TWO choice sites in Serangoon are up for sale, with experts expecting healthy interest despite the recent bumper land supply rolled out by the Government.

The sites, both of which are 99-year leasehold plots, can yield about 410 homes in total and are on the confirmed list of the government land sales (GLS) programme for the first half of the year.

A 0.87ha site at the junction of Upper Serangoon Road and Pheng Geck Avenue, next to Potong Pasir MRT station, can accommodate about 330 flats in blocks of up to five storeys.

The other sale site is a 2.84ha plot at Serangoon Garden Way and is zoned for landed housing. About 80 homes can be built on it, but strata-landed houses will not be allowed, the Urban Redevelopment Authority (URA) said yesterday.

Experts expect this site to receive a lot of interest, as demand for such properties has been strong given the limited supply.

Mr Nicholas Mak, head of research at SLP International, said that landed home prices have risen by 70 per cent in the past two years.

Bids of $480 to $520 per sq ft (psf) of land area – or up to about $160 million – can be expected, with between six to 12 bidders, Mr Mak said.

Mr Ong Teck Hui, Credo Real Estate’s head of research and consultancy, expects bids to come in above $100 million – or around $320 psf of land area.

The site’s proximity to the Central Expressway is a drawback as some homes could be affected by noise and dust pollution, experts said.

Mr Ong added: ‘Nevertheless, as the market has been starved of landed housing sites and this is a Serangoon Garden location, we are likely to see fair interest.’

The last landed housing site put on sale was in September last year at Sembawang Greenvale. The plot, which could accommodate 115 homes, went for $546 psf of land area on average.

Another site at the junction of Chestnut Avenue and Almond Avenue that can fit 35 landed homes is expected to go on sale in October.

Mr Ong said the other Serangoon site is also expected to receive up to eight bids. However, developers are likely to be more cautious in view of the growing supply from earlier GLS tenders, impact from the possible raising of the HDB income ceiling and the increased supply of build-to-order flats, he said.

Mr Ong expects a top bid of $500 to $600 psf per plot ratio (ppr) – or up to $196 million.

This unit price is in line with the $607 psf ppr bid received for a nearby site sold in June last year, which has since been developed into Nin Residence.

Source: Straits Times, 22nd June 2011

99-year Woodlands plot attracts just three bids as HDB releases more land

A RESIDENTIAL site for private homes in Woodlands has fetched a top bid of $152 million in a subdued three-cornered contest among developers.

This came as the Housing Board kept up its drive to boost flat offerings this year by releasing a new site for design, build and sell scheme (DBSS) flats yesterday.

Experts say a move to lift the number of build-to-order HDB flats launched this year to 25,000 would have weighed on developers’ minds as it could siphon demand away from the private market.

The lukewarm interest from developers, however, was due more to the site’s ‘average’ attributes, they added.

A joint venture between Fragrance Group and Aspial Corp put in the top bid for the site at the junction of Woodlands Avenue 2 and Rosewood Drive. The bid worked out to $367 per sq ft (psf) per plot ratio (ppr).

They said in a statement that, if awarded the site, Fragrance will hold a 60 per cent stake in a special purpose vehicle while Aspial will hold the remaining 40 per cent to jointly develop the project.

Second-placed Far East Organization and Sekisui House were just 1 per cent behind with a bid of $150 million – or $363 psf ppr. EL Development was third with a $120 million bid, or $291 psf ppr.

The 99-year leasehold land parcel has a maximum gross floor area of 38,333 sq m and can accommodate a five-storey condo with about 390 units.

Ms Chia Siew Chuin, director of research and advisory at Colliers International, said competition from existing and upcoming projects in the vicinity could have contributed to the tepid response. These include the newly completed Rosewood Suites as well as Far East Organization’s new project Woodhaven at the junction of Woodlands Avenue 1 and Rosewood Drive.

Mr Ong Teck Hui, Credo Real Estate’s head of research and consultancy, noted that the site’s top bid is still 10 per cent higher than that for Far East’s site – which was tendered with a winning bid of $333 psf ppr in November last year – suggesting firm suburban residential land prices.

CB Richard Ellis (CBRE) Research executive director Li Hiaw Ho expects the new project to break even at $700 to $730 psf while Colliers’ Ms Chia expects the units to sell at about $780 to $800 psf.

