations on a new launch.

Mr Lim said property agents started doing presentations at potential buyers’ homes last year.

Buyers can also get quite a lot of information these days on the Internet. ‘You look at the floor plans, identify which unit you want to buy, and book it with the agent, all before the preview,’ said Mr Lim.

Agents will give an indicative price range for the buyers to work with, as the property’s pricing will be announced only on the preview day.

On the day itself, the agent will book the unit for his client, as long as the client’s choice unit is available and it fits his budget, experts said.

‘There’s been a change of buying behaviour. Buyers used to want to see the showflat before they made a decision,’ said Mr Steven Tan, executive director of OrangeTee’s residential division. ‘But during the boom in 2007, they realised the units they wanted were sold by the time they arrived at the showflat.’

He added: ‘Buyers want to feel special. So agents now let them book the units first.’

Source: Sunday Times, 7 Mar 2010

Two restaurants at the Admiral Country Club in Sembawang have decided to shut down since plans to develop it have yet to materialise, even though the tender was awarded nearly three years ago.

The Old Admiralty House was gazetted as a national monument in 2002.

The Singapore Land Authority (SLA) then awarded a tender to the YESS Group, a lifestyle business developer, who had plans to transform it into a country club, with golf and horse-riding activities.

However, these never materialised.

Restaurant operators said meetings with the developer did not result in any satisfactory answer.

They also learnt that part of the land had been rented out for private dormitories and school, but SLA later forced the developer to shut down as these were illegal.

Mr Victor Teo, who ran a barbecue restaurant there, said he and another restaurant operator are seeking legal advice for compensation.

Separately, SLA said tenders were awarded based on developers’ proposals and financial ability, but they could not ensure these plans would be carried out.

Source: Channel News Asia, 7 Mar 2010

Senior Minister of State for the Ministry of National Development & Ministry of Education Grace Fu said the recent announcement to extend a second loan to more HDB flat buyers is to help manage their mortgage obligations and not to encourage property speculation.

“The objective of allowing a second loan regardless of whether it’s upgrade or downgrading, it’s really to allow some families to make adjustments to their mortgage plan,” she said.

“We recognise that some families may go through changes in their lives or in their jobs or the career, that will require them to find a permanent solution in reducing their mortgage obligations. So, the second loan is to allow them to do that.”

The minister was attending celebrations to mark International Women’s Day at Yuhua Community Club Sunday afternoon.

The event saw various activities lined up, from health checks to a cooking competition.

Source: Channel News Asia, 7 Mar 2010

Residents of Pasir Ris-Punggol GRC now have more opportunities to bond and exercise.

Bringing resident bonding to a higher level is a new 13-metre community tower, located at the People’s Association Water Venture in Pasir Ris.

It is the first of its kind in the North East district, allowing residents to take part in abseiling and sport climbing.

It was officially launched by Deputy Prime Minister Teo Chee Hean at the Pasir Ris-Punggol GRC Family Day on Sunday.

Over at Punggol South, families have another avenue to spend time together and keep fit at the same time.

A new fitness centre – aptly called the Famili Club – is fitted with various machines suited for all members, from grandparents to the kids.

Source: Channel News Asia, 7 Mar 2010