‘Sub-sales of units in Rosewood Suites were transacted at between $730 psf and $810 psf in the March to May period this year,’ Mr Li said.

The HDB yesterday launched the sale of a site at the junction of Fernvale Link and Sengkang West Avenue. The 22,706 sq m site can yield about 790 flats.

HDB said it will launch another DBSS site at Bendemeer Road with about 700 units later this month.

PropNex corporate communications manager Adam Tan expects the latest site to be sold for $650 to $750 psf ppr.

The site is likely to be popular with developers and buyers as Sengkang is a rapidly maturing estate with shopping centres and established schools nearby, he added. ‘In particular, DBSS flats will present the sandwich group with increased housing options, which will also help ease the demand for public housing as the sandwich group does not have to compete with households earning less than $8,000 for resale flats.’

Separately, another development, Olina Lodge at Holland Hill, launched its collective sale with an indicative price of $225 million yesterday. This works out to $1,575 psf ppr for the freehold site of 7,831 sq m, inclusive of a 10 per cent balcony allocation. Marketing agent DTZ said the 67-unit, four-storey walk-up property can be redeveloped into a 12-storey project with a gross floor area of 134,862 sq ft, according to the 2008 Master Plan.

Owners are expected to get about $2.95 million to $4.9 million each in proceeds – some 65 per cent more than their units’ existing value, DTZ added.

Source: Straits Times, 8th June 2011

Khaw asks HDB to look into releasing unsold units; it could boost total to 26,000 this year

EVEN as the latest offer of 3,957 Build-To-Order (BTO) flats drew to a close yesterday, National Development Minister Khaw Boon Wan announced yet another infusion to ramp up supply.

He has asked the Housing Board to look into releasing 1,000 unsold units from earlier sale exercises later this year.

Just last week, he raised the total number of flats on offer this year from 22,000 to 25,000, in a bid to help more young couples own homes as soon as possible.

With the 1,000 now set to be added from the Sale of Balance Flats (SBF) exercise, Singaporeans are looking at a total of 26,000 units to choose from for the whole of this year.

In his latest blog posting titled Within Expectation, Mr Khaw noted that application rates for the latest BTO were ‘good and within expectation’.

The six BTO projects, which will be built only after eligible buyers register sufficient interest, are located across four towns – Pasir Ris, Punggol West, Tampines and Woodlands.

This was the largest supply of BTO flats in a single launch, surpassing the 3,185 units offered previously.

As of yesterday, more than 13,000 people had applied for the flats, or more than three applications per unit.

Most in demand were five-room flats in the mature estate of Tampines, which was oversubscribed by seven times. The 320 units measuring about 1,200 sq ft cost between $371,000 and $444,000.

Two-room flats in Pasir Ris drew the least interest, said the HDB. The 257 flats only garnered 76 applications. These 500 sq ft units cost between $120,000 and $143,000.

Mr Khaw noted that if the application rates for projects in Tampines were excluded, the overall application rate was about two and a half times.

He said that HDB will try to get the flats completed as soon as possible.

With this latest launch, HDB has offered about 12,000 units this year, leaving another 13,000 units to be launched in the next seven months.

These launches would average about 1,800 units.

For the June BTO currently being prepared, HDB is looking to launch about 2,100 flats in Bukit Panjang and Sengkang, said Mr Khaw.

Market watchers said yesterday’s results were expected.

ERA Realty’s key executive officer Eugene Lim said: ‘Tampines is an older estate and an established one, which means more parents living there. Hence the demand as their children get their own homes.’

Source: Straits Times, 3rd June 2011

Not every mature estate has room for more flats, says Khaw

Mature towns like Kallang (right) and Tampines could see BTO launches next year, in an effort to meet demand from couples who want to live near their parents. — ST FILE PHOTOS

NATIONAL Development Minister Khaw Boon Wan yesterday gave a clearer indication of which mature towns could see more new flats offered to young home-buyers.

These are unlikely to include established, densely populated estates like Tanjong Pagar as they ‘are already substantially built up’, he said in his latest blog post, the fourth since he took over the ministry recently.

But other towns such as Kallang/Whampoa and Tampines could see new projects launched by the Housing Board next year, he said.

He noted that his comments on Monday about asking HDB to consider building more Build-to-Order (BTO) flats in mature estates had been ‘well received, judging by media reports’.

He also referred to a young couple The Straits Times (ST) had interviewed who said they were looking forward to a BTO in Tanjong Pagar: ‘I must add that while I have asked HDB to put up more BTOs in mature estates, it will not be possible for many mature estates to benefit from this development, certainly not in the short term. This is because most of the mature estates are substantially built up, and there is limited land for public housing.’

BTO projects, HDB’s main scheme for new flats, are typically built when a certain demand level is reached.

Mr Khaw said HDB is still ‘studying the details’, but based on what it has found so far, a few mature estates like Kallang/Whampoa and Tampines could see BTO launches next year.

‘We will do our best to meet young couples’ aspirations to be able to continue to live near their parents. But unfortunately, we will not be able to do so in every mature estate,’ he said.

‘Tanjong Pagar is fully built up and a BTO there is unlikely. I hope the young couple would seriously consider other options, especially those in the non-mature estates.’

Human resources executive Teo Yingying, 25, one half of the couple who was interviewed, said she and her boyfriend would not mind looking farther afield: ‘As we don’t drive, we are fine with anywhere close to good public transport. But, of course, places nearer my parents would be best.’

Mr Khaw’s latest comments echo the expectations of analysts who said highly developed towns nearer the city centre are unlikely to be able to offer more new flats due to land limitations.

Industry observers had suggested Bishan, Ang Mo Kio, Toa Payoh, Tampines and Pasir Ris as some towns with room for more flats. Experts had also said it was possible the Government could reallocate land meant for private homes to public housing.

MND told ST yesterday that while it explores launching more flats in mature towns, ‘there is a need to continue to set aside land to offer choices for both first-time homebuyers to own a HDB property, as well as upgraders who wish to purchase a private property within the same town’.

It added that though there may be sites at some mature towns’ fringes, there could be constraints: ‘For other land parcels, time is required to put in the supporting infrastructure to make the land suitable for development.’

PropNex chief executive Mohamed Ismail said Mr Khaw’s quick response to public reaction could underscore concern by policymakers that young buyers would abandon newer estates for mature ones. The Government has been encouraging young families to move to outlying areas like Punggol to build critical mass in these new towns.

‘Many people will want to try their luck, but the reality of the matter is that your chances are much slimmer if you queue for a flat in a mature estate. It’s important young couples who need flats realise this,’ said Mr Ismail.

Mr Colin Tan, research and consultancy director at Chesterton Suntec International, agreed that mature towns will always be popular: ‘But this means the prices must reflect the locations of the flats. Newer estates must be priced attractively so young buyers will still be compelled to buy flats there instead of in mature towns.’

Source: Straits Times, 2nd June 2011

National Development Minister Khaw addressing an audience of young people at the Sembawang GRC Youth Executive Committee’s policy forum, held at Woodlands Community Club, for young people to discuss youth career challenges. — ST PHOTO: LAU FOOK KONG

SINGAPORE needs to build ‘tens of thousands’ of subsidised rental flats to meet the demand for them – the sooner, the better, said new National Development Minister Khaw Boon Wan yesterday.

‘For rental flats, we are studying, but all I know is we need to build more… How fast we can meet the supply – that depends on industry capacity, which I need to study,’ he said on the sidelines of a youth forum.

He cited neither a timeframe nor figures, but said it would take ‘several years’ to meet the shortfall.

The minister’s remarks come hot on the heels of an announcement on Friday that the Housing Board will build 25,000 new flats this year so young couples can own their own homes, and that this pace of building may continue into next year.

He noted that first-time buyers are one group with urgent housing needs, another being single mothers or divorcees who need subsidised rental flats.

Tenants pay between $26 and $275 a month for these flats, depending on flat type. There are about 45,000 such public rental flats here.

It was announced in Parliament in January that the Government was planning to build 5,000 more rental flats by next year, while keeping the proportion of rental flats at between 5 per cent and 7 per cent of the total number of HDB flats, so as to encourage home ownership.

During the Budget debate two months later, then National Development Minister Mah Bow Tan further announced that the average waiting time for public rental flats would be shortened to eight months this year, down from 21 months in 2008.

These were aimed at addressing unhappiness on the ground over the long wait for rental flats.

Private operators such as EM Services, allowed to rent out some HDB flats slated for redevelopment at market rates, also raised eyebrows, with some observers saying such flats should be rented to the needy as a matter of priority.

Ministry of National Development figures indicate that there were 2,300 rental flat applications each in 2009 and last year, down from 3,700 in 2008. Families made up 83 per cent of these applicants last year, and singles, the remaining 17 per cent under the Joint Singles Scheme.

Some 44 per cent of applicant households earned below $800 each a month, while the rest earned between $801 and $1,500 a month.

Nee Soon GRC Member of Parliament Lee Bee Wah, the deputy chairman of the Government Parliamentary Committee for National Development and for the Environment, welcomed Mr Khaw’s comments.

‘I’m glad to hear that he is going to ramp up the numbers,’ she said.

She said 10 per cent to 20 per cent of the requests for help that she gets at her Meet-the-People sessions are from those who need public rental flats, and that these include divorcees, those deserted by their children, and those whose flats are to be repossessed.

Madam Rokiah Sulaiman, a 45-year-old mother of two whose husband is in prison, also welcomed the possibility of getting a rental flat sooner.

She does not work because of health problems and has just moved with her teenage son into her mother’s one-room Chinatown rental flat, which is also home to her sister.

This means Madam Rokiah is, for the moment, living apart from her other child, a six-year-old daughter who attends school in Woodlands and hence stays with an aunt.

Madam Rokiah hopes to get a rental flat in Marsiling, nearer to her daughter’s school. She said: ‘I want to live with my kids, but the HDB said a lot of people are asking for rental flats, so I have to wait.’

Source: Straits Times, 30th May 2011

Pent-up demand will ease and property prices should fall, say analysts

BUILDING more HDB flats, and doing so more quickly, will help ease pent-up demand and may also eventually reduce home prices, say property analysts.

They also believe the impact of building 3,000 more new HDB flats this year could cascade right through the market, affecting both HDB and private homes.

They say the additional new flats, and the move to cut waiting times, would help ease pent-up buying demand.

These analysts also anticipate a softening of prices for resale flats and even mass market private homes.

They note that recent build-to-order (BTO) HDB projects had been oversubscribed, sometimes by as much as seven times the number of flats on offer.

The flood of new homes could mean buyers who had been looking at resale HDB flats would turn to new flats.

‘Those who have been looking to the resale market because they didn’t want to wait for a BTO flat, they might shift their focus back. Especially with the easing of the income ceiling, it would also change the minds of some people,’ said Ms Chua Chor Hoon, DTZ head of South-east Asia research. The Government has flagged a move to ease the $8,000 a month income ceiling for buying new flats.

Associate Professor Sing Tien Foo, of the National University of Singapore’s department of real estate, said the knock-on effect of the new supply might not be confined to just resale HDB flats.

Some buyers now looking at private mass market homes might switch their attention to resale HDB homes.

‘Both the public and the private housing sectors are interlinked. So it’s not just mass market. Prime property could also be affected,’ said Ms Chua.

‘I expect prices to soften slightly but it will be a gradual movement. Cash over valuation (COV) will be hit first, and once it moves down even further, then prices will eventually be hit as well,’ she said.

Any price effects will take at least two to three years to filter through, said Prof Sing. It will take some time for the public sector to absorb the pent-up demand.

The additional 3,000 new HDB flats to be launched this year will make a total of 25,000 new flats. If this pace of building continues, it will signify the launch of a large supply of new public homes in the next few years. Dr Chua Yang Liang, head of research at Jones Lang LaSalle, said that this would help ease the immediate shortage but would also coincide with the anticipated oversupply of private homes expected to hit the market within that same period: ‘This could become an issue if it becomes a reality.’

Prof Sing agreed on this point: ‘It depends on exactly how much pent-up demand is in the market. But it won’t be difficult for the HDB to predict because they would have numbers on how many people are in the queue.’

But he said sizing up the actual demand could be more complicated.

‘Even though projects have been oversubscribed, there have also been a lot of people who have rejected the chance to select a new flat. You have to look at what is the effective take-up rate as well.’

Some market experts say the move to provide more new homes might result in a muted response.

Dennis Wee Group director Chris Koh said although it will ‘solve some unhappiness’, buyers who look to the resale market have different needs from those looking at snagging a new flat.

‘There will be some who are sitting on the fence who will be convinced to choose BTOs but there will always be those who will definitely stick to the resale market,’ he said.

Source: Straits Times, 28th May 2011

Minister Khaw promises measures to help clear demand backlog

NEW National Development Minister Khaw Boon Wan has wasted no time in addressing the backlog in demand for new Housing Board (HDB) flats.

He promised yesterday to build even more flats this year and next year, and get them ready faster.

A record 25,000 new flats will be built this year, up from earlier plans for 22,000, which was already a record.

He also committed to keeping up the new pace of building next year. This could mean launching an unprecedented 50,000 new HDB flats in just two years.

Buyers can also expect their keys sooner. Flats will be built ‘ahead of order’, a key shift from the build-to-order (BTO) system where the construction tender is called only after there are buyers for at least 70 per cent of the units launched.

Now, the HDB will call for a tender as soon as architectural drawings and tender documents are ready.

‘Given robust demand, I told (HDB) to proceed to build, knowing that the orders will definitely come. In other words, build ahead of demand, during this period of demand backlog,’ he wrote in his blog.

The HDB said it was in the process of determining how much waiting time this will save for flat buyers. Experts estimate that the change could see buyers getting their flats one to three months sooner.

It means the HDB will go ahead and build new flats regardless of the response. Previously, if the take-up was less than 70 per cent, construction would be delayed until that threshold was met.

The move builds on an earlier move to cut the waiting time for new flats – from the point of booking a flat to collecting the keys – to about 21/2 years.

Mr Khaw made clear though that building ahead of orders would only be a temporary measure to clear the demand backlog; the HDB would go back to the BTO approach once the situation stabilised.

For this year, 22,000 flats will be launched by September, while 3,000 flats originally scheduled for early next year will be brought forward.

Yesterday, HDB launched close to 4,000 new flats in six BTO projects – the largest batch in a single launch.

Mr Khaw said the bigger supply would help young couples own their homes as soon as possible so they could start a family, which is a national priority.

There are 15,000 first marriages each year among Singaporeans, a possible gauge of demand for new flats.

‘As we intend to ease the $8,000 income ceiling on HDB flats, we can expect additional demand and we have to prepare for that,’ Mr Khaw said.

He is keen to see more new couples get their first homes through BTO flats. About 70 per cent currently do so while the rest buy on the resale market, he said.

‘This is not bad, but I think there is scope to do more. I think we should strive to have the vast majority of new couples start off their first set of homes in HDB, preferably via the BTO route.’

But even as the pace of building is ramped up, he emphasised the need to ensure that the quality of finish, workmanship and worksite safety stayed strong.

Responding to the minister’s action to build more and build faster, experts said Mr Khaw was keeping his word to help young couples buy their first home.

But they said the change also underscored the size of the demand backlog.

ERA Realty key executive Eugene Lim warned, however, that even as the building pace is quickened, the HDB would have to be careful not to overbuild and end up with large stocks of unsold flats as had happened in the past.

‘There are 10,000 more homes than… marriages yearly. Since 95 per cent of new flats must be sold to first-timers, the HDB will have to watch this closely to avoid having unsold homes.’

PropNex chief executive Mohamed Ismail welcomed the changes, as most recent BTO launches had been oversubscribed and many interested buyers were left on the waiting list.

Engineer Lee Wen Pin, 28, who is getting married in June next year, said: ‘I think the change that sees the waiting time shortened is the most beneficial.

‘A couple usually get married about two years after the proposal so any time saved that allows them to get a home sooner is always welcome.’

Source: Straits Times, 28th May 2011

FOREIGN home buyers snapped up 16 per cent of all private homes sold in the first quarter – the highest quarterly percentage since data became available in 1995.

Experts say the high foreign proportion in the market is because such buyers have been less affected by the rounds of cooling measures which have muted local interest.

The overseas impact has been telling, according to the DTZ Research report that contains the new buying figures.

Its analysis of caveats lodged for both new and secondary sales found that foreigners bought 1,028 units in the three months to March 31. That 16 per cent share of the market tops the previous record of 15 per cent – or 784 units – in the fourth quarter of 2007.

Foreigners were also active in the last quarter of last year when they bought 1,092 units, accounting for 13 per cent of the market.

Demand from permanent residents (PRs) remained stable at 13 per cent in both quarters.

DTZ said Chinese buyers – including permanent residents – also set a record, accounting for 24 per cent of purchases made by non-Singaporeans in the quarter. They have overtaken Malaysians for the first time.

Malaysians have held the top position since the second quarter of 2008 but have seen their market share dip from 24 per cent in the fourth quarter of last year to 21 per cent in the first quarter.

Homes in District 16 – this comprises Bedok and Upper East Coast – saw greater buying interest from foreigners compared with last year.

District 18 – including Tampines and Pasir Ris – and District 23 comprising Hillview and Chua Chu Kang were also increasingly popular.

DTZ’s head of South-east Asia research, Ms Chua Chor Hoon, said foreign interest has remained stable at about 1,000 units a quarter over the past 12 months as Singapore has maintained its reputation as a safe investment haven.

The new high is due mainly to a drop in the number of purchases by Singaporeans as the January cooling measures have had a larger impact on them, said Ms Chua, who added that interest from foreigners is expected to remain stable in the next few quarters.

‘However, local concerns about high housing prices and the influx of foreigners that were magnified during the recent general election will be a catalyst for the review of immigration and housing policies, which could dampen demand in the residential market in the coming months,’ she noted.

Other experts added that interest from foreigners has been sustained due in part to the buzz created by the two integrated resorts and the country’s growing strength as a financial hub.

Dr Chua Yang Liang, head of research at Jones Lang LaSalle South-east Asia, said that China’s moves to tighten lending policies might have led Chinese buyers to turn to Singapore while some Europeans moving here to work have chosen to buy rather than rent.

‘Regional economic conditions – in Singapore, Indonesia and Australia – are strong and this means that foreign buyers are likely to remain active here as Singapore positions itself as a global city,’ he added.

Ms Wendy Tang, Knight Frank’s director of residential services, said most foreign buyers are Asians with a long-term perspective and attracted to the stability that Singapore offers. The strengthening Singdollar also assures investors that this is a good place to park their cash.

Foreigners also bought more into the high-end market. They accounted for 21 per cent of all the homes sold for $1.5 million and above in the first quarter, up from a 17 per cent share in the previous three months.

January’s cooling measures were noted to have made an impact, mostly in the secondary sales market. The number of caveats fell by more than half in February to 745, from 1,664 in January.

But the secondary sales volume rebounded to 1,592 caveats in March as the initial reaction to the cooling measures appeared to wear off, DTZ said.

Private homes smaller than 1,000 sq ft continued to be popular with HDB buyers, with the proportion of such buyers rising from 41 per cent last year to 46 per cent in the first quarter.

Source: Straits Times, 25th May 2011

GREEN energy in public housing is getting a boost, as the Housing Board wants to double the current capacity by launching its largest-ever single solar panel scheme.

In a tender that closed this month, the HDB called for a company to own and operate panels in the eco-town of Punggol, offering to buy the electricity produced for 20 years.

The panels, or sheets, will be put up on 85 blocks and can produce 2 MWp (megawatt peak) of energy when the sun is fully out. Such an amount of energy can meet the power needs of five four-room HDB flats for a month.

But the electricity produced will not be for home use. Rather, it will be used to power lights in common areas, lifts and pumps, among other things.

The tender is part of the HDB’s $31 million, five-year scheme to test-bed solar energy in 30 precincts.

The silicon sheets – called solar photovoltaic panels – harness the sun’s energy, turning it into useful electricity, while emitting none of the greenhouse gases like carbon dioxide that are produced by burning fossil fuels.

They are seen as green energy options that may cost more in the short term but offer long-term, environment-friendly benefits for everyone.

The scale of the latest project is comparable to the total installed solar photovoltaic capacity in Singapore currently: about 3.57 MWp for both residential and non-residential installations.

The HDB is in the midst of putting up more panels on 30 blocks in Jurong, Aljunied, Telok Blangah, Bishan, Ang Mo Kio and Jalan Besar. For this batch, one block’s solar panels will generate enough energy from a day’s sunlight to power common area services like lights and lifts for a day.

There are also solar-energy testing programmes in Tampines, Bukit Panjang, Marine Parade, Serangoon North and Wellington Circle.

Asked about the environmental benefits and cost-savings of the latest project, an HDB spokesman replied: ‘HDB is currently evaluating the tender and will announce the results at a later date. Hence, we are only able to share more on this solar initiative when the details are finalised.’

Another difference in this tender is the proposed business model. Previously, the HDB bought the solar panels and hired contractors to install and maintain them.

The current tender, on the other hand, is seeking a business model called solar leasing, in which the HDB buys only the electricity.

Solar leasing is not uncommon elsewhere, such as in the United States, but this is the first time it is being tried in Singapore.

The HDB did not explain why it is trying out this model, but industry players offered a few reasons.

‘This is more experimental. The HDB is testing the mechanism,’ said Mr Christophe Inglin, managing director of solar energy firm Phoenix Solar.

He said leasing can be attractive because users may not want to deal with buying and maintaining the panels in the same way a tenant of a house may not need to fret over furniture.

It is new here, however, so companies are cautious – only three firms had bid for the tender, with two bids in the $9 million range.

Another challenge, industry players explain, is that Singapore does not pay above-market rate for people to feed excess renewable energy back to the grid.

In many countries, this practice – called a feed-in tariff – is an incentive for people to install renewable energy in their homes and offices, as they can recoup some costs by selling spare energy to the grid.

And in the case of HDB blocks, installation is costly and difficult because many blocks are irregularly shaped and have a small roof area for panels.

Asked if the HDB’s solar-leasing tender will set a precedent for other companies and builders, Phoenix Solar’s Mr Inglin replied: ‘In the future, as prices of solar panels come down, it could certainly be an incentive for corporate entities to, say, lease their rooftops to companies for solar panels.’

Since 2008, the price of the panels has fallen by half. Still, electricity from solar panels is currently about twice as expensive as electricity from the grid.

Source: Straits Times, 25th May 2011

ENCOURAGING home sales continued over the weekend with MCL Land’s Terrasse in Hougang finding buyers for more than 150 apartments.

The homes at the 414-unit project in Hougang Avenue 2, whose preview started on Saturday, were sold at an average price of $950 per sq ft (psf).

The 99-year leasehold project has homes ranging from 506 sq ft one-bedders to five-bedroom penthouses of about 2,210 sq ft. Ground-level garden duplexes have yet to be released.

The Straits Times understands that a one-bedder will start from $580,000 while a five-bedroom penthouse will start from $1.85 million.

All unit types received even interest, with 90 per cent of the buyers locals and permanent residents. The rest were foreigners from countries including Malaysia and China.

Far East Organization also saw 30 units across its properties snapped up by home buyers last week, excluding sales at Eight Courtyards in Yishun.

Its Waterfront collection in Bedok Reservoir – Waterfront Isle, Waterfront Key and Waterfront Gold – sold 15 units in total while The Greenwood and Suncottages sold two units each.

Woodhaven in Woodlands and Seastrand in Pasir Ris will start sales in the first and second half of next month respectively, The Straits Times understands. Online marketing material suggests Seastrand prices will start from $850 psf. Woodhaven’s average price will range from $900 to $1,000 psf. These prices do not factor in any possible early bird preview discounts.

On the public housing front, this year’s first executive condo launch, Belysa in Pasir Ris, had attracted 520 e-applications as of 8.30pm yesterday. This is about 1.7 times the number of units in the 315-unit project at the junction of Pasir Ris Drive 1 and Elias Road, which experts say is a healthy figure.

Belysa – illumination in Swedish – will offer only three- and four-bedroom apartments to cater to three-generational living. Priced at an average of $670 psf, the indicative price of an 829 sq ft three-bedder starts from $574,000 while a 1,335 sq ft four-bedder starts from $882,000. Sales bookings for units will start tomorrow.

Experts say buying interest is still healthy for projects that are reasonably priced and in a good location.

PropNex chief executive Mohamed Ismail said buyers have begun to accept that prices – especially in mature estates, even in suburban areas – can be about $1,000 psf. ‘This demand is coming from owner-occupiers and mid- to long-term investors… There is also a good number of HDB upgraders in the market,’ he added.

Source: Straits Times, 24th may 2